RepOwer AT A GLANCE REPOWER POWERED BY A CLEAR STRATEGY. Repower is an international energy company headquartered in 2014 FINANCIAL HIGHLIGHTS CHF m EUR m* Poschiavo (Canton Graubünden, Switzerland). The group traces its Total operating revenue 2,273 1,871 roots back more than 100 years. It operates along the entire Earnings before interest and taxes (EBIT) 26 21 electricity value chain, from generation and trading to distribution EBIT before exceptional items 39 32 and sales. In Italy it is also involved in the gas business. Repower also has a New Tech unit charged with developing innovative Group profit -33 -27 solutions facilitating the smart integration of energy systems. Group profit before exceptional items -22 -18 Balance sheet total 2,104 1,750 Repower’s key markets are Switzerland, Italy and Romania. It has Equity 766 637 offices and subsidiaries in Switzerland (Poschiavo, Küblis, Ilanz, Equity ratio 36 % Bever, Landquart, Zurich), Italy (Milan), Romania (Bucharest) and * The figures in euros are approximations. The figures in Swiss francs (CHF) are binding. Closing rate the Czech Republic (Prague). on 31 December 2014 for balance sheet total and equity: EUR 1.20240; average 2014 exchange rate for other amounts: EUR 1.21456. Repower AG bearer shares and participation certificates are listed on the SIX Swiss Exchange. ENERGY BALANCE SHEET 2014 2013 Change Electricity business in GWh Trading 11,153 10,751 + 4 % Supply/sales 5,945 5,908 + 1 % OWNERSHIP STRUCTURE Pumps, own use, losses 325 353 - 8 % Electricity sales 17,423 17,012 + 2 % Trading 14,770 14,698 0 % 8 % Own generation 1,471 1,371 + 7 % Energy from participations 1,182 943 + 25 % 33.7 % Electricity procurement 17,423 17,012 + 2 % Gas business in 1,000 m3 Sales to end customers 222,580 208,624 + 7 % 58.3 % Trading (sales) 1,898,881 1,291,990 + 47 % Gas sales 2,121,461 1,500,614 + 41 % Consumption of Teverola power plant (Italy) 119,312 106,483 + 12 % Canton Graubünden Axpo Trading (electricity sold) Free float Trading (electricity procured) 17 TWh approx. Sales Own generation and energy from participations PEOPLE DRIVEN BY DEDICATION. HEADCOUNT 2014 Repower employs around 690 people. Added to this are more than Switzerland 456 500 sales consultants in Italy. In Switzerland, Repower offers 30 Italy 163 young people basic vocational training. The group is recognised as Germany 19 an attractive employer providing opportunities in dozens of Romania 28 different trades, professions and functions. Czech Republic 25 Total 691 People at Repower are guided by a set of core values: building trust, taking personal initiative and producing effect. Apprentices 30 Sales consultants in Italy 513 GENERATION FUELLED BY A SMART ENERGY MIX. Repower has generation assets of its own in Switzerland, Italy and Germany producing electricity on the basis Kernenergie* of different technologies. Windkraft* HYDRO CAPACITY GENERATION REPOWER’S INTEREST Own plants MW 1 GWh 1 2 % Gaskraft* CH Küblis 45.6 183 100 CH Schlappin 7.0 29 100 CH Klosters 16.5 24 100 Wasserkraft* CH Taschinas 11.5 40 100 CH Papierfabrik Landqart 1.3 6 100 CH Madulain 1.4 6 100 CH Silvaplana 1.5 4 100 CH Morteratsch 0.5 4 100 CH Palü 10.0 14 100 CH Cavaglia 7.0 20 100 * 2014 figures CH Robbia 27.0 107 100 CH Campocologno I 45.0 199 100 61 % hydro* 4 % wind* CH Campocologno II 1.5 5 100 22 % gas* 13 % nuclear* CH Lunschania 0.9 2 100 CH Trun 0.7 4 100 CH Ladral 5.5 13 100 PROJECTS Subtotal 182.9 660 One of the objectives under the Swiss Interests and drawing rights Federal government’s Energy Strategy CH Ferrera 4.0 17 49 2050 is to increase the generation of CH Frisal 2.3 10 10 CH Hinterrhein 41.0 93 6.5 hydroelectricity in Switzerland in the CH Grischelectra 214.0 580 3 long term. Repower has two projects Subtotal 261.3 700 that fit perfectly into this strategy: Total hydro 444.2 1,360 Chlus (a 62 MW hydropower installa- tion in the Prättigau/Graubünden COMBINED CYCLE GAS TURBINE Rhine Valley area) and Lagobianco (a Interest 1050 MW pumped-storage plant in IT Teverola 244.0 750 61 the upper Poschiavo valley, including Total gas 244.0 750 the refurbishment and continued operation of existing generation WinD facilities). Nevertheless, the current Own plants economic environment makes it IT Corleto Perticara 9.3 12 100 impossible to go ahead with delivering IT Lucera 26.0 52 100 DE Prettin 10.0 17 100 these projects at present. Repower will DE Lübbenau 16.0 35 100 keep them in the pipeline to be able to Interest proceed with construction as soon as IT Giunchetto 11.6 20 39 the market situation allows. Total wind 72.9 136 PUREPOWER AND SOLARPOWER NucLEar Repower works with more than 100 Interests privately and publicly owned gener- CH Gösgen 12.0 80 4 ation facilities (mains water tur-bines, 4 CH Leibstadt 2.0 14 biomass and photovoltaic) to produce FR Bugey 2 + 3 22.0 160 4 FR Cattenom 3 + 4 12.0 91 4 its two green power products, Purepo- Total nuclear 48.0 345 wer and Solarpower. REPARTNER proDuction PHOTOVOLTAIC (SOLAR) Own plants INVESTMENT COMPANY CH Ludains, St. Moritz 0.02 0.02 100 Repartner Produktions AG is a vehicle CH Piz Nair/lower terminus, St. Moritz 0.01 0.01 100 created by Repower offering Swiss CH Repower building, Bever 0.03 0.03 100 energy utilities an opportunity to CH Itu Landa Sol, Ilanz 0.02 0.02 100 CH Youth club, Samedan 0.03 0.03 100 participate in a diversified portfolio of CH Works yard Landquart 0.03 0.03 100 electricity generation assets in Interest Switzerland and abroad. The portfolio CH Desert da Sol, Disentis 0.04 0.04 25 is being built up step by step. In return Total photovoltaic 0.18 0.18 for their investment, shareholders in the company receive purchase rights Total Repower generation 809 2,591 to electricity from the facilities in the portfolio. Besides Repower, eight 1 In the case of interests, the figure refers to Repower’s share plus any additional exploitation rights. partners, predominantly municipal 2 Long-term average generation 3 Markets electricity destined for Canton Graubünden and various concession municipalities in the Canton utilities, are invested in Repartner Graubünden. Produktions AG. 4 From nuclear holding companies TRADING POOLING RESOURCES AND EXPERTISE. Energy trading is the hub connecting the company’s generation Repower trades in electricity, gas, coal, carbon certificates and and sales operations with the market. Repower Trading operates guarantees of origin. The Market Access team ensures permanent on the most important European energy exchanges from three presence, serving as the main interface to partners and customers. offices in Poschiavo, Milan and Prague. The business focuses on Repower’s traders can draw on in-depth input from the Market asset-based trading, designed to optimise management of the Intelligence team (market data management, analysis and company’s own portfolio. The company also offers its trading research, and tool development). And a streamlined, professional services to other energy providers. back office takes care of administrative duties and regulatory management. TRADING MARKETS IN EUROPE 5 Energy exchanges Electricity sales 2014, trading: 1. EPEX SPOT Paris (own use only) 2. EEX Leipzig 11 TWh approx. 3. EXAA Vienna Electricity sales 2014, sales: 4. Powernext Paris 6 TWh approx. 5. Nord Pool Oslo 6. GME Rome Gas sales 2014, trading: 7. PXE Prague 2 (own use only) 8. OTE Prague 2 billion m3 approx. Repower Trading (Prague) 9. OKTE Bratislava 7/8 1/4 10. Opcom Bucharest Gas sales 2014, sales: 3 9 3 11 11. HUPX Budapest 0.2 billion m approx. Repower Trading (Poschiavo) Repower Trading (Milan) 10 6 DISTRIBUTION MOVING ENERGY ACROSS BORDERS. In 2005, Repower built the 380 kV cross-border Bernina line, ownership 1 Klosters 2 Ilanz of which was transferred to the national grid operator Swissgrid in 3 Bever 4 Poschiavo 2013. In 2009 a 150 kV merchant line was commissioned between Tirano (Italy) and Campocologno (Switzerland) to increase transport volumes and security of supply even further. A new merchant line AustrIA between Val Bregaglia (Bergell, Switzerland) and Italy is 1 currently being planned. Assuring a secure and reliable supply of electricity to customers means having high-capacity 2 pan-regional and regional distribution Graubünden grids. Repower owns, maintains and builds power lines with voltages ranging between 0.4 and 150 kV in the Prättigau/Rhine Valley/Davos, Engadine/ 3 Poschiavo, Surselva and Oberhalbstein areas of Canton Graubünden. The company also owns and operates the relevant substations and switching stations. ItaLY 380 kV Repower lines 4 220 kV Repower supply area 50-60 kV Downstream grid operator 24 substations 2,185 km of cable 150 kV merchant line Substation 691 transformer stations 2,500 km of power line routes 110 kV/130 kV/150 kV Substation with feed-in point 1,380 kiosks 552 km of overhead lines NEW TECH MAKING THE FUTURE HAPPEN. Intelligent system integration, the ability to incorporate different sources of electricity, and promoting technological innovation are all rapidly gaining in importance in a radically changing energy landscape. To assure the company access to new and profitable areas of business in the future, Repower has started to build its own New Tech unit. The idea is to harness know-how from the countries and areas of expertise in which Repower itself operates, as well as fostering strategic partnerships with other companies and start-ups. A good example of innovative technology is the Privapower tariff.