Annual Report 2016 – Repower Group

25 Business combinations, disposals and liquidations

BUSINESS DISPOSALS IN THE 2016 FINANCIAL YEAR

In the first half of 2016 Repower sold connecta ag, a company operating communications networks in Canton Graubünden. The pre-tax gain on the disposal is recognised under other operating income in the Market Switzerland segment.

In November 2016 MET Holding AG acquired Repower Furnizare România S.r.l., classified as held for sale in the 2016 interim financial statement. The pre-tax loss on the disposal is recognised under other operating expense in other segments and activities.

Before they were disposed of the two companies were classified as held for sale.

In the second half of the year SEI S.p.A., Repower Macedonia DOOEL Skopje – vo likvidacija and Repower Adria d.o.o “u likvidaciji” were wound up. Cumulative translation gains of TCHF 2,456 were reclassified in the Market Switzerland segment and translation losses of TCHF 335 in other segments and activities. The impact on income is shown under other operating income and other operating expenses.

Before SEI S.p.A. was wound up, in particular its shareholders converted the shareholders’ loans granted to the company into shareholders’ equity. The total converted from liabilities to shareholders’ equity came to TCHF 8,817.

	connecta ag	Repower Furnizare România S.r.l.	Total
CHF thousands

Book value of net assets over which control was lost

Non-current assets	4,325	803	5,128
Property, plant and equipment	4,210	64	4,274
Intangible assets	115	287	402
Deferred tax assets	-	452	452

Current assets	898	39,540	40,438
Inventories	32	13,528	13,560
Receivables	2	26,536	26,538
Current income tax receivables	-	138	138
Prepaid expenses and accrued income	-	435	435
Cash and cash equivalents/overdraft facility	864	–1,097	–233

Non-current liabilities	–704	–80	–784
Pension provisions	–692	-	–692
Non-current provisions	-	–63	–63
Non-current financial liabilities	-	–17	–17
Deferred tax liabilities	–12	-	–12

Current liabilities	–1,162	–25,590	–26,752
Current income tax liabilities	–139	-	–139
Other current liabilities	–912	–25,590	–26,502
Deferred income and accrued expenses	–111	-	–111

Net assets derecognised	3,357	14,673	18,030

Consideration received
Cash consideration received	5,000	16,304	21,304
Total consideration	5,000	16,304	21,304

Result on disposal
Total consideration	5,000	16,304	21,304
Net assets derecognised	–3,357	–14,673	–18,030
Cumulative translation differences reclassified from equity on P/L	-	–3,448	–3,448
Result on disposal	1,643	–1,817	–174

Net cash inflow/outflow arising on disposal
Cash consideration received	5,000	16,304	21,304
Cash and cash equivalents disposed of	–864	1,097	233
Net cash inflow/outflow arising on disposal	4,136	17,401	21,537

BUSINESS DISPOSALS IN THE 2015 FINANCIAL YEAR

In the first half of 2015 Repower sold the project to construct a combined-cycle gas turbine plant in Leverkusen to STEAG GmbH in Essen. This included the disposal of Repower GuD Leverkusen Verwaltungs-GmbH and Repower Leverkusen GmbH & Co. KG. The pre-tax gain on the disposal is recognised under other operating income in the Market Switzerland segment.

On 2 July 2015, Enovos Deutschland SE took over the sales activities of Repower Deutschland GmbH. The pre-tax loss on the disposal is recognised under other operating expense in the Market Switzerland segment.

In the second half of 2015, Repower Polska Sp. z.o.o. was wound up. As a result of this liquidation, cumulative translation gains of TCHF 37 were reclassified to profit or loss. The pre-tax gain was recognised under other operating income in other segments and activities.

	Repower GuD Leverkusen GmbH und Co. KG und Repower GuD Leverkusen Verwaltungs-GmbH	Sales Germany	Total
CHF thousands

Book value of net assets over which control was lost

Non-current assets	-	4	4
Property, plant and equipment	-	4	4

Current assets	939	8,187	9,126
Receivables	35	8,187	8,222
Cash and cash equivalents	904	-	904

Non-current liabilities	-	–55	–55
Non-current provisions	-	–55	–55

Current liabilities	–37	–6,536	–6,573
Other current liabilities	–37	–5,917	–5,954
Deferred income and accrued expenses	-	–619	–619

Net assets derecognised	902	1,600	2,502


Consideration received
Cash consideration received	1,754	836	2,590
Total consideration	1,754	836	2,590


Result on disposal
Total consideration	1,754	836	2,590
Net assets derecognised	–902	–1,600	–2,502
Cumulative translation differences reclassified from equity on P/L	2,253	–155	2,098
Utilisations of non-current provisions	-	687	687
Gain/loss on disposal	3,105	–232	2,873


Net cash inflow/outflow arising on disposal

Cash consideration received	1,754	836	2,590
Cash and cash equivalents disposed of	–904	-	–904
Net cash inflow/outflow arising on disposal	850	836	1,686