9. Property, plant and equipment

       

       

      Land, land rights, and buildings

       

      Plant and equipment1

       

      Fixtures and fittings

       

      Advance payments and plant under construction

       

      Total

       

       

       

       

       

       

       

       

       

       

       

      Gross carrying amount

       

      4,136.9

       

      13,255.2

       

      1,514.0

       

      850.3

       

      19,756.4

      Accumulated depreciation and impairment

       

      –2,137.5

       

      –10,172.2

       

      –1,149.1

       

      –4.3

       

      –13,463.1

      Reclassification of discontinued operations

       

      –151.6

       

      –445.3

       

      –2.3

       

      –59.8

       

      –659.0

      Carrying amount as of April 1, 2022

       

      1,847.8

       

      2,637.7

       

      362.6

       

      786.2

       

      5,634.3

       

       

       

       

       

       

       

       

       

       

       

      Gross carrying amount

       

      3,983.9

       

      12,564.9

       

      1,562.1

       

      1,032.7

       

      19,143.6

      Accumulated depreciation and impairment

       

      –2,168.1

       

      –10,109.7

       

      –1,197.8

       

      –5.5

       

      –13,481.1

      Carrying amount as of March 31, 2023

       

      1,815.8

       

      2,455.2

       

      364.3

       

      1,027.2

       

      5,662.5

       

       

       

       

       

       

       

       

       

       

       

      Gross carrying amount

       

      4,292.9

       

      12,617.1

       

      1,590.1

       

      807.6

       

      19,307.7

      Accumulated depreciation and impairment

       

      –2,174.0

       

      –9,905.8

       

      –1,189.0

       

      –3.7

       

      –13,272.5

      Reclassification of assets held for sale

       

      –40.1

       

      –22.5

       

      –7.3

       

      0.0

       

      –69.9

      Carrying amount as of March 31, 2024

       

      2,078.8

       

      2,688.8

       

      393.8

       

      803.9

       

      5,965.3

       

       

       

       

       

       

       

       

       

       

       

      1
      Business year 2022/23, retroactively adjusted.

      In millions of euros

      The reconciliation of the carrying amounts of property, plant and equipment for the periods presented in the Consolidated Financial Statements as of March 31, 2024, is as follows:

       

       

      Land, land rights, and buildings

       

      Plant and equipment1

       

      Fixtures and
      fittings

       

      Advance payments and plant under construction

       

      Total

       

       

       

       

       

       

       

       

       

       

       

      Carrying amount as of April 1, 2022

       

      1,847.8

       

      2,637.7

       

      362.6

       

      786.2

       

      5,634.3

       

       

       

       

       

       

       

       

       

       

       

      Changes in the scope of consolidation

       

      6.5

       

      4.5

       

      1.0

       

      0.2

       

      12.2

      Additions

       

      98.2

       

      176.9

       

      102.4

       

      487.7

       

      865.2

      Transfers

       

      18.2

       

      187.9

       

      23.2

       

      –238.2

       

      –8.9

      Disposals

       

      –26.7

       

      –5.6

       

      –6.7

       

      –4.5

       

      –43.5

      Depreciation

       

      –115.0

       

      –487.5

       

      –103.4

       

      –0.7

       

      –706.6

      Impairment losses

       

      –5.3

       

      –40.9

       

      –12.2

       

      –0.6

       

      –59.0

      Reversal of impairment losses

       

      0.6

       

      1.5

       

      0.2

       

      0.0

       

      2.3

      Net exchange differences

       

      –8.5

       

      –19.3

       

      –2.8

       

      –2.9

       

      –33.5

      Carrying amount as of March 31, 2023

       

      1,815.8

       

      2,455.2

       

      364.3

       

      1,027.2

       

      5,662.5

       

       

       

       

       

       

       

       

       

       

       

      Changes in the scope of consolidation

       

      4.5

       

      –2.4

       

      –0.6

       

      –1.3

       

      0.2

      Additions

       

      139.9

       

      334.7

       

      115.6

       

      581.8

       

      1,172.0

      Transfers

       

      303.9

       

      433.8

       

      36.6

       

      –785.6

       

      –11.3

      Disposals

       

      –6.0

       

      –6.4

       

      –3.7

       

      –3.3

       

      –19.4

      Depreciation

       

      –124.7

       

      –488.4

       

      –108.0

       

      0.0

       

      –721.1

      Impairment losses

       

      –12.8

       

      –11.8

       

      –2.1

       

      –14.5

       

      –41.22

      Reversal of impairment losses

       

      0.0

       

      0.9

       

      0.0

       

      0.0

       

      0.9

      Net exchange differences

       

      –1.7

       

      –4.3

       

      –1.0

       

      –0.4

       

      –7.4

      Reclassification of assets held for sale

       

      –40.1

       

      –22.5

       

      –7.3

       

      0.0

       

      –69.9

      Carrying amount as of March 31, 2024

       

      2,078.8

       

      2,688.8

       

      393.8

       

      803.9

       

      5,965.3

       

       

       

       

       

       

       

       

       

       

       

      1
      Business year 2022/23, retroactively adjusted.
      2
      Less impairment losses on assets held for sale of EUR 84.3 million.

      In millions of euros

      As of March 31, 2024, restrictions on the disposal of property, plant and equipment were EUR 0.0 million (March 31, 2023: EUR 0.0 million). Furthermore, as of March 31, 2024, commitments for the purchase of property, plant and equipment were EUR 795.9 million (March 31, 2023: EUR 421.6 million).

      Borrowing costs related to qualifying assets in the amount of EUR 12.1 million (2022/23: EUR 10.0 million) were capitalized in the reporting period. The calculation was based on an average borrowing rate of 2.9% (2022/23: 1.9%).

      In the business year 2022/23, the Management Board resolved, and the Supervisory Board approved the sale of a property in Düsseldorf, Germany, which was largely not required for operating purposes and had a carrying amount of EUR 23.4 million. This led to negotiations with several interested parties. The sale is in line with the strategy of selling assets not required for operating purposes. The proceeds from the sale of this property in the business year 2022/23 came to EUR 156.0 million. A lease agreement was concluded for those portions of the property that are required for operating purposes. The property was allocable to the High Performance Metals Division.

      RIGHT-OF-USE ASSETS AS PER IFRS 16

      The Group leases mainly land, buildings, and manufacturing facilities as well as vehicle fleets including locomotives. Most of the leases contain renewal options and rights to terminate, some of which are also stipulated in conjunction with non-cancelable lease terms.

      In some cases, the Group has the option to purchase the assets at the end of the contractually agreed period.

      The lease payments typically are either fixed or based on market interest rates or indices (e.g., the consumer price index (CPI)). A few leases provide for variable lease payments (e.g., usage-based leases).

      The carrying amount of each class of right-of-use assets pursuant to IFRS 16, which are shown in property, plant and equipment, is as follows:

       

       

      Property, plant and equipment

       

      Total

       

       

      Land, land rights, and buildings

       

      Plant and equipment

       

      Fixtures and fittings

       

       

       

       

       

       

       

       

       

       

       

      Carrying amount as of April 1, 2022

       

      285.4

       

      11.0

       

      36.4

       

      332.8

       

       

       

       

       

       

       

       

       

      Changes in the scope of consolidation

       

      0.8

       

      0.2

       

      0.0

       

      1.0

      Additions

       

      51.8

       

      6.0

       

      12.5

       

      70.3

      Transfers

       

      –4.7

       

      0.0

       

      0.0

       

      –4.7

      Disposals

       

      –7.1

       

      –0.1

       

      –0.9

       

      –8.1

      Depreciation

       

      –33.8

       

      –3.1

       

      –10.3

       

      –47.2

      Impairment

       

      –0.4

       

      0.0

       

      0.0

       

      –0.4

      Reclassification of discontinued operations

       

      –1.2

       

      –0.1

       

      0.0

       

      –1.3

      Carrying amount as of March 31, 2023

       

      290.8

       

      13.9

       

      37.7

       

      342.4

       

       

       

       

       

       

       

       

       

      Changes in the scope of consolidation

       

      –0.1

       

      0.0

       

      0.0

       

      –0.1

      Additions

       

      72.7

       

      2.3

       

      17.2

       

      92.2

      Transfers

       

      –8.4

       

      –0.2

       

      0.0

       

      –8.6

      Disposals

       

      –4.1

       

      –0.9

       

      –0.3

       

      –5.3

      Depreciation

       

      –38.8

       

      –4.1

       

      –12.4

       

      –55.3

      Impairment

       

      –0.3

       

      –0.3

       

      0.0

       

      –0.6

      Reclassification of discontinued operations

       

      –0.8

       

      0.1

       

      –0.1

       

      –0.8

      Carrying amount as of March 31, 2024

       

      311.0

       

      10.8

       

      42.1

       

      363.9

       

       

       

       

       

       

       

       

       

      In millions of euros

      LEASE EXPENSES IN THE CONSOLIDATED INCOME STATEMENT

       

       

      2022/23

       

      2023/24

       

       

       

       

       

      Interest expenses for lease liabilities

       

      8.3

       

      11.4

      Expenses for short-term leases

       

      8.8

       

      8.0

      Expenses for small-ticket leases

       

      7.7

       

      10.2

      Expenses for variable lease payments

       

      4.0

       

      5.5

       

       

       

       

       

      In millions of euros

      The total cash outflows for leases are EUR 98.9 million (2022/23: EUR 78.2 million). In addition to repayments, this also includes cash outflows from short-term leases, small-ticket leases, and variable lease payments.

      The expected future variable lease payments are mainly based on a consumption or production component (particularly in the case of PPAs). To estimate these payments, historical data is used where available or future developments are forecast. Based on the contracts concluded as of March 31, 2024, the future variable lease payments amount to EUR 68.8 million. The remaining terms are mainly 9 – 23 years.

      As of March 31, 2024, there were no material leases that had not yet been made available and thus had not yet been recognized.

      The effect of the measurement of residual value guarantees and purchase options on the carrying amount is deemed negligible.

      EFFECT OF RENEWAL AND TERMINATION OPTIONS

      Renewal and termination options can be exercised without the lessor’s approval. The fact that leases contain termination and renewal options gives the operating units of the voestalpine Group, which are responsible for utilizing the assets, a high degree of operational flexibility. The resulting flexibility and thus the range of potential future lease payments that have not yet been recognized in the statement of financial position is high. voestalpine generally assumes that renewal options will be exercised.

      As regards the maturity analysis of lease liabilities, see Note 20. Financial liabilities.

      RECONCILIATION OF DEPRECIATION, AMORTIZATION, AND IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND OTHER NON-CURRENT ASSETS BY FUNCTIONAL CLASSIFICATION

       

       

      2022/231

       

      2023/24

       

       

       

       

       

      Cost of sales

       

      633.6

       

      649.5

      Distribution costs

       

      41.9

       

      43.1

      Administrative expenses

       

      44.3

       

      44.4

      Other operating expenses

       

      201.3

       

      359.8

       

       

      921.1

       

      1,096.8

       

       

       

       

       

      1
      Business year 2022/23, retroactively adjusted.

      In millions of euros

      Other operating expenses for the business year 2023/24 contain EUR 337.9 million (2022/23: EUR 178.9 million) in impairment losses on property, plant and equipment, other intangible assets, other non-current assets and goodwill.

      IFRS (International Financial Reporting Standards)
      Accounting regulations developed to guarantee comparable accounting and disclosure.