Notes to the consolidated financial statements: notes

1Net sales from goods and services

Revenue from the delivery of electricity and other goods is recognised as net sales from goods and services as soon as the delivery has been made and the benefits, risks and powers of disposal have been transferred to the purchaser. Revenue from services is recognised in the period in which the services are rendered.

Net sales from goods and services are stated exclusive of value added tax based on the amounts invoiced for these goods and services.

Revenue from energy business includes both realised and unrealised revenue from held-for-trading positions. Energy derivatives used for hedging purposes or for proprietary trading remain off-balance sheet and are only recognised in the income statement upon delivery or settlement (see Note 26 and Note 35).

Revenues from services and other usual business activities contain revenues of CHF 23,004 thousand (prior year: CHF 13,070 thousand), mainly from the construction and maintenance of photovoltaic systems for customers (see Note 3) by Erreci S.r.l., which was acquired in the first half of the previous year.

2Own costs capitalised

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

3Change in inventory of sales orders

The change in inventory of sales orders relates to work in progress allocated to inventories (see. Note 21).

The changes in inventory in the Market Italy segment were characterised by two opposing effects in the 2025 financial year.

On behalf of Terna, connection systems were produced for the photovoltaic systems of subsidiary Resol Ghislarengo S.r.l.; on completion, these are transferred to Terna S.p.A. at the manufacturing costs. Costs of materials amounting to CHF 6,031 thousand incurred in this connection in the year under review (prior year CHF 10,809, see Note 9) resulted in a decline in inventories.

On the other hand, the completion of customer orders for the construction of photovoltaic systems led to a decline in inventories of CHF 5,336 thousand (prior year CHF 1,283 thousand), recognised as expense.

4Other operating income

The profit from the disposal of tangible assets in 2025 is essentially result of the disposal of non-operational properties in other segments and activities.

The release of negative goodwill relates to the negative goodwill of CHF 7,175 thousand arising in connection with the acquisition of control over Resol Ciminna S.r.l. This is recognised as a liability under other non-current liabilities and will be reversed over a period of five years in favour of the Market Italy segment (see Note 30).

Other operating revenue comprises a gain of CHF 578 thousand (Market Switzerland segment) from the transfer of the activities of the PLUG’N ROLL business unit and a gain of CHF 481 thousand from the sale of minority interests in Repower Moesano SA (Other segments and activities).

5Earnings from associates and joint ventures

6Energy procurement

Energy procurement consists on a net basis of CHF 1,233 thousand in income from a change in the provision for long-term contracts (prior year CHF 1,399 thousand); of this amount, income of CHF 153 thousand (prior year CHF 509 thousand) falls to the Market Switzerland segment and expense of CHF 1,386 thousand (prior year income of CHF 890 thousand) falls to the Market Italy segment (see Note 28).

7Concession fees

The decline in concession fees relates in particular to the Market Switzerland segment. A year-on-year decline in precipitation resulted in lower volumes of power generated and thus to lower revenue. At the same time, there was a decrease in water rates / hydro plant taxes. The decline in other concession-related charges relates primarily to expenses for free energy, the price of which is agreed with the municipalities.

8Personnel expenses

9Materials and third-party services

Materials and third party services contain expenses for maintaining and operating technical assets, external services for operational processes and the performance of services by third parties.

On behalf of Terna, connection systems are being produced for the photovoltaic systems of subsidiary Resol Ghislarengo S.r.l.; on completion these systems are transferred to Terna S.p.A. at the manufacturing costs incurred. In the 2025 financial year, costs of materials of CHF 6,031 thousand were incurred in this connection (previous year CHF 10,809). The expenses are allocated to the Market Italy segment and were recognised in the same amount in changes in inventory of sales orders (see Note 3).

10Other operating expenses

The decline in expenses for marketing & communications and bad debts relates in particular to the Market Italy segment. Communications expenses were lower than in the previous year, as fewer TV and social media advertising campaigns were carried out in the reporting year.

The prior year’s other operating expenses included expenses from the recognition of provisions amounting to CHF 7,880 thousand in the Market Switzerland segment. This includes, in particular, a provision of CHF 4,000 thousand for onerous contracts in connection with the obligation to restore Silvaplana power plant to operational readiness, which was used in 2025.

11Depreciation and value adjustments of tangible assets

Depreciation and value adjustments of tangible assets include impairment losses of CHF 12,343 thousand (prior year CHF 2,332 thousand) in the Market Switzerland segment and CHF 2,834 thousand (prior year CHF 0 thousand) in the Market Italy segment (see Note 15).

12Amortisation and value adjustments of intangible assets

No impairment losses on intangible assets were recognised in the year under review (previous year: none).

13Net financial income

The repayment of the bond with a nominal amount of CHF 150,000 thousand at the end of 2024 and the EUR 25,000 thousand green bond at the beginning of 2025, combined with the lower level of interest rates, led to a decline in interest income and interest expenses.

Currency translation in the amount of CHF –2,312 thousand (prior year CHF 6,358 thousand) stems primarily from Repower AG. A large proportion of this company’s assets and liabilities are denominated in euros, the main currency of the energy business. Exchange rate fluctuations between the euro and the Swiss franc can lead to currency gains or losses between the time these positions arise and the time they mature. Gains and losses from forward exchange transactions, which are recognised as changes in value of securities held for trading, had a compensating effect the previous year.

14Income taxes

The reconciliation between the actual tax burden and the expected tax burden for the financial years ending on 31 December 2025 and 2024 is as follows:

The tax losses and interest carryforwards that have not yet been offset, as well as the deferred taxes capitalised and not capitalised on them, for the financial years ending 31 December 2025 and 2024, are as follows:

The capitalised deferred taxes on loss and interest carryforwards are included in the deferred tax assets and liabilities stated in Note 19.

Global minimum taxation

The OECD rules on global minimum taxation stipulate a minimum tax rate of 15 per cent in each country. In Switzerland, the Ordinance on Minimum Taxation of Large Corporate Groups has been in force since 1 January 2024. In Italy and Germany, corresponding laws have also been in force since 1 January 2024.

The Repower Group continues to assess the potential impact based on current tax returns, country-specific reporting and the financial statements of the group companies. No material effect on income taxes is expected for 2025.

15Tangible assets

Land and buildings connected with power generation and grid facilities are stated under generation and grid assets.

The stated grants / contributions received are essentially contributions received in connection with the total modernisation of the Campocologno (CHF 3,200 thousand), Ferrera (CHF 940 thousand) and Silvaplana (CHF 870 thousand) plants and others (CHF 645 thousand) (prior year CHF 10,755 thousand, essentially for the total modernisation of Robbia power plant).

The additions from changes in consolidation in the amount of CHF 22,709 thousand relate to the tangible assets of Resol Ciminna S.r.l. Repower acquired all the remaining shares. Resol Ciminna S.r.l., which was previously recognised as a joint venture at equity, is fully included in the consolidated financial statements.

The additions from asset acquisition in the 2025 financial year comprise CHF 1,562 thousand for the agrivoltaic project of acquisition ESE Rizzuto S.r.l. and CHF 325 thousand for the hydropower project of acquisition B. Energie Castello di Annone S.r.l. Total additions come to CHF 1,887 thousand (prior year CHF 4,277 thousand for the Tre Rinnovabili S.r.l. power generation project).

The balance of pledged tangible assets relates exclusively to the Market Italy segment, in particular the Renewable business.

Impairment of tangible assets

Impairments were recognised in the Market Switzerland segment in 2025 and 2024, and in 2025 there were also impairments in the Market Italy segment. The main items are explained in the notes.

Market Switzerland segment

Taschinas power plant benefits from guaranteed electricity prices until 2036, but from 2037 will be subject to market price volatility. Owing to lower price forecasts, the earnings prospects were revised downwards, which led to an impairment of CHF 3,876 thousand (previous year CHF 1,659 thousand).

The impairment test as of 31 December 2025 showed that the carrying amount of Silvaplana power plant exceeded its recoverable value. Accordingly, an impairment loss of CHF 4,560 thousand was recognised in profit or loss and the carrying amount was reduced.

Owing to lower price forecasts, the earnings prospects for Ferrera power plant were revised downwards, which led to an impairment of CHF 848 thousand (previous year CHF 0 thousand).

The guaranteed electricity prices for wind power installations in Germany will gradually expire in the coming years, meaning that power generation will increasingly be subject to market price fluctuations. Owing to lower price forecasts, the earnings prospects were revised downwards, which led to an impairment of CHF 3,059 thousand (previous year CHF 0 thousand).

Market Italy segment

As of 31 December 2025, an impairment loss of CHF 2,834 thousand was recognised for Teverola combined cycle gas turbine plant. This was triggered by a decline in the clean spark spread in conjunction with lower revenue from the capacity market in Italy.

Leased power plants

The net carrying amount of the generation assets held as part of the finance leasing agreement, which are recognised in power plants, totalled CHF 7,267 thousand (prior year: CHF 7,999 thousand) at the closing date.

Total lease liabilities come to CHF 3,169 thousand (prior year: CHF 4,004 thousand).

16Intangible assets

The balances of CHF 37 thousand and CHF 249 thousand recognised under additions from changes in consolidation result, respectively, from the acquisition of renewable community società benefit S.r.l. and the full acquisition of Resol Ciminna S.r.l. The latter was previously recognised as a joint venture at equity and is now fully included in the consolidated financial statements.

The prior year, the goodwill recognised as additions from changes in consolidation resulted from the acquisition of additional shares in Erreci S.r.l., Erreci Impianti S.r.l. (CHF 15,394 thousand) and Kraftwerk Morteratsch AG (CHF 1,416 thousand), previously carried at equity, through which these entities became subsidiaries. In addition, the full acquisition of the minority interests in Repower Renewable S.p.A. was taken into account (CHF 16,046 thousand).

17Investments in associates and joint ventures

In 2025, Repower acquired the remaining 50 per cent of Resol Ciminna S.r.l., thereby gaining full control. The disposals of consolidated companies amounting to CHF 13,074 thousand relate to this company, which had previously been recognised at equity.

The prior year, the disposal from changes in consolidation in the amount of CHF 5,677 thousand was the result of the increase in the interests in Erreci S.r.l. and Erreci Impianti S.r.l. to 70 per cent and the increase in the interest in KW Morteratsch SA to 100 per cent, which gave Repower control of these companies.

The additions of CHF 11,750 thousand in 2025 relates to the increase in the interest in Energiefinanzierungs AG (ENAG) from 5.477 per cent to 22.25 per cent.

The additions of CHF 4,400 thousand the prior year relates to the establishment of Madrisa Solar AG, which Repower recognises as an associate.

18Non-current financial assets

Repower holds interests of 7.0 per cent and 6.5 per cent respectively in the partner plants AKEB Aktiengesellschaft für Kernenergie-Beteiligungen, Lucerne, and Kraftwerke Hinterrhein AG, Thusis.

Other participations include further interests in entities that do not belong to Repower Group’s scope of consolidation. The interests carried at equity are a component of investments in associates and joint ventures (see Note 17).

The balances in the loans receivable line relate to loans to associates and joint ventures amounting to CHF 2,938 thousand (prior year CHF 1,652 thousand). Accumulated impairments of CHF 2,252 thousand (prior year CHF 2,252 thousand) were recognised under this item (see Note 17).

19Deferred income tax assets and liabilities

The tax rates used to calculate deferred income tax items are 14.8 per cent for Switzerland, 28.0 per cent for Italy, and (owing to the gradual reduction in corporate tax from 15 per cent now to 10 per cent in 2032) 25.0 per cent for Germany.

Given that offsetting loss carryforwards against future earnings and offsetting interest carryforwards against future earnings for tax purposes involves uncertainty, deferred taxes on offsettable loss and interest carryforwards are partially not capitalised (see Note 14).

The addition from asset acquisition contains deferred tax liabilities from the acquisition of power generation projects (see Note 15).

20Other non-current receivables

Other non current receivables relate to expected investment grants for the construction or expansion of power generation assets.

21Inventories

In the 2025 financial year, CHF 9 thousand in impairments on inventories was recognised as costs of materials (prior year CHF 167 thousand).

22Trade accounts receivable

The majority of the decrease in trade accounts receivable (gross) is attributable to the Market Italy segment, with a smaller portion attributable to the Market Switzerland segment. Within the Market Italy segment, the decrease is primarily attributable to the sales business.

The stated trade accounts receivable also include claims on associates and joint ventures amounting to CHF 1,413 thousand (prior year CHF 64 thousand).

Trade accounts receivable are measured by applying individual and lump-sum adjustments to the non-impaired positions based on their maturity structure and historical experience.

23Other current receivables

The security deposits paid item contains security deposits paid by Repower, in particular in connection with its regular trading activities. These deposits, which result from both on-exchange and OTC transactions, are designed to hedge trading risks and assure the fulfilment of contractual obligations.

Other receivables include receivables from the Swiss Federal Office of Energy (investment grants to promote hydropower) and from the Swiss Federal Office for the Environment (financing of ecological remediation measures) amounting to CHF 4,991 thousand (prior year CHF 0 thousand).

24Prepaid expenses and accrued income

The differences comprise costs for the electricity grid permitted by the regulator that have not yet been charged and are set in the tariff for the following year.

25Current financial assets

26Replacement values of held-for-trading positions

The replacement values of held-for-trading positions, which include forwards concluded to achieve trading income or margins in the energy trading business, fell by CHF 59,421 thousand, predominantly affecting the Market Switzerland segment (see Note 35).

27Cash and cash equivalents

On the balance sheet date, Repower also had the following unused credit lines:

The decrease in unused general credit lines is attributable to deliberate, cost-optimising adjustments in the light of the current low financing requirements.

28Provisions

Provisions for onerous contracts

Provisions for onerous contracts came to CHF 6,313 thousand on the balance sheet date (prior year CHF 10,616 thousand). Of this amount, CHF 4,736 thousand (prior year CHF 2,736 thousand) relates to onerous contracts for transport capacity in the Market Italy segment and CHF 1,577 thousand (prior year CHF 2,380 thousand) to temporary support services in connection with electricity procurement by municipalities in the Market Switzerland segment.

In the Market Switzerland segment, the provision of CHF 4,000 thousand recognised the previous year for the contractual obligation to restore Silvaplana power plant to operational readiness was used in full in the 2025 financial year.

Also in the Market Switzerland segment, the provision for onerous e-mobility legacy contracts in the amount of CHF 1,500 thousand was fully utilised and reversed in the reporting year.

Severance pay

When an employment relationship is terminated in Italy, the employee is entitled to severance pay corresponding to almost one month’s pay for each year of employment (see Note 34).

Dismantling provisions

The dismantling provisions category contains various provisions for the dismantling of operating installations.

In 2025, CHF 2,600 thousand was recognised in the Market Switzerland segment for the expected costs of dismantling a pressure line. The estimate is based on the assessment of a probable cash outflow as a result of the project being abandoned.

Other provisions

During the financial year, various minor provisions amounting to CHF 1,252 thousand were recognised in the Market Italy segment. In addition, a provision of CHF 750 thousand was recognised in other segments and activities for environmental contamination in connection with the sale of the former Repower industrial site in Ilanz.

29Current and non-current financial liabilities

Negative amounts presented in the table are scheduled allocations of net expenditures.

30Other non-current liabilities

Connection fees and grid cost contributions consist of accrued connection fees and grid cost contributions received from customers, which are charged to profit or loss over a period of 35 years via net sales from goods and services in the Market Switzerland segment.

Advance payments on energy deliveries are recognised every year as income of CHF 745 thousand in the profit and loss item net sales from goods and services in the Market Switzerland segment. Minor divergences from the change recognised in the balance sheet result from rounding effects.

Other non-current liabilities include, among other things, negative goodwill of CHF 6,058 thousand (prior year CHF 0 thousand) from the acquisition of the remaining 50 per cent in Resol Ciminna S.r.l. The negative goodwill will be amortised over a useful life of five years (see Note 4).

31Trade accounts payable

The decline in trade accounts payable relates mainly to the Market Italy segment. The stated trade accounts payable also include liabilities vis-à-vis associates and joint ventures amounting to CHF 440 thousand (prior year: CHF 1,167 thousand)

32Other current liabilities

Excise taxes include in particular invoiced excise tax liabilities of the Market Italy segment’s sales business in the amount of CHF 5,517 thousand (previous year CHF 8,822 thousand).

The customer prepayments item includes advance payments of CHF 2,681 thousand (previous year CHF 9,099 thousand) for future deliveries of inventories. These relate to the installation of photovoltaic systems in the Market Italy segment in connection with the business of Erreci S.r.l., included since 2024.

Owing to less good results from companies in the Market Switzerland segment there was a year-on-year decline in current income tax liabilities.

33Deferred income and accrued expenses

34Pension schemes

Economic benefit/economic liability and pension benefit expenses

The pension plans with overfunding relate to Repower’s employees in Switzerland, who are covered by the joint pension scheme of the PKE Vorsorgestiftung Energie foundation. On 31 December 2025 the coverage ratio was 120.8%.

The item Pension institutions with unfunded obligations relate to the obligation to pay severance pay in Italy (see Note 28). The change in the stated provision related to pension benefit expenses in the income statement comes to CHF 720 thousand at the average exchange rate.

35Derivative financial instruments

The line “netting” refers to the netting of energy derivatives transactions entered into with the same counterparty and with whom there are enforceable netting agreements.

Cash flow hedges used as hedging transactions are not recognised on the balance sheet and therefore do not yet impact the balance sheet. Off-balance-sheet energy and interest derivatives are used to hedge future cash flows with a high probability of occurrence.

36Transactions with related parties

The balances and liabilities reported on the balance sheet and the transactions contained in the income statement vis-à-vis related parties are related to business with the main shareholders and Repower AG entities, associates, partner works and joint ventures controlled by them.

The following balance sheet and profit and loss items contain the following amounts vis-à-vis related third parties:

Transactions are at market prices, or in the case of Grischelectra AG at annual costs.

Canton Graubünden’s energy business is transacted via Grischelectra AG, which is included as a related party in the table above. Canton Graubünden is deemed to be a related party in its capacity as a shareholder. Official business such as levying taxes, concession-related charges, fees, etc., is done on a statutory basis and is therefore not included here.

Compensation paid to members of the board of directors and executive board is disclosed in the Corporate Governance section.

37Segment reporting

Segment reporting is done by geographic market and reflects internal management and reporting structures. The information provided is that used by management for steering and assessing the business performance and development of the individual segments. For each business segment, internal steering, performance measurement and capital allocation are carried out on the basis of the segment’s income before interest and income taxes (EBIT). Segment income is calculated on the basis of the accounting and valuation principles used at group level.

38Treasury shares

Purchases / disposals of treasury shares relate to Repower AG registered shares. In the year under review, Repower AG bought 875 shares (prior year 1,321) at CHF 151.69 (prior year CHF 164.30) and sold 634 shares (prior year 1,057) at an average price of CHF 156.65 (prior year CHF 167.15).

39Off-balance-sheet liabilities

In the course of regular business, group companies and commercial banks granted guarantees, bank guarantees and sureties in favour of third parties. These came to CHF 274,097 thousand (prior year: CHF 226,873 thousand).

There is a binding service agreement for the Teverola power plant that runs until 2038. As of 31 December 2025, the payments in this connection came to CHF 17,629 thousand (prior year CHF 19,143 thousand). Furthermore, on the balance sheet date there were various long-term full maintenance contracts for hydro, solar and wind power plants in Germany and Italy amounting to CHF 12,690 thousand (prior year CHF 14,239 thousand).

At the reporting date of the financial year under review, the outstanding minimum lease payments consisted of CHF 9,163 thousand for property and buildings (prior year: CHF 9,141 thousand).

The procurement contracts are primarily electricity supply agreements.

Obligations to take delivery of electrical energy on the basis of the interests in AKEB Aktiengesellschaft für Kernenergie, Lucerne, Kraftwerke Hinterrhein AG, Thusis, and Grischelectra AG are not included in the above table. The volume and price of electricity delivered depend on actual future production and costs incurred by these companies.

Pledges are recognised under the relevant assets.

40Events occurring after the balance sheet date

Since 31 December 2025 there have been no other events which require disclosure.

The financial statements were approved for publication by the board of directors on 1 April 2026. They are subject to the approval of the annual general meeting, which will take place on 13 May 2026.