Annual report 2024 PDF

6 A N N U A L R E P O R T 2 0 2 4   |   F l a g s h i p P r o j e c t s

F L A G S H I P P R O J E C T S

BKW continues to advance the holistic energy transition

In this annual report, we feature seven flagship projects - a small selection from our 200 Group companies along the entire value chain.

www.bkw.ch/ar24

CASTELLANETA WIND FARM

Margarita Aleksieva, Head of Wind and Solar, BKW Energy Production

LINDT & SPRÜNGLI

Marc Hasler, Sigren Project Manager, BKW Building Solutions

SCHATTENHALB SOLAR TEST FACILITY

Dear Shareholders,

Ladies and Gentlemen,

We are pleased to present you with a strong result for 2024. BKW increased its EBIT by

27.3 percent year-on-year to CHF 789.9 million. Net operating profit amounted to CHF 550.4 mil- lion. It is particularly pleasing that the Services area, which is now managed as the Infra­ structure & Buildings business segment, achieved a positive result following the completion of the two-year program to increase profitability. Now it is time for BKW to implement the "Solutions

2030" strategy adopted in 2024.

Strong Energy business

In the past year, the Energy business, which under the new strategy is now called Energy Solutions, once again made a significant contri­ bution to the overall result. Its EBIT increased by 9.7 percent compared to the previous year. Three one-off effects accumulated: In 2024, trading again benefited from the high volatility of electricity prices. Above-average precipitation levels ensured unusually high electricity pro­ duction at hydropower plants. And the performance of the Decommissioning and Waste Disposal Funds was well above expectations.

The Grid business segment, now renamed Power Grid, also made a stable contribution to earnings in 2024. In order for the power grid to cope with the expansion of photovoltaic systems, heat pumps and charging stations, it must continue to be expanded rapidly. BKW therefore increased its investments in this area to CHF 161 million

in 2024. BKW has also launched the nationwide expansion of smart meters in the past year, which will continue until 2028.

Infrastructure & Buildings had a positive result. Following a loss in 2023, Services, which is now managed as Infrastructure & Buildings, closed 2024 with positive earnings of CHF 56.9 million. This pleasing result is due to the two-year program to increase profitability, which was completed at the end of 2024.

Implementation of the "Solutions 2030" strategy

On November 8, 2024, BKW presented its "Solu- tions 2030" growth strategy at the Capital Markets Day, which we will now implement over the next six years. BKW is thus optimally positioned for the new energy world. Our three business segments - Energy Solutions, Power Grid and Infrastructure & Buildings - enable us to offer our customers forward-looking solutions covering all aspects of the energy transition, from renewable energy production, marketing and distribution to efficient use in infrastructures and buildings. This holistic approach will enable the company to increase its EBIT to CHF 1 billion by 2030 and invest around CHF 4 billion over the next six

years, half of which will be in Switzerland.

In addition, BKW as a Group is aiming for net- zero emissions in Scopes 1 and 2 by 2040.

Stable result also expected in 2025

BKW expects another strong result in the Energy Solutions business segment in 2025. The Power Grid business segment is expected to make another solid contribution to EBIT, while BKW will further increase profitability in the Infrastruc- ture & Buildings business segment. Overall, BKW expects a positive result for the current 2025 fiscal year with EBIT guidance of CHF 650 to

750 million.

The positive outlook shows that BKW is also on track for success in the new year and has already begun to implement the "Solutions 2030" strategy. We would therefore like to take this opportunity to thank our customers, our suppliers and part- ners, our shareholders and our employees, who work hard for BKW every day. We look forward to continuing on this successful trajectory with all of them.

Kind regards,

Why does BKW need a new strategy?

BKW's current strategy only extends until 2026. So it's time to look a little further into the future. In addition, the markets and needs of customers have changed massively in recent years. We are now responding to this.

What is at the heart of the new strategy?

The name "Solutions 2030" says it all: We want to offer our customers solutions that prepare them for the challenges of the energy transition.

Hasn't BKW already been doing this?

Yes, but we want to focus even more strongly on sustainability. BKW is pursuing ambitious sustain­ ability goals in the areas of climate, energy, nature and people with its "Solutions 2030" strat- egy. This means that we are reducing our emis- sions, systematically continuing the expansion of renewable energies, offering customized solutions for our customers, and increasing the energy efficiency of infrastructure and buildings. Our new strategy focuses on growth, excellence and sustainability.

Why is this interesting for BKW investors?

First, BKW operates in markets that offer attractive growth opportunities. Second, BKW has an excellent track record. And third, investors are also encouraged to invest more sustainably. And we can offer this with our sustainability goals.

So by investing in BKW, shareholders are contributing to a renewable energy future?

Exactly. This also makes BKW attractive for green investment funds, which only invest in companies with a sustainable business model.

Have investors put pressure on BKW to become

more sustainable more quickly?

The pressure for greater sustainability is increasing from all sides: From investors, capital pro­ viders, regulators. But also from our customers. And our employees. They all want a sustainable BKW - and so do I. This is a major opportunity for us to continue to grow and remain attractive. BKW can not only offer more sustainable solutions that are actually in demand in the market, but also act as a sustainable company.

What specific sustainability goals has BKW set for itself with the new strategy?

In the social area, our employees are particularly important. That is why we are continuing to invest in occupational health and safety. And driving forward initiatives such as diversity and inclusion as well as skills, leadership and talent develop- ment. In addition, BKW will halve the CO2 intensity of its business activities in Scope 1 and 2 by 2030 compared to 2022. We want to achieve net zero in this area by 2040.