Notes to the financial statements: notes

1Net sales

Declining energy prices have a generally curbing effect on net revenues and energy procurement costs (see Note 4). Repower’s hedging strategy of selling the majority of the electricity generated at its own power plants at hedged prices thus safeguarded margins at its generation assets from the slump in prices.

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 0 thousand (prior year: CHF 2,690 thousand).

2Own costs capitalised

As in the prior year, own costs capitalised result mainly from services in connection with the overall renovation of Robbia power plant and investments in the Repower electricity grid.

3Other operating income

Other operating income includes in particular revenues from services in favour of third parties as well as recharges to investments for IT services and power plant maintenance.

4Energy procurement

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

Energy procurement consists on a net basis of CHF 266 thousand in income from a change in the provision for long-term contracts (see Note 22) (prior year: CHF 18,098 thousand).

5Concession fees

The increase in water rates/hydro plant taxes is in connection with an increase in own production.

The increase in other concession fees is mainly due to higher expenses for free energy, the amount of which was agreed with the municipalities the prior year.

6Other operating expenses

7Depreciation/amortisation and impairment

The impairments of tangible and intangible assets relate primarily to Taschinas power plant and Papierfabrik Landqart power plant.

The investment of CHF 1,061 thousand and the loan of CHF 2,252 thousand to EVUlution AG were fully impaired in the year under review (see Note 15).

8Net financial income

Receivables and liabilities are largely recognised in euros, the main currency for 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 of arising and the time of falling due. In 2023 the weakening of the euro against the Swiss franc continued. There were higher currency translation losses than in the previous year.

Dividend income consists primarily of the dividend of Repower Italia S.p.A.

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 declined sharply. In net terms the replacement values come to CHF 143,700 thousand (prior year: CHF 47,642 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. Items that have not been individually impaired are adjusted in value based on the general allowances accepted for tax purposes.

12Other receivables

Third parties include receivables from subsidies in connection with the total modernisation of Robbia power plant in the amount of CHF 4,480 thousand (prior year: CHF 5,276 thousand) and receivables from security deposits paid of CHF 30,501 thousand (prior year: CHF 72,949 thousand). These security deposits are in connection with trading activities.

13Inventories

In the year under review, impairments of CHF 303 thousand on inventories of materials were recognised as costs of materials (prior year: CHF 122 thousand).

14Prepaid expenses and accrued income

The total for the year under review contains prepaid expenses and accrued income of CHF 312,227 thousand (prior year: CHF 558,533 thousand) for energy bills not yet invoiced.

15Non-current financial assets

There is a reduction in loans to participations as a result of the repayment of the Repower Italia S.p.A. loan (EUR –15 million or CHF –14.8 million) and the write-down of the loan to EVUlution AG of CHF 2,252 thousand (see Note 7). Also included is a loan for which a subordination of CHF 267 thousand has been granted (prior year: CHF 270 thousand).

16Tangible assets

The power plants item includes the impairments on the Taschinas and Papierfabrik Landqart power plants as well as additions to plants investments stemming from the total modernisation of Robbia power plant. In the year under review there is an increase in tangible assets under construction primarily owing to investments in the grid and the total modernisation of Robbia power plant.

17Intangible assets

18Trade accounts payable

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

19Current interest-bearing liabilities

In March 2023 the scheduled repayment of the private placement of CHF 10,000 thousand was made. On the basis of its maturity compared with the prior year, the bank loan and bond are recognised under current interest-bearing liabilities (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 of withholding tax and VAT.

21Deferred income and accrued expenses

The total for the year under review contains prepaid expenses and accrued income of CHF 288,556 thousand (prior year: CHF 575,385 thousand) from investments and for energy bills not yet invoiced.

22Provisions

Procurement contract risks

The decision on whether there is an indication 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 of the provisions for onerous contracts has the effect of reducing the total costs of energy procurement by CHF 266 thousand (prior year: CHF 18,098 thousand). The provisions for onerous contracts totalling CHF 468 thousand (prior year: CHF 689 thousand) relate exclusively to procurement contracts for guarantees of origin. In the prior year, the entire provision for onerous energy contracts was written back because of increase in market prices for energy (see Note 4).

Other risks

In the year under review other risks includes a provision for unrealised foreign exchange gains amounting to CHF 3,082 thousand (previous year: CHF 2,541 thousand) and a provision of CHF 3,000 thousand (prior year: CHF 0 thousand) for the dismantling of a decommissioned power plant.

23Non-current interest-bearing liabilities

On the basis of their maturity compared with the prior year, the bank loan and bond are recognised under current interest-bearing liabilities (see Note 19).

24Other non-current liabilities

25Equity

Share capital

Significant shareholders (share of capital and voting rights, percentages rounded):

Treasury shares

In the year under review Repower AG bought 962 shares at an average price of CHF 168.14 and sold 731 shares at an average price of CHF 171.71.

The prior year 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.