Financial news

In 2024, Enexis delivered a record work package for the fifth consecutive year, investing nearly €1.5 billion. With the installation of 1,450 kilometres of electricity cable and the construction of 1,201 stations, 1,225 megawatts of additional capacity were added through expansion, and 695 megawatts through regular replacement. In addition, nearly 500 megawatts of grid capacity were freed up by optimising grid use and implementing flexible solutions. This is equivalent to the total capacity of the city of Eindhoven. Despite significant progress in expanding the electricity grid, customers are not yet fully benefiting. After large companies, households now also having increasingly to take into account that it may take a long time before they can get a new or heavier connection. Rutger van der Leeuw, CEO of Enexis Groep: ‘Thanks to the tireless efforts of our employees, contractors and close collaboration with customers and local governments, Enexis made significant progress with this record expansion in 2024. We remain committed to meeting the growing demand for grid space. However, our waiting lists continue to grow, and the tipping point has yet to be reached.’ Increasing the grid load to accommodate more customers To connect as many customers as possible, Enexis has not only accelerated the expansion of the grid and improved utilisation but also increased the load on the grid. This leads to a controlled concession in reliability. In 2024, the average number of outage minutes per customer rose slightly to 22.5 minutes. Despite this, the grid remains one of the most reliable in the world, with a supply reliability of 99.99%. ‘High reliability remains a crucial value for us. At the same time, we want to provide as many businesses and households as possible with access to our network. It’s a complex dilemma with significant implications for society,’ says Rutger van der Leeuw. Insight contributes to grid-conscious energy use Grid congestion and longer waiting times for new or upgraded connections are the new reality. In 2024, we took additional steps to better inform customers about our grid's capacity and potential solutions, such as flexible contracts and innovative technologies. We provide large businesses with insight into the grid situation through capacity maps. We also sign flexible contracts with them to offer the desired capacity despite the full grid. Households and small businesses can use the Grid Checker to see how much space is available on the electricity grid and how long they may have to wait. ‘Customers are increasingly aware that a full electricity grid requires a new way of thinking about energy use,’ says Van der Leeuw. ‘To help them use the available energy more efficiently, they need insight into the options on the electricity grid. By maintaining ongoing dialogue with our customers, we aim to provide information that helps them make timely and informed decisions about their future and sustainability.’ Record investments put pressure on financial position Future-proofing the energy system resulted in record expenditures for Enexis in 2024, with a work package of €1.486 billion, € 272 million more than in 2023. These expenditures put pressure on Enexis' financial position. Last year, Enexis spent an average of over €1.5 million per day more than it received. This resulted in a negative cash flow from operational activities and investments in assets of € 567 million. This deficit increased compared to 2023 and is expected to persist in the coming years, as the costs of necessary grid investments continue to exceed the benefits. To sustain its investment efforts, Enexis successfully issued a fourth € 500 million green bond. Net profit increased by €182 million to €254 million in 2024 due to better alignment between customer tariffs and costs compared to 2023. The increase was mainly driven by a €582 million rise in net revenue, partially offset by higher costs of transmission services. Enexis has a strong credit rating profile. Standard & Poor’s long-term credit rating was adjusted from A+ with a positive outlook to AA- with a stable outlook. Moody’s credit rating remained unchanged at Aa3 with a stable outlook.

The Supervisory Board (SB) has appointed Marjanne van Ittersum (53) as Chief Financial Officer (CFO) on the Management Board of Enexis Groep with effect from 1 June 2025. Marjanne will be succeeding Mariëlle Vogt, who announced last autumn that she would be leaving Enexis around the summer of 2025. Marjanne started her career at KPMG and has held various roles in Controlling, Finance, Corporate Governance, Risk Management, Tax and Legal at Ahold and later HEMA. From HEMA, she moved to NS (the main Dutch railway operator), where, as Finance Director of the two largest business units, she was responsible for the finances of the operational and commercial part of the company. For the past five years, Marjanne served as CFO for Ingka Centres, a sister company of Ikea Retail and a global developer and operator of shopping centres. In that capacity, she was responsible for Business and Financial Control, Administration, Governance, Portfolio Management and Business Operations Improvement. Jos Nijhuis, Chairman of the Supervisory Board, responded: “I am very delighted that Marjanne opted to join Enexis. She will be a worthy successor to Mariëlle Vogt, who will be leaving the organisation in peak condition. Moving forward, keeping up with rapidly increasing customer demand will continue to be the main challenge for Enexis. We will only be able to successfully navigate the energy transition if we continue to invest in the energy grid. The investments increased ever year, calling on Enexis to get the most out of the organisation, to continue its digitisation efforts and to keep looking for innovative solutions. For this to be possible, Enexis needs solid financial foundations, and while the years ahead will prove to be challenging, I am convinced that Marjanne's ample experience in the public and private domain will enable her to fulfil her role with great aplomb. I know that all of us on the Supervisory Board are looking forward to working with Marjanne." Marjanne van Ittersum: "I feel honoured to contribute to the great challenge ahead of us as CFO of Enexis. The energy transition requires substantial investments and a financial strategy that enables growth, while ensuring grid reliability and affordability for our customers. I am very excited to work with my colleagues and partners to keep Enexis financially healthy and future-proof amidst the investment challenges ahead and will dedicate all my energy and enthusiasm to this important task.”

CFO Mariëlle Vogt has announced that she will leave Enexis around the summer of 2025. Announcing her departure from Enexis now will allow sufficient time to search for a successor and facilitate a smooth handover. Mariëlle has been CFO since January 2021 and previously worked as Director of Finance at Enexis Groep. Mariëlle Vogt: "The past eight years at Enexis have been particularly enjoyable. Enexis is a wonderful company to work for and it has been a privilege to contribute to such an important social issue as the energy transition. However, from the summer of 2025, I want to focus on a freer, more independent role. This also involves personal considerations such as spending more time with my partner and family. I’ll continue to use my management experience in a number of supervisory positions and for advising on the energy transition and supporting smaller entrepreneurs to become sustainably financially sound. I look forward to fleshing out these plans after I leave Enexis. Until then, I will continue to devote all my energy and enthusiasm to working with my colleagues on all the challenges we face at Enexis." Rutger van der Leeuw, CEO Enexis Groep, is sorry to see Mariëlle leave Enexis: "Of course I respect Mariëlle's choice, but I would have liked to work with her a bit longer. She is a particularly pleasant and friendly colleague who is sharp on substance and focused on achieving results, but always with an eye on the mutual relationship. Mariëlle leaves Enexis in good financial shape. The investment task remains undiminished but, thanks to Mariëlle, we have built up a strong credit position in recent years. Of particular note is her personal commitment to keeping the energy transition affordable for everyone in the Netherlands. I am pleased that Mariëlle has given us time to look for a successor and get used to her departure. But above all, I wish her all the best for the future, personally and in her working life." Chairman of the Supervisory Board Jos Nijhuis also respects Mariëlle Vogt's decision: "Mariëlle has done an outstanding job as CFO and the Supervisory Board will be extremely sorry to see her go. I want to thank her immensely for her contribution and wish her all the best for the future. We will begin the search for a new CFO as soon as possible."

Enexis Holding N.V. announces the successful closing of a new Revolving Credit Facility for an amount of € 1 billion with a syndicate of seven banks. The new facility replaces Enexis' existing € 736 million Revolving Credit Facility, which was scheduled to mature on 10 December 2025. The facility, which carries a tenor of five years and has two, one-year extension options, was very well supported by the company's relationship banks ABN AMRO Bank N.V., BNG Bank N.V., BNP Paribas S.A., ING Bank N.V., Natwest Markets N.V., Coöperatieve Rabobank U.A. and SEB, with SEB taking the role of coordinator and facility agent. The facility underpins the company's strong credit and liquidity profile and is intended for general corporate purposes. Enexis is rated Aa3 by Moody's and AA- by Standard & Poor's.

Over the next 12 years, Enexis Netbeheer intends to lay more than 76,000 kilometres of thick power cables in the ground to expand the electricity network in the Dutch provinces of Groningen, Drenthe, Overijssel, Brabant and Limburg. Some 40,000 kilometres of medium-voltage cables and more than 36,000 kilometres of low-voltage cables are needed for the reinforcement and expansion of neighbourhood grids. To facilitate the operation, Enexis is scaling up from three to eight cable suppliers after a tender worth 2.3 billion euros. These impressive figures demonstrate the huge scale of this historic renovation of the electrical grid in the Netherlands. While the connected capacity of solar and wind installations continues to increase significantly, the electrification of society is driving demand at a similarly rapid pace. As a consequence, network capacity in many areas is reaching its limits and hundreds of entire neighbourhoods need to be dug up to strengthen low-voltage networks. Also, a great many local distribution substations need to be built, and new medium-voltage cables will be laid to cover both long and short distances. A vast amount of cable in all. Security of supply essential “The task of expanding and reinforcing the network in such a short space of time is quite a challenge, but it would obviously be impossible without cables to lay in the trenches - everything would grind to a halt,” says Enexis CEO Rutger van der Leeuw. “We want to guarantee supply security of the requisite cables on a par with increasing volumes, which is why we are scaling up from three to eight suppliers. For the Enexis service area alone, we need a total cable length to take us around the world twice, as it were. We really are talking a staggering amount of cable.” Collaboration with five new suppliers Enexis Netbeheer’s three existing suppliers, Prysmian Netherlands, Twentsche Kabelfabriek and Waskönig+Walter Kabel-Werk, will continue to produce cables for the network operator as before. Now, from the tender, a further five are coming on board: Tele-Fonika Kable, NKT A/S, Hellenic Cables, KLZ Vertriebs and GM Products. Van der Leeuw: “We’ve always been perfectly satisfied with our existing suppliers and are very happy that they’re staying on. At the same time, we are delighted to now welcome five new manufacturers as our partners. They, too, will play a crucial role in our expansion operation over the coming years.” Circularity Enexis strives to promote the circularity of materials used in cables, as well as of the manufacturing process itself. An important point of focus in this respect is reduction of virgin materials – materials that have never been used or applied before. Judith Linssen, Director of Procurement at Enexis Netbeheer: “We are very pleased to be continuing the relationship with our trusted suppliers and are very much looking forward to working with our five new cable partners. The expansion of our supplier pool not only guarantees future supply security, it will also enable us to make a positive impact on circularity together.”

In the first half of 2024 Enexis spent € 654 million on its grids, an increase of 18%. This has resulted, among other things, in 1,020 megawatt newly built transmission capacity for customers. This equals twice the total capacity of the city Eindhoven. The introduction of flex contracts with large-volume business customers, enabled Enexis in this period to connect more customers to its grids. Despite these efforts, the demand for transport capacity continues to grow faster than Enexis can build. Enexis is not only being confronted with the maximum capacity of its grids, but also the available physical space to build and the shortage of technical employees form an increasing challenge. This means that customers have to wait longer for a connection. This is set out in Enexis’ interim report, which was published today. Pressure on the low-voltage grid is increasing To be able to continue to serve as many customers as possible, we are pushing the limits of our grid. We strive to make maximum use of our grids. The downside of this is that the likelihood of an overload of our electricity grid is increasing, resulting in more power outages. The average electricity outage time amounted to 12.8 minutes in the first half of 2024 (first half of 2023: 11.2 minutes). With a reliability of 99,995%, our grid remains one of the most reliable grids in the world. In the first half of 2024, we also saw increasing pressure on the low-voltage grids in residential areas. Due to the unabated growth of solar panels, we see a structural increase in voltage problems at households. Especially in the spring and the early summer, so much electricity is being produced that this leads to a grid overload and power outages in more and more locations. We need to take emergency measures more and more often to avoid outages. For instance, sometimes on sunny or windy days, solar parks and wind farms have to be switched off to avoid a grid overload. District approach We aim to solve the problems on the low-voltage grid in the long term by expanding or upgrading the electricity grid district for district using the district approach. To this end, the first municipalities have signed collaboration agreements with Enexis. Han Slootweg, COO of Enexis: “Enexis, in collaboration with municipalities and contractors’ partners, will renovate the electricity grid district by district. Over the next three years Enexis plans to install more than 6,800 kilometres of cables and about 4,100 transformers for the largest renovation of our electricity grid ever. To achieve this, we must work closely with municipalities on spatial planning. Enexis will start with the districts where the urgency is the highest and where we can start working quickly with our contractors.” Recently, Enexis published an initial planning of the district approach to provide customers with clarity on when their district will be addressed. During the renovation, Enexis aims to minimize inconvenience and ensure the continuity of energy supply. Spatial integration of infrastructure The renovation of the electricity grid demands a lot of space both under and above ground. This is a formidable task in a time in which there are already many other spatial challenges for municipalities and provinces. Spatial integration problems result in delays in the building of infrastructure. Consequently, a proactive approach together with municipalities is essential to accelerate this process. By working together in locating land, streamlining permit procedures, and adapting regulations, we can overcome these obstacles. Enexis aims to sign collaboration agreements with as many municipalities as possible in the coming months to make agreements on the necessary measures. Capital expenditures continue to grow Capital expenditures increased further in the first half of 2024, mainly as a result of expansion and upgrading of the electricity grid. Due to these strong investments, the cash flow from operationalactivities and investments is € 286 million negative in the first half year of 2024 (2023: €240 million negative). To finance investments, we issued the fourth green bond of €500 million in May 2024. With the proceeds of this bond, we can continue to invest in the urgently required expansion and upgrading of our grid. Enexis’ credit ratings are very strong. The long-term credit rating at Standard & Poor's was revised in the beginning of 2024 from A+ with a positive outlook to AA- with a stable outlook. Our credit rating at Moody’ has remained unchanged (Aa3 with a stable outlook). Net profit over the first half of 2024 amounted to € 122 million. This is €107 million higher than in the same period last year. The purchasing costs in connection with grid losses rose significantly in the first half of 2023 due to the strong increase in energy prices. These higher costs were not fully recouped in the tariffs in 2023. The tariffs are now more in balance with the costs in 2024, also due to the new method decisions that the Netherlands Authority for Consumers & Markets (ACM) published on 23 December 2023 following the decision of the Trade and Industry Appeals Tribunal (CBb).

Enexis installed approximately 1,350 kilometers of electricity cables last year and built more new stations than ever before. A record capacity of 2,180 megawatts was added: 1,258 megawatts through expansion and 922 megawatts through regular replacement. Enexis spent €1.214 billion on its grid in 2023, an increase of 18%. This growth was partly due to the increasing number of technicians choosing a career at Enexis, with 370 (FTE) technical employees starting last year. The grid operator announced this during the publication of its 2023 annual report. Rutger van der Leeuw, CEO of Enexis Groep, stated, "Last year, our employees worked very hard to achieve the necessary acceleration. In the coming three years, Enexis is investing 3 billion euros in the expansion of its grids and about 1.5 billion euros in maintenance and management of the existing infrastructure. We plan to expand all 125 existing high-voltage stations and build over 40 new ones in the coming years. Despite significant efforts, the gap between what is needed and what we are able to build additionally, became bigger in the past year.” In 2023, Enexis was again confronted with an enormous growth in both the demand for electricity and the supply of wind and solar energy. Consequently, waiting times for new customers or customers who wish to upgrade their connections have increased further. “As result, we had to inform large business customers that, in some cases, it could possibly take five to ten years before we can provide a new or upgraded connection. This is a very unwelcome message that we would rather not deliver. It means that these entrepreneurs will have to postpone their plans or look for other solutions”, said Van der Leeuw. Collaboration with customers In our encounters with customers, we see that they are becoming  increasingly aware that electricity grid congestion is a new reality in the energy transition. Moreover, large business customers are feeling the need to work together with grid operators to make optimal choices as the consequences of the lack of grid capacity are far-reaching for them. “Research indicates that many companies do not fully comprehend the impact of the congested electricity grid on their business operations,” Van der Leeuw states: “As a result, these companies are suddenly confronted with long waiting times when they actually submit a connection request.” Enexis provides detailed information to businesses about regional waiting times via waiting list maps, showing how many large business customers per station are on the waiting list and how much capacity they have requested. Van der Leeuw: “With this information, businesses are increasingly realising that they have to look at their energy requirement in a different way. In addition, businesses are thus better able to foresee how grid congestion will impact their business activities.” The electricity grid is not full all the time. This is mainly the case during peak hours, there are also times at which the demand for grid capacity is lower. Businesses can possibly still make use of the grid via flex contracts. Enexis notes a slow increase in interest for flex contracts, also among existing customers. Currently, a few companies are willing to shift their production processes to the night, share electricity with a neighbouring company or install batteries to make their business case possible. Van der Leeuw adds: “We are also learning more about this every day and are developing new types of contracts to give customers a perspective for solutions.” Reliability of the electricity grid remains high In the meantime, Enexis is connecting as many customers as possible and by doing so it is increasingly pushing the electricity grid to its limits. More and more often, consumers are also being confronted with the consequences of the full energy grid. For instance, they can encounter the inconvenience of outages of inverters of solar panels. Interruptions can also occur more frequently and last longer. The number of minutes that an average customer did not have any electricity rose in 2023 to 20 minutes. This is an increase of 6 minutes compared to a year earlier. Despite this increase, the electricity grid, with a reliability of supply of 99.996, remains one of the most reliable electricity grids in the world. Strong financial position The unprecedented task of preparing the energy grid for the future leads to enormous investments. Due to a further increase in investments, the regional grid operator generated a negative cash flow from operational activities and investments for the energy transition amounting to €516 million in 2023. This trend is expected to continue in the coming years. This negative cash flow was partly financed by the proceeds of the sale of Fudura in 2022, which shareholders largely reinvested in the company. Unfortunately, the rising costs of the energy transition are also being felt by Enexis's customers. For instance, households were faced with a tariff increase of about 10 euros a month for their combined electricity and gas bill in 2023. The company's net profit fell to €72 million in 2023. Compared to 2022, this represents a profit decrease of € 115 million (excluding the proceeds of the sale of Fudura). This decrease is mainly attributable to higher purchasing costs for transport and distribution losses and higher operational costs. Enexis was able to maintain its strong financial position. This is also confirmed by S&P Global Ratings with a credit rating of AA- (stable outlook) and by Moody’s with a credit rating of Aa3 (stable outlook).

The Supervisory Board has appointed Han Slootweg (47) as Chief Operating Officer (COO) of Enexis Groep with effect from 1 April. Slootweg will take over this role from Liesbeth Kaashoek, COO ad interim until 1 April 2024. In the role of COO, Slootweg will be responsible for all the technical operations and customer processes at Enexis. Han Slootweg started his career as a Senior Net Strategist at Essent, after completing his PhD at TU Delft. He has been working for Enexis since its founding in 2008, holding the positions of Manager Innovation and Manager Operations Expertise and Stations. For the last seven years, as Director Asset Management, Slootweg has been responsible for the expansion and maintenance strategy for Enexis’ gas and electricity networks. In this function he also played a very active role in the sector and within the industry association Netbeheer Nederland. In addition, Slootweg is a part-time Professor of Smart Grids at TU Eindhoven's Faculty of Electrical Engineering. Jos Nijhuis (Chairman Supervisory Board): “We are particularly pleased that in his new role of COO Han will continue working on the realisation of the changing energy system for Enexis. With his impressive track record, Han has been a standard-bearer for Enexis and the industry in recent years. Han has shown in his previous positions and from his role at TU Eindhoven that he has the considerable knowledge, expertise and vision to fulfil the challenging role of COO. The SB sees in Han a results-oriented director with extensive experience in the organisation, who is also able to maintain good relations with a diverse and complex group of stakeholders. As SB, we look forward to working with Han. I take this opportunity to thank Liesbeth Kaashoek for the excellent way she filled the role of temporary COO from the end of October 2023. Han Slootweg: "The challenges facing Enexis are huge. Demand for transmission capacity on the power grid is growing rapidly. We are making every effort to scale up production and expand our grids faster, so that we can again offer our present and future customers the prospect of new connections and expansion of their capacity. It is important to us that customers know where they stand and we are working hard on providing them with more insight into this. Of course, we will also continue to ensure a safe and reliable gas network in order to supply our customers with sustainable gas in the future. Safety is and will remain our top priority. It will be an honour for me to contribute towards this as COO of Enexis. I am looking forward eagerly to working together with colleagues, construction partners and others on the huge task ahead!" The Central Works Council and the Shareholders' Committee both delivered a positive opinion on Han Slootweg’s appointment as COO. With the appointment of Han Slootweg, the four-member Executive Board from 1 April consists of: Rutger van der Leeuw (chair), Mariëlle Vogt, Jeroen Sanders, and Han Slootweg.

The EIB has signed a €500 million lending agreement enabling Enexis to expand and increase the capacity of its electricity network. The investments, aligned with the objectives of the REPowerEU initiative, will take place in the Dutch provinces of Groningen, Drenthe, Overijssel, Noord-Brabant and Limburg. By expanding capacity, the project is expected to cater to the increased production and consumption of renewable energy related to the green transition. The European Investment Bank (EIB) has signed a €500 million loan to Dutch distribution system operator (DSO) Enexis to finance part of its 2023-2024 investment activities. By refurbishing, upgrading and expanding its electricity network in the Netherlands, the Dutch grid operator intends to use the funding to future-proof its operations. The investments linked to the deal are expected to be concluded by the end of 2024. The loan falls under the EIB’s priorities in terms of climate action and environmental sustainability, and is aligned with the REPowerEU initiative. “As Europe’s climate bank, tackling the financing challenges of the energy transition is currently one of our top priorities.” commented EIB Vice-President Kris Peeters. “In the light of the switch to renewable energy sources and difference in generating habits, adequate grid capacity becomes ever more important to avoid losing energy during peak periods of wind or sunlight. Enexis will significantly reinforce and expand its network to cater for the transition to green energy, and we’re happy to support that.” CFO of Enexis Mariëlle Vogt added: “We are proud to welcome the EIB as our new financial partner, and we are happy to see how the EIB’s commitment aligns with the rollout of our own strategy. The network improvements that will be financed with this loan will target all the areas where Enexis is active, meaning the provinces of Groningen, Drenthe, Overijssel, Noord-Brabant and Limburg.” Enexis’ investments will include the overhaul or new installation of around 7 500 km of new medium-voltage underground cables, 2 000 secondary substations, some 7 100 km of low-voltage cables, and the installation of around 370 000 smart meters. Overall, the project is expected to generate over 6 500 full-time employment positions during the construction phase.  

The Supervisory Board has appointed Liesbeth Kaashoek as interim Chief Operating Officer (COO) of Enexis Groep with effect from 1 November. Kaashoek takes over this role from Rutger van de Leeuw, who was appointed CEO of Enexis last month. In the role of COO, Kaashoek will be responsible for all the technical operations and customer processes at Enexis. She will take on the role until 1 April 2024. The Supervisory Board then expects to fill the position of COO on a permanent basis. Liesbeth Kaashoek was previously responsible for Parcels and Logistics Solutions at PostNL and was a member of PostNL’s Executive Committee. In addition, she has held various management positions within the postal company’s business operation. Jos Nijhuis (Chairman Supervisory Board): "With Liesbeth, we are bringing in a highly experienced director who is used to managing and shaping complex operational processes at PostNL. With her profile, she and her team will be able to take Enexis' reform process to the next level  in the coming months. Liesbeth’s arrival makes the Board of Directors complete again. This also means that Rutger can fully focus on his role as CEO. Once again, I would like to express my sincere appreciation, also on behalf of my fellow Supervisory Board members, for the way in which Mariëlle, Jeroen and Rutger have ensured the continued excellent performance of Enexis." Liesbeth Kaashoek: "I'm looking forward to joining Enexis, a company that is crucial to the implementation of the energy transition. The changes in our energy system will affect everyone and have a major impact on companies and households. I think it's a great challenge to be able to contribute to this from here in the coming months." The Central Works Council and the Shareholders' Committee both delivered a positive opinion on Liesbeth’s appointment as COO. With the arrival of Liesbeth Kaashoek, the Board of Directors now consists of four members: Rutger van der Leeuw, Mariëlle Vogt, Jeroen Sanders, and Liesbeth Kaashoek. The Supervisory Board has set the recruitment procedure in motion for a 'permanent' COO, who will take the lead in the huge operational challenge that Enexis faces in the coming years.    

The Supervisory Board has appointed Rutger van der Leeuw (47) as CEO of Enexis Groep. He succeeds Evert den Boer, who announced last month that he was stepping down as CEO of Enexis due to health reasons. Van der Leeuw is currently a member of the Executive Board in the role of Chief Operating Officer (COO), and is responsible for all technical operations and customer processes at Enexis. Rutger van der Leeuw joined Enexis in August 2012 as Procurement Manager. He subsequently held the positions of Director of Customer & Market and Director of Infrastructure, before becoming COO in 2020. Before joining Enexis, Van der Leeuw held various management positions at KPN. Jos Nijhuis (Chairman Supervisory Board): "Enexis has an excellent board of directors. Together, they form a first-rate team. Rutger has the qualities required for the role of CEO, which Enexis will very much need in the coming period. With Rutger, we are choosing a chairman of the board who knows the company and its employees very well, and who also knows better than anyone how big the operational challenge is to accomplish the energy transition in Enexis' service area. Cooperation is key in this, in the sector, but also with governments and other partners."  Rutger van der Leeuw: "We have a huge task ahead of us, to have a CO2-neutral energy system for the Netherlands built by 2050. As grid operator, Enexis plays a crucial role in this. We are working hard every day to ensure that our customers can count on a sustainable and reliable energy supply, now and in the future. I consider it an honour to be able to put my shoulder to the wheel as CEO of Enexis, together with all my colleagues in the organisation." Jos Nijhuis: "I would also like to express my sincere appreciation for the excellent way in which the Executive Board has picked up the work over the past year during Evert den Boer's absence. That was not to be taken for granted. We are confident that with this Executive Board - soon to be joined by a new COO - we have a strong team in place to meet the challenges of the energy transition." The Central Works Council and the Shareholders' Committee both delivered a positive opinion on Van der Leeuw's appointment. Meanwhile, the Supervisory Board has also started the recruitment process for the position of COO created in the Executive Board as a result of the appointment of Rutger van der Leeuw.

The Supervisory Board of Enexis Group announces the departure of CEO Evert den Boer from Enexis Group. Evert has not been working since April this year due to health problems. Unfortunately, the period of rest has not yet led to the desired recovery. To ensure continuity for Enexis, Evert den Boer and the Supervisory Board have agreed in consultation that Evert will not return to his role as CEO. This gives Evert time and space to continue his recovery, while the Supervisory Board can start the process of searching for a successor. Evert has been CEO of Enexis since September 2020. The Supervisory Board thanks Evert for the way he has led Enexis over the past three years. Jos Nijhuis, Chairman of the Supervisory Board of Enexis Group: “Under Evert’s leadership, a new strategy was drawn up that puts Enexis in a position to meet the challenges of the energy transition. Besides that, together with his colleagues on the Board of Directors, Evert made great strides in the cultural change within Enexis. This is helping the organisation to increase its ability to deliver." Evert is pleased that he was able to contribute to the development of Enexis “"I am proud of the past three years during which I had the privilege of leading Enexis as CEO. The energy transition is bringing unprecedented and complex challenges to Enexis, and these require strong and visible leadership. Unfortunately, due to my health situation, I cannot offer enough of this at the moment and must focus entirely on my recovery. I have therefore decided to step down as CEO." Both the Executive Board and the Supervisory Board are sorry that Evert is leaving for health reasons. Jos Nijhuis: “It is obviously very disappointing for Evert in the first place. Fortunately, he is expected to make a full recovery eventually. We are going to miss Evert for who he is: a likeable and inspiring person. I would like to thank him for his commitment to Enexis and the energy transition. I wish him all the time and space necessary to get well again.” As CFO, Mariëlle Vogt will continue to deputise in Evert den Boer’s role as Chairman of the Board and CEO.

The trend of longer waiting times for large-volume business customers, who apply for a new connection or an upgrade of an existing connection, continued in the past half year. The number of applications tripled compared to last year. In addition, the number of voltage complaints due to temporarily switched off inverters for household solar panels was nearly three times higher than in the first half of 2022. Moreover, in the past sunny months, we saw overburdening of the local low-voltage grid occurring in more and more areas in villages, districts, and neighbourhoods, resulting in more power outages. At the same, we invested the unprecedented high amount of € 556 million in the expansion of the electricity and gas grids in the past half year. This is stated in the interim report of the grid operator Enexis which was published today. Dutch households and businesses are switching to electricity en masse. This transition is taking place faster than the national and regional electricity grid can handle. In 2022, for the first time in our existence, this led to a shortage of transmission capacity for feeding electricity back into the grid and consequently longer waiting times for large-volume business customers who wanted a new or upgraded connection. This trend continued in 2023: the number of applications has tripled in the past months. The shortage of transmission capacity has major consequences for our customers. Customers have to postpone their plans to settle in our regions, expand their business or switch from gas to electricity. We understand this frustrates our customers. Frustrations that we also feel: we want to help customers realize their ambitions. However, there is no quick definitive solution. To limit the shortage of transmission capacity, we are doing everything we can to expand our capacity faster than we already have in the past. We invested € 556 million in our grids in the first half of 2023  - a huge amount (first half of 2022: € 462 million). This resulted in 1,250 megawatt additional grid capacity. Moreover, we were able to welcome 188 FTEs new technical personnel. This puts us well on track to achieve our annual target of 361 FTEs. While we were working on our grids, our customers could continue to count on a reliable energy grid. The average electricity outage time amounted to 11.2 minutes in this period (first half of 2022: 7.8 minutes). The increase is partly caused by a number of major incidents with a relatively long outage time and by overloading of the low-voltage grids, resulting in more power failures.  The average gas outage time was 104 seconds (first half of 2022: 101 seconds). Households are also opting for a more sustainable energy supply by, for example, installing solar panels and heat pumps and switching to electrical cars. As a result, households are taking up more capacity of the electricity grid. This is a direct consequence of households actively increasing their sustainability and shows that the energy transition is accelerating. In our service area, we see a strong increase in the pressure on the electricity grid in residential districts. Overburdening of transformers The number of voltage complaints due to temporarily switched off solar inverters at consumers was nearly three times higher than in the first half of 2022. Due to the huge volume of generated electricity that consumers feed back into the grid, we saw overburdening of the local low-voltage grid occurring in more and more areas in villages, districts, and neighbourhoods. Around 500 low-voltage outages occurred in the first half of 2023 due to overburdening of our transformers, of which most outages occurred in Groningen and Drenthe. Whereas 267 low-voltage outages occurred in our service area during the whole of 2022. In the coming months, we will upgrade transformers in areas where overburdening occurs most often on sunny days. However, a structural solution will have to come from the large-scale upgrading of the electricity grid. Upgrading our grid demands a different way of working The large-scale upgrading in the coming years of our low-voltage grids in villages and cities requires making clear choices, creative solutions, and a new way of working. Mariëlle Vogt, CFO Enexis: “We started with a district approach for the large-scale upgrading of the low-voltage grids. A proactive investment strategy in which we expand the low-voltage grid in the areas where we see congestion occurring. We are thus expanding our grids in the coming years faster than ever". In addition, we make long-term agreements with contractors, in order to have extra capacity to carry out the work. By moving up the chain, contractors are able to carry out projects to upgrade our grid as independently as possible. This provides more clout for carrying out upgrading projects. Our profit decreased; however, reliability remains equally high Net profit over the first half of 2023 amounted to € 15 million. This is € 74 million lower than in the same period last year. Although our revenue increased by € 135 million, the costs of transmission and distribution losses of electricity and gas rose by no less than € 227 million. As a grid operator, we are responsible for the purchase of energy to compensate electricity and gas that is lost during distribution. The cost of compensating these distribution losses was considerably higher, mainly due to higher energy prices. In order to finance the energy transition, we issued a € 500 million green bond in June 2023. We can use these funds to continue to invest in in the expansion and sustainability of our grids.

Enexis invested a record amount of € 1,027 million in its grids in 2022. At the same time, it became clear that a structural mismatch exists between the demand for transmission capacity on the electricity grid and the additional capacity that Enexis can build or make available on the existing grid. Due to rising gas prices, Enexis's customers switched to electricity faster than expected. As a result, TenneT's high voltage grid and Enexis's electricity grid reached their maximum capacity in several areas. As a consequence, customers had to wait longer for a new connection or an upgrade of an existing connection. Enexis expects that the mismatch between the supply and the demand of transmission capacity will sustain in the coming years. In addition, continuing shortages of personnel and materials are forcing Enexis to decide where to start first. Governments must decide which projects have priority. This is what Enexis is advocating at the time of the publication of its annual report. Enexis installed about 1,400 kilometres of electricity cables and built a record number of new stations in 2022. With the installation of in total 1,180 megawatt, the capacity of the electricity grid was increased by over 10%. In addition, the electricity outage time remained at a historically low level of, on average, 14.0 minutes. Despite, the expansion of the electricity grid, it became clear that always getting new or heavier connections, unfortunately, is not self-evident. The energy transition is forcing Enexis to depart from its usual approach. In order to realise a larger work package, Enexis decided to tender and outsource work in a different manner. Where this concerns work carried out by contractors as well as the purchase of materials, Enexis plans to tender larger workpackages for the longer term. Enexis tendered around 150 transformers with an estimated value of € 300 million to ensure that it will have a sufficient inventory of transformers for the coming years. In addition, Enexis is focusing on a more efficient use of the existing grid in order to make extra connection capacity available in the short term. With new types of contracts, congestion management, optimal incorporation of batteries, and targeted steering of supply and demand, Enexis can make extra connection capacity available in the short term. The cooperation of customers is of crucial importance in order to realise this. Businesses can contribute to making more efficient use of the electricity grid by unburdening the grid during peak hours. For example, by turning on their cooling systems outside of peak hours. They receive a financial compensation for this. This demands a structural adjustment of their business operations and entails a major transformation for customers. By making use of flexibility, Enexis helps to create extra connection and transmission capacity and to make optimal use of the available transmission capacity. Evert den Boer, CEO Enexis: “We are facing a new reality now and we realise that we will not be able to solve this problem in the short term. This is a huge challenge for us and, unfortunately, for our customers as well. Considerably longer waiting times for new of heavier connections are the new normal. We continue to expand our capacity as fast as we can. In the coming years, we will build an additional 2 GW in capacity, which is about 15% of the existing grid, an expansion that equals 600,000 households with solar panels. However, the demand for electricity will remain structurally higher in the coming years than the rate at which we can expand the grid.” Further strengthening of our financial position Expenditures will continue to rise in the coming years to enable the energy transition in Enexis' service area. At present, Enexis is still able to realize these investments because of its sound financial position. Net revenue rose to € 1,705 million in 2022 (2021: € 1,634 million). Net profit for 2022 amounted to €1,300 million (2021: € 199 million). This is an increase of €1,101 million compared to 2021. Thisincrease is fully attributable to the non-recurring book profit of € 1,113 million on the sale of Fudura in 2022. Excluding the sale of Fudura, net profit amounted to €187 million; a decrease of €12 million compared to the year before. This decrease is attributable to the increased costs of transmission services and grid losses and higher operating expenses due to the growth of the work package. The sale of Fudura improved Enexis’ equity position. By using most of the book profit from the sale of Fudura, Enexis expects to have sufficient capital available to realise the energy transition in its service area in the coming years. In order to further improve Enexis' financial position, agreements have been made with the Dutch State about a possible future capital contribution. To this end, the Dutch State, Alliander, Enexis, and Stedin have laid down the conditions in a Framework Agreement. Enexis' credit profile remains strong: Early 2023, Enexis' credit rating from Standard & Poor’s was A+ (positive outlook) and its credit rating from Moody’s was Aa3 (stable outlook). In 2021, our credit rating from Standard & Poor's still had a negative outlook. This was revised in a stable outlook following the sale of Fudura in 2022. At the beginning of 2023, our credit rating from Standard & Poor's was revised in a positive outlook following the above-mentioned Framework Agreement with the Dutch State. Based on this, S&P assigned its government-related entity (GRE) status to the three large regional grid operators, including Enexis. This GRE status enhances the creditworthiness of the grid operators and, as a consequence, their capacity to raise debt. Thus the GRE status supports the financing of the energy transition.

The Government and grid operators Alliander, Enexis and Stedin have reached an agreement on the terms that will allow future capital injections and related shareholdings by the Government in the grid operators. The terms are set out in a ‘framework of agreements’ that the Minister of Finance, Sigrid Kaag, and the Minister for Climate and Energy Policy, Rob Jetten, sent to the Dutch House of Representatives today. The framework will now be submitted for a decision to the supervisory boards, employee representation bodies and existing shareholders of the grid managers. Strengthening the grid operators’ equity is essential for continued investment in the energy transition at a socially acceptable cost. The Netherlands is implementing the Climate Agreement, facilitating economic growth and connecting new homes and businesses. It is a matter of great urgency to achieve the objectives that arise from the Climate Agreement; all the more so since the Netherlands is facing an energy crisis which means that large numbers of households and businesses are demanding electrification on a large scale. Economic growth, digitalisation and consequent increasing demand for capacity in the electricity grid are growing explosively. The grid has reached full capacity in more and more locations and it is not possible to connect any more businesses. Between them, Alliander, Enexis and Stedin expect to invest some €30 billion by 2030 in expanding and reinforcing the grid. Further ambitions, such as the Fit for 55 package, REPowerEU and accelerated house building, will increase the amount of investment even more in the coming years. Reinforcing the grid operators’ equity Reinforcement of the grid operators’ equity is needed to avoid further pressure on investment in the gas and electricity grids. If, at the request of the grid operators and in co-operation with their shareholders, the Government decides in the future to become a shareholder, this will be subject to certain conditions. The framework of agreements describes these conditions, such as lead times for the application and the governance arrangements. The framework serves as the basis for a participation agreement which will set out more detailed arrangements when the Government becoming a shareholder is actually being discussed. During the next few months, each grid operator will submit the framework of agreements separately to its supervisory board, employee representation body and existing shareholders. Mariëlle Vogt, CFO at Enexis Groep: “I am pleased that we have been able to reach agreement on the terms and conditions for a capital injection in constructive dialog between the grid operators, shareholders and Government. This allows for the Government to become a shareholder in the regional grid operators in the future. The future energy system is inextricably linked with the design of a future-proof Netherlands. The framework of agreements underlines the joint responsibility of the grid operators, our shareholders and the Government to achieve the energy transition and guarantee the associated investment.” The first application of the framework of agreements will be at Stedin. In the recent Budget, the Government announced that it had reserved €500 million for a shareholding in the grid operator for Zeeland, South Holland and Utrecht. To maintain the level of investment required, Stedin needs assurance on the reinforcement of its equity this year. Existing shareholders are reinforcing equity The grid operators and their shareholders started the search for solutions for meeting their capital requirements a couple of years ago. The funds are required to expand the energy grids and to make them future-proof. The grid operators have already saved hundreds of millions of euros of costs through improved efficiency and they will continue to concentrate on this in future years. In addition, provincial and municipal shareholders have reinforced the three grid operators’ equity by a total of €1.3 billion. In the recent past Alliander, Enexis and Stedin and representatives of their shareholders have held talks with the Government to examine the role that the parties could play in the grid operators’ financing requirements. The Government emphasised that local authorities could be called upon for a contribution. Stedin is, therefore, talking about participation to its existing shareholders and to provinces and municipalities in its area of operation which are not shareholders.  

In the first half of this year, electricity consumption in the Netherlands increased more than expected and sooner than anticipated. As a consequence of the war in Ukraine and rising energy prices, the transition to a more sustainable energy supply has gained further momentum. Over the past months, we received more than 800 megawatts in new requests in the Dutch provinces Noord Brabant and Limburg. This is comparable to four times the total capacity of the electricity grid in the city 's Hertogenbosch. Due to the high demand TenneT's high-voltage grid is full in these provinces. Enexis Netbeheer's grids are also reaching their maximum capacity in more and more areas. Therefore, we are doing everything in our power to expand our grids as fast as possible, but we realise that a lot more is necessary. As the grid operator Enexis Holding states in its interim report 2022: collaboration and innovative solutions are necessary in the coming years to make efficient use of the existing grid.  Enexis continues to invest in increasing the capacity of its grid and is expanding the grid by building at least 1 gigawatt additional grid capacity annually to facilitate new developments, such as renewable energy generation, electrification and electric mobility. This means that we will expand the capacity of our electricity grid every year by approximately 10 percent. Enexis spent € 462 million on the electricity grid in the first half of 2022. No less than 879 megawatt (MW) renewable onshore energy was connected in this period, with which around 240.000 households can be supplied with electricity.  THE ENERGY SYSTEM OF THE FUTURE  The temporary stop for (new) high-volume customers in the provinces Noord-Brabant and Limburg has a huge impact on Enexis Netbeheer's high-volume customers in these provinces. A connection with transmission capacity is temporarily not available for new companies with a large electricity demand. This is also the case for existing high-volume customers who want to expand or have set up new initiatives to feed renewable electricity back into the grid. Besides continuing to expand the electricity grid, Enexis Netbeheer is also looking into innovative solutions together with customers to make as efficient use as possible of the existing grid. For instance, the grid operator is looking into congestion management and the use of time-slot contracts with which it is possible to make optimal use of the available capacity of the electricity grid in off-peak moments. In addition, Enexis Netbeheer is continuing to promote system efficient solutions, such as cable pooling. Cable pooling is combining several installations, for example a solar farm and wind turbines, on one connection. Everything is aimed at ensuring that the energy supply remains safe and reliable, that customers are connected timely, and that the energy system of the future is being realised. In order to be able to continue to finance grid expansions in the long term, it is important that we maintain a strong equity position. Consequently, we are pleased that the Minister of Climate and Energy and Minister of Finance have announced that the Dutch State plans to contribute capital and participate in grid operators. The terms and conditions still have to be discussed.  The strategy that we adopted in April helps Enexis to focus on the realisation of the energy transition and connect as many customers as possible. In line with this strategy, we signed a sales agreement for our subsidiary Fudura in the beginning of May. Before the sale to DIF Capital Partners and PGGM can actually take place, the European Commission has to grant its approval. The European Commission's decision is expected at the beginning of August.  WORKING TOGETHER ON INNOVATIVE SOLUTIONS  Jeroen Sanders, CTO and member of the Executive Board of Enexis Groep: "Collaboration is key in the challenges that we are facing. Our ambitions are high, whereas the capacity of the electricity grid, materials, and technical personnel are scarce. The energy transition is a major societal challenge which we have to find a solution for together. This requires extensive collaboration between grid operators, local governments, the Dutch State, and our customers. Only then will we be able to accelerate and create sufficient possibilities in times of scarcity. We have to work together to accomplish this."   

The Executive Board of Enexis Groep will present its new strategic plan to its shareholders today. With the new strategy, Enexis Groep will focus on executing the energy transition. Everything must be aimed at a safe and reliable energy supply now and in the future, the timely connection of customers, and the realisation of the energy system of the future. Climate change is one of the biggest challenges of our time. We are transitioning to a CO2-neutral energy supply. There are still many uncertainties regarding the final configuration and the path that should be taken. The coming ten years will be characterised by a large diversity of parties and solutions that will exist alongside each other. This means that Enexis, together with its stakeholders, will be going through a period of accelerated development to realise the climate goals. Focus on executing the energy transition The energy transition has already led to a huge increase in Enexis’s work package and this will continue in the coming years. Carrying out this work package requires our full attention. Consequently, Enexis is sharpening its focus on its core activities. The availability of sufficient motivated and skilled employees is essential to be able to carry out this work. In a tight labour market, Enexis’s main focus is on the retention, training, and development of existing personnel and on recruiting new employees. In addition, Enexis is making maximum use of the available capacity at contractors. future-oriented, reliable, and transparant Promoting the optimal energy choices for society is an important aspect in the new strategy. To this end, Enexis develops plans in close cooperation and coordination with governments, market parties, and local communities. The company is also looking into new energy carriers and the infrastructure that is required for this, such as hydrogen and energy storage. Customers can trust that our grids are and will remain safe and reliable. Lights must continue to burn, homes have to be heated. We will also not make any concessions in this regard in the energy transition. Where the average outage time is concerned, our aim is to continue to perform better than the sector average in the coming years. As a grid operator, we would like to be more predictable for our customers. Exactly now that customers have many questions in the energy transition, customers should be able to obtain our services easily and should know what they can expect when. Therefore, Enexis is transparent regarding processing times and the status of our activities. We aim to connect customers on the date that they requested. If that is not possible, Enexis contacts the customer to schedule an appointment within a reasonable period of time. Enexis aims to build at least 1 gigawatt additional grid capacity every year to facilitate new developments, such as renewable energy generation, electrification, and sustainable mobility. This means that we will expand the capacity of our electricity grid every year by approximately 10%.

The Executive Board of Enexis Groep (“Enexis”) intends to sell all the shares in its subsidiary, Fudura B.V. (“Fudura”), to a consortium that consists of DIF Capital Partners and PGGM (‘the Consortium”). Enexis and the Consortium have reached agreement on this. The aim is to finalise the transaction at the end of the second quarter or beginning of the third quarter, after completion of the usual approval and advisory procedures involving the competition authorities, the shareholders of Enexis, and the employee participation bodies. The transaction Over the last months, the Executive Board and the Supervisory Board of Enexis Groep have gone through a thorough sales process with a focus on the interests of all stakeholders. Via a pre-qualification and bidding process, Enexis gave selected parties the opportunity to submit an offer for Fudura. As it turned out, the binding offer (in cash) from the Consortium offered the best conditions for Enexis and all Enexis stakeholders (including Fudura, its employees and its clients). Enexis and the Consortium have not only reached agreement on the price, but also on other terms and conditions such as jobs, sustainability, and continuity for Fudura. The Consortium views Fudura as a platform for the energy transition and will be committed itself to Fudura for the long term. In addition, employment levels and conditions of employment of Fudura’s employees will be safeguarded, and there is also support for the strategy of Fudura and its role in the energy transition. These matters have been set down in the agreement and form an integral part of this transaction.     Background to the sale The energy transition is leading to an enormous increase in the work package of Enexis. At present, the grid operator cannot connect its clients to the grid everywhere or on a timely basis, and this is expected to remain a challenge in the coming years as well. In its new strategy, Enexis is therefore focusing on its core tasks: ensuring the safety and reliability of the energy supply, connecting its clients to the grid wherever they are and in a timely fashion, and co-designing, realising, and managing the sustainable energy system of the future in its catchment area. Enexis is making choices in this regard and is looking to strike a good balance within the limited time, money, and capacity available. Tasks that do not contribute to Enexis’s core tasks are being phased out or reorganised. The Executive Board of Enexis has therefore decided to sell its commercial business unit Fudura. The sale of Fudura will improve Enexis’s financial position as well as its opportunities for financing its core tasks in the energy transition. Ample growth potential The proposed sale will also create new opportunities for Fudura. In fact, Fudura will be able to realise its full growth potential more effectively outside of Enexis. "The level of interest in Fudura shown by market players was intense, and it confirmed the important position filled by Fudura in the energy transition. It was quite clear to us that we had to carefully manage the sales process and keep a watchful eye on the strategy of sustainability and the other interests of all employees and customers of Enexis. The Consortium is a solid party with considerable financial resources, within which Fudura will have optimum opportunity to fulfil its growth potential. Its growth potential will be much greater than within our group in view of the current laws and regulations that apply to a grid operator. Outside the framework of Enexis, Fudura will be able to offer a broader package of services and make a greater contribution to make the Netherlands more sustainable," according to Jeroen Sanders, Chief Transition Officer and member of the Executive Board of Enexis Groep. René Pruijssers, Director of Fudura: "We are a profitable and independent company positioned at the heart of the energy transition. We collaborate closely with our clients in solving complex energy problems. Our market is uniquely positioned for attractive growth. This proposed sale will, together with the Consortium, give us the opportunity to fully realise our growth potential. We look forward to continuing to work on realising the energy transition together with our clients, employees, partners, and new shareholders." Erik van de Brake, head of Infrastructure at PGGM: "Fudura fits perfectly in PGGM’s strategy to make long-term investments that are financially profitable and have a positive impact on society, on behalf of our clients like Pensioenfonds Zorg en Welzijn. There is a big challenge to realize carbon neutrality in the Netherlands within a few decades and companies like Fudura are playing an important role in achieving this. Next to Fudura there are several other companies in our investment portfolio that play such a key role in speeding up the energy transition. Gijs Voskuyl, head of Infrastructure at DIF adds: “We are delighted with the acquisition of a 50% stake in Fudura. Fudura’s pioneering role in the energy transition in the Netherlands fits seamlessly with DIF’s own ambitions including having a CO2-neutral investment portfolio by 2050 the latest. In addition, we expect that DIF’s expertise in previous energy transition investments will contribute to a fruitful collaboration with both Fudura and co-shareholder PGGM.”  

Congestion points in the electricity grid are increasing despite record high investments The energy grid in Enexis Netbeheer's service area grew faster than ever in 2021. Record investments led to a 10% increase in capacity. At the same time, more and more congestion points are arising in the electricity grid. In order to achieve the climate goals in 2030, permit procedures need to be accelerated and the government must provide a framework for setting priorities with regard to investments. This is what Enexis is advocating at the time of the publication of its Annual Report 2021. Enexis installed more than one thousand kilometres of cable and built a record number of new stations in 2021. With an additional 1.350 megawatt, the capacity was increased by over 10%. Moreover, outage times remained low, with on average 17.6 minutes for electricity and 75 seconds for gas. Evert den Boer, CEO Enexis Groep: “With the building of all those new stations in the past year, we have already realised a considerable acceleration. But we are aware that more needs to be done, we have to increase our production further. Especially, when we look at the climate ambitions of the new Dutch government. To work faster and in a more targeted manner, the government must set priorities regarding which activities should be carried out when. After all, it is not possible to do everything at the same time: we must make choices regarding what needs to be done first and what can be done later. In addition, it is important that we focus on our core activities as a grid operator: everything must be aimed at ensuring that the energy supply remains safe and reliable, that we connect customers timely, and that we realise the energy system of the future. This is the point of departure for our new strategy, which we will present in April 2022. In this manner, we can make sure that we employ our scarce technical personnel optimally to realise these ambitions.” Annual expansion by 1 GW The total capacity of all renewable energy generating installations connected to our grids increased by over 35% in 2021. More and more customers want to generate and feed renewable electricity back into the grid. To enable the structural increase of the supply and demand of energy, one and a half to two times as much grid capacity is required. We must upgrade and expand our grids in many areas and make more efficient use of our grids in order to accommodate this. The total capacity of our electricity grid is approximately 11.5 gigawatt (GW). In the coming years, we will expand our grids further by at least 1 GW each year. That we have carried out more work in the past year than ever before is also reflected in our figures. We invested € 959 million in our grids in 2021. This will even increase up to € 1,044 million in 2022. Financially sound At present, Enexis is still able to sustain these investments because of its sound financial position. To reduce costs, we aim to take extra steps to work even more efficiently in the coming years. In this manner, we will continue to contribute to an affordable energy grid. However, it is also important that our revenues increase. We are conducting an ongoing dialogue with the Netherlands Authority for Consumers and Markets to bring our revenues more in line with the investment requirement. We are also looking into whether the central government, in addition to the existing shareholders, can help with the large financing requirement that we are facing in connection with the energy transition. Net revenue rose to € 1,634 million in 2021 (2020: €1,516 million). Net profit for 2021 amounted to € 199 million (2020: € 108 million). This increase is mainly attributable to the TenneT purchasing costs being compensated in the revenue in the same year as of 2021. Our credit profile is strong: our credit ratings are A+ (negative outlook) at Standard & Poor’s and Aa3 (stable outlook) at Moody’s. Also due to these credit ratings, Enexis was able to successfully issue a green bond of € 500 million in April 2021

Enpuls Warmte Infra continues to exist as a deregulated branch. The Board of Directors of Enexis Group has decided to end the activities of Enpuls as of 1 January 2022. The reason for this decision is the focus that the network company is putting on its core activities: connecting its customers everywhere in a timely manner and co-designing, realising and giving direction to the design of an affordable and sustainable energy system of the future in its catchment area. Enexis Group expects that heating will play an important role in the energy system of the future and that network companies can be of considerable importance in the long term in its realisation. That is why the activities of Enpuls Warmte Infra will continue to exist within Enexis Group as a deregulated branch. Focus on core tasks The energy transition is leading to a huge increase in the work package for network company Enexis Group. At the moment, the grid operator cannot connect its customers everywhere, or not on time, and this is expected to remain a challenge in the coming years. That is why network company Enexis Group is focusing on its core tasks: connecting its customers everywhere and in a timely manner and co-designing, realising and directing the design of the sustainable energy system of the future in the provinces of Groningen, Drenthe, Overijssel, Noord-Brabant and Limburg. Activities that do not contribute to these core tasks will be phased out or organised differently in the coming period. Innovations and solutions in the area of data and digitization will play an important part in achieving the energy system of the future. Enexis Group will therefore continue to invest in this in the coming years. Currently, Enexis Group is working on a new strategy that will clearly reflect this focus. The new strategy is expected to be completed in April 2022. Enpuls Warmte Infra Enexis Group sees an important role for heating networks in the energy system of the future and sees heating infrastructure as a realistic expansion of its product portfolio. As a public heating partner, Enpuls Warmte Infra cooperates with municipalities and provinces to make neighbourhoods more sustainable by developing, realising and managing heating networks. Until there is more clarity around the new Heating Act, Enexis Group will continue to gain experience with heating networks via Enpuls Warmte Infra, including through Mijnwater and by being involved in heating projects. The other activities of Enpuls, such as the development of visions and concepts which are aimed at accelerating the energy transition and which are outside the direct focus area of Enexis as grid operator, will be terminated as of 1 January 2022. Jeroen Sanders, Chief Transition Officer and member of the Enexis Group Executive Board: "Since its establishment in 2016, Enpuls has contributed with great success to accelerating the energy transition. We are now entering the realisation phase. We expect that the majority of Enpuls personnel will have a role in the realisation of the proposed new strategy. We will thus retain the acquired knowledge, experience and expertise of Enpuls personnel, in such a way that we will continue to work on innovative solutions that can contribute to the energy system of the future."  

Focus on facilitating the energy transition; without coordination no successful energy transition. Enexis Groep is doing everything in its power to facilitate the energy transition optimally. However, it is becoming increasingly clear that the world is changing faster than our electricity grids can handle. Consequently, expansion of the capacity of our electricity grids has top priority. A coordinating role on the part of the government is essential in the energy transition. In the first half of 2021, Enexis Groep completed a work package of in total € 440 million; a € 37 million increase compared to the first half of 2020. The demand for electricity continues to rise and more and more customers want to be able to feed the renewable energy that they generate back into the grid. Again in the first half of 2021, we connected more customers than in the same period last year and we invested € 240 million in our electricity grids. No less than 467 MW in onshore renewable energy generation capacity was realised in our service area in the same period. With this additional capacity, electricity can be supplied to over 140,000 households. The total installed renewable energy generation capacity in our service area increased to nearly 7,000 MW. Safety and reliability The average electricity outage time in the Enexis Netbeheer regions amounted to 9.9 minutes in the first half of 2021. We have one of the most reliable and safe energy grids in the world. We also aim to ensure a high degree of reliability during the transition to a new sustainable energy system. For Enexis, this means that we will remain open for business while modernising our electricity grids. Besides reliability, the safety of our employees and the environment are the most important preconditions governing our work. Working safely is always our number one priority. This is essential now that we are facing one of the greatest infrastructural challenges in history, which also has to be realised at an ambitious pace. Mismatch between ambitions and feasibility Enexis Groep has committed to the Dutch climate goals and we are confident that, together, we will at least be able to achieve the agreed target of 35 terawatt hours (TWh) renewable electricity generation for 2030. However, it is important now that all parties start making their plans more concrete and start drafting execution programmes for the modification, spatial planning and realisation of infrastructure. In the Regional Energy Strategy (RES) 1.0 decision-making process, the 30 RES regions formulated ambitions that, in total, considerably exceed the agreed climate goal of 35 TWh. This climate goal must be realised in 2030 whereas accommodating onshore renewable energy generation is already a considerable challenge for the energy grid. Evert den Boer, CEO Enexis Groep: “Nearly half of the total required RES target falls within Enexis’s service area. In combination with increasing the sustainability of the industry and installing charging infrastructure for electric transport, this will result in a huge amount of work for us in the coming nine years. In the whole sector, we are facing a shortage of technical personnel and long lead times for permits and public consultation procedures. As a result, a mismatch threatens to occur between the regional ambitions and the speed with which we can carry out the necessary work. We are confident that this is possible; however, in that case, choices will have to be made on the regional, provincial and RES level in terms of approach or time. What are we going to install first, what are we going to install later and what are we not going to install? With more coordination from the government and clear priorities, the conditions will we created to make smart choices for the energy system of the future.” Transparency regarding opportunities and challenges On the road towards the energy system of the future, priorities have to be set in the realisation and well-balanced choices have to be made. Enexis Groep stimulates system efficiency in order to make use of the capacity of the existing energy grid and avoid additional and unnecessary investments. This is possible, for example, by positioning large-scale renewable energy generators near high-volume consumers of electricity. We are discussing this matter with provinces and municipalities. We are transparent about local opportunities and challenges and clarify which choices have to be made to carry out the energy transition in a feasible and affordable manner. We successfully issued a green bond of € 500 million again in April 2021. Nevertheless, we remain concerned that the grid operators have to pre-finance the increasingly high investments. There is too large a delay in the manner in which the costs are charged to customers through the tariffs. The expenditure for work on our grids remains high; this year one billion euros. The smart choices that we make now in order to make more efficient use of the grid will contribute to the affordability for society later.

Today, Enexis Holding N.V. publishes its first Green Bond Impact & Allocation Report. The report provides insight in which activities are financed using the green bonds issued by Enexis Holding N.V. in June 2020 and April 2021. The proceeds were used to invest in projects that make the energy supply more sustainable, such as grid expansions for wind and solar parks, smarter grids with distribution automation and the roll-out of smart meters and our sustainable buildings. Green Finance Framework The Green Finance Framework was set up to enable the issue of our green bonds and to be able to issue more of these bonds in the future. According to the independent rating agency ISS-ESG, the Framework contributes 'significantly' to realizing the Sustainable Development Goals and is in line with the commitment of Enexis Groep to contribute to global sustainability challenges. Read more about the activities in the report.  

In addition to upgrading the grid, more efficient utilisation of it is necessary to achieve an affordable energy transition. Enexis Netbeheer realised a work package of € 882 million in 2020 (2019: € 804 million). In view of the current pace of the energy transition, this amount will only increase in the future. Due to the huge increase in solar and wind energy projects, the pressure on our grid is growing to such an extent that extra investments alone are not enough. In order to realise a timely and affordable energy transition, it is necessary to use the grid more efficiently. This is what Enexis Groep advocates for in its Annual Report 2020. The increase in renewable energy generation is unprecedented. The total installed sustainable capacity in Enexis Netbeheer's service area amounted to 6,600 MW in 2020. This is nearly 60% more than in 2019 and illustrates the quick pace of the energy transition. With this installed capacity, the amount of electricity produced annually is proportional to the amount consumed by all 2.8 million households in our service area, which is only a portion of the total electricity consumption in our area. It is becoming clear that in increasingly more areas, the current electricity grid cannot keep up with this growth. In the past year, the capacity scarcity further increased across our entire service area. Unfortunately, this trend is continuing despite greater investments. New customer initiatives can generally be realised faster than the necessary grid expansions to accommodate these initiatives. Not only investing more, but also smarter Evert den Boer, CEO Enexis Groep: “By taking strict corona measures, we were able to safely continue our work in 2020, after a short interruption. This was made possible by the flexibility, commitment and solidarity of our employees and the contractors that we work with. They deserve a big compliment. We are doing everything we can to connect renewable energy initiatives as quickly as possible. The work package is bigger than ever and will only increase further in the coming years. However, there are limitations to what you can expect from the existing infrastructure. Unrestricted investing in expanding the grids is not only a practical challenge, it also creates unnecessarily high costs for society. Therefore, we first advocate for using the electricity grid more efficiently. For example, by planning the large-scale generation of renewable energy close to high-volume consumers of electricity. Or by looking into other possibilities such as curtailing the peak production of wind and solar farms. We are also investigating the application of 'congestion management', where the aim is to improve the balance between the production and consumption of sustainably generated electricity in a region, thereby relieving the burden on the network. Finally, we are working to develop a new tariff system that stimulates more efficient energy consumption.” In addition, Enexis Netbeheer seeks to actively work together with municipalities to make investments in a very targeted way. In order to maximise use of our realisation capability, we do not wait for a specific project before we start investing. In consultation with municipalities, provinces and in accordance with the Regional Energy Strategies, we are creating extra capacity in the grid for new renewable energy generators. Stronger coordinating role for the Dutch government Enexis Groep also advocates for the Dutch government to take a stronger coordinating role. Regional Energy Strategies have a large impact on the energy grid. In addition, plans for home construction, sustainable industry and mobility have impacts on the energy grid. The work that has to be carried out on our infrastructure as a result is so extensive that it simply cannot all be carried out at the same time. However, a grid operator cannot and may not set priorities itself - we currently connect on a non-discriminatory 'first-come, first-served’ basis. On this matter, Enexis Groep looks to the Dutch government. Choices have to be made in the energy transition: in the Netherlands, do we wish to first connect new homes to the electricity grid, or upgrading solar panel connections? Are we going to upgrade the grid for industry’s use, or for renewable generation? We advocate for an assessment framework that substantiates the priorities within the work package of grid operators. Financial foundation for the realisation of the energy transition Our net profit for 2020 amounted to € 108 million (2019: € 210 million). This decrease is mainly attributable to a € 63 million increase in the TenneT transmission costs and a € 42 million increase of the deferred tax provision. The latter was due to the reversal of an announced decrease in the corporate income tax rate as of 2021. Meanwhile, net revenue rose to € 1,516 million (2019: €1,491 million). The corona crisis did not have a material impact on Enexis's financial result in 2020. Enexis Holding’s current credit rating is A+ according to Standard & Poor's and is an Aa3 at Moody's. Solid credit ratings are very important to being able to continue to finance necessary investments in the future. To this end, Enexis Holding has obtained a convertible hybrid loan of € 500 million from its shareholders. In addition, an inaugural green bond was issued in June 2020 also for an amount of € 500 million with a term to maturity of June 2032. Both instruments strengthen Enexis's financing structure and contribute to maintaining a strong credit rating. This enables us to continue to contribute to the realisation of the energy transition.

The five provincial and 66 municipal shareholders of Enexis Holding have invested a total of €500 million in the network manager to boost the energy transition. On 29 July 2020, the first tranche of the loan was concluded for a total amount of over €421 million. The second tranche of €79 million was added today. These important financial transactions will help Enexis Holding and its shareholders bring about the energy transition. The interest rate for the second tranche of the loan (Tranche B) is 1.40%. Specific loan provides flexibility The shareholders and Enexis Holding have recently explored the possibilities of reinforcing Enexis's equity. This led to a request being made to all shareholders to strengthen equity with a convertible hybrid shareholder loan. This will allow shareholders and Enexis Holding to reinforce the holding’s equity should that become necessary. Sufficient equity is important to maintaining a solid credit rating, so that Enexis Holding can maintain access to the capital market and take out loans at favourable rates. Energy transition The energy transition is having a strong impact on network managers, and so too on Enexis Netbeheer. Examples include the construction of wind and solar parks, but also customers who generate their own energy. That means that Enexis Netbeheer needs more money to invest in facilities that make the grid suitable for these changing energy flows. Other than that, Enexis Netbeheer will of course continue to invest in regular maintenance and expansions required for a safe and reliable network. This calls for a permanently higher activity and investment level. Enexis is of course taking a critical look at its efficiency and is holding talks with regulatory authorities with a view to continue to finance growth resulting from the energy transition. The collaboration between the shareholders and Enexis Holding through this loan is also of vital importance and an important step towards facilitating the energy transition.

Today 5 provincial and 23 municipal shareholders arranged the first part of a so-called convertible hybrid loan to Enexis Holding. The second part is expected to follow in late November 2020 once the shareholders have completed their own decision-making processes. The loan, amounting to €500 million, represents a major financial support from the shareholders to Enexis Holding to help implementing its share of the energy transition. The loan provides flexibility The shareholders and Enexis Holding have recently explored the possibilities of reinforcing Enexis Holding’s equity. This resulted in a request to all shareholders to provide a convertible hybrid loan. This will allow shareholders and Enexis Holding to reinforce the holding’s equity, should that become necessary. This week the first part of this loan was closed for a total amount of more than €421 million with an interest rate of 2.15%. The requested €500 million is expected to be completed in late November 2020. The energy transition requires additional investments The energy transition is having a high impact on grid operators, and evenly so on Enexis Holding. For example, the construction of wind and solar farms, but also customers who want to generate energy themselves. Or even the increase in heat pumps and charging stations for electric cars. This all requires more money being invested to make the grid suitable for these changing energy flows. In addition, Enexis Netbeheer will of course continue to invest in regular maintenance and expansions required for a safe and reliable network. Different solutions to support the funding of the energy transition All these changes require a permanently higher activity and investment level. Enexis Group has different solutions available to accomplish this. First of all, Enexis Group is continuously improving its efficiency in limiting expenditure. The network manager is also working on innovations to make network expansions as cost effective as possible and ensure that the current electricity grid is used optimally. The grid operators are also consulting with the government on a regulation which would suit the energy transition better. Finally, Enexis Holding is in discussions with various stakeholders on alternative funding possibilities for the energy transition. The collaboration between the shareholders and Enexis Holding and the raising of this shareholders’ loan, is part of the latter solution and an important step towards enabling the energy transition.

Work on energy transition continues unabated, corona business impact limited Enexis Groep recorded an increase in completed work-package in the amount of € 21 million compared to the first half of 2019, reaching € 403 million over the first half of 2020. The energy transition is also continuing unabated despite the corona crisis. The corona crisis is not expected to have a material impact on the consolidated financial result. A safe and reliable energy supply, also during the corona crisis Due to the outbreak of the coronavirus in March 2020, a number of activities, including the installation of smart meters, were suspended as a precaution to protect the health of our customers and employees. We are proud to report that our employees and contractors were able to adapt quickly so that critical work processes could continue and the safety and delivery reliability of gas and electricity remained continuously guaranteed. All activities were resumed in May 2020. However, some delays are expected for a number of projects due to postponements of the delivery of transformers and other materials. Emphasis on a well-balanced energy mix New sustainable initiatives contact the grid operator Enexis Netbeheer to apply for a connection and energy regions present their energy strategy concepts. Peter Vermaat, CEO Enexis Groep: “At present, we see that the energy regions have a stronger preference for solar energy than for wind energy. We do everything we possibly can to realise the plans, although this presents us with a number of challenges. As the wind blows a lot more often in the Netherlands than the sun shines, a wind park produces three times as much electricity as a solar park with the same capacity. Therefore, in order to produce the same amount of sustainable electricity, many more solar parks have to be connected to the electricity grid. This demands three times as much grid capacity, space for cables, electricity stations, construction work and accompanying costs for society. As we will not be able to solve everything with electricity in the future, Enexis continues to advocate an energy mix with sustainable gases, such as green gas and hydrogen. The gas grid can also play a role in this in the future in many districts. In this manner, we ensure that the energy transition remains affordable.” Enexis Netbeheer continues to invest in grids The transition to the energy supply of the future continues to demand substantial investments in the grids. More grid expansions and custom connections are needed to continue to meet higher customer demand in combination with more “Sustainable on Land” projects.Ensuring that our creditworthiness remains sound is an important prerequisite to be able to continue to finance the necessary investments. Therefore, Enexis Holding has requested its shareholders to strengthen the capital of the grid operator with a convertible hybrid shareholder loan of € 500 million. This loan is expected to be issued in the second half of 2020. In addition, a first green bond loan was issued in June also for an amount of € 500 million with a term to maturity to June 2032. Both instruments strengthen our financing structure and support our strong credit risk profile (A+ credit rating from Standard & Poor’s and an Aa3 credit rating from Moody’s) and thus contribute to the realisation of the energy transition.  

The Supervisory Board of Enexis Groep has decided to appoint Rutger van der Leeuw (43) as Chief Operating Officer (COO) and Jeroen Sanders (46) as Chief Transition Officer (CTO) on 1 September 2020. As a result of this, the number of members of the Executive Board will be increased to four.Achieving climate goals remains a major challenge for the operational side of the organisation. The COO will be responsible for all technical and customer operations. That role will be filled by Rutger van der Leeuw who has broad experience of the whole operations process at Enexis. Before becoming Director Infra at Enexis Netbeheer in 2016, Rutger held the positions of Director Customers & Market and Manager Procurement. Prior to that, Rutger held various management positions at KPN. As CTO, Jeroen Sanders will focus on the future of the energy system and on enabling the organisation to respond quickly to rising external developments. Jeroen is currently Director ICT at Enexis Groep, a position that he has held since 2017. Before that, he was the Managing Director of Endinet, Manager Sustainability at Fudura and held various management positions at Edon and Essent. The Supervisory Board has also announced that Maarten Blacquière (CFO) will hand over his responsibilities early 2021. He will be succeeded by Mariëlle Vogt (54) who will join the Executive Board of Enexis Groep early 2021. Mariëlle has been Director Finance at Enexis  Groep for more than three years. Before that, she held the position of Financial Director at TU Delft. Mariëlle previously worked at KPN for a long time where she held various financial positions. Maarten Blacquière: “After 8 years on the Executive Board of Enexis, it feels like the right time for me to pass on the baton to someone else. This is the start of a new era in which an expanded Executive Board will take Enexis into the next phase of the energy transition. In the coming months, I want to ensure continuity within the Executive Board and also make way for a new team. I am proud that our management team has turned out to be a breeding ground for talent, with three directors who will be taking their position on the Executive Board.” It is currently unknown what Maarten’s future role will be.Piet Moerland, chairman of the Supervisory Board, is also delighted that these three positions on the Executive Board are to be filled by people within their own ranks: “By strengthening our leadership team, we are preparing the organisation for the transformation at hand and at the same time ensuring continuity within the organisation. We are very grateful to Maarten for his vital contribution. Together with Peter Vermaat, he has led the company with passionate commitment and has given it a new direction. Operating activities are almost 50% up on 2015 and safety awareness has improved tremendously. Enexis has the solid financial foundations required for the funding of crucial future investments in the energy network. We wish Maarten all the very best for the future and greatly appreciate the fact that there is ample opportunity for us to ensure a smooth transition over the next months.”With effect from 1 September 2020, the Executive Board of Enexis Groep will consist of four members: a CEO (Evert den Boer), a CFO (Maarten Blacquière), a COO (Rutger van der Leeuw) and a CTO (Jeroen Sanders). The Works Council and the Shareholders' Committee have both issued a positive recommendation on the intended appointment of Rutger, Jeroen and Mariëlle (from left to right on the image above).   

The Supervisory Board of Enexis Groep is to appoint Evert den Boer (50) as CEO and Chairman of the Executive Board. As of 1 September 2020, Evert den Boer will succeed Peter Vermaat who, as previously announced, has decided to hand over his duties to a successor in the middle of this year.Evert den Boer is currently CEO at Greenchoice, producer and supplier of sustainable energy and a major player in its decentralised generation. He has held this position since 2015, after previous executive and management positions at organisations including Ørsted and Vattenfall. Since 2018, he has also been a member of the board of Energie Nederland, the sector association of energy companies. Before starting his career, Evert den Boer studied Applied Geophysics at Delft University of Technology.Piet Moerland, Chairman of the Supervisory Board of Enexis Groep: "We are very excited about the arrival of Evert den Boer at Enexis. He is a strategically and communicatively strong new chairman with a solid track record in bringing about organisational change. This dovetails with the challenges that Enexis Groep is currently facing in the complex dynamics of the energy transition, in which the grid manager plays a crucial facilitating role."Evert den Boer: "I'm delighted with my proposed appointment as CEO of Enexis Groep. As a major regional grid manager, Enexis guarantees the security of the energy supply for more than 2.8 million customers in an era in which fundamental changes are being made to how energy is generated. This places new demands on the energy grid and on all the people who work on it. I look forward to working with my new colleagues to help give shape to this important transition for the Netherlands, while continuing to position Enexis Groep as the best possible partner for municipalities, provinces, the private sector and, of course, the customers."The Supervisory Board would like to thank Peter Vermaat for how he has led Enexis Groep over the past six years. Piet Moerland: "Under the chairmanship of Peter Vermaat, Enexis has succeeded in developing into a leading customer-focused grid manager, helping to shape the energy landscape of the future, both within and outside the company's own region. We are very grateful for his contribution and wish him all the best for the future."In view of the major changes that the energy transition will bring for Enexis, the Supervisory Board has also decided to strengthen the Executive Board with two new members. In addition to the CEO and CFO, the board will be extended by a COO (Chief Operating Officer) and a CTO (Chief Transition Officer). More details about these new positions will follow at a later stage.The Central Works Council and the Shareholders' Committee have both issued a positive recommendation on the intended appointment of Evert den Boer.  

In these unpredictable times, during which coronavirus is having a major impact on our daily life, Enexis Groep has taken the necessary safety measures. For example, we too are taking our responsibility to limit the further spread of coronavirus as much as possible. Safety measures The measures taken will apply, in any event, until 19 May. We are basing our measures on the policy of the National Institute for Public Health and the Environment [Rijksinstituut voor Volksgezondheid en Milieu (RIVM)] and we are assessing what is necessary on a daily basis. We are basing all our considerations on three criteria: Safety is the number one priority, followed by continuity of energy supplies and care for each other. We are continuing to work Every day we are making a maximum effort to continue working and to continue supplying energy to everyone who needs it. All our activities are subject to a number of precautionary measures which have been put in place with your health and safety and that of our employees in mind. In addition to this a small portion of our work, which takes place in-house and which involves physical contact with customers, has been discontinued. In addition to the above matters, local situations may arise which will delay, halt or otherwise hamper our work. These could take the form of local authority by-laws (e.g. excavation bans), changes relating to (commercial) customers and situations whereby the health and safety of our colleagues cannot be guaranteed, despite all the precautionary measures. Looking for the right solution together We regard suppliers as strategic partners. This means we consider the problems caused by coronavirus as a joint challenge and we are keen to find a solution together. For that reason we want to ask you to communicate any foreseeable problems at the earliest opportunity via your regular contact person so that we can jointly look for suitable solutions. frequently asked questions Can I still expect orders for materials?Orders for materials will continue until further notice, with the exception of materials for work that have been suspended. Where can I report current or future delivery problems, such as the late delivery of materials as a consequence of coronavirus?You can report any delivery problems via your regular contact person. Enexis will then contact you to coordinate things in more detail. Can I unload materials at the Enexis Logistical Operation Centres (in Veldhoven and Hoogeveen) as normal?The Logistic Operational Centers in Veldhoven and Hoogeveen are operational as usual. However, there are additional safety measures for unloading materials. To enhance general safety measures, external drivers and suppliers should not enter the LOC. As such:- Enexis employees will unload all materials presented at the loading docks.- As the layout of LOC North and South differs, unloading procedures will be displayed at each location. Unloading procedures are straightforward, practical and clearly visible.- All drivers and suppliers should adhere to the displayed procedures. Procedures are displayed in Dutch, English and German, as required by Enexis policy.- Drivers may still use the toilet facilities and coffee machines.- Unloading procedures outside the loading dock areas will not change. In addition, and in accordance with RIVM policy, general safety precautions at our locations remain in force. We understand that these additional measures can be inconvenient and thank you for your cooperation. Can I unload materials at the Enexis Logistical Service Points?The Enexis Logistical Service Points are open as normal. However, precautionary measures apply at the Enexis locations. The regular obligations with regard to wearing personal protective equipment apply at the locations. A number of precautionary measures are also in force: -No handshaking. - Wash your hands regularly. - Keep at least 1.5 metres from each other. - Cough and sneeze into the inside of your elbow. - Use tissues. - If you experience any symptoms (such as a cold, sore throat, coughing and/or a fever), you should not visit our locations until the symptoms have completely disappeared. Who should I contact if I have questions regarding the supply of materials to Enexis in relation to coronavirus?If you have any questions, please contact your regular contact person at Enexis.

The energy transition has a major impact on network operators and therefore also on Enexis Netbeheer. This is, for example, due to the construction of wind and solar parks, but also due to the changing behavior of customers who, for example, will be generating decentralized energy. As a result, Enexis Netbeheer has an increasing investment level for facilities that make the grid suitable for these changing energy flows. In addition, Enexis Netbeheer continues to invest in regular maintenance and regular extensions that are necessary for a safe and reliable network. All this together means a structurally higher level of activity and investment. Current regulation does not sufficiently facilitate the aforementioned growth in investments. In order to be able to finance growth as a result of the energy transition in the future, Enexis Netbeheer critically assesses its own efficiency and is in discussion with the regulatory authorities. Enexis Holding and its shareholders have recently explored options for strengthening equity. This has resulted in a request to all shareholders to strengthen equity with a convertible hybrid shareholder loan totaling € 500 million. The shareholders will consider this request in the coming months. At the request of the shareholders, there are two so-called boarding moments: in July 2020 and in November 2020. In this way, Enexis Group proactively fulfills its role in the energy transition.  

According to the annual report that was published today, Enexis Netbeheer B.V.’s work package in 2019 – relating to the upgrade and maintenance of the energy grid –  amounted to no less than € 804 million. The energy transition is moving forward, and the grid operator's work package will increase further in 2020 to a record € 878 million. This represents an increase of almost 50% since 2015. Carrying out the growing work package with a shortage of technical staff presents a challenge to Enexis Groep. As in 2019, the grid operator will focus on four priorities in 2020 to ensure the work package is achievable and that it’s carried out smart and efficient. Peter Vermaat, CEO of Enexis Groep: “ Whilst we are working hard to build the energy system of the future, ensuring a secure energy supply every day is still what matters most to our customers. Our outage time for electricity has been low for many years, and averaged 14.2 minutes in 2019 (2018: 16.0 minutes). Enexis will therefore stick to its course amidst the turbulence of the energy transition. It is our task to ensure an energy supply that is safe, reliable, affordable and accessible to everyone, both today and in the decades ahead. This is a difficult assignment, because we - like those in the rest of the sector - need many new employees to perform the work that needs to be done. We are therefore taking the steps to increase recruitment, create extra training capacity at the Enexis Technical Skills Academy and develop training programmes with external training institutes. Another challenge is that we must make long-term investments in renewable connections now, even though the definite design of the new energy system is not yet ready. We work with Dutch municipalities and provinces on formulating Regional Energy Strategies, which are local designs for the energy system of the future. In all our service areas, we are arguing for the most efficient energy system, with renewable electricity, sustainable gas and sustainable heating. In this way, we are utilising the existing infrastructure to the full and keeping the transition on track.” Four priorities In 2019, we prioritised working safely, customer-driven work, improvement projects for the customer, and accelerating the energy transition. This helped us to strengthen the focus on our activities and we will continue with the same priorities in 2020 to ensure consistency. Safe working always has top priority. It is what Enexis values most. We want everyone to return home safely and in good health every day. Every accident is one too many for us. In 2019, there was a decline in the number of accidents that involved our own employees and resulted in absenteeism (LTIF  of 1.16, compared with 1.48 in 2018) and of employees of contractors that work for us (LTIF of 2.58, compared with 4.53 in 2018). For several years now, our safety score has been improving. We also notice that safety awareness within the organisation is steadily growing. There has been a sharp increase in demand from consumers and businesses. The economy is growing, and therefore plenty of investments are being made in improving sustainability. Enexis therefore prioritises customer-driven work over maintenance and replacement, provided that our networks and work continue to be safe. The number of customers feeding energy back into the grid has trebled in the past five years, from some 118,000 feed-in connections in 2015 to approximately 400,000 in 2019. Although transmission capacity is limited in some places, we were able to provide positive transmission capacity statements for 87% of the applicants for the SDE+ renewable energy grant scheme. Renewable generation increased to some 2,500 MW, which is sufficient to power approximately 1 million households using solar energy. The expansion of our work package and the lack of available staff and materials demand greater focus. We need to do the  work for our consumers and businesses more efficiently or smarter. In 2019 we carried out various improvement projects for the customer and we made our processes smoother, faster and more efficient. This benefits customers and staff alike. We also used more data to plan, organise and monitor our work, so we stay in control and can further improve our services. In order to accelerate the energy transition, we are developing achievable and affordable solutions. Our service area comprises ten energy regions and in these regions we act as a partner to the Dutch provinces, municipalities and water boards when they formulate their Regional Energy Strategies. In this context in 2019, we visualised the possibilities available to municipalities to clarify where we could quickly connect the highest possible number of renewable projects. Financially sound Our net profit for 2019 amounted to € 210 million (2018: € 319 million due to a large one-off release from employee-related provisions and a non-recurring tax expense in 2018). Excluding non-recurring items, the net profit for 2019 came to € 228 million (2018: € 243 million). In 2019, Enexis saw revenue rise to € 1,491 million (2018: € 1,445 million), largely as a result of higher tariffs. By contrast, operating expenses increased due to a larger work package and because we stepped up our efforts to achieve our key priorities. These were notably around recruitment and training of technical staff, facilitation of the energy transition and future-proofing of ICT systems. A robust financial position is crucial for Enexis so that it can finance its growing investments in the energy grids. Enexis has a solid financial foundation and a strong credit risk profile credit risk profile with an A+ credit rating from Standard & Poor’s and an Aa3 credit rating from Moody’s. We expect to make greater use of capital providers - both debt providers and shareholders - to finance our growth.

The Supervisory Board of Enexis Groep reports that CEO Peter Vermaat has announced his intention to transfer his tasks to a successor in mid-2020. After six years in charge of Enexis, he believes that it is time to move on. Completion of the climate agreement heralds a new phase in the energy transition, says Vermaat. "In recent years, as CEO within and beyond Enexis, I have been able to contribute to the framework conditions and the launch speed needed for the implementation phase that is now beginning. There is a clear strategy in place, and there is a stable and very committed organisation of management and employees. Our operational activities will reach the highest level ever in 2020; with this a new phase is dawning that calls for other emphases in organisation and leadership than when I started in 2014. It is sensible that a new CEO should take the lead in the coming period." The Supervisory Board respects this decision and has started the process of seeking a successor. "We are very grateful to Peter for the inspiring way in which he, together with his colleagues in the Board of Directors and Management, led the company and shaped the first phase of the energy transition within Enexis and the sector", says Piet Moerland, chairman of the Supervisory Board. "A great deal has been achieved under Peter's leadership. We understand his considerations and appreciate the fact that we have ample time to find a new CEO." With a strong focus on two strategic pillars, excellent grid management and acceleration of the energy transition, Enexis has taken targeted steps in many areas in recent years. For example, the level of production in 2020 is almost 50% above that of 2014. Customer processes have improved and become more transparent, and a culture that focuses on results and continuous improvement has emerged. In the area of energy transition, where the challenge is great and ongoing, Enexis has made a visible and substantive contribution to the Climate Agreement. It is not yet known what Peter Vermaat’s future role will be: "For the foreseeable future, I will focus on executing the Enexis’ plans for 2020. I am pleased to be able to take enough time to hand over to my successor, and I will also gradually focus on a new phase in my career."  

Climate goal for onshore renewable energy ambitious yet achievable The Dutch Climate Agreement stipulates that, by 2030, at least 35 TWh (terawatt hours) worth of large-scale renewable electricity is expected to be generated onshore. This ambitious goal will be achievable and affordable, provided that existing policies are adjusted and that there is clear focus and direction. With this in mind, Enexis Groep supports the introduction of a transmission indication. In addition, on the occasion of publishing its interim report, the network company also argues for better alignment between the validity period of a decision to grant a renewable energy generation subsidy (in Dutch: SDE-beschikking) and the actual development period of renewable energy projects. While Enexis Netbeheer will shore up the grids where possible and as required, more time will be needed to connect all solar parks. Better alignment between validity period of grant decision and development period The goal of 35 TWh set in the Dutch Climate Agreement corresponds to approximately 40,000 soccer fields of solar panels. This may sound like a lot, but – given the solar and wind farms that are currently being considered – Enexis Groep believes that the climate goal for large-scale renewable electricity is achievable. To speed up the process and to keep public costs to a minimum, the existing energy grid must be utilised to its full potential. New grid investments should also become more predictable. That is why Enexis Groep supports the introduction of the ‘transmission indication’ in the grant process, which would make a subsidy contingent on existing grid capacity. The transmission indication should preferably be introduced when renewable energy generation subsidies are granted next in the autumn of 2019. The network company also insists on better alignment of the validity period of a grant decision and the lead time for finalising a project and connecting it to the grid. This would broaden the subsidy arrangements to include projects that cannot be connected to the grid in the near future due to limited grid capacity and would prevent projects from being removed from waiting lists because the grant decision has expired. What is more, it would also improve the predictability of grid investments. Policy-making based on Regional Energy Strategy (RES) The Regional Energy Strategies, which are currently being developed, play a significant role in planning investments in the grid. An RES combines data provided by market parties, grid operators and government bodies into a single map, allowing stakeholders to gain a proper understanding of possible locations for generating solar and wind energy. If generation locations are pinpointed early, a grid operator has time to adjust its infrastructure so as to accommodate the required capacity. Focus on climate goals Enexis Groep sees a mix of renewable electrons and green molecules as a promising option for keeping the energy supply affordable. Subsidy arrangements need to be structured effectively to facilitate this. Not from the perspective of ‘the more the better’, but with the aim of achieving the 35 TWh agreed in the Climate Agreement and promoting the innovations required in this context, for instance for energy storage and converting electricity into hydrogen. This would allow public money to be used for developing a smart energy mix with solar and wind parks, heat and renewable gases. Given that the current natural gas infrastructure is suitable for the transmission of renewable gases, this would also secure the affordability of the energy supply in the long run. Electricity grid investments up by more than 20%The transition to the energy supply of the future calls for major grid investments. In the first half of 2019, DSO Enexis Netbeheer spent € 261 million on the grids, €44 million more than it did in the first half of 2018. Most of this amount, i.e. € 171 million, went towards the electricity grids. This represented a € 35 million increase on last year. Revenue was up € 20 million, rising to € 738 million; profit for the year landed at € 119 million. The company’s financially robust position (Standard & Poor’s: A+/A-1/Stable; Moody’s: Aa3/P-1/Stable) is a firm foundation for the future.

20 - 30% more wind farms and solar parks could be connected to the existing power grid, providing the grid is permitted to work more efficiently. The power grid is currently installed in such a way that it is designed to cope with the highest peaks in supply and demand, whereas those peaks only occur a few days per year. As a result, much grid capacity remains unused the rest of the time. Technical options for using the grid more efficiently are available. However, existing regulations do not always allow them to be used. It is therefore time these regulations are changed. It is also important that the government coordinates the choice of the location and size of solar parks and wind farms. To ensure a stable financial position in the future, it must be possible to incorporate investments in advance into the rates charged. Enexis Groep advocates this on the occasion of the publication of their 2018 annual report. Peter Vermaat, CEO Enexis Groep: “In addition to a safe and reliable energy distribution, we paid a lot of attention in 2018 to a future-proof energy supply. We strengthened our infrastructure in various locations so we are ready for a rapid increase in sustainably generated energy and a higher demand for power. However, that is not possible everywhere at the same speed. For instance, the grid capacity in the Netherlands is not designed for a large increase in solar parks. Which is unfortunate as we are now forced to disappoint customers. We are therefore campaigning for new legal frameworks to accelerate the energy transition and we are looking into which technical solutions are feasible. We will also be using our expertise in 2019 to support regional governments in defining their Regional Energy Strategies. To prepare our grids for local wishes, it is crucial to know about plans well in advance and to be able to contribute our ideas. The transition to a sustainable energy supply in combination with a growing economy and a shortage of technical personnel is a great challenge. We are therefore putting increased emphasis on recruiting, training and retaining technical staff as achieving our goals is based upon the energy and expertise of our employees.” Excellent grid management We expect that demand for electricity will rise even further due to increasing electrification of mobility and heating. Another development is that an increasing number of private customers are generating their own energy. In 2018, over 78,000 private customers started feeding back energy into our grid, an increase of around 45% compared to 2017.Enexis Netbeheer extended the power grid in several places in 2018 to provide enough capacity to transport all future solar and wind energy. At the same time, Enexis Netbeheer is promoting efficient grid usage and smart solutions to avoid having to invest excessively in grid reinforcement. Moreover, the limited availability of technicians in particular will present a dilemma for society in the coming years. However, we are not making any concessions when it comes to working safely. The safety index LTIF has improved to 1.48, but we are still not satisfied (2017: 1.65). Safety is, and will always be our top priority. To keep our grid in optimal condition, safeguard a safe and reliable supply of gas and electricity and continue the roll out of smart meters, Enexis Netbeheer spent € 789 million in investments and operating costs in 2018. Before making choices and taking decisions regarding these long-term investments, we carefully weigh factors such as reliability, safety, statutory requirements, costs, customer satisfaction and sustainability. In 2018, Enexis Netbeheer succeeded in limiting electricity outage time to on average 16 minutes (2017: 13.8 minutes). This is well below the long-term national average. For gas, this is 90 seconds (2017: 50 seconds). This increase was caused by a small number of exceptional outages. Accelerating the energy transition Increasing sustainability in the built-up environment is one of the greatest challenges for the energy transition. Together with municipalities, housing corporations and homeowners, Enexis Groep is searching for suitable and affordable solutions, with the ultimate goal of a carbon-neutral built-up environment in 2050. At the neighbourhood level, the grid operator advises on the best and most cost-efficient solution, taking into account the local situation. Enexis Groep does not believe that a radical transition to all-electric is the best choice in every case. In order to accommodate the local situation, we advise a pragmatic approach that is flexible enough to adapt to new technological developments. In this way, plans for increasing sustainability are implemented and the costs remain under control. Financial position Our result after tax is €319 million (2017: €207 million). This increase can mainly be attributed to a revaluation of the deferred tax provisions. Our normalised result after tax is €243 million (2017: €222 million). This increase is primarily due to a favourable revenue development; total revenues increased in the past year by €47 million to €1,445 million (2017: €1,398 million). On the other hand, there was an increase in operational costs in particular for strategic projects to improve customer processes and ICT. The improving economy and the government subsidies available to stimulate sustainable energy production have led to extra demands from customers in the form of extra grid expansion and sustainable projects. The gross investments in electricity and gas grids have therefore increased by €44 million. In 2018, Enexis Holding’s creditworthiness remained unchanged with a Standard & Poor’s credit rating of A+ (Stable Outlook) and a Moody’s credit rating of Aa3 (Stable Outlook).

District oriented approach presents opportunities for balanced heat solution District by neighbourhood and together with municipalities, Enexis Groep is investigating solutions that deliver CO2 reductions. This makes it possible to make different choices per neighbourhood regarding the most efficient sustainable heating method; all-electric, heat grids or hybrid heat pumps (on sustainable gas and green electricity). In reality, it seems that the potential of sustainable gases such as hydrogen and green gas sometimes still receive little exposure. In addition to the excellent execution of its core task, Enexis Groep still sees opportunities for accelerating the energy transition. This is evident from the interim report Enexis Holding N.V. publishes today. Peter Vermaat, CEO Enexis Groep: “We are positive about the outcome of the Climate Agreement and the contribution we can make in meeting the CO2 targets. As a distribution system operator (DSO), we realise we have to take substantial steps to ensure excellent grid management for today and tomorrow, with new, sustainable solutions. The transition to a sustainable energy supply presents a huge challenge, and the growing economy, combined with a shortage of technical staff, has led to so much work that it is sometimes not possible to realise connections on time. This is inconvenient for customers. We are working on this together with other DSO’s. We are doing everything we can to prevent delays for customers, for example by training technicians in our vocational schools. In addition, we offer municipal authorities, who play a coordinating role in making neighbourhoods more sustainable, a process consultant, who can support the search for a suitable and affordable alternative to natural gas. We often notice that opportunities for sustainability by using green gas are not yet being completely included in this search. This solution is affordable, fast to implement and highly promising in meeting CO2 goals. By continuing to conduct research into sustainable innovations and investing in the training of employees, we are prepared for the challenges the energy transition presents. This makes us a solid partner for citizens, businesses and municipalities, helping them to seize opportunities that accelerate the energy transition.” Green gas as an affordable alternative In principle, there are three technologies possible to make the heat provision in a built-up environment more sustainable: all-electric, heat grids and hybrid heat pumps (on sustainable gas and green electricity). A radical switch to all-electric is not always the best choice. For instance, hybrid heat pumps (on sustainable gas and green electricity) are often more affordable for existing neighbourhoods. By opting for this, substantial CO2 savings are achieved, the energy supply becomes more sustainable and future-proof, and the measures remain affordable. Green gas is currently only available regionally. With its green gas booster, Enexis Netbeheer, together with Gasunie Transport Services enables unlimited distribution of green gas produced regionally to the national gas network. This creates ample scope for further growth. Timely investments in energy networks are crucial for the energy transition, because further electrification in the Netherlands is putting a greater strain on the energy grids. Where necessary, Enexis Netbeheer is strengthening the grid, but this is expensive. That is why grid operators are working towards the smart use of the current network, so that we can keep the energy supply affordable. Financially robust In the first half of 2018, revenue rose by €29 million as a result of the increase in network tariffs (on average by 2.4%). As a result of the increased revenue and a slight increase in operating expenses, profit for the year for the first six months of 2018 amounts to €127 million. Financing needs, mainly the result of increasing investments in our networks, are covered through the issuance of short-term debt securities under our Euro Commercial Paper programme. The realised financial key figures more than meet the required minimum values, as evidenced by the unchanged credit ratings (Standard & Poor’s A +/A-1 stable outlook – Moody’s Aa3/P-1 stable outlook).

At the request of some of its shareholders, an independent valuation of the shares of Enexis Holding N.V. (Enexis) was executed in 2014. This valuation makes it possible to buy or sell shares amongst the existing shareholders of Enexis. In order to secure a valuation at market terms and due to the start of a new regulatory period, again an independent external advisor was hired in 2017 to present a valuation opinion for the shares of Enexis Holding N.V. as per the 1st of January 2017. Each year up to the next regulatory period, Enexis will provide an annual update of this valuation. The outcome of the update will be released around 1st July each year. Update valuation Today the updated valuation as per 1-1-2018 has been released to the shareholders of Enexis. The updated opinion shows a bandwith for the valuation of 100% of the shares per 1st of January 2018 of EUR 4,049- 4,549 million. This concerns the valuation under market terms based on a stand-alone and going-concern situation. The point estimate of the updated valuation is EUR 4,242 million. Based on the existing number of shares issued, the point estimate per share is EUR 28.34.

Enexis can see the acceleration of the energy transition happening The proportion of sustainable energy distribution system operator (DSO) Enexis Netbeheer transmits continues to rise. In 2017, 53,000 customers made the move to producing their own electricity. The speed at which the energy transition is taking place creates a challenge for the grid operator. The limited availability of technicians in particular will present a dilemma for society in the coming years. That is apparent from the 2017 annual report published by Enexis Holding N.V. today. Managing the electricity and gas grids is and remains the most important societal task for the network company, that is also focusing on accelerating the energy transition. Peter Vermaat, CEO Enexis Groep: “2017 was a year in which change was evident throughout society. For example, customers are increasingly saving or generating energy themselves, as are municipalities, energy cooperatives and suppliers. Everybody is becoming more involved in the energy transition and is making their own energy decisions. This was noticeable in the number of applications for new connections for feeding in energy to the grid. However keen we are to accelerate the energy transition, this change also raises new issues. A lack of qualified technical staff or available materials can act as an obstacle preventing the grid operator from installing wind farms or solar farms on time. To deal with this, we are training extra technicians in the Enexis Vocational College and we are making our processes more efficient so that we can cope with a greater workload. Within our organisation we need to better cope with the unpredictability of sustainable projects. Progress is often dependent on provincial or municipal decision-making processes and the agreement of local residents. That requires flexibility in our planning and investments. We have ambitious plans, but we are taking realistic steps to accelerate the energy transition. Enexis is taking the initiative to work in collaboration with other companies, government, consumers, cooperatives and knowledge institutes towards innovative, scalable solutions. Only by joining forces can we create solutions that will be workable for all parties. Key figures Amounts in millions of euros 2017 2016 Capital employed                                                           6,386 6,150 Revenue 1,380 1,376 Profit for the year 207 207 Work on the grid* 756 747 Electricity outage time (minutes per connection) 13.8 15.2 Gas outage time (seconds per connection) 50 45 Customer connections, electricity and gas (x 1,000) 5,101 5,037 Accident index own employees (DART rate) 0.33 0.17 Number of employees 4,332 4,390 *Work on the grid: investments and operating expenses including addition for general expenses. (2016 includes investments for Endinet) Excellent grid management In our digital society, electricity is becoming ever more important. This is why the DSO does everything in its power to prevent outages and to solve them as quickly as possible. In 2017 our customers had an average of 13.8 minutes without electricity (2016: 15.2 minutes) and 50 seconds without gas (2016: 45 seconds). The average outage time for electricity in the Netherlands was 24.4 minutes. In addition to smart grid solutions such as distribution automation, grid operator Enexis is also continuing its strong focus on the prevention of excavation damage, a major cause of power outages. Working safely remains equally important for us and we continue to ensure that safety regulations are followed at all times. To keep our grid in optimal condition and to guarantee a safe and reliable supply of gas and electricity, we invested EUR 756 million in our energy infrastructure in 2017. Making choices and taking decisions regarding these long-term investments is preceded by a careful weighing up of important factors such as reliability, safety, statutory requirements, costs, customer satisfaction and sustainability. Accelerating the energy transition We support the national climate and energy agreement that will contribute to a low-CO2 energy system and prepare ourselves as much as possible for reducing natural gas. In the energy transition, every area has its own opportunities and challenges relating to energy. We help provinces, municipalities and housing corporations to create a mix between all forms of energy that are locally-available such as heat, biogas and electricity. Together we make an area-based plan of approach for each residential area’s future infrastructure in the coming ten years. In 2017 we drew up concrete energy plans with a range of stakeholders. Due to the high rate of technological development, we believe that the most sensible energy solution is often opting for a pragmatic answer. Improving sustainability of heating demand is a good example of this. In existing residential areas, we do not phase out the gas grid if there is no other heating solution available in the short term. Instead, we advise customers, municipalities and property developers to make the switch to hybrid heat pumps to make heating demand more sustainable. This allows us to reduce CO2 emissions at the lowest possible societal cost. At € 207 million, the 2017 profit for the year of Enexis Holding N.V. remained the same as in 2016. In part due to a strong focus on efficiency, we exceeded our profit forecast. A robust financial position enables us to achieve our core tasks of ensuring a reliable and affordable energy supply and to enlarge our contribution to the transition to a sustainable energy supply. Media RelatiesJan Bakker0900 0310jan.bakker@enexis.nl Investor RelationsPaul Emans+31 (0) 6 528 464 73paul.emans@enexis.nl Annual report 2017

On 27 July 2017 Enexis Holding N.V. published the interim results. The interim results are published on the website of Enexis Groep.

At the request of some of its shareholders, an independent valuation of the shares of Enexis Holding N.V. (Enexis) was executed in 2014. This valuation makes it possible to buy or sell shares between the existing shareholders of Enexis. In order to secure a valuation at market terms and due to the start of a new regulatory period, again an independent external advisor was hired in 2017 to present a valuation opinion for the shares of Enexis Holding N.V. as per the 1st of January 2017. Valuation opinion Today the new valuation opinion has been release to the shareholders of Enexis. The updated opinion shows a bandwith for the valuation of 100% of the shares per 1st of January 2017 of EUR 4,157- 4,757 million. This concerns the valuation under market terms based on a stand-alone and going-concern situation. The value per share based on the existing number of shares issued is EUR 27.77 – 31.78 per share, with a point estimate presented by the independent advisor of EUR 30.14 per share. The valuation will be updated and the outcome will be released around the 1st of July each year.

The Board of Directors of Enexis Holding has submitted the new strategic plan to its shareholders today. The new strategic course described in this plan focuses on excellent network management and an acceleration of energy transition. This is the company’s response to society’s changing demands in the fields of flexibility, energy conservation, sustainable development of areas and electric transportation. The new strategic course has been formulated as: “We are realising sustainable provision of energy through state-of-the-art services and networks and by taking control in innovative solutions. We are achieving this with a focus on excellent network management and the acceleration of the energy transition.” The strategic plan will be discussed by the Annual General Meeting of Shareholders on 20 April 2017. The strategic plan was drafted in close collaboration with a large group of stakeholders and various shareholders. These sessions revealed a desire for more attention for innovation and increased sustainability in the provision of energy. Furthermore, collaboration with the local stakeholders will be further intensified. In order to safeguard continuity in the management of the energy infrastructure, Enexis is making sure that it maintains its solid financial position. This also creates the leeway necessary to make timely investments towards a sustainable provision of energy. Thus, Enexis is making sure that the power network will continue to be affordable and reliable in the future. Accelerated energy transition In collaboration with local partners, such as consumers, governments and other stakeholders, Enexis is realising the Dutch goals in the areas of sustainable energy production, energy conservation and greener energy. The company is realising these goals by sharing its knowledge and expertise and by collaborating to develop new services. Enexis Holding is realising innovative, scalable solutions that will accelerate the transition to sustainable energy provision. Excellent network management Customers rely on quick service, ease of use and low costs. Enexis is therefore simplifying and digitising processes and making smart use of data. Furthermore, Enexis ensures that energy networks and services are ready ahead of changes in the energy world, guaranteeing an equal or better reliability of energy provision after the change. In all the company’s activities, public safety and the safety of its employees are the top priority. Peter Vermaat, chair of the Board of Directors: “The energy transition calls on Enexis’ ability to change. We wish to address the changing needs of our customers, understand new developments, and apply them properly. Our challenge is to learn to deal with the insecurities that the energy transition creates. It will not always be easy, but we have the energy, the expertise and the experience to be prepared for and make use of change. It is with full conviction that we embark on this new strategic course to conduct excellent network management and accelerate the energy transition.” The full strategic plan can be examined here: enexisgroep.com/strategicplan The strategic plan has been submitted to the shareholders for approval and will be discussed at the Annual General Meeting of Shareholders on 20 April 2017. About Enexis Group Enexis is a grid operator in the energy sector. With nearly 4500 employees, we provide for a reliable energy supply and we offer services with which we make people's lives more pleasant and easier. By employing our knowledge, expertise and energy in all possible ways, we aim to play a leading role in the energy transition. A role within society that we will also continue to fulfil in times of rapid change. Now and in the future.

Enexis invested over EUR 705 million in the reliability of the energy grids in 2016. The 2016 annual report, which Enexis is publishing today, clearly shows that applying ICT in the energy grids results in considerably lower outage times. The introduction of 'distribution automation' has proven to be successful. About 400 medium-voltage stations were equipped with this technology in 2016 and Enexis will continue to invest in being able to read and operate the grid remotely in the coming years. By investing in ICT, the traditional grids are gradually being transformed into smart grids that can be operated remotely. With these innovations, the company is preparing to further accommodate the increase in sustainable energy in which the energy grids will be used more and more for two-way traffic for both energy and data. Peter Vermaat, CEO Enexis Group: "The reliability and safety of our energy grids form an important basis for a successful energy transition. It is our aim to ensure that energy is always available to our customer and that the grid is ready to receive and distribute locally generated energy. In doing so, we ensure that the energy grids can accommodate an increase in the demand for and the supply of sustainable energy. This is why we have also taken a future-oriented approach to investing in our infrastructure in 2016. This phase of the energy transition places high demands on our agility. We have to adapt our grids and our services to ensure that the energy supply will also remain reliable and affordable in the long term. We succeeded in doing this again in 2016 with a lower than average outage time for electricity and gas. Innovations, such as distribution automation, are bearing fruit. With this, we are creating real added value for our customers and society. Both in terms of a lower outage time and in the form of a decrease in CO2 emissions and a safer working environment. With regard to safety, we realised a good performance in 2016 by reducing the number of accidents resulting in absenteeism by 50%. In 2017, we will continue to work unabated on carrying out our public task whereby safety is always first and foremost. As working excellently on the energy supply is only possible when this takes place safely." Key figures Amounts in millions of euros 2016 2015   %  Capital employed 6,15 5,477 12% Revenue 1,376 1,353 2% Profit for the year 207 223 -7% Work on the gird* 705 675 4% Electricity outage time (minutes per connection) 15.2   14.2 7% Gas outage time (seconds per connection) 45 78 -42% Customer connections electricity and gas (x 1,000) 5,037 4,789 5% Accident index own employees (DART rate) 0.17   0.33 -48% Number of employees 4,39 4,299 2% * Work package: investments and operating expenses Low outage time and a strong increase in safety The average time that energy was not available to customers has developed positively at Enexis in the past years. The average outage time has been considerably below the national average already for a number of years. Our customers were without electricity for 15.2 minutes in 2016 (2015: 14.2 minutes) and they were without gas for 45 seconds (2015: 78 seconds), the national average was 21 minutes. In addition to making use of smart grid solutions such as distribution automation, Enexis also aims to prevent excavation damage, which is an important cause of electricity outages. As working with gas or electricity is not without risk, working safely always has priority. We want every employee to return home safely every day, we want contractors to work safely when working for us and we also pay attention to the safety of bystanders. The safety awareness of our employees increased further in 2016 and the number of accidents resulting in absenteeism was reduced by nearly 50% to a score of 0.17 (2015: 0.33). Our successful safety programme will be continued in 2017, as the aim is and remains zero accidents resulting in absenteeism. Accelerating the energy transition Enexis helps customers to increase sustainability and save energy. We worked on reducing our CO2 footprint in 2016 and, via our 'Buurkracht' programme, 165 'Buurkracht' neighbourhoods saved 1.3 million kWh electricity and 450 thousand m3 gas in 2016. In this manner, we contribute to the realisation of the Energy Agreement and the international climate agreements that were made in Paris. The smart meter roll-out was further accelerated in 2016. We installed smart meters at over 360,000 addresses in 2016. In total, over 2 million smart meters have now been installed in Enexis's servicing area. Our ambition to accelerate the energy transition was further strengthened with the establishment of Enpuls. This new company focuses on sustainable regional development, flexibility, energy savings and sustainable mobility. Enpuls works together closely with various government and market parties to develop scalable solutions. As from 2017, Enpuls will be drawing up energy plans together with provinces, municipalities and housing corporations in order to arrive at a (local) approach for the future energy infrastructure. Lowest possible tariffs Based on its public task, Enexis aims to charge the lowest possible tariffs. In this manner, energy remains accessible for everyone. Enexis reduced its customer tariffs by on average 0.7% in 2016. Nevertheless, revenue rose to EUR 1,376 million (2015: 1,353 million) mainly due to the increased number of connections and metering services. Profit decreased to EUR 207 million (2015: EUR 223 million) mainly due to higher expenses related to the exchange of servicing areas with Alliander. The integration of the grid operators Endinet Groep B.V. and Enexis B.V. to Enexis Netbeheer B.V was completed successfully on 1 January 2017. > to our annual report 2016

Enexis invested over EUR 705 million in the reliability of the energy grids in 2016. The 2016 annual report, which Enexis is publishing today, clearly shows that applying ICT in the energy grids results in considerably lower outage times. read our press release to the annual report 2016 online

Stedin Groep, the parent company of Stedin, the network operator, and Enexis Holding, the parent company of Enexis Netbeheer, have reached an agreement on the sale of the gas and electricity supply networks in Weert. The intention is that Enexis Holding will acquire Stedin's 22,000 electricity and 20,000 gas connections by 1 January 2018 at the latest. The 33 employees currently working at Stedin in Weert will be employed by Enexis Netbeheer with effect from that date onwards. Since the start of this century, Stedin has been managing and maintaining the energy networks of the municipality of Weert in Limburg, while the networks in the rest of the province of Limburg are now managed by Enexis Network Management. The plan to transfer these energy networks is consistent with the policy of the Ministry of Economic Affairs, which is namely that the networks are to be managed along provincial lines (as described in the report of the Kist Committee in 2008). By consolidating electricity and gas networks in the province of Limburg under one network manager, a situation will be created in which there is greater clarity for all stakeholders, including customers, municipalities and provinces. It will also make it possible to work more efficiently. This year, in addition to the migration of customers, the transfer of employees from Stedin to Enexis Netbeheer will also be arranged.

Merger Enexis and Endinet on scheduleIncreased efficiency by connecting service areas The integration of Endinet (Eindhoven region) within the Enexis organisation is proceeding well. The integration is a consequence of the previous exchange between Alliander and Enexis of energy grids along provincial borders. Nearly 90% of all 241 Endinet employees have found new employment, either within or outside of Enexis. The aim is that the other employees find a suitable position before the end of this year. In addition, considerable attention has been given to the ICT operation ensuing from the integration. Enexis is currently ahead of schedule for full integration on 1 January 2017. As a result of the merger, the number of Enexis customer connections has risen to over 5 million. The unbundling of the Friesland and Noordoostpolder energy grids out of Enexis is finalised. Peter Vermaat, CEO Enexis: “The first half year of 2016 was, to a large extent, marked by the integration of Endinet. The integration is progressing well, and 210 colleagues have found new employment, either within or outside of Enexis. Expectations are that the remaining employees also find a suitable position. In addition, during the first half of 2016, our focus was also on the safety of our employees. To date our safety policy has proven successful, and has led to a substantial reduction in the number of accidents since 2014. We remain firmly committed to raising the safety awareness of our employees.In 2016, we have budgeted over 700 million euros for the maintenance, replacement and renewal of our grids. At the same time, the reliability of our energy grids has stayed at a consistently high level during the first half year of 2016. The outage time has stayed well below the long-term average, even though there is an increase compared to the historically low outage time of 2015. Another striking observation is that the number of smart meters offered has doubled, compared to the first half of 2015, to well over 228,000 – a rapid increase, without compromising on customer satisfaction. We also continue to encourage energy-saving efforts in our catchment area. For example, together with other market players, we have started a campaign to step up the use of smart meters. The average CO2 emissions per employee have also decreased, which is an encouraging first step towards our target, namely to halve emissions by 2020.” Key figures Amounts in millions of euros  Half year 2016 Half year 2015 % Capital employed  6,064.0 5,105.4 19% Revenues  684.6 673.1 2% Profit for the year  109.7 114.8 -4% Work on the grid*  363.6 286.2 27% Electricity outage time (minutes per connection)  8.2 6.1 34% Gas outage time (seconds per connection)  19 22 -14% Customer connections electricity and gas (x 1,000)  5,021 4,778 5% Accident index own employees (DART rate)  0.20 0.36 -44% Number of employees  4,421 4,331 2% * Work package: investments and operating expenses Increase capital employed and revenues Capital employed has increased by 19%, to over 6 billion euros, mainly through the growth in assets as a result of the energy grids exchange. Revenues have increased by 2%, to 684.6 million euros, compared to the same period last year. The drop in revenue, caused by tariff reductions and the sale of the network in Friesland and the Noordoostpolder, has been more than compensated for by the acquisition of Endinet. Profit, on the other hand, is down by 4%, to 109.7 million euros, primarily because of higher costs incurred by the increase in staff and increased depreciations. Reduced number of accidents Working with gas and electricity is accompanied by considerable risks. We want every employee to arrive home safe and sound at the end of each day. In the first half of 2016, our safety awareness programme contributed to a further reduction in the number of accidents. The reduction compared to the first half of 2015 demonstrates that our programme has been successful to date. In spite of this, a total of 4 accidents resulting in absence occurred in the first half of 2016. Further improving the safety of our own employees and that of our contractors is, and will remain our highest priority. Reliable energy grids In the first half of 2016, Enexis customers experienced an average of just over 8 minutes of electricity outage, just below the five-year average. This is an increase compared to the same period in 2015, when the outage time was historically low. This was mainly due to 2 major faults in the medium voltage installations. The 12-month moving average outage time is 16,3 minutes. The average gas outage time for customers decreased to 19 seconds in the first half of 2016. Acceleration of smart meter programme In the first half of 2016, Enexis offered smart meters to 228,000 addresses (first half of 2015: 115,000 addresses). Around 90% of the offers immediately resulted in a successful installation of the meter. In the other cases, the customer was not at home, for example, there were technical reasons why the meter could not be installed, or the customer refused the meter. To encourage and support customers to make the most of their smart meter, Enexis has started the pilot, ‘Energiekanjers’. In this pilot, together with over 20 commercial parties, we are looking at how best to approach households in order to encourage them to purchase energy-saving products. Growth in sustainability The Buurkracht programme, set up by Enexis, has been a successful way to stimulate sustainable energy use. In this programme, neighbours work together on energy-saving initiatives. In the first half of 2016, the number of Buurkracht neighbourhoods increased to 137. The number of schools participating in the ‘Van zon krijg je Energie’ programme, in which children are taught about the energy of the future, increased to 253 in the first half of 2016.

The energy transition is gaining momentumEnexis installs 330 smart meters an hour The energy transition is gaining momentum, grid operator Enexis also notices this in the again strong growth of the number of solar installations. In addition, Enexis's technicians installed no less than 330 smart meters per hour at the end of 2015. With these meters, customers can obtain a better insight intotheir energy consumption, which leads to a higher demand for energy-saving services. The smart meter also contributes to better grid management. At the end of 2015, Enexis had installed in total 1.1 million smart meters at 662,000 addresses. The installation percentage is 90%. Furthermore, households in theservice area of Enexis had on average only 14.2 minutes no electricity supply in 2015. This historic low electricity outage time is apparent from Enexis's 2015 annual report, which has been published today. Peter Vermaat, CEO Enexis: “We also made a big effort in 2015 to give form to and accelerate the energy transition. For instance, an intensive cooperation was started in 2015 with other parties for wind-on-shore projects and the offering of smart meters has been gathering steam. The increase in, for example, the number of wind farms, solar panels and electric cars and the increasing importance of heating in the energy mix illustrates the current transition of the energy supply. The driving force of consumers, energy cooperatives and businesses continues to increase. We take these developments into account in our investment decisions and programmes. The energy transition demands a lot of agility and flexibility on our part in order to respond pro-actively to developments and, at the same time, continue to reliably and safely supply energy. And we certainly succeeded in doing this in 2015 with a historically low outage time for electricity. In addition, an important result is the increased awareness of our employees with regard to working safely, which is also reflected in a substantial decrease in the number of accidents in 2015 compared with 2014. Our target is to have no accidents resulting in absenteeism. Therefore, working safely will also remain our number one priority in 2016." Key figures Amounts in millions of euros  2015 2014 % Capital employed  5,475.5  5,339.9  3% Revenues  1,353.4  1,399.5  -3% Profit for the year  223.1  265.5  -16% Work on the grid*  675.0  603.0  12% Electricity outage time (minutes per connectio n)  14.2  17.7  -20% Gas outage time (seconds per connection)  78 90 -13% Customer connections electricity and gas (x 1,0 00)  4,7 89  4,7 66  0% Accident index own employees (DART rate)  0. 33  0. 60  -45% Number of employees  4,2 99  4,3 16  0% * Work package: investments and operating expenses Historically low outage time The outage time of 14.2 minutes per connection for electricity in 2015 (2014: 17.7 minutes) is significantly lower than the long-term average of 22 minutes, and the average outage time for the Netherlands in 2015 (32.9 minutes). Investments in grid innovations contributed to this higher reliability. For instance, Distribution Automation enables us to resolve outages faster. We equipped around 300 medium-voltage stations with this technology in 2015, which brought the total number of stations equipped with Distribution Automation up to around 1,000. Furthermore, we are working on outage prevention, for example, by limiting excavation damage. Enexis continues to invest in maintenance and replacements in order to ensure that the grids also remain safe and reliable in the future. Work on the grids amounted to EUR 675 million in 2015 (2014: EUR 603 million) and will increase up to EUR 705 million in 2016. Working with gas and electricity demandsconstant alertness by our employees. We want every employee to return home safe and sound at the end of every day. The safety awareness of employees increased further in 2015 and the number of accidents resulting in absenteeism was considerably lower than in 2014. Our successful safety programme will becontinued in 2016. Contributing to the Energy Agreement Enexis aims to play an active role in the realisation of the Energy Agreement and to work together with chain partners, governments and energy cooperatives to achieve this. For instance, Enexis contributes to energy saving and education about sustainability with social programmes. The number of 'Buurkracht' neighbourhoods increased in 2015 to 102 (2014: 47), and the number of 'Van Zon Krijg je Energie' schools increased to 219 (2014: 118). Within the statutory framework, Enexis also makes its data available for general use as much as possible. With open data, we support organisations, such as municipalities and market parties, with the development of applications for energy savings. For instance, from July 2015 onwards, we have made our anonymised lowvolume users data available for general use. In addition, we focused on reducing the CO2 footprint of the organisation in 2015 also by means of improved waste management, a more sustainable mobility policy, socially responsible procurement and making employees more aware of their own behaviour. Lower tariffs Enexis reduced its customer tariffs by on average 3.8% in 2015. The tariffs will also decrease in 2016, on average by 0.7%, in accordance with the maximum tariffs permitted by the regulator. The tariff reduction in 2015 resulted in a more than 3% lower revenue of EUR 1,353.4 million (2014: 1,399.5 million). Togetherwith an increase in costs due to the growth of sustainability and improvement projects, which was partially offset by increased efficiency, this decrease in revenue resulted in a decrease in profit to EUR 223.1 million (2014: EUR 265.5 million). This resulted in a net return of 4.1% on the capital employed of EUR 5.5 billion (2014: EUR 5.3 million). An important step also took place in 2015 in organising the servicing areas in line with provincial boundaries. The exchange of servicing areas with Alliander will also lead to efficiency gains which will benefit the customer in the future.

Safety: fewer accidents resulting in absenteeism Reduction in tariffs by 3.8% on average reduce revenues and profit levels Work on the grid in line with our long-term objectives Increased reach of sustainability projects Peter Vermaat, CEO Enexis: “Enexis delivers reliable and safe distribution of energy. This is our raison d’être and our basis for continuity. As far as maintenance and improvements to our energy grids are concerned, we are on target. Good news for our customers is that we reduced tariffs from 1 January 2015 by an average of 3.8%. This has led to lower revenues and profit levels, while we are still able to offer our shareholders a reasonable investment return. From the strong rise in the number of solar installations, it appears that energy transition is speeding up. In the province of Groningen the number of customers feeding into the electricity grid increased by 59% in the first half of 2015. This example demonstrates the need for Enexis to manage energy grids with a view to energy transition. In addition to reliability, sustainability is a major focus of our strategy. In the past six months we have made good progress with educational programmes such as Buurkracht and Van Zon Krijg Je Energie, and we have reached out to more people. This way we encourage energy-saving efforts. We also focus on the personal development and health of our employees, enabling longer employability. In everything we do, safety is our first priority. We want each employee to get home safely each day. Our constant focus on safety has resulted in fewer accidents with absenteeism this first half year, in line with our long-term objectives. This is encouraging, but we are not complacent. Safety at work will remain a focus area of our strategy.” Key figures   Amounts in millions of euros  Half year 2015  Half year 2014 % Capital employed  5,105.4  5,300.7 -4% Revenues 673.1  696.1  -3% Profit for the year  114.8  135.7  -15% Work on the grid 286.2  277.7  3% Electricity outage time (minutes per connection )  6.1  7.4  -18% Gas outage time (seconds per connection)  22.0  54.0  -59%   2015 2014 Customer connections electricity and gas (x 1,0 00)  4,778  4,760 0% Safety: reduced number of accidents resulting in absenteeism The subject of safety is a priority at Enexis. Our aim is to halve the number of accidents resulting in absenteeism by 2017 in comparison with 2013. With an accident index of 0.36 in the first half year of 2015 (first half year 2014: 0.74), Enexis has taken its first steps towards achieving that goal. To consolidate and maintain this positive trend, Enexis continues its internal safety awareness programme. Decreased tariffs by on average 3.8% reduce revenue and profit Revenue has dropped to EUR 673.1 million (first half year 2014: EUR 696.1 million). As the regulator ACM (Netherlands Authority for Consumers & Markets) has lowered the maximum permitted revenue, Enexis has lowered its tariffs by on average 3.8%. Added to this, costs have also risen particularly as a result of agreed periodical wage increases and higher costs for improvement projects, the benefit of which will be felt in the coming years. Consequently, net profits dropped to EUR 114.8 million (first half year 2014: 135.7 million). An important measure for further cost savings in the future is a rationalisation of the allocation of service areas for distribution system operators. To this end, Alliander and Enexis have signed an agreement to exchange regional networks. Work on the grid in line with long-term programme Enexis has the task of ensuring that everyone has a constant safe supply of energy. In this Enexis facilitates the energy transition and is investing heavily in the energy grid and deployment of smart meters. The transition to a more sustainable and decentralised energy system appears to be gaining speed. In our service area, the number of customers supplying energy back to the electricity grid has increased in the first half of 2015 by 25% to a total of around 100,000. These customers produce a combined installed capacity of almost 500 MW. Enexis is adapting its grid to this decentralisation of the energy supply, for example by updating transformer stations. Since the start of our roll out in 2010, Enexis has offered smart meters to over 560,000 households, 95% of which have had a smart meter installed. The annual outage time for electricity has decreased in the first half year to 6.1 minutes (7.4 minutes in the first half of 2014). The outage time for gas decreased to 22 seconds in the same period (54 seconds in the first half of 2014). Foreseeable workload for the grids in 2015 amounts to EUR 675.0 million, EUR 286.2 million of which was carried out in the first half year. The realization is behind schedule because of fewer gas grid replacements during the winter months, amongstothers. Reach of sustainable initiatives further extended Enexis implements sustainability as an integrated component of its strategy. As a partner in the energy transition Enexis has contributed to an increase in sustainability for the Enexis supply area, with initiatives such as the increasing number of Buurkracht areas, now numbering 83 (50 as of 31 December 2014). In addition to this, 180 schools are currently participating in our programme Van Zon Krijg Je Energie(75 schools as of 31 December 2014).

Sustainability securely embedded in Enexis's strategy in 2014 Energy consumption of 4,500 households saved due to energy savings in 1,800 transformer stations Reuse of waste material increased by 14% to 13,291 tons, 7,250 tons of CO2 avoided Number of participating Neighbourhood Power neighbourhoods rose to 53 in 2014 (2013: 3) Expanded investment programme mainly due to increase in smart meters The scale of the work on the grid increased in 2015 to EUR 675 million (2014: EUR 603 million) Increase in replacement investments in 2014, investments in the grid remained stable at EUR 357 million Annual electricity outage time in 2014 amounted to 17.7 minutes (multi-year average 22.4 minutes) Customer-oriented offer of smart meters Smart meters were offered at 174,000 addresses in 2014 (2013: 129,000) Customers value the smart meter offer with a score of 7.4 (2013: 7.5) Return in line with previous year A 1% increase in revenue to EUR 1,402 million (2013: EUR 1,386 million) due to a limited increase in tariffs Profit of EUR 265.5 million (2013: EUR 239.1 million) also due to cost reductions and incidental gains Peter Vermaat, CEO Enexis: "Our figures over 2014 show that the foundation of Enexis's business operations is strong. For instance, the reliability of the energy grid is at the required level and return is in line with the previous year, the cost savings programme is successful and the tariffs also remained low in 2014. Fortunately, there have been no serious work-related safety incidents this year. However, the safety at work of our employees remained below our expectations, in spite of an intensive safety awareness programme. In view of the importance of safety in our daily work, we will organise a follow up of the internal safety programme in 2015. The energy transition accelerated further in 2014, for instance, we observed an increase in the number of solar installations, public charging points and wind parks in our servicing area. Taking these developments into account as well, we have reformulated our strategy. This strategy is in line with the Energy Agreement inwhich a balance is found between, on the one hand, ensuring that the existing energy grid remains reliable and affordable and, on the other hand, making the grid future-proof. This is why Enexis works on, for example, energy savings both within its own company and in its direct environment. With our extensive multi-year investment programme, we are preparing our energy grid step-for-step in order to establish the necessary preconditions to achieve the government target of a completely sustainable energy supply in 2050. In this manner, sustainability is securely embedded in our strategy". Key figures Amounts in millions of euros  2014  2013  % Capital employed  5,339.9  5,265.7  1% Revenues  1,402.1  1,385.7  1% Profit for the year  265.5  239.1  11% Work on the gird  603   573 5% Electricity outage time (minutes per connection)  17.7  23.6  -25% Gas outage time (seconds per connection)  89  50  80% Customer connections electricity and gas (x 1, 000)  4,766  4,751  0% Accident index own employees (DART rate)  0.60  0.54  11% Sustainability securely embedded in Enexis's strategy in 2014 Enexis actively reduced the grid losses in 2014. For instance, the annual energy consumption of approximately 4,500 households (15.2 GWh) was saved in 2014 by taking energy-saving measures in 1,800 transformer stations. In addition, 1,618 more tons of waste were reused in 2014 than in 2013. As a result, waste management is now no longer a cost item for Enexis. In addition to increasing the sustainability of its own business operations, Enexis is working on increasing the sustainability of the energy supply in several ways, for example in joint pilots with energy cooperatives or by smart charging of electric vehicles. Enexis is also working on achieving the Energy Agreement by successfully contributing to energy savings in the residential area. Saving energy is of strategic importance for Enexis as this will ultimately reduce the necessity to expand the grid. The number of Neighbourhood Power neighbourhoods, where local residents are motivated to realise energy savings together, increased in 2014 to 53 from 3 at the end of 2013. In addition, the number of participating schools in the programme ‘The sun gives you Energy', whereby schools invest in solar panels and are provided with lesson material, rose to 124 from 6 at the end of 2013. Expanded investment programme due to increase in smart meters The investments in the expansion of the grid rose in 2014 after decreasing for a number of years, which appears to point to a careful recovery of the economy. In total, more than EUR 600 million was spent on the energy grid in 2014. This work package rose to EUR 675 million in 2015, also due to an increase in investments in grid replacements, smart meters and ICT in the grids. The annual electricity outage time developed positively to 17.7 minutes (2013: 23.6 minutes). However, the annual gas outage time rose to 89 seconds (2013: 50 seconds), of which 53 seconds were due to a gas outage among 306 households in Enschede because of a broken water pipeline that caused the gas pipeline to break and fill up with water. Proven customer-oriented offer of smart meters Customer satisfaction regarding the offering process of the smart meter was valued at a stable high level in 2014 with a score of 7.4. Smart meters were installed at 174,000 addresses, which was 8% below the planned number of 190,000. The reason for this was that the number of requests for smart meters from customers remained below our expectations. The offer planning was made available to market parties in accordance with the smart meter roll-out covenant in connection with the large-scale offer of smart meters. Return in line with the previous year The Dutch supervisory authority ACM has decided to lower the maximum permitted tariffs in the period 2014-2016. Enexis was able to charge a modest tariff increase of approximately 1% in 2014 as the tariffs charged by Enexis in previous years were below the permitted tariff. As a result, revenue rose slightly in 2014. Enexis's tariffs will decrease by on average 3.8% in 2015. Further process and efficiency improvements resulted in a cost reduction that, together with a number of incidental gains from the release of provisions, has contributed to an increase of the net profit to EUR 265.5 million. This resulted in a net return of nearly 5% on the capital employed of over EUR 5.3 billion, which is in line with the previous year and fits the permitted return.

More investments in grids, fewer new connections than expected Increased productivity and cost management contribute to profit growth Strategy fine-tuned, with emphasis on sustainability Maarten Blacquière, CFO and acting Chairman of the Executive Board: “We look back on a good first half of 2014, with the planned workload on scheme and solid financial results. An area of concern is the increased number of minor accidents in the first six months. An intensive programme to raise awareness of safety issues is being conducted company-wide, with the aim of reducing the number of accidents. The stable investment level is a good indicator of our success in achieving our long-term objectives of ensuring a reliable and affordable energy delivery. The proportion represented by customer-driven investments remains lower than expected. The construction industry is still feeling the effects of the recession. The increase in profit levels is due to a modest tariff increase, combined with cost management and gradual improvements in productivity, partly as a result of restructuring the Infra Services division. The first six months of 2013 also saw some additional expenses like higher interest expenses among others, which have not occurred in the first half of 2014. Our new strategy strongly reflects our focus on sustainability, which has already been implemented in successful energy saving initiatives, such as ‘Neighbourhood Power’ (‘Buurkracht’) and ‘The sun gives you energy’ (‘Van zon krijg je Energie’). Reliability, affordability and customer focus continue to be the three other pillars of our policy. Reviewing the first six months of 2014, we are proud that we have shown continuous improvement,both financially and in organisational terms, in a changing organisation and a changing society.”  Key figures In € million Half year 2014 Half year 2013 % Profit for the period 135.7  124.0  9% Revenues 696.1  688.5  1% Gross investments 217.9  228.6  -5% Electricity outage time (minutes per connection) 7.4  14.4  -49% Gas outage time (seconds per connection) 54.0  20.0  170% Half year  2014 2013 % Capital employed 5,300.7  5,265.7  1% Customer connections (x 1.000) 4,76 4,751 0% Accident index own employees (DART rate) 0.74  0.54  37% Number of employees 4,315 4,294 1% Enexis’s planned workload is progressing on schedule. The total value of the programme in 2014 exceeds EUR 600 million. The proportion made up by customer-driven investments in the first half of 2014 remains lower than expected and also below that for the first six months of 2013. No evidence of economic recovery is yet apparent from customer demand for grid expansions. Part of the capacity set aside for this purpose is being used for additional investments in grid improvements such as the replacement of grey cast-iron pipes. In carrying out these works, greater use has been made of internal resources, without losing sight of the position of contractors.  Revenues increased by 1% in the first six months of 2014 compared to the equivalent period in 2013, rising to EUR 696.1 million (first half of 2013: EUR 688.5 million). This increase resulted principally from the small tariff increase that took effect on 1 January. Enexis was still able to introduce a tariff increase in 2014 due to the modest tariff increases in previous years. The profit for the period was, at EUR 135.7 million, higher than in the first half of 2013 (EUR 124.0 million). The reasons for this increase include cost management, gradual improvements in productivity and one-off expenses in 2013 like higher interest expenses among others, next to the above mentioned tariff increase. The number of outages in the first six months of 2014 was considerably lower than in the same period in 2013. The electricity outage time dropped to 7.4 minutes per connection (first half of 2013: 14.4 minutes). The difference in the outage time is distorted by a major electricity outage in Enschede in early January 2013. The gas outage time increased to 54 seconds (first half of 2013: 20 seconds), which includes 35 seconds due to a major gas outage in Enschede in June 2014. This outage was due to a broken water pipeline which caused the gas pipeline to break and fill with water. As a result, 300 households were without gas for several days. The accident figure (DART rate) was, with a score of 0.74, higher than in the first half of 2013 mainly due to a large number of minor accidents. No incidents resulting in injury or absence occurred in Enexis’s core activities of electricity and gas. However, even relatively minor accidents (e.g. tripping) and near accidents should be prevented in Enexis’s practice, due to the potential for such minor incidents to result in more serious consequences. In January 2014, a programme was introduced to raise awareness of safety issues throughout the company. The number of internal reports of potentially dangerous situations has increased significantly since the programme began. On 10 April 2014, Enexis’s shareholders approved a revised strategic plan with a strong focus on sustainability, in line with the agreements in the Dutch Energy Agreement for Sustainable Growth (Energieakkoord). So Enexis’s ‘Neighbourhood Power’ (‘Buurkracht’) programme, intended to help the residents of a neighbourhood make energy savings by providing expertise and practical assistance, achieved remarkable success in the first six months. 29 neighbourhoods are now taking part in the programme.

Good profitability with a limited increase in tariffs In line with the return permitted by the regulator Tariffs increased by 2.2% Profit for the year increased by 7% to EUR 239 million, mainly due to cost control Reliability of the energy grids up to standard Annual electricity outage time 23.6 minutes Electricity outage in Enschede contributed considerably to the outage time adding 4,5 minutes Increase in ICT investments in grids and customer communication Investments in ICT rose 7% in 2013 to EUR 112 million An increase of 21% over the last three years Enexis's role in sustainable development is growing Three new energy-neutral offices in top 10 sustainable buildings Neighbourhood and school projects stimulate energy awareness Maarten Blacquière, ad interim Chairman of the Executive Board/CFO: "The financial results, with a profit for the year of EUR 239.1 million related to a capital employed of EUR 5.3 billion, show that Enexis is a strong performing company. And these results benefit all stakeholders in a well-balanced manner. We are proud of the fact that our customers were also able to benefit from a limited increase in tariffs this year. As a result, we invoiced nearly EUR 140 million less in 2013 than permitted by the regulator. Half of the profit is paid out to the shareholders - provinces and municipalities. This is an amount of approximately EUR 120 million. The other half of the profit remains within the company and contributes, through future investments, to the quality of the energy grids and thus benefits society in general. On the other hand, the increase in the number of accidents can be considered disappointing. Therefore, a programme has been launched to structurally increase the safety awareness among employees and to bring about a change in behaviour where necessary. In addition, we can state that Enexis is fulfilling its role in society, as an indispensable link in the energy supply chain, in an increasing manner. The ongoing investments in the grids, and also in ICT and sustainability, are bearing fruit. In this regard, automated distribution stands out as well as the online availability of data regarding the exact location of grids and connections so that damage as a result of third party excavation activities can be further reduced. In this manner, we can maintain the reliability of our grids at a high level". Key figures Amounts in millions of euros  2013  2012  % Profit for the year  239.1  223.7  7% Capital employed  5,265.7  5,085.0  4% Revenues  1,385.7  1,367.0 1% Gross investments  470.7  504.4  -7% Electricity outage time (minutes per connecti on)  23.6  21.6  9% Gas outage time (seconds per connection)  50  36  39% Customer connections (x 1,000)  4,751  4,736  0% Accident index own employees (DART-rate)  0.54  0.49  10% Good profitability with a limited increase in tariffs With affordability as one of key elements in its policy, Enexis, as in 2012, limited the increase in tariffs in 2013, this time by 2.2%. The profit for the year amounted to EUR 239.1 million. This offers a net return of approximately 4% on a capital employed of around EUR 5.3 billion, which is in line with the return permitted by the regulator. The profit appropriation also enables the necessary investments in the grids. In this manner, Enexis can continue to fulfil its tasks as manager of a reliable grid and facilitator of the energy transition properly. Reliability of the energy grids up to standard The reliability of the energy grids remained at a high level in 2013, apart from one very large electricity outage in Enschede in the beginning of January. The annual outage time for electricity amounted to 23.6 minutes for the whole year 2013, of which almost 5 minutes can be attributed to the outage in Enschede. The national average was 23.4 minutes. In order to keep the outage time on the long-term average of 22 minutes, Enexis invests substantially in the automation of the energy grids. The future of the energy supply, with a strong electrification, two-way traffic in the grids and dynamic tariffs demands a strong ICT role. The total investments in systems and communication resulted in an increase of 21% in the ICT investments over the last three years. The investments in the replacement of gas and electricity grids increased compared to last year. However, the total gross investments in the grids decreased, mainly due to the still limited newconstruction activities. Enexis's role in sustainable development is growing It is Enexis's ambition to limit its own impact and the impact of its customers, expressed in the level of CO2-emissions, as much as possible. For this reason, Enexis has set up a wide range of activities, partly to directly reduce energy and material use and partly to create the conditions to be able to make less use of fossil fuels in the future. Enexis has taken three energy-neutral office buildings into use, which are all three listed in the top 10 of the most sustainable buildings in the Netherlands. In addition, Enexis had no net own CO2-emission in 2013. Advanced waste management and the use of durable materials in the grids are also examples of measures aimed at immediate saving energy. With various pilots, including in the field of smart energy grids and providing assistance and support to customers who produce their own energy, Enexis is constantly looking into energy saving possibilities for customers. But also the communication with regard to smart meters and intensive support of local neighbourhood initiatives (Buurkracht) and school projects (Van zon krijg je energie) demonstrate Enexis's efforts on behalf of the energy grid of the future.

Investment level maintained (EUR 229 million) · Customer tariffs more than 10% below authorised maximum· Successful steering towards a stable profit level (EUR 124 million)· A three-fold increase in the number of solar installations problem-free for the grid Han Fennema, Chairman of the Executive Board: "It is apparent from the financial results that Enexis is a financial solid company and remains on course. We continue to invest in the reliability and safety of our energy grids in accordance with our long-term objectives, also through renewal projects. In this manner, we make a direct social contribution to local economies. We have been able to limit the increase in the customer tariffs, also in 2013. By taking the interest of the customer into account and again not making full use of the permitted increase in tariffs, Enexis helps to keep the customer's energy bill affordable. With this, we have succeeded in achieving a profit level that is in line with the first half of 2012, in spite of the current macroeconomic challenges. A profit level that allows future investments in our energy networks while offering shareholders a reasonable return. The strong increase in de-centralised energy production via solar installations places demands on the electricity grids. We are pleased to observe that this increase has been accommodated in our grids without any problem. As an organisation with a public task and a role in society, we are also proud that nearly 10% of our employees have decided to have solar panels installed on their homes.  Key figures In € million  Half year 2013  Half year 2012  % Profit for the period  124.0  117.4  6% Revenues  688.5  682.5  1% Gross investments  228.6  215.4  6% Electricity outage time (minutes per connection)  14.4  11.0  31% Gas outage time (seconds per connection)  20.0  17.8  12% Half year  2013 2012 % Capital employed  5,156 5,085 1% Customer connections (x 1,000)  4,744 4,736 0% The affordability of the energy supply is an important issue for Enexis and therefore the increase in customer tariffs has been limited to the level of inflation. This is why the revenues increased slightly to EUR 688.5 million (first half of 2012: EUR 682.5 million). Enexis has thus not charged an amount of EUR 137 million to its customers. With this level of revenue, Enexis maintains a good balance between efficient business operations, a sizeable investment programme and a reasonable return for its shareholders, which is reflected in a profit for the period of EUR 124.0 million (first half of 2012: EUR 117.4 million, excluding an amendment in the financial reporting standards: EUR 120.9 million). In the first half of 2013, the investments in the grids amounted to EUR 228.6 million (first half of 2012: EUR 215.4 million). The electricity outage time increased in the first half of 2013 to 14.4 minutes per connection (first half of 2012: 11.0 minutes), mainly due to a major electricity failure as a result of a fire in a transformer station in Enschede in January 2013. Due to this incident the average electricity outage time was increased by approximately 4.5 minutes per connection. Without this incident, the electricity outage time would have been lower than in the first half of 2012. Working safely everyday on the job is of utmost importance for our employees. However, working with electricity and gas is never completely risk free. With a score of 0.46, the accident index remained on a comparable level (half year 2012: 0.42). The number of recorded solar installations within Enexis's servicing area rose in the first half of 2013 by more than 300% to 43,000. Whereby the total production capacity rose to 193 MWp (Mega Watt peak) which is more than half of the total capacity in the Netherlands. Enexis's grids were able to absorb this increase without any problem. Moreover, Enexis has contributed to the sustainability of the Dutch energy system byactively facilitating the energy transition. For instance, without providing subsidies, Enexis has succeeded in motivating 400 employees to have solar panels installed by local installers. These panels represent a total capacity of 1.2 MWp.

Stable financial results, profit for the year € 229.1 million Policy for limited increase in tariffs (2.5%), continued in 2013 (2.2%) Investment programme realised for long-term reliability Successful refinancing through placement of two bond loans Visible results in increased customer orientation Enexis is CO2-neutral in its core operations Han Fennema, Chairman of the Executive Board: “Enexis produced good financial results in 2012. By a moderate increase of our tariffs, we were able to achieve our strategic objective of providing an affordable service while maintaining the reliability of our networks at a high level. We also saw an opportunity to increase our planned investment in the replacement and improvement of our networks. The solid financial foundation of Enexis contributed to the keen interest shown by institutional investors for our second bond loan. We have devoted extensive effort to strengthening the service we provide to customers. The provision of information to customers regarding outages has improved, and the connection service has been simplified. We are also investing in improving sustainability, for example at our offices. By giving employees space to act responsible and to use their professional skills, we are becoming a more attractive employer. We are proud of these achievements. We are committed tostrengthening our business further in the service of our customers.” Key figures In € million  2012 2011 % Profit for the year  229.1  229.4  0% Revenues  1,367.0  1,314.6  4% Gross investments  504.4  445.3  13% Customer connections (x 1,000) 4,736 4,716 0% Electricity outage time (minutes per connection per year)  21.6  18.9 14% Gas outage time (seconds per connection per year)  36 69 -48% Accident index own employees (DART rate)  0.49  0.53  -8% Number of employees  4,229 4,101 3% Enexis realised a profit of € 229.1 million (2011: € 229.4 million). Revenues increased to €1,367.0 million (2011: € 1,314.6 million), mainly due to a limited increase in customertariffs. Costs increased mainly due to an increase in the average retirement age. Enexis is aware of its public duty and its social role. Enexis is limiting the rise in tariffs forenergy transport and metering for its customers. Enexis passed on only a small part (2.5%)of the legally permitted increase in tariffs (8.4%) to its customers in 2012. This policy will becontinued in 2013, with a tariff increase of 2.2% compared to the permitted increase of6.7%. By doing so, in 2012 and 2013 Enexis has charged its customers in total € 200 millionless, which directly benefitted our customers financially. Enexis issued two bond loans in 2012. The first issue was a 10-year loan of EUR 300 million(with a coupon interest rate of 3.375%), and the second was an 8-year loan of EUR 500million (coupon interest rate of 1.875%). The low coupon interest rates show theconfidence of financial market parties in the stability and financial solidity of Enexis. Thebond loans will be used to refinance two shareholder loans. Customers and the market Enexis has simplified its connection process and further improved the provision ofinformation on power failures. Enexis has also taken measures to offer vulnerable familiesmore flexibility to continue to pay their bills, so disconnection of electricity and gas can beavoided as far as possible. The average score for customer satisfaction was 7.6 in 2012, the same as in the first sixmonths. Customer satisfaction regarding specific primary processes, such as meter reading,connections and failures, was also stable. The general level of satisfaction among marketparties such as energy suppliers with regard to Enexis rose further. In the run-up to completion of the New Market Model, Enexis successfully migrated all itsconnection data to the Central Connection Register (Centrale Aansluitregister, or C-AR). TheC-AR will be the source for the future invoicing of items such as the costs of energydistribution by the energy producers. In addition, Enexis installed a total of 100,000 smartmeters in 2012. Energy networks The total investment in 2012 amounted to € 504 million (2011: € 445 million). Enexis is ontrack to achieve its ambitious multi-year investment programme designed to keep thereliability and safety of the grids at a high level. The average outage time in the Enexis electricity grid in 2012 of21.6 minutes per connection was in line with the multi-year average (the level of 18.9minutes in 2011 was a historical low). The national average for the number of outageminutes in 2012 was 27. The Enexis gas grid experienced an average outage time of36 seconds (2011: 69 seconds). The national average outage time was 64 seconds perconnection. After thorough preparation, our ‘Smart Grid’ pilots were launched at the end of 2012, inone district in Zwolle and two districts in Breda. These districts contain housing with smartenergy networks, and a study will be made of the behaviour of the residents regardingenergy generation, awareness of energy use and the returning of energy to the network.The residents have their own solar and other energy sources, and use an energy computerto choose themselves when energy is used. People and organisation Providing a safe working environment for our employees takes absolute priority. The DARTrate improved to 0.49 (2011: 0.53) which illustrates that working for Enexis has becomesafer. Enexis opened a second ‘Enexis Trade School’ in Eindhoven in 2012 that is designed forschool leavers. Several efforts collectively had led to a significant intake of new technicalstaff. Attracting qualified technical staff to compensate for the regular outflow ofexperienced technicians will continue to be a challenge in the coming years. After part of the Enexis organisation had already obtained the NTA 8120 qualitycertification in 2011, the rest of the company obtained the same certification on 2 July 2012so that the whole of the Enexis organisation is now certified. Enexis is seen by its current and potential employees as an attractive employer, which isconfirmed for instance by its top five ranking in the NRC Best Employers Survey. Enexis further refined its climate policy in 2012 in accordance with the ‘Trias Energetica’approach, which among other things focuses on measures to reduce energy usage. We nowuse 5% less electricity in our offices. In addition, the electricity that Enexis has to purchase,for instance to cover distribution losses in the electricity networks, is sustainably generated.Furthermore, emissions resulting from activities without sustainable alternatives are offsetby the purchase of ‘Gold Standard’ certificates. This climate policy means that in its coreoperations Enexis is CO2-neutral.