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Strong annual results 2018 Investor presentation, 19 March 2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION | BKW | 19.03.2019 2 FY 2018: strong results the successful transformation continues Revenue increased by 7% despite negative

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Strong annual results 2018

Investor presentation, 19 March 2019

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| BKW | 2 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION

FY 2018: strong results – the successful transformation continues

  • Revenue increased by 7% despite negative energy price effects
  • Reported operating profit +10%
  • Profitable growth of Services: revenue +20%, EBIT +26%
  • Successful repositioning of the Energy business
  • Continued consistent reduction of operating cost

+7% +7% +10% +10% 379 379 417 417 2, 2,503 503 2, 2,675 675

2017 2018 2017 2018 Operating revenue Operating profit CHF F m

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| BKW | 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 3

BKW strong business model: growth and robustness

Growing services business Developing grids further Aligning energy to the future

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Financials FY 2018

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| BKW | 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 5

2017 reported adjustments 2017 comparable 2018 comparable adjustments 2018 reported change comparable in %

Op Operati ting revenue nue 2, 2,503 503

  • 11

11 2, 2,492 492 2, 2,675 675 2, 2,675 675 +7% +7% EBITDA 529

  • 11

518 544 52 596 +5% EB EBIT 379 379

  • 11

11 368 368 364 364 52 52 417 417

  • 1%

1% Net t prof

  • fit

271 271

  • 56

56 215 215 239 239 36 36 203 203 +11% +11% EBIT on PY-level, net profit increased – despite lower electricity prices

Comparable income statement

CHF F m

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| BKW |

Operating revenue EBIT Net profit

Comparable operating revenue, EBIT and net profit

19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 6

+7% +7% +11% +11% 364 364 368 368

  • 1%

1% 239 239 214 214 Growing operating revenue, EBIT on PY-level, net profit increased

CHF F m

2, 2,492 492 2, 2,675 675

2017 2018 2017 2018 2017 2018

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| BKW |

239 239 324 324 317 317 347 347 309 309 346 346 368 368 364 364

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 7

60 EUR/MWh 30 EUR/MWh Hedged prices

240 240 150 150 140 140

  • CHF 750m

750m

price effect on revenue

140 140 80 80 Negative price effect 2018 of CHF 80m on revenue largely compensated on EBIT-level

EBIT development / price effect on revenue

CHF F m

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| BKW | 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 8

+127

846 820

2017 reported cost reduction/ efficiency gains 2018 before acquisitions acquisitions 2018 adjusted

  • 33

1,099 1,065 1,193 Significant efficiency gains in established business areas: More than CHF 160m in last five years

Operating cost: consistent efficiency gains achieved

CHF F m

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| BKW | 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 9

485 485

growth maintenance/ replacement Inv nvestment nts 64% 64% i in grow

  • wth
  • Services
  • Energy
  • Other

311 311 176 132 3 36% 36% i in maint ntena nanc nce/repl eplacement

  • Grid
  • Energy
  • Efficiency, quality, digitalisation

174 174 127 21 26 36 36 3/4 of maintenance/replacement investments in grid, securing regulatory asset base

2/3 of Investments in growth: services and renewable energies

CHF F m

Inv nvestment nts pa partner er plant nts

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| BKW |

Strong liquidity at CHF 1.1bn

19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 10 10

1, 1,223 223

Operating activities Investing activities Financing activities

373 373

  • 401

401 26 26

  • 24

24 1, 1,094 094

  • 103

103 Liquidity above CHF 1bn despite substantial investments

CHF F m

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| BKW |

1, 1,223 223 1, 1,095 095

  • 1,

1,600 600

  • 1,

1,569 569

  • 377

377

  • 474

474

  • 2'000
  • 1'500
  • 1'000
  • 500

500 1'000 1'500 2017 2018

Sound financial situation

19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 11 11

Net debt remains on low level – despite significant investments Cash & equivalents & current financial assets Financial debt Net financial debt

CHF F m 2017 2018

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| BKW |

Long-term financing framework ensures financial flexibility

19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 12 12

200 400 600 800 1000 1200 1400 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Financial liabilities

0.75% bond of CHF 200m successfully issued in 2018 Bonds Registered bonds Bond issued in 2018 Bond expires in 2019

1,400 1,200 1,000 CHF F m

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| BKW |

Sound balance sheet: equity ratio at 38.4%

19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 13 13

2017 2018

5. 5.7 3. 3.4 2. 2.4 6. 6.7 37. 37.5% 5% 9. 9.1 2. 2.3 6. 6.8 5. 5.6 3. 3.5 38. 38.4% 4% 9. 9.1 Increased equity ratio thanks to net profit Non-current assets Current assets Equity Liabilities Equity ratio

CHF F bn bn

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| BKW |

Energy Grid Services

Operating revenue and EBIT per business area

19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 14 14

2017 2018

+20% +20% +5% +5%

  • 4%

4% 142 142 158 158 190 190 200 200 58 58 46 46

  • 10%

10%

  • 5%

5% +26% +26% 881 881 736 736 555 555 580 580 11 11 Low electricity prices with impact on Energy, solid Grid contribution, profitable growth in Services Operating revenue Operating profit One-off effects

CHF F m

1, 1,262 262 1, 1,326 326

2017 2018 2017 2018 2017 2018 2017 2018 2017 2018

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| BKW |

Energy: negative price effects largely compensated

19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 15 15

2017 2018 2017 2018 Operating revenue Operating profit

5% 5% Higher revenue in spite of negative price effect on revenue of CHF 80m thanks to:

  • Higher wind volumes
  • Higher wholesale revenue

Largely compensated on EBIT-level by

  • Successful management of energy

position (trading)

  • Better sales margins
  • Efficiency gains

142 142 158 158

  • 10%

10% 1, 1,262 262 1, 1,326 326 Key points Ongoing successful transformation of the Energy business

CHF F m

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| BKW |

Grid: solid EBIT-contribution

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  • 5%

5%

  • 4%

4%

  • ne-off effect

Comparable operating profit on PY-level despite lower revenue

  • Lower revenue due to minor tariff

reduction

  • Further efficiency gains
  • PY: one-off reimbursement for transfer
  • f transmission grid to Swissgrid (CHF

11m) Key points

CHF F m

200 200 190 190 555 555

2017 2018 2017 2018 Operating revenue Operating profit

11 11 580 580 11 11

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| BKW |

Revenue breakdown

Services: profitable growth with margin increase

19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 17 17

+20% +20% 46 46 +26% +26% 736 736 881 881 Engineering Building Solutions Infra Services Energy Services Expansion on track with margin increase

  • Sales above CHF 0.8bn, up by 20%
  • 18 acquisitions in 2018 (Engineering

and Building Solutions)

  • Continued improvement of

EBIT-margin from 6% to 7% Key points 58 58

CHF F m 2017 2018 2017 2018 Operating revenue Operating profit

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| BKW | 17 17 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION

Dividends Share price

10'000 20'000 30'000 40'000 50'000 25 35 45 55 65 75

Daily trading volume SIX Pay out ratio

CHF Volume in pcs. CHF Dividend per share Pay out ratio

Target zone pay out ratio 1.00 1.20 1.20 1.60 1.60 1.60 1.80 1.80

20% 30% 40% 50% 60% 70% 80% 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 2.20 2011 2012 2013 2014 2015 2016 2017 2018

Annual total shareholder return of 23% since implementation of strategy

BKW SPI

Share price and dividends

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Outlook and strategy update

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| BKW | 20 20 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION

BKW expects to successfully continue its transformation

2019 is the last year influenced by negative energy price effects. BKW intends to compensate these negative effects through:

  • further profitable growth of the Services business
  • repositioning of the Energy business – aligned to changing market drivers
  • efficiency gains

BKW expects FY 2019 operating profit to be in the range of CHF 320 to 340m

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| BKW | 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 21 21

BKW competencies for growing markets

Resource efficiency for urban living and infrastructures Flexibility for decentralised energy systems Renewables and infrastructures for an energy hungry world Megatrends drive growing markets

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| BKW | 22 22 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION

Renewables & infrastructures for an energy hungry world

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| BKW | 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 23 23

Strong renewables portfolio

Growing in wind and small hydro Diversified wind in terms of regulation and weather impact

100 200 300 400 500 600 700 800 Installed capacity in MW Small hydro Wind

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| BKW | 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 24 24

BKW's flexible power plants increase value creation

Price trend favours flexibility High share of flexible energy production Capacity installed and under construction: 3.2 GW 60% 60%

Jan Dec Electricity price

Tod

  • day

2030 2030

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| BKW | 25 25 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION

22'000 km

km

Largest distribution grid in Switzerland

CHF F 1,900,000,000

Regulatory Asset Base

36.4 %

Largest shareholder

  • f Swissgrid

3.8 %

WACC / ROCE regulated

CHF F 120,000,000

Maintenance/replacement per year

Grid infrastructure – BKW's robust anchor

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| BKW | 26 26 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION

Mühleberg decommissioning: major project risks mitigated

Positive financial effect in 2020 Project plan on time 20 J 20 June 18 18

DETEC issues decommissioning order («Stilllegungsverfügung»)

End nd 1 18

All long term item contracts closed

6 S Sept eptem ember ber 18

No official complaints, decomissioning request legally binding

20 20 Dec ecem ember ber 19 19

Final shutdown of power operation KKM

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| BKW | 27 27 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION

Flexibility for decentralised energy systems

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| BKW | 28 28 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION

Optimised communications technology for smart meter deployment

Grid technology for decentralised energy systems

Flexibility for BKW's and third party grids Big data technology for grid and geoinfo systems

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| BKW | 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 29 29

Trading competence generates value from volatile markets

Trading services increase tradeable portfolio Inflexible assets made flexible Increasing focus on short-term trading Own Assets Managed Assets

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| BKW | 30 30 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION

Resource efficiency for urban living and infrastructures

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| BKW | 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 31 31

Services network meets society's needs

Smart infrastructures Intelligent urban planning Innovative building solutions

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| BKW | 19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 32 32

Network approach: driving further margin growth

Competencies for complex projects Synergies with shared services Locally anchored = trusted client relations

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| BKW |

BKW strong business model: growth and robustness

Attractive growth in services business Growing markets and good margins Aligning energy to changing markets Significant upside potential Grid – robust anchor for the group Regulated, stable income

19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 33 33

Strength Capital Revenue / EBIT trend

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Thank you for your attention

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Questions?

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| BKW |

Financial calendar and contact information

19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 36 36

Finan ancial al c cal alendar ar – Annual general meeting: 24 May 2019 – Ex-dividend date: 28 May 2019 – Dividend payment: 31 May 2019 – Publication of 2019 half-year results: 3 September 2019 For f fur urthe her inf nformation, n, please c cont ntact: Thomas Herren, Investor Relations Officer Tel (+41) 58 477 53 56 investor.relations@bkw.ch

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| BKW |

Disclaimer

19.03.2019 ANNUAL RESULTS 2018 INVESTOR PRESENTATION 37 37

This presentation contains forward-looking statements which are made on the basis of current expectations and assumptions. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking

  • statements. Potential risks and uncertainties include, among others, such factors as market and economic

conditions, governmental regulations, competitive conditions, interest rates and fluctuation in currency exchange rates. Although BKW believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be

  • achieved. BKW undertakes no obligation to update any forward-looking statements, whether as a result of

new information, future events or otherwise.