Consolidation principles

Basis for the Consolidated financial statements

The consolidation of the Group’s financial statements provides a true and fair view of the Vetropack Group’s assets, financial position and results of operations, and presents the Group as a single economic entity for reporting purposes.

The consolidated financial statements of Vetropack Holding AG and its subsidiaries are prepared in accordance with all applicable Accounting and Reporting Recommendations (Swiss GAAP FER), the provisions of the Listing Rules issued by SIX Exchange Regulation, and the requirements of Swiss company law.

The revised version of Swiss GAAP FER 30 'Consolidated Financial Statements' is applicable from 1 January 2024. The effects on the annual financial statements are limited to the presentation in the consolidated statement of changes in equity, where foreign currency translation differences are now disclosed separately. No retrospective implementation of the new regulations on offsetting goodwill against equity was applied.

Consolidation scope

The consolidated financial statements include Vetropack Holding Ltd and all domestic and foreign subsidiaries in which Vetropack Holding Ltd holds, directly or indirectly controls, which normally is the case when more than 50 percent of the voting rights are held. These entities are fully consolidated, meaning that their assets, liabilities, income and expenses are included in the consolidated accounts in full, and all material intra‑Group balances and transactions – including receivables and payables, income and expenses, and unrealised intercompany profits – are eliminated. Minority interests are presented separately in the consolidated statement of changes in equity and income statement.

Investments with a shareholding of between 20 percent and 50 percent are accounted for using the equity method. The Group’s share of net assets is reported under ’Financial assets’ while the corresponding share of net income is recognised in the financial result in the consolidated income statement.
Holdings of less than 20 percent are carried at acquisition cost, less any necessary value adjustments.

An overview of the companies included in the Vetropack Group and the respective consolidation methods applied is provided here.

Capital consolidation

Capital consolidation is performed using the purchase method. Under this approach, the acquisition cost of a subsidiary is offset against the fair value of its net assets at the acquisition date, determined in accordance with Group accounting principles. Any goodwill arising on acquisition is charged directly to the Group’s retained earnings in the year of acquisition.

If the Group loses control of a subsidiary, any related foreign currency translation differences are reclassified to profit or loss. In the 2025 and 2024 financial year, no loss of control occurred; consequently, no foreign currency translation differences were recognised in the consolidated income statement.

Foreign exchange (FX) differentials

Financial statements prepared by foreign Group companies in their respective local currencies are translated into Swiss francs as follows:

• Balance sheet figures: translated at the exchange rates prevailing on the reporting date.
• Income statement figures: translated at the average exchange rates for the year.
• Cash flow statement figures: translated using a combination of average and year‑end exchange rates, as appropriate.

Exchange differences arising from the translation of foreign subsidiaries’ financial statements are recognised directly in retained earnings without affecting net income. Exchange differences resulting from the translation of transactions and balance sheet items denominated in foreign currencies are recorded by the respective Group company with an impact on net income.
Foreign exchange effects related to long‑term equity‑like financing arrangements, such as loans that have the character of shareholders’ equity, are recognised in consolidated shareholders’ equity and do not affect net income.