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 recognised at cost considering the effect of impairment losses.

Bonds

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

2 Dividend income

Income from investments in the previous year includes dividend income from subsidiaries.

3 Finance income

4 Gain on sale of investments

The investment Vetrocom EOOD held directly by Alpiq Holding Ltd. was sold in 2023.

5 Other income

Other income includes the compensation payment of CHF 103 million for the transfer of the operational treasury business to Alpiq Ltd. with retroactive effect as of 1 July 2023. In addition, other income contains Licence fees for the first 6 months of the year.

6 Extraordinary income

Alpiq Holding Ltd. sold the trademarks and trademark rights of the Alpiq brand to Alpiq Ltd. with effective date as of 1 July 2023.

7 Finance costs

8 Trade receivables

9 Other current receivables

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

10 Loans receivable

11 Investments

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

12 Trade payables

13 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.

14 Other current liabilities

Other current liabilities comprise withholding tax payable as well as VAT.

15 Provisions

Provisions include a provision for the recapitalisation of Alpiq Deutschland GmbH that may become necessary. 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 sees the risk of Kraftanlagen being convicted along the lines of the decision of the Higher Regional Court of Düsseldorf to be higher than 50% and has therefore decided to recognise a provision of EUR 21 million (CHF 19.4 million). The recapitalisation provision was therefore also increased at Alpiq Holding Ltd. For more information about this matter, please refer to note 5.1 of the notes to the consolidated financial statements.

16 Interest-bearing loans payable

The loan payable has a remaining maturity of almost 17 months.

17 Bonds

18 Equity

19 Collateral provided for third-party liabilities

Guarantees in favour of group companies and third parties totalled CHF 1’183 million at 31 December 2023 (previous year: CHF 1’383 million). Of this, an amount of CHF 679 million (CHF 786 million) relates to bank guarantees and CHF 504 million (CHF 597 million) to guarantees issued by Alpiq Holding Ltd.

20 Contingent liabilities

In 2020, appraisal claims were filed against Alpiq Holding Ltd. by the two investors Knight Vinke (KVIP International V L.P.) and Merion Capital (Merion Capital LP, Merion Capital ERISA LP and Merion Capital II LP) pursuant to Sec. 105 of the Swiss Merger Act (FusG). In 2023, Alpiq Holding Ltd. and Merion Capital reached an out-of-court settlement and Merion Capital withdrew their appraisal claim while the proceeding initiated by Knight Vinke continues. Alpiq considers it unlikely that this litigation will result in a negative outcome for the company and has therefore not recorded a provision. For more information about this matter, please refer to note 4.8 of the notes to the consolidated financial statements.

21 Events after the reporting period

There were no reportable events after the reporting date of 31 December 2023.