BKW on ambitious growth path*

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*Ad-hoc announcement pursuant to Art. 53 SIX Listing Rules

BKW's revenues have steadily increased over the past five years. Between 2016 and 2020, its operating profit (EBIT) rose by 26 percent to CHF 436 million despite record-low electricity prices. Now, BKW is entering into an even stronger growth phase. Over the next five years, it intends to increase sales by 50 percent and EBIT by 60 percent. It will also realize substantial growth in cash flow. BKW will substantially grow its revenues in the energy and service business, while the grid will continue to generate a stable contribution. This well-balanced mix of growth and robustness forms the foundation for BKW's success.

Global megatrends like climate change, urbanization and technologization/digitalization present major challenges for both society and the economy. With its unique company network and extensive expertise, BKW can make an important contribution with respect to solve these challenges. BKW is active in the energy, infrastructure and buildings markets. These markets not only offer great opportunities of its own, but also become more and more integrated. There is increasing demand for sustainable and resource-efficient integrated solutions that BKW is able to offer.

Expanding renewable energy production

In the energy business, BKW will receive a boost from rising electricity prices and electrification in the transport and heating sectors. The company will specifically invest in renewable energies, further expand its portfolio of wind turbines and will add photovoltaic to its portfolio.. This especially in southern European countries where there are favorabe conditions for his technology. Initial successes have already been achieved in Italy. (see box). BKW will also grow in the area of customer solutions (smart energy, e-mobility) and consulting for large customers with respect to integrated energy solutions.

Above-market growth

BKW will grow faster than the market in the service business, achieving this goal by organic growth as well as further acquisitions. Due to its network, BKW is able to win larger and more demanding projects in order to meet customers' demands for integrated sustainable solutions. BKW will substantially invest in attractive market segments such as building automation and ICT.

High cash generation

In the coming years, BKW will invest more than half a billion Swiss francs in growth in the energy and service business. Based on good results over the past years and the high level of cash generation in particular, BKW will be able to finance these investments on its own .

BKW will present the details of its growth strategy up to 2026 on Capital Markets Day today. Capital Markets Day starts at 9.30 a.m. You can follow it via livestream:

media10.simplex.tv/content/983/5554/182774/.

BKW acquires solar parks in Italy

BKW has signed a cooperation agreement with developer Ibernordic. This collaboration offers the opportunity to acquire photovoltaic projects in Italy with an installed capacity of up to 250 MW over the next four years. BKW has already acquired its first projects. The two solar parks in the southern region of Italy called Basilicata have an installed capacity of 20 MW each and are scheduled to go into operation from 2023. They are located near BKW's wind farms in southern Italy, which offers great synergy potential. Ibernordic is a Danish company which specializes in wind and solar system development, with a focus on Italy, Spain and Sweden.

The expectations and forward-looking statements expressed in this document are based on assumptions and are subject to risks and uncertainties. This means that the actual results may differ materially from those expressed or implied by the expectations and statements. This press release is issued in German, French, English and Italian. The German text is the authoritative version.