Scope of Consolidation

In addition to RWE AG, the consolidated financial statements contain all material German and foreign companies which RWE AG controls directly or indirectly. Material associates and joint ventures are accounted for using the equity method Glossary.

Investments in subsidiaries, joint ventures or associates which are of secondary importance from a Group perspective are accounted for in accordance with IAS 39. Subsidiaries which are not included in the scope of consolidation account for less than 1 % of the Group’s revenue, income and debt. Subsidiaries with negative income or equity are generally fully consolidated.

A collective listing of the Group’s investments in accordance with Sec. 313, Para. 2, Nos. 1 to 4 and Para. 3 of the German Commercial Code (HGB) will be published in the electronic Federal Gazette (Bundesanzeiger). Material consolidated investments, investments accounted for using the equity method, and other investments are listed in the chapter investments.

In the year under review, 19 companies domiciled in Germany and 23 companies outside of Germany were consolidated for the first time. Five companies, all of which are headquartered outside of Germany, are no longer included in the scope of consolidation. Seven companies domiciled in Germany and two outside of Germany were merged. Eight associates, including seven outside of Germany, were accounted for using the equity method for the first time. Three investments in Germany, which had been accounted for using the equity method Glossary in the previous year, were sold or are no longer accounted for using the equity method on the basis of materiality. First-time consolidation and deconsolidation generally take place when control is transferred.

A total of €280 million was used to acquire companies which were consolidated for the first time (previous year: €19 million).