ENECO Energie General Presentation

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ENECO Energie General Presentation April
2007
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Origins of ENECO Energie

• 1995 ENECO was created by merger of municipal
  energy utilities of Rotterdam, The Hague and
  Dordrecht.
• ENECO name was a working name.
• 2000/2001 merger/acquisition of 8 regional
  energy companies, creating ENECO Energie.
• 2001 divisional structure adopted.
• 2003 takeover of REMU (province Utrecht) REMU
  successfully integrated in 2004.
• Beginning 2007 takeover ONS.

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Profile

• ENECO Energie is among the top energy suppliers
  in the Netherlands.
• ENECO Energie has an integrated distribution
  strategy covering the generation, transmission,
  supply, metering and billing of gas, electricity
  and heat.
• ENECO Energie serves a total of around 2 million
  business en residental customers.
• ENECO Energie employs 5,000 people.

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Mission

• ENECO Energie aims to deliver an uninterrupted,
  safe and forward-looking energy supply to
  household and business end-users.
• We pay particular attention to sustainable
  energy.
• ENECO Energie wants to be recognised by its
  customers, shareholders, employees and society in
  general as the best energy company in the
  Netherlands.
• ENECO Energies objective is to achieve this
  ambition by always conducting our business in a
  reliable, entrepreneurial and professional manner.

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Objectives

• ENECO Energie concentrates on its core
  activities the generation, transmission, supply,
  metering and billing of electricity, gas and
  heat.
• ENECO Energie aims to retain its customers by
  ensuring reliable energy supply and by providing
  a high standard of service.
• ENECO Energie wants to occupy a good market
  position and be able to guarantee a high standard
  of service.
• ENECO Energie strives for excellence in the
  execution of all the companys primary processes
  so as to create added-value on all the companys
  activities.

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Strategy

• To achieve our objectives, there are formulated
  three strategic pillars
• Vertical integration
• Improve operational performance
• Integrated energy company
• For 2007 there are four topics added to our
• strategic agenda
• Safety
• Sustainability
• Innovation
• Maintain a high-value technological profile

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Strategic pillars (1)

• Vertical integration ENECO Energie wants to
  command the entire energy distribution chain
  (from generation to after-sales service) less
  dependence on Dutch wholesale market and a better
  spread of purchasing risks.
• Improve operational performance spearhead
  programme aimed at Operational Excellence
  (process optimalisation, outstanding performance,
  cost- and working capital reduction are
  keywords).
• Integrated energy company integrated energy
  companies offer a better guarantee for the
  reliability of the supply in future, for
  maintaining shareholders value and for a
  stronger competitive position in the European
  market.

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Strategic pillars (2)

• Safety Our goal is to maintain a safe and
  incorruptible environment for our customers and
  employees. Therefor we develop a corporate safety
  programme.
• Sustainability ENECO wants to increase the
  percentage of sustainable energy compared with
  traditional generation. We want to stand out
  through innovative small and medium-sized
  initiatives.
• Innovation ENECO wants to create a structure in
  which innovative ideas, that fit within ENECOs
  vision of the future, can flourish.
• High-value technological profile compels us to
  take an active attitude towards the labour market
  and knowledge institutions, to establish an
  age-aware personnel policy and to set-up a
  substantial internal training and management
  programme.

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Marketshares Retail
Source ENECO Energie Marketing Intelligence 2006
(Acxiom)
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Key figures
2004
2003¹
2005
2006
Key figures ENECO Energie
Turnover² Operating result² Result after tax
² Number of FTEs Sales volumes Electricity
(GWh) Gas (millions of m3) Heat (TJ)
3,544 370 201 4,935 22,307 6,574 11,884
3,577 277 185 5,083 19,911 6,852 10,921
3,692 513 302 4,553 20,151 5,679 11,179
4,288 549 311 4,987 21,603 5,476 11,468
¹ Figures are not adjusted for IFRS ² In millions
of euros
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Market-orientated organisation
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Divisions

• Retail sales to consumers and small businesses.
• Business to Business
• - Sales to medium-sized and large businesses
• greenhouse growers.
• - Purchase of gas, electricity and heat.
• Services customer service, call centres and
  billing.
• Group Installation rental/installation/maintenanc
  e of heating equipment
• Infra construction and maintenance of energy
  distribution networks.
• ENECO NetBeheer independent operator of ENECO
  gas, electricity and heat distribution networks.

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ENECO Energie networks
NOF
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Free energy market
Phasing deregulating dutch energy market
Phase 1 2 3 Phase 1 2 3
Date 1999 01-01-2002 01-07-2004 Date 1998/1999 01-
01-2002 01-07-2004
Electricity Users gt 2 MW Users gt 3 x 80
A Residential small business market Gas Annual
offtake gt 10 million m³ Annual offtake gt 1
million m³ Residential small business market

• Liberalisation is a phased process and based on
  European guidelines
• Market for green power opened up as from 1
  January 2002
• Volume per phase approximately 33.3 of the
  market

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Supply disruptions
Average interruption time (in minutes)
2005
2004
2003
2006
Low-voltage Medium-voltage High-voltage Total
ENECO Total national
3.6 18.4 0.1 22.1 24.0
3.8 17.8 0.6 22.230.0
4,2 14,7 2,2 21,1 27,0
4,5 27,6 4,8 36,9 36,0

• The Netherlands networks are the most reliable
  of Europe 99.9.
• Average interruption gas, due to incidents, is
  in the Netherlands 18 seconds.
• Average gas interruptions in ENECO gasnetworks
  were in 2005 16 seconds.
• Several major incidents drove ENECOs score up
  to the national average in 2006.

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Positioning

• Back to basics we would like to be a no-nonsense
  company. Energy is our business.
• ENECO Energie does what is required, at a
  reasonable price. In short, ENECO Energie
  delivers value for money.
• ENECO Energie aims to be clear and transparent to
  its customers and understands its customers
  concerns.
• ENECO Energie confirms the customers choice for
  us and we aim to give (potential) customers a
  sympathetic and honourable feeling.
• ENECO Energie is reliable, enterprising and
  professional.

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Brand awareness
The aided brand awareness rose from 28 in
January 2000 to 89 in February 2007.
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Social Responsibility

• ENECO Energie aims at reliable, affordable and
  clean energy supply, also in the future.
• Innovation, transparancy and cooperation are
  keywords in our sustainable business policy.
• Examples of our activities
• Stimulate sustainable energy and energy
  saving.
• Expanding sustainable product offering en
  technological
• possibilities.
• Continue to play an active role in the debate
  surrounding the
• future of a sustainable energy supply.
• Demonstrate our social responsibility through,
  for example,
• our energy education programmes for
  primary schools
• Offer our employees a safe, healthy and
  stimulating working
• environment.

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Sustainability

• ENECO Energie is contributing towards the
  reduction of CO2 emission by generating and
  supplying sustainable energy
• ENECO Energie aims to expand the percentage
  renewable energy regard to traditional energy in
  its fuelmix.
• ENECO Energie is strengthening her position in
  this field by investing more than 200 millions of
  euros in sustainable energy within three years
  (2004-2007)

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Summary

• ENECO Energie wants to be acknowledged as the
  best energy company in the Netherlands by
  conducting its business in a reliable,
  entrepreneurial, professional and sympathetic
  manner.
• There are seven cornerstones to ENECOs strategy
  improve operational performance, integrated
  energy company, strategic agenda, safety,
  sustainability, innovation, maintain a high-value
  technological profile.
• ENECO Energie does what is required, in an open,
  no-nonsense and honest way.
• ENECO Energie strives for a structural fulfilment
  of its social responsibility and invests in
  sustainable energy.

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Translation Thats how we do it.