Notes to the consolidated financial statements: principles

1Accounting and valuation principles

General disclosures

Repower Group prepares its financial statements in accordance with the entire Accounting and Reporting Recommendations (Swiss GAAP FER), providing a true and fair view of the assets, liabilities, financial position and profit or loss of the Repower Group.

In individual cases roundings can mean that figures in this report do not add up to the exact total specified, and that the specified percentages do not exactly result from the stated figures.

The 2025 consolidated financial statements of the Repower Group were authorised by the board of directors on 1 April 2026 and are still subject to the approval of the annual general meeting on 13 May 2026.

Adjustments to comparison information

In the 2025 financial year, as part of efforts to optimise its consolidated accounting, the Repower Group adjusted existing accounting policies regarding the presentation of cash flows in the consolidated cash flow statement and the derivation of cash flows from operating activities. The aim of these adjustments is to improve comparability with other market participants.

As part of the adjustment, dividends received from third-party investments and interest received, which were previously reported separately in cash flows from investing activities, have been reclassified to cash flows from operating activities. Similarly, interest paid, which was previously reported separately in cash flows from financing activities, is now recognised in cash flows from operating activities.

In addition, the derivation of cash flow from operating activities includes further reclassifications that have no effect on the amount of cash flow from operating activities.

The adjusted comparative figures for the previous year are shown in the table below:

2Principles of consolidation

Scope of consolidation

The present consolidated financial statements encompass the financial statements of Repower AG and all investments where Repower holds, directly or indirectly, more than 50 per cent of the votes or can exercise control in some other way. These investments are fully consolidated. Associates and joint ventures are included in the financial statements in accordance with the equity method (share of equity).

List of interests

Fully consolidated companies

Joint ventures valued at equity

Associates valued at equity

The stated shareholdings represent the group shares attributable to the parent company Repower AG, Brusio.

All subsidiaries, associates and joint ventures with the exception of Grischelectra AG, which closes its accounts on 30 September, close their accounts at the end of the calendar year.

Ovra electrica Ferrera SA, Trun, is a power plant company in which the local municipality holds a 51 per cent stake. The Repower Group bears full operating responsibility for this company via Repower AG, and sells 100 per cent of the energy generated on the market. The Repower Group thus exercises overall control and Ovra electrica Ferrera SA is fully consolidated.

Under the contractual arrangements governing the interest in Elettrostudio Energia S.r.l., Grischelectra AG and Terra di Conte S.r.l., all relevant decisions on these companies must be made unanimously by the parties involved. None of the parties involved can control the companies. They therefore constitute joint ventures that Repower values at equity.

Corporate transactions

In the 2025 financial year, a number of corporate transactions resulted in changes to the scope of consolidation, affecting the consolidated balance sheet and cash flow statement. Selected matters are summarised below and explained in more detail.

The net cash outflow from the acquisition of all remaining shares in Resol Ciminna S.r.l. and from the acquisition of shares in renewable community società benefit S.r.l. totalled CHF 2,200 thousand and results from the purchase price payment less the cash and cash equivalents acquired as part of the acquisition. Of this amount, CHF 2,188 thousand was attributable to Resol Ciminna S.r.l. and CHF 12 thousand to renewable community società benefit S.r.l. These transactions resulted in control being gained over the company in each case. The payments are recognised in the cash flow statement as additions of group companies (less cash and cash equivalents acquired).

The acquisition of shares in Resol Ciminna S.r.l. resulted in a negative difference, which was recognised as negative goodwill in the amount of CHF 7,175 thousand and will be reversed over a period of five years.

During the financial year, Repower acquired all shares in B. Energie Castello di Annone S.r.l. and ESE Rizzuto S.r.l. From an economic perspective, these transactions represent the acquisition of individual assets (asset acquisitions) of the respective project companies, in particular project / plant rights and land. The associated payments totalling CHF 1,528 thousand are reported in the cash flow statement under additions in asset acquisitions.

In 2025, the Repower Group increased its interest in Energiefinanzierungs AG (ENAG) to 22.25 per cent and has since classified it as an associate. The payments amounting to CHF 8,861 thousand are reported in the cash flow statement under payments for additions of investments in associates and joint ventures.

Repower has sold minority interests totalling 20 per cent of its shares in Repower Moesano SA. Cash inflows of CHF 30 thousand from these transactions are recognised in the consolidated cash flow statement under sale of minorities.

Acquisition of control of Resol Ciminna S.r.l.

On 8 April 2025, Repower acquired all remaining shares (amounting to 50%) in Resol Ciminna S.r.l. from the previous shareholder TI II (Italy) 1 S.r.l., thereby becoming the sole owner. The company, which was previously recognised as a joint venture at equity, is fully included in the consolidated financial statements from this date.

Repower acquired the company for a total purchase price of CHF 6,346 thousand. The acquisition resulted in a transfer of net assets of CHF 27,042 thousand to Repower, including tangible assets worth CHF 22,709 thousand and cash and cash equivalents of CHF 4,158 thousand.

A comparison of the purchase price of CHF 6,346 thousand with the proportionate net assets acquired (CHF 13,521 thousand) results in negative goodwill of CHF 7,175 thousand, which is recognised under other non-current liabilities and will be amortised over a useful life of five years.

The components of the purchase price that were cash-relevant in the 2025 financial year, minus the cash and cash equivalents acquired, are recognised at a value of CHF –2,188 thousand in cash flow from investing activities as investments in group companies (less cash and cash equivalents).

Resol Ciminna S.r.l. is an agrivoltaic power generation asset in Ciminna, Sicily. The company is currently in the project / development phase and is not yet generating any net sales revenue.

Acquisition of renewable community società benefit S.r.l.

In the first half of 2025, Erreci S.r.l. acquired all shares in the renewable community società benefit S.r.l. With the acquisition of control, the company was included in the Repower Group’s scope of consolidation.

The purchase price amounts to CHF 537 thousand, with minority interests amounting to CHF 4 thousand. The net assets acquired as part of the transaction consist mainly of cash and cash equivalents amounting to CHF 525 thousand.

The cash-relevant components of the purchase price, minus the cash and cash equivalents acquired, are recognised at a value of CHF –12 thousand as additions of group companies (less cash and cash equivalents acquired).

Renewable community società benefit S.r.l. is an innovative start-up focused on developing energy communities from renewable sources in Italy. The company has not reported any net sales.

Acquisitions of B. Energie Castello di Annone S.r.l. and ESE Rizzuto S.r.l.

On 26 May and 1 October 2025, Repower Renewable acquired all shares in B. Energie Castello di Annone S.r.l. (hydropower project) and ESE Rizzuto S.r.l. (agrivoltaic project). As the transactions mainly involve the acquisition of power plant projects, they are accounted for as asset acquisitions. The consolidated balance sheet mainly includes assets under construction and land in the amount of CHF 1,186 thousand and CHF 701 thousand respectively, as well as deferred tax liabilities in the amount of CHF 182 thousand.

The payments totalling CHF 1,528 thousand for the acquisition of the projects are reported in the cash flow statement under addition in asset acquisitions.

The project companies do not currently report any net sales.

Acquisition of significant influence on ENAG Energiefinanzierungs AG (ENAG)

On 7 January 2025, Repower Group increased its interest in Energiefinanzierungs AG (ENAG), Schwyz, from 5.477 per cent to 22.25 per cent. Since then, the investment has been recognised as an associate in other segments and activities. The portion of the difference between the current values and the carrying amounts attributable to the previously held investment was recognised in retained earnings in the amount of CHF 151 thousand.

The purchase price including transaction costs amounts to CHF 8,861 thousand, which is reported in the consolidated cash flow statement under payments for additions of investments in associates and joint ventures. ENAG provides Repower with 40 MW of rights to procure electricity over a term of 15 years.

Disposal of minority interest in Repower Moesano SA

On 7 February 2025, Repower sold a total of 20 per cent of its shares in Repower Moesano SA. The shares were acquired by the municipalities of Buseno, Cama and Calanca. Following the conclusion of the transactions, Repower continues to hold 80 per cent of the shares in Repower Moesano SA, which is still included in the consolidated financial statements as a subsidiary.

Repower sold the shares for a total of CHF 30 thousand. With the purchase, the purchasers assumed negative net assets totalling CHF 451 thousand, resulting in a gain of CHF 481 thousand for the Repower Group.

The cash components of the selling price amounting to CHF 30 thousand are recognised in cash flows from investing activities under sale of minorities.

Consolidation method

Capital consolidation is done in accordance with the purchase method. When an entity is purchased its assets and liabilities as of the date of acquisition are revalued in accordance with uniform group principles. Any remaining goodwill (the difference between the purchase price and the share of equity) is capitalised and amortised over five years or a maximum of 20 years. Assets and liabilities and income and expenses at fully consolidated entities are integrated in their entirety in the consolidated financial statements. Minority interests in the equity and minority interests in the profits of fully consolidated entities are stated separately.

Intragroup receivables and liabilities, income and expenses and investments are netted out and interim gains eliminated. Investments in associates and joint ventures are accounted for using the equity method.

Conversion of foreign currencies

Each group company determines the functional currency in which it draws up its individual financial statements. Company financial statements in foreign currencies are converted as follows: assets and liabilities at the closing rate on the balance sheet date, equity at historical rates. The income and cash flow statements are converted at the average rate for the year. The resulting translation differences are recognised directly in equity. On the disposal of entities, the translation differences attributable to them are reclassified to profit or loss.

Foreign currency transactions contained in the individual financial statements of consolidated entities are converted at the relevant daily rate, and foreign currency balances are converted on the closing date at the closing rate on the balance sheet date. The resulting differences in rates are recognised in profit or loss.

The following exchange rates were used for the most important foreign currency:

Cash flow statement

The net cash funds forms the basis of the consolidated cash flow statement. In addition to cash and cash equivalents, this fund also includes short-term loans arising from overdrafts that are used as part of an agreed overdraft facility. Cash flow from operating activities is calculated by the indirect method.

3Accounting and valuation principles

Tangible assets

Tangible assets are initially recognised at the lower of cost (acquisition or manufacturing cost). Repower does not capitalise borrowing costs. Self-constructed tangible assets are to be capitalised if the expenses incurred can be individually recognised and measured. Own costs capitalised are measured on the basis of hours actually incurred, which are multiplied by hourly rates calculated for the current financial year. For the purposes of subsequent measurement, Repower does scheduled straight-line amortisation over the expected useful life. Estimated useful lives are calculated in accordance with the recommendations of the Association of Swiss Electricity Companies and are within the following ranges for each category:

Government grants

Grants and contributions from public funds are recognised if there is sufficient certainty that the associated conditions will be met and the value can be reliably estimated. Government grants related to assets are offset against the corresponding acquisition or production costs of the asset. This reduces the depreciation basis and results in correspondingly lower depreciation over the useful life of the asset.

Intangible assets

Intangible assets are initially recognised at the lower of cost (acquisition or manufacturing cost). Provided the prerequisites for capitalisation under FER 10/4 are met, intangible assets generated internally are capitalised. Amortisation is done on a straight-line basis. The estimated useful lives for the individual categories are within the following ranges:

Impairment

Assets are tested for impairment on every balance sheet date. If there is evidence of impairment, an impairment test is carried out to calculate the recoverable value. The recoverable value is the higher of net selling price and value in use. If the carrying amount exceeds the recoverable value, an adjustment is made in the income statement by way of unscheduled amortisation. If there is a material improvement in the facts considered in the course of calculating the recoverable value, an impairment recognised in earlier reporting periods will be fully or partially reversed in the income statement, with the exception of goodwill.

Investments in associates and joint ventures

Investments in associates and joint ventures are recognised using the equity method, in other words according to the share of equity. Any goodwill is a component of the interest in the entity. The goodwill is amortised on a straight-line basis and thus flows directly into the Repower Group’s consolidated income statement via earnings from associates and joint ventures.

Non-current financial assets

Non-current financial assets comprise financial investments, loans receivable and fixed-term deposits. Investments, loans receivable and fixed-term deposits are recognised at cost less any impairment. Financial investments are investments that are not classified as an investment in subsidiaries, joint ventures or associates and that are intended to be held on a long-term basis. Items that are realised within 12 months of the balance sheet date are recognised as current financial assets on the balance sheet.

Deferred taxes

Deferred income taxes take into account temporary valuation differences between the assets and liabilities valued according to uniform group guidelines in accordance with Swiss GAAP FER compared with the values applicable under tax law. Tax loss carryforwards and interest carryforwards are recognised if they are likely to be offset against future profits for tax purposes.

Inventory

Inventories are goods used in the regular course of business for the purposes of disposal, manufacturing goods or providing services. They are initially recognised at the lower of cost (acquisition or manufacturing cost). The closing inventory is valued at the lower of average cost or net market price. Settlement discounts received are recognised as financial income.

Repower provides services for third parties. Only immaterial contracts are recognised under inventories at acquisition or production cost.

Trade accounts receivable

Trade accounts receivable comprise receivables from business activities where the delivery or service has already been fulfilled but the debtor’s payment has not been received. Receivables are measured at nominal value taking due account of necessary impairment.

Other current and non-current receivables

Contracts that are material for Repower in the context of its service business are recognised under other receivables provided the criteria set out in Swiss FER 22 Long-Term Orders are met. They are recognised in proportion to revenue net of any amounts already invoiced and prepayments received. The percentage of completion for application of the percentage of completion method is calculated individually for each contract using the cost to cost method.

Other current and non-current receivables still include all other receivables. They are measured at nominal value taking due account of necessary impairment.

Prepaid expenses and accrued income / deferred income and accrued expenses

Prepaid expenses and accrued income / deferred income and accrued expenses are designed to ensure that assets and liabilities at the balance sheet date are presented correctly and that income and expense are recognised on an accrual basis in the income statement.

In particular, goods and services delivered or received but not yet invoiced are recognised in prepaid expenses and accrued income / deferred income and accrued expenses.

Current financial assets

The balance sheet item current financial assets comprises loans receivable and fixed-term deposits, derivatives and other securities that are realised within 12 months of the balance sheet date or held for trading. Loans receivable and fixed-term deposits are recognised at cost less any impairment. Derivatives are recognised at current values. Other securities that are not intended to be held long term and that are recognised as current financial assets are measured at current values if available. If no current value is available, they are recognised at no higher than their acquisition costs less any impairments.

Replacement values of held-for-trading positions

Contracts in the form of forward transactions (forwards and futures) conducted with the intention of achieving a trading profit or margin are treated as derivative financial instruments and recognised as held-for-trading positions or replacement values. On the balance sheet date, all open derivative financial instruments from energy trading transactions are measured at fair value through profit or loss, and the positive and negative replacement values are recognised under assets and liabilities. Positive replacement values represent receivables. Negative replacement values represent liabilities. The replacement value is the difference in price compared to the closing price.

The open contracts are measured on the basis of market data from electricity exchanges (e.g. EEX Leipzig). For contracts for which no liquid market exists, measurement is based on a valuation model.

Current transactions are offset at positive and negative replacement value if the respective contract terms provide for this and the intention to offset exists and is legally permitted.

Realised and unrealised income from held-for-trading positions is recognised as net sales from goods and services.

Cash and cash equivalents

The cash and cash equivalents item comprises cash, sight deposits at banks and other financial institutions (e.g. Post) and cash equivalents, provided they are held as a cash reserve, are highly liquid and convertible to cash at short notice, and are subject to only negligible fluctuations in value. Cash equivalents have a maximum residual term to maturity of 90 days at the balance sheet date.

Provisions

A provision is a probable liability on the basis of an event before the balance sheet date; the amount of the liability and / or the date on which it will fall due is uncertain but can be estimated. Provisions are recognised for actual and statutory obligations and for impending risks and losses. Existing provisions are remeasured on every balance sheet date. Provisions are divided into current provisions (due within twelve months) and non-current provisions (due after twelve months). If there is a material time factor involved, the provision is discounted.

Financial liabilities

Financial liabilities comprise both financing activities and derivatives, and are recognised at nominal or current values. Any differences between the acquisition cost and the redemption value of bonds or registered bonds are amortised on a straight-line basis over the term of the instruments. Interest accrued but not yet charged is accrued and recognised as deferred income and accrued expenses on the balance sheet date. Depending on the term, it is recognised under non-current or current financial liabilities.

Other non-current liabilities

Other non-current liabilities comprise all liabilities not belonging to the other categories that are not due within twelve months after the balance sheet date. In particular, under this item Repower recognises received connection fees and grid cost contributions, which are charged to profit or loss over a period of 35 years. Negative goodwill is also recognised under this item.

Trade accounts payable

Trade accounts payable are current liabilities with a remaining term of less than twelve months arising in particular from deliveries, work performances, services and lease agreements. They are recognised at nominal values.

Other current liabilities

This item comprises all other current liabilities that cannot be assigned to payables from goods and services. They are recognised at nominal values.

Pension provisions

On the balance sheet date, employees of Repower AG in Switzerland were members of the PKE Vorsorgestiftung Energie pension fund. This is a legally independent pension fund operating as a defined contribution plan in accordance with the Federal Law on Occupational Pensions for Old Age, Survivors and Disability (BVG). Pension benefit obligations are measured and recognised in accordance with Swiss GAAP FER 16. The economic impacts of pension institutions on the entity are either economic benefits or economic obligations. Economic benefits and economic obligations are evaluated at the balance sheet date and recognised in the entityʼs financial statements. Employer contribution reserves are recognised at nominal or present value as financial assets.

A peculiarity of Italian law is the payment of severance pay. This corresponds to around one monthʼs pay for every year of employment, and must be paid in all cases when an employment relationship is terminated. The provision for this obligation is calculated according to a recognised method specific to the country, and the change is recognised in personnel expenses.

Cash flow hedges

Derivative transactions entered into for the purpose of hedging cash flows with a high probability of occurrence are not recorded on the balance sheet, but are disclosed in the notes.

Leases

A lease is an agreement whereby certain goods are ceded for the use of the lessee in return for a payment. A distinction is made between finance and operating leases. A finance lease is defined as a lease that transfers all material risks and rewards of ownership to the lessee. Otherwise the lease is deemed to be an operating lease. The asset leased under a finance lease is recognised as tangible assets and financial liabilities. Lease instalments paid are apportioned between the finance charge and the reduction in the outstanding liability. Assets leased under operating leases are not recognised on the balance sheet. Paid and received leasing instalments are recognised in the period in which they occur.

Off-balance-sheet business

Contingent assets and liabilities are measured at the balance sheet date and disclosed in the notes. If an outflow of funds without a simultaneous usable inflow of funds is probable and estimable, a corresponding provision is recognised.

Transactions with related parties

Related parties (natural persons and legal entities) are parties which can directly or indirectly exert a significant influence on the groupʼs financial and operational decisions. Organisations that for their part are directly or indirectly controlled by the same related parties are likewise deemed to be related. All material transactions and resulting balances or liabilities vis-à-vis related parties are disclosed in these consolidated financial statements.