VISION 2050 - Fluvius path to climate neutrality slide image

VISION 2050 - Fluvius path to climate neutrality

Executive Summary 0000 Strategic Importance to the Flemish Region Favourable Regulatory Environment for Energy (Revenue Cap) Efficient Operating Scheme Solid Cash Flow Visibility Fluvius covers 100 % of the municipalities of the Flemish Region Fluvius operates essential utility services for Flemish society: electricity & gas distribution, public lighting, sewerage, cable networks, district heating and the associated data management The energy DSOs have a legally based regional monopoly for electricity & gas distribution Tariff mechanism with a 4-year regulatory period based on a revenue cap model, including a fair profit margin as remuneration on invested capital Group structure with one single operating company (Fluvius System Operator) for 11 utility companies allows for efficient operations and benefits of scale Pooling of staff and all operational, financial and management activities at the operating company Predictable revenue streams across all activities Low Risk Profile Favourable Economic Dynamics CSR & ESG policy fluvius. • Low business risk - the DSOs and other intermunicipalities are not involved in competitive activities Intermunicipalities own 100% of their network infrastructure Flanders (Fitch: AA stable; Moody's: Aa3 stable) is Belgium's (Moody's: Aa3 stable) most populated region (6,7 million inhabitants - Jan 2021). Moody's rating of Flanders is based on a diversified, wealthy and innovative economy, solid institutions and governance strength and decisive response to pandemic which limits risks of LT scarring (7 Dec 2021) Fluvius has solid investment grade ratings: A3 (stable) at Moody's - A+ (negative) at Creditreform Fluvius is a key partner for the Flemish Climate & Energy Plan - Fluvius itself has developed its Vision 2050 pathway to Flemish climate neutrality Sustainable Development Goals (SDGs) are at the heart of Fluvius's impact-based CSR strategy June 2022. 3
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