Integrated business model in four key marktes

Integrated business model in four key markets

Repower's business model is based on activities along the entire value chain. The company is represented on the most important European energy exchanges via a trading floor with three locations, sells electricity and gas and also has its own power generation portfolio with a focus on gas, hydroelectric and wind power. In addition, in Switzerland Repower operates an intricate distribution grid. Repower is active in four key markets: Switzerland, Italy, Germany and Romania. It is in these markets that we plan to build or expand our integrated business model. The goal is to underpin trading and sales activities with our own generating facilities in all key markets. This is why we are preparing to develop our own generating capacities in Romania, as well. The following two-page spread provides an overview of our diverse activities with highlights from sales, power generation and in the grid (Switzerland).Energy trading provides the market interface for power generation and sales and ensures access to the wholesale market. Through its own trading activities, Repower is in a position to optimise the value of its assets and actively manage market risks. Trading also plays a buffer role, by dampening volatility of costs and revenues. Repower trades in electricity and gas as well as guarantees of origin. As well as managing its own portfolio (asset-based trading), the company is increasingly involved in proprietary trading. Revenue-relevant total volume of trading activities equals the total volume of Repower's portfolio, i.e. an average of approximately nineteen terawatt hours a year.

Trading activities cross national boundaries. Different markets are covered by each of the three locations Poschiavo, Milan and Prague. The facing page provides an overview of Repower's trading highlights for 2011.

Repower's annual sales of electricity are in the range of nineteen terawatt hours. Of this amount, approximately 6.5 terawatt hours (34 %) are sold via distribution. On the procurement side, the share of own generation and energy from participations in 2011 amounted to approximately 3.3 terawatt hours, which corresponds to eighteen per cent of total electricity turnover.