Note 2 Segment information

Alliander distinguishes the following reporting segments in 2025:

• Network operator Liander

• Other

This segmentation reflects the internal reporting structure, specifically internal consolidated and segmented reporting and the business plan, including the annual budget.

Network operator Liander forms the largest company within the Alliander group and is responsible for providing gas and electricity connections and for distributing gas and electricity in Gelderland and parts of Noord-Holland, Flevoland, Friesland and Zuid-Holland. It is Alliander’s largest business unit, accounting for almost 96% of the revenue.

The ‘Other’ segment covers all other operating segments in the Alliander group, such as the activities of Qirion, Alliander AG, Firan, new activities, the corporate staff departments and the service units. Qirion provides services relating to the construction and maintenance of complex energy infrastructures, on behalf of Liander as well as third parties. Alliander AG carries on network operation and public lighting activities in Germany. Established as well as new activities include targeted investments in the infrastructure for electric vehicles, sustainable area development and sustainable housing. The corporate staff departments and service units include Shared Services and IT, which perform activities on behalf of Liander among others. All these activities can be combined into a single segment inasmuch as they do not satisfy the quantitative criteria in order to qualify separately as reporting segments.

Except for the corporate staff and service units, the business of the other operating segments exhibits similar characteristics, depending on the nature of the products and services and the nature of the production processes, i.e. supply, construction, management and maintenance of energy-related products and services. Given the scale of these other operating segments, other characteristics in the sense of customers and distribution channels are not relevant segment reporting distinctions. Furthermore, these operating segments have been aggregated in the Other segment since none of them satisfies the quantitative criteria that would qualify them as separate reporting segments.

Reporting

Alliander produces regular management reports for the Management Board, with quarterly reports for the Supervisory Board as well. Regarding both balance as income statement, these reports use the same accounting policies and classification as the financial information contained in these financial statements. The Management Board assesses the performance of the business on the basis of these reports. The financial reports focus on the consolidated and segment information concerning operating expenses. The operating result is also included on a comparable basis, i.e. excluding incidental items and fair value movements. The operating result is total income less total expenses.

A statement showing the primary segmentation analysis is presented below, including reconciliation with the reported figures.

Notes

The external revenue of Liander mainly comprises income from energy transport, connection and metering services. In the ‘Other’ segment, external revenue mainly derives from the services provided by Qirion, Firan, telecom activities and new activities, and income from network management activities in Germany. The eliminations result from the internal services provided by corporate staff departments and service units (such as IT and Shared Services). These internal supplies are made at cost.

Primary segmentation

The profit after tax for 2025, like that for 2024, is almost entirely attributable to the shareholders of Alliander N.V.

Reclassification to reported and incidental items

In April 2025, the Randmeren high-voltage network was sold to TenneT TSO B.V., leading to a one-off gain of €30 million that has been recognised as other income. In June 2025, the free-domain transformers were transferred to Kenter, as agreed in the deal for the sale of Kenter in 2024, delivering a one-off book profit of €54 million that has been recognised as other income.

The sale of our subsidiary Kenter B.V. had a positive impact of €757 million on our operating profit in the comparative figures for 2024. In addition, Liander had concluded a settlement agreement with the State of the Netherlands on the costs of removing gas connections for small consumers during the period from 2 March 2021 to 31 January 2024. After the Code Decision was set aside by the Dutch Trade and Industry Appeals Tribunal on 20 June 2023, network operators were temporarily prevented from offsetting these costs against regular connection charges. As compensation, Liander received a settlement payment of €30 million.

Segment assets

The amounts in the eliminations column against total assets mainly concern the eliminations of the investments in the subsidiaries of Alliander. The eliminations against the liabilities relate to the current-account positions between the subsidiaries and Alliander. Within the Alliander group, there are group financing arrangements, involving central administration of external accounts. All the subsidiaries maintain a current account with Alliander. There are no assets or equity and liabilities that are not allocated.

Product segmentation

In compliance with IFRS 15, the following table discloses net revenue according to distinct products (product segmentation).

Net revenue in 2025 amounted to €3,273 million (2024: €3,043 million). Other income was €124 million (2024: €838 million). In total, external revenue came in at €3,397 million (2024: €3,881 million).

Seasonal influences

Alliander’s results are not materially affected by seasonal influences.

Geographical segmentation

‘Rest of the world’ relates entirely to the activities in Germany.