D.23. Other financial obligations

There are long-term purchase commitments in connection with the Group’s raw material and energy supply, which are managed by procurement management. As of the balance sheet date, there are long-term supply contracts for raw materials (in particular HBI, iron ore, coke, and coal) and operating supplies (in particular oxygen and nitrogen) resulting in other financial obligations with a nominal value of EUR 3,962.7 million. The majority of these are based on variable price formulas and are therefore considered to be transferable in the market. The remaining terms range from 2 to 15 years.

In addition, there are other financial obligations with a nominal value of EUR 174.5 million from long-term energy purchase agreements (band hedges with energy supply companies and Power Purchase Agreements that do not fall under IFRS 16), the majority of which are based on fixed prices. The remaining terms are mainly between 2 and 20 years. For long-term forward contracts on emission allowances with a remaining term of more than 12 months and up to 2 years, future payment obligations amount to EUR 18.7 million. In application of the own use exemption in accordance with IFRS 9 these long-term energy purchase agreements and forward contracts on emission allowances are not measured as derivatives.