Notes on financial instruments

Categories of financial instruments

Categories

 

Financial assets measured at AC1

 

Hedge accounting

 

Financial assets measured at FVTPL

 

Total

 

 

 

 

 

 

 

 

 

Assets 03/31/2024

 

 

 

 

 

 

 

 

Other financial assets, non-current

 

2.9

 

 

60.2

 

63.1

Trade receivables, other receivables and other assets

 

1,097.5

 

5.5

 

176.5

 

1,279.5

Other financial assets, current

 

54.9

 

 

103.3

 

158.2

Cash and cash equivalents

 

1,322.1

 

 

 

1,322.1

 

 

2,477.4

 

5.5

 

340.0

 

2,822.9

 

 

 

 

 

 

 

 

 

1
The carrying amount of the financial assets measured at AC represents an adequate approximation of the fair value.

 

 

In millions of euros

Categories

 

Financial assets measured at AC1

 

Hedge accounting

 

Financial assets measured at FVTPL

 

Total

 

 

 

 

 

 

 

 

 

Assets 09/30/2024

 

 

 

 

 

 

 

 

Other financial assets, non-current

 

2.8

 

 

61.0

 

63.8

Trade receivables, other receivables and other assets

 

1,015.3

 

15.2

 

198.0

 

1,228.5

Other financial assets, current

 

 

 

98.0

 

98.0

Cash and cash equivalents

 

346.2

 

 

 

346.2

 

 

1,364.3

 

15.2

 

357.0

 

1,736.5

 

 

 

 

 

 

 

 

 

1
The carrying amount of the financial assets measured at AC represents an adequate approximation of the fair value.

 

 

In millions of euros

Categories

 

Financial liabilities measured at AC

 

Hedge accounting

 

Financial liabilities measured at FVTPL

 

Total

 

 

Carrying amount

 

Fair value

 

Carrying
amount
(= fair value)

 

Carrying
amount
(= fair value)

 

Carrying amount

 

Fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities 03/31/2024

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities, non-current

 

1,459.7

 

1,414.8

 

 

 

1,459.7

 

1,414.8

Financial liabilities, current

 

1,688.0

 

1,680.4

 

 

 

1,688.0

 

1,680.4

Trade and other payables1

 

1,904.3

 

1,904.3

 

29.5

 

11.5

 

1,945.3

 

1,945.3

Trade payables from bills of exchange and trade payables from reverse factoring agreements1

 

868.3

 

868.3

 

 

 

868.3

 

868.3

Total

 

5,920.3

 

5,867.8

 

29.5

 

11.5

 

5,961.3

 

5,908.8

 

 

 

 

 

 

 

 

 

 

 

 

 

1
The carrying amount of the trade and other payables, the trade payables from bills of exchange, and the payables from reverse factoring agreements represents an adequate approximation of the fair value.

 

 

In millions of euros

Categories

 

Financial liabilities measured at AC

 

Hedge accounting

 

Financial liabilities measured at FVTPL

 

Total

 

 

Carrying amount

 

Fair value

 

Carrying
amount
(= fair value)

 

Carrying
amount
(= fair value)

 

Carrying amount

 

Fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities 09/30/2024

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities, non-current

 

1,443.1

 

1,410.3

 

 

 

1,443.1

 

1,410.3

Financial liabilities, current

 

1,072.1

 

1,072.0

 

 

 

1,072.1

 

1,072.0

Trade and other payables1

 

1,688.6

 

1,688.6

 

14.5

 

11.3

 

1,714.4

 

1,714.4

Trade payables from bills of exchange and trade payables from reverse factoring agreements1

 

778.3

 

778.3

 

 

 

778.3

 

778.3

Total

 

4,982.1

 

4,949.2

 

14.5

 

11.3

 

5,007.9

 

4,975.0

 

 

 

 

 

 

 

 

 

 

 

 

 

1
The carrying amount of the trade and other payables, the trade payables from bills of exchange, and the payables from reverse factoring agreements represents an adequate approximation of the fair value.

 

 

In millions of euros

The financial liabilities measured at amortized cost, excluding bonds issued, fall under Level 2. Valuation is performed according to the discounted cash flow method, whereby the input parameters for the calculation of the fair values are the foreign exchange rates, interest rates, and credit spreads observable on the market. Using the input parameters, the fair values are calculated by discounting estimated future cash flows at market interest rates.

Bonds issued are measured using Level 1 inputs based on the quoted price as of the reporting date.

The table below analyzes regular fair value measurements of financial assets and financial liabilities. These measurements are based on a fair value hierarchy that categorizes the inputs included in the valuation methods used to measure fair value into three levels. The three levels are defined as follows:

Inputs

Level 1

 

Comprises quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2

 

Comprises inputs other than the quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3

 

Comprises unobservable inputs for the asset or liability.

Fair value hierarchy levels used for recurring fair value measurements

 

 

Level 1

 

Level 2

 

Level 3

 

Total

03/31/2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets

 

 

 

 

 

 

 

 

Other financial assets, non-current

 

13.7

 

 

46.5

 

60.2

Receivables from derivatives – hedge accounting

 

 

5.5

 

 

5.5

Trade receivables, other receivables and other assets

 

 

3.9

 

172.6

 

176.5

Other financial assets, current

 

103.3

 

 

 

103.3

 

 

117.0

 

9.4

 

219.1

 

345.5

 

 

 

 

 

 

 

 

 

Financial liabilities

 

 

 

 

 

 

 

 

Liabilities from derivatives – hedge accounting

 

 

29.5

 

 

29.5

Trade and other payables

 

 

11.5

 

 

11.5

 

 

 

41.0

 

 

41.0

 

 

 

 

 

 

 

 

 

09/30/2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets

 

 

 

 

 

 

 

 

Other financial assets, non-current

 

14.4

 

 

46.6

 

61.0

Receivables from derivatives – hedge accounting

 

 

15.2

 

 

15.2

Trade receivables, other receivables and other assets

 

 

13.2

 

184.8

 

198.0

Other financial assets, current

 

98.0

 

 

 

98.0

 

 

112.4

 

28.4

 

231.4

 

372.2

 

 

 

 

 

 

 

 

 

Financial liabilities

 

 

 

 

 

 

 

 

Liabilities from derivatives – hedge accounting

 

 

14.5

 

 

14.5

Trade and other payables

 

 

11.3

 

 

11.3

 

 

 

25.8

 

 

25.8

 

 

 

 

 

 

 

 

 

In millions of euros

The derivative transactions (Level 2) are measured using the discounted cash flow method by determining the value that would be realized if the hedging position were closed out (liquidation method). The observable currency exchange rates and raw materials prices as well as interest rates are the input for the calculation of fair values. Fair values are calculated based on the inputs by discounting expected future cash flows at market interest rates.

The voestalpine Group recognizes reclassifications between different levels of the fair value hierarchy as of the end of the reporting period in which the change occurred. There were no reclassifications in the business year 2023/24, nor from April 1, 2024, through September 30, 2024.

The table below presents the reconciliation of Level 3 financial assets measured at fair value between the opening balance and the closing balance, as follows:

Level 3 – FVTPL – Other financial assets – non-current

 

 

04/01–
09/30/2023

 

04/01–
09/30/2024

 

 

 

 

 

Opening balance

 

44.1

 

46.6

 

 

 

 

 

Total of gains/losses recognized in the income statement:

 

 

 

 

Finance costs/Finance income

 

0.0

 

0.0

Closing balance

 

44.1

 

46.6

 

 

 

 

 

In millions of euros

Level 3 includes the equity investment in Energie AG Oberösterreich that is measured at fair value. The fair value of this entity can be reliably determined based on the valuation report that is prepared once a year for Energie AG Oberösterreich as a whole, taking into account all relevant information.

Significant sensitivities in the determination of the fair values may result from changes in the underlying market data of comparable entities and the input factors used to determine the net present value (particularly discount rates, non-current forecasts, plan data, etc.).

Level 3 – FVTPL – trade receivables (sale business model)

 

 

04/01–
09/30/2023

 

04/01–
09/30/2024

 

 

 

 

 

Opening balance

 

193.8

 

172.6

Disposals

 

–193.8

 

–172.6

Additions

 

177.3

 

184.8

Closing balance

 

177.3

 

184.8

 

 

 

 

 

In millions of euros

The receivables in this portfolio are sold monthly on a rolling basis as part of the Group’s factoring programs. The measurement gains or losses allocable to this portfolio are of secondary significance.

The credit risk associated with a particular debtor is the key factor in the fair value determination of the portfolio entitled “Trade and other receivables held for factoring.” Any increase/decrease by 1% in the established default rates thus would change the fair value of this portfolio at most in the same amount; as a rule, however, the fair value change is disproportionately low, because credit insurance has been purchased for significant portions of the portfolio.