Notes to the financial statements: notes

1Net sales from goods and services

Energy derivatives held for trading are recognised at fair value (see Note 10) Changes in value and realised gains and losses are recognised directly as net revenue. Energy derivatives used for hedging purposes or for proprietary trading remain off-balance-sheet and are only recognised in the income statement upon delivery.

2Own costs capitalised

As in the prior year, own costs capitalised result mainly from services in connection with investments in Repower’s electricity grid, as well as the complete refurbishment of Silvaplana power plant and the modernisation of the Miralago water intake.

3Other operating income

Other operating revenue includes in particular revenues from services in favour of third parties as well as recharges to investments for IT services and power plant maintenance.

The profits from the disposal of tangible assets in the year under review essentially result from the disposal of non-operational properties.

Other income includes a gain on the sale of activities of the PLUG’N ROLL business unit.

4Energy procurement

Energy procurement consists on a net basis of the reversal of CHF 153 thousand (prior year CHF 509 thousand) in provisions related to long-term contracts.

5Concession fees

Owing to lower electricity generation, fewer water rates and hydropower plant taxes were incurred.

The decline in other concession-related charges relates essentially to expenses for free energy, the price of which is agreed with the municipalities.

6Other operating expenses

The prior year’s other operating expenses include the recognition of provisions amounting to CHF 5,500 thousand. 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.

7Depreciation / amortisation and impairment

The impairments of tangible assets relate primarily to the Taschinas and Silvaplana power plants. In the previous year, this item included the impairment of Taschinas power plant and PLUG’N ROLL’s AC solutions business.

Investement in Repower Deutschland GmbH was written down by CHF 119 thousand (prior year CHF 1,805 thousand) owing to the lower exchange rate.

8Net financial result

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.

Dividend income consists primarily of the dividend of Repower Italia S.p.A.

A large proportion of 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 currency derivatives in financial income and expenses, had a compensating effect the previous year.

9Cash and cash equivalents

10Replacement values of held-for-trading positions

There was a decline in the replacement values of the held-for-trading positions, which include forwards concluded in energy trading to generate trading income or margin.

11Trade accounts receivable

The stated trade accounts receivable essentially consist of balances from trading and retail business.

Investments consist for the most part of balances from ongoing business with associates.

Trade accounts receivable are measured by applying individual and lump-sum adjustments. Positions not impaired individually are impaired on the basis of the lump sums accepted for tax purposes.

12Other receivables

The item Third parties includes receivables from security deposits paid, which mainly relate to initial margins, in the amount of CHF 20,207 thousand (previous year CHF 13,547 thousand), as well as withholding tax balances in the amount of CHF 4,493 thousand (previous year CHF 3,518 thousand).

In the year under review, this item includes 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).

In the 2025 financial year, investments include a receivable of Drita CHF 919 thousand (previous year CHF 0 thousand) from an advance payment made to associates.

13Inventories

Inventories of materials contain CHF 4,213 thousand (previous year CHF 3,629 thousand) in impairments.

14Prepaid expenses and accrued income

The total for the year under review contains prepaid expenses and accrued income of CHF 86,252 thousand (prior year CHF 130,440 thousand) for energy bills from trading not yet invoiced.

15Long term financial assets

The prior year, other participations included the interest in Energiefinanzierungs AG (ENAG). Owing to the increased interest, ENAG will in future be recognised as an associate (see Note 17).

Loans to participations now include the loans to Repower Renewable S.p.A. (CHF +19.2 million) and Repower Moesano SA (CHF +2.5 million).

16Other non-current receivables

The other non-current receivables of CHF 7,420 thousand relate to investment grants for Robbia power plant, which went back into operation in 2024 after a comprehensive modernisation. The final investment grant will be determined by the Swiss Federal Office of Energy (SFOE) after notification of the net amount of energy generated at the end of the fifth full year of operation in 2030. The final investment grant depends in particular on the net amount of energy generated annually.

17Shareholdings

On 7 January 2025, Repower AG increased its interest in Energiefinanzierungs AG (ENAG) from 5.48 per cent to 22.25 per cent. The interest now comes to CHF 11,600 thousand (see Note 15).

18Tangible assets

The item Grids mainly comprises asset additions in connection with investments in Repower’s electricity grid.

The additions to assets under construction are primarily the result of services in connection with investments in the grids and the modernisation of the Miralago water intake.

19Intangible assets

20Trade accounts payable

Trade accounts payable primarily consist of liabilities from the energy business, procurements for operating activities, and investments.

21Current interest-bearing liabilities

The green bond was repaid on maturity at the beginning of 2025.

Owing to its maturity, the bank loan is reported under current interest-bearing liabilities (see Note 25).

22Other current liabilities

In both the year under review and the prior year, the item Third parties consists in particular of liabilities from variation margins received and VAT.

23Deferred income and accrued expenses

The total for the year under review contains deferred income and accrued expenses of CHF 51,681 thousand (prior year CHF 76,021 thousand) for energy bills from trading not yet invoiced.

24Provisions

Provisions for onerous contracts

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 (see Note 6).

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 (see Note 6).

Other risks

In 2025, CHF 2,600 thousand was recognised 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.

In connection with the sale of the former Repower industrial site in Ilanz, a provision for environmental contamination amounting to CHF 750 thousand was recognised.

25Non-current interest-bearing liabilities

On the basis of its maturity compared with the prior year, the bank loan due in 2026 is recognised under current interest-bearing liabilities (see Note 21).

26Other non-current liabilities

27Equity

Share capital

Significant shareholders (share of capital and voting rights, percentages rounded):

Treasury stock

In the year under review, Repower AG bought 875 shares at an average price of CHF 151.69 and sold 634 shares at an average price of CHF 156.65.

In the prior year, Repower AG bought 1,321 shares at an average price of CHF 164.30 and sold 1,057 shares at an average price of CHF 167.15.