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Repower
First half of 2017 dominated by development of new offerings



Aug 30, 2017

The first six months of 2017 at Repower were dominated by endeavours to further develop and prepare for the market launch of innovative systems and services designed to boost energy efficiency and facilitate grid management. In the process Repower reached new milestones in the implementation of its corporate strategy. At CHF 905 million, Repower's total operating revenues were slightly up on the prior-year period. The group posted EBIT of CHF 20 million and a net profit of CHF 1 million.

Alongside its traditional generation, trading, transmission and supply business, in its two home markets Switzerland (which includes the origination business in Germany) and Italy, Repower is sharpening its profile as a provider of products and services. These new offerings are designed to help customers enhance their energy efficiency and prepare for the challenges to come.

Innovative tools

In this light Repower in Switzerland has developed its Smart Power solution. This has been tested with pilot customers and will be brought to market maturity in the next few months. In addition to being offered to Repower's own end customers, Smart Power will be made available as a modular package to energy utilities across the entire country. It's based on a new output-based tariff, a smart metering solution and the integration of customers, who are able to optimise their consumption patterns on an ongoing basis. Repower is also offering a tool called Asset Monitor enabling the efficient management of infrastructure assets, as well as Energy Space, a new trading portal that simplifies processes and increases transparency for large customers. In Italy Repower also provides a range of services in response to customer needs for greater energy efficiency: VAMPA detects faults in electrical equipment before they lead to breakdown, eFFettiva helps organisations use energy economically, DIODA saves them money by switching to LED lighting, and FOCUS guides customers through energy audits. Repower's electric vehicle offerings are generating growing interest in Switzerland and Italy. In both countries the group is using these products and services as a complement to its traditional sales business. Repower has built its sales business around a pool of some 600 sales consultants in Italy, and in Switzerland is strengthening its capabilities in this area by increasingly gearing the entire corporate organisation to sales.

CEO Kurt Bobst: "In both our key markets we're using our product ranges to position ourselves as a partner to our customers, offering them bespoke solutions along the whole value chain. Many of the ideas we've developed ourselves are also turning out to be very useful for other energy utilities, public service organisations and infrastructure operators."

Very good balance sheet and debt figures

Repower closed the first half of 2017 with operating income (EBIT) of CHF 20 million. As anticipated, this figure is down on last year's performance (-55% versus the prior-year period). Total operating revenues were up 3% to CHF 905 million on CHF 19 million in cash flow from operating activities. Net profit came to CHF 1 million for the first half. Thanks to a favourable operating environment the business in Italy made a particular contribution to these results. With shareholders' equity of CHF 794 million, the equity ratio is running at a very solid 47%, 12% above its prior-year level as a result of the increase in capital in 2016. Repower's debt numbers are also very good. As of 30 June 2017 the group posted net liquidity, and all interest-bearing financial liabilities were covered by assets.

Various divestments led to a decline in the number of employees; the group now employs 569 full-time equivalents. Added to this are 30 apprentices in Switzerland and more than 600 sales consultants in Italy.

CEO Kurt Bobst comments on the results as follows: "Considering that our operating environment remains so challenging and that we're still in the process of refocusing Repower's business model, the six-month results for 2017 can be described as satisfactory."

Outlook

Repower expects margins to remain under pressure in the electricity business, despite a slight easing in the CHF/EUR exchange rate in recent weeks. On the other hand, progress in implementing the new strategy and the group's solid capital base mean that Repower is well positioned to hold its own in a rapidly changing market. Accordingly, Repower is able to adjust its earnings expectations for 2017, and is now predicting operating income (EBIT) in line with the six-month results for the 2017 financial year as a whole.

Plug'n Roll network keeps growing

With Plug'n Roll, Repower has evolved into the leading provider of electric vehicle services and charging infrastructures in Southeast Switzerland. It's also offering Plug'n Roll throughout the rest of the country. Around 80 PALINA and BITTA charging points are already in operation. This infrastructure is run by public institutions, tourism players such as hotels and cable car operators, energy utilities and real estate managers, for whom Repower offers customised service packages and subscriptions.

Recently an interesting scheme was unveiled in Valposchiavo, where local authorities, hotels, commercial operators and Repower have joined forces to offer charging stations in the valley. Six are already up and running (soon they will be eight). This offering is part of the valley's efforts to position itself as an environmental role model in a variety of different areas, which besides electric vehicles include promoting locally produced goods and services and regional gastronomy, as well as concentrating to a large extent on organic farming.

The network of electric vehicle drivers who use the Plug'n Roll app is also growing, and already numbers around 2,000 customers.

Notes:

  • The 2017 semi-annual report is available in online form at onlinereport.repower.com.
  • At www.repower.com/investors documentation containing additional information on the 2017 semi-annual results can also be found.
  • Analysts and representatives of the media have been invited separately to a telephone conference.

Contacts

Kurt Bobst
CEO
T +41 81 839 7111
M +41 79 221 4655
kurt.bobst@repower.com

Brigitte Krapf
CFO
T +41 81 423 7811
M +41 78 677 3155
brigitte.krapf@repower.com

Werner Steinmann
Head of Media Relations
T +41 81 839 7111
M +41 79 831 5213
werner.steinmann@repower.com

For more information:

Organization:
Repower
www.repower.com


Link http://electricenergyonline.com/detail_news.php?ID=652868
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