Letter to shareholders

In Repower’s 2024 anniversary year, its stakeholders had plenty of reasons to celebrate. The reopening of Robbia hydropower plant  sent a strong signal for the future of hydroelectric power as well as underscoring Repower’s long-standing ties with the Valposchiavo. The Repower Group continued to expand its portfolio of renewable generation assets by acquiring the entire shares of Repower Renewable. There was also special recognition of Repower’s traditional roots and history of value creation in Graubünden and Italy, with the publication of the carefully researched book Power, plants, people (Strom Werke Menschen) marking the company’s 120-year anniversary. Last but not least, our 48,000 basic supply customers continued to profit in 2024 from electricity at prices below the Swiss average.

Last year was also very successful in economic terms. With earnings before interest and taxes (EBIT) of CHF 175 million (prior year CHF 371 million), the company posted one of the best annual results in its history. Group profits came to CHF 138 million (CHF 300 million) and the equity quota increased to 53 per cent (43 per cent). Repower is thus in a very robust financial position and able to continue its strategic investments in maintaining and expanding its generation facilities and distribution grids. (You will find the Comments on the financial results here)

The biggest contribution to earnings again came from international energy trading. Energy prices on the international electricity exchanges showed an overall downward trend. There were significant price fluctuations over the course of the year, largely influenced by the volatile feed-in of renewables. Repower’s trading teams were able to correctly interpret developments thanks to precise market analyses, achieving a very good result in this challenging environment while adhering to the relevant risk guidelines.

Above-average volumes of power were generated. Overall production was up 14 per cent year on year to 2,639 GWh. The main drivers of this increase in volumes generated were the reopening of Robbia hydropower plant and good hydrological conditions.

The volume of electricity generated by the solar power installations in Italy increased by ten per cent, mainly thanks to the first-time commissioning of Melfi solar farm in summer 2024. Volumes generated by the wind farms, by contrast, fell by six per cent owing to unfavourable wind conditions. Production at Teverola gas-fired combined-cycle power plant also fell by 18 per cent, as demand for balancing energy to eliminate grid congestion in the Centro Sud region was very low. (You will find the Power generation statistics here)

Positive growth in the Italian sales business continues. While the anticipated decline in the large customer segment did occur, this was more than offset by strong growth in business with small and medium-sized enterprises. Sales margins continued to improve in 2024, thanks particularly to the focus on smaller units, meaning that attractive margins were achieved despite increasing competition. Overall, Repower Italia supplied 4,332 GWh of electricity and almost 355 million cubic metres of gas to its end customers. Ongoing measures to assess credit risk also ensured that there were significantly fewer delays in payment.

Business with Swiss free-market customers also developed successfully in the past year. Contractually secured supply volumes saw a significant (+40 per cent) year-on-year increase in 2024 to more than 730 GWh.

In the last financial year, Repower invested a total of CHF 79 million (prior year CHF 102 million). In view of the increasing demand for electricity, expanding and maintaining renewable energy generation capacity is an integral part of the company’s strategy. At CHF 26 million, the main focus of investments was on generation assets. In addition to Robbia power plant, the Ferrera and Landquart paper factory plants were also successfully modernised.

The integration of solar installations, heat pumps and electric vehicle charging stations is placing new demands on the distribution network. Repower continuously invests in the maintenance and expansion of its networks to ensure their reliability. In the year under review, a total of CHF 28 million went to the modernisation of the grid infrastructure. Almost all customers in Landquart, Malans and Zizers have already been equipped with smart electricity meters that record their power consumption in real time. By the end of 2027, all households in Repower’s supply areas will be fitted with smart meters. (You will find the Grid statistics here)

Repower’s strategy foresees the targeted expansion of the portfolio of renewable generation assets. To this end, the group acquired the entire interests in Repower Renewable from Omnes Capital as well as all the shares in Kraftwerk Morteratsch AG after the previous majority shareholder, Reichmuth Infrastructure, sold its interests.

In the sustainability report the Repower Group has set itself clear climate targets: an intensity target of net zero by 2050 in power generation, with an interim target of –15 per cent by 2035. These realistic goals will be pursued by way of systematic measures and reviewed on a continuous basis. In 2024 the sustainability report was for the first time made an integral part of the annual report. (You will find the Sustainability report here)

Dividend

Given the Repower AGʼs and the Repower Group’s good annual results, strong capital structure and high levels of available liquidity, the board of directors moves that the annual general meeting of 14 May 2025 approve an ordinary dividend of CHF 5.00 per registered share and a special dividend of CHF 1.50 per registered share. (You will find the Stock statistics here)

Outlook

Thanks to the positive development of its business, Repower has a robust financial basis. This stability provides the necessary conditions for tackling the challenges ahead with foresight and determination. In the years ahead the company will make targeted investments in expanding its renewable energy generation assets and modernising the grid infrastructure. These strategic measures will ensure Repower’s long-term competitiveness and make a major contribution to a sustainable and future-proof energy supply. The sharp increase in the number of photovoltaic systems being installed will very likely lead to an increase in the number of hours with negative electricity prices on the electricity exchanges during the summer months. The company continues to expect a good result for 2025.

Thank you

We have had an extraordinary year – a year that would not have been possible without the commitment and passion of our employees. Their knowledge, dedication and drive have been instrumental in Repower’s achieving a very good result even in a challenging environment. We would also like to thank our customers, partners and all our other stakeholders for their trust and cooperation. Together we will drive the energy transition forward and build a sustainable future.

Dr Monika Krüsi

Chair of the board of directors

Roland Leuenberger

CEO