Explanation of positions reported under assets

The “Forward foreign currency contracts” and “Interest rate swaps” under the group of derivative financial instruments and the “Shares, bonds, other securities” under the group of non-derivative financial instruments are components of the balance sheet position “Securities and other financial instruments”. The “Energy trading transactions” under the group of derivative financial instruments correspond to the balance sheet position “Positive replacement values held for trading positions”. The “Active loans” under loans and receivables and “Other financial assets” under available for sale are part of the balance sheet position “Other financial assets”. The “Trade accounts receivables” and “Other receivables” under loans and receivables correspond to the balance sheet position “Receivables”. “Cash and cash equivalents” correspond to the balance sheet position of the same name “Cash and cash equivalents” and “Accrued income” are components of the balance sheet position “Prepaid expenses and accrued income”.

Explanation of positions reported under liabilities

The “Forward foreign currency contracts” and “Interest rate swaps” under the group of derivative financial instruments and the “Current financial liabilities” and “Liabilities for financial leasing” under other financial liabilities are components of the balance sheet position “Current financial liabilities” and “Non-current financial liabilities”. “Received loans” under other financial liabilities are also components of the balance sheet position “Non-current financial liabilities”. The “Energy trading transactions” under the group of derivative financial instruments correspond to the balance sheet item “Negative replacement values held for trading positions”. “Trade accounts payables” and “Other liabilities” correspond to the balance sheet position “Other current liabilities”. “Accrued expenses” are components of the balance sheet position “”Deferred income and accrued expenses”.

The carrying amount of each financial instrument represents a reasonable estimate for the fair value with the exception of the following positions:

Measurement hierarchy

Measurements at fair value in the balance sheet are classified using a three-level hierarchy. The hierarchy is based on the type and quality of the fair values (market prices). The following levels exist:

Level 1: Publicly quoted market prices for the respective financial instrument (e.g. stock market prices).

Level 2: Market prices that are not generally accessible and possibly derived from prices for similar financial instruments or underlying goods.

Level 3: Prices that are not based on market data.

Fair value hierarchy

Recurring measurement of

Recurring measurement of

There are currently no indications for a one-time measurement of a fair value.

In the Repower Group, transfers of positions measured at fair value to and from levels generally take place at the end of the period. There were no transfers between levels in the first half of 2014. There were no changes in the measurement methods nor were items measured at fair value shifted within the individual categories.

Basic measurement methods and assumptions

The fair values are determined by applying standard market measurement methods taking into account the market data available on the measurement date and correspond to the difference in price compared to the closing price. The measurement methods and assumptions used to calculate fair values are as follows:

The price curves of the last trading day for the various products and terms on stock exchanges or with brokers are incorporated into the measurement of the positive/negative replacement values of the held for trading positions.

Observable market currency curves of active markets are incorporated into the measurement at fair value for the forward foreign currency contracts. Interest differences between individual currencies are taken into account when determining the fair value.

Observable market currency curves of active markets are incorporated into the measurement at fair value for the interest rate swaps.

A present value calculation is used to determine the fair value of the non-current loans. Observable capital market rates of active markets are used as input parameters and increased by Repower's observable market credit risk. Loans in euros are converted to Swiss francs with the closing rate.