17Investments in associates and joint ventures

To construct a solar power installation in Italy, in 2023 Repower and a partner established the joint venture Resol Ciminna S.r.l., each taking a 50 per cent interest. The company is managed jointly and valued at equity. The initial carrying value comes to CHF 13,030 thousand, of which CHF 47 thousand was contributed in cash and the remainder in kind.

In the current year, Repower acquired 20 per cent of Elettrostudio Energia S.r.l. with the aim of encouraging the expansion of renewable energy in Italy. The company is managed jointly and valued at equity. The purchase price recognised at the time of acquisition amounts to CHF 2,306 thousand, of which CHF 769 thousand was already paid in December 2023. The goodwill of CHF 1,792 thousand recognised at the time of acquisition is part of the investment and will be amortised over a period of five years. The financial impact of the earn-out agreements made is currently uncertain and its amount cannot be predicted with sufficient accuracy, meaning that this component of the purchase price has not yet been recognised. It is possible that earn-outs to be paid could lead to adjustments to goodwill in the future. The adjusted goodwill will be amortised over the remaining useful life.

The economic prospects of the associate EVUlution AG have deteriorated, with the balance sheet burdened by historical losses and further losses foreseeable. For this reason, an impairment loss of CHF 1,061 thousand, corresponding to the entire investment, was recognised via earnings from associates and joint ventures in the other segments and activities segment (see Note 5). At the same time the loan that exists, which is not part of the net investment in the company, has been fully impaired through financial expenses in the amount of CHF 2,252 thousand (see Note 13 and Note 18).

In 2022, Repower Italia S.p.A. acquired interests in the two companies Erreci S.r.l. and Erreci Impianti S.r.l. for CHF 6,983 thousand; the earn-outs recognised in the initial consolidation came out at the expected amount and payments of CHF 1,539 thousand were made in 2023.

Losses in excess of the carrying value of the investments from measurement according to the share of equity are netted with the loans that also exist (see Note 18) as a component of the net investment, and are presented in the table above (Loss carryforward for loan receivable). Currently and at the end of the prior year, there were no losses recognised on loans from the application of the equity method.