Consolidated Financial Statement 2025

3 Financial Report

Consolidated Financial Statements

Avolta Annual Report 2025

171

3 Financial Report

Consolidated Financial Statements

Avolta Annual Report 2025

for the year ended December 31, 2025

172

3 Financial Report

Consolidated Financial Statements

Avolta Annual Report 2025

for the year ended December 31, 2025

173

3 Financial Report

Consolidated Financial Statements

Avolta Annual Report 2025

at December 31, 2025

174

3 Financial Report

Consolidated Financial Statements

Avolta Annual Report 2025

for the year ended December 31, 2025

Attributable to equity holders of Avolta AG

In millions of CHF Note

Balance at January 1, 2025

Net earnings

Other comprehensive

income /(loss) 14

Total comprehensive income /(loss) for the period

Transactions with or distributions to shareholders

Share purchases 23.2

Dividends

Share-based payments 24

Total transactions with or distribution to owners

Changes in ownership interests in subsidiaries

Revaluation of put option Dufry Staer Holding Ltd

Other participation interest /Non-controlling interests share capital changes

Changes in participation of non-controlling interests

Balance at December 31, 2025

Non-controlling interests

171

140

(22)

118

-(158)

-

(158)

(7)

21

14

145

175

3 Financial Report

Consolidated Financial Statements

Avolta Annual Report 2025

for the year ended December 31, 2024

Attributable to equity holders of Avolta AG

In millions of CHF Note

Balance at January 1, 2024

Net earnings

Other comprehensive income /(loss) 14

Total comprehensive income /(loss) for the period

Transactions with or distributions to shareholders

Share purchases 23.2

Share cancellations 23.1

Dividends

Share-based payments 24

Total transactions with or distribution to owners

Changes in ownership interests in subsidiaries

Revaluation of put option Dufry Staer Holding Ltd

Other participation interest /Non-controlling interests share capital changes

Changes in participation of non-controlling interests

Balance at December 31, 2024

176

Non-controlling interests

134

157

17

174

-

-(145)

-

(145)

(6)

14

8

171

3 Financial Report

Consolidated Financial Statements

Avolta Annual Report 2025

for the year ended December 31, 2025

1 Includes lease payments from operating activities of CHF 1,965 million (2024: CHF 2,020 million).

177

3 Financial Report

Consolidated Financial Statements

Avolta Annual Report 2025

for the year ended December 31, 2025

178

3 Financial Report

Consolidated Financial Statements

Avolta Annual Report 2025

for the year ended December 31, 2025

1. Corporate Information

   Avolta AG (the "Company") is a publicly listed company with headquarters in Basel, Switzerland. The Company is the world's leading travel retail and food & beverage company. It operates in close to 5,100 outlets worldwide. The shares of the Company are listed on the SIX Swiss Exchange in Zürich.

   The consolidated financial statements of Avolta AG and its subsidiaries (Avolta or the "Group") for the year ended December 31, 2025, and the respective comparative information were authorized for public disclosure in accordance with a resolution of the Board of Directors of the Company dated March 10, 2026, and are subject to the approval of the Annual General meeting to be held on May 6, 2026.

2. Basis of Preparation

   The consolidated financial statements of Avolta AG and its subsidiaries have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB) ("IFRS Accounting Standards").

   The consolidated financial statements have been prepared on the historical cost basis, except for certain financial assets, liabilities (including derivative instruments), and defined benefit plan assets, that are measured at fair value, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The consolidated financial statements are presented in millions of Swiss Francs (CHF). Numbers presented throughout this report may not add up precisely due to rounding.

   The consolidated financial statements have been prepared on a going concern basis.

   179

   3 Financial Report

   Consolidated Financial Statements

   Avolta Annual Report 2025

3. Accounting Policies

   1. Basis of consolidation

      The consolidated financial statements of Avolta comprise all entities directly or indirectly controlled by Avolta for the years ended December 31, 2025 and 2024, respectively.

      Subsidiaries are fully consolidated from the date of acquisition, being the date on which Avolta obtains control, and continue to be consolidated until the date when such control is lost. The Group controls an entity when Avolta is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. All intra-group balances, transactions, unrealized gains or losses, and dividends with consolidated entities are eliminated in full.

      A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

      When Avolta loses control over a subsidiary, it:

      • derecognizes the assets (including goodwill) and liabilities of the subsidiary;

      • derecognizes the carrying amount of any non-controlling interests as well as derecognizes the cumulative translation differences recorded in equity;

      • recognizes the fair value of the consideration received, and the fair value of any investment retained, and records any surplus or deficit in the statement of profit or loss; and

      • recognizes any receivable from /payable to this former subsidiary.

      180

      3 Financial Report

      Consolidated Financial Statements

      Avolta Annual Report 2025

   2. Summary of significant accounting policies

      1. Business Combinations and Goodwill

         Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition-date fair value and the amount of any non-controlling interest in the acquiree. For each business combination, Avolta selects whether it measures the non-controlling interest in the acquiree either at fair value or at the proportionate share of the acquiree's identifiable net assets. Acquisition-related transaction costs are expensed and presented in other expenses. When Avolta acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances, and pertinent conditions as at the acquisition date.

         Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Any subsequent changes in the fair value of the contingent consideration not classified as equity are recognized through the statement of profit or loss.

         Avolta measures goodwill at the acquisition date as:

         • the fair value of the consideration transferred;

         • plus, the recognized amount of any non-controlling interests in the acquiree;

         • plus, if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquiree; and

         • less the net recognized amount of the identifiable assets acquired and liabilities assumed.

           After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of Avolta's groups of cash-gener-ating units that are expected to benefit from the combination. Any subsequent reallocations of goodwill are done on a relative fair value basis.

      2. Foreign currency translation

         Transactions in foreign currencies are recorded at the date of the transaction in the functional currencies of the respective subsidiaries, using the exchange rate of such date.

         Monetary assets and liabilities denominated in foreign currencies are remeasured using the exchange rate at the reporting date and the difference is recorded as unrealized foreign exchange gains /losses. Exchange differences arising on the settlement or on the translation of derivative financial instruments are recognized in the statement of profit or loss (within finance costs), except where they are designated as hedging instruments in a qualifying hedging relationship. Deferred tax related to unrealized exchange differences is accounted for accordingly. Non-monetary items are measured at historical cost in the respective functional currency.

         181

         3 Financial Report

         Consolidated Financial Statements

         Avolta Annual Report 2025

         At the reporting date, the assets and liabilities of all subsidiaries reporting in foreign currencies are translated into the presentation currency of Avolta (CHF), using the exchange rate at the reporting date. The statements of profit or loss of the subsidiaries are translated using the average exchange rates of the respective month in which the transactions occurred. The translation differences are recognized in other comprehensive income. On disposal of a foreign entity or when control is lost, the deferred cumulative translation difference recognized within equity relating to that particular foreign operation is recognized in the statement of profit or loss.

         Principal foreign exchange rates applied for valuation and translation:

         2025	2024
         0.8304	0.8805
         0.9367	0.9525
         1.0938	1.1252

         Dec 31, 2025	Dec 31, 2024
         0.7923	0.9072
         0.9306	0.9393
         1.0678	1.1355

         Average rate Closing rate

         In CHF

         1 United States dollar (USD) 1 Euro (EUR)

         1 Pound sterling (GBP)

      3. Net sales

         Net sales are recognized from contracts with customers. The Group recognizes revenue from customers at the point in time when it sells and hands over goods at the stores to the customers. These transactions have to be settled by cash or credit card on delivery. Net sales are measured at fair value of the consideration received for the goods sold, deducting discounts, and excluding sales taxes.

         When the Group acts as an agent and not as a principal in a sales transaction, the revenues recognized is the net amount of the Group's premium or commission. The Group acts as an agent for a portion of the fuel business.

      4. Advertising income

         The Group's advertising income results from several distinctive marketing support activities, not affecting the retail price, performed by Avolta after having been developed and coordinated together with its suppliers. The income is recognized in the period the advertising is performed, less an adjustment to reflect risks and uncertainties in relation to the final achievements of incentives based on thresholds, to be confirmed after the end of the respective program.

      5. Cost of sales

         Cost of sales are recognized when the Group sells the products and comprises the purchase price and the cost incurred until the products arrive at the warehouse, i. e., import duties, transport, purchase discounts (price-offs), as well as inventory valuation adjustments and inventory losses.

      6. Share capital

         Ordinary shares are classified as equity. Costs directly attributable to the issuance of equity instruments are shown net of tax in the statement of changes in equity as transaction costs for equity instruments.

         For Avolta shares purchases, the consideration paid, including any directly attributable net expenses, is deducted from equity until the shares are cancelled, assigned, or sold. Where such shares are subsequently sold, any consideration received, net of any direct transaction expenses and income tax, is included in equity.

         182

         3 Financial Report

         Consolidated Financial Statements

         Avolta Annual Report 2025

      7. Pension and other post-employment benefit obligation

         Employees may be eligible for retirement, invalidity, and death benefits under local social security schemes prevailing in the countries concerned and defined benefit or defined contribution plans provided through separate funds, insurance plans, or unfunded arrangements. The pension plans are either funded through regular contributions made by the employer or the employee, or are unfunded. The plan assets are valued at fair value.

         Remeasurements, the effect of the asset ceiling (excluding net interest), and the return on plan assets (excluding net interest), are recognized in the statement of financial position with a corresponding debit or credit to other comprehensive income in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

         Past service costs are recognized in profit or loss on the earlier of:

         • the date of the plan amendment or curtailment; and

         • the date that Avolta recognizes restructuring-related costs.

           Net interest is calculated by applying the discount rate to the net defined benefit obligation/(asset). Avolta recognizes the following components in the statement of profit or loss:

         • Service costs comprising current service costs are disclosed under "personnel expenses". Past service costs, gains and losses on curtailments and non-routine settlements are shown under "other expenses".

         • Net interest expense or income under "finance expenses" or "finance income".

      8. Share-based payments

         Equity-settled share-based payments to employees are measured at the fair value of the equity instruments at grant date. The fair value determined at grant date of the equity-settled share-based payments is expensed on a pro rata basis over the vesting period, updated for estimates relating to meeting non-market performance conditions. The impact of the revision of the original estimates, if any, is recognized in the statement of profit or loss such that the cumulative expense reflects the revised estimate. Changes in estimates relating to market conclusions are reflected in equity.

      9. Taxation

         Income tax expense represents the sum of the current income tax and deferred tax. Where the functional currency is not the local currency, the position includes the effects of foreign exchange translation on deferred tax assets or deferred tax liabilities.

         Income tax positions not relating to items recognized in the statement of profit or loss, are recognized in correlation to the underlying transaction, either in other comprehensive income, or in equity.

         Current income tax

         Income tax receivables or payables are measured at the amount expected to be recovered from or paid to the tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted at the reporting date in the jurisdiction where Avolta operates and generates taxable income.

         183

         3 Financial Report

         Consolidated Financial Statements

         Avolta Annual Report 2025

         Deferred tax

         Deferred tax is provided using the liability method on temporary differences between the tax basis of assets or liabilities and their carrying amounts for financial reporting purposes at the reporting date.

         Deferred tax liabilities are recognized for all taxable temporary differences, except:

         • when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting nor taxable profit or loss; or

         • for taxable temporary differences associated with investments in subsidiaries, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

           Deferred tax assets are recognized for all deductible temporary differences and the carry-forward of unused tax credits or tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available, against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilized, except:

         • when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

         • for deductible temporary differences associated with investments in subsidiaries, where deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

           The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered in the foreseeable future.

           Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantially enacted at the reporting date applicable for each respective entity.

      10. Property, plant and equipment

          These are stated at cost less accumulated depreciation and any impairment. Depreciation is computed on a straight-line basis over the shorter of the estimated useful life of the asset or the lease term. The useful lives are as follows:

          • Real estate (buildings): 20 to 40 years

          • Leasehold improvements: the shorter of the lease term or 10 years

          • Furniture and fixtures: the shorter of the lease term or 5 years

          • Motor vehicles: the shorter of the lease term or 5 years

          • Computer hardware: the shorter of the lease term or 5 years

          184

          3 Financial Report

          Consolidated Financial Statements

          Avolta Annual Report 2025

      11. Leases

          The Group recognizes right-of-use assets at the commencement date of the lease (i. e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease obligations. The cost of right-of-use assets includes the amount of lease obligations recognized, initial direct costs incurred, and lease payments made at or before the commencement date, less any lease incentives received. The contractual term of the Group's leases is up to 40 years.

          To contain a lease, an agreement has to convey the right to control the use of an identified asset throughout the period of use in exchange for consideration, so that the lessee has the right to obtain substantially all of the economic benefits from the use of the identified asset and direct the use of the identified asset. The lease term corresponds to the non-cancellable period of each contract renewal periods to the extent the Group is reasonably certain of exercising contractual renewal options. Right-of-use assets are capitalized at a value equivalent to the lease obligation at inception and depreciated over the useful life of the asset.

          The lease obligation represents the net present value of fixed or in-substance-fixed lease payments over the lease term. The implied interest charge is presented as interest expenses on lease obligation. Where a lease agreement does not specify a discount rate, Avolta uses a discount rate which is the aggregation of the risk-free rate for the respective currency and lease duration, increased by individual specific risk factors.

          Low-value leases, and short-term leases (lease term of less than 12 months), as well as other lease elements not eligible for capitalization are expensed as incurred.

          Avolta's outlets are typically leased. These lease agreements often contain complex features, including variable sales-based payments, which cannot be lower than a minimal threshold (MAG). The MAG can be fixed or variable depending on certain parameters. The MAG amounts may: a) be fixed by the lease agreement, or b) be calculated based on a percentage of fees paid in the previous year, or c) be adjusted based on an index. The unavoidable portions of the fees are considered as in-substance-fixed payments, despite having a variable component. These agreements do not contain a residual value guarantee. In some cases, the current parts of the lease obligations are secured with bank guarantees.

          Besides outlet leases, Avolta has also entered into lease agreements for other assets, including vehicles for warehouses, hardware or software, and other assets.

          Where the Group acts as sub-lessor, it recognizes lease receivables as of the commencement date of the lease. The sub-leases are determined with reference to the right-of-use asset deriving from the principal lease contract, rather than the underlying asset, and the Group reduces its right-of-use assets and recognizes a lease receivable, split between current and non-current assets.

          185

          3 Financial Report

          Consolidated Financial Statements

          Avolta Annual Report 2025

      12. Intangible assets

          These assets are measured at cost and mainly consist of concession rights and brands. The useful lives of these intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are amortized over their useful life. Intangible assets with an indefinite useful life are reviewed annually to determine whether the indefinite life assessment continues to be supportable. If not, any changes are made on a prospective basis and brands are amortized over the remaining useful life. Brand assets have indefinite useful lives, as they can be renewed without significant costs, are supported by ongoing marketing and selling activities, and there is no foreseeable limit to the cash flows they generate. Concession rights have a useful life based on the lease term, which can be up to 40 years.

      13. Impairment of non-financial assets

          Goodwill and intangible assets with indefinite useful life are not subject to amortization and are tested annually for impairment. Assets that are subject to depreciation and amortization are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized when the carrying amount of an asset or cash-generating unit exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less cost of disposal or its value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-gener-ating units).

      14. Associates

          Associates are entities over which Avolta has significant influence but not control, generally with a shareholding interest of more than 20 % of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognized at cost. The carrying amount is increased or decreased to recognize changes in the Group's share of net assets of the associate and decreased by dividends declared, and any impairments. Avolta's investments in associates may include goodwill on acquisition.

          When Avolta's share of losses in an associate equals or exceeds its interest in the associate, Avolta does not recognize further losses, unless it has incurred legal or constructive obligations or has made payments on behalf of the associate.

          Profits and losses resulting from upstream and downstream transactions between Avolta and its associates are recognized in the Group's financial statements only to the extent of unrelated investors' interest in the associates.

      15. Inventories

          Inventories are valued at the lower of historical cost or net realizable value.

          The historical costs are determined according to the weighted-average cost or First-in-First-out (FIFO) method. Historical cost includes all expenses incurred in bringing the inventories to their present location and condition.

          The net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sale. Inventory allowances are recognized for slow-moving and obsolete stock. Expired items are written off.

      16. Cash and cash equivalents

          Cash and cash equivalents consist of cash on hand or current bank accounts as well as current deposits at banks with initial maturity of up to three months. Credit card receivables with a maturity of up to four working days are included as cash in transit.

          186

          3 Financial Report

          Consolidated Financial Statements

          Avolta Annual Report 2025

      17. Provisions

          Provisions are recognized when Avolta has a present obligation (legal or constructive) as a result of a past event, it is probable that Avolta will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions at Avolta include contingent liabilities acquired in a business combination, onerous contracts, restructuring provisions, and provisions relating to lawsuits and claims.

          The amount recognized as a provision is the best estimate at the end of the reporting period of the consideration required to settle the present obligation, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (where the effect of the time value of money is material).

          When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that the reimbursement will be received and the amount of the receivable can be measured reliably.

      18. Investments and other financial assets

          Depending on Avolta's business model for managing specific financial assets and liabilities, and on contractual terms, they are either measured at fair value (through OCI or P&L) or measured at amortized cost.

          1. Impairment of financial assets

             The Group assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at amortized cost and fair value through OCI. For trade receivables, receivables for refund from suppliers, and related services, the Group applies the simplified approach which requires expected lifetime losses to be recognized from initial recognition of the receivables.

          2. Offsetting of financial instruments

             Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously (see note 27).

      19. Compound financial instruments

          The component parts of convertible loan notes issued by the Group are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date. The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognized and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in equity until the conversion option is exercised, in which case, the balance recognized in equity will be transferred to share capital and share premium. Where the conversion option remains unex-ercised at the maturity date of the convertible loan note, the balance recognized in equity will be transferred to retained earnings. No gain or loss is recognized in profit or loss upon conversion or expiration of the conversion option.

          187

          3 Financial Report

          Consolidated Financial Statements

          Avolta Annual Report 2025

          Transaction costs that relate to the issue of the convertible loan notes are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognized directly in equity. Transaction costs relating to the liability component are included in the carrying amount of the liability component and are amortized over the lives of the convertible loan notes using the effective interest method.

      20. Derivatives and hedging activities

      Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. The Group designates certain derivatives as either:

      • hedges of the fair value of recognized assets or liabilities or a firm commitment (fair value hedges),

      • hedges of a particular risk associated with the cash flows of recognized assets and liabilities and highly probable forecast transactions (cash flow hedges), or

      • hedges of a net investment in a foreign operation (net investment hedges).

      At inception of the hedge relationship, the Group documents the economic relationship between hedging instruments and hedged items, including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. The Group documents its risk management objective and strategy for undertaking its hedge transactions. The fair values of derivative financial instruments designated in hedge relationships are disclosed in note 32.

      Derivatives that do not qualify for hedge accounting

      Certain derivative instruments do not qualify for hedge accounting and their changes in the fair value are recognized immediately in the statement of profit or loss, included in other finance income or finance expenses.

      Further details of derivative financial instruments are disclosed in note 32.

      188

      3 Financial Report

      Consolidated Financial Statements

      Avolta Annual Report 2025

   3. New standards, interpretations, and amendments

      The accounting policies adopted are consistent with those of the previous financial year, except for the following new or revised standards and interpretations adopted in these consolidated financial statements (effective January 1, 2025).

      New standards, interpretations and amendments adopted

      In 2025, the Group adopted minor amendments (e.g., IAS 21 amendments - Lack of Exchangeability) to existing accounting standards and interpretations which have no material impact on the Group's overall results and financial position, and the Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these minor amendments.

      New and amended standards issued but not yet effective

      The Group has not early adopted any of the amendments and new standards that have been issued but are not yet effective:

      • Amendment to IFRS 9 & IFRS 7 - Classification and Measurement of Financial Instruments

      • Volume 11 - Annual improvement to IFRS Accounting Standards

      • IFRS 18 - Presentation and Disclosures in Financial Statements

      • IFRS 19 - Subsidiaries without Public Accountability: Disclosures

      • Amendment to IFRS 9 & IFRS 7 - Contracts Referencing Nature-dependent Electricity

        The new standards and interpretations issued, but not yet effective are not expected to have a material impact from a qualitative and quantitative perspective, except IFRS 18.

        IFRS 18 replaces IAS 1 Presentation of Financial Statements while carrying forward many of the requirements in IAS 1. Introducing significant changes to disclosures, including of the consolidated statement of profit or loss, IFRS 18 will require changes to the presentation of Avolta's Group Consolidated Financial Statements. The new standard requires:

      • presentation of specified categories and defined subtotals in the statement of profit or loss;

      • providing disclosures on management-defined performance measures (MPMs) in the notes to the financial statements; and

      • specific aggregation and disaggregation.

      Purely aiming at presentation and disclosures, accounting for specific transactions and underlying results will not be impacted by IFRS 18.

      The Group is required to apply IFRS 18 for annual reporting periods beginning on or after 1 January 2027, with earlier application permitted. The amendments to IAS 7 and IAS 33, as well as the revised IAS 8 and IFRS 7, become effective when the Group applies IFRS 18. IFRS 18 requires retrospective application with specific transition provisions.

      189

      3 Financial Report

      Consolidated Financial Statements

      Avolta Annual Report 2025

4. Critical accounting judgments and key sources of estimation uncertainty

   The preparation of Avolta's financial statements requires management to make judgments, estimates, and assumptions that affect the reported amounts of income, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the reporting date.

   Key sources of estimation uncertainty

   The key assumptions concerning the future and other key sources of estimation include uncertainties at the reporting date, which may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial periods, are discussed below.

   Impairment tests

   Avolta annually tests goodwill and intangible assets with indefinite useful lives and assesses other non-financial assets for impairment indications. Where required, the Company performs impairment tests which are based on discounted cash flow models. Such discounted cash flow models require the use of several estimates, which, in combination, are considered critical accounting judgements and key sources of estimation uncertainty. None of them represents a major source of estimation uncertainty. The estimates and assumptions used are disclosed in note 18.

5. Segment information

   Avolta's risks and returns are predominantly affected by the fact that Avolta operates in different locations and geographies. Therefore, Avolta presents the segment information as it does internally to the Chief Operating Decision Maker (CODM) using geographical segments.

   The Company has following geographic operating segments:

   • Europe, Middle East and Africa (EMEA)

   • North America

   • Latin America (LATAM)

   • Asia Pacific (APAC)

   Costs, which cannot be allocated to the operating segments, such as global and corporate costs are included in "other". Consistent with internal reporting as presented to the CODM, Global Distribution Centers, including CHF 97 million of external turnover and CHF 29 million of CORE EBITDA for the year 2024, were reallocated to the operating segments to conform with the current year's presentation.

   The Group presents CORE EBITDA (Non-GAAP), which is used by the CODM to monitor the Group's performance. Management believes that this indicator provides the most relevant view on Avolta's business, representing an operational KPI that excludes the accounting impact resulting from IFRS 16 and adds the respective concession fees. Please refer to Avolta's alternative performance measures section for details.

   190

   3 Financial Report

   Consolidated Financial Statements

   Avolta Annual Report 2025

   Information reported to the CODM for the purpose of resource allocation and assessment of segment performance is focused on the geographical segments. The Group's reportable segments are therefore as follows:

   Turnover

   7,503 4,049 1,595 836 13,983

   - 13,983

   2025

   In millions of CHF

   Europe, Middle East and Africa (EMEA)1,2 North America 1

   Latin America (LATAM) Asia Pacific (APAC)

   Total operating segments

   Other

   Total

   Turnover

   7,278 4,297 1,571 579 13,725

   - 13,725

   2024

   In millions of CHF

   Europe, Middle East and Africa (EMEA)1,2 North America 1

   Latin America (LATAM) Asia Pacific (APAC)

   Total operating segments

   Other

   Total

   1 The Group generated 26.4 % (2024: 28.7 %) of its turnover in the US, 11.2 % (2024: 11.3 %), in the United Kingdom, and

   Dec 31, 2025

   28,924 25,786 7,816 6,310 68,836

   442 69,278

   11.2 % (2024: 11.2 %) in Italy.

   Core EBITDA (unaudited)

   828

   475

   149

   41

   1,493

   (169)

   1,324

   Core EBITDA (unaudited)

   778

   523

   126

   34

   1,461

   (194)

   1,267

   2 Avolta generated 3.1 % (2024: 3.1 %) of its turnover with external customers in Switzerland (domicile). Transactions between operating segments are on arm's length terms. Number of employees
   Number of employees (FTE)		Dec 31, 2024
   Europe, Middle East and Africa (EMEA)		27,735
   North America		27,705
   Latin America (LATAM)		7,078
   Asia Pacific (APAC)		5,896
   Total operating segments		68,414
   Other		336
   Total		68,750

   191

   3 Financial Report

   Consolidated Financial Statements

   Avolta Annual Report 2025

   Profit or loss reconciliation IFRS / CORE

   Please refer to pages 264 - 270 in Avolta's alternative performance measures chapter for more details on the reconciliation between the IFRS and CORE profit or loss.

   2025 In millions of CHF	IFRS	Acquisition rel. adj. (unaudited)			Lease adjustments (unaudited)			Fuel sales adjustments (unaudited)	CORE (unaudited)
   Net sales	13,760	-			-			(263)	13,497
   Advertising income	223	-			-			-	223
   Turnover	13,983	-			-			(263)	13,720
   Cost of sales	(5,029)	-			-			243	(4,786)
   Gross profit	8,954	-			-			(20)	8,934
   Lease expenses (IFRS) /Concession expenses (CORE)	(1,912)	-			(1,641)			-	(3,553)
   Personnel expenses	(2,778)	-			-			-	(2,778)
   Other expenses	(1,301)	-			(64)			-	(1,365)
   Other income	66	-			-			20	86
   Operating profit before D&A (IFRS) /CORE EBITDA	3,029	-			(1,705)			-	1,324
   Depreciation & impairment of PP&E	(317)	-			-			-	(317)
   Amortization & impairment of intangibles	(215)	171			-			-	(44)
   Depreciation & impairment right-of-use assets	(1,394)	-			1,394			-	-
   Operating profit (IFRS) /CORE EBIT	1,103	171			(311)			-	963
   Financial result	(634)	-			496			-	(138)
   Profit before taxes (IFRS) /CORE EBT	469	171			185			-	825
   Income tax	(130)	(47)			(3)			-	(180)
   Net profit (IFRS) /CORE Net profit	339	124			182			-	645

   2024 In millions of CHF	IFRS	Acquisition rel. adj. (unaudited)			Lease Adjustments (unaudited)			Fuel sales adjustments (unaudited)	CORE (unaudited)
   Net sales	13,493	-			-			(252)	13,241
   Advertising income	232	-			-			-	232
   Turnover	13,725	-			-			(252)	13,473
   Cost of sales	(4,924)	-			-			234	(4,690)
   Gross profit	8,801	-			-			(18)	8,783
   Lease expenses (IFRS) /Concession expenses (CORE)	(1,951)	-			(1,458)			-	(3,409)
   Personnel expenses	(2,749)	-			-			-	(2,749)
   Other expenses	(1,416)	-			(58)			-	(1,474)
   Other income	98	-			-			18	116
   Operating profit before D&A (IFRS) /CORE EBITDA	2,783	-			(1,516)			-	1,267
   Depreciation & impairment of PP&E	(306)	-			-			-	(306)
   Amortization & impairment of intangibles	(364)	248			54			-	(62)
   Depreciation & impairment right-of-use assets	(1,179)	-			1,179			-	-
   Operating profit (IFRS) /CORE EBIT	934	248			(283)			-	899
   Financial result	(587)	-			400			-	(187)
   Profit before taxes (IFRS) /CORE EBT	347	248			117			-	712
   Income tax	(87)	(74)			(1)			-	(162)
   Net profit (IFRS) /CORE Net profit	260	174			116			-	550

   192

   3 Financial Report

   Consolidated Financial Statements

   Avolta Annual Report 2025
   Financial position and other disclosures
   												Capital			Depreciation amortization
   At December 31, 2025			Total			Total			Income tax			expenditure			and
   In millions of CHF			assets			liabilities			expense			paid			impairment
   Europe, Middle East and Africa (EMEA)1			9,869			9,678			(83)			(262)			(1,017)
   North America 2			4,134			2,743			(19)			(203)			(555)
   Latin America (LATAM)			1,834			1,425			(15)			(30)			(121)
   Asia Pacific (APAC)			725			872			(8)			(15)			(232)
   Total operating segments			16,562			14,718			(125)			(510)			(1,925)
   Other			3,105			2,898			(5)			-			(1)
   Eliminations			(3,372)			(3,372)			-			-			-
   Total			16,295			14,244			(130)			(510)			(1,926)
   												Capital			Depreciation amortization
   At December 31, 2024			Total			Total			Income tax			expenditure			and
   In millions of CHF			assets			liabilities			expense			paid			impairment
   Europe, Middle East and Africa (EMEA)1			10,259			10,168			(17)			(279)			(1,109)
   North America 2			4,304			2,833			(40)			(162)			(540)
   Latin America (LATAM)			2,068			1,620			(20)			(26)			(143)
   Asia Pacific (APAC)			1,013			1,116			(7)			(14)			(56)
   Total operating segments			17,644			15,737			(84)			(481)			(1,848)
   Other 3			3,723			3,110			(3)			(2)			(1)
   Eliminations			(3,967)			(3,967)			-			-			-
   Total			17,400			14,880			(87)			(483)			(1,849)

   1 5.4 % (2024: 5.0 %) of the total non-current assets are located in Switzerland (domicile) and 27.2 % (2024: 27.2 %) in Spain.

   2 21.9 % (2024: 21.4 %) of the total non-current assets are located in the US.

   3 Assets and liabilities of Global Distribution Centers have been allocated to operating sgements, consistent with segment performance presentation.

   In millions of CHF

   Dec 31, 2024

   Total operating assets

   17,644

   Current assets of corporate and holding companies Non-current assets of corporate and holding companies Eliminations

   Total assets

   499

   3,224

   (3,967)

   17,400

   Dec 31, 2025

   16,562

   167

   2,938

   (3,372)

   16,295

   Reconciliation of assets

   193

   3 Financial Report

   Consolidated Financial Statements

   Avolta Annual Report 2025 Reconciliation of liabilities
   In millions of CHF	Dec 31, 2025	Dec 31, 2024
   Total operating liabilities	14,718	15,737
   Borrowings of corporate and holding companies, non-current	2,797	3,038
   Other non-segment liabilities	101	72
   Eliminations	(3,372)	(3,967)
   Total liabilities	14,244	14,880

6. Acquisitions of businesses

   1. 2025 Business Combinations

      The Group did not acquire or dispose of any business in 2025.

   2. 2024 Business Combinations

      On December 18, 2024, Avolta acquired 100 % of Free Duty from NWS Holdings Limited, Hong Kong. The cash purchase consideration of CHF 25 million was subject to customary working capital adjustments and was fully allocated to identifiable net assets which were recognized at fair value using information as of the acquisition date.

      During the twelve months following the acquisition, the Company recognized purchase price adjustments, including a revaluation of the preliminary recognized deferred consideration, goodwill, and concession rights.

      The combination is expected to generate synergies by leveraging duty-free allowances and access to high-volume railway stores at the MTR stations and has also strengthened Avolta's positioning in the Asia Pacific region, gaining access to 150 million travelers and increasing regional sales by CHF 250 million approximately.

      194

      3 Financial Report

      Consolidated Financial Statements

      Avolta Annual Report 2025

7. Net sales

   In line with the segment information (Note 5), CHF 83 million net sales from Global Distribution Centers for the year 2024 were reallocated to the operating segments along with refined allocations to conform with the current year's presentation.

   Net sales by product categories
   In millions of CHF		EMEA		North America		LATAM		APAC
   Food, Confectionery & Catering		2,347		3,127		198		217
   Perfumes and Cosmetics		1,759		174		542		90
   Tobacco & related products		1,490		36		93		302
   Wine and Spirits		696		63		383		185
   Luxury goods		310		150		237		28
   Fuel		263		-		-		-
   Other 1		510		460		97		3
   Total		7,375		4,010		1,550		825

   2025

   5,889 2,565 1,921 1,327 725 263 1,070 13,760

   				North
   In millions of CHF		EMEA		America		LATAM		APAC
   Food, Confectionery & Catering		2,243		3,307		178		220
   Perfumes and Cosmetics		1,748		178		522		89
   Tobacco & related products		1,373		36		94		83
   Wine and Spirits		695		68		406		131
   Luxury goods		300		169		236		42
   Fuel		252		-		-		-
   Other 1		529		500		92		2
   Total		7,140		4,258		1,528		567

   2024

   5,948 2,537 1,586 1,300 747 252 1,123 13,493

   1 Other includes electronics, literature, and publications.

   Net sales by market sector
   In millions of CHF		EMEA		North America		LATAM		APAC
   Duty-free		2,935		264		1,387		632
   Duty-paid		2,303		1,613		162		28
   Food & beverage		2,137		2,133		1		165
   Total		7,375		4,010		1,550		825

   2025

   5,218 4,106 4,436 13,760

   				North
   In millions of CHF		EMEA		America		LATAM		APAC
   Duty-free		2,827		268		1,373		353
   Duty-paid		2,223		1,736		155		35
   Food & beverage		2,090		2,254		-		179
   Total		7,140		4,258		1,528		567

   2024

   4,821 4,149 4,523 13,493

   195

   3 Financial Report

   Consolidated Financial Statements

   Avolta Annual Report 2025
   Net sales by channel
   In millions of CHF		EMEA		North America		LATAM		APAC
   Airports		5,327		3,924		1,351		407
   Motorways		1,394		-		-		-
   Border, downtown & hotel shops		186		42		54		303
   Cruise liners and seaports		101		-		141		1
   Railway stations and other		367		44		4		114
   Total		7,375		4,010		1,550		825

   2025

   11,009 1,394 585 243 529 13,760

   				North
   In millions of CHF		EMEA		America		LATAM		APAC
   Airports		5,115		4,148		1,332		408
   Motorways		1,381		-		-		-
   Border, downtown & hotel shops		182		48		51		43
   Cruise liners and seaports		88		-		142		1
   Railway stations and other		374		62		3		115
   Total		7,140		4,258		1,528		567

   2024

   11,003 1,381 324 231 554 13,493

   2025

   (1,915) (48) (14) 61 4 (1,912)

8. Lease (expenses) /income

   In millions of CHF

   Lease expenses

   Lease expenses for short-term contracts Lease expenses for low-value contracts Sublease income

   Change in provision for onerous contracts

   Total

   Variable lease expenses as defined by IFRS 16 are typically approximately 14 % of the Group's net sales.

   For further details, refer to note 16 for right-of-use assets, note 27 for lease obligation, and note 12 for gains in relation to modifications of lease contracts.

   2025

   (2,151) (297) (66) (264) (2,778)

9. Personnel expenses

In millions of CHF

Salaries and wages Social security expenses Retirement benefits

Other personnel expenses

Total

196

2024

(1,973)

(38)

(13)

68

5

(1,951)

2024

(2,129)

(329)

(66)

(225)

(2,749)

3 Financial Report

Consolidated Financial Statements

Avolta Annual Report 2025

1. Other income

   In millions of CHF	2025	2024
   Selling income	55	61
   Airport services income 1	-	14
   Other operational income	11	23
   Total	66	98

   1 Services provided in airline lounges ended in March 2024. Related costs are recognized in the corresponding expense line items.

   197

   3 Financial Report

   Consolidated Financial Statements

   Avolta Annual Report 2025

2. Finance expenses and finance income

   1. Finance expenses

2 2025: CHF 24 million (2024: CHF 7 million) gains in relation to modifications of lease contracts.

3 2024: CHF 30 million net gain relating to the revaluation of financial investments.

198

3 Financial Report

Consolidated Financial Statements

Avolta Annual Report 2025

tax losses, offset by CHF 7 million positive impacts from recognition of previously unrecognized tax losses, and CHF 30 million utilization of previously unrecognized tax losses.

2 Includes a mix of positive and negative effects on unrecognized temporary differences in various subsidiaries, with the prior year significantly impacted by the recognition of temporary effects in certain businesses expecting higher tax profitability.

3 Includes items related to Imposta Regionale sulle Attività Produttive (IRAP) in Italy (CHF 6 million), Base Erosion and Anti-Abuse Tax (BEAT) in the US (CHF 6 million), and a local minimum tax in Colombia (CHF 2 million).

The expected tax rate of 21.7 % approximates the average income tax rate of the countries where the Group is active, weighted by the profitability of the respective operations, adjusted for impairments. For 2025, there have been changes in tax rates noted for countries in which Avolta operates. The main impact in 2025 is the change in the effective tax rates in the United States (US).

199

3 Financial Report

Consolidated Financial Statements

Avolta Annual Report 2025

OECD Pillar Two model rules

The Group is within the scope of the OECD Pillar Two model rules as of January 1, 2024. Switzerland and other jurisdictions in which the Group operates have (substantively) enacted Pillar Two legislation. The Group has booked a potential top-up tax of CHF 3 million as of December 31, 2025 (2024: CHF 2 million). The transitional safe harbour calculation of the Avolta Group shows that approximately 82 % of the countries where the Group is present are exempt from making a full Pillar Two calculation and therefore exempt from any potential top-up tax.

During 2025, the Income Inclusion Rule in Switzerland has been enacted into force resulting in an increase of the accrual for 2025 over the prior period. Management continues monitoring the progress of the Pillar Two Rules and its implementation country by country.

Deferred income tax recognized in other comprehensive income or in equity

In millions of CHF

Recognized in other comprehensive income

Actuarial gain /(loss) on defined benefit plans

Total

200

2024

3

3

3 Financial Report

Consolidated Financial Statements

Avolta Annual Report 2025

1. Components of other comprehensive income

   Attributable to equity holders of Avolta AG

   2025 In millions of CHF			Employee benefit reserve			Hedging reserves			Translation reserves	Total	Non-controlling interests	Total equity
   Remeasurement of post-employment benefit plans			7			-			-	7	-	7
   Income tax effect			(1)			-			-	(1)	-	(1)
   Subtotal			6			-			-	6	-	6
   Exchange differences on translating foreign operations			-			-			(332)	(332)	(22)	(354)
   Cost of hedging			-			(5)			-	(5)	-	(5)
   Subtotal			-			(5)			(332)	(337)	(22)	(359)
   Other comprehensive income /(loss)			6			(5)			(332)	(331)	(22)	(353)

   Attributable to equity holders of Avolta AG

   2024 In millions of CHF			Employee benefit reserve			Hedging reserves			Translation reserves	Total	Non-controlling interests	Total equity
   Remeasurement of post-employment benefit plans			(9)			-			-	(9)	-	(9)
   Income tax effect			3			-			-	3	-	3
   Subtotal			(6)			-			-	(6)	-	(6)
   Exchange differences on translating foreign operations			-			-			179	179	17	196
   Net loss on hedge of net investment in foreign operations			-			-			(12)	(12)	-	(12)
   Subtotal			-			-			167	167	17	184
   Other comprehensive income /(loss)			(6)			-			167	161	17	178

   201

   3 Financial Report

   Consolidated Financial Statements

   Avolta Annual Report 2025

   Total
   2,368
   445 (84) (5) (296) 2,428
   (1,000)
   (318) 75 196 (1,047)
   (72)
   1 6 9 (56)
   1,325

2. Property, plant and equipment

   2025 In millions of CHF		Leasehold improvements		Buildings		Furniture fixtures		Computer hardware		Vehicles		Work in progress
   At cost Balance at January 1		1,117		71		882		98		8		192
   Additions		64		1		46		7		1		326
   Disposals		(47)		(3)		(31)		(2)		-		(1)
   Reclassification		147		-		107		16		-		(275)
   Currency translation adjustments		(164)		(1)		(99)		(13)		(1)		(18)
   Balance at December 31		1,117		68		905		106		8		224
   Accumulated depreciation Balance at January 1		(426)		(13)		(498)		(58)		(5)		-
   Additions		(167)		(3)		(127)		(20)		(1)		-
   Disposals		44		-		29		2		-		-
   Currency translation adjustments		109		1		74		11		1		-
   Balance at December 31		(440)		(15)		(522)		(65)		(5)		-
   Impairment Balance at January 1		(42)		(2)		(24)		(2)		-		(2)
   Reversal of impairment		1		-		-		-		-		-
   Disposals		1		2		2		-		-		1
   Currency translation adjustments		6		-		1		1		-		1
   Balance at December 31		(34)		-		(21)		(1)		-		-
   Carrying amount At December 31, 2025		643		53		362		40		3		224

   202

   3 Financial Report

   Consolidated Financial Statements

   Avolta Annual Report 2025

   2024 In millions of CHF At cost		Leasehold improvements			Buildings			Furniture fixtures			Computer hardware			Vehicles			Work in progress	Total
   Balance at January 1		823			62			791			59			6			205	1,946
   Business combinations		4			-			-			-			-			-	4
   Additions		60			1			60			11			1			298	431
   Disposals		(35)			-			(143)			(1)			(1)			(8)	(188)
   Reclassification within classes		170			9			109			22			1			(311)	-
   Currency translation adjustments		95			(1)			65			7			1			8	175
   Balance at December 31		1,117			71			882			98			8			192	2,368
   Accumulated depreciation Balance at January 1		(227)			(10)			(459)			(39)			(3)			-	(738)
   Additions		(161)			(3)			(129)			(12)			(1)			-	(306)
   Disposals		28			-			139			-			1			-	168
   Currency translation adjustments		(66)			-			(49)			(7)			(2)			-	(124)
   Balance at December 31		(426)			(13)			(498)			(58)			(5)			-	(1,000)
   Impairment Balance at January 1		(43)			(3)			(27)			(1)			-			(3)	(77)
   Additions		-			-			(1)			-			-			-	(1)
   Disposals		6			-			5			-			-			-	11
   Currency translation adjustments		(5)			1			(1)			(1)			-			1	(5)
   Balance at December 31		(42)			(2)			(24)			(2)			-			(2)	(72)
   Carrying amount At December 31, 2024		649			56			360			38			3			190	1,296

   203

   3 Financial Report

   Consolidated Financial Statements

   Avolta Annual Report 2025

3. Right-of-use assets

   2025 In millions of CHF At cost		Shops		Other Buildings		Vehicles		Other
   Balance at January 1		12,664		317		13		5
   Additions		568		22		5		2
   Contract expirations		(86)		(3)		(4)		-
   Lease modifications		628		36		1		(1)
   Currency translation adjustments		(660)		(21)		(1)		(1)
   Balance at December 31		13,114		351		14		5
   Accumulated depreciation Balance at January 1		(4,749)		(141)		(6)		(3)
   Additions		(1,343)		(41)		(3)		(1)
   Contract expirations		56		3		4		-
   Lease modifications		11		1		(1)		-
   Currency translation adjustments		286		10		-		1
   Balance at December 31		(5,739)		(168)		(6)		(3)
   Impairment Balance at January 1		(309)		(6)		-		-
   Additions		(6)		-		-		-
   Contract expirations		30		-		-		-
   Lease modifications		2		6		-		-
   Currency translation adjustments		17		-		-		-
   Balance at December 31		(266)		-		-		-
   Carrying amount At December 31, 2025		7,109		183		8		2

   Total
   12,999
   597 (93) 664 (683) 13,484
   (4,899)
   (1,388) 63 11 297 (5,916)
   (315)
   (6) 30 8 17 (266)
   7,302

   204

   3 Financial Report

   Consolidated Financial Statements

   Avolta Annual Report 2025

   2024 In millions of CHF At cost			Shops			Other Buildings			Vehicles			Other	Total
   Balance at January 1			11,096			259			10			3	11,368
   Business combinations 1			515			-			-			1	516
   Additions			216			8			6			-	230
   Contract expirations			(212)			(7)			(3)			(1)	(223)
   Lease modifications			711			45			-			2	758
   Currency translation adjustments			338			12			-			-	350
   Balance at December 31			12,664			317			13			5	12,999
   Accumulated depreciation Balance at January 1			(3,708)			(114)			(6)			(2)	(3,830)
   Additions			(1,134)			(34)			(3)			(1)	(1,172)
   Contract expirations			209			11			3			-	223
   Lease modifications			14			1			-			-	15
   Currency translation adjustments			(130)			(5)			-			-	(135)
   Balance at December 31			(4,749)			(141)			(6)			(3)	(4,899)
   Impairment Balance at January 1			(295)			(6)			-			-	(301)
   Additions			(7)			-			-			-	(7)
   Lease modifications			3			-			-			-	3
   Currency translation adjustments			(10)			-			-			-	(10)
   Balance at December 31			(309)			(6)			-			-	(315)
   Carrying amount At December 31, 2024			7,606			170			7			2	7,785

   1 Refer to business acquisition of Free Duty from NWS Holdings Limited, Hong Kong (note 6.2).

   205

   3 Financial Report

   Consolidated Financial Statements

   Avolta Annual Report 2025

4. Intangible assets and goodwill

   						Concession rights
   2025 In millions of CHF At cost			Acquisition Related 1			Plain			Brands			Other	Total	Goodwill
   Balance at January 1			4,857			87			367			265	5,576	3,221
   Business combinations			(5)			-			-			-	(5)	(7)
   Additions			-			5			-			50	55	-
   Disposals			(516)			(14)			-			(6)	(536)	-
   Reclassification			-			-			-			5	5	-
   Currency translation adjustments			(361)			(14)			(12)			(15)	(402)	(223)
   Balance at December 31			3,975			64			355			299	4,693	2,991
   Accumulated amortization
   Balance at January 1			(2,564)			(54)			(3)			(178)	(2,799)	-
   Additions			(198)			(1)			-			(31)	(230)	-
   Disposals			385			14			-			6	405	-
   Currency translation adjustments			203			11			-			14	228	-
   Balance at December 31			(2,174)			(30)			(3)			(189)	(2,396)	-
   Impairment
   Balance at January 1			(813)			(20)			(6)			(3)	(842)	(110)
   Additions			-			-			(12)			-	(12)	-
   Reversal of impairment			27			-			-			-	27	-
   Disposals			131			-			-			-	131	-
   Currency translation adjustments			59			2			1			1	63	15
   Balance at December 31			(596)			(18)			(17)			(2)	(633)	(95)
   Carrying amount
   At December 31, 2025			1,205			16			335			108	1,664	2,896

   1 As of December 31, 2025, the Group's acquisition-related concession rights with a carrying amount of CHF 1,205 million are largely originating from Autogrill (CHF 542 million; 7 years weighted-average remaining useful life), World Duty Free Group (CHF 296 million; 5 years weighted-average remaining useful life), and Hellenic Duty Free (CHF 248 million; 22 years remaining useful life).

   206

   3 Financial Report

   Consolidated Financial Statements

   Avolta Annual Report 2025

   						Concession rights
   2024 In millions of CHF At cost			Acquisition Related			Plain			Brands			Other	Total	Goodwill
   Balance at January 1			4,770			76			359			286	5,491	3,083
   Business combinations			21			-			-			-	21	7
   Additions			-			-			-			49	49	-
   Disposals			(165)			-			-			(81)	(246)	-
   Currency translation adjustments			231			11			8			11	261	131
   Balance at December 31			4,857			87			367			265	5,576	3,221
   Accumulated amortization
   Balance at January 1			(2,355)			(45)			(3)			(189)	(2,592)	-
   Additions			(248)			(1)			-			(61)	(310)	-
   Disposals			165			-			-			81	246	-
   Currency translation adjustments			(126)			(8)			-			(9)	(143)	-
   Balance at December 31			(2,564)			(54)			(3)			(178)	(2,799)	-
   Impairment
   Balance at January 1			(728)			(19)			(5)			(3)	(755)	(104)
   Additions			(54)			-			-			-	(54)	-
   Currency translation adjustments			(31)			(1)			(1)			-	(33)	(6)
   Balance at December 31			(813)			(20)			(6)			(3)	(842)	(110)
   Carrying amount
   At December 31, 2024			1,480			13			358			84	1,935	3,111

   207

   3 Financial Report

   Consolidated Financial Statements

   Avolta Annual Report 2025

5. Impairment tests of tangible and intangible assets

   Goodwill and brand names are subject to impairment testing, performed on an annual basis or when indicators of impairment exist. Other tangible and intangible assets, including concession rights, are tested for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable.

   1. Impairment test of goodwill

      The Company's goodwill impairment tests are based on discrete plans for the years 2026 - 2030 and for periods after 2030, for which the implied sales growth is a key assumption, Avolta uses growth rates based on inflation and externally derived expected passenger growth per segment. Other assumptions used include discount rates and long-term growth rates per Group of Cash Generating Units (GCGU):

      2025	2024
      8.87 %	8.44 %
      8.96 %	8.48 %
      8.96 %	8.81 %
      10.24 %	9.57 %

      2025	2024
      11.57 %	11.02 %
      12.09 %	11.44 %
      12.51 %	12.49 %
      13.83 %	12.19 %

      2025	2024
      2.63 %	2.86 %
      2.03 %	2.54 %
      2.01 %	2.51 %
      3.28 %	2.71 %

      Post-tax discount rates Pre-tax discount rates Long-term growth rate

      Group of cash generating units in percentage (%)

      Europe, Middle East and Africa (EMEA)

      North America

      Latin America (LATAM) Asia Pacific (APAC)

      Avolta has performed sensitivity tests over these assumptions. Reasonably possible changes to these assumptions would, in isolation, not lead to the recognition of impairment losses.

      Dec 31, 2025

      1,576 857 430 33 2,896

      Goodwill is recognized from the acquisition of businesses by the Group and is assigned to the GCGUs. The GCGUs reflect the operating segments expected to benefit from the synergies related to acquisitions. For impairment testing purposes, the carrying amount has been allocated as follows:

      In millions of CHF

      Europe, Middle East and Africa (EMEA) North America

      Latin America (LATAM) Asia Pacific (APAC) Total

      208

      Dec 31, 2024

      1,640

      934

      493

      44

      3,111

      3 Financial Report

      Consolidated Financial Statements

      Avolta Annual Report 2025

   2. Impairment test of brand names

      Avolta's operations apply several retail and food & beverage concepts which use different brand names. Sales growth rates are determined in reference to expected passenger growth and inflation. Other assumptions used for determining the value-in-use of brand names for impairment testing purposes are:

      2025	2024
      8.70 %	8.55 %
      9.16 %	8.91 %
      8.86 %	8.65 %
      9.03 %	8.67 %
      9.27 %	8.89 %

      Post-tax discount rates

      Brand names

      in percentage (%)

      Dufry

      Hudson News World Duty Free HMSHost Autogrill

      Avolta has performed sensitivity tests over these assumptions. Reasonably possible changes to these assumptions would, in isolation, not lead to the recognition of impairment losses. In 2025, the Group recognized an impairment loss of CHF 12 million on one of its brands as it discontinued the use of the underlying brand concept.

   3. Impairment test of tangible and other intangible assets