3.3 Financing

Capital management

Capital management includes financing and debt structuring, oversight of trade financing activities, management and control of guarantees, cash and liquidity management, and safeguarding the Group against the risk that Alpiq Holding Ltd., or any other group company becomes unable to meet its payment obligations. All these activities are governed by the Financial Risk Directive.

As part of the budgeting and planning process, the Board of Directors takes note of the financial targets and the required target liquidity on an annual basis. Target liquidity consists of risk capital and required working capital. In addition, the Board of Directors is regularly provided with reports on the Group’s liquidity position and compliance with the defined targets.

Alpiq Holding Ltd. procures a significant portion of financing centrally for the Alpiq Group. The Swiss capital market remains the main source of financing. The aim pursued in financing the Group is that the level of financial liabilities contributes to a solid credit rating in line with industry standards.

The capital management strategy in principle focuses on the Group’s reported consolidated equity and net debt-to-EBITDA ratio. At 31 December 2025, the Group reported an equity ratio of 60.8%, which is 2.5 percentage points above the previous year.

The net debt-to-EBITDA ratio before non-operating effects is calculated and compares with the previous year as follows:

Financial liabilities

Bonds

Bonds outstanding at the reporting date

The weighted interest rate on the bonds issued and listed on the SIX Swiss Exchange based on the nominal value at the reporting date is 2.54% (previous year: 2.52%). The corresponding rate on loans payable is 1.91% (2.03%), which also includes project financing denominated in euros. The weighted average interest rate of the bonds and loans payable combined amounts to 2.33% (2.36%).

Credit lines

The Alpiq Group has the following bank credit lines:

Alpiq’s financing agreements do not contain any financial covenants.

Equity

Share capital

The share capital of CHF 0.331 million (previous year: CHF 0.331 million) consists of 33,110,364 registered shares at a par value of CHF 0.01 each and is fully paid in. The shareholder structure breaks down as follows:

At the Annual General Meeting on 7 May 2026, the Board of Directors of Alpiq Holding Ltd. will propose a dividend distribution of CHF 6.95 per share (totalling CHF 230.1 million) for the financial year 2025. In the previous year, the dividend was CHF 4.90 per share, totaling CHF 162.2 million.

Hybrid capital

In 2013, Alpiq issued a CHF 650.0 million public hybrid bond on the Swiss capital market. The bond had no maturity date and was classified as equity under IFRS Accounting Standards. Alpiq retained the option to repay the bond annually on 15 November. In September 2024, Alpiq announced its decision to exercise this option, and on 15 November 2024 the notional amount of CHF 650.0 million, along with interest of CHF 40.7 million, was repaid. Interest after tax attributable to 2024 amounted to CHF 35.6 million.

Non-controlling interest put option

Alpiq and the minority shareholders of P2X have entered into a shareholder agreement that includes a put option, allowing the minority shareholders to sell their shares to Alpiq at the beginning of 2028 at a predefined price, subject to the fulfilment of specific milestones. At inception, the present value of the put option amounted to CHF 35.1 million and was recognised as a non-current financial liability, with a corresponding reduction in retained earnings. Over the reporting period, the liability increased by CHF 1.0 million due to the accretion of interest, resulting in a carrying amount of CHF 36.1 million at year-end.