Equity

At 31 December 2012

At 31 December 2011

Share capital

497

497

Share premium

381

381

Revaluation reserve

903

945

Translation reserve

4

1

Cash flow hedge reserve

– 52

– 12

Retained earnings

2,478

2,337

Undistributed result for the financial year

233

204

Equity attributable to Eneco Holding N.V. shareholders

4,444

4,353

Non-controlling interests

3

Total equity

4,447

4,353

Share capital

Eneco Holding N.V.’s authorised share capital is € 2 billion, divided into 20 million shares with a nominal value of € 100 each. At 31 December 2012, 4,970,978 shares had been issued and fully paid. There were no changes in 2012. Eneco Holding N.V. has only issued ordinary shares.

Share premium

Eneco Holding N.V. was incorporated in 2000. Shareholders then holding shares in N.V. Eneco acquired a shareholding in the company by contributing their interests in N.V. Eneco to Eneco Holding N.V. Insofar as the value of that interest exceeded the nominal value of the shares in Eneco Holding N.V. that excess value was taken to share premium. The share premium can be considered as paid-up share capital.

Revaluation reserve

The revaluation reserve relates to the measurement of networks and network-related assets at fair value. The difference between depreciation in 2012 based on the revalued carrying amount and depreciation based on the original historical cost, less deferred tax, has been transferred from the revaluation reserve to retained earnings. The revaluation reserve is not freely at the disposal of the shareholders.

Translation reserve

Assets and liabilities of foreign group companies denominated in foreign currency and foreign-currency funding of those subsidiaries relating to long-term loans denominated in foreign currency, after tax, are translated into euros at the reporting date at the exchange rate prevailing on the reporting date. Foreign currency exchange differences arising on this are recognised in the translation reserve in equity. The results of foreign group companies are translated into euros at the average rate. The difference between the profit after income tax at the average rate and based on the exchange rate prevailing on the reporting date is recognised through equity in the translation reserve. If an investment in a foreign operation is ended or reduced, the related accumulated translation differences are recognised through the income statement. The translation reserve is not freely at the disposal of the shareholders.

Cash flow hedge reserve

The cash flow hedge reserve recognises gains and losses in the fair value of the effective portion of derivative financial instruments designated as cash flow hedges for which the hedge transaction has not yet been settled. Consequently, Eneco meets the conditions for cash flow hedge accounting. The cash flow hedge instruments are mainly forward and swap contracts agreed with other market parties in order to cover the market price risks of purchasing and selling energy commodities. This reserve also recognises the effective portion of hedging with interest rate and currency swap contracts. The cash flow hedge reserve is not freely at the disposal of the shareholders.

The movements in the cash flow hedge reserve were as follows:

Energy commodities

Interest rate swap contracts

Currency swap contracts

Total

At 1 January 2011

– 17

– 5

– 34

– 56

Newly defined cash flow hedges in financial year

17

1

18

Movements in fair value cash flow hedges

12

– 3

– 10

– 1

Deferred income tax liabilities

– 15

2

– 13

Non-effective portion of cash flow hedges

– 6

– 6

Discontinued cash flow hedges

44

2

46

At 31 December 2011

35

– 5

– 42

– 12

Newly defined cash flow hedges in financial year

13

13

Movements in fair value cash flow hedges

– 11

– 2

– 53

– 66

Deferred income tax liabilities

– 1

1

13

13

Non-effective portion of cash flow hedges

– 2

– 2

Discontinued cash flow hedges

2

2

At 31 December 2012

36

– 6

– 82

– 52

Distributable results

A dividend of € 20.52 per share was paid in 2012 (2011: € 14.28). The non-distributable capital was € 1,031 million at 31 December 2012 (2011: € 1,027 million).

Minority interests

This relates to the third party share in the equity of subsidiaries of which Eneco Holding N.V. is not the owner of 100% of the shares.