Page 14 - Annual Report KELAG Group 2018

KELAG functions as the parent company of these consolidated financial statements. The
consolidated financial statements include all entities that are controlled by the parent company
and included by means of full consolidation (“subsidiaries”).

A change in the ownership interest of a subsidiary without involving the loss of control is
accounted for as an equity transaction. If the parent company loses control over a subsidiary, it
takes the following steps:

 Derecognises the assets (including goodwill) and liabilities of the subsidiary;
 Derecognises the carrying amount of any non-controlling interest in the former subsidiary;
 Derecognises the cumulative currency translation differences recorded in equity;
 Recognises the fair value of the consideration received;
 Recognises the fair value of any investment retained;
 Recognises any resulting gain or loss through profit or loss;
 Reclassifies the parent’s share of components previously recognised in other comprehensive
income to profit or loss or accumulated profits or losses, as appropriate under the relevant IFRS
requirements.

In addition to KELAG as parent company, the consolidated financial statements include 31
subsidiaries (prior year: 32) and 12 associates (prior year: 4). As explained in the disclosures to the
IFRS 9 amendments in the KELAG Group (in accounting policies), the increase in the number of
investments accounted for using the equity method is primarily attributable to the amended
subsequent measurement method for investments previously carried at cost pursuant to IAS 39
rather than to acquisitions of additional investments. Only KELMIN GmbH, in which KELAG Energie
& Wärme GmbH holds an investment and which was accounted for using the equity method for
the first time in the current financial year, was founded in the financial year 2018.

The former KELAG Wärme GmbH was renamed KELAG Energie & Wärme GmbH in the financial
year 2018. This had no effect on the shareholding. KELAG Energie & Wärme GmbH is a wholly
owned subsidiary of KELAG.

The following changes in the scope of consolidation at the subgroup of Interenergo d.o.o., in
which KELAG holds 100% of the shares, took place in the financial year 2018:

 Interenergo d.o.o. acquired 100% of the shares in Vjetropark Jasenice d.o.o. with registered
offices in Jasenice, Croatia. This acquisition does not fall within the scope of IFRS 3 because it was
not of a business, but rather of a group of assets as defined by IFRS 3.2b). The purchase price for
the shares in Vjetropark Jasenice d.o.o. came to roughly EUR 3m.
 IEP energija d.o.o. Gornji Vakuf-Uskoplje was merged into Inter-Energo d.o.o. Gornji Vakuf-
Uskoplje in the course of an associate merger.
 Interenergo d.o.o. Zagreb was liquidated.