Half-Year Report 2026

B K W G R O U P

Half-Year Report 2026

We create spaces for life.

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F A C T S A N D F I G U R E S

In a nutshell

Total operating income EBIT

in CHF million in CHF million

Net profit Investments and acquisitions

in CHF million in CHF million

Cash flow from operating activities Number of employees

in CHF million

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‌Table of Contents

4 Letter to Shareholders

1. Financial Result

2. BKW posts stable performance in the first half of the year

1. Half-Year Financial Statements of the BKW Group

2. Consolidated Income Statement

3. Consolidated Statement of Comprehensive Income

4. Consolidated Balance Sheet

5. Changes in Consolidated Equity

6. Consolidated Cash Flow Statement

7. Notes to the Half-Year Financial Statements

1. Investor Information

2. Key Facts on the BKW Share, Bonds, and Financial Calendar

Markus Späth is a project manager at LTB Leitungsbau GmbH, part of the BKW network.

As part of the ULTRANET project, LTB Leitungsbau is upgrading existing power lines and erecting numerous new pylons on the section between Mannheim and Philippsburg (DE). The goal: to transmit both direct current and alternating current simultaneously along the same route.

ULTRANET increases transmission capacity for electricity from northern to southern Germany.

‌L E T T E R T O S H A R E H O L D E R S

BKW posts stable performance in the first half of the year

The BKW Group1 looks back on a challenging first half-year. An unfavorable combination of environmental factors-low water levels coupled with light winds-coincided with unexpected geopolitical developments. While the Power Grid and Infrastructure & Buildings business segments delivered the expected stable results at the operating profit (EBIT) level compared with the previous year, earnings in the Energy Solutions business segment were temporarily impacted in particular by market disruptions resulting from the situation in the Middle East. A stronger second half of the year is expected for Infrastructure & Buildings and Energy Solutions, and Power Grid is likely to remain stable.

Dear Shareholders Ladies and Gentlemen,

BKW closed the first half of 2026 with solid total operating income of CHF 2,182.5 million, down 3.1% from the previous year (first half of 2025:

CHF 2,251.8 million). The steady positive performance of the Power Grid and Infrastructure & Buildings business segments was not enough to fully offset the temporary decline in earnings in the Energy Solutions business segment. Earnings

before interest, income taxes, depreciation and amortization (EBITDA) declined by 10.1%

to CHF 387.9 million (first half of 2025:

CHF 431.3 million), while earnings before interest and taxes (EBIT) fell by 15.1% to CHF 263.7 million (first half of 2025: CHF 310.7 million). Thanks to the strong performance of the Mühleberg Nuclear Power Plant's (KKM) decommissioning and waste disposal funds, net profit increased by 7.0% year-over-year to CHF 217.6 million (first half of 2025: CHF 203.3 million). Adjusted for this effect, the

1 The BKW Group comprises BKW AG and its Group companies. For better readability, the Group will be referred to below as BKW. Where the text relates to BKW AG or BKW Energie AG, this is expressly mentioned.

operating net profit2 came in at

CHF 169.1 million, below the previous year's figure (first half of 2025: CHF 210.4 million).

In its Energy Solutions business segment, BKW brings together energy generation and marketing, as well as standardized and structured energy solutions for customers. Water production in the first half of the year was once again characterized by challenging hydrological conditions. Low water levels resulted in lower production than in the previous year. Wind power plants also remained at a low production level due to the continued weak wind conditions.

In addition, the electricity trading business in the Energy Solutions business segment was temporarily impacted by market disruptions resulting from the situation in the Middle East. At the same time, the business segment benefited from the fact that electricity volumes for the 2026 calendar year had already been hedged three years ago at high futures market prices. In addition, price fluctuations in grid-stabilizing system services and intraday trading (i.e., electricity prices for the current day) created additional revenue opportunities, particularly during the heat wave in June. Finally, the performance of the Leibstadt Nuclear Power Plant's decommissioning and waste disposal funds had a positive impact on earnings.

Against the backdrop of these partially offsetting effects, Energy Solutions generated total operating income of CHF 950.7 million, 4.2% below the previous year (first half of 2025: CHF 992.0 million). Due to the exceptional market conditions, EBITDA decreased by 21.2% to CHF 193.7 million (first half of 2025: CHF 245.7 million), and EBIT decreased by

-24.2% to CHF 156.9 million (first half of 2025:

CHF 207.0 million).

The Power Grid business segment is responsible for the construction, operation and maintenance of BKW's own distribution grid. Total operating income for the first half of 2026 amounted to

CHF 322.8 million, slightly higher than the previous year (first half of 2025: CHF 319.3 million). EBITDA increased by 2.3% to CHF 122.8 million (first half of 2025: CHF 120.0 million), while EBIT decreased by

-1.9% to CHF 68.0 million (first half of 2025:

CHF 69.3 million). Energy transmission in the first half of the year exceeded the previous year's figure. These higher transmission volumes had a positive impact on total operating income and EBIT. On the other hand, depreciation and amortization increased compared with the same period last year

due to continued high levels of investment in the network infrastructure.

The Infrastructure & Buildings business segment includes architectural and engineering services, building technology, and services for energy, water, and telecommunications networks. Total operating income declined by 2.6%, from CHF 957.5 million to CHF 932.8 million. The decline of CHF -24.6 million is attributable in particular to BKW's consistent focus on profitable growth. As a result, the business segment increased EBITDA by 5.8%

to CHF 75.7 million (first half of 2025: CHF 71.6 million). EBIT grew by 12.8% to CHF 34.7 million (first half of 2025:

CHF 30.8 million), while the EBIT margin increased by 0.5 percentage points to 3.7%. The strong order book, featuring high-margin projects in engineering and high-voltage line construction, contributed significantly to this increase in profitability. The service business in building technology was also further expanded. In contrast, market conditions in the photovoltaic business remain challenging.

BKW made significant progress in implementing its "Solutions 2030" strategy during the reporting period. This strategy aims to further develop BKW's position as a diversified infrastructure operator and service provider. Total investments in the first half of the year amounted to

CHF 209.7 million (first half of 2025: CHF 226.7 million).

Of these investments, CHF 65.5 million went to the Energy Solutions business segment. In the Italian region of Puglia, the Cerignola wind farm is now fully operational after a construction period of just twelve months. With a capacity of 125 megawatts and an annual output of over 310 gigawatt-hours, it is now one of the largest wind farms in BKW's portfolio. The project marks a milestone in the implementation of the "Solutions 2030" strategy, through which BKW aims, among other things, to increase its production portfolio to 4.7 gigawatts of capacity and expand the share of renewable energy production.

In May, BKW signed an agreement in principle with Swissgrid regarding grid connection capacity of 400 megawatts for the planned large-scale battery plant in Mühleberg. With this capacity and the planned storage capacity of 800 megawatt-hours, the battery storage project is one of the largest in Switzerland. BKW plans to build the facility on the

2 The operating net profit is the net profit adjusted for the performance of the decommissioning and waste disposal funds of KKM (including tax effects). To calculate operating net income, the reported net profit for 2026 of CHF 217.6 million (2025: CHF 203.3 million) was adjusted for the remeasurement gain/loss on STENFO of CHF 60.6 million (2025: CHF -9.0 million) and the corresponding tax effect of CHF -12.1 million (2025: CHF +1.9 million). Operating net income was thus CHF 169.1 million (2025: CHF 210.4 million).

site of the Mühleberg nuclear power plant. The connection is made directly to Swissgrid's transmission grid. Another important milestone is the start of construction on Grimsel 4 with our partner company, Kraftwerke Oberhasli AG. The new pumped-storage plant between Lake Grimsel and Lake Räterichsboden significantly increases the flexibility of the entire Grimsel facility and optimizes the water supply between the two reservoirs.

In addition, BKW has expanded its business activities in France and, with the acquisition of the French energy supplier Volterres SAS in the first half of the year, has become a major provider of energy services. Volterres has built up an attractive portfolio in recent years. The company sources renewable energy from more than 100 solar, wind, and hydroelectric power plants and supplies more than two terawatt-hours of electricity per year to its customers.

In the first half of the year, the majority of investments-CHF 87.5 million-went toward the distribution grid. These investments are needed to adapt the grid infrastructure to the needs of the new energy landscape, which features a growing number of decentralized generation facilities, increasingly fluctuating electricity generation from renewables, and changing consumption patterns. This is also evident in BKW's service area. As of the end of June 2026, approximately 35,500 renewable power generation systems with a total capacity of about 1.2 gigawatts were connected to BKW's

There were also personnel changes on the board of directors and executive committee: Dr. Martin Keller was elected to the board of directors at the general meeting in April to succeed Kurt Schär.

Margarita Aleksieva succeeded Dr. Philipp Hänggi as Executive Vice President - Energy Production business area and was appointed to the BKW Executive Committee.

BKW expects a stronger second half of the year for Infrastructure & Buildings and Energy Solutions, and Power Grid is likely to remain stable. BKW expects EBIT for 2026 to be at the lower end of the target range of CHF 650 million to CHF 750 million announced at the beginning of the year.

A big thank you goes out to our customers, suppliers, and partners for their trust and cooperation. We would like to thank our shareholders for their continued trust and our employees for their tremendous dedication during these dynamic and challenging times.

Kind regards,

Roger Baillod Robert Itschner

distribution grid. In addition, BKW further accelerated the rollout of smart meters during the first six months of the year. As of the end of June 2026, 211,000 smart meters had already been installed in BKW's service area. For comparison: As of the end of 2025, the figure stood at around 135,000.

In the Infrastructure & Buildings business segment, investments totaled CHF 44.9 million, most of which went toward organic growth.

BKW sent a strong signal regarding the financing of infrastructure investments: At the end of March, it issued a CHF 200 million green bond on the Swiss capital market, thereby strengthening the financing of investments in the electricity distribution grid through green bonds.

Chairman of the Board of

Directors

CEO

Our "Solutions 2030" strategy

• ENERGY SOLUTIONS

• Expanding the range of structured energy solutions for large customers, and optimizing the management of internal flexibilities and customer facilities

• Targeted development of BKW's production portfolio and strengthening the Swiss base, with a focus on electricity from renewable energies and more flexibility solutions for integrating renewable energies into the energy system

• POWER GRID

  • Strengthening the distribution grid in the supply area and gradually scaling up investments for transformation of the energy system, while maintaining the current very high level of grid availability

  • Cost-efficient grid expansion using modern processes and technologies -

• INFRASTRUCTURE & BUILDINGS

• Expansion of general planning in infrastructure and building construction

• Further strengthening of BKW solutions in energy, power grids, mobility and communications-accelerated growth in renewable energies and batteries

• Extending the range of building technology solutions and related services

For more information on the Solutions 2030 strategy, visit https://www.bkw.ch/solutions2030

Stories & News: The latest from BKW

What drives BKW today? In the blog, you will find stories, background information, and news from our three business segments: Energy Solutions, Power Grid and Infrastructure & Buildings. Learn how we are shaping the future of energy in a holistic way, what solutions we're developing together with our customers, and what issues are shaping BKW.

The authors provide insight into the BKW network, which comprises over 12,000 employees across more than

200 companies and equity investments in over 10 countries

-in a concise, easy-to-understand way that stays close to the action.

Check out the latest posts at: https://www.bkw.ch/blog

‌B K W G R O U P

Financial Result

1. Financial Result

2. BKW posts stable performance in the first half of the year

‌F I N A N C I A L R E S U L T

BKW posts stable performance in the first half of the year

BKW closed the first half of 2026 with total operating income of CHF 2,182.5 million, down 3.1% from the previous year. The steady positive performance of the Power Grid and Infrastructure & Buildings business segments was not enough to fully offset the temporary decline in earnings in the Energy Solutions business segment. Earnings before interest, taxes, depreciation and amortization (EBITDA) declined by 10.1% to CHF 387.9 million, while earnings before interest and taxes (EBIT) fell by 15.1% to CHF 263.7 million. Thanks to the strong performance of the Mühleberg Nuclear Power Plant's decommissioning and waste disposal funds, net profit increased by 7.0% to CHF 217.6 million compared with the previous year. BKW expects 2026 EBIT to be at the lower end of the target range of CHF 650 million to CHF 750 million announced at the beginning of the year.

BKW looks back on a challenging first half-year. An unfavorable combination of environmental factors - low water levels coupled with light winds -coincided with unexpected geopolitical developments.

The Energy Solutions business segment's results were particularly impacted by market disruptions as a result of the situation in the Middle East. In addition, water production was once again affected by challenging hydrological conditions. Low water levels resulted in lower production than in the previous year. Against this backdrop, the Energy Solutions business segment generated total operating income of CHF 950.7 million in the first half of 2026, representing a decline of 4.2% compared with the previous year. EBIT amounted to CHF 156.9 million, which was 24.2% below the previous year's figure.

The Power Grid business segment saw stable development in the first half of 2026. Total operating income rose slightly to CHF 322.8 million, while EBIT fell by 1.9% to CHF 68.0 million due to higher depreciation and amortization. BKW is continuing to advance the transformation of the energy system with investments of

CHF 87.5 million in the distribution grid.

These investments are laying the groundwork for increasing electrification and the integration of renewable energy sources. By the end of June 2026, approximately 35,500 decentralized

renewable energy generation systems were already connected to BKW's distribution grid.

Total operating income for the Infrastructure & Buildings business segment declined by 2.6% to CHF 932.8 million. The decline is attributable in particular to BKW's consistent focus on profitable growth. Profitability was further increased thanks to high-margin projects in the areas of engineering and high-voltage line construction. EBIT improved year-on-year by 12.8% to CHF 34.7 million.

1st half-year

2026

1st half-year

2025 % change

1 The operating net profit is the net profit adjusted for the performance of the decommissioning and waste disposal funds of KKM (including tax effects).

To calculate operating net profit, the reported net profit for 2026 of CHF 217.6 million (2025: CHF 203.3 million) was adjusted for the remeasurement gain/ loss on STENFO of CHF 60.6 million (2025: CHF -9.0 million) and the corresponding tax effect of CHF -12.1 million (2025: CHF +1.9 million). Operating net profit was thus CHF 169.1 million (2025: CHF 210.4 million).

The financial result improved by CHF 61.5 million compared with the previous year period, reaching CHF 7.3 million. This increase was driven primarily by the strong performance of the KKM decommissioning and waste disposal funds (first half of 2026: CHF +60.6 million; first half of 2025: CHF -9.0 million). The unwinding of the discount on provisions and net interest income remained largely stable. By contrast, higher costs for currency hedging had a negative impact.

The reported net profit of CHF 217.6 million was 7.0% higher than the previous year's figure thanks to the strong performance of the KKM decommissioning and waste disposal funds.

However, the operating net profit fell by 19.6% or CHF 41.3 million to CHF 169.1 million. It corresponds to adjusted net profit (including tax effects), adjusted for the performance of the KKM decommissioning and waste disposal funds, and thus reflects the Group's operating performance.

For the second half of the year, BKW expects higher earnings than in the first half due to seasonal effects in the Energy Solutions and Infrastructure & Buildings business segments. For the full year 2026, BKW expects EBIT to be at the lower end of the target range of CHF 650 million to CHF 750 million announced at the beginning of the year.

1st half-year

2026

1st half-year

2025 % change

1 To improve comparability and assist with interpretation, BKW uses the cash flow indicators before the utilization of nuclear provisions and payments for decommissioning and disposal of the Mühleberg Nuclear Plant.

Cash flow from operating activities before the use of nuclear provisions was CHF 168.4 million, down from the previous year's CHF 211.8 million. The main reason for this was the lower earnings before interest, taxes, depreciation and amortization (EBITDA). As in the previous year, as of June 30, 2026, additional funds were tied up in net working capital due to seasonal factors, particularly in the Infrastructure & Buildings business segment. These funds are expected to decrease again over the course of the second half of the year.

Payments for the decommissioning and disposal of the Mühleberg nuclear power plant amounted to CHF 45.9 million and were thus slightly lower than in the same period of the previous year

(CHF 50.2 million). The costs incurred are in line with the scheduled progress of the dismantling work.

After taking these payments into account, cash flow from operating activities amounted to

CHF 122.5 million (previous year: CHF 161.6 million).

Cash flow from investing activities, excluding refunds from the decommissioning and waste disposal funds (STENFO), amounted to CHF

-103.2 million, thus coming in as a less negative figure than in the previous year period.

Investments were lower compared with the previous year. In addition, maturing current financial assets resulted in cash inflows, which had a positive impact on cash flow from investing activities.

Refunds from the KKM decommissioning and waste disposal funds amounted to CHF 77.4 million in the first half of 2026. The higher refunds compared with the previous-year period and the decommissioning and waste disposal costs incurred in the first half of 2026 are attributable, among other things, to an extraordinary payment of

CHF 15.4 million from the decommissioning fund. This resulted from STENFO's recalculation of decommissioning costs for 2020 and 2021 following legal proceedings that were partially decided in BKW's favor.

Cash flow from financing activities amounted to CHF -249.7 million in the reporting period, which was slightly less negative than in the same period of the previous year.

As of June 30, 2026, total assets decreased by

CHF 92.0 million or 0.8% compared to December 31, 2025. The CHF 231.2 million decrease in current assets is primarily attributable to lower levels of cash and cash equivalents (CHF -155.0 million), trade receivables and other receivables

(CHF -109.6 million), and current financial assets (CHF -82.3 million). This was offset by higher contract assets (CHF +53.2 million) and higher prepaid expenses (CHF +31.7 million).

Non-current assets increased by CHF 139.2 million compared with the end of 2025. The increase reflects, in particular, the continued high level of investment activity in the Power Grid and Energy Solutions business segments, which led to a

CHF 55.1 million increase in property, plant and equipment. In addition, intangible assets increased by CHF 49.5 million, primarily as a result of the acquisition of Volterres SAS. Furthermore, pension plan assets increased by CHF 19.6 million.

Current and non-current liabilities decreased

by a total of CHF 142.2 million. The main factors contributing to this were lower tax liabilities

(CHF -85.7 million), lower trade payables and other liabilities (CHF -69.3 million), and a decrease in contract liabilities (CHF -60.8 million). This was offset by higher deferred income

(CHF +53.2 million) and higher current and non-current derivatives (CHF +37.9 million). The repayment and refinancing of a bond in the amount of CHF 200 million resulted in an extension of the maturity structure of the financial liabilities. This decreased current financial liabilities and increased non-current financial liabilities.

Equity increased by CHF 50.1 million to

CHF 5,967.9 million. Net profit of CHF 217.6 million and actuarial gains after taxes of

CHF 39.3 million contributed to an increase in equity, while dividend distributions of

CHF 211.3 million had the opposite effect. As of June 30, 2026, the equity ratio had increased to 52.3% (December 31, 2025: 51.5%), underscoring the Group's continued strong capitalization.

Energy Solutions business segment affected by market trends

The Energy Solutions business segment is consistently focused on the opportunities and challenges of the evolving energy market. It comprises the production, sale, and trading of electricity, certificates, and energy-related raw materials. It also includes production-related wind and solar services.

1st half-year

2026

1st half-year

2025 % change

Total operating income of the Energy Solutions business segment decreased by CHF 41.3 million or 4.2% to CHF 950.7 million. This was driven primarily by a lower energy trading margin and lower production from hydropower plants.

Energy procurement costs decreased by 2.2% or CHF 13.1 million. A major factor in this was the positive performance of the decommissioning and waste disposal funds for the Leibstadt nuclear power plant. However, this was offset by additional operating costs of CHF 23.8 million related to the strategic expansion of business activities. Overall, EBITDA decreased by

CHF 52.1 million compared with the same period last year.

Energy Solutions' EBIT for the first half of 2026 amounted to CHF 156.9 million, which was

CHF 50.0 million below the previous year's figure. Although the business segment benefited from the fact that electricity volumes for the 2026 calendar year had already been hedged three years ago at attractive futures market prices, lower hydroelectric power generation and a lower trading result weighed on earnings however and led to an EBIT that was 24.2% lower compared to the previous year period.

In the first half of 2026, BKW produced 4.6 TWh of electricity, 0.1 TWh more than in the same period of the previous year. The persistently exceptionally dry weather meant that hydropower plants once again generated less electricity than in the already weak previous year. Wind power generation also remained under pressure due to unfavorable wind conditions. The increase in electricity generation from wind power compared with the same period last year is primarily attributable to the commissioning of the Cerignola wind farm in early 2026. Production volumes from nuclear investments and thermal power plants remained stable compared with the previous year.

Power Grid business segment posts stable results

The Power Grid segment builds, operates, and maintains BKW's distribution grid. The grid not only transports electricity from power plants to consumers but also measures production and consumption, transforms voltage, monitors and analyzes load flows, integrates decentralized production facilities such as photovoltaic systems and wind turbines, and ensures the secure, efficient and effective operation of the distribution grid.

1st half-year

2026

1st half-year

2025 % change

Total operating income for the Power Grid business segment rose by 1.1% or CHF 3.5 million to

CHF 322.8 million. This development was driven by the higher transmission volumes.

Energy transport costs increased compared with the same period last year because lower run-of-river generation meant more energy had to be purchased from Swissgrid's extra-high-voltage grid. As of the end of June 2026, EBITDA was

CHF 122.8 million, which was CHF 2.3% higher than the previous year's figure.

As a result of higher depreciation and amortization due to the growing regulatory asset base, EBIT came in at CHF 68.0 million, representing a 1.9% decline compared with the same period last year.

Investments in the distribution grid totaled

CHF 87.5 million in the first half of 2026 (previous year: CHF 99.5 million). Just under two-thirds of the investments went toward maintenance and modernization of the grid infrastructure and about one-third went toward strategic network expansion.

Infrastructure & Buildings business segment continues to improve profitability

Infrastructure & Buildings comprises BKW Engineering (engineering planning and consulting), BKW Building Solutions (building technology and IT services), and BKW Infra Services (services for energy, water, and telecommunications networks and grids). The strong network of specialized companies and their different competencies enable BKW to be a relevant provider of comprehensive building and infrastructure services.

1st half-year

2026

1st half-year

2025 % change

Total operating income for the Infrastructure & Buildings business segment amounted to

CHF 932.8 million in the first half of 2026, which was CHF 24.6 million below the previous year's figure. The decline is attributable in particular to BKW's consistent focus on profitable growth. At the same time, operating costs were reduced by CHF 28.7 million.

EBITDA increased from CHF 71.6 million to CHF 75.7 million, while EBIT rose by 12.8% to

CHF 34.7 million (previous year: CHF 30.8 million). A major contributor to this increase was the continued strong order book, as well as high-margin projects in the areas of engineering and high-voltage line construction. The service business in building technology also performed well. In contrast, market conditions in the PV business remained challenging.

For the second half of the year, BKW expects stronger results in the Infrastructure & Buildings business segment than in the first half of the year.

‌B K W G R O U P

Half-Year Financial Statements

1. Half-Year Financial Statements of the BKW Group

2. Consolidated Income Statement

3. Consolidated Statement of Comprehensive Income

4. Consolidated Balance Sheet

5. Changes in Consolidated Equity

6. Consolidated Cash Flow Statement

7. Notes to the Half-Year Financial Statements

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‌Consolidated Income Statement

Note

1st half-year 2026

1st half-year 2025

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‌Consolidated Statement of Comprehensive Income

Note

1st half-year 2026

1st half-year 2025

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‌Consolidated Balance Sheet

Note

30.06.2026

31.12.2025

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‌Changes in Consolidated Equity

Share capital

Capital reserves

Retained earnings

Other reserves

Treasury shares

Equity attributable to BKW shareholders

Equity attributable to non-controlling interests

Total

1 Refer to Note 28.3 in the 2025 financial statements.

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‌Consolidated Cash Flow Statement

Note

1st half-year 2026

1st half-year 2025

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‌Notes to the Half-Year Financial Statements

1. General Information

   BKW AG, along with its Group Companies (hereinafter "BKW" or the "BKW Group"), is an international energy and infrastructure company. Its company network and extensive

   expertise allow it to offer customers a full range of integrated solutions. The Group plans, builds and operates infrastructure to produce and supply energy to businesses, households and the public sector, and offers digital business models for renewable energies. The service portfolio of the BKW Group ranges from energy, infrastructure,

   and environmental projects to

   integrated building technology solutions and the construction, servicing, and maintenance of energy, telecommunications, transport, and water utility networks.

   BKW AG, the parent company, is headquartered at Viktoriaplatz 2 in Bern, Switzerland. BKW shares are traded on the SIX Swiss Exchange under ISIN CH0130293662.

   The consolidated half-year financial statements for the period ended June 30, 2026, were approved by the BKW AG Board of Directors on August 17, 2026, and released for publication.

2. Accounting Principles

   1. Basis of preparation

      The unaudited consolidated half-year financial statements as of June 30, 2026, have been prepared in accordance with the International Accounting Standard on Interim Financial Reporting (IAS 34) and should be read in conjunction with the consolidated financial statements as of December 31, 2025. The accounting for these half-year financial statements is based on the principles described in the 2025 Financial Report.

      The preparation of these half-year financial statements entailed assumptions and estimates. Actual results may differ from these estimates.

      Due to rounding and the presentation in CHF million, it is possible that individual figures in the consolidated financial statements do not add up exactly to the totals shown. All key performance indicators and deviations are calculated based on the underlying unrounded amount.

   2. Application of new or amended standards and interpretations

      On January 1, 2026, the following amendments came into force:

      • Amendments to IFRS 9 and IFRS 7 "Classification and Measurement of Financial Instruments" and "Contracts Referencing Nature-dependent Electricity"

      • Annual Improvements to IFRS - Volume 11

        These amendments have no material impact on BKW's financial position, results of operations and cash flows.

        No new or amended standards or interpretations were applied early in this half-year report.

        IFRS 18 - "Presentation and Disclosure in Financial Statements" replaces IAS 1 and introduces new requirements for the presentation of financial performance and for the notes to the financial

        statements, effective in 2027. Preparations for adoption continued during the first half of 2026. Based on current information, BKW does not expect any significant impacts on its accounting policies. The changes are expected to primarily affect the structure of the consolidated financial statements and the notes to the financial statements.

        On May 27, 2026, the International Accounting Standards Board (IASB) issued the new standard IFRS 20, "Regulatory Assets and Regulatory Liabilities," which governs the accounting of regulatory assets and regulatory liabilities. This standard is effective for fiscal years beginning on or after January 1, 2029, although early adoption is permitted.

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        IFRS 20 requires the recognition of regulatory assets and regulatory liabilities that arise from timing differences between the recognition of income and expenses under IFRS and their consideration in the determination of regulated prices.

        The impact of the first-time adoption of IFRS 20 on the consolidated financial statements is currently being analyzed. Due to the regulatory framework

        governing operations in the Energy Solutions and Power Grid segments, it is expected that regulatory assets and regulatory liabilities will require recognition in the future. It is not yet possible to reliably quantify the effects at this time. In addition to the financial statement impacts, BKW is currently analyzing the exact timing of the standard's initial application.

   3. Foreign currency rates

      The reporting currency is the Swiss franc (CHF). The currency exchange rates in relation to the Swiss franc that were applied to the consolidated financial statements are as follows:

      Closing date 30.06.2026

      Closing date 31.12.2025

      Average 1st half-year

      2026

      Average 1st half-year

      2025

      Euros	1 EUR	0.9224	0.9314	0.9180	0.9415
      Norwegian kroner	100 NOK	8.1553	7.8646	8.2179	8.0743
      British pounds	1 GBP	1.0703	1.0674	1.0585	1.1179
      US dollars	1 USD	0.8096	0.7927	0.7870	0.8637
      Swedish kronor	100 SEK	8.3148	8.6069	8.5100	8.4862

3. Business Combinations

   Business combinations - first half of 2026

   CHF millions Volterres SAS Miscellaneous Total

   Cash and cash equivalents	33.9 1.3 53.1 1.0 - 0.0 0.0 0.0 9.3 - 3.4 0.8 25.2 0.1 0.7 0.7 33.7 0.0 -32.6 -0.5 -0.9 -0.1 -0.6 -0.6 -7.1 - -21.0 0.0 -53.5 -0.3 -1.1 - -4.0 -0.4 38.5 2.2 21.5 5.8 60.0 8.0 -33.9 -1.3 -8.4 -2.1 -2.7 -0.5 15.0 4.0	35.2
   Trade receivables and other receivables		54.1
   Current tax receivables		0.0
   Financial assets		0.0
   Derivatives		9.3
   Inventories		4.2
   Prepaid expenses and accrued income		25.3
   Property, plant and equipment		1.4
   Intangible assets		33.7
   Trade payables and other liabilities		-33.1
   Current tax liabilities		-1.0
   Financial liabilities		-1.2
   Derivatives		-7.1
   Provisions		-21.0
   Deferred income and accrued expenses		-53.8
   Other non-current liabilities		-1.1
   Deferred tax liabilities		-4.3
   Fair value of acquired net assets		40.7
   Goodwill		27.3
   Purchase price		68.0
   Cash and cash equivalents acquired		-35.2
   Contingent consideration		-10.5
   Deferred consideration		-3.3
   Cash outflow		19.0

   H A L F - Y E A R R E P O R T 2 0 2 6 | H A L F - Y E A R F I N A N C I A L S T A T E M E N T S O F T H E B K W G R O U P ≡ 2 4

   BKW acquired the companies listed below in the first half of 2026. The values for the transactions listed are provisional since the purchase price allocations have not yet been finalized.

   Volterres SAS

   In the Energy Solutions business segment, within the Energy Markets business area, BKW acquired 100% of the shares in Volterres SAS, based in Paris and Lyon, France, effective June 1, 2026. The company is active in the supply of green electricity in France. It supplies corporate customers as well as local and municipal authorities and specializes in aggregating renewable electricity generation.

   Contingent purchase price liabilities of

   CHF 8.4 million and non-tax-deductible goodwill of CHF 21.5 million were recognized in connection with the transaction. The contractual gross amount of the acquired trade receivables was

   CHF 53.3 million, which was approximately equal to their fair value. As of the acquisition date, it was assumed that CHF 0.2 million of these receivables were uncollectible. The main reasons for the goodwill rest in the expected synergies, the acquisition of qualified employees, and access to the French energy market. Transaction costs amounted to CHF 0.5 million and were recognized under "Other operating expenses."

   Had the acquisition had already taken place as of January 1, 2026, total operating income for the first half of 2026 would have been

   CHF 148.4 million higher and net profit would have been CHF 5.9 million higher.

   Between the consolidation date and June 30, 2026, the acquired company generated total operating income of CHF 18.6 million and a net loss of

   CHF 0.4 million.

   Miscellaneous

   In the Engineering business area of the Infrastructure & Buildings business segment, BKW acquired the operating business of the sole proprietorship, BWP Endreß Landschaftsarchitekten, based in Frankfurt,

   Germany, effective January 5, 2026. In addition, on March 25, 2026, it acquired 100% of the shares in Nattler GmbH, based in Essen, Germany, and on April 22, 2026, it acquired 100% of the shares in HPM Henkel Projektmanagement GmbH, based in Dresden, Germany.

   These transactions resulted in total goodwill of CHF 5.8 million, of which CHF 0.3 million is tax-deductible. The main reasons for the goodwill are the expected synergies and the acquisition of qualified employees. Transaction costs amounted to CHF 0.1 million and were recognized under "Other operating expenses."

   Had the acquisition had already taken place as of January 1, 2026, total operating income for the first half of 2026 would have been CHF 2.2 million higher and net profit would have been

   CHF 0.2 million higher.

   Between the consolidation date and June 30, 2026, the acquired companies generated total operating income of CHF 1.6 million and a net profit of

   CHF 0.1 million.

   Contingent purchase price payments of

   CHF 3.4 million and non-contingent purchase price payments of CHF 0.7 million were made for acquisitions in previous years.

   H A L F - Y E A R R E P O R T 2 0 2 6 | H A L F - Y E A R F I N A N C I A L S T A T E M E N T S O F T H E B K W G R O U P ≡ 2 5

   Business combinations - first half of 2025

   CHF millions

   Stein und

   Partner Miscellaneous Total

   Cash and cash equivalents	0.6	0.3	0.9
   Trade receivables and other receivables	1.6	0.1	1.7
   Other current assets	0.1	0.1	0.2
   Property, plant and equipment	2.8	0.4	3.2
   Intangible assets	0.0	0.0	0.0
   Current liabilities	-0.6	-0.2	-0.8
   Financial liabilities	-4.5	-0.4	-4.9
   Provisions	0.0	-0.1	-0.1
   Fair value of acquired net assets	0.0	0.2	0.2
   Goodwill	17.3	0.9	18.2
   Purchase price	17.4	1.1	18.5
   Cash and cash equivalents acquired	-0.6	-0.3	-0.9
   Contingent consideration	-5.1	-0.1	-5.2
   Deferred consideration	-1.2	-0.1	-1.3
   Cash outflow	10.4	0.6	11.1

   The values for all the transactions presented in the previous year are provisional since the purchase price allocations had not yet been finalized. The purchase price allocations are now final and there have been no changes. BKW made the following acquisitions in the first half of 2025.

   Stein und Partner Projektmanagement Beratende Ingenieure GmbH & Co. KG

   In the Engineering business area of the Infrastructure & Buildings business segment, BKW acquired 100% of the limited partnership shares in Stein und Partner Projektmanagement Beratende Ingenieure GmbH & Co. KG, based in Munich, Germany, as of March 5, 2025, and transferred them to an acquisition company, which was renamed "Stein und Partner Projektmanagement GmbH."

   Contingent purchase price liabilities of

   CHF 5.1 million and goodwill of CHF 17.3 million were recognized as of the acquisition date. The goodwill recognized is mainly attributable to the expected future synergies and the acquisition of a qualified workforce. Transaction costs of

   CHF 0.1 million were incurred, which are recognized under "Other operating expenses."

   Had the acquisition already been made as of January 1, 2025, total operating income for the first half of 2025 would have been CHF 1.4 million higher and net profit CHF 0.1 million lower.

   Between the consolidation date and June 30, 2025, the acquired company generated total operating

   income of CHF 3.9 million and a net profit of CHF 0.6 million.

   Miscellaneous

   Also in the Engineering business area of the Infrastructure & Buildings business segment, BKW acquired the operating business of

   Bermüller + Niemeyer Architekturwerkstatt GmbH, based in Nuremberg, Germany, as of March 10, 2025, and 100% of the shares in Tropp Lighting Design GmbH, based in Weilheim, Germany, as of April 8, 2025.

   These transactions resulted in total goodwill of CHF 0.9 million. The goodwill recognized is mainly attributable to the expected future synergies and the acquisition of a qualified workforce.

   Transaction costs of CHF 0.1 million were incurred, which are recognized under "Other operating expenses."

   Had the companies already been acquired as of January 1, 2025, total operating income for the first half of 2025 would have been CHF 0.4 million higher and net profit unchanged. Between the consolidation date and June 30, 2025, the acquired companies generated total operating income of CHF 0.6 million and net profit of CHF 0.0 million.

   Contingent purchase price payments of

   CHF 13.6 million and non-contingent purchase price payments of CHF 0.3 million were made for acquisitions in previous years.

   H A L F - Y E A R R E P O R T 2 0 2 6 | H A L F - Y E A R F I N A N C I A L S T A T E M E N T S O F T H E B K W G R O U P ≡ 2 6

4. Seasonality and Business Fluctuations During the Year

   Experience has shown that business activities of the Energy Solutions and Infrastructure & Buildings segments are subject to seasonal

   fluctuations. Business activity is usually higher in the second half of the year than in the first six months.

5. Segment Reporting

   Segments and segment results are defined on the basis of the management approach. In line with the strategy, BKW's reporting is structured around the Energy Solutions, Power Grid, and Infrastructure & Buildings business segments. The CEO, who has prime decision-making authority, uses the operating profit before interest and taxes (EBIT) as the basis for allocating resources and measuring performance.

   BKW operates the following three reportable business segments:

   • The Energy Solutions business segment builds, operates and maintains BKW's portfolio of power plants in Switzerland and abroad. It also includes the sale of energy in Switzerland, trading in electricity, certificates and raw materials as well as wind, solar and smart energy services.

   • The Power Grid segment builds, operates, and maintains BKW's distribution grid.

   • The Infrastructure & Buildings segment includes engineering planning and consulting for energy, infrastructure, and environmental projects, integrated services in the field of building technology as well as the construction, servicing, and maintenance of energy, telecommunications, transport, and water utility networks.

     The "Other" column covers cross-divisional functions that are centrally managed within the Group. In addition, some of the costs that arise in conjunction with the build-up of segments (acquisition/integration costs, technology development costs, etc.) are borne centrally. The "Other" column also includes the equity interest in Swissgrid AG as it exhibits more of a financial character than an operating one.

     Segment figures are determined in accordance with the same accounting policies that are applied for the Group-level presentation of consolidated figures. The prices for intercompany transactions (transfer prices) are based on the market price on the transaction date.

     H A L F - Y E A R R E P O R T 2 0 2 6 | H A L F - Y E A R F I N A N C I A L S T A T E M E N T S O F T H E B K W G R O U P ≡ 2 7

     Information by business segment

     2,137.9

     2,109.3

     28.6 -

     -

     -44.6

     2,182.5

     -665.3

     -359.5

     -614.0

     -155.7

     387.9

     -150.8

     26.7

     263.7

     7.3

     271.1

     Energy Solutions

     Power Grid

     Infrastructure & Buildings

     Other

     Consolidation

     Total

     1st half-year 2026 CHF millions

     External revenue 936.0 284.8 910.3 6.8 -

     - Net revenue 926.9 281.0 901.4 0.0 -

     • Other operating income 9.1 3.8 8.9 6.8 -

       Internal revenue 9.9 8.6 22.5 86.9 -127.9

     • Net revenue 7.8 0.7 22.3 0.0 -30.8

     • Other operating income 2.1 8.0 0.2 86.9 -97.1

       Own work capitalized 4.8 29.3 0.0 0.1 10.4

       Total operating income 950.7 322.8 932.8 93.7 -117.5

       Energy procurement/transport -591.1 -74.5 - 0.0 0.3

       Material and third-party services -40.0 -20.0 -321.7 -2.7 24.8

       Personnel expenses -64.2 -60.2 -444.1 -46.0 0.5

       Other operating expenses -61.7 -45.2 -91.3 -48.5 91.1

       Earnings before interest, taxes, depreciation and amortization (EBITDA) 193.7 122.8 75.7 -3.5 -0.7

       Depreciation, amortization and

       impairments -46.8 -54.8 -41.0 -10.1 1.9

       Income from associates 10.0 0.1 0.0 16.5 -

       Earnings before interest and taxes (EBIT) 156.9 68.0 34.7 2.9 1.1

       Financial result

       Earnings before taxes (EBT)

       Energy Solutions

       Power Grid

       Infrastructure & Buildings

       Other

       Consolidation

       Total

       1st half-year 2025 CHF millions

       External revenue	975.3	281.4	933.7	12.5	-	2,202.8
       - Net revenue	888.6	278.5	923.0	0.0	-	2,090.1
       - Other operating income	86.6	2.9	10.7	12.5	-	112.7
       Internal revenue	12.0	8.0	23.6	84.5	-128.1	-
       - Net revenue	10.1	0.6	23.5	-	-34.2	-
       - Other operating income	2.0	7.4	0.1	84.5	-93.9	-
       Own work capitalized	4.7	29.9	0.2	0.1	14.0	49.0
       Total operating income	992.0	319.3	957.5	97.1	-114.1	2,251.8
       Energy procurement/transport	-604.2	-73.6	0.0	-0.1	0.3	-677.6
       Material and third-party services	-33.7	-22.2	-357.4	-3.0	23.1	-393.2
       Personnel expenses	-51.3	-60.6	-439.9	-46.5	1.2	-597.1
       Other operating expenses	-57.0	-42.9	-88.5	-52.8	88.7	-152.5
       Earnings before interest, taxes, depreciation and amortization (EBITDA)	245.7	120.0	71.6	-5.2	-0.8	431.3
       Depreciation, amortization and impairments	-45.9	-51.0	-40.8	-9.3	2.0	-145.1
       Income from associates	7.2	0.3	-	17.0	-	24.5
       Earnings before interest and taxes (EBIT)	207.0	69.3	30.8	2.5	1.1	310.7
       Financial result						-54.2
       Earnings before taxes (EBT)						256.6

       H A L F - Y E A R R E P O R T 2 0 2 6 | H A L F - Y E A R F I N A N C I A L S T A T E M E N T S O F T H E B K W G R O U P ≡ 2 8

6. Net revenue

   Net revenue by business segment is broken down as follows between Switzerland and abroad:

   Switzerland Abroad Switzerland Abroad

   CHF millions

   1st half-year

   2026

   1st half-year

   2026

   1st half-year

   2025

   1st half-year

   2025

   Energy Solutions	441.0	485.9	478.0 410.6 278.5 - 598.8 324.2 0.0 - 1,355.3 734.8
   Power Grid	281.0	-
   Infrastructure & Buildings	568.1	333.3
   Other	0.0	-
   Total net revenue	1,290.1	819.2

7. Energy procurement/transport

   CHF millions

   1st half-year

   2026

   1st half-year

   2025

   Cost of energy procurement from third parties and associates	599.9	618.0 -7.5 -6.6 603.9 73.8 677.6
   Provision for onerous energy procurement contracts
   - Provisions used	-12.4
   - Provisions added (+) / released (-)	-2.6
   Total energy procurement expenses	584.9
   Energy transport expense	80.5
   Total	665.3

   Expenses for energy transport include expenses for system services and municipal taxes, while expenses for water rates are included in energy procurement costs.

   H A L F - Y E A R R E P O R T 2 0 2 6 | H A L F - Y E A R F I N A N C I A L S T A T E M E N T S O F T H E B K W G R O U P ≡ 2 9

8. Financial result

   CHF millions

   1st half-year

   2026

   1st half-year

   2025

   Interest income	1.7	2.6 0.1 - 0.0 2.5 0.3 5.5 -18.6 0.6 -17.0 -9.0 - -0.5 -7.8 -7.3 -59.6 -54.2
   Dividend income	0.1
   Remeasurement gain/loss on STENFO	60.6
   Gains from the disposal of financial assets	0.0
   Net remeasurement gain/loss on financial assets at fair value through profit or loss	-
   Other financial income	0.2
   Financial income	62.6
   Interest expense	-19.2
   Capitalized borrowing costs	-
   Interest on provisions	-17.4
   Remeasurement gain/loss on STENFO	-
   Net remeasurement gain/loss on financial assets at fair value through profit or loss	-1.1
   Impairment of financial assets	-
   Currency translations	-9.1
   Other financial expenses	-8.4
   Financial expenses	-55.2
   Financial result	7.3

9. Dividends

   On April 28, 2026, the General Meeting of BKW AG resolved to pay an ordinary dividend of CHF 3.80 per dividend-bearing share for the 2025 fiscal year (previous year: ordinary dividend of CHF 3.70).

   H A L F - Y E A R R E P O R T 2 0 2 6 | H A L F - Y E A R F I N A N C I A L S T A T E M E N T S O F T H E B K W G R O U P ≡ 3 0

10. Assets and Liabilities Measured at Fair Value

    Assets and liabilities measured at fair value are classified into different hierarchy levels based on the measurement method used. The allocation is based on the principles described in the 2025 Financial Report, which remain unchanged. There were no transfers between the different levels during the reporting period or during the comparative period.

    CHF millions

    Carrying amount at

    30.06.2026 Level 1 Level 2 Level 3

    Financial assets at fair value through profit or loss		1,184.0 0.5 41.2 22.8 29.0 33.2 13.1 26.0 59.9 47.7 20.2
    Financial assets (current and non-current)
    - Interest in STENFO	1,184.0
    - Debt instruments	0.5
    Derivatives (current and non-current)	64.0
    Inventories
    - Certificates (proprietary trading)	29.0
    Financial assets at fair value through other comprehensive income
    Derivatives (current and non-current) - hedge accounting	33.2
    Non-current financial assets
    - Equity instruments	13.1
    Financial liabilities at fair value through profit or loss
    Other financial liabilities (current and non-current)
    - Contingent purchase price liabilities in relation to business combinations	26.0
    Derivatives (current and non-current)	107.6
    Financial liabilities at fair value through other comprehensive income
    Derivatives (current and non-current) - hedge accounting	20.2

    In addition, as of June 30, 2026, liabilities include bonds in the amount of CHF 99.5 million (December 31, 2025: CHF 99.4 million), which are measured as part of a fair value hedge (Level 2).

    Assets and liabilities measured at fair value are classified into the following hierarchy levels based on the measurement method used:

    • Level 1 comprises valuation techniques that rely exclusively on quoted prices in active markets for identical assets or liabilities. BKW currently classifies exchange-listed securities and certificates held for proprietary trading into this hierarchy level.

    • Level 2 includes valuation techniques whose inputs are based on directly or indirectly observable market data. The inputs have a significant impact on the recognized fair value. BKW classifies over-the-counter derivatives (energy trading futures contracts, interest rate swaps, and forward currency contracts) as well as its proportionate share of the net assets in the federal government's decommissioning and waste disposal funds into this level of the hierarchy. STENFO's fund assets are managed by the federal government; BKW has no access to the managed assets. In accordance with the defined investment strategy, the funds' assets are primarily invested in products with quoted prices on active markets. To a limited extent, investments may also be made in assets for which there are no quoted prices on active markets. These assets are measured by the central custodian (Global Custodian). BKW has no influence over the selected measurement methods. The funds' annual financial statements are audited annually by an external auditor and published by the relevant federal agencies.

    • Level 3 refers to valuation techniques that use inputs with a significant impact on the fair value determined that are not based on observable market data. BKW classifies primarily illiquid energy derivatives, unlisted equity instruments, contingent purchase price payments, and liabilities to noncontrolling interests into this level of the hierarchy. The illiquid energy derivatives include contracts

      H A L F - Y E A R R E P O R T 2 0 2 6 | H A L F - Y E A R F I N A N C I A L S T A T E M E N T S O F T H E B K W G R O U P ≡ 3 1

      with delivery in subsequent years that involve options regarding quantities and variabilities regarding the price. These derivatives are measured using a Monte Carlo simulation. Key inputs include expected commodity prices and volatility. The contingent purchase price payments and the liabilities to noncontrolling interests result from business combinations. The measurement requires management to make estimates regarding unobservable inputs. Fair values are determined, in particular, based on expected cash flows, the forecast development of EBITDA and EBIT, the degree to which the growth assumptions underlying the measurements are expected to be achieved, and other performance criteria.

      A hypothetical change in energy prices of +/- 10% would increase or decrease the fair value of the Level 3 derivatives by CHF 44.1 million. The sensitivity analysis does not take into account interdependencies between different commodities or technologies, nor does it consider the effects of related hedging positions.

      H A L F - Y E A R R E P O R T 2 0 2 6 | H A L F - Y E A R F I N A N C I A L S T A T E M E N T S O F T H E B K W G R O U P ≡ 3 2

      CHF millions

      Carrying amount at

      31.12.2025 Level 1 Level 2 Level 3

      Financial assets at fair value through profit or loss		1,200.9 0.4 67.7 23.2 16.9 8.3 13.1 18.5 25.8 57.1 7.0
      Financial assets (current and non-current)
      - Interest in STENFO	1,200.9
      - Debt instruments	0.4
      Derivatives (current and non-current)	90.9
      Inventories
      - Certificates (proprietary trading)	16.9
      Financial assets at fair value through other comprehensive income
      Derivatives (current and non-current) - hedge accounting	8.3
      Non-current financial assets
      - Equity instruments	13.1
      Financial liabilities at fair value through profit or loss
      Other financial liabilities (current and non-current)
      - Contingent purchase price liabilities in relation to business combinations	18.5
      Derivatives (current and non-current)	82.9
      Financial liabilities at fair value through other comprehensive income
      Derivatives (current and non-current) - hedge accounting	7.0

      Level 3 assets and liabilities measured at fair value, excluding contingent purchase price liabilities, developed as follows in the first half of the year:

      Assets Liabilities

      CHF millions 2026 2025 2026 2025

      At 01.01.	36.4	31.7	57.1	90.2
      Additions	1.2	5.4	8.9	2.7
      Disposals	-0.1	-0.1	-	-
      Remeasurement gains/losses included in profit or loss	-1.6	-10.3	-18.3	-11.2
      Remeasurement gains/losses included in other comprehensive income	-	0.0	-	-
      At 30.06.	35.8	26.7	47.7	81.6

      The remeasurement gains/losses on liabilities recognized in the income statement are included in "Other operating income."

      H A L F - Y E A R R E P O R T 2 0 2 6 | H A L F - Y E A R F I N A N C I A L S T A T E M E N T S O F T H E B K W G R O U P ≡ 3 3

      The remeasurement gains/losses recognized in profit or loss include:

    • in Assets: CHF -1.6 million (comparative period: CHF -10.3 million) from derivatives

    - in Liabilities: CHF -18.3 million (comparative period: CHF -9.6 million from derivatives. There were no changes in the carrying amounts of other financial liabilities during the reporting period (comparative period: CHF -1.6 million).

    Recognition of contingent purchase price liabilities

    Financial liabilities include contingent purchase price liabilities recognized at fair value.

    The fair value is measured on the basis of the expected cash flows, taking into account the probability of occurrence and current market interest rates, and classified as Level 3 instruments.

    Payments of contingent consideration

    At 01.01.	18.5	22.4 5.2 -13.6 -1.6 0.2 12.5
    Additions	10.5
    Disposals	-3.4
    Remeasurement gains/losses included in profit or loss	0.5
    Remeasurement gains/losses included in other comprehensive income	-0.1
    At 30.06.	26.0

    CHF millions 2026 2025 Sensitivities of contingent purchase price liabilities

    A contingent purchase price liability of

    CHF 8.4 million was recognized in connection with the acquisition of Volterres SAS. The contingent purchase price payments consist of two components. The first is based on the gross margin contracted through the end of 2027 for the 2028 and 2029 fiscal years and is triggered when the respective target values are met or exceeded. The second is based on the average adjusted EBIT for the fiscal years 2026 through 2030; its amount is determined using contractually specified multipliers and taking into account the first earn-out component. The possible undiscounted future cash outflows are between zero and

    CHF 18.3 million.

    Contingent purchase price liabilities of

    CHF 2.1 million were recognized in connection with the acquisitions of Nattler GmbH and HPM Henkel Projektmanagement GmbH. The contingent purchase price liabilities are based on the achievement of contractually specified EBIT targets for the years 2026 through 2028. For Nattler GmbH, the potential undiscounted future cash outflows range from zero to CHF 1.5 million. For HPM Henkel Projektmanagement GmbH, there is no contractual cap, as 50% of any amount exceeding the respective target EBIT in fiscal years 2026 through 2028 must be paid to the seller.

    Recognition of day-one gains and losses

    BKW offers long-term power purchase agreements (PPA), particularly for renewable energy sources, to counter the increasing volatility in the energy markets. The classification as a Level 1, 2 or 3 instrument is based on the total term of the contract (one unit of account approach) and the underlying measurement parameters.

    When assessing financial instruments using measurement parameters that are not fully based on traded prices in active markets, the measurement of the fair value at the time the contract is concluded may differ from the transaction price. This deviation is treated as a deferred day-one gain or loss and amortized on a straight-line basis until the markets on which the measurement parameters are based become liquid.

    H A L F - Y E A R R E P O R T 2 0 2 6 | H A L F - Y E A R F I N A N C I A L S T A T E M E N T S O F T H E B K W G R O U P ≡ 3 4

    The following table shows the reconciliation of the change in deferred day one gains and losses. These positions are entirely related to Level 3 energy derivatives.

    Day-one gains		Day-one losses
    2026	2025	2026	2025

    CHF millions

    At 01.01.	35.0	41.6	-4.5	-0.6
    Deferred gains/losses from new transactions	8.9	2.7	-1.3	-5.1
    Changes in gains and losses included in profit or loss	-15.5	-13.5	2.5	0.2
    At 30.06.	28.4	30.8	-3.3	-5.5

11. Financial Assets and Liabilities Recognized at Amortized Cost

    Due to the short residual terms to maturity, the carrying amounts of the loans, receivables and financial liabilities at amortized cost correspond approximately to the fair values. There is a difference between these values for the bonds included in the financial liabilities. The market price of the bonds (fair value hierarchy Level 1) was

    CHF 1,231.6 million on the reporting date, while the carrying amount was

    CHF 1,198.3 million. On December 31, 2025, the corresponding market price was CHF 1,223.1 million and the carrying amount was CHF 1,197.9 million. The fair value of the registered bonds as of the reporting date was CHF 268.7 million (December 31, 2025: CHF 253.5 million), and the carrying amount was CHF 237.7 million (December 31, 2025:

    CHF 239.6 million).

    H A L F - Y E A R R E P O R T 2 0 2 6 | H A L F - Y E A R F I N A N C I A L S T A T E M E N T S O F T H E B K W G R O U P ≡ 3 5

12. Additional Disclosures on the Cash Flow Statement

    Cash and cash equivalents include cash on hand, bank account balances and short-term cash investments at financial institutions for a maximum period of three months.

    Bank and cash balances	699.7	824.7 30.0 854.7
    Term deposits	-
    Total cash equivalents	699.7

    CHF millions 30.06.2026 31.12.2025 CHF millions

    1st half-year

    2026

    1st half-year

    2025

    Income from associates	-26.7	-24.5 -7.8 -7.6 -7.5 69.3 -3.3 18.5
    Gains/losses from sale of non-current assets	-2.2
    Change in non-current provisions (excl. interest and excl. utilization of nuclear provisions)	-3.0
    Change in assigned right-of-use assets	-7.6
    Remeasurement gain/loss on energy derivatives	56.6
    Other non-cash positions	2.3
    Total adjustment for non-cash transactions	19.4

    The cash outflow of CHF 22.6 million for the acquisition of Group companies consists of payments for business combinations of

    CHF 19.0 million, as well as payments made in the first half of the year in connection with contingent and non-contingent purchase price payments of CHF 4.1 million, of which CHF 0.4 million is presented in cash flows from operating activities as additional payments from contingent purchase price liabilities.

    Sub-total "Cash flow from operating activities before utilization of nuclear provisions"

    To ensure better comparability and assist with interpretation of the effective operating cash flow, the "Cash flow from operating activities" item includes a sub-total of the cash flow before utilization of provisions for nuclear decommissioning and waste disposal.

    The reason for this is that the decommissioning of the Mühleberg nuclear power plant will incur future costs for nuclear decommissioning and waste disposal. These costs represent the utilization of existing provisions and are therefore charged to "Cash flow from operating activities" determined in accordance with IAS 7. However, the nuclear decommissioning is not related to BKW's actual operating performance. Consequently, BKW does not consider the reported "Cash flow from operating activities" to be a suitable metric for assessing operating cash generation.

    In addition, since 2024 most of the costs for nuclear decommissioning and waste disposal are borne by STENFO. BKW is entitled to a refund of the costs incurred, although the costs incurred and the refund do not coincide chronologically. Both payments into and refunds from STENFO are classified in the cash flow statement as part of "Cash flow from investing activities." This means there is a discrepancy in the presentation of these directly related cash flows. To adequately interpret cash flow, the corresponding individual items presented separately in the cash flow statement should be considered together.

    H A L F - Y E A R R E P O R T 2 0 2 6 | H A L F - Y E A R F I N A N C I A L S T A T E M E N T S O F T H E B K W G R O U P ≡ 3 6

13. Significant Capital Commitments

    On June 23, 2025, BKW signed a consortium agreement covering the development, construction and operation of a large-scale battery storage facility with an output of 300 MW and a storage capacity of 600 MWh at the large-scale battery park in Waltrop, Germany. At the same time, BKW and two other partners acquired an equity interest in Trianel Batteriepark Waltrop GmbH & Co KG, a special purpose entity headquartered in Aachen,

    Germany, which creates the framework for the entire large-scale battery park. BKW's investment commitments for the project total CHF 154.6 million, with construction scheduled to start in 2026 and commissioning in 2028.

14. Events After the Balance Sheet Date

No significant events have occurred since the balance sheet date.

‌B K W G R O U P

Investor Information

1. Investor Information

2. Key Facts on the BKW Share, Bonds, and Financial Calendar

‌I N V E S T O R I N F O R M A T I O N

Key Facts on the BKW Share, Bonds, and Financial Calendar

Performance of the BKW share

in CHF (June 30, 2025 - June 30, 2026)

200

180

160

140

120

BKW SPI Mid - price return (excluding dividends), indexed

After a largely stable performance in the second half of 2025, the BKW share came under significant pressure at the beginning of 2026. A temporary recovery was followed by another decline in the share price toward the end of the first half of the year.

On June 30, 2026, the share closed at CHF 136.30.

Share performance over the last 12 months was a negative 21.4%.

The cumulative total shareholder return for the period from the beginning of 2021 to June 30, 2026 is 58.4%.

The shares of BKW AG are listed on the main segment of the SIX Swiss Exchange.

Ticker symbol on SIX BKW

Securities number 13029366

ISIN code CH0130293662

Total number of shares 52,800,000

The BKW share is included in the following indices: SPI, SPI EXTRA, SPI ex SLI, Swiss All Share, UBS 100, MSCI Switzerland.

in CHF bn. (as of 31.12 and 30.06.2026)

10

7.2

8

No. of shares

80000

60000

69,409

6

40000

4

20000

2

0

2021 2022 2023 2024 2025 6.2026

0

2021 2022 2023 2024 2025 1. HY

2026

BKW aims for a consistent dividend payout based on a ratio of 35% to 50% of operating net profit.

An ordinary dividend of CHF 3.80 per share was distributed for fiscal year 2025. The dividend was paid out on May 5, 2026.

in CHF

as of 31.12. and 30.06.2026 (since 01.01.2021)

5.0

4.0

3.80

100

58.4%

80

60

3.0

40

2.0

20

1.0 0

0.0

2020 2021 2022 2023 2024 2025

Ordinary dividend 125-year dividend

(20)

2021 2022 2023 2024 2025 6.2026

BKW

SPI Mid - total return (including dividends)

The Company may refuse to register an acquirer of shares in the register of voting shareholders for the following reasons :

1. If the acquisition results in a natural person, a legal entity or a partnership holding (directly or indirectly) more than 5% of the entire share capital. The same restriction applies to legal entities, partnerships, associations of persons, or joint ownerships that are linked to each other through capital or voting rights, shared management, or in any other way. Moreover, the restriction applies to all natural or legal persons or partnerships that act in concert to acquire shares.

2. If the acquirer does not expressly declare that they have acquired the shares in their own name and for their own

account, there is no agreement regarding the repurchase or return of such shares, and the acquirer bears the economic risk associated with the shares.

Notwithstanding the foregoing, nominee shareholdings with voting rights up to a maximum of 3% of the outstanding share capital are automatically registered, and beyond this threshold as well, provided that the nominee complies with the reporting requirements under stock exchange regulations and discloses the persons on whose behalf the nominee holds 0.5% or more of the share capital.

To the best of BKW's knowledge, the following shareholders held more than 3% of the shares as of June 30, 2026, and December 31, 2025, respectively:, respectively:

30.06.2026 31.12.2025

The free float amounts to 37.4%. As of June 30, 2026, the number of registered shareholders was 21,810 (as of June 30, 2025: 18,971).

1st half-year

2026

1st half-year

2025 31.12.2025

As of June 30, 2026, BKW had the following bonds outstanding: