Notes to the Financial Statements

1 Preliminary note

Basis of preparation

The financial statements of Alpiq Holding Ltd., Lausanne, have been prepared in accordance with the provisions of Swiss accounting legislation (Title 32 of the Swiss Code of Obligations). As in the previous year, the company employed no staff during the financial year.

The following section describes the main valuation principles applied that are not specified by law.

Loans receivable / hedges

Loans receivable that are denominated in foreign currencies are measured at the closing rate on the reporting date, whereby unrealised losses are recognised, and unrealised gains are not reported. In the case of derivatives deployed in hedges, too, unrealised losses are recognised, but unrealised gains are not recognised.

Investments

The investments are generally measured individually. The only exceptions are the investments in Alpiq Ltd. and Alpiq Suisse Ltd., which have been tested for impairment by way of group measurement since 2017, as these companies form an economic unit. Since 2017, Alpiq Suisse Ltd. has operated as a meta partner power plant that sells its energy to Alpiq Ltd. at production cost.

Bonds

Bonds are recognised at face value. The discount and issue costs of bonds are recognised as finance costs in the issue year. Any premium (less issuance costs) is recognised as a deferred income and amortised on a straight-line basis over the bond’s maturity.

2 Dividend income

Dividend income comprises dividends received from subsidiaries.

3 Finance income

4 Finance costs

5 Trade receivables

6 Other current receivables

Other current receivables comprise cash pool balances, loans and non-current term deposits with a maximum term of 12 months as well as VAT and withholding tax receivables.

7 Loans receivable

8 Investments

A list of direct and significant indirect investments is disclosed in note 5.3 of the notes to the consolidated financial statements.

9 Trade payables

10 Current interest-bearing payables

Current interest-bearing payables include cash pooling payables, bonds due for repayment in the next 12 months and loans payable with a remaining term of no more than 12 months.

11 Other current liabilities

12 Provisions

Provisions include a provision for the recapitalisation of Alpiq Deutschland GmbH that may become necessary. They also contain a provision for the expected legal costs in connection with the compensation review proceedings pursuant to Art. 105 of the Swiss Merger Act (FusG) filed against Alpiq Holding Ltd. For more information about this matter, please refer to note 4.8 of the notes to the consolidated financial statements.

13 Interest-bearing loans payable

The loan payable has a remaining maturity of 29 months.

14 Bonds

15 Equity

16 Collateral provided for third-party liabilities

Guarantees in favour of group companies and third parties totalled CHF 1,383 million at 31 December 2022 (previous year: CHF 844 million). Of this, an amount of CHF 786 million (CHF 512 million) relates to bank guarantees and CHF 597 million (CHF 332 million) to guarantees issued by Alpiq Holding Ltd.

17 Contingent liabilities

As part of the sale of the Engineering Services business, Alpiq Deutschland GmbH, for which Alpiq Holding Ltd. has subsidiary liability, must bear any fines and costs of Kraftanlagen Energies & Services GmbH (formerly Kraftanlagen München GmbH) resulting from the proceedings started by the state prosecutor of Munich I and the German Federal Cartel Office in the first quarter of 2015. Alpiq still deems it unlikely that Kraftanlagen Energies & Services GmbH will be convicted, which is why it was decided not to record a liability for this matter. For more information about this matter, please refer to note 5.1 of the notes to the consolidated financial statements.