LETTER TO SHAREHOLDERS

The first half of 2025 was marked by continuity and personnel changes at Repower. Reflecting our clear commitment to Graubünden hydropower, we continued to invest extensively in generation and grid assets. At the same time, the first six months saw significant personnel changes in the Repower AG Board of Directors, with Daniel Bucher, Gian Andri Diem and Phyllis Scholl joining as new members. The annual general meeting elected me as chair to succeed Monika Krüsi, who led Repower for many years with great success. With this change, the anchor shareholders want to strengthen the Graubünden influence at the helm of the canton’s largest energy company.

What are the concrete implications? As the former finance director of the canton of Graubünden, I have known Repower for a long time – not only as a company, but also as an institution that makes a key contribution to cantonal energy policy and security of supply. We have many opportunities ahead of us, but also challenging tasks. For Repower to remain successful it will require strategic foresight, economic strength, social responsibility and sustainable action. A key priority will be to strengthen our position with regard to the implementation of the cantonal hydropower and reversion strategy.

Before we look ahead, it’s worth taking a brief look back: Repower started the year with results that exceeded expectations. Operating earnings before interest and taxes (EBIT) amounted to CHF 65 million and group profit came to CHF 47 million. As expected, the extraordinary results of the two previous years, which saw record-high prices on the energy markets, were not matched. The company has a strong equity ratio of 59 per cent and a high level of liquid assets. This puts Repower in a very solid financial position and means it is ideally placed to invest strategically in the maintenance and expansion of its generation assets and distribution grid.

Repower is pressing ahead with the expansion of renewable energy in Graubünden. In the first half of the year we ploughed CHF 11 million into generation facilities and another CHF 17 million into the distribution grid. The renovations of the Papierfabrik (paper factory), Campocologno and Klosters power plants were successfully completed. Work began on renovating Silvaplana power plant. Madrisa, near Klosters, saw the groundbreaking ceremony for an alpine solar plant – a pioneering project that will send a strong signal for urgently needed winter power. And Repower reached a milestone with the granting of concession approval for the Chlus power plant. This brings us a step closer to an important project that will strengthen Graubünden’s hydropower capacity.

Repower is supporting the expansion of photovoltaic generation in Graubünden with the efficient integration of private solar installations. In the first half of 2025, we reached the milestone of 3,000 installations connected to the distribution grid. In total, private solar installations now have an installed capacity of over 65 megawatts – more than Repower’s largest hydropower plant. With the growing number of private photovoltaic systems, the increasing prevalence of electric vehicles and the more frequent use of heat pumps, the need for investment in distribution networks is also growing significantly. This trend will continue to intensify in the years to come.

The volume of electricity generated by our own hydropower plants in the first half of 2025 was below the long-term average. This was due to lower precipitation levels. There was little snowfall in the winter months, resulting in correspondingly low snowmelt. Precipitation in the spring and early summer was also below the long-term average in some regions.

In Italy, the volume of electricity generated at solar and wind power plants remained virtually unchanged compared with the previous year. The outlook for Teverola gas-fired combined-cycle plant also remains the same. Demand for balancing energy from the facility to stabilise the Italian electricity grid remains very low.

The largest contribution to earnings once again came from the international trading business. As expected, the trading result for the first half of the year was lower than in the previous year but significantly above the long-term average – despite challenging market conditions and low hydrological inflows. Despite a market environment fraught with geopolitical tensions, electricity prices on the forward markets remained largely stable. At the same time, however, short-term volatility increased, driven by current news and the growing share of automated trading.

The sales business in Italy, where Repower primarily supplies SMEs with electricity and gas, developed positively. Italy’s contribution to earnings therefore increased slightly compared with the previous year. Overall, Repower invested CHF 21 million in renewable assets in Italy, including almost CHF 12 million in the construction of a 20 MW solar installation in Ghislarengo (Piedmont) and around CHF 7 million in an agrivoltaic project in Ciminna (Sicily).

Outlook

Experience shows that Repower generally posts stronger results in the first half of the year than in the second six months. The early hedging of electricity production during the market turmoil in 2023 continued to have a positive impact in the first half of 2025. Repower also expects good results for the second half of the year.

Thank you

A successful business performance is always the result of joint efforts. We would therefore like to express our special thanks to all our employees who have contributed to this success with their expertise, commitment and reliability. We would also like to thank our customers, suppliers, partners and shareholders for the trust they have placed in us, their loyalty and constructive cooperation. Your contribution is essential to ensuring that Repower can continue to play an active role in the future of energy.

Barbara Janom Steiner

Chair of the board of directors

Roland Leuenberger

CEO