Accounting policies

Alliander N.V. is a public limited liability company, with registered offices in Arnhem (Utrechtseweg 68, 6812 AH Arnhem) in the Netherlands.

IFRS

Alliander’s financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as at 31 December 2025, as adopted by the European Union (EU), and the provisions of Part 9, Book 2 of the Dutch Civil Code.

Basis of the consolidation

The consolidated financial statements comprise the financial data of Alliander and its subsidiaries.

Note 1 Business combinations

There were no investments in business combinations in 2025 and 2024.

Note 2 Segment information

Alliander distinguishes the following reporting segments in 2025:

Note 3 Property, plant, equipment and right-of-use assets

Investments in property, plant and equipment during the financial year totalled €2,071 million (2024: €1,772 million).

Note 4 Intangible assets

Reclassification and other movements include a reclassification of software with a value of €47 million from property, plant and equipment as at 1 January 2025.

Note 5 Investments in associates and joint ventures

The investments in 2025 and 2024 relate to payments of share premium.

Note 6 Investments in bonds

There were no investments in bonds in 2025 and 2024.

Note 7 Other financial assets (including current portion)

The carrying amount of the other financial assets item as at year-end 2025 includes a receivable from the Municipality of Amsterdam relating to the Spaklerweg site (€7 million), a loan issued by Alliander AG to 450connect (€20 million) and a

Note 8 Derivatives

No derivatives were recognised in the year-end balance sheet in 2025 or 2024.

Note 9 Inventories

The impairment of inventories in 2025 amounted to €0.2 million negative. In 2024, the impairment of inventories was nil.

Note 10 Trade and other receivables

At the year-end, impairment of receivables totalled €12 million (same at year-end 2024). An impairment loss on receivables of €4 million was recognised in the income statement in 2025 (2024: €5 million).

Note 11 Cash and cash equivalents

The effective interest rate on cash and cash equivalents varies from 1.7% to 3.1% (2024: 2.9% to 4.0%). Cash and cash equivalents are held almost entirely in euros.

Note 12 Equity

The company’s authorised capital is divided into 350 million shares of €5 nominal value. As at year-end 2025, 136,794,964 shares were in issue (2024: 136,794,964).

Note 13 Interest-bearing debt

The movements in new loans, repayments and security deposit repayments during the year gave rise to cash flows.

Note 14 Deferred income

Deferred income relates to construction contributions, investment grants and subsidies received.

Note 15 Provisions for employee benefits

Prompted by the deterioration of the funding ratio in 2008, ABP introduced a recovery plan in 2009. At the start of each year ABP evaluates the progress of the recovery on the basis of the actual funding ratio at the end of the preceding year.

Note 16 Other provisions

Other provisions at year-end 2025 amounted to €26 million (2024: €30 million). Included in the other provisions at year-end 2025 is a provision of €16 million for gas connection removals (year-end 2024: €20 million).

Note 17 Deferred tax

Deferred tax assets and liabilities comprise the following:

Note 18 Trade and other payables

Other payables include €15 million owed to a company in which Alliander has a non-controlling interest (2024: €12 million).

Note 19 Leases

Finance lease receivables are as follows:

Note 20 Contingent assets and liabilities

Please refer to note 19 for details of rights and obligations arising from leases.

Note 21 Revenue

At €3,273 million, net revenue in 2025 was up €230 million compared to 2024. This was mainly attributable to the €169 million rise in regulated electricity revenue.

Note 22 Other income

Other income in 2025 amounted to €124 million (2024: €838 million).

Note 23 Purchase costs and costs of subcontracted work

Compared to 2024, the cost of procurement and subcontracted work fell by €36 million to €1,251 million. The lower costs were mainly the result of lower energy prices, which reduced the cost of purchasing network losses.

Note 24 Employee benefit expenses

The staff costs relating to pensions, reorganisations and other long-term employee benefits were as follows:

Note 25 Other operating expenses

Other operating expenses amounted to €349 million in 2025 and were therewith €45 million higher compared to 2024 (€304 million).

Note 26 Depreciation/amortisation and impairment of non-current assets

The divestments include the accelerated depreciation of decommissioned assets.

Note 27 Finance income

The decrease in financial income in 2025 is mainly due to the lower amounts invested in liquidity funds.

Note 28 Finance expense

The increase in finance expenses in 2025 is mainly due to the interest expense on two long-term bond loans issued in 2025 in order to refinance the maturing EMTN.

Note 29 Tax

The tax expense in the 2025 financial year amounts to €66 million. The movement in deferred taxation is €21 million.

Note 30 Notes to the consolidated cash flow statement

The cash flow from operating activities in 2025 amounted to €832 million (2024: €829 million). The €3 million increase relative to 2024 is partly due to a rebate of corporate income tax over previous years.

Note 31 Licences

Liander N.V. owns the networks for the transmission of electricity and gas in the Netherlands.

Note 32 Related parties

As holder of 45% of the shares in Alliander, the Province of Gelderland has significant influence over the company, qualifying the province as a related party.

Note 33 Assets and liabilities held for sale and discontinued operations

At year-end 2025, there were no assets or liabilities held for sale.

Note 34 Information on risks and financial instruments

The following financial risks can be identified: market risk, credit risk and liquidity risk. Market risk is defined as the risk of loss due to an adverse change in market prices.

Note 35 Assumptions and estimates used in the financial statements (critical accounting policies)

Alliander prepares its financial statements in accordance with International Financial Reporting Standards that have been endorsed for use in the European Union by the European Commission.

Note 36 Events after balance sheet date

No events occurred after the balance-sheet date which should be disclosed.