Skellefteå Kraft Excerpt from Annual Report 2013 This is Skellefteå Kraft Aitik Sädva Rebnis Uljabuouda We strive to be Sweden's best energy com- the same time constantly strengthening thers development of the region. In other pany and regard ourselves as the champion the expertise of our employees. And, of words, safeguard the region's energy sup- of the energy industry. We are dependable course, by offering our customers attrac- ply, create good infrastructure within ener- Klippen Bergnäs Norrlanders who put the customer and the tive products and services at competitive gy, telecommunications and data commu- Hemavan Blaiken Jokkmokksliden Sikfors Slagnäs Grytfors customer's needs first. How? By investing prices. Our owner, Skellefteå Municipality, nication, and supply capital and business Storuman Storliden Jörn Byske in our own energy resources and our own also sets requirements for us. We should expertise to the region. Norrheden Malå Norsjö Kristineberg Boliden Kåge sustainable energy production, while at aim to generate profitable growth that fur- Rengård Hedensbyn Lycksele Båtfors Finnfors Skellefteå Rönnskär Röjnoret Granfors Bureå Krångfors Selsfors Burträsk Lövånger Ånäset Vindeln Robertsfors Our products and services Jakobstad Electricity. We produce and sell electricity to customers throughout Sweden. As a customer, you can – Alholmen choose between three tariffs: Fixed, Variable and Square Metres. In autumn 2013 we decided to completely abolish the expensive default rate. Sällsjö Electricity networks. Our electricity networks are in Skellefteå, Norsjö, Malå, Robertsfors and parts of Vindeln, Arvidsjaur, Piteå, and Lycksele. We take care of these to ensure electricity can be transported to you. The latest customer satisfaction survey shows that we have the most satisfied residential customers in the country and the second most satisfied corporate customers. Sundsvall District heating. Our district heating network is primarily in Skellefteå. This delivers water heated by renew- able and recovered fuel. Broadband. We construct and own Skekraft.net, a broadband network covering Skellefteå and the surrounding area. Taking area and population combined with the broadband speed on offer, Skellefteå Munici- pality has Sweden's foremost broadband network. Premises and property. We own, manage and lease premises in the Expolaris Center district in central Skellefteå. SEU, Energiunderhåll. Energiunderhåll delivers maintenance services to energy companies requiring support within wind power, hydropower and combined power and heating, as well as major energy users within the industry. Wind power Nuclear power Forsmark Hydropower Peat Thermal pover Local district heating Electicity, Sales office 2 thermal power Stockholm Aitik Sädva Rebnis Uljabuouda Klippen Bergnäs Hemavan Blaiken Jokkmokksliden Sikfors Slagnäs Grytfors Storuman Storliden Jörn Byske Norrheden Malå Norsjö Kristineberg Boliden Kåge Rengård Hedensbyn Lycksele Båtfors Finnfors Skellefteå Rönnskär Röjnoret Granfors Bureå Krångfors Selsfors Burträsk Lövånger Ånäset Vindeln Robertsfors Jakobstad – Alholmen Sällsjö Sundsvall Where our power is generated These are Skellefteå Kraft's production facilities and sales offices, from Stockholm in the south to Aitik in the north, and from Jakob- stad in the east to Klippen in the west. Wind power Nuclear power Forsmark Hydropower Peat Thermal pover Local district heating Electicity, Sales office 3 thermal power Stockholm Skellefteå Kraft 2013 - in brief General 637 300 people full-time employees in 2013 or just over work principally from our office was the year Skellefteå Kraft was founded. building in central Skellefteå, while others work at various units in Västerbotten, Norrbotten and at our sales office in Sundsvall. Finance TURNOVER PROFIT AFTER NET OPERATING MARGIN FINANCIAL INCOME SEK MILLION 5,500 SEK MILLION 5,000 800 4,500 700 % 4,000 18 600 3,500 16 500 14 3,000 12 SEK 215 2,500 400 10 2,000 300 8 million 1,500 200 6 was the dividend to owner Skellefteå 1,000 4 Municipality in 2013. This corresponds 100 500 2 to 4% of the equity. 0 0 0 2012 2013 2012 2013 2012 2013 4 Social Environment 48 people have been recruited during the past year. 81% Proportion of electricity from 1.9% renewable production. Our absence due to illness rate in 2013. The target was 2.5%. 83% 80% Our attendance rate among Proportion of heating from Skellefteå Kraft's employees in renewable production. 2013. The target was 85%. Customers Number 1 in the country Skellefteå Kraft provides the best customer service in the energy industry. This accolade is based on a survey of over 2,000 Swedish consumers regarding the service provided by various companies and which companies they regard as having exceeded expectations in terms of service. 5 Our responsibility to customers Our customers should never feel guilty As a customer of ours you need never feel trict heating and electricity supply corpo- guilty about enjoying a long shower or rate), except electricity supply residential, having your home a little warmer. You can where we are in 10th place. always rely on our products maintaining In 2013, for the second successive year, a high level of quality and being sustain- we won the award for the energy sector's ably produced. This outlook applies to all best customer service. This was awarded our customers, regardless of whether we by ServiceScore in conjunction with the are talking about electricity, broadband or Swedish Marketing Federation (Sver- district heating. We also want to challenge iges Marknadsförbund). This accolade is the energy sector in terms of communica- based on a survey of over 2,000 Swedish tion, by being clearer, more straightfor- consumers. ward, more helpful and more accessible than our competitors. OUR OBJECTIVES, CUSTOMERS Increased national awareness. We work HOW TO BE THE BEST IN THE INDUSTRY to ensure that more potential customers We are driven by the concept of giving the around the country are aware of us, which customer a better, i.e. clearer and more lays the foundation for an expanded cus- straightforward, alternative. Our overall tomer base in the long term. We are on the objective is to have the most satisfied cus- right track, and with our campaign "Inte tomers in the industry and thus move to- en eljätte" (Not an electricity giant) we are wards our vision of being the best energy positioning ourselves as the clear alterna- company in the industry. tive to the electricity giants. We aim to be innovators in a traditionally dissatisfied OUR RESPONSIBILITY TO CUSTOMERS sector. quently, we are focusing on customer in- IN FIGURES sight through customer surveys and focus The Swedish quality index measures cus- Increased customer satisfaction. Satisfied groups, among other things. tomer satisfaction, and their surveys show customers and long-standing customer that we are number one or two in the en- relationships are important success fac- Improved customer experience. Our ergy sector in all business areas (electricity tors for us. In the annual measurements customer service team has 16 employees networks residential and corporate, dis- of customer satisfaction conducted by the ready to deal with customer enquiries. Swedish quality index This is our outward face, and in a normal we have remained at year they receive over 90,000 calls. Since Customer Safisfaction Index, a constant level, well autumn 2013, customers can also contact above the industry in- residential customers 2013 our customer service via Facebook. This dex, in recent years, team is one of the keys to ensuring an even but we want more and better customer experience, but there are Electricity supply 72,2 are striving for a cus- more ways we can improve our clarity; by Industry average tomer satisfaction val- adapting the tone of all our texts, for ex- Electricity networks 77,7 ue of 75 for the group. ample. Industry average In order to achieve this, we need to know Reduced customer administration costs. District heating 77,4 how our customers We are streamlining our routines and pro- Industry average behave and what they cesses to ensure that contact with our cus- 0 20 40 60 80 100 think and need. Conse- tomers is fair, straightforward and clear. 6 Our financial responsibility We work towards long-term growth Our owner, Skellefteå Municipality, sets ing our investments accordingly. This threaten our business. The objective is to requirements for us. We must aim to means that we are focusing heavily on our get more out of the operations we want to achieve a return on equity of at least 10 own production and primarily on renew- continue with and to divest the segments per cent. We are working towards long- able energy sources, such as wind and hy- that do not fit our profile, considering our term stable economic value growth, with dropower. We are also reviewing our fo- financial sustainability. We must also dare the aim of burdening neither nature nor cus on other production sources, with the to be entrepreneurs, i.e. have the courage human resources. intention of phasing out any that are not to focus on business development within profitable or sustainable in the long term. our core activity. HOW TO BE THE BEST IN THE INDUSTRY We are aiming to ensure stable economic By investing wisely in sustainable and own growth and at the same time working to- We aim to give back to our owner, Skel- production we safeguard profitability and wards refining our production and making lefteå Municipality. Every year we give 4 growth. it 100% sustainable in the long term. per cent of the equity to the municipal- Taking financial responsibility means ity as a dividend. The more we grow, the that the group's profits benefit local resi- We want to achieve an operating profit bigger the dividend, which leads to better dents in Skellefteå. We give back 4 per cent of SEK 1 billion. We will do this through prospects for us as local citizens. In order of the equity every year to our owner, the shrewd investments and by being better at to continue with this we need to grow and municipality.