Connectivity matrix and SWOT analysis

Connectivity matrix

The table below shows the relationship between the values we want to create, our strategic pillars, our strategic risks, the result areas on which we report in this annual report, and the KPIs.

Safe and reliable energy supply   Financial value
Strategic pillar(s)   Strategic pillar(s)
- Optimum infrastructure
- Connecting Europe
  - Optimum infrastructure
- Connecting Europe
Strategic risk   Strategic risk
I:C Availability of international gas flows.
I:D Accelerated phasing out of the Groningen gas field.
I:F Risk of disastrous failure of Gasunie assets.
O:B Complexity of IT.
  I:A Regulated revenues in the Netherlands and Germany are guaranteed, but are declining and remain under pressure.
I:B Changing market circumstances result in rates becoming less competitive and some of our assets no longer being necessary.
III:B Legislation limits Gasunie’s possibilities for growth in sustainable energy.
2017 result areas   2017 result areas
- Safety performance
- Transport security
- Transported Gas
- Quality conversion
- Investments in the gas infrastructure
- GTS Netwerk Development Plan
- Customer satisfaction
- TTF and GASPOOL
  Key figures, reported and normalised
Financial results, including:
- Revenues and costs
- Result after taxation
- Dividend
- Financial outlook
- Financing and credit ratings
- Tax payments
KPI   KPI
- Transport disruptions
- Potentially serious incidents
  - Net operating costs
- ROIC
2017 objective   2017 objective
- no transport disruptions
- as low as possible but certainly not more than 15 potentially serious incidents
  - maximum € 347 million
- at least 4.41%
2017 result   2017 result
1 transport disruption
10 potentially serious incidents
  € 345 million
3.17% (normalised: 4.4%)

CO2-neutral energy system by 2050   Sustainable relationship with local communities
Strategic pillar(s)   Strategic pillar(s)
- Optimum infrastructure
- Energy in transition
  - Optimum infrastructure
- Connecting Europe
- Energy in transition
Strategic risk   Strategic risk
II:A Due to lack of support from politicians or our stakeholders, our strategy is limited to the typical network operator role and conditions.
III:A The roll-out of our energy transition strategy takes place too slowly or stagnates.
  O:C Non-compliance with legislation, internal policy or code of conduct.
2017 result areas   2017 result areas
- Results of regulated network operations
- Gasunie New Energy results
- Business development results
- Vertogas
- Environmental results
  - Safety results
- Environmental results, carbn footprintreduction
- Socially responsible procurement
KPI   KPI
Reducing CO2 footprint   Pipeline damage incidents
2017 objective   2017 objective
Reduction of at least 10 kilotonnes of CO2 equivalents   No more than one pipeline damage incident
2017 result   2017 result
Reduction of 13.7 kilotonnes of CO2 equivalents   4 Pipeline damage incidents

Attractive and reliable employer   Cooperation and knowledge exchange in the chain
Strategic pillar(s)   Strategic pillar(s)
- Optimum infrastructure
- Connecting Europe
- Energy in transition
  - Optimum infrastructure
- Connecting Europe
- Energy in transition
Strategic risk   Strategic risk
O:A The necessary organisational conditions for achieving our strategy are not achieved.   I:E Resilience in the face of disasters in the chain that occur outside of Gasunie.
II:B Geopolitical risks.
2017 result areas   2017 result areas
- Safety policy
- Number of reportable incidents
- Sustainable HRM and employment conditions policy
- Sustainable employability
- Training and development
- Performance-related remuneration
- Health and well-being
- Code of conduct, reporting misconduct
  - Prisma, the European booking platform
- European collaborations by TSOs
- EUGAL pipeline project
- Energy transition projects are usually collaborations, e.g. SCW, Torrgas, North Sea Wind Power Hub and CCS in Rotterdam.
KPI    
- TRFI
- Sickness absence
   
2017 objective    
- TRFI: maximum 3.3
- Sickness absence: as low as possible, but at least below the national average
   
2017 result    
TRFI: 3.2
Sickness absence: 4.14% in the Netherlands and 4.36% in Germany
   

SWOT analysis

In this analysis, we consider our company’s opportunities and strengths, as well as its threats and weaknesses, including in comparison to similar European companies. An important principle we adhere to in this regard is that, in markets in which we have limited experience, we work closely together with partners. This applies to markets in a geographical sense, as well as to many projects aimed at accelerating the transition to a CO2-neutral energy supply.

Strengths

  • Gas infrastructure: strong in operational, commercial and network planning activities and in the management of new-build projects
  • Good brand awareness and reputation
  • Extensive experience with and knowledge of gas infrastructure
  • Highly automated processes
  • Cross-border activities with a wide range of mid-stream assets
  • Solid financial position

Weaknesses

  • Main activities primarily focused on the natural gas business
  • Access to a limited number of assets in growth market(s)
  • Limited experience with innovative projects in new communities
  • Strength and versatility of the organisation

Opportunities

  • Benefit from and encourage new sustainable energy markets by developing sustainable business
  • Develop our role as an energy infrastructure company during the transition to CO2-neutral energy supply
  • Strengthen our position as Dutch and cross-border gas infrastructure company by working together with leading gas transport companies
  • Contribute to security of supply by developing projects in the areas of LNG and the opening up of new supply routes

Threats

  • Role of natural gas not undisputed
  • Quickly changing business environment with an expected decline in gas transport
  • Geopolitical developments
  • Simultaneous contraction in existing business and growth in new sustainable activities to be developed