Page 36 - Annual Report KELAG Group 2018

The following income tax rates were used for the fully consolidated entities:

Bosnia and Herzegovina 10 10
Bulgaria 10 10
Kosovo 10 10
Croatia 12/18 12/18
Macedonia 10 10
Montenegro 9 9
Austria 25 25
Romania 16 16
Serbia 15 15
Slovenia 19 19
Czech Republic 19 19

The financial instruments in the KELAG Group can be broken down into non-derivative and
derivative financial instruments. In the case of KELAG, commodity forwards relating to energy
(electricity and gas) as defined in IFRS 9 constitute derivative financial instruments. The derivative
financial instruments are recognised at fair value. The measurement basis in the field of electricity
is provided by the market prices on the European Energy Exchange (EEX) on the last active trading
day for annual products for the years 2018 to 2021. For gas products, fair value is measured in line
with the procedure for electricity products, using the listings of the corresponding virtual trading
points. The resulting measurement levels are defined as follows in accordance with IFRS 7 (with
reference to IFRS 13):

Level 1: Quoted prices for similar instruments. This means that measurement is based on
unadjusted prices of products traded on active markets.

Level 2: Inputs other than those included within level 1 that are directly observable. This means
that measurement is based on models which in turn have observable parameters (quotations) as
inputs. In the KELAG Group the fair values are measured on the basis of over-the-counter energy
futures. Their values are determined from forward price curves that are based on exchange prices.

Level 3: Inputs that are not based on observable market data.