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 used for hedging, unrealised losses and gains are recognised because the related risks and opportunities are transferred to Alpiq AG as the group’s central operating entity.

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 includes dividend income from subsidiaries.

3 Finance income

4 Other income

Other income includes the compensation payment of CHF 32 million for the transfer of the operational treasury business to Alpiq Ltd. for 2025.

5 Finance costs

6 Other expenses

In the previous year, other expenses included the compensation payment of CHF 30 million related to the transfer of the operational treasury business to Alpiq Ltd.

7 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, VAT and social security contributions.

8 Loans receivable

9 Investments

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

10 Trade payables

11 Current interest-bearing payables

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

12 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 Equans Germany SE (formerly Kraftanlagen Energies & Services GmbH; “Equans”) resulting from the proceedings started by the state prosecutor of Munich I and the German Federal Cartel Office in the first quarter of 2015.
In its verdict of 17 September 2024, the Federal Court of Justice confirmed the conviction of Equans by the Higher Regional Court of Düsseldorf and herewith the fine of EUR 21 million (CHF 19.6 million) became final. In addition, the Federal Court of Justice rejected the acquittal decision of the remaining projects and sent the case back to the Higher Regional Court of Düsseldorf for reassessment.

Alpiq deems the risk of Equans being convicted along the lines of the decision of the Federal Court of Justice to be higher than 50% for a part of the projects subject to reassessment and has recognized a provision of EUR 25.8 million (CHF 24.0 million) as of 31 December 2025. At Alpiq Holding Ltd., a corresponding provision for the potential recapitalisation of Alpiq Deutschland GmbH has been recognised in the same amount. Based on the current assessment of the expected timing of the underlying proceedings as at 31 December 2025, the provision is classified as non-current.

For more information about this matter, please refer to note 5.2 of the notes to the consolidated financial statements.

13 Bonds

14 Equity

15 Collateral provided for third-party liabilities

Guarantees in favour of group companies and third parties totalled CHF 889 million at 31 December 2025 (previous year: CHF 919 million). Of this, an amount of CHF 326 million (CHF 373 million) relates to bank guarantees and CHF 563 million (CHF 546 million) to guarantees issued by Alpiq Holding Ltd.

16 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.

17 Events after the reporting period

There were no reportable events after the reporting date of 31 December 2025.