Half-Year Report 2024

Dear Shareholders,

Ladies and Gentlemen,

We are pleased to report an extremely positive first half of 2024. Approval of the Electricity Act on June 9 by the Swiss people is both a mandate and an incentive for BKW to continue driving forward projects for the expansion of renewables in dialogue with all stakeholders. BKW continued its successful course and can report strong results for the first half of the year.

BKW increased its EBIT by 3.2 percent year-on- year to CHF 438 million. Operating net profit amounted to CHF 303 million.

Strong Energy business

The Energy business once again made a significant contribution to the overall result. Although revenue was lower than in the same period of the previous year due to the lower price level on the energy markets, EBIT was maintained at the previous year's level. The main drivers of this

positive development were the successful energy management and trading result, higher hedged electricity prices, and increased production of hydropower plants.

Solid Grid business

The Grid business again made a stable contribution to earnings in the first half of 2024. The electricity grid must be expanded quickly so that it can cope with the expansion of photovoltaic­ systems. Every year BKW invests over CHF 120 million in a secure grid infrastructure. BKW has also launched the nationwide expansion of smart meters, which will last until 2028.

Upward trend in the Services business

Revenue in the Services business was higher in the first half of 2024 than in the same period of the previous year. BKW has a growing order backlog - from building technology to supply infrastructure and engineering. The two-year program to increase profitability is also showing results : In the first half of 2024, BKW was able to match the previous year's performance in the Services business.

Implementation of the sustainability strategy

BKW made further important progress in the area of sustainability in the first half of 2024. It has started to convert its 3,000 vehicles to electric drive. BKW's goal is to fully electrify its vehicle fleet by 2030. BKW has also started working with the responsible purchasing organizations to integrate suppliers in a sustainable procurement process. BKW has also integrated sustainability into its remuneration system.

Increase in EBIT guidance

With its three business areas of Energy, Grid and Services, BKW will continue to invest along the entire energy value chain in the second half of 2024. This ranges from energy production, storage and trading to distribution, supply infra- structure, energy-efficient buildings and electro- mobility.

Driven by the successful energy management and trading performance in the first half of 2024, BKW has revised its guidance upwards. BKW now expects EBIT in the range of CHF 700 to 800 million­ for the 2024 fiscal year. In addition, BKW is currently focusing on revising its 2030 Strategy. BKW will present the details at the Capital Markets Day on November 8, 2024.

These expectations indicate that : BKW has also been very successful this year. This is only possible thanks to our customers, suppliers, share- holders, and our employees, who are committed to BKW every day. We look forward to continuing on this successful path with all of you in the second half of the year.

Kind regards

EBIT exceeded the previous year's figure by 3%

In the first half of 2024, BKW once again exceeded the previous year's very positive result. EBIT increased by 3% to CHF 438 million. These strong earnings are the result of BKW's business model with the three business area of Energy, Grid and Services, as a combination of stable business areas and growth areas.

The increase in the operating result is attributable to the Grid business. The Energy business generated EBIT on par with the same period of the previous year, with positive and negative influences offsetting each other.

In the first half of 2024, the Services business increased its revenue primarily through organic growth. The order situation remains very good and is being driven mainly by Germany.

Earnings increased slightly compared to the same period in the previous year.

Operating net profit, excluding the performance of the funds for decomissioning and waste disposal (STENFO), amounted to CHF 303 million and was thus at the previous year's level. Thanks to the positive performance of the funds for decomissioning and waste disposal (STENFO), the reported net profit amounted to CHF 363 million and was 7% higher year-on-year.

BKW will benefit from the successful energy management and trading performance in the first half of 2024 and is therefore increasing its guid- ance. BKW now expects EBIT in the range of CHF 700 to 800 million for the 2024 fiscal year.

Increased EBIT and net profit

CHF millions

Sales

Energy procurement/transport

Operating costs

EBITDA

Depreciation, amortisation and impairment

Income from associates

EBIT

Financial result excluding change in value of STENFO

Income taxes excluding change in value of STENFO

Operating net profit 1

Change in value of STENFO net of tax

Net profit

1 st half-year 2024

2,330.0

- 620.5

- 1,127.5

581.9

- 167.7

24.1

438.3

- 41.8

- 93.9

302.6

60.0

362.5

1 st half-year 2023

2,397.1

- 799.9

- 1,059.1

538.1

- 136.6

23.0

424.5

- 50.2

- 70.1

304.2

35.8

340.0

• change
  - 3% 

- 22% 

6% 

8% 

23% 

5%

3% 

- 17%

34% 

- 1% 

7% 

Better financial result and positive fund performance

The comparable financial result, excluding the performance of STENFO, improved by CHF 8 million­ to CHF - 42 million as a result of exchange rate gains. The income tax expense, excluding deferred taxes on the change in value of the funds, increased by CHF 24 million to CHF 94 million. Various factors, such as lower participation deductions in Switzerland and non-reported deferred tax assets, contributed to this increase.

Due to timing effects, there are limits to the interpretation of the applicable taxes at mid-year. BKW does not expect any impact from the effects of the Global Minimum Tax regulation (Pillar 2).

The assets in STENFO achieved a positive performance of 6.1% in the reporting period and are above the target return of 2.1% and the return of the previous period of 3.9%.

Lower cash flow from operating activities

CHF millions

Cash flow from operating activities before utilisation of nuclear provisions

• Payments for decommissioning and disposal Cash flow from operating activities

Cash flow from investing activities before reimbursement from STENFO

• Reimbursements from STENFO Cash flow from investing activities

Cash flow from financing activities

Cash and cash equivalents 30.06

1 st half-year 2024

219.7

- 48.8

170.9

- 183.6

34.8

- 148.7

- 218.3

586.8

1 st half-year 2023

546.5

- 55.4

491.1

- 181.6

16.7

- 164.9

- 232.5

889.9

• change
  - 60% 

- 65%

To improve comparability and assist with inter- pretation, BKW uses the cash flow indicators before utilization of nuclear provisions and payments for decommissioning and disposal of the Mühleberg Nuclear Power Plant. Operating cash flow before utilization of nuclear provisions decreased to CHF 220 million compared to the previous period (previous year: CHF 546 million). At CHF 171 million, the reported cash flow from operating activities is also lower than in the previous period. The main reason for this reduction is an increase in net working capital of CHF 179 million compared to a reduction of CHF 98 million in the previous period.

Inventories increased by CHF 50 million, in particular due to higher gas inventories in trading. Unbilled work (work in progress), particularly at Infra Services due to numerous major orders in the German high-voltage market, led to a further increase of around CHF 130 million.

BKW invested CHF 222 million in non-current assets and acquisitions in the first half of 2024 (previous year: CHF 233 million). Around 63% of this went into growth investments. The majority of the acquisition payments related to outstanding purchase price payments from previous years. Most of the CHF 84 million investment in replacement and maintenance was dedicated to modernization of the distribution grid, with a total investment of CHF 44 million.

Operational flexibility ensured by high equity and adequate long-term debt capital

CHF millions

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Shareholders' equity

Balance sheet total

30.06.2024

2,685.5

8,415.3

1,892.1

3,885.8

5,323.0

11,100.8

31.12.2023

2,780.1

8,231.4

2,162.8

3,801.8

5,047.0

11,011.6

• change
  - 3% 
  2% 

- 13%

2% 

5%

1% 

The balance sheet has remained largely unchanged compared to the same period of the previous year. Equity increased by CHF 0.3 billion in the first six months of 2024 and amounted to a solid CHF 5.3 billion as of the balance sheet date. In addition to the strong operating result and the positive performance of STENFO, the recognition of hedging gains (hedge accounting) as well as actuarial gains from the calculation of pension obligations (IAS 19) also strengthened equity. Notwithstanding the dividend payment, the equity ratio increased further to 48% (end of 2023: 46%).

BKW's financing situation is at a very good level. As a result of the decrease in cash and cash equivalents and current financial assets, due to the increase in net working capital, in conjunction

with the dividend payment and stable financial liabilities, net debt temporarily increased by CHF 177 million to CHF 1,129 million as of the balance sheet date. However, with cash and cash equivalents of CHF 587 million, BKW has sufficient short-term liquidity and remains operationally flexible. In addition, BKW still has unused committed credit lines totaling CHF 1 billion. It would also be possible to increase the credit line by a further CHF 0.5 billion, if required. The financial framework necessary for implementing and safeguarding financial and operational flexibility is sufficient and ensured at all times. Net financial debt is also at a low level relative to EBITDA, which further increases operational flexibility.