ewz (Deutschland) GmbH. Annual Report 2014.

ewz (Deutschland) GmbH. Annual Report 2014.

ewz (Deutschland) GmbH. Annual Report 2014. ewz (Deutschland) GmbH is a wholly owned subsidiary of ewz (Zurich Municipal Electric Utility).

Goals of the ewz (Deutschland) GmbH. Power from renewable energy sources outside Switzerland. Dear Reader The growing public awareness of the risks of climate change and the reassessment of the benefit and risks of nuclear energy in society are giving a further boost to the demand for renewable energies and energy efficiency. The energy supply of the future must be based on renewable energies. ewz has steadfastly followed the path to the renewable energy future for quite some time. In accordance with the goal of the 2000-watt society and the results of the Swiss referendum of 2008 which endorsed it, ewz, as a division of the municipality of Zurich, aims to achieve a sustainable energy supply and will therefore focus in future on generating 100 percent of its power from renewable energy sources. The report «Our future is renewable! The power of tomorrow 2012 2050» on the future of energy up to the year 2050 highlights which technologies can be used to achieve this goal in the long term and how fast it can be done. ewz is pursuing a scenario of expanding the new renewable energies vigorously, using hydroelectricity sustainably and further developing new, promising technologies. At the same time, the existing investments and subscription rights in nuclear power plants will expire. As shown in the graphic, production using new renewable energies (wind, biomass, solar thermal energy and photovoltaics) will increase six-fold in the coming years to 1200 GWh. Most of that expansion will be accounted for by wind and solar energy projects. Given the limited possibilities in Switzerland, the projects will mainly be realised abroad. In this context, ewz (Deutschland) GmbH with its investments in foreign production facilities will play an important role. The long-term strategic goal of the company is to supply ewz customers with power from various renewable energy sources from outside Switzerland. In the medium term, this goal will be achieved by securing geographically well situated production sites as well as applying our experience in the area of new renewable energies and profound country-specific knowledge. The electricity produced at these power plants will be distributed through the local schemes to support renewable energy. Where required, and where it makes economic sense, ewz may at any time purchase the ecological added value and the physical electricity itself. ewz (Deutschland) GmbH was founded in 2008 when ewz acquired its first wind farm outside Switzerland, the Crussow wind farm in. Since then, the company has invested in seven more wind farms in, Norway and France and in a solar thermal power plant in Spain. In the coming years, ewz will continue to use its subsidiary to acquire wind projects in its focus countries, France, Norway, Sweden and Poland. ewz will also ob serve the situation in the solar energy market in order to invest in suitable projects outside Switzerland in the medium term. ewz will further expand its pioneering role in ecology and energy efficiency and is prepared to make its contribution to a renewable energy future. It makes sense to build and operate production facilities for renewable energies at sites offering the optimum conditions for generating power from water, wind and 7000 6000 5000 4000 3000 2000 1000 Production trends (in GWh). 2014 2020 2030 2040 2050 sun. However, this requires an environment that guarantees the security of their legal position and of investments. There must be clear rules as to where such capacity additions can be accounted for. In addition, to secure the transfer of electricity from abroad, it is important for Switzerland to be granted non-discriminatory access to the Euro pean grid. For this reason, ewz advocates a bilateral electricity agreement with the EU which defines Switzerland s role in the European energy strategy. In this annual report we aim to give you an insight into ewz (Deutschland) GmbH s activities and engagements in the 2014 financial year. A special highlight was the opening of the Epinette wind farm in France, where ewz itself played the role of developer for the first time. Marcel Frei, CEO ewz Solar thermal Photovoltaics Wind Biomass Nuclear energy Hydroelectric power

6 ewz (Deutschland) GmbH. Annual Report 2014. Foreword by the Executive Board. 8 Activities of ewz (Deutschland) GmbH. 12 Chronological overview. 12 Portfolio. 14 Finances 2014. 16 Scope and principles of consolidation. 18 Offshore wind farm Butendiek in the North Sea under construction.

8 9 Foreword by the Executive Board. Summary of 2014. 2014 was in many ways an eventful year. The ewz focus countries of and France saw further strong investments in wind energy. Reasons for the development were a variety of political measures, including new provisions in the Renewable Energies Act (Erneuerbare-Energien-Gesetz; EEG) in and the introduction of a trial phase for a simplified approval procedure and the end of the legal dispute about the decree on feed-in tariffs in France. The year was also characterised by difficult wind conditions, the turnover volumes were put under pressure. The construction of the offshore wind farm Butendiek in the North Sea and the putting into operation of the wind farm Epinette in France, owned by ewz, were successfully implemented. 2014 has to be considered below average for wind energy production in overall. Production at our five wind farms after the first quarter, an important one in terms of wind, was already significantly below expectations and was unable to compensate for the deficit incurred over the rest of the year. An exception is the Schermen wind farm, where the planned figures were almost achieved. Part of the production shortfall was made up for by improved direct marketing terms in line with the EEG market premium model. The Dörmte wind farm fell into the EEG s «Other direct marketing» category until the end of April, and both energy and guarantees of origin were sold and exported directly to ewz in an energy transfer project. Following the successful conclusion of this project, Dörmte was transferred back to direct marketing with the EEG tariff as provided for by the market premium model. In terms of availability, the increasing operating time is taking effect at the Crussow wind farm. Several minor defects and the replacement of two gearboxes meant that availability fell off to 95.7 percent. The availability of other wind farms was as planned or even significantly better, with up to 99.0 percent. The six turbines at the Epinette wind farm in France were put into operation in August, two months ahead of schedule. This was accomplished by good planning and execution on the part of the project managers and favourable weather conditions. Turbines from Enercon are being used here for the first time on an ewz wind farm. Neighbours as well as representatives of the regional political sector, the project developer, suppliers and the operator had the opportunity to see the good site conditions for themselves at the wind farm s official opening in September. The Høg-Jæren wind farm in Norway achieved new production records in the months of January and February, and performed at around 18 percent above plan over the year as a whole. Particularly in view of very good wind conditions, the turbines availability was high at 99.2 percent. With its stake in the Butendiek offshore wind farm in the North Sea, ewz has taken a further step towards diversifying its production portfolio. The construction of the 80-turbine wind farm started on schedule when the foundations were laid in the spring of 2014, successfully using a new concept for reducing sound emissions. Installation of the turbines commenced in the autumn and the first turbines started commercial production at the beginning of 2015. A new tariff system was passed in Spain in July 2014. The amendments to the legislation will influence the original plans for the PE2 solar thermal power plant. The cooperative Elektra Baselland (EBL) as the main shareholder has taken on the servicing and maintenance of the power plant with its Spanish subsidiary in order to realise additional cost reduc tion potential in ongoing operation. For 2015, ewz (Deutschland) GmbH aims to extend its production portfolio, concentrating on the focus countries of, France, Norway, Sweden and Poland. The first full year of production at the Epinette wind farm is eagerly awaited and will provide new insights into the operation of wind power plants in France. The Butendiek offshore wind farm is expected to be completed in August 2015 and will be a further milestone on the road to the expansion of new renewable energies at ewz (Deutschland) GmbH. Marcel Frei Bruno Hürlimann Nadeschda Hoidn Wiede The next double page: Wind farm Epinette in operation since autumn 2014.

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12 13 Activities of ewz (Deutschland) GmbH. Overview. Key figures (as per December 2014). Equity interests 9 (share of ewz) 84 MW 194 GWh Equity interests of ewz (Deutschland) GmbH in Europe. Under construction In operation Høg-Jæren; Wind onshore NO Butendiek; Wind offshore DE Dörmte; Wind onshore DE Schermen; Wind onshore DE Epinette; Wind onshore FR Crussow; Wind onshore DE Vogelsberg; Wind onshore DE Kleinbrembach; Wind onshore DE Puerto Errado 2; solar thermal ES Chronological overview. A summary. 2008. Founding of ewz (Deutschland) GmbH. The company assumes the holding function for all equity interests controlled by ewz in and in other European countries and serves as holding company for the acquisition of foreign equity interests. With the acquisition of three wind turbines in the Crussow wind farm, ewz Windpark Crussow GmbH is established. 2010. The existing wind farm is expanded by a further 27 wind turbines, which in turn leads to the establishment of the following companies: ewz Windpark Vogelsberg GmbH, ewz Windpark Schermen GmbH, ewz Windpark Kleinbrembach GmbH and ewz Windpark Dörmte GmbH. A 20 percent share of the Norwegian wind farm company Jæren Energi AS is acquired. 2011/2012. In July 2011, 26 wind turbines start producing clean energy at the wind farm Høg-Jæren, six further turbines are added in 2012. In 2011, ewz (Deutschland) GmbH acquires a 10 percent stake in the solar thermal power plant Puerto Errado 2. It is commissioned in October 2012 following a lengthy test phase. 2013. ewz (Deutschland) GmbH acquires 100 percent of a construction-ready wind farm project from French project company SEPE L Epinette S.A.R.L. In December, ewz () GmbH acquires a 49 percent stake in wpd Butendiek Beteiligungs GmbH, which in turn holds a 10 percent stake in the offshore wind farm Butendiek in the German North Sea. 2014. After a construction period of only a year, the six turbines at the wind farm Epinette in the Nord Pas de Calais region of northern France, 30 km from the English Channel, are commissioned. The area enjoys especially good wind conditions. The wind farm Epinette marks ewz s entry into the French wind market, which harbours huge potential for expansion in wind energy.

14 15 Portfolio. Projects. Wind farm Crussow, Brandenburg,. Høg-Jæren wind farm, Stavanger, Norway. The wind farm is located 90 km to the north east of Berlin, close to Angermünde in the Federal State of Brandenburg. The immediate surroundings consist of agricultural land with arable farming and meadows. Wind farm Vogelsberg, Thuringia,. 6 MW Wind turbines 3 Vestas V-80, 2 MW Commissioning 2002 11 GWh Since mid-2011, 26 wind turbines have been in operation at the Høg-Jæren wind farm; six turbines were added at the end of 2012. The site to the south of the port of Stavanger is one of the most productive inland sites for wind energy. The Høg-Jæren wind farm received the Norwegian award of «Wind-getter of the year» in 2013 and 2014. 73.6 MW Wind turbines 32 Siemens SWT-2.3-93, 2.3 MW Share of ewz 20 % Commissioning 2011 (26) and 2012 (6) 222 GWh The wind farm Vogelsberg is located in the district of Sömmerda, Thuringia, 75 km to the south west of Leipzig. The wind farm is surrounded by extensive corn fields and is situated on a slight hill. Only a high-voltage power line and the communal boundary separate the Vogelsberg and Kleinbrembach wind farms. 6 MW Wind turbines 3 Vestas V-90, 2 MW Commissioning 2009 14 GWh Wind farm Epinette, Nord Pas de Calais, France. The wind farm Epinette is the first to be developed and owned by ewz. The site is close to the coast and benefits from especially good wind conditions. ewz (Deutschland) GmbH will gain initial experience with direct drive technology here. 12 MW Wind turbines 6 Enercon E82, 2 MW Commissioning 2014 35 GWh Wind farm Kleinbrembach, Thuringia,. Offshore wind farm Butendiek, North Sea,. The wind farm Kleinbrembach is located in the district of Sömmerda, Thuringia, 75 km to the south west of Leipzig. The wind farm is located on a hill in the middle of arable farmland and cannot be seen from the village. Wind farm Schermen, Saxony-Anhalt,. The Schermen wind farm is located in the district of Jerichower Land, Saxony-Anhalt, 15 km to the north east of Magdeburg. The wind farm is surrounded by fields and a small area of woodland. The area is mostly flat and slopes down slightly to the south. There is a height differential of up to 20 m between the single wind turbines. Wind farm Dörmte, Lower Saxony,. The wind farm Dörmte is located in the district of Uelzen, Lower Saxony, 70 km to the south east of Hamburg. The wind farm is surrounded by extensive arable land. 10 MW Wind turbines 5 Vestas V-90, 2 MW Commissioning 2006 23 GWh 16 MW Wind turbines 8 Vestas V-90, 2 MW Commissioning 2007 (6) and 2009 (2) 31 GWh Wind turbines 16.5 MW 11 REpower MD-77, 1.5 MW Commissioning 2006 31 GWh Puerto Errado 2, Calasparra, Spain. The offshore wind farm Butendiek in the German North Sea, around 32 km from the island of Sylt and around 53 km from the mainland, has been under construction since March 2014 and is scheduled for commissioning in 2015. wpd AG, a leading European developer and operator of offshore and onshore wind farms, developed the project. wpd is also responsible for construction and operation. The thermal solar power plant Puerto Errado 2, built under Swiss management, is located in the sun-drenched Spanish region of Murcia. It is the world s largest solar thermal power plant based on Fresnel technology with direct steam generation. Alongside two conventional power plant blocks, the facility comprises a solar field of around 302 000 m² of reflecting surface. 288 MW Wind 80 Siemens SWT-3.6-120, turbines 3.6 MW Share of ewz 4.9 % Commissioning 2015 1260 GWh Technology 30 MW Linear Fresnel collectors Share of ewz 10 % Commissioning 2012 43 GWh

16 17 Finances 2014. Income statement and balance sheet. 2014 2013 Consolidated income statement. In thousand EUR (TEUR) In thousand EUR (TEUR) Revenue 10 091 9 312 Other revenues 55 43 Operating expenses 3 533 3 379 EBITDA 6 613 5 976 Depreciation/amortization 11 866 11 869 Operating profit (EBIT) 5 253 5 893 Interest earned 1 035 892 Interest paid 2 268 2 561 Earnings before taxes 6 486 7 562 Taxes 72 2 Earnings after tax 6 558 7 564 2014 2013 Consolidated balance sheet. In thousand EUR (TEUR) In thousand EUR (TEUR) Non-current assets 113 702 111 240 Current assets 44 494 15 002 Accruals 546 657 Total assets 158 742 126 899 Subscribed capital 25 25 Additional paid-in capital 84 913 69 914 Loss carried forward 17 305 9 741 Loss for the year 6 558 7 564 Provisions 1 126 650 Liabilities 96 400 73 462 Deferrals 141 153 Total liabilities 158 742 126 899 Wind farm Høg-Jæren: «Wind Warrior» 2013 and 2014.

18 19 Scope and principles of consolidation. The ewz Deutschland Group. The consolidated annual financial state ments of the ewz Deutschland Group includes financial statements of ewz (Deutschland) GmbH and its subsidiaries. Subsidiaries are companies which are controlled directly by ewz (Deutschland) GmbH and wholly owned by it. Equity interests in affiliated companies (share of ewz < 50 percent) are included in consolidated accounts under the equity method. All Group-internal relations are eliminated. The consolidated financial statements are not subject to an audit requirement. ewz ewz (Deutschland) GmbH ewz Windpark Crussow GmbH Impressum. Editor ewz ewz Windpark Vogelsberg GmbH Design/Production Cover Atelier Leuthold, Zurich Wind farm Epinette, Nord Pas de Calais. ewz Windpark Schermen GmbH ewz Windpark Kleinbrembach GmbH ewz Windpark Dörmte GmbH Edition 50 Print Issue May 2015 Climate neutral with eco-electricity. Printed on 100 % recycled paper out of responsibility for our environment. Duplication permitted with indication of source. 49% SEPE L Epinette S.A.R.L. France wpd Butendiek Beteiligungs GmbH¹ ) Publisher ewz (Deutschland) GmbH Lohnerhofstrasse 2 D-78467 Konstanz info@ewz-energie.de 20% 10% Jæren Energi AS Norway Tubo Sol Puerto Errado 2 S.L. Spain Units of measurement. GWh = Gigawatt hour (1 billion watt hours) MW = Megawatt (1 million watts) ¹ ) ewz (Deutschland) GmbH holds a 49-percent share of the wpd Butendiek Beteiligungs GmbH, which in turn holds a 10-percent share of the Offshore wind farm Butendiek. Wind farm Epinette, Nord Pas de Calais.