Notes to the financial statements: notes

1Net sales

Revenue from energy sales is recognised in the income statement when delivery of goods or services has been performed. In particular, significantly higher average energy prices during 2022 led to an increase in revenue from energy sales. The costs of energy procurement developed analogously (see Note 4).

Repower made a successful bid in the Swissgrid auction for the hydropower reserve and will retain a specific volume of water to keep energy production of 24 GWh on standby until May 2023. Repower is receiving a retention fee for the period from December 2022 to May 2023. This retention fee is recognised proportionally to the time elapsed as revenue from energy business.

Long-term contracts are recognised in accordance with the percentage of completion method. In the year under review, revenue from long-term contracts came to CHF 2,690 thousand (prior year: CHF 6,363 thousand).

2Own costs capitalised

As in the prior year, the capitalisation of own costs resulted primarily from costs in connection with the total modernisation of Robbia power plant and with Repower’s electricity grids.

3Other operating income

The profits from the disposal of tangible assets in 2021 relate in particular to grid assets and land.

Revenue from other operating activities contains in particular revenues from services and other usual business activities. The prior year includes one-time items amounting to CHF 26,729 thousand (a CHF 21,013 thousand purchase price adjustment made for the transfer of transmission grids, a CHF 3,798 thousand market premium received for large hydropower projects and a payment of CHF 1,918 thousand received on the basis of a legal dispute won).

4Energy procurement

The higher prices of energy products meant higher energy procurement costs (see Note 1).

Energy procurement consists on a net basis of CHF 16,841 thousand in income from a change in the provision for long-term contracts (see Note 22) (prior year: CHF 2,015 thousand).

5Concession fees

The decline in water rates/hydro plant taxes is in connection with a decline in own production.

6Other operating expenses

7Depreciation/amortisation and impairment

Because of a one-time impairment of a net CHF 4,116 thousand of financial assets and investments the prior year, depreciation/amortisation and impairment came out lower overall.

8Net financial income

The receivables and liabilities of this company exist to a large extent in the invoicing and payment currency euro and occur primarily in the energy business. Owing to fluctuations in the exchange rate between the euro and the Swiss franc, currency gains or losses may occur between the time the receivable or liability arises and the time it falls due. In 2022 the weakening of the euro against the Swiss franc gained momentum. There were higher currency translation losses than in the previous year. Offsetting this were gains from forward transactions recognised under changes in the value of securities held for trading in financial income.

9Cash and cash equivalents

10Replacement values of held-for-trading positions

The positive and negative values of held-for-trading positions which are recognised on the assets and liabilities side of the balance sheet, which the prior year had increased on both sides, declined sharply. In net terms the replacement values come to CHF 47,642 thousand (prior year: CHF 2,928 thousand).

11Trade 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 subsidiaries.

Trade accounts receivable are measured by applying individual and lump-sum adjustments. Positions not impaired individually are impaired on the basis of the lump sums accepted for tax purposes.

12Other receivables

Third parties includes accrued contractual revenues of CHF 5,276 (prior year: CHF 17,260 thousand less advance payments received of CHF 13,461 thousand) and receivables from security deposits paid of CHF 72,949 thousand (prior year: CHF 63,949 thousand). These security deposits are in connection with trading activities.

13Inventories

In the year under review, impairments of CHF 122 thousand on inventories of materials were recognised as costs of materials (prior year: CHF 74 thousand).

14Prepaid expenses and accrued income

The current year item includes prepaid expenses and accrued income of CHF 558,533 thousand (prior year: CHF 492,968 thousand) from investments and for energy bills not yet invoiced.

15Financial assets

Loans to investments include loans for which a subordination of CHF 270 thousand has been granted (prior year: CHF 2,092 thousand).

16Tangible 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.

17Intangible assets

In December 2022 and January 2023, CHF 2,395 thousand was paid and capitalised respectively for the approval of the amendments to the concessions for Robbia and Campocologno I power plants (Canton Graubünden, municipality of Brusio, municipality of Poschiavo).

In the prior year, Repower AG had 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 Campocologno I and II (lower stage) power plants.

18Trade accounts payable

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

19Current interest-bearing liabilities

On the basis of its maturity compared with the prior year, the private placement is recognised under current interest-bearing liabilities. In July 2022, the Repower bond that was recognised as a current financial liability the prior year was repaid on schedule for the amount of CHF 96,445 thousand (see Note 23)

20Other current liabilities

In both the year under review and the prior year, the item “third parties” primarily consists of liabilities from variation margins received and the VAT return for the fourth quarter. The CHF 84,094 thousand deposit received in connection with direct trading and recognised as a liability the prior year was repaid.

Investments include the annual repayment of CHF 796 thousand of the advance payment made by Repartner Produktions AG to Repower AG for Taschinas power plant.

21Deferred income and accrued expenses

The total for the year under review contains prepaid expenses and accrued income of CHF 575,385 thousand (prior year: CHF 500,154 thousand) from investments and for energy bills not yet invoiced.

22Provisions

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.

The adjustment to the provision for onerous energy contracts has a particular impact on Repower AG’s income. The expected future prices of energy have increased. As a result, this provision was written back in full via energy procurement in the amount of CHF 16,841 thousand (prior year: CHF 2,015 thousand) after interest had been paid. At the end of the year under review, provisions for identifiable losses on procurement contracts for energy and guarantees of origin thus came to a total of CHF 689 thousand. The entire remaining provision relates to procurement contracts for guarantees of origin.

Other risks

In the year under review other risks includes a provision for unrealised foreign exchange gains amounting to CHF 2,541 thousand (previous year: CHF 3,413 thousand).

23Non-current interest-bearing liabilities

On the basis of its maturity compared with the prior year, the private placement is recognised under current interest-bearing liabilities (see Note 19). In December 2022, a new two-year bond was issued at a nominal value of CHF 150,000.

24Other non-current liabilities

25Equity

Share capital

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

Treasury shares

In the year under review Repower AG bought 603 shares at an average price of CHF 136.98 and sold 590 shares at an average price of CHF 143.69.

The previous year 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.