Changes in the scope of consolidation

The changes made in the scope of consolidation during the first half of the business year 2023/24 were as follows:

The following fully consolidated entities were deconsolidated during the first half of the business year 2023/24:

At the end of May, the sale of voestalpine High Performance Metals Portugal, Unipessoal, Lda, Portugal, was completed in the High Performance Metals Division in the Value Added Services unit. voestalpine decided to divest the company due to the decline of the Portuguese market in the automotive industry. The core business of the Portuguese subsidiary was the distribution of Buderus brand materials. With the sale to one of the largest distributors in Portugal, the presence of the Buderus brand in Portugal continues to be secured. The company generated revenue of around EUR 6.2 million in fiscal year 2022/23 and employed 31 people.

The sale of the company has the following effects on the Interim Consolidated Financial Statements:

The following entities are being included in the Interim Consolidated Financial Statements for the first time as of the first half of the business year 2023/24:

The additions of fully consolidated entities to the scope of consolidation include one newly established entity, and the consolidation of one entity not previously included in the Interim Consolidated Financial Statements.

As part of an asset deal, voestalpine Railway Systems Nortrak LLC, USA, a company of the Metal Engineering Division, acquired the corresponding production facilities for the manufacture of concrete sleepers for the North American railroad market. In the course of the transaction, 21 employees were taken over. This asset deal strengthens the strategic market position of voestalpine Railway Systems Nortrak LLC, USA, by integrating concrete sleepers for the running railroad track into the existing product portfolio. This product expansion is a significant milestone in the company’s development into a complete system solution provider for railroad infrastructure in North America.

The asset deal has the following impact on the Interim Consolidated Financial Statements:

After the balance sheet date, voestalpine subsidiary Nedcon B.V., headquartered in Doetinchem, the Netherlands, a company of the Metal Forming Division, acquired 100% of the shares of warehouse and racking specialist Torri S.P.A., Vicenza, Italy, and Torri Immobiliare Srl, Milan, Italy, with transfer of effective control on October 17, 2023.

Torri S.P.A. is a provider of racking solutions and is active in the design, manufacture and sale of high-bay warehouses. It employs around 135 people and has two sites, one with manufacturing and one for separate warehousing.

As regards the first-time full consolidations pursuant to IFRS 3, note that due to time constraints and/or the fact that not all valuations have been completed, the following items shall be considered provisional: property, plant and equipment; intangible assets; as well as inventories and provisions—and consequently goodwill as well.

The provisional fair values are as follows and have not yet been recognized as of September 30, 2023:

Of the acquisition costs of EUR 23.5 million, EUR 17.0 million had already been paid as security for this acquisition as of September 30, 2023.

The acquisition complements the existing product and service offering of the Nedcon Group. The acquisition enables the Metal Forming Division not only to consistently pursue its strategy of complex bearing systems from development to assembly, but also to better serve the Southern European market. The product portfolio and the market orientation give reason to expect a significant improvement of the market position.

The expected goodwill of EUR 4.1 million results from the earnings potential of the company and, in accordance with IFRS, cannot be allocated to items that can be capitalized individually so it will be allocated to the goodwill-carrying Warehouse & Rack Solutions unit.

If the acquisitions had already been consolidated as of April 1, 2023, the reported consolidated revenues would have been approximately EUR 40.0 million higher and the reported Group’s profit after tax would have been approximately EUR 0.6 million higher. As part of the first-time full consolidation of Torri S.P.A., fair values for trade receivables of EUR 11.2 million (gross carrying amount: EUR 11.2 million) and for other receivables of EUR 15.7 million (gross carrying amount: EUR 15.7 million) will be taken over. Receivables that are probably uncollectible are considered immaterial.

In the current reporting period, EUR 2.1 million were paid for previous acquisitions in accordance with IFRS 3.