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
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