ESB Annual Report 2012 - (Page 9)

BUSINESS OVERVIEW OPERATING & FINANCIAL REVIEW CORPORATE SOCIAL RESPONSIBILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS In year €’m Cumulative €’m ESB Annual Report 2012 9 01 BUSINESS OVERVIEW 01 GOVERNANCE AND THE BOARD Your Board is committed to the highest standards of corporate governance. We run our business in a manner that is responsible and consistent with our belief in transparency and accountability. For us, good governance is necessary to form a foundation for the sustainable growth our business. Lochlann Quinn, Chairman During the year Garry Keegan and Seán Conlan completed five years service as Board members. I want to thank them for their very valuable contributions. Anne Butler joined the Board in 2012 and she is most welcome. OUTLOOK CHAIRMAN’S STATEMENT RESULTS I am pleased to announce a good set of financial results for 2012 in spite of a very challenging business environment. The Group recorded an operating profit of €415 million in 2012 (2011: €469 million). The results include an exceptional item (€161 million) which relates to costs associated with a voluntary severance scheme launched in 2012 as part of our Performance Improvement Programme. DIVIDEND The Board is recommending a final dividend of 3.96 cent per unit of stock or €78.4 million in aggregate bringing total dividends over the last decade to almost €1 billion. STRATEGY In 2012 ESB’s share of generation on an all-island basis was 48% and our share of the total supply business, again on an all-island basis was, 36%. Increasing interconnection to Britain and the arrival of large European utilities in our home market are transforming the competitive landscape. The Board and management have developed and are implementing a long-term strategy to prepare ESB for these challenges. A significant step is the start of construction of our 881 MW generating station at Carrington, near Manchester. A further crucial The outlook for 2013 remains challenging, but we believe that our corporate strategy will position us to face these uncertainties. OUR STAFF element is our Performance Improvement Programme which is aimed at taking €280 million of costs out of the business by 2015, right across the generation, networks and supply businesses. This focus on costs is essential if we are to continue to offer competitive products to our customers and protect the financial strength of ESB. SAFETY 2012 was sadly overshadowed by two staff fatalities in January 2013. Any fatality associated with our business, whether a staff member, contractor or member of the public is deeply regrettable. Safety is our top priority and will remain at the forefront of our core objectives. DIVIDEND PAYMENTS 2003 TO 2012 150 180 210 240 270 90 120 30 60 0 2003 2004 2005 2006 2007 2008 Year 2009 2010 2011 2012 I want to acknowledge the contribution of all ESB staff in 2012 and I want to especially thank them for their continued support in helping us to deliver our challenging targets. CONCLUSION In accordance with the provisions of the Electricity (Supply) Acts 1927 – 2004 the Board presents the Annual Report and Accounts for the year ended 31 December 2012. 04 03 02 Lochlann Quinn, Chairman Paid in year Cumulative since 2003 100 200 300 400 500 600 700 800 900 1000 0 05

Table of Contents for the Digital Edition of ESB Annual Report 2012

ESB Annual Report 2012
Contents
Business Overview
Chairman’s Statement
Chief Executive Review
Our Strategy and Business Model
Operating and Financial Review
Operating Environment
Finance Review
Business Unit Sections: ESB Generation and Wholesale Markets
ESB Networks
NIE
Electric Ireland
Corporate Social Responsibility
Introduction from Executive Director, People and Sustainability
Sustainability Charter
Energy Usage 2012
ESB Innovation
Equality and Diversity
Our People
Our Community
Corporate Governance
Chairman’s Corporate Governance Statement
The Board
Executive Team
Board Members’ Report
Risk Management Report
Statement of Board Members’ Responsibilities
Independant auditor’s report to the stockholders of Electricity Supply Board (ESB)
Statement of Accounting Policies
Financial statements
Prompt Payments Act

ESB Annual Report 2012

https://www.nxtbookmedia.com