Notes - Repower AR 2019

1 Net sales from goods and services

2 Internally produced and capitalised assets

3 Change in inventory of sales orders

4 Other operating income

5 Earnings from associates and joint ventures

6 Energy procurement

7 Concession fees

8 Personnel expenses

9 Materials and outside services

10 Other operating expenses

11 Depreciation/Amortisation, impairment and reversal of impairment of tangible assets

12 Depreciation/Amortisation, impairment and reversal of impairment of intangible assets

13 Net financial income

	2019	2018
CHF thousand


Financial income	15,085	9,372
Interest income	1,142	726
Dividend income	201	224
Changes in the value of securities held for trading	8,031	8,398
Reversal of impairment financial investments	4,481	-
Gain on early repayment of liabilities	1,193	-
Other financial income	37	24

Financial expenses	–26,758	–25,548
Interest expense	–10,804	–9,318
Interest accumulated on provisions	–775	–1,217
Changes in securities held for trading	–2,414	–574
Currency translation	–9,885	–8,924
Loss on premature repayment of liabilities	-	–1,595
Other financial expenses	–2,880	–3,920

Net financial result	–11,673	–16,176

The changes in the value of securities held for trading relate to interest rate swaps and forward exchange transactions to hedge currency and interest rate risks.

The revaluation of financial assets in 2019 comprises the reversal of the equity investment and loan to tiko Energy Solutions AG up to the acquisition costs.

In 2019 the early repayment of a loan liability continued to result in income of CHF 1,193 thousand.

In 2018 the losses on early repayment of liabilities related to the early partial re-purchase of bonds with a nominal value of CHF 18,555 thousand.

14 Income taxes

	2019	2018
CHF thousand

Income taxes referred to in the income statement	–3,147	–2,875
Current income taxes	–3,961	–4,096
Deferred income taxes	814	1,221

The reconciliation between the actual tax burden and the expected tax burden for the financial years ending on 31 December 2019 and 2018 is as follows:

	2019	2018
CHF thousand

Reconciliation
Income before taxes	53,547	19,197
Income tax rate for parent company	16.1%	16.1%

Income taxes at expected income tax rate	–8,632	–3,095
Tax effect from income taxed at other tax rates	–3,393	–4,132
Tax effect from tax-free income/non-tax-deductible expenses	–105	20,910
Tax losses in the current year for which no deferred tax assets were recognised	–324	–17,042
Tax loss carryforwards for which no deferred tax assets were recognised	10,093	3,796
Regional production tax in Italy - IRAP	–2,142	–1,573
Change in tax rate	1,625	0
Income taxes for previous years	297	–928
Non-usable withholding tax	–562	–202
Other	–4	–609
Income taxes referred to in the income statement	–3,147	–2,875

Effective income tax rate	5.9%	15.0%

UNRECOGNISED TAX LOSS CARRYFORWARDS

On the balance sheet date there were unrecognised tax loss carryforwards of CHF 106,960 thousand (prior year: CHF 214,660 thousand). The ability to offset of loss carryforwards against future earnings involves uncertainty.

This results in unrecognised deferred tax assets of CHF 22,395 thousand (prior year: CHF 43,218 thousand). Given the uncertainty involved in offsetting loss carryforwards against future earnings, deferred taxes are not capitalised (Swiss GAAP FER 11/23).

15 Tangible assets

	Power plants	Grids	Assets under construction	Land and buildings	Other	Total
CHF thousand

Gross values at 1 January 2018	900,382	758,671	80,864	72,293	53,565	1,865,775
Own costs capitalised	-	345	6,601	-	-	6,946
Additions	77	389	18,493	151	2,015	21,125
Additions from changes in consolidation	110,117	-	4,937	8	6	115,068
Disposals	-	–6,089	–9,522	–14	–125	–15,750
Reclassifications between asset classes	320	18,165	–19,542	–68	1,125	-
Effect of currency translation	–16,039	-	–309	–639	–848	–17,835
Gross values at 31 December 2018	994,857	771,481	81,522	71,731	55,738	1,975,329

Accumulated depreciation and value adjustments at 1 January 2018	–546,331	–439,179	–69,485	–33,627	–31,987	–1,120,609
Depreciation	–21,340	–17,226	-	–670	–4,223	–43,459
Disposals	-	4,941	9,517	14	118	14,590
Reclassifications between asset classes	-	–12	-	12	-	-
Effect of currency translation	9,627	-	188	574	437	10,826
Accumulated depreciation and value adjustments at 31 December 2018	–558,044	–451,476	–59,780	–33,697	–35,655	–1,138,652
Net values at 31 December 2018	436,813	320,005	21,742	38,034	20,083	836,677
of which security pledged for debts						53,565

Gross values at 1 January 2019	994,857	771,481	81,522	71,731	55,738	1,975,329
Own costs capitalised	-	330	6,082	-	-	6,412
Additions	189	262	27,331	22	2,438	30,242
Disposals	-	–14,791	–52,897	–73	–445	–68,206
Disposals from changes in consolidation	-	-	-	-	–2,394	–2,394
Reclassifications between asset classes	8,630	18,034	–28,181	10	1,728	221
Effect of currency translation	–18,863	-	–499	–603	–872	–20,837
Gross values at 31 December 2019	984,813	775,316	33,358	71,087	56,193	1,920,767

Accumulated depreciation and value adjustments at 1 January 2019	–558,044	–451,476	–59,780	–33,697	–35,655	–1,138,652
Depreciation	–25,283	–17,229	-	–679	–4,129	–47,320
Impairments	-	-	–1,983	-	-	–1,983
Disposals	-	10,713	52,094	43	343	63,193
Disposals from changes in consolidation	-	-	-	-	2,019	2,019
Effect of currency translation	9,807	-	178	550	480	11,015
Accumulated depreciation and value adjustments at 31 December 2019	–573,520	–457,992	–9,491	–33,783	–36,942	–1,111,728
Net values at 31 December 2019	411,293	317,324	23,867	37,304	19,251	809,039
of which security pledged for debts						77,953

Land and buildings connected with power generation and grid facilities are accounted for under power plants and grid assets.

The increase in the net values of tangible assets pledged as security for debts relates essentially to a bank loan taken up in the 2019 financial year.

The impairment charge recognised in 2019 related to a payment to a supplier that was unable to meet its obligation. In this context a good performance guarantee was collected for an amount of CHF 967 thousand. The income is recognised as other operating income (see Note 4).

LEASED POWER PLANTS

CHF 47,469 thousand of the addition in scope of consolidation the prior year relates to leased power plants (see the “Additions to the scope of consolidation“ section).

The net carrying amount of the generation assets held as part of the finance leasing agreement totalled CHF 41,057 thousand (previous year: CHF 46,721 thousand) at the closing date.

Total lease liabilities come to CHF 27,431 thousand (prior year: CHF 31,375 thousand).

16 Intangible assets

	Goodwill	Software	Concessions and rights of use	Other	Total
CHF thousand


Gross values at 1 January 2018	-	26,479	17,146	1,586	45,211
Additions	-	1,640	254	1,954	3,848
Additions from changes in consolidation	962	-	-	-	962
Disposals	-	–21	-	-	–21
Reclassifications between asset classes	-	1,093	-	–1,093	-
Effect of currency translation	–7	–349	–40	–62	–458
Gross values at 31 December 2018	955	28,842	17,360	2,385	49,542

Accumulated amortisation and value adjustments at 1 January 2018	-	–21,879	–12,567	–177	–34,623
Amortisation	-	–2,746	–352	–35	–3,133
Disposals	-	21	-	-	21
Effect of currency translation	-	274	-	7	281
Accumulated amortisation and value adjustments at 31 December 2018	-	–24,330	–12,919	–205	–37,454
Net values at 31 December 2018	955	4,512	4,441	2,180	12,088

Gross values at 1 January 2019	955	28,842	17,360	2,385	49,542
Additions	-	1,891	26	2,505	4,422
Disposals	-	-	–5	-	–5
Disposals from changes in consolidation	-	–1,696	-	-	–1,696
Reclassifications between asset classes	-	909	-	–1,130	–221
Effect of currency translation	–35	–392	–39	–117	–583
Gross values at 31 December 2019	920	29,554	17,342	3,643	51,459

Accumulated amortisation and value adjustments at 1 January 2019	-	–24,330	–12,919	–205	–37,454
Amortisation	–189	–2,231	–354	–51	–2,825
Disposals from changes in consolidation	-	1,143	-	-	1,143
Effect of currency translation	5	320	-	9	334
Accumulated amortisation and value adjustments at 31 December 2019	–184	–25,098	–13,273	–247	–38,802
Net values at 31 December 2019	736	4,456	4,069	3,396	12,657

The goodwill stems from the acquisition of Repower Renewable S.p.A. in December 2018 (see the “Additions to the scope of consolidation“ section).

17 Investments in associated organisations and joint ventures

	2019	2018
CHF thousand

Investments in associates and joint ventures	6,450	3,945
EL.IT.E S.p.A.	3,616	3,556
esolva ag	2,396	-
Terra di conte S.r.l.	286	257
Grischelectra AG	27	27
Kraftwerk Morteratsch AG	125	105


Carrying amounts at 1 January	3,945	3,632
Additions from changes in consolidation	-	267
Addition of esolva ag	2,396
Dividends	–5	–1
Effect of currency translation	–148	–138
Share of earnings	262	185
Carrying amounts at 31 December	6,450	3,945


Decrease in loans receivable
01.01.2020	–19,404	–15,530
Share of earnings	–395	–4,121
Disposal tiko Energy Solutions AG	12,834	-
Effect of currency translation	252	247
31 December	–6,713	–19,404

Losses exceeding the carrying amount of the investments deriving from at-equity valuation are netted with the loans receivable (see Note 18) as part of the net investment, and are presented in the table above.

Since 1 October 2019, SWIBI AG has no longer been recognised as a subsidiary, but as an associate under the name of esolva ag in the consolidated financial statements (see the “Transition from full consolidation to equity method“ section).

In March 2019 Engie New Business acquired an interest in tiko Energy Solutions AG by way of a unilateral capital increase. Repower’s interest declined from 35.0 to 19.85 per cent. The carrying amount of the investment came to CHF 0 thousand, and the cumulated loan’s reductions for losses came to CHF 12,843 thousand. The investment and loan are recognised at cost under financial assets (see Note 18).

The loan’s reductions for losses of CHF 6,713 thousand as of 31 December 2019 relates to the loan to the associate Aerochetto S.r.l.

18 Financial assets

	31.12.2019	31.12.2018
CHF thousand

Financial assets	36,024	45,440
AKEB Aktiengesellschaft für Kernenergiebeteiligungen	6,500	6,300
Kraftwerke Hinterrhein AG	6,300	6,500
tiko energy solutions AG	2,813	-
Loans receivable	4,628	5,989
Non-current securities	4,071	4,074
Employer contribution reserves	-	68
Fixed term deposits	11,712	22,509

Repower AG holds interests of 7.0 per cent and 6.5 per cent respectively in the partner plants AKEB Aktiengesellschaft für Kernenergie-Beteiligungen, Lucerne, and Kraftwerke Hinterrhein AG, Thusis. Repower’s interest in tiko Energy Solutions AG, Ittingen, is 19.85 per cent.

The investment in tiko Energy Solutions AG was recognised as an associate the prior year (see Note 17). The carrying amounts of the investment and loan to the company came to CHF 0 thousand and CHF 5,365 thousand respectively. With the inclusion of the new investor and the debt relief, an impairment gain of CHF 4,481 thousand was recognised in financial income (see Note 13). The carrying amounts disclosed for both the investment and the loan correspond to their amortised cost.

The active loans relate to loans to associates and joint ventures amounting to CHF 486 thousand (prior year: CHF 5,873 thousand). Accumulated impairments of CHF 6,713 thousand (prior year: CHF 19,404 thousand) were recognised under this item (see Note 17).

The employer contribution reserve account in the prior year related to SWIBI AG, which in the prior year was fully consolidated and is now recognised as an associate under the name esolva ag (see the “Transition from full consolidation to equity method” section).

19 Deferred tax assets

20 Inventories

21 Receivables from goods and services

	31.12.2019	31.12.2018
		Restated*
CHF thousand

Trade accounts receivable	54,994	48,861
Trade accounts receivable	67,233	60,720
Allowances for doubtful accounts	–12,239	–11,859

Development of allowances for doubtful accounts

Carrying amount at 1 January	11,859	9,599
Additions	4,264	4,992
Utilisations	–2,719	–2,206
Reversals	–739	–175
Effect of currency translation	–426	–351
End balance at 31 December	12,239	11,859

*) See «Correction of errors and changes in presentation» section

The stated receivables from goods and services also include claims on associates and joint ventures amounting to CHF 476 thousand (prior year restated: CHF 523 thousand).

Receivables from goods and services are measured by applying individual and lump-sum adjustments to the non-impaired positions based on their maturity structure and historical experience.

22 Other receivables

23 Prepaid expenses and accrued income

24 Securities

25 Replacement values of held-for-trading positions

26 Cash and cash equivalents

27 Provisions

	Litigation and court proceedings	Dismantling provisions	Provisions for onerous contracts	Severance pay	Other provisions	Total
CHF thousand

Carrying value at 1 January 2018	796	2,926	9,978	3,692	2,404	19,796
Additions	231	-	-	588	391	1,210
Additions from changes in consolidation	11	1,665	-	-	-	1,676
Utilisations	-	-	-	–275	–92	–367
Reversals	-	-	–5,954	–217	–951	–7,122
Interest	-	39	1,178	-	-	1,217
Effect of currency translation	–35	–98	-	–139	–73	–345
Carrying value at 31 December 2018	1,003	4,532	5,202	3,649	1,679	16,065

Carrying value at 1 January 2019	1,003	4,532	5,202	3,649	1,679	16,065
Additions	-	159	-	553	1,233	1,945
Utilisations	–11	-	-	–188	–11	–210
Reversals	-	-	–5,900	-	–390	–6,290
Interest	-	77	698	-	-	775
Effect of currency translation	–37	–150	-	–143	–82	–412
Carrying value at 31 December 2019	955	4,618	-	3,871	2,429	11,873

Non-current Provisions
Carrying value at 31 December 2018	1,003	4,532	5,202	3,649	1,647	16,033
Carrying value at 31 December 2019	955	4,618	-	3,871	1,588	11,032

Current provisions
Carrying value at 31 December 2018	-	-	-	-	32	32
Carrying value at 31 December 2019	-	-	-	-	841	841

PROVISIONS FOR ONEROUS CONTRACTS

The decision on whether there is a threat of loss on a long-term sales or procurement contract and the resulting recognition of a provision essentially depends on the situation of the relevant contractual prices and expected procurement or sales prices. In 2019 the entire provision that existed at the end of the prior year was released under energy procurement in the Market Switzerland segment because there was no longer a provisioning requirement on the 31 December 2019 cut-off date.

SEVERANCE PAY

When an employment relationship is terminated in Italy, the employee is entitled to severance pay corresponding to almost one month’s pay for each year of employment (see Note 34).

DISMANTLING PROVISIONS

The dismantling provisions category comprises various provisions for the dismantling of operating installations. Taken individually they are immaterial. Additions in 2019 were recognised under tangible assets.

OTHER PROVISIONS

A supplier of wind power equipment was unable to meet its commitment (see Note 15), delaying the construction of a Repower AG wind power plant for which a minimum feed-in tariff had already been agreed. Given the threat of a penalty resulting from the delay in the commencement of production, a provision of CHF 818 thousand was made.

28 Deferred tax liabilities

29 Current and non-current financial liabilities

	Currency	Interest rate	Current	Maturity 1- years	Maturity more than 5 years	Total Non Current
CHF thousand

Financial liabilities 31.12.2019			17,719	192,592	242,755	435,347
Bonds	CHF	2.4%	–200	96,128	-	96,128
Loans	CHF	1.2% - 3.6%	865	10,000	70,000	80,000
Loans 1)	EUR	variable	9,011	28,620	35,573	64,193
Loans	EUR	1.7% - 1.9%	-	27,135	27,135	54,270
Liabilities for finance leasing	EUR	1.1% - 1.4%	2,837	11,834	12,760	24,594
Loan from minorities	CHF	no interest	390	1,560	17,941	19,501
Loan from minorities 2)	CHF	0.3%	745	3,725	51,773	55,498
Loan from minorities	EUR	no interest	–34	–138	2,057	1,919
Loan from minorities	EUR	3.9%	3,088	13,616	9,642	23,258
Registered bond	EUR	3.4%	–7	–28	2,646	2,618
Other financial liabilities 3)	CHF	no interest	738	-	-	-
Other financial liabilities	EUR	no interest	100	140	-	140
Forward foreign currency contracts	CHF		186	-	-	-
Swaps	CHF		-	-	13,228	13,228

Financial liabilities are carried in the following currencies:
Swiss francs			2,724	111,413	152,942	264,355
Euro (translated)			14,995	81,179	89,813	170,992

1) This item includes bank loans in the amount of TCHF 62'207. Mortgage assignments were pledged as security for the investment. The fixed assets pledged in this connection are disclosed in Note 15.

2) The balances of short-term loans, loans with a «maturity of 1-5 years» and TCHF 44,706 of loans with a «maturity of more than 5 years» are released to income in accordance with the maturities shown. As of 1 January 2020, the balances are reclassified to other liabilities (see events after the balance sheet date).

3) Mortgage assignments were pledged as security for the investment loan of TCHF 212. The fixed assets pledged in this connection are disclosed in Note 15.

	Currency	Interest rate	Current	Maturity 1- years	Maturity more than 5 years	Total Non Current
CHF thousand

Financial liabilities 31.12.2018			11,437	154,817	275,464	430,281
Bonds	CHF	2.4%	–200	95,927	-	95,927
Loans	CHF	1.2% - 3.6%	75	10,865	70,000	80,865
Loans 1)	EUR	variable	3,420	17,004	30,311	47,315
Loans	EUR	1.7% - 1.9%	-	-	56,345	56,345
Liabilities for finance leasing	CHF	2.5%	21	11	-	11
Liabilities for finance leasing	EUR	1.2% - 1.4%	2,895	12,079	16,401	28,480
Loan from minorities	CHF	no interest	390	1,560	18,331	19,891
Loan from minorities	CHF	0.3%	852	3,409	52,834	56,243
Loan from minorities	EUR	no interest	–57	–228	3,340	3,112
Loan from minorities	EUR	3.9%	3,084	13,601	13,752	27,353
Registered bond	EUR	3.4%	–7	–29	2,740	2,711
Other financial liabilities 2)	CHF	no interest	719	213	-	213
Other financial liabilities	EUR	no interest	189	405	-	405
Forward foreign currency contracts	CHF		56	-	-	-
Swaps	CHF		-	-	11,410	11,410

Financial liabilities are carried in the following currencies:
Swiss francs			1,913	111,985	152,575	264,560
Euro (translated)			9,524	42,832	122,889	165,721

1) This item includes bank loans in the amount of TCHF 40'069 coming from the acquired companies. The fixed assets pledged in this connection are disclosed in Note 15.

2) Mortgage assignments were pledged as security for the investment loan of TCHF 425. The fixed assets pledged in this connection are disclosed in Note 15.

Negative amounts presented in the table are scheduled allocations of net expenditures.

30 Other non-current liabilities

31 Trade creditors

32 Other current liabilities

33 Deferred income and accrued expenses

34 Pension schemes

EMPLOYER CONTRIBUTION RESERVES

The employer contribution reserve account of CHF 68 thousand recognised as of 31 December 2018 under non-current financial assets relates to SWIBI AG, which was a fully consolidated group company the prior year. Since 2019 the company has been recognised as an associate under the name of esolva ag. The utilisation and result of employer contribution reserves came to CHF 0 thousand (prior year: CHF 12 thousand).

ECONOMIC BENEFIT/ECONOMIC LIABILITY AND PENSION BENEFIT EXPENSES

	Overfunding/ underfunding	Organisation's share of economic liability		Change on prior year	Contributions concerning the business period	Pension benefit expenses within personnel expenses
	31.12.2019	31.12.2019	31.12.2018	2019	2019	2019	2018
CHF thousand

Pension plans without overfunding/underfunding	-	-	-	-	6,558	6,558	3,620
Pension institutions with unfunded obligations	-	–3,871	–3,649	–222	234	787	759
Total	-	–3,871	–3,649	–222	6,792	7,345	4,379

In 2019 Repower AG and its employees joined the joint pension scheme of the PKE Vorsorgestiftung foundation. The previous year the pension fund for employees of Repower AG had still been organised as an independent pension scheme of the collective foundation of the PKE Vorsorgestiftung foundation.

The item “Pension institutions with unfunded obligations” relates to the obligation to pay severance pay in Italy (see Note 27). The change in the stated provision related to pension benefit expenses in the income statement comes to CHF 554 thousand at the average exchange rate.

To compensate for the future reduction in conversion rates for the occupational pensions of employees in Switzerland, Repower AG made an additional employer’s contribution of CHF 3,087 thousand in the 2019 financial year (see Note 8).

35 Derivative financial instruments

	Replacement values		Replacement values
	positive	negative	positive	negative
	31.12.2019		31.12.2018
CHF thousand

On-balance-sheet derivatives

Held for trading
Interest derivatives	-	13,228	-	11,410
Currency derivatives	4,596	186	2,000	56
Energy derivatives	837,020	814,329	1,009,980	998,141
Total on-balance-sheet derivatives	841,616	827,743	1,011,980	1,009,607
Netting	–750,329	–750,329	–847,863	–847,863
Net value on balance sheet	91,287	77,414	164,117	161,744

Off-balance-sheet derivatives

Held for cash flow hedges
Interest derivatives	-	2,804	-	2,129
Energy derivatives	130,549	120,398	33,621	56,870
Total off-balance-sheet derivatives	130,549	123,202	33,621	58,999

Total derivative financial instruments	221,836	200,616	197,738	220,743

The line “netting” refers to the netting of energy derivatives transactions entered into with the same counterparty and with whom there are enforceable netting agreements.

Cash flow hedges used as hedging transactions are not recognised on the balance sheet and therefore do not yet impact the balance sheet. Off-balance-sheet energy and interest derivatives are used to hedge future cash flows with a high probability of occurrence.

36 Transactions with related parties

The balances and liabilities reported on the balance sheet and the transactions contained in the income statement vis-à-vis related parties are related to business with the main shareholders and Repower AG entities, associates, partner plants and joint ventures controlled by them.

The following balance sheet and profit and loss items contain the following amounts vis-à-vis related third parties:

	31.12.2019	31.12.2018
		Restated*
CHF thousand

Income statement item
Net Sales from goods and services	15,935	67,759
Energy procurement	–73,972	–46,425
Financial and other operating income	402	437
Financial and other operating expenses	–2,684	–192

Balance sheet item

Assets
Financial assets	1,486	5,873
Trade accounts receivable	840	917
Prepaid expenses and accrued income	2,612	3,328
Positive replacement values of held for trading positions	3,415	7,899

Liabilities
Non-current liabilities	9,418	9,571
Trade accounts payable	1,725	1,856
Deferred income and accrued expenses	9,857	6,362
Negative replacement values of held for trading positions	16,756	11,017

Off-balance-sheet energy derivatives

Held for cash flow hedges
Positive replacement values	5,280	453
Negative replacement values	5,842	6,694

*) See «Correction of errors and changes in presentation» section

Transactions are at market prices, or in the case of Grischelectra AG at annual costs.

Canton Graubünden is deemed to be a related party in its capacity as a shareholder. Canton Graubünden’s energy business is transacted via Grischelectra AG, which is included as a related party in the table above. Official business such as levying taxes, concession-related charges, fees, etc., is done on a statutory basis and is therefore not included here.

Compensation paid to members of the board of directors and executive board is disclosed in the Corporate Governance section.

37 Segment reporting

Segment reporting is done by geographic market and reflects internal management and reporting structures. The information provided is that used by management for steering and assessing the business performance and development of the individual segments. For each business segment, internal steering, performance measurement and capital allocation are carried out on the basis of the segment’s income before interest and income taxes (EBIT). Segment income is calculated on the basis of the accounting and valuation principles used at group level.

	Market Switzerland	Market Italy	Other segments and activities	Group
CHF thousand

2019

Net sales from goods and services	676,324	1,269,071	–30,134	1,915,261
Net sales from goods and services	675,696	1,239,425	140	1,915,261
Net sales from goods and services between segments	628	29,646	–30,274	-

Earnings before interest and taxes (EBIT)	29,778	50,903	–15,461	65,220

	Market Switzerland	Market Italy	Other segments and activities	Group
CHF thousand

2018

Net sales from goods and services	715,313	1,419,405	–60,839	2,073,879
Net sales from goods and services	691,193	1,382,535	151	2,073,879
Net sales from goods and services between segments	24,120	36,870	–60,990	-

Earnings before interest and taxes (EBIT)	17,478	29,317	–11,422	35,373

38 Treasury shares

39 Off-balance-sheet business

In the course of regular business the group granted guarantees, bank guarantees and sureties in favour of third parties, directly and via commercial banks. These came to CHF 144,431 thousand (prior year: CHF 150,236 thousand).

There is a service agreement for the Teverola power plant, concluded for 25 years and ending in June 2029. This resulted in an irrevocable payment obligation of CHF 10,431 thousand as per 31 December 2019 (prior year: CHF 11,970 thousand).

In the course of usual business, litigation can arise which results in contingent liabilities. These contingent liabilities are not expected to result in material liabilities within Repower Group in addition to the provisions already made for litigation (see Note 27). On the other hand there is litigation under way where Repower is asserting its rights, which, if it is successful, could result in inflowing payments.

	31.12.2019	31.12.2018
CHF thousand

Off-balance-sheet liabilities

Operating lease (nominal value)	13,320	14,777
Due within 1 year	3,085	2,976
Due in 1-5 years	4,658	5,323
Due in more than 5 years	5,577	6,478

Procurement contracts	733,681	646,002
Due within 1 year	120,753	112,394
Due in 1-5 years	367,720	363,206
Due in more than 5 years	245,208	170,402

At the reporting date of the financial year under review, the outstanding minimum lease payments consisted of CHF 12,297 thousand for property and buildings (prior year: CHF 13,850 thousand) and CHF 1,023 thousand for motor vehicles (prior year CHF 927 thousand).

Obligations to take delivery of electrical energy deriving from the interests in AKEB Aktiengesellschaft für Kernenergie, Lucerne, Kraftwerke Hinterrhein AG, Thusis, and Grischelectra AG are not included in the above table. The volume and price of electricity delivered depend on actual future production and costs incurred by these companies.

Pledges are recognised under the relevant assets.

	2019	2018
CHF thousand

Other operating income	15,052	8,137
Profit from disposal of tangible assets	853	633
Refund from insurance for operating loss	9,737	2,944
Revenue from other operating activities	4,462	4,560

	2019	2018
CHF thousand

Share of earnings from associates and joint ventures	–133	–3,936
Associated organisations	–197	–3,938
Joint ventures	64	2

	2019	2018
CHF thousand

Concession fees	–18,357	–16,974
Water rates/hydro plant taxes	–10,317	–9,365
Other concession fees	–8,040	–7,609

	2019	2018
CHF thousand

Personnel expenses	–76,166	–73,160
Wages and salaries	–57,959	–57,669
Social security costs and other personnel costs	–18,207	–15,491

	2019	2018
CHF thousand

Materials and third party services	–48,850	–31,948
Materials	–8,003	–7,554
Third party services	–40,847	–24,394

	2019		2018
	Number of shares	Carrying amount in CHF	Number of shares	Carrying amount in CHF

Initial balance at 1 January	301	22,084	256	15,365
Purchases	351	30,227	605	42,835
Disposals	–480	–36,303	–560	–36,116
Ending balance at 31 December	172	16,008	301	22,084

	2019	2018
CHF thousand

Other operating expenses	–58,838	–55,543
Cost of premises	–4,260	–4,133
Vehicle and transport costs	–2,059	–2,217
Administrative costs	–8,116	–9,138
IT costs	–10,085	–10,343
Marketing & communications	–10,363	–9,268
Allowances for doubtful accounts	–3,821	–5,573
Capital taxes, levies and fees	–6,404	–6,265
Other operating expenses	–13,730	–8,606

	31.12.2019	31.12.2018
CHF thousand

Inventories	16,692	40,302
Emission certificates	3,583	5,836
Gas	-	23,527
Work in progress	7,782	5,418
Inventories of materials	5,327	5,521

	31.12.2019	31.12.2018
CHF thousand

Credit lines	158,714	199,705
Unused general credit lines	36,088	31,174
Additional unused credit lines for the purpose of issuing guarantees	122,626	168,531

	31.12.2019	31.12.2018
CHF thousand

Other current liabilities	23,155	29,109
Excise taxes	7,119	7,778
Connection fees and grid cost contributions	3,541	3,576
Customer prepayments	1,378	3,917
VAT liabilities	1,328	513
Current income tax liabilities	124	1,390
Other current liabilities	9,665	11,935

1 Net sales from goods and services

2 Internally produced and capitalised assets

3 Change in inventory of sales orders

4 Other operating income

5 Earnings from associates and joint ventures

6 Energy procurement

7 Concession fees

8 Personnel expenses

9 Materials and outside services

10 Other operating expenses

11 Depreciation/Amortisation, impairment and reversal of impairment of tangible assets

12 Depreciation/Amortisation, impairment and reversal of impairment of intangible assets

13 Net financial income

14 Income taxes

UNRECOGNISED TAX LOSS CARRYFORWARDS

15 Tangible assets

LEASED POWER PLANTS

16 Intangible assets

17 Investments in associated organisations and joint ventures

18 Financial assets

19 Deferred tax assets

20 Inventories

21 Receivables from goods and services

22 Other receivables

23 Prepaid expenses and accrued income

24 Securities

25 Replacement values of held-for-trading positions

26 Cash and cash equivalents

27 Provisions

PROVISIONS FOR ONEROUS CONTRACTS

SEVERANCE PAY

DISMANTLING PROVISIONS

OTHER PROVISIONS

28 Deferred tax liabilities

29 Current and non-current financial liabilities

30 Other non-current liabilities

31 Trade creditors

32 Other current liabilities

33 Deferred income and accrued expenses

34 Pension schemes

EMPLOYER CONTRIBUTION RESERVES

ECONOMIC BENEFIT/ECONOMIC LIABILITY AND PENSION BENEFIT EXPENSES

35 Derivative financial instruments

36 Transactions with related parties

37 Segment reporting

38 Treasury shares

39 Off-balance-sheet business

40 Events occurring after the balance sheet date