Annual Report 2018 – Summary 1 Please Note That

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Annual Report 2018 – Summary 1 Please Note That Please note that this Annual Report is a translation of the Dutch Annual Report. As such, in case of any misunderstanding, the Dutch Annual Report prevails this report. Evides Waterbedrijf – Annual report 2018 – Summary 1 Contents Annual Report Letter from the Executive Board .......................................................................................................... 3 Introduction to Evides ......................................................................................................................... 5 Supply area .......................................................................................................................................... 5 Key figures ........................................................................................................................................... 6 Our work in 2018 ............................................................................................................................... 7 Importance of the source in a changing climate ................................................................................. 7 Circular thinking with industrial partners............................................................................................ 9 More convenience for customers ..................................................................................................... 10 Smart data use................................................................................................................................... 11 Working in a versatile company ........................................................................................................ 13 Sustainability in the local area .......................................................................................................... 14 Our organisation and strategy .......................................................................................................... 16 Financial results ............................................................................................................................... 30 Outlook 2019 ................................................................................................................................... 35 About the Supervisory Board ............................................................................................................. 38 Annual Account 2018 Consolidated balance sheet as at 31 December 2018 ........................................................................ 44 Consolidated profit and loss account for 2018 .................................................................................. 45 Consolidated cash flow statement for 2018 ...................................................................................... 46 General explanatory information and accounting policies .................................................................. 47 Notes to the consolidated balance sheet ........................................................................................... 55 Notes to the consolidated income statement ..................................................................................... 66 Company balance sheet as at 31 December 2018 ............................................................................. 72 Company income statement for 2018 ............................................................................................... 73 Notes to the company balance sheet ................................................................................................. 74 Notes to the company income statement .......................................................................................... 80 Evides Waterbedrijf – Annual report 2018 – Summary 2 Letter from the Executive Board 2018 was a very dry year. River water runoff was historically low and groundwater levels fell even further than in previous summers. The effects of climate change are becoming increasingly visible and the impact of the dry summer again underlines how important water management and our freshwater supply are. The media talked a lot about the availability of drinking water and the related treatment process. Evides took a proactive approach to this and appeared regularly in the news. We had enough water for all our customers during the summer period, but we did ask them to be frugal with their water use. It is partly thanks to the large resources in the Biesbosch that we had ample reserves for the drinking water supply of the southwest Netherlands. These reserves are very important, which is why we started preparing for the construction of a new water intake station along the Bergsche Maas a few years ago. This station will increase our intake capacity and as such our security of supply. All the permits required to build this station were awarded in 2018 and construction will start in 2019. In 2018, we also started improving the morphology of the Gijster resource, thereby increasing our net water reserves. The agricultural water pipeline used, which stretches from resources in the Biesbosch to the Midden- Zeeland area, was at full capacity delivering water during the dry summer months. The commissioning of the Oranjezon pumping station in June ensured that, despite the large peak in water use during the tourist season, we could maintain good water pressure in Walcheren,. Working together with partners is important to be able to safeguard the production and delivery of sustainable drinking water. In light of the Haringvliet Sluices Management Decision (Kierbesluit), we have been working closely with the Directorate-General for Public Works and Water Management (Rijkswaterstaat) and the Hollandse Delta Water Board to protect the Haringvliet as a source of drinking water and water for agricultural use. We are working together with environmental organisations on developing the nature on the Brabantse Wal and in Sint Jansteen, Ouddorp, Haamstede and Oranjezon. We continue to partner with the municipality of Rotterdam and electrical network operator Stedin on maintenance work, such as replacing underground pipelines. As part of various water supply chain partnerships, we put effort in to maintaining the quality of the river Meuse and other surface water. Together we can increase effectiveness and reduce vulnerability. Through its Water Without Waste approach, Evides Industriewater plays an active role in reducing the water and CO2 footprint. Together with our customers, we are looking for opportunities to reuse water in industrial production processes where possible. To continue researching water reusage, the RINEW project will now continue under the international NEREUS partnership. NEREUS is a pilot plant for recovering valuable raw materials and energy from waste water. We are also looking at our own operations in terms of climate change. Evides aims to be climate- and energy-neutral by 2025 and we want to achieve this through activities such as creating solar farms at our sites and water surfaces. We took a first step towards this in 2018, by opening a solar farm at our Braakman production site. We also have a focus on our customer services. For instance, we are further developing online customer services, ensuring availability in a secure environment that protects data and ensures privacy. In 2018, our work delivered a result of EUR 22.7 million for our drinking water business. Our industrial water business, meanwhile, delivered the intended controlled growth and generated a result of EUR 19.7 million in 2018. Evides Waterbedrijf – Annual report 2018 – Summary 3 These solid results were only possible because of the hard work and commitment of our staff. Thanks to their efforts and collaboration with our stakeholders, we are in an excellent starting position to achieve good results in 2019 again. Annette Ottolini Chief Executive Officer Evides Waterbedrijf Evides Waterbedrijf – Annual report 2018 – Summary 4 Introduction to Evides Evides is a sustainable and innovative water company, closely connected to the environment in which it operates. Together with 732.9 employees (converted to FTE), we ensure that our customers can depend on us for a reliable supply of drinking and industrial water, and waste water treatment, now and in the future. We provide reliable, tasty, and healthy drinking water, 24 hours a day, 365 days a year, to 2.5 million consumers and businesses in three Dutch provinces: Zeeland, the south-western part of South Holland and the south-western part of North Brabant. Evides Industriewater also provides products and services to large industrial companies in the Netherlands, Belgium and Germany. The quality of the industrial water is customised to the specific requirements and preferences of each customer. In addition, Evides is active in treating waste water including the reusage of treated waste water for industrial purposes. Evides is focused on continuously improving processes and techniques for sourcing, treating, distributing and – wherever possible – reusing water. We also constantly look at the opportunities to reuse products that can be recovered from waste water treatment, such as nutrients, energy, residuals, and water. In this way, we want to contribute to the best use of the water supply chain in the Netherlands and beyond. In 2018, Evides provided a total of 158.8 million cubic metres of drinking water and 95.1 million cubic metres of industrial water through our 14,811 kilometres pipeline network. In addition, we processed 1,491,000 million pollution equivalents
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