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 figures reported in the tables are rounded. Therefore, totals may deviate slightly from the sum of the individual values.

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.

Changes in the presentation of the financial statements

Compared to previous year, figures are rounded to CHF thousand. For consistency and comparability, previous year figures have been adjusted. The layout has been updated to align with Alpiq’s refreshed corporate design.

2 Dividend income

Income from investments includes dividend income from subsidiaries.

3 Finance income

4 Other income

In the previous year, other income included the compensation payment of CHF 103 million for the transfer of the operational treasury business to Alpiq Ltd. and licence fees for a period of six months.

5 Extraordinary income

In the previous year, Alpiq Holding Ltd. sold the trademarks and trademark rights of the Alpiq brand to Alpiq Ltd.

6 Finance costs

7 Other expenses

Other expenses include the compensation payment of CHF 30 million for the transfer of the operational treasury business to Alpiq Ltd.

8 Trade receivables

9 Other current receivables

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

10 Loans receivable

11 Investments

A list of direct and significant indirect investments is disclosed in note 5.4 of the notes to the consolidated financial statements.

12 Trade payables

13 Current interest-bearing payables

Current interest-bearing payables include cash pooling payables and bonds due for repayment in the next 12 months.

14 Other current liabilities

Other current liabilities include withholding tax and social security contributions.

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 SE (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. The German Federal Court of Justice confirmed on 17 September 2024 the conviction of Kraftanlagen by the Higher Regional Court of Düsseldorf, making the fine of EUR 21 million (CHF 19.8 million) final. Consequently, the existing provision of EUR 21 million (CHF 19.8 million) was utilised. In addition, the Federal Court of Justice rejected the acquittal decision for the remaining projects and referred these back to the Higher Regional Court of Düsseldorf for reassessment. Alpiq considers the risk of further convictions for parts of these projects to be higher than 50% and has therefore recognised an additional provision of EUR 25.8 million (CHF 24.3 million). The recapitalisation provision was therefore also increased at Alpiq Holding Ltd. For more information about this matter, please refer to note 5.2 of the notes to the consolidated financial statements.

16 Bonds

17 Equity

18 Collateral provided for third-party liabilities

Guarantees in favour of group companies and third parties totalled CHF 919 million at 31 December 2024 (previous year: CHF 1,183 million). Of this, an amount of CHF 373 million (CHF 679 million) relates to bank guarantees and CHF 546 million (CHF 504 million) to guarantees issued by Alpiq Holding Ltd.

19 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.

20 Events after the reporting period

There were no reportable events after the reporting date of 31 December 2024.