Annual Report 2017 Enovos Luxembourg S.A.

8 9 Annual Report 2017 Enovos Luxembourg Part I Our Mission 6 Part II Our Achievements 14 Part III Annual Accounts 22 How did Enovos perform last year, in this environment that is still in permanent evolution? Marco Hoffmann: Despite the compli- cated environment we are facing, the results were satisfactory, although not as good as the previous year. In 2016, we had an exceptional year for our Portfolio Management and the mar- kets offered great opportunities. 2017 was just the opposite. The markets were less favourable, and sourcing was more complicated, as price vola- tility remained high. But there were several success stories, such as the positive renegotiation of major long- term contracts. Marc Reiffers: In Luxembourg, our home market, our sales position remained strong in all customer segments due to competitive prices which were supported by high qual- ity service levels. In Germany, Enovos Deutschland restructured its country- wide sales organisation and concen- trated its oversight functions to one site. Both actions were accompanied by a reduction of workforce and an improved cost position. German renewable energy activities were expanded with the addition of several large biogas plants now fully owned by Enovos Luxembourg. The photovol- taic Operations & Maintenance (O&M) portfolio was enlarged to 600 MW, making Enovos one of Germany’s larg- est providers in the field. In Belgium we took full control of NPG energy and initiated a plan for the optimisation of our assets. What is the strategic focus for Enovos going forward? Marco Hoffmann: Over the course of 2017, there was a group-wide strategy review which confirmed our key focus areas. Luxembourg will remain our core market and even become more important, which also has to do with the ongoing Rifkin process on the na- tional level. The German market will be another area of focus. As for France and Belgium, the strategy review is still on-going. Have there already been any internal implications from the strategy review? Marc Reiffers: The internal organisation was modified to grant greater autonomy to the people in operations and to allow us to work in a more decentralised man- ner. Also, we decided to strengthen the group’s innovative potential. The Energy Solutions and Services Department was integrated into vari- ous business units to increase market performance there. Together, manage- ment and staff, defined four core values for our whole group: Respect, Team Spirit, Commitment and Excellence. These values build on each other and we are convinced that they will help us to implement our new strategy. You have also mentioned the Rifkin process. It has been a little more than a year since the presentation of the study. Were there already any implica- tions for Enovos? Marco Hoffmann: There are several areas out of the Rifkin process that are important to us: energy efficiency, ecomobility, the increase in renewable energy production, and the develop- ment of the energy internet. In energy efficiency, we are heading in the right direction, although it is a challeng- ing field of activity and the 2020 target remains a very ambitious one. In ecomobility we are set-up to serve our customers; our products, linked to infrastructure, and to ecomobility services, are in place. Marc Reiffers: Electric mobility is on the rise, as clearly demonstrated by the projected 800 public charging stations, nearly 100 of which are already in use. This calls for adequate products for the customer, such as our fully digital ecomobility offer. But the large-scale deployment of electric mobility will also increase the need for electricity. Hence, increased production of renewable energy be- comes even more important. We will continue to develop renewable energy production. Our joint venture Soler, has 42 installed wind turbines in Luxembourg. With a total capacity of 91 MW, and an actual production of 171 GWh last year, the plan is to further develop its portfolio over the next years. As for photovoltaics, our efforts point to three main areas: ground mounted installations, and both large and small rooftop installations for indi- vidual customers or households. For the time being, the energy internet is clearly visible on the horizon: self- consumption, energy communities, smart products and others are clearly on our agenda. These strategic developments are in full harmony with our ambitions and priorities in terms of Corporate Social Responsibility, focusing on key INTERVIEW The next step Energy markets have undergone a variety of changes in the past few years and the evolution of the whole sector is far from over. Enovos is part of that change; proactively helping to shape the energy landscape of the Greater region. True to its motto: “Energy for today. Caring for tomorrow.” and aware of the role it has to play in contributing to Corporate Social Responsibility (CSR), Enovos is taking the next step to stay ahead of the pack, and to be ready for tomorrow’s energy world. "Our core values will help us to implement our new strategy." Marco Hoffmann, Chairman of the Board of Directors Marc Reiffers , CEO Enovos Luxembourg and Member of the Board of Directors