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 income 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. 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.

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.

The changes in the scope of consolidation are as follows:

In the 2024/25 fiscal year, a 70% interest in da emobil GmbH (Energy Segment, Austria, 70% interest) was acquired and included in the consolidated financial statements for the first time on a fully consolidated basis. The company’s main purpose is to expand the charging network for e-mobility. Goodwill results from future profit opportunities. The company generated sales revenue of EUR 20.4 million and EBIT of EUR 0.6 million in the current fiscal year. Its first-time inclusion in the consolidated financial statements presents the following picture:

ARBA 1 s.r.l. (Energy Segment, Italy, 100%) was also acquired and included in the consolidated financial statements for the first time. The company is involved in electricity generation using PV systems. The implications for the first-time inclusion in the Consolidated Financial Statements are insignificant.

On 16 December 2024, EP Energie Plus GmbH (Energy Segment, Austria, 100%) was established. The operational unit ‘sigi Strom und Gas’ of Energie AG Oberösterreich Vertrieb GmbH was subsequently spun off to EP Energie Plus GmbH.

In the 2024/25 fiscal year, the Kobernaußerwald FlexCo wind farm was established to generate electricity from wind turbines (Energy Segment, Austria, 45% share). The joint venture is included in the Consolidated Financial Statements using the equity method. The implications for the first-time inclusion in the Consolidated Financial Statements are insignificant.

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