A passion for A passion for Unofficial Translation dunes and water dunes and water Dunea Annual Report 2019 Report Annual Dunea Annual Report 2019 At a glance Unofficial Translation Profile As a company that supplies drinking water, Dunea is at the heart of the community. Over 1.3 million people in the western part of the Dutch province of Zuid-Holland (South Holland) rely on us for one of life’s most vital necessities: tasty, reliable drinking water. The provision of drinking water is an essential service. We are doing everything we can, in every way that we can, to ensure safe drinking water continues to remain available in the future. We also have a social task as a dune manager. Not only are the dunes crucial to the Supply area process of providing drinking water, they are also a vital recreational area for many residents in the busy Randstad area. And it’s not just people who enjoy the dunes: our dune area is an important nature reserve that is home to a wide range of animals and plants. We have been managing this beautiful natural area and protecting the Hillegom extraction of drinking water for over 145 years. Noordwijk Lisse Teylingen Katwijk Oegstgeest NOORD-HOLLAND Leiden Wassenaar • Noordwijk Berkheide Voorschoten Production location • Leiden Leidschendam- Alphen aan den Rijn Meijendel Voorburg (kern Benthuizen) • Wassenaar • Alphen aan de Rijn Den Haag Production location Zoetermeer Solleveld ZUID-HOLLAND UTRECHT • Den Haag • Zoetermeer Rijswijk Head Office Production location Pijnacker- • Gouda Nootdorp Zuidplas • Westland ••Delft Lansingerland Lansingerland Nesselande • Rotterdam • Bergambacht (Rotterdam) Pre-treatment GELDERLAND • Hellevoetsluis • Sliedrecht • Dordrecht • Brakel Intake point ZEELAND 2 Dunea Annual Report 2019 NOORD-BRABANT dunea jv2019 eng – 5e proef – 8/7/2020 Unofficial Translation Contents A passion At a glance 2 Profile 2 Highlights 4 Mission, vision and strategy for dunes 6 Value creation model 7 Materiality matrix 8 Key figures and water 9 Indicators 10 Foreword 11 Report of the Management Board 13 Business progress 2019 13 Financial developments 24 Outlook 27 Governance 29 • Corporate Governance 29 • Risk management 31 • Compliance and integrity 35 • Quality and process management 38 • General Meeting 39 • The Management Board and the Supervisory Board 40 Report of the Supervisory Board 42 Financial statements 2019 49 Other information 79 Glossary 81 dunea jv2019 eng – 5e proef – 8/7/2020 Unofficial Translation Highlights 2019 Vulnerable The Maas is very vulnerable to contamination, especially in periods of drought, and yet seven million people in the Netherlands and Belgium drink the water from this river. Dunea, together with RIWA Maas (Association of river water companies – Maas section), A multi-source programme has drawn public attention to this situation. Our message: international agreements in respect of the To reduce our dependence on the Maas and Lek rivers, for a number of years we division of the River Maas must be reached quickly, have been exploring different ways to produce drinking water. In 2019 our because too little water flowing through the Maas will shareholders approved the multi-source programme. Over the next five years it will put the quality of the water under pressure. become clear which combination of sources and water extraction methods ultimately has the most future. The Growing Value of Water Over the past two years, Dunea and the Rijnland District Water Control Board have explored what the water company of the future should look like. We shared our findings during the symposium ‘The Growing Value of Water’ that took place in June 2019. The movement that has arisen from this is now continuing under the name Value4Water, which we hope will result in additional parties from both within and Infiltration outwith our sector joining. Research has shown that 20 years of infiltration of pre-treated river water has had no negative effects on the wet dune valleys in Meijendel. In fact, some very special plant species have returned. While water extraction in our dune areas provides extra protection for biodiversity, nitrogen deposition poses an increasing threat. This topic was discussed intensively in 2019. 4 Dunea Annual Report 2019 dunea jv2019 eng – 5e proef – 8/7/2020 Unofficial Translation WAVE Dunea Warmte (Dunea Heat) The organisational change we started in 2016 was In 2019 our shareholders authorised the establishment completed during 2019, while the WAVE Werken aan of Dunea Warmte, through which we will play a role in Verbinding (working on connection) programme that the energy transition by extracting heat and cold from involved phased implementations of process-oriented drinking water or surface water as an alternative working will be completed in 2020. This has further source of heating or cooling. Not only does this fulfil a embedded the principle of efficient collaboration with social need, it also increases the value of our piping the client within the organisation. schemes and thereby enhances our strategic position. Dune Campus The aim of the education policy developed in 2019 is to increase support for and awareness of drinking water and nature. In the Dune Campus in Meijendel, which opened in 2019, children and their parents can work Digital security together on assignments and learn, in a playful The government considers drinking water provision to way, about the be a vital sector. The (digital) security of our systems, importance of water processes and people is, therefore, essential. In production and nature. addition to all the measures and actions in this area, in 2019 we started a security awareness campaign to make our employees even more aware of the risks related to physical and digital security. dunea jv2019 eng – 5e proef – 8/7/2020 Unofficial Translation Mission, vision and strategy Mission Strategy Value creation model Every day, our customers can rely on us to provide natural, In the longer term we want to remain a healthy and In 2018 we created our first value creation model, which high-quality drinking water, and tranquillity and space growing company that is at the heart of the community. highlights the relationship we have with our environment within the Randstad. We take care of dunes and water. This is why our strategic route Course 2020 focuses on four and how we create value for our stakeholders and society. key areas: The model indicates the capital sources we input to our • We are there for our customers: our service quality business model, the outputs we deliver, and the impact Vision and provision are outstanding; these have on our stakeholders and our surroundings. We believe water and dunes contribute towards a good life. • We are a world-class dune manager; Climate change, urbanisation, energy transition and In a changing world, we are working to future-proof • We fight to ensure the Lek and Maas rivers remain digitalisation are key trends that influence every ourselves. But we can only achieve this by cooperating reliable sources of drinking water; component of the value creation model. with others. Which is why we listen to those around us, • We are better prepared for the future by offering defend the interests of our customers, and work to customers a broader range of products and services. In 2020 we will revise our materiality analysis, based on continuously improve the services we offer. the updated strategy that will follow from the strategic route Course 2020. This could impact the value creation Core values model, which we will also review. Involved, reliable, invigorating and resilient. Involved Reliable Invigorating Resilient 6 Dunea Annual Report 2019 dunea jv2019 eng – 5e proef – 8/7/2020 Unofficial Translation Value creation model Trends Climate change Urbanisation Energy transition Digitalisation Input Business model Output Impact Dunea produces • Very satisfied customers, recreational users • An attractive living environment for Social • and local residents local communities • Long-term relationships safe and tasty drinking water • Partnerships with residents via • Stimulation of a healthy lifestyle and • with stakeholders and manages beautiful • volunteers’ programme social cohesion nature reserves Natural • An essential contribution towards • Biodiversity stable at a high level • A robust ecosystem in the dunes air purification, soil improvement, • 78.1 million m3 of drinking water produced • Water quantity and quality in climate regulation, nutrient recycling and • A reduction of CO emissions through • the Afgedamde Maas and Lek 2 food production • sustainable energy projects • Energy for production and distribution • Drinking water availability • A contribution towards energy transition Intellectual • Unique expertise with combining the • Future-proof solutions for water, nature • Anticipating future challenges • functionality of dunes and water and related social issues • Knowledge-sharing • Continuous knowledge development • and sharing Financial • A stable and transparent drinking water tariff • A stable income due to the exclusivity • (€ 0.98 per 1,000 litres) • Drinking water and nature are accessible to • of the activities in the supply area • Freely-accessible natural areas all our customers and guests in the dunes • Borrowing with favourable terms due to Our priorities • A healthy solvency for long-term investments • the public task 1 We are there for our customers: our service provision and quality are outstanding; People • An inspiring working environment • Around 500 employees, a large