Annual Report 2013 Summary. Contents

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2 Annual Report 2013 Summary This is a summary of the Evides Waterbedrijf 2013 annual report. It contains information about administrative and financial aspects of the company to include Supervisory Board information, corporate governance and the key financial data. General information in English about Evides Waterbedrijf can be found in our English-language corporate brochure and on our website. The full Dutch-language annual report for 2013 can be downloaded from our website: 2013.jaarverslagevideswaterbedrijf.nl. Contents Introduction to Evides 3 The Supervisory Board 4 Corporate Governance 5 Internal risk management and control systems 6 Financial results 8 Outlook Summary financial statements 2013 Consolidated balance sheet as of 31 December Consolidated profit and loss account of Consolidated cash flow statement of Appendices 1. Key figures Organisational structure Participating interests Ancillary positions 20 2 van 21

3 Introduction to Evides Always being able to count on clean, high-value drinking water from the tap and the continuous availability of industrial water that complies with stringent standards: this is Evides Waterbedrijf s commitment 24 hours every day. For nearly 150 years, customers and companies in the southwestern part of the Netherlands Zuid-Holland Zuid, Zeeland and Brabantse Wal have been able to count on reliable water from Evides Waterbedrijf and its predecessors. We provide drinking water to around 2.5 million people and businesses every day. Evides provides bespoke water solutions to large industrial companies in the Netherlands, Belgium and Germany. This can be in the form of temporary support or as a partner responsible for the entire implementation and operation of water purification plants. Evides is also active in the purification of waste water and the reuse of purified waste water for, among others, industrial applications. Being a diversified water company heavily relying on river water as a primary water source, Evides continuously strives to optimize and improve technologies for the purification, distribution and wherever possible the reuse of water. By doing so Evides intends to contribute to the closure of the water cycle in the Netherlands and beyond. In 2013, Evides purified a total of 289 million cubic metres of water, which ranks us as the second largest drinking water utility and the largest supplier of industrial water in the Netherlands. To safeguard the quality of our water, Evides also engages in the conservation and quality improvement of the water sources namely, surface waters, groundwater and (infiltrated) water in the dunes. Evides is a N.V. corporation, 50% of which is owned by B.V. Gemeenschappelijk Bezit Evides (the municipalities in the Rotterdam area); the remaining 50% is owned by DELTA N.V., an energy company based in the southern province of Zeeland, held by government bodies in the province of Zeeland. Efficient, environmentally responsible and transparent Evides' business operations are efficient, environmentally responsible and transparent. We ensure in this way that our customers can always rely on safe, clean water for an affordable price and with good service. More than 680 employees continuously work to assure the compliance of all its processes by: constantly anticipating on developments in the sector and in the society; innovating for purpose of efficiency, customer satisfaction, quality and cost control; cooperating with public and private partners in the sector and in the water chain; assisting selected partner water companies in developing countries in supplying more and better drinking water to households; operating the company sustainably and with Corporate Social Responsibilty (CSR) entrepreneurship; being an attractive employer; providing a socially acceptable return for our shareholders. 3 van 21

4 The Supervisory Board The Supervisory Board monitors the policy conducted by the Executive Board and the general course of affairs, and supports the Board by providing advice. Composition and profile The Supervisory Board consists of seven professionals who are appointed by the General Meeting of Shareholders. There is always at least one independent board member, nominated by the Supervisory Board. Delta and GBE are both entitled to nominate two board members. On this matter, Evides deviates from the Dutch Corporate Governance Code that it has adopted voluntarily. The Works Council has the right to recommend two board members. The chairman is an independent board member. Two subcommittees are set up by the Supervisory Board: the audit committee and the remuneration committee. The selection committee and the appointment committee are formed on an ad hoc basis. The profile of the Supervisory Board reflects the principles for the Supervisory Board s composition. A balanced composition of the board is attempted in terms of experience and affinity with the company's nature and culture, as well as with diversity with regard to gender ratio targeted by the Management and Supervision Act. In the Supervisory Board, professional knowledge is available in the following areas: finance, risk management, treasury and audits; drinking water facilities and affinity with the water chain; entrepreneurship in a capital-intensive sector and knowledge of (international) industrial water consumers, as well as the related industrial services provided (including waste water processing); knowledge of and a professional network in public administration; customer and consumer interests; HRM policy, business organisation and change management; corporate governance and legal affairs; CSR. 4 van 21

5 Corporate Governance Evides Waterbedrijf voluntarily monitors the principles and best practices underlying the Dutch Corporate Governance Code. With this monitoring, Evides aims to exude clarity and openness about its governance as well as the way it manages its business. These principles and best practices are incorporated into the various regulations and arrangements that control the way in which Evides' units operate, or explain the reasons for the regulations that apply within Evides. In relation to the Code, Evides Waterbedrijf subsequently states the issues that deviate from the Code, in accordance with the apply or explain principle: The regulations that were expressly written for stock exchange listed companies are not being applied. The Executive Board of Evides Waterbedrijf has been appointed on a permanent basis. Shareholders and groups of shareholders are entitled to nominate the members of the Supervisory Board, determine their term of office and to appoint the Chairman. The Vice Chairmen together occupy the role prescribed by the Code. Due to the size of the company, Evides has not appointed an internal auditor. The audit committee agreed with this decision. Evides' website does not function as a communication medium with its shareholders because there is a direct shareholder relationship. For remuneration Evides has complied with the WNT is followed for remuneration (WNT is a Dutch law for standardisation of top incomes). Evides Waterbedrijf is a private limited liability company. In accordance with the law, a number of important decisions have been set aside for shareholder approval, such as the price of drinking water and profit distribution. The Executive Board's appointment, dismissal and remuneration policy have also been left to the General Meeting of Shareholders. The Supervisory Board arranges the specific remuneration and terms and conditions of employment. Evides' General Meeting of Shareholders consists of representatives from DELTA N.V. (which owns 50% of the shares and is owned by government bodies in the province of Zeeland) and representatives from B.V. Gemeenschappelijk Bezit Evides (a collaboration of the municipalities in the southern part of Zuid-Holland that owns the other 50% of the shares). 5 van 21

6 Internal risk management and control systems Considering the water company's social importance, reducing and managing risks is high on Evides' agenda. In 2013, Evides continued its investment in its internal risk management and control systems. Priority risks were recalibrated in 2013 and these risks will receive extra attention in the coming two years. A compliance management system as well as an initial fraud framework- and control system were set up in Evides has also taken specific measures such as a study of the biological stability of drinking water and the renewal of its behavioural code of integrity. Risks are continuously linked to Evides' business activities. These arise in the areas of strategy, operations, finance and compliance. The management is responsible for the effective structuring and operation of Evides' internal risk management and control system. This system focuses on always be aware of the degree to which Evides achieves its strategic, operational and financial goals, on safeguarding reliable financial reporting and on acting in accordance with laws and regulations. Internal risk management and control system Using the internal risk management and control system, Evides strives to decrease the risk of errors, erroneous decisions and confrontation with unforeseen circumstances as much as possible. However, we can not guarantee completeness. Evides can be exposed to risks that are not yet known or that are not (yet) considered sufficiently important. No internal risk management and control system whatsoever can provide absolute assurance in the achievement of corporate goals. Nor can it entirely prevent all errors, losses, fraud or infractions of laws and regulations. Evides is an organisation in which control, holding each other accountable for respective responsibilities and short communication lines are paramount. This is also the core of the risk management and control system for all parts of the company. In this context, important instruments in Evides' internal risk management and control system are: Risk management This involves the identification and analysis of the risks, along with implementing and monitoring control measures that reduce these risks. The risk management structure is partly based on the COSO Enterprise Risk Management-Integrated Framework (COSO-ERM). Managers are responsible for managing risks; and they report on these semi-annually in the management team meeting. A project risk management system is operational for risk management in the performance of projects. Planning & control cycle Evides uses annual multiple-year and year budgeting, quarterly reports (including yearly prognoses and risk management) and monthly financial and operational management reports. In addition, Evides also draws up treasury reports for the Executive Board and Supervisory Board. Financial reporting A structured financial month- and year-closing is implemented. For audit purposes of the annual report, the external auditor evaluates the internal control measures with respect to financial reporting. The external auditor reports his findings in the annual management letter and auditor's report to the Executive Board, the audit committee and the Supervisory Board. Evides reports on its compliance with recommendations made by the auditor to the audit committee. Water quality and distribution reliability Important factors in this are quality systems for water distribution, systems for distribution reliability, safety and personnel selection policy (including declarations of good conduct). Security and crisis management Measures such as crisis management organisation, procedures, training and training evaluations. Other Including a code of conduct and house rules, a whistleblower regulation, the description of the administrative organisation and internal control of important financial processes, a treasury charter, a tax-control framework and a fraud framework. Once again in 2013, various improvements were implemented for strengthening the risk management and control systems in use. The most important improvements are explained in the following paragraph. Audits of essential components are conducted regularly in order to test the effectiveness of the control mechanisms. The Executive Board reports and is responsible to the audit committee and to the Supervisory Board for the structure and effective operation of the internal risk management and control system. 6 van 21

7 Based on the evaluation that has been performed and in accordance with best practice II.1.5 of the Dutch Corporate Governance Code, Evides Executive Board judged that the risk management and control system functioned properly throughout 2013 with respect to financial reporting risks and that this provides a reasonable measure of certainty that the 2013 annual accounts contains no material errors. In 2014, Evides the Executive Board remains committed to further strengthening and professionalization of its internal risk management and control system; continued attention will also be paid to possible efficiency improvements in these processes. 7 van 21

8 Financial results General Evides N.V. (ENV) owns 100% of the shares of Evides Drinkwater B.V. (EDW) and Evides Industriewater B.V. (EIW). For purposes of financial transparency, Evides activities are subdivided into EDW and EIW. The respective services and costs of ENV and its subsidiaries EDW and EIW are established in service agreements. In these, agreements are also made about the associated rates (Internal Transfer Price) used for mutual settlement. The methodology and cost assignment have also been assessed by specialised companies. The interests of ENV, EDW and EIW are indicated in the Participating interests appendix. The Evides group uses a consolidated annual accounts because of its corporate structure. The legal entities for which Evides N.V. can exercise direct or indirect decisive authority are consolidated in this. As of 21 December 2012, the shareholding in Delfluent Services B.V. (DSBV) was increased from 50% to 100% and actual policy formulation has been possible since then. In 2012, this resulted in the inclusion of DSBV assets and liabilities in the consolidated annual report. Starting with the 2013 reporting year, this also applies to that DSBV's gains and losses. 8 van 21

9 The condensed balance sheet for EDW, EIW and ENV at the end of 2013 before the allocation of profit is as follows: (in million) EDW EIW ENV Consolidated Assets Fixed assets Intangible fixed assets Tangible fixed assets Financial fixed assets* Total fixed assets , ,045.5 Current assets Inventories Receivables Cash and cash equivalents Total current assets Total assets , ,113.5 Liabilities Equity* Minority interest Provisions Long-term debt* Short-term debt Inter-company receivables and debts Total liabilities , ,113.5 * In the consolidation, the value of the EDW and EIW participation stated by ENV is cancelled by equity. In addition, the mutual receivables and debts among ENV, EDW and EIW are eliminated. 9 van 21

10 Before allocation of profit, the solvency ratio for ENV's consolidated balance sheet is 41,0%. After allocation of the proposed dividend for 2013 of 23.3 million, the solvency ratio is 38.9%. EDW, EIW and ENV's condensed income statement for 2013 is as follows: (in million) EDW EIW ENV** Consolidated Revenue* Purchasing value revenue* Added value Operating costs Operating profit Interest income and expense Profit before taxes Taxes Result from participations Profit after taxes Result from third parties Net profit * In the consolidation, revenues related to intercompany transactions between EDW and EIW are eliminated together with the purchasing value of those intercompany transactions. ** ENV recognises only profit from its participation in EDW and EIW. This profit is eliminated in the consolidated income statement. Solvency ratio Evides' EDW serves a bound customer market with an associated monopoly; its EIW division serves a competitive market of industrial customers. The share of industrial water turnover amounts to 87.4 million m 3. This is 36% of total water sales. The risk profile for non-drinking water activities is higher than that of drinking water activities. The difference in risk profile is illustrated in EIW and EDW's target solvency ratio: 55% and 30%, respectively, after allocation of profit. Based on the share of revenue for both activities, ENV's minimum solvency has been pegged at 38% after allocation of profit. 10 van 21

11 Outlook 2014 Looking ahead to 2014, Evides expects the sales of drinking water and industrial water to remain stable. By working cost-effectively, Evides was able to keep the 2014 rates the same as that of the previous year. Investments For drinking water, an investment budget of 73 million is provided for This will be used, among other things, for the replacement of distribution pipelines, expanding distribution reliability in the central part of the province of Zeeland and expanding purification facilities at Rotterdam- Kralingen with a UV installation. For industrial water, an investment budget of 7 million is provided for In 2014, Evides will extend its long-term investment plan (to 2035) with detailed plans for the maintenance costs of its infrastructure. In this way, we can safeguard the reliable distribution of drinking water and guarantee stable rates. Developments In 2012, Evides recalibrated its strategy for Evides wishes to be a 'state of the art' water company. The ambition is to be among the best for the customer, in knowledge about purification and distribution and focus on the future in order to take opportunities for growth. In this, Evides looks farther ahead and further afield. In order to achieve this, the following four guiding objectives have been drawn up: further improvement of customer focus; being a frontrunner in managing processes for purifying and supplying water; controlled growth in industrial water and the water chain; additional sustainability efforts in company operations. Action plans for concrete substantiation of these guiding objectives were drawn up in 2013; these are currently being implemented. Evides has provided for the following developments in 2014: Continuation of the customer policy rollout by means of optimisation of customer processes and customer-focused behaviour in accordance with the Evides Roadmap to More Customer Focus. Conducting the integral, company-wide research study H2020. This programme contains eight research studies that address the challenges and threats facing Evides, so that Evides also remains a reliable water supplier in the future. The research programme will be conducted with partners from both within and outside the water sector; Performance of the 'CSR Roadmap' which will further expand actions initiated previously in five designated sustainability focus areas; Entering into collaborative partnerships in the water chain in order to achieve the objectives formulated in the Administrative Agreement on Water. Further development of various high-opportunity Product-Market Combinations (PMCs) in industrial water; Continuation of the current deployment of employees within Vitens Evides International for the improvement of drinking water supplies in developing countries; Protecting fresh water resources. To this end, Evides participates actively in the Delta programme to represent its customers' drinking water interests. In 2014, the Cabinet will make a decision concerning water security and fresh water supplies in the Netherlands. Further professionalization of the crisis management organisation by means of regular crisissituation exercises with various partners. No significant changes with regard to employee counts are expected in Evides continues its commitment to the retention of knowledge, timely recruitment of new personnel, a balanced distribution of the ages of employees and to keeping employees healthy, motivated and productive. 11 van 21

12 Despite slight economic improvement, the European financial-economic situation remains uncertain. This has a direct impact on industrial activities. For this reason, few new industrial water contracts are expected. The main opportunities for growth are abroad and primarily in emerging economies such as Vietnam and China. Evides Industriewater aims for growth in these countries, but always under conditions of stringent risk management, partnerships with local parties and proper staffing. In 2014, Evides employees will continue to enthusiastically commit to the sourcing, purification and distribution of drinking water and industrial water, so that Evides remains a reliable water supplier for households, companies and industries. Peter Vermaat CEO 6 March van 21

13 Summary financial statements 2013 Consolidated balance sheet (in million) 31 December December 2012 ASSETS Fixed assets Intangible fixed assets Tangible fixed assets Financial fixed assets Total fixed assets 1, ,042.6 Current assets Inventories Projects in progress Receivables Cash and cash equivalents Total current assets Total assets 1, ,101.7 Liabilities Equity Third-party minority interests Provisions Long-term debt Short-term debt Total liabilities 1, , van 21

14 Consolidated profit and loss account (in million) REVENUE Water Other revenue Total revenue PURCHASING VALUE REVENUE Raw materials and supplies Cost of other revenue Total purchasing value revenue Gross margin OPERATING COSTS Personnel costs Other operating costs Depreciation Total operating costs OPERATING PROFIT FINANCIAL INCOME AND EXPENSES Interest income and expense Profit before taxes Taxes Result from participations PROFIT AFTER TAXES Result from third parties NET PROFIT AFTER TAXES van 21

15 Consolidated cash flow statement (in million) Cash flow from operating activities Operating profit Adjustments for: Depreciation Changes to provisions Changes in working capital: change in receivables change in inventories change in projects in progress change in short-term debt Cash flow from company operations Interest income and expense Dividend received Corporate tax Cash flow from operating activities Cash flow from investment activities Acquisitions of group companies Repayments received Investments in tangible fixed assets Disinvestments in tangible fixed assets Cash flow from investment activities Cash flow from financing activities Dividend paid Receipts from long-term debt Repayments of long-term debt Cash flow from financing activities Increase / decrease in cash and cash equivalents* * Including the change in short-term cash loans and bank debts Movement in cash and cash equivalents is as follows: Position as of 1 January Change during the financial year Position as of 31 December van 21

16 Appendix 1 Key figures Unit Financial 1. Liquidity ratio % Solvency ratio % Average credit term receivables Days Net working capital million Return on total equity % Cash flow million Cash flow ratio % Internal financing ratio x Purchase of drinking water million m Sales of drinking water million m Sales of industry water million m Treatment of waste water p.e. 1 x 1,000 1, (excl. Delfluent) 13. Revenue million Operating assets 14. Number of consumer addresses x 1 1,027,554 1,028,181 1,019,684 1,007, Number of water meters x 1 979, , , , Length of transport and distribution Km 13,118 13,066 13,013 12,969 pipes 17. Length of desti pipes Km Length of source/raw/industrial Km water pipes 19. Number of disruptions x 1 8,980 9,774 9,599 10, Number of qualitative complaints x Personnel 21. Number of members of staff x 1 FTE (as at year-end) 22. Average wage costs per member of x 1, staff 23. Sickness absence % Pollution equivalents. 2. The increase in 2013 was caused by more work activities taking place including underground mains and flushing. This caused more particulates to be discharged into the distribution network, including the region of Spijkenisse. 3. Including 49.3 FTEs as a result of the taking over of Delfluent Services B.V. in Explanation key figures 1. Liquidity ratio = (current assets : current liabilities) x 100% 2. Solvency ratio = (equity capital : total assets) x 100% 3. Average credit term receivables = (receivables : turnover) x 365 days 4. Net working capital = current assets current liabilities 5. Return on total equity = ((profits + interest) : total equity) x 100% 6. Cash flow = profits + depreciations 7. Cash flow ratio = (cash flow : loan capital) x 100% 8. Internal financing ratio = investments : cash flow 16 van 21

17 Appendix 2 Organisational structure 17 van 21

18 Appendix 3 Participating interests Evides N.V. is the holding company for the Evides companies. The main activities are conducted by companies grouped into the two main divisions: Evides Drinkwater B.V. and Evides Industriewater B.V. Evides Drinkwater B.V. is responsible for all activities that have to do with the sourcing, production and distribution of drinking water. The subsidiaries under Evides Industriewater B.V. focus on the sourcing, production and distribution of industrial water and on waste water purification. The Evides group has various locations in the Netherlands. Evides N.V. participations In addition to Evides Drinkwater B.V. and Evides Industriewater B.V., owned for 100% by Evides N.V., Evides N.V. participates in: Facturatie B.V. With Vitens Evides participates on a 50/50-basis in a joint venture that focuses on invoicing and collections of water bills for household customers and small business water customers. For Evides, this concerns the Rijnmond region. This participation can be viewed as a cost centre and is not a profit-making operation. KWH Water B.V. Via KWH Water, Evides has access to research and development in the area of drinking water and other water done mainly in the context of Vewin (Vewin is the association of Dutch drinking water companies). Evides has a shareholding of 12.4%. Reststoffenunie Waterleidingbedrijven B.V. The waste substance union (Dutch: Reststoffenunie) was established by Dutch drinking water companies in order to search collectively for appropriate destinations for the substances released during the production of drinking water. Evides has a shareholding of 12.6%. Evides Drinkwater B.V. participations Evides Drinkwater B.V. is a shareholder in: N.V. Waterwinningbedrijf Brabantse Biesbosch (WBB) WBB owns the storage basins where pre-purification of water from the river Maas takes place before it is transported to Evides' purification plants. This water is the most important source of drinking and industrial water for the Evides distribution area. Evides is by far the largest customer (97%) and performs the operation of WBB under the terms of a multiple-year, market-conforming contract. Evides owns 60% of WBB; the remaining 40% is owned by Brabant Water. This participation can be viewed as a cost centre and is not a profit-making operation. Aqualab Zuid B.V. Aqualab Zuid is an accredited laboratory that conducts water analyses for shareholders and external customers. 50% of Aqualab Zuid is owned by Evides, 32.5% by Brabant Water N.V. and 17.5% by N.V. Waterleiding Maatschappij Limburg. Vitens Evides International B.V. Evides participates in this joint venture with Vitens on a 50/50-basis. Vitens Evides International focuses on the acquisition and execution of international projects for purposes of knowledge and skills transfer concerning drinking water processes. In this manner, Evides contributes to the United Nations' Millenium Goal of reducing by half the number of people without access to clean drinking water and sanitary facilities by This participation can be viewed as a cost centre and is not a profit-making operation. Evides Industriewater B.V. participations Evides Industriewater B.V. is a shareholder in: Evides Afvalwater B.V. Evides Afvalwater purifies waste water for customers allied with AWZI Sloe and AWZI Schiphol. Evides Industriewater owns 100% of this company. 18 van 21

19 Delfluent Services B.V. (DSBV) The DSBV operating company manages AWZI s Houtrust and Harnaschpolder facility and, in this context, has received a 30-year maintenance contract (until 2033) from Delfluent B.V. Since the end of 2012, Evides Afvalwater B.V. has held a 100% participation in this. Delfluent B.V. (DBV) The DBV consortium acquired the DBFO contract (design, build, finance, operate) from (the water authority) Hoogheemraadschap van Delfland for the construction of the Harnaschpolder waste water treatment facility, changes to the existing Houtrust treatment facility and for the operation of both plants for a period of 30 years (until 2033). DBV is owned by Evides (54.5%), DIF Infrastructure II (24.5%), Veolia Water Nederland B.V. (11%) and Strukton Finance (10%). Brielse Meer water B.V. Water from the Brielse Meer that is made available via Brielse Meer water B.V. is an important source for providing industrial water to the Rotterdam harbour region. Evides Industriewater owns 100% of this company. Evides Terneuzen Water B.V. Evides Terneuzen supplies Dow Terneuzen with industrial water via local installations. Evides Industriewater owns 100% of this company. Evident Industriewater B.V. Evident Industriewater conducts activities for acquiring and operating projects in the market for process water and waste water in the provinces of Flevoland, Utrecht, Overijssel, Gelderland and Friesland. Evides Industriewater owns 100% of this company. North Water B.V. Evides cooperates with Waterbedrijf Groningen in the joint venture North Water B.V. The objective is to join forces for the acquisition and operation of projects and activities in the market for industrial water and waste water in the northern provinces. Evides has a 50% participation in North Water B.V. Evilim B.V. Evides has set up the joint venture Evilim B.V. together with Waterleiding Maatschappij Limburg. The objective is to join forces for acquiring and operating projects in the market for process water and waste water in the southern part of the Netherlands. Evides has a 50% participation in Evilim B.V. Other subsidiaries Evides has the following 100% subsidiaries for participating in foreign waste water projects: Evides Stade Wasserbetrieb GmbH, Evides Antwerpen Water BVBA and Evides China Water Treatment Ltd in Hong Kong and Beijing and Evides China Water Treatment Beijing Technical Service Co. Ltd in Beijing. 19 van 21

20 Appendix 4 Ancillary positions Members of the Supervisory Board Mr prof. J.A. van Manen (1950), Chairman Nationality: Dutch Profession / main position: Partner Strategic Management Centre Laren Date of first appointment: 28 June 2012 Term of current appointment: until 28 June 2016 Current ancillary positions: Professor of Corporate Governance (Rijksuniversiteit Groningen) Chairman of the Monitoring Committee on Corporate Governance Supervisory Board member Stichting de Nationale Sporttotalisator (De Lotto) Supervisory Board member De Nederlandsche Bank Board member Stichting Maatschappij en Veiligheid Chairman of the VTW's Advisory Group on Administrative Issues (Vereniging van Toezichthouders in Woningcorporaties) Board member Stichting Globetrotter Work experience includes: Partner at PriceWaterhouseCoopers Mr J.P. de Kreij (1959) Nationality: Dutch Profession / main position: Vice-chairman of the Management Board and CFO of Koninklijke Vopak N.V. Date of first appointment: 28 June 2006 Term of current appointment: until 28 June 2014 Current ancillary positions: Member of the Advisory Committee for Issuing Institutions Euronext Amsterdam Supervisory Board member Corbion N.V. Work experience includes: Senior partner at PriceWaterhouseCoopers Mrs A.G. Nijhof MBA (1966) Nationality: Dutch Profession / main position: Chairman of the Management Board Tauw Group BV Date of first appointment: 30 September 2012 Term of current appointment: until 30 September 2016 Current ancillary positions: Board member Leefomgeving en Infrastructuur (Council for the Environment and Infrastructure) Work experience includes: Board member Grontmij Director-General Water of Ministry of Infrastructure and Environment Mr F. Verhagen (1961) Nationality: Dutch Profession / main position: CFO DELTA N.V. Date of first appointment: 24 June 2009 Term of current appointment: until 24 June 2017 Current ancillary positions: Supervisory Board member DELTA Netwerkbedrijf Vice-chairman of the Management Board Indaver N.V. Supervisory Board member Admiraal de Ruyter Ziekenhuis Supervisory Board member Hogeschool Zeeland 20 van 21

21 Work experience includes: CFO Essent Trading International SA CFO of various Reed-Elsevier divisions Mr D.A. van Doorn (1950) Nationality: Dutch Profession / main position: Director/Owner Van Doorn Consultancy Date of first appointment: 28 June 2012 Term of current appointment: until 28 June 2016 Current ancillary positions: Chairman Delta Port Donatiefonds Chairman Dry Bulk Experts Group Advisory Board member Erasmus SmartPort, EUR Work experience includes: CEO Europees Massagoed Overslagbedrijf (EMO) and Erts en Kolen Overslagbedrijf Maasvlakte (EKOM) Board member Van Ommeren Nederland B.V. Managing director Van Ommeren Binnentankvaart BV Mr H.G. Bouwman (1952) Nationality: Dutch Profession / main position: Director Legal advice office Masuca Advies B.V. Date of first appointment: 30 September 2012 Term of current appointment: until 30 September 2016 Current ancillary positions: Supervisory Board member LindeGas BOC Board member Wolters-Kluwer Preferential Share Foundation Advisory Board member The Waste Transformers Work experience includes: Board member Sara Lee International Senior Vice President for Legal Affairs Koninklijke Nederlandse Papierfabriek N.V. Mrs C.M.M. Schönknecht-Vermeulen (1954) Nationality: Dutch Profession / main position: Provincial executive for the Province of Zeeland Date of first appointment: 31 March 2013 Term of current appointment: until 31 March 2017 Current ancillary positions: Chairman Gemeenschappelijke Regeling Zeeland Seaports Work experience includes: Director VVV for the Walcheren and Noord-Beveland region Director Zeeland Delta Promotion Executive Board Mr P. Vermaat MBA (1965) Nationality: Dutch Profession / main position: CEO Evides Waterbedrijf Date of first appointment: 1 March 2008 Current ancillary positions: Supervisory Board member KWH Water B.V. Chairman of the Supervisory Board Delfluent B.V. Board chairman Stichting TKI Watertechnology (Topsector Water) Board member Stichting Wateropleidingen Board member Stichting Water for Life 21 van 21