Transcription

ManagementReport2017

Key Figuresfor the 2017 financial yearTrianel GmbH (Individual Financial Statements)in millionSalesEBTAnnual net income2016*Changesin %Changesabsolute3,0682,13643.6%9321.7 3.24.91.5 4.185.483.91.8%1.522.2%23.9 % 7.0% 1.733.0EquityEquity ratio2017Balance sheet ployees309347 11.0% 38in million20172016*Changesin %ChangesabsoluteGroup external sales3,1332,17344.2%9601.6 4.1Trianel GmbH (Consolidated Financial Statements)Consolidated annual net income*The sales proceeds of the previous year were adapted according to the new definition per the Reporting Guideline Implementation Act (BilRUG).5.7

Content4Report of the Supervisory Board6Summarised Management Report36 Annual Financial Statements of Trianel GmbH58 Consolidated Annual Financial Statements of Trianel GmbH

Trianel GmbHAnnual Report 2017Trianel Annual Report 2017Report of the Supervisory BoardThe 2017 financial year was dominated by the continuing weak revenue from conventional generation, consolidation of direct marketing, uncertainties due to thenew tender design for renewable energy and the opportunities of digitalisation forthe different value chain stages in the energy industry.Dietmar SpohnManagement Spokesmanof Stadtwerke BochumHolding GmbH (Chairman)In the 2017 financial year, the Supervisory Board focused routinely and intensively on thecompany’s situation and development and discussed the consequences of the significantchanges in the general conditions. We fulfilled all tasks and obligations required of us bylaw, articles of association and rules of procedure, comprehensively and diligently.We regularly advised the Management Board of Trianel GmbH in its management of thecompany, and continuously monitored its measures. We also advised the general meetingon resolutions and recommended resolutions. We were directly involved in decisions by thegeneral meeting, which were of significant importance for the company, and regularly discussed the current strategic concerns of the company with the Management Board.The Management Board reported regularly and in a timely manner to the Supervisory Boardboth in writing and orally on all key aspects of business development. The Supervisory Boardconvened for four ordinary Supervisory Board meetings on 21 February, 1 June, 21 September and 23 November 2017. Two extraordinary meetings took place on 22 March and 30 June2017. The Supervisory Board was informed of the current operative development of the company, the primary business transactions, the development of the financial figures and relevant pending decisions at all times.The Supervisory Board reached a quorum at every ordinary and extraordinary meeting of theSupervisory Board. The Management Board informed the Supervisory Board in writing andorally on important occasions and also between the meetings.The Supervisory Board was involved in all main decision-making processes. This focused onthe continuous monitoring of the “Horizon 2018” restructuring program and monitoring ofthe consolidation and efficiency measures introduced. As part of this process, the sale of thedigital sales platform Trianel PED to Vattenfall Smarter Living GmbH, the reorganisation ofdirect marketing and the merger of Trianel Finanzdienste GmbH with Trianel GmbH werediscussed. Other topics included future handling of the project options at Trianel GmbH andthe future orientation of the project development and generation activities. The SupervisoryBoard was also involved with matters relating to the employment relationships of the Management Board. As the previous authorised signatories Dr Alexander Kox, Stefan Sewckowand Thomas Spinnen left the company, their authorisations were revoked in early 2018. Alsoin early 2018, Department Heads Dr Reinhard Klimeck and Dr Rüdiger Schills joined experienced Ulrich Schmerkotte and Michael Ober as authorised signatories. The Supervisory Board4

CompanyReport of the Supervisory Boardalso assessed the annual financial statements for 2016, the management of the company’strading activities, the future orientation of the Municipal Utilities Sales Solutions segmentand the 2018 business plan.After the end of its five-year legislation period, the Supervisory Board reconstituted on 23 November 2017 and was streamlined from 15 to 12 members in line with the company’s consolidation. In its new structure, the Supervisory Board continues to reflect the diversity of thegroup of partners, and does not include any expert external members. As a result, the previous members of the Supervisory Board who were not from the shareholders, Dr Ulf Böge,Prof. Dr Marc Bettzüge and Michael Hegel left the supervisory group. We would like to thankthem sincerely for their dedication and the expertise they contributed over the past five years.With the constituting meeting for the third legislation period on 23 November, the Supervisory Board confirmed Dietmar Spohn, Spokesman of the Management Board of StadtwerkeBochum Holding GmbH, as Chairman and Michael Lucke, Managing Director of AllgäuerÜberlandwerk GmbH, as Deputy Chairman in their offices. The other members of the newSupervisory Board are Dr Christian Becker (Stadtwerke Aachen AG), Martin Heun (RhönEnergie Fulda GmbH), Ulrich Koch (Stadtwerke Herne AG), Jürgen Schäffner (Stadtwerke LübeckHolding GmbH) and Marco Westphal (Stadtwerke Bonn GmbH) Supervisory Board membersdelegated by the shareholders, and Dr Achim Grunenberg (Stadtwerke Lünen GmbH), Christian Meyer-Hammerström (Osterholzer Stadtwerke GmbH & Co. KG) and Dr Leonhard Schitter(Salzburg AG für Energie, Verkehr und Telekommunikation) as (re-)elected members of theSupervisory Board. In addition the Supervisory Board welcomed members elected for the firsttime Dr Rudolf Irmscher (Stadtwerke Heidelberg GmbH) and Cord Müller (Stadtwerke AalenGmbH). After the withdrawal of Cord Müller from the Management Board of StadtwerkeAalen GmbH at the end of 2017, Dr Branca Rogulic, Managing Director of Stadtwerke Tutt lingen GmbH, was elected to the Supervisory Board by the general meeting in March 2018.The annual financial statements and consolidated financial statements of Trianel GmbH forthe year ending 31 December 2017, as well as the Management Report, were audited byPKF FASSELT SCHLAGE Partnerschaft mbB Auditing, Tax Consulting and Law Firm, Duisburg,and received an unqualified Auditor’s Certificate.On behalf of the entire Supervisory Board, I would like to thank all employees who workedso energetically and loyally to ensure the company’s future success in a busy and productiveyear. For the current financial year, I wish the company every success in overcoming the challenges of the market and continued successful implementation of Horizon 2018 together.Bochum, 25 April 2018Dietmar SpohnChairman5

SummarisedManagement Reportof Trianel GmbH for the 2017 financial year7Company situation714Business modelStrategy and management of the company18Business report182121General conditionsBusiness developmentCompany situation24 Report on forecast, opportunities and risks242829ForecastOpportunity reportRisk report35 Reporting pursuant to Section 108 para. 3no. 2 of the North Rhine-Westphalian LocalGovernment Ordinance (GO NRW)

Management ReportCompany situationA. Company situation1. Business model1.1 Legal corporate structureIn the 2017 reporting year, Trianel GmbH’s shareholder structure changed as follows: Energie- und Wasserversorgung Mittleres Ruhrgebiet GmbH from Bochum transferred its participating interests to Stadtwerke Bochum Holding GmbH, Stadtwerke Herne AG and Stadtwerke Witten GmbH. That increases the number ofshareholders of Trianel GmbH from 56 to 58 shareholders. The NEW Group from Mönchengladbach transferred the participating interest in Trianel GmbH to NEW Niederrhein Energie- und Wasser GmbH andStadtwerke Wedel GmbH transferred its participating interest to Stadtwerke Wedel Beteiligungs GmbH.As of 31 December 2017, the company’s share capital remains unchanged at 20,152,575.The following diagram gives an overview of the 58 shareholders with participating interests in Trianel GmbHas of the balance sheet date.7

Trianel GmbHAnnual Report 2017Trianel GmbH shareholdersStadtwerke Bochum Holding GmbH14.07 %BBSW Energie GmbH, Steinheim0.50 %Stadtwerke Aachen AG (STAWAG)11.97 %ENNI Energie & Umwelt Niederrhein GmbH, Moers0.50 %RhönEnergie Fulda GmbH7.44 %Gemeindewerke Steinhagen GmbH0.50 %Stadtwerke Herne AG6.86 %GWS Stadtwerke Hameln GmbH0.50 %Stadtwerke Bonn GmbH5.81 %Osterholzer Stadtwerke GmbH & Co. KG0.50 %Stadtwerke Lübeck Holding GmbH5.12 %Schleswiger Stadtwerke GmbH0.50 %SWU Energie GmbH, Ulm4.78 %Stadtwerke Bad Salzuflen GmbH0.50 %Stadtwerke Witten GmbH3.75 %Stadtwerke Dachau0.50 %Stadtwerke Energie Jena-Pößneck GmbH2.99 %Stadtwerke Elmshorn0.50 %NEW Niederrhein Energie-und Wasser GmbH,Mönchengladbach2.87 %Stadtwerke Gronau GmbH0.50 %N.V. HVC, Netherlands2.48 %Stadtwerke Mosbach GmbH0.50 %enwor – energie und wasser vor ort GmbH,Herzogenrath2.21 %Stadtwerke Rüsselsheim GmbH0.50 %Salzburg AG für Energie, Verkehr undTelekommunikation1.76 %Stadtwerke Sindelfingen GmbH0.50 %Allgäuer Überlandwerk GmbH, Kempten (Allgäu)1.74 %Stadtwerke Tuttlingen GmbH0.50 %Stadtwerke Halle GmbH1.57 %Stadtwerke Wedel Beteiligungs GmbH0.50 %SWT Stadtwerke Trier Versorgungs-GmbH1.49 %T.W.O. Technische Werke Osning GmbH0.50 %1.24 %Stadtwerke Bad Pyrmont Beteiligungs undBäder GmbH0.37 %nvb Nordhorner Versorgungsbetriebe GmbH1.19 %Stadtwerke Uelzen GmbH0.37 %Trianel Suisse AG, Switzerland1.18 %Stadtwerke Detmold GmbH0.36 %Stadtwerke Hamm GmbH1.12 %Stadtwerke Unna GmbH0.33 %Stadtwerke Solingen GmbH0.99 %Stadtwerke EVB Huntetal GmbH0.30 %Stadtwerke Lindau (B) GmbH & Co. KG0.97 %Regio Energie Solothurn, Switzerland0.30 %GSW Gemeinschaftsstadtwerke GmbHKamen-Bönen-Bergkamen0.83 %Stadtwerke Soest GmbH0.29 %Stadtwerke Aalen GmbH0.74 %Stadtwerke Schwäbisch Hall GmbH0.26 %Stadtwerke Borken/Westf. GmbH0.74 %Stadtwerke Georgsmarienhütte GmbH0.25 %Stadtwerke Lünen GmbH0.66 %Stadtwerke Herford GmbH0.25 %Energie- und Wasserversorgung Rheine GmbH0.57 %Stadtwerke Lengerich GmbH0.25 %Hertener Energiehandelsgesellschaft mbH0.54 %Stadtwerke Verden GmbH0.25 %Stadtwerke Fröndenberg GmbH0.53 %Teutoburger Energie Netzwerk e.G., Hagen a.T.W. 0.25 %Stadtwerke Heidelberg GmbHTaking into account the annual net income of 1,504 thousand for the 2017 financial year, Trianel GmbHhas equity of 85,442 thousand on the balance sheet date.On the reporting date of 31 December 2017, Trianel GmbH had direct shares in 15 subsidiaries and participating interests.8

Management ReportCompany situationParticipating interests of Trianel GmbHTrianel Gaskraftwerk Hamm GmbH & Co. KG6.12 %Trianel Gaskraftwerk Hamm Verwaltungs GmbH100 %Trianel Kohlekraftwerk Lünen GmbH & Co. KG6.34 %Trianel Kohlekraftwerk Lünen Verwaltungs GmbH100 %Trianel Gasspeicher Epe GmbH & Co. KG7.60 %Trianel Gasspeicher Epe Verwaltungs GmbH100 %Trianel Windkraftwerk Borkum GmbH & Co. KG2.69 %Trianel Windkraftwerk Borkum Verwaltungs GmbH100 %Trianel Kraftwerk Krefeld Verwaltungs GmbH *100 %Trianel Windkraftwerk Borkum II GmbH & Co. KG 2.00 %Trianel Onshore Windkraftwerke GmbH & Co. KG 5.35 %Trianel Finanzdienste GmbH100 %Trianel Erneuerbare Energien GmbH & Co. KG5.36 %Trianel Service GmbH100 %GESY Green Energy Systems GmbH24.90 %Trianel Energie B.V.100 %* according to financial attributionStatus: 31/12/2017As shown in the overview, Trianel GmbH holds shares in the following companies:Gaskraftwerk Hamm GmbH & Co. KG, domiciled in Aachen, has operated the first municipal gas and steamturbine power plant with a capacity of 800 MW since 2008 in Hamm-Uentrop (North Rhine-Westphalia). Trianel Gasspeicher Epe GmbH & Co. KG, domiciled in Aachen, manages a natural gas storage facility locatedin Epe in the district of Borken (North Rhine-Westphalia) since 2009/2010. Trianel Kohlekraftwerk LünenGmbH & Co. KG, domiciled in Lünen, has been operating a modern, highly efficient 750 megawatt hard coalfired power station in Lünen (North Rhine-Westphalia) since 2013. Trianel Windkraftwerk BorkumGmbH & Co. KG, with a registered office in Aachen, is the operator of the first expansion stage of 200 MWof the total 400 MW project Trianel offshore wind farm Borkum (formerly Borkum-West II) roughly 40 kilometres off the coast of the North Sea island of Borkum (Lower Saxony). Trianel Windkraftwerk BorkumGmbH & Co. KG began commercial regular operation in 2015. Trianel Windkraftwerk Borkum II GmbH & Co.KG, founded as a standard limited partnership (Einheits-KG), already began planning the second expansionstage of a further 200 MW in 2016. In the 2017 reporting year, Trianel GmbH joined Trianel WindkraftwerkBorkum II GmbH & Co. KG as a shareholder.As general partners, the personally liable companies Trianel Gaskraftwerk Hamm Verwaltungs GmbH, TrianelGasspeicher Epe Verwaltungs GmbH, Trianel Kohlekraftwerk Lünen Verwaltungs GmbH, as well as TrianelWindkraftwerk Borkum Verwaltungs GmbH assume the management for the above limited partnerships asthe general partners. Trianel Kraftwerk Krefeld Verwaltungs GmbH manages Trianel Kraftwerk KrefeldGmbH & Co. KG for the development of a gas and steam turbine power plant at the CHEMPARK site inKrefeld-Uerdingen (North Rhine-Westphalia); it is wholly commercially attributed to Trianel GmbH. All companies are domiciled in Aachen.Trianel Onshore Windkraftwerke GmbH & Co. KG, domiciled in Aachen and founded in 2013 as a standardlimited partnership (Einheits-KG), plans, builds and operates systems for generating electricity from renewable sources. It is also responsible for participating interests in companies domiciled in Germany that operatesystems for generating electricity from renewable sources.9

Trianel GmbHAnnual Report 2017Trianel Erneuerbare Energien GmbH & Co. KG was founded in the 2015 calendar year, also as a standard limited partnership (Einheits-KG) domiciled in Aachen, with the same business purpose as Trianel Onshore Windkraftwerke GmbH & Co. KG.Trianel Finanzdienste GmbH, domiciled in Aachen, is a wholly owned subsidiary of Trianel GmbH. The activities of the Trianel Group which require authorisation for the provision of financial services pursuant to Section 32, para. 1 of the German Banking Act (Kreditwesengesetz, KWG) are pooled in this company.The Dutch sales and distribution company Trianel Energie B.V. domiciled in Maastricht was forced to apply forinsolvency at the end of 2012 due to customer default. The insolvency proceedings are still ongoing.GESY Green Energy Systems GmbH is domiciled in Berlin, and was working together in direct marketing ofrenewable energy sources with Trianel in the 2017 reporting year. As part of the restructuring of direct marketing, the cooperation with Green Energy Systems GmbH was terminated by Trianel on 31 December 2017.The sale of the participating interests is currently subject to approval by the shareholders of Trianel.The strategic orientation of Trianel Service GmbH domiciled in Aachen is currently under review, as a resultof which business operations have been suspended.1.2 Business fieldsTrianel GmbH’s business activities aim to enhance the competitiveness and therefore independence of municipal utilities. As the largest European cooperation of municipal utilities, Trianel GmbH utilises the potential ofliberalised energy markets by pooling shared interests from the municipal environment. For example, thisopens up business fields which would not be economically viable for individual municipal utilities.Trianel GmbH operates in multiple sectors of the energy industry throughout the entire value chain. Its corebusiness is trading, procurement and supply of energy. The company purchases energy on wholesale marketsfor redistributors and municipal utilities on wholesale markets, providing easy market access for its customers.In this way, Trianel helps municipal utilities supply their end customers. In addition, Trianel optimises energyindustry management of conventional and renewable energy generation systems for municipal utilities andindustrial customers. For existing renewable energy projects and major electricity generation and gas storagesystems, Trianel takes on the energy business and commercial management and optimisation of thesystems.In addition, Trianel is active in project development (offshore wind, onshore wind, photovoltaic systems). Together with municipal utilities, it develops new projects or analyses and extends existing systems.As a third element, Trianel designs and supports the business activities of municipal utilities in end-customerfocused areas, such as smart metering, energy efficiency and expansion of electromobility.The further expansion of renewable energies, the increasing decentralisation and decarbonisation of the energy industry and the innovation potential due to digitalisation and automation are currently dominating allbusiness fields of Trianel.All activities of Trianel GmbH are developed in close coordination with the business aims of the shareholdercompanies and tailored for their needs and circumstances.10

Management ReportCompany situation1.3 Important products and services, business processes and projectsTrianel GmbH operates in all trading markets for electricity and gas products, both as a trading partner forbilateral transactions (OTC market) and as a member of the most important energy exchanges. Market accessfor electricity includes the German, Dutch, Belgian, Swiss and French market areas. In the gas sector, Trianelcovers the German market areas, for H-gas and L-gas, as well as the liquid TTF market. Diverse sales productsin the delivery sector are based on activities on the market. That allows Trianel customers to purchase tradeproducts directly.Energy business products and services:In 2017, the portfolio management on the procurement and generation side again formed a main pillar ofthe activities in the energy business sector. It consists of electricity and gas procurement, marketing and securing electricity from own generation plants and management of storage facilities for our customers.Trianel is developing a central interface for pooling trade and sales information for municipal utilities and industrial customers, the integrated, web-based monitoring and control platform Trianel DESK. In 2017, optimising the internal processes for developing the platform was the priority for the development of TrianelDESK, in addition to optimising the internal processes. To this end, the energy trading IT division was established, which creates the technical and organisational preconditions to develop digital processing of portfoliomanagement and energy trading. Digitalisation via Trianel DESK gives portfolio management and energy trading efficiency boosts and process excellence, creating more scope for a more individual customer care andmarket consulting. From forecasts to pricing, portfolio structuring, trading standard and non-standard products to balancing group accounting, customers are to be provided with all energy business procurement andsales functions for electricity and gas in a consistent, interactive, web-based customer interface on the TrianelDESK. Trianel DESK aims to optimise processes in interaction with customers and within the Trianelorganisation.Besides developing the applications of the Trianel DESK, customer and process integration of the former location of Leipzig into the system infrastructure in Aachen was the priority in procurement management. Inthis context, comprehensive handovers, process optimisations and strategy meetings were held in cooperationwith our customers.With a view to the targeted extension to the industrial customer segment, we must emphasise that a majorindustrial customer was attracted in 2017, beginning on 1 January 2018.In the ranking of the generation portfolio managers of shareholders in the Trianel coal-fired power station inLünen, Trianel Finanzdienste GmbH (TFD) once again topped the charts when comparing all companies involved in power station optimisation, generating a seven-figure revenue surplus for its customers. In additionto this, TFD expanded its role as a comprehensive service provider for optimised marketing of generationplants of all types.Via marketing activities in the spot, intraday and balancing energy markets, an additional 3.2 million wasearned in the management of Lünen coal-fired power station (TKL). In addition to this, 2.7 million was savedas part of shortfall management compared with the failure reserve contract. The shareholders in TKL benefitfrom both. Trianel also benefits as part of the contractually defined variable remuneration of these resultsachieved.11

Trianel GmbHAnnual Report 2017For Gaskraftwerk Hamm, the “warm reserve” agreed with the TGH shareholders generated a net income of 5.6 million. This value is approx. 0.9 million above the originally planned value. In addition, a block of thepower station was marketed to a market partner as part of an option transaction for 2018. Compared withleasing in 2017, the price for this has almost doubled. Trianel holds a one-third share in these earnings forthe above-mentioned period.In direct marketing, Trianel repositioned itself in 2017 and reviewed its portfolio of roughly 5,200 MW (as of1 January 2017). Trianel’s has many years of experience in direct marketing and continues to focus on thisbusiness field as long as it is economically attractive. Given the increasing margin pressure in direct marketing, Trianel consolidated and restructured its portfolio during 2017. To this end, the portfolio was reducedsignificantly to 3,200 MW as of 1 January 2018. Most of the direct marketing portfolio consist of windenergy.End-customer focused services and products:Trianel supports municipal utility in developing from mere suppliers to modern energy service providers andoffers a range of services to create synergies here too. In particular, this will focus on the challenges that municipal utilities must overcome due to the changing requirements of end customers. Trianel enables municipalutilities to look into the latest trends like digitalisation, sustainable mobility, energy efficiency and energy autonomy, and implement specific projects together. The goal is to support municipal utilities in a wide rangeof transformation processes.To meet the needs of municipal utilities in digitalisation, Trianel founded the first exclusively municipal DigitalLab in 2017 with 38 municipal utilities. The aim of the idea and innovation workshop for municipal utilitiesis to implement digital projects in municipal utilities in short periods and learn from experiences together. TheTrianel Digital Lab aims to analyse the opportunities of digitalisation and apply them specifically. This allowssynergies to be developed in applying digital solutions, and possibly also new business models to be developed jointly.In addition to founding the Trianel Digital Lab, another focus for the Municipal Utility Sales Solutions businessunit (now Digital Energy Solutions) was selling the sales platform for PV Contracting Models Trianel PED. Asearly as the end of 2016, initial talks were held on the sale of the Trianel PED platform, to focus activities inthe Municipal Utility Sales Solutions business unit to a greater extent. As business on the Trianel PED platformcontinued to develop well, a potential buyer was found in Vattenfall Smarter Living GmbH in early 2017. Theplatform was handed over to Vattenfall on 30 June 2017. At the same time, the ten employees required tooperate the platform also transferred to Vattenfall. The customers on the platform continue to run the business, with a few exceptions. Trianel supports Vattenfall with sales and support for the municipal utilities aspart of a service agreement.2017 was dominated by a reorientation in the energy efficiency sector, as the current legal general conditionsdeny municipal utilities the opportunity to remedy inefficiencies identified in audits of industrial customers.For reasons of neutrality, these measures must be implemented by third parties. For this reason, Trianel hasconcentrated significantly on consulting. A change in the regulatory framework conditions is expected for thenear future, which could facilitate more comprehensive activities in this area.Introduction of Smart Metering is a key precondition for digitalising energy industry processes. Since 2012,Trianel has been building the required expertise for the pending rollout and the technical preconditions forgateway administration.12

Management ReportCompany situationIn 2017, the first 14 municipal utilities chose Trianel as a service provider in gateway administration. This isless than originally expected, as the companies involved are slow to establish the technical general conditionsfor the start of the smart meter rollout and award decisions are being delayed. Other contract conclusionswith municipal utility customers and the start of the rollout are now expected in the first half of 2018.Trianel Academy has further consolidated its position in the market for training and consulting. With the newe-learning product, a second mainstay was developed, which has now already been implemented for the firstcustomers, and offers major potential for scaling.Project development and projects:The project development business of Trianel GmbH now focuses almost entirely on renewable energy projects.For example, the second expansion stage of the Borkum offshore wind farm (TWB II) was launched successfully in 2015. Together with 17 municipal utilities from the Trianel Group, as well as EWE Oldenburg andewz from Switzerland, Trianel GmbH will develop the next 200 MW. Trianel GmbH’soffshore segment is responsible for construction processing with EWE OSS. TrianelGmbH is also preparing the commercial and superordinate operational managementfor TWB II from 2020 on. 2017 was dominated by the tenders and award of the maw i l l b e d e v e l o p e d b y Tr i a n e l G m b Hjor subsections and conclusion of the equity and borrowed capital process. The decitogether with 17 municipal utilitiession to build for the offshore wind farm was passed by the shareholders on 7 Aprilf r o m t h e Tr i a n e l G r o u p , a s w e l l a s2017. The financial close was approved on 28 April 2017.EWE Oldenburg and ewz. 200 MWThe first asset company, Trianel Onshore Windkraftwerke GmbH & Co. KG (TOW), concluded its investmentactivities as planned, and now operates eight wind farms, with a total capacity of roughly 100 MW after thelatest turbines were commissioned. As a result, TOW is now focusing on operating the wind farms.When success of TOW was foreseeable, 38 municipal shareholders founded the successor company TrianelErneuerbare Energien GmbH & Co. KG (TEE) in 2015. TEE focuses on both wind farms and solar parks. In 2017,it succeeded in expanding to 260 MW. Another 300 MW are being processed in roughly 20 projects.Retaining the existing options was the priority in the conventional large-scale project sectors at the Krefeldand Karlsruhe locations.1.4 Management and controlIn addition to Sven Becker as Management Spokesman, Dr Oliver Runte has been appointed as ManagingDirector of Trianel GmbH since early 2017. The Trianel Shareholders’ Committee and the twelve-strong Supervisory Board are among the other corporate bodies.13

Trianel GmbHAnnual Report 20172. Strategy and management of the company2.1 Corporate strategyCurrent orientationTrianel GmbH sees itself as an energy service provider that develops and provides services along the entirevalue chain for municipal utilities and industrial customers, which enable individual companies to overcomemarket entry barriers with economies of scale, specialisation advantages and by pooling expertise. TrianelGmbH is supported by municipal utilities.After an extended phase of high growth, Trianel has been pursuing a strategy of consolidation and processoptimisation since 2016. Project development and market integration of renewable energy sources, advancedenergy services standardised in platforms and amalgamation of high-resolution data on generation, consumption and other influencing factors are currently the fields for the company’s continued growth. In this way,Trianel is taking the new opportunities afforded by the significant changes in the energy industry due to digitisation, and the expansion of decentralised, renewable generation into consideration.Trianel views itself as an independent company that supports the interests of municipal utilities, which arealso independent. The business model borne by the shareholders is aimed at common success. The advantages developed by Trianel GmbH are to be passed on to the shareholders as customers.Thanks to our energy business trend scouting, Trianel and its shareholders are in a position to identify business opportunities resulting from the changing general conditions at an early stage, to develop new productsand services given the right potential.Products and servicesFor value-driven consolidation and continuous growth, we are adapting our range of products and our services to the latest general conditions. The adaptations are made on the basis of an in-house market appraisaland energy industry expert reports. The diversified product portfolio stabilises Trianel GmbH’s business development and facilitates comprehensive support of shareholders and customers.CustomersIndependent municipal utilities and regional suppliers of various sizes are Trianel’s typical customers. Trianeloffers customers tailored and efficient solutions for their respective individual requirements. High quality services can be implemented at reasonable prices thanks to the economies of scale and specialisationadvantages.EmployeesIn a highly-competitive environment, Trianel GmbH develops advantages over its competitors

Stadtwerke Bonn GmbH 5.81 % Osterholzer Stadtwerke GmbH & Co. KG 05. 0 % Stadtwerke Lübeck Holding GmbH 51. 2 % Schleswiger Stadtwerke GmbH 05. 0 % SWU Energie GmbH, Ulm 47. 8 % Stadtwerke Bad Salzuflen GmbH 05. 0 % Stadtwerke Witten GmbH 37. 5 % Stadtwerke Dachau 05. 0 % Stadtwerke Energie Jena-Pößneck GmbH 2.99 % Stadtwerke