Annual figures 2010

Highlights

• Net turnover increased 7% to EUR 5.5 billion in 2010 (2009: EUR 5.1 billion);
• Net profit increased to EUR 563 million (2009: EUR 200 million), largely due to fair value movements;
• Excluding incidental items net profit increased by 7% to EUR 342 million (2009: EUR 321 million), primarily due to higher gas volumes sold during the cold winter months, and ongoing cost reductions;
• The market share in the Netherlands remained stable. Nuon’s market share in Belgium increased further;
• Customer satisfaction remained at the same high level as last year;
• Nearly 1 billion invested in new efficient production capacity.

Investments in fixed assets amounted to EUR 962 million, a rise of 37% from EUR 698 million in 2009. In addition to the regular investments in our existing production capacity and heat networks, investments were made in the Nuon Magnum power plant in Eemshaven (1,331 MW) and two new gas-fired power plants in Amsterdam and Diemen (435 MW each). These new power plants will replace existing, less efficient, production capacity as part of Nuon’s ambition to use fossil fuels as efficiently and cleanly as possible. Also, investments were made in a heat pipeline (connecting Nuon’s heat network in Almere with the production facility in Diemen) and the expansion of the gas storage facilities in Epe (Germany) and Zuidwending (the Netherlands).

Investments in renewable energy

Investments in renewable projects continued in 2010, albeit at a lower pace than anticipated since two large offshore concessions were not awarded to Nuon. In 2010, Nuon opened its Solar Island in Almere that uses solar heat to provide 2,700 households with heat and a small-scale wind park – Oom Kees – in the Netherlands that will supply electricity to 4,400 households. Nuon opened a second cooling station in Amsterdam Zuidoost. Water of the nearby Ouderkerkerplas is used to cool office building and datacenters in de Amsterdam Zuidoostlob. As in line with previous years, Nuon stimulated the reduction of energy usage by its customers. The new website nuonenergiebesparen.nl provided over 250,000 online energy advices to consumers.

As for wind energy, Nuon is planning to construct the ‘Zuidlob’ wind farm (a partnership with 63 agricultural entrepreneurs) in Flevoland with a total capacity of 122.4 MW. werden meer dan 250.000 online energieadviezen gegeven.

Financial position and cash flows remain strong

Solvency at the end of 2010 increased to 47.7%, compared to 43.5% in 2009 and the net cash position decreased to EUR 422 million as at 31 December 2010 (EUR 474 million at year-end 2009). As a result of the unbundling with Alliander the 2009 operating cash flow was affected by the one-off settlement of outstanding accounts of approximately EUR 1.5 billion with Nuon’s former shareholder Alliander. Excluding the impact of this settlement in 2009, the cash flow from operating activities increased from EUR 188 million in 2009 to EUR 910 million in 2010.

Strategic developments

Nuon focused on cost control, security of supply through a diversification of energy sources while continuing to invest in the energy supply for the future. In the transition to a more sustainable energy supply, investments were made and the framework for future renewable energy projects was set by Nuon and Vattenfall. Besides these efforts, we continued to help our customers in their energy-saving efforts.

Key figures

For the editors

These results relate to the legal entity Nuon Energy (“Nuon”) and include the results of Nuon’s sales and production activities, together with the results of Nuon’s wind and trading activities. With effect from 1 July 2009, the wind and trading activities have been integrated within Vattenfall Business Group Pan Europe and Vattenfall Energy Trading respectively. However, as long as these activities are not legally transferred within the Vattenfall group, the results of these activities will be included in the financial reports of Nuon.

For more information journalists may contact the Nuon press office at +31 88 09 888 88 and/or email pressoffice@nuon.com.

Disclaimer

Parts of this press release contain prospective information. These parts may include unqualified statements on future operating results, government measures, the impact of other regulatory measures on Nuon’s activities, Nuon’s shares and those of its subsidiaries and joint ventures in existing and new markets, industrial and macro-economic trends and Nuon’s performance in these, and statements preceded or followed by or containing words such as ‘believes’, ‘expects’, ‘anticipates’ or similar expressions. These prospective statements are based on the current assumptions concerning future activities and are subject to uncertainties and other known and unknown factors, many of which are beyond Nuon’s control, so that future actual results may differ significantly from these statements.

• Press release Vattenfall annual figures 2010 (50.88 KB)