• Balance Sheet
• Income Statement
• Statement of Changes in Equity
• Segmental Reporting
• Cash Flow Statement
• Notes
  • Notes to the Annual Financial Statements
    • Principles and methods
    • Reporting entity
    • List of Holdings of the MVV Energie Group
    • Consolidation methods
    • Currency conversion
    • Accounting and valuation methods
  • Notes on the Balance Sheet
  • Notes on the Income Statement
  • Relationships to related companies, individuals and entities
  • Statement of Compliance pursuant to Section 161 of German Stock Corporation Law (AktG)
  • Information on concessions
  • Events subsequent to the reporting date
• Audit Opinion

Reporting entity

In addition to MVV Energie AG, 43 German and foreign subsidiaries in which MVV Energie AG directly or indirectly holds a majority of the voting rights have been fully consolidated in the annual financial statements of the MVV Energie Group for the 2004/ 05 financial year (previous year: 43). The relevant control concept set out in IAS 27 requires the parent company to exercise a controlling influence in the case of fully consolidated companies. Six companies have been proportionately consolidated (previous year: six). A further eleven associated companies have been valued using the equity method (previous year: ten).

The companies 24solution GmbH, Kiel, and SWKiel Erzeugung GmbH, Kiel, were fully consolidated for the first time in the past 2004/05 financial year. The companies 3T Telekommunikationsgesellschaft mbH, Offenbach, and Teplárny Brno a.s., Brno, Czech Republic, were deconsolidated on account of their disposal. There has been no change in the number of companies consolidated proportionately. ZVO Versorgungs GmbH, Timmendorfer Strand, was included for the first time using the equity method.

Those subsidiaries with different reporting dates from the parent company have compiled interim financial statements as of the reporting date for the consolidated financial statements.

Moreover, those subsidiaries and other shareholdings which both on an individual basis and as an entirety are of minor significance to the consolidated financial statements in terms of their sales, total assets and earnings contributions, have not been included in the reporting entity, but have instead been reported as financial assets in the consolidated balance sheet.

The companies included in the consolidated financial statements of the MVV Energie Group as of 30 September 2005 have been depicted in the following overview. The equity and annual earnings figures for the fully and proportionately consolidated companies have been taken from their respective financial statements compiled in line with IFRS as of 30 September 2005. In the case of the companies included using the equity method, the respective equity and annual earnings figures have been taken from the most recent available annual financial statements. An extensive list of holdings, which also includes the non-consolidated subsidiaries and other shareholdings which have been reported as financial assets, has been deposited in the Mannheim Commercial Register (HRB 1780).

The changes to the reporting entity resulting from the initial and final consolidation of fully consolidated companies have the following impact pursuant to IAS 27 on the balance sheet and the income statement:

Balance Sheet Euro million 30.9.2005 30.9.2004 Assets   Fixed assets -84.3 575.2   Current assets -19.5 89.9   -103.8 665.1 Liabilities     Equity -11.6 122.4   Provisions -0.3 77.0   Liabilities -86.5 403.1   Deferred taxes -5.4 62.6   -103.8 665.1

Income statement Euro million 2004/2005 2003/2004 Sales -62,1 96,1 Capitalised own-account services -0.1 3.5 Other operating income -1.5 6.4 Cost of materials -39.4 49.6 Personnel expenses -4.2 32.7 Other operating expenses -1.9 18.3 Income from shareholdings 0.9 1.5 EBITDA -17.3 6.9 Depreciation -9.2 14.6 EBITA -8.1 -7.7 Amortisation of goodwill 0.0 -4.4 EBIT -8.1 -3.3 Net interest expenses 1.7 -5.1 EBT -6.4 -8.4 Taxes on income -2.9 -5.6 Annual net deficit -3.5 -2.8 Minority interests -0.9 -2.8 Annual net deficit after minority interest -2.6 0.0

The effects of the consolidation of joint ventures pursuant to IAS 31 are as follows:

Balance Sheet Euro million 30.9.2005 30.9.2004 Assets   Fixed assets 312.5 304.8   Current assets 42.8 39.0   355.3 343.8 Liabilities     Equities 16.8 1.1   Provisions 20.4 19.4   Liabilities 304.4 309.9   Deferres taxes 13.7 13.4   355.3 343.8

Income Statement Euro million 2004/2005 2003/2004 Sales 202.7 187.0 Capitalised own-account services 3.4 2.8 Other operating income 5.8 6.2 Cost of materials 123.3 111.7 Personnel expenses 21.1 20.2 Other operating Expenses 31.3 28.8 Income from shareholdings 0.1 0.0 EBITDA 36.3 35.3 Depreciation 10.5 9.8 EBITA 25.8 25.5 Amortisation of Goodwill 0.0 8.0 EBIT 25.8 17.5 Net interest expenses -1.4 -1.4 EBT 24.4 16.1 Taxes on income 8.8 9.1 Annual net surplus 15.6 7.0