Stedin Holding N.V. is a public limited liability company under Dutch law, with its registered office at Blaak 8, 3011 TA Rotterdam, the Netherlands, and is registered with the Chamber of Commerce under number 24306393.

The main activity of Stedin Holding and its subsidiaries (hereinafter referred to as Stedin Group) is to ensure a safe, reliable and affordable energy supply. Stedin Group’s grid manager, Stedin Netbeheer, achieves this on the one hand by building and managing the electricity and gas grids and preparing them for the future and on the other hand by facilitating the energy market. Stedin operates in the provinces of South Holland, Utrecht and Zeeland, as well as in parts of the Noordoost-Friesland and Kennemerland regions. Subsidiary DNWG Infra provides construction and maintenance of technical infrastructure in Zeeland (gas, electricity, water and communication). In addition, it maintains and manages the grids of Evides Waterbedrijf and industrial customers entrusted to it. Subsidiary NetVerder helps achieve the energy transition by developing, constructing and maintaining energy infrastructures for heat, steam and biogas. It also focuses on the independent transmission and distribution of other new energy sources or carriers. Utility Connect is a joint arrangement with Alliander with its own communication network to read smart meters and communicate with smart-grid applications.

Stedin Netbeheer operates alongside five other Dutch regional grid managers in a regulated market. Each regional grid manager is a monopolist within its own service area. Regulation means that the work performed by the grid manager is set out in law and that the rates are set by the Netherlands Authority for Consumers and Markets (ACM). The regulatory model encourages grid managers to perform as well as possible (in terms of efficiency and quality) by using a benchmark model.

For more information on the composition of Stedin Group, see 3 Operating segments and 36 Overview of capital interests.

Unless otherwise stated, all amounts in these financial statements are in millions of euros.

These financial statements were prepared by the Board of Management on 16 February 2024 and approved by the Supervisory Board of Stedin Group. The financial statements will be submitted to the General Meeting of Shareholders for adoption.

Adoption of financial statements for preceding financial year

The financial statements 2022 were adopted by the General Meeting of Shareholders on 26 May 2023.

The consolidated financial statements of Stedin Group have been prepared in conformity with IFRS as adopted by the European Union (EU) and the provisions of Part 9, Book 2 of the Dutch Civil Code.

New or amended IFRS standards and interpretations relating to the current financial year

The following new or amended IFRS standards have been adopted by the EU and are effective from the financial year 2023:

• IFRS 17 - ‘Insurance Contracts’

• Amendments to IAS 1 and IFRS Practice Statement 2 - ‘Disclosure of Accounting Policies’

• Amendments to IAS 8 - ‘Definition of Accounting Estimates’

• Amendments to IAS 12 - ‘Deferred Tax related to Assets and Liabilities arising from a Single Transaction’

• Amendments to IAS 12 - ‘International Tax Reform - Pillar Two Model Rules’

These new or amended IFRS standards have no material impact on Stedin Group’s financial statements.

New or amended IFRS standards and interpretations relating to subsequent financial years

The following new or amended IFRS standards have been published but are not yet effective for the financial year 2023:

• Amendments to IAS 1 - ‘Classification of Liabilities as Current or Non-current’

• Amendments to IAS 1 - ‘Non-current Liabilities with Covenants’

• Amendments to IAS 7 and IFRS 7 - ‘Supplier Finance Arrangements’

• Amendments to IFRS 16 - ‘Lease Liability in a Sale and Leaseback’

• Amendments to IAS 21 - ‘Lack of exchangeability’

These new or amended IFRS standards can only be applied if approved by the EU. They are not expected to have a material impact on Stedin Group’s financial statements.

Capital reinforcement by the Dutch State and review of dividend policy

On 8 December 2023, the Dutch State joined Stedin Group as a shareholder. The State acquired 11.9% of the ordinary shares for an amount of € 500 million. At the same time, Stedin Group’s dividend policy was reviewed and a number of changes were made in relation to governance. For more information, see 22 Group equity and 46 Profit appropriation.

Adjustment of method decisions

On 4 July 2023, the Trade and Industry Appeals Tribunal (CBb) ruled that the ACM had to adjust the method decisions for electricity and gas for the current regulation period (2022-2026) on a number of points. These method decisions are used for calculating the rates we are allowed to charge.

The ACM published the amended method decisions on 14 December 2023, in line with the CBb ruling. As a result, Stedin Group’s permitted revenue for the current regulation period is expected to increase by a significant amount. The ACM decided to allocate the additional revenue across the tariffs for future transmission services in the period 2024-2026. The amended method decisions have no impact on the financial data as at 31 December 2023.

Change in accounting policy for property, plant and equipment

In 2023, a change in accounting policy was made in respect of the valuation of regulated networks within property, plant and equipment. This change in accounting policy is explained in 2.2.10 Property, plant and equipment.