E.ON International Finance B.V.
2014 Annual Report
Rotterdam, The Netherlands
Content
Company Board and Management
Report from the Supervisory Board ............................................................................................................... 3
Adoption by the Annual General Meeting of Shareholders ................................................................ 4
Report of the Board of Management ........................................................................................................... 5
Financial Statements of E.ON International Finance B.V.
Balance Sheet (before profit appropriation) ........................................................................................... 10
Income Statement ............................................................................................................................................... 11
Cash flow Statement .......................................................................................................................................... 12
Notes ......................................................................................................................................................................... 13
Additional Information
29
Auditors report
30
Financial Statements of E.ON International Finance B.V.
Report from the Supervisory Board
At the end of 2014 the Supervisory Board comprised the following members:
 Mrs. V. Volpert
 Mrs. C. Mencke
 Mr. S.W. Hloch
The composition of the members of the Board did not change during the reporting year.
The Supervisory Board met once on March 26, 2014. During this meeting the Board of
Management presented the business results for the year 2013 which were discussed and
approved by the Supervisory Board. Also, the planned activities for 2014 were discussed.
In 2014 E.ON International Finance B.V. issued no new bonds into the international capital
markets due to the ongoing strong liquidity situation of the E.ON Group. Instead, similar to
previous years E.ON International Finance B.V. again engaged into liability management
transactions. Besides, E.ON International Finance B.V. continued to be an important liquidity
provider and financing hub within the E.ON Group and is constantly prepared to act in the debt
capital markets if deemed appropriate.
The financial statements 2014 have been audited and were given an unqualified report by the
auditors of PricewaterhouseCoopers. The auditor’s report is included in this report.
The Income Statement for the year 2014 discloses a Net Profit of € 24.7 million.
The Supervisory Board approves the proposal made by the Board of Management to add this
amount to the ”Other reserves”.
The Supervisory Board recommends that the General Meeting of Shareholders adopts the
financial statements for the year 2014.
The Supervisory Board takes this opportunity to express its appreciation for the performance of the
management during the past year.
Rotterdam, March 26, 2015
Mrs. V. Volpert
Mrs. C. Mencke
Mr. S.W. Hloch
3
Financial Statements of E.ON International Finance B.V.
Adoption by the Annual General Meeting of Shareholders
In accordance with Article 20(8) of the Articles of Association, the Annual General Meeting of
Shareholders has adopted the 2014 financial statements of E.ON International Finance B.V.
The Income Statement discloses a Net Profit of € 24.7 million. The entire amount of € 24.7 million
will be added to the “Other reserves”.
Rotterdam, March 26, 2015
E.ON SE
4
Financial Statements of E.ON International Finance B.V.
Report of the Board of Management
General information
Composition of the Board of Management
At the end of 2014 the Board of Management comprised the following members:
 Mr. J. Otto
 Mr. R. Toering
During 2014, the composition of the Board of Management has changed compared to the financial
year ended December 31, 2013. Effective June 1, 2014 Mr. J. Trapman resigned as Member of the
Board of Management of E.ON International Finance B.V. Effective November 1, 2014 also Mr. M.
Bokelmann resigned as Member of the Board of Management of E.ON International Finance B.V.
The ratio between men and women in the Board of Management does not comply with the
required minimum ratio according to the Act for Governance and Supervision (“Wet Bestuur en
Toezicht”).
Company objectives and core activities
According to article 3 of the Articles of Association of E.ON International Finance B.V., the
objectives of E.ON International Finance B.V. are:




to borrow, to lend and to raise funds, including the issue of bonds, promissory notes or
other securities or evidence of indebtedness as well as to enter into agreements in
connection with aforementioned activities;
to participate in any way whatsoever in, to manage, to incorporate and to supervise
businesses and companies;
to perform any and all activities of a commercial or financial nature;
and to do all that is connected therewith or may be conductive thereto, all to be interpreted
in the broadest sense.
The principal activity of E.ON International Finance B.V. is the financing of E.ON Group entities
mainly via the issuance of bonds or other securities, or by taking deposits or intra-group loans.
Composition of the Group
E.ON International Finance B.V., a corporation with limited liability, having its statutory seat in
Rotterdam, The Netherlands, considers E.ON SE, Düsseldorf, Germany to be its ultimate parent
company. The financial information of E.ON International Finance B.V. is included in the
consolidated financial statements of E.ON SE, Germany. Copies of the consolidated financial
statements of E.ON SE can be obtained from E.ON SE in Düsseldorf.
Internal organisation
At the end of 2014 E.ON International Finance B.V. had no own employees (2013: 0). All
personnel is either seconded from other E.ON Group companies or employed by E.ON Benelux
N.V. under a service level agreement.
Market review
The international capital markets in general continued the positive trends started in previous years
also during 2014, with however somewhat increased volatilities in the second half of the year
which were mainly triggered by geopolitical developments. On the monetary side the European
Central Bank continued also 2014 with clear actions of liquidity support while other Central Banks
at the same time continued to reduce liquidity support measures. On foreign exchange rates the
volatility increased on emerging market currencies especially during the first half of the year.
During the second half of the year, however, the Euro substantially weakened against the main
5
Financial Statements of E.ON International Finance B.V.
currencies – namely U.S. Dollar, British Pound and also Japanese Yen – which was mostly
triggered by the differences in Central Bank actions, but also by different macroeconomic
developments. On the interest side, the actions of the European Central Bank again resulted in
new historical low levels both for short term rates and long term rates, with overnight rates even
turning negative in the fourth quarter of the year. Credit spreads also continued their tightening
trend in 2014, with almost all European sovereign issuers benefiting from that and some even
realizing temporally negative yields. Corporate credit spreads also developed positively, with noninvestment grade spreads however experiencing the biggest tightening due to the strong demand.
In general, corporate issuers where able to realize historically low coupons while at the same time
even issuing very long dated maturities. Utility spreads also participated in that positive
development. As to issuance volumes, the Euro corporate bond market issuance activity increased
compared to previous year levels becoming the second best year over the last decade. Also net
supply following redemptions remained positive for the corporate market.
Business review
In 2014 E.ON International Finance B.V. did not issue any new notes. Instead, in July 2014 E.ON
International Finance B.V. engaged in a liability management transaction and offered to
repurchase three bonds with a nominal value of € 5 billion. In total a nominal volume of € 1 billion
was repurchased and subsequently cancelled. In addition, in November 2014 E.ON International
Finance B.V. fully repurchased all notes of a € 0.2 billion bond that it was offered from a single
investor. As the corresponding nominal values of intra-group loans have also been repaid early
there has been no P&L impact from the early redemptions.
Additionally, bonds valuing € 3.2 billion matured in 2014. Together with foreign exchange effects
the total amount of notes outstanding as of December 31, 2014 decreased to € 14.2 billion. At year
end 2013 E.ON International Finance B.V. had € 18.0 billion of bonds outstanding.
Apart from the above mentioned foreign exchange effects on the Euro value of Non-Euro
denominated bonds, the market developments only had a limited impact on E.ON International
Finance B.V.’s bond business. Throughout 2014 E.ON secondary bond spreads again continued
its tightening trend, revealing the continued investor confidence in the E.ON credit.
In terms of the intra-group financing business, in 2014 E.ON International Finance B.V. continued
taking up intra-group loans or E.ON SE guaranteed short term deposits to fund lending activities to
other E.ON Group companies. During 2014 the volumes of the intra-group loans slightly decreased
due to some loan repayments which could not be replaced by new lending business. As of
December 31, 2014 the total short term loan portfolio amounted to € 4.7 billion compared to a
portfolio of € 5.4 billion as of year-end 2013. Additionally, E.ON International Finance B.V. held
liquidity amounting to € 1.1 billion as of December 31, 2014.
As a result of the above, the total asset base decreased from € 24.3 billion at year-end 2013 to
€ 20.6 billion as of December 31, 2014. Furthermore, E.ON International Finance B.V.’s net profit
decreased from € 28.6 million to € 24.7 million. Major reasons were the on-average lower lending
volumes in both the treasury activities and the bond business activities.
In April 2014, E.ON’s Debt Issuance Programme was extended for another year. The Debt
Issuance Programme enables both E.ON SE and E.ON International Finance B.V. to issue debt to
investors in public and private placements. The total programme volume is unchanged at
€ 35 billion. Except for the US Dollar benchmark bonds issued in 2008, all other notes outstanding
are issued under this programme.
In November 2013 E.ON entered into a new € 5 billion Syndicated Dual Currency Revolving Credit
Facility Agreement. The new facility has a tenure of 5 years plus two extension options of each one
year and can therefore be in place until 2020. In November 2014 the first extension option had
been exercised resulting currently in a tenure until 2019. During 2014 no drawings were made
under both facilities.
Additionally, E.ON International Finance B.V. continues to be a potential issuer under the
€ 10 billion Multi-Currency Commercial Paper Programme. During 2014 also no drawings were
made on behalf of E.ON International Finance B.V. under the € 10 billion Multi-Currency
Commercial Paper Programme.
6
Financial Statements of E.ON International Finance B.V.
E.ON continues to have credit ratings assigned from both Standard & Poor’s (“S&P”) and Moody’s.
Long-term credit ratings assigned are A- and A3, respectively. The short-term ratings are A-2
(S&P) and P-2 (Moody´s). Following E.ON’s announcement of a new strategy in December 2014,
both agencies placed its respective ratings under review for a potential downgrade, with a final
result still being open. As all bonds issued are guaranteed by E.ON SE, the ratings continue to be
a significant support of the bond business of E.ON International Finance B.V.
Financial information
Financial performance
E.ON International Finance B.V. closed the financial year 2014 with a profit from ordinary activities
before taxes of € 32.7 million, compared to € 38.2 million in 2013. This decrease is due to on
average lower lending volumes.
Risk Management
E.ON International Finance B.V. manages its risks with the procedures and systems used within
the E.ON Group. The Board is of the opinion that these procedures and systems provide an
adequate risk management for E.ON International Finance B.V.
Cash flows and financing needs
E.ON International Finance B.V.’s financing needs are directly related to funding requests of other
E.ON Group companies.
Financial instruments
Financial risk factors
E.ON International Finance B.V.’s activities expose it to a variety of financial risks: market risk
(including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk),
credit risk and liquidity risk. E.ON International Finance B.V.’s overall risk management program
focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects
on E.ON International Finance B.V.’s financial performance.
Market risk
Market risk is defined as the risk of a loss due to a negative change of market prices. Due to the
international nature of its business activities, E.ON International Finance B.V. is exposed to
exchange risks related to income, expenses, receivables and liabilities denominated in foreign
currencies. E.ON International Finance B.V.’s exposure results mainly from transactions in U.S.
Dollars, British Pounds and Swedish Krona.
According to the risk management policy set up by management, E.ON International Finance B.V.
is required to hedge its foreign exchange rate risk. To minimize its foreign exchange risk arising
from future transactions and recognized assets and liabilities E.ON International Finance B.V. uses
cross-currency swaps, transacted with E.ON SE.
E.ON International Finance B.V.’s interest rate risk arises from assets and liabilities having either a
different interest rate base (fixed vs. variable) or different tenures (short term vs. long term). Bonds
and loans issued at variable rates expose E.ON International Finance B.V. to cash flow interest
rate risk. Bonds and loans issued at fixed rates expose E.ON International Finance B.V. to fair
value interest rate risk. E.ON International Finance B.V.’s policy is to mitigate the interest rate risk
using interest or cross currency interest swaps, transacted with E.ON SE or interest rate matching
transactions wherever economically viable. However, depending on the transaction as well as on
its individual market assessment E.ON International Finance B.V. may also be prepared to accept
interest rate risks. Any such remaining interest rate risks are monitored closely and steered
actively.
7
Financial Statements of E.ON International Finance B.V.
Credit risk
Credit risk is the risk of loss due to a counterparty’s non-payment of a loan or other receivable.
Following the purpose of E.ON International Finance B.V., its main counterparties for loans and
receivables are all related parties and hence members of the E.ON Group.
Liquidity risk
Liquidity risk is the risk that liabilities cannot be met when they fall due. Also a substantial and / or
a simultaneous withdrawal of deposits fall into such risks. E.ON International Finance B.V.
addresses such risk by matching the cash flows resulting from assets and liabilities wherever
economically viable but also by maintaining a wide range of financing possibilities. As such E.ON
International Finance B.V. has short term deposits readily available with E.ON SE, but also
continues to be an issuer under the € 10 billion Multi-Currency Commercial Paper Programme and
counterparty to the new € 5 billion Syndicated Dual Currency Revolving Credit Facility.
Prospects
In December 2014 E.ON announced its New Strategy which will result in a split of the E.ON Group.
Although it has been stated that all capital market indebtedness will stay with E.ON, this may still
have an impact on E.ON International Finance B.V. as it might lose some of its counterparties
which consequently could reduce the business volumes as well. Moreover, also some structural
changes on the setup of E.ON International Finance B.V. will have to be analyzed as a
consequence of that. Together, both may have impact on the results and the business activities of
E.ON International Finance B.V. in 2015 and beyond.
Besides that, the general business and liquidity prospects for 2015 for E.ON International Finance
B.V. continue to be positive which again may result in a reduction of bonds outstanding together
with a corresponding reduction in the on-lending volumes. The intra-group financing activities will
be continued by E.ON International Finance B.V. in 2015. Actual volumes are not fully predictable
but a further reduction however appears to be likely. Furthermore, also changes in the interest rate
environment and the credit spreads may have a direct impact on the financial results of E.ON
International Finance B.V.
Overall because of the pictured uncertainties E.ON International Finance B.V. cannot give any
guidance on its results expected for 2015 at this stage.
8
Financial Statements of E.ON International Finance B.V.
Statement from the Board of Management
The Board of Management state that to the best of their knowledge, the financial statements of
2014 are prepared in accordance with the statutory provisions of Part 9, Book 2, of the
Netherlands Civil Code and the firm pronouncements in the Guidelines for Annual Reporting in the
Netherlands as issued by the Dutch Accounting Standards Board and give a true and fair view of
the assets, liabilities, financial position and profit or loss of E.ON International Finance B.V. and
that the management report includes a fair review of the development and the performance of the
business and the position of E.ON International Finance B.V., together with a description of the
principal risks and uncertainties that it faces.
Rotterdam, March 26, 2015
E.ON International Finance B.V.
Board of Management
Mr. J. Otto
Mr. R. Toering
9
Financial Statements of E.ON International Finance B.V.
Balance Sheet (before profit appropriation)
€ in thousands
Dec 31, 2014
Dec 31, 2013
Note
Financial fixed assets
Loans to shareholder
Loans to group entities
3
4
9,709,683
3,550,945
13,260,628
11,540,786
3,401,204
14,941,990
Current assets
Amounts due from shareholder
Amounts due from group entities
5
6
1,419,375
4,834,320
6,253,695
3,340,890
5,890,506
9,231,396
Cash
7
1,079,868
100,996
20,594,191
24,274,382
200
36,992
201,100
24,667
262,959
200
36,992
172,462
28,638
238,292
Total assets
Shareholders’ equity
Issued share capital
Share premium reserve
Other reserves
Undistributed profit
8
Provisions
Provision for loss making contracts
Provision for deferred taxes
9
10
36,158
207
36,365
50,580
292
50,872
Borrowings
Bonds
11
13,049,145
14,717,560
12
13
14
15
1,369,968
4,390,173
1,483,726
1,855
7,245,722
1,956,351
3,215,712
320,066
3,771,782
3,747
9,267,658
20,594,191
24,274,382
Current liabilities
Amounts due to shareholder
Amounts due to group entities
Amounts due to associated companies
Amounts due to others
Amounts due to tax authorities
Total equity and liabilities
10
Financial Statements of E.ON International Finance B.V.
Income Statement
Year ended December 31
€ in thousands
Note
2014
2013
Interest and similar income
Exchange rate difference gains
Financial income
18
1,176,896
724,133
1,901,029
1,252,407
467,648
1,720,055
Interest and similar expenses
Exchange rate difference losses
Financial expenses
19
(1,143,714)
(724,328)
(1,868,042)
(1,213,453)
(468,049)
(1,681,502)
32,987
38,553
(315)
(327)
(315)
(327)
32,672
38,226
(8,005)
(9,588)
24,667
28,638
Total financial result
Operating expenses
20
Total operating expenses
Result on ordinary activities before corporate
income tax
Corporate income taxes
Net Profit
22
11
Financial Statements of E.ON International Finance B.V.
Cash Flow Statement
Year ended December 31
2014
2013
(1,282,950)
1,315,481
(588)
(10,006)
(1,238,726)
1,305,438
(675)
(7,883)
21,937
58,154
(20,392,110)
25,363,518
(17,889,777)
20,396,269
4,971,408
2,506,492
19,720,000
(23,734,473)
14,465,000
(17,086,570)
(4,014,473)
(2,621,570)
Net increase (decrease) in cash
978,872
(56,924)
Cash at beginning of the year
100,996
157,920
1,079,868
100,996
€ in thousands
Note
Interest paid
Interest received
Expenses paid
Income tax paid
Cash flows from operating activities
Loans granted to related parties
Loan repayments received from related parties
Cash flows from investing activities
Proceeds from borrowings
Repayments of borrowings
Cash flows from financing activities
Cash at end of the year
7
12
Financial Statements of E.ON International Finance B.V.
Notes
(1) General information
The activities of E.ON International Finance B.V. mainly comprise the financing of E.ON Group
companies.
E.ON International Finance B.V., a corporation with limited liability, having a statutory seat in
Rotterdam, the Netherlands, considers E.ON SE, Düsseldorf, Germany to be its ultimate parent
company. The financial information of E.ON International Finance B.V. is included in the
consolidated financial statements of E.ON SE, Germany. Copies of the consolidated financial
statements of E.ON SE can be obtained from E.ON SE in Düsseldorf.
The statutory seat and the office of E.ON International Finance B.V. is Capelseweg 400 in
Rotterdam.
These financial statements were authorized for issue by the Board of Management on
March 26, 2015.
(2) Summary of significant accounting policies
Basis of preparation
The financial statements have been prepared in accordance with the statutory provisions of Part 9,
Book 2, of the Netherlands Civil Code and the firm pronouncements in the Guidelines for Annual
Reporting in the Netherlands as issued by the Dutch Accounting Standards Board.
Unless stated otherwise in the principles set forth below, assets and liabilities are stated at the
amounts at which they were acquired or incurred. Profit is determined on the basis of historical
cost. The Balance Sheet, the Income Statement and the Cash flow Statement include references
to the notes.
Comparison with prior year
The basis used for the valuation and result definition has remained unchanged with respect to the
previous year.
Cash Flow Statement
The Cash Flow Statement was prepared according to the direct method. The funds included in the
Cash Flow Statement consist of cash at banks and the inhouse banking account with E.ON SE.
Cash flows in foreign currencies have been translated at the exchange rates existing on the day of
settlement.
Related parties
In relation to its activities, E.ON International Finance B.V. has several transactions with both its
shareholder E.ON SE, E.ON Group companies and non-consolidated E.ON companies. The
interest which E.ON International Finance B.V. charges to related parties is based on market rates
and includes a borrower specific credit margin.
All bonds issued by E.ON International Finance B.V. under the € 35 billion Debt Issuance
Programme as well as under stand-alone documentations are guaranteed by E.ON SE. In return,
E.ON International Finance B.V. pays a market based guarantee fee to E.ON SE.
E.ON International Finance B.V. conducts derivative transactions as hedging instruments. To that
extent E.ON International Finance B.V. uses interest rate swaps and cross-currency swaps. Such
transactions are exclusively concluded with E.ON SE as counterparty.
13
Financial Statements of E.ON International Finance B.V.
E.ON International Finance B.V. acts as an intra-group financing company. The deposits
generated from E.ON companies are sourced to finance additional lending operations. All such
deposits are guaranteed by E.ON SE and a guarantee fee is paid accordingly.
The assets and liabilities with related parties comprise: loans, interest and guarantee fee on such
loans; interest on concluded swaps; intra-group financings, interest and guarantee fee on such
intra-group financing.
The interest and similar income mainly comprises: the interest on loans issued to related parties;
amortization of the corresponding discounts on these loans; interest on swaps concluded with
E.ON SE and the interest on the intra-group financings to related parties.
The interest and similar expenses are mainly paid to third parties, with the exception of the interest
on swaps concluded with E.ON SE, the interest on deposits or loans from related parties, both
used for intra-group financing to related parties and the guarantee fee.
All personnel is either seconded from other E.ON Group companies or employed by E.ON Benelux
N.V. under a service level agreement.
Within the Balance Sheet and the Income Statement the transactions with related parties are
broken down into transactions with the shareholder, transactions with E.ON Group companies and
transactions with associated companies.
Foreign currency translation
The functional currency as well as the reporting currency of E.ON International Finance B.V, is the
Euro (€). The financial statements are presented in Euro.
Transactions denominated in foreign currencies are translated at the exchange rate at the date of
the transaction. Monetary foreign currency items are adjusted to the exchange rate at each
balance sheet date; any gains or losses resulting from fluctuations in the relevant currencies are
included in the financial income and expenses, respectively.
Settled transactions in foreign currencies during the reporting period have been incorporated in the
financial statements at the rate of settlement.
The following table shows the movements in exchange rates of the relevant foreign currencies for
the period indicated:
Dec 31,
2014
Dec 31,
2013
0.79
1.21
1.20
145.23
9.39
27.73
9.04
9.42
0.83
1.38
1.23
144.72
8.86
27.43
8.36
10.69
ISO code
British Pound
U.S. Dollar
Swiss Franc
Japanese Yen
Swedish Krona
Czech Koruna
Norwegian Krone
Hong Kong Dollar
EUR/GBP
EUR/USD
EUR/CHF
EUR/JPY
EUR/SEK
EUR/CZK
EUR/NOK
EUR/HKD
14
Financial Statements of E.ON International Finance B.V.
Financial assets
Currently all non-derivative financial assets of E.ON International Finance B.V. are classified in the
category loans and receivables. They are included in non-current assets, except for maturities less
than 12 months after the balance sheet date. These are classified as current assets.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. Loans and receivables are initially recognized at fair value plus
transaction costs. Loans and receivables are subsequently stated at amortized cost. The
premiums, discounts and transaction costs are depreciated on the straight-line method (on the
basis of historical costs), based on the lifecycle of each of the items involved. This method of
calculation does not lead to material differences in comparison with the calculation based on the
effective interest method.
Current assets
Current assets are carried at the fair value of the consideration, usually amortized costs. Any
difference to the nominal value is due to any premium or discount and any transaction costs
associated to such assets. Unless stated otherwise, the maturity is less than one year. Prepaid
expenses are recognized if the period in which expenses are paid differs to the period to which
they are attributable.
Cash
Cash and cash equivalents are stated at face value. Cash and cash equivalents include all highly
liquid financial instruments with original maturities of three months or less. This includes bank
balances and the inhouse banking account with E.ON SE. Bank overdrafts are shown within
borrowings in current liabilities on the Balance Sheet.
Provisions
Provisions are recognized for legally enforceable or constructive obligations existing at the balance
sheet date, the settlement of which is probable to require an outflow of resources whose extent
can be reliably estimated. Provisions are measured on the basis of the best estimate of the
amounts required to settle the obligations at the balance sheet date. Unless indicated otherwise,
provisions are stated at the present value of the expenditure expected to be required to settle the
obligations.
Provisions for loss making contracts are established for contracts in which a loss is anticipated.
The provision is created to level interest rate differences between refinanced loans compared to
new loans over the remaining live of the refinancing. These provisions are included at face value
and released on a pro rata basis.
Provisions for deferred taxes are recognized in respect of timing differences between valuation of
assets and liabilities according to fiscal provisions and the valuation principles as used in these
annual accounts. Deferred taxes are determined using the applicable tax rates as at year-end or
future applicable rates and laws that have been enacted or substantially enacted by the balance
sheet date and are expected to apply when the related deferred income tax asset is realized or the
deferred income tax liability is settled.
Borrowings
Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are
subsequently stated at amortized cost. Any difference to the nominal value is due to any premium
or discount and any transaction costs associated to such liabilities. Any difference between the
proceeds (net of transaction costs) and the redemption value are taken into the Income Statement
on the straight-line method (on the basis of historical costs), based on the lifecycle of each of the
items involved. This method of calculation does not lead to material differences in comparison with
the calculation based on the effective interest method.
Borrowings are classified as non-current liabilities unless their maturity is less than 12 months after
the balance sheet date. These are classified as current liabilities.
15
Financial Statements of E.ON International Finance B.V.
Current liabilities
Liabilities are carried at the fair value of the consideration, usually amortized costs, Any difference
to the nominal value is due to any premium or discount and any transaction costs associated to
such liabilities. Unless stated otherwise, the maturity is less than one year.
Interest paid and received
Interest paid and received is recognized on a time-weighted basis, taking account of the effective
interest rate of the assets and liabilities concerned. When recognizing interest paid, allowance is
made for transaction costs on loans received as part of the calculation of effective interest.
Current income tax
The current income tax charge is calculated on the basis of the tax laws enacted or substantively
enacted on the balance sheet date.
Income tax is calculated on the profit/loss before tax in the income statement, taking into
account i.a. tax-exempt items, and non-deductible expenses. Account is also taken of changes in
deferred income tax assets and liabilities owing to changes in the applicable tax rates.
Financial instruments
E.ON International Finance B.V. conducts derivative transactions as hedging instruments. To that
extent E.ON International Finance B.V. uses interest rate swaps and cross-currency swaps. These
are concluded with E.ON SE as counterparty.
The foreign currency elements on the cross-currency swaps are translated into Euro at the rates of
exchange prevailing on the balance sheet date. Resulting net gains or losses from translation of
foreign currencies on the cross-currency swaps are immediately taken to the Income Statement.
E.ON International Finance B.V. applies cost price hedge accounting mainly on all of its derivative
financial instruments. E.ON International Finance B.V. uses interest rate swaps to hedge the
interest risk on bonds and cross currency swaps for its currency risk on bonds and intra-group
financing. The results of the hedging instrument are recorded as profit or loss at the same moment
as the hedged item. E.ON International Finance B.V. documents at the inception of the transaction
the relationship between hedging instruments and hedged items. E.ON International Finance B.V.
also tests its assessment, both at hedge inception and on an ongoing basis, of whether the
derivatives that are used in hedging transactions are highly effective in offsetting changes in fair
values or cash flows of hedged items.
Cost price hedge
In applying cost price hedge accounting, the initial recognition of, and the accounting policies for,
the hedging instrument are dependent on the hedged item, which has the following implications:




if the hedged item is recognized at cost in the Balance Sheet, the derivate instrument is also
stated at cost;
as long as the hedged item is not yet recognized in the Balance Sheet, the hedging
instrument is not re-measured. This applies, for instance, to hedging currency risks on future
transactions;
if the hedged item qualifies as a monetary item denominated in a foreign currency, the
derivative instrument, where it has currency elements, is also stated at the spot rate
prevailing on the balance sheet date. Resulting net gains or losses from translation of
foreign currencies on the cross-currency swaps are immediately taken to the Income
Statement. If the derivate instrument has currency elements, the difference between the
spot rate on the date the derivate instrument is contracted and the forward rate at which it
will be settled is spread over the maturity of the derivative instrument;
any ineffective portion of a hedge relation is recognized directly in profit or loss.
16
Financial Statements of E.ON International Finance B.V.
The gain or loss relating to the ineffective portion is recognized in the Income Statement within
financial income or financial expenses.
Recognition of income
The result represents the difference between the value of the consideration rendered and the costs
and other charges for the year. The results on transactions are recognized in the year they are
realized. Losses are taken as soon as they are foreseeable. Costs are recognized on the historical
cost convention and are allocated to the reporting year to which they relate. Interest income and
expenses are recognized on a time-proportion basis using the effective interest method.
Critical accounting estimates and judgments
The preparation of the financial statements requires management to make estimates and
assumptions. It also requires management to exercise its judgment in the process of applying
E.ON International Finance B.V.’s accounting policies. Estimates and judgments are based on past
experience and on additional knowledge obtained on transactions to be reported and are reviewed
on an ongoing basis. E.ON International Finance B.V. makes estimates and assumptions
concerning future events. Actual events may differ from expectations and actual results will, by
definition, seldom equal the accounting estimates.
Financial risk factors
E.ON International Finance B.V.’s activities expose it to a variety of financial risks: market risk
(including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk),
credit risk and liquidity risk. E.ON International Finance B.V.’s overall risk management program
focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects
on E.ON International Finance B.V.’s financial performance.
Market risk
Market risk is defined as the risk of a loss due to a negative change of market prices. Due to the
international nature of its business activities, E.ON International Finance B.V. is exposed to
exchange risks related to income, expenses, receivables and liabilities denominated in foreign
currencies. E.ON International Finance B.V.’s exposure results mainly from transactions in U.S.
dollars, British Pounds and Swedish Krona.
According to the risk management policy set up by management, E.ON International Finance B.V.
is required to hedge its foreign exchange rate risk. To minimize its foreign exchange risk arising
from future transactions and recognized assets and liabilities E.ON International Finance B.V. uses
cross-currency swaps, transacted with E.ON SE.
E.ON International Finance B.V.’s interest rate risk arises from assets and liabilities having either a
different interest rate base (fixed vs. variable) or different tenures (short term vs. long term). Bonds
and loans issued at variable rates expose E.ON International Finance B.V. to cash flow interest
rate risk. Bonds and loans issued at fixed rates expose E.ON International Finance B.V. to fair
value interest rate risk. E.ON International Finance B.V.’s policy is to mitigate the interest rate risk
using interest or cross currency interest swaps, transacted with E.ON SE or interest rate matching
transactions wherever economically viable. However, depending on the transaction as well as on
its individual market assessment E.ON International Finance B.V. may also be prepared to accept
interest rate risks. Any such remaining interest rate risks are monitored closely and steered
actively.
Credit risk
Credit risk is the risk of loss due to a counterparty’s non-payment of a loan or other receivable.
Following the purpose of E.ON International Finance B.V., its main counterparties for loans and
receivables are all related parties and hence members of the E.ON Group.
17
Financial Statements of E.ON International Finance B.V.
Liquidity risk
Liquidity risk is the risk that liabilities cannot be met when they fall due. Also a substantial and or a
simultaneous withdrawal of deposits falls into such risks. E.ON International Finance B.V.
addresses such risk by matching the cash flows resulting from assets and liabilities wherever
economically viable but also by maintaining a wide range of financing possibilities. As such E.ON
International Finance B.V. has short term deposits readily available with E.ON SE, but also
continues to be an issuer under the € 10 Billion Multi-Currency Commercial Paper Programme and
counterparty to the € 5 Billion Syndicated Dual Currency Revolving Credit Facility.
Fair value estimation
E.ON International Finance B.V. tested the financial instruments on impairment. The test did not
lead to impairments of any financial instruments.
The fair value of financial instruments traded in active markets is based on quoted market prices at
the balance sheet date. The quoted market price used for financial assets held by E.ON
International Finance B.V. is the current bid price.
The fair value of financial instruments that are not traded in an active market (for example, overthe-counter derivatives) is determined by using valuation techniques. E.ON International Finance
B.V. uses a variety of methods and makes assumptions that are based on market conditions
existing at each balance sheet date. Quoted market prices or dealer quotes for similar instruments
are used for long-term debt. Other techniques, such as estimated discounted cash flows, are used
to determine fair value for the remaining financial instruments. The fair value of interest rate, crosscurrency and cross-currency interest rate swaps is calculated as the present value of the estimated
future cash flows.
(3) Loans to shareholder
Movement schedule loans to shareholder
€ in thousands
At January 1
- Amortization
- Early repayments
- Exchange differences
- Current maturity
At December 31
2014
2013
11,540,786
7,390
(1,150,000)
428,548
(1,117,041)
14,453,763
8,362
(139,550)
(2,781,789)
9,709,683
11,540,786
During 2014 E.ON International Finance B.V. did not issue any new long-term loans to
shareholder. Instead, early loan repayments in July and November in the total amount of
€ 1.2 billion took place. Proceeds from these early repayments were used to repurchase the
corresponding bonds from the capital markets. In addition the total loan amount is also reduced by
scheduled upcoming loan maturities. Such reductions however where partially offset by the
increase of the Euro value of non-Euro denominated loans which was due to the weakening of the
Euro against the U.S. Dollar and British Pound.
18
Financial Statements of E.ON International Finance B.V.
The following table shows a detailed breakdown of the currency split:
Carrying amounts of loans in currencies to shareholder
€ in thousands
Dec 31
2014
Dec 31
2013
6,347,527
2,018,255
2,460,942
10,274,127
1,884,560
2,163,888
10,826,724
14,322,575
Reclassification to current assets
1,117,041
2,781,789
Total long term loans in currencies to shareholder
9,709,683
11,540,786
EUR
GBP
USD
Total loans to shareholder
At the end of the reporting period the majority of total loans to shareholder continue to be
denominated in Euro. The reduction in Euro denominated loans is due to scheduled and early loan
repayments in 2014. With respect to the non-Euro denominated loans, the Euro value increase in
in both U.S. Dollar and British Pound denominated loans is solely due to the weakening of the
Euro against both currencies. In general the currency structure of the loan portfolio to the
shareholder shifted slightly with Euro denominated loans however still representing the majority.
Maturities of loans at nominal value to shareholder
€ in thousands
Dec 31
2014
Dec 31
2013
1,117,632
1,238,215
1,769,153
1,682,813
770,317
4,273,915
2,645,603
136,670
1,250,000
1,650,000
2,375,000
1,485,724
4,812,773
10,852,045
14,355,770
Reclassification to current assets
1,117,632
2,782,273
Total long term loans in maturities to shareholder
9,734,413
11,573,497
6 months or less
6-12 months
1-2 years
2-3 years
3-4 years
4-5 years
Over 5 years
Total loans to shareholder
The maturity structure of the loan portfolio to shareholder continues to be well balanced. At
maturity all loans are repaid at nominal value. The total nominal value of outstanding loans to
shareholder amounts to € 10.9 billion. The difference to book values lie in net discounts of
€ 25.3 million. The amounts of discount and premium on the loans are amortized over the period of
the underlying asset on a straight-line basis.
The market values of the loans to shareholder per December 31, 2014 is € 13.9 billion
(December 31, 2013: € 17.1 billion).
(4) Loans to group entities
Movement schedule loans to group entities
2014
2013
At January 1
- Amortization
- Exchange differences
- Current maturity
3,401,204
385
149,356
-
3,851,266
669
(66,704)
(384,027)
At December 31
3,550,945
3,401,204
€ in thousands
During 2014 E.ON International Finance B.V. did not issue any new long-term loans to group
entities. The increase in the total loan amount is mostly due to increased Euro value of Non-Euro
denominated loans due to the weakening of the Euro against the British Pound.
19
Financial Statements of E.ON International Finance B.V.
The following table shows a detailed breakdown of the currency split:
Carrying amounts of loans in currencies to group entities
€ in thousands
Dec 31
2014
Dec 31
2013
EUR
GBP
Other
1,110,000
2,358,058
82,887
1,194,240
2,501,383
89,608
Total loans to group entities
3,550,945
3,785,231
-
384,027
3,550,945
3,401,204
Reclassification to current assets
Total long term loans in currencies to group entities
The currency split of loans to group entities was effected mainly by reduction in Euro loans due to
scheduled maturities and by reductions in the Euro value of British Pound denominated loans also
due to scheduled maturities which however, have been partially offset by an increase in the Euro
value of the remaining British Pound denominated loans due to the weakening of the Euro against
that currency. However, in summary the overall structure of the loan portfolio to group entities
remained fairly unchanged compared to 2013.
Maturities of loans at nominal value to group entities
€ in thousands
Dec 31
2014
Dec 31
2013
6 months or less
6-12 months
1-2 years
2-3 years
3-4 years
4-5 years
Over 5 years
1,110,000
403,912
2,054,179
299,808
84,249
1,110,000
2,308,704
Total loans to group entities
3,568,091
3,802,761
-
384,057
3,568,091
3,418,704
Reclassification to current assets
Total long term loans in maturities to group entities
Loans to group entities mainly comprise loans maturing in two years and after five years and
longer. At maturity all loans are repaid at nominal value. The total nominal value of outstanding
loans to group entities amounts to € 3,6 billion with the increase compared to last year’s value
being solely due to the above explained foreign exchange effects. The difference to book values lie
in net discounts of € 17.1 million. The amounts of discount and premium on the loans are
amortized over the period of the underlying asset on a straight-line basis.
The market values of the loans to group entities per December 31, 2014 is € 5.5 billion
(December 31, 2013: € 5.1 billion).
(5) Amounts due from shareholder
Specification amounts due from shareholder
€ in thousands
Dec 31
2014
Dec 31
2013
Current receivable from shareholder
Interest receivable from shareholder
Cross-currency swaps
Other
1,117,041
271,276
25,870
5,188
2,781,789
419,713
133,219
6,169
Total amounts due from shareholder
1,419,375
3,340,890
20
Financial Statements of E.ON International Finance B.V.
Current receivables from shareholder
This item consists of loans maturing within one year of the balance sheet date. The lower amount
of current receivable from shareholder reflects the lower scheduled loan maturities for 2015. The
current maturity of the loans outstanding includes the discount/premium on these loans until
December 31, 2014.
Interest receivables from shareholder
This item consists of interest receivables on loans as well as interest receivables on interest rate
swaps and on cross-currency swaps. The interest receivables account for the amount of accrued
interest. The reduction in the interest receivables from shareholder is mainly due to loan
repayments. Besides, a part of the interest receivables on swaps is also attributable to transactions
which E.ON International Finance B.V. entered into in past years and which it continued in 2014.
Cross-currency swaps
The foreign currency element on the cross-currency swaps is translated into Euro at the exchange
rates prevailing at balance sheet date. Resulting net gains or losses from translation of foreign
currencies on the cross-currency swaps are immediately taken to the Income Statement. Total
exchange rate differences from cross-currency swaps decreased to € 24.7 million which is due to
the maturity of several long term swap transactions.
This item also includes the realization of the differences between the forward rate and the spot rate
on the currency swaps which are applicable for hedge accounting. If the derivative instrument has
currency elements, the difference between the spot rate on the date the derivative instrument is
contracted and the forward rate at which it will be settled is spread over the maturity of the
derivative instrument.
(6) Amounts due from group entities
Specification amounts due from group entities
€ in thousands
Dec 31
2014
Dec 31
2013
Current receivable from group entities
Interest receivable from group entities
4,718,916
115,404
5,753,608
136,898
Total amounts due from group entities
4,834,320
5,890,506
Current receivables from group entities
This item consists of loans maturing within one year of the balance sheet date. Current receivables
from group entities as of year-end 2014 are short term loans from treasury operations within the
intra-group financing business. The lower amount reflect the overall reduced lending volumes in
that business.
Interest receivables from group entities
Interest receivables refers to interest on loans outstanding and accounts for the amount of accrued
interest. The reduced amount is mainly a consequence of the reduced volumes, but also of the
lower short term interest rates with the treasury operations compared to 2014.
(7) Cash
Specification of cash
€ in thousands
Dec 31
2014
Dec 31
2013
Cash and cash equivalents
Inhouse banking account at shareholder
19
1,079,849
16
100,980
Cash
1,079,868
100,996
21
Financial Statements of E.ON International Finance B.V.
Total cash mainly includes the inhouse banking account at E.ON SE. Having such an inhouse
banking account at E.ON SE is common practice within the E.ON Group. The total cash is at free
disposal of E.ON International Finance B.V. and is to a large degree denominated in Euro. The
increase reflects the higher liquidity reserve held by E.ON International Finance B.V. at year end.
(8) Shareholders’ equity
The total authorized number of ordinary shares is 9,000 (2013: 9,000) with a par value of € 100 per
share. The number of issued shares is 2,000 (2013: 2,000). All issued shares are fully paid in.
The share premium results exclusively from additional paid in capital.
Movement schedule equity
Issued
capital
Share
premium
reserve
Other
reserves
Undistributed
profit
Total
At January 1, 2014
Appropriation of undistributed profit
Profit for the year ended Dec 31, 2014
200
-
36,992
-
172,462
28,638
-
28,638
(28,638)
24,667
238,292
24,667
At December 31, 2014
200
36,992
201,100
24,667
262,959
€ in thousands
Total equity of E.ON International B.V. increased to € 263.0 million due to a Net Profit of
€ 24.7 million achieved in 2014.
(9) Provision for loss making contracts
Based on the strict direct relationship of the nominal value, currency, interest and maturity date the
in 2002 issued € 900 bond has become a loss making contract at the moment the receivable loan
from E.ON SE had been early repaid as the market interest rate (at that moment) for the new loan
to E.ON UK Holding Co. Ltd. was lower than the interest rate on the bonds involved. A provision is
created to level these interest differences over the years. The provision is calculated on the
nominal amount of the repaid loans and exclusive of the percentage for risk/costs and guarantee
fee. The release is based on the term of the loan.
As of year-end 2014 the provision has a tenure until 2017. The short term part of the provision is €
15 million.
Movement schedule provision for loss making contracts
€ in thousands
2014
2013
At January 1
- Addition interest
- Release
50,580
2,286
(16,708)
64,379
2,909
(16,708)
At December 31
36,158
50,580
The release of the provision is included in interest and similar income and the interest addition is
included in interest and similar expenses.
22
23
Financial Statements of E.ON International Finance B.V.
(10) Provision for deferred taxes
Due to different treatment on the tax balance sheet compared to the valuation in these financial
statements, a provision for deferred tax liabilities has been taken into account.
Movement schedule provision deferred taxes
2014
2013
At January 1
- Realization temporary differences to income statement
292
(85)
377
(85)
At December 31
207
292
€ in thousands
Provisions for deferred taxes decreased to € 207 thousand as a result of the realization of
temporary differences to the income statement.
Specification current / non- current
€ in thousands
Dec 31
2014
Dec 31
2013
- current
- non-current
85
122
85
207
Total deferred tax
207
292
2014
2013
At January 1
- Amortization
- Bond buyback transaction
- Exchange differences
- Current maturity
14,717,560
8,331
(1,150,000)
590,295
(1,117,041)
18,289,559
9,162
(310,285)
(3,270,876)
At December 31
13,049,145
14,717,560
(11) Bonds
Movement schedule bonds
€ in thousands
In 2014 E.ON International Finance B.V. did not issue any new bonds. Instead in July 2014 E.ON
International Finance B.V. repurchased in a bond buyback transaction € 1.0 billion of bonds. In
addition, in November 2014 E.ON International Finance B.V. fully repurchased all notes of a
€ 0.2 billion bond that it was offered from a single investor. Both transactions reduced the total
amounts of bonds outstanding. These reductions, however, were partially offset by an increase in
the Euro value of the non-Euro denominated bonds due to the weakening of the Euro. At year-end
2014 the total amount of long term bonds outstanding reduced to € 13.0 billion compared to
€ 14.7 billion at year-end 2013. The developments are shown in more detail in the following tables.
The carrying amounts of the bonds are denominated in the following currencies:
Carrying amounts of bonds in currencies
€ in thousands
EUR
GBP
USD
CHF
JPY
Other currencies
Total bonds
Reclassification current liabilities
Total long term bonds
Dec 31
2014
Dec 31
2013
6,966,183
4,369,566
2,461,121
177,672
191,644
10,320,166
4,381,264
2,164,090
610,762
326,790
185,364
14,166,186
17,988,436
1,117,041
3,270,876
13,049,145
14,717,560
Financial Statements of E.ON International Finance B.V.
In 2014 scheduled bond maturities and early repayments resulted in a reduction of Euro, Japanese
Yen and Swiss Franc and British Pound denominated bonds outstanding. However, the increases
in the Euro values of British Pound, U.S. Dollar and Other currencies denominated bonds are
solely due to the weakening of the Euro against these currencies. The majority of bonds continued
to be Euro denominated followed by British Pound, and U.S. Dollar.
Maturities of bonds at nominal value
€ in thousands
6 months or less
6-12 months
1-2 years
2-3 years
3-4 years
4-5 years
Over 5 years
Total bonds
Reclassification to current liabilities
Total long term bonds
Dec 31
2014
Dec 31
2013
1,117,632
1,238,215
2,669,153
1,688,625
1,174,229
6,325,949
3,008,824
262,748
1,250,000
1,650,000
3,275,000
1,491,681
7,106,827
14,213,803
18,045,080
1,117,632
3,271,572
13,096,171
14,773,508
At year end 2014 the maturity profile of E.ON International Finance B.V.’s outstanding bonds
continues to be well balanced. Despite the bond buyback transactions more than half of all
outstanding bonds have a maturity of four years or longer, with no single maturity representing
substantially more than € 1.5 billion. At maturity all bonds are repaid at nominal value. Total
nominal value of bonds at year-end 2014 amounts to € 14.2 billion. The difference to book values
lie mainly in net discounts of € 43.6 million. The amounts of discount, premium and issue expenses
are amortized over the life-time of the underlying liability on a straight-line basis.
The weighted average interest rate (including use of interest derivatives) over all outstanding
bonds amounts to 4.9% in 2014 (2013: 5.1%).
The market values of the bonds per December 31, 2014 is € 17.9 billion (December 31, 2013:
€ 21.4 billion).
(12) Amounts due to shareholder
Specification amounts due to shareholder
€ in thousands
Dec 31
2014
Dec 31
2013
Current payables to shareholder
Guarantee fees payables
Interest payables to shareholder
1,350,000
15,868
4,100
1,900,000
23,497
32,854
Total amounts due to shareholder
1,369,968
1,956,351
Current payables to shareholder
This item consists of short term loans from the shareholder maturing within one year following the
balance sheet date. The proceeds have been used in the intra-group financing business. The
reduction reflects the development of the lending volume mainly during the second half of 2014.
Guarantee fee
All Bonds issued by E.ON International Finance B.V. under the € 35 billion Debt Issuance
Programme as well as under stand-alone documentations are guaranteed by E.ON SE.
Additionally all deposits generated from E.ON companies are also guaranteed by E.ON SE. The
guarantee fee is charged by E.ON SE starting from the date of issuance.
24
Financial Statements of E.ON International Finance B.V.
Interest payables to shareholder
This item consists of interest payables on loans, interest rate swaps and cross currency swaps.
The interest payables account for the amount of accrued interest.
(13) Amounts due to group entities
Specification amounts due to group entities
€ in thousands
Dec 31
2014
Dec 31
2013
Current payables to group entities
Interest payables to group entities
Others
4,390,000
58
115
3,215,000
665
47
Total amounts due to group entities
4,390,173
3,215,712
Current payables to group entities
This item consists of deposits from group entities maturing within one year following balance sheet
date. The deposits have been used in the intra-group financing business of E.ON International
Finance B.V.
Interest payables to group entities
Interest payables account for the amount of accrued interest.
Others
This item consists of outstanding operating expenses against group entities.
(14) Amounts due to associated companies
Specification amounts due to associated companies
€ in thousands
Dec 31
2014
Dec 31
2013
Current payables to associated companies
Interest payables to associated companies
-
320,000
66
Total amounts due to associated companies
-
320,066
Current payables to associated companies
This item consisted of deposits from associated companies maturing within one year following
balance sheet date. The deposits have been used to finance loans granted to associated
companies. At year-end 2014 no deposits from associated companies existed.
Interest payables to associated companies
Interest payables account for the amount of accrued interest. Due to the absence of any deposit
from associated companies at year-end 2014, also no interest payables accrued.
25
Financial Statements of E.ON International Finance B.V.
(15) Amounts due to others
Specification amounts due to others
€ in thousands
Dec 31
2014
Dec 31
2013
Current payables to others
Interest payables to others
Others
1,117,041
366,606
79
3,270,876
500,853
53
Total amounts due to others
1,483,726
3,771,782
Current payables to others
This item comprises bonds maturing within one year of the balance sheet date. The current
maturity of the bonds outstanding includes the discount or premium on these bonds until
December 31, 2014.
Interest payables to others
Interest payables account for the amount of accrued interest. The reduction is due to the reduced
volume of bonds outstanding.
(16) Contingent liability
In addition to the liabilities carried on the balance sheet there are other (mostly long term)
commitments arising from contracts entered into with third parties on the basis of legal
requirements.
Specification notional amounts derivatives
€ in thousands
Dec 31
2014
Dec 31
2013
Interest swaps
Currency swaps
35,503
2,690,304
35,503
3,471,194
Total amounts due to others
2,725,807
3,506,697
The notional amounts of the interest swaps remained the same. The decrease in the currency
swaps is mainly due to the settlement of hedges of non-Euro denominated bonds which matured
during the reporting period.
Specification fair values derivatives
€ in thousands
Dec 31
2014
Dec 31
2013
Interest swaps
Currency swaps
(6,046)
(73,121)
(6,680)
70,608
Total amounts due to others
(79,167)
63,928
The fair value of derivative instruments is sensitive to movements in underlying market rates and
other relevant variables. E.ON International Finance B.V. assesses and monitors the fair value of
derivative instruments on a periodic basis. Fair values for each derivative instrument are
determined as being equal to the price at which one party would assume the rights and duties of
another party.
The fair values of existing instruments to hedge interest risks are determined by discounting future
cash flows using market interest rates over the remaining term of the instrument. Discounted cash
values are determined for interest rate and cross-currency swaps for each individual transaction as
of the balance sheet date.
The shift from a liability to a receivable mainly results from the maturity of several long term
contracts, but also from the weakening of the Euro compared to several currencies.
26
Financial Statements of E.ON International Finance B.V.
The Management of E.ON International Finance B.V. is currently investigating to enter into a fiscal
unity with E.ON Benelux Holding B.V. starting January 2014, applying art. 15 of the Dutch Wet op
de vennootschaps-belasting 1969.
(17) Credit facility agreements
As of December 31, 2014 the following facilities are available:



€ 35 billion Debt Issuance Programme
€ 10 billion Multi-Currency Commercial Paper Programme
€ 5 billion Dual Currency Syndicated Revolving Credit Facility Agreement
In April 2014 the € 35 billion Debt Issuance Programme was updated and extended for a year. The
Debt Issuance Programme enables both E.ON SE and E.ON International Finance B.V. to issue
debt to investors in public and private placements. The total program volume is unchanged at
€ 35 billion.
The existing € 10 billion Multi-Currency Commercial Paper Programme allows E.ON International
Finance B.V., under the guarantee of E.ON SE, to issue commercial paper with maturities of up to
729 days to investors. The Multi-Currency Commercial Paper Programme was last updated in
November 2012. As of December 31, 2014, E.ON International Finance B.V. had no borrowings
outstanding under this programme (2013: 0).
In November 2013 E.ON entered into a new € 5 billion Syndicated Dual Currency Revolving Credit
Facility Agreement. The new facility has a tenure of 5 years plus two extension option of each one
year and can therefore be in place until 2020. In November 2014 the first extension option had
been exercised resulting currently in a tenure until 2019. As of December 31, 2014, E.ON
International Finance B.V. had no borrowings outstanding under this facility (2013: 0).
(18) Interest and similar income
Specification interest and similar income
€ in thousands
2014
2013
873,560
284,311
19,025
915,049
318,414
18,944
1,176,896
1,252,407
- interest and similar income from shareholder
- interest and similar income from group entities
- interest and similar income from others
Total interest and similar income
Interest and similar income from shareholder declined in 2014. This was mainly due to lower
income as a result of reduced lending volumes following scheduled loan maturities and early
repayments. Such income reduction however was partially compensated by market value
compensations received for the early loan repayments. Interest and similar income from group
entities also declined, which was mainly due to on average lower lending volumes in the intragroup financing business, which at the same time was again affected from the lower short term
interest rate environment. Also scheduled loan maturities on long term loans from group entities
contributed to the reduction.
Interest and similar income from others includes the release of the provision for loss making
contract and the prepayment rebate on corporate income tax.
In total, interest and similar income therefore declined to € 1.2 billion.
27
Financial Statements of E.ON International Finance B.V.
(19) Interest and similar expenses
Specification interest and similar expenses
€ in thousands
2014
2013
- interest and similar expenses to shareholder
- interest and similar expenses to group entities
- interest and similar expenses to associated companies
- interest and similar expenses to others
91,587
12,814
1,039,313
160,580
8,536
824
1,043,513
Total interest and similar expenses
1,143,714
1,213,453
Interest and similar expenses also decreased in 2014. This was only partially driven by the
reduced interest and similar expenses to others because the lower results from the reduced
volume of bonds outstanding was somewhat compensated by the one-time market value
compensation paid in the bond buyback transactions. Interest and similar expenses to group
entities increased, which was mainly due to an increased volume of deposits received. Finally the
interest and similar expenses to shareholders decreased as a result of decreased interest
expenses on swap transactions.
(20) Operating expenses
Operating expenses consist mainly of auditor’s fees, consultancy costs and personnel expenses.
In 2014 the total operating expenses amounted to € 0.3 million (2013: € 0.3 million).
Audit fees
The sum of the audit fees is included in the annual report of E.ON SE. Therefore E.ON
International Finance B.V. is not obliged to disclose the audit fees in this annual report.
(21) Number of employees
At the end of 2014 E.ON International Finance B.V. had no employees (2013: 0). All personnel is
either seconded from other E.ON Group companies or employed by E.ON Benelux N.V. under a
service level agreement.
(22) Corporate income taxes
Specification corporate income taxes
2014
2013
Current income tax
Deferred income tax
(8,090)
85
(9,674)
86
Total income tax
(8,005)
(9,588)
€ in thousands
The effective tax rate in 2014 was 24.5% (2013: 25%). The nominal tax rate differs from the
effective tax rate due to prior year releases. For further details on deferred taxes see note 10.
Rotterdam, March 26, 2015
E.ON International Finance B.V.
Board of Management,
Mr. J. Otto
Mr. R. Toering
28
Financial Statements of E.ON International Finance B.V.
Additional Information
Provisions in the Articles of Association Governing Profit Appropriation
Article 21(1) of the Articles of Association stipulates that the distributable profit shall be at the free
disposal of the Annual General Meeting of Shareholders.
Profit Appropriation
It is proposed that the Net Profit for 2014 of € 24.7 million will be added to the “Other reserves”.
29
Auditors report
30
Auditors report
31
Auditors report
32
Auditors report
33
Auditors report
34
Auditors report
35