SCOPE OF CONSOLIDATION
The present consolidated financial statements encompass the financial statements of Repower AG and all investments where Repower holds, directly or indirectly, more than 50 per cent of the votes or can exercise control in some other way. These investments are fully consolidated. Associated organisations and joint ventures are included in the financial statements in accordance with the equity method.
OVERVIEW OF SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES
All subsidiaries, associates and joint ventures with the exception of Grischelectra AG, which closes its accounts on 30 September, close their accounts at the end of the calendar year.
Ovra electrica Ferrera SA, Trun, is a power plant company in which the local municipality holds a 51 per cent stake. Repower bears full operating responsibility for this company and sells 100 per cent of the energy generated on the market. Repower thus exercises overall control and Ovra electrica Ferrera SA is fully consolidated.
In contrast to the share capital held, Repower exercises 30 per cent of the votes in Grischelectra AG and on the basis of contractual arrangements controls Grischelectra AG in conjunction with Canton Graubünden. Grischelectra AG is a joint venture.
Under the contractual arrangements governing the interest in Kraftwerk Morteratsch AG, all relevant decisions must be made unanimously. Kraftwerk Morteratsch AG is a joint venture.
The direct shareholdings in Impianto Eolico Pian dei Corsi S.r.l. and ESE Nurra S.r.l., acquired in 2018, come to 57.5 and 51.0 per cent respectively. These are subsidiaries.
The direct shareholding in Terra di Conte S.r.l., added to the scope of consolidation in 2018, comes to 50 per cent. This is a joint venture.
Additions to the scope of consolidation
Repower acquired an interest of 65 per cent in Elettrostudio Energia S.p.A. and its holdings in hydro-, solar and wind power assets by way of a contribution of the existing group companies SEA S.p.A. and REC S.r.l. and a cash payment. Repower has controlled Elettrostudio Energia S.p.A. and included it in the scope of consolidation since 5 December 2018.
The companies added to the scope of consolidation can be seen in the “Overview of subsidiaries, associates and joint ventures”. Elettrostudio Energia S.p.A. has already been renamed Repower Renewable S.p.A.
SEA S.p.A. and REC S.r.l. are still Balanced at the previous consolidated carrying amounts.
The table below summarises the material amounts booked for assets and liabilities acquired on the date of acquisition, plus the purchase price and goodwill resulting from the acquisition.
The balances presented include estimates whose influencing factors may not have been known at the date of acquisition. This business combination was recognised for the first time at the end of the reporting period on the basis of provisional figures. If new information emerges on the facts and circumstances that pertained at the time of acquisition, this may lead to adjustments to the provisional figures and the recognition of additional assets and liabilities within the valuation period.
The goodwill was capitalised as intangible assets and will be amortised over a period of five years.
Changes in the ownership interests without loss of control
In connection with the acquisition in the 2018 financial year mentioned above, the group’s interest in SEA S.p.A. and REC S.r.l. has declined to 65 per cent.
In the 2017 financial year Repower sold another 6 per cent of its interest in Repartner Produktions AG to the shareholder EKZ. The cash inflow of CHF 5,721 thousand is offset against minority interests of CHF 2,902 thousand. The difference of CHF 2,819 thousand was allocated to the majority shareholder’s capital. Repower likewise sold 0.1 per cent of its interest in Swibi AG. Minority interests of CHF 6 thousand are offset against sales proceeds of CHF 24 thousand. The difference of CHF 18 thousand was allocated to the equity of the majority shareholder.
Consequences of the loss of subsidiary control
No companies were deconsolidated in 2018.
In 2017 the companies Elbe Beteiligungs AG in Liquidation, Energia Eolica Pontremoli S.r.l., Repower Trading Česká republika s.r.o. v likvidaci, S.C. Repower Vanzari Romania S.R.L., Repower Serbia d.o.o. – u likvidaciji and Repower Hrvatska d.o.o. u likvidaciji were wound up. Translation losses of CHF 19 thousand from accumulated translation differences were reclassified directly to retained earnings.
Capital consolidation is done in accordance with the purchase method. When an entity is purchased its assets and liabilities as of the date of acquisition are revalued in accordance with uniform group principles. Any remaining goodwill (the difference between the purchase price and the share of equity) is capitalised and amortised over five years or a maximum of 20 years. Assets and liabilities and income and expenses at fully consolidated entities are integrated in their entirety in the consolidated financial statements. Minority interests in the equity and minority interests in the profits of fully consolidated entities are stated separately.
Intragroup receivables and liabilities, income and expenses and investments are netted out and interim gains eliminated. Investments in associates and joint ventures are accounted for using the equity method.
Conversion of foreign currencies
Each group company determines the functional currency in which it draws up its individual financial statements. Company financial statements in foreign currencies are converted as follows: assets and liabilities at the closing rate on the balance sheet date, equity at historical rates. The income and cash flow statements are converted at the average rate for the year. The resulting translation differences are recognised directly in equity. On the disposal of entities the translation differences attributable to them are reclassified in the consolidated statement of changes in equity from accumulated translation differences to retained earnings.
Foreign currency transactions contained in the individual financial statements of consolidated entities are converted at the relevant daily rate, and foreign currency balances are converted on the closing date at the closing rate on the balance sheet date. The resulting differences in rates are recognised in profit or loss.
The following exchange rates were used for the most important foreign currency:
Cash flow statement
The cash and cash equivalents fund forms the basis of the consolidated cash flow statement. Cash flow from operating activities is calculated by the indirect method.