Letter to shareholders

Repower can look back on a successful first six months of 2024. Operating income of CHF 97 million represented one of the best half-year results in the history of the company. Group profit was likewise a very solid CHF 78 million. Equity now comes to CHF 1.2 billion and the equity ratio to 47 per cent. Repower thus continues to be in a very robust position. You will find the financial highlights here.

Repower’s trading department recorded a very good result and made the biggest contribution to earnings. The situation on the energy markets normalised in the first half of 2024. Repower pursued a far-sighted trading strategy during the turbulence on the energy markets two years ago. This sustainable strategy has also paid off this year. You will find the comments on the financial results here.

Electricity generation was above average, with Repower producing significantly more power than the previous year, particularly at its Graubünden hydropower plants. Contributory factors included large volumes of snow at higher altitudes and lower temperatures in early summer, which led to a favourable snow melt. In combination with above-average levels of precipitation, this meant that reservoirs filled up more rapidly than in other years.

Robbia hydropower plant in the Valposchiavo has also been in full operation since the beginning of June having undergone a complete modernisation, from water catchments to discharge, in the last four years. At any given time there were up to 100 people working at the various construction sites. Particularly satisfying is the fact that there was not a single serious accident during the entire work. At around CHF 115 million, Robbia is the largest renovation investment in the company’s history. With the completion of the total modernisation it will be possible to increase the volume of electricity generated at Robbia plant by 10 per cent to around 120 GWh.

The volumes of solar and wind power generated in Italy were slightly above prior-year levels. Teverola gas-fired combined-cycle power plant was offline for two months because of scheduled maintenance work. Demand for balancing energy remains very low.

In the first six months Repower invested a total of CHF 28 million, almost CHF 23 million of which went to Switzerland and Graubünden. Of this, CHF 10 million was invested in Repower’s distribution grid. A successful energy transition will require an extremely stable and reliable power grid. This entails a high level of regular investment in expansion and maintenance. The integration of solar installations, heat pumps and electric vehicle charging stations, places heavy demands on the distribution network.

Repower Italy was able to improve its trading results slightly on the prior year. There is a growing interest in sustainability in the Italian market, reflected among other things in greater demand for renewable energy and high-quality guarantees of origin. Repower Italy again refined its offering in this highly competitive market. Italy saw another decline in delays in payment in the first six months of 2024. Repower Italy also successfully completed the integration of Erreci S.r.l. and Erreci S.r.l. their 42 employees, enabling it to expand its offering of renewable energy solutions. Erreci plans and constructs solar power (photovoltaic) installations for small and medium-sized enterprises in Italy.

Outlook

Repower generally posts better results in the first half of the year than in the second six months. We anticipate a good result in the second half of the year as well.

Thank you

Our thanks go to our employees, whose expertise and dedication are the cornerstone of our shared success. We would also like to thank our valued partners for their trusting and constructive cooperation. And last but not least, we would like to thank you, our valued shareholders, for your trust and loyalty to our company. Your solidarity motivates us to continually work on our vision and drive Repower forward.

Dr. Monika Krüsi

Chair of the board of directors

Roland Leuenberger

CEO