2) Principles of consolidation


The unaudited interim consolidated financial statements of the Repower Group as at 30 June 2011 have been prepared in accordance with International Accounting Standard (IAS) 34 “Interim Financial Reporting”. The interim consolidated financial statements do not include all the information disclosed in the consolidated annual financial statements, and should therefore be read in conjunction with the consolidated annual financial statements as at 31 December 2010.

Changes in consolidation:

Business acquisitions

The project company Lagobianco SA was founded on 14 April 2011 as a wholly owned subsidiary of Repower AG for the purpose of building the planned pumped storage power plant between Lago Bianco and Lago di Poschiavo. All activities related to the project will be carried out in future by this company.

Disclosure related to the prior year: The acquisition costs for the Prettin and Lübbenau wind farms in the first half of 2010 amounted to TCHF 62,202. The net assets acquired amounted to TCHF 61,564; the resultant goodwill came to TCHF 638. Overall this resulted in a net cash outflow of TCHF 61,312.

Business disposals

In the previous year, Group companies aurax electro ag and TGK Skavica S.r.l. were sold. The pre-tax gains and losses from the disposal of these two companies were recognised under other operating income and other operating expenses, and amounted to TCHF 2,499 and TCHF 2,003 respectively. Overall, this resulted in a cash inflow of TCHF 2,798.

Companies included according to the equity method

Via Elbe Finance Holding GmbH & Co. KG, Repower holds a share in the project company SüdWestStrom StadtKraftWerk Brunsbüttel GmbH & Co. KG, headquartered in Pinneberg. As contractually agreed with the project lead SüdWestStrom Kraftwerk GmbH, Repower reduced its stake in the project company from 51% to 36% on 28 February 2011. The resultant income amounted to TCHF 815, which is recorded under other operating income. The transaction resulted in a cash inflow of TCHF 3,662.