1. Bas Wehman NL Session 5 – Block 2 Barcelona 12-15 May 2003 1 Asset Management in practice at Essent Netwerk Zuid Bas Wehman Barcelona 14 May 2003

2. Bas Wehman NL Session 5 – Block 2 Barcelona 12-15 May 2003 2 Agenda Introduction Management summary Latest developments Answers to questions in special report

3. Bas Wehman NL Session 5 – Block 2 Barcelona 12-15 May 2003 3 Essent Netwerk Zuid Part of the Essent holding Responsible for management of infrastructure Key figures –Turnover 2002€ 700 mln –Customers Electricity1.400.000 Gas 900.000 Heat 35.000

4. Bas Wehman NL Session 5 – Block 2 Barcelona 12-15 May 2003 4 ENZ ENN

5. Bas Wehman NL Session 5 – Block 2 Barcelona 12-15 May 2003 5 Management summary : Starting points Business sense –Business values –KPI's Mastery of skills –Technical knowledge –Project management Shared vision within organisation –Clear goals –No sub-optimalisation

6. Bas Wehman NL Session 5 – Block 2 Barcelona 12-15 May 2003 6 Management summary : Organisation 2 basic models : –Separation of roles –Process-orientation Ideal organisation combines benefits Rules of reorganisation : –One job at a time –Focus on processes –Motivate personnel Gradual implementation, processes first

7. Bas Wehman NL Session 5 – Block 2 Barcelona 12-15 May 2003 7 Management summary : Roles and responsibilities Asset Owner Asset Manager Service Provider Role Responsibilitiees Provides funding for new infrastructure Provider of all technical services/support Manages all AO’s assets Business planningProject managerInvestment planning & implementation

8. Bas Wehman NL Session 5 – Block 2 Barcelona 12-15 May 2003 8 Management summary : Processes within ENZ Connections New infrastructure Replacements Maintenance Interruptions Customers

9. Bas Wehman NL Session 5 – Block 2 Barcelona 12-15 May 2003 9 Management summary : Steering model Model differs slightly per process –Decoupling point –Standards, design criteria –Local autonomy Added value important criterion Minimal bureaucracy Internal benchmarking as steering tool

10. Bas Wehman NL Session 5 – Block 2 Barcelona 12-15 May 2003 10 Management summary : Results 1996-2001

11. Bas Wehman NL Session 5 – Block 2 Barcelona 12-15 May 2003 11 Latest developments IT implementation complete –Combination ERP - GIS Introduction Dynamic Business Modeling –Simulation long term effects of decisions Integration Essent Netwerk Zuid and Essent Netwerk Noord –Economies of scale –Bundling of skills ENN : risk management

12. Bas Wehman NL Session 5 – Block 2 Barcelona 12-15 May 2003 12 Answer to special report 5.11 How to prevent the growth of the organisation, when separating Asset Owner, Asset Manager and Service Provider ? A little growth is inevitable, but is compensated by greater effectiveness and efficiency (FTe –25%) Growth is minimalised by thoroughly implementing processes first (less coordination needed) Fighting bureaucracy (see question 5.12)

13. Bas Wehman NL Session 5 – Block 2 Barcelona 12-15 May 2003 13 Answer to special report 5.12 How to deal with the managerial effort of the formalisation of contracts etc. Starting point : shared vision (different roles, but same goals) Thoroughly implementing processes first reduces need for extensive contracts Determine prices in joint effort (commitment)