F. Investments in associates and joint ventures

Shares in material associates

Following the sale of 80% of its equity interest in the ArcelorMittal Texas HBI Group (formerly the voestalpine Texas Group) domiciled in the State of Delaware, USA, voestalpine now holds a 20% share and exercises substantial influence over this group of companies. This share is accounted for at equity. The voestalpine Group retains insignificant contingent liabilities in connection with the sale of the 80% share package.

The deal was closed on June 30, 2022. Control was transferred to the buyer as of said date. This was followed by the deconsolidation of the subsidiary and its initial recognition as an associate. The gain on the sale of the equity interest is recognized in the income from discontinued operations (see C. Scope of consolidation – Discontinued operations). The ArcelorMittal Texas HBI Group operates a direct reduction plant and also supplies hot briquetted iron (HBI) to the voestalpine Group. The company is not a listed entity.

The following tables contain the financial data on the ArcelorMittal Texas HBI Group. The disclosures for the business year shown comprise the earnings of the ArcelorMittal Texas HBI Group for the period from July 1, 2022 (closing date: June 30, 2022) through March 31, 2023.

Given the losses at the ArcelorMittal Texas HBI Group, an impairment test was conducted based on the net present value of the expected future operating cash flows as of March 31, 2023. This resulted in an impairment loss of EUR 31.6 million and a recoverable amount of EUR 97.8 million. The impairment loss stems from the reduction in both earnings and margins compared with June 30, 2022.

Shares in immaterial joint ventures

Profits from the joint ventures that are individually immaterial to voestalpine’s Consolidated Financial Statements are included using the equity method. Interests held are presented in the “Investments” appendix to the Notes. In each case, this information relates to the equity interests of the voestalpine Group in immaterial joint ventures and is broken down as follows:

voestalpine Giesserei Linz GmbH holds an interest of 51.0% in Jiaxing NYC Industrial Co., Ltd. The entity’s Articles of Incorporation require at least one vote from the other partner for all material decisions (budget, investments). It is assumed, therefore, that control is not exercised over the entity despite the 51.0% interest.

Shares in immaterial associates

Profits from associates that are individually immaterial to the voestalpine Consolidated Financial Statements are included using the equity method. This information relates to the interests of the voestalpine Group in associates and is broken down as follows:

Associates and the interests in them are presented in the “Investments” appendix to the Notes.