Good results at reduced tariffs

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

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, amongst
others.

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).