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.