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ANNUAL REPORT 2019 3 Foreword Embracing New Realities

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ANNUAL REPORT 2019 3 Foreword Embracing New Realities 2019 Annual Report Embracing New Challenges “ The common thread I see through all Nord Pool’s activities is a determination to deliver benefit to our customers, regardless of their size or where they trade from.” Kari Ekelund Thørud CEO 2 NORD POOL 4 Foreword 7 New Year – New Owners 8 2019 Highlights 10 Key facts and figures 13 Expanding influence 14 Embracing Competition in the Nordic Region 16 Central to Our Success 20 Watching the Market 23 Directors’ and Financial reports ANNUAL REPORT 2019 3 Foreword Embracing New Realities Kari Ekelund Thørud CEO As I approach the end of my second year But there have been some inward-facing In 2019 that certainly seemed to continue. as Chief Executive at Nord Pool, I am developments too, as we have worked to The total volume of power traded through once again delighted to take the oppor- accommodate, understand and simplify Nord Pool stood at 494 TWh, with Nordic and tunity to speak directly to our expanding the new landscape of power trading in our Baltic day-ahead market trading standing at body of customers and stakeholders so-called ‘home’ territories, doing everything 381.5 TWh, UK day-ahead achieving 94 TWh, wherever they are placed within Europe’s we can to aid the smooth and effective and volume on our intra day markets setting thriving energy sector. implementation of the multi-NEMO arrange- a record of 15.8 TWh – nearly doubling the ments in the Nordic region. The common previous years’ figure. For Nord Pool the main theme of the past thread that I see through all our activities year has once again been that of ‘change’. during 2019, has been a continued determi- But for me perhaps our proudest achieve- Our expert team is continually faced with nation to deliver benefit to our customers, ment was in our newly launched central fresh developments and newly-emerging regardless of their size or where they trade and western Europe day-ahead market, challenges which they must work with – as from. which finally completed our offering for the they always do – to ensure our continued region and grew to almost 2.5 TWh of power delivery of the simple, efficient and secure You can discover more about these aspects traded by year end. The performance of power trading for which we are rightly known of our business as key members of our team our intraday markets was also remarkable, and trusted. expand on them later in this year’s Annual with all-time high results being recorded. Report. This included year-on-year intraday trading When I travel across Europe to consult with growth in Germany of more than 200%. customers and hear their concerns, I am A date with the data frequently struck by the fact that Nord Pool I am, at heart, a ‘commercial animal’ and I But if ‘change’ was the theme for our year must continue to expand and provide an see a highly customer-focused approach here at Nord Pool then this was truly innovative offering to the market. And that and mindset at work everywhere within reflected in July when the ever-more-prev- offering needs to be focused on our core Nord Pool. That is something that we can alent automated trading made its presence products and services, which allow the never let go of, given the fully competitive felt. It was then that, for the first time, more market to function efficiently and effectively, power exchange environment in which we than half (52%) of intraday volume traded to make our customers’ trading lives easier. are located today. through Nord Pool across all markets was by Application Programming Interface (API). After some ‘quieter’ years recently, in terms I find two important aspects of working of external visibility, 2019 was back to being life at Nord Pool continually pleasing. Though these important numbers may serve a year in which Nord Pool expanded what First among these is our people. We enjoy to illuminate our continued upward trajectory, we could offer to Europe. And with the such diversity in terms of age, gender, plain figures are, I think, deceptive to some advent of new majority owners in the shape expertise, culture and ethnicity among our extent. They say nothing of the complicated of Euronext, I would say we are now looking team. But there is also the firm commercial tasks being tackled across the year by forward to an even stronger European focus that we have here, perhaps best Nord Pool’s expert teams in a variety of areas presence. expressed by an unspoken sense of land- and in offices sited to be in close physical mark achievements in our figures barely proximity to our customers. being worth a raised eyebrow! 4 NORD POOL Kari Ekelund Thørud CEO That way we can be sure that we are Staying focused What never changes, I think, is the need to never out of earshot of their interests and Although a continued ‘habit’ of getting ensure that our customers – who are, after all, concerns. But what the numbers do show is records under our belt might be seen very the most important people in our business – that our business is moving forward proudly much as ‘business as usual’ for Nord Pool, can continue to depend on us to create and and as one, with our integrity maintained and it would be a mistake to assume that such bring to market the products, services and with our goal the pursuit of excellence. With achievements are somehow either unre- innovations they tell us they must have to that in mind it is pleasing that our figures for markable or unrecognised. With evidence of make their trading lives simpler. 2019 continued to provide the underpinning power market competition all around us, we for our robust and continued growth. must never permit complacency to establish Changing with the challenges itself within our operations. While the The end of the year at Nord Pool heralded a If there is one inescapable conclusion to absolute necessity to serve our customers fundamental change for us, as we announced draw from our numbers for the year, it is, remains, that would be unforgiveable. a new ownership structure – pan-European I believe, that, in power exchange terms, exchange group Euronext had agreed to we exist at the centre of increasingly real Our core customer focus, the individual purchase 66% of the share capital and voting competition. In that atmosphere it is vital and personalised attention that we are able rights of Nord Pool Holding AS. that we continue to achieve reliably strong to bring to all of our extremely valuable numbers in existing markets, while main- customer relationships, serves Nord Pool The agreement, a most welcome develop- taining positive momentum in new ones. well in two ways. For a start, it ensures that ment from our perspective, saw Euronext Doing so will surely create the solid ground our existing customers are comfortable enter into partnership with the previous on which to construct expansion not just and confident to continue to work with us. owners of Nord Pool, the Nordic and Baltic into new geographical locations, but in terms But it also creates an appealing prospect for Transmission System Operators (TSOs). of the products and services we can offer. new customers, attracting them to contact us about getting the most from Europe’s Nordic-based power market. ANNUAL REPORT 2019 5 There was a real sense of excitement among Our world, as a power exchange, is increas- the team at Nord Pool to have a strong ingly characterised by change and new European company like Euronext as our developments. Some might see that as a new majority owner. But of course, there cause for concern. At Nord Pool we prefer to are two-way benefits stemming from this embrace the challenge it presents, adapting new relationship. While we see Euronext what we do for the benefit of our customers, as a superb partner, playing to Nord Pool’s while remaining true to our core values – strengths, we know that we also have a role delivering transparency and integrity to the to play in the wider success of Euronext, benefit of all market participants. too. That will require us to contribute to the Euronext group’s broader ambitions towards On a personal note it is incumbent upon me diversification of revenue mix, while also to express my gratitude to all my colleagues helping to reinforce its commodity presence. at Nord Pool, to our existing owners and our new majority owners at Euronext, and – most With this news I am very confident to say importantly – to all of our customers, for their that we are undoubtedly moulding our on-going support as well as for their forth- business into one that is entirely fit for the right sharing of viewpoints and challenges. competitive future we face. Nord Pool has been an active power exchange for more I began with an examination of the encour- than a quarter of a century now, and we aging volumes of trade which continue to be know from our accumulated experience placed with us by our customers, no matter that a pioneering drive is an unnegotiable their size or geographical location. But necessity if we are to establish new means equally important to everyone at Nord Pool by which to achieve the best results for our are the honest views that our customers customers. provide. I can assure you that we listen, we act and we react because that feedback is Looking ahead invaluable in helping to shape everything 2019 was, I think, a year we spent playing a we do to deliver efficient, simple and secure central part not only in contributing to the power trading, where, when and how our greater good of the pan-European power customers tell us they need it.
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