3.Scope of consolidation

3.1. Principles

Subsidiaries

All material entities that are directly or indirectly controlled by Energie AG Oberösterreich (subsidiaries) are fully consolidated according to IFRS 10 and included in the Consolidated Financial Statements. Control exists when the investor is exposed or has rights to variable returns from its involvement with the investee and has the ability to use its power over the investee to influence the amount of the investor’s returns. In all cases, the control results from the equity instruments that are held (participating interests in the company and shares).

Joint arrangements

IFRS 11 outlines accounting by entities that jointly control an arrangement. Joint control involves the contractually agreed sharing of control. If the controlling parties have rights to the net assets of the arrangement (joint venture), the equity method is used for financial reporting. If the controlling parties have rights to the assets, and obligations for the liabilities, relating to the agreement (joint operations), the assets and liabilities, as well as the revenues and expenses, are recognised using proportionate consolidation.

Joint operations

Ennskraftwerke Aktiengesellschaft produces electricity with hydropower plants. Gas- und Dampfkraftwerk Timelkam GmbH supplies electricity from the operation of a combined cycle gas-turbine power plant.

The Group holds a strategic interest of 50% in both Ennskraftwerke Aktiengesellschaft and Gas- und Dampfkraftwerk Timelkam GmbH. The entities are not controlled by any party.

Under the existing electricity supply contracts, the investors purchase the electric energy produced by the Group companies, where the internal price is calculated on a pro-rata basis of the production costs, plus a corresponding profit margin. Due to the electricity supply contracts, the parties have rights to the assets attributable to the arrangements. As the arrangements' liabilities can only be settled with these cash flows, the parties have obligations for the liabilities relating to the joint arrangement. Ennskraftwerke Aktiengesellschaft and Gas- und Dampfkraftwerk Timelkam GmbH are therefore classified as joint operations according to IFRS 11.

The share of the assets and liabilities, as well as the revenues and expenses are reported in the Consolidated Financial Statements. The average share of the electricity supply (38%) is used to determine the share for the pro rata recognition of Ennskraftwerke Aktiengesellschaft. The share of the electricity procured from Gas- und Dampfkraftwerk Timelkam GmbH, amounting to 70%, is used for the consolidation of the company.

Joint ventures

Due to special agreements under company law, no control exists for “Papyrus” Altpapierservice Handelsgesellschaft m.b.H. (Salzburg), Papyrus Wertstoff Service GmbH (Bad Reichenhall, Germany) or for Fernwärme Steyr GmbH, despite holding a majority of the voting rights. These entities are controlled jointly with other investors and are therefore accounted for using the equity method.

Due to special agreements under company law, no control over ENAMO GmbH, ENAMO Ökostrom GmbH and Energie AG Oberösterreich Vertrieb GmbH & Co KG existed prior to 31 March 2019. ENAMO GmbH delivered electric energy to key account customers, Energie AG Oberösterreich Vertrieb GmbH & Co KG delivers electricity to private and business customers.

Energie AG Oberösterreich was the sole limited partner of Energie AG Oberösterreich Vertrieb GmbH & Co KG. ENAMO GmbH, a joint venture between Energie AG Oberösterreich Service- und Beteiligungsverwaltungs-GmbH and LINZ STROM GmbH, was general partner.

In line with IFRS 11, ENAMO GmbH, with the subsidiaries Energie AG Oberösterreich Vertrieb GmbH & Co KG and LINZ STROM Vertrieb GmbH & Co KG controlled by it, represented a joint arrangement or joint venture, as these entities were controlled jointly by Energie AG Oberösterreich and LINZ AG für Energie, Telekommunikation, Verkehr und Kommunale Dienste. In accordance with IFRS 11 i.c.w. IAS 28, these companies had to be recognised at equity in the Consolidated Financial Statements prior to 31 March 2019. Due to the contractually agreed shares of the revenues, this amounted to 80% for ENAMO GmbH, 100% for Energie AG Oberösterreich Vertrieb GmbH & Co KG, and 0% for LINZ STROM Vertrieb GmbH & Co KG.

Associated companies

Companies in which Energie AG Oberösterreich exercises a significant influence (associated companies) are consolidated using the equity method. Significant influence exists due to holdings of the entity's share capital. Salzburg AG für Energie, Verkehr und Telekommunikation is an infrastructure provider for energy, transport and telecommunication. Wels Strom GmbH is an energy utility and service company.

Further disclosures

The changes in the scope of consolidation are as follows:

Energy Segment

Energie AG Oberösterreich Businesskunden GmbH (share 100%) was formed on 26 February 2020 and is fully consolidated in the Consolidated Financial Statements. The key account sales of ENAMO GmbH was transferred to this entity and ENAMO GmbH was subsequently liquidated.

Additionally, the operational unit “stromdiskont.at” of ENAMO Ökostrom GmbH was spun off to Energie AG Oberösterreich Vertrieb GmbH.

Czech Republic Segment

In the Czech Republic Segment, Městské tepelné hospodářství Kolín, spol. s r.o was merged with VODOS s.r.o. and changed the company name to Energie AG Kolin a.s. VODOSPOL s.r.o was further merged with CEVAK a.s. The water supply and wastewater disposal company VAK Zápy s.r.o. (100%, Zápy, Czech Republic) was fully consolidated in the Consolidated Financial Statements from 30 September 2020.

Holding & Services Segment

Beginning on 30 November 2019, Wertstatt 8 GmbH was fully consolidated in the Consolidated Financial Statements. The company's activities encompass digital solutions and the development of innovative business models in the field of energy and environmental services.

The implications of the adjustment of the consolidation scope for the Consolidated Financial Statements are insignificant.

In the 2018/2019 fiscal year, the Group (Energy Segment) purchased the remaining 35% interest stake in ENAMO GmbH in addition to the 65% equity interest held previously (acquisition date: 1 April 2019). The acquisition resulted in the Group holding 100% of the shares in ENAMO GmbH as well as, indirectly via ENAMO GmbH, 100% of the shares in ENAMO Ökostrom GmbH. The acquisition also delivered the Group control over Energie AG Oberösterreich Vertrieb GmbH & Co KG. Gaining control over the mentioned entities constituted a corporate merger pursuant to IFRS 3. The equity interests previously held in the acquired companies were remeasured at their fair values as of the acquisition date (successive corporate merger). The fair values for ENAMO GmbH and ENAMO Ökostrom GmbH were derived from the purchase price paid for the acquired interests after deduction of synergy effects included in the purchase price.
The fair value for Energie AG Oberösterreich Vertrieb GmbH & Co KG was determined using the expected cash flow method. The result from the remeasurement of the previously held equity interests' fair value amounted to EUR 48.2 million and was recognised in the other operating revenues.

Joint ventures

The Statement of Financial Position and the Statement of Income of the joint ventures (100%) presents as follows:

Associated companies

The Statement of Financial Position and the Statement of Income of the associated companies (100%) presents as follows:

3.2. Group companies