Annual Report 2011

annualreport
Results 2011

2
Waste management plant, Doel (Belgium)

Annual Report
1. Profile and key figures 5
2. Focus and consolidation 7
3. Financial performance 11
4. Grids and networks 15
5. Energy19
6. Waste management 25
7. Corporate governance 27
8. Risk and risk management 29
9. Report of the Supervisory Board 31
10. Personal particulars 33
11. Financial statements 37
3

DELTA is an independent multi-utility company
specialising in grids and networks, energy and
waste management. Most of its shares (96.55%)
are held by municipal and provincial authorities
in the Province of Zeeland. DELTA’s head office is
located in Middelburg, the Netherlands.
The company employs around 3,000 people.
4

DELTA Annual report 2011
Profile
and key figures 1
Grids and networks
DELTA Netwerkbedrijf (DNWB) and DELTA Infra form a part of
the Networks division. DNWB is the grid operator for Zeeland
Province and performs its statutory tasks autonomously within
the DELTA organisation. It is responsible for managing the
regional gas and electricity distribution grids. Grid construction
and maintenance is entrusted to DELTA Infra. DELTA Infra is also
responsible for constructing and servicing the water mains
network operated by Evides and DELTA’s cable network.
Its other areas of expertise include high-voltage applications
and measurement technology.
Key figures 2011 2010
Revenue 2,185 2,073
Electricity supply 1,002 1,073
Gas supply 415 312
Electricity & gas transmission 113 101
Cable, Internet, telecommunication 83 83
Waste management 509 462
Other 63 42
x EUR million
Energy
In addition to electricity generation and energy trading,
DELTA supplies gas and electricity to private and business
customers. DELTA serves the consumer market in Zeeland
as a provider of digital services (Internet access, telephony,
TV and radio signals) as well as energy and, through its share
interest in Evides, as a water supplier. Its multi-utility approach
has enabled DELTA to secure a large share of these markets
in Zeeland.
Waste management
All the waste management operations have been brought
together in DELTA’s subsidiary Indaver, in which it owns 75% of
the shares. Indaver focuses on the public sector (mainly in the
Netherlands, Belgium and Ireland) and industrial companies
(North-West Europe). Most of the waste is processed at
Indaver’s own facilities, but some is treated at other plants.
The company uses a variety of waste treatment methods,
including recycling, biomass production and waste-to-energy
(energy produced from waste incineration).
Fuel mix in 2011: supplied to consumers and businesses
Coal 22.6%
Natural gas 46.6%
Other 2.5%
Carbon neutral 28.3%,
of which Nuclear 18.0%
Renewable 10.3%
of which Wind 2.4%
Solar 0.0%
Hydro 2.3%
Biomass 5.6%
5

In the autumn of 2010, DELTA moved back to focus on its core activities –
grids and networks, energy, and waste management. Its organisational
model is based on a logical clustering of activities within those three
business segments. Management responsibilities are taken care of
within the three core segments, as close to the workplace as possible.
Activities unrelated to the three segments have been sold off.
We decided, for example, to discontinue all of our solar energy
operations. This decision was implemented in 2011. In July, solar
cell manufacturer Solland Solar, based in Heerlen, was sold in a
management buyout. Other activities in the solar energy market were
also discontinued in the course of 2011.
6
Biomass processing plant, Moerdijk

DELTA Annual report 2011
Focus
and consolidation 2
Business and economic basis strengthened
In 2011 we worked hard to improve DELTA’s financial structure.
Our credit rating upgrade (from BBB to BBB+) shows that
this effort has inspired trust and confidence. Rating agency
Standard & Poor’s announced the upgrade in June, citing
DELTA’s solid performance in energy, water and waste
management as the main drivers. Other favourable factors
included our restrictive investment policy, strong focus on
working capital management, cost reductions, and ongoing
efficiency programme.
Margins under pressure
DELTA reported a satisfactory profit on ordinary activities
for the first half of the year, with energy operations performing
in line with what were less favourable expectations, due mainly
to relatively low electricity prices. The fall in prices was caused
by existing overcapacity in northwestern Europe.
The overcapacity situation coincided, however, with an
economic downturn in Europe and buoyant economic growth
in Asia and South-America. As a result, fuel prices in Europe
remained elevated. These factors combined to put considerable
pressure on our margins. The decline in the energy segment
was offset by better-than-expected results in the waste
management and grid and network segments. Water company
Evides also performed very well in 2011.
The grid operator will continue to be a part of DELTA for the time
being. The Dutch Supreme Court has deferred final judgment
pending a preliminary ruling from the European Court of Justice.
Nuclear energy
DELTA regards nuclear energy as an important source of CO 2
-low
electricity on our way to a society that will largely be making
use of renewable energy. Clearly, this requires investment
conditions that inspire trust and confidence, and political
backing. Because there is not enough political support as yet,
the plans for a new nuclear power plant have been postponed
for the time being.
In 2011 there was also news involving the existing nuclear
power station in Borssele, with DELTA increasing its share in
the plant’s operator N.V. EPZ from 50% to 70%. During the
year, the parties involved – Essent, RWE and DELTA – reached
agreement on the issue of ownership of the nuclear power
plant. As a majority shareholder, we can now adequately
protect the public interest in the nuclear power station.
Value for money
in 2011 DELTA reinforced its leading position as a service
provider. Several independent agencies praised the company’s
energy and Internet access services. The Dutch Consumer
Association monitors the quality of Internet service providers
through a user panel, with ten thousand of its members
reporting their experiences once every two months. On the
basis of this survey, the Association wrote: “Just as it did last
time, ZeelandNet tops the list with a score of 8.2. The provider
has been achieving consistently higher scores than those
that come after – Solcon, Tele2, and XS4All – all of which
scored a 7.7.” In 2011 substantial investment was also made in
infrastructure quality. To enable faster connections and deliver
new services, much of the technical backbone of the Zeeland
network was upgraded in 2011. Work on the last section will be
completed in 2012.
7

2. Focus and consolidation
In addition to high service levels, we are also keen to charge
favourable energy rates to consumers in Zeeland. In November
we announced our new rates for 2012. Compared with our major
competitors (Eneco, Nuon, and Essent), we offer the lowest
prices.
Low CO 2
emissions
In 2010 DELTA’s carbon dioxide emissions averaged 0.33 tons
per megawatt hour. Energy companies in the Netherlands emit
an average of around 0.40 tons of CO 2
per MWh. These figures
were published in our corporate social responsibility (CRO)
report on 11 November 2011 – Sustainability Day. Our carbon
dioxide emissions are low because we use nuclear energy and
biomass.
The coal-fired power station in Borssele co-fires biomass
(20% maximum), while the biomass power station in Moerdijk
fully operates on chicken manure. DELTA also generates
electricity with low carbon dioxide emissions, using wind
energy and CHP. In our first CSR report, we account for our
policy choices and strategy. In addition to environmental
aspects, the report also looks at our position in society and
our social policies.
Outlook
In 2012 revenue is likely to increase due to the acquisition of
the additional 20% share interest in N.V. EPZ. This is expected
to be offset by lower earnings on energy sales due to narrowing
margins caused by lower electricity prices and higher fuel
prices worldwide.
We wish to retain our existing energy retail customer base.
The company has a substantial market share in Zeeland.
The challenge is to maintain that share. We intend to do so by
offering a variety of utility services. The launch of new digital
TV and mobile telephone services will boost revenue from the
multimedia segment. DELTA Corporate is expected to show
steady growth, as contracts are renewed and margins
closely monitored.
Unlike the domestic waste market, the industrial waste market
is sensitive to economic downturns and upturns.
The growing re-use of materials and reduction in waste are
likely to dampen the demand for waste treatment plant.
On the upside, Indaver’s newly constructed waste treatment
plan in Co. Meath, Ireland, and the Medipower medical
waste treatment plant in Antwerpen, Belgium, will lead
to higher sales.
8

DELTA Annual report 2011
The grids and networks segment is also expected
to perform well. DELTA Netwerkbedrijf is likely to report better
results, if only because it will not have to incur the level of costs
experienced in recent years as a result of the Independent
Grid Operation Act.
DELTA remains committed to controlling its cost base and
strengthening its core activities – energy, waste, and grids and
networks. Due to unfavourable market conditions, particularly
in the energy market, we expect to end 2012 with a lower profit
on ordinary activities.
DELTA will continue to pursue the policy to further improve the
internal processes with a view to providing first-rate services
to our customers. ‘Operational Excellence’ should lead to
products that meet the needs of our customers and provide
value for money. Expanding and implementing our multi-utility
strategy will not only make us stand out from the competition,
but also allow us to better connect with our customers.
This strategy, and our diversified product portfolio, should
enable the company to withstand the unfavourable market
conditions in the next few years.
Frank Verhagen
CEO
Frank Verhagen, CEO
9

2011 was a good year for DELTA, despite the economic slowdown in the
consumer and industrial markets.
Falling electricity prices and rising fuel prices led to a substantially lower profit
on ordinary activities in the energy segment in 2011, whereas profit on ordinary
activities in the waste management and grids and network segments improved
markedly. Corporate expenses were down more than 45% on the previous year,
partly due to non-recurring items recognised in 2010 (EUR 25 million).
In 2011 DELTA acquired an additional 20% share interest in N.V. EPZ, generating
a one-off book profit, offset by an increase in deferred tax liabilities.
10
Windturbines near Kreekrak, Zeeland

DELTA Annual report 2011
Financial
performance3
Revenue and profit
During the year, revenue from continuing operations rose by
around 5% to just under EUR 2.2 billion. The rise reflected
higher gas sales and revenues and an increase in revenue from
waste management operations of well over EUR 50 million.
The satisfactory performance of the waste business was driven
by high incineration capacity usage, and the commissioning
of the newly-constructed incineration plant in Ireland.
DELTA successfully improved its gross margin by several
millions of euros, entirely due to the increase in revenue from
its waste business. Added to the pressure on gross margins
in the energy business, the value of our trading portfolio
decreased by EUR 13 million. In 2010 the trading portfolio
made a positive contribution of more than EUR 3 million.
The increase in gross margin from the waste business mirrored
an increase in waste operating expenses. Due to the ongoing
focus on cost control and efficiency improvements, and lower
impairments compared with 2010, net operating expenses
were down nearly EUR 8 million on last year.
The number of employees increased only slightly to 2,960
FTEs at year-end 2011 (2010: 2,927 FTEs), as a result of the
commissioning of the waste incineration plant in Ireland,
partly offset by strict recruitment policies and efficiency
programmes implemented elsewhere at the company.
Our share of profits in joint ventures and associates rose
substantially in 2011, mainly driven by the book profit we
made on acquiring the additional share interest in N.V. EPZ.
Due to electricity price developments, our power stations
(EPZ, Elsta, Sloe, BMC, wind farms, and CHP plants) operated
below capacity, which led to lower net profits (EPZ, Elsta)
or a net loss (Sloe) compared with 2010. Moreover, provisions
were made for loss-making contracts in the energy business.
These provisions are recognised in this section because of
the causal link with the entities in question.
In 2011 waste incineration companies Sleco and AZN reported
better results than in 2010, due to high capacity usage.
Water company Evides reported a considerable one-off profit
after completing a number of major projects.
The cash flow from operating activities improved approximately
EUR 30 million compared with 2010. The additional investment
expenditure on the newly constructed plant in Co.
Meath, Ireland, and the purchase of the 20% interest in N.V. EPZ
led to a higher cash flow from financing activities. As a result,
external borrowing costs were up more than EUR 2.5 million
on the previous year.
Following the decision to sell the company’s solar energy
operations, the corresponding assets and liabilities were
written down in full in 2010. The ensuing financial implications,
the profit on ordinary activities for 2010, and the expected sales
proceeds were recognised in ‘Post-tax profit on discontinued
operations.’ Operating expenses were recognised in 2011 to
the extent that they arose in the period until the discontinuance
and/or sale of these operations. The same applies to
the redundancy costs incurred in providing a social safety net.
All this led to a net profit for 2011 of EUR 82.7 million, available
to DELTA N.V.’s shareholders.
11

3. Financial performance
Cash flow and investment
In 2010 DELTA reported a net loss, mainly due to write-downs
in its solar business. Because this involved only limited cash
outflows, the negative effect of this decision in 2010 was more
than offset by the positive contribution made by ‘Depreciation
and amortisation’. In 2011, however, cash outflows were
necessary in relation to the solar business in order to fund
the provisions made in 2010 and the ordinary operating
activities in 2011. These cash outflows are recognised in
‘Movements in other receivables/payables’ and
‘Other movements.’
Investments in tangible and intangible fixed assets
(EUR 165 million) increased by around EUR 24 million compared
with 2010 (EUR 141 million), mainly driven by the construction of
a new incinerator (EUR 51 million). Other expenditure concerned
regular investments to expand and replace operating
equipment and grids and networks.
Investments in group companies and associates primarily
concerned the purchase of the additional 20% share interest
in EPZ.
The net cash flow resulting from these movements led to an
increase in the company’s net debt position by EUR 130 million
compared with 2010.
Financial position and solvency
In 2011 net realised gains stood at EUR 54.3 million. As result
of these gains, coupled with the increase in value of the put
option (EUR 8 million) and the dividend payout for 2010
(EUR 50 million), shareholders’ equity remained virtually
unchanged.
The balance sheet increase arising from the purchase of
the additional 20% interest in EPZ and higher trading activity
(debtor/creditor position and derivates exposure) led to
a reduction in DELTA Group’s solvency ratio to 36.7%
(2010: 42.2%).
Prospects for 2012
In 2012 we will continue to focus on cost control and efficiency
improvements so as to be able to withstand negative market
conditions. Margins are expected to remain under pressure
over the next few years, due to lower energy prices and elevated
fuel prices. Considering that several power stations are still
under construction, overcapacity is unlikely to be resolved in
the near future. We therefore believe that the sector as a whole
is facing difficult years ahead. In addition to improving the
profitability of our three core segments, we will continue
to work to improve the company’s financing structure by
matching long-term investment with long-term funding and
through other measures.
On balance, DELTA’s financial performance was satisfactory
in 2011 – adjusted for the expansion of its share interest in
EPZ, its debt position improved in 2011. The company also
paid EUR 50 million in dividends, recognised long-term cash
outflows that had been provided for in 2010, and completed
the construction of the waste incineration plant in Co. Meath,
Ireland.
12

DELTA Annual report 2011
13

In 2011 the number of outage minutes in Zeeland was lower
than in the rest of the country: the average outage time was
a little under 15 minutes, compared with a national average
of well over 20 minutes. Homes, businesses and industrial
companies can count on a reliable supply of energy, 24 hours
a day, 365 days a year. The close cooperation between the
grid operator (DELTA Netwerkbedrijf) and the construction and
maintenance division (DELTA Infra), the relatively limited size
of both entities, and their in-depth knowledge of the regional
grids and networks have all contributed to this success.
14
Suntrackers, near Biobase Europe, Terneuzen

DELTA Annual report 2011
Grids
and networks 4
DELTA Netwerkbedrijf (DNWB) occupies an independent
position within the DELTA organisation, its independent
status being ensured by law. DNWB provides safe and secure,
dependable and efficient management of the gas and electricity
grids. Grid construction and maintenance is entrusted to
DELTA Infra. DELTA Infra also services the water mains and
cable networks in southwestern Netherlands. It also renders
services to industrial customers.
Increased cooperation, better quality
In January 2011 DNWB moved from Middelburg to Goes, where
DELTA Infra is located. The relocation has shortened the lines
of communication, enabling better decision-making and
response times and intensifying cooperation between the
companies. Efficiency has improved due to this close proximity
and because further commercialisation efforts were made
in 2011. The companies are a perfect fit in terms of their
knowledge and expertise. Their customer/supplier relationship
also benefits from a commercial and transparent approach.
Existing and new customers
Shortly before the start of 2011, DELTA Infra acquired several
major new projects, including maintenance of the gas and
electricity distribution networks for grid operator Stedin.
Implementation of this new project in the island of Goeree
Overflakkee, in the southwestern part of South Holland
Province, began in the course of 2011. Also in 2011, we began
work on the renewed contract with water company Evides.
DELTA Infra also acquired new customers, including Schiphol
Airport, for which it provides metering services. Commissioned
by Zeeland Refinery, Delta Infra made a draft design for a new
15/50 kV substation, as a result of which less use needs to
be made in future of electricity generated by diesel engines,
thus reducing carbon dioxide emissions. In 2011 the decision
was made to discontinue the Infra division’s technical lighting
operations. Most of the staff at this unit were relocated to other
business units.
Improvements in quality were also made in other fields in
2011. In September, DNWB received an NTA 8120 certificate
from Dutch-based quality assurance institute KIWA. NTA
(Netherlands Technical Agreement) 8120 involves compliance
with a number of agreements and rules adopted by the industry
to improve the safety and quality of the distribution networks.
In October DNWB was awarded another certificate by KIWA,
ISO 9001, evidencing the grid operator’s focus on quality
management and customer satisfaction. In 2011 DELTA Infra
qualified as a bidder for new projects initiated by national
grid operator TenneT and regional grid operator Stedin.
It also succeeded in maintaining its VCA**, VCA-P, CKB,
and ISO 9001 certificates.
15

4. Grids and networks
Sustainability
At Bio Base Europe in Terneuzen, DELTA Infra is constructing
a ‘solar forest’: nine moving solar panels that provide maximum
efficiency as they follow the position of the sun. DNWB too went
sustainable in 2011. In early April, an agreement was signed
by municipal authorities in Zeeland, the Scheldestromen
Water Board and the E-Laad Foundation for the construction of
75 charging poles for electrical vehicles. A co-founder of E-Laad,
DNWB was one of the driving forces behind the agreement.
April also saw the publication of ‘Network for the Future’,
in which the joint grid operators expressed their commitment to
energy transition – the move towards more sustainable energy
generation – promising to modify their distribution networks
for that purpose. Over the next few years, grid capacity will be
increased to enable decentralised energy generation
and accommodate the growing use of electrical cars.
Using smarter energy networks will achieve a better match
between supply and demand.
Working apart together
After two and a half years’ work, DNWB and DELTA Infra are
now in compliance with the Independent Grid Operation Act
[Wet onfhankelijk netbeheer]. Introduced in 2006, the Act aims
to separate grid operation from production and supply.
This involved a considerable effort, with multiple computer
systems having to be disentangled. With all this out of
the way, DNWB is now in a position to carry out its tasks
as an independent entity.
In 2010 the Hague Court of Appeal set aside the group
prohibition provided for under the Independent Grid Operation
Act, permitting DNWB to continue to be a DELTA group company.
It should be added, however, that the Dutch government filed
an appeal with the Dutch Supreme Court, which has adjourned
the case pending a response from the European Court of Justice
in Luxembourg.
16

DELTA Annual report 2011
17

Around three quarters of DELTA’s revenue comes from
its energy operations, which cover a variety of activities up
and down the energy value chain. Through its operating
companies, DELTA produces energy and trades in fuels
(natural gas, coal, oil), electricity and emission allowances
in various markets, as well as supplying gas and electricity
to businesses and consumers.
18
Sloe power plant, Vlissingen

DELTA Annual report 2011
Energy5
5.1 Business customers and consumers
The new Consumer & Business tot Business division was set up
in 2011. The integration of end user-based activities has created
a more logical organisational structure, allowing for more
entrepreneurship. In addition, several computer systems
will be streamlined and also provide for more integration and
synergies. These combined efforts are designed to support the
Consumer & Business tot Business strategy, which is to create a
close relationship between supplier and customer by combining
a high-quality service with multi-utility product offerings.
Ongoing focus on customer service
In 2011 DELTA again stood out by providing an excellent quality
of service. Several independent agencies praised DELTA’s
excellent service performance. In February, the Dutch Consumer
Association announced that DELTA had achieved a score of
7.5 on a scale of 1 to 10 in terms of its service. This placed
the company in fourth position in the national service level
league table, ahead of its main competitors.
In March, DELTA achieved a high ranking in the Customer
Performance Award Top 10 for the second year running,
taking second place within the energy industry, after Shell.
This prestigious prize is awarded annually by the University of
Groningen. The winner is selected according to several criteria,
the key ones being customer loyalty and customer service.
Sales-seductive promotional techniques
“The promotional methods of energy companies are
regularly perceived as aggressive or a nuisance”
(source: The Dutch Consumer Guide , March 2011).
Energy companies’ promotional campaigns have come
under criticism from the Dutch Consumer Association.
The companies are increasingly becoming a topic of
conversation as people receive the umpteenth sales
phone call or cold-call doorstep visit. DELTA has
deliberately opted for a different approach: no cold-calling,
but ‘transparent seduction’…
Commercial director Jaap Rieter: “It is important to have
a visible presence in the market, you have to work actively
to support brand awareness. The question is how you go
about doing that. Unlike most of its rivals, DELTA has
chosen to use less aggressive methods and focus on
optimising customer service. To build an excellent
reputation through advertising only to go back down the
track applying cold-call sales practices and poor service is
simply a waste of capital. We have chosen a well-thought
out approach: no prolonged and expensive radio and
TV commercials, but short-term promotions with a clear
goal instead. Through our consumer magazine ‘Zeeland’,
we actively pursue the kind of relationship we are keen
to have with our customers: to be close to home, provide
relevant information about Zeeland, and to offer attractive
deals for energy and Internet services.”
19

5. Energy
Service levels in television, Internet access and telephony were
also satisfactory in 2011. In February, the Dutch Consumer
Association crowned ZeelandNet best Internet service provider
of the Netherlands, sharing first place. Since April, however,
ZeelandNet has taken poll position. The quality of its Internet
access services received a score of 8.2. It also achieved
the highest ‘failure free’ percentage of all ISPs - 84%.
Customer satisfaction was also reflected in the number of
energy customers remaining loyal to DELTA, with less than
2% of its retail customers switching suppliers. The national
switching rate is much higher (11%).
Website of the year
At a festive gala event at the Beurs van Berlage in
Amsterdam on 10 November, ZeelandNet received the
annual people’s choice award for best website of the year.
The title ‘Website of the Year’ is ultimate proof of the site’s
transparency and ease of use.
This year votes were cast over 21 categories, with voters
being asked to comment on the content, navigation and
design of the websites nominated. More than 700,000 votes
were cast.
Market trends
Since the energy market was opened up to competition,
we have been careful not to take our customers for granted.
To maintain our share of the consumer market in Zeeland and
strengthen our position in the corporate markets in Zeeland
and elsewhere, we need to have a clear focus on customer
requirements. Providing a high-quality service requires
permanent and active maintenance. In 2011 we did so by
conducting a closed-loop feedback survey. All customers
who had called our customer service department and had
agreed to being contacted later on were approached and asked
whether they were satisfied with the way in which their query
or complaint had been handled. The survey enabled us,
if no adequate response had been given, to properly deal with
the query and obtain information about areas for improvement.
In the corporate energy market, there is an increasing trend for
suppliers and larger customers to work together to put in place
a tailored supply contract. Contractual relationships
are increasingly evolving into a strategic partnership.
In this market segment, it is no longer just about volumes.
Customised services have become a vital element as well.
This approach, and DELTA’s mid-size format, have led to shorter
lines and improved flexibility, benefiting our customers and
reinforcing our position in the corporate market.
In the multi-media market, consumers and businesses are
increasingly accessing the Internet using multiple devices
(mobile phones, tablets, desktop PCs). To meet the growing
demand for faster connections, we need to ensure that our
infrastructure is up to date. That is why in 2011 we began
upgrading the backbone of the cable network in Zeeland.
The project is scheduled for completion in early 2012.
As the Internet, television and telephony (landline and mobile)
are becoming more and more integrated, the decision was made
to start preparing for the introduction of mobile telephony.
A pilot will be launched in the course of 2012. We are also
working on the introduction of interactive television.
As a result of these efforts, DELTA will soon be able to offer
a full-service package to consumers and become a truly
multi-utility service provider.
20

DELTA Annual report 2011
5.2 Electricity generation
Electricity prices are low and are expected to remain subdued
in the coming period; weakened economic conditions have led
to a fall in demand. At the same time, fuel prices, including
gas prices, are elevated driven by the growing demand from
Asia and elsewhere. This has put pressure on margins and
increased the need for cost-effective and efficient production.
We endeavour to do so through precision purchasing and
by reducing our operating costs and making flexible use of
our production capacity. Flexibilisation allows us to generate
electricity at the most profitable times.
Coal-fired power station
EPZ’s coal-fired power station is facing difficulties as it will
need to pay for carbon dioxide emission allocations from 2012
onwards. This will substantially increase its production costs,
with revenue from electricity sales unlikely to show much
growth. The power station is expected to become loss-making
as a result, and the option to close it down is a real one.
Technical changes to the power station could make it suitable
for biomass incineration. Biomass is a renewable fuel which
does not come under the CO 2
trading scheme. However, the
cost of biomass is so high as to rule out profitable operations.
Introducing a green certificate trading system to encourage
renewable electricity generation would change this situation,
but the Government’s policy on the issue is still unclear.
To give biomass a chance, the decision was made at the end
of 2011 not to close down the coal-fired station, and instead
to let it continue operating until 2015. Meanwhile, cost-saving
measures will be taken to keep losses to a minimum, including
downsizing the workforce by 35 FTEs.
Nuclear power plant
In the wake of the events in Fukushima in March, the nuclear
power plant was tested by operator EPZ to check whether it
could withstand a combination of risks, including flooding,
earthquakes, power outages, and terrorist attacks. All 143
nuclear power stations in the European Union were subjected
to similar ‘robustness tests’. The nuclear power station proved
well capable of withstanding the risks tested for. For example,
it can withstand floods of up to 8.55 metres. The design
requirement is 7.3 metres. The Dutch Minister of Economic
Affairs, Agriculture and Innovation (EL&I), Maxime Verhagen,
stated that “the initial results provided no reason whatsoever
to question the safety of the Borssele nuclear power plant.”
In its test report, EPZ wrote that over and above the safety
requirements set by the government there were possibilities
for increasing the margins even further. Accordingly, EPZ will
tighten its work instructions and purchase extra pumps. In June
2012, the European Commission will release its final report
on the tests. The EU member states will subsequently decide
whether any nuclear power stations need to be closed down
and where any measures need to be taken.
In 2011 DELTA became a majority shareholder in EPZ,
after reaching agreement with the former Essent shareholders
and breaking the deadlock over the allocation of the shares
in EPZ. DELTA increased its share interest by 20% to 70%.
German-based RWE indirectly holds the remaining 30% .
21

5. Energy
Plans for a second nuclear power plant
Despite the events in Japan of March 2011, there is still fairly
broad-based support for a second nuclear power plan in the
town of Borssele and elsewhere in Zeeland Province.
On 2 December, PZC wrote: “The nuclear disaster at the
Fukushima power plant in Japan seems to have had little impact
on the views of people in Zeeland about the construction
of a second nuclear power station at Borssele. In December
2010 72% did not object to a second nuclear power plant at
Borssele, given that there was one already. A year on, 66% of
respondents in Zeeland do not object.”
In December DELTA changed its strategy in terms of its
preparations for the new nuclear plant. Instead of leading the
project, the company wishes to assume the role of facilitator.
DELTA still regards nuclear energy as an unmissable source of
low carbon dioxide electricity on our way to a society that will,
to a great extent, be making use of renewable energy. This will,
of course, require healthy investment conditions and political
support.
Tidal power plant
In 2011 it became clear that it was technically possible to
construct a tidal power plant at Brouwer Dam that could supply
60,000 to 70,000 homes. The project would also bring back
tidal movements in Grevelingen Lake, restoring the quality
of the water and natural environment, which has seriously
deteriorated after the lake was dammed in 1971.
Wind power
In late of 2011 DELTA decided on a radical upgrade and
expansion of its wind farm at Kreekrak. In the summer of 2011
the company received an SDE Plus grant under an incentive
scheme aimed at encouraging the production of renewable
energy. The expanded wind farm is expected to be operational
by the end of 2012, supplying electricity to 60,000 homes,
around five times more than previously. It will have 29 state-ofthe-art
turbines, operated in part by DELTA. Sixteen turbines
will be constructed north of the A58 and thirteen south
of the motorway. The 29 new wind turbines will be larger
and house modern generators, allowing the wind farm
to produce more power than before.
The vicinity of the military airfield at Woensdrecht initially
caused a problem. The radar at the airport threatened
to be affected by the height of the new turbines. DELTA enabled
an innovative technical solution that solved the problem.
Also, the town of Woensdrecht and local residents in
Volckerdorp initially objected to the plans. The relocation of
a section of the wind farm south of the A58 fell foul with local
residents, because they feared noise nuisance and visual
pollution of the horizon. On DELTA’s initiative, an external and
independent mediator was engaged. Close consultations with
local residents and actual measures to prevent noise nuisance
and visual pollution eventually led to the objections being
withdrawn. The process has inspired mutual trust and the final
result is the best possible solution all round.
If inlets are built into Brouwer Dam, turbines could be fitted
to generate energy as the water flows in and out with the tide.
DELTA commissioned Delft University of Technology to conduct
a study. The findings show that a water level variation of
one metre is enough for a tidal station to be able to operate
effectively.
In the coming period evidence will have to be gained
whether the tidal power plant can deliver a sufficient
return on investment.
22

DELTA Annual report 2011
DELTA’s generating capacity
EPZ (70% owned)
Nuclear power plant – fuel: uranium
Output: 512 MW (DELTA: 70%)
Coal-fired power station – fuel: coal and biomass
Output: 426 MW (DELTA: 70%)
ELSTA (25% owned)
Fuel: gas
Output: 405 MW (DELTA: 50%)
Sloe power station (50% owned)
Fuel: gas
Output: 870 MW (DELTA: 50%)
Biomass power station (50% owned)
Fuel: chicken manure
Output: 36.5 MW (DELTA: 100%)
Wind farms (full ownership, share interests, contracts)
DELTA owned: 30 MW
Share interests: 42 MW
Contracts: 27 MW
Total output: 99 MW
Combined heat and power
Total output: 60 MW (DELTA: 100%)
Willebroek solar farm (Belgium) (49% owned)
Total output: 2.6 MWp (DELTA: 100%)
Availability of generating capacity
In general, capacity at the power plants was available according
to schedule in 2011. The gas-fired Sloe power station at the port
of Vlissingen generated lower volumes than expected due to
low availability caused by problems with the air inlet. These
problems have been resolved. Similarly, the biomass power
station at Moerdijk was operational for a shorter period than
planned because of a number of technical problems.
In 2011 we sold or removed several of our CHP systems as they
neared the end of their economic useful lives. The wind turbines
generated electricity in line with expectations, at a fairly
constant wind level, although the winds picked up considerably
in December. The solar farm at Willebroek (Belgium) produced
well (10%) above expectations.
5.3 Trading
Prices were stable until February, when oil prices rose sharply
due to the Arab spring protests. On the back of this rise, coal
and gas prices also went up. Electricity prices followed suit,
albeit to a lesser extent. Margins narrowed as a result.
After the events in Japan, Germany decided to decommission
its seven oldest nuclear power stations. This set the prices of
gas, coal, electricity and CO 2
soaring. The price of CO 2
emission
allowances dropped in May as the EU announced measures to
promote energy efficiency.
In September, energy and emission trading prices came down
as the debt crisis in the euro zone deepened, fuelling fears
of a renewed recession. Electricity prices fell too. This trend
continued until the end of the year putting added pressure on
margins.
23

DELTA’s waste management operations have been brought
together in Indaver, in which we own 75% of the shares.
Headquartered in Mechelen, Belgium, Indaver has developed
into an international group of companies, with offices and
operations across Europe. Outside Belgium, Indaver operates
in the Netherlands, Ireland, Portugal, Italy, and Germany.
The company focuses on the public sector (Belgium,
the Netherlands, Ireland) and industrial businesses
(northwestern Europe), mainly in the chemical,
pharmaceutical, automotive and electronics sectors.
24
Waste management plant, Antwerpen (Belgium)

DELTA Annual report 2011
Waste
management6
Indaver handles just under five million tons of waste per year,
largely at its own plants, most of which are located in Belgium,
but also at third-party facilities. The company uses a variety
of waste treatment methods, including recycling, biomass
production and waste-to-energy (energy produced from
waste incineration).
A word of thanks to CEO Ronny Ansoms
On 1 May, Indaver’s CEO Ronny Ansoms passed on the flame
to Paul De Bruycker. Ronny Ansoms was one of the key figures
behind Indaver’s expansion into an international sustainable
waste management business. At the goodbye event in Antwerp
on 6 May, Paul De Bruycker, Peter Boerma, and Flemish prime
minister Kris Peeters spoke words of thanks. The prime minister
praised the way in which Indaver assumed responsibility for
the environment. “Disposing of hazardous waste through
incineration, without releasing toxic flue gases into the
environment, still is Indaver’s speciality. But it does not take
the easy way out and go for full incineration or landfilling in
order to maximise its profits. On the contrary, the company is
participating in a variety of recycling initiatives as we speak,
showing its commitment to Lansink’s ladder, according to which
landfill and incineration are the last-resort options, with re-use
and recycling being the first options on the ladder.”
New plants
In 2010 Indaver mainly focused on organisational development
and new projects. In that year, DELTA Milieu’s operations were
transferred to Indaver and a new country-based organisation
was introduced. These changes were put in place in the course
of 2011.
In 2011 the company completed a major construction project.
The new waste incineration plant in Co. Meath, near Dublin
in Ireland, went operational in September, handling 200,000
tons of domestic and equivalent industrial waste per year
and generating electricity in the process. The 20 MW turbine
generates enough power to supply 20,000 homes.
In 2011 work continued on the Medipower processing plant at
Indaver’s premises in Antwerp, Belgium. Medical and hospital
waste was previously treated by Indaver Medical Services in
Leuven, Belgium. This treatment plant was decommissioned
in April 2012. Medical and hospital waste from Flanders and
elsewhere in the Benelux countries is now treated at the new
plant, which also supplies heat and power (2.5 MW).
Two service concepts
Indaver operates two different service concepts for
two different markets. In the Industrial & Hazardous
Waste business, the company aims to achieve a leading
position on the European market applying its Total Waste
Management concept. This involves offering a full-service
package, ranging from advice and waste prevention through
to processing and, if required, the full operation of facilities.
Its treatment plants recycle as much material as possible,
with residual waste being incinerated and electricity
generated at the same time.
Public Waste Partnerships is the service concept aimed at
the domestic and equivalent industrial waste market. In
this area, Indaver is a key partner of the central and local
authorities in Belgium, the Netherlands and Ireland.
The main treatment methods used in this market are
recycling and incineration coupled with energy production.
25

Sound business practices, integrity, respect, supervision, transparent reporting and other forms of accountability
constitute the main pillars of DELTA’s corporate governance policy. We are mindful of the interests of the communities
in which we operate. We are in compliance with the Dutch Corporate Governance Code, which applies to listed
companies in the Netherlands, although several of its provisions are less relevant for us. We have adopted the Code’s
best-practice provisions in so far as they apply to the company. Because DELTA is a public limited liability company
whose shares are registered, the provisions on, for example, anti-takeover measures are not applicable.
Structure, policy, and compliance
DELTA N.V. is a company with a two-tier board as referred
to in Section 2:154 of the Dutch Civil Code (DCC) [Burgerlijk
Wetboek]. The legal consequences which the DCC attaches
to this status are not entirely appropriate to the company’s
governance structure. The involvement of the (General Meeting
of) Shareholders (GMS) and the Supervisory Board with
the company’s operations is reflected in its articles of
association and various sets of regulations. These documents
also set out when the Executive Board requires (additional)
approval from either the Supervisory Board or the GMS for
resolutions on investments and/or takeovers or the sale of
all or any part of the business. If the amount involved exceeds
five million euros, the proposed resolution requires approval
from the Supervisory Board. If the proposal involves an
investment in excess of 55 million euros, it requires the prior
approval of DELTA’s shareholders.
Executive Board
The powers and responsibilities of DELTA’s Executive Board
are defined in the Executive Board Regulations. These provide
for a division of duties among the members of the Executive
Board, define internal powers of attorney, lay down decisionmaking
procedures, and contain rules that are consistent
with the Dutch Corporate Code, including those dealing with
conflicts of interest of Executive Board members.
Supervisory Board
DELTA’s Supervisory Board oversees the company’s overall
performance, including compliance with its policies,
the results achieved by the Executive Board, the company’s
financial position and risk profile, and its financial reporting.
The Supervisory Board also acts as a sounding board for
the Executive Board. In order for the Supervisory Board
to properly fulfil its role, its profile must be consistent with that
of the company.
The profile drawn up by the Supervisory Board in the course of
2010 describes the capabilities required of its – prospective –
members, having regard to the expanded powers of nomination
vested in the Central Works Council. Against the background
of the details given in the profile, the new Supervisory Board
chairman, who had been appointed in June 2010, initiated and
completed the process of appointing an almost entirely new
Supervisory Board, which took office on 1 January 2011.
The Supervisory Board is also in compliance with the Code
in terms of its membership composition (independence,
age diversity, background, and expertise). However, gender
diversity remains a focal point, particularly in view of the
Dutch Corporate Management & Supervision Act [Wet bestuur &
toezicht], which is expected to come into force in the course of
2012 and will require an effort on the part of DELTA to increase
the share of women on its Executive and Supervisory Boards.
The Supervisory Board’s powers and duties and internal
decision-making and the role of its chairman are set out in
the Supervisory Board Regulations.
These also provide for matters such as periodic reviews of
the Supervisory Board’s own performance, in accordance
with the Code. Special regulations have been drawn up
for the Supervisory Board’s Audit Committee. The Audit
Committee’s mandate covers financial and tax matters and
oversight of the risks which the company is willing to take.
Risk management and risk policy are regular items on
the agendas of both the Audit Committee and the Supervisory
Board’s plenary meetings.
26

DELTA Annual report 2011
Corporate
governance7
Shareholders
The role of DELTA’s shareholders and the powers of
the General Meeting of Shareholder are set out in the
company’s Articles of Association. The shareholders are
committed and dedicated, in part because they are public
sector entities (all being municipalities or provincial
authorities). In line with the Code, DELTA’s shareholders may
act in their own interests, but must comply with the regulatory
requirement of fairness and reasonableness. However, owing
to the wide-ranging powers entrusted to the GMS under the
Articles of Association, the way in which the shareholders
exercise their voting rights has a significant influence on
the company’s policies and operations.
In a broader context, the Frijns Committee encountered
the same situation at numerous other companies in
the Netherlands, and has recommended pursuing a policy
to promote bilateral contacts between companies and
their shareholders. At DELTA, we have introduced a policy
that provides for periodic and informal talks between
the Executive Board and our shareholders, which were held
at very regular intervals during the year.
Dividend policy
The Executive Board, Supervisory Board and shareholders
agreed on a dividend policy for the 2011 and 2012 financial
years under a workable long-term plan that was
acceptable to all.
Works Council
Amidst the Articles of Association, regulations and other
arrangements, the relationship between DELTA Group and
its Works Council and Central Works Council should not
go unmentioned. This is a relationship built on mutual respect,
as reflected in the standing consultations between
the company/Executive Board and the Works Council and
Central Works Council on a range of issues which both parties
have agreed are open to discussion, and the facilities made
available to the members of the Works Council, Central Works
Council, and European Works Council, which was set up in
2009. At divisional level, standing consultations are held
with the divisional works councils.
Compliance
DELTA operates a ‘whistleblower scheme’, adopted by
the Supervisory Board, which, in addition to the compliance
officer’s activities, enables employees to raise concerns about
malpractice with the Executive Board and/or a counsellor
without running the risk of reprisals. In the course of 2011,
an external party was appointed with whom concerns can be
raised in accordance with the scheme.
Contacts with external stakeholders
In view of the company’s importance and position,
DELTA regularly publishes its financial results and announces
important events by means of press releases and publications
on its website.
Regulations
DELTA has introduced regulations that define the framework
within which its corporate bodies must operate or explain in
greater detail the rules that apply at the company.
These regulations are reviewed and, where necessary,
amended from time to time. They include:
• the Articles of Association
• the Executive Board Regulations
• the Code of Conduct
• the procedure for dealing with suspicions of misconduct
(‘whistleblower scheme’)
The following has also been posted on the website:
• the Supervisory Board Regulations
• the retirement rota for Supervisory Board members
27

DELTA operates in a variety of markets and is exposed to
a large number of risks. Some of these risks arise from
the composition of its trading portfolio, others evolve
from economic, financial and legal developments.
These risks are inherent to DELTA’s strategic choices and
operations and hence form a part of the company’s risk profile.
DELTA seeks to identify these risks at an early stage.
Risks are identified and assessed, and controls defined,
systematically. Using the COSO Enterprise Risk Management
Integrated Framework (COSO-ERM), DELTA makes a deliberate
choice as to which risks it is willing to accept and which can
better be borne by others .
DELTA trades on the international gas and electricity markets.
Prices on these markets fluctuate widely. Because of
the economic slowdown, sales volumes are also an uncertain
factor. Then there is the risk of trading partners and producers
defaulting on their obligations to DELTA. In order to control
these risks, the Risk Management Committee (RMC) worked
closely with the Origination, Trade and Supply (OTS) division
during the year. Chaired by the CEO, the RMC ensures that
DELTA’s energy trading activities remain with the defined
risk margins.
Risk management at divisional level is subject to periodic
audits performed by the independent Internal Audit division,
which looks at the quality assurance system and the risk
management, control and compliance procedures.
A separate compliance function ensures that DELTA adheres
to applicable laws, and compliance risks are identified and
controlled to the greatest possible extent. The company’s
operations are intertwined with regulatory requirements,
grant schemes, and laws and regulations. Recognising the risks
associated with its operations, which touch upon aspects of
public and private law, DELTA controls those risks by actively
taking part in the public debate and through its contacts with
its public sector shareholders.
Given the importance of most of DELTA’s operations to society,
the law imposes high standards on its services in terms of
their quality and safety. To meet these standards, the company
makes substantial investments in adequate processes
and systems.
During the year, we improved our risk management
framework and set up a Group Internal Control division.
The division reports to the CFO and is responsible for rolling
out an internal control framework across the organisation
to address strategic, operational and compliance risks as well
as financial reporting risks.
Corporate Risk Management was integrated into Group Internal
Control, bringing together risk identification and risk control.
These changes will strengthen and further professionalise
the internal risk control system.
During the year, various other developments combined to
improve our financial and operational risk profile. Deleveraging
and cost reductions were again firmly on the agenda in 2011.
This enabled DELTA to continue to meet the credit requirements
imposed by the financial and energy markets.
It has recently become clear that grid operator DNWB will
remain a member of the DELTA Group for the next few years,
pending a preliminary ruling by the European Court of Justice
in response to questions put by the Dutch Supreme Court on
whether the Independent Grid Operation Act (‘unbundling act’)
is compatible with EU law.
We also continued to review and optimise the composition of
our overall portfolio of products and operations, selling our
interest in the solar business. We succeeded in maintaining
a stable position in the energy and multimedia retail markets
during the year.
In 2011 DELTA’s improved financial and operational risk profile
led to a rating upgrade by S&P.
28

DELTA Annual report 2011
Risk and
risk management 8
In Control Statement
DELTA’s Executive Board is responsible for the design and
operational effectiveness of the company’s internal risk
management and control system. This system is designed to:
• provide management with timely information on the progress
made towards achieving the company’s strategic, operational
and financial goals;
• ensure reliable financial reporting;
• ensure compliance with applicable laws.
Risk-taking is inextricably linked to the company’s operations
and the implementation of its strategy. The risk management
and control system allows DELTA to accept calculated business
risks by identifying, controlling and monitoring risks and taking
appropriate action where necessary.
The Executive Board reports on, and accounts for,
the design and operational effectiveness of the internal
risk management and control system to the Audit Committee
and the Supervisory Board.
On the basis of its evaluation in accordance with
the Dutch Corporate Governance Code, the Executive Board
believes that, in terms of financial reporting risks, the internal
risk management and control system provides reasonable
assurance that the financial statements for the year under
review contain no material errors and that the system
functioned properly during the year.
In 2012 the Executive Board will continue to further strengthen
and professionalise the internal risk management and control
system by, among other things, implementing the Internal
Control Framework.
The likelihood and impact of errors, wrong decisions and
unforeseen events are mitigated to the greatest possible
extent. However, there is no single internal risk management
and control system that can provide absolute certainty that
business targets will be achieved or that inaccuracies, losses,
fraud or regulatory breaches can be fully prevented.
In auditing the financial statements, the independent auditors
also investigate the design, existence and operation of internal
controls on financial reporting. The independent auditors
report their findings to the Executive Board, Audit Committee,
and Supervisory Board. The independent auditors’ report is
included in the financial statements.
29

The Supervisory Board is pleased to report on its activities
undertaken in 2011, and the way in which it has performed
its supervisory and advisory duties.
Membership composition
In 2011, the Supervisory Board comprised:
• Mr D. van Doorn (chairman);
• Mr J. Bout;
• Mr R. Frohn;
• Mr J.G. van der Werf;
• Mr B.P.T. de Wit.
Meetings and other activities
of the Supervisory Board
In 2011 the Supervisory Board met seven times, with the
Executive Board attending. The matters discussed included:
• Appointments to the Supervisory Board and its committees.
• Financial matters, including the quarterly reports and
financial statements, and the company’s business plan and
operational and financial goals.
• Strategic issues, including acquisitions, investments
and disposals. An important issue was the Executive Board’s
resolution to withdraw from solar cell production.
Other items included the plans for a second nuclear power
station, the current status of the Borssele Agreement,
the acquisition of additional shares in EPZ, and the
introduction of the new organisational model. Apart from
strategic matters, the Supervisory Board also looked at the
major risks inherent in the policies pursued.
• Dividend policy, investment and financing policies
(including Kreekrak wind farm and construction of new
premises), risk management, and corporate governance.
• Developments regarding the Independent Grid Operation
Act and talks with shareholders about the events involving
Evides.
Audit Committee
With effect from 1 January 2011, the company has only had
an Audit Committee. Other matters are discussed directly by
the Supervisory Board.
The Audit Committee has been reduced two members and
met five times during the year. The issues discussed included
the management letter, group plan, quarterly reports, half-year
report, financial statements, financial returns on projects and
investments, risk management, IFRS, solar energy, and several
other proposals to invest or divest. The Audit Committee
consisted of Mr Frohn (chairman) and Mr J. Bout. Its meetings
were attended by Messrs P.G. Boerma, F. Verhagen, H.S.C.
Snijders (secretary), and W. de Leeuw (Deloitte).
Executive Board membership
Until 1 May 2011, the Executive Board comprised Messrs P.G.
Boerma (Chief Executive Officer), A.S. Louter (Chief Operating
Officer), J.J. Rieter (Chief Commercial Officer), and F. Verhagen
(Chief Financial Officer). The Executive Board was subsequently
reduced to two members, i.e. the CEO and CFO.
The Supervisory Board also convened to review its own
performance, without the Executive Board attending,
discussing matters such as its main duties and responsibilities
(oversight and advice) and cultural and behavioural aspects.
30

DELTA Annual report 2011
Report of the
Supervisory Board 9
Executive Board remuneration
In May 2005, the GMS adopted the remuneration policy
for the members of the Executive Board, as proposed by
the Supervisory Board. The policy’s guiding principle is that
DELTA should be able to offer a pay package that allows
the right people to be recruited and retained by the company.
The Supervisory Board determines the remuneration of
Executive Board members annually. Since 1 March 2010,
when the CEO’s new four-year term began, the benchmark
for calculating gross base salaries has been the median level
of board pay in the Netherlands, meaning that half of those
in comparable jobs (as graded by Hay) are paid less and half
are paid more. The annual remuneration also has a variable
component as an incentive for achieving a number of agreed
targets during the year. The variable component is capped
at 30% of the gross base annual salary.
Final note
In 2011 DELTA discontinued its solar operations (Solland Solar,
Fesil, and RGS) and postponed its plans for a new nuclear
power station in Borssele. Due to this change of the company’s
nuclear energy policy, CEO Peter Boerma decided, in good
consultation with the Supervisory Board, to step down with
effect from 1 January 2012. The Supervisory Board respects
Mr Boerma’s decision and would like to thank him for his
dedication and efforts in the past few years. A word of thanks is
also due to all other DELTA employees. The Supervisory Board
recognises that 2011 was a turbulent year, and will make every
effort to nominate a new CEO as soon as possible.
On behalf of the Supervisory Board of DELTA N.V.
D. van Doorn,
Chairman
Financial statements
The Supervisory Board has reviewed the annual report,
financial statements and notes for the 2011 financial year,
as submitted by the Executive Board. It has also read
the management letter, the audit findings, and the auditors’
report issued by Deloitte Accountants. On the basis of that
information, the Supervisory Board has approved the 2011
financial statements and has recommended their unqualified
adoption by the General Meeting of Shareholders.
31

SUPERVISORY BOARD
Mr D. (Daan) van Doorn (1948), chairman
Nationality: Dutch
First appointed: 21 June 2010
Current term: until 20 June 2014
Profession/principal position: former Executive Board chairman
of VION Food Group
Outside interests: Supervisory Board member of Brunel
International, chairman of the Wageningen University
Fundraising Committee, chairman of the Science Group
Advisory Council at Wageningen University, chairman of the
Netherlands Mussels Farmers’ Association, chairman of the
Van Doorn Committee
Mr J. (Jan) Bout (1946)
Nationality: Dutch
First appointed: 1 January 2011
Current term: until the end of 2014
Profession/principal position: former Executive Board chairman
of Royal Haskoning
Outside interests: coordinator at Topsector Water,
Supervisory Board member of Ballast-Nedam N.V.,
Supervisory Board member of Royal Haskoning Group B.V.,
member of the Board of Trustees of Deltares, Executive
Committee member of Ubbo Emmius Fonds.
Mr R.J. (Rob) Frohn (1960)
Nationality: Dutch
First appointed: 1 January 2011
Current term: until the end of 2013
Profession/principal position: Board member at AkzoNobel
responsible for Specialty Chemicals
Outside interests: non-executive director of Nutreco N.V.,
board member of CEFIC (European Chemical Industry),
member of the Board of Trustees at the Arnhem/Nijmegen
University of Applied Sciences.
Mr J.G. (Johan) van der Werf (1952), vice-chairman
Nationality: Dutch
First appointed: 2001
Current term: until 3 June 2012
Profession/principal position: former Management Board
member of AEGON N.V.
Outside interests: Supervisory Board chairman of Ordina,
chairman of the Board of Trustees of NOS, Supervisory Board
chairman of Blauwtrust Group, vice-chairman of the Board
of Trustees of Utrecht University Hospital, Supervisory Board
member of De Lotto, Supervisory Board member of ONVZ,
chairman of the Arts and Culture Pension Fund,
Advisory Council member of SVB, vice-chairman of the
Board of Trustees of Nederlands DansTheater, Executive
Board of Right to Play
32

DELTA Annual report 2011
Personal
particulars10
EXECUTIVE BOARD
Mr B.P.T. (Peter) de Wit (1949)
Nationality: Dutch
First appointed: 1 January 2011
Current term: until the end of 2014
Profession/principal position: former President of Shell
Nederland B.V.
Outside interest: non-executive Board Director of Caithness
Petroleum, London
Mr P.G. (Peter) Boerma (1954), Chief Executive Officer (CEO)
Nationality: Dutch
First appointed: 1 March 2006
Outside interests: Executive Board member of
Energie-Nederland, Executive Committee member of
Brabants-Zeeuwse Werkgeversvereniging Zeeland, chairman
of the Board of Trustees of Zeeuwse Bibliotheek, chairman of
the Board of Trustees of Emergis
Mr F. (Frank) Verhagen (1961), Chief Financial Officer (CFO)
Nationality: Dutch
First appointed: 1 February 2009
Outside interests: member of the Board of Trustees of Admiraal
de Ruiter Hospitals
Mr A.S. (Ad) Louter (1963), Chief Operational Officer (COO)*
Nationality: Dutch
First appointed: 1 May 2008
Outside interests: advisory council member of Nyenrode Energy
Academy, advisory board member of Lean Manufacturing,
member of Innovatienetwerk Zeeland
Mr J.J. (Jaap) Rieter (1962), Chief Commercial Officer (CCO)*
Nationality: Dutch
First appointed: 1 November 2009
* On 1 May 2011, the Executive Board consisted of Peter Boerma and Frank
Verhagen. Ad Louter and Jaap Rieter were appointed Director AD & O and
Director Consumer & Corporate, respectively.
33

10. Personal particulars
CENTRAL WORKS COUNCIL
Executive Committee:
Mr J.M. (Hans) de Feijter
Staff Services/SSCs Works Council (chairman)
Mr A. (Bram) Nonnekes
OTS Works Council (secretary)
Mr C. (Kees) Joosse
Staff Services/SSCs Works Council (vice-chairman)
Mr H.A.M. (Harrie) Martens
Infra Division Works Council (vice-chairman)
Mr J. (Joop) Janse
Formal secretary
Other members
Mr L. (Leen) Boer
Infra Division Works Council
Mr L. (Leon) Fondse
Comfort Division Works Council
Mr B. (Bart) van Houte
Comfort Division Works Council
Ms (Tonny) Jobse-Griep,
Central Works Council member since November 2011
EPZ Works Council
Mr M. (Maurice) de Jong,
Central Works Council member until July 2011
Solland Solar Works Council
Mr H.E.A. (Huub) Knoors,
Central Works Council member since November 2011
EPZ Works Council
Mr P. (Peter) Maljers,
Central Works Council member since November 2011
EPZ Works Council
Mr J.G.T. (Theo) Nieuwburg
Infra Division Works Council
Mr. E.Y.M. (Etienne) Poppe
IR Works Council
Mr A. (Axel) Schäfer,
Central Works Council member until July 2011
Solland Solar Works Council
34

DELTA Annual report 2011
EUROPEAN WORKS COUNCIL
Mr J.M. (Hans) de Feijter, DELTA N.V. Netherlands Central Works
Council, European Works Council chairman
Mr L. (Leen) Boer, DELTA N.V. Netherlands Central Works Council
Mr A. (Bram) Nonnekes, DELTA N.V. Netherlands Central Works
Council
Mr C. (Kees) Joosse, DELTA N.V. Netherlands Central Works
Council
Ms K. (Karin) Aspeslagh, Indaver Netherlands Works Council
Mr A. (Axel) Schäfer, Solland Solar Works Council
Ms E. (Eric) Demaertelaere, Indaver Belgium Works Council
Ms G. (Guy) Smits, Indaver Belgium Works Council, European
Works Council secretary
Mr R. (Rainer) Martens, SAV Germany Works Council
Mr R. (Rudi) Wachtel, SAV Germany Works Council
Employer representatives:
Mr P.G. (Peter) Boerma, DELTA N.V.’s Chief Executive Officer
Mr P.B. (Paul) van Raay, DELTA N.V.’s Director of HRM
A.J. van Os, formal secretary, DELTA N.V.
35

Financial
statements11
Consolidated financial statements 38
Consolidated balance sheet as at 31 December 2011 (before profit appropriation)38
Consolidated income statement 39
Consolidated statement of comprehensive income 40
Consolidated statement of changes in equity 41
Consolidated cash flow statement 42
Accounting policies 43
Notes to the consolidated balance sheet 56
Notes to the consolidated income statement 94
Notes to the consolidated cash flow statement 105
Post-balance-sheet events 106
Segment information 107
Consolidated companies 110
Non-consolidated companies 112
Company financial statements 114
Company balance sheet as at 31 December 2011 (before profit appropriation)114
Company income statement 115
Notes to the company financial statements 116
Other information 128
Profit appropriation 128
Independent auditor’s report 129
DELTA in financial figures, consolidated 130
DELTA key figures 131
37

Consolidated financial statements
Consolidated balance sheet as at 31 December 2011 (before profit appropriation)
(x EUR 1,000)
Ref. no. 31-12-2011 31-12-2010
Non-current assets
Intangible assets 1 394,801 419,949
Property, plant and equipment 2 1,035,754 977,407
Joint ventures, associates and other investments 3 867,809 521,563
Loans to joint ventures, associates, etc. 4 14,370 13,775
Other financial assets 4 9,305 22,295
Deferred tax assets 4 75,851 91,056
Derivatives 5 68,007 51,574
Financial assets 1,035,342 700,263
Total non-current assets 2,465,897 2,097,619
Current assets
Inventories 6 17,303 14,975
Trade receivables 7 390,303 310,179
Current tax assets 7 7,324 61,065
Other receivables 7 46,629 43,791
Derivatives 5 230,250 219,470
Total receivables 674,506 634,505
Assets held for sale 24 2,647 3,964
Total current assets 694,456 653,444
Cash 8 52,390 49,410
Total assets 3,212,743 2,800,473
38
Shareholders’ equity 1,043,039 1,307,601
Profit for the year 82,690 (177,787)
Equity attributable to shareholders of DELTA N.V. 1,125,729 1,129,814
Non-controlling interests 54,091 53,270
Group equity 1,179,820 1,183,084
Provisions 9 236,824 95,504
Pension liabilities 9 21,869 21,874
Long-term debt 10 588,606 451,007
Deferred tax liabilities 11 57,470 62,688
Deferred revenue 11 70,999 68,843
Other non-current liabilities 11 25,472 161,460
Derivatives 5 77,149 31,209
Non-current liabilities 1,078,389 892,585
Trade payables 12 324,381 227,303
Current tax liabilities 12 59,191 109,796
Deferred revenue 12 13,401 12,268
Work in progress for third parties 0 964
Current portion of provisions 12 15,876 17,331
Other liabilities 12 247,082 97,136
Bank borrowings 5 66,429 65,329
Derivatives 223,724 164,677
Current liabilities 950,084 694,804
Liabilities held for sale 24 4,450 30,000
Current liabilities 954,534 724,804
Total equity and liabilities 3,212,743 2,800,473

DELTA Financial statements 2011
Consolidated income statement
(x EUR 1,000)
Ref. no. 2011 2010
Revenue 13 2,185,099 2,073,051
Cost of sales 14 (1,549,359) (1,454,047)
Gross operating margin 635,740 619,004
Other gains and losses (third parties) 15 32,408 28,618
Fair value gains and losses on the trading portfolio 16 (12,955) 3,248
Gross margin 655,193 650,870
Third-party services 17 242,771 249,759
Staff costs 18 211,606 197,958
Depreciation, amortisation and impairment 19 114,002 125,490
Other operating expenses 20 9,801 12,811
Total net operating expenses 578,180 586,018
Earnings from operations 77,013 64,852
Result aquisition 20% interest N.V. EPZ 153,979 -
Added provision tolling contracts (140,544) -
Share in results of joint ventures and associates 21 71,778 62,993
Operating result 162,226 127,845
Net finance income (expense) 22 (24,315) (21,863)
Profit before tax 137,911 105,982
Corporate income tax 23 (35,541) (16,383)
Profit after tax from continuing operations 102,370 89,599
Profit after tax from discontinued operations 24 (11,665) (265,393)
Profit for the year 90,705 (175,794)
Attributable to:
Non-controlling interests 8,015 1,993
Shareholders of DELTA N.V. 82,690 (177,787)
39

Consolidated financial statements
Consolidated statement of comprehensive income
(x EUR 1,000)
Ref. no. 2011 2010
Profit after tax for the year 90.705 (175.794)
Other comprehensive income:
5
Effective portion of gains and losses on cash
(21,340) 82,857
flow hedges
Energy derivatives (45,976) 51,735
Reclassification - adjustments (67,316) 134,592
(970) (4,001)
Interest rate derivatives 5,168 8,386
Reclassification - adjustments 4,198 4,385
15,701 (35,205)
Corporate income tax (47,417) 103,772
Share of other comprehensive income of
(10,736) (4,475)
joint ventures and associates
Share of other comprehensive income of
(591) -
joint ventures and associates
Reclassification - adjustments - -
(11,327) (4,475)
Translation reserve differences
Translation reserve differences 139 (60)
Reclassification - adjustments (506) (13)
(367) (73)
Corporate income tax - -
(367) (73)
Other movements
Other movements 23,115 33
Reclassification - adjustments (372) -
22,743 33
Corporate income tax - -
22,743 33
Other comprehensive income from
- 520
available-for-sale financial assets
- 520
Total other comprehensive income (36,368) 99,777
Total comprehensive income 54,337 (76,017)
Total comprehensive income attributable
to:
Non-controlling interests 8,422 2,274
Shareholders of DELTA N.V. 45,915 (78,291)
For an explanation of the changes in energy and interest rate derivatives, see section 5.
The share in the other comprehensive income of joint ventures relates almost entirely to movements in the hedge reserves of joint ventures.
DELTA has a shareholding of 7.6% in N.V. KEMA, which has hitherto been recognised at cost. In 2011, the shares of KEMA were offered for sale, allowing the market value
(fair value) of the shares held by DELTA to be measured reliably. Included in other movements is the fair value revaluation of the investment in N.V. KEMA.
40

DELTA Financial statements 2011
Consolidated statement of changes in equity
(x EUR 1,000)
Total
Paid-up
capital
Statutory
reserve
Hedge
reserve
Assets
held
for sale
Other
reserves
Unappropriated
profit
Noncontrolling
interests
Carrying amount as
1,312,474 6,937 54,908 (61,636) - 1,250,805 7,091 54,369
at 31 December 2009
Profit appropriation for 2009 - - 40,581 - - (33,490) (7,091) -
Payment of dividend (50,000) - - - - (50,000) - -
Movement concerning capitalised
- - (587) - - 587 -
development costs
Other changes - - 1,005 - - (1,005) -
Transfer to liabilities due to put (3,373) - - - - - - (3,373)
options
Total comprehensive income (76,017) - (4,475) 103,473 - 498 (177,787) 2,274
Carrying amount as
1,183,084 6,937 91,432 41,837 - 1,167,395 (177,787) 53,270
at 31 December 2010
Profit appropriation for 2010 - - (3,620) - - (174,167) 177,787 -
Payment of dividend (50,000) - - - - (50,000) - -
Transfer to liabilities due to put (7,601) - - - - - - (7,601)
options
Total comprehensive income 54,337 - (11,327) (47,881) 23,115 (682) 82,690 8,422
Carrying amount as
at 31 December 2011
1,179,820 6,937 76,485 (6,044) 23,115 942,546 82,690 54,091
The statutory reserve is made up of undistributed profits from non-controlling interests. The statutory reserve and the hedge reserve are not freely distributable.
The transfer to liabilities in connection with put options relates to the non-controlling interests in Indaver N.V.
A put option, included in current liabilities, has been granted to the shareholders concerned, who own 25% of the shares of Indaver N.V.
The non-controlling interests in the consolidated equity of DELTA mainly concerns the interest held by NEIF (NIBC European Infrastructure Fund) in the German waste
processing company Indaver Deutschland GMBH. (previously: SAV Beteiligungs GmbH)
41

Consolidated financial statements
Consolidated cash flow statement
(x EUR 1,000)
2011 2010
From operating activities
Earnings from operations 77,013 (234,221)
Fair value gains and losses on the trading portfolio 12,955 (3,248)
Adjustment for deferred income 3,289 (3,783)
Depreciation, amortisation and impairment 114,002 382,251
Provisions (19,089) 17,834
Inventories (3,292) 10,728
Trade receivables (80,124) 25,167
Trade payables 97,078 (49,028)
Other receivables/payables (31,122) 17,450
Other (8,262) (2,907)
From operating activities 162,447 160,243
Cash flows arising from dividends received from joint ventures and associates 59,311 65,712
Cash flows from finance income and expense (17,264) (24,283)
Cash flows from taxes on profits 6,845 (19,802)
Cash flow from operating activities 211,340 181,870
From investing activities
Acquisition and disposal of intangible assets and property,
plant and equipment (after deduction of cash acquired) (164,725) (141,417)
Acquisition of investments in subsidiaries and associates and interests in joint ventures
(137,226) (14,307)
(after deduction of cash disposed)
Disposal of investments in subsidiaries and associates and interests in joint ventures 1,358 10,435
Other financial assets 12,881 4,162
Cash flow from investing activities (287,712) (141,127)
From financing activities
Bank borrowings 1,100 (30,745)
Long-term liabilities 174,532 252,621
Paying off borrowings (46,279) (222,346)
Dividend payments (50,000) (50,000)
Cash flow from financing activities 79,353 (50,470)
Cash flow during the year 2,980 (9,727)
Cash as at 1 January 49,410 59,137
Cash as at 31 December 52,390 49,410
Exchange differences - -
Net cash in the consolidated balance sheet 52,390 49,410
42

DELTA Financial statements 2011
Accounting policies
DELTA N.V.is public limited liability company formed under
Dutch law, and is the parent company of a number of
subsidiaries active in:
• electricity generation and the transportation
and supply of energy,
• environmental services concerned with waste management
and industrial cleaning,
• provision of cable services for both analogue and digital
television as well as for internet and digital telephony
over cable,
• development and production of sustainable energy
relating to wind,
• water activities.
The group also has interests in a number of joint ventures
and various investments in associates.
The owners of DELTA N.V. are the Province of Zeeland,
the municipalities of Zeeland, certain municipalities of
South Holland and North Brabant and the Provinces of
South Holland and North Brabant.
DELTA N.V.is domiciled, in accordance with its Articles
of Association, at Poelendaelesingel 10, Middelburg.
The following changes occurred in the consolidation in 2011:
1. PVNED Holding B.V., in which DELTA Energy B.V. has a 50%
interest, acquired 99.9 percentile of the shares of Arbel N.V.
(Belgium) on 6 January 2011.
2. Promar B.V. was wound up at the end of February 2011.
3. The 35% interest held by Indaver N.V. in GRL Glasrecycling
N.V. (Belgium) was sold on 6 May 2011.
4 All the shares of Solland Solar Energy Holding B.V. were sold
on 22 July 2011.
5. With effect from 26 Augustus 2011, DELTA Energy B.V. has
held 99.9% of the shares of DELTA Energy Belgium N.V.,
the single remaining share being held by DELTA N.V.
6. On 30 September 2011, the shareholding of DELTA Energy
B.V. in N.V. EPZ was increased from 50% to 70%.
7. All the shares of RGS Development B.V. and Solwafer B.V.
were sold on 18 October 2011.
8. The company Laarakker Landbouw B.V. was incorporated
on 18 November 2011. The company is a wholly-owned
subsidiary of Ecofuels B.V., which is in turn 50%-owned
by DELTA Milieu Biofuels B.V.
9. Indaver N.V. acquired a 40% interest in N.V. Brussel
Compost in November 2011.
10. DELTA Milieu Industriële Reiniging N.V. (Belgium) was
wound up on 23 December 2011.
11. SET Fund II C.V. was established on 23 December 2011;
DELTA Investeringsmaatschappij B.V. has a 70% interest
in the capital of this limited partnership.
The functional currency is the euro. Unless otherwise stated,
all amounts are presented in thousands of euros.
DELTA N.V. availed itself of the option in Part 9, Book 2,
of the Netherlands Civil Code to prepare the company financial
statements in accordance with the IFRS accounting policies
used in the consolidated financial statements with the
exception of the equity-accounted subsidiaries, joint ventures
and associates. The company income statement is presented
in abridged form in accordance with article 402, Title 9, Book 2,
of the Netherlands Civil Code.
The Supervisory Board signed these 2011 financial statements
on 2 April 2012 and released them for publication.
The Supervisory Board will present the financial statements
to the General Meeting of Shareholders for adoption on
25 June 2012.
43

Consolidated financial statements
1. Compliance with IFRS and summary of changes in IFRS recognition and measurement rules
The company’s consolidated financial statements have been
drawn up in compliance with the International Financial
Reporting Standards (IFRS) issued by the International
Accounting Standards Board (IASB) and the interpretations
published by the International Financial Reporting
Interpretation Committee (IFRIC) of the IASB, as endorsed by
the European Commission up to year-end 2011.
In comparison with the previous financial year, new standards,
interpretations or supplements/improvements were issued
by the IASB and approved by the European Commission for
adoption within the European Union in 2011. Those changes
not yet adopted by the EC are not mentioned.
IFRS 3 Business Combinations, measurement of NCI
Equity components of non-controlling interests in
the acquiree whose holders have a right to a proportionate
share of the net assets of the entity on liquidation are
measured at acquisition date:
a) either at fair value
b) or at the proportionate share of the equity instruments
in the recognised amounts of the acquiree’s identifiable
net assets.
All other equity components of non-controlling interests are
measured at acquisition-date fair value unless a different
measurement basis is to be used according to another IFRS.
The option of measuring non-controlling interests either at fair
value or at the proportionate share of the equity instruments is
restricted to actual equity instruments and gives the holders
of those instruments the right to a proportionate share of
the net assets on the liquidation.
IFRS 3 Business Combinations, exceptions to the recognition and
measurement principles for share-based payments
This change states that the existing requirements that awards
by the acquirer that are replaced by share-based payments
are to be recognised at acquisition-date amounts (marketbased
measurement) in accordance with IFRS 2 (Share-Based
Payments) also apply to share-based payments that are
not replaced. The amendment also states that the existing
requirements that the market-based amounts of replacement
awards are to be allocated between the acquisition cost of
the business combination and the subsequent award also
apply to all replacement awards regardless of whether the
acquirer is obliged to replace the rewards or does so voluntarily.
This is also covered in an amendment to the implementation
guidelines, in the form of a clarification.
44

DELTA Financial statements 2011
IFRS 7 Financial Instruments: Disclosures, nature and extent of
risks arising from financial instruments.
The amendments encourage the disclosure of qualitative
information in the context of required quantitative disclosures
in order to give users an overall picture of the nature and extent
of risks connected with financial instruments. The amendments
also clarify that the required level of information to be provided
in relation to credit risk and security obtained sheds light on
the information to be provided in relation to renegotiated loans.
IAS 1 Presentation of Financial Statements, information to be
included in the statement of changes in equity.
This amendment clarifies that the analysis of the unrealised
income in each component can be included either in
the statement of changes in equity or in the notes. There is also
an addition concerning the presentation of dividend per share.
Also, statement of changes in unrealised income may
be presented as part of the statement of changes in equity or
may be disclosed separately in the notes.
Transitional requirements for IAS 21, IAS 28 and IAS 31,
due to changes arising from IAS 27 Consolidated and
Separate Financial Statements.
The amendments to IAS 21 (The Effects of Changes in
Foreign Exchange Rates) concern the disposal of all or part
of a foreign operation.
In IAS 28 (Investments in Associates), the amendments
concern the loss of significant influence over an investee and
the recognition of investments in associates in the separate
financial statements.
In IAS 31 (Interests in Joint Ventures), the amendments concern
the loss of joint control and recognition of an interest in a joint
venture in the separate financial statements.
The following new standards, interpretations or revisions have
been approved for use within the European Union but do not
have any effect or any material effect on the 2011 financial
statements of DELTA N.V.
1. Amendments to IFRS 1 and IFRS 7, to provide limited
exemption from comparative IFRS 7 disclosures on first-time
adoption.
2. IAS 24 revised, Third-Party Disclosures.
3. Amendments to IAS 32, Financial Instruments, Presentation
of Classification of Rights Issues.
4. Amendment to IFRIC 14, Prepayments of Minimum Funding
Requirements.
5. IFRIC 19, Extinguishing Financial Liabilities with Equity
Instruments.
6. Annual improvements to the IFRS standards: IFRS 1
First-Time Adoption of IFRS
7. IAS 34 Interim Financial Reporting
8. IFRIC 13 Customer Loyalty Programmes.
The change to IFRS 7 Financial Instruments concerning transfer
of financial assets first becomes applicable with effect from
1 January 2012. Not adopting this amendment early, in the
opinion of the Executive Board, is not detrimental to the view
which is presented of DELTA’s financial position.
45

Consolidated financial statements
2. General
2.1 Government grants
Government grants are recognised as soon as it is reasonably
certain that the conditions for obtaining the subsidy are or
will be met and that the grants have been or will be received.
On capitalisation of investment projects, grants received
and contributions to construction costs are deducted from
the acquisition cost of the assets. Operating subsidies are
generally deducted from the procurement costs.
Subsidies in the form of tax breaks are taken into account
when calculating the taxable amount.
2.2 Estimates and assumptions
The preparation of financial statements entails the used of
estimates and assumptions based on past experience and on
factors considered acceptable in the management’s judgement.
These estimates mainly relate to the revenues from supplying
and transporting electricity and gas to the domestic and smallbusiness
market, owing to staggered meter readings, to the
deferred tax assets and to the amount of the provisions.
They affect the figures in the financial statements, which may
vary from the actual figures. The effects of changes in estimates
are recognised prospectively in the income statement.
Changes in estimates can also lead to adjustments in assets
and liabilities or in components of equity. Such changes in
estimates are recognised in the period in which they occur.
In the notes to the balance sheet and the income statement,
separate disclosures are made of special aspects relating to
estimates and assumptions.
2.3 Impairment of assets
During the year, assessments are made for indications
that assets may be impaired. If so, an estimate is made of
the asset’s recoverable amount, equal to the higher of fair value
less costs to sell and value in use. If the fair value less costs to
sell results in unavoidable costs, the carrying amount is written
down accordingly. Value in use represents the present value of
estimated future cash flows, based on internal business plans
approved by management, discounted using a pre-tax discount
rate that reflects current market assessments of the time value
of money and the risks specific to the asset. Annual impairment
tests are performed for recognised goodwill.
Impairment losses are recognised if the carrying amount of
an asset or the cash-generating unit to which the asset belongs
exceeds the recoverable amount. Impairment of assets
attributed to cash-generating units is first deducted from
the carrying amount of the goodwill attributed to the cashgenerating
units (or groups of units) and then, pro rata, from
the carrying amount of the other assets of the unit or group of
units. The carrying amount of the assets concerned is never
less than their individual recoverable amount.
An impairment loss is reversed if it is established that there
has been a change in the basis on which the recoverable
amount was previously determined, but only to the extent that
the carrying amount of the asset after such reversal does not
exceed the carrying amount of the asset, less depreciation,
if no impairment had occurred. Impairment of goodwill is
not reversed. Impairment losses and reversals thereof are
recognised through profit or loss.
46

DELTA Financial statements 2011
3. Basis of consolidation
2.4 Segment information
Further information is provided by business segment.
Segmentation reflects DELTA N.V.’s management and internal
reporting structure. Inter-segment supplies are settled at
market prices.
2.5 Foreign currencies
Assets and liabilities denominated in foreign currencies
are translated into euros at the exchange rates prevailing at
year-end. Differences resulting from movements in exchange
rates are recognised in profit or loss in so far as they do not
relate to the net investment in foreign entities, in which case
they are recognised in equity as part of other comprehensive
income. Income and expenses denominated in foreign
currencies are translated into euros at the exchange rates
prevailing at the time of the transaction.
The consolidated financial statements comprise the financial
data of DELTA N.V.and its subsidiaries.
Subsidiaries are legal entities and partnerships in which DELTA
controls the operating and financial policy decisions. Existing
and potential voting rights that can currently be exercised or
converted are taken into account in assessing control.
The existence of other agreements that allow DELTA N.V.to
govern the operating and financial policy are also taken into
account.
Subsidiaries are included in the consolidation from the date
on which control is obtained. Consolidation is discontinued
with effect from the date on which control no longer exists.
Subsidiaries are fully consolidated, with 100% of equity and
results included in the consolidation. If DELTA’s interest in a
subsidiary is less than 100%, the non-controlling interest is
recognised separately in the balance sheet and the income
statement.
In the case of put options, the corresponding non-controlling
interest is classified as current or non-current liabilities.
The exercise of the put option, acquired in 2007, is seen as
part of the purchase price, ultimately affecting the amount of
goodwill. Put options are accordingly treated in the same way
as an earn-out clause, in accordance with IFRS 3. Acquisitions
are accounted for using the purchase method. Subsidiaries’
accounting policies are changed where necessary to ensure
consistency with the policies applied by DELTA.
47

Consolidated financial statements
4. Basis of recognition and measurement of assets and liabilities
The financial statements have been prepared according to
the historical cost convention, except for measurement of the
carrying amount of derivatives (financial instruments), which is
based on fair value. All transactions in financial instruments are
accounted for on the transaction date.
4.1 Intangible assets
Intangible assets comprise goodwill arising on acquisition,
development costs, software, customer records and acquired
transport rights.
Goodwill
The goodwill represents the positive difference between
the acquisition cost of subsidiaries and the fair value of the
acquisition. Goodwill paid on the acquisition of subsidiaries
is recognised as an intangible asset. Goodwill arising on the
acquisition of an interest in a joint venture or an investment in
an associate is included in the cost of the relevant investments.
If the cost is lower than the fair value of the identifiable
assets, liabilities and contingent liabilities acquired (negative
goodwill), the difference is recognised directly as income.
Development costs
Development expenditure is measured at historical cost and
amortised over a period of 10 years according to the pattern of
the additional cash flows generated by the acquired process
knowledge.
Software
Capitalised software is carried at historical cost less
amortisation. In principle, straight-line amortisation is applied
over a five-year period. The useful life is assessed annually. Any
adjustments are accounted for prospectively.
Customer contracts
Customer contracts are measured at cost and amortised
according the pattern of the additional cash flows generated by
the acquired accounts.
Transport rights
Transport rights are measured at cost and amortised on a
straight-line basis over a period of 20 years. The useful life
is assessed annually. Any adjustments are accounted for
prospectively.
The carrying amount of goodwill comprises the historical
cost less the accumulated impairment. Goodwill is not
amortised. Annual impairment tests are performed to identify
any impairment of goodwill. For the purposes of these tests,
goodwill is allocated to cash-generating units. If a transaction
qualifies as a transaction between owners, the difference
between acquisition cost and fair value is recognised in equity.
48

DELTA Financial statements 2011
4.2 Property, plant and equipment
Property, plant and equipment is stated at cost less
accumulated depreciation on a straight-line basis over the
estimated useful life, determined on the basis of technical and
economic criteria, taking account of the estimated residual
value, less any accumulated impairment losses. In accordance
with IFRIC 18, third-party contributions to construction costs of
property, plant and equipment are no longer deducted from the
carrying amount of the assets but recognised under liabilities
as deferred revenue.
Also included in property, plant and equipment is the
discounted amount that is expected to be necessary for
capping landfill sites when landfill activities come to an end.
Depreciation is based on the actual period for which the landfill
capacity is used. Changes in residual values as a result of
technical and economic developments and the consequences of
applying a different discount rate are recognised in the carrying
amounts of the assets concerned and recognised in profit or
loss in future years by means of depreciation. In the case of
assets which have been fully depreciated, the difference is
expensed immediately.
Directly attributable external financing expenses for assets
(construction period interest) are included in the cost. If assets
consist of components with different depreciation periods and
residual values, the components are recognised separately.
Investments for the replacement of components are capitalised,
with simultaneous write-down of the component to be replaced.
The estimated life and the estimated residual value are
assessed annually when the business plan is produced. The
carrying amount is adjusted accordingly if impairment tests
indicate impairment.
Property, plant and equipment under construction is stated
at the costs incurred as at the balance sheet date, including
the costs of materials and services, direct staff costs and an
appropriate share of directly attributable overhead costs.
In 1999, Indaver entered into a cross-border lease with an
American investor for the use of lines 1 and 2 of the incineration
plant in Doel, whereby the legal and economic ownership
of the assets remained with the company. These assets are
accordingly recognised in the consolidated financial statements
on the basis of the accounting policies applied for property,
plant and equipment.
4.3 Financial assets
General
A business combination is the bringing together of separate
entities or businesses into one reporting entity. A business
combination as defined is accounted for by applying the
purchase method, which involves the following steps:
1. identifying an acquirer;
2. measuring the cost of the business combination; and
3. allocating the acquisition-date cost of the business
combination.
The cost of a business combination is the aggregate of the
fair values, at the date of exchange, of assets given, liabilities
incurred or assumed and equity instruments issued by the
acquirer plus any costs directly attributable to the business
combination. Under IFRS 3 (as approved by the EU in 2004),
the sum was increased for costs directly attributable to the
business combination. Since the revision of IFRS 3 (applied
with effect from 2009) the costs directly attributable to the
acquisition are no longer recognised as cost of the business
combination but are recognised directly in profit or loss.
Goodwill is measured as the value by which the cost of the
business combination exceeds the acquirer’s interest in the
net fair value of identifiable assets, liabilities and contingent
liabilities. Negative goodwill is recognised directly in profit or
loss and non-controlling interests are recognised in equity.
Joint ventures, associates and other investments
Joint ventures are contractual arrangements whereby DELTA and
one or more other parties undertake economic activities that
are subject to joint control by all parties.
Associates are entities over which DELTA N.V. directly or
indirectly has significant influence, but not control. Generally
speaking, this refers to entities in which DELTA N.V. can exercise
between 20% and 50% of the voting rights.
49

Consolidated financial statements
Interests in joint ventures and investments in associates are
recognised in the consolidated financial statements using the
“equity method”. According to this method, the investments are
initially carried at cost, i.e. the fair value of the underlying asset
or liability, including goodwill. If the fair value is higher than the
cost price, the result will be added to the equity participation.
The share in the profits or losses is recognised in the carrying
amount each year and dividend distributions are deducted.
Accumulated losses of a joint venture or associate in excess of
the carrying amount are not recognised unless DELTA N.V. has
an obligation or has made payments to settle such losses.
Other investments are entities in which DELTA N.V. has an
interest of less than 20%. In the consolidated financial
statements, they are recognised at fair value unless insufficient
information is available, in which case they are carried at cost.
Undistributed profits of a joint venture or an associate and
direct increases in equity at a joint venture or associate, whose
distributions cannot be received without restriction, are added
to the statutory reserve.
Loans to other investment entities
Loans granted to investees or third parties are carried at face
value, i.e. amortised cost. Where necessary, provisions are
recognised for bad debts and are deducted from the carrying
amount.
Deferred tax
Financial assets also includes deferred tax assets, arising
from the difference between reported amounts and recognised
amounts for tax purposes and from tax loss carryforwards.
Deferred tax assets and liabilities are recognised at face value
calculated at standard corporate income tax rates enacted
or substantially enacted at the end of the reporting period.
Deferred tax assets are recognised if it is reasonable to assume
that future taxable profits will be available, permitting them
to be realised. The recognition of a deferred tax asset is
reassessed each year.
4.4 Inventories
Construction and maintenance materials are stated at the
lower of cost, on the basis of the first-in first-out (FIFO) method,
and the net selling price, less a provision for obsolescence.
Impairment losses on inventories are expensed and disclosed
separately.
4.5 Receivables
Trade receivables are measured at fair value on initial
recognition and subsequently carried at amortised cost less
impairment. The short time horizon means that amortised cost
is the same as the face value of the receivables as a rule.
4.6 Construction contracts
DELTA applies the percentage of completion method to
determine construction contract costs and revenues to
be recognised in the income statement for the reporting
period. The percentage of completion is based on production
measurements. Work in progress on construction contracts is
recognised at cost less a provision for expected losses and
less invoiced instalments. The profit realised in proportion to
the percentage of completion is included in the carrying amount
if it can be reliably measured.
4.7 Non-current assets held for sale and discontinued
operations
DELTA classifies an asset (or disposal group) as held for sale
if its carrying amount will be recovered principally through a
sale transaction rather than through its continued use. For this
to be the case, the asset (or disposal group) must be available
for immediate sale in its present condition and its sale must be
highly probable and expected to take place within one year.
On recognition of a group of assets as being held for probable
or definite sale, the liabilities directly associated with those
assets will be included in the carrying amount. Immediately
after classification as held for sale, the amount of the assets
is measured at the lower of carrying amount and fair value less
costs to sell and depreciation is discontinued. Any impairment
losses are expensed.
50

DELTA Financial statements 2011
4.8 Cash
Cash includes not only cash but also cash equivalents that can
be converted into cash with no material risk of impairment.
Cash is carried at fair value.
4.9 Shareholders’ equity
Movements in shareholders’ equity are presented in the
consolidated statement of changes in equity.
The company’s authorised capital amounts to EUR 9,080,000
divided into 20,000 shares, each with a nominal value of
EUR 454. As at 31 December 2011, EUR 6,937,120 was issued
and paid up. Dividends are recognised as a liability in the
period in which they are declared.
4.10 Provisions
Provisions are recognised in respect of legal or constructive
obligations relating to operations. The provisions are carried
at the present value of the expected expenditure. The present
value is computed using a discount rate before tax reflecting
the current market view of the time value of money.
The expected expenditure within one year of the balance sheet
date is included in current liabilities.
4.11 Employee benefits
Provisions relating to pension obligations and health insurance
costs are determined on an actuarial basis. The related
liabilities are presented separately in the balance sheet.
This is only the case at the subsidiary Indaver. Indaver provides
post-employment benefits for most of its employees. These
benefits are paid under defined contribution plans and defined
benefit plans involving both pension insurance and unfunded
arrangements. The contributions payable under the defined
contribution plan are recognised immediately in the income
statement. For the defined benefit plan, the cost of each benefit
payment is determined separately using the actuarial Projected
Unit Credit Method.
The company recognises part of the actuarial gains or losses in
profit or loss if the accumulated unrecognised gains and losses
at the end of the prior reporting period exceeded 10% of:
• the present value of the gross amount of the defined benefit
obligation at that date; and
• the fair value of the plan assets at that date,
any such excess or deficit being divided by the expected
average remaining working lives of the employees participating
in the plan.
4.12 Non-current liabilities
Non-current liabilities are measured at amortised cost, applying
the effective interest method. Repayment commitments on noncurrent
liabilities due within one year are included in current
liabilities.
With finance leases (in which all the risks and rewards of
ownership are borne by the lessee), the finance lease is
recognised as an asset at the start of the lease period and the
liabilities are included in equity and liabilities at fair value. The
depreciation of the asset is calculated according to the rules for
property, plant and equipment.
With operating leases (in which all the risks and rewards of
ownership are borne by the lessor) the lease payments are
recognised in the income statement on a straight-line basis
over the lease term.
The non-current portion of deferred revenue is classified as a
non-current liability. The portion that is released in the next
reporting period is included in current liabilities. The portion
relating to the current reporting period is included in revenue.
4.13 Put options
The put options are recognised at fair value attributable to the
put option holder concerned, less any dividends paid. The value
is based on the indirect recoverable amount of the appropriate
non-controlling interest.
51

Consolidated financial statements
5. Basis of recognition and measurement of financial instruments
5.1 Financial instruments
DELTA uses financial instruments to manage and optimise
normal market risks associated with the company’s energy,
currency and interest rate positions. DELTA applies IAS 32
Financial Instruments: Disclosure and Presentation and IAS 39
Financial Instruments: Recognition and Measurement. These
standards require derivatives to be measured and recognised
at fair value through profit or loss and the trading contracts are
accounted for in the income statement on this basis.
Definition
A derivative is a financial instrument or other contract falling
within the scope of IAS 39, with the following three features:
• the value changes as a result of movements in a particular
interest rate, price of a financial instrument, commodity
price, exchange rate, index of prices or interest rates or other
variable, provided that, in the case of non-financial variables,
the variable is not specific to a contract party (also known as
the ‘underlying asset’);
• no or only a minor net initial investment is required in relation
to other types of contract that respond in similar ways to
movements in market factors; and
• settlement takes place in the future.
5.2 Derivatives
DELTA trades in contracts for electricity, gas, coal, oil, CO 2
certificates and currencies relating to the current year and the
three following years. DELTA regards the markets for these
commodities to be liquid over this time horizon, reliable
prices being available from brokers, markets and suppliers
of price information. The fair value of commodity contracts is
calculated on the basis of these published prices; in-house
valuation models are not used. Adjustments are only made to
the published prices for the months, quarters or years ahead
in order to match the relative periods in the trading systems.
DELTA also uses derivatives such as interest rate swaps. The
fair value of interest rate swaps is measured on the basis of
yield curves provided by, amongst others, brokers and De
Nederlandsche Bank.
Classification and netting
Derivatives are classed as current or non-current assets if
the fair value represents a gain and as current or non-current
liabilities if the fair value represents a loss. Receivables and
payables in respect of derivatives for different transactions
with the same party are shown net where there is a contractual
or legally enforceable right of set-off and DELTA also settles the
relevant cash flows on a net basis.
Recognition of fair value gains and losses
Pursuant to IAS 39, energy commodity contracts (electricity,
gas, coal, oil and CO 2
certificates, as well as the related foreign
currency positions) and interest rate swap contracts are
regarded as derivatives. IAS 32 required and IAS 39 and IFRS
7 require all derivatives to be measured at fair value from the
time of initial recognition.
The general principle is that adjustments to the fair value of
derivatives should be recognised through profit or loss.
There are, however, two exceptions.:
1. accrual accounting: DELTA accounts for commodity
contracts intended for its own use on an accruals basis,
which means that interim increases in value are not
reflected in the results. Such transactions are recognised as
purchases or sales at the time of settlement, at the prices
obtaining at that time;
2. hedge accounting: this affords the possibility of limiting the
effect of fair value gains and losses on the results by taking
account of opposite effects on results due to fair value gains
and losses on the hedge and on the hedged position. With
hedge accounting, fair value gains and losses on derivatives
are recognised (via the statement of changes in unrealised
income) in equity until the hedged position/transaction is
settled.
52

DELTA Financial statements 2011
Hedge accounting
DELTA uses derivatives to hedge price and currency risks arising
from energy commodity contracts (electricity, gas, coal and
oil). Interest rate swaps are also used to hedge the risk of cash
flow volatility due to interest rate movements. DELTA uses cash
flow hedging for this purpose, contracting hedging instruments
to offset the exposure to variations in existing and future cash
flows that could ultimately affect the results. The hedges are
attributed to a specific risk relating to a balance sheet item or
a highly probable forecast transaction. The effective portion
of the fair value gain or loss is recognised directly in hedge
reserves in equity (through the statement of comprehensive
income). The ineffective portion of the gain or loss on the
hedging instrument is recognised in the income statement.
The cumulative amounts recognised in equity are taken to the
income statement in the same period as the hedged transaction
Criteria for the application of hedge accounting
For hedge accounting to be applied, there are strict rules with
regard to documentation and assessment of effectiveness. A
derivative can be included in hedge accounting if it complies
with the following criteria:
1. at the inception of the hedge there is formal designation
and documentation of the hedging relationship and the risk
management objective and strategy for undertaking the
hedge;
2. for cash flow hedges, a forecast transaction that is the
subject of the hedge must be highly probable and must
present an exposure to variations in existing or future cash
flows that could ultimately affect the results;
3. the effectiveness of the hedge can be reliably measured;
4. the hedge is expected to be highly effective;
5. the hedge is assessed on an ongoing basis and determined
actually to have been highly effective.
Assessment of hedge effectiveness
DELTA formally assesses whether the derivatives used as
hedging instruments have been highly effective in mitigating
changes in the fair value or cash flows attributable to the
hedged position, both at the inception of the hedge and during
its life. To this end, DELTA assesses and determines whether
changes in the fair value or cash flows attributable to the
hedged position are offset by changes in the fair value or cash
flows attributable to the hedge within a range of 80% to 125%.
The ineffective portion of a hedging relationship, in a fair
value hedge, is the extent to which changes in the fair value of
the derivative differ from the changes in the fair value of the
hedged position or, in a cash flow hedge, the extent to which
changes in the fair value of the derivative exceed the fair value
movements in the expected cash flow.
Ineffective hedges and gains and losses on components of
derivatives that are disregarded in the assessment of the
effectiveness of a hedge are recognised directly in the income
statement. DELTA discontinues hedge accounting if the hedging
relationship is no longer effective or is no longer expected to
remain effective.
53

Consolidated financial statements
6. Basis of determination of results
In the income statement, all financial consequences arising
from decisions to dispose of or wind up operations, including
normal trading results for 2011, are accounted for in profit after
tax from discontinued operations.
6.1 Revenue
Revenue represents income arising directly from the supply of
goods and services to third parties, net of any discounts and
net of sales taxes, such as VAT and regulating energy tax (REB).
Revenue is recognised when the material risks and benefits
of ownership of the goods have been transferred to the buyer.
Revenue from services is recognised proportionate to the
service delivered at the end of the reporting period.
Recognition of revenue from transport services and the
supply of electricity and gas is based on supplies during the
calendar year. Revenue from supplies to domestic and smallbusiness
users is partly estimated as meter readings are taken
throughout the year.
Recognition of revenue from electricity sales is based on the
assumption that electricity generated by the group’s own
production facilities (including joint ventures) will be supplied
to third parties, while the power supplied to end-users will be
procured entirely from third parties.
In the case of gas and electricity trading contracts, which do
not involve physical delivery, the amounts of purchases and
sales are netted off.
6.2 Net operating expenses
Net operating expenses are recognised and measured on the
basis of actual performance and according to the accounting
policies set out above. The operating expenses are accounted
for in the year to which they relate. Gains are recognised in the
year in which they are realised; losses are recognised in the
year in which they are identified.
6.3 Net finance income (expense)
Finance income and expense is attributed to the period to
which it relates, in accordance with the effective interest
method. DELTA capitalises the costs of external financing
(construction period interest) as appropriate.
6.4 Corporate income tax
Corporate income tax on the result is calculated by applying
the standard current rate to the profit before tax shown in the
financial statements, taking account of permanent differences
between this result and the result based on tax valuations.
Within the DELTA N.V. tax group, DELTA uses the no-settlement
method, except in the case of transferable tax-loss
carryforwards predating the date of inclusion in a tax group. For
the network operations, the separate return approach is used
because of the special regulatory regime.
Revenue from telecommunications covers subscription fees for
signal distribution as well as income from internet services and
other data transmission services.
Income from environmental services and directly related
expenses over environmental services and operations in the
renewables segment are allocated to the period in which the
services are supplied.
Revenue from construction contracts is recognised in the
income statement in accordance with the percentage of
completion method.
54

DELTA Financial statements 2011
7. Basis of the cash flow statement
The cash flow statement is prepared using the indirect method,
based on the actual cash flows. A distinction is made between
operating, investing and financing activities. Although the
current portion of the non-current liabilities is recognised in
the balance sheet as part of other liabilities (under current
liabilities), the corresponding movement in the current portion
of the non-current liabilities in the cash flow statement is
included in the cash flow from financing activities.
The share in the profits of associates (in the form of dividend
payments), movements in finance income and expense (due to
added interest on provisions) and tax on profits are based on
realised cash flows.
55

Consolidated financial statements
Notes to the consolidated balance sheet
1. Intangible assets
(x EUR 1,000)
Total Goodwill R&D Software Customer
contracts
Transport
rights
2010
Carrying amount as at 1 January 2010 514,878 425,116 712 56,913 5,637 9,831 16,671
Investments 18,595 - 1,717 16,878 - - -
Amortisation (26,794) - (32) (24,591) (1,160) (1,011) -
Impairment (89,028) (85,906) (2,271) (851) - - -
Disposals (358) - - (358) - - -
Acquisitie 472 472 - - - - -
Earn-out 465 465 - - - - -
Other movements 1,719 - (1) 1,720 - - -
Carrying amount as at 31 December 2010 419,949 340,147 125 49,710 4,477 8,820 16,671
Accumulated amortisation and impairment 277,927 99,458 15,405 127,825 21,015 10,488 3,736
Acquisition cost as at 31 December 2010 697,876 439,605 15,530 177,535 25,492 19,308 20,407
Other
2011
Carrying amount as at 1 January 2011 419,949 340,147 125 49,710 4,477 8,820 16,671
Investments 16,507 - - 14,188 - - 2,319
Amortisation (25,894) - - (24,138) (745) (1,011) -
Impairment (125) - (125) - - - -
Disposals (251) - - - - - (251)
Earn-out (149) (149) - - - - -
Other movements (15,236) - - (939) - - (14,297)
Carrying amount as at 31 December 2011 394,801 339,998 0 38,821 3,732 7,809 4,442
Accumulated amortisation and impairment 303,946 99,458 15,530 151,963 21,760 11,499 3,736
Acquisition cost as at 31 December 2011 698,747 439,456 15,530 190,784 25,492 19,308 8,178
Amortisation periods in years n/a variable 5 variable 20 variable
(x EUR 1,000)
Allocation of goodwill to cash-generating units 31-12-2011 31-12-2010
Indaver 326,279 326,428
Milieu 2,486 2,486
Kreekraksluis 1,390 1,390
Zeelandnet 9,843 9,843
Total goodwill 339,998 340,147
56

DELTA Financial statements 2011
General
The economic crisis and a combination of market developments
and product developments led in prior years to a reappraisal of
the recoverable amount of operations in the field of sustainable
energy, resulting in 2010 in a decision to discontinue the solar
energy activities and therefore to write off the entire amount of
the associated intangible assets.
In 2011 there were no significant impairment losses.
Goodwill
IFRS requires an impairment test to be performed each year to
determine whether the carrying amount of goodwill paid in the
past for subsidiaries should be written down.
Software
In connection with the enhancement and replacement of
several important software applications, mainly in connection
with the commercial activities, ICT assets were again phased
out and written down in 2011, involving a total amount of EUR
9.5 million.
Other movements
The other movements, of EUR 14.3 million negative, concern
the reclassification of the SET Fund investment from intangible
assets to financial assets, owing to measuring the amount of
the investment in the limited partnership at fair value.
Indaver
With regard to Indaver’s activities, impairment calculations
were made at the level of its cash flow generating units. The
management based cash flow predictions on the business
plans for 2012-2014 and in a number of cases on a longer time
frame. An infinite series was used as from the end of the time
frame, taking account of the available information relating to
market developments. No use was made of extrapolations with
growth rates in excess of inflation.
The impairment tests were carried out using a specific discount
rate for each entity. Allowing for the ratio of debt to equity that
is customary in the market and the risk perceptions in each
country and sector, a number of scenarios were worked out with
regard to the discount rate. The discount rate per entity ranged
from 8.1% to 9.7% before tax, account being taken of tax rates
applicable locally.
These calculations gave no grounds for recognising any
impairment.
57

Consolidated financial statements
2. Property, plant and equipment
(x EUR 1,000)
Total
Land and
buildings
Plant and
equipment
Other
assets
Assets
under
construction
Third-party
contributions
2010
Carrying amount as at 1 January 1,032,810 215,626 863,328 27,031 89,778 (162,946)
Investments 131,170 2,215 36,095 2,271 92,299 (1,710)
Capitalized interest 2,112 - - - 2,112 -
Depreciation (97,408) (12,893) (86,267) (4,284) (401) 6,437
Impairements (88,212) (23,415) (49,404) (3,652) (11,741) -
Disposals (6,797) (4,605) (329) (424) (2,102) 663
Change in consolidation 9,949 - 9,949 - - -
Other movements (6,217) 1,638 18,265 (6,854) (15,962) (3,304)
Carrying amount as at 31 December 977,407 178,566 791,637 14,081 153,983 (160,860)
Carrying amount before deduction of contributions 1,138,267 178,566 791,637 14,081 153,983
Accumulated depreciation and impairment 1,203,936 150,930 998,023 54,582 401
Acquisition cost as at 31 December 2,342,203 329,496 1,789,660 68,663 154,384
2011
Carrying amount as at 1 January 977,407 178,566 791,637 14,081 153,983 (160,860)
Investments 151,329 4,236 20,723 160 127,122 (912)
Capitalized interest 249 - - - 249 -
Depreciation (83,567) (10,931) (76,451) (2,850) - 6,665
Impairements (6,245) (1,218) (2,054) 1,104 (4,077) -
Disposals (3,243) (372) (221) (60) (3,054) 464
Other movements (176) 21,294 166,292 1,862 (190,104) 480
Carrying amount as at 31 December 1,035,754 191,575 899,926 14,297 84,119 (154,163)
Carrying amount before deduction of contributions 1,189,917 191,575 899,926 14,297 84,119
Accumulated depreciation and impairment 1,300,413 163,079 1,076,528 56,328 4,478
Acquisition cost as at 31 December 2,490,330 354,654 1,976,454 70,625 88,597
Depreciation periods in years 10 - 40 7 - 40 5 - 15 n/a
The investments in plant and equipment (including the movements in assets under construction) mainly relate to the expansion and replacement of electricity and gas
network assets (network operations) and the expansion and upgrading of waste processing plant and equipment (Indaver). The completion of the Meath Waste-to-Energy
Facility (in Ireland) at the end of September 2011 explains the large movement from assets under construction to plant and equipment.
The impairment mainly relates to the preparation costs capitalised in the past in connection with obtaining permits for a second waste-to-energy facility in Ireland
(EUR 4.1 million). By contrast, the write-down of the assets of DELTA Industriële Reiniging made in 2010 has been reversed on the basis of the latest development in the
value in use.
As required by IFRIC 18, with effect from 1 January 2009, contributions received from third parties towards the costs of constructing property, plant and equipment are no
longer deducted from the carrying amount of the assets concerned but recognised instead as deferred revenue.
58

DELTA Financial statements 2011
3. Interests in joint ventures, investments in associates and other investments
(x EUR 1,000)
Total Joint Ventures Associates Other investments
Carrying amount as at 1 January 2010 548,271 485,776 54,780 7,715
Investments/Disposals 1,035 - 1,035 -
Dividends received (65,711) (61,621) (3,669) (421)
Repayments of capital (13,584) (13,584) - -
Share of profits 62,993 56,693 5,415 886
Impairment (10,755) - (10,755) -
Other movements (687) (1,174) 487 0
Carrying amount as at 31 December 2010 521,563 466,090 47,294 8,179
Carrying amount as at 1 January 2011 521,563 466,090 47,294 8,179
Fair Value adjustments 23,115 - - 23,115
Acquisitions 137,226 137,000 226 -
Negative goodwill 153,979 153,979 - -
Investments/Disposals (1,300) - - (1,300)
Dividends received (59,311) (48,505) (5,217) (5,589)
Share of profits 71,778 60,901 10,602 275
Other movements 20,759 7,046 (78) 13,791
Carrying amount as at 31 December 2011 867,809 776,511 52,827 38,471
On 30 September 2011, DELTA acquired an additional interest of 20% in N.V. EPZ, realising a significant book profit (negative goodwill) on the transaction.
DELTA simultaneously acquired additional tolling agreement rights to take EPZ’s electricity generation output. In view of an expected decision in 2012 concerning
proportionate consolidation, for the present DELTA opted to value the interest in EPZ on an equity basis. IAS 28 requires fair value gains and losses relating to investments
in associates and joint ventures to be recognised in the share in the results of joint ventures and associates. Therefore, the bookprofit on realisation was justified.
The consequences in connection with the recognition of deferred tax liabilities are accounted for in the balance sheet as tax assets or tax liabilities as the case may be.
In 2011, the shares of KEMA were offered for sale, allowing the market value of the shares held by DELTA to be measured reliably and recognised at fair value.
The revaluation of the investment in N.V. KEMA is included in other investments.
Initially, the investment in SET Fund was based on a zero-return basis. As per 2011, that is no longer reality. Therefore, the investment in SET Fund has been relocated from
‘intangible assets’ to ‘other investments’ and is priced at fair value. This has resulted in an impairment of EUR 5 million, lowering the net result by the same number.
59

Consolidated financial statements
3.1 Joint ventures
Summarised balance sheet and income statement information relating to the principal joint ventures (based on 100% interest):
(x EUR 1,000)
Balance sheet 31-12-2011 31-12-2010
Property, plant and equipment 1,850,442 1,884,471
Financial assets 193,739 164,648
Current assets 208,739 223,985
Cash and cash equivalents 330,892 330,685
Total assets 2,583,812 2,603,789
Shareholders’ equity 553,857 550,435
Provisions 608,289 521,440
Non-current liabilities 923,570 1,080,082
Current liabilities 498,095 451,832
Total equity and liabilities 2,583,812 2,603,789
Result 2011 2010
Total income 875,504 810,447
Total expenses 738,541 687,863
Balance 136,963 122,584
The above information relates to the principal joint ventures in which DELTA has an interest, viz.: the electricity generators N.V. EPZ, Elsta B.V. and Sloe Centrale Holding
B.V., the water company Evides N.V. and the waste-to-energy company Sleco-Centrale N.V.
60

DELTA Financial statements 2011
3.2 Associates
Summarised balance sheet and income statement information relating to the principal associates (based on 100% interest):
(x EUR 1,000)
Balance sheet 31-12-2011 31-12-2010
Property, plant and equipment 325,025 184,042
Financial assets 602 7,259
Current assets 28,483 22,710
Cash and cash equivalents 25,804 65,627
Total assets 379,913 279,638
Shareholders’ equity 168,127 86,956
Provisions 7,910 11,458
Non-current liabilities 102,531 144,560
Current liabilities 101,346 36,664
Total equity and liabilities 379,913 279,638
Result 2011 2010
Total income 151,587 153,560
Total expenses 121,709 124,716
Balance 29,877 28,844
This information relates to the principal associates in which DELTA has an interest, viz.: landfill company Intercommunale Hooge Maey cvba and waste-to-energy company
AZN Holding B.V.
In 2010, the numbers were based on the final annual report figures of concerning entities. In 2011, numbers are based on the last known information within DELTA.
61

Consolidated financial statements
3.3 Other investments
All reported entities presented as other investments are
included in the list of non-consolidated companies. The
interests in Decu Beheer B.V. (60%) and Decu C.V. (60%) are
also classed as ‘financial instrument’ as DELTA is unable to
influence the operating processes at all.
In May 2011, the subsidiary Indaver sold its interest in GRL
Glasrecycling N.V
In connection with the implementation of the Borssele
convenant, the Sustainable Energy Technology Fund
(SET-Fund I C.V.) was set up in 2007, with the then energy
companies DELTA (via DELTA Investeringsmaatschappij B.V.
as silent partner) and Essent both having an interest of 50%.
Having regard to the Fund’s articles of association and the
altered shareholding in N.V. EPZ, a new SET-Fund II CV was
established on 23 December 2011 in which DELTA has a 70%
interest and Essent (RWE) a 30% interest in the initial capital
of EUR 10 million. In view of the limited degree of control,
the investments in both entities are classed as financial
instruments and recognised at fair value.
62

DELTA Financial statements 2011
3.4 Transactions with related parties
(x EUR 1,000)
Elsta B.V en Co C.V.
Elsta B.V.
Sales Purchases Trade Trade payables Loans granted Interest
receivables
% Interest 2011 2010 2011 2010 31-12-2011 31-12-2010 31-12-2011 31-12-2010 31-12-2011 31-12-2010 2011 2010
24.75%
25.00%
3,524 3,726 27,107 27,021 359 13,915 2,757 303 132 - - -
N.V. EPZ 70.00% 18,421 42,983 184,775 140,709 262 2,973 3,084 3,807 - - - (2,471)
Sloecentrale Holding B.V. 50.00% 524 1,174 32,616 39,032 47 185 10,021 10,135 - - - -
BMC Moerdijk B.V. 50.00% 2,473 1,616 5,014 5,605 441 133 1,334 524 14,823 16,004 1,087 1,091
Zebra Gasnetwerk B.V. 33.33% 830 - 3,808 233 403 - 375 15 - - 570 -
IC Hooge Maey cvba 30.00% 825 1,090 771 178 115 330 299 118 - - - -
Sleco Centrale N.V. 50.00% 18,730 45,702 55,986 50,629 3,153 2,766 4,948 5,066 4,000 (13,300) - (15)
Evides N.V. 50.00% 33,786 17,233 - - 2,750 4,428 - 4,660 - - - -
Total 79,115 113,524 310,077 263,408 7,530 24,730 22,818 24,628 18,955 2,704 1,657 (1,395)
Transactions with related parties are conducted at arm’s length prices. N.V. EPZ, Elsta B.V. and Sloe Centrale B.V. operate on the basis of telling agreements
(effectively on a cost-plus basis).
Sleco Centrale N.V. also has an internal pricing structure not related to current market prices. Other transactions are at arm’s length.
No allowance for doubtful receivables has been recognised for receivables from related parties since there is no need to do so.
Although DELTA’s shareholders (provincial and municipal authorities) are related parties, there are no material transactions between DELTA and its shareholders.
63

Consolidated financial statements
4. Other financial assets
(x EUR 1,000)
Total
Loans to joint ventures
and associates etc,
Deferred tax
asset
Other financial
assets
Carrying amount as at 1 January 2010 158,845 15,797 88,580 54,468
Change in consolidation (1,785) - (1,785) -
Reversal of current portion 5,561 1,051 - 4,510
New loans 2,342 1,914 - 428
Results 3,428 (2,964) 28,282 (21,890)
Repayments (14,059) (1,003) - (13,056)
Transferred to equity as hedge reserve (35,206) - (35,206) -
Impairment (3,598) - (3,598) -
Other movements 15,628 130 14,783 715
Carrying amount as at 1 January 2011 (long term) 131,156 14,925 91,056 25,175
Current portion of financial assets (4,029) (1,150) - (2,879)
Carrying amount as at 1 January 2011 127,126 13,775 91,056 22,295
Reversal of current portion 4,030 1,150 - 2,880
New loans 5,407 4,818 - 589
Results (30,761) - (30,761) -
Repayments (14,555) (23) - (14,532)
Transferred to equity as hedge reserve 16,098 - 16,098 -
Impairment (2,300) - - (2,300)
Other movements (129) - (543) 413
Carrying amount as at 31 December 2011 (long-term) 104,916 19,720 75,851 9,345
Current portion of financial assets (5,390) (5,350) - (40)
Carrying amount as at 31 December 2011 99,526 14,370 75,851 9,305
4.1 Loans to joint ventures, associates etc.
This concerns loans to joint ventures, associates and other
investment entities. The loans are stated at face value. Of
these loans, an amount of EUR 13.4 million is in the form of
subordinated loans. As at year-end 2011, the weighted average
interest rate was 7.3% (2010:7.3%).
64

DELTA Financial statements 2011
4.2 Deferred tax assets
(x EUR 1,000)
31-12-2011 31-12-2010
Intangible assets and property, plant and equipment 50,090 53,124
Financial assets (55,718) -
Provisions 53,882 18,580
Unutilised tax losses 24,567 31,923
Hedge reserve pursuant to IAS39/derivatives 2,674 (13,027)
Other 355 457
Total deferred tax asset 75,851 91,056
Deferred tax assets relate to the carrying amounts of intangible
assets, property, plant and equipment and previously
recognised provisions. The deferred tax asset relating
to intangible assets and property, plant and equipment is
largely the result of differences between the tax bases and
the carrying amounts for reporting purposes in the balance
sheet at 1 January 1998 (opening balance sheet for tax purposes
for DELTA).
The deferred tax liability is related to the acquisition of the 20%
interest in N.V. EPZ, due to the negative goodwill that has been
processed in the result.
A deferred tax asset is recognised at some companies for tax
loss carry forwards that can be expected to be set against
taxable profits in the years ahead. Talks were being held with
the Dutch Tax Administration at the end of the reporting period
to reach agreement on the amount of these carry forward
losses.
The outcome of these talks may lead to changes in the deferred
tax asset. The deferred tax assets in respect of tax loss carry
forwards are reviewed each year and recognised to the extent
that the losses can be expected to be set against future taxable
profits.
Since 2006, a hedge reserve for unrealised fair value gains
and losses on derivatives/trading contracts has also been
recognised in compliance with IAS 39/32. A deferred tax asset
is also recognised in respect of these unrealised fair value
gains and losses. As at year-end 2011, this hedge reserve was
negative (therefore an asset), resulting in an increase in the
deferred tax asset.
As at year-end 2011, a deferred tax asset amounting to
EUR 21.9 million was not recognised in the balance sheet
because of uncertainty as to when the related tax loss carry
forwards (in the Netherlands and in other countries) might be
utilised or the asset might be realised.
4.3 Other financial assets
In 2011, sale-and-leaseback contracts were terminated. The
repayments received relate to the return of funds placed on
deposit; under the terms of the sale-and-leaseback contracts,
the purchase prices were placed on deposit in favour of the
lessor by way of security. The other financial assets as at yearend
2011 are mainly made up of prepayments.
65

Consolidated financial statements
5. Derivatives and risk management
DELTA N.V. trades in contracts for gas, electricity, coal, oil,
CO 2
certificates and currencies relating to the current year and
the three following years. DELTA N.V. regards the markets for
these commodities to be liquid over this time horizon: reliable
prices are available for them from brokers, markets and
suppliers of price information. Fair values for these contracts
are calculated on the basis of these published prices; in-house
valuation models are not used. Adjustments are only made to
the published prices for the months, quarters or years ahead
in order to match the relative periods in the trading systems.
The prices for delivery beyond 36 months are arrived at by
extrapolation.
DELTA has a contractual obligation to settle forward contracts
on maturity.
This section covers the following topics:
5.1. Derivatives
5.1.1. Relationships of derivatives in the financial statements
5.1.2. Derivatives position
5.1.3. Changes in the hedge reserve
5.1.4. Hierarchy of financial instruments
5.2. Risk management
5.2.1. Risk management
5.2.2. Market risks
5.2.3. Liquidity risk
5.2.4. Credit risk
To hedge interest rate risks, DELTA makes use of derivatives
such as interest rate swaps. The effect of this type of swap
contract is to change loans contracted at floating rates into
fixed-rate loans.
66

DELTA Financial statements 2011
5.1 Derivatives
5.1.1 Relationships of derivatives in the financial statements
(x EUR 1,000)
Assets
2011
Balance of derivatives
Assets
2010
Liabilities
2011
Liabilities
2010
Changes in derivatives
Change in 2011,
assets
Derivatives on the balance sheet (see 5.1.2)
Non-current assets 68,007 51,575 16,432
Current assets 230,250 219,469 10,781
298,257 271,044 27,213
Change in 2011,
liabilities
Non-current liabilities 77,149 31,209 45,940
Current liabilities 223,724 164,677 59,047
300,873 195,886 104,987
Other balance sheet items relating to
derivatives
Hedge reserve (see 5.1.3) (6,044) 41,837 (47,881)
Deferred tax (see 5.1.3) (2,674) 13,027 (15,701)
Non-controlling interest connected with swaps
(904) (1,366) 462
(see 5.1.3)
Sub total (9,622) 53,498 (63,120)
Purchase of interest rate derivatives by DNWB 2,250 2,250
Changes in equity through profit or loss (1,453) 247 (1,700)
Fair value changes in equity through profit or
6,209 19,163 (12,954)
loss
(2,616) 75,158 (77,774)
Total 298,257 271,044 298,257 271,044 27,213 27,213
67

Consolidated financial statements
5.1.2 Derivatives position
(x EUR 1,000)
Assets Liabilities Net
Non-current Current Non-current Current
2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
Commodity contracts
Gas 23,194 29,844 152,004 151,606 (33,408) (10,164) (145,584) (111,135) (3,794) 60,151
Electricity 27,101 4,604 27,446 26,972 (19,508) (10,631) (28,277) (20,691) 6,762 254
Coal 428 5,951 5,523 25,466 (1,733) (2,798) (11,219) (18,480) (7,001) 10,139
Oil 2,013 509 5,368 3,461 (623) - (2,498) (871) 4,260 3,099
Other 1,306 961 10,592 2,001 (13,722) (2,195) (16,218) (5,924) (18,042) (5,157)
Other derivatives
Foreign exchange
13,167 7,162 29,176 9,963 (5,667) (878) (16,807) (2,406) 19,869 13,841
contracts
Interest rate swaps 798 2,544 141 - (2,488) (4,543) (3,121) (5,169) (4,670) (7,168)
Total 68,007 51,575 230,250 219,469 (77,149) (31,209) (223,724) (164,676) (2,616) 75,159
An amount of EUR 63.1 million negative (2010: EUR 139.0 million positive) of the gains and losses on these contracts has been recognised in the hedge reserve.
68

DELTA Financial statements 2011
5.1.3 Changes in the hedge reserve
The changes in the fair value after tax of the derivatives are included in the hedge reserve. This reserve is not freely distributable.
The movements in the hedge reserve over the past two years are presented below.
(x EUR 1,000)
COMMODITY CONTRACTS
SWAPS
Gas Electricity
Coal Oil CO 2
Forex Total Interest Total
rate
swaps
2010
Hedge reserve at 1-1-2010 (gross) (88,908) 45,217 (12,099) (113) (12,972) (2,554) (71,429) (14,051) (85,480)
Changes in 2010
Recognised directly in equity 73,268 (11,668) 12,335 (21) 2,888 6,054 82,856 (4,001) 78,855
Released to income 76,682 (42,321) 9,801 9 6,061 1,503 51,735 8,386 60,121
Total changes in 2010 149,950 (53,989) 22,136 (12) 8,949 7,557 134,591 4,385 138,976
Hedge reserve at 31-12-2010
61,042 (8,772) 10,037 (125) (4,023) 5,003 63,162 (9,666) 53,496
(gross)
Deferred tax (15,260) 2,193 (2,509) 31 1,006 (1,251) (15,790) 2,764 (13,026)
Non-controlling interest 1,366 1,366
Hedge reserve at 31-12-2010 45,783 (6,579) 7,528 (94) (3,017) 3,752 47,373 (5,536) 41,837
2011
Hedge reserve 1-1-2011 (gross) 61,042 (8,772) 10,037 (125) (4,023) 5,003 63,162 (9,666) 53,496
Changes in 2011
Recognised directly in equity (22,373) 9,530 (8,196) 1,645 (14,482) 12,536 (21,340) (970) (22,310)
Released to income (37,560) 1,517 (5,649) 1,386 (3,007) (2,663) (45,976) 5,168 (40,808)
Total changes 2011 (59,933) 11,047 (13,845) 3,031 (17,489) 9,873 (67,316) 4,198 (63,118)
Hedge reserve 31-12-2011 (gross) 1,109 2,275 (3,808) 2,906 (21,512) 14,876 (4,154) (5,468) (9,622)
Deferred tax (277) (569) 952 (727) 5,378 (3,719) 1,039 1,636 2,675
Non-controlling interest 904 904
Hedge reserve at 31-12-2011 832 1,706 (2,856) 2,180 (16,134) 11,157 (3,116) (2,928) (6,044)
69

Consolidated financial statements
The composition of the hedge reserve in relation to the commodities, on a gross basis, as at year-end 2011 is attributable as follows
to the years ahead:
(x EUR 1,000)
COMMODITY CONTRACTS
Gas Electricity Coal Oil CO 2
Forex Total
2012 7,367 (5,245) (3,098) 2,457 (7,532) 8,204 2,154
2013 2,204 701 (710) 200 (9,236) 4,139 (2,701)
2014 (8,608) 6,879 - 248 (4,744) 2,533 (3,692)
2015 145 (60) - - - - 85
Total 1,109 2,275 (3,808) 2,906 (21,512) 14,876 (4,154)
The release from the hedge reserve to profit or loss is recognised in the gross operating margin.
The timing of the expected cash flows does not always coincide
with their recognition in the income statement. This is because
some hedges have a ‘timing effect’. This is the case, for
example, with the majority of gas hedges, in that the gas price
for the first quarter of a year may be determined by the average
oil price over the six months preceding that quarter. The value
of the swaps used in such a hedging relationship, settlement
of which takes place in the six months preceding the quarter
in which delivery is made, is recognised in the hedge reserve
up to the beginning of the delivery quarter, with the gain or
loss recognised in income in the first quarter of delivery. The
maximum time lag on contracts in a hedging relationship is nine
months. During the reporting period, there were no hedging
relationships that were discontinued because an expected
transaction did not go ahead.
70

DELTA Financial statements 2011
5.1.4 Hierarchy of financial instruments
The financial instruments, measured at fair value, are classified in accordance with the following hierarchy
as required by IFRS 7 Financial Instruments:
Level 1:
Quoted prices (not adjusted) in active markets for identical assets or liabilities;
Level 2:
Inputs other than the quoted prices in level 1 that are observable for an asset or liability, either directly (i.e. as prices) or indirectly
(i.e. derived from prices);
Level 3:
Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
(x EUR 1,000)
Fair value hierarchy
Total as at 31 December Level 1: Level 2: Level 3:
2011 2010 2011 2010 2011 2010 2011 2010
Assets
Derivatives 298,257 271,044 - - 298,257 271,044 - -
Equity investments < 20% 29,273 7,795 - - - - 29,273 7,795
Total assets 327,530 278,839 - - 298,257 271,044 29,273 7,795
Equity and liabilities
Derivatives 300,873 195,885 - - 300,873 195,885 - -
Put options 146,511 138,913 - - - - 146,511 138,913
Total equity and liabilities 447,384 334,798 - - 300,873 195,885 146,511 138,913
The fair value of financial instruments (< 20%) rose compared
with the position as at year-end 2010, mainly owing to the
revaluation of the investment in N.V. KEMA.
The put options were distributed to the minority shareholders
with regard to the acquisition of Indaver in 2007. The options
can be exercised from March 2012 to the end of 2014.
Profit attributable to non-controlling interests is added to the
value of the put-option. The exercise price of the put option can
be determined using the discounted cashflow method, taking
several estimates into account. For this reason, DELTA uses a
bandwidth determining the fair value of the put options. The
valuation as at balance date falls within this bandwidth.
There were no reclassifications in 2011 from one level of the fair
value hierarchy to another.
71

Consolidated financial statements
5.2 Risk management
5.2.1 Risk management
DELTA’s risk management policy is designed to limit the
consequences of price volatility in the short term and to track
current market prices in the long term. The Risk Management
Committee, which reports direct to the Executive Board, has
adopted a system of procedures and limits for controlling risks.
These include risk management procedures and guidelines
relating to the company as a whole and procedures and
guidelines covering specific areas.
5.2.2 Market risks
5.2.2.1 Commodity prices
Market risks arise from price movements on the markets on
which DELTA buys and sells (gas, electricity, coal, oil, CO 2
emission rights, currencies, transport capacity, import/export
capacity etc.) These risks are managed systematically, by
buying or selling forward, depending on expected price trends.
The positions are monitored on a daily basis. Trading risks are
mitigated by strictly enforcing a system of limits.
The Risk Management Committee is responsible for enforcing
the risk management policy. The Group Internal Control
department is responsible for the operational conduct of the
oversight and reports to the Risk Management Committee.
DELTA mitigates commodity market risks, currency risks,
interest rate risks, liquidity risks and credit risks by means of
financial instruments, subject to the conditions laid down in the
Risk Policy Document and the Treasury Charter.
The following paragraphs describe the various types of risk and
the way in which DELTA manages the related exposures.
72

DELTA Financial statements 2011
5.2.2.2 Value at Risk
DELTA uses the Value at Risk (VaR) method to assess market
risks on the commodity markets in which it operates. The
method involves various assumptions regarding possible
changes in market conditions. The VaR method is an important
tool to assess market risks within DELTA. The method identifies
the maximum losses likely to be incurred as a result of price
changes over a three-day period with a confidence level of
95% (i.e. the maximum loss might exceed the VaR limit in
just 5% of cases). The VaR is calculated using Monte Carlo
simulations based on historical volatilities and correlations.
Since portfolios include opposing positions and there is an
underlying correlation, the VaR on the total portfolio is smaller
than the sum of that on the individual portfolios.
The VaR method is an important tool for managing the
portfolios within DELTA and the value at risk is therefore
calculated and reported each day. In mid-2011, the basis
on which the total portfolio is subdivided was changed. For
comparison purposes, the VaR on the total portfolio as at yearend
2011 is presented according to both the old and the new
subdivision.
Although the VaR for the Asset Book and for the total portfolio
is reported on a daily basis, it is not used as a management
parameter. The Asset Book is hedged on the basis of a
predetermined disposal schedule to establish the average
market value. Departures from the disposal schedule come
into Trade Books, for which the VaR is the key measure of risk.
During the year, the parameter was within limits.
(x EUR 1,000)
Previous methodology
Value at Risk
31/12/2010 31/12/2011
Trading portfolio 2,275 1,537
Gas hedge portfolio 1,768 2,223
Sales portfolio 747 83
Generation & Allocation-portfolio 13,099 12,479
Diversification across portfolios (5,383) (4,894)
Total 12,506 11,428
New methodology
Value at Risk
31/12/2011
Asset Book 11,436
Trade Books 2,097
Diversification Portfolio’s (2,105)
Total 11,428
73

Consolidated financial statements
5.2.2.3 Cash flow hedges
DELTA uses financial instruments to prevent fluctuations in
expected cash flows in so far as possible. In order to control
the consequences of future movements in market prices, DELTA
uses derivatives such as forwards, options and swaps. The
hedging instruments are derivatives in the commodities traded
by DELTA that are concluded to mitigate cash flow, price and
currency risks. Hedge accounting is applied to cushion the total
change in value of these derivatives.
Where permitted, DELTA accounts for these financial
instruments and physical purchase and sale contracts in a
cash flow hedge in accordance with IAS 39. The item hedged
is the future purchase transaction (power stations, long-term
sourcing) or gas and electricity sales transaction.
(x EUR 1,000)
AMOUNT AT FAIR VALUE
2011 2012 2013 2014 2015 and beyond Total Average price Contract value
Gas forwards (3,805) 752 (10,561) - (13,614) 0.249 (379,492)
Electricity forwards (505) 1,549 9,812 - 10,855 56.043 194,225
Coal swaps (1,622) (687) - - (2,309) 89.742 (67,092)
Oil swaps 1,781 658 367 - 2,807 664.125 (151,765)
CO 2
forwards (5,903) (8,189) (4,747) - (18,839) 14.476 (42,423)
Currency swaps 9,070 3,694 3,070 - 15,834 0.865 (357,443)
Total (984) (2,223) (2,060) - (5,266)
2010 2011 2012 2013 2014 and beyond Total Average price Contract value
Gas swaps 1,560 - - - 1,560 0.24 54,880
Gas swap (Heren) 3,903 - - - 3,903 0.22 (60,644)
Gas forwards 26,437 14,892 1,297 - 42,626 0.21 (322,471)
Electricity forwards 7,825 (1,234) (2,289) - 4,302 56.24 33,179
Coal swaps 6,491 1,797 747 - 9,035 75.85 (66,194)
Oil forwards (196) - - - (196) 563.29 5,971
Oil swaps 320 196 - - 516 573.64 (11,139)
CO 2
forwards (3,443) (753) (668) - (4,864) 16.71 (37,675)
Currency swaps 1,952 3,496 279 - 5,727 0.97 (194,508)
Total 44,849 18,394 (634) - 62,609
74

DELTA Financial statements 2011
The hedge reserve includes changes in the value of underlying
derivatives in the period in which they are included in an
effective hedge. The derivatives presented in the analysis of
cash flow hedges concern the derivatives that were part of a
hedging relationship on the balance sheet date.
A mismatch occurs because:
• the analysis of cash flow hedges also includes the ineffective
portion of the hedging instrument;
• the gains and losses on the hedging instrument prior to the
inception of a hedging relationship are also included in the
analysis of cash flow hedges;
• also included in the hedging reserve are the gains and losses
on the hedging instruments which were part of a hedging
relationship in the past but which were no longer part of such
a relationship at year-end.
The amounts recognised in the hedge reserve take account
of the date on which an instrument was designated as part
of a hedging relationship, which may be different from the
date of the associated trade. In addition, only the gains and
losses in the fair value of the effective portion of the hedging
instruments are recognised in the hedge reserve.
5.2.2.4 Currency risk
Currency risk concerns the price risk related to exchange rate
movements. DELTA’s risk policy is to hedge currency risks on
positions in foreign currencies. To hedge the risks, DELTA uses
financial instruments to prevent fluctuations in expected cash
flows in so far as possible. Currency positions resulting from
contracts, including commodity contracts, are reported to the
Treasury Department on a daily basis for hedging at group level.
Currency risk limits are set periodically in consultation with the
Risk Management Committee and monitored by the Treasury
Department.
The following exchange rates were used for translating the
amounts of items denominated in foreign currencies on the face
of the balance sheet:
30/12/2011 31/12/2010
Middle rates
US dollar 1.2933 1.3375
Pound sterling 0.8353 0.8616
75

Consolidated financial statements
5.2.2.5 Interest rate risk
DELTA’s interest rate risk policy is to limit the effect of interest
rate fluctuations. To hedge the risks, DELTA makes use of
derivatives such as interest rate swaps.
Hedged loans
DELTA has a number of interest rate swaps. All the swaps
were effective at the end of the reporting period. Sensitivity is
measured by increasing or decreasing the floating spot by 10%.
The swaps remained effective. Several of these interest rate
derivatives can be classified as option contracts, which qualify
for the exemption referred to in IAS 39, paragraph 74. The
change in the fair value is accounted for in the hedge reserve
with the change in the time value recognised through profit or
loss. The following table shows the effect of a 10% increase and
a 10% decrease compared with the carrying amounts as at 31
December 2011.
(x EUR 1,000)
Position as at
31 December
Value based
on yield curve
10% increase 10% decrease
Increase in value
relative to
carrying amount
Value based
on yield curve
Decrease in value
relative to
carrying amount
2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
Derivatives
Derivatives (4,670) (7,168) (4,103) (5,656) 568 1,512 (5,196) (8,564) (526) (1,396)
Deferred tax on derivatives 1,636 2,765 1,545 2,419 (91) (346) 1,728 2,975 92 210
Total (3,034) (4,403) (2,558) (3,237) 476 1,166 (3,469) (5,589) (434) (1,186)
Interest rate swaps
Hedge reserve 2,928 5,534 2,757 4,737 (171) (797) 3,100 5,929 172 395
Non-controllig interest 904 1,366 854 1,238 (50) (128) 955 1,486 50 120
Total 3,832 6,900 3,611 5,975 (222) (925) 4,055 7,415 222 515
Gains and losses on swaps
Total 1,453 (246) 1,198 (487) (255) (241) 1,665 425 212 671
76

DELTA Financial statements 2011
As at 31 December 2011, the interest rate derivatives position
represented a loss. An upward movement of the yield curve
reduces this loss.
The hedge reserve relating to interest rate swaps as at 31
December 2011 represented a debit item in equity. An upward
movement of the yield curve reduces the amount of this debit.
Unhedged loans
If the interest rates on unhedged variable rate loans had been
10% higher or lower at the end of the reporting period and
all other variables remain constant, the profit or loss (before
non-controlling interests) would have been EUR 0.6 million per
annum lower or higher, respectively.
5.2.3. Liquidity risk
Liquidity risk is the risk that DELTA might not have sufficient
funds available to settle its liabilities.
DELTA’s capital management policy focuses on centralising
cash management and funding and borrowing repayment
operations at holding company level as far as possible. A
financing plan is prepared each year on the basis of the
business plan, giving direction to the activities of the DELTA
N.V. Treasury department.
This includes the annual determination of the ratio of current to
non-current borrowings.
In order to provide the flexibility required for executing strategic
projects, DELTA has standby credit facilities available up to
a limit of EUR 500 million, from which an amount of EUR 300
million was drawn down as at year-end 2011.
Two businesses within the DELTA group look after their own
finances, viz.:
1. The Indaver group manages the liquidity risk and
funding risk within the framework of the DELTA policy, by
maintaining adequate reserves and ample committed credit
lines. The Indaver group had borrowings and credit facilities
totalling EUR 324 million as at year-end 2011, of which EUR
107.8 million remains to be drawn down.
2. DELTA Netwerkbedrijf, as required by the Independent
Network Management Act (WON), had a separate credit
facility of EUR 190 million as at balance sheet date.
DELTA’s corporate credit rating by Standard & Poor’s improved
in 2011 from BBB to BBB + with a stable outlook.
77

Consolidated financial statements
In order to provide a view of the liquidity risk, the following
table presents the contractual maturities of the financial
liabilities.
The contractual maturities of the financial obligations reflect
the expected outgoing cash flows relating to the financial
commitments entered into as at balance sheet date. ‘Other’
contractual maturities contains mainly tax, deferred revenue
and the put option.
(x EUR 1,000)
Contractual maturities of financial obligations as at 31 december 2011
< 1 year 1-5 years > 5 years Total
Trade payables 324,381 - - 324,381
Interest-bearing loans 97,801 468,649 116,857 683,307
Derivatives 223,724 77,149 - 300,873
Other 308,628 97,298 2,273 408,199
Total 954,534 643,096 119,130 1,716,760
Related interest payable 13,100 39,222 9,393 61,716
Contractual maturities of financial obligations as at 31 december 2010
< 1 year 1-5 years > 5 years Total
Trade payables 227,303 - - 227,303
Interest-bearing loans 86,069 235,414 215,594 537,077
Derivatives 164,677 31,209 - 195,886
Other 246,755 230,303 - 477,058
Total 724,804 496,926 215,594 1,437,324
Related interest payable 10,987 38,003 12,971 61,960
78

DELTA Financial statements 2011
5.2.4. Credit risk
Credit risk concerns the losses that could arise if a counterparty
defaults on a contractual obligation. DELTA has set credit limits
for its external counterparties in order to limit the credit risk.
An internal rating system sets a credit limit for each external
counterparty. This system uses publicly available information
on the company concerned or the guarantor (such as financial
statements and credit ratings). In the case of previous DELTA
customers, their payment history is a major factor in agreeing
to supply them.
DELTA uses various instruments to manage credit risks,
including trading on the basis of standard forms of contract and
terms of business, trading via exchanges, ensuring a diversified
portfolio of customers and requiring guarantees. If the credit
rating of an external counterparty or guarantor is not or is no
longer investment grade, no additional credit risk is accepted.
As at year-end 2011, the credit ratings of the external
counterparties showed the following distribution across the
rating classes on a percentage basis:
Credit rating counterparties
2011
2010
30%
25%
20%
15%
10%
5%
0%
AA+ AA AA- A+ A A- BBB+ BBB BBB-
79

Consolidated financial statements
6. Inventories
(x EUR 1,000)
31/12/2011 31/12/2010
Raw materials 9,979 9,212
Consumables 4,429 3,501
Finished products 654 277
Goods for resale 4,440 4,371
19,502 17,361
Less: Provision for obsolescence (2,199) (2,386)
Total inventories 17,303 14,975
80

DELTA Financial statements 2011
7. Receivables
(x EUR 1,000)
31/12/2011 31/12/2010
Trade receivables 390,303 310,179
Current corporate income tax 0 15,898
Other current taxes 7,324 45,167
Total taxes 7,324 61,065
Cash not available on demand 19,075 2,884
Current portion of long-term loans granted 5,390 4,029
Other receivables, prepayments and accrued income 22,164 36,878
Total other receivables 46,629 43,791
Total receivables (excluding derivates) 444,256 415,035
The cash not available on demand consists of deposits relating
to the trading activities on the Endex energy futures exchange.
The trade receivables rose sharply in 2011, owing to the
increased volume of trading activities on Endex. The trade
payables position was also sharply higher for the same reason.
A provision for possible bad debts totalling EUR 13.8 million
(2010: EUR 15.2 million) was recognised in respect of the trade
receivables.
81

Consolidated financial statements
Aged analysis of trade receivables
per 31/12/2011
(x EUR 1,000)
Age 2011 2010
(in days) (EUR 1,000)
< 30 365,520 288,615
31-60 18,050 15,403
61-90 2,827 2,990
91-120 2,038 2,273
> 120 15,663 16,115
Total 404,097 325,395
Bad debt provision (13,794) (15,216)
Total trade receivables 390,303 310,179
The

DELTA Financial statements 2011
8. Cash
Cash comprises not only cash but also cash equivalents that
can be converted into cash with no material risk of impairment.
(x EUR 1,000)
31/12/2011 31/12/2010
Deposits 29,308 28,307
Cash 23,082 21,103
Total cash 52,390 49,410
83

Consolidated financial statements
9. Provisions
(x EUR 1,000)
Total
Site
reconstruction
costs
Unprofitable
contracts
Employee
benefits
Dismantling
costs
Other
provisions
Carrying amount as at 1 January 2010 92,538 62,500 13,250 4,989 1,828 9,971
Reversal of current portion of provision 4,364 524 - 851 - 2,989
Added 16,260 - 11,900 360 4,000 -
Interest added 4,220 3,101 663 119 - 337
Utilised (4,063) (410) (1,211) (652) - (1,789)
Other movements (484) (9) 9 (2) (1,828) 1,345
Carrying amount as at 31 December 2010 112,835 65,705 24,611 5,665 4,000 12,854
Current portion of provisions (17,331) (10,157) - (886) (4,000) (2,288)
Carrying amount as at 1 January 2011 95,504 55,548 24,611 4,780 - 10,565
Reversal of current portion of provisions 17,331 10,157 - 886 4,000 2,288
Added 159,265 158,954 311 - -
Interest added 3,717 3,262 - 114 - 341
Released (19,938) - (18,006) (390) (526) (1,016)
Utilised (3,039) (440) - (816) - (1,783)
Other movements (140) (166) 1 202 - (177)
Carrying amount as at 31 December 2011 252,700 68,361 165,560 5,086 3,474 10,219
Current portion of provisions (15,876) (9,710) - (830) (3,474) (1,862)
Carrying amount as at 31 December 2011 236,824 58,651 165,560 4,256 - 8,357
84

DELTA Financial statements 2011
The amount of the provisions which it is probable will be
utilised within one year, being EUR 15.9 million
(2010: EUR 17.3 million), has been included in current liabilities.
Site restoration costs
Indaver has recognised provisions for the capping and aftercare
of its current landfill sites. An amount of approximately EUR
15.0 million of these provisions is expected to be utilised
over the next five years. The costs have been estimated by
the management using best estimates based on existing
technology. The discount rate was 4.67% (2010: 4.67%) for the
Belgian landfill sites and 5.0% for the German and Dutch landfill
sites (2010: 5.0%).
Between now and 2020, an estimated EUR 31.9 million (2011
price levels) will be required for the preparatory aftercare,
capping and landscaping of the Derde Merwedehaven landfill
site. Utilisation of the provisions recognised for this purpose
will occur as from 2017. In the period up to 2025, an estimated
EUR 22.5 million (2011 price levels) will be required for the
preparatory aftercare and capping of the Noord- en Midden
Zeeland landfill site. Utilisation of the provisions recognised for
this purpose will occur as from 2017.
The current portion of the provision mainly relates to the
Koegorspolder landfill site, which ceased to be used in 2005.
Unprofitable contracts
In the light of current developments in market prices, a number
of energy procurement/sales contracts entered into in the past
are no longer profitable. In addition, legislation on emissions
has adversely affected the cost base of several power stations,
eroding the gross margin on supply contracts. A provision is
recognised to cover the unprofitable part of these contracts.
The annual utilisation is recognised in the gross margin. The
provisions are reviewed each year in the light of developments
in the electricity and fuel markets and emissions legislation.
The heavy pressure on electricity prices in north-west Europe
due to the state of the economy in relation to available
generating capacity compounded by the rise in fuel prices
due to growing worldwide demand, resulted in a provision
for unprofitable contracts; where appropriate related to a
joint venture or assiociates, the added provision is justified
under ‘results of joint ventures and associates’ because of the
causality between the results of joint ventures and associates
and the addition to the provision. On the basis of a discount
rate of 4.5% (2010:4.5%), this has resulted in an addition of
more than EUR 158 million to the provision.
Employee benefits
These provisions have been recognised in order to be able to
meet existing future financial obligations. Under the terms of
the CLA, DELTA pays employees long-service benefits. From the
date on which an employee joins the company, a provision is
recognised for these benefits, based on the number of years
of service, expected price and wage inflation and statistical
severance, invalidity and mortality rates. The discount rate is
4.5% (2010: 4.5%).
In addition, a provision has been recognised in connection with
the transitional arrangements relating to IZA/IZR (public sector)
health insurance schemes for former employees that were
agreed with the unions in 2006 covering a period of 10 years.
85

Consolidated financial statements
Other provisions
Other provisions include a provision for the Environmental
Action Plan for Industry (BMAP). Remaining liabilities
connected with BMAP activities undertaken in the past are
settled from this provision.
Indaver has recognised provisions for the expected cost of
cleaning up pollution identified at certain locations.
Retirement benefits
DELTA has transferred its retirement benefit obligations to
pension funds in the Netherlands, primarily ABP. The pension
contributions that DELTA pays to the pension funds are based
on expectations regarding inflation and pay rises, the ageing
of the workforce, mortality rates and the return on the plan
assets. The ABP industry-wide pension fund has stated that
there is no consistent and reliable basis for attributing the
pension liabilities, plan assets and costs to the individual
participating entities. DELTA consequently makes use of the
exemption provided by IAS 19 to treat the defined benefit plan
as a defined contribution plan.
Retirement benefit obligations at Indaver
Indaver provides a defined benefit plan for the employees of the
Indaver holding company and some subsidiaries that were part
of the Indaver group before 31 December 2007. This concerns
two plans contracted with various insurance companies.
Indaver also operates unfunded defined benefit plans for the
employees of Indaver Deutschland GmbH in Germany. For new
employees who have joined the holding company and some
subsidiaries in Belgium since 1 January 2008, as well as for the
employees of Indaver Ireland, Indaver also provides defined
contribution plans.
On the above basis, Indaver has the following long-term
pension liabilities:
(x EUR 1,000)
2011 2010
Pension liabilities 21,869 21,874
Total pension liabilities 21,869 21,874
The current portion of the pension liabilities relating to Indaver,
amounting to EUR 1.0 million (2010: EUR 1.1 million), has been
included in current liabilities.
Retirement benefit provisions at Indaver
(x EUR 1,000)
31/12/2011 31/12/2010
Belgium Germany Belgium Germany
1 Net liability
Present value of defined benefit obligation 24,189 12,877 21,908 13,543
Fair value of plan assets (19,922) - (19,136) -
Present value of net obligation 4,267 12,877 2,772 13,543
Unrecognised past service cost - - - -
Actuarial gains and losses 6,313 (1,526) 7,813 (2,347)
Defined benefit plan based on simple actuarial calculations 175 759 115 1,121
Net liability on the face of the balance sheet 10,755 12,110 10,700 12,317
86

DELTA Financial statements 2011
(x EUR 1,000)
31/12/2011 31/12/2010
Belgium Germany Belgium Germany
2 Movements in present value
Opening defined benefit obligation 21,908 13,543 23,116 12,273
Constributions by employer 1,579 329 1,854 280
Interest cost 1,031 651 1,200 660
Other 1,007 (765) (3,962) 775
Actuarial gains and losses 263 - 261 -
Contributions by employees (55) - (53) -
Costs paid (272) - (262) -
Insurance premiums paid (1,267) (881) (275) (351)
Benefits paid - - 41 -
Net transfer in/out (5) - (12) -
Curtailments and settlements - - - (94)
Closing defined benefit obligation 24,189 12,877 21,908 13,543
3 Movements in fair value
Opening fair value of plan assets 19,136 - 17,373 -
Expected return 967 - 965 -
Actuarial gains and losses (224) - (215) -
Contributions by employer 1,379 - 1,322 -
Contributions by employees 263 - 261 -
Expenses paid (55) - (53) -
Premiums paid (272) - (262) -
Benefits paid (1,267) - (275) -
Settlements (4) - (9) -
Business combinations - - 28 -
Closing fair value of plan assets 19,922 - 19,136 -
4 Retirement benefit costs
Current service cost 1,579 329 1,854 280
Interest cost 1,031 651 1,200 660
Other (967) - (965) -
Expected return on plan assets (269) - (76) -
Actuarial gains and losses - 57 - (62)
Net benefit expense recognised in staff costs 1,374 1,037 2,013 878
5 Actuarial valuation assumptions
Employee benefit plan obligations
Discount rate 5.5% 5.5% 5.0% 5.0%
Expected return 5.5% 5.0%
Future pay rises 3.5% 1.8% 4.0% 1.8%
Increases in medical expenses 2.0% 2.0% 2.0% 2.0%
6 Actual return on fund investments
The actual return on fund investments in 2011 was EUR 0,7 million (2010: EUR 0,8 million)
87

Consolidated financial statements
10. Movements in long-term debt
(x EUR 1,000)
2011 2010
Carrying amount as at 1 January 482,474 459,622
Loans drawn down 171,612 245,198
Movements in cross-border leases 3,100 -
Repayments (46,279) (222,346)
610,907 482,474
Current portion (22,301) (31,467)
Long-term debt 588,606 451,007
The liabilities include bank borrowings. The average interest
rate on the debt as at year-end 2011 was 2.3% (2010: 2.3%).
EUR 117.0 million of the carrying amount falls due after more
than five years.
DELTA has a bilateral standby credit facility amounting to
EUR 500 million with five banks. No security has been provided
for this facility.
DELTA Netwerkbedrijf B.V. and Indaver have their own credit
lines.
The financial crisis has meant that additional security has
been demanded for the liabilities under the cross-border lease
contracted by Indaver in the past. This led to the provision of
an extra bank guarantee in 2011. The net present value of the
associated future costs has been charged to income.
In the past, revenues have been added to the result.
The intangible assets and property, plant and equipment
as well as the receivables, inventories and cash of SAV
(EUR 83.5 million) have been pledged as security for the
liabilities of Indaver Deutschland (SAV).
88

DELTA Financial statements 2011
11. Other non-current liabilities
(x EUR 1,000)
31/12/2011 31/12/2010
Deferred tax liabilities 57,470 62,688
Deferred revenue 70,999 68,843
Indaver put option 0 138,913
Other non-current liabilities 25,472 22,547
Total other non-current liabilities 153,941 292,991
Movements in other non-current liabilities
(x EUR 1,000)
2011 2010
Carrying amount as at 1 January 292,991 285,373
Released deferred tax liability (recognised in profit or loss) (3,793) 70
Other movements in deferred tax liabilities (1,425) 2,164
Movement in deferred tax position (5,218) 2,234
Released deferred revenue (recognised in profit or loss) (8,666) (7,800)
Deferred revenue (resulting from IFRIC 18) 10,822 6,699
Change in Indaver put option (138,913) 3,373
Other movements 2,925 3,111
Total other non-current liabilities 153,941 292,991
The deferred tax liability arises mainly from past acquisitions.
When an equity interest is acquired, the acquired property
plant and equipment and intangible assets are recognised
at fair value. Fair value adjustments are not tax-allowable,
necessitating the recognition of a deferred tax liability in
connection with the adjustment to fair value of the acquired
assets. The amount of the tax liability decreases at the same
rate as the fair value adjustments are written down, except for
the fair value adjustments on land.
Equally, additions to provisions lead to a deferred tax asset.
The movement of the tax asset is dependable on the utilised
provisions.
The deferred tax liability is attributable to:
(x EUR 1,000)
31/12/2011 31/12/2010
Intangible assets 4,014 4,191
Property, plant and equipment 51,399 51,331
Other 2,057 7,165
Total 57,470 62,688
Deferred revenue relates to payments already received in
respect of waste which still has to be processed by Indaver. In
both 2011 and 2010, the deferred revenue was aggregated with
the contributions received from third parties for new capital
projects (in accordance with IFRIC 18).
89

Consolidated financial statements
12. Current liabilities
(x EUR 1,000)
2011 2010
Trade payables 324,381 227,303
Current tax liabilities 9,148 7,848
Other current tax liabilities 50,043 101,948
Deferred revenue 13,401 12,268
Work in progress for third parties 0 964
Current portion of provision 15,876 17,331
Current portion of long-term debt 22,301 31,467
Put option Indaver 146,511 0
Accruals and deferred income 78,270 65,669
Other current liabilites 247,082 97,136
Bank borrowings 66,429 65,329
Total current liabilities (excluding derivatives) 726,360 530,127
The trade payables rose sharply in 2011, owing to the increased
volume of trading activities on Endex. The increase is in direct
proportion to the increase in trade receivables.
The current tax liabilities are largely made up of value-added
tax payable. In addition, the current tax liabilities include wage
tax and social security contributions, corporate income tax and
energy tax payable.
In addition to the other payables and accruals and deferred
income, current liabilities includes the scheduled repayments
on long-term loans and provisions due to be utilised in 2012.
In 2007, DELTA increased its interest in Indaver to 75%. A put
option has been given to the owners of the outstanding 25%.
This put option can be exercised between the end of the fifth
year and the end of the seventh year after closing in 2007;
the put option is recognised in non-current liabilities and is
measured at fair value as at 31 December.
Profit attributable to non-controlling interests is added to the
value of the put-option.
The exercise price of the put option can be determined using
the discounted cashflow method, taking several estimates into
account. For this reason, DELTA uses a bandwidth determining
the fair value of the put options. The valuation as at balance
date falls within this bandwidth.
90

DELTA Financial statements 2011
Commitments and contingent liabilities
A. Operational
DELTA Energy B.V. trading portfolio
DELTA’s risk management policy aims to actively control the risk
exposures connected with production assets and long-term
procurement contracts. Positions arising from trading activities
are controlled through a strict system of limits, using both
financial and energy derivatives, including swaps and options.
The sales contracts in the portfolio relate to energy supplied
to end users and trading partners and associated financial
instruments. The value of the 2011 sales contracts at the end of
the reporting period was EUR 1,068 million
(2010: EUR 1,107 million).
Procurement contracts in the portfolio relate to production
and purchasing agreements with trading partners and
associated contracts for financial instruments. The value of
the procurement contracts as at the balance sheet date was
EUR 3,751 million (2010: EUR 2,746 million). The value of the
financial instruments is determined on the basis of market
values derived from transactions contracted in the physical
commodities trade.
Long-term waste processing contracts
Indaver has entered into various long-term contracts for
processing waste. They are covered by payments upfront,
which have been recognised in the balance sheet (2011: EUR
48.9 million; 2010: EUR 52.8 million). In some cases, the client
has been given a put option conferring the right to sell some
of the rights concerned back to Indaver. No liability has been
recognised in respect of these put options since exercise of the
options is not considered to be a probability.
Rent commitments
To provide premises for various business units, DELTA has
contracted leases for various periods. The total exposure is
approximately EUR 6.0 million, based on contractual maturities.
Investment commitments
As at year-end 2011, the company had outstanding financial
commitments totalling approximately EUR 59.9 million (2010:
EUR 76.3 million). These commitments relate chiefly to capital
projects under construction.
Borssele covenant
In 2006, a covenant was agreed with the central government
on the extension of the service life of the nuclear power station
until 2033. As part of the covenant, agreements were also
reached on the efforts that DELTA (and Essent) would make to
address and provide technical and financial support for new
renewable energy developments. In addition to their interests
in Sustainable Energy Technology (SET) Fund C.V., these
commitments include investments in Additional Innovative
Projects.
Sale-and-leaseback contracts
In recent years DELTA has built several combined heat and
power stations and wind farms. Some of these assets were
covered by sale-and-leaseback contracts. In December 2011,
DELTA repurchased the remaining installations from Rabobank,
eliminating the position.
Cross-border lease on waste incineration plant
On 17 August 1999, Indaver entered into a cross-border lease
with an American investor for the use of lines 1 and 2 of the
incinerator plant in Doel. The initial lease term was 25.4 years,
with an option of a maintenance contract for a further 13 years.
Under the terms of the lease, Indaver received an amount of
USD 135 million and placed USD 129.4 million on deposit on
the date of inception of the contract. On the strength of this
deposit, a payment agreement covering the cost of the lease
almost entirely was concluded with banks enjoying a high credit
rating. In 2011, an additional bank guarantee was provided on
behalf of the American counterparty.
91

Consolidated financial statements
B. Collateral and guarantees
DELTA has issued and received the following financial collateral
to guarantee transactions entered into:
(x EUR 1,000)
Collateral granted
Term in years
< 1 year 1 – 5 years > 5 years Total
Collateral granted for associates and joint ventures 58,751 13,554 3,946 76,250
Other collateral granted 35,821 4,259 71,907 111,987
Total collateral granted 94,572 17,813 75,852 188,237
Collateral received
Collateral received for associates and joint
ventures
Term in years
< 1 year 1 – 5 years > 5 years Total
- - - -
Other collateral received 69,140 16,567 112,144 197,850
Total collateral received 69,140 16,567 112,144 197,850
Principal collateral granted
DELTA has given guarantees totalling EUR 22.3 million to
the Zeeland provincial authority in respect of the financial
obligations connected with the capping of the Koegorspolder
and Noord- en Midden Zeeland landfill sites. DELTA has
also given guarantees totalling EUR 24.6 million to the Zuid-
Holland provincial authority for the cost of capping the Derde
Merwedehaven landfill site in Dordrecht.
Indaver has also issued a number of bank guarantees, totalling
EUR 93.2 million, the majority of which relate to the transport
and treatment of waste flows.
Indaver has also underwritten the bank loans contracted by
the joint venture Sleco Centrale, which totalled EUR 33.3 million
as at 31 December 2011.
Principal collateral received
Of the collateral received, an amount of EUR 110.0 million
relates to bank guarantees received in connection with
DELTA’s trading activities.
Indaver has received bank guarantees from customers and
suppliers totalling EUR 84.8 million, mainly relating to turnkey
projects in Ireland and Belgium.
92

DELTA Financial statements 2011
C. Lawsuits and claims
NEA claim against EPZ
In February 2008, NEA claimed approximately EUR 200 million
from EPZ relating to benefits of the nuclear power plant as a
result of the extension of the plant’s useful life from 2013 to
2033. Judgement was passed in 2011 and the claim was thrown
out.
REB claim
In 2009, the Dutch Tax Administration imposed an additional
tax assessment on DELTA for payment of regulating energy tax
(REB) in respect of 2001 and 2002, whereupon DELTA initiated
legal proceedings with the Netherlands Arbitration Institute
relating to one of its suppliers at the time in an attempt to
recover that supplier’s share of the additional assessment.
A decision is expected early in 2012.
DELTA Netwerkbedrijf B.V.
DNWB has to allow for a possible compensation claim
in relation to wind farms connected to the 150/20/10kV
transformer if the Trade and Industry Appeals Tribunal rules
that DNWB had a statutory duty to build redundancy into the
design of this type of transformer. The Tribunal will probably
deliver its verdict in 2012.
Unbundling plan – Independent Network Management Act
(WON)
The Minister approved the plan to unbundle the company on
2 December 2009. However, on 22 June 2010, the Court in
The Hague declared parts of the unbundling act non-binding.
In the light of this judgement, the unbundling did not go
ahead, although the conditions stipulated by the Minister
have been complied with as far as possible and necessary.
The government took the case to the Supreme Court in an
attempt to get the decision overturned. On 24 February 2012,
the Supreme Court referred the case to the European Court of
Justice in Luxembourg.
Indaver N.V.
In Germany, Indaver was confronted with a legal procedure
against a former employee, who worked for a joint venture’s
subcontractor. At this moment, Indaver’s management has no
reason to assume that Indaver, as being the last employer of
the former employee, will be found guilty. Indaver has added a
provision to cover the defending costs in this case.
Court cases
Legal proceedings have been initiated against DELTA by a
former non-controlling shareholder in a subsidiary with a claim
for compensation for alleged losses from DELTA. The court
has since delivered its judgement (February 2012), completely
exonerating DELTA. It is possible that the case may be taken
to appeal.
Legal proceedings have been initiated against DELTA by
two former co-shareholders in a former subsidiary that are
contesting a binding recommendation establishing the value
of the shares held by them which they were required to offer
to DELTA when they ceased to be members of the executive
board of the company concerned and DELTA duly bought the
shares from them. The case has been brought before the
Court in Amsterdam. The amount of the claim is several
millions of Euros.
93

Consolidated financial statements
Notes to the consolidated income statement
13. Revenue
(x EUR 1,000)
2011 2010
Electricity supply 1,001,782 1,073,084
Gas supply 415,328 312,273
Electricity and gas transport 113,552 100,586
Cable, internet and telecommunications 83,182 82,889
Waste management and environmental services 508,683 461,848
Other revenue 62,572 42,371
Total revenue 2,185,099 2,073,051
Revenues from gas and electricity supplies to domestic and
small-business users are partly estimated, as staggered meter
readings are taken throughout the year.
The depressed market prices resulted in lower electricityrevenues
in 2011 compared to 2010. Gas-revenues went up due
to new activities in 2011.
The revenue from waste logistics and environmental services
shows an increase that is entirely attributable to the high
capacity utilisation of the incinerators and the commissioning
of the new waste-to-energy facility in Meath (Ireland). The
effect of the depressed prices, which, due to the state of the
economy, is also noticeable in this business, was therefore
cancelled out.
94

DELTA Financial statements 2011
14. Cost of sales
17. Third-party services, materials and other
external charges
Part of the electricity requirement was purchased from the
related parties EPZ, the Sloe power station, Elsta and BMC
Moerdijk, in which DELTA has an equity interest. This electricity
is mainly procured on a cost-plus basis.
15. Other gains and losses
Other gains and losses consist chiefly of payments received for
third-party services.
16. Fair value gains and losses on the trading
portfolio
DELTA uses derivatives to hedge price and currency risks arising
from energy commodity contracts (electricity, gas, coal and
oil). DELTA uses cash flow hedging for this purpose, contracting
hedging instruments to offset the exposure to variations in
existing and future cash flows that could ultimately affect the
results.
(x EUR 1,000)
2011 2010
Consumption of materials 56,562 51,514
Third-party work and services 167,045 179,874
Other external charges 19,164 18,371
Total 242,771 249,759
A large part of the external charges is related to the operations
of Indaver. The costs of materials used by Indaver amounted
to EUR 52.6 million in 2011, costs for third-party services
amounted to EUR 92.9 million and other external charges
totalled EUR 5.9 million.
The other third-party work and services largely concerns costs
connected with the electricity, gas and digital infrastructure.
Also included in third-party work and services are ICT costs.
The hedges are attributed to a specific risk relating to an item
in the balance sheet or a highly probable forecast transaction.
The effective portion of the fair value gain or loss on the hedge
reserve is recognised directly in hedge reserves in equity.
The cumulative amounts recognised in equity are taken to
the income statement in the same period as the hedged
transaction.
The portion of the gain or loss on the contract portfolio that is
not hedged by means of hedging instruments (the non-effective
hedges) is recognised in the income statement as a fair value
gain or loss.
Energy market price movements in 2011 resulted in a net loss
on the fair value of the portfolio of contracts amounting to EUR
80.3 million, of which approximately EUR 13.0 million has been
recognised in income and approximately EUR 67.3 million has
been recognised directly in equity.
95

Consolidated financial statements
18. Staff costs
(x EUR 1,000)
2011 2010
Salaries 156,184 151,399
Social securities contributions 24,631 23,793
Pension charges 16,420 15,862
Other staff costs 16,516 11,574
Staff costs 213,751 202,628
Capitalised staff costs (2,145) (4,670)
Total staff costs 211,606 197,958
Number of employees (FTEs) as at 31 December 2,977 3,197
FTEs related to discontinued operations/assets held for sale 17 270
Number of FTEs related to the above total staff costs 2,960 2,927
Average number of FTEs (related to the above total staff costs) 2,993 2,977
Remuneration of the members of the Executive Board
of DELTA N.V. registered as directors with the Chamber
of Commerce
The remuneration policy for the members of the company’s
Executive Board was adopted by the General Meeting of
Shareholders on the recommendation of the Supervisory Board.
The underlying principle of the remuneration policy is that
DELTA N.V. should be able to offer a sufficiently competitive
remuneration package to attract and retain people with the
right expertise and experience.
The members of the Executive Board are employed on a
permanent basis and are appointed as directors for a period
of four years. Their contracts of employment are drafted
accordingly and contain, in addition to a minimum period of
notice, a clause providing for termination pay amounting to a
maximum of one year’s salary, in conformity with the Dutch
Corporate Governance Code.
The Supervisory Board decides the remuneration for the
individual Executive Board members each year. Commencing
with the new four-year appointment period for the CEO, which
began on 1 March 2010, the benchmark is taken as the median
level of the market for company directors in the Netherlands,
i.e. half of those in comparable positions (as graded by Hay) are
paid less and half are paid more.
The annual pay also has a variable component, which is related
to the achievement of a number of agreed targets in the current
year. The maximum amount of this variable remuneration is
30% of the gross basic annual salary. Each year, the targets to
be achieved are set by the Supervisory Board and the CEO. They
are partly financial (net profit and cash flows) and partly in the
form of personal targets and related to personal performance
and contribution to the achievement of group-wide HR
objectives.
The Executive Board members are also covered by the pension
plan applicable to all the company’s employees (administered
by Stichting Pensioenfonds ABP). The CEO also receives an
additional annual pension payment to make up for the loss of
early retirement and retirement benefits which ceased to be
payable on joining DELTA N.V.
96

DELTA Financial statements 2011
Executive Board pay
(x EUR 1,000)
2010 P.G. Boerma CEO F. Verhagen CFO J.J. Rieter CCO A.S. Louter COO
Gross basic annual salary 378,261 1) 220,893 193,836 233,640
Pension contributions by employer 115,516 30,842 27,589 €34,094
Variable remuneration - 2) - 2) - 2) - 2)
Total 493,777 251,735 221,425 267,734
1) excluding supplementary payment in 2010 relating to 2009, amounting to EUR 14,330
2) in view of the heavy loss reported for 2010, the members of the Executive Board have decided to waive their variable remuneration for 2010.
2011 P,G, Boerma 5) CEO F, Verhagen CFO J,J, Rieter 3) CCO A,S, Louter 3) COO
Gross basic annual salary 384,969 260,000 64,612 77,880
Termination payment (incl, Pension charges) 760,000
Pension contributions by employer 121,757 37,992 10,264 12,495
Variable remuneration4) 117,450 78,919 17,056 20,440
Total 1,384,176 376,911 91,932 110,815
3) up to 30 April 2011
4) paid in 2012
5) until December 2011
After the termination of Mr Boerma’s labour agreement,
Mr Boerma, in addition to the above remuneration, will remain
available for the Supervisory Board, on a advisory basis.
During this period, which is in line with Mr Boerma’s original
appointment period and running up to the end of February
2014, Mr Boerma will be available to provide DELTA N.V. and
the group’s businesses and companies with advices in
connection with the settlement of matters stemming from
the recent and more distant past on which his input and
involvement is indispensable. The consultancy fee has been
fixed at EUR 410,000
97

Consolidated financial statements
19. Depreciation, amortisation and impairment
(x EUR 1,000)
2011 2010
Intangible assets
Amortisation 25,894 26,794
Impairment 125 89,028
Property, plant and equipment
Depreciation 90,232 103,845
Impairment 7,349 88,212
Terugname impairments (1,104) -
Third-party contributions released (received prior to 2010) (6,665) (6,437)
Brought to result from discontinued operations (1,829) (175,952)
Total depreciation, amortisation and impairment 114,002 125,490
The impairment under property, plant and equipment relates
to the write-down to fair value of the costs of construction
contracts in Cork (Ireland) and several smaller write-downs
of assets. The reversal of impairment losses relates to the
increased value in use of DELTA Industriële Reiniging.
98

DELTA Financial statements 2011
20. Other operating expenses
(x EUR 1,000)
2011 2010
Added to provision for bad debts 2,365 2,279
Debt collection costs - 2,365
Other operating expenses 7,125 3,807
Added to other provisions - 50,305
Total other operating expenses 9,801 12,811
An amount was added to the provision for bad debts following
several business failures.
The amount added to other provisions relates to additions to
provisions for employee benefits.
Other operating expenses includes the directors’ fees for
members of the company’s Supervisory Board.
Remuneration of the Supervisory Board 2011
With effect from 1 January 2011, the Supervisory Board has been
made up of the chairman and four members (2010: a total of
nine members). The remuneration was revised with effect from
the same date and currently amounts to annual fees of:
Chairman
€40,000
Ordinary member € 25,000
Audit Committee member € 5,000
Other Committee member € 3,000
The total amount paid to members of the Supervisory Board in
2011 was 153,000 (2010: 215,423).
99

Consolidated financial statements
21. Share in the profit of joint ventures and associates
This concerns the results attributable to DELTA from its
interests in joint ventures and investments in associates.
In 2011, the share in the profit of joint ventures and associates
was EUR 9 million higher compared to 2010, mainly because a
good result from Evides. The share in the Evides N.V. profit in
2011 was higher, owing to incidental income from an external
contract. The figure for Sloe Centrale B.V. by contrast was down,
owing to the movements in the price of electricity and gas and,
linked to that, the limited utilisation of the power station.
100

DELTA Financial statements 2011
22. Net finance income (expense)
(x EUR 1,000)
2011 2010
External finance income 5,669 4,322
External finance expense (23,727) (22,350)
Interest added to provisions (3,716) (4,221)
Purchase of / Interest added to cross-border lease (3,100) -
Bank borrowing arrangement fees (249) (213)
Exchange differences 476 525
Other finance income (expense) 83 (1,768)
(24,564) (23,705)
Capitalised interest 249 1,842
Total finance income (expense) (24,315) (21,863)
In May 2010, in preparation for possible unbundling, DELTA
Netwerkbedrijf converted the intercompany financing provided
by DELTA N.V. into an external long-term financing arrangement.
The interest rate on this finance is higher than the corporate
funding, which explains the increased interest expense in
2011 compared with 2010. Additionally, the financing of the
additional 20% interest acquired in N.V. EPZ accounts for a
further increase in the external finance expense in 2011.
Despite this higher finance expense, the net finance expense
was not greatly increased because of lower external interest
rates on the one hand and higher finance income than in the
previous year on the other, as a result of more funds being lent
to non-consolidated companies.
The interest rate applied for the capitalisation of constructionperiod
interest in 2011 was 2.3% (2010: 2.3%).
101

Consolidated financial statements
23. Corporate income tax
(x EUR 1,000)
2011 2010
Current corporate income tax liability (10.944) (8.340)
Movements in deferred tax assets and liabilities (24,772) 28,211
Total tax (35,716) 19,871
Of which reported under discontinued operations (175) 36,254
Tax expense recognised in profit or loss (35,541) (35,541)
Effective tax burden (including discontinued operations) 28,3% 10,2%
Current corporate income tax liability
The reconciliation of the profit before tax and the actual taxable amount
with the resulting tax burden, is as follows:
Result before corporate income tax (including discontinued operations) 126,421 (195,701)
Substantial-holding privilege (237,255) (63,548)
EIA/MIA schemes (1,857) (229)
Temporary differences connected with the carrying amounts of assets and provisions (incl. VAMIL) 60,515 46,898
Operating expenses recognised in previous years - -
Transferable tax loss carryforwards predating tax group - -
Goodwill - 87,584
Other differences 458 372
Taxable amount, Netherlands (51,718) (124,624)
Standard tax rate in the Netherlands 2010 / 2009 25.50%
Standard tax rate in the Netherlands as from 2011 25.00%
Tax for the year - -
Adjustment for prior years (728) (1,125)
Tax paid by subsidiaries outside the Netherlands (10,216) (7,215)
Current corporate income tax liability (10,944) (8,340)
102

DELTA Financial statements 2011
Movements in deferred tax assets and liabilities
The tax income results from differences between the reported profit and the profit calculated for tax
purposes plus utilisation of tax loss carryforwards.
2011 2010
Applicable tax loss carryforwards 12,186 18,325
Temporary differences (20,480) 9,643
Movements in deferred tax for deductible tax losses (19,041) (1,661)
Movements in deferred tax due to tax loss carryforwards - -
Movements in deferred tax due to change in tax rate in the Netherlands - (1,359)
Adjustment for prior years 440 (203)
Movements in tax provisions recognised by subsidiaries (including outside the Netherlands) 2,123 3,466
Movements in tax provisions (24,772) 28,211
Consolidated statement of changes in equity
Deferred tax assets related to items recognised directly in equity:
Fair value gains and losses on hedges (16,098) (35,496)
Movements in deferred tax on hedges due to change in tax rate in the Netherlands 0 291
(16,098) (35,205)
103

Consolidated financial statements
24. Assets held for sale and discontinued operations
In November 2010, a decision was taken by the DELTA Executive
Board to sell off the group companies Solland Solar Holding B.V.
and Sunergy Investco B.V. In addition, on 14 December 2010,
the business of DELTA Biovalue B.V. and its subsidiaries was
declared insolvent.
The sale of Solland was completed in July 2011 via a
management buyout. RGS Development B.V. and Solwafer B.V.
(both wholly-owned subsidiaries of Sunergy Investco B.V.)
were sold in 2011 and a transaction involving an asset-liability
transaction was concluded in relation to the investment in Fesil
Sunergy AS.
In November 2011, the DELTA Executive Board decided to
dispose of the group companies Triqua B.V. and DELTA MBR B.V.
24.2 Balance sheet
The carrying amount of the assets held for sale is presented as
a net amount of approximately EUR 3 million in conformity with
IFRS 5. This amount is an estimate of the selling price less costs
to sell.
The liabilities held for sale mainly relate to the former
subsidiary Solland. As part of the management buyout, it was
contractually agreed that DELTA would provide limited funds for
the continuation of operations and the social plan.
24.3 Cash flow statement
These developments led to the recognition, in the income
statement, of all the consequent financial implications as profit
after tax from discontinued operations and, in the balance
sheet, as assets/liabilities held for sale.
24.1 Income statement
The combined effect of Solland, Sunergy, Biovalue,
Triqua and DELTA MBR on the income statement is as follows:
(x EUR 1,000)
2011 2010
Profit before tax (11,490) (301,647)
Tax (175) 36,254
Profit after tax (11,665) (265,393)
The following amounts have been included in the consolidated
cash flow statement of DELTA N.V. in respect of Solland,
Sunergy, Biovalue, Triqua and DELTA MBR:
In total, the cash flow from operating activities relating to
discontinued operations is approximately EUR 11 million
negative. This figure includes a loss for Solland representing
an additional liability/payout (on top of the EUR 30 million for
which provision was recognised as at year-end 2010). These
expenditures are accounted for in other movements.
The cash flow from other receivables/payables includes the
payments made out of the provision recognised as at yearend
2010. The total amount is approximately EUR 24 million
negative.
The largest share of the negative result from discontinued
operations in 2011 is accounted for by the group companies
Solland and Sunergy. Both entities were already classified as
assets/liabilities held for sale as at year-end 2010. The costs
with respect to Sunergy in 2011 mainly relate to the financing
of operating losses in the current year. All remaining financial
consequences were accounted for in 2011 although there will be
some of the actual related expense in 2012.
104

DELTA Financial statements 2011
Notes to the consolidated cash flow statement
The statement of cash flows has been prepared in accordance with the indirect method. As some items in the income statement
and the balance sheet do not generate direct cash flow effects, the cash flow for these items has been neutralised. This essentially
concerns three items:
Treatment of derivatives
Fair value gains and losses on the trading portfolio lead to current and non-current movements on both the assets and the liabilities
sides of the balance sheet. Some of these gains and losses are also included in the operating result and some in the hedge reserve,
forming part of group equity. However, none of these movements results directly in cash flow. For this reason, all movements are
included in the operating cash flow, with positive and negative movements cancelling each other out.
Share in profits of joint ventures and associates
Not all of the share in the profits of joint ventures and associates is distributed as dividends; the undistributed portion results in an
increase in the equity of the company concerned and therefore in a change in the amount of the financial assets recognised on the
face of DELTA’s balance sheet. Consequently, only the actual dividend receipts are recognised in the cash flow.
Corporate income tax
The profit after tax takes account not only of the corporate income tax payable on the profit before tax but also of the deferred tax
assets and liabilities resulting from the agreement with the Dutch Tax Administration concerning the opening balance sheet for tax
purposes in 1998. As movements in deferred tax do not lead to actual cash flow, movements in deferred tax assets and liabilities
have been eliminated in the cash flow.
In the cash flow from operating activities, other movements includes the expenditure connected with the discontinuation of the
operations of Solland, Sunergy and Biovalue not already provided for as at year-end 2010. Expenditure for which provisions were
recognised as at year-end 2010 is accounted for as movements in other receivables/payables. The figures concerned are EUR 11
million negative and EUR 24 million negative, respectively.
In addition to expenditure on expansion and replacement of property plant and equipment, the cash flow from investing activities is
largely made up of the amount paid out to acquire the additional 20% interest in N.V. EPZ. The other movements in financial assets
largely relate to the return of deposits (see section 4.3: other financial assets).
Chiefly owing to the increased interest in N.V. EPZ, the cash flow from investing activities exceeds that from operating activities,
meaning that the distribution of the dividend in 2011 was funded entirely with borrowed capital.
105

Consolidated financial statements
Post-balance-sheet events
Sale of investment in KEMA
On 28 February 2012, the sale took place of the shares held in N.V. KEMA.
Unbundling plan – Independent Network Management Act (WON)
On 24 February 2012, the Supreme Court delivered its verdict in the appeal brought by the government against the decision of the
Court in The Hague given in June 2009, overturning the decision of the Court in The Hague. The Supreme Court refered the case to
the European Union’s Court of Justice in Luxembourg.
Lawsuit
On 22 February 2012, the Court in Amsterdam delivered its verdict in a case brought by s’Energy B.V. and its managing director,
throwing out the claim in its entirety.
106

DELTA Financial statements 2011
Segment information
In 2011, DELTA altered the structure of the organisation with
the object of making it more responsive to changing market
conditions and the economic climate. The Executive Board has
been reduced in number from four members to two members
(CEO and CFO) and responsibilities have been delegated more
to segment level.
DELTA distinguishes the following segments:
• Energy
• Networks
• Waste Management
• Corporate
Each segment is generally subdivided into divisions.
Energy
The Energy segment is active throughout the energy chain,
from production to the supply of energy to the customer.
Commercial operations range from the procurement of the
required fuels, through electricity generation to supplying
energy (gas and electricity) to the wholesale market. As regards
retail operations, the supply of electricity, gas, water, radio
and television channels and telephony via cable as well as
internet access to consumers and the small-business market
also comes under this segment. Other activities are supplying
heating equipment (central heating systems) on a rental basis
and providing public information, undertaking research and
engaging in projects relating to renewable energy and energy
saving.
Networks
The network operator (DELTA Netwerkbedrijf) looks after the
transport of electricity and gas in the province of Zeeland
and is responsible for the construction, management and
maintenance of the various related networks. The Infrastructure
Division builds, manages and maintains electricity, gas, water,
heat and telecommunication networks. The division is also
responsible for the installation and management of electricity,
gas and water meters and for meter reading.
Waste Management
All activities in this field are carried on by the DELTA subsidiary
Indaver N.V., which specialises in all activities in the waste
management chain, including waste collection, recycling and
processing.
Corporate
This segment essentially comprises the central staff
departments. The subsidiary DELTA Industriële Reiniging is also
reported as part of this segment.
The subsidiaries Triqua and DELTA MBR are held for sale.
Also reported as discontinued operations are the costs of
disengaging from the activities of Solland, Sunergy and
Biovalue.
Transactions between segments are conducted at prices similar
to those for transactions with third parties.
107

Consolidated financial statements
Segment revenue and operating results
(x EUR 1,000)
Revenue
Profit
2011 2010 2011 2010
Energy 1,518.7 1,474.5 46.6 81.6
Networks 149.0 134.8 27.9 17.8
Waste Management 498.9 442.4 31.3 24.3
Corporate 18.5 21.3 (28.7) (58.9)
Total 2,185.1 2,073.1 EBIT 77.0 64.9
Share in results of joint
ventures and associates 85.2 63.0
Finance income and expense (24.3) (21.9)
Corporate income tax (35.5) (16.4)
Non-controlling interests (8.0) (2.0)
Discontinued operations (11.7) (265.4)
Profit after tax 82.7 (177.8)
Segment assets
(x EUR 1,000)
Assets
31/12/2011 31/12/2010
Energy 1,271.9 952.2
Networks 355.8 325.0
Waste Management 1,150.2 1,086.9
Corporate 379.7 383.0
Unallocated assets 52.4 49.4
Assets held for sale 2.6 4.0
Total 3,212.7 2,800.5
108

DELTA Financial statements 2011
Other segment information
(x EUR 1,000)
Depreciation
Impairment
2011 2010 2011 2010
Energy 24.9 20.0 1.2 -
Networks 18.4 18.8 - -
Waste Management 50.2 38.9 4.4 10.0
Corporate 15.9 33.4 (1.1) 4.5
Total 109.5 111.0 4.5 14.4
The level of depreciation in 2011 is in line with that in 2010.
The impairment losses for Waste Management concern the
write-down on land in Cork (Ireland). The reversal in 2011 of
impairment losses recognised in 2010 on the vehicle fleet of the
subsidiary DELTA Industriële Reiniging has been included in the
Corporate segment.
Geographical segmentation
(x EUR 1,000)
Revenue by country
2011 2010
Netherlands 1,285.6 1,368.6
Belgium 220.4 191.9
UK and Ireland 265.3 201.3
Germany 271.8 214.1
Rest of EU 142.1 96.8
Non-EU - 0.5
Totaal 2,185.1 2,073.1
The revenue per country is made up entirely of external
revenue. Revenue outside the Netherlands is almost entirely
realised within the Energy and Waste Management segments.
109

Consolidated financial statements
Consolidated companies
Company
1) Shareholding of the parent company in the entity
110
Headquarters
DELTA’s interest
31/12/2011 31/12/2010
DELTA Infra B.V. Middelburg 100% 100% 100%
Zeeuwse Netwerkholding N.V. Middelburg 100% 100% 100%
DELTA Netwerkbedrijf B.V. Middelburg 100% 100% 100%
DELTA Energy B.V. Middelburg 100% 100% 100%
DELTA Ficus Holding B.V. Middelburg 100% 100% 100%
DELTA Pipe B.V. Middelburg 100% 1) 100% 1) 100%
Deltius B.V. Ritthem 100% 100% 100%
Windpark Kreekraksluis B.V. Middelburg 100% 100% 100%
DELTA Tolling Sloe B.V. Middelburg 100% 100% 100%
DELTA Saefthinge N.V. Doel, Belgium 99.9% 99.9% 99.9%
Limo Energie Nederland B.V. Middelburg 100% 100% 100%
Litro Energie Nederland B.V. Middelburg 100% 100% 100%
DELTA Comfort B.V. Middelburg 100% 100% 100%
DELTA Kabelcomfort Netten B.V. Middelburg 100% 1) 100% 100%
ZeelandNet B.V. Kamperland 100% 1) 100% 100%
Voting
rights
Internetservices Zeeland B.V. Kamperland 100% 1) 100% 1) 100%
Internetplatform Zeeland B.V. Kamperland 100% 1) 100% 1) 100%
DELTA Energy Belgium N.V. Doel, België 99.9% n/a 99.9%
DELTA Industriële Reiniging B.V. Bergen op Zoom 100% 100% 100%
DELTA Milieu Industriële Reiniging N.V.
Sint-Kruis-Winkel,
n/a 100% n/a
Belgium
DELTA Investerings Maatschappij B.V. Middelburg 100% 100% 100%
DELTA Onroerend Goed Ontwikkelingsmaatschappij B.V. Middelburg 100% 100% 100%
Stichting DELTA Zeeland Fonds Middelburg 100% 100% 100%
DELTA Development & Water B.V. Middelburg 100% 100% 100%
DELTA MBR B.V. Middelburg 100% 100% 100%
Triqua B.V. Wageningen 100% 100% 100%
DELTA Biovalue B.V. (into liquidation) Eemshaven 100% 100% 100%
DELTA Biovalue Nederland B.V. (into liquidation) Eemshaven 100% 1) 100% 1) 100%
DELTA Biopat B.V. (into liquidation) Eemshaven 100% 1) 100% 1) 100%
DELTA Solar B.V. Middelburg 100% 100% 100%
Solland Solar Energy Holding B.V. Heerlen n/a 100% 1) n/a
Solland Solar Energy B.V. Heerlen n/a 100% 1) n/a
Solland Solar Real Estate B.V. Heerlen n/a 100% 1) n/a
Solland Solar Cells B.V. Heerlen n/a 100% 1) n/a
Solland Solar Cells GmbH Aachen, Germany n/a 100% 1) n/a
Sunergy Investco B.V. Rotterdam 100% 100% 100%
Solsic Development Company AS Norway 60% 60% 60%
RGS Development B.V. Petten n/a 100% n/a
Solwafer B.V. Middelburg n/a 100% n/a

DELTA Financial statements 2011
Company
Headquarters
DELTA’s interest
31/12/2011 31/12/2010
Voting
rights
Indaver N.V. Belgium 75% 75% 75%
Indaver Participaties N.V. Belgium 99.9% 100% 99.9%
Indaver Logistics N.V. Belgium 99.9% 100% 99.9%
Indaver Medical Services N.V. Belgium 99.9% 100% 99.9%
Indaver Italia S.R.L. Italy 100% 100% 100%
Indaver Ireland Ltd Ireland 100% 100% 100%
Indaver Energy Ltd Ireland 100% 1) n/a 100%
Indaver Nederland B.V. Netherlands 100% 100% 100%
Indaver Gevaarlijk Afval B.V. Netherlands 100% 1) 100% 1) 100%
Indaver Personeel B.V. Netherlands 100% 1) 100% 1) 100%
AROC B.V. Netherlands 100% 1) 100% 1) 100%
DELTA Milieu B.V. Terneuzen 100% 1) 100% 1) 100%
Promar B.V. Terneuzen n/a 100% 1) n/a
DELTA Milieu Compost en Biomassa B.V. Terneuzen 100% 1) 100% 1) 100%
DELTA Milieu Biofuels B.V. Terneuzen 100% 1) 100% 1) 100%
DELTA Milieu Groencompost B.V. Terneuzen 100% 1) 100% 1) 100%
DELTA Milieu Composteren B.V. Terneuzen 100% 1) 100% 1) 100%
DELTA Impex B.V. ‘s-Gravenpolder 100% 1) 100% 1) 100%
Zeeuwse Reinigingsdienst B.V. Terneuzen 99% 1) 99% 1) 99%
DELTA Milieu Verwerking B.V. Terneuzen 100% 1) 100% 1) 100%
DELTA Milieu Recycling B.V. Terneuzen 100% 1) 100% 1) 100%
Perex B.V. Terneuzen 100% 1) 100% 1) 100%
DELTA Milieu Afvalbergingen B.V. Terneuzen 100% 1) 100% 1) 100%
Derde Merwedehaven B.V. Terneuzen 100% 1) 100% 1) 100%
Stortplaats Koegorspolder B.V. Terneuzen 100% 1) 100% 1) 100%
Stortplaats Noord en Midden Zeeland B.V. Terneuzen 100% 1) 100% 1) 100%
DELTA Milieu Verbranding & Handel B.V. Terneuzen 100% 1) 100% 1) 100%
BTC Zoetermeer B.V. Terneuzen n/a 100% 1) n/a
DELTA Milieu Personeel B.V. Terneuzen 100% 1) 100% 1) 100%
Indaver Portugal S.A. Portugal 100% 100% 100%
Indaver Schweiz A.G. Switzerland 100% 100% 100%
Indaver UK Ltd UK 100% 100% 100%
Indaver Deutschland GmbH (was:SAV Beteiligungs GmbH) Germany 51% 51% 51%
SAV Zweite Beteiligungs GmbH & Co. KG Germany 94.90% 1) 94.90% 1) 94.90%
AVG Abfall-Verwertungs-Gesellschaft mbH Germany 99.74% 1) 99.74% 1) 99.74%
Gareg Umwelt-Logistik GmbH Germany 100.00% 1) 100.00% 1) 100.00%
HIM GmbH Germany 93.83% 1) 93.83% 1) 93.83%
Frassur GmbH Umweltschutz-Dienstleistungen Germany 100.00% 1) 100.00% 1) 100.00%
Panse Wetzlar Entsorgung GmbH Germany 100.00% 1) 100.00% 1) 100.00%
AVA Abwasser- und Verwertungsanlagen GmbH Germany 100.00% 1) 100.00% 1) 100.00%
1) Shareholding of the parent company in the entity
111

Consolidated financial statements
Non-consolidated companies
Company
Headquarters
DELTA’s interest
31/12/2011 31/12/2010
Voting
rights
Joint Ventures
DELTA Infra B.V.
vof Diepp Etten-Leur 50.00% 50.00% 50.00%
DELTA Energy B.V.
N.V. EPZ Borssele 70.00% 50.00% 70.00%
Sloewind B.V. Middelburg 50.00% 50.00% 50.00%
Windpark Distridam vof Terneuzen 50.00% 50.00% 50.00%
PVNed Holding B.V. Middelburg 50.00% 50.00% 50.00%
PVNed B.V. Middelburg 100.00% 1) 100.00% 1) 100.00%
Arbel N.V. (België) Mechelen, Belgium 99.90% 1) n/a 99.90%
BMC Moerdijk B.V. Moerdijk 50.00% 50.00% 50.00%
Sloe Centrale Holding B.V. Vlissingen 50.00% 50.00% 50.00%
Sloe Centrale B.V. Vlissingen 100.00% 1) 100.00% 1) 100.00%
DELTA Industriële Reiniging B.V.
Vedis Reiniging B.V. Terneuzen 50.00% 50.00% 50.00%
DELTA Mourik Industrial Services (DEMIS) vof Terneuzen 50.00% 50.00% 50.00%
Indaver N.V.
Sleco-Centrale N.V. Belgium 50.00% 50.00% 50.00%
Svex N.V. Belgium 50.00% 50.00% 50.00%
Wips N.V. Belgium 50.00% 50.00% 50.00%
HIM GmbH
Gesellschaft fur die Verwertung
von Sonderabfallen mbH& Co. K.G.
Germany 50.00% 50.00% 50.00%
DELTA Milieu Verbranding & Handel B.V.
Depmer B.V. Dordrecht 50.00% 50.00% 50.00%
DELTA Milieu Afvalbergingen B.V.
Zeeuwgrond B.V. Nieuwdorp 50.00% 50.00% 50.00%
DELTA Milieu Biofuels B.V.
Ecofuels B.V. Well, Limburg 50.00% 50.00% 50.00%
Laarakker Landbouw B.V. Well, Limburg 100.00% 1) n/a 100.00%
DELTA N.V.
Evides N.V. Rotterdam 50.00% 50.00% 50.00%
Elsta B.V. Middelburg 25.00% 25.00% 25.00%
Elsta B.V.& CoCV Middelburg 24.75% 24.75% 24.75%
DELTA/Essent Lighting vof Goes 50.00% 50.00% 50.00%
Associates
DELTA Netwerkbedrijf B.V.
Zebra GasNetwerk B.V. Middelburg 33.33% 33.33% 33.33%
Zebra Activa B.V. Middelburg 100.00% 1) 100.00% 1) 100.00%
Zebra Pijpleiding vof Middelburg 33.33% 1) 33.33% 1) 33.33%
Entrade Pipe B.V. Vught 100.00% 1) 100.00% 1) 100.00%
Zebra Pijpleiding vof Middelburg 66.67% 1) 66.67% 1) 66.67%
112 1) Shareholding of the parent company in the entity

DELTA Financial statements 2011
Company
DELTA Energy B.V.
Headquarters
DELTA’s interest
31/12/2011 31/12/2010
Windpark Neeltje-Jans B.V. Veere 40.00% 40.00% 40.00%
Windpark Zeeland 1 B.V. Vlissingen/Kapelle-Schore 40.00% 40.00% 40.00%
NPG Willebroek N.V. Antwerpen, Belgium 49.00% 49.00% 49.00%
DELTA N.V.
Sunergy Investco B.V.
Fesil Sunergy AS Norway 49.00% 1) 49.00% 1) 49.00%
Partners Vliegveld Zeeland B.V. Middelburg 40.91% 45.00% 40.91%
Zeeland Airport B.V. Middelburg 46.00% 1) 48.00% 1) 46.00%
Indaver N.V.
IHM cvba Belgium 30.00% 30.00% 30.00%
Ibogem cvba Belgium 35.12% 35.12% 35.12%
Intercommunale vereniging Verko N.V. Belgium 39.90% 39.90% 39.90%
Ecowest N.V. Belgium 42.61% 42.61% 42.61%
Indaver Participaties N.V.
Sita Decontamination Services N.V. Belgium 26.00% 1) 26.00% 1) 26.00%
Ecov N.V. Belgium 50.00% 1) 50.00% 1) 50.00%
Voting
rights
Ivago cvba Belgium 50.00% 1) 50.00% 1) 50.00%
N.V. Brussel Compost Belgium 40.00% n/a 40.00%
DELTA Milieu B.V.
AZN Holding B.V. Wijster 20.00% 20.00% 20.00%
B.V. Grondbezit AVI Moerdijk Moerdijk 100.00% 1) 100.00% 1) 100.00%
B.V. Grondbezit AVI Moerdijk II Moerdijk 100.00% 1) 100.00% 1) 100.00%
N.V. AZN Den Bosch 100.00% 1) 100.00% 1) 100.00%
Others
DELTA Netwerkbedrijf B.V.
Energie Data Services Nederland B.V. 1.65% 1.65% 1.65%
DELTA Energy B.V.
Decu Beheer B.V. 60.00% 60.00% 60.00%
Decu CV 59.76% 59.76% 59.76%
DELTA N.V.
N.V. Kema 7.60% 7.60% 7.60%
Synergia Capital Partners B.V. 5.00% 5.00% 5.00%
DELTA Investerings Maatschappij B.V.
Sustainable Energy Technology Fund C.V. 49.93% 1) 49.93% 1) 49.93%
Sustainable Energy Technology Fund II C.V. 70.00% 1) n/a 70.00%
Business Park Terneuzen B.V. 15.00% 15.00% 15.00%
Indaver N.V.
GRL Glasrecycling N.V. n/a 34.99% n/a
Vlar Papier N.V. 34.96% 34.96% 34.96%
Spanin N.V. 50.00% 50.00% 50.00%
Ecowest N.V.
IVIO cvba 1.50% 1) 1.50% 1) 1.50%
Ivvo cvba 3.46% 3.46% 3.46%
1) Shareholding of the parent company in the entity
113

Company financial statements
Company balance sheet as at 31 December 2011 (before profit appropriation)
(x EUR 1,000)
ASSETS
Notes 31-12-2011 31-12-2010
Non-current assets
Intangible assets 1 3,470 28,415
Property, plant and equipment 2 26,681 27,510
Financial assets
Investments in subsidiaries 3 996,809 1,001,826
Other investments 3 327,997 288,567
Receivables from subsidiaries 3 59,567 29,550
Loans to other investment entities 3 418 -
Other loans 3 360 13,342
Deferred tax assets 4 60,638 74,440
1,445,789 1,407,725
1,475,940 1,463,650
Current assets
Receivables from subsidiaries 115,458 113,548
Other receivables 5 10,364 26,781
125,822 140,329
Cash 10,157 1,385
1,611,919 1,605,364
EQUITY AND LIABILITIES
Notes 31-12-2011 31-12-2010
Shareholders’ equity
Shareholders’ equity 6 1,043,039 1,307,601
Profit for the year 6 82,690 (177,787)
1,125,729 1,129,814
Provisions 7 2,822 3,372
Non-current liabilities 8 306,533 146,383
Current liabilities
Payables to subsidiaries 130,462 248,637
Other payables 9 46,373 77,158
176,835 325,795
1,611,919 1,605,364
114

DELTA Financial statements 2011
Company income statement
(x EUR 1,000)
2011 2010
Profit on parent company activities (75,500) (7,537)
Share in profits of subsidiaries, joint ventures and associates 158,190 (170,250)
Profit for the year 82,690 (177,787)
115

Company financial statements
Notes to the company financial statements
DELTA N.V. is the holding company, incorporated under Dutch
law, of a number of the subsidiaries active in the generation of
electricity, in the transportation and supply of energy and in the
provision of environmental and cable services. The functional
currency is the euro. Unless otherwise stated, all amounts are
presented in thousands of euros.
DELTA availed itself of the option in Part 9, Book 2, of the
Netherlands Civil Code to prepare the company financial
statements in accordance with the IFRS accounting policies
used in the consolidated financial statements with the
exception of the equity-accounted subsidiaries, joint ventures
and associates. The company income statement is presented in
abridged form in accordance with article 402, Part 9, Book 2, of
the Netherlands Civil Code.
Accounting policies
The investments in the equity of other entities are stated at net
asset value, measured in accordance with the IFRS accounting
policies applied in the consolidated financial statements,
adjusted for the goodwill paid on acquisition and any
impairment of goodwill. No account is taken of non-controlling
interests which are recognised in the carrying amount of the
subsidiary concerned.
For the other accounting policies, reference is made to the notes
to the consolidated financial statements.
116

DELTA Financial statements 2011
1. Intangible assets
(x EUR 1,000)
Total Software
2010
Carrying amount as at 1 January 42,352 42,352
Investments 3,751 3,751
Amortisation (17,101) (17,101)
Reclassification/other changes (587) (587)
Carrying amount as at 31 December 28,415 28,415
Total Software
2011
Carrying amount as at 1 January 28,415 28,415
Investments 688 688
Amortisation (14,145) (14,145)
Reclassification/other changes (11,488) (11,488)
Carrying amount as at 31 December 3,470 3,470
Amortisation period in years 5
The movement in intangible assets is entirely due to investments in and amortisation of IT software.
In 2011, several IT applications purchased exclusively for use by one of DELTA’s subsidiaries were transferred to the company
concerned. The amount of the assets carried on the balance sheet of DELTA N.V. was reduced accordingly.
117

Company financial statements
2. Property, plant and equipment
(x EUR 1,000)
Total
Land and
buildings
Plant and
equipment
Other assets
Assets under
construction
Third-party
contributions
2010
Carrying amount as at 1 January 35,489 21,117 7,636 1,467 9,315 (4,046)
Investments 721 - - - 730 (9)
Depreciation (1,034) (803) - (231) - -
Disposals (4,605) (4,605) - - - -
Other movements (3,061) 2,547 (713) 326 (8,309) 3,088
Carrying amount as at 31 December 27,510 18,256 6,923 1,562 1,736 (967)
Carrying amount before deduction of 28,478 18,256 6,923 1,562 1,736
contributions
Accumulated depreciation and
96,106 24,735 51,815 19,556
impairment
Acquisition cost as at 31 December 124,582 42,991 58,737 21,118 1,736
Total
Land and
buildings
Plant and
equipment
Other assets
Assets under
construction
Third-party
contributions
2011
Carrying amount as at 1 January 27,510 18,256 6,923 1,562 1,736 (967)
Investments - - - - - -
Depreciation (914) (733) - (181) - -
Disposals - - - - - -
Other movements 85 1,585 (678) (91) (980) 249
Carrying amount as at 31 December 26,681 19,108 6,245 1,290 756 (718)
Carrying amount before deduction of 27,399 19,108 6,245 1,290 756
contributions
Accumulated depreciation and
97,020 25,468 51,815 19,737
impairment
Acquisition cost as at 31 December 124,418 44,576 58,059 21,027 756
Depreciation periods in years 10 - 40 7 - 40 5 - 15 n/a
Property, plant and equipment consists chiefly of investments in premises. There were no new investments or disposals in 2011.
118

DELTA Financial statements 2011
3. Financial assets (excluding tax assets)
(x EUR 1,000)
Receivables
Investments
Receivables from other
in
Other
from investment
Other
Total subsidiaries investments subsidiaries entities receivables
Carrying amount as at 1 January 2010 1,078,891 725,649 289,016 36,876 1,202 26,145
Movements relating to subsidiaries (42,276) (42,276) - - - -
Reversal of current portion 1,231 - - - (399) 1,630
Acquisition/grant of loans 28,128 - (10,197) 37,855 450 20
Share in profits (170,250) (200,570) 30,320 - - -
Disposals/repayments/dividends (47,629) 15,452 (20,677) (29,838) (51) (12,515)
Movements in hedge reserve 124,866 124,866 - - - -
Other movements 360,327 378,705 105 (15,344) (1,202) (1,937)
Carrying amount as at 31 December 2010 1,333,285 1,001,826 288,567 29,550 0 13,342
Reversal of current portion 2,839 - - - - 2,839
Acquisition/grant of loans (2,271) - - (3,000) 418 311
Share in profits 158,190 114,720 43470 - - -
Disposals/repayments/dividends (57,307) (49,695) (26,098) 33,017 - (14,532)
Movements in hedge reserve (77,314) (77,314) - - - -
Other movements 27,729 7,272 22,058 (1) - (1,600)
Carrying amount as at 31 December 2011 1,385,151 996,808 327,997 59,567 418 360
In 2011, the subsidiary DELTA Comfort B.V. was sold to DELTA Energy B.V. This was a sale under common control.
The hedge reserve decreased in 2011, solely on account of the related deferred tax.
The revaluation of the investment in N.V. KEMA to fair value is included in other movements.
119

Company financial statements
4. Deferred tax assets
Deferred tax assets have arisen as a result of temporary
differences between the carrying amount in the financial
statements and the corresponding tax bases. Amounts are
also included in connection with loss carryforwards.
DELTA also recognises a hedge reserve for unrealised
movements in the value of derivatives/trade contracts in
accordance with IAS 39/32.
120

DELTA Financial statements 2011
5. Other receivables
(x EUR 1,000)
2011 2010
Trade receivables 1,835 5,570
Current corporate income tax 0 15,898
Other current taxes 2,972 20
Total current taxes 2,972 15,918
Derivatives 141 0
Other receivables, prepayments and accrued income 4,926 1,964
Current portion of long-term loans granted 490 3,329
Other receivables 5,416 5,293
Total 10,364 26,781
121

Company financial statements
6. Statement of changes in equity
(x EUR 1,000)
Total
Paid-up
capital
Statutory
reserve
Hedge reserve
Assets held
for sale
Other
reserves
Unappropriated
profit
Carrying amount as at 31
December 2009
1,258,105 6,937 54,908 (61,636) - 1,250,805 7,091
Profit appropriation for
2009
(50,000) - 40,581 - - (83,490) (7,091)
Other movements (3,977) - (3,470) - - (507) -
Movements in connection
with capitalised
- - (587) - - 587 -
development costs
Movement in hedge
reserve for energy
134,592 - - 134,592 - - -
derivatives
Movement in hedge
reserve for interest rate
4,086 - - 4,086 - - -
derivatives
Add: Corporate income
tax effect
(35,205) - - (35,205) - - -
Net profit for 2010 (177,787) - - - - - (177,787)
Carrying amount as at 31
December 2010
1,129,814 6,937 91,432 41,837 - 1,167,395 (177,787)
Profit appropriation for
2010
(50,000) - (3,620) - - (224,167) 177,787
Other movements 11,106 - (11,327) - 23,115 (682) -
Movement in hedge
reserve for energy
(66,950) - - (66,950) - - -
derivatives
Movement in hedge
reserve for interest rate
2,971 - - 2,971 - - -
derivatives
Add: Corporate income
tax effect
16,098 - - 16,098 - - -
Net profit for 2011 82,690 - - - - - 82,690
Carrying amount as at 31
December 2011
1,125,729 6,937 76,485 (6,044) 23,115 942,546 82,690
The statutory reserve comprises the undistributed profits of
subsidiaries, joint ventures and associates. It is consequently
not freely distributable. The hedge reserve is also not freely
distributable inasmuch as it relates to the unrealised fair value
gains and losses on the trading portfolio. The hedge resulting
from assets held for sale is also not freely distributable. For
an explanation of changes in equity, reference is made to the
consolidated financial statements.
In contrast to the consolidated financial statements, noncontrolling
interests in subsidiaries are deducted directly from
the carrying amounts of the investments concerned (equity
method).
122

DELTA Financial statements 2011
7. Provisions
(x EUR 1,000)
Total
BMAP
Employee
benefits
Other
provisions
Carrying amount as at 1 January 2010 3,702 494 3,208 -
Reversal of current portion of provisions 1,498 650 848 -
Added 4,360 360 4,000
Interest added 122 3 119 -
Released - - - -
Utilised (776) (89) (687) -
Other movements - -
Carrying amount as at 31 December 2010 8,906 1,058 3,848 4,000
Current portion of provisions (5,534) (650) (884) (4,000)
Carrying amount as at 31 December 2010 3,372 408 2,964 -
Reversal of current portion of provisions 5,534 650 884 4,000
Added 260 260 -
Interest added 122 8 114 -
Released (913) - (387) (526)
Utilised (848) (70) (778) -
Other movements (1) (1) -
Carrying amount as at 31 December 2011 7,526 995 3,057 3,474
Current portion of provisions (4,704) (400) (830) (3,474)
Carrying amount as at 31 December 2011 2,822 595 2,227 -
Provisions relate chiefly to employee benefits and to BMAP.
These provisions are recognised in order to settle future
financial obligations.
The BMAP provision relates to a provision in connection
with the Environmental Action Plan for Industry (BMAP).
The environmental surcharge on electricity and gas supplies
charged to certaingroups of users in the period 1991–1999
constitutes the basis of this provision. Remaining liabilities
connected with activities undertaken in the past under BMAP
are settled out of this provision.
Following the introduction of the new health insurance system
on 1 January 2006, the obligations underlying the provision
for health care have changed substantially. An amount of
EUR 0.8 million of the provision formed in the past continues
to be recognised.
Under the terms of the collective labour agreement (CLA),
DELTA also pays employees long-service benefits.
From the date on which an employee joins the company,
a provision is recognised for these benefits based on the
number of years of service, expected price and salary inflation
(averaging 1.5%) and statistical severance, invalidity and
mortality rates. The relevant discount rate is 4.5% (2010: 4.5%).
123

Company financial statements
8. Non-current liabilities
(x EUR 1,000)
2011 2010
Carrying amount as at 1 January 146,383 314,295
Reversal of current portion 2,157 2,616
Loans drawn down 165,000 115,000
Repayments (2,157) (282,616)
Movements in interest rate swap (2,050) (789)
Other movements (499) 34
308,834 148,540
Repayments due in the next year (2,301) (2,157)
Long-term debt 306,533 146,383
124

DELTA Financial statements 2011
9. Other payables
(x EUR 1,000)
2011 2010
Trade payables 12,692 12,382
Current tax liabilities 5,571 4,976
Derivatives 2,107 2,887
Current portion of non-current liabilities 2,301 2,157
Current portion of provisions 4,704 5,534
Accruals and deferred income 14,998 44,323
Total other payables 22,003 52,014
Bank borrowings 4,000 4,900
Carrying amount as at 31 December 46,373 77,158
The other payables include the current portion of the
provisions, the current portion of borrowings and outstanding
supplier accounts. The current tax liabilities include VAT and
energy tax payable.
125

Company financial statements
Commitments and contingent liabilities
403 Declarations
DELTA N.V. has filed a statement with the Chamber of Commerce
as required by the provisions of Section 403, Book 2, of the
Netherlands Civil Code assuming joint and several liability for
any debts arising from the legally binding transactions of any of
the following subsidiaries as at balance sheet date:
• DELTA Comfort B.V.
• DELTA Tolling Sloe B.V.
• DELTA Energy B.V.
• DELTIUS B.V.
• DELTA Ficus Holding B.V.
• Internetplatform Zeeland B.V.
• DELTA Infra B.V.
• Internetservice Zeeland B.V.
• DELTA Kabelcomfort Netten B.V.
• LIMO Energie Nederland B.V.
• DELTA MBR B.V.
• LITRO Energie Nederland B.V.
• DELTA Netwerkbedrijf B.V.
• ZeelandNet B.V.
• DELTA Onroerend Goed Ontwikkelingsmaatschappij B.V.
• Zeeuwse Netwerkholding N.V.
• DELTA Pipe B.V.
Given the filing of this statement and the declarations of
agreement on the part of the shareholders filed annually
with the Chamber of Commerce, these companies are exempt
from using the prescribed format in preparing their financial
statements.
DELTA N.V. forms a tax group with some of its subsidiaries.
On that basis, DELTA N.V. is jointly and severally liable for the
various tax liabilities of those companies.
Put options
DELTA has issued put options to the non-controlling
shareholders of Indaver. For a more detailed discussion,
reference is made to the consolidated financial statements.
Unbundling plan –
Independent Network Management Act (WON)
The Minister approved the plan to unbundle the company on
2 December 2009. However, on 22 June 2010, the Court in
The Hague declared parts of the unbundling act non-binding.
In the light of this judgement, the unbundling did not go
ahead, although the conditions stipulated by the Minister
have been complied with as far as possible and necessary.
The government took the case to the Supreme Court in an
attempt to get the decision overturned. On 24 February 2012,
the Supreme Court referred the case to the European Court of
Justice.
126

DELTA Financial statements 2011
Audit fees
In 2011, DELTA N.V. paid the following fees to auditors:
(x EUR 1,000)
DELOITTE ACCOUNTANTS B.V.
OTHER PARTS
DELOITTE NETWERK NLD
TOTAL
2011 2010 2011 2010 2011 2010
751 739 - - 751 739
Other analysis assignments 67 38 - - 67 38
Tax-related advice services 19 - - - 19 -
Other non-analysis services 93 124 135 303 228 427
930 901 135 303 1,065 1,204
Performance-related fees are not paid.
The audit of the financial statements of the members of the
DELTA group in 2011 related to the completion of the 2010
financial statements (19 sets of accounts in total) and the
interim 2011 audit.
Signed:
Executive board:
Supervisory Board:
F. Verhagen, General Manager (acting) D. van Doorn, Chairman
J. Bout
R. Frohn
F. Verhagen, CFO J.G. van der Werf
B.P. de Wit, MA
127

Other information
Profit appropriation
Profit appropriation under the Articles of Association.
Article 39 of the Articles of Association provides for the
appropriation of profits as follows.
1. Any loss reported in the income statement, as included
in the adopted financial statements, shall be taken to the
general reserve. If the general reserve holds insufficient
funds to cover said loss, the remainder of the loss shall be
charged to any profits achieved in future years.
2. If the income statement, as included in the adopted
financial statements, reports any profit, the Supervisory
Board may use this profit to allocate funds to the general
reserves. Any profit remaining shall be at the disposal of the
General Meeting of Shareholders.
3. The General Meeting has the authority to declare one
or more interim dividends and/or make other interim
distributions, provided the requirements of Section 2:105,
subsection 2, of the Netherlands Civil Code are satisfied
on the evidence of an interim statement of financial
position as referred to in Section 2:105, subsection 4, of the
Netherlands Civil Code.
Profit appropriation
(x EUR 1,000)
2011 2010
Profit after tax 82,690 (177,787)
Charged/added to the statutory reserve (125,522) 3,620
Profit available for appropriation (42,832) (174,167)
Charged/added to the general reserves (82,832) (224,167)
Proposed dividend 40,000 50,000
128

DELTA Financial statements 2011
Independent auditor’s report
To: the shareholders of DELTA N.V.
Report on the financial statements
We have audited the accompanying financial statements of
DELTA N.V. , Middelburg. The financial statements include the
consolidated financial statements and the company financial
statements. The consolidated fi nancial statements comprise
the consolidated balance sheet as at 31 December 2011, the
consolidated statements of comprehensive income, changes
in equity and cash flows for the year then ended, and notes,
comprising a summary of the significant accounting policies
and other explanatory information. The com pany financial
statements comprise the company balance sheet as at 31
December 2011, the company income statement for the year
then ended and the notes, comprising a summary of the
accounting policies and other explanatory information.
Management’s responsibility
Management is responsible for the preparation and fair
presentation of these financial statements in ac cordance with
International Financial Reporting Standards as adopted by
the European Union and with Part 9 of Book 2 of the Dutch
Civil Code, and for the preparation of the annual report in
accordance with Part 9 of Book 2 of the Dutch Civil Code.
Furthermore management is responsible for such internal
control as it determines is necessary to enable the preparation
of the financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in
accordance with Dutch law, including the Dutch Standards
on Auditing. This requires that we comply with ethical
requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud
or error.
In making those risk assessments, the auditor considers
internal control relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of
the entity’s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management,
as well as evaluating the overall presenta tion of the financial
statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Opinion with respect to the consolidated financial
statements
In our opinion, the consolidated financial statements give a
true and fair view of the financial position of DELTA N.V. as at
December 31, 2011 and of its result and its cashflows for the
year then ended in accordance with International Financial
Reporting Standards as adopted by the European Union and
with Part 9 of Book 2 of the Dutch Civil Code.
Opinion with respect to the company financial statements
In our opinion, the company financial statements give a true
and fair view of the financial position of DELTA N.V. as at
December 31, 2011 and of its result for the year then ended in
accordance with Part 9 of Book 2 of the Dutch Civil Code.
Report on other legal and regulatory requirements
Pursuant to the legal requirement under Section 2:393 sub 5
at e and f of the Dutch Civil Code, we have no deficiencies to
report as a result of our examination whether the annual report,
to the extent we can assess, has been prepared in accordance
with Part 9 of Book 2 of this Code, and whether the information
as required under Section 2:392 sub 1 at b-h has been annexed.
Further we report that the annual report, to the extent we can
assess, is consistent with the financial statements as required
by Section 2:391 sub 4 of the Dutch Civil Code.
Middelburg, 2 april 2012
Deloitte Accountants B.V.
Was Signed: W.A. de Leeuw RA
129

Other information
DELTA in financial figures, consolidated
(x EUR million)
2011 2010
Assets
Intangible assets 395 420
Property, plant and equipment 1,036 977
Financial assets 1,035 700
Current assets 694 653
Cash 52 49
3,213 2,800
Equity and liabilities
Group equity 1,180 1,183
Provisions 237 96
Non-current liabilities 842 797
Current liabilities 955 725
3,213 2,800
Revenue
Electricity 1,002 1,073
Gas 415 312
Electricity and gas transport 114 101
Telecommunications 83 83
Waste management and environmental services 509 462
Miscellaneous 63 42
Total revenue 2,185 2,073
Expenses
Cost of sales 1,549 1,454
Fair value gains and losses on the trading portfolio 13 (3)
Other operating income (32) (29)
Net operating expenses 578 586
Total operating expenses 2,108 2,008
Earnings from operations 77 65
Share in results of joint ventures and associates 85 63
Operating result 162 128
Net finance income (expense) (24) (22)
Profit before tax 138 106
Corporate income tax (36) (16)
Profit from discontinued operations (12) (265)
Non-controlling interests (8) (2)
Profit after tax 83 (178)
Proposed dividend 40 50
130

DELTA Financial statements 2011
DELTA key figures
(x EUR million)
2011 2010
Revenue 2,185.1 2,073.1
of which:
Electricity supply 1,001.8 1,073.1
Gas supply 415.3 312.3
Electricity and gas transport 113.6 100.6
Cable, internet and telecommunications 83.2 82.9
Waste management and environmental services 508.7 461.8
Other revenue 62.6 42.4
Finances
Gross margin 655.2 650.9
Operating result 162.2 127.8
Profit before tax 137.9 106.0
Profit after tax 82.7 (177.8)
Group equity (excluding dividend) 1,179.8 1,183.1
Balance sheet total 3,212.7 2,800.5
Ratios
Return on investment 7.0% 6.5%
Return on equity attributable to the shareholders 7.3% -15.7%
Equity ratio 36.7% 42.2%
Interest coverage ratio 14.9 14.3
Definition of financial ratios
Return on capital employed (ROCE)
Earnings from operations plus interest income from financial assets and the share in the profit of joint ventures and associates
divided by capital employed x 100.
Capital employed
The sum of non-current assets and net working capital as at balance sheet date.
Return on equity (ROE)
Profit attributable to shareholders of DELTA N.V.,
divided by the shareholders’ equity attributable
to the equity holders of DELTA N.V.
Equity ratio
Group equity divided by total assets x 100.
Interest coverage ratio
Operating result + depreciation/amortisation charges + interest income divided by net external finance income and expense.
131

Annual Report 2011
DELTA N.V. | Poelendaelesingel 10 | 4335 JA Middelburg
T +31 (0)118 88 20 00 | F + 31 (0)118 88 21 00 | E info@DELTA.nl | W www.DELTA.nl
Entered in the trade register of the Chamber of Commerce in Middelburg under number 22031457.