11 Liquidity situation and ability to continue as a going concern

In the first half of 2022, Alpiq continued implementing extensive measures to increase its liquidity. On the one hand, these related to the energy business in order to increase short-term internal financing, on the other, Alpiq arranged additional credit and guarantee lines with banks. Furthermore, Alpiq was able to issue two new bonds in the total amount of CHF 450 million. These measures improved Alpiq's financial headroom at 30 June 2022 and its resilience to future market developments.

Alpiq's financial headroom comprises the available liquidity and the committed credit lines (see note 6). The necessary financial headroom is determined on an ongoing basis using scenario calculations by Alpiq's Risk Management. Furthermore, Alpiq closely monitors its compliance with financial covenants. Based on this, additional measures are decided when necessary. At the reporting date, there were current financial liabilities of CHF 908 million that have to be refinanced over the next 12 months.

The war in the Ukraine and sanctions imposed due to it are having far-reaching effects on the macroeconomic environment of many industries and thus also on Alpiq. The market and price situation continues to be difficult to predict. The volatile and high energy prices are causing fluctuations in the financial security deposits that have to be made at the energy exchanges. The counterparty risk of Alpiq has increased because the counterparties could run into financial difficulties. This could impact the financial position, financial performance and cash flows of Alpiq in 2022. Alpiq identifies the risks, carefully observes developments and takes appropriate measures in order to reduce the risks as far as possible.

There is still fundamental uncertainty regarding the further development of market prices. With all the measures already implemented and still ongoing in the area of internal and external financing, Alpiq considers its liquidity and ability to continue as a going concern to be secure.

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