bkw well-positioned in attractive markets

BKW well-positioned in attractive marketsBAADER HELVEA SWISS EQUITIES CONFERENCE, 10 JANUARY 2019RONALD TRÄCHSEL, CFO BKW

Operating revenue CHF 2.6bn

EBIT CHF 0.4bn

Operating cash flow CHF 0.5bn

Liquidity CHF 1.2bn

Net debt CHF 0.4bn

Employees 7,800 FTE*

52.5%

10.0%

37.5%

Canton of Berne

Groupe E

Free float

Shareholder structure

Facts & Figures 2017

* end-2018

2Baader Helvea – Swiss Equity Conference 10.01.2019

Growth in Switzerland and in international markets

3

CompaniesGeneration facilities

Companies

Generation facilities

Baader Helvea – Swiss Equity Conference 10.01.2019

4

BKW business areas

Energy Grid Services

Generation (capacity: ~3'700 MW),trading, sales

Revenue: CHF 1,260mEBIT: CHF 158mEmployees: 1,000 FTE

Distribution grid: ~22'000km

Revenue: CHF 670mEBIT: CHF 211mEmployees: 800 FTE

Services around infrastructure

Revenue: CHF 740mEBIT: CHF 46mEmployees: ~6,000 FTE


239

324 317347

309346

379

0

100

200

300

400

500

2011 2012 2013 2014 2015 2016 2017

5

Negative electricity price effect on revenue: ~CHF 700m since 2014

EBIT history (comparable)

CHF m

60 EUR/MWh

30 EUR/MWh

Market priceof electricity240 150140

- CHF 670m

price effect on operating revenue

140


Strategy

BKW competencies meet changing social needs and priorities

7

Remodelling of energyinfrastructure

More efficient buildingsand infrastructures

High investment need in infrastructure in Europe

Significant position and operational know-howin wind and flexible hydro power

Strong track record in management of energypositions (exploiting short-term marketfluctuations)

Extensive, efficient power grid

Relevant offering of comprehensive, tailoredsolutions for efficient buildings

Strong competencies in engineering and in grid infrastructure services

Climate change

Urbanisation

Digitalisation

Megatrends lead to growing needs for BKW expertise in attractive and growing markets


Remodelling of energy infrastructure (I):Buildup of renewable energies

8

100

200

300

400

500

600

700

800

2011 2012 2013 2014 2015 2016 2017 2018 2019

Installed capacity in MW Wind and small hydroStrategically diversified wind power portfolio

MW GWh/year

Wind farm portfolio

Operational 482 800

Under construction 174 590

Small hydro portfolio

Operational 89 270

Projects 15 56


Remodelling of energy infrastructure (II): Advantageous flexible hydro power capacity

9

- Storage and pump-storage plants in Switzerland

- Competitive edge with high share of own flexible power plants:

- Advantageous geographical location

- High flexibility

- Competitive prices

42%


Total installed capacity: 3'500 MW

Flexible Base load

40%

Hours per year with price extremes

t

Remodelling of energy infrastructure (III): Trading well positioned to exploit opportunities in volatile markets

10

Management of ownenergy positions

Managing and trading forthird-parties

High competence in short-term trading

Volatile energy markets require comprehensive expertise

Optimized and efficient integrationof renewable energies in the energymarket


Remodelling of energy infrastructure (IV): Grid business adds stability to performance

Increase efficiency, implement "smart grid" to copewith new requierements of the market:

Full Market Liberisation

Decentralized production

Smart Meters

11

Key figures Grid business

Owner of largest distribution grid in Switzerland ~22'000 km

Regulatory Asset Base CHF 1.7bn

WACC / ROCE regulated 3.8%

Investments per year CHF 120m

Largest shareholder of Swissgrid (transmission grid) 36.4%


Efficient buildings and infrastructures: Powerful, locally anchored Building Solutions network

Buildings consume 50% of the energy – clients desire integratedsolutions that ensure energy efficiency and comfort

Successfull build-up of nationwide network withcomprehensive, integrated solutions

Synergies in market offerings, procurementand administration

EastCentralWest

0

100

200

300

2013 2014 2015 2016 2017 2018

CHF m operating revenue

CAGR 33.7%

12

Building Solutions

2018

7 acquisitions

Regional clusters strengthened

Collaboration intensified


High investment needs in infrastructure (I): Infra Services meet growing demand for complex grid infrastructures

East

Energy

West

Arnold

Water

Central

0

100

200

300

2013 2014 2015 2016 2017 2018


CAGR 8.0%

13

2018

Network internally strengthened

Further buildup of combinedservices


Extensive and widespread networks need considerable maintenance

Largely identical customer base for multi-grid infrastructureservices: clients desire offerings from a single source

National presence with efficient, regional organisational structure (market leader power grid)

High investment needs in infrastructure (II): BKW well-positioned with expertise of 2,400 engineers

Clients need locally anchored providers with full set ofcompetences

BKW network combines larger companies with wide-ranging expertise and smaller local companies with specialisedcompetencies

Close exchange within the network with the aim of becoming "best-of-class"

0

50

100

150

200

2013 2014 2015 2016 2017 2018


CAGR 48.6%

14

2018

12 acquisitions

Network significantly expanded


Balanced positioning with strong upside potential

Adjustment to changingmarkets

Potential for high added value

High capital intensity

Stable and robust business

Regulated income

High capital intensity

Energy(1,000 employees)

Grid(800 employees)

Services(~6,000 employees)

Attractive growth business

Good margins

Low capital intensity


Strategy with aim of sustainable growth

Revenue

EBIT

Energy Grid Services


Strong business model geared towards sustainable growth

Strategy execution: investments in growth, financed by own funds

Investments financed byown cash flow generation

Significant investment program – growth in services and renewable energies

Maintenance / replacement

Growth

486

410

486 465

0

100

200

300

400

500

600

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

CHF m

Funds from operationsCHF 2.5bn until 2024


Share price and dividends

1.00

1.20 1.20

1.60 1.60 1.60

1.80

20%

30%

40%

50%

60%

70%

80%

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

2.20

2.40

1 2 3 4 5 6 7

Performance 2018 >110% since 2014 Daily trading volumes over CHF 2m since 2017

CHF Dividend per share Pay out ratio

Increased dividends reflect successful transformation

Target zone pay out ratioPay out ratio

2011 2012 2013 2014 2015 2016 2017

0

5'000

10'000

15'000

20'000

25'000

30'000

35'000

40'000

45'000

50'000

25

30

35

40

45

50

55

60

65

70

75

CHF Volume in pcs.

BKW

SPI

Daily trading volume SIX


Disclaimer

This presentation contains forward-looking statements which are made on the basis of current expectations and assumptions. Theseforward-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 andeconomic 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.


bkw well-positioned in attractive markets

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