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30 Correction to prior-year figures

In the 2011 financial year, Repower registered two financial offences which were announced in news releases dated 23 June 2011 and 27 October 2011. There is no connection between the two cases.

Between 2003 and 2011, funds totalling MCHF 6.78 (MEUR 5.58) were embezzled. MCHF 1.09 (MEUR 0.9) has been charged to income in prior periods. MCHF 4.58 (MEUR 3.77) relates to prior financial years, so that the effect on income before tax amounts to MCHF 1.11 (MEUR 0.91).

The financial offence in Switzerland concerns two IT consultancy companies with whom Repower collaborated on various IT projects and who billed excessively high fees for their services or charged for fictitious expenses. This resulted in an impairment of MCHF 3.26. MCHF 2.14 relates to prior financial years, so that the effect on income before tax amounts to MCHF 1.12. The restatements of these errors are contained in the individual notes.

Effects on the balance sheet      
Balance at 01.01.2010 Restatement 01.01.2010 Restated
Intangible assets 11,896 -284 11,612
Deferred tax assets 17,191 183 17,374
Receivables 471,245 -2,863 468,382
Retained earnings (equity) 841,266 -3,738 837,528
Cumulative translation differences (equity) -5,596 143 -5,453
Shareholders' equity excluding minority interests 854,678 -3,595 851,083
Other current liabilities 339,303 633 339,936
       
Balance at 31.12.2010 Restatement 31.12.2010 Restated
Intangible assets 46,547 -2,137 44,410
Deferred tax assets 14,915 540 15,455
Receivables 478,724 -3,536 475,188
Retained earnings (equity) 893,937 -7,156 886,781
Cumulative translation differences (equity) -39,988 850 -39,138
Shareholders' equity excluding minority interests 873,275 -6,306 866,969
Other current liabilities 333,411 1,173 334,584
       
Effects on the income statement      
  2010 Restatement 2010 Restated
Other operating expenses -72,455 -3,803 -76,258
Income before interest and income taxes 162,876 -3,803 159,073
Income before income taxes 105,663 -3,803 101,860
Income taxes -25,547 385 -25,162
Group profit including minority interest 80,116 -3,418 76,698

Earnings per share was reduced by CHF 1.01 to CHF 22.51 in 2010 as a result of the restatement. (See Note 8)

Criminal charges have been pressed against the two accused former employees. Criminal and civil-law investigations are still in progress.