Notes to the financial statements: Notes

1 Net sales

Revenue from energy sales is recognised in the income statement when delivery of goods or services has been performed. Sales revenue increased significantly versus the prior year because of year-on-year increases in energy trading volumes and energy prices.

Long-term contracts are recognised in accordance with the percentage of completion method.

2 Other operating income and expenses

Other operating income contains in particular revenues from services and other usual business activities, as well as gains on disposals of assets. The year under review includes a purchase price adjustment made for the transfer of transmission grids (CHF 21,013 thousand) as well as payments on the basis of a legal dispute won by Repower (CHF 1,918 thousand).

On 1 January 2020, Repower AG disposed of the Prättigau power generation assets, with a carrying value of CHF 42,008 thousand, for a consideration of CHF 91,184 thousand. The gain on the disposal of assets the prior year comes to CHF 49,176 thousand.

Other operating expenses include in particular IT, marketing, legal, advisory and additional administration expenses.

3 Depreciation/amortisation and impairment

Amortisation of intangible assets includes CHF 352 thousand for the reversion waiver compensation paid and capitalised in January 2021 in the amount of CHF 24,110 thousand (paid to Canton Graubünden, the municipality of Brusio and the municipality of Poschiavo) for the continued operation of the Campocologno I and II power plants (see Note 13).

4 Extraordinary, non-recurring or prior-period income

The prior year primarily consisted of the proceeds from the transfer in kind to EVUlution AG.

5 Cash and cash equivalents

6 Replacement values of held-for-trading positions

Positive and negative replacement values of held for trading positions stated on the assets and liabilities side of the balance sheet increased, mainly in connection with the sharp rise in energy prices. On a net basis, replacement values come to CHF 2,928 thousand (prior year: CHF 10,348 thousand).

7 Trade accounts receivable

The stated trade accounts receivable essentially consist of balances from trading and retail business.

Investments consist for the most part of balances from ongoing business with Repower’s subsidiaries.

Where necessary, an individual adjustment was applied to the final balance, and the lump-sum adjustment accepted for tax purposes was applied to the other items.

8 Other receivables

Third parties includes accrued contractual revenues of CHF 17,260 (prior year: CHF 10,897 thousand) less received advance payments of CHF 13,461 thousand (prior year: CHF 6,715 thousand) and receivables from security deposits paid of CHF 63,949 thousand (prior year: CHF 13,773 thousand). Security deposits paid contains security deposits paid in connection with trading activities. Margin requirements were tightened, particularly because of the greater volatility and the price levels for energy products.

The item “current financial receivables third parties” contains CHF 4,030 thousand for the loan to tiko Energy Solutions AG, which was settled in the year under review.

9 Inventories

In the year under review, impairments of CHF 74 thousand on inventories of materials were recognised as costs of materials (prior year: CHF 51 thousand).

10 Prepaid expenses and accrued income

The total for the year under review contains prepaid expenses and accrued income of CHF 492,968 thousand (prior year: CHF 322,524 thousand) from investments and for energy bills not yet invoiced. The higher revenues (the result of increases in trading volumes and energy prices) lead to a significant year-on-year increase in prepaid expenses and accrued income.

11 Financial assets

Loans to investments include loans for which a subordination of CHF 2,092 thousand has been granted (prior year: CHF 871 thousand). The loans connected with the subordination were fully impaired in the year under review (see. Note 3).

12 Tangible assets

In the year under review there is an increase in tangible assets under construction owing to the total modernisation of Robbia power plant. Assets under construction also include investments in the grid.

13 Intangible assets

In the year under review, Repower AG capitalised reversion waiver compensation, paid out in January 2021, amounting to CHF 24,110 thousand (Canton Graubünden and the municipalities of Brusio and Poschiavo) for the continued operation of the Campocologno I and II power plants (see Note 3).

14 Trade accounts payable

Trade accounts payable primarily consist of liabilities from the energy business, procurements for operating activities, and investments.

15 Current interest-bearing liabilities

On the basis of its maturity compared with the prior year, the bond is recognised under current interest-bearing liabilities (see Note 19).

16 Other current liabilities

In the year under review, the item “third parties” primarily consists of liabilities of CHF 84,094 thousand (prior year: CHF 0 thousand) from security deposits received in connection with exchange trading activities. Margin requirements were tightened, particularly because of the greater volatility and the price levels for energy products.

17 Deferred income and accrued expenses

The total for the year under review contains prepaid expenses and accrued income of CHF 500,154 thousand (prior year: CHF 335,429 thousand) from investments and for energy bills not yet invoiced. The increase in procurement costs due to an increase in trading volumes and energy prices has led to a significant year-on-year increase in deferred income and accrued expenses.

18 Provisions

Procurement contract risks

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 regarding the relevant contractual prices and expected procurement or sales prices.

At the end of the year under review, provisions for identifiable losses on procurement contracts for energy and guarantees of origin came to a total of CHF 17,288 thousand. Of this amount, CHF 15,567 thousand falls to procurement contracts for electricity and CHF 1,721 thousand to guarantees of origin. Provisions for onerous contracts for energy and guarantees of origin were adjusted via energy procurement and recognised as income.

Other risks

In the year under review other risks includes a provision for unrealised foreign exchange gains amounting to CHF 3,413 thousand (previous year: CHF 424 thousand).

19 Non-current interest-bearing liabilities

On the basis of its maturity compared with the prior year, the bond is recognised under current interest-bearing liabilities (see Note 15).

20 Other non-current liabilities

21 Equity

Share capital

Significant shareholders as defined by the Swiss Code of Obligations (OR) 663c (share of capital and voting rights):

Treasury shares

In the year under review Repower AG bought 500 shares at an average price of CHF 118.95 and sold 562 shares at an average price of CHF 121.80.

The previous year Repower AG bought 350 shares at an average price of CHF 92.14 and sold 310 shares at an average price of CHF 95.94.