Interim consolidated financial statements of the Repower Group

Notes to the interim consolidated financial statements

1 Accounting and valuation principles

General information

The consolidated semi-annual financial statements presented here comprise the unaudited semi-annual financial statements for the six months to 30 June 2018. This interim report has been prepared in accordance with Swiss GAAP FER 31 Complementary Recommendation for Listed Companies in abridged form, and should therefore be read in conjunction with the consolidated financial statements for the year to 31 December 2017.

The presentation of the derivation of cash flow from operating activities has been revised. Instead of the subtotal for cash flow from operating activities before change in net current assets, the key performance indicator (KPI) funds from operations (FFO) is stated as a subtotal. This figure includes the change in replacement values of held-for-trading positions.

Currencies

The following exchange rates were used as a basis for converting the figures in the income statement and balance sheet into CHF:

		Closing exchange rate		Average exchange rate
Currency	Unit	30.06.2018	31.12.2017	01.01.-30.06.2018	01.01.-30.06.2017

EUR	1	1.15690	1.17020	1.16975	1.07650

2 Segment Report

	Market Switzerland	Market Italy	Other segments and activities	Group
CHF thousand

30.06.2018 unaudited

Net sales from goods and services	328,976	741,423	–23,277	1,047,122
Net sales from goods and services	318,715	728,353	54	1,047,122
Net sales from goods and services between segments	10,261	13,070	–23,331	-

Earnings before interest and taxes (EBIT)	5,463	6,839	–3,210	9,092

	Market Switzerland	Market Italy	Other segments and activities	Group
CHF thousand

30.06.2017 unaudited

Net sales from goods and services	305,163	623,477	–31,266	897,374
Net sales from goods and services	294,389	602,880	105	897,374
Net sales from goods and services between segments	10,774	20,597	–31,371	-

Earnings before interest and taxes (EBIT)	–1,054	23,122	–2,148	19,920

3 Comments on the consolidated financial statements

Changes in consolidations

There were no changes in consolidations in the first half of 2018.

Changes in financial assets and securities

The changes in the financial assets essentially relate to TCHF 40,000 reclassified as securities in current assets. A further TCHF 40,000 net was reinvested in investments with a term of up to one year.

Material events and business transactions

In January 2018 Repower prematurely repurchased and destroyed TCHF 18,555 in bonds. This resulted in a loss of TCHF 1,595 in net financial income.

The overhaul of the Teverola power plant scheduled for the first quarter took considerably longer than expected owing to technical problems. The asset has been back on the grid since mid-June. The planned downtime coupled with the unscheduled delay in getting the plant up and running again had a substantial negative impact on results for the first half year.

The interruption in the operation of the plant is insured. From Repower’s point of view there is a receivable from the insurance company for lost sales revenues. However, at the time the Repower semi-annual financial statements were prepared it was not possible to determine the amount of this receivable, which is why a contingent asset is recognised.

4 Events occurring after the balance sheet date

The consolidated interim financial statements were approved by the board of directors on 14 August 2018.

Since 30 June 2018 there have been no other events which require disclosure.