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Results<br />
<strong>2010</strong><br />
<strong>Related</strong><br />
<strong>to</strong> <strong>Zeeland</strong><br />
Networks Energy Waste management
colo<br />
phon<br />
‘DELTA<br />
up close’ is<br />
published by DELTA N.V.<br />
This report is distributed<br />
<strong>to</strong> cus<strong>to</strong>mers, relations<br />
and other stakeholders<br />
of DELTA.<br />
Edi<strong>to</strong>r/coordination:<br />
Luppo Huizenga<br />
Concept/realization:<br />
Brandhome,<br />
Antwerp, Belgium<br />
Pho<strong>to</strong>graphy:<br />
Ton Stanowicki<br />
Pho<strong>to</strong> colophon:<br />
H.W. Fluks<br />
Print: Moderna,<br />
Paal-Beringen, Belgium<br />
For futher information<br />
please contact<br />
DELTA Communications<br />
Department<br />
DELTA N.V.<br />
Communications<br />
Department<br />
Poelendaelesingel 10<br />
4335 JA Middelburg<br />
The Netherlands<br />
www.DELTA.nl<br />
2
1 4<br />
DELTA in <strong>2010</strong>:<br />
energy<br />
Profile and key figures<br />
DELTA in <strong>2010</strong>:<br />
waste management<br />
5<br />
con<br />
tents<br />
2<br />
6<br />
7<br />
Financial<br />
performance<br />
No profit, but results<br />
<strong>Related</strong><br />
<strong>to</strong> <strong>Zeeland</strong><br />
3<br />
DELTA in <strong>2010</strong><br />
In this report, DELTA gives stakeholders<br />
and other interested parties information<br />
on its performance in <strong>2010</strong>, explains<br />
significant developments and provides<br />
background information. The report is<br />
available as printed version as well as<br />
online (www.DELTA.nl).<br />
CSR report<br />
In late 2011, DELTA will publish a<br />
corporate social responsibility report,<br />
which will also discuss the company’s<br />
role in the community and provide more<br />
information on such aspects as DELTA’s<br />
environmental performance.<br />
DELTA in <strong>2010</strong>: networks<br />
3
Profile and<br />
Key figures<br />
DELTA is an independent company specialising in<br />
networks, energy and waste management.<br />
Most of the shares (96.55%) are held by municipal<br />
authorities in <strong>Zeeland</strong> and the Province of<br />
<strong>Zeeland</strong>. DELTA employs over 3,000 people.<br />
The company is active in the following areas.<br />
Networks<br />
DNWB is the network opera<strong>to</strong>r for <strong>Zeeland</strong> and performs<br />
its statu<strong>to</strong>ry tasks au<strong>to</strong>nomously within the DELTA<br />
organisation. DNWB is responsible for managing the gas<br />
and electricity distribution networks. These networks<br />
are constructed and maintained by DELTA Infra, which<br />
also constructs and maintains the Evides water networks<br />
and the DELTA cable network. DELTA Infra’s other areas<br />
of expertise include high-voltage applications and<br />
measurement technology.<br />
Energy<br />
In addition <strong>to</strong> electricity generation and energy trading,<br />
DELTA also supplies gas and electricity <strong>to</strong> private and<br />
business cus<strong>to</strong>mers. As well as energy, DELTA serves<br />
the consumer market in <strong>Zeeland</strong> as a provider of digital<br />
services (internet, telephony, TV and radio signals) and,<br />
via its interest in Evides, as a water supplier. Thanks <strong>to</strong> its<br />
multi-utility approach, DELTA has a large share of these<br />
markets in <strong>Zeeland</strong>.<br />
Waste management<br />
All the waste management operations have been brought<br />
<strong>to</strong>gether in the Indaver subsidiary, which is 75% owned<br />
by DELTA. Indaver works for the public sec<strong>to</strong>r (mainly in<br />
Belgium, the Netherlands and Ireland) and private sec<strong>to</strong>r<br />
(North-West Europe). In the Netherlands, the company<br />
uses the DELTA brand name in the public-sec<strong>to</strong>r market.<br />
Indaver processes over four million <strong>to</strong>nnes of waste a year,<br />
of which Belgium accounts for more than half. Most of the<br />
waste is processed at Indaver’s own facilities but some<br />
is processed at other plants. The company employs a<br />
variety of waste processing techniques including recycling,<br />
biomass production and waste-<strong>to</strong>-energy (energy<br />
produced from waste incineration).<br />
DELTA: BBB/positive outlook<br />
Standard and Poor’s determines DELTA’s credit<br />
rating each year. In 2009 DELTA’s rating was BBB,<br />
with a stable outlook. In <strong>2010</strong> the rating was again<br />
BBB, but with a positive outlook. If DELTA performs<br />
as expected, the rating will be upgraded.<br />
Fac<strong>to</strong>rs which the rating agency considered<br />
positive included the cancellation of the<br />
unbundling exercise, the lower debt and the better<br />
risk profile.<br />
4
DELTA upclose<br />
1<br />
Key figures <strong>2010</strong><br />
Turnover: 2.1 billion (+ 10%)<br />
Net result from the core activities: € 87 million<br />
Net result of discontinued operations: -/- 265 million<br />
Net result: -/- 178 million<br />
Solvency: 42.2%<br />
Total sales by category <strong>2010</strong><br />
22%<br />
3<br />
%<br />
3%<br />
5%<br />
52%<br />
15%<br />
Electricity<br />
Gas<br />
Electricity and gas transport<br />
Cable, internet and telecoms<br />
Waste management<br />
Other<br />
5
Apart from a number of exceptional<br />
charges, <strong>2010</strong> was a good year<br />
for DELTA’s normal operations.<br />
The energy and waste management<br />
businesses achieved good results<br />
despite the difficult market conditions.<br />
The network segment (management<br />
and maintenance of the electricity and<br />
gas networks in the <strong>Zeeland</strong> region)<br />
performed well.<br />
The write-down of EUR 260 million<br />
on our solar activities meant that we ended <strong>2010</strong><br />
with a substantial net loss of EUR 178 million.<br />
As explained in our 2009 report, the solar division had<br />
<strong>to</strong> demonstrate its viability in <strong>2010</strong> with an ambitious<br />
business plan. However, the market conditions for<br />
solar cells produced by our subsidiary Solland<br />
continued <strong>to</strong> deteriorate and it was decided in<br />
September <strong>2010</strong> <strong>to</strong> write down these activities.<br />
It was no longer justifiable for DELTA <strong>to</strong> continue<br />
alone with its activities in the solar segment<br />
and it was decided <strong>to</strong> reduce this interest.<br />
Whether it will be possible <strong>to</strong> sell the business<br />
should become clear by mid-2011.<br />
Electricity sales <strong>to</strong> business<br />
cus<strong>to</strong>mers were almost 28% higher at<br />
7.7 TWh. This growth can be attributed<br />
in part <strong>to</strong> the commissioning of the<br />
Sloe power station. The CO 2<br />
emitted<br />
by DELTA’s electricity generating<br />
operations was only 0.33 <strong>to</strong>nnes<br />
per MWh, compared with a national<br />
average for the Netherlands of<br />
0.40 <strong>to</strong>nnes per MWh. Total gas<br />
deliveries were also higher (+23%).<br />
Due <strong>to</strong> the lower energy prices,<br />
however, only part of this growth<br />
translated in<strong>to</strong> higher revenue.<br />
DELTA Milieu’s activities were<br />
transferred in <strong>2010</strong> <strong>to</strong> the Indaver<br />
subsidiary. Indaver has since been<br />
converted in<strong>to</strong> a country organisation<br />
focusing on North-West Europe, with<br />
bases in the Netherlands, Belgium,<br />
Germany, the United Kingdom<br />
6
DELTA upclose<br />
No profit,<br />
2<br />
but results<br />
and Ireland. Waste management<br />
performed well in <strong>2010</strong>, with<br />
processing volume up from 3.9 <strong>to</strong> 4.3<br />
million <strong>to</strong>nnes, due <strong>to</strong> higher waste<br />
volumes generated by existing clients<br />
and expansion of the client base.<br />
On 22 June <strong>2010</strong>, the Court of Appeal<br />
in The Hague ruled that DELTA was not<br />
required <strong>to</strong> unbundle its electricity<br />
and gas networks and that DELTA<br />
Netwerkbedrijf could continue <strong>to</strong><br />
perform its task independently<br />
within the group. The State of the<br />
Netherlands has lodged an appeal<br />
against this judgment.<br />
On 3 November, the French energy<br />
company EdF and DELTA jointly<br />
announced their intention <strong>to</strong> set up<br />
a development company <strong>to</strong> pave<br />
the way for a second nuclear power<br />
station at Borssele. The plan is <strong>to</strong><br />
transfer the work currently in progress<br />
on the new nuclear station <strong>to</strong> this<br />
company in 2011. Meanwhile, work<br />
on the environmental impact report<br />
is continuing and we expect <strong>to</strong> file<br />
the permit application for the new<br />
power plant in 2012. Full account<br />
will be taken of the lessons learned<br />
from the events in Japan in preparing<br />
this application.<br />
DELTA was able both <strong>to</strong> retain the<br />
confidence of existing cus<strong>to</strong>mers<br />
and gain new cus<strong>to</strong>mers in <strong>2010</strong>.<br />
The number of households in <strong>Zeeland</strong><br />
considering a switch <strong>to</strong> a different<br />
supplier is low at 1–2%, compared<br />
with 10% nationally. Surveys<br />
conducted by independent agencies<br />
also show that DELTA is highly<br />
regarded by its cus<strong>to</strong>mers.<br />
In the satisfaction survey published<br />
in Oc<strong>to</strong>ber by Vereniging Eigen<br />
Huis, the Dutch homeowners’<br />
association, DELTA’s average score<br />
was 7.6, placing it third in a field<br />
of thirteen suppliers. According<br />
<strong>to</strong> Consumentenbond, the Dutch<br />
consumer organisation, <strong>Zeeland</strong>Net’s<br />
cus<strong>to</strong>mers are the most satisfied with<br />
their supplier’s services, giving a <strong>to</strong>tal<br />
score of 7.8 averaged over the second<br />
half of the year.<br />
Two regular and three informal<br />
shareholders’ meetings were held<br />
in <strong>2010</strong>. The latter were held <strong>to</strong> inform<br />
the shareholders about strategically<br />
important developments (unbundling,<br />
investments, Evides, solar).<br />
Outlook<br />
We intend <strong>to</strong> dispose of the<br />
loss-making solar activities in 2011.<br />
Thanks in part <strong>to</strong> the efficiency<br />
improvements implemented last year,<br />
the company is now in a stronger<br />
position. Excluding gains and losses<br />
on the trading portfolio, DELTA’s<br />
earnings from ordinary operations<br />
in 2011 is expected <strong>to</strong> be close <strong>to</strong> the<br />
<strong>2010</strong> figure, despite structurally lower<br />
energy prices in 2011.<br />
Peter Boerma<br />
CEO<br />
7
DELTA Netwerkbedrijf and DELTA Infra<br />
DELTA Netwerkbedrijf (DNWB) is the regional electricity<br />
and gas network opera<strong>to</strong>r in the province of <strong>Zeeland</strong>.<br />
The company performs its statu<strong>to</strong>ry tasks independently.<br />
DNWB provides dependable and cost-efficient<br />
management of the gas and electricity networks and is<br />
also responsible for their construction and maintenance.<br />
Maintenance is handled by DELTA Infra.<br />
8
DELTA upclose<br />
DELTA in <strong>2010</strong><br />
3<br />
Networks<br />
DELTA Netwerkbedrijf<br />
‘DELTA has decided <strong>to</strong> halt all activities relating <strong>to</strong> the unbundling of network<br />
opera<strong>to</strong>r DNWB and DELTA NV with immediate effect.’ That was the statement<br />
issued after the ruling by the Court of Appeal in The Hague on 22 June that the<br />
‘group prohibition’ (a ban on network managers being part of the same group of<br />
companies as producers, traders and suppliers of electricity and gas) under the<br />
Independent Network Management Act (Wet Onafhankelijk Netbeheer) was contrary<br />
<strong>to</strong> European regulations. The group prohibition was accordingly abandoned and<br />
DELTA responded with ‘delight’, because ‘the judgment vindicates the position we<br />
have taken from the start: unbundling is a bad solution <strong>to</strong> a non-existent problem.’<br />
The judgment means that DNWB can remain part of DELTA and continue <strong>to</strong> perform<br />
its statu<strong>to</strong>ry tasks as a network opera<strong>to</strong>r independently within the group.<br />
To enable those tasks <strong>to</strong> be performed effectively, further progress was made<br />
in <strong>2010</strong> in implementing the unbundling plan approved at the end of 2009 by<br />
the then Minister of Economic Affairs Ms. Van der Hoeven. DNWB’s independence<br />
is strengthened by having its own offices in Goes, which were made ready in<br />
<strong>2010</strong> and <strong>to</strong> which DNWB relocated in early 2011. A new Executive Board was<br />
appointed for the network opera<strong>to</strong>r, consisting of Steven Quast (53, CEO)<br />
and Michel van Neutigem (49, COO).<br />
DELTA Infra: more efficient and more commercial<br />
DELTA Infra was able <strong>to</strong> add a whole list of new clients <strong>to</strong> its order book in <strong>2010</strong>.<br />
Stedin, TenneT and BAM Duurzaam are among the clients who will benefit from the<br />
services of the DELTA base in Goes. The contract with Stedin is especially significant<br />
because it makes DELTA Infra the first service provider in the Netherlands <strong>to</strong> work<br />
for another network opera<strong>to</strong>r outside its own region. Water company Evides,<br />
DELTA Infra’s most important client alongside DNWB, also signed a new service<br />
contract in <strong>2010</strong>.<br />
Erik Duim, General Manager of DELTA Infra: ‘Infra achieved its commercial target<br />
for <strong>2010</strong> largely through its success in acquiring new clients. Infra also met its<br />
efficiency target. Overheads were reduced, savings were made in ICT and a number<br />
of business processes were redesigned <strong>to</strong> make them more efficient.’<br />
9
DELTA in <strong>2010</strong><br />
Energy<br />
10
DELTA upclose<br />
Around three-quarters of<br />
DELTA’s revenue comes from<br />
energy-related activities of<br />
various kinds. DELTA generates<br />
electricity, trades in fuels<br />
(gas, coal and oil) and emission<br />
rights on various markets and<br />
supplies gas and electricity<br />
<strong>to</strong> business cus<strong>to</strong>mers and<br />
domestic consumers.<br />
4<br />
Sluice at Kreekrak<br />
11
DELTA Energy<br />
4.1 Business market<br />
Production, trading and supply <strong>to</strong> business cus<strong>to</strong>mers:<br />
its integrated approach places DELTA in a strong position<br />
as a medium-sized energy company.<br />
Asset based: solid operation, lower risk<br />
In mid-Oc<strong>to</strong>ber, CEO Peter Boerma signed a long-term<br />
contract with Gasunie Zuidwending for use of the gas<br />
s<strong>to</strong>rage facility near Veendam in Groningen. This was<br />
the second contract with Gasunie, giving DELTA access <strong>to</strong><br />
larger and more flexible gas s<strong>to</strong>rage capacity from 2016<br />
onwards. The contract is consistent with an ‘asset-based’<br />
business strategy: supplying cus<strong>to</strong>mers with gas and<br />
electricity that as far as possible comes from production<br />
facilities <strong>to</strong> which the company itself has access.<br />
Guido Custers, Direc<strong>to</strong>r of Origination, Trade & Supply:<br />
‘Because we are not just an energy supplier and trader<br />
and also have our own production capacity, we have more<br />
options for reducing risks. DELTA can influence the entire<br />
process, from production <strong>to</strong> billing. That makes for more<br />
stable operation and a good price/quality ratio.’<br />
The hypermodern Sloe power station in the port of<br />
Vlissingen is a good example of this strategy. The station<br />
was officially opened on 15 February by Marc Boudier,<br />
direc<strong>to</strong>r of co-owner EDF Europe, and Peter Boerma.<br />
The plant generates enough power for two million<br />
households and has low CO 2<br />
emissions: 25% lower than<br />
comparable stations.<br />
On November 3 <strong>2010</strong> EdF CEO Marc Boudier and<br />
DELTA CEO Peter Boerma signed an agreement.<br />
Both companies will work <strong>to</strong>gether in order<br />
<strong>to</strong> realize a new nuclear power plant in Borssele.<br />
12
Sloe power station<br />
DELTA upclose<br />
DELTA generating capacity<br />
EPZ (50% owned)<br />
Nuclear power station<br />
Fuel: uranium<br />
Output: 512 MW (DELTA: 50%)<br />
Coal-fired power station<br />
Fuel: coal and biomass<br />
Output: 426 MW (DELTA: 50%)<br />
ELSTA (25% owned)<br />
Fuel: gas<br />
Output: 420 MW (DELTA: 50%)<br />
Sloe power station (50% owned)<br />
Fuel: gas<br />
Output: 870 MW (DELTA: 50%)<br />
Biomass power station (50% owned)<br />
Fuel: chicken manure<br />
Output: 36 MW (DELTA: 100%)<br />
Wind farms (wholly and partly owned<br />
and under contract)<br />
Number of turbines: 74 at 12 locations<br />
Total output: 87 MW (DELTA: 100%)<br />
Combined heat and power<br />
80 engines<br />
Total output: 60 MW (DELTA: 100%)<br />
13
DELTA Energy<br />
Wind and solar energy<br />
In cooperation with several partners,<br />
DELTA continued <strong>to</strong> work in <strong>2010</strong><br />
on the plan <strong>to</strong> reconfigure the<br />
Kreekraksluis wind farm. This will<br />
involve replacing 26 wind turbines<br />
with 30 new units, around half of<br />
which will be built on the south side<br />
of the A58 mo<strong>to</strong>rway where there are<br />
no turbines at present. The new wind<br />
farm, which is scheduled <strong>to</strong> come<br />
in<strong>to</strong> service during 2012, will generate<br />
7–10 times more power than the<br />
existing facility.<br />
A solar farm consisting of 12,000 solar<br />
panels, with a <strong>to</strong>tal output of 2.6MW,<br />
on a roof covering 4 hectares at a<br />
distribution centre in Willebroek in<br />
Belgium, was officially commissioned<br />
in <strong>2010</strong>. The <strong>to</strong>tal area of solar panels<br />
is 26,000 m 2 , making it the largest<br />
solar farm in the Benelux.<br />
Trading: risk management<br />
and profit.<br />
Electricity, fuels (gas, oil and coal)<br />
and emission rights are traded<br />
daily on various markets. At DELTA,<br />
the Trade department is responsible<br />
inter alia for the sale of electricity<br />
and the purchase of fuels for the<br />
power stations. The department<br />
trades on markets in the Netherlands,<br />
Belgium and France. Guido Custers:<br />
‘It’s all about reducing the risks<br />
posed by fluctuating energy prices<br />
and safeguarding the energy supply.<br />
By negotiating advantageous<br />
purchase terms and benefiting from<br />
volume effects, our colleagues at<br />
Trade make a significant contribution<br />
<strong>to</strong> operating profit.’<br />
Energy for the large<br />
business market<br />
As an energy supplier, DELTA occupies<br />
a unique position in the large<br />
business market. Guido Custers:<br />
‘It’s evident from talking <strong>to</strong> our<br />
cus<strong>to</strong>mers that our Dutch roots<br />
and our size make us an attractive<br />
partner. When it comes <strong>to</strong> closer<br />
cooperation, we have an advantage<br />
as a mid-sized company: we’re more<br />
flexible and we’re seen as an equal.’<br />
Closer cooperation is especially<br />
attractive <strong>to</strong> cus<strong>to</strong>mers whose energy<br />
costs account for a large proportion<br />
of their production costs. ‘Working<br />
<strong>to</strong>gether <strong>to</strong> find ways of optimising<br />
energy supply requires openness<br />
on the part of both parties and in<br />
practice results in contracts that are<br />
more beneficial <strong>to</strong> both cus<strong>to</strong>mer<br />
and supplier, because you can map<br />
energy demand more accurately.’<br />
As well as this cus<strong>to</strong>mer-specific<br />
approach, the multi-site market<br />
also offers good potential for DELTA.<br />
Both public and private sec<strong>to</strong>r<br />
organisations working at many<br />
different sites benefit from clear and<br />
itemised billing for their energy use.<br />
Guido Custers: ‘Our processes are<br />
designed <strong>to</strong> give multi-site cus<strong>to</strong>mers<br />
the best possible service.<br />
Clear billing shows the cus<strong>to</strong>mer how<br />
energy is being used at its sites and<br />
facilitates energy management and<br />
cost reduction.’<br />
14<br />
Guido Custers
Wind farm Kreekraksluis<br />
DELTA upclose<br />
Highlights of <strong>2010</strong><br />
February<br />
Official opening of Sloe power station<br />
Oc<strong>to</strong>ber<br />
Signature of long-term contract with<br />
Gasunie Zuidwending for gas s<strong>to</strong>rage<br />
15
DELTA Energy<br />
4.2 <strong>Zeeland</strong> consumer market<br />
In <strong>Zeeland</strong>, its home market,<br />
DELTA provides digital services<br />
as well as supplying energy.<br />
This multi-utility concept has<br />
won DELTA a large share of<br />
the <strong>Zeeland</strong> market.<br />
DELTA scores above average<br />
DELTA emerges well from a comparison with other large suppliers. Its energy<br />
prices are attractive, which has not come about by chance: DELTA works<br />
hard <strong>to</strong> keep prices down. This is one way <strong>to</strong> reward <strong>Zeeland</strong> consumers for<br />
their loyalty and underline DELTA’s links with the province. Not for nothing<br />
did DELTA choose as its slogan for its <strong>2010</strong> campaign: ‘DELTA, voordelig en<br />
dichtbij’, which translates as ‘DELTA, low prices and close <strong>to</strong> home’.<br />
Prima service én<br />
een voordelige, vaste prijs?<br />
Profiteer ook van Zeeuwse zekerheid!<br />
DELTA, voordelig en dichtbij.<br />
Bel 0800-5150 en stap in voor 1 juli!<br />
Maakt de prijs voor u het verschil?<br />
Kies ook voor 3 jaar energie!<br />
DELTA, voordelig en dichtbij.<br />
Bel 0800-5150 en stap in voor 1 juli!<br />
As well as price, service is also a priority for DELTA, because these are the<br />
main areas in which it can set itself apart from the competition. There was<br />
also good news in <strong>2010</strong> on the service front. The results published by the<br />
Dutch Competition Authority of a number of surveys of the service provided<br />
by energy suppliers placed DELTA at the <strong>to</strong>p, with an average score of 6.0.<br />
DELTA also performed well in a survey by Vereniging Eigen Huis, the Dutch<br />
homeowners’ association, coming third with a score of 7.6.<br />
The quality of service of <strong>Zeeland</strong>Net, DELTA’s digital service provider, was<br />
also rated highly by consumers. In late <strong>2010</strong>, <strong>Zeeland</strong>Net and another provider<br />
shared first place in the Consumer Association’s Provider Moni<strong>to</strong>r survey.<br />
The consumer panel gave both providers a score of 7.8, on such aspects as<br />
quality and level of service and problem resolution. Over the past year,<br />
the two-monthly surveys have shown a steadily rising line. The research<br />
indicates that <strong>Zeeland</strong>Net’s cus<strong>to</strong>mers are the most satisfied with their<br />
provider’s services, giving an overall score of 7.5. On the aspect of<br />
‘friendliness’, the score was 8.1.<br />
Highlights of <strong>2010</strong><br />
May<br />
DELTA reduces the variable energy<br />
price by 11% with effect from 1 July<br />
<strong>2010</strong>, making it the lowest variable<br />
price at that time. The gas price was<br />
also kept low.<br />
July<br />
The number of digital TV viewers<br />
has grown 6.3%, according <strong>to</strong> the<br />
Telecompaper market research<br />
bureau. DELTA is outperforming the<br />
national growth rate of 4%.<br />
September<br />
• <strong>Zeeland</strong>Net Zakelijk announces that<br />
the 3,000th business cus<strong>to</strong>mer has<br />
opted for internet via cable.<br />
• More HD-quality channels on air:<br />
DELTA HD subscribers can now<br />
receive 17 channels in HD quality.<br />
Oc<strong>to</strong>ber<br />
DELTA performed well and <strong>to</strong>ok third<br />
place in a cus<strong>to</strong>mer satisfaction<br />
survey published by the Dutch<br />
homeowners’ association.<br />
16
DELTA upclose<br />
The teams at DELTA Comfort and<br />
<strong>Zeeland</strong>Net, the DELTA divisions<br />
that address the consumer market<br />
in <strong>Zeeland</strong>, see good ratings as<br />
an important stimulus <strong>to</strong> raising<br />
the service level even higher, and<br />
they worked hard again last year<br />
<strong>to</strong> further optimise the service.<br />
In the energy sec<strong>to</strong>r, they use the<br />
‘cus<strong>to</strong>mer journeys’ method:<br />
what steps does a cus<strong>to</strong>mer have<br />
<strong>to</strong> take, for example, <strong>to</strong> sign up for<br />
services, report faults or change<br />
the amount of a regular direct debit<br />
payment? Careful analysis of these<br />
processes, as viewed from the<br />
cus<strong>to</strong>mer’s perspective, can result<br />
in improvements that benefit the<br />
company as well as the cus<strong>to</strong>mer.<br />
The digital services provided by<br />
<strong>Zeeland</strong>Net were also placed under<br />
the microscope last year. General<br />
Manager Pascal de Klerk, who is<br />
responsible for operations on the<br />
<strong>Zeeland</strong> consumer market: ‘The good<br />
scores given by independent bodies<br />
such as the Competition Authority<br />
and consumer organisations are a<br />
sign that we’re doing it right. For us,<br />
they are a strong incentive <strong>to</strong> keep<br />
focusing on the combination of price<br />
and quality.’<br />
Market trends<br />
DELTA’s share of the energy segment of its <strong>Zeeland</strong> home market is<br />
large and comparatively stable. Pascal de Klerk: ‘Although there has<br />
been competition on the energy market for seven years now, DELTA<br />
still serves most of the consumer market. The number of households in<br />
<strong>Zeeland</strong> that switch suppliers is low, at 1.5–2%. Nationally, the figure is<br />
around 10%.’<br />
DELTA provides internet and telephone services under the <strong>Zeeland</strong>Net<br />
brand. In this segment, <strong>to</strong>o, DELTA has a large share of the market.<br />
Low prices and good products are the key <strong>to</strong> its success. Its aboveaverage<br />
level of service and unique multi-utility concept ensure that<br />
cus<strong>to</strong>mers remain loyal <strong>to</strong> DELTA.<br />
Pascal de Klerk<br />
17
Er worden bovendien 1.000 typisch Zeeuwse prijzen verdeeld onder de eerste 3.000 inschrijvingen.<br />
Bent u er op tijd bij, dan heeft u dus een kans van 1 op 3 om een gezellig weekendje weg in <strong>Zeeland</strong>,<br />
een heerlijk etentje voor twee in een sterrenrestaurant of één van de 998 andere prijzen te winnen.<br />
Zeeuwse prijzen etentje voor 2 personen in een Zeeuws sterrenrestaurant: Oud-Sluis, Inter Scaldes of De Kromme Watergang<br />
• weekend weg voor 2 personen in <strong>Zeeland</strong> • rondvlucht voor 2 personen boven <strong>Zeeland</strong> • tickets voor concert at SEA • kaartjes<br />
voor DELTA park Neeltje Jans • tickets Voetbal Experience • limited edition <strong>Zeeland</strong> T-shirts<br />
Zeeuwse prijzen etentje voor 2 personen in een Zeeuws sterrenrestaurant: Oud-Sluis, Inter Scaldes of De Kromme Watergang • weekend weg voor 2 personen in <strong>Zeeland</strong> •<br />
rondvlucht voor 2 personen boven <strong>Zeeland</strong> • tickets voor concert at SEA • kaartjes voor DELTA park Neeltje Jans • tickets Voetbal Experience • limited edition <strong>Zeeland</strong> T-shirts<br />
DELTA Energy<br />
Campaigns in <strong>2010</strong><br />
DELTA again ran several<br />
advertising campaigns<br />
in <strong>2010</strong> <strong>to</strong> raise its profile<br />
with consumers.<br />
Competition in the energy<br />
and digital services markets<br />
is intense and it is essential<br />
<strong>to</strong> maintain a high-profile<br />
presence in the marketplace<br />
if you want <strong>to</strong> extend<br />
your market share.<br />
Energy<br />
Every six months, in the middle and at<br />
the end of the year, DELTA cus<strong>to</strong>mers<br />
are given details of attractive energy<br />
deals by letter or e-mail, backed up<br />
by an intensive regional campaign<br />
of radio and TV commercials and<br />
advertisements in regional media.<br />
Digital advertising media are also<br />
used, <strong>to</strong> ensure full coverage of<br />
<strong>Zeeland</strong>’s population. The ‘I love<br />
<strong>Zeeland</strong>’ campaign in late <strong>2010</strong> was<br />
the first phase of a drive <strong>to</strong> sign up<br />
households outside the province.<br />
www.DELTA.nl/energieuitzeeland<br />
www.DELTA.nl/energieuitzeeland<br />
Zin om te genieten van<br />
het beste uit <strong>Zeeland</strong>?<br />
Laat vrijblijvend uw gegevens achter op www.DELTA.nl/energieuitzeeland.<br />
U komt als eerste alles te weten over het nieuwe DELTA aanbod, voor het eerst buiten de Zeeuwse grenzen.<br />
Green<br />
DELTA mounted a number of<br />
advertising campaigns in <strong>2010</strong> <strong>to</strong><br />
raise <strong>Zeeland</strong>ers’ awareness of the<br />
importance of energy saving and CO 2<br />
reduction. The spring campaign under<br />
the slogan ‘Dagelijks duurzaam’<br />
(approximately ‘Green every day’) was<br />
rounded off with a sustainable dinner<br />
for many guests in the <strong>Zeeland</strong>hallen<br />
centre. From Oc<strong>to</strong>ber <strong>to</strong> December,<br />
CO 2<br />
reduction was the central theme<br />
of the ZeeuwsGroen (‘<strong>Zeeland</strong> Green’)<br />
campaign. By buying ZeeuwsGroen<br />
energy, households are helping <strong>to</strong><br />
reduce CO 2<br />
emissions.<br />
Kies donderdag<br />
21 ok<strong>to</strong>ber voor<br />
ZeeuwsGroen<br />
Zet de thermostaat een graadje lager,<br />
trek een dikke trui aan en draag bij<br />
aan een CO 2<br />
-neutraal <strong>Zeeland</strong><br />
Maak kans<br />
op een<br />
doe-het-zelf<br />
pakket zonnepanelen<br />
Maak hier een fo<strong>to</strong> van, plaats deze op<br />
www.DELTA.nl/ZeeuwsGroen en maak kans<br />
op een doe-het-zelf pakket zonnepanelen!<br />
www.delta.nl/ZeeuwsGroen<br />
Zin om te genieten van<br />
het beste uit <strong>Zeeland</strong>?<br />
Heeft u familie, vrienden of kennissen die<br />
geïnteresseerd kunnen zijn in een energieaanbod<br />
van DELTA buiten <strong>Zeeland</strong>?<br />
Verwijs hen naar www.DELTA.nl/energieuitzeeland.<br />
Daar kan men zich vrijblijvend inschrijven. Begin 2011 doen we hen een aanbod!<br />
Bovendien worden 1.000 prijzen verdeeld onder de eerste 3.000 inschrijvingen, waaronder een gezellig weekendje weg<br />
in <strong>Zeeland</strong>, een heerlijk etentje voor twee in een Zeeuws sterrenrestaurant of één van de 998 andere Zeeuwse prijzen.<br />
Voor meer informatie over deze actie kijk op PIM.<br />
Ook uw bijdrage telt! Word vandaag<br />
ZeeuwsGroen met groene stroom van DELTA.<br />
Kijk op www.DELTA.nl/ZeeuwsGroen voor alle informatie,<br />
tips en adviezen over het besparen van energie en CO 2 .<br />
AB<br />
1014_DELTA_ZeeuwsGroen_PZC_16-10_installaties_130x194_AB.indd Medium Formaat 1 130x194<br />
06-06-11 17:31<br />
Aanleverdatum 14/10/10 Verschijningsdatum 16/10/10<br />
18
Wij willen alle 31 winnaars van het DELTA HD-prijzenpakket nogmaals feliciteren.<br />
Op Schouwen-Duiveland, Tholen, Walcheren, Noord-Beveland,<br />
Zuid-Beveland en Zeeuws-Vlaanderen; overal waren er winnaars.<br />
<strong>Zeeland</strong> kleurde dankzij jullie, én duizenden andere Zeeuwen<br />
die meededen aan de actie, oranje.<br />
Er kijken steeds meer Zeeuwen in HD! Wanneer neemt u de stap?<br />
WInnAArS vAn DE DElTA Wk pOSTErAcTIE<br />
11 juni Fam. Verbiest, Vogelwaarde | 12 juni Fam. Kalisvaart, Spui | 13 juni Fam. Sneijders, Zierikzee | 14 juni Fam. de Feyter, Terneuzen | 15 juni Fam. Woestyne-<br />
Meulmeester, Aagtekerke | 16 juni Fam. Boer, Terneuzen | 17 juni Fam. Barendregt, St. Maartensdijk | 18 juni Dhr. Van Arkel, IJzendijke | 19 juni Mevr. Rooda,<br />
Burgh-Haamstede | 20 juni Fam. Lunenburg, Vlissingen | 21 juni Fam. v.d. Bulck, Hulst | 22 juni Fam. Westdorp, Middelburg | 23 juni Fam. Hensels, Goes | 24 juni<br />
Fam. Monkhoo, Schoondijke | 25 juni Fam. Grim, Oost-Souburg | 26 juni Mevr. Geerse, Oostkappelle | 27 juni Fam. v.d. Ploeg, Grijpskerke | 28 juni Fam. Adriaanse,<br />
Meliskerke | 29 juni Fam. Vermeulen, Kwadendamme | 30 juni Dhr. Bostelaar, IJzendijke | 1 juli Fam. Xavier, Sluiskil | 2 juli Fam. Verhage, Koudekerke | 3 juli<br />
Fam. Thomaes, Hoofdplaat | 4 juli Fam. Spaapen, Vlissingen | 5 juli Fam. Romijn, Middelburg | 6 juli Fam. Chamroe, Vlissingen | 7 juli Fam. v.d. Berge, Hoek | 8 juli<br />
Fam. Braspenning, Breskens | 9 juli Fam. v.d. Noord, Kloosterzande | 10 juli Fam. v.d. Duyn-Schouten, Vlissingen | 11 juli Fam. van Liere, Middelburg<br />
www.delta.nl/digitaletv<br />
Deze actie wordt mede mogelijk gemaakt door:<br />
WInnAArS<br />
vAn DE<br />
DElTA Wk pOSTErAcTIE<br />
DELTA upclose<br />
Digital<br />
The aim of the ‘fast 4ward’ campaign<br />
launched in the spring was <strong>to</strong> draw<br />
<strong>Zeeland</strong>ers’ attention <strong>to</strong> <strong>Zeeland</strong>Net’s<br />
lightning-fast internet service: four<br />
times faster than the competition.<br />
The campaign included TV and radio<br />
commercials and special websites.<br />
The soccer World Cup provided<br />
an opportunity <strong>to</strong> promote the<br />
company’s HD television service.<br />
An ambitious campaign was mounted<br />
under the slogan ‘Hup HD Hup’, using<br />
posters, newspaper advertisements<br />
and TV commercials. DELTA helped <strong>to</strong><br />
bring super sharp TV viewing within<br />
reach by giving a €100 discount on an<br />
HD receiver.<br />
At the end of the year, first-time<br />
subscribers <strong>to</strong> <strong>Zeeland</strong>Net’s internet<br />
service were given a 50% discount<br />
for six months. The same discount<br />
was given <strong>to</strong> new cus<strong>to</strong>mers signing<br />
up for digital telephone and<br />
TV services.<br />
Effectiveness<br />
The effectiveness of the campaigns<br />
was carefully moni<strong>to</strong>red.<br />
Pascal de Klerk, General Manager of<br />
DELTA Comfort: ‘The ‘Hup HD Hup’<br />
campaign achieved high penetration<br />
in a very short time: surveys found<br />
that 62% of <strong>Zeeland</strong>ers were aware<br />
of it. The number of HD subscription<br />
sales rose sharply during the<br />
campaign period and most of our<br />
other products also benefited.’<br />
OrAnJE WAS<br />
OnvErgETElIJk<br />
In HD<br />
nET gEEn WErElDbEkEr,<br />
MAAr OrAnJE ScHITTErDE In HD.<br />
KIJK<br />
HET WK<br />
IN HD<br />
MET DELTA DIGITALE TV<br />
31<br />
gEfElIcITEErD<br />
DELTA.nl in <strong>2010</strong><br />
DELTA.nl had a successful year in<br />
<strong>2010</strong>, with the number of people<br />
visiting the site rising <strong>to</strong> 586,079, up<br />
60% compared with 2009 (365,863).<br />
On average, they viewed six pages<br />
per visit and surfed the site for five<br />
minutes.<br />
There were a record 70,000 visi<strong>to</strong>rs<br />
<strong>to</strong> DELTA.nl in December, who were<br />
mainly interested in the six-monthly<br />
energy campaign, the activities<br />
relating <strong>to</strong> nuclear energy and<br />
the ZeeuwsGroen green energy<br />
campaign. The DELTA HD TV campaign<br />
in June also attracted many more<br />
visi<strong>to</strong>rs <strong>to</strong> the website.<br />
DELTA expanded its social media<br />
activities in <strong>2010</strong> with Facebook<br />
and Twitter accounts. These digital<br />
platforms are expected <strong>to</strong> generate<br />
growth in cus<strong>to</strong>mer, press and other<br />
contacts in 2011.<br />
Neem nù een jaarabonnement<br />
op het DELTA HD-pakket en<br />
ontvang € 100,- korting<br />
op een Samsung HD PVR!<br />
Nu<br />
€100,-<br />
korting<br />
Samsung SMT-C7140<br />
Kies voor HD-kwaliteit:<br />
• <strong>to</strong>t 5 keer scherper beeld<br />
• Dolby Digital 5.1 geluid<br />
• 17 zenders in HD-pakket<br />
deze actie loopt van 17 mei <strong>to</strong>t en met 31 juli <strong>2010</strong>.<br />
www.delta.nl/digitaletv<br />
19
DELTA Energy<br />
In light of the effects on the renewable energy sec<strong>to</strong>r<br />
of the volatile market conditions and the repercussions<br />
of the financial crisis, DELTA announced in <strong>2010</strong> that it<br />
intended <strong>to</strong> unwind its interest in solar cell production<br />
and close Biovalue, the biodiesel plant in Eemshaven.<br />
In November, DELTA announced its decision <strong>to</strong> withdraw<br />
from solar cell production in response <strong>to</strong> the shifts in the<br />
solar energy market caused by the economic crisis and<br />
in recognition of the fact that the entry of large Asian<br />
players heralded the end of the era of unlimited growth for<br />
European solar energy companies. DELTA consequently<br />
intends <strong>to</strong> unwind its interest in Solland Solar,<br />
the Heerlen-based solar cell manufacturer.<br />
Renewable energy under pressure<br />
DELTA acquired the interest in Solland in late 2006,<br />
when the outlook for the solar industry was still<br />
promising. ‘The returns on these investments were very<br />
disappointing’, says CEO Peter Boerma. ‘Like others,<br />
we did not foresee the market turbulence we have<br />
experienced in recent years. We still believe in solar as<br />
the energy source of the future, but further investment<br />
cannot be justified by a company like DELTA in the current<br />
market conditions. The know-how Solland has accrued<br />
makes the company attractive <strong>to</strong> potential buyers who<br />
can grow it <strong>to</strong> the required scale.’ Consistent with its<br />
present view of the solar market, DELTA has written<br />
down its interest in Solland and Sunergy (a research and<br />
development subsidiary).<br />
Drastic changes in the biodiesel market<br />
Domestic output of biodiesel has fallen sharply in recent<br />
years in the face of rising imports. The government’s<br />
decision <strong>to</strong> reduce the manda<strong>to</strong>ry biodiesel content in<br />
diesel <strong>to</strong> 4% has also been a negative fac<strong>to</strong>r.<br />
In July, DELTA decided <strong>to</strong> close Biovalue, the biodiesel plant<br />
in Eemshaven. DELTA had spent several months before that<br />
trying <strong>to</strong> find other uses for the plant, which employs 26<br />
people, but its efforts proved unsuccessful.<br />
20
DELTA upclose<br />
Preparations for a new nuclear power station<br />
To achieve a 20% reduction in CO 2<br />
emissions by 2020,<br />
greater use has <strong>to</strong> be made of nuclear power. Those were the<br />
words of the Rutte administration in September’s coalition<br />
agreement. DELTA sees this as vindication of its position:<br />
that it would be irresponsible not <strong>to</strong> use nuclear energy if<br />
we want <strong>to</strong> achieve a significant reduction in CO 2<br />
emissions.<br />
Carbon reduction is essential <strong>to</strong> prevent global warming.<br />
DELTA aims <strong>to</strong> be carbon-neutral by 2050 and, <strong>to</strong> that end,<br />
it is making preparations for a second nuclear power station<br />
in Borssele.<br />
The following are some of the prepara<strong>to</strong>ry steps taken in<br />
<strong>2010</strong> <strong>to</strong> enable work on the new station – which has <strong>to</strong> be<br />
in service in 2018 – <strong>to</strong> proceed.<br />
• In June, the Ministry of Housing, Physical Planning and<br />
the Environment notified DELTA of the requirements that<br />
its environmental impact report had <strong>to</strong> meet for DELTA<br />
<strong>to</strong> qualify for a permit.<br />
• On Thursday, 16 September, the first group of students<br />
taking Nuclear Technology as a secondary subject<br />
embarked on their course. The launch of this course at<br />
senior secondary vocational education (MBO) level and<br />
higher professional education (HBO) level represented<br />
the fulfilment of a long-held wish. In the space of a year,<br />
a course had been organised by Hogeschool <strong>Zeeland</strong>,<br />
the Westerschelde Regional Training Centre, the <strong>Zeeland</strong><br />
Regional Training Centre, DELTA and EPZ <strong>to</strong> train students<br />
for jobs in the nuclear industry alongside their regular<br />
course work.<br />
• In November, DELTA announced that it was <strong>to</strong> cooperate<br />
with EdF, the French energy company, on preparations<br />
for the construction of a new nuclear power station.<br />
EdF has a wealth of experience in building power stations<br />
of this kind and DELTA and EdF are no strangers: they are<br />
joint owners of the Sloe power station in Vlissingen.<br />
• Throughout <strong>2010</strong>, DELTA organised ‘drop-in evenings’<br />
<strong>to</strong> tell people living in the area about the new nuclear<br />
power station and the environmental impact report.<br />
Members of DELTA’s Executive Board also held a series of<br />
informal meetings with people at home, <strong>to</strong> answer their<br />
questions about the plans for the new power station.<br />
21
DELTA in <strong>2010</strong><br />
Waste<br />
management<br />
The recent his<strong>to</strong>ry of DELTA’s Indaver subsidiary shows that<br />
the company is achieving its growth ambitions in North-West Europe.<br />
Expenditure on waste management has risen sharply in<br />
the past few years. Companies and public authorities are<br />
outsourcing management of their waste<br />
streams <strong>to</strong> specialists because efficient<br />
and cost-effective waste management<br />
has become a complex task.<br />
22
DELTA upclose<br />
Indaver, which has its headquarters in Mechelen in Belgium, has grown <strong>to</strong> become<br />
an international group with bases across Europe. As well as Belgium, Indaver is also<br />
active in the Netherlands, Ireland, Portugal, Italy and Germany. The company’s clients<br />
include public authorities (chiefly in Belgium, the Netherlands and Ireland) and industry<br />
(North-West Europe).<br />
5<br />
Indaver processes almost four million <strong>to</strong>nnes of waste a year, over half of it in Belgium.<br />
Most of it is processed at the company’s own plants, but some is processed at other facilities.<br />
The company employs several waste management methods including recycling, biomass<br />
production and waste-<strong>to</strong>-energy (waste incineration combined with energy generation).<br />
23
DELTA Waste management<br />
Integration of DELTA Milieu in<strong>to</strong> Indaver<br />
DELTA Milieu, formerly one of the DELTA divisions, was integrated in<strong>to</strong><br />
Indaver in <strong>2010</strong>. Indaver is 75% owned by DELTA; 16% of the shares in Indaver<br />
are held by Vlaamse Milieuholding and the remaining 9% are held by six<br />
industrial companies. The integration of DELTA Milieu has led <strong>to</strong> the creation<br />
of a country organisation. Indaver has divided the market in<strong>to</strong> four regions<br />
(Belgium, Netherlands, Ireland/UK and Germany) and reconfigured the internal<br />
organisation <strong>to</strong> suit this market approach.<br />
DELTA Milieu has 225 employees and generates revenue of EUR 117 million.<br />
Post-integration, Indaver will have some 1,700 employees in 2011 and will<br />
generate revenue of about EUR 500 million. DELTA Milieu operates out of<br />
30 sites in <strong>Zeeland</strong>, Noord-Brabant and Zuid-Holland.<br />
Integration is the logical culmination of a development that was initiated<br />
in 2007, when DELTA decided <strong>to</strong> expand its waste management activities<br />
by acquiring a stake in Indaver because a wider range of energy and<br />
waste-related services offered more growth potential. The interest in<br />
Indaver thus broadened DELTA’s commercial base. The combination of waste<br />
management and energy services not only meets cus<strong>to</strong>mers’ needs, but is<br />
also a logical step in terms of technology. A growing volume of waste is being<br />
recycled in<strong>to</strong> new materials or used as fuel for electricity generation.<br />
Indaver Nederland:<br />
DELTA Milieu, IGA and AROC<br />
DELTA Milieu specialises in<br />
management mainly of nonhazardous<br />
and domestic waste<br />
produced by public-sec<strong>to</strong>r and<br />
business clients. DELTA Milieu<br />
handled over one million <strong>to</strong>nnes<br />
of waste in <strong>2010</strong>, using a number<br />
of processing methods:<br />
• Composting of vegetable<br />
matter <strong>to</strong> produce high-grade<br />
soil conditioner<br />
• Fermentation of organic waste<br />
streams<br />
• Production of biomass from<br />
green waste<br />
• Paper recycling<br />
• Waste-<strong>to</strong>-energy (incineration<br />
combined with electricity<br />
generation)<br />
• Landfill<br />
old situation<br />
new situation<br />
DELTA Milieu is the waste<br />
collection, recycling and<br />
processing partner of the <strong>Zeeland</strong><br />
municipalities.<br />
DELTA Milieu<br />
The<br />
Netherlands<br />
Belgium<br />
UK &<br />
Ireland<br />
Germany<br />
DELTA Milieu: part of DELTA Indaver: part of DELTA (75%)<br />
As well as DELTA Milieu, IGA<br />
and AROC are also part of<br />
Indaver Nederland. IGA (Indaver<br />
Gevaarlijk Afval, which translates<br />
as ‘Indaver Hazardous Waste’) is<br />
based in Terneuzen and AROC is<br />
based at the Corus Staal bv site<br />
in IJmuiden.<br />
24
DELTA upclose<br />
Ronny Ansoms, Indaver’s CEO:<br />
‘Indaver’s Dutch arm will continue<br />
<strong>to</strong> work for public authorities under<br />
the DELTA brand. The integration of<br />
DELTA Milieu has created a single<br />
organisation with a strong position<br />
on the North-West European market.<br />
Its combination of expertise and<br />
cus<strong>to</strong>mer concepts - Total Waste<br />
Management and Public Waste<br />
Partnerships – places Indaver in a<br />
strong position.’ With its Total Waste<br />
Management concept, Indaver offers<br />
industrial cus<strong>to</strong>mers a <strong>to</strong>tal package.<br />
The service can take various forms,<br />
from processing and transport<br />
<strong>to</strong> running processing plants at<br />
the cus<strong>to</strong>mer’s site. The concept<br />
is successful because it frees<br />
cus<strong>to</strong>mers <strong>to</strong> focus their<br />
core business.<br />
Indaver is also an attractive<br />
partner for public authorities.<br />
Ronny Ansoms: ‘Guaranteed<br />
continuity and sustainable<br />
processing of waste streams are<br />
essential for public authorities and<br />
Indaver is able <strong>to</strong> meet their needs.’<br />
Public Waste Partnerships,<br />
the market concept targeted on<br />
public authorities, encompasses<br />
three types of service: processing<br />
of household waste, organisation<br />
of waste management systems and<br />
operation of processing installations.<br />
Indaver’s Public Waste Partnerships<br />
concept operates mainly in Belgium,<br />
the Netherlands and Ireland.<br />
DELTA waste management:<br />
a brief his<strong>to</strong>ry<br />
• DELTA acquired a 60% stake<br />
in Indaver NV in Belgium<br />
in 2007 and increased it <strong>to</strong><br />
75% in late 2008.<br />
• DELTA Milieu’s waste<br />
management activities<br />
were transferred <strong>to</strong> Indaver<br />
in <strong>2010</strong>.<br />
• Waste management<br />
accounted for over a quarter<br />
of DELTA’s revenue in <strong>2010</strong>.<br />
Ronny Ansoms<br />
25
DELTA Waste management<br />
Highlights of <strong>2010</strong><br />
Medipower Antwerp<br />
Meath<br />
June<br />
On 21 June, DELTA’s shareholders approved the integration of<br />
DELTA Milieu and Indaver. The new organisational structure became<br />
operational at the beginning of 2011.<br />
September<br />
Work starts on the construction of Medipower, a new processing plant<br />
for hospital waste in Antwerp.<br />
December<br />
Indaver’s growth necessitates organisational changes. The new country<br />
organisation based on four regions – Belgium, Netherlands, Ireland/UK<br />
and Germany – became operational at the beginning of 2011.<br />
26
DELTA upclose<br />
New projects in<br />
Meath and Antwerp<br />
Indaver worked hard in <strong>2010</strong> on<br />
two projects that illustrate both<br />
the importance of sustainable waste<br />
management and the company’s<br />
versatility: the first large waste-<strong>to</strong>energy<br />
incineration plant in Ireland<br />
and Medipower, a processing plant<br />
for hospital waste in Antwerp.<br />
Construction of a waste management<br />
plant in Meath in Ireland, 30km north<br />
of Dublin, started in August 2009<br />
and will be completed in September<br />
2011. This waste-<strong>to</strong>-energy facility<br />
can process up <strong>to</strong> 200,000 <strong>to</strong>nnes<br />
of household waste and a similar<br />
volume of industrial waste per year.<br />
The plant generates electricity in<br />
the process: the 20MW turbine<br />
generates enough power <strong>to</strong> supply<br />
20,000 homes.<br />
At an Indaver site in Antwerp,<br />
construction started in September<br />
<strong>2010</strong> on Medipower, a processing<br />
facility for hospital and other waste.<br />
Medipower is scheduled <strong>to</strong> enter<br />
service in early 2012. The Antwerp site<br />
is ideal, because some components<br />
of the existing installation there will<br />
be reused. The entire incineration<br />
section is being renewed, however,<br />
and a new flue gas scrubber will be<br />
installed.<br />
Ronny Ansoms: ‘Belgian hospitals<br />
generate 14,000 <strong>to</strong>nnes of waste<br />
a year. Dutch hospital waste will<br />
probably also be brought <strong>to</strong> Antwerp<br />
for processing. Medipower produces<br />
electricity and steam. We use the<br />
steam <strong>to</strong> heat some of the buildings<br />
and we feed the power generated<br />
by the plant in<strong>to</strong> the public grid.’<br />
Priorities<br />
Preparations were made in <strong>2010</strong><br />
for the organisational changes<br />
needed <strong>to</strong> accommodate<br />
Indaver’s growth. These changes<br />
<strong>to</strong>ok effect at the beginning<br />
of 2011 and the company has<br />
a new country organisation<br />
divided in<strong>to</strong> four regions<br />
(Belgium, Netherlands, Ireland/<br />
UK and Germany). The following<br />
priorities have been set:<br />
• <strong>to</strong> expand the Public Waste<br />
Partnerships for the publicsec<strong>to</strong>r<br />
market, with waste<br />
incineration and high-grade<br />
recycling as core activities,<br />
in Belgium, the Netherlands<br />
and Ireland;<br />
• <strong>to</strong> roll out Total Waste<br />
Management more widely,<br />
focusing on incineration of<br />
hazardous industrial waste<br />
in the EU;<br />
• <strong>to</strong> expand the biomass and<br />
composting activities and<br />
secure a strong leading<br />
position in the processing<br />
of biomass streams in the<br />
Netherlands and Belgium.<br />
27
In financial terms, <strong>2010</strong> was an eventful year for DELTA.<br />
With the solar energy segment suffering the effects of<br />
the weak economy, it was decided <strong>to</strong> withdraw from this business<br />
and unwind DELTA’s interest in it.<br />
IFRS requires separate recognition of the financial consequences of that<br />
decision as ‘discontinued operations’ in the financial statements, and<br />
the consolidated balance sheet, income statement and cash flow statement<br />
have been prepared on that basis.<br />
Although the reported loss is a disappointment, DELTA had a good year in all<br />
segments except solar cell production. The results in the energy segment were<br />
very good, largely due <strong>to</strong> the fixing of selling prices in 2008. The networks<br />
segment also performed well. The waste management division successfully<br />
integrated all DELTA’s activities in this field and delivered good results.<br />
Revenue and profit<br />
Owing <strong>to</strong> the separate recognition of the solar energy activities as<br />
‘discontinued operations’ in the <strong>2010</strong> financial statements, the 2009 financial<br />
information has been restated <strong>to</strong> facilitate comparison.<br />
Revenue from continuing operations in <strong>2010</strong> was about 10% higher at almost<br />
EUR 2.1 billion, mainly due <strong>to</strong> higher electricity sales. The Sloe power station,<br />
which came on stream in <strong>2010</strong>, has boosted DELTA’s generating capacity.<br />
Despite the low economic growth in <strong>2010</strong>, DELTA was able <strong>to</strong> increase<br />
the gross margin on continuing operations by EUR 8 million. This increase is<br />
all the more remarkable because the gross margin in 2009 was boosted<br />
by an upward revaluation of the trading portfolio of EUR 34 million,<br />
compared with the revaluation of +EUR 3 million in <strong>2010</strong>.<br />
28
DELTA upclose<br />
Financial<br />
6<br />
performance<br />
The growth in net operating expenses was held down<br />
by rigorous cost control and efficiency improvement,<br />
but additional costs were incurred by the separation of<br />
ICT systems in connection with the independent<br />
positioning of DELTA Netwerkbedrijf and faster<br />
amortisation of several IT applications (EUR 9 million).<br />
A number of one-off provisions were formed in the energy<br />
segment (EUR 20 million) and a fair-value write-down<br />
(EUR 12 million) was applied in the waste management<br />
segment in the light of the restrictions on landfill and<br />
the economic developments in Ireland.<br />
Reflecting DELTA’s strict recruitment policy, the number<br />
of full-time equivalent employees decreased by 88 as<br />
at year-end <strong>2010</strong> compared with the year before,<br />
which translated in<strong>to</strong> a slight reduction in staff costs<br />
(excluding inflation).<br />
Adjusted for the non-recurring expenses and write-downs<br />
referred <strong>to</strong> above, net operating expenses showed little<br />
change in <strong>2010</strong>. The share in the profit of joint ventures<br />
and associates in <strong>2010</strong> was very close <strong>to</strong> the 2009 figure.<br />
The profits were generated largely by the power stations<br />
(EPZ, Elsta and Sloe), waste incineration companies<br />
Sleco and AZN and water company Evides.<br />
With higher operational cash flow and the capital<br />
expenditure held at the same level as in 2009, there<br />
was little change in the level of borrowing in <strong>2010</strong>.<br />
Finance costs were lower in <strong>2010</strong>, helped by the<br />
repayment of the bridging finance for the Sloe power<br />
station at the end of 2009 and movements in<br />
external interest rates.<br />
These fac<strong>to</strong>rs <strong>to</strong>gether resulted in profit after tax on<br />
continuing operations of EUR 90 million in <strong>2010</strong>.<br />
The assets and liabilities relating <strong>to</strong> the solar energy<br />
activities were written down <strong>to</strong> zero. The financial<br />
implications are recognised <strong>to</strong>gether with the operating<br />
profit for <strong>2010</strong> and the expected proceeds of sale in<br />
‘Profit for the year from discontinued operations’.<br />
The financial implications of the insolvency of Biovalue<br />
are also recognised under this heading. The <strong>to</strong>tal cost<br />
involved amounts <strong>to</strong> EUR 265 million.<br />
Less the profit attributable <strong>to</strong> non-controlling interests<br />
(EUR 2 million), the profit for the year was EUR 178 million<br />
negative.<br />
29
Financial performance<br />
Cash flow and Investments<br />
Although the balance sheet and income statement have<br />
been restructured in connection with the discontinuation<br />
of activities, the cash flow statement for <strong>2010</strong> (and 2009)<br />
has been prepared in accordance with IFRS on the basis<br />
of the result and the balance sheet before recognition of<br />
the effect of that decision. Consequently, movements in<br />
the income statement and/or the balance sheet cannot<br />
be reconciled directly with cash flows.<br />
In the light of the financial results and the need <strong>to</strong> improve<br />
the longer-term finance structure, DELTA continued in <strong>2010</strong><br />
<strong>to</strong> pursue structural improvement in the cash flow. This<br />
<strong>to</strong>ok the form of a strict debt collection policy, close focus<br />
on cost control and a conservative investment policy.<br />
The negative operating result can be attributed largely<br />
<strong>to</strong> the effects of write-downs and impairment within the<br />
solar energy segment. Because these decisions required<br />
only a low cash outflow in <strong>2010</strong>, their adverse effect was<br />
more than offset by the positive cash flow from operating<br />
activities. The debt collection policy also contributed<br />
by further reducing the receivables.<br />
In 2009, there was non-recurring revenue in the form<br />
of the proceeds of sale of assets (<strong>to</strong> TenneT) and a<br />
non-recurring improvement in the working capital due <strong>to</strong><br />
the adoption of more rigorous collection and payment<br />
terms (<strong>to</strong>tal EUR 135 million).<br />
The <strong>to</strong>tal investment in property, plant and equipment<br />
and intangible assets (EUR 141 million) was higher than<br />
in 2009 (EUR 125 million), mainly due <strong>to</strong> the investment<br />
in a new incinera<strong>to</strong>r (EUR 55 million). Regular investment<br />
expenditure on expansion and replacement of operating<br />
equipment and networks in <strong>2010</strong> (EUR 90 million) was less<br />
than the regular depreciation charge (EUR 110 million).<br />
The cash flow generated by the above events was used <strong>to</strong><br />
pay the 2009 dividend, so there was little change in the<br />
net debt position in <strong>2010</strong>.<br />
Financial position and profitability<br />
The net effect of the movement in the hedge reserve<br />
(EUR 103 million), the payment of the 2009 dividend<br />
(EUR 50 million) and various movements in reserves was<br />
<strong>to</strong> increase equity by EUR 49 million, but this was offset by<br />
the negative result (EUR 178 million), so that group equity<br />
before profit appropriation ended the year EUR 129 million<br />
lower compared with year-end 2009. In combination with<br />
the reduction in <strong>to</strong>tal assets due <strong>to</strong> the lower derivatives<br />
position, the group’s equity ratio improved <strong>to</strong> 42.2%<br />
(2009: 40.6%).<br />
Prospects for 2011<br />
Work will continue in 2011 on developing a more effective<br />
organisational structure and reducing costs still further.<br />
Cost reduction is essential because margins are expected<br />
<strong>to</strong> come under pressure from lower energy prices and high<br />
fuel prices in the years ahead.<br />
Further progress is being made in optimizing the financing<br />
structure, for example by matching long-term investments<br />
and long-term finance.<br />
The new waste management facility (a waste-<strong>to</strong>-energy<br />
plant) in Ireland will come on stream in 2011 and work is<br />
continuing on the plans for a new nuclear power station<br />
in <strong>Zeeland</strong>.<br />
30
DELTA upclose<br />
Independent audi<strong>to</strong>r’s report<br />
To: the board of direc<strong>to</strong>rs and shareholders of DELTA N.V.<br />
The consolidated balance sheet as at December 31, <strong>2010</strong>, the consolidated income statement and<br />
the consolidated cash flow statement for the year ended December 31, <strong>2010</strong> included in the<br />
brochure “DELTA upclose” on page 32 through 35 are derived from the audited financial<br />
statements of DELTA N.V. for the year ended December 31, <strong>2010</strong>. We expressed an unqualified<br />
audit opinion on those financial statements in our report dated April 11, 2011. Those financial<br />
statements, and the aforementioned information, do not reflect the effects of events that occured<br />
subsequent <strong>to</strong> the date of our audi<strong>to</strong>r’s report dated April 11 2011.<br />
The aforementioned balance sheet income statement and cash flow statement do not contain all<br />
the disclosures required by International Financial Reporting Standards (IFRS). Reading the<br />
summary financial statements, therefore, is not a substitute for reading the audited financial<br />
statements of DELTA N.V.<br />
Management’s responsibility<br />
Management is responsible for the preparation of the balancesheet, income statement and cash<br />
flow statement in accordance with the same information in the financial statements for the year<br />
ended December 31, <strong>2010</strong> and in accordance with the accounting principles applied in these<br />
financial statements.<br />
Audi<strong>to</strong>r’s responsibility<br />
Our responsibility is <strong>to</strong> express an opinion on the summary financial statements based on our<br />
procedures, which were conducted in accordance with Dutch Law, including the Dutch Standard<br />
on Auditing 870 “Engagements <strong>to</strong> report on summary financial statements”.<br />
Opinion<br />
In our opinion, the balancesheet, income statement and cash flow statement derived from the<br />
audited financial statements of DELTA N.V. for the year ended December 31, <strong>2010</strong> are<br />
consistent, in all material respects, with those financial statements, in accordance with the<br />
accounting principles applied in these financial statements.<br />
Middelburg, June 27, 2011<br />
Deloitte Accountants B.V.<br />
Signed: W.A. de Leeuw RA<br />
31
Financial performance<br />
Consolidated balance sheet as at 31 December <strong>2010</strong><br />
(in EUR 1,000)<br />
Non-current assets<br />
31-12-<strong>2010</strong> 31-12-2009<br />
Intangible assets 419,949 514,878<br />
Property, plant and equipment 977,407 1,032,810<br />
Joint ventures, associates and other investments 521,563 548,271<br />
Loans <strong>to</strong> joint ventures, associates, etc. 13,775 15,797<br />
Other financial assets 22,295 54,468<br />
Deferred tax assets 91,056 88,580<br />
Derivatives 51,574 179,316<br />
Financial assets 700,263 886,432<br />
Total non-current assets 2,097,619 2,434,120<br />
Current assets<br />
Inven<strong>to</strong>ries 14,975 33,040<br />
Trade receivables 310,179 339,778<br />
Current tax assets 61,065 35,067<br />
Work in progress for third parties 0 2,070<br />
Other receivables 43,791 87,745<br />
Derivatives 219,470 272,655<br />
Total receivables 634,505 737,315<br />
Assets held for sale 3,964 0<br />
Total current assets 653,444 770,355<br />
Cash 49,410 59,137<br />
Total assets 2,800,473 3,263,612<br />
32
DELTA upclose<br />
Consolidated balance sheet as at 31 December <strong>2010</strong> (continued)<br />
(in EUR 1,000)<br />
31-12-<strong>2010</strong> 31-12-2009<br />
Shareholders’ equity 1,307,601 1,251,014<br />
Profit for the year (177,787) 7,091<br />
Equity attributable <strong>to</strong> shareholders of DELTA N.V. 1,129,814 1,258,105<br />
Non-controlling interests 53,270 54,369<br />
Group equity 1,183,084 1,312,474<br />
Provisions 95,504 92,538<br />
Pension liabilities 21,874 20,936<br />
Long-term debt 451,007 438,256<br />
Deferred tax liabilities 62,688 60,454<br />
Deferred revenue 68,843 69,944<br />
Other non-current liabilities 161,460 154,975<br />
Derivatives 31,209 186,827<br />
Non-current liabilities 892,585 1,023,930<br />
Trade payables 227,303 283,491<br />
Current tax liabilities 109,796 96,307<br />
Deferred revenue 12,268 14,950<br />
Work in progress for third parties 964 0<br />
Other liabilities 114,467 101,657<br />
Bank borrowings 65,329 96,074<br />
Derivatives 164,677 334,728<br />
Current liabilities 694,804 927,207<br />
Liabilities held for sale 30,000 0<br />
Current liabilities 724,804 927,207<br />
Total equity and liabilities 2,800,473 3,263,612<br />
33
Financial performance<br />
Consolidated income statement<br />
(in EUR 1,000)<br />
<strong>2010</strong> 2009R<br />
Revenue 2,073,051 1,869,441<br />
Cost of sales (1,454,047) (1,294,902)<br />
Gross operating margin 619,004 574,539<br />
Other gains and losses (third parties) 28,618 34,019<br />
Fair value gains and losses on the trading portfolio 3,248 33,912<br />
Gross margin 650,870 642,470<br />
Third-party services 249,759 226,288<br />
Staff costs 197,958 195,778<br />
Depreciation, amortisation and impairment 125,490 111,948<br />
Other operating expenses 12,811 8,080<br />
Total net operating expenses 586,018 542,094<br />
Earnings from operations 64,852 100,376<br />
Share in results of joint ventures and associates 62,993 66,492<br />
Operating result 127,845 166,868<br />
Net finance income (expense) (21,863) (26,875)<br />
Profit before tax 105,982 139,993<br />
Corporate income tax (16,383) (21,559)<br />
Profit after tax from continuing operations 89,599 118,434<br />
Profit after tax from discontinued operations (265,393) (108,300)<br />
Profit for the year (175,794) 10,134<br />
Attributable <strong>to</strong>:<br />
Non-controlling interests 1,993 3,043<br />
Shareholders of DELTA N.V. (177,787) 7,091<br />
DELTA decided in <strong>2010</strong> <strong>to</strong> sell off its solar energy activities. DELTA Biovalue B.V. was also declared insolvent in <strong>2010</strong>. The financial implications, including trading results<br />
of the activities concerned in <strong>2010</strong>, are presented as profit after tax from discontinued operations. The comparative figures for 2009 have been restated accordingly<br />
(as indicated by the suffix ‘R’: 2009R).<br />
34
DELTA upclose<br />
Consolidated cash flow statement<br />
(in EUR 1,000)<br />
<strong>2010</strong> 2009<br />
From operating activities<br />
Earnings from operations (234,221) (29,235)<br />
Proceeds from activities sold off - 51,535<br />
Fair value gains and losses on the trading portfolio (3,248) (33,912)<br />
Adjustment for deferred income (3,783) 9,847<br />
Depreciation, amortisation and impairment 382,251 191,243<br />
Movement in provisions 17,834 (11,730)<br />
Movement in inven<strong>to</strong>ries 10,728 (2,001)<br />
Movement in trade receivables 25,167 39,207<br />
Movement in trade payables (49,028) 118,524<br />
Movement in other receivables/payables 17,450 (10,636)<br />
Other movements (2,907) (2,347)<br />
From operating activities 160,243 320,495<br />
Cash flows arising from dividends received from joint ventures and associates 65,712 30,423<br />
Cash flows from finance income and expense (24,283) (29,500)<br />
Cash flows from taxes on profits (19,802) 4,716<br />
Cash flow from operating activities 181,870 326,134<br />
From investing activities<br />
Acquisition and disposal of intangible assets and property, plant and equipment<br />
(after deduction of cash acquired)<br />
(141,417) (124,791)<br />
Acquisition of investments in subsidiaries and associates and interests in joint ventures<br />
(after deduction of cash disposed)<br />
(14,307) (58,920)<br />
Disposal of investments in subsidiaries and associates and interests in joint ventures 10,435 -<br />
Movement in other financial assets 4,162 206,083<br />
Cash flow from investing activities (141,127) 22,372<br />
From financing activities<br />
Movement in bank borrowings (30,745) (8,317)<br />
Movement in long-term liabilities 30,275 (285,619)<br />
Dividend payments (50,000) (50,458)<br />
Cash flow from financing activities (50,470) (344,394)<br />
Cash flow during the year (9,727) 4,112<br />
Cash as at 1 January 59,137 55,025<br />
Cash as at 31 December 49,410 59,137<br />
Exchange differences - -<br />
Net cash in the consolidated balance sheet 49,410 59,137<br />
The cash flow statement is based on income and expenses and changes in the balance sheet before elimination of assets held for sale and discontinued operations.<br />
As a consequence, direct reconciliation with the balance sheet is not possible, since neither the assets held for sale nor the discontinued activities are included in the<br />
consolidated balance sheet as at year-end <strong>2010</strong>. Nor is there an obvious reconciliation with the income statement since adjustments have been made in the income<br />
statement for all results relating <strong>to</strong> the assets held for sale and the discontinued operations.<br />
35
<strong>Related</strong><br />
<strong>to</strong> <strong>Zeeland</strong><br />
There is a special link between DELTA<br />
and the province, not only because it is<br />
in public ownership, which is becoming<br />
increasingly rare, but also because so many<br />
<strong>Zeeland</strong>ers are cus<strong>to</strong>mers, buying one or<br />
more services from the multi-utility company.<br />
There are few businesses whose links <strong>to</strong> the region<br />
are as close. DELTA is well aware of this and<br />
wants not only <strong>to</strong> contribute <strong>to</strong> the province<br />
at the economic level but also <strong>to</strong> be involved<br />
at the social level.<br />
• Social involvement is essential for a company that has<br />
such close ties <strong>to</strong> the region. But how do you express<br />
that involvement in practice?<br />
> See DELTA’s social significance (page 38).<br />
• ‘Education is a core social function and helps <strong>to</strong> determine<br />
a region’s attractiveness, so we think it’s important <strong>to</strong> invest<br />
in education on a broad front, from secondary vocational<br />
<strong>to</strong> university level’, says HRM Manager Paul van Raaij.<br />
> See Investing in education <strong>to</strong>o (page 44).<br />
• DELTA’s shares are held by the municipalities and province.<br />
How do the managers of those bodies feel about ‘their’ DELTA?<br />
What position should DELTA occupy within the region?<br />
> See DELTA is really important <strong>to</strong> <strong>Zeeland</strong> (page 48).<br />
36
DELTA upclose<br />
7<br />
37
<strong>Related</strong> <strong>to</strong> <strong>Zeeland</strong><br />
7.1 DELTA’s social significance<br />
Rooted in <strong>Zeeland</strong>’s soil, one of the biggest<br />
employers in the province, with a client base<br />
that includes over 95% of <strong>Zeeland</strong> households<br />
and with the Province of <strong>Zeeland</strong> and all<br />
the <strong>Zeeland</strong> municipalities as its shareholders,<br />
DELTA is an integral part of the region.<br />
This forms the basis of DELTA’s social involvement.<br />
38
Brouwersdam, Concert at Sea<br />
DELTA upclose<br />
Public-sec<strong>to</strong>r shareholders are different from other<br />
shareholders such as pension funds and have their own<br />
priorities. Their focus is on preserving local employment<br />
and investing in sustainability and social support.<br />
DELTA’s social involvement is not, however, driven solely<br />
by its shareholders’ preferences: DELTA sees involvement<br />
in <strong>Zeeland</strong> as a logical step.<br />
‘We want <strong>to</strong> give something back <strong>to</strong> our cus<strong>to</strong>mers<br />
and <strong>to</strong> the community’’, says CEO Peter Boerma.<br />
‘And of course it’s important for DELTA that our<br />
shareholders see us investing part of our revenue in<br />
their community and showing that we value and share<br />
<strong>Zeeland</strong>’s qualities. That also engenders goodwill on the<br />
part of <strong>Zeeland</strong>ers and loyalty among our cus<strong>to</strong>mers.’’<br />
DELTA’s own future also benefits from investment in<br />
the community, for example in the labour market, which<br />
is why DELTA invests in education. In <strong>2010</strong>, for example,<br />
DELTA worked with EPZ and COVRA (the Dutch Central<br />
Organisation for Radioactive Waste) <strong>to</strong> introduce a nuclear<br />
energy course at senior secondary vocational education<br />
(MBO) level and higher professional education (HBO) level.<br />
The first moves were also made last year <strong>to</strong> introduce a<br />
new course for energy professionals. Boerma: ‘We are<br />
creating niches in which <strong>Zeeland</strong> educational institutions<br />
can specialise, while at the same time ensuring a future<br />
supply of well-trained staff.’’<br />
DELTA continued <strong>to</strong> pursue its targeted sponsorship policy<br />
in <strong>2010</strong>, after the radical shift of emphasis three years ago.<br />
DELTA formerly supported all kinds of projects, from very<br />
small <strong>to</strong> very large, but <strong>to</strong> little net effect. It was decided<br />
<strong>to</strong> focus on supporting mainly social initiatives, but<br />
external <strong>to</strong> the DELTA organisation, via the DELTA <strong>Zeeland</strong><br />
Fund. DELTA also wanted <strong>to</strong> raise its profile by providing<br />
substantial support for a small number of major events<br />
as principal sponsor.<br />
DELTA was the principal sponsor of three large <strong>Zeeland</strong><br />
events in <strong>2010</strong>: the DELTA Tour <strong>Zeeland</strong> cycling event,<br />
including the DELTA Ride for the Roses, the Film by the Sea<br />
film festival and the DELTAWEEK sailing event. By acting<br />
as principal sponsor, DELTA wanted <strong>to</strong> demonstrate its<br />
involvement and its willingness <strong>to</strong> invest in that role.<br />
In return, DELTA demanded that it be given some input<br />
in<strong>to</strong> the programming of the event.<br />
39
<strong>Related</strong> <strong>to</strong> <strong>Zeeland</strong><br />
Sponsorship of the three events also gave DELTA<br />
an opportunity <strong>to</strong> meet clients there by inviting<br />
major business cus<strong>to</strong>mers <strong>to</strong> opening ceremonies or<br />
competitions and giving domestic cus<strong>to</strong>mers a chance<br />
<strong>to</strong> experience the events. After evaluating the events,<br />
DELTA decided in <strong>2010</strong> that 2011 would be the last year it<br />
would be principal sponsor of the DELTA Tour. This decision<br />
was communicated <strong>to</strong> the organisers in good time <strong>to</strong><br />
enable them <strong>to</strong> consider alternatives. The company will<br />
continue <strong>to</strong> sponsor DELTA Ride for the Roses in 2011.<br />
A new event which DELTA will sponsor in 2011 is the annual<br />
Concert at Sea, held at Brouwersdam.<br />
Support of a quite different order is provided via<br />
the DELTA <strong>Zeeland</strong> Fund, whose object is <strong>to</strong> promote<br />
the vitality of the <strong>Zeeland</strong> community. A contribution<br />
<strong>to</strong> the fund of EUR 500,000 was earmarked for <strong>2010</strong>.<br />
As with DELTA’s role as principal sponsor, this fund<br />
was born of a desire <strong>to</strong> streamline DELTA’s fragmented<br />
sponsorship policy. DELTA initiates projects, but does not<br />
involve itself in organisation or resource allocation.<br />
Of the seven members of the fund’s Board of Trustees,<br />
only one has a link with DELTA. The other six, including<br />
chairman Cees van Liere, come from all parts of <strong>Zeeland</strong><br />
and have expertise in at least one of the four spheres<br />
of interest: sport and leisure, nature and environment,<br />
health and welfare and art and culture. The maximum<br />
grant is EUR 25,000 and support is limited <strong>to</strong> three years.<br />
To qualify, the application must relate <strong>to</strong> an innovative<br />
initiative that serves the <strong>Zeeland</strong> community.<br />
A detailed description of all the criteria can be found<br />
at www.deltazeelandfonds.nl.<br />
DELTA <strong>Zeeland</strong> Fund received some 200 applications<br />
in <strong>2010</strong>, of which over one-third were accepted.<br />
Because DELTA operates a fairly restrictive acceptance<br />
policy, the quality of the projects has improved.<br />
Before a formal application is submitted, a quick scan<br />
can be performed on the website <strong>to</strong> indicate whether<br />
a project meets the basic criteria. Applications are<br />
assessed by the Board of Trustees independently,<br />
without consulting DELTA.<br />
When it became apparent from applicants’ responses<br />
that the DELTA <strong>Zeeland</strong> Fund did not have a high enough<br />
profile, the fund launched the Together<strong>Zeeland</strong> project<br />
in November <strong>2010</strong> <strong>to</strong> give more active support <strong>to</strong> the civil<br />
society. A linked competition was organised under the<br />
slogan ‘Help! I have a good idea’, with a cash prize of<br />
EUR 50,000. The prize was presented <strong>to</strong> the winner at<br />
the Inspiration meeting on 23 March 2011.<br />
DELTA Tour <strong>Zeeland</strong>, Goes<br />
40
DELTA Tour <strong>Zeeland</strong>, <strong>Zeeland</strong>brug<br />
DELTA upclose<br />
41
<strong>Related</strong> <strong>to</strong> <strong>Zeeland</strong><br />
A festival<br />
of film for,<br />
by and<br />
with young<br />
people<br />
www.filmbythesea.nl<br />
In conjunction with DELTA, we developed a programme<br />
designed mainly for young people. All <strong>Zeeland</strong> children<br />
in primary and secondary education can take part in<br />
the educational programme. They have a choice of films<br />
appropriate <strong>to</strong> their age and suitable for Film by the Sea.<br />
DELTA sponsors their bus travel. We also hold the DELTA Shorts<br />
competition for short films made by young people from<br />
all over the Netherlands, for a cash prize of EUR 1,000<br />
– the DELTA Young Talent Award. That part of our programme<br />
is continuing <strong>to</strong> grow in both quality and quantity.<br />
It’s turning in<strong>to</strong> a big event. We had close <strong>to</strong> 30 entries<br />
in <strong>2010</strong>, of which 17 were selected. And we are of course<br />
delighted with the DELTA pavilion, a fine venue that we can<br />
use for many activities, now the festival is<br />
getting <strong>to</strong>o big <strong>to</strong> fit in<strong>to</strong> the cinema.<br />
Leo Hannewijk, Direc<strong>to</strong>r of Film by the Sea Festival<br />
The DELTA Ride for<br />
the Roses is a way<br />
of contributing actively <strong>to</strong> the<br />
work of the Dutch Cancer Society<br />
(KWF). Cycling through the beautiful<br />
<strong>Zeeland</strong> countryside keeps you fit while<br />
helping an important good cause. Thanks <strong>to</strong><br />
the sponsorship provided by DELTA, which bears all the<br />
www.deltaridefortheroses.nl<br />
organisation costs, all the money<br />
raised can go <strong>to</strong> KWF. In <strong>2010</strong>,<br />
that was EUR 66,416. The DELTA<br />
Ride for the Roses is a growing<br />
success in the <strong>Zeeland</strong> cycle <strong>to</strong>uring<br />
calendar. Last year, 3,400 cyclists <strong>to</strong>ok part,<br />
as against 2,800 the year before. This year we’re<br />
hoping for 5,000.<br />
Kees Bal, Chairman of<br />
DELTA Ride for the Roses<br />
42<br />
We organised the fortieth DELTAWEEK sailing event in <strong>2010</strong>, with DELTA as our<br />
principal sponsor for the second year. We’re a perfect match. DELTA has added<br />
fresh momentum <strong>to</strong> DELTAWEEK, as we saw in <strong>2010</strong> in a growing number<br />
of entries. As a sailing event with a strong <strong>Zeeland</strong> character,<br />
local links are important. That’s also what DELTA stands for.<br />
That was evident last year during the Netherlands-Brazil World<br />
Cup match, which we watched on a big screen in the marquee,<br />
and the successful concert by singer Jeroen van der Boom.<br />
We plan <strong>to</strong> keep growing in 2011.<br />
Gijs Pleyte, DELTAWEEK Executive Committee member<br />
www.deltaweek.nl
Daan de Meester,<br />
General Coordina<strong>to</strong>r, Stichting Hoogvliegers<br />
High fliers in <strong>Zeeland</strong><br />
On Saturday, 5 June, we <strong>to</strong>ok a group of chronically sick children<br />
flying for the first time. Around 75 children with their parents, carers,<br />
brothers and sisters came <strong>to</strong> <strong>Zeeland</strong> Airport at Arnemuiden. Once in<br />
the air, we let them pilot the plane themselves. The day was a great<br />
success. It was a DELTA staff member who <strong>to</strong>ld us about the DELTA<br />
<strong>Zeeland</strong> Fund while we were making preparations and our application<br />
was accepted. After evaluating the event, DELTA <strong>Zeeland</strong> Fund<br />
informed us that they wanted <strong>to</strong> help again in 2011. DELTA staff will<br />
help us with the organisation on a<br />
voluntary basis. It will be a great day.<br />
www.stichtinghoogvliegers.nl<br />
DELTA upclose<br />
quo<br />
tes<br />
The <strong>Zeeland</strong> Talent Fund was set up several years ago in conjunction with<br />
DELTA <strong>to</strong> reduce the fragmentation of sports sponsorship. Via the <strong>Zeeland</strong><br />
Talent Fund, people who have achieved a<br />
given status in their sport, as measured<br />
against national criteria, can<br />
apply for extra financial<br />
support, for example <strong>to</strong> fund<br />
training or purchase better<br />
equipment. It’s attracting a<br />
lot of interest. The number of<br />
talented individuals receiving<br />
support has grown from 20 in 2007 <strong>to</strong> almost a hundred in <strong>2010</strong>. Fortunately,<br />
the DELTA <strong>Zeeland</strong> Fund helped us set up the <strong>Zeeland</strong> Talent Fund properly.<br />
It’s now part of the <strong>Zeeland</strong> Olympic Network for <strong>to</strong>p athletes.<br />
www.olympischnetwerkzeeland.nl<br />
Marja Noordhoek,<br />
Direc<strong>to</strong>r of Sport<strong>Zeeland</strong><br />
The Borsele Sloepoort Cup has included a <strong>to</strong>urnament for G soccer teams since<br />
September <strong>2010</strong>. In the Dutch name, ‘G’ stands for ‘integrated’, which means teams<br />
of young people who can’t play regular soccer because of some mental or physical<br />
disability. The <strong>to</strong>urnament was a great success. No fewer than 16 teams from <strong>Zeeland</strong>,<br />
West Brabant, the Rotterdam area and Belgium <strong>to</strong>ok part, playing on the SV Nieuwdorp<br />
pitches. Everyone enjoyed it. It was really impressive. The DELTA <strong>Zeeland</strong> Fund was<br />
enthusiastic about this <strong>to</strong>urnament, which was the first of its kind in <strong>Zeeland</strong>, and<br />
provided financial support. The fund has already promised <strong>to</strong> support us in 2011!<br />
Peter de Vos, Competition Coordina<strong>to</strong>r, SV Nieuwdorp and Borsele Sloepoort Cup<br />
Soccer<br />
for all<br />
43
<strong>Related</strong> <strong>to</strong> <strong>Zeeland</strong><br />
7.2 Investing in Education <strong>to</strong>o<br />
How do you keep educational provision in <strong>Zeeland</strong> up <strong>to</strong> standard<br />
when the population is shrinking? Would companies be able<br />
<strong>to</strong> attract suitable staff if there were no longer adequate access<br />
<strong>to</strong> education in our province? Or would they move <strong>to</strong> a region<br />
that is better provided? Government, education and business<br />
are working <strong>to</strong>gether <strong>to</strong> avoid being caught in such a<br />
downward spiral. DELTA is participating in various initiatives.<br />
‘In education <strong>to</strong>o, what’s good for <strong>Zeeland</strong> is good for us.’<br />
Rotterdam’s front garden, Antwerp’s back garden<br />
Education provision in <strong>Zeeland</strong> is under pressure from a combination of population ageing and falling<br />
population numbers. An active policy is needed <strong>to</strong> maintain standards of healthcare, education and<br />
general welfare. As Rotterdam’s front garden and Antwerp’s back garden, the <strong>Zeeland</strong> region had plenty<br />
of potential. By investing and promoting cooperation with Flanders, the tide can be turned.<br />
At the request of the Ministry of Education, Taskforce <strong>Zeeland</strong> issued a report on education provision<br />
in <strong>Zeeland</strong>, with recommendations, in August <strong>2010</strong>. More information can be found at:<br />
www.onderwijsarbeidsmarkt.nl.<br />
DELTA invests over half a million euros a year in various education projects, mostly at the professional<br />
education level. DELTA works inter alia with the <strong>Zeeland</strong> Regional Training Centre, the Westerschelde Regional<br />
Training Centre, Hogeschool <strong>Zeeland</strong>, the Roosevelt Academy and the Delft University of Technology.<br />
44
DELTA upclose<br />
‘There is clearly a labour shortage in <strong>Zeeland</strong>. It’s not always easy <strong>to</strong><br />
recruit the right people,’ says Paul van Raay, DELTA’s HRM Direc<strong>to</strong>r.<br />
‘By helping <strong>to</strong> deliver good and varied education, we can ease the<br />
problem, so that’s what we’re doing. It’s not for nothing that our<br />
business strategy is entitled ‘Good for <strong>Zeeland</strong>’. We believe it’s<br />
important <strong>to</strong> keep education up <strong>to</strong> standard in the province. That will<br />
benefit the region as a whole, as well as serving our own interest.’<br />
Van Raay briefly explains why DELTA is supporting education in<br />
<strong>Zeeland</strong>. ‘Education is core social function and is a fac<strong>to</strong>r that affects<br />
the attractiveness of a region, which is why we believe it is important<br />
<strong>to</strong> invest over a broad front, from senior secondary vocational (MBO)<br />
level <strong>to</strong> university. The emphasis is on technical vocational education<br />
because of the nature of our business.’<br />
As well as joint educational projects, DELTA also provides opportunities<br />
for training and professionalisation in the form of internships and work<br />
experience. Each year, dozens of senior secondary vocational education<br />
(MBO), higher professional education (HBO) and university students<br />
spend time at DELTA as interns, working on research projects and other<br />
tasks, and many young people gain work experience at DELTA which<br />
improves their opportunities on the labour market. Van Raay: ‘We also<br />
provide comprehensive professional development opportunities for<br />
our own staff. Through DELTALENT, our internal training department,<br />
facilities are provided for staff <strong>to</strong> continue their personal development.<br />
Every year, our management trainee programme turns recent graduates<br />
in<strong>to</strong> all-round professionals.’<br />
45
<strong>Related</strong> <strong>to</strong> <strong>Zeeland</strong><br />
Energy professionals,<br />
from MBO <strong>to</strong> university<br />
DELTA is working with the <strong>Zeeland</strong> Regional Training<br />
Centre, Hogeschool <strong>Zeeland</strong> and Delft University of<br />
Technology <strong>to</strong> develop a course for energy professionals.<br />
The course will provide a progressive line of study which<br />
will enable students <strong>to</strong> pursue an education programme<br />
that starts with MBO and ends at university.<br />
The course, which will start in September 2011, will<br />
produce professionals who will be able <strong>to</strong> deploy their<br />
expertise in fuels, energy markets, process technology<br />
and commercial management within many departments<br />
of an energy company.<br />
Green economy<br />
The object of Bio Base Europe is <strong>to</strong> promote a<br />
green economy. With fossil fuels becoming more<br />
scarce, we need <strong>to</strong> look at alternatives for plastics<br />
and traditional fuels, for example. Bio Base Europe<br />
has launched a project that includes a training centre<br />
for process opera<strong>to</strong>rs in green bio-based industry.<br />
The building will be ready in 2011. The <strong>to</strong>tal project<br />
will cost EUR 21 million, which has been provided<br />
by government, the education sec<strong>to</strong>r and industry,<br />
including DELTA.<br />
46
DELTA upclose<br />
Nuclear<br />
technology Technology<br />
There are several companies in <strong>Zeeland</strong> working in<br />
nuclear technology and there are plans <strong>to</strong> build a new<br />
nuclear power station in the province, so demand for<br />
technicians with expertise in this field will increase.<br />
For that reason, business and education have joined<br />
forces <strong>to</strong> develop secondary (minor) courses at all<br />
levels, from MBO <strong>to</strong> university. Having completed<br />
the course, these young professionals will be eligible<br />
for recruitment not just by DELTA, but also by<br />
EPZ, COVRA (the Dutch Central Organisation for<br />
Radioactive Waste) and Veiligheidsregio <strong>Zeeland</strong><br />
(the <strong>Zeeland</strong> regional safety authority).<br />
Truck<br />
Climate trolley<br />
Learning through playing: for young children,<br />
that’s the best way <strong>to</strong> get the sustainability message<br />
across. In Schouwen-Duiveland, primary school<br />
pupils can take part in a ‘climate race’, a race <strong>to</strong><br />
control global warming played in the DELTA Climate<br />
Forest at Ecoscope. DELTA funds the trolleys<br />
holding the materials used in the game.<br />
Via the ‘Sun at School’ project, DELTA is also<br />
funding solar panels for primary schools,<br />
which not only generate some of<br />
the school’s power requirements<br />
but can also be used in lessons<br />
on renewable energy.<br />
47
<strong>Related</strong> <strong>to</strong> <strong>Zeeland</strong><br />
7.3 “DELTA is really important <strong>to</strong> <strong>Zeeland</strong>”<br />
What do shareholders think about DELTA being publicly owned?<br />
Do they approve of the company’s multi-utility approach?<br />
How do they really feel about nuclear energy?<br />
Municipal and provincial officers give their views<br />
on ‘their’ DELTA below.<br />
Municipality of Terneuzen<br />
‘I think DELTA will have a good future<br />
based on its multi-utility strategy.<br />
That doesn’t mean our municipal<br />
council will not continue <strong>to</strong> moni<strong>to</strong>r<br />
the business closely. Debates on<br />
public shareholdership and dividend<br />
policy will continue <strong>to</strong> be part of that.<br />
I think the company has become<br />
more transparent over the past five<br />
years and the shareholders are<br />
taking a more professional approach<br />
<strong>to</strong> ‘their’ DELTA. It used <strong>to</strong> be more<br />
a matter of unquestioning loyalty.<br />
The shareholders have always<br />
taken a constructive approach, but<br />
it’s now increasingly in the form of<br />
constructive criticism. That kind<br />
of stance benefits both the company<br />
and our region.’<br />
Municipality of<br />
Schouwen Duiveland<br />
‘DELTA is no longer exclusively<br />
<strong>Zeeland</strong>-focused, because the<br />
company is also pursuing its<br />
multi-utility strategy outside the<br />
province, but it has lost none of its<br />
<strong>Zeeland</strong> common sense. I see the<br />
write-downs on the solar cell and<br />
biodiesel businesses as evidence of<br />
that common-sense approach.<br />
It was a <strong>to</strong>ugh decision, but it’s good<br />
that DELTA is focusing on its core<br />
businesses: energy, waste and water.<br />
‘Whether it is big enough at its<br />
present size, only time will tell.<br />
I know that <strong>Zeeland</strong> people are<br />
proud that DELTA has its roots in<br />
the province and the company’s<br />
engagement with the community is<br />
one of its strengths.’<br />
Province of <strong>Zeeland</strong><br />
‘DELTA is really important <strong>to</strong><br />
<strong>Zeeland</strong>, not just because it creates<br />
employment but also because it’s<br />
a client of many businesses in this<br />
region. Through its involvement in<br />
education and its cultural and sports<br />
sponsorship, DELTA demonstrates its<br />
ties <strong>to</strong> the region and that’s important.<br />
For <strong>Zeeland</strong>ers, DELTA means<br />
convenience: one supplier for many<br />
services. You don’t get that anywhere<br />
else – it’s what makes DELTA unique.’<br />
‘The multi-utility concept is a strong<br />
card in DELTA’s hand, but it does<br />
potentially involve risk because it<br />
means operating on several fronts<br />
simultaneously, and that makes<br />
heavy demands on the organisation<br />
and management. The plans for<br />
a new nuclear power station are<br />
crucially important <strong>to</strong> DELTA’s future.<br />
I’m in favour, provided a convincing<br />
business case can be made.<br />
The events in Japan have <strong>to</strong> be<br />
taken very seriously, because safety<br />
is paramount.’<br />
Jaap Bos, alderman<br />
Ad Verseput, alderman<br />
Cees van Beveren, executive councillor<br />
© H. W. Fluks, http,//borden.plaatsengids.nl/<br />
48
DELTA upclose<br />
Municipality of Goes<br />
‘DELTA is a large company that’s important <strong>to</strong> <strong>Zeeland</strong> in general and<br />
Goes in particular. We recently welcomed DELTA Netwerkbedrijf <strong>to</strong> our<br />
municipality. DELTA Infra already had a base here.’<br />
‘A company has <strong>to</strong> make a profit and must always focus on the bot<strong>to</strong>m<br />
line. While I agree with DELTA’s decision <strong>to</strong> withdraw from the unprofitable<br />
solar cell and biodiesel businesses, that decision has opened up a debate<br />
within the municipality on the course DELTA is pursuing. Our job is<br />
<strong>to</strong> moni<strong>to</strong>r the company’s progress and explain its business strategy<br />
<strong>to</strong> the people of Goes. I think it’s good that the shareholders are working<br />
<strong>to</strong>gether more and keeping the company under constructive scrutiny.’<br />
Loes Meeuwisse, alderman<br />
49
<strong>Related</strong> <strong>to</strong> <strong>Zeeland</strong><br />
Municipality of Vlissingen<br />
‘DELTA is at the centre of the<br />
<strong>Zeeland</strong> community – as a supplier,<br />
an employer, a knowledge centre and,<br />
at the social level, a sponsor of<br />
cultural and community activities.<br />
The company charts its own course<br />
and the multi-utility strategy helps it<br />
stay on it. The challenge is <strong>to</strong> maintain<br />
that course in the future.’<br />
‘There’s bound <strong>to</strong> be some tension<br />
between a public authority and<br />
a commercial enterprise, because<br />
we have different responsibilities.<br />
But the transparent way DELTA runs<br />
its business gives me confidence in<br />
its policies. That includes the plans<br />
for a new nuclear power station.<br />
I think it’s good that these plans are<br />
being made, because we need nuclear<br />
power if we are <strong>to</strong> achieve energy<br />
sustainability. The important thing is<br />
<strong>to</strong> draw up the business case for<br />
a new power station.’<br />
Jacques Suurmond, alderman<br />
Municipality of Noord Beveland<br />
‘I agree with the course DELTA has<br />
chosen. It’s significant that DELTA<br />
is withdrawing from the solar cell<br />
business and shifting the emphasis<br />
<strong>to</strong> waste management and energy.<br />
Waste management is a stable<br />
business and I’m pleased that DELTA<br />
is putting its money on nuclear<br />
energy. Size is important – you have<br />
<strong>to</strong> be big enough <strong>to</strong> carry weight at the<br />
international level – so I’m glad DELTA<br />
is developing activities elsewhere.’<br />
‘I think it’s important that the<br />
company plays an active role in<br />
the <strong>Zeeland</strong> community and I know<br />
it is appreciated. We are kept well<br />
informed about the company’s<br />
activities at a general level, and it’s<br />
general information I have <strong>to</strong> rely on<br />
<strong>to</strong> do my job. So it’s important that<br />
the new Supervisory Board oversees<br />
policy with a commercial eye and<br />
keeps the business on a healthy<br />
course.’<br />
Henny van Kooten, mayor<br />
Municipality of Hulst<br />
‘DELTA is our company and we have<br />
<strong>to</strong> cherish it. It’s quite obvious<br />
<strong>to</strong> me that DELTA’s multi-utility<br />
strategy is the key <strong>to</strong> continuity:<br />
energy alone is not enough. If only<br />
for the employment it provides,<br />
the expertise it possesses and the<br />
policy of community involvement it<br />
pursues through sponsorship, it’s<br />
important that the company remains<br />
viable in this form and that public<br />
shareholdership is preserved.<br />
We don’t have <strong>to</strong> follow the same path<br />
as other places in the Netherlands if<br />
it’s not in <strong>Zeeland</strong>’s interest.’<br />
‘I’m in favour of a second nuclear<br />
power station. Hulst lies between<br />
Doel and Borsele, and we’re at home<br />
with nuclear energy. I see nuclear<br />
energy as the best option while<br />
renewable sources are still reliant on<br />
grants and I’m confident that COVRA’s<br />
waste s<strong>to</strong>rage facilities are safe.’<br />
Jan-Frans Mulder, mayor<br />
50
DELTA upclose<br />
Municipality of Goedereede<br />
‘DELTA is very clearly ‘one of us’.<br />
There are close ties between the<br />
company and the shareholders,<br />
and I like that. DELTA is accessible<br />
and has invested in a good<br />
information system. Last year,<br />
our council visited Middelburg and<br />
the new Sloe power station. Visits like<br />
that are opportunities for dialogue<br />
and provide useful information.’<br />
‘The multi-utility strategy is a little<br />
unusual, but I think it suits our region.<br />
It emphasises once again that DELTA<br />
exists <strong>to</strong> serve the people, both as<br />
a provider of several services and<br />
as an employer and sponsor of<br />
community activities.’<br />
Peter Feller, alderman<br />
51
<strong>Related</strong><br />
<strong>to</strong> <strong>Zeeland</strong><br />
Annual report <strong>2010</strong><br />
DELTA NV | Poelendaelesingel 10 | 4335 JA Middelburg | The Netherlands | T +31 (0)118 88 20 00 | F + 31 (0)118 88 21 00 | E info@DELTA.nl | W www.DELTA.nl<br />
Entered in the trade register of the Chamber of Commerce in Middelburg under number 22031457