Staying Integrated Annual Report TenneT 2013 Integrated Annual Report TenneT Connected Integrated Annual Report TenneT 2013 Grid availability 99.99% Revenue (EUR million) 2,243 Total assets (EUR million) 11,5 6 3 Energinet.dk (Denmark) NordLink (Norway) Kassø (Denmark) SylWin1 Ensted (Denmark) Kassø (Denmark) BorWin3 BorWin4 NorGer (Norway) BorWin2 NorNed (Norway) HelWin2 Baltic cable (Sweden) BorWin1 COBRAcable (Denmark) HelWin1 Audorf alpha ventus DolWin1 DolWin2 DolWin3 Siems Nordergründe 20,997 km Hamburg Nord Total circuit length Riffgat Netherlands and Germany Hamburg Nord (50Hertz) Energinet.dk (Denmark) NordLink (Norway) Kassø (Denmark) Conneforde SylWin1 Ensted (Denmark) Kassø (Denmark) BorWin3 Eemshaven BorWin4 NorGer (Norway) Sottrum BorWin2 Meeden NorNed (Norway) HelWin2 Baltic cable (Sweden) BorWin1 COBRAcable (Denmark) HelWin1 Audorf alpha ventus DolWin1 DolWin2 DolWin3 Siems Wehrendorf (Germany) EnsNordergründe Niederrhein MeppHamburgen Nord Wehrendorf Landesbergen Riffgat (Germany) (Germany) Hamburg Nord (50Hertz)(Germany) Lehrte Merzen (Germany) Wahle Conneforde Eemshaven Gronau (Germany) Wolmirstedt (Germany) Sottrum Meeden Ede Arnhem Bechterdissen Waddinxveen BritNed (Great-Britain) Wehrendorf (Germany) Ens Niederrhein Meppen Wehrendorf Wesel (LandesbergenGermany) (Germany) (Germany) (Germany) Würgassen Lehrte Merzen (Germany) Wahle Gronau (Germany) Nehden (GerWolmmanirstye)dt (Germany) Ede Arnhem Bechterdissen Waddinxveen Weert BritNed (Great-Britain) Wesel (Germany) Van Eyck (Belgium) Würgassen Zandvliet (Belgium) Rommerskirchen (Germany) Vieselbach (Germany) Nehden (Germany) Siersdorf (Germany) Eisenach (Germany) Weert Van Eyck (Belgium) Zandvliet (Belgium) Rommerskirchen (Germany) Dauersberg (GermVianeseylb)ach (Germany) Eisenach (Germany) Altenfeld Siersdorf (Germany) Limburg (Germany) Remptendorf (Germany) (Germany) Dauersberg (Germany) Altenfeld Limburg (Germany) Remptendorf (Germany) (Germany) Redwitz Mechlenreuth 380 kV connection/substation Großkrotzenburg Redwitz Mechlenreuth 380 kV connection/substation380 kV connection/substation project Großkrotzenburg Bayreuth 380 kV connection/substation380 kV interconnection project Urberach (GermBayreuthany) 380 kV interconnection Urberach (Germany) 380 kV interconnection in planning Aschaffenburg Bamberg 380 kV interconnection in planning Aschaffenburg Bamberg 220 kV connection/substation220 kV connection/substation Hradec (Czech Republic) 220 kV interconnection Hradec (Czech Republic) 220 kV interconnection Höpfingen (Germany) Prestice (Czech Republic) 150 kV connection/substation Höpfingen (Germany) Prestice (Czech Republic) Raitersaich 110 kV connection/substation150 kV connection/substation Kupferzell (Germany) Schwandorf Raitersaich 110 kV connection110 kV p rconnection/substationoject Kupferzell (Germany) Onshore DC connection in planning Schwandorf Subsea inte110rconnector kV connection project Subsea inteOnshorconnectorre DCin planning connection in planning Offshore connector Irsching Subsea interconnector Total number Offshore connector in planning Pleinting Offshore wind farm Subsea interconnector in planning of substations Meitingen (Germany) TenneT Head Office Offshore connector Irsching TenneT Office Oberbachern Power plantOffshore connector in planning Pleinting Dachau Meeden SubstationOffshore wind farm APG AustriMa (Aeuitstinriage) n (Germany) No rights canT beenneT derived f romHead this map. Office 1 February 2014 TenneT Office Oberbachern Power plant Dachau Meeden Substation APG Austria (Austria) No rights can be derived from this map. Sellrain Silz (Austria) 1 February 2014 440 III Sellrain Silz (Austria) Profile About TenneT Energinet.dk (Denmark) TenneT is a leading European electricity transmission system operator NordLink (Norway) Kassø (Denmark) SylWin1 Ensted (Denmark) Kassø (Denmark) BorWin3 (TSO) in the Netherlands and in a large part of Germany. In the BorWin4 NorGer (Norway) BorWin2 Netherlands, our activities are carried out by TenneT TSO B.V. and its NorNed (Norway) HelWin2 Baltic cable (Sweden) BorWin1 COBRAcable (Denmark) HelWin1 Audorf subsidiaries. In Germany, our work is performed by TenneT TSO GmbH, alpha ventus DolWin1 DolWin2 DolWin3 Siems TenneT Offshore GmbH and its subsidiaries. We ensure a reliable and Nordergründe Hamburg Nord Riffgat Hamburg Nord (50Hertz) uninterrupted supply of electricity for the 36 million end-users in the Conneforde markets we serve. We aim to meet our stakeholders’ needs by being Eemshaven Sottrum responsible, engaged and connected. Meeden With around 21,000 kilometres of high-voltage lines, TenneT mainly has regulated activities. These activities Wehrendorf (Germany) Ens Niederrhein Meppen Wehrendorf Landesbergen we cross borders and connect countries. TenneT ranks are governed by the provisions of relevant legislation (Germany) (Germany) (Germany) Lehrte Merzen (Germany) Wahle among Europe’s top 5 TSOs and works closely with in the Netherlands and Germany. Regulatory authorities Gronau (Germany) Wolmirstedt (Germany) governments, NGOs, trading partners and private oversee TenneT’s compliance with these provisions. Ede Arnhem investors all over the world. Our aim is to ensure that Bechterdissen Waddinxveen BritNed (Great-Britain) critical infrastructure is developed, realised and managed Besides the regulated activities, TenneT also has certain Wesel (Germany) Würgassen efficiently, now and in the future, onshore and offshore. unregulated activities. TenneT Holding B.V. is directly Nehden (Germany) We are keen to pursue the development of a North West responsible for these activities, which support the energy European electricity market. market, helping to ensure it is operated smoothly Weert Van Eyck (Belgium) and efficiently. TenneT holds a 50% interest in BritNed, Zandvliet (Belgium) Rommerskirchen (Germany) Vieselbach (Germany) Siersdorf (Germany) Eisenach (Germany) As a leading TSO, our main duties are to provide (1) a merchant cable operator that manages the electricity power transmission services, by constructing and interconnector between the Netherlands and Great Dauersberg (Germany) Altenfeld Limburg (Germany) Remptendorf (Germany) (Germany) maintaining a robust high-voltage grid, (2) system Britain. Also, TenneT owns shares in APX, a North West services, by maintaining the balance between supply European energy exchange, and manages part of the Redwitz Mechlenreuth 380 kV connection/substation Großkrotzenburg 380 kV connection/substation project and demand of electricity 24 hours a day, 7 days a week infrastructure required to send and receive broadcasting Bayreuth 380 kV interconnection Urberach (Germany) and (3) facilitating a smoothly functioning, liquid and and telecom signals (NOVEC/Relined). 380 kV interconnection in planning Aschaffenburg Bamberg 220 kV connection/substation stable electricity market. Hradec (Czech Republic) 220 kV interconnection Höpfingen (Germany) Prestice (Czech Republic) 150 kV connection/substation Raitersaich 110 kV connection/substation Kupferzell (Germany) Schwandorf 110 kV connection project Onshore DC connection in planning Subsea interconnector Subsea interconnector in planning Offshore connector Irsching Offshore connector in planning Pleinting Offshore wind farm Meitingen (Germany) TenneT Head Office TenneT Office Oberbachern Power plant Dachau Responsible Engaged Connected Meeden Substation APG Austria (Austria) No rights can be derived from this map. In the dynamic North West We are intrinsically driven by Meeting the current and future 1 February 2014 European electricity market, we offer the technical, operational and needs of society, businesses and society and businesses our full societal challenges of the energy consumers requires a concerted commitment to maintaining grid transformation and the pursuit effort of all stakeholders. Sellrain Silz (Austria) stability and enhancing the high- of a North West European We take initiative, are transparent voltage infrastructure, enabling electricity market. and connect internally as well the large scale use of renewables. as externally. IV Contents Profile 2 Grid map III Profile IV Scope 2 Key events 3 Key figures 4 6 Letter from the CEO Executive Board Report 11 Vision, mission and values 11 Strategy 12 Stakeholders 15 Materiality 21 Markets 24 Society 30 Environment 34 Employees 37 Innovation 44 Financial results 47 Outlook 53 Corporate Governance 54 Corporate Governance 54 Risk Management 57 Statements of the Executive Board 66 Report by the Supervisory Board 67 Remuneration report 72 Executive Board 78 Supervisory Board 80 Financial statements 83 Consolidated financial statements 84 Notes to the consolidated financial statements 90 Company financial statements 147 Notes to the company financial statements 149 Other Information 152 Combined independent auditor’s report and assurance report 153 Enclosures 156 CSR Reporting principles 157 GRI table 161 Legal structure 165 Organisation 166 Abbreviations, definitions & ratios 170 Integrated Annual Report TenneT 2013 1 Profile Scope The 2013 integrated annual report describes the key aspects of TenneT's operational, financial and social performance. This report combines information on Corporate Social Responsibility and the Financial Statements for the year 2013, both in the Netherlands and in Germany. Online reporting Transparency Benchmark When referring to the online annual report, please note TenneT participates in the Dutch Transparency Benchmark, that the full report is available only in English. Some of an annual survey by the Ministry