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 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 and disposal groups). The ArcelorMittal Texas HBI Group operates a direct reduction plant and 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 previous 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.

      Summarized statement of financial position

       

       

      ArcelorMittal Texas HBI Group

       

       

      03/31/2023

       

      03/31/2024

       

       

       

       

       

      Non-current assets

       

      461.8

       

      411.8

      Current assets

       

      302.0

       

      385.5

      Non-current liabilities

       

      44.1

       

      34.2

      Current liabilities

       

      88.4

       

      120.4

      Net assets (100%)

       

      631.3

       

      642.7

       

       

       

       

       

      In millions of euros

      Summarized income statement

       

       

      ArcelorMittal Texas HBI Group

       

       

      07/01/2022 – 03/31/2023

       

      2023/24

       

       

       

       

       

      Revenue

       

      642.5

       

      586.3

       

       

       

       

       

      Profit after tax

       

      –13.0

       

      –18.3

      Profit after tax (20%)

       

      –2.6

       

      –3.7

      Impairment as of 03/31/2023

       

      –31.6

       

      0.0

      Other comprehensive income

       

      –2.8

       

      0.1

      Elimination of intra-Group profits incl. deferred taxes

       

      1.6

       

      5.7

      Comprehensive income (20%)

       

      –35.4

       

      2.1

       

       

       

       

       

      Proportional dividends received

       

      –1.1

       

      0.0

       

       

       

       

       

      In millions of euros

      Reconciliation of carrying amounts

       

       

      ArcelorMittal Texas HBI Group

       

       

      03/31/2023

       

      03/31/2024

       

       

       

       

       

      Net assets, closing balance

       

      631.3

       

      642.7

      20% Group share of net assets

       

      126.3

       

      128.6

      Goodwill and other adjustments incl. net exchange differences

       

      3.1

       

      3.1

      Impairment as of 03/31/2023 incl. net exchange differences

       

      –31.6

       

      –31.8

      Carrying amount of the Group’s equity interest

       

      97.8

       

      99.9

       

       

       

       

       

      In millions of euros

      In the previous business year, 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 stemmed 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:

       

       

      2022/23

       

      2023/24

       

       

       

       

       

      Group share of

       

       

       

       

      Profit after tax

       

      0.0

       

      –0.2

      Other comprehensive income

       

      –0.2

       

      –0.2

      Comprehensive income

       

      –0.2

       

      –0.4

       

       

       

       

       

      Carrying amount, immaterial joint ventures

       

      4.2

       

      4.3

       

       

       

       

       

      In millions of euros

      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:

       

       

      2022/23

       

      2023/24

       

       

       

       

       

      Group share of

       

       

       

       

      Profit after tax

       

      24.7

       

      10.8

      Other comprehensive income

       

      –1.9

       

      –1.1

      Comprehensive income

       

      22.8

       

      9.7

       

       

       

       

       

      Carrying amount, immaterial associates

       

      168.0

       

      164.3

       

       

       

       

       

      In millions of euros

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

      Equity
      Assets made available to a corporation by the owners through deposits and/or contributions or from retained profits.