Interim consolidated financial statements of the Repower Group

Consolidated cash flow statement

	01.01.-30.06.2020	01.01.-30.06.2019
	unaudited	unaudited
		Restated*
CHF thousand

Group earnings	40,808	49,218
Income taxes	17,164	3,452
Share of earnings from associates and joint ventures	697	59
Dividends from associates and joint ventures	426	5
Net financial income	10,092	3,528
Depreciation/amortisation, impairment and reversal of impairment of tangible and intangible assets	25,107	25,111
Gain/loss on the disposals of tangible and intangible assets	142	988
Change in non-current provisions (without interest)	8,402	410
Change in replacement values of held for trading positions	12,933	–7,223
Other non-cash income and expenses	–1,289	–1,159
Other financial cash outflow and inflow	4,713	314
Funds from operations (FFO)	119,195	74,703

Changes
Inventory	1,342	25,130
Trade accounts receivable	3,786	6,167
Other receivables (without income taxes)	–16,691	–12,884
Prepaid expenses and accrued income	57,807	20,228
Current provisions	82	261
Trade accounts payable	–17,632	–10,425
Other current liabilities (without taxes)	–892	–1,783
Deferred income and accrued expenses	–78,596	7,354
Income taxes	–4,167	–1,057
Cash flow from operating activities	64,234	107,694

	01.01.-30.06.2020	01.01.-30.06.2019
	unaudited	unaudited
		Restated*
CHF thousand

Additions of tangible assets	–18,923	–18,503
Disposals of tangible assets	76	47
Additions of current and non-current financial assets	–55,039	–26,464
Disposals of current and non-current financial assets	47,308	23,915
Additions of intangible assets	–1,882	–2,089
Payment for investments in fully consolidated companies (less cash acquired)	–33,168	-
Payment for investments in associates and joint ventures	–428	-
Dividends received from third parties	3	3
Interest received	941	256
Cash flow from investing activities	–61,112	–22,835

Increase in financial liabilities	10,739	8,237
Repayment of financial liabilities	–33,240	–11,607
Dividend payments	–19,448	–4,873
Purchase/sale of treasury shares	–7	-
Purchase/sale of minorities	-	–6
Interest paid	–4,694	–4,158
Cash flow from financing activities	–46,650	–12,407

Effect of currency translation	–4,666	–2,148
Change in cash and cash equivalents	–48,194	70,304
Cash and cash equivalents at 1 January	367,131	316,314
Cash and cash equivalents at 30 June	318,937	386,618

*) Owing to the correction of an error, the prior-year figures were adjusted retrospectively (see note 2, “correction of accounting error”, to the consolidated financial statements of the Repower Group for the period to 31 December 2019).

Funds from operations (FFO) is defined as cash flow from operating activities before change in net current assets and income taxes paid. In the period under review there was a significant increase in FFO versus the first six months of 2019. This is primarily due to the significantly higher operating income adjusted for non-cash effects compared with the previous year. Including the effects resulting from the change in net current assets, however, funds from operations are lower than the prior year. This is due, among other things, to one-off optimisations of net working capital at the end of the prior year with the opposite effect in the 2020 financial year, delayed payment of customer bills in connection with Covid-19, a reduction in liabilities, lower market prices, and significantly higher income tax payments.