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Powering a world in progress

Elia Facts & Figures 2009


Key figures Consolidated IFRS results 2009

2008

2007

2006

2005

Operating income

771.3

757.3

731.7

711.5

714.2

EBITDA (1)

327.9

334.1

308.5

292.5

295.9

Net profit

84.0

103.1

77.6

75.9

76.5

Net profit per share

1.74

2.14

1.62

1.58

1.60

Dividend per share

1.38

1.37

1.30

1.28

1.27

Regulated asset base (RAB) (2)

3.766

3.764

3.583

3.443

3.443

Average RAB (2)

3.765

3.673

3.512

3.442

3.371

Number of employees (31/12)

1.205

1.231

1.249

1.227

1.221

Length of the grid in kilometres (31/12)

8.379

8.412

8.406

8.367

8.344

(in million â‚Ź, results per share in â‚Ź)

(1)

EBITDA = Operating income - cost of goods and services - personnel costs - provisions - write-downs (2) Calculated in accordance with Belgian accounting regulations (Belgian GAAP) 1


Financial ratios Ratios Pay-out ratio Return on equity Return on capital employed Net Debt / Equity Leverage (Debt / Debt + Equity)

(under IFRS) 2009

2008

2007

2006

2005

79.4%

63.9%

80.5%

80.8%

79.6%

6.2

7.6%

5.9%

5.9%

6.5%

12.0

6.5%

6.3%

6.0%

6.4%

179

175.8%

159.7% 62.1%

158.6% 162.2%

65.8%

63.7%

EBITDA / Gross Interest

2.5

3.1

3.0

61.9% 3.0

61.9% 3.1

Net Debt / EBITDA

7.5

7.1

7.1

7.1

7.0

EBITDA-margin

42.5%

44.1%

42.2%

41.1%

41.4%

EBIT-margin

29.3%

31.4%

29.3%

28.7%

29.7%

Net-profit margin

10.9%

13.6%

10.6%

10.7%

10.7%

4.9%

4.9%

4.7%

4.7%

4.7%

19%

21.2%

29.7%

28.2%

35.2%

Margins

Dividend yield on book value Tax rate 2


33


Profile Elia comprises two legal entities, Elia System Operator SA and Elia Asset SA, which operate as a single economic entity under the generic name Elia. Together with its subsidiary Elia Engineering, it employs around 1,200 people. Elia is Belgium’s electricity transmission system operator (TSO) and is licensed by the federal government to run the 150 to 380 kV network and by the regional governments to run the 30 to 70 kV grid. Elia performs its many duties as TSO in line with its core values: empathy, responsibility, entrepreneurship and integrity. Elia seeks to engage in open and transparent dialogue with its various stakeholders. This commitment applies to its customers, suppliers, shareholders, potential investors, authorities and the community at large, as well as to Group staff members. The company’s main responsibility is to ensure the reliable and safe transmission of electricity from 4

production units in Belgium and Europe to grid users, namely distribution system operators and large industrial consumers. Given the central position of the Belgian grid in the Western European electricity system and Belgium’s net import balance, Elia takes constant care to ensure safe management of international power flows (imports, exports and transits) on its grid. Elia also ensures a constant balance within its control area between production and imports on one hand and consumption and exports on the other. Since electrical energy is difficult to store, it must be generated according to demand. To successfully perform its tasks, Elia must maintain its various facilities, including lines, cables, transformers and dispatching centres. The company develops and upgrades its grid using the latest tried-and-tested technologies. This approach includes proactive measures to respect the environment and supports the prevailing sustain-


able development policies in Europe and Belgium, both federally and regionally. In 2010, Elia has taken significant steps to consolidate its position among Europe’s interconnected system operators, acquiring not only a 20% share in the APX-Endex power exchange, but also – in collaboration with its financial partner Industry Funds Management (IFM) – the German system operator 50Hertz Transmission. The moves reflect Elia’s strategy of putting first the companies and community of Belgium and promoting energy and climate policy by giving an increasingly larger platform to renewable energy. Elia adheres strictly to statutory rules on corporate governance as well as the provisions of the Belgian Corporate Governance Code for listed companies. Elia has been listed on the regulated market of Euronext Brussels since June 2005.

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Elia’s activities In its capacity as Belgian transmission system operator, Elia has three main, interdependent tasks Power grid operation Elia constantly monitors the balance between generation, import, exports and consumption in its control area. Since electrical energy is consumed as soon as it is generated, the quantities of electricity loaded onto the grid must be continually adjusted in real time to compensate for the quantities taken from the grid (i.e. consumed). The country’s security of supply depends on this.

Infrastructure management Elia maintains high-voltage installations: lines, cables, transformers and so on. Depending on market requirements and given the need for sound management of the electrical system, Elia operates and upgrades its grid using state-of-the-art technologies.

Market facilitation Elia holds a unique, central position on the national electricity market enabling it to serve as a market facilitator and implement services and mechanisms to ensure the correct operation and development of the market in continental Europe.

6


Other Activities Elia is also working actively - in Belgium and abroad – to optimise the company’s productivity and capitalise on in-house know-how. Elia pursues activities related to its core businesses in Belgium, such as upgrading infrastructure (high-voltage pylons, remote transmission) and providing maintenance and engineering services to third parties. The additional income earned from these activities is generated by the company’s efforts to boost efficiency. Internationally, Elia is actively engaged in work showcasing the company’s expertise, such as engineering and other consulting activities, as well as financial investments, including investments in Coreso (the regional technical coordination centre), APX and Belpex (energy exchanges), HGRT, CASC-CWE (an auction house for interconnection capacity), etc. To this end, Elia concluded an agreement with the regulator under which 60% of the proceeds from these activities go to the company while the remaining 40% is used to lower tariffs. On 19 May 2010, Elia acquired a 60% stake in German transmission system operator 50Hertz Transmission. The future financial results from this shareholding will go in full to Elia. 7


Management and supervisory bodies Board of directors (as at 19 May 2010) The Boards of Directors of Elia System Operator and Elia Asset each have 12 members. The same members sit on both Boards. These members do not have a management function within either Elia System Operator or Elia Asset. Half of the members are independent directors, appointed at the general meeting and having received the unanimous positive opinion of CREG with regard to their independence and their short terms in office until the general meeting of May 2011. A number of changes were made following Electrabel’s withdrawal as a shareholder of Elia. Accordingly, the Board of Directors has been composed of the following members since 11 May 2010:

Chairman Luc Van Nevel

Independent

Vice-chairmen Francis Vermeiren Thierry Willemarck

Publi-T Independent

Directors Jennifer Debatisse Publi-T Clement De Meersman Independent Johan De Roo Publi-T Jacques de Smet Independent Claude GrĂŠgoire Publi-T 8

Jean-Marie Laurent Josi Jane Murphy Dominique Offergeld Leen Van den Neste

Independent Independent Publi-T Arco


Management Committee • Chairman and Chief Executive Officer - Daniel Dobbeni • Vice-chairman and Chief Corporate Officer - Jacques Vandermeiren • Chief Officer Grid Services - Hubert Lemmens • Chief Financial Officer - Jan Gesquière • Chief Executive Officer Elia Engineering - Markus Berger • Chief Officer Transmission - Roel Goethals • Chief Officer Customers & Market - Frank Vandenberghe 9


Elia group sites Lochristi

Antwerp (Merksem) Schaarbeek

Lendelede Brussels

Genk (Stalen)

Diegem Liège (Bressoux)

Courcelles (Gouy) Namur

Villeroux Headquarters National Control Centre Regional Control Centre Elia Engineering 10

Service Centre


Group structure and shareholders Free float* 52,10%

Publi-T 45,37%

Publipart 2,53%

Elia System Operator

Elia Asset 99,99% Economic unit

CASC-CWE 14,28%

HGRT 24,5%

Coreso 33,33%

Belpex 60%

Eurogrid International *** 60 %

Elia Re** 100%

Elia Engineering** 100%

* Arco Group announced on 29 June 2010 that it holds a 8.79 % stake in Elia. ** Elia System Operator holds one share of Elia Re and one share of Elia Engineering. *** 50Hertz Transmission stake of 60% through holding company Eurogrid International terminated on 19 May 2010. IFM holds the remaining 40%. The total number of shares outstanding rose to 60,355,217 on 25 June 2010.

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Investments € million

Investments (IFRS)

200 180

180,3

160

161,2

140 120 100

142,5

141,4

2007

2006

121,5

80 60 40 20 0

2009

2008

2005

Following a sharp fall in volume from late 2008, investment was reduced from €157.1 million (2009 projection) to €121.51 million (actual amount). The money will be used primarily to upgrade high-voltage substations and install high-voltage cables. 12


13


Personnel Safety Elia Group frequency and severity rates 2005-2009

14

Frequency rate

2005 2006 2007 2008 2009

2005 2006 2007 2008 2009

Elia

10,1

8,0

2,7

5,1

2,8

0,11

Headquarter

1,4

2,6

0,0

2,7

0,0

0,0

0,05

Service Area North

8,7

14,6

2,8

5,8

5,8

0,08

0,26 0,02 0,12 0,02

Service Area South

30,9 17,5

11,3 14,2

8,7

0,31

0,53 0,15 0,35 0,71

Engineering

6,8

0,0

0,0

0,13

0,01

3,3

0,0

Severity rate 0,18 0,03 0,10 0,14 0,0

0,0

0,03

0,0

0,0

0,0


Composition of Elia Group staff, 31 December 2009 Management

Men

Women

Total

Full-time equivalents

7

0

7

7

Supervisory staff

290

66

356

345.9

Employees

698

144

842

779.28

Total

995

210

1205

1132.18

Elia System Operator

Elia Asset

Elia Engineering

Total

2009

264

785

151

1200

2008

233

812

186

1231

2007

228

827

194

1249

2006

215

833

179

1227

2005

209

833

179

1221

2004

178

886

174

1238

Changes in the number of Elia Group staff *

* These figures represent the average staff evolution over the year per company 15


Operations Energy balance - Belgium (All values in GWh)

Imports France: Luxembourg: Netherlands:

Exports 1,831.9 1,867.5 5,786.8

France: Luxembourg: Netherlands:

6,642.5 909.7 3,769.3

Net Exports: 1,835.3

Net Production

Consumption *

Generation: 76,605.2 Local generation: 7,214,0 Injections by DSOs: 266.2 Total: 84,085.5

Direct clients: Distribution: Total:

25,740.4 55,109.2 80,849.6

Energy losses: 1.400,6

* Consumption on the Elia-grid, including consumption based on local generation. 16


The consumption1 indicator for the Elia control area fell by 8% from 88.3 TWh (2) in 2008 to 81.8 TWh in 2009. This was mainly due to the recession, the effects of which could be felt from the last quarter of 2008. The monthly values recorded in 2009 were down year on year compared with 2008, up to and including September. The slight upturn in consumption in October did not continue in November, owing to the extremely mild weather conditions

(November 2009 was the warmest November since weather records began in Belgium). In December, however, the figures were up again compared with 2008 (4.2%), mainly due to the prolonged wintry spell. In 2009 as a whole, consumption was down by 14.2% for industrial customers connected directly to the Elia grid, and by 3.4% for industrial, business and residential customers and distribution system operators.

1 The Elia consumption indicator covers the majority of electricity consumption in Belgium. It includes all production connected to the Elia grid plus the net import-export balance. The share of consumption supplied directly by production units connected to the distribution grids is not included in the indicator.

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Evolution of consumption Monthly injected energy in Elia control area GWh/month 9.000

째C 25,00

8.000 20,00

7.000 6.000

15,00

5.000 4.000

10,00

3.000 2.000

5,00

1.000 0,00

0 Jan Feb March April Mai June July Aug Sept Oct Nov Dec

Energy 2008 18

Energy 2009

Av. temp. 2008

Av. temp. 2009


Imports and exports Monthly imports and exports in 2009

(physical border flows)

Imports

Exports

Jan Feb March April Mai June July Aug Sept Oct Nov Dec GWh -1500

-1000

-500

Exchanges with Luxembourg

0

500

Exchanges with France

1000

1500

2000

Exchanges with the Netherlands 19


Reliability of the Elia grid In 2009, security of supply remained at a very high level, exceeding that of the previous year, which was already excellent. • The average number of interruptions on the Elia grid per consumer (Average Interruption Frequency) was 0.09, equivalent to one interruption per customer every 11 years. • The average duration of interruptions was 17 minutes and 12 seconds. • Spread across all customers, the average duration of interruption was 1 minute and 34 seconds per customer (Average Interruption Time), equivalent to an average reliability of more than 99.999%. Belgium is definitely one of the best countries in Europe in terms of quality of electricity supply.

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Average Average Interruption Interruption Time Frequency

Average Interruption Duration

Reliability of the Elia grid

Number of the days in the year

2005*

03:01

0.096

31:27

99.9994%

365

2006

05:14

0.130

41:23

99.9990%

365

2007

03:32

0.090

39:07

99.9993%

365

2008

03:07

0.080

38:29

99.9994%

366

2009

01:34

0.091

17:12

99.999702%

365

* Power cuts on 25 and 26 November 2005 not included. These were caused by an exceptional concurrence of weather conditions. As internationally recommended, the statistics for the continuity of power supply include only interruptions lasting for longer than three minutes. Average Interruption Time indicates the average number of minutes of interruption time for all customers on the Elia grid. Average Interruption Frequency indicates the average number of annual interruptions per customer. A number of 0.09 indicates that each customer experiences an interruption every 11 years. Average Interruption Duration indicates the average duration of a customer interruption.

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Sustainable development Rational energy use As part of its public service obligations in Flanders, each year Elia implements an action plan aimed at encouraging the Rational Use of Energy (RUE) among its customers. In Flanders, Elia provides its customers with the resources required to make recurrent savings of 1.5% on their primary energy consumption for each MWh supplied, for facilities connected at between 36 kV and 70 kV.

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Elia reached its 2009 target – a saving of 27.2 GWh of electrical energy – by subsidising the energy-saving measures taken by its industrial customers. Results to the end of December 2009 already showed a saving of 38.6 GWh, well ahead of the initial target. Some 23 schemes have been introduced and 19 customers have made a commitment to invest in energy-saving schemes. In 2009, 30 schemes were introduced and 23 customers committed to investing in energy-saving schemes. Since 2003, thanks to Elia’s work with its industrial

customers, a combined total of 421.4 GWh had been saved by the end of December 2009 – equivalent to some 137,000 tons of CO2.

Green certificates Federal and regional legislators have developed market mechanisms aimed at encouraging investment in facilities for generating electricity from renewable energies. These include the ‘green certificates’ awarded to producers by the regulator, attesting to the green credentials of their electricity. Suppliers produce the certificates annually in proportion to their sales, with the proportion being set by law. As transmission system operator, Elia is required by law to purchase the certificates offered to it at a minimum price. Elia returns these certificates to the market via Belpex. The balance between the price at which Elia purchases the certificates and the price at which they are sold on Belpex is covered by a levy on the transmission tariffs.


Sales of green energy certificates Price and volumes of green certificates Number 1050

GC Flanders region

â‚Ź /Certificate 125,00

981

970

950 850 750

117,52

117,14

115,50

110,81

672

650

110,76

112,00

115,00 112

110,00

450

105,00

421 364

350

150

663

109,13

550

250

120,00

117,47

118,74

101,10

363

313

100,00

258 171

198

95,00

77

50

90,00 11-02-04 20-08-04 11-02-05 31-08-05 17-02-06 25-10-06 02-02-07 28-09-07 29-02-08 24-10-08 12-03-09 10-12-09

Sales Date

Price

Number

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High-voltage grids Length of the Elia grid as at 31 December 2009 Electrical connections Voltage (kV)

Underground

Overhead

Total

(km)

(km)

(km)

380

891

891

220

297

297

415

2.008

2.423

150

70

282

2.388

2.670

36

1.928

8

1.936

30

140

22

162

2.765

5.614

8.379

Total

Overhead connections: route length Underground connections: electrical length

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Antwerp 380 kV

Gent

220 kV

Brussels

Charleroi

150 kV

Liège

Grids at 70, 36 and 30kV are not reproduced on the map.


Boulevard de l’Empereur 20 B-1000 Brussels T + 32(0)2 546 70 11 F + 32(0)2 546 70 10

info@elia.be www.elia.be

Powering a world in progress

Designed and drafted by Elia, Communication Graphic design: Sa Bouge Editor: Jacques Vandermeiren – June 2010


/factsandfigures_eng_2009