LETTER TO SHAREHOLDERS

Repower is successfully positioned in Switzerland and Italy with independent business units. This broad base contributes to the group’s stability. Our roots are in Graubünden. This is where our headquarters and trading unit are located; it’s also where we operate the majority of our facilities and where a significant proportion of our value is created. A value-added study conducted in the spring by Hanser Consulting AG on behalf of Repower showed that, compared with energy companies based outside the canton, the Repower Group generated additional economic value of CHF 144 million for Graubünden in the 2024 financial year alone.

With the upcoming reversion of water rights, Graubünden has an historic opportunity to strengthen and maintain the value creation derived from hydropower within the canton. As a reliable, canton-based partner with strong entrepreneurial capabilities, Repower intends to play an active role in shaping this development.

We are also well equipped at management level to achieve these long-term strategic objectives. In appointing Michael Roth to head Repower, the board of directors has chosen a manager with a very good knowledge of the company, the energy sector and the Graubünden energy industry. Assuming his role at the beginning of June, he brings the experience and clear focus needed to drive Repower forward successfully during this crucial phase. To succeed Michael Roth as head of the Power Generation & Grid division, we have recruited another experienced leader with proven expertise in hydropower, Hans-Peter Zehnder.

Against this backdrop we can look back on a good first six months of 2026. Operating earnings before interest and tax (EBIT) amounted to CHF 51 million and group profit came to CHF 34 million. With an equity ratio of 58 per cent, Repower continues to enjoy a solid financial basis, creating the conditions needed to move ahead with targeted strategic investments.

The results were affected by poor hydrological conditions in particular. The volume of electricity generated by Repower’s own hydropower plants in the first half of 2026 was significantly below the long-term average. Following a winter with little snow, the snowmelt was also low. Precipitation in the spring and early summer months also remained well below the long-term average.

The volumes of electricity generated from renewables in Italy were slightly below expectations but somewhat higher than the previous year. Owing to technical limitations, Teverola combined cycle gas turbine plant was only deployed sporadically.

The market environment for electricity trading remained challenging and volatile in the first half of 2026. Increasing adoption of solar power meant that the number of hours with negative electricity prices and pronounced price spikes continued to rise. This has made flexible generation capacity even more important. In this environment, Repower was able to successfully apply its trading and operational expertise. Higher market prices in Switzerland and France had a positive impact on the trading result, partially offsetting the negative effects of reduced electricity generation owing to poor hydrological conditions.

As expected, the results from international trading fell short of the exceptionally good results of previous years. Until 2025, these had benefited from electricity sales that Repower had secured on attractive terms for future delivery periods during the period of high prices at the start of the war in Ukraine in 2022 and 2023. These deliveries have now largely been completed and therefore no longer affect the results for the first half of 2026.

Repower is systematically driving forward the maintenance and expansion of its renewable capabilities. In the first half of the year, it invested a total of CHF 57 million. Work to modernise Silvaplana hydropower plant was completed successfully. Following the partial commissioning of the Madrisa Solar alpine photovoltaic power plant, the asset exceeded expectations in its first winter and generated more electricity than forecast.

Repower’s Chlus project also reached an important milestone with the submission of the application for project approval, laying the groundwork for the future construction of a hydropower facility of national importance and moving the project ahead according to plan.

In the first half of the year, Repower invested CHF 21 million in upgrading and modernising its distribution grid in Graubünden, which spans approximately 3,000 kilometres. This way, Repower is also supporting the expansion of photovoltaic generation in Graubünden with the efficient integration of private solar installations. The first half of 2026 already saw the connection of the 3,500^th installation to the distribution grid.

To promote more efficient use of its grid, from 2027 Repower will be introducing Optima, a new variable optional tariff for its basic supply electricity customers. From that point, Optima will create incentives for consumption patterns that benefit the grid and enable customers to systematically optimise their electricity costs.

The roll-out of smart meters in the supply area is proceeding according to plan. So far around two-thirds of electricity customers in the grid area have had a smart meter installed. Every newly installed smart meter enhances the foundation of data for efficient network operation and forward-looking grid planning.

The sales business in Italy, where Repower primarily supplies SMEs with electricity and gas, was slightly down on the previous year. Overall, however, Repower Italy is proving to be stable and resilient in a challenging and highly competitive market environment.

Repower continues to drive forward the expansion of renewable energy in Italy and is investing in various wind and solar projects. The largest project currently under way is an agrivoltaic installation in Ciminna, Sicily, covering an area equivalent to around 200 football pitches, which is nearing completion.

Outlook

Repower can look forward to the second half of 2026 with confidence. The company’s solid financial footing enables it to continue investing strategically in the modernisation and expansion of its generation facilities and grid infrastructure. Business results will be influenced by further developments in the energy markets and by the output of the company’s own power generation assets. The production of hydropower depends to a key extent on precipitation levels and water inflows, factors that Repower addresses through forward-looking management of its generation and trading positions. Repower continues to expect a solid result for the 2026 financial year as a whole.

Thank you

Business success does not happen by itself. It’s the result of expertise, commitment and reliable partnership. We would therefore like to extend our special thanks to our staff, whose daily efforts make a significant contribution to the development of Repower. We would also like to thank our customers, suppliers and partners for their trust and constructive cooperation. To you, our valued shareholders, we extend our thanks for your loyalty and support. You all play a part in ensuring that Repower can fulfil its responsibilities and continue to play an active role in shaping the future of energy.

Barbara Janom Steiner

Chair of the board of directors

Michael Roth

CEO