ANNUAL REPORT 2012 MAIN FIGURES RESULTS Mill. NOK % 2 800 35 2 400 30 2 000 25 1 600 20 1 200 15 800 10 400 5 0 0 2012 2011 2010 2012 2011 2010 EBITDA Operating revenues Profi t for the year Operating margin Return on equity Return on capital employees Def. 2012 2011 2010 INCOME STATEMENT Operating revenues NOK millions 8 946 10 684 9 345 EBITDA 1 NOK millions 2 317 2 908 2 047 Adjusted EBITDA 2 NOK millions 1 991 1 924 2 401 Operating profi t NOK millions 1 852 2 470 1 634 Profi t before tax NOK millions 1 615 2 163 1 380 Profi t for the year NOK millions 1 069 1 161 751 CASH FLOW Net cash provided by operating activities 3 NOK millions 970 2 097 226 Purchase of property, plant, equipment and intangible assets NOK millions 956 728 758 Deprecation and impairment losses NOK millions 476 449 536 Dividends paid NOK millions 653 902 900 STATEMENT OF FINANCIAL POSITION Total assets NOK millions 15 654 15 058 16 725 Equity NOK millions 4 090 3 296 3 379 Capital employed 4 NOK millions 11 312 10 324 11 000 Unrestricted liquidity 5 NOK millions 1 257 1 460 1 339 Interest-bearing liabilities NOK millions 7 222 7 028 7 621 Net interest-bearing liabilities 6 NOK millions 7 155 6 976 7 578 KEY FIGURES EBITDA margin 7 % 25,9 27,2 21,9 Operating margin 8 % 20,7 23,1 17,5 Return on equity 9 % 28,9 34,2 20,8 Return on capital employed 10 % 17,8 23,3 16,1 Return on total assets 11 % 12,5 15,7 10,6 Equity ratio 12 % 26,1 21,9 20,9 Net interest-bearing liabilities/EBITDA 3,1 2,4 3,7 Net interest-bearing liabilities/adjusted EBITDA 13 3,6 3,6 3,2 Number of permanent and temporary staff at 31 Dec. 1 529 1 579 1 692 Number of permanent and temporary full-time equivalents at 31 Dec. 1 495 1 536 1 647 AGDER ENERGI ANNUAL REPORT 2012 2 BALANCE 2012 2011 2010 Equity 4 090 3 296 3 379 Interest-bearing liabilities 7 222 7 028 7 624 Capital employed 11 312 10 324 11 000 Total assets 15 654 15 058 16 725 Def. 2012 2011 2010 KEY FIGURES, HSE Sickness absence % 3,9 4,7 4,5 Lost time injury frequency (H1) 6,8 7,9 5,1 Total injury frequency (H2) 13,9 16,2 16,2 KEY FIGURES, UPSTREAM ACTIVITIES Hydropower generation, actual 14 TWh 8,1 6,6 6,6 Hydropower generation, annual mean 14 TWh 7,7 7,7 7,7 Reservoir reserves at 31 Dec. TWh 4,5 4,5 2,0 Average spot price øre/kWh 21,8 36,0 40,7 District heating production GWh 124 111 120 KEY FIGURES, DOWNSTREAM ACTIVITIES Number of retail customers 15 1 000 149 152 153 Number of transmission and distribution customers 1 000 183 178 176 Power grid capital (NVE-capital) 16 NOK millions 3 297 3 139 2 986 DEFINITIONS 1. Operating profi t/loss before deprecation and 10. (Profi t before tax + interest expenses)/ impairment losses average capital employed 2. Adjusted EBITDA is corrected for unrealised gains and losses 11. (Profi t before tax + interest expenses)/ on energy contracts average total assets 3. Net cash fl ow from operating activities 12. Equity/total assets 4. Equity + interest-bearing liabilities 13. EBITDA is adjusted for unrealised gains and losses 5. Investment portfolio, excess liquidity and unused credit on electricity contracts facilities. Excludes restricted bank accounts 14. All power generation fi gures are quoted prior 6. Interest-bearing liabilities - unrestricted liquidity to pump-back and losses 7. EBITDA/Operating revenues 15. Retail customers 8. Operating profi t/Operating revenues 16. Basis for calculating the income cap. Set by the 9. Profi t for the year/Average equity Norwegian Water Resources and Energy Directorate (NVE) AGDER ENERGI ANNUAL REPORT 2012 3 GROUP STRUCTURE CEO Tom Nysted HR AND FINANCE AND RISK MANAGEMENT SHARED SERVICES Pernille K. Gulowsen Frank Håland CSR AND CORPORATE DEVELOPMENT Unni Farestveit HYDROELECTRIC POWER ENERGY MANAGEMENT MARKET NETWORK Jan T. Tønnessen Edvard Lauen Hans Jakob Epland Svein Are Folgerø OTERA AS AE VANNKRAFT AS AE KRAFTFORVALTNING AS AE NETT AS Jan T. Tønnessen Edvard Lauen Svein Are Folgerø LOS AS Administrative and shared services AE VARME AS Business areas Subsidiaries GROUP MANAGEMENT Tom Nysted Unni Farestveit Pernille Kring Gulowsen Frank Håland Jan Tønnessen Edvard Lauen Svein Are Folgerø Hans Jakob Epland AGDER ENERGI ANNUAL REPORT 2012 4 WHERE WE OPERATE Power station Premises/offices District heating/cooling Bergen Wind farm Oslo Stockholm Gøteborg Malmø Holen Brussel Valle Finndøla Brokke Rysstad Zürich Hekni Nisserdam Tjønnefoss Hovatn Dynjanfoss Høgefoss Berlifoss Jørundland Logna Kuli Longerak Tonstad RISØR Osen Smeland Finså Holt Evje Skjerka Uleberg Hanefoss Evenstad Håverstad Stoa ARENDAL Rygene Kvinesdal Iveland Fjære Nomeland Trøngsla GRIMSTAD Steinsfoss FLEKKEFJORD Høylandsfoss Hunsfoss Færåsen Laudal LILLESAND Tryland LYNGDAL Kvavik KRISTIANSAND FARSUND Fjeldskår MANDAL Lindesnes AGDER ENERGI ANNUAL REPORT 2012 5 OUR BUSINESS Agder Energi has four business areas, It operates through the company Agder the district heating supplier Agder Energi which reflect the Group’s core activities Energi Vannkraft AS. Varme AS. and how it generates added value: Hydro- electric Power, Energy Management, Energy Management • Otera AS is one of Norway’s largest Network and Market. This business area is responsible for electrical infrastructure contractors. maximising profit from the sale of elec- The parent company provides all admin- tricity. • LOS AS is Norway’s biggest supplier of istrative and shared services, which are electricity to businesses, and the split into three departments: finance and It operates through the company Agder country’s third biggest electricity risk management; HR and shared servi- Energi Kraftforvaltning AS. supplier overall. ces; and society and corporate develop- ment. Network • Agder Energi Varme AS supplies district This business area is responsible for de- heating and cooling in the Agder region. The business areas and administrative veloping, operating and maintaining the departments at the parent company are transmission and distribution grid in Goals and results led by directors. They and the CEO con- Aust-Agder and Vest-Agder. The goals and results of the business stitute the senior management team. areas are discussed in the Directors’ It operates through the company Agder Report and in Note 1 (Segment Informa- Hydroelectric Power Energi Nett AS. tion) to the consolidated financial state- The Hydroelectric Power business area is ments for the Agder Energi Group. responsible for developing, operating Market and maintaining the Group’s wholly- This business area comprises three sub- owned and part-owned hydroelectric sidiaries: the electrical contractor Otera power stations. AS, the electricity supplier LOS AS, and AGDER ENERGI ANNUAL REPORT 2012 6 BRIEF INTRODUCTION TO AGDER ENERGI Agder Energi manages natural, renewa- Agder Energi is a major centre of exper- Agder Energi Nett owns and operates the ble energy sources and converts them tise and an important employer. The transmission and distribution networks in into electricity. The Group’s activities Group has 1 580 employees, mainly Vest-Agder and Aust-Agder, which com- comprise the generation, distribution and based in the counties of Aust-Agder and prise 19 600 km of power lines. The com- sale of renewable energy, as well as pro- Vest-Agder in southern Norway, but also pany has 183 000 transmission and dis- viding energy-related services. in eastern and western Norway, as well tribution customers. as in Sweden. The Group’s head office is Water and wind are perpetual natural in Kristiansand. The company LOS is Norway’s biggest resources, and it is by harnessing them supplier of electricity to businesses, and that Agder Energi can add value for its Measured in hydroelectric power gene- the country’s third biggest electricity shareholders, employees and wider ration, Agder Energi is Norway’s fourth- supplier overall. society. Agder Energi has a significant largest energy supplier. Each year, the With its 750 employees, Otera is one of impact on the wider economy of south- Group’s 47 wholly-owned and part- Norway’s largest electrical infrastructure ern Norway, both by purchasing local owned power stations produce around contractors. The company also operates goods and services and through the divi- 7.8 TWh of renewable energy. The Group in Sweden. dends and taxes that we pay to the also has significant ownership interests shareholder municipalities. Agder Energi in the wind industry, through the compa- Agder Energi Varme operates district is owned by the 30 municipalities in the nies Statkraft Agder Energi Vind, Dalane heating plants in places such as Kristian- region (54.5%) and Statkraft Industrial Vind and Bjerkreim Vind. These compa- sand, Arendal and Grimstad. Holding AS (45.5%). nies are planning to build wind farms in various locations in Norway. VISION AND vaLUES Agder Energi’s vision is to be one of the leading companies in the Norwegian renewable energy sector. This involves taking a long- term view and thinking on an industrial scale. Moreover, it means that while the Group has regional and national roots, it also has an international perspective. The Group has defined its values as closeness, credibility, dynamism and innovation. • Agder Energi shall be close to its customers and the region. • Agder Energi shall gain credibility by keeping its promises, both to third parties and within the company. • Agder Energi shall be dynamic, with a conscious corporate strategy that helps it to implement projects and achieve its goals. • Agder Energi shall promote innovation and creativity, so that its employees become more skilled and efficient, enabling them to help to grow and develop the Group.