LAS OBJECIONES PRELIMINARES DE COLOMBIA DEBEN DESESTIMARSE. 21

On 22 February 2013, RWE sold its 80 % stake in Gocher Bio- energie GmbH for €30 million. The gain on deconsolidation amounted to €2 million and is reported in the “Other operating income” line item in the income statement. The company was a part of the Renewables Segment.

On the same date, RWE sold its 51 % share in BEB Bio Energie Baden GmbH for €23 million. The loss on deconsolidation amounted to €0.1 million and is reported in the “Other operat- ing expenses” line item in the income statement. The company was a part of the Renewables Segment.

On 8 November 2013, RWE Npower Renewables Ltd. indirectly sold a 49 % stake in the company ML Wind LLP to the fund management company Greencoat UK Wind. Prior to this, the onshore wind farms Lindhurst and Middlemoor had been transferred to ML Wind LLP by way of internal corporate restructuring. The sales price for the 49 % stake in ML Wind LLP amounted to £71 million. RWE still controls the company. With this sale, the share of equity attributable to RWE AG’s share- holders increased by €36 million and the share of minority interests increased by €48 million.

Number of fully consolidated companies

germany Abroad total

1 Jan 2013 164 202 366 First-time consolidation 5 8 13 Deconsolidation − 2 − 7 − 9 Mergers − 7 − 6 − 13 31 Dec 2013 160 197 357 Number of investments accounted for using the equity method

germany Abroad total

1 Jan 2013 67 46 113

Acquisitions 2 2

Disposals − 3 − 12 − 15

transformations 7 − 3 4

On 22 March 2013, RWE sold a 49.9 % stake in Rhyl Flats Wind Farm Ltd., Swindon, United Kingdom, for £115 million. RWE still controls the company, which operates an offshore wind farm off the coast of Wales. With this sale, the share of equity attrib- utable to RWE AG’s shareholders increased by €17 million and the share of minority interests increased by €118 million. On the same date, RWE sold a 41 % stake in Little Cheyne Court Wind Farm Ltd., Swindon, United Kingdom, for £51 million. RWE still controls the company, which operates an onshore wind farm in the County of Kent in the southeast of England. With this sale, the share of equity attributable to RWE AG’s shareholders increased by €32 million and the share of minority interests increased by €27 million.

On 19 September 2013, RWE sold its investment accounted for using the equity method in Excelerate Energy, The Woodlands, USA, which was a part of the Trading /Gas Midstream Segment. On 24 December 2013, the cooperative Dutch pension fund PGGM and the energy services provider Dalkia concluded a contract with RWE on the sale of the heat activities of Essent Local Energy Solutions (ELES). ELES is a part of the Supply Netherlands /Belgium Segment. In addition, PGGM and Dalkia also acquired the combined heating and power stations linked to the district heating network, which belong to the segment Conventional Power Generation. The transaction was approved by the Dutch anti-trust authorities in the first quarter of 2014.

On 18 December 2013, RWE and the Hungarian power utility MVM concluded a contract on the acquisition of RWE’s 49.83 % stake in the FÖGÁZ Group. The purchase price in the transac- tion was HUF41 billion. Transfer of the shares is expected to occur in the first half of 2014, following the necessary approv- als by the competent authorities and the Municipality of Buda- pest, which owns the remaining stake of 50.17 % in FÖGÁZ. The company is part of the Central Eastern and South Eastern Europe Segment.

Within the framework of business transactions, purchase prices amounted to €0 million (previous year: €51 million) and sales prices amounted to €1,236 million (previous year: €378 mil- lion); all payments were made in cash.

Changes in the scope of consolidation resulted in a decrease of €1,345 million in non-current assets (including deferred taxes) and €87 million in cash and cash equivalents, and an increase of €290 million in current assets (excluding cash and cash equivalents); non-current and current liabilities declined by €71 million.

Effects of changes in the scope of consolidation have been stated in the Notes insofar as they are of particular importance.

The financial statements of German and foreign companies included in the scope of the Group’s financial statements are prepared using uniform accounting policies. On principle, subsidiaries whose fiscal years do not end on the Group’s balance-sheet date (31 December) prepare interim financial statements as of this date.

Business combinations are reported according to the acquisi- tion method. This means that capital consolidation takes place by offsetting the purchase price, including the amount of the minority interest, against the acquired subsidiary’s revalued net assets at the time of acquisition. In doing so, the minority interest can either be measured at the prorated value of the subsidiary’s identifiable net assets or at fair value. The subsidi- ary’s identifiable assets, liabilities and contingent liabilities are measured at full fair value, regardless of the amount of the

minority interest. Intangible assets are reported separately from goodwill if they are separable from the company or if they stem from a contractual or other right. In accordance with IFRS 3, no new restructuring provisions are recognised within the scope of the purchase price allocation. If the purchase price exceeds the revalued prorated net assets of the acquired subsidiary, the difference is capitalised as goodwill. If the purchase price is lower, the difference is included in income.

In the event of deconsolidation, residual carrying amounts of capitalised goodwill are taken into account when calculating income from disposals. Changes in the ownership share which do not alter the ability to control the subsidiary are recognised without an effect on income. By contrast, if there is a change in

Consolidation principles

In their individual financial statements, the companies measure non-monetary foreign currency items at the balance-sheet date using the exchange rate in effect on the date they were initially recognised. Monetary items are converted using the exchange rate valid on the balance-sheet date. Exchange rate gains and losses from the measurement of monetary balance-sheet items in foreign currency occurring up to the balance-sheet date are recognised in the income statement under other operating income or expenses.

Functional foreign currency translation is applied when convert- ing the financial statements of companies outside of the Euro- zone. As the principal foreign enterprises included in the con- solidated financial statements conduct their business activities

independently in their national currencies, their balance-sheet items are translated into euros in the consolidated financial statements using the average exchange rate prevailing on the balance-sheet date. This also applies for goodwill, which is viewed as an asset of the economically autonomous foreign entity. We report differences to previous-year translations in other comprehensive income without an effect on income. Expense and income items are translated using annual average exchange rates. When translating the adjusted equity of foreign companies accounted for using the equity method, we follow the same procedure.

The following exchange rates (among others) were used as a basis for foreign currency translations: