Consolidated financial statements

D. Scope of consolidation

1. Consolidated companies

The consolidated financial statements of Wien Energie Group encompass all of those companies necessary to represent a true and fair picture of the asset, financial and earnings positions of the Group. The scope of consolidation is determined in accordance with Section 247 (1) of the Austrian Commercial Code (UGB). The following table provides an overview of the number of companies fully and proportionally consolidated, and those accounted for under the equity method:

For an overview of the fully and proportionally consolidated companies and those accounted for under the equity method, please refer to Annex 1 of the Notes to the Consolidated Financial Statements.

Wienstrom GmbH and Wien Energie Gasnetz GmbH jointly act as limited partners holding a combined total of 100% of the assets and shares in earnings of Wien Energie Vertrieb GmbH & Co KG. Energie Allianz Austria GmbH acts as a general partner without a capital contribution. On the basis of the agreement applying to Energie Allianz Austria GmbH, Wien Energie Vertrieb GmbH & Co KG is jointly managed. Pursuant to Section 262 (1) of the Austrian Commercial Code, Wien Energie Vertrieb GmbH & Co KG is therefore consolidated in these financial statements on the basis of the proportional share of the capital (assets) held by the Group, i.e. 100%.

On the basis of the framework agreement concluded between the shareholders of EconGas GmbH, Wien Energie Gasnetz GmbH exercises a significant influence on the commercial and corporate policies of EconGas GmbH. EconGas GmbH is therefore consolidated in these financial statements applying the equity method as an associated company.

A total of 14 subsidiaries (prior year: 14) were not fully consolidated. A further 16 companies were also not consolidated applying the equity method. The consolidation of the abovementioned companies was not material to providing a true and fair picture of the assets, financial and earnings positions of the Group (Section 249 (2) and Section 263 (2) of the UGB). Those subsidiaries not fully consolidated are generally characterised by low turnover figures. The total assets (balance sheet total) of these subsidiaries represent less than 3% of the consolidated balance sheet total.

No foreign subsidiaries have been consolidated in these financial statements and there has therefore been no currency translation of related assets or liabilities.

2. Changes in the scope of consolidation during the financial year

There have been no changes in the scope of consolidation during 2007/2008 compared to the preceding financial period.