2018 saw us make great strides in the energy transition. For example, we contributed our thoughts on the Climate Agreement, developed scenarios for disconnecting from natural gas and worked on solutions with the potential to maintain equilibrium in terms of energy supply and demand. 'We' should be taken to mean Stedin Group as well as all local authorities, businesses, residents and other partners striving towards a sustainable future together. After all, we are working together to create an environment filled with new energy.


'Working together to
create an environment
filled with new energy'.


Key figures 2018

A list of the figures for our three strategic priorities: improved grid management,
facilitating the energy transition and sustainable business operations.

Improved grid management

Grid management is our core task and one at which we strive to improve continuously by providing ever better grids, better service provision and better products and services.


2018 2017

Investments in property,
plant, equipment

In millions of euros

€ 602

€ 490

Average downtime

Electricity

(in minutes)

17.01

16.44

Natural gas

(in seconds)

69

40

Customer satisfaction

Customers who give an 8 or higher


Supply reliability

.


Facilitating the energy transition

Innovation and cooperation are the keywords when it comes to facilitating the energy transition. Together we can come up with smart, sustainable solutions faster.


2018 2017

Number of connections

Charging stations /

electric driving

1,215

1,110


Number of Fast chargers

44

31

Smart meters

Number of offers and % installed


Number of new-build

homes natural gas free



Growth capacity of solar panels

Households and businesses change

from 2017

Provinces of Utrecht and

Zuid-Holland 49% growth

Province of Zeeland 133% growth

Sustainable business operations

We strive towards making a positive impact on the environment and fostering a safe working environment conducive to everyone achieving their full potential.


2018 2017

Safety LTIR

Number of lost-time injuries

with absenteeism per million

hours worked

3.00

4.88

Safety RIF

Number of recordable incidents

per 200,000 hours worked


1.00

1.29

Employee satisfaction

On a scale from 1 to 10


Engagement

7.5

7.4

Commitment

7.7

7.6

CO2-emmissions

Generated by internal business

operations in tonnes


15,352

15,648

Financial results

We saw an increase in both our net revenue and other income and our operating expenses, but below the line the result was in line with our expectations. We finished 2018 with a result after income tax of €118 million.


2018 2017

Total net revenue and

other income

in millions of euros

€ 1,286

€ 1,194

Balance sheet total


in millions of euros

€ 6,991

€ 6,551

Solvency


.f


Working together to create an environment filled with new energy

Our 4,500 staff work day in, day out on creating an environment filled with new energy in cooperation with local authorities, residents, businesses and partners. We do so because we want to ensure that all our customers can have sustainable energy where they live, work and do business. Just like in 2017, our supply reliability was 99.996%. Our customers expect that the grid of the future will be just as reliable as it is today. As a grid manager, we are faced with major challenges as a result of the transition to sustainable energy. The energy transition will require sizeable investments, both now and in the long run. In 2018, Stedin Group invested €602 million in making the grid future-proof – an increase of almost 23% compared to 2017. Making smart investments is necessary if we are to remain financially healthy, which is why in 2019 we will be continuing to work on such things as generating more insight into our grids through data and digitisation. This is to ensure we make headway towards our ultimate goal: a sustainable, reliable and affordable energy system.


Working together to create an environment filled with new energy

Our 4,500 staff work day in, day out on creating an environment filled with new energy in cooperation with local authorities, residents, businesses and partners. We do so because we want to ensure that all our customers can have sustainable energy where they live, work and do business. Just like in 2017, our supply reliability was 99.996%. Our customers expect that the grid of the future will be just as reliable as it is today. As a grid manager, we are faced with major challenges as a result of the transition to sustainable energy. The energy transition will require sizeable investments, both now and in the long run. In 2018, Stedin Group invested €602 million in making the grid future-proof – an increase of almost 23% compared to 2017. Making smart investments is necessary if we are to remain financially healthy, which is why in 2019 we will be continuing to work on such things as generating more insight into our grids through data and digitisation. This is to ensure we make headway towards our ultimate goal: a sustainable, reliable and affordable energy system.

Shareholders

Rotterdam 31.69%

The Hague 16.55%

Dordrecht 9.05%

Leidschendam-Voorburg 3.44%

Lansingerland 3.38%

Delft 2.44%

Zoetermeer 2.34%

Nissewaard 2.14%

Pijnacker-Nootdorp 2.10%

Other municipalities 26.87%

Connections

Number of connections electricity:

22,692 high-use /
2,263,009 low-use

Number of connections natural gas:

10,761 high-use /
2,104,174 low-use

Work area

Gas Stedin

Electricity and gas Stedin

Electricity and gas Enduris

Employees

Male

Female

The world

of entrepreneur

Danier van der Spek

The world

of students at senior

secondary vocational

school mboRijnland

The world

of Richard and

Ada Hensen

The world

of the energy collective

Buurtstroom

Materiality matrix

What topics are directly related to our strategy, what are we proactively aiming for and to which risks and opportunities are we linking this? And finally, how important is each topic in the eyes of our stakeholders?

1. Economic, financial performance

2. Investing in infrastructure

3. Organisation's capacity for change


4. Smart grids, data technology and innovation

5. Reliability of energy supply, availability of grid

6. Heat transition (discontinue use of Groningen natural gas)


7. Supply security

8. Data security, privacy and cybersecurity

9. Customer satisfaction


10. Stakeholder dialogue and environment

11. Stedin Group's reputation


12. Sufficient technical staff, IT staff, …

13. Training and development
14. Safety at work and in the environment


15. Contributing to the energy transition

16. Improving sustainability of purchasing activities

Strategy

If we are to be in a position to accomplish our mission, we need to focus on present and future grid management and excellent service provision.


Sustainable Development Goals

Stedin Group is doing its utmost to contribute to the United Nations' Sustainable Development Goals.
We are working on five goals, all of which we have an impact on as a grid manager.

Stedin Group annual calendar 2018

2018 was certainly an eventful year. This calendar gives a brief overview of all the interesting events and developments last year.

Preventing disconnections

Dozens of households in Rotterdam and Arnhem trialled a new pay-as-you-go energy service designed to prevent the high costs associated with disconnection. The service works in the same way as pay-as-you-go mobile phones: participants in the scheme buy ‘energy credit’ and can top up whenever they need to. Disconnection from the power grid can isolate families as well as costing the energy sector a lot of money.

JAN

Natural Gas-Free Newly-Built Homes Covenant

Grid manager Stedin and 31 municipalities in the province of Zuid-Holland have signed up to the Natural Gas-Free Newly-Built Homes Covenant. By signing this covenant, provinces, municipalities and the grid operator are joining forces to convince project developers and their clients to switch from natural gas to sustainable alternative power supplies in projects currently under construction.

MAR

Electric carrier bikes for smart meter fitters

From now on, the fitters of grid manager Stedin's smart energy meters will use electric carrier bikes to travel to customers in Utrecht city centre. By leaving the diesel-powered vans at home, Stedin is doing its bit to improve air quality in Utrecht. The scheme will also save time and money due to the scarcity and cost of parking spaces in the city centre.

APR

Fitter training for residence permit holders

Stedin has devised a scheme to train ten residence permit holders – asylum seekers who have been granted a residence permit in the Netherlands – to become fitters. This month, a group of ten started preliminary training and in September, they will enter the regular training programme for fitters.


Smart collaboration between Stedin and Vitens

Stedin and water company Vitens are intensifying their collaboration. The two firms have overlapping areas of operation in the province of Utrecht and as a result, they often find themselves working together on many jobs. An ongoing collaboration will enable more efficient and effective operations, for example, by preventing the same stretch of road from being dug up within a short space of time. Stedin and Vitens expect that this intensive cooperation will substantially boost customer satisfaction and productivity by coordinating work to replace gas and water mains, among other projects.

MAY

JULY

Position Paper on Flexibility

In the last few years, the quantity of decentrally generated sustainable energy has skyrocketed. The number of onshore and offshore solar and wind farms has increased and an ever-growing proportion of the demand for energy is being electrified, leading to greater demand for flexible energy than ever before. In order to clearly demonstrate its experience in this area, Stedin published a position paper on the issue of flexibility and called on the market to join Stedin's quest to boost energy flexibility.

AUG

Hydrogen gas in built-up areas

According to the report entitled ‘Toekomstbestendige gasdistributienetten’ (‘Future-Proof Gas Distribution Networks’) – conducted by Kiwa and commissioned by Netbeheer Nederland – ‘the existing gas distribution networks are suitable to transport biomethane or pure hydrogen and modern materials such as impact-resistant PVC, PE and cathodically protected steel are also suitable for use of these sustainable gases.’ In collaboration with the grid managers Alliander, Enexis Group and Stedin, these theoretical conclusions are being practically tested in a ‘regular’ gas network in The Green Village in Delft.

OCT

Subsidies for a gas-free future

The Minister of the Interior and Kingdom Relations has awarded a government grant to 27 municipalities in the Netherlands in order to make entire districts gas-free. Six of these districts –Overvecht (Utrecht), Bouwlust/Vrederust (The Hague), Palenstein (Zoetermeer), Sliedrecht-Oost (Sliedrecht), Garyp (Tytsjerksteradiel) and Pendrecht (Rotterdam) –are situated in Stedin's area of operation.

NOV

Testing of hydrogen heated homes

In the town of Rozenburg in Rotterdam, a trial is under way to heat homes using pure hydrogen. This trial – organised by Bekaert Heating, Remeha, DNV GL, the Municipality of Rotterdam, the housing foundation Ressort Wonen and grid operator Stedin – is unique as these homes are the first in the Netherlands to be heated by high-efficiency boilers powered by pure hydrogen. For this reason, the parties involved want to experience this new technology in practice together with the participating residents. According to the partners, the technology being trialled in this project can help to achieve the climate objectives. This is because unlike natural gas, the combustion of hydrogen does not release CO2.