Talk of the day by linxiaoqin

VIEWS: 24 PAGES: 83

									Talk of the day   Annual Report 2010
                                                                                                                                                                                                                                                                                     2010 in brief
                                                                                                                                                                                                                                                                                 In het kort 2010
Our ambition: een klantgedreven, multimodale
Onze ambitie: to be a customer-driven, multi-
modal, national and European service provider
nationale en Europese dienstverlener zijn

People are always looking for ways
Mensen zoeken voortdurend naar                                   at a glance
                                                              NS in één oogopslag                                             Key financial ratios
                                                                                                                              Kerncijfers                                                                                         Customer satisfaction
                                                                                                                                                                                                                                  Klantoordeel
                                                                 handles voor ruim 1,1 miljoen klanten in Nederland
                                                              NS verzorgtthe train journeys for over 1.1 million customers
mogelijkhedencomfortably and en
to travel more om comfortabel                                 in the Netherlands every day, ritten over een drukbereden
                                                              dagelijks de treinreis via 4.800which means 4,800 sched-           millions of euros (tenzij stated vermeld)
                                                                                                                              in miljoenen euro’s (unless anders otherwise)                      2010               2009          % rapportcijfer 7of at least 7 out of 10 or higher
                                                                                                                                                                                                                                    giving a score of hoger                                       2010          2009

                                                              uled trains on very busy het gebied van materieel-
                                                              spoor. De activiteiten optracks. Our work on rolling stock
conveniently.
gemakkelijker te reizen.                                      onderhoud zijn an integralmee verbonden.alsoverzorgt
                                                              maintenance is hier nauw part of this. NS NS provides
                                                                                                                              Revenue1
                                                                                                                              Opbrengsten1                                                   3,520
                                                                                                                                                                                             3.520                3,271
                                                                                                                                                                                                                  3.271           General satisfaction for rail travel
                                                                                                                                                                                                                                  Algemeen oordeel reizen per trein                               75            78
                                                                                                                              Result from operating activities1
                                                                                                                              Resultaat uit bedrijfsactiviteiten1                               234
                                                                                                                                                                                                234                150
                                                                                                                                                                                                                   150            Punctuality
                                                                                                                                                                                                                                  Op tijd rijden                                                  52
                                                                                                                                                                                                                                                                                                  52            56
                                                                                                                                                                                                                                                                                                                56
                                                              aanvullende diensten,the door-to-door journey chain,
                                                              additional services in waaronder busvervoer, in de
                                                                                                                              Profit for the period
                                                                                                                              Winst over de verslagperiode                                      149
                                                                                                                                                                                                149                116
                                                                                                                                                                                                                   116            Percentage gereden operated
                                                                                                                                                                                                                                  Percentage of trains treinen                                    98
                                                                                                                                                                                                                                                                                                  98            98
                                                                                                                                                                                                                                                                                                                98
Attractive public transport, good connections for their
Aantrekkelijk openbaar vervoer, goede aansluitende            reisketen van deur-tot-deur. Het bedrijf beheert over
                                                              including bus transport. The company manages ruim
                                                                                                                              Additions                                                         633                 666           Information on the train and at
                                                                                                                              Investeringen in (im)materiële vaste activa                       633                 666           Informatie bij ontregeling in de trein
onward journeys and inviting transport hubs all help.
verbindingen en aansprekende vervoersknooppunten                           and is working with variety of partners to
                                                              380 stations en ontwikkelt samenamet diverse partners de        Returns (ROI)                                                   3.4%                2.2%            the station about delays                                        55            56
                                                                                                                              Rendement (ROI)                                                 3,4%                2,2%            en op het station                                               55            56
leveren hieraan een bijdrage. Hetincreasingly important
Public transport is also becoming openbaar vervoer is         develop the major public transport hubs, turning them
                                                              grote knooppunten van openbaar vervoer tot dynamische           Passenger volume in millions of                                                                     Personal safety                                                 78            78
                                                                                                                              Vervoersomvang NL in miljoenen reizigers-km                   16.359               16.315           Sociale veiligheid                                              78            78
in maintaining sustainable accessibility and bereikbaar
ook steeds belangrijker voor het duurzaam a high quality      into dynamic urban 230.000 mensen doen dagelijks
                                                              stadsportalen. Ruim portals. Every day, over 230,000 een        passenger-kilometres                                          16,359               16,315           Seating capacity in the train at peak periods                   69            71
                                                                                                                              Punctualiteit in Nederland2                                   92,5%                92,8%            Beschikbare zitplaatsen in de spits                             69            71
en life in Europe’s densely populated regions. NS Europa.
of leefbaar houden van dichtbevolkte regio’s in has a         people make a van de winkels of the shops or hospitality
                                                              aankoop in éénpurchase in oneen horecagelegenheden.             Punctuality2                                                  92.5%                92.8%            Cleanliness of the trains and stations                          55            57
                                                                                                                              Personeel (fte ultimo)                                        23.630               30.068           Reinheid treinen en stations                                    55            57
NS speelt hierbij eenand is in a position to strengthen
linchpin role in this, verbindende rol en is in staat om      facilities. Working with partners in Germany, Belgium
                                                              Samen met partners in Duitsland, België en Frankrijk and        Staff (FTE at year-end)                                       23,630               30,068           Approachability of
                                                                                                                                                                                                                                                                                                  63            62
die rol deover the years tote versterken.
that role komende jaren come.                                 vervoert NS klanten ook naarcustomers to key destinations
                                                              France, NS also transports its belangrijke bestemmingen         1
                                                                                                                                  De vergelijkende cijfers zijn aangepast ten gevolge van de verkoop van Strukton Groep NV
                                                                                                                                                                                                                                  Klantgerichtheid representatives
                                                                                                                                                                                                                                  customer service NS-medewerkers                                 63            62
                                                                                                                              1
                                                                                                                                  The comparative figures have been adjusted as a result of the sale of Strukton groep.
                                                                                                                              2
                                                              elsewhere in Europe. The NS subsidiary Abellio provides
                                                              elders in Europa. NS-dochter Abellio verzorgt bus- en               % Treinen op het hoofdrailnet die op tijd aankomen met een vertraging < 5 minuten
                                                                                                                              2
                                                                                                                                  Trains on the main rail network that arrive on time or where the delay is less than
Our ambition to be a een klantgedreven, nationale
Onze ambitie is het om customer-driven, national and          bus and train transport in Great Britain and Germany and
                                                              treinvervoer in Groot-Brittannië en Duitsland, busvervoer           five minutes.

European multimodal service provider, offering reliable
en Europese, multimodale dienstverlener te zijn.              bus transport in the Czech dag circa 650.000 about
                                                              in Tsjechië en vervoert elkeRepublic; it carriestrein- en/of
passenger transport, comfortable trains and buses, lively
Met betrouwbaar reizigersvervoer, comfortabele treinen        650,000 train and bus passengers every day. Approximately
                                                              busreizigers. Bij NS werken circa 24.000 medewerkers (fte).     Opbrengsten per segment
                                                                                                                              Revenue per segment                                                 Opbrengsten passenger services
                                                                                                                                                                                                  Revenue from reizigersvervoer                                     Investeringen per segment
                                                                                                                                                                                                                                                                    Investments per segment
en bussen, levendige stationsgebieden en and facilities in
station areas and a wide range of services een verschei-      Het hoofdkantoor work at NS. The NSin Nederlandis in the
                                                              24,000 staff (FTE) van NS is gevestigd head office (Utrecht).
the transport chain from voorzieningen
denheid aan diensten en door to door. in de reisketen         Netherlands (in Utrecht).
van deur tot deur.                                            Segmentatie naar activiteiten
Our efforts are converging around a single mission: to        Segmentation by activity
                                                              NS is actief in twee segmenten: reizigersvervoer en
keep transporting inspanningen rond één missie: telkens
Wij bundelen onzemore passengers safely, punctually and       knooppuntontwikkeling en –exploitatie. Het segment
                                                              Within the passenger services segment, NS Reizigers is
comfortably via appealing stations.
meer reizigers veilig, op tijd en comfortabel vervoeren via   railinfra & bouw is in 2010 verkocht.
                                                              responsible for rail transport operations in the Netherlands
aantrekkelijke stations.                                      and the associated sales and service activities. NS Hispeed
In doing this, we are focusing on our five main objectives:   was already responsible for cross-border Reizigers
                                                              Binnen het segment reizigersvervoer is NSpassenger
Wij houden daarbij onze vijf hoofddoelstellingen              verantwoordelijk voor de uitvoeringof high-speed
                                                              transport and is now also in charge van het treinvervoer
scherp in het oog:                                            transport within the de daarmee NedTrain handles
                                                              binnen Nederland enNetherlands.samenhangende the
                Main objectives
                                                              maintenance of the trains in the Netherlands. The NS
                                                              verkoop- en serviceactiviteiten. NS Hispeed voert het                 Passsenger services
                                                                                                                                    Reizigersvervoer                                                    Individual ticket
                                                                                                                                                                                                        Losse kaartjes sales                                             Passenger services
                                                                                                                                                                                                                                                                         Reizigersvervoer

              •		 unning	on	time
                r                                             subsidiary Abellio handles the acquisition and operation
                                                              grensoverschrijdende reizigersvervoer uit en inmiddels ook            Hub development and operation
                                                                                                                                    Knooppuntontwikkeling en -exploitatie                               Concessions abroad
                                                                                                                                                                                                        Concessies buitenland                                            Hub development and operation
                                                                                                                                                                                                                                                                         Knooppuntontwikkeling en -exploitatie
                Hoofddoelstellingen                           of public transport concessions abroad.
                                                              het hogesnelheidsvervoer in Nederland. NedTrain verzorgt                                                                                  Subscriptions
                                                                                                                                                                                                        Abonnementen                                                     Railinfra & bouw & construction
                                                                                                                                                                                                                                                                         Rail infrastructure
              •	providing	information	and	service
                                                              het onderhoud van de treinensegment, NS Poort is respon-
                                                              Within the hub development in Nederland. NS-dochter                                                                                       Student travel pass
                                                                                                                                                                                                        OV-studentenkaart
              • op tijd rijden
              •	contributing	to	personal	safety
                                                              sible for the management and commercial operations of
                                                              Abellio verwerft en verzorgt openbaarvervoerconcessies                                                                                    Other
                                                                                                                                                                                                        Overig
              • creating	sufficient	transport	
              •		informatie verstrekken en                    stations in the Netherlands and for development in the
                                                              in het buitenland.                                                                                                                        Overigtransport related
                                                                                                                                                                                                        Other vervoer
                 service verlenen
                capacity                                      vicinity of these stations.
                                                              Binnen het segment knooppuntontwikkeling neemt                                                                                            International passenger services
                                                                                                                                                                                                        Internationaal reizigersvervoer

              • ensuring	that	trains	and	stations	
              •		bijdragen aan sociale veiligheid             NS Poort het beheer en de exploitatie van de Nederlandse
              • are clean vervoerscapaciteit
                 voldoende                                    stations en de Board consistsrónd deze stations voor
                                                              The Executive ontwikkeling of A. Meerstadt mba,
                                                              haar rekening.
                                                              M. Niggebrugge, E.M. Robbe ra and Ms M.W.L. van                 The NS organisation
                                                                                                                              De NS-organisatie
                creëren
              • zorgen voor schone treinen
                                                              Vroonhoven mba. The following directors of the key                                                                                                     NS Group
                                                                                                                                                                                                                        Groep
                                                              NS NS-directie bestaat nu uit ir A. Meerstadt Group
                                                              De business units are also members of the NS mba,                                                                                                                                                                          Support companies and
                                                                                                                                                                                                                                                                                            Ondersteunende
                Sufficient return on investment is
                en stations                                   drs M. Niggebrugge, drs E.M.M.C.J. van en
                                                              Council: M.J. Noy (NS Poort), Robbe ra Roozendaal                                                                                                                                                                           participating interests
                                                                                                                                                                                                                                                                                       bedrijven en deelnemingen
                a prerequisite for being able to
                                                              mevrouw ir M.W.L. van (NS Hispeed), Ms I.D. Thijssen LLM
                                                              (NedTrain), J.W. Siebers Vroonhoven mba. Daarnaast zijn
                Voldoende invest in such
                continue to rendement is areas as             (NS Reizigers) and A.J.M. van (Abellio). H. van
                                                              de volgende directeuren Valkde belangrijkste de Kraats
                randvoorwaarde and is therefore
                new rolling stock om te kunnen                LLM (HR and Organisation) is de a member of the
                                                              NS-bedrijfsonderdelen lid vanalsoNS-groepsraad: council.
                                                                                                                                                                   Passenger services
                                                                                                                                                                    Reizigersvervoer                                                                    Hub development and operation
                                                                                                                                                                                                                                                     Knooppuntontwikkeling en -exploitatie
                blijven investeren - onder
                crucial to the company’s                      The NS Noy (NS Poort), closely van Roozendaal (NedTrain),
                                                              drs M.J.Group Council isir M.C.J.involved in the implemen-
                                                              tation of the strategy, achieving synergy and steering the
                                                              drs J.W. Siebers (NS Hispeed), mevrouw mr I.D. Thijssen
                andere in in the longer term.
                continuity nieuw materieel -                                                                                       NS Reizigers
                                                              group as a whole.
                                                              (NS Reizigers) en ir A.J.M. Valk (Abellio). mr H. van de
                en is daarmee bepalend voor                                                                                        NS Hispeed                                                   NedTrain                                                                 NS Poort
                                                              Kraats (HR en Organisatie) is eveneens lid van de raad.
                de continuïteit van de onder-                 De NS-groepsraad is nauw betrokken bij de implementatie              Abellio
                neming op lange termijn.                      van de strategie, het bereiken van synergie en de aansturing
                                                              van de hele onderneming.




                                                              In het kort 2010
2                                                               3


               We all have them, don’t we?      cheered up
                                                a bit
       Those chats you have with strangers      4

        about the weather, politics or jobs.
                                                like a slap
           NS is often subject of such chats    in the face
                                                6
       because everyone knows NS and the
                                                I want to be
    company seems to belong to everyone.        noticed
                                                8
             It doesn’t matter whether the
    person you’re talking to actually travels   a right
                                                mess
      by train. If you work for NS, that will   10


     often be a hot topic for other people.     it’s become
                                                a sport
                                                12

     How do NS staff deal with these            cheaper?
           questions and opinions?              14



                                                the figures –
           In this annual report, we will be    in pictures
                                                16-20
             following six of our own staff.
            The conversation keeps turning
                   to NS. In the shop, on the   annual
                                                report
               tennis court, or just at home.   22


                                                financial
                                                statements
                       The talk of the day...   80
4                                                                                                        5
                   at ‘Bloemenhuis Jasmijn’, a florist’s in Soest




                     ‘Cheered up a bit’
    Christa Kats   “…that’s a lovely bouquet you’ve put together!
    Chief guard    That’s really put me in a good mood…
                   Good! After all, people do come here for a
                   pleasant chat. You work for NS, don’t you?
                   How do you deal with all that?
                   Actually, the people I meet are mostly friendly.
                   And if not, I try to cheer them up a bit. Like
                   that woman who was in the wrong train.
                   When I put her on the right track, I got her
                   entire life story. And a spontaneous kiss.
                   That was really touching.
                   That’s what’s so nice about working with people.                    Susanne Boelsma
                   When I took the train to the florists’ course,                      Florist
                   there were always people wanting to talk to me
                   because of the huge bouquets I was carrying.
                   When I go out with the girls, we always go by
                   train. A good chance for a natter.
                   Nice, a group like that. A little while back,
                   I arranged an extra stop at Amsterdam RAI for
                   an Intercity that was full of people going to the
                   Horecava catering show. When I announced it,
                   I felt the whole train move! Fantastic. I used to
                   work as a cook myself, so I also warned them
                   about not overdoing all the free drinks at the
                                                                       customer
                   show. If the passengers are happy when they
                                                                       satisfaction
                   get off the train, it makes my day.
                                                                       > page 18, 19
                   And if they’re angry because the trains
                                                                       > page 39
                   aren’t running?
                   That’s what I’m there for, isn’t it? Like during
                   the disruptions at Utrecht not so long ago.
                   After that was over, I was able to sit down in
                   the evening, put my feet up and still feel good
                   about it. I heard them saying on the telly that
                   NS had made a pig’s ear of it, and then I think,
                   ‘Well, I certainly did my very best’…”
6
            at the ‘Tautenburg’ tennis club in Maartensdijk




    ‘Like a slap in the face’
                     “…there was one time when I was at a job
              interview and said to the employer, ‘Okay then,
             what about the company car?’ And the guy told                                                         Thijs van Lierop
                     me I’d get a public transport season ticket.                                              New Business manager
                                    It was like a slap in the face.                                                  NS Commercial
               A dyed-in-the-wool car driver! Luckily there are
         more and more employers and employees who do
      see a public transport pass as a good fringe benefit.
                I mean, you want socially responsible business                            Ed Buitenhek
                      practices and to use your time efficiently?                         His tennis partner
        And I do. But I want it all to be flexible. And yes, I’m
          more comfortable with cars. It’s also a question of
      status. Men ask each other, ‘What car do you drive?’
       It’s not a case of one or the other. Combine your car
           with an NS Business Card. Just park at the station
              and take the train from there. Sift through your
            e-mail in the train. No fuss with paying and then
       claiming the expenses, because the NS Business Card
          is more like an account. And you can take a taxi, a
                                                                      from door to door
           Greenwheels car or a public transport bicycle too.
                                                                      > page 16
           But if I do take the train, like recently when there       > page 63
               were those massive traffic jams, it goes wrong.
        I have to stand, even in first class. Or the train isn’t
                    running. ‘Here we go again,’ I always think.
             I know. Even so, I’ve got friends and family who
         never travel by train, but are happy to tell me – an
          NS employee – that the trains don’t always run so
            smoothly. While they sit in traffic jams every day
          with the trains zipping happily past them. I mean,
            the snow affected Schiphol airport too, didn’t it?
            I don’t just let them criticise without responding.
                   Dead right. You’re making it more attractive,
                       Thijs, with billing afterwards, Internet in
                  the trains and meeting rooms at the stations.
                     But there’s only one thing NS can do to get
                          me out of the car: more traffic jams…”
8                                                                                                                      9
                   at the ‘Zeven Geitjes’ riding stables in Tilburg




                ‘I want to be noticed’                                                           Myrthe Leenhouts
                   “…fancy you, with a degree in organisational                                  HR manager, Abellio
                                  psychology, going to work for NS!
                     I got into NS through its trainee programme.
                       The nice thing about it is that you can work
                   on a wide range of projects for different parts
                             of NS. That’s how I ended up at Abellio,
                             an NS subsidiary that runs and acquires
                                               European concessions.
                       Do all those operations in foreign countries
                      help passengers in the Netherlands like me?
    Europe             During all that chaos in the winter, my train
    > page 16                    wasn’t on time even once. If I want
    > page 71               compensation, I have to write a letter or
                       go to Rotterdam Centraal station just to get
                                 a form. Ridiculous. If there was any
                        competition for NS on the railways, they’d
                                              make more of an effort.
                                Sure, our international activities help
                      passengers like you. We learn a lot from our
                      colleagues abroad, and they learn a lot from
                        us. I’ve got colleagues all over Europe who
                        are really committed to the job. We do our
                        very best to learn from each other’s talents
                             and strengths, so that we can offer our
                              customers proper service, with a smile.
                           One hint I would give your company is to
                       treat passengers as customers. I’m buying a
                      service, so do your best for me. A while ago
                         I was running to catch the train; the guard      Olga Visnevskaa
                    saw me coming and waited for me. Yes! They            Her childhood friend
                     really noticed me - and that’s what I want…”
10                                                                                                                11
                                                    taking the dog for a walk in Waddinxveen




                                                     ‘A right mess’
                                                     “…you work for NS? I’ve had more than enough
                                                     of them lately. The train to Gouda has only been on
                                                     time twice in the last six months.
                                                     Very annoying. We’ve been having more delays
                                                     than usual over the last few months, but it’s weird
                                                     that it should be as structural as that. Have you
                                                     called Customer Services?
                                                     Come on, there’s no point in doing that. Though there
                                                     was one time I was given a cheapo ticket for my son
                           Michael Brandenburg       as compensation. A right mess. The trains should
                                     Lives nearby    simply be on time.
                                                     Can’t argue with that. I’ll have a look for you and
                                                     see if there’s something up with the connecting
                                                     trains to Gouda.
           Ariëtte Vleij                             And in the meantime, NS is raking it in from the
     Operations manager                              public transport smart card. Not so long ago, I was
         Utrecht station                             leaning against the card reader on the platform and
                                                     checked out accidentally. I got fined! Although the
                                                     guard can see on his card reader exactly what’s
                                                     happened. So I had to pay double, on top of waiting
                                                     two hours in the rain.
                                                     I understand why you’re cross. But you don’t get your
                                                     shopping free from the supermarket either if there’s
                                                     a power cut. And the guard can’t see that you
                                                     checked out by accident.
                                                     NS ought to assume that people are honest.
                                                     We do. The whole system of tickets and public
                                                     transport smart cards works on trust. But some people
                                                     persist in travelling without a ticket, unfortunately.
                                                     And our Customer Service staff are sympathetic,
                                                     specially if the fine was unfair.
                              teamwork               They have to deal with all the angry passengers, of
                              > page 18, 19          course. The railway staff are always on the receiving end.
                              > page 55              It’s our job, and we enjoy doing it. Don’t forget that
                                                     there’s also a lot that goes smoothly. And when
                                                     passengers start cursing NS about a minute’s delay
                                                     when the whole country is snowed under, well then
                                                     I think it’s time for them to quieten down a bit…”
12                                                           at home in Amstelveen                                 13




     Hans Schattenberg
            Train driver

                                                             ‘It’s become a sport’
                                                             “...low-energy driving, that’s what you try to do?”
                                                             Energy-saving driving is what we call it. For us
                                                             professionals, saving energy as we drive has
                                                             become a sport. I’ve got a screen that shows me
                                                             how many kilowatt-hours I’m using. If I’m at
                                               sustainable
                                                             300, I try to make it just 280 on the next journey.
                                               > page 49
                                                             A competition, with myself.
                                                             I’ve known you for quite a while now. You’re
                                                             not very competitive, but you do want to be
                                                             the best.
                                                             Well, not always… I’ll admit you play the
                                                             guitar better. But I know more about koi carp
                                                             and trains. Guess how far a train that’s doing
                                                             140 kilometres an hour can freewheel?
                                                             Four kilometres?
                                                             Nearly thirty kilometres, with the wind at its
                                                             back. Just letting them freewheel saves electri-
                                                             city. If I see a red light up ahead, I don’t wait
                                                             until the last minute to brake.
                                                             You’ve got the best view in the country from
                                                             your workplace, Hans.
                                                             True enough. At the Oostvaardersplassen
                                                             wetlands, I sometimes see deer or wild cattle
                                                             foraging. But apart from that, I mostly see signs
                                                             and signals. Signals are sacred to drivers: every-
                                                             thing focuses on safety and timekeeping.
                                                             But what do you do if someone comes running
                                                             onto the platform? Do you still drive off?
                                                             Always a tricky one, that. If it’s the last train,
                                                             you obviously want to pick the people up.
                                                             On the other hand, I’m always telling the kids at
                                                             schools how dangerous it is to jump onto a train
                                                             as it leaves. I want to be able to look those
                           Bandung Nasserie
                                                             children straight in the eye…”
                               His neighbour
14                                                                                                                         15
                 in the ‘Stairway to Heaven’ café in Utrecht




                                                                                           Boukhiar Hamdani
                                                                                     Section head, IT purchasing


                                   ‘Cheaper?’
     “…working for NS means you have to explain a lot of
          things at birthday parties. I take the sting out of it
            by joking that I work for the Delays department.
                                     That usually breaks the ice.
               They surely don’t expect a purchaser for the IT
                             department to defend the delays?
         Oh, but they do. Passengers are our customers too,
             indirectly. We buy in the software for the latest
      journey information systems and applications for the
     controllers who get the rail traffic moving when there
     are problems. And the people who work on the trains
        and stations are still my colleagues. And you can be
       sure that they get much more annoyed by it all than
                                             the passengers do.
             Sorry, Boukh, but NS doesn’t mean much to me.
            The car is a better option for my job. I compared
              them recently: a first-class ticket isn’t any more
            expensive for me, but it isn’t any cheaper either.
                          If public transport becomes cheaper,
                                   I reckon people may switch..
                      Fair point. We run a very tight ship, but
                                                                    cost-conscious
      cost-cutting mustn’t end up affecting the quality and         > page 18, 19
           the experience. When NS bought new local trains          > page 76
      that didn’t have toilets, so that there’d be more seats
           and ticket prices could be kept as low as possible,
                              then the country was up in arms.
                 That’s your problem in a nutshell. The Dutch                                           Rolf Pot
                         want high quality and cheap tickets.                                           Former colleague
             And quality is still important to us. NS has been
     around for over 170 years, and we want to get people
        safely home for the next 170 years too, even on the
          unprofitable routes. You have to see that ticket as
     being an investment in the trains of the future too…”
16                                                                                                                                                                                                                                                              17




             ‘And while we’re talking about NS…’
                If you talk about NS,
                                                                                OV-fiets                                          Cups of coffee                                 Tickets
      the numbers and facts soon                                                Number of bicycles         Rental locations       At Servex’s station retail outlets             Total number of tickets

     get very impressive. Millions
                                                                                           ,                                                            ,            ,                              ,            ,
          of passengers, billions of                                            Subscribers


                                        2010
                                                                                                                                        = 1 million cups of coffee               Totals by ticket type
     kilometres travelled by train,                                                                                                                                              in millions
                                                                                           .
                                                                                           ,                                                                                                                              New romances in the train
     thousands of mobile phones
                                                                                Number of rentals
          left in the trains, and the   in pictures                                                                                                                                         88 x                                                           ,
          huge numbers of cups of                                                          ,
       coffee that customers drink                                                                                                                                                           17.4 x
            at the stations. And we                                                                            500 on an                                                                                                  Passengers using public transport  
                                                                                                                                                                                                                          smart cards as stored-value cards 
                                                                                                         average working day
      haven’t even mentioned the                                                                                                                                                 1.6 x                                    end December 2010
                                                                                                                   in Utrecht
     millions of customer contacts                                                                                                                                                                                                            ,            ,
        every year at NS Customer
        Service, the nearly 100,000
               times a year that the
                                                                        Proportion of inhabitants of the                          Population of the Netherlands, 2010            Number of NS customers in 2010           Number of NS customers
        customer service staff help
                                                                        Netherlands who are NS customers                                                                                                                  per working day
         disabled people to get on                                      1 figure = 1 million people. NS customers are in colour
          and off the trains, or the                                                                                                                  ,              ,                              ,            ,                            ,            ,
          millions of times that the
     www.ns.nl website is visited.
           NS takes people further.
                 Each and every day.




                                        NS passenger-kilometres                         Passenger-kilometres                      Lost and found items in trains and at stations
                                        in the Netherlands                              in other countries                        Top 10                                                                                  Number of items found

                                                                                                                                                                                                                                                           ,
                                                                                                                                           1                             3                                   5            Most unusual item
                                              ,         ,         ,                            ,           ,           ,                                                              4
                                                                                                                                                                                                                          A complete electric wheelchair


                                        Equivalent to408,000 x                                                                                              2
                                                times round the Earth
                                                                                               ,           ,           ,
                                                                                                                                                    7
                                                                                                                                    6                                                                    9
                                                                                                                                                                             8
                                                                                               ,           ,           ,                                                                                             10



                                                                                               ,           ,           ,


                                                                                               ,           ,           ,
18                                                                                                                                                                                                                                                                            19




              Customer
            satisfaction                                10                                            General customer satisfaction
                                                                                                                                                                                      >7
           The way our passengers
       perceive our services is very
                                                        years                                         figure for train travel
                                                                                                      % giving a score of 7 out of 10 or higher
                                                                                                                                                  45             48             56           66             67        68            70          76     78      75
                                                        in pictures
          important to us. This has
     been measured the same way
        by an independent agency
                                                                                                                                                  2001           2002          2003          2004          2005       2006          2007        2008   2009    2010
       for the last ten years. It lets
     us keep a finger on the pulse.
      We have now completed the
            first decade of the new                                          Punctuality                                                            Cleanliness of the trains
                                                                             % giving a score of 7 out of 10 or higher                              % giving a score of 7 out of 10 or higher
         century and can look back
             over the past 10 years.


                                                                                                                                                         44             44            48               53            55         54              54      53      55     53
                                                                                                                                                         2001           2002          2003             2004          2005       2006            2007    2008    2009   2010




          Information about disruptions
          % giving a score of 7 out of 10 or higher                                                                                                 Cleanliness of the stations
                                                                                                                                                    % giving a score of 7 out of 10 or higher




                                                                                                    92.5%
                                                                                                    Punctuality as measured in 2010
                                                                                                    (within 5-minute margin)




          Personal safety
          % giving a score of 7 out of 10 or higher



                                                                                                                                                           40         39        43     50            52        53    55      56            58    58

                                                                                                                                                          2001     2002        2003    2004         2005      2006   2007    2008        2009   2010


               64            63            66         69       71     74      76            77            78             78

              2001          2002           2003       2004     2005   2006   2007           2008          2009           2010
                   Annual Report
 Report by the Supervisory Board       22
   Report by the Executive Board       26
                  Activity Report      32
        Sustainable Commitment         44
              Results of Activities    53
           Corporate Governance        66
               Risk Management         70
              Financial Overview       74


             Financial Statements
Consolidated Financial Statements      80
    Separate Financial Statements     140


                            Other
               Other Information      142
       Segmentation Breakdown         144
                 Five Years of NS     145
                     GRI Indicator    148
                             Index    156




               Annual Report 2010
22   NS Annual Report 2010                                                                                                                                                                                                                          23




     Report by the Supervisory Board
                  Wintry weather conditions had   The Supervisory Board held urgent discussions at the             that it is important for the quality of the service provided    The Supervisory Board ensures it is kept up to date about
                                                  beginning and end of 2010 with the Executive Board and           to passengers that NS should play a role in the European        NS’s performance, using quarterly reports, six-monthly
           a severe impact on operations both     the managers involved in the operations, looking at the          public transport market as it is liberalised. Although we did   figures and annual figures. At every regular meeting,
                                                  causes, consequences and responsibilities. Throughout the        take part in the tendering process for Arriva Germany, the      the Executive Board informs the Supervisory Board about
              at the beginning and end of 2010.   year, a close eye was kept on the measures taken to ensure       risks were such that NS decided after due diligence not to      current issues relating to safety, such as accidents and the
                                                  the trains were better prepared for the winter weather, for      make a bid. A critical success factor for such a role is the    associated investigations. The safety reports also cover
                                                  instance, and to improve the journey information situation.      continuity of the concession for the main Dutch rail network    personal safety and accidents at work.
                                                  The Supervisory Board sadly had to note that the efforts         from 2015 onwards.
                                                  made during the winter of 2010 to 2011 have not yet borne        When the Cabinet fell at the beginning of 2010, that led        Mr Niggebrugge, the Financial Director, is leaving NS at
                                                  fruit sufficiently. TV commercials generated positive            to a lengthy period of uncertainty about the future of the      the beginning of 2011 after ten years, a period during
                                                  expectations for the winter period, which turned out to be       concession for the main Dutch rail network. Compared with       which the financial control and performance improved.
                                                  premature. As a result of the winter problems, a critical note   other transport companies, NS is one of the bigger players      The Supervisory Board has enjoyed working with
                                                  could be heard in what the general public were saying about      on the European public transport market. NS would like to       Mr Niggebrugge and we would like to thank him very
                                                  the way ProRail and NS carry out their tasks.                    be awarded the concession for the main Dutch rail network       much. His successor as the financial director is Mr Robbe,
                                                                                                                   again in view of its importance for employment opportu-         who has a solid financial profile and wide-ranging
                                                  The Executive and Supervisory boards have also discussed         nities and the quality of rail transport in the Netherlands.    international experience. He joined NS on 1 October.
                                                  HSA. The financial results are a cause for concern. Revenues                                                                     Mr Niggebrugge passed his portfolio on to Mr Robbe
                                                  in 2001 were too low to cover the agreed concession fee.                            Continuity of the main                       as of 1 January 2011.
                                                  In order to deal with this problem, on the one hand people
                                                  are working hard to get the operation running properly as
                                                                                                                           rail network concession after 2015                      The Supervisory Board met fourteen times in 2010, of
                                                  quickly as possible, and on the other, discussions are being                  is a critical success factor                       which two meetings were (partially) conducted by
                                                  held with the Government about items such as the way in                                                                          telephone. With only occasional exceptions, all members
                                                  which the continuity of HSA can be guaranteed. The Minister      Because the introduction of the public transport smart card     of the Supervisory Board were present at all the meetings.
                                                  informed Parliament about this at the end of January 2011.       and gates is a complex process with significant risks, the
                                                                                                                   Supervisory Board is informed about developments at every       The board has two permanent committees: the Audit
                                                               Ideas about the (European)                          meeting. Increasing numbers of travellers have started to use   Committee and the Remuneration, Selection and Appoint-
                                                            strategy were shared                                   the public transport smart card in 2010. New measures keep      ments committee.
                                                                                                                   being required in order to manage the risk of fraud.
                                                  The Supervisory and Executive boards spoke at length in                                                                          In 2010 the Audit committee consisted of F.J.G.M. Cremers
                                                  2010 about the sale of Strukton, in which the conditions,        All in all, 2010 was a difficult year for NS. A year in which   (chairman), Ms T.M. Lodder and P. Rosenmöller. The
                                                  continuity of the company and the position of the employees      the complexity of the operations and the environment in         committee met three times, with all the members present.
                                                  were the key items discussed. The Supervisory Board’s            which NS operates could clearly be seen. In financial terms     The key topics were the annual and six-monthly figures and
                                                  deliberations also took into consideration the fact that         the results are good. The Supervisory Board is however          the corporate plan, audits, the external auditor’s evaluation,
                                                  retaining Strukton within the NS concern would require           concerned about the financial situation at HSA.                 management of large and high-risk projects, financing,
                                                  considerable management attention, while Strukton’s              Other items discussed included management development,          dividend payments, tax matters and how the situation at
                                                  operations are not part of NS’s core activities. Strukton was    the communications function, information and communica-         HSA and the sale of Strukton should be recorded in the
                                                  sold during the year to Oranjewoud. The proceeds of the          tions technology, and sustainable business practices.           accounts. The subjects were discussed at length in prepa-
                                                  sale were paid out to the Government as an extra dividend,       Various proposals for investments and disposals were            ration for the meetings of the Supervisory Board.
                                                  after subtracting obligations and costs.                         presented to the Supervisory Board. There were also             The Remuneration, Selection and Appointments committee
                                                                                                                   intensive discussions during the period under review            comprises H. Zwarts (Chairman), W. Meijer and
                                                  The Supervisory and Executive boards exchanged ideas             with the shareholder about the remunerations policy.            Ms M.J. Oudeman. It met twice in 2010, with all members
                                                  about the (European) strategy and also discussed it at a later   Key elements in this are transparency, restraint and            present. Discussions covered variable remuneration, the
                                                  stage with the shareholder and the Central Works Council.        customer focus. It is expected that these discussions will      targets, the remunerations policy and the successor to
                                                  Ideas were exchanged absolutely openly. The parties agree        be completed during the first quarter of 2011.                  the Financial Director. The Supervisory Board’s decisions
24   NS Annual Report 2010 / Report by the Supervisory Board                                                                                                                                                                                                                   25




                                                               (based on the Remunerations committee’s proposals) can              W. Meijer                                                               Ms mr M.J. Oudeman mba
                                                               be found in the section on the remuneration policy for the          Chairman (1939), Dutch citizen                                          (1958) Dutch citizen
                                                               Executive Board on pages 122 to 124.                                Appointed on 3 January 2002 until 2005,                                 Appointed on 1 January 2005 until 2009, reappointed until 2013
                                                                                                                                   reappointed until 2009 and 2013                                     •   Member of the Executive Committee of Akzo Nobel NV,
                                                               All members of the Supervisory Board are independent,           •   Former Chairman of the Executive Board of                               responsible for HR & Organisational Development
                                                               as defined in the Dutch corporate governance code.                  Rabobank Netherlands BV                                             •   Additional functions include member of the Supervisory Board
                                                               At the General Meeting of Shareholders on 12 March 2010,        •   Additional functions include Chairman of the Supervisory Board          of ABN-AMRO and member of the Stichting Comité voor het
                                                               Mr F.J.G.M. Cremers was reappointed as a Supervisory Board          of Novamedia and Chairman of the Supervisory Board of the               Concertgebouw
                                                               member for a final period of four years. In accordance              National Chamber of Commerce
                                                               with the retirement schedule, the first term of office of                                                                                   P. Rosenmöller
                                                               Mr P. Rosenmöller will expire in 2011. Mr Rosenmöller will          H. Zwarts                                                               (1956) Dutch citizen
                                                               be recommended for reappointment at the next General                Vice-chairman (1940), Dutch citizen                                     Appointed on 1 June 2007 until 2011
                                                               Meeting of Shareholders.                                            Appointed on 1 July 2002 until 2003,                                •   Television producer for IKON
                                                                                                                                   reappointed until 2007 and 2011                                     •   Additional functions include member of the Supervisory Board of
                                                                        Compared with other                                    •   Former CEO of Randstad NV and former Chairman of the                    APG, member of the Board of the Dutch Red Cross, member of
                                                                                                                                   Amsterdam Chamber of Commerce                                           the Supervisory Board of CSU and chairman of the Healthy Weight
                                                                    transport companies, NS is one                             •   Additional functions include Chairman of the Supervisory Board          Covenant Steering Committee
                                                                of the bigger players on the                                       of RON NV, chairman of the Dutch Trade Board, chairman of the
                                                                     European public transport market                              Supervisory Board of Raet Holding BV, chairman of the                   A complete list of the Supervisory Board members’ other functions
                                                                                                                                   Supervisory Board of B&A BV, membership of the Supervisory              is available on request.
                                                                                                                                   Board of Amsterdam ArenA NV and board member of the trust
                                                               According to the retirement schedule, 2011 is the last
                                                                                                                                   offices for the shares of a number of Dutch companies
                                                               possible year before Mr H. Zwarts must retire. Mr Zwarts
                                                               served as the vice-chairman of the Supervisory Board and the
                                                                                                                                   Dr F.J.G.M. Cremers
                                                               chairman of the Remuneration, Selection and Appointments
                                                                                                                                   (1952) Dutch citizen
                                                               committee during the reconstruction after the turbulent
                                                                                                                                   Appointed on 1 July 2002 until 2006,
                                                               period in 2001. He has always shown deep commitment
                                                                                                                                   reappointed until 2010 and 2014
                                                               to the company, and has put a great deal of effort into
                                                                                                                               •   Former member of the Executive Board and CFO of VNU NV
                                                               resolving questions that were often complex.
                                                                                                                               •   Additional functions include member of the Supervisory Board of
                                                               The Supervisory Board would like to thank Mr Zwarts
                                                                                                                                   NV Luchthaven Schiphol, member of the Supervisory Board of
                                                               very much for his input.
                                                                                                                                   Vopak NV, member of the Supervisory Board of Unibail-Rodamco
                                                                                                                                   SE, vice-chairman of the Supervisory Board of Fugro NV, member of
                                                               The financial statements for 2010, as prepared by the
                                                                                                                                   the Supervisory Board of SBM Offshore, member of the Supervisory
                                                               Executive Board, have been discussed by the Supervisory
                                                                                                                                   Board of Parcom Capital BV, investigator on behalf of the Enter-
                                                               Board. The external auditor was present at the review.
                                                                                                                                   prise Section of Amsterdam Court into the policy and events at
                                                               The financial statements are accompanied by the report
                                                                                                                                   Fortis NV, and member of the anti-takeover foundations of Océ,
                                                               of the NS Executive Board.
                                                                                                                                   Philips and Heijmans

                                                               We invite the General Meeting of Shareholders to adopt the
                                                                                                                                   Ms T.M. Lodder
                                                               2010 financial statements, which can be found on pages 80
                                                                                                                                   (1948) Dutch citizen
                                                               to 141 of this report. We would also like to ask our sole
                                                                                                                                   Appointed on 1 June 2004 until 2008, reappointed until 2012
                                                               shareholder, the Ministry of Finance, to ratify the decisions
                                                                                                                               •   Chairwoman of the Executive Board of the ‘Het Muziektheater’
                                                               of the Executive Board and the supervision exercised by the
                                                                                                                                   foundation in Amsterdam and Commercial Director of
                                                               Supervisory Board. The profit appropriation proposed by the
                                                                                                                                   De Nederlandse Opera
                                                               Supervisory Board can be found on page 142 of this report.
                                                                                                                               •   Additional functions include member of the Supervisory Board of
                                                                                                                                   F. van Lanschot Bankiers, member of the Supervisory Board of
                                                               Utrecht, 15 February 2011
                                                                                                                                   ICare Productions, member of the Supervisory Board of Maastricht
                                                               The Supervisory Board
                                                                                                                                   University, member of the Board of the Praemium Erasmianum
                                                                                                                                   foundation, member of the Supervisory Board of VSB Fonds
26   NS Annual Report 2010                                                                                                                                                                                                                                                       27




                                                                                                                                                                                                         ‘...a very tense year’


     Report by                                                                                                                          control. At the same time, though, this does raise questions
                                                                                                                                        about the amount of strain that NS and the rail sector can
                                                                                                                                        take. Situations such as these take us to the limits of our
                                                                                                                                                                                                               This constitutes a threat to the continuity of HSA. There are
                                                                                                                                                                                                               ongoing discussions with the State about possible strategies
                                                                                                                                                                                                               for a solution to guarantee the continuity of HSA. This is not




     the Executive Board
                                                                                                                                        capabilities. The train is indispensable for transporting              just in view of the investment in the HSL South, but above all
                                                                                                                                        large groups of people to and from events safely. Flexible             in the interests of our passengers. The Minister informed
                                                                                                                                        cooperation with municipal authorities, the police and the             Parliament about this at the end of January 2011. The overall
                                                                                                                                        judicial authorities is very important for this. The cooperation       conclusion is that the returns from NS as a whole are still too
                                                                                                                                        with the municipal authorities in Amsterdam is a good                  low for the continuity of NS in the longer term. Our efforts
                                                                                                                                        example of this.                                                       to reduce the indirect costs are bearing fruit, though.
     Passenger transport increased slightly in 2010, although customer satisfaction                                                     Railway safety has never been compromised. The number                  Substantial provisions and write-downs that were made in
                                                                                                                                        of safety-related incidents went down once again in 2010.              2009 are no longer affecting the 2010 results.
     with our services was a little less positive. The operating result improved.                                                                                                                              One positive point is that we signed a new collective labour
                                                                                                                                            Cooperation between NS and ProRail                                 agreement for the next 27 months in December. This will
     We are looking back at what was a very tense year. There         The switchover to the alternative timetable also did not go                 intensified during the year under review                     let us keep working together on improving the company.
     were positive results during the year, as well as setbacks.      smoothly. We took that as a sign that additional measures                                                                                It is encouraging to see that we are moving with the times.
     The number of passenger-kilometres with NS increased             needed to be taken straight away. We are very grateful to         Fortunately, the ability to improvise is one of the strengths          Passenger transport by rail and the development and
     slightly, by 0.3%. Unfortunately, our passengers’ assessment     our staff, who did their utmost under difficult conditions        of our sector. The cloud of ash from a volcano in Iceland made         commercial operation of stations are attractive growth
     of our services could not be maintained at the same levels as    to provide the best possible service for our customers.           it almost impossible to fly over Europe for a few days in April.       markets with a substantial social significance, both in the
     2009. 75% of our customers gave us a score of 7 out of 10 or                                                                       We put on extra international trains to help large numbers             Netherlands and abroad. These markets are being liberalised
     higher in 2010, as opposed to 78% in 2009. This was primarily    Vulnerability                                                     of affected air passengers get to their destinations after             and making room for new entrants. We are also seeing that
     due to problems with heavy snowfalls in two successive           It is important that we work well with ProRail, because the       all. We received a flood of grateful responses to this. This           our direct competitors Deutsche Bahn, SNCF and Veolia are
     winters. Together with ProRail and an independent research       Dutch railways are heavily utilised and vulnerable. A single      included a medical courier with a very special air cargo: bone         strengthening their positions in the European arena.
     firm, we carried out a thorough investigation in 2010 into the   incident can have far-reaching consequences. We saw that in       marrow, intended for an operation on a leukaemia patient in            Deutsche Bahn’s takeover of the bus and train company
     causes of the lengthy disruptions in December 2009 and           the November for example, when a fire in the ProRail traffic      Glasgow. He got to his destination on time, via Thalys and             Arriva, which also operates in the north of the Netherlands,
     January 2010. ProRail and NS used this as the basis for a        control office in Utrecht paralysed rail traffic throughout the   Eurostar. Queen Beatrix, Crown Prince Willem-Alexander and             is a clear signal. The merger between Veolia and Transdev,
     winter plan, taking a wide range of measures varying from        central Netherlands. In July, a duck got trapped in the           his wife Princess Máxima were able to take a royal coach at            whose assets include Connexxion, is also significant. NS also
     making trains and points less susceptible to snow and frost,     swinging arm of the pantograph of a moving train, which           the very last minute to go to Denmark to attend the festivities        needs to grow if it is to stand its ground as an independent
     through to developing emergency scenarios for the logistical     then damaged the overhead power lines in the Schiphol             centred on the seventieth birthday of Queen Margrethe.                 player during this phase of consolidations. And fortunately,
     processes. Improvements were also made in the journey            Tunnel over a number of kilometres. The repair work meant         That required a bit of improvisation, because the coach had            we can. We have some trump cards, such as the quality of our
     information and the care and support provided for our            that two of the four tunnel tracks were out of commission         been taken to the Dutch Railway Museum just a few days                 operations and our market-leading levels of expertise.
     customers. Over the period up to 2012, NS will be investing      for months.                                                       earlier for an exhibition on royal travel.
     €50 million in this and ProRail €45 million. A timetable that                                                                                                                                             We are already giving our passengers and clients great value
     has been specially adapted for winter conditions was tested      On the public holiday for the Queen’s Birthday, a number          From the end of February through to the end of April, our              for money. Further expansion, improvement and speeding
     out successfully on Sunday 10 October. In December 2010, we      of passengers caused problems in the area to the north of         customers were affected by cleaners’ strikes at various stations       up our services in 2010 let use create new opportunities.
     had to deal with heavy snowfall yet again. Unlike last year,     Amsterdam by activating the emergency brakes. When                and in the trains, as a result of a conflict in the cleaning sector.   The introduction of high-speed transport and the public
     we were able to transport all our customers to their destina-    passengers also started walking along the tracks, the                                                                                    transport smart card have now set the standard even
     tions. However, proper journey information was not available     situation threatened to get out of hand. Thanks to the            Cooperation between NS and ProRail intensified during the              higher. All in all, the outlook for our company is positive.
     then, and too many of our newest trains developed faults.        actions taken by the local authorities, it all remained under     year under review. A joint Operational Control Centre for Rail         An important precondition, though, is that we must still
                                                                                                                                        (OCCR) was opened in Utrecht in October 2010. There are                continue to focus on our customers in the future. We must
                                                                                                                                        always over 300 staff from various rail companies on call to           not only keep improving the price to quality ratio, but must
                                                                                                                                        coordinate the handling of rail incidents. They make sure              also do so sustainably, with staff whose commitment and
                                                                                                                                        that passengers and freight companies are less inconven-               professionalism will make the difference. We tightened
                                                                                                                                        ienced by disruptions.                                                 up our strategy further in 2010, focusing on our ambition
                                                                                                                                                                                                               to become a customer-driven, national and European
                                                                                                                                        Perspective                                                            multimodal service provider.
                                                                                                                                        The operating result is €84 million higher than in 2009.               Logically, this tightening up of the strategy has led to more
                                                                                                                                        Some of our activities did however have to deal with reduced           focus on our core activities. For instance, we said farewell in
                                                                                                                                        demand. There is also a negative effect on the result from             2010 to our Strukton Groep business unit, which has a
                                                                                                                                        the concession fee that HSA has to pay for the use of the HSL          market-leading position in the field of rail infrastructure and
                                                                                                                                        South; this is high compared with the revenues generated.              construction. There was not enough synergy between the
28   NS Annual Report 2010 / Report by the Executive Board                                                                                                                                                                                                                        29




     activities of Strukton and those of the other business units. By   NS is number one. We would like to stay that step ahead. In        during a journey is therefore very important. Our journey           The success of new formats is clear. We like to offer the
     merging with Oranjewoud NV, Strukton can now look forward          2010, a PhD student at Rotterdam’s Erasmus University wrote        information and our website are essential for making sure all       widest possible range of shops and hospitality outlets at the
     to a healthy future with new opportunities for growth.             a thesis – with our cooperation – on a software programme          the journey options fit together smoothly. Our journey              stations, by setting up strong franchising formats such as
                                                                        that is capable of working out a new duty roster in just a few     planner does not only give train times, for example, but also       HEMA, Starbucks and Unox, as well as our own formats such
     Progress                                                           minutes in the event of disruptions. The methods used in his       lists the urban and local transport connections. The website        as Julia’s and Kiosk. 2010 saw the first branch of Sissy Boy
     In 2010, we worked on further improving and expanding              solution make changes to the staffing plan after a short           also gives practical information about pedestrian routes,           Homeland (interior decorating shops) open at Leiden station,
     our services. The introduction of the public transport smart       calculation period. We are convinced that we can use these         bicycle facilities, parking, taxis and rental cars.                 and the first Rituals (for personal care products) at Utrecht
     card was a step forward. Starting this year, season ticket         kinds of clever and innovative ideas to improve the services       OV fiets, the public transport bicycle hire company, grew           Centraal. Following on from the successful Try Out Festival in
     holders are also discovering the benefits of the card.             provided to our passengers yet further. For this reason, we        spectacularly in 2010 once again. The number of branches            Leiden in 2009, we organised festivals under the same name
     After a successful media campaign with the slogan                  are going to provide structural support for PhD students at        grew (to 226), as did the number of transactions (by 25%).          in September and October 2010 in Amersfoort, Groningen,
     ‘Gaat U ook om?’ (Are you switching too?), we reached              Erasmus University in their research. We signed an agreement       Customers appreciate how easy it makes their journey,               Leiden and Eindhoven. Polling stations were also set up at
     one million users in December. The teething problems need          with the University board of governors to this effect in 2010.     and it helps the environment too: research by the Fiet-             42 NS stations in June so that passengers and passers-by
     extra attention as people get used to the card - students                                                                             sersbond (the cyclists’ association) has shown that the public      could vote in the parliamentary election.
     and senior citizens in particular. However, demand for the         We have also been participating in the ITS lab since 2010.         transport bicycle is used instead of a car in 15% of cases.
     public transport smart card is exceeding expectations. The         This is a laboratory for information technology and science        Using 400 public transport bicycles for the Olympic athletes        Government
     introduction at NS is in stages, using pilot schemes. This is      run by Betapartners, a network in which institutions for           in Vancouver was front page news in 2010.                           2010 was a very tense year for politics as well. We are pleased
     because of the scale and the complexity. The crucial hurdles       secondary and higher education in the Noord-Holland region         Our share in Qbuzz has also made us a player in the bus             that the new Rutte Cabinet wants to retain in full the
     have now been taken and the technical systems are stable           collaborate with commerce and industry. The aim is to              transport segment. Qbuzz operates in the Rotterdam,                 €4.5 billion that the State has made available for a step up in
     and functioning. Usage of the card is ahead of the planned         encourage interest in technical and science subjects. Our          Friesland, Groningen and Drenthe regions.                           quality on the railways. NS has contributed towards that with
     schedule. NS is convinced of the convenience offered by            logistics department is closely involved in formulating and                                                                            a special dividend of €1.4 billion. On top of that, NS has also
     electronic payment for travel using the public transport           detailing the practical assignments.                               Urban portals                                                       paid out the income from the sale of Strukton as an extra
     smart card. This does not diminish the fact that the system’s      NS also wants to keep up its reputation as a ‘green’ and           Stations also play an important role in our customers’              dividend of €155 million for the Government. The coalition
     security needs to be tested continuously and tightened up.         socially aware company and seeks to improve its performance        door-to-door journeys. They are the domain of NS Poort,             agreement envisaged additional infrastructure charges and
     NS is working closely with TransLink Systems on measures           in this area. From 2010 onwards, our sustainability objectives     which focuses on the development and commercial operation           further commercial operation fees totalling over a hundred
     to combat fraud with the public transport smart card and           have been embedded in the company’s planning and control           of these transport hubs and their surroundings. Our customers       million euros per annum from 2015 onwards. NS will have
     to recognise new ways in which fraud could be committed.           cycle. This annual report represents another step towards          want to experience the station as a pleasant, safe and              to make up for this through greater efficiency. We are
                                                                        greater transparency in the management of the business:            comfortable changeover point. Good facilities such as parking,      going to try to achieve this without any negative effects
     In 2010, we once again ran a pilot scheme with ‘A train every      it is compliant with the GRI B standard.                           bicycle storage, bicycle rental and easy pedestrian routes are      for our customers and employees, but it is an extremely
     10 minutes’, this time for three weeks in September. During        Our investment efforts of €633 million in 2010 were aimed to       all important for this, as are comfortable waiting rooms, and       tough challenge.
     the morning and evening peak periods, there were six               a large extent at expanding and upgrading our train fleet.         possibly hospitality and retail facilities. We are working
     Intercity trains an hour on the Amsterdam-Eindhoven route          Over a quarter of our Intercity trains were equipped with          continuously on attractive and safe surroundings, for living,       Prospects
     and six local Sprinter trains an hour between Utrecht and          up-to-date journey information and free Internet in 2010.          working, learning and recreation. We are doing this in close        Given the uncertain situation in the market and the hesitant
     Geldermalsen. Passengers appreciate the extra travel               By the beginning of 2013, this should be the case for all          cooperation with ProRail, the municipalities concerned and          economic recovery, we expect limited growth in passenger
     options, but also experience the flip side, namely temporary       Intercity trains on the main through routes. A contribution        other partners. The more major stations are turning into            numbers in 2011 and we shall continue to keep a close eye on
     changes in their patterns of travel. Even so, experiments such     of €15 million from the Ministry of Infrastructure and the         dynamic urban portals with areas where people can spend             costs. Planned investments will continue. In addition, it is
     as these are essential. The aim is to obtain a precise picture     Environment helped to make this project possible.                  time and enjoy themselves. The large-scale renovation of what       extremely important that a solution is found for the worrying
     of the conditions that have to be met if the introduction          A large number of new local Sprinter trains were delivered in      are known as the New Key Projects (Arnhem, Breda, Den Haag          financial situation at HSA. It is also highly desirable that the
     of trains every ten minutes is to be structurally viable,          2010, meaning that our rolling stock fleet for shorter distances   Centraal and Rotterdam Centraal stations) is now in full swing.     situation regarding the extension of the main rail network
     particularly on the busy routes. In that regard, the pilot         has now been almost completely upgraded. Passengers are                                                                                concession from 2015 onward should be clarified. In the long
     generated a lot of relevant information. Increasing the            very happy with the level of comfort of these trains, but the      The economic situation has put pressure on property                 term, we still expect that demand for our services will pick up
     frequency ultimately leads to greater capacity on the track.       operational reliability in winter conditions fell badly short of   development around the stations. But stations still remain          again as the economy recovers, and that this will be reflected
     And our customers can travel confidently, without having           the mark. Our supplier acknowledged this too. The repairs to       attractive places for businesses. In 2010, we made agreements       in the results.
     to consult a journey planner or timetable.                         the new Sprinter trains were done under warranty and               with municipalities for the construction of a town hall at
                                                                        improved further during the summer. Our new double-decker          Beverwijk station and for the urban renewal around                  Utrecht, 15 February 2011
     Innovation                                                         trains also had problems during the winter. We will be tackling    Amsterdam Centraal, Breda and Geldermalsen stations.                The Executive Board
     The Dutch rail network is one of the most heavily used in          them before next winter, together with the manufacturer.           In Amsterdam, NS will be investing in retail and hospitality
     Europe. Running almost 5,000 trains a day to carry 1.1 million                                                                        sector facilities in the IJ Hall, under the bus station and under   A. Meerstadt MBA
     passengers is a world-class performance. In terms of the           Door to door                                                       the tracks. In Breda, we delivered our first property project       M. Niggebrugge
     efficiency of the logistics, we are in the top three (along        Our customers like to travel comfortably from door to door.        (the Apollo Hotel on Stationsplein).                                E.M. Robbe RA
     with Japan and Switzerland); in terms of cost efficiency,          Close cooperation with all the partners who play a part            Turnover from consumers at the stations rose by 4% in 2010.         Ms M.W.L. van Vroonhoven MBA
30   NS Annual Report 2010 / Report by the Executive Board                                                                                                                                                                                                                                                 31




     The essence of our strategy
     Vision                                                                                         With the growth in passenger numbers and attractive                                       Strategy                                                         Strategic themes
     People want to be able to travel around freely. Being able to                                  station areas, NS is making an ever more substantial                                      The course we have chosen – service first, costs down –
     move about freely is part and parcel of our society, and a                                     contribution to the sustainable solution demanded by                                      has made a major contribution to improvements in the
                                                                                                                                                                                                                                                               Themes with an ambition
     precondition for a growing economy. But how do we keep the                                     Dutch society for mobility problems.                                                      quality of our operations and the profitability of the
     Netherlands moving? It is getting increasingly busy. The roads                                                                                                                           company over recent years. We will keep to this course           The customer is king
     are full, and so we are looking for new, smart alternatives.                                   The train is making progress in other European countries                                  in order to strengthen the foundations of our company.           Without our customers, we are
                                                                                                    too. The train is a rapid, environmentally friendly alternative                           A post-tax return on investment of 7% is needed if we are        nothing. Their satisfaction determines
                                                                                                                                                                                                                                                               our success. We fulfil their wishes, in a
     We find them in the appropriate combinations of private and                                    to the car and the plane for medium-distance journeys and                                 to be able to keep investing in growth and quality.
                                                                                                                                                                                                                                                               friendly and hospitable way.
     public transport. It is not about choosing between the car                                     in urban agglomerations. The Netherlands is profiting from
     and the train, but rather about how to combine the two and                                     this too, thanks to its connection to the European high-                                           NS is spreading its wings                               We think from door to door
     about how to ensure that the train, car, bus, tram, metro and                                  speed network. We expect more competition at the
     bicycle fit together seamlessly. That means aligning them                                      European level. It would seem that the European transport
                                                                                                                                                                                                              beyond its home market                           The train is only part of the customer’s
                                                                                                                                                                                                                                                               journey. We therefore make the
     logically and integrating them into a single ‘movement’ that                                   market will come to be dominated by a limited number of                                                                                                    journeys to and from the station easy
                                                                                                                                                                                              Every decision that NS takes is based explicitly on the          and comfortable.
     provides a response to the ever-growing demand for rapid,                                      effective, multimodal service providers, partly through
                                                                                                                                                                                              expected impact on its customers. Our customers see safety
     efficient and sustainable transport options. This includes                                     mergers and acquisitions. This concentration can already
                                                                                                                                                                                              as an essential component of good service. Being able to         We work throughout Europe
     stations at strategic locations, making life easier – clean,                                   be discerned in the Dutch market, in the recent takeover
                                                                                                                                                                                              work safely is a prerequisite for everything that NS staff do.   Working internationally lets us learn
     safe stations at which you can easily change from one type                                     of Arriva by Deutsche Bahn and the merger between the
                                                                                                                                                                                              We want to provide excellent service that will generate          from the rest of Europe and lets us
     of transport to the next, have a quick cup of coffee and buy                                   French companies Veolia and Transdev (the holding                                                                                                          strengthen and improve our position
                                                                                                                                                                                              customer loyalty and promote the importance of the train as
     a paper. Or even buy your groceries.                                                           company for Connexxion, among others).                                                                                                                     in our own country.
                                                                                                                                                                                              a means of transport within society. Responding appropri-
     There will be more trains and faster trains on busy routes,                                    These companies operate regional train and bus concessions
                                                                                                                                                                                              ately to customers’ wishes and needs in logistically complex
     running to fixed timetables.                                                                   in the Netherlands.
                                                                                                                                                                                              situations is the fundamental strength of NS. This quality is    Success factors
                                                                                                                                                                                              the foundation on which we can realise our ambition.
     Modern information is the key to this mixed-mode journey                                       Mission and ambition                                                                                                                                       We can make the difference
                                                                                                                                                                                                                                                               together.
     from door to door. Passengers can call up journey infor-                                       The mission statement of NS is “to keep transporting more
                                                                                                                                                                                              With our public role as the basis, we want to continue           You and your professional expertise
     mation at any time and from anywhere using their phones,                                       passengers safely, punctually and comfortably via attractive
                                                                                                                                                                                              operating our concession for the main rail network in the        are what make NS. And each of us
     laptops or iPads. The system shows traffic jams and delays,                                    stations”. For NS, it is all about the customer’s journey.                                                                                                 can make a difference. NS is built on
                                                                                                                                                                                              Netherlands from 2015 onwards as well. We aim to have
     offers alternatives and changes the routes to suit. The result                                                                                                                                                                                            our desire to give passengers what
                                                                                                                                                                                              the concession granted to us by Dutch society.
     is flexible mobility that keeps the Netherlands mobile and                                     It is the ambition of NS to be a customer-driven, national and                                                                                             they want.maken wij samen NS.
     keeps destinations reachable.                                                                  European multimodal service provider.
                                                                                                                                                                                              Moving on from our home market, we are spreading our             We look after our environment
                                                                                                                                                                                              wings further into Europe. Expansion is indispensable for        We have made sustainable travel our
                                                                                                                                                                                              success in the longer term. As of 2010, international rail       business. Being careful with our
                                                                                                                                                                                              passenger transport is open to all. In order to be able to       energy consumption and our
     Growth and profitability in a European context                                                                                                                                                                                                            environment benefits everybody.
                                                                                                                                                                                              keep playing a significant role in the European market as
                                                                                                                                                                                              it becomes more liberalised, growth abroad is an essential
       The diagram to the right puts the                 15                                                                                                                                                                                                    We are cost-conscious
                                                                                                                              X-axis Turnover growth 2004-2009 (%)                            part of our strategy.
       growth and profitability of NS in                                                                                      Y-axis Operating result in 2009 (EBIT as a % of the turnover)                                                                    Passengers want value for money.
       perspective in a European context.
                                                         13                                                                                                                                                                                                    A cost-conscious approach will ensure
                                                                                                                                                                                              NS remains at the forefront of sustainable mobility, as a        that NS has a future.
       The size of each circle represents                11
                                                                                     Stagecoach                                       FirstGroup                                              sustainable carrier that is improving its energy efficiency
       the size of the turnover of each of
                                                         9                                                                                                                                    annually by 2% and as a sustainable employer. We want
       the companies; the colour shows                        DSB
                                                                        SBB      National           SJ                                                                                        to remain one of the most attractive employers in the
       whether it is a traditional rail                                           Express
                                                         7
                                                                                                                   Arriva                                                                     Netherlands and that is another reason for operating
       company or a private company                                                   Deutsche          NSB
                                                         5                            Bahn                                                                                                    sustainably.
       (grey and red respectively). NS is                                                                 Go-Ahead
                                                                                      NS
       shown in yellow for the sake of                   3                            Veolia
                                                                                                                                                                                              Strategic themes
       clarity. In 2010, Deutsche Bahn –                                                         Trenitalia                                                             Transdev
                                                         1                                                                                                                                    In order to focus the strategy clearly and forcefully, we are
       one of the traditional players in        X-axis                               SNCF
                                                         0                                                                                                                                    paying attention to six strategic themes, both internal and
       the market – took over the private        -10          0    10      20   30   40     50     60    70   80   90   100   110   120   130   140   150   160   170     210 220   230
                                                         -1                                                                                                                                   external. These themes are fleshed out within the business
       company Arriva, and Transdev
                                                                                                                                                                                              units, and the Group Council keeps an eye on the synergy.
       merged with Veolia.                               -3       Y-axis
32   NS Annual Report 2010                                                                                                                                                                                                                                                                                                 33




     Activity Report                                                                                                                                                           Lots of people consult their mobile phones
                                                                                                                                                                                          for the latest journey information

     The severe winter weather put pressure on the quality of services in 2010.                                                                                 its customers should give punctuality a score of 7 out                                     This was partly in response to the large number of
                                                                                                                                                                of 10 or higher.                                                                           complaints about journey information in the first months
     We made progress on the use of the public transport smart card and                                                                                                                                                                                    of 2010 with the severe winter weather.
                                                                                                                                                                Punctuality                                                                                A majority of our customers are satisfied with the informa-
     various developments at stations.                                                                                                                          % giving a score of at least 7 out of 10
                                                                                                                                                                                                                                                           tion provided during disruptions: 55% gave a score of 7 out
                                                                                                                                                                                                                                                           of 10 or higher. This is equal to our target of 55% for 2010,
                                                                                                                                                                60%                                                                                        but slightly lower than in 2009 (56%). This is partly due to
                                                                                                                                                                                                                                                           the substantial lack of information during major disruptions,
     Customer focus                                                  and the Environment. All the objectives in the plan are                                    55%
                                                                                                                                                                               56%
                                                                                                                                                                                                                                                           for example in December.
                                                                     expressed in terms of the minimum that is to be achieved.                                                                                                                     52%

                                                                     Generally, they take the form of the proportion of
     Three quarters of NS customers (75%) gave our services a                                                                                                   50%
                                                                                                                                                                                                                                                                 The scope of the journey
     score of 7 out of 10 or higher in 2010. This figure was 78%     customers giving a score of 7 out of 10 or higher for
     in 2009. The severe wintry conditions in the first quarter of   a particular quality aspect. In some cases so called                                       45%                                                                                               information has been extended
     2010 and in December had a negative impact on customers’        ‘process indicators’ are used, such as the proportion
     confidence in us. Our customers’ satisfaction did rise again    of trains running on time.                                                                                                                                                            Two new features are the central journey information officer
     quickly after the first quarter but we were unable to achieve                                                                                                            2009
                                                                                                                                                                              total
                                                                                                                                                                                              2010
                                                                                                                                                                                           1st quarter
                                                                                                                                                                                                            2010
                                                                                                                                                                                                         2nd quarter
                                                                                                                                                                                                                          2010
                                                                                                                                                                                                                       3rd quarter
                                                                                                                                                                                                                                        2010
                                                                                                                                                                                                                                     4th quarter
                                                                                                                                                                                                                                                   2010
                                                                                                                                                                                                                                                   total
                                                                                                                                                                                                                                                           and the national journey information controller. The central
     the overall level of 2009.                                      Overall satisfaction                                                                                                                                                                  journey information officer is an NS employee responsible
                                                                                                                                                                      % per quarter
                                                                     % giving a score of at least 7 out of 10                                                         % average per year
                                                                                                                                                                                                                                                           for providing timely and accurate journey information

            The percentage of satisfied                              80%
                                                                                                                                                                                                                                                           during national disruptions. The national controlling role is
                                                                                                                                                                The proportion of trains on the main Dutch rail network                                    filled jointly by NS and ProRail employees. The controlling
       customers fell from 78% to 75%                                               78%
                                                                                                                                                                running on time in 2010 according to the international                                     function ensures consistency in journey information mes-
                                                                     75%                                                                                75%
                                                                                                                                                                five-minute standard was 92.5%, slightly less than in 2009                                 sages relayed through different channels and promotes
     We distinguish between four customer segments. Each                                                                                                        (92.8%). Punctuality measured according to the three-minute                                cooperation between ProRail, NS and the other carriers.
                                                                     70%
     segment has a different pattern of travelling and differs in                                                                                               standard also fell slightly from 86.6% to 86.5%.                                           These functions have been introduced on a trial basis and
     what is expected from the services of NS. They also differ in                                                                                              The Operational Control Centre for the Railways (OCCR)                                     will be evaluated in the course of 2011.
                                                                     65%
     their evaluation of our services.                                                                                                                          came into operation in 2010. Here, ProRail and NS jointly
     The business segment is a small but growing group within                                                                                                   monitor national train services. In addition, NS has stream-                               The scope of the journey information during disruptions
     our 9 million customers. 78% of the people in this group                                                                                                   lined the organisation for adjusting train services in the                                 has been extended in collaboration with ProRail.
                                                                                   2009            2010          2010          2010          2010       2010
     gave our services a 7 out of 10 or higher. The social and                     total        1st quarter   2nd quarter   3rd quarter   4th quarter   total   event of disruptions by setting up five regional adjustment                                All messages now include information about the cause,
     recreational group of customers (a segment containing                 % per quarter                                                                        centres, which handle adjustments at the national level                                    the prognosis and advice.
     about 6.4 million customers) also shows above-average                 % average per year                                                                   together with the OCCR.
     satisfaction with our services (79%). Both groups of                                                                                                                                                                                                  Our website now shows the work being carried out on the
     customers tend to travel in off-peak periods. The commuter      Running on time                                                                            At 97.8%, the proportion of scheduled trains that ran was                                  railways at the time and any disruptions, including a graphi-
     segment consists of about 870,000 customers. They use the       The proportion of our customers giving punctuality a score                                 slightly lower in 2010 than in 2009 (98.0%). Most of the train                             cal display with an up-to-date railway map of the Nether-
     train very frequently and have a big effect on the overall      of 7 out of 10 or higher has been rising for years, from 23%                               cancellations were during the winter as a result of snow and                               lands. As of this year, the website not only shows up-to-date
     figure. This group in particular was less satisfied with        in 2002 to 40% in 2006 to 2007, to more than 50% in recent                                 ice. In July 2010 there were also broken overhead lines near                               departure times but also recommendations for alternative
     services in 2010 than in the previous year. The percentage      years. Satisfaction fell again in 2010. We suffered rolling                                Schiphol, and delays in November.                                                          routes in the event of disruptions. Our website also now
     of satisfied customers fell from 77% to 73%. 71% of             stock shortages in January and February because of the                                     The objectives remain unchanged: 93% of the trains must                                    gives door-to-door journey recommendations that do not
     schoolchildren and students were satisfied.                     wintry weather. The 2010 timetable started to perform well                                 run on time in 2011 according to the five-minute standard.                                 include the train. Increasing numbers of companies and
                                                                     from March onwards and various punctuality records were                                    Moreover, 98.5% of the scheduled trains must actually run.                                 event organisers are making use of the option of showing
     The objectives for quality and growth on the main Dutch         broken. Performance worsened again in the final quarter.                                                                                                                              NS journey information on their own website.
     rail network have been incorporated in our Transport Plan,      Even so, in 2010 52% of our customers still gave a score                                   Providing information and services
     the Vervoerplan. This plan, which NS draws up every             of 7 out of 10 or higher for punctuality (56% in 2009).                                    High priority was given in 2010 to improving journey                                       Lots of people consult their mobile phones for the latest
     year, has to be approved by the Ministry of Infrastructure      NS’s target for 2011 and beyond is that at least 53% of                                    information for our customers during severe disruptions.                                   journey information. In 2010 the Journey Planner Xtra was
34   NS Annual Report 2010 / Activity Report                                                                                                                                                                                                                                                                              35




     introduced for the iPhone and Android telephones. This                                     In 2010, we installed journey information screens in a                             NS Security Centre                                                  has been simplified thanks to the digitisation of the camera
     means that most mobile telephones can use this application.                                hundred Intercity coaches. In 2011 they will also be installed                     The NS Security Centre coordinates the deployment of the            systems. Increasing numbers of stations will be connected up
     The Journey Planner Xtra allows customers to monitor their                                 in the double-decker trains. Eventually 365 train sets will be                     service and safety teams and security staff, calls in public        to this system in the years to come. It will also be possible to
     journey, save favourite journeys and get up-to-date recom-                                 equipped with the screens. The screens in the train show                           sector emergency services if necessary and assists front-line       survey the situation at holding sidings, for instance, and in
     mendations for the door-to-door journey.                                                   up-to-date arrival and connection information including                            employees by providing information. The total number of             trains in the future.
                                                                                                up-to-date departure and arrival times.                                            reports rose from 46,213 in 2009 to 53,312 in 2010.
     Information on disruptions                                                                                                                                                                                                                        Access gates for the public transport smart card
     % giving a score of at least 7 out of 10
                                                                                                                                                                                   Aggression and violence reports by category in 2010                 Over the past year the Service Centre has provided useful
                                                                                                                In 2010 NS installed journey information
                    56%                                                                                                                                                                                                                                assistance in trials for remotely opening and closing dates at
                                                                                        55%
     55%
                                                                                                   screens in a hundred Intercity coaches                                                                                           264                stations. 20% of the transfer capacity can be secured in this
                                                                                                                                                                                                   493                                                 manner. Stations on the Flevo line are already closed off at
     50%
                                                                                                The developments in the area of up-to-date (i.e. dynamic)                                                                                              night by closing the gates. Increasingly, the services of the
                                                                                                journey information are part of the reason for no longer                                                                                  170          Security Centre are called upon during events and/or distur-
     45%
                                                                                                issuing the timetable in printed form in 2010. It is still                                                                                             bances to actively monitor transfer capacity at the gates.
                                                                                                possible to download a digital version of the timetable from
     40%
                                                                                                the Internet. Customers without access to the Internet can
                                                                                                                                                                                                         149
                                                                                                                                                                                                                                     132                       NS seeks to continually improve
                                                                                                request a printed version of the timetable from us.
                                                                                                                                                                                                                 70         150                                            its safety performance
                   2009            2010          2010          2010          2010       2010                                                                                           fights
                   total        1st quarter   2nd quarter   3rd quarter   4th quarter   total
                                                                                                Contributing to personal safety                                                        physical violence towards staff
                                                                                                                                                                                                                                                       Railway safety
           % per quarter                                                                        Our customers feel safe on the train and at the station.                               threats of physical violence towards staff                      The train is one of the safest means of transport. NS does
           % average per year
                                                                                                78% of passengers gave a score of 7 out of 10 or higher                                physical violence to passengers                                 everything it can to keep it that way and make improve-
                                                                                                for the feeling of safety, which is about the same as in 2009                          threats of physical violence towards passengers                 ments where possible. The number of trains passing red
     Approachability of customer service representatives                                        and 2008. This is an average score over the entire day.                                threats/provocation/verbal aggression towards passengers        signals fell in 2010 to 205 from 248 in 2009, partly due to the
                                                                                                The 2011 Transport Plan includes as one of its targets that                            threats/provocation/verbal aggression towards staff             introduction of an improved version of the automatic train
     % giving a score of at least 7 out of 10
                                                                                                at least 78% of customers must give a score of 7 out of 10 or                                                                                          protection system. Fortunately, there were no fatal injuries
     65%                                                                                        higher for personal safety.                                                        This increase does not necessarily mean there were more             in 2010, although some passengers and staff did sustain
                    63%
                                                                                        62%     Special service and safety teams provide immediate backup                          incidents; it also shows that people are finding it increasingly    minor injuries in 2010 as a result of collisions and derail-
     60%                                                                                        for employees involved in incidents with passengers. All                           easy to contact the Security Centre. The reports also include       ments. There were also a few passengers who sustained
                                                                                                members of these teams have special investigator status.                           matters such as graffiti, assistance to passengers and              injuries while getting on or off the train. NS thinks every
     55%                                                                                        They are authorised to use force (BOA GB), are equipped                            requests for information from passengers.                           injury to a passenger or employee is one too many and seeks
                                                                                                with handcuffs and are authorised to frisk for identity                                                                                                continually to improve its safety performance. Its ultimate
     50%                                                                                        documents. Since the start of 2010 there are also three teams                      Nearly 3% of the reports to the Security Centre concern             goal is zero accidents. That is why a Safety Masterplan
                                                                                                available for deployment throughout the country for                                aggression and violence (the same as in 2009).                      2011-2015 was drawn up in 2010. All accidents are investi-
                                                                                                non-standard situations.                                                                                                                               gated with the help of the Transport and Water
                   2009            2010          2010          2010          2010       2010
                   total        1st quarter   2nd quarter   3rd quarter   4th quarter   total                                                                                      Collaboration with the Railway Police                               Management Inspectorate, and in all cases appropriate
                                                                                                Personal safety                                                                    Once again, collaboration with the Railway Police went well         measures taken to prevent any recurrences.
           % per quarter
           % average per year
                                                                                                % giving a score of at least 7 out of 10                                           in 2010, both during national and international football
                                                                                                                                                                                   matches and during national and regional events such as the         Working conditions
     Digital journey information screens are now hanging on the                                 80%                                                                                celebratory welcome for the Dutch national football team            In 2010, 0.25% of sickness absence was due to accidents at
                                                                                                               78%                                                         78%
     platforms and in the station concourses of a large number                                                                                                                     after the World Cup and SAIL 2010. The major events in 2010         work (2009: 0.05%). The total number of accidents resulting
     of stations in the south of the Netherlands and in Alkmaar                                 75%                                                                                went smoothly for NS with the exception of the occasional           in absence was 220 in 2010 (2009: 123). When expressed per
     and the surrounding area. More stations will follow in 2011.                                                                                                                  incident. Regular surveillance actions were carried out jointly     million hours worked, this gives a Lost Time Injury rate of
     A trial is taking place at three stations (Amsterdam Centraal,                             70%                                                                                with the Railway Police and NS started the ‘spitting incidents’     6.5 (2009: 3.8). We think this is too high. The safety policy
     Amsterdam Amstel and Amsterdam Bijlmer Arena) in                                                                                                                              pilot project. Collaboration with the various regional police       of NS focuses on continual reduction in the number of
     which camera images are being used to improve the                                          65%                                                                                forces is less structural, which sometimes leads to unnec-          accidents at work and the number of days of sickness
     timing of public address system messages. The trial will                                                                                                                      essary delays in train services. This requires further attention.   absence as a result of accidents. This reduction was not
     be evaluated in 2011.                                                                                                                                                                                                                             achieved in 2010. However, various improvements were
                                                                                                              2009           2010        2010        2010        2010      2010
     In November, a new counter planner was introduced; this                                                  total        1 quarter
                                                                                                                            st
                                                                                                                                       2 quarter
                                                                                                                                        nd
                                                                                                                                                   3 quarter
                                                                                                                                                    rd
                                                                                                                                                               4 quarter
                                                                                                                                                                th
                                                                                                                                                                           total   In 2010 extra cameras were installed in and around the seven        made in the reporting and registration process in the course
     enables customers to be given up to date journey recom-                                                                                                                       largest stations and existing systems were replaced.                of 2010, which explains part of the increase. The number of
                                                                                                      % per quarter
     mendations at the counter for the best next connection.                                          % average per year                                                           The exchange of images between NS, the police and ProRail           days of sickness absence associated with accidents at work
36   NS Annual Report 2010 / Activity Report                                                                                                                                                                                                                                                                  37




                                                                                                                                                                                                  ‘Your waste: an unwanted gift to the station’

     fell from 4,798 up to the end of 2009 to 3,975 up to the end                       Providing clean trains and stations                                                •			 he
                                                                                                                                                                              T      train footboards are also being kept as free         The partnership with Greenwheels has been intensified
     of 2010. This fall is because the accidents were less serious.                     The targets for clean trains and stations were not met in 2010                       as possible of snow and ice and the floors are receiving     further. Holders of an NS Business Card can now reserve one
                                                                                        due to disappointing performance in the first half of the year.                      extra attention.                                             of the 400 Greenwheels cars. They can easily access their car
     Creating sufficient transport capacity                                             53% of passengers gave us a 7 out of 10 or higher for the                                                                                         using their card. The bill is sent afterwards.
     We did not meet the standard for customer satisfaction                             cleanliness of trains and stations (57% in 2009).                                  One of the targets included in the Transport Plan for
     with the available space in trains during peak periods:                            This reflects the effects of wintry weather in January through                     2011 states that at least 55% of our customers must give       40% of rail passengers cycle to the station. Consequently, it is
     69% of passengers gave a score of 7 out of 10 or higher                            to March in combination with nationwide strikes in the                             the cleanliness of trains and stations a score of 7 out        essential to have good bicycle storage facilities. The number
     (71% in 2009). When the day as a whole is considered,                              cleaning sector from January through to April. Amsterdam                           of 10 or higher.                                               of places increased by 50,000 in 2010. In total, facilities are
     76% of passengers give a score of 7 out of 10 or higher                            Centraal station in particular became dirty. NS staff got to                                                                                      now provided for customers for the storage of over 340,000
     for the available capacity. This is one percentage point less                      work cleaning to deal with the worst of the mess themselves.                                                                                      bicycles, including guarded facilities for 115,000 bicycles.
     than in 2009 (77%).                                                                In 2010, NS, ProRail and other public transport companies                          Quality of service                                             NS Fiets, part of NS Poort, plays an important role here.
                                                                                        participated in the ‘Clean Netherlands Week’ to make it clear
     Overhauls                                                                          that there is no place for stray litter in public transport.                       In this section we shed light on some developments aimed       ProRail has made agreements with the relevant public
     The NS train fleet underwent further ‘rejuvenation’ in 2010.                       We asked our passengers to dispose of their waste in the                           at extending services in the Netherlands and on the main       authorities and NS about further improvements and
     Over the past year, 84 new trains of the Sprinter Light Train                      waste bins, under the motto ‘Doe het station je afval niet                         Dutch rail network.                                            additions to the bicycle storage facilities at stations.
     (SLT) class have started operation. Many of the oldest local                       cadeau’ (Your waste: an unwanted gift for the station).                                                                                           The huge demand for additional storage spaces necessitates
     trains (Mat 64) and double-decker trains (DDM 1) have been                                                                                                            The door-to-door journey                                       extra measures. Bureau Berenschot, in partnership with NS,
     taken out of service as they have reached the end of their                         Cleanliness                                                                        We want to serve our customers during the journey              ProRail, the Ministry of Infrastructure and the Environment
     technical service life. The new Sprinter trains are built for                      % giving a score of at least 7 out of 10                                           to and from the station as well, providing them with the       and the Stedenbaan region, produced an advisory report for
     transport over relatively short distances.                                                                                                                            right journey information and with good parking and            a nationwide action plan to solve the problems. This advisory
                                                                                        60%
                                                                                                                                                                           bicycle facilities.                                            report will be discussed with the Dutch parliament and the
                                                                                                       57%
     Upgrades                                                                                                                                                                                                                             Nationaal Mobiliteitsberaad (national mobility council) in
                                                                                        55%                                                                        55%
     The upgrade of Intercity trains of the Koploper class is in full                                                                                                      Anyone can plan their journey themselves at home using the     2011, and it should lead to a ‘future-proof’ approach to
     swing. The last upgraded train set of the ICM III class was                                                                                                           NS website and public transport journey information. All the   operation and management. The municipality of Utrecht
                                                                                        50%
     delivered in April 2010. The ICM four-coach sets are currently                                                                                                        connections with buses, trams, metro trains, other forms of    gave instructions at the end of 2010 for ProRail and NS to
     being upgraded, with 24 of the 50 sets being upgraded by                                                                                                              transport and pedestrian routes around stations can be seen    work out an approach for the 22,000 new bicycle storage
                                                                                        45%
     the end of 2010. The remaining sets will be delivered in 2011.                                                                                                        at a glance. This customised information makes public          spaces at Utrecht Central station.
     A decision has also been taken to upgrade the 240 existing                                                                                                            transport an easier option. Journey information for urban
     double-decker coaches and motor coaches of the DDAR class.                                                                                                            and regional public transport has been fully integrated into          40% of rail passengers
                                                                                                      2009           2010        2010        2010        2010      2010
     The coaches will undergo an overhaul in the period between                                       total        1 quarter
                                                                                                                    st
                                                                                                                               2 quarter
                                                                                                                                nd
                                                                                                                                           3 quarter
                                                                                                                                            rd
                                                                                                                                                       4 quarter
                                                                                                                                                        th
                                                                                                                                                                   total   the NS Journey Planner on our website.                                        cycle to the station
     the end of 2011 and mid 2013.                                                            % per quarter
     NS Reizigers is hiring out 38 Intercity coaches to NS Hispeed,                           % average per year                                                           Our customer service staff at the mobile information stands    The core business of OV-fiets is bicycle hire and it has
     which enables the latter to let them extended service on the                                                                                                          at stations are pleased to provide information about trains,   developed to become the leading flexible bicycle hire
     HSL South.                                                                         NedTrain is responsible for clean trains and has initiated                         buses, trams and the metro. Bus drivers working for Qbuzz in   option in the Netherlands. The number of OV-fiets bicycle
                                                                                        various actions aimed at raising quality. Despite these                            Rotterdam and the three northernmost provinces can also        trips increased by 25% in 2010. There was growth in both
     Peak period seating capacity                                                       efforts, the scores remained low right up to May. Perform-                         provide information about trains. There are panels at bus      the business market and the consumer market. An OV-fiets
     % giving a score of at least 7 out of 10                                           ance improved from June onwards and is now at the desired                          stations showing information about the trains at seven         ticket machine was introduced at Den Bosch station.
                                                                                        level. This is thanks to the following actions:                                    stations in the province of Noord-Holland and at Almere        You can take out a subscription immediately at the ticket
     75%                                                                                •			 ollaboration
                                                                                           C                       with the cleaning partners to draw up a                 station. The plan is to place such panels at another fifty     machine, pay for it and ride off on an OV-fiets bicycle.
                                                                                          new cleaning programme based partly on the wishes of                             major stations over the next few years. In 2010, ProRail
                    71%
     70%                                                                        69%
                                                                                          customers. This has led to a visible improvement in                              undertook to carry out the installation, management and        NS, KNV (the employers’ organisation for the transport
                                                                                          quality. The new cleaning programme is expected to have                          maintenance of these panels at all stations where the          sector) and a number of taxi companies started a pilot
     65%                                                                                  a positive effect on customer satisfaction figures in 2011.                      funding has been arranged by the parties involved. Funding     project with the NS Zonetaxi at five stations. Passengers who
                                                                                        •			 ore
                                                                                           M        attention was paid in the second half of 2010 to                       is already in place for the Stedenbaan stations (stations in   arrive by train at the station after 9 o’clock can take a taxi at
     60%                                                                                  urgent cleaning requirements. For instance, changes have                         the southern Randstad conurbation).                            special zone rates for the last (local) part of their journey.
                                                                                          been made at a number of locations to the times at which                                                                                        Depending on the evaluation and results, NS and KNV will
                                                                                          this cleaning takes place. Investigations are also under                         NS offers discounts on parking rates in station areas.         decide what subsequent steps to take. This may include
                   2009           2010        2010        2010        2010      2010
                   total        1 quarter
                                 st
                                            2 quarter
                                             nd
                                                        3 quarter
                                                         rd
                                                                    4 quarter
                                                                     th
                                                                                total     way to see what changes need to be made to processes                             The use of paid parking spaces in the vicinity of stations     nationwide introduction in 2011.
                                                                                          to ensure a quicker response to requests for urgent,                             increased in 2010. At the same time, the capacity of free      We want to be able to keep offering more services for chain
           % per quarter
           % average per year                                                             essential cleaning.                                                              Park-and-Ride locations was increased.                         mobility via the public transport smart card. NS season ticket
38   NS Annual Report 2010 / Activity Report                                                                                                                                                                                                            39




     holders can use their NS public transport smart cards at eight      Houten Castellum and Emmen Zuid stations came into              the service. Market research shows that 76% of passengers
     Park & Ride sites and have their parking discounts deducted         operation with the new 2011 timetable – from mid-               find the public transport smart card more convenient than
     directly. This service will be extended to all paid Park & Ride     December 2010 – while the name of Tilburg West station          paper tickets. Passengers also seem to be increasingly
     sites over the coming years. It is also our intention to make       has changed to Tilburg University.                              appreciating the services surrounding the public transport
     OV-fiets, Greenwheels and the NS Fiets bicycle storage                                                                              smart card. They are more positive than they were about the
     facilities accessible to season ticket holders using the public     Action plan as a stimulus                                       process of requesting and activating the cards, and about
     transport smart card in 2011.                                       The Government presented the ‘Actieplan Groei op het            the level of expertise of NS staff. 63% of passengers give
                                                                         Spoor’ (Growth on the Railway action plan) more than three      the preliminary process a score of 7 out of 10 or higher.
     Developments in the timetable                                       years ago. The previous Cabinet introduced a stimulus fund      Both chief guards and customer service staff receive a score     NS carries 1.1 million customers every
     These are the main developments in the timetable in 2010            of €200 million to help provide an impulse to the main          of 7 out of 10 or higher from most passengers.                   day, and that gives it an obligation to be
     compared with 2009:                                                 Dutch rail network within the Government’s term of office                                                                        friendly and hospitable. For years, our
        T
     •			 wo    new stations - Amsterdam Science Park and Nijverdal      (2008 2012). It was a one off boost, and all the parties        Continual improvements in dialogue with                          guiding principle has been clean, safe,
        West - were included in the timetable for 2010. Maarheeze        involved – such as NS, ProRail and the regional authorities     our customers                                                    modern trains that run on time. In 2010
        station was opened in June 2010.                                 – were expected to make a financial contribution. Elements      The process of continual improvements to the services            alone NS invested €633 million, mainly in
     •			 n
        A      Intercity service running twice an hour (from Monday      of the plan that have been realised are the Schiphol-Lelystad   through the public transport smart card takes place in close     new and upgraded trains Whereas only
        through to Saturday until about 20:00) was added on the          Intercity trains, an off-peak discount pass for former          dialogue with our customers (and consumer organisations).        four out of ten customers gave us a score
        route between Schiphol and Lelystad Centrum.                     students, the increase in the numbers of parking spaces at      NS receives many tips through its online forum ikchip.nl.        of 7 out of 10 or higher ten years ago,
     •			 he
        T       concession for the train service between Gouda and       various locations, the nationwide action plan for removing      NS uses them as input for the continual improvements to          that number has risen in recent years to
        Alphen aan den Rijn was awarded by the province of               ‘orphan’ (unclaimed) bicycles and a substantial increase in     its services. Since September 2010, NS is making things even     three quarters, though unfortunately
        Zuid-Holland to NS through private tender. More trains           the number of bicycle stands at stations. The Ministry held     easier for holders of an off-peak discount pass. They receive    with a dip in the winters of 2009 and
        were put on during the peak period on request by the             a Midterm Review of the action plan at the start of 2010.       their season ticket on a public transport smart card with        2010. Many customers are unhappy with
        party granting the concession.                                   The focus for the remaining period of the action plan was       everything arranged for them, and they no longer have to         the occasional blips in journey informa-
     •			 he
        T       contract with the Directorate-General for Public Works   defined more sharply. The Ministry freed up additional          request and activate the stored-value card for travelling.       tion in particular. It is only logical that
        and Water Management for extra stops by Intercity trains         budget, making a sum of €144 million available for the          The card is set ready for use as a stored-value card when        customers want to know what the
        in Best ended in April and was not renewed.                      period 2010 to 2011. In 2010, NS started installing Internet    existing season tickets are renewed. Season-ticket holders       situation is. That is why NS will be
     •			 t
        I     was also decided in April to reduce the trial with night   connections in Intercity trains. Work has started on develop-   then do still need to activate the card at a ticket machine or   making even more investments in up
        trains between Rotterdam Centraal and Utrecht Centraal           ing a children’s pass and a culture pass for schoolchildren.    counter. Furthermore, it is now very easy for passengers with    to date journey information in the years
        (via Gouda) from 3 to 2 nights a week. Retaining this                                                                            public transport smart cards to switch from first-class to       to come. The customer is also king at
        service in the night from Thursday to Friday turned out to       Public transport smart card introduced                          second-class or vice versa for a day at the ticket machine.      NS stations, which offer an increasingly
        not be viable.                                                   The public transport smart card means that there is a single                                                                     wide range of shops, restaurants,
     •			 he
        T       national timetable was modified on 13 July to allow as   card for trains, trams, buses and the metro. NS initially       Gates                                                            sandwich bars, coffee shops, meeting
        many fans as possible to attend the celebratory welcome          introduced stored-value cards for passengers who have an        There are currently gates at 26 stations in the Netherlands;     facilities and entertainment. This is
        of the Dutch national football team, runners-up in the           anonymous public transport smart card. Since 2010, the          we will be extending that number from mid-2011. Most of          clearly appreciated as passengers spent
        World Cup, in Amsterdam.                                         1.2 million holders of a Voordeelurenabonnement                 the gates are still permanently open so that passengers with     four percent more at stations in 2010
     •			 he
        T       overhead lines in Schiphol also suffered severe damage   (off-peak season ticket) and people with their own public       a paper ticket can also enter the station. NS expects to close   despite the economic crisis. NS Poort
        on 13 July, which meant NS had to work with an amended           transport smart cards from other carriers have also been        all the gates at the end of 2012. NS will gradually be closing   plays a central role in the customer’s
        timetable for several months, with an adverse affect on          able to travel with NS using these stored-value cards.          gates at different stations in the period between now and        journey at the more than 380 stations
        punctuality.                                                     Use of the public transport smart card has been promoted        full closure of all the gates. The extent and speed of these     in the Netherlands.
     •			 n
        I     September the service between Eindhoven and                since May 2010 through the mass media campaign                  closures will depend partly on the number of NS passengers
        Amsterdam Centraal was modified as part of the ‘A train          ‘Are you switching too?’. This campaign is bearing fruit.       using the public transport smart card.
        every ten minutes’ pilot scheme. There were six Intercity        1 million passengers had ‘switched’ to the public transport
        trains an hour instead of four during the peak periods           smart card by the end of 2010.
        between Eindhoven and Amsterdam Centraal, and six                NS will take some important further steps in 2011, adding       Personnel and organisation
        Sprinters an hour rather than four between Geldermalsen          more season tickets to the card, introducing travelling using
        and Utrecht Centraal.                                            a stored-value card for students and offering the NS Business   Our people make the difference in providing a good
        A
     •			     practice run for a virtual wintry day was held on          Card as a smart card.                                           service for our customers. That is why NS made substantial
        10 October, with a modified, robust timetable that could                                                                         investments again in 2010 in its staff and labour relations.
        easily be adjusted. Both the practice run for the winter         Customer satisfaction                                           We also focused on communication with the job market
        timetable and ‘A train every ten minutes’ involved close         There are not only are more people travelling with the public   as we aim to have a positive image as an employer among
        collaboration with ProRail.                                      transport smart card, but they are also more satisfied with     people outside NS.
40   NS Annual Report 2010 / Activity Report                                                                                                                                                                                                                                          41




     In 2010, NS drew up a social agenda for the years ahead             Collective labour agreement for the period to 2013                It offers training focused on leadership, professional             Ideally, our workforce should reflect the composition of
     with eight strategic priorities. They include subjects such         Negotiations for a new NS collective labour agreement             expertise and the ability to network within NS. Much of the        society. Consequently, recruiting and retaining women and
     as leadership development, diversity and strategic staff            started in the autumn. In preparation for this, three strategic   training takes the form of a fixed curriculum for specific         multicultural talent, particularly in more senior positions,
     planning. Developing professional expertise and the vitality        conferences with trade unions were organised in 2010.             target groups, while specific training activities are offered      is one of the priorities of our diversity policy.
     of both individual employees and the company as a whole             They were appreciated by all the participants and were            in response to new developments.
     are key elements. Accordingly, particular attention will be         instrumental in providing information about the challenges                                                                           As part of its activities for the Talent to the Top Charter,
     given in the years ahead to encouraging this professional           NS is facing in the years ahead. At the start of December,        As part of this, NS Opleidingen (NSO) educates professionals       NS undertook to ensure more women are promoted to
     expertise, modernising employment conditions and                    an agreement was concluded with negotiators from all the          for the frontline processes. The Techniek group provides           senior positions. These efforts have been successful. In
     relations, working on organisational values and conduct, and        trades unions involved for a new collective labour agreement      training for drivers (for NS Reizigers) and service and            2010, women held 23% of our senior management positions
     developing an international HRM policy and an appropriate           covering the period from 1 November 2010 to 1 February            maintenance engineers (for NedTrain). The Service &                (2009: 21%) and 22% of the positions in the management
     employer branding strategy.                                         2013 (27 months).                                                 Logistiek group provides training for customer service and         level below (2009: 20%). We will obviously be seeking to
     The total number of jobs (full time equivalents) at NS fell                                                                           safety staff, guards and chief guards. In addition to this basic   promote even more women into senior management
     from 30,068 at the end of 2009 to 23,630 at the end of 2010.        Management development                                            training, NSO also provides training in the areas of planning      positions in the years to come.
     This fall is primarily due to the sale of Strukton ( 6,215 FTEs).   Management development plays a key role in realising              and logistics, and personal safety, as well as engineering
     In addition, efficiency measures led to a reduction of approx-      the ambitions of NS while keeping an eye open for talent.         courses for specific rolling stock. The Organisatie-
                                                                                                                                                                                                              Women at NS
     imately 600 FTEs while the acquisition of the Overijssel and        NS seeks to identify suitable successors in good time for the     ontwikkeling en Advies group contributes to the devel-
                                                                                                                                                                                                                                          2009       2010          2010       2013
     Veluwe bus concessions by Syntus led to an increase of              key management positions and other crucial positions within       opment of the business units in terms of working, learning         Women at NS in:       realisation     target   realisation     target
     approximately 300 FTEs.                                             the company. It is also important for the longer term to          and changing. Over the next few years NSO will develop into        Senior management          21%        21%           23%         23%
     In April 2010 the biannual survey of employee involvement           invest in the quality of our organisation and our employees.      a professional school for the entire public transport sector:      Level below senior
     was once again carried out among our staff. This year               The systematic process of discovering and evaluating              the Rail College. In 2010 it was agreed that NS would              management                 20%        21%           22%         24%

     9,400 NS employees took part, 400 more than in 2008.                talented individuals within the organisation takes place          investigate the different options. Other stakeholders in the       Management devel-
                                                                                                                                                                                                              opment programmes          53%       > 30%          48%        > 30%
     They now give their company a score of 7.4 out of 10                through the so-called management development reviews,             public transport sector will also be invited to join. The Rail
                                                                                                                                                                                                              Trainee programmes         50%        50%           52%         50%
     (2008: 7.3), which is above the national average.                   which are held at all levels. Performance and development         College will concentrate on five areas of expertise: training
     The pleasure they get from their day-to-day work in                 are discussed in these reviews, and possible new jobs             for drivers, customer service and personal safety, logistics,
     particular remains considerable. Internal communication             considered. We develop talent through learning on the job,        rail infrastructure and rail vehicle maintenance.                  We feel it is important to have an organisational culture in
     about our strategy was further intensified in 2010.                 dedicated management development and other training                                                                                  which there is respect for employees who belong to a
                                                                         programmes, and active supervision of our people.                 Professional expertise                                             minority through their background or beliefs. Individual
         NS has worked on improving relations                                                                                              Professional expertise is a priority. This means having staff      contributions and qualities are more important than gender,
                                                                         Talent                                                            who have the necessary expertise, as well as customer skills       background, age or ethnicity. Discrimination occurs in our
                  within the cleaning sector
                                                                         Talented young individuals are given a traineeship as part        and are able to continue to do their job well in the long term.    society and NS is no exception. In May 2010 NS organised the
     Labour affairs                                                      of our Young Talent Programme. These talented individuals         Professional expertise and customer focus are of strategic         ‘Openness in a colourful working environment’ conference.
     NS was badly affected by the protests in the cleaning sector        are supervised by a manager and are given a senior manager        importance to NS. Staff can deliver top-quality performance        The aim was to break taboos at work.
     in 2010. The conflict between employers and employees in            as mentor. They are given a position with responsibility, such    if they can do their job well, and this helps NS to fulfil
     the cleaning sector was fought ‘in our back yard’.                  as team manager, controller, procurement officer, project         its mission.                                                       Recruitment
     In 2010, NS joined forces with Schiphol airport in an               manager or customer service manager in one of the NS              The definition of the new style of professional expertise          There were 391 new job vacancies at NS in 2010, of which
     initiative for structural improvements in relations within          business units. In 2010, 21 Young Talent Programme                used by NS is taking pride in producing good work and              203 were filled by internal candidates in the year under
     the cleaning sector. We are playing a leading role in the           candidates (of whom 52% were women) were put in such              continually seeking to improve your performance. Customer          review. If jobs that became vacant before the start of the
     creation of a code for clients, employers and employees.            positions. We have had a separate, successful traineeship         focus means putting the customer first in everything you           year under review are included, a total of 250 vacancies
     In 2010 various HRM services, such as reporting in sick or          program since 2009 for IT and technical professionals.            do. And that implies pride, commitment, enthusiasm and             were filled by internal candidates in 2010.
     reporting a recovery, were incorporated in a digital                Career paths are being mapped out for various disciplines         motivation both for your own work and for the organisation
     self-service system for HRM matters. We are working on              in order to be able to provide talented individuals with          you are working for.                                               NS is seeking to become and remain attractive to young
     setting up an international Centre for Expertise to provide         attractive career prospects at NS and to align succession                                                                            people partly in view of its ageing workforce. We are
     proper support through HRM for NS’s strategy outside                planning. In 2010, the career paths for P&O jobs and project      Diversity                                                          pleased to report that we became more popular among
     the Netherlands.                                                    and programme management were drawn up.                           Diversity is also important. As a major employer, NS is highly     university graduates and graduates of applied science
     In 2010, NS concluded group health insurance contracts                                                                                visible in society. And society attaches importance to             universities in 2010. We rose to the 32nd position
     with Avéro and Agis, which NS staff and pensioners will be                The NS Academy was set up in 2010                           diversity as evidence that people have equal opportunities;        (from 45th in 2009) in the annual Intermediair Imago
     able to make use of from 2011 onwards. The new contracts                                                                              and NS agrees with this viewpoint. NS also sees it as              Onderzoek, a corporate image survey. In 2010 we invested
     offer the insured more flexibility. At the same time NS will        Training and development                                          important for continuity in the longer term. With increasing       in an upgrade to our website werkenbijns.nl for potential
     be collaborating more closely with the insurers in the area         The NS Academy was set up in 2010 to combine all the              shortages in the labour market, it is important to remain an       employees. We also introduced ourselves to people in
     of healthcare management.                                           internal training programmes in an effective manner.              attractive employer for all groups within society.                 higher education at more than 25 campus activities in 2010.
42   NS Annual Report 2010 / Activity Report                                                                                                                                                            43




     Once again, a Talent Clinic was held in 2010 to recruit        ‘fitness week’ in November. A thorough evaluation was             office, which runs until October 2012. It was agreed that
     talented young individuals. We took on 10 young employees      carried out of the catering policy, which focuses on healthy      from now on a CSR section would be included in all requests
     from more than 300 applicants.                                 food. Improvements are being prepared.                            for advice and consent. Discussions were also held about
     In 2010 we launched a social media campaign via Hyves,                                                                           sustainable procurement; NS wants to be sure that its
     Twitter and blogs especially for potential starters in the     Measures were initiated in 2010 to reduce physically taxing       suppliers are also keeping to the code of conduct in the areas
     job market. This campaign was a great success among            elements. Ergonomic coaches are now available to help             of the environment, child labour and employee rights in the
     this target group.                                             customer service employees set up and operate their               widest sense.
                                                                    workstations. There is a new protocol for train crews
     Healthcare management                                          providing relief and after-care following a psychological                At the end of 2009, the COR chose
     Healthy, fit employees are more productive and perform         trauma. A ‘balance and movement’ course has been
     better, and therefore make a bigger contribution to the        developed for staff whose job involves walking through
                                                                                                                                                 ‘corporate social responsibility’
     objectives of NS. Following a number of years with falling     trains. Mechanics’ workstations are being improved on                    as a priority area
     sickness absence, the rate increased slightly in 2010          the basis of a risk analysis.
     compared with 2009, to 5.3% (5.1% excluding Strukton).                                                                           In the annual tripartite meeting, the Executive Board, the
     We regret this. We will be further intensifying our            Central Works Council                                             Supervisory Board and the COR discussed the group strategy,
     prevention policy where necessary. The focus will be on the    The Central Works Council (COR) met with the NS Executive         market developments and the competitive position of NS,
     deployment of absence coordinators, carrying out health        Board on five occasions in 2010. A great deal of consid-          both in the Netherlands and internationally. It turned out
     checks and a more active return-to-work policy.                eration was given to the desired progress in the application      that there was a considerable degree of agreement
     Only 15% of sick employees who are off work for more than      of IT within the company. The large-scale application of IT is    regarding what NS needed to do to respond to public
     six months return to work. This percentage for NS is not       essential for a logistical services company like NS. In view of   demand for mobility and associated services. There was also
     much different to that for other companies. We improved        the increasing importance of IT, the COR are has decided to       a shared vision of the initiatives that should be taken to deal
     our return-to-work processes in 2010. Managers and             set up a permanent committee for IT, which will hold regular      with the increasing international competition.
     reintegration officers now receive assistance at an earlier    meetings with the Chief Information Officer. IT requires
     stage from company doctors, occupational health specialists    considerable financial resources. The COR supports the            At the end of 2010, the COR consisted of the following
     and employees in the Recruitment and Employability Services    proposals by the company’s management for a new IT                people: Peter Bekkers, Sietse Brouwer (Chair), Piet Buijsman,
     department, which was created in 2010.                         control model. The COR is also favourably disposed to the         Huub van Doremalen, Wijnand Feenstra, Martin ten Kate,
                                                                    concentration of IT jobs in a smaller number of units within      Pieter Kemper (Deputy Chair), Henk Klaster, Rien Maas,
          New protocol for train crews providing                    the organisation. This process will deliver economies of scale    Jo Paffen, Wil Pennings, Bob van Veen and Wim Willemse
                                                                    and improve the level of professional expertise and career        (Deputy Chair). Adri Kales left the COR.
             help after psychological trauma                        prospects for the staff in question.                              The role of executive secretary was filled by Jan van Es.

     Attention is still being paid to the consequences of an
                                                                    The problems in the winter of 2009/2010 once again showed
     unhealthy lifestyle. Staff were made aware of the benefits
                                                                    how vulnerable NS is to wintry conditions. This subject was
     of a healthy lifestyle in an accessible manner during a
                                                                    discussed with the NS Executive Board. Modifications to the
     ‘fitness week’ in November. A thorough evaluation was
                                                                    organisation and technology should reduce the inconven-
     carried out of the catering policy, which focuses on healthy
                                                                    ience to our passengers from disruptions. They should also
     food. Improvements are being prepared.
                                                                    receive better information about changes to train services.
     Measures were initiated in 2010 to reduce physically taxing
     elements. Ergonomic coaches are now available to help
                                                                    The COR agreed to the installation of access gates at 87
     customer service employees set up and operate their work-
                                                                    stations in order to improve personal safety at stations and
     stations. There is a new protocol for train crews providing
                                                                    on trains. More gates will be closed as the use of the public
     relief and after-care following a psychological trauma.
                                                                    transport smart card becomes more widespread. Eventually,
     A ‘balance and movement’ course has been developed for
                                                                    all the gates will be closed and only passengers with a valid
     staff whose job involves walking through trains. Mechanics’
                                                                    ticket will be able to go through them. The COR attaches
     workstations are being improved on the basis of a risk
                                                                    considerable importance to correct treatment of any
     analysis
                                                                    exceptions and good communication with passengers and
                                                                    staff about the policy on access to stations.
     Central Works Council
     Attention is still being paid to the consequences of an
                                                                    At the end of 2009, the COR chose ‘corporate social responsi-
     unhealthy lifestyle. Staff were made aware of the benefits
                                                                    bility’ (CSR) as the assessment framework for its term of
     of a healthy lifestyle in an accessible manner during a
44   NS Annual Report 2010                                                                                                                                                                                                                                        45




     Sustainable commitment                                                                                                    in setting objectives and exchanging results.
                                                                                                                               The first meeting with representatives of all the stakeholder
                                                                                                                               groups dedicated to the topic of sustainability was held at
                                                                                                                               the end of 2010. Those present expressed their support for
                                                                                                                                                                                                 forum) and the SKVV (a cooperative legal forum for traffic
                                                                                                                                                                                                 and transport, run jointly by seven metropolitan regions).
                                                                                                                                                                                                 We value our collaboration with the regions very highly.


                                                                                                                               the priorities in sustainable business practices chosen by NS.
                                                                                                                                                                                                 Governance for sustainable business
                 NS is at the heart of society and         We feel a kinship with society at large. Our contribution to        Contact with customers
                                                                                                                                                                                                 practices
                                                           society is part and parcel of our mission and our day-to-day        In 2010, NS held frequent meetings with the consumer
                             has a key role in mobility.   work. We also aim to make a positive contribution to the            organisations on a range of subjects in the national public
                                                                                                                                                                                                 In March 2010, the Group Council approved the setup for the
                                                           welfare of society in the long term through responsible             transport users’ forum Locov. In addition to eight regular
                                                                                                                                                                                                 organisation and start of the Sustainable Business Practices
       Choosing public transport is choosing               policy in the area of the three Ps: people, planet and profit.      Locov meetings, we organised 25 themed meetings on topics
                                                                                                                                                                                                 programme as part of the strategy of NS. The business units
                                                           The success factors for the achievement of NS’s strategy are        such as the ‘A train every 10 minutes’ pilot project, issues
                                                                                                                                                                                                 are responsible for implementing this strategy. They are
     the sustainable option. Doing business                inextricably linked to this (see page 31).                          concerning the timetable and the 2011 Transport Plan.
                                                                                                                                                                                                 given a strategic framework within which they draw up their
                                                                                                                               There were also monthly talks with the consumer
                                                                                                                                                                                                 business plans. The decision was also made to set up a
          in a sustainable, committed manner                                                                                   organisations about the introduction of the public transport
                                                                                                                                                                                                 central body to promote and coordinate the creation of
                                                                                                                               smart card at NS. NS submitted formal requests for advice
                                                           Strategy and underlying principles                                                                                                    plans and implementation of the sustainability policy.
               is the key to maintaining our role                                                                              from the consumer organisations on matters such as the
                                                           for sustainable business practices                                  2011 timetable, various mid-term changes to the 2010
                                                                                                                                                                                                 To this end, a three-year Sustainable Business Practices
                              and achieving our goals.                                                                         timetable, the end of the printed timetable and the winter
                                                                                                                                                                                                 programme was set up with the objective of anchoring the
                                                           The strategy of NS is to remain among the leaders in                test run held by NS and ProRail.
                                                                                                                                                                                                 philosophy of sustainable business practices in the business
                                                           providing our customers with sustainable mobility, as a
                                                                                                                                                                                                 processes, and of supporting the business units in achieving
                                                           sustainable carrier and a sustainable employer. This means          The Customer Service department was involved in contacts
                                                                                                                                                                                                 their primary targets. This programme was set up for the
                                                           we implement innovations quickly if they offer added value          with customers on over two million occasions in 2010.
                                                                                                                                                                                                 period 2010 to 2012.
                                                           and we adapt them to suit our own requirements. We take             This year, there were a large number of questions about
                                                           good benchmarks from processes in other companies and               the services during the winter period and about the use of
                                                           implement them in our own business operations.                      the public transport smart card. Customer Services provides
                                                                                                                               detailed feedback to the staff and departments of NS about          Sustainability is part of the
                                                           We determine our priorities for sustainable business
                                                           practices on the basis of:
                                                                                                                               what it observes, so that NS can improve its services even
                                                                                                                               further. Every week, we measure the satisfaction of our
                                                                                                                                                                                                         regular planning process
                                                                                                                               customers with these contacts. Customers gave us a score of
                                                           •			 he
                                                              t       material impact of the various NS operations on the      7.2 out of 10 for this (2009: 7.5). We also use the NS Klanten-   The formal organisation consists of a Council for Sustainable
                                                             people and planet areas and NS’s potential influence on           panel (customers’ panel) proactively to find out what people      Business Practices, a Work Group for Sustainable Business
                                                             these areas through its policies.                                 want and need from our services. The panel is representative      Practices and a number of task groups. The Council prepares
                                                           •			 he
                                                              t       position of stakeholders. Together, they represent the   of Dutch rail passengers and has 100,000 members.                 resolutions and policy. Proposed resolutions and policy are
                                                             collective interest of precisely those key issues where NS                                                                          submitted to the NS Group Council for approval.
                                                             can make a difference.                                            Contact with regional stakeholders                                The Council meets four times a year and reports twice a year
                                                           •	 		 he
                                                               t      long-term significance for the profitability of the      In addition to consultations with the shareholder (the            to the NS Group Council and Executive Board. The Council
                                                             company as a whole (profit). The considerations here are the      Ministry of Finance) and the party granting the concession        met three times in 2010. The chairman of the Council has
                                                             costs, benefits and the competitive and other advantages.         (the Ministry of Infrastructure and the Environment),             direct access to the Chairman and CEO of NS, who holds
                                                                                                                               NS holds intensive discussions with regional and local            ultimate responsibility for sustainable business practices
                                                                                                                               authorities, fellow carriers and partners in property             within the NS Executive Board.
                                                           Dialogue with stakeholders                                          development on a wide range of subjects where we have             The Corporate Governance Code explicitly assigns responsi-
                                                                                                                               a joint close involvement. These discussions are often with       bility for socially responsible business practices to certain
                                                           NS holds regular discussions with numerous groups in                ProRail. For example, we hold extremely frequent talks            board members and also states that this area falls within the
                                                           society that are stakeholders in NS. Our most important             about the implementation and development of the                   scope of the Supervisory Board’s supervision. The Supervi-
                                                           stakeholders are our customers, employees (see pages 39             timetable and what that means for the region in question.         sory Board received information on this subject on two
                                                           to 42), various public authorities and social interest groups       Another important point for attention is the development          occasions in 2010. This information will be discussed in 2011.
                                                           (mostly NGOs). Our aim is to increase the confidence that           of station areas.
                                                           the various stakeholders have in us. That requires an               Twice a year, we hold discussions about developments at NS        Two informal meetings on sustainable business practices
                                                           intensive dialogue and, more importantly, transparency              with the Interprovinciaal Overleg (IPO, the inter-provincial      were held in 2010 for eighty employees who are willing to
46   NS Annual Report 2010 / Sustainable Commitment                                                                                                                                                                                                                              47




                            Aim is to achieve an annual improvement
                       of 2% in our energy efficiency
     put in extra work for this. Nearly all participants (98%)           NedTrain has included targets not just for energy and            Environmental gains at NS Reizigers and NS Hispeed                   NS Reizigers, NS Hispeed and NedTrain are cooperating
     would like to integrate sustainable business practices even         waste but also for water consumption in its business plan                                                                             closely to save energy when running, shunting, coupling,
     further in their day-to-day work.                                   (see page 56).                                                   Total CO2 emissions from passengers transport                        cleaning and maintaining trains. We can achieve a great
                                                                                                                                                                                                               deal in terms of energy efficiency by increasing occupancy
                                                                                                                                          CO2 emissions in thousands of tons
     In 2010, sustainability was made part of the regular planning       In addition, the dialogues with our stakeholders have shown                                                                           rates in the train, especially at off-peak times. The intro-
     and control cycle. A company-wide audit was held in 2010 on         that our involvement in social goals and our heritage, and       640                                                                  duction of the new, economical Sprinter rolling stock is also
     the subject of sustainability. It ascertained that sustainable      the subjects of procurement, privacy protection and soil are     620
                                                                                                                                                                                                               making a significant contribution. In 2010, there was an
     business practices are sufficiently anchored in the company.        also relevant to them. Consequently, these subjects are also                                                                          increase in the average occupancy rate. Our CO2 emissions
                                                                                                                                          600
     These two activities currently constitute the risk manage-          discussed in this chapter.                                                                                                            per passenger-kilometre were reduced by 4% in 2010 to
                                                                                                                                          580
     ment for the subject of sustainability.                                                                                                                                                                   35.1 grams of CO2 per passenger-kilometre, primarily thanks
                                                                         Planet                                                           560                                                                  to the more efficient use of trains and the deployment of
     Transparent                                                         Energy & climate                                                 540                                                                  new rolling stock.
     NS reports on its sustainable business operations. To do this,      NS is one of the three biggest consumers of electricity in the
     NS has embraced the Global Reporting Initiative (GRI). NS uses      Netherlands. There are collective benefits from improving                                                                                   NS purchased over 10% of its
                                                                                                                                                           2008                   2009                  2010
     this to give an account of its results in the area of sustainable   energy efficiency, and with it reducing CO2 emissions, as well
     business practices. Using GRI also shows that the company is        as commercial benefits because of the costs.
                                                                                                                                                                                                                          electricity from green sources
                                                                                                                                                per year
     transparent in accordance with internationally respected
     standards, including in the areas of distribution chain respon-     We are continually working on further improvements to                                                                                 Efforts to achieve further improvements in energy efficiency
     sibility, stakeholder dialogue and social aspects. The 2009         the energy performance of rail travel, in consultation                                                                                over the coming years will include new and upgraded, more
     Annual Report was assigned the GRI level C (self-declared).         with various stakeholders. Thus NS is participating in the       CO2 emissions from passengers-kilometre                              efficient trains, and energy-efficient train configurations and
     The 2010 Annual Report complies with GRI level B (externally        ‘Meerjarenafspraak energie-efficiency’ (MJA, long-term                                                                                driving techniques.
                                                                                                                                          CO2 in grams
     assessed). In addition, NS has been included in the trans-          agreement on energy efficiency) with its goal of a structural
     parency benchmark by the Ministry of Economic Affairs for a         improvement in the energy efficiency of business operations      40                                                                   Almost all NS trains are electrically powered. In 2010,
     number of years now. The 2009 Annual Report was assigned            both within the company and in the chain. MJA 1 ended in         39
                                                                                                                                                                                                               NS purchased over 10% of all electricity it consumed from
     an improved score despite the more stringent requirements.          2010. The objective of a 20% improvement in energy               38
                                                                                                                                                                                                               green sources with ‘guarantees of origin’. A 10% proportion
                                                                         efficiency as measured per passenger-kilometre was               37
                                                                                                                                                                                                               of ‘green’ electricity is more than the average share of green
     The table on page 150 of this report gives the GRI indicators       achieved comfortably. We are now working in accordance           36
                                                                                                                                                                                                               power in electricity supplied to customers within the
     for the activities of the Group as a whole. Its scope is limited    with the MJA 3 agreements, which come into force in 2011.        35
                                                                                                                                                                                                               Netherlands (about 7%). Our customers and pressure groups
     to the NS Group operating companies whose operations                In addition, in 2009 NS signed the ‘Sectorakkoord mobiliteit,    34                                                                   ask us if NS could purchase all the electricity it needs from
     are mainly in the Netherlands. We have one subsidiary that          logistiek en infrastructuur 2008-2020 Duurzaamheid in                                                                                 green sources. We choose not to do this, and the various
     operates outside the Netherlands (Abellio). It produces its         Beweging’ (2008-2020 Sector agreement on mobility,                                                                                    stakeholders are backing us. Purchasing more electricity
     own annual corporate social responsibility report, which also       logistics and infrastructure: Sustainability on the Move).                        2008                   2009                  2010   from green sources would as yet not result in an increase
     meets the GRI level B requirements, including an external           This is an agreement between four ministries and thirteen                                                                             in the share of the total amount of sustainably produced
                                                                                                                                                per year
     assessment.                                                         private-sector parties.                                                                                                               electricity and so would not benefit the environment.
                                                                         We use 2008 as the baseline year in the tables and we report                                                                          NS therefore concentrates on investing in energy savings
                                                                         on both domestic and international passenger transport as                                                                             in its own processes, which has a bigger net effect.
     Achievements in priority areas                                      that is in keeping with the above-mentioned agreements.
                                                                                                                                          Trends in energy use for passenger transport
                                                                                                                                          energy efficiency index of electric and diesel rolling stock          Noise
     The guiding principles for sustainable business practices lead      NS aims to promote and enhance the train’s favourable                                                                                 Legislation dictates that authorisations are required for
                                                                                                                                          102
     to five priority areas where implementation is or will become       environmental image. To do this, we want to reduce the                                                                                noise emissions. The impact of this subject is relevant as
                                                                                                                                                           100
     part of the regular business processes. They are:                   energy consumption per passenger-kilometre further still.        100                                                                  the NS trains cover the entire Netherlands. Interest groups
     1 energy & climate (see page 45)                                    Being more energy efficient also links in with the               98                                                                   question NS and ProRail on this subject, particularly if there
     2 waste (see page 46)                                               company’s objectives relating to sustainability and              96
                                                                                                                                                                                                        96     are actual or potential problems. This subject also affects
     3 noise (see page 47)                                               continuity, as a reduction in energy consumption leads                                                                                the company’s continuity in the long term. After all, growth
                                                                                                                                          94
     4 diversity (see page 41)                                           to lower CO2 emissions and substantial financial savings.                                                                             in the provision of mobility by train can only be achieved in
                                                                                                                                          92
     5 new-style professionalism (see page 41)                           The aim is to achieve an average annual improvement of                                                                                the long term within the limits set by the Government for
                                                                         2% in energy efficiency, measured per passenger-kilometre.                                                                            noise ceilings.
     Furthermore, some business units have additional,                   The reference year is 2008 (100%). This should give a                             2008                   2009                  2010
     specific priority areas. NS Poort has sustainable construction      reduction in the CO2 emissions per passenger-kilometre                                                                                For the priority area of noise, we have set the long-term
     (see page 60).                                                      of at least 26% over the period 2008-2010.                             per year          objective                                    objective of keeping within the noise ceilings set by the
48   NS Annual Report 2010 / Sustainable Commitment                                                                                                                                                                                                           49




     Government while running more planned trains per year.           stations is always a focus of attention for us. Joint publicity           As a Partner in Sport for the umbrella organisation for sport
     Calculations show that NS can do this if our trains are          campaigns with Stichting Nederland Schoon (the Clean                      in the Netherlands, the NOC*NSF (the Dutch Olympic
     ‘quiet’ trains. Most noise emissions are caused by the contact   Netherlands Foundation) have led to a sharp drop in the                   Committee and Dutch Sports Federation), we encourage
     between the rails and wheels with an uneven running              amount of litter in and around our stations.                              sport at all levels. NS sees the work of its own employees
                                                                                                                                                                                                                  NS feels a kinship with society at large
     surface. An uneven running surface is caused by cast-iron                                                                                  as sport at the highest level - every day! NS also sees a clear
                                                                                                                                                                                                                  and with our planet. Sustainability
     brake blocks. Trains are ‘quiet’ if they are fitted with disc                                                                              parallel in team performance. One high-profile event in
                                                                                                      • Waste in workshops                                                                                        is a synonym for respect for the
     brakes or brake blocks made of plastic, which reduces noise                                      • Waste in offices                        2010 was the Olympic Winter Games in Vancouver. We
                                                                       Complete separation and        • Waste in shops at large stations
                                                                                                                                                                                                                  environment and our energy supplies.
     emissions by at least 3 dB, the equivalent of halving the         optimum recycling                                                        provided Dutch sportsmen and women and their supporters
                                                                                                      • Paper in paper bins at two trial                                                                          If you travel by train, you are making
     noise. The introduction of new rolling stock therefore meant                                                                               with four hundred OV-fiets bicycles so that they could get
                                                                                                        stations                                                                                                  a ‘green’ choice. More efficient use of
     that the entire train fleet became even quieter in 2010.                                                                                   around quickly. It has become a tradition for NS to provide
                                                                                                                                                                                                                  energy has a direct link with sustainabi-
     The braking system for Fyra on the HSL South has also             Separation of paper and                                                  transport-related services at the Olympic Games.
                                                                                                                                                                                                                  lity as a reduction in energy consump-
     been adapted to make the trains much quieter. By the end          processing of remaining                                                  NS provided the Dutch team at the Olympic Games in
                                                                                                      •   Waste in trains and stations in the                                                                     tion leads to lower CO2 emissions.
     of 2010, 77% of NS trains could be classified as ‘quiet’.         waste to energy pellets                                                  Peking (2008) with journey advice and useful maps, and
                                                                                                          Randstad conurbation
                                                                       for use in high-efficiency                                                                                                                 NS aims to improve energy efficiency by
                                                                       electricity power stations                                               we put on buses in Turin (2006).
                                                                                                                                                                                                                  2% a year. It will do this by putting on
     The attention given to the issue of noise and the Fyra shows
                                                                                                                                                                                                                  more economic or trains and by making
     that this is not just a question of complying with legislation    Processing of waste to                                                   Many national sponsors spend 1% of their sports budget
                                                                       produce energy pellets         •   Waste in trains and stations                                                                            them run (and brake!) more economi-
     and regulations. The perceptions of local residents and other                                                                              on sports for the disabled. The underlying idea is that
                                                                       for use in high-efficiency         outside the Randstad conurbation                                                                        cally. 10% of all our electricity is from
     stakeholders of noise nuisance also play a role. Studies will     electricity power stations                                               1% of the people playing sports in the Netherlands are
                                                                                                                                                                                                                  green sources; that is more than the
     lead to a more extensive report in 2010 on the issue of the                                                                                actually disabled. NS has also made 1% of its sports
                                                                                                                                                                                                                  average share of green power in
     perception of noise and how NS could respond.                                                                                              sponsoring budget available for disabled sport under
                                                                                                                                                                                                                  electricity supplied to customers
                                                                      Waste at workshops is collected and taken away separately                 this so-called Fair Share scheme. This was used to support
                                                                                                                                                                                                                  within the Netherlands (about 7%).
     Waste                                                            according to materials. Metal, wood and paper are recycled.               the Swimming World Championships for the disabled and
                                                                                                                                                                                                                  Furthermore, NS is actively working on
     Customers attach considerable importance to clean trains         We organise the reuse of outdated tools as much as possible               the Paralympics in 2010.
                                                                                                                                                                                                                  the separate collection and removal of
     and stations. This affects our customers’ opinion of the         through the Stichting Gered Gereedschap (foundation for
                                                                                                                                                                                                                  waste and also seeks to reduce water
     sustainability of NS. Targets have been agreed in the            rescued and repaired tools).                                                 NS took part in the annual Gay Pride                           consumption. All NS business units are
     contract for the main rail network concession (issued by         We look to recycle as much as possible, or to choose
     the Ministry of Infrastructure and the Environment) for          processing methods that contribute to sustainability, for
                                                                                                                                                             Canal Parade for the first time                      helping to make the railway company
                                                                                                                                                                                                                  more sustainable.
     customer perceptions of the cleanliness of trains and            example by converting the waste into energy in plants
     stations. NS employees are also motivated to deal with           that are highly efficient.                                                Together with the National 4th and 5th May Committee,
     waste streams in a sustainable manner.                                                                                                     we put on a special Bevrijdingstrein (“liberation train”) that
                                                                                                                                                ran throughout the Netherlands for a period of five weeks
            NS employees handle waste                                 Supporting social causes                                                  leading up to Liberation Day. It was driven by the Chairman
                                                                                                                                                and CEO and opened by the Prince of the Netherlands.
                    streams sustainably
                                                                      NS’s place at the heart of society means we are in a position             The aim was to get as many Dutch people as possible
                                                                      to support social causes. Our support enables us to                       involved in the theme of “freedom”, 65 years after the
     In the year under review NS processed 14.4 thousand tons
                                                                      contribute to society, but in all cases there is an indirect link         end of the Second World War. The train attracted twenty
     of waste. This figure is largely based for the first time on
                                                                      with the core competencies of NS.                                         thousand passengers and interested people; the Dutch
     records kept by waste treatment companies and is therefore
                                                                                                                                                broadcasting company NOS broadcast live from the train
     more accurate than the 20 million kilograms reported in
                                                                                                                                                on 5 May (Liberation Day).
     2009, which was an estimate based on our own sample                   NS sees the work of its employees
     study. The waste consists primarily of consumers’ waste                         as sport at the highest level                              NS values diversity and therefore also tolerance and respect
     in trains and stations, and industrial waste in workshops.
                                                                                                                                                in society. In view of this, in August 2010 we took part for
     The volumes of waste in 2008 and 2009 have been recalcu-
                                                                      NS acts as a sponsor for two broad social goals. As a sponsor             the first time with our own boat in the annual Gay Pride
     lated using the new records, and are estimated at 16.5 and
                                                                      of the CPNB, the foundation for the collective promotion of               Canal Parade in Amsterdam.
     15.0 million kilograms.
                                                                      Dutch books, we are encouraging reading. This foundation is
                                                                      the driving force behind the national Book Week, the month                Once again, in 2010 we created room for cultural events
     Much of the waste in our trains and stations is paper.           of the thriller, The Netherlands Reads and the NS Publieks-               and performances in and around stations through limited
     In the future, the standard station facilities will include      prijs, a prize for the best book chosen by the public. ‘Reading           sponsoring and facilities. Some examples are our
     completely separate collection of different waste materials.     on the train’ is a logical link that our customers understand             involvement in the Over het IJ festival in Amsterdam,
     This can already be seen at Utrecht Centraal. Litter at          and appreciate.                                                           exhibitions by the EYE/Film festival and the Stedelijk
50   NS Annual Report 2010 / Sustainable Commitment                                                                                                                                                                                                                         51




     Museum at Amsterdam Centraal station, the CultuurSpoor NL          In February 2010, the Royal Waiting Room at Den Haag              combating fraud. The core values of the NS privacy policy      practices and corporate social responsibility is inextricably
     exhibition at Almere Muziekwijk station, a contribution to         Hollands Spoor station was delivered after 10 years               (honest, safe and reliable) reflect the essence of the         linked with our procurement process. This is formulated in
     the ZAPP City performance in the Stationsplein area by             of restoration work. It was opened by Crown Prince                privacy legislation.                                           the rules of procedure for the Executive Board and
     Hilversum station, and Gouda by candlelight.                       Willem-Alexander.                                                                                                                procurement governance, and anchored in the General
                                                                        Preservation of our cultural heritage is also one of the                    Passengers can choose between                        Purchasing Conditions (www.nsprocurement.nl/Documenten).
     Accessibility and safety                                           guiding principles for the sustainable development by
     NS provides specific support for a number of social themes         NS Poort of the former coach workshop in Amersfoort;
                                                                                                                                                        an anonymous or personalised                     In tenders, the determining factor is the objectives that NS
     that it feels particularly involved with because of its business   goods trains were being maintained here right up to 2000.                    public transport smart card                         aims to realise in buying that product or service. The relevant
     operations. For example, NS believes it is extremely               When it closed, the buildings on the site were given listed                                                                      aspects of the NS strategy are taken into consideration.
     important that all groups should be able to participate            building status. A number of them were renovated and              NS has opted for a proactive privacy policy as laid down in    This is used to define the selection and award criteria the
     actively in society. NS makes sure disabled people can make        were given a new use in 2010. Holland Opera moved into            our Privacy Governance. NS Groep NV has been designated        suppliers have to comply with in addition to the general
     as much use as possible of the services it offers.                 the Veerensmederij building while CliniClowns took over           the responsible party as referred to by the Dutch Personal     requirements that NS always sets.
                                                                        the Wielendraaierij building.                                     Data Protection Act, while its subsidiaries do not             In practice, NS will only award a contract if the CSR aspects
     Safety in trains and stations remains a constant area of           In Roosendaal NS Poort and the province of Noord-Brabant          formally bear ultimate responsibility. This is in line         have been considered as well. In 2010, we added the general
     concern and attention for us, as has already been explained        Province are renovating the aging interior of the hundred-        with good governance according to the Dutch corporate          requirement that all suppliers should shoulder the responsi-
     on pages 34 to 35 of this report. The key to the solution lies     year-old historic station building.                               governance code.                                               bility for socially responsible business practices. This means
     in upbringing and education. Guards and drivers therefore          Finally, we sponsor the Dutch railway museum and we work          There is a neutral privacy officer who manages the general     they should subscribe to the essential elements of standards
     visit schools to provide information about the consequences        closely with the Utrecht Archives. We are doing this in order     privacy policy for NS and reports to the NS Executive Board.   in this area, as laid down in such documents as the Universal
     of aggression. We collaborate with Stichting Slacht-               to preserve objects, documents and images of historical           He also deals with incidents, complaints and disputes,         Declaration of Human Rights and the standards drawn up by
     offerhulp, a foundation helping victims. The foundation            importance showing 173 years of railway history.                  including all privacy complaints received by NS Customer       such organisations as the ILO, OECD, and ICC. For example,
     provides support for dealing with the trauma of accidents                                                                            Service. Compliance monitoring by the State is the             we set requirements for labour conditions (ILO requirements)
     and aggression. This is, of course, extremely important for        Soil                                                              responsibility of the Dutch Data Protection Authority (CBP).   in the production of uniforms, we require a safety certificate
     our customers and staff.                                           As the owner and project developer of NS land, NS Poort           NS subscribes to the public transport smart card code of       from our suppliers who deploy their employees in and
                                                                        regularly has to tackle soil pollution. We work closely with      conduct drawn up by KNV (the employers’ organisation           around trains and platforms, and we insist on the use of
     About 180 suicides occur annually on and around the Dutch          Stichting Bodemsanering NS (SBNS, the NS Soil Remediation         for the transport sector). This code of conduct enshrines      environmentally friendly products for cleaning. Audits are
     railways. These cause a tremendous amount of suffering for         Foundation) in dealing with polluted land. This foundation        the sector-wide principle that passengers should always        carried out to test compliance with the requirements if the
     those involved. In addition, these incidents inconvenience         was set up in 1995 by NS, ProRail and the relevant ministries.    have a choice between an anonymous and a personalised          nature or size of the case gives cause for this or if we suspect
     many tens of thousands of passengers and cause material            Its purpose is to resolve soil problems dating back to before     public transport smart card. In the event of a complaint,      a risk of non-compliance.
     damage. Together with ProRail, the Ivonne van de Ven               NS became independent. SBNS carries out soil surveys and          an appeal can be made to the Public Transport Disputes
     Foundation and scientists, we are trying to reduce the             sustainable soil remediation work. It is ISO 9001 certified for   Committee. No use was made of this scheme in 2010.                          NS only awards contracts
     number of suicides and attempted suicides as far as possible.      these activities.                                                 However, at the start of 2010, a number of students
     And we arrange for the staff and relatives involved to be                                                                            submitted a request to the CBP for enforcement concerning
                                                                                                                                                                                                                        if ‘sustainability’ has been taken
     looked after, of course.                                                  45 new soil remediation projects                           NS and two other public transport companies, in which                     into consideration
                                                                                               planned for 2011                           severe doubt was cast on the privacy protection of the
                                                                                                                                          public transport smart card. CBP responded with an             We include the following requirements and wishes for
     Committed to our heritage                                          NS contributes over €9 million a year to the foundation’s         investigation at NS and made a request for information,        sustainability when drawing up specifications for new trains
                                                                        budget. Where possible, SBNS claims the soil remediation          with which NS has complied.                                    and in the overhaul of existing trains:
     Our station heritage has a visible position in the NS portfolio    costs from those parties causing the pollution or it persuades    NS explained then that the public transport smart card
     and showcases our history. We have striking historical             those parties to carry out the remediation themselves. SBNS       was a typical Privacy-by-Design solution. This means that         t
                                                                                                                                                                                                         •			 he   use of sustainable materials and production methods
     buildings at unusual locations. NS cherishes its heritage, as      completed 94 soil remediation projects in 2010. In addition,      even when the service was being designed, the standpoint          t
                                                                                                                                                                                                         •			 he   energy efficiency of the rolling stock
     it contributes to the unique value of the station areas and        further investigations were carried out at 66 sites.              was taken that all users of the public transport smart card       t
                                                                                                                                                                                                         •			 he   noise produced by the rolling stock, both when
     consequently to the perceptions of our passengers.                 The schedule for 2011 contains 45 new soil remediation            would in principle be travelling anonymously with NS.            running and when standing still
                                                                        projects while a number that were already started will            For example, a public transport smart card gate cannot            n
                                                                                                                                                                                                         •			 o   discharge of wastewater onto the track (toilets)
                                                                        continue. SBNS provides NS with assistance in a wide range        ‘see’ who is checking in or out.                                  p
                                                                                                                                                                                                         •			 otential   for sustainable disposal (maximum recycling of
             NS cherishes its heritage                                  of soil issues related to property development and sales.                                                                          materials and components)


     Bureau Spoorbouwmeester has put together ‘The Collection’          Consideration for privacy                                         Results of the purchasing process                              NS uses general criteria and certificates where necessary or
     based on 50 archetypal stations – seven younger than 50 years      We take due care when dealing with the personal details of                                                                       useful. For instance, more than ninety percent of the paper
     and 43 older than 50; 31 of these buildings have listed            passengers and staff members, and with all company                NS spends over €1 billion a year on goods and services from    purchased by NS is now FSC-approved. Furthermore, we
     building status at the municipal, provincial or national level.    information obtained in connection with social safety and         third parties. The value we attach to sustainable business     encourage our suppliers to collaborate with us in developing
52   NS Annual Report 2010                                                                                                                                                                               53




     solutions and alternatives, carefully chosen to support
     NS’s objectives in the longer term. Some good examples
     of such collaboration are cleaner diesel fuel, low-noise and
     lightweight brake blocks, de-icing pellets instead of salt,
                                                                       Results of Activities
     and environmentally friendly train washing machines.


     NS is one of the signatories of the Manifest maatschappelijk      Passenger transport                                              The result from operating activities for the main rail network
     verantwoord inkopen en ondernemen (Manifesto for socially                                                                          alone was €240 million (€173 million in 2009). The difference
     responsible procurement and business practices).                  The passenger services segment comprises domestic                between this result and the total operating result for
                                                                       passenger services from the NS Reizigers business unit,          passenger services is largely due to the losses from the
     A good eighty percent of our procurement concerns services        international and domestic passenger services provided           HSL South operations.
     delivered in the Netherlands or the delivery of products          by NS Hispeed, rolling stock maintenance carried out
     produced in the Netherlands and/or Western Europe.                by NedTrain, and passenger services abroad provided              The number of claims honoured through the scheme for
     Equally, eighty percent of NS expenditure goes through            by Abellio. These businesses work together intensively.          refunds following delays was 643,086 (469,954 in 2008).
     a (European) tendering procedure (see the Tender                  For instance, NedTrain plays a vital role in maintaining and     Compensation paid for delays totalled €6.5 million
     Regulations of NS at www.nsprocurement.nl/Documenten).            upgrading the NS trains, and in doing so makes a major           (2009: €5.2 million), which equates to an average of
                                                                       contribution to the performance improvements of the main         €10.10 per customer.
     We are continually testing the actual deliveries for              Dutch rail network as laid down in the Transport Plan.
     compliance with the contract agreements. We monitor               Where relevant, the results of the latter are reported           Growth in passenger numbers
     the financial strength of suppliers critical to the company.      separately. NS Reizigers and NedTrain also work for the          The total number of passenger-kilometres was 16.3 billion,
     NS is able to switch quickly to another supplier if necessary.    regional authorities and concession holders. We also state       as compared to 16.2 billion in 2009. As expected, the effects
                                                                       the results here of subsidiaries of operating companies and      of the recession are greater than last year and can be seen
                                                                       joint ventures that operate other modes of transport besides     both in our customers’ travel behaviour and in their
                                                                       rail transport. NS has a 50% interest in Syntus, for instance,   preference for cheaper ticket types. We saw some signs
     Profit: a vision for continuity                                   which operates train and bus concessions. NS also has a          of growth again in the final months of the year.
                                                                       49% interest in Qbuzz, a Dutch bus company that operates         Successful marketing allowed us to limit the consequences
     We round off this overview of our activities in the areas of      local transport services in the northern provinces and           of the crisis. For instance, NS held various campaigns for
     sustainability and commitment with our vision concerning          urban transport in Rotterdam.                                    specific events and we introduced the Spoordeelweken
     profit. NS wants to ensure continuity in its services in order                                                                     (travel discount weeks).
     to be able to continue investing in quality improvements.         Financial results for passenger transport
     This requires a return on invested capital of 7% (after tax),     The total revenue from the passenger services segment            The sale of NS tickets via outlets of the Kruidvat drugstore
     which will ensure sufficient cash available for the above-        has risen by €181 million from €2,699 million in 2009 to         chain and Blokker household goods chain (among others)
     mentioned investments. Progress in this area is detailed          €2,880 million in 2010.                                          was continued in 2010, resulting in particular in additional
     in our Group’s financial statements. This is, in fact, a return   The total costs were €2,751 million (2009: €2,639 million).      passengers at weekends. Such promotions using ‘alternative’
     on investment that benefits the wider society. A large            Costs rose by €112 million in 2010.                              distribution channels attract a relatively large number of
     proportion of the profits of NS is, after all, invested in the    The total result from operating activities for the passenger     new customers who use the opportunity to try out the train.
     improvement and development of the services we provide            services segment amounted to €129 million. That is an            Finally, e-Ticketing, the Eropuit website and the Spoor
     in the Netherlands, while another significant share goes to       increase on the result in 2009 (€60 million), in particular      customer magazine encouraged increasing numbers of
     the sole shareholder of NS (the Ministry of Finance) and          due to improved results at Abellio and NS Hispeed and due        customers to use the train for leisure trips.
     becomes available as a dividend. The decision was taken in        to the inclusion of one-off expenses in 2009 for NS Reizigers.
     2010 to state the impact explicitly of all investment decisions   Revenues from the main Dutch rail network increased by
     by NS on socially responsible business practices.                 1.6% from €1,822 million to €1,851 million, primarily due to
                                                                                                                                                 Sale of NS tickets through
                                                                       the fare increase of 1.6% as of January 2010. As laid down                  Blokker and Kruidvat led
                                                                       in agreements, this increase consists on the one hand of an
                                                                       inflation correction (1.6%) and on the other hand of any
                                                                                                                                              to extra passengers
                                                                       increase in ProRail’s infrastructure levy (zero in 2010).
                                                                       This fare increase was countered by a drop in revenue due        Despite adverse economic conditions, NS succeeded in
                                                                       to more price-conscious travel behaviour. Successful sales       growing further in the business segment in 2010 as well.
                                                                       campaigns attracted new customers and encouraged                 Sales of NS annual passes in this segment rose by over
                                                                       existing customers to travel more often.                         7% in 2010. Sales of the NS Business Card increased by 37%.
54   NS Annual Report 2010 / Results of Activities                                                                                                                                                                                                       55




                                                       Building quality

     The NS Business Card will eventually be integrated into the        strategies for a solution to guarantee the continuity of HSA.   On 15 April, the Eyjafjallajökull volcano in Iceland erupted.
     public transport smart card. This makes it more convenient         This is desirable not only in view of the investment in the     This led to the full or partial closure of a lot of airspace for
     for car drivers and easier for the guard to check on the train.    HSL South, but above all in the interests of our passengers.    some time and an explosive increase in the demand for
     The number of student passes increased further for the             The Minister informed Parliament about this at the end of       international train tickets. NS Hispeed was able to help
     2010/2011 academic year.                                           January 2011.                                                   large numbers of passengers affected by this to get away.
                                                                                                                                        Records for the number of tickets sold and turnover were
     Regional concessions                                               Thalys has been running on HSL South since 13 December          broken in no time.
     In 1998, the Ministry of Transport, Public Works and Water         2009. This high-speed service connects Amsterdam, Schiphol
     Management started handing over responsibility for a               and Rotterdam with Antwerp, Brussels and Paris. There are       Customers
     number of regional and urban district train services to            now ten trains a day, compared with only six in 2009. Thalys    NS Hispeed has surprised its customers throughout the year
     regional authorities. These are the connections that are not       carries passengers from Rotterdam to Paris in only 2 hours      with campaigns, both on the train and through Internet and
                                                                                                                                                                                                           Good service can only be achieved with
     part of the national main rail network. Under the Dutch            and 36 minutes.                                                 other media. These campaigns explicitly presented NS
                                                                                                                                                                                                           motivated, professional employees.
     Passenger Transport Act of 2000, the authorities have to put                                                                       Hispeed as the foremost portal for all high-speed rail
                                                                                                                                                                                                           NS is continually investing in the
     the operation of those regional and urban rail services out to     Thalys is a real success. The turnover of Thalys increased by   journeys in Europe. Partly as a result of this, brand recog-
                                                                                                                                                                                                           professional skills of its staff, and with
     contract by public tender or alternatively, as an interim          35% in 2010 while the number of one-way journeys                nition rose in 2010 to 65% (2009: 47%).
                                                                                                                                                                                                           good reason because it is they who
     measure, they may award the contract privately. These              increased by 21%. Passenger volumes between Amsterdam
                                                                                                                                                                                                           ultimately make the difference. A good
     concessions are partly operated by NS and partly by other          and Brussels were even 2.5 times as high in 2010 as in 2009
     carriers (including Syntus, in which NS has a 50% stake).          now that the HSL South is being used.
                                                                                                                                                  NS will give customers                                   example of such investments is the

                                                                                                                                              more assistance in buying                                    foundation of the NS Academy in 2010
                                                                                                                                                                                                           with its aim of developing leadership,
     Thanks to these concessions, NS is currently operating             Fyra also runs on the HSL South. The plan is for the service
     train services on the following routes:                            to extend to Breda from April 2011 and to Brussels from
                                                                                                                                                     online tickets                                        professional skills and the ability to
                                                                                                                                                                                                           network. Staff can deliver top-quality
     Gouda-Alphen aan den Rijn, Zwolle-Emmen,                           December 2011. For the time being Fyra connects Amsterdam
                                                                                                                                                                                                           performance if they can do their job
     Zwolle-Kampen, Zutphen-Apeldoorn and                               to Schiphol and Rotterdam. The service frequency has been       The online portal of NS Hispeed (Hispeed.nl) attracted
                                                                                                                                                                                                           well. And this helps NS to fulfil its
     Rotterdam-Hoek van Holland. The concession for the                 increased here too. Until April, there was one Fyra train an    11.1 million visitors in 2010, an increase of 3% compared
                                                                                                                                                                                                           mission of carrying passengers safely,
     Houten–Houten Castellum line ended after this route                hour in each direction on weekdays. In April a weekend          with 2009. Furthermore, nearly eighty TGV destinations
                                                                                                                                                                                                           punctually and comfortably via attrac-
     became part of the main rail network on 12 December 2010.          service was added. On 4 October the frequency between           and more than one hundred destinations in Germany
                                                                                                                                                                                                           tive stations to their destinations.
                                                                        Amsterdam, Schiphol and Rotterdam was doubled to two            were added. In total our customers can buy online tickets
                                                                                                                                                                                                           Ideally, the NS workforce should reflect
     NS will continue to run services on the Zwolle-Emmen,              trains an hour on weekdays and this frequency was extended      for more than 400 destinations. In addition to train tickets
                                                                                                                                                                                                           the composition of society. Specifically,
     Zwolle-Kampen and Rotterdam-Hook of Holland lines for              to the weekends from 18 December.                               they can also book hotels, insurance and hire cars.
                                                                                                                                                                                                           that means equal opportunities for
     the time being. NS was provisionally granted the concessions                                                                       The distribution costs have fallen as more customers are
                                                                                                                                                                                                           everyone at NS. Particular attention is
     for these train services privately, starting with the 2008         The number of passengers using Fyra has grown by an             using the self-service channel: 46% used this distribution
                                                                                                                                                                                                           given to getting more women in senior
     timetable. Following a tender procedure, the provinces of          average of 10% a month. The doubling of the frequency in        channel in 2010, compared with 43% in 2009. More steps
                                                                                                                                                                                                           management, multicultural talent and
     Drenthe and Overijssel decided in 2010 to award the                the autumn of 2010 gave Fyra an extra boost.                    were taken in 2010 to improve the website. For instance,
                                                                                                                                                                                                           recruiting young people. At present, one
     Zwolle-Emmen concession to Arriva from the end of 2012.                                                                            we will be giving our customers more assistance in buying
                                                                                                                                                                                                           fifth of NS senior management is female
                                                                        The profitability of ICE International improved thanks to new   tickets online. This project is - as always - based on
                                                                                                                                                                                                           but women make up more than half of
     International passenger services                                   agreements with our partner Deutsche Bahn. The number of        feedback from our customers.
                                                                                                                                                                                                           those on management training courses,
     While 2009 was the year in which the HSL South opened,             journeys with ICE and sold by NS Hispeed in 2010 was
                                                                                                                                                                                                           which is promising. Especially as this will
     2010 was a year in which the number of services on the HSL         433,000. Unfortunately, the 2009-2010 winter and essential      Operation
                                                                                                                                                                                                           also motivate talented people to come
     South was increased. Far more customers started to use             diversions due to lengthy renovations at Arnhem station had     Structural measures were taken in 2010 to improve the
                                                                                                                                                                                                           and work for NS in the future.
     Fyra, Thalys and other international trains in 2010: we            a negative impact on reliability.                               punctuality of NS Hispeed services. Even so, a number of
     carried nearly 3.5 million passengers in 2010, an increase of                                                                      incidents put pressure on punctuality. That started at the
     14% compared with 2009. This underlines the need for                     NS’s international services carried                       end of December 2009 with the severe wintry weather.
     high-speed train services.                                                                                                         Then there was a serious rail accident near Halle in Belgium
                                                                                       nearly 3.5 million passengers                    that led to disruptions over a long period of time. In the
     The financial results of HSA are however a cause for concern.                                                                      autumn there was lengthy period of work on the track in
     The loss on the commercial operation of the HSL South              IC Berlin once again showed steady performance in 2010.         the Schiphol tunnel, various strikes in neighbouring
     concession rose from €105 million in 2009 to €123 million in       With a direct connection between Amsterdam and Berlin           countries, diversions of ICE trains through Venlo due to work
     2010, due in particular to the €74 million concession fee          every two hours, this train series remains an appealing         being carried out at Arnhem, a large number of signalling
     (2009: still only €29 million) that HSA has to pay to the State.   option for our customers. Punctuality up to December was        and points failures, and a fire in the Traffic Control Centre
     There are ongoing discussions with the State about possible        86%, which is nearly the same as in 2009 (86.2%).               in Utrecht. The year ended again with severe wintry weather.
56   NS Annual Report 2010 / Results of Activities                                                                                                                                                                                                                             57




     There was only a slight fall in NS Hispeed’s average               reliability was improved slightly in 2010, although unfortu-        are almost finished. The introduction of more complicated        Passenger services abroad
     punctuality, thanks to the compensatory effect of the              nately the overall availability of the rolling stock worsened       rolling stock increases the demands made on employees’           Abellio - a fully-owned subsidiary of NS - has operations
     measures taken to improve punctuality.                             due to the winter problems. Maintenance costs fell slightly.        expertise. There are a number of rolling stock-specific          in rail and bus transport markets in Great Britain, Germany
                                                                                                                                            training programmes. We are also collaborating with the          and the Czech Republic. Abellio carries more than 650,000
     Our customers appreciate the refurbished interiors of Thalys         Customers appreciate the upgrade to                               universities of Twente, Delft and Eindhoven. In the Rolling      passengers a day. The company is growing and aims for a
     trains, the upgrade to the catering assortment in Fyra and                                                                             Stock Lifecycle Logistics programme, undergraduates and          durable, profitable portfolio of public transport contracts in
                                                                              the catering assortment in Fyra trains
     the text messaging service. In 2010, 76% of our customers                                                                              PhD students carry out research jointly with NedTrain            Europe. Its ambition is to constantly exceed the expectations
     gave a score of 7 out of 10 or higher to the services provided                                                                         employees on the potential for further improvements in           of its passengers and stakeholders.
                                                                        In the past year NedTrain helped with initiatives to limit
     by NS Hispeed. This puts customer satisfaction at the same                                                                             maintenance processes. Participation in the international
                                                                        disruption on and around the track due to wintry weather.
     level as in 2009.                                                                                                                      collaborative body World Class Maintenance also helps            The Abellio Way
                                                                        For example, considerable energy was spent on measures to
                                                                                                                                            achieve this. NedTrain has started a four-year training          Until January 2010 Abellio was operating under the name
                                                                        make the trains more winter-proof. Older Sprinters and
     Environment                                                                                                                            programme at regional training centres for future mechanics,     NedRailways. This name was chosen when the only opera-
                                                                        trains in the Koploper class came through the winter well,
     In anticipation of the outcome of investigations into noise                                                                            including a two-year traineeship. In this way NedTrain is        tions were in Great Britain. The expansion of activities to the
                                                                        in part thanks to these measures. The failure of the newer
     nuisance caused by Fyra, NS Hispeed looked at measures that                                                                            combining practical know-how with new insights and ideas.        European mainland led to the decision to change the name
                                                                        classes of trains - such as the newest Sprinter and the
     would quickly reduce noise levels. One such measure turned                                                                                                                                              to Abellio. It immediately marked the start of a company-
                                                                        double-decker, which performed well in the previous winter
     out to be the application of a different braking system in                                                                                       NedTrain is taking initiatives to                      wide programme - The Abellio Way - which established what
                                                                        - came as a surprise to us. Since then, the problems have
     which the wheels stay smoother and cause less noise.                                                                                        reduce water consumption                                    the Abellio brand stands for. That ranges from the services
                                                                        been properly dealt with in cooperation with the suppliers;
     All the Fyra rolling stock has been modified since June 2010                                                                                                                                            passengers can expect to the way in which Abellio aims to
                                                                        this fell under the guarantee for the Sprinters.
     and is now quieter.                                                                                                                    Safety at work continued to receive attention in 2010.           deliver the intended performance. All of the programme
                                                                                                                                            90% of NedTrain employees, both office staff and                 elements are based on the principles of the European
                                                                        The non-NS passenger market remains important to NedTrain,
     It was disappointing for NS Hispeed that Breda could not                                                                               employees in workshops, have followed safety training.           Foundation for Quality Management (EFQM) and they are
                                                                        partly so that it can stay in line with market practice. In 2010,
     be added to the list of destinations on offer for our                                                                                  The introduction of the ‘Stop! and Go!’ card has made it         essential when making bids.
                                                                        the freight operations were transferred to a separate organi-
     customers in 2010. The reason lay in problems in the supply                                                                            easier for employees to anticipate unsafe situations.
                                                                        sational unit in anticipation of their eventual sale.
     of electricity to the line, and aspect that was beyond HSA’s                                                                           This card is a checklist that can be consulted before each       Best Practice Programme
     control. Measures have been taken that will allow Breda to                                                                             job. The number of safety incidents remained far below the       The Best Practice Programme provides Abellio with a
                                                                        NedTrain worked with other NS business units in 2010 on
     be included in the HSL network from April 2011 onwards.                                                                                norm in 2010. NedTrain’s logistics department won second         platform for exchanging knowledge, experience and
                                                                        further improvements to the deployment of rolling stock.
                                                                                                                                            prize in the national competition for the Safest Warehouse       expertise between the parent company (NS) and the
                                                                        The workshops at Zaanstraat in Amsterdam and in Zwolle
     In 2010 NS Hispeed introduced www.supersnelletreinen.nl,                                                                               in the Netherlands in 2010. The jury report praised the          non-Dutch train and bus companies. This is done through
                                                                        were transferred in 2010 to NS Poort, which was assigned
     online classroom material for the top two classes in primary                                                                           safety awareness of NedTrain’s employees in particular.          international seminars, secondments and workshops.
                                                                        the task of looking for a new use for the land and buildings.
     schools. It provides schoolchildren with information about                                                                                                                                              Short-term or long-term secondments enable employees to
                                                                        However, the two workshops were temporarily taken over
     the environmental effects of travelling by high-speed train.                                                                           Sustainable business practices                                   obtain international expertise and experience, and add to
                                                                        again by NedTrain to deal with the wintry weather problems.
     This material (free for primary school children) has already                                                                           Objectives were set for sustainable business practices at        the skills of bid teams. More than 750 Dutch, British,
     been downloaded by 200 schools.                                                                                                        NedTrain in 2010. A three-year programme was started,            German and Czech staff took part in the exchange
                                                                        NedTrain made substantial investments in upgrading its
                                                                                                                                            aimed at anchoring sustainable business practices within the     programme in the first five years. There were 25 Dutch staff
                                                                        workshops and processes. The new workshop at Waalhaven
     Rolling stock maintenance                                                                                                              business processes. NedTrain has included performance            on secondment with bid teams in various countries in the
                                                                        in Rotterdam was delivered in June 2010. The construction
     The NS subsidiary NedTrain handles the upkeep and                                                                                      indicators for energy, water and waste in its business plan.     past five years, while 17 Dutch staff obtained international
                                                                        of the new components factory in Loven, Tilburg is on
     upgrading of passenger trains in the Netherlands.                                                                                      NedTrain is a major consumer of water during such mainte-        experience through long-term exchanges.
                                                                        schedule (delivery is planned for the second quarter of 2011).
     The company is responsible for the safe, operationally                                                                                 nance processes as cleaning rolling stock and filling toilets.
                                                                        The peak of the construction activity was in September.
     reliable deployment of rolling stock, a crucially important                                                                            NedTrain measures water consumption and has taken                Socially responsible business practices
                                                                        The operations at the existing components factories in
     task. The know-how and experience NedTrain has are                                                                                     initiatives to reduce consumption in order to minimise the       In 2010 Abellio published its first CSR annual report
                                                                        Tilburg and at Ematech in Utrecht will be merged and
     important qualities at the European level. NedTrain is able                                                                            wastage of water. NedTrain has also carried out investigations   describing its work in this area. The report shows how
                                                                        moved to this new location.
     to maintain passenger trains in accordance with the require-                                                                           into energy consumption, the potential for improvements and      Abellio has a positive effect on the locations in which the
     ments of NS and the manufacturers, thus guaranteeing                                                                                   possible measures in two maintenance workshops. We will be       company operates and how its proactive relationship with
     safety, availability, operational reliability and profitability.          NedTrain is investing in                                     extending this investigation to other locations in 2011.         stakeholders is an integral part of the company’s approach.
     This expertise extends to the maintenance of trams and                                                                                 Furthermore, NedTrain has given due attention to limiting
     light rail vehicles as well.
                                                                        upgrade of workshops                                                noise nuisance caused by trains. The braking system in the       Abellio Group Awards
                                                                                                                                            Fyra trains has been adapted to make the trains much quieter.    Abellio handed out the 2010 Abellio Group Awards to
     NedTrain seeks to improve safety, quality, innovation and          In 2010 nearly the entire fleet of aging local trains of the        There is also a policy aimed at limiting waste.                  reward employees whose focus on service made them stand
     efficiency by focusing on operational excellence. Significant      Mat ’64 class were replaced by the new Sprinters. Prepara-          The figures for 2008 to 2010 show a (modest) fall in the total   out. Both teams and individual employees reacted positively
     steps have been taken in the past few years. Operational           tions for the upkeep of the high-speed rolling stock (V250)         volume of waste.                                                 to this. It creates an encouraging atmosphere in which it is
58   NS Annual Report 2010 / Results of Activities                                                                                                                                                                                                                             59




                 2010: customer satisfaction in Czech Republic 93%

     only natural that employees who perform well receive               important cities in the north of England and as a conse-             employees who can give information about bicycle routes.           Germany
     recognition from their management.                                 quence it operates more train services than any other carrier        This project was set up in collaboration with West Yorkshire       Abellio Deutschland
                                                                        in Great Britain. Abellio also has 5.8% of the tendered              PTE, Network Rail and the Department for Transport.                Abellio Deutschland runs bus and train services in the
     Abellio Foundation                                                 London bus market.                                                                                                                      German states of Hessen, North Rhine-Westphalia and
     Abellio has set up the Abellio Foundation with the aim of                                                                                          First CyclePoint in                                     Saxony. The company Abellio NRW operates train services in
     strengthening the bond between the Netherlands and                 Merseyrail                                                                        Great Britain opened                                  North Rhine-Westphalia and carries 23,000 passengers daily.
     Great Britain in the fields of history, culture and scholarship.   Merseyrail provides urban train transport in and around                                                                                 The VM, Werner and KVG bus companies cover 20 million
     The Abellio Foundation has undertaken to support research          Liverpool. The company, which employs 1,200 people, carries          Northern Rail also arranged for new or improved secure             kilometres a year in Hessen and Saxony.
     for three years into the meaning of travel between Great           115,000 passengers a day on one of the most intensively used         bicycle storage facilities at more than 100 stations on routes     Abellio Deutschland employs 1,300 people.
     Britain and the Netherlands from these perspectives. In            rail networks outside London. Merseyrail noted some good             to Leeds. This too has been paid for from Cycling England’s
     addition to this, Abellio supports local projects such as the      results in 2010. The number of passengers increased by               donation. The result is an integrated bicycle and rail             Abellio Deutschland was awarded a 15-year contract for
     Magic Breakfast, which provides breakfasts in British schools      5% and revenue grew by 6%.                                           network throughout West Yorkshire with the Leeds                   the regional train service on the so-called RB 47 route in
     in low-income areas.                                                                                                                    CyclePoint at the centre.                                          the Rhine-Ruhr metropolitan region. The route, known
                                                                        Punctuality improved: the number of trains running on time                                                                              locally as ‘Der Müngstener’, connects the cities of Solingen
                                                                        in 2010 reached a record 96% based on the international              It is Northern Rail’s aim to obtain wide recognition as the rail   and Wuppertal via Remscheid. The contract will take
                Abellio carries more than                               five-minute standard. Merseyrail’s customer satisfaction             company making the biggest contribution to sustainability.         effect from 2013.
                      650,000 passengers a day                          score of 93% was the highest of all train operators in Great         This has been recorded in its sustainability strategy and
                                                                        Britain. The fifth MtoGo shop (mini-supermarket based on             involves among other things seeking to reduce energy
                                                                                                                                                                                                                      Abellio Deutschland opened
                                                                        the Dutch AH ‘to go’ concept) on the Merseyrail rail network         consumption and CO2 emissions. Northern Rail is the first
     Growth                                                                                                                                                                                                                  a new maintenance workshop
                                                                        opened in October 2010.                                              train operator in Great Britain to record not just the direct
     Abellio’s aim is on the one hand to consolidate its position in
                                                                                                                                             emissions (produced by trains and offices) but also the
     countries where it already has operations, both through bids
                                                                        Bicycle storage facilities for 150 bicycles were opened at           indirect emissions (produced in the manufacture of all             Punctuality was 95.9% in 2010 (based on the five-minute
     and through targeted acquisitions, and on the other hand to
                                                                        Southport station in August. This is in addition to the secure       products Northern Rail uses).                                      standard). Employees working on trains improved their
     enter new markets, in particular Scandinavia. Sweden and
                                                                        bicycle facilities at 17 other Merseyrail stations. This brings                                                                         competence as part of a project given shape in collaboration
     Denmark are the most attractive markets as bus transport has
                                                                        the number of additional storage places available to 700 in          Abellio London and Surrey                                          with the tendering authority. There were numerous positive
     been almost entirely liberalised in both countries. In Sweden,
                                                                        total. This was paid for by a donation of £1 million from            Abellio London and Surrey operates bus services in Central         reactions from passengers. Turnover increased by 5% in
     all regional train services are put out to tender, as is the
                                                                        Cycling England, and organisation supported by the British           and South London and in Surrey. The company carries 316,000        2010. Abellio Deutschland VM’s 33 Mercedes-Benz Citaro
     subsidised long-distance transport. There is a local team in
                                                                        Department for Transport.                                            passengers every day. It has 1,700 employees and runs more         buses were awarded the Blaue Engel logo in summer
     place to enable Abellio to make successful bids.
                                                                                                                                             than five hundred buses in South and West London and in            2010 after they had been modified to comply with some
                                                                        Northern Rail                                                        Surrey. There are 450 buses on 40 routes under contract with       extremely strict environmental requirements.
               Abellio London and Surrey was able                       Northern Rail handles train services to and from major cities        Transport for London (TfL) and 50 buses on 32 routes for           In June Abellio Deutschland opened a new maintenance
            to win three new contracts                                  in the north of England, such as Liverpool, Manchester,              commercial and contracted services in Surrey.                      workshop, costing €7 million, in Hagen. Abellio NRW
                                                                        Leeds, Sheffield, York and Newcastle. In total, Northern Rail                                                                           will be able to develop further activities from this
                                                                        puts on 2,600 trains daily, carrying 230,000 passengers a day.       In 2010 the company acquired three new routes and kept             strategic location. The workshop encompasses advanced
     In October 2010 Abellio submitted a pre-qualification
                                                                        Northern Rail employs 4,600 people. In May, the Department           all existing routes that were put out to tender again by           techniques for efficient energy consumption that allow
     document for a medium-sized multimodal concession in
                                                                        for Transport renewed the contract with Northern Rail                Transport for London. It was also able to continue the             a 75% reduction in radiant heat and the recovery of
     Stockholm and the surrounding area with a contract term
                                                                        (to September 2013).                                                 contract for the entire Surrey network. The new TfL routes         rainwater, which enables a reduction of more than 85%
     of 12 years. The result is expected early 2011.
                                                                        In 2010 the number of passengers increased by 3.4%                   start in 2011 and mean an increase in business of 8%. In May       in water consumption.
                                                                        compared with 2009 while revenue grew by 4%. Punctuality             the Mayor of London opened a new depot in Battersea in
     Abellio London and Surrey was able to win three new
                                                                        remained constant at 91.2% (according to the five-minute             southwest London, an investment of £7 million.                     Czech Republic
     contracts in the liberalised London bus market. The company
                                                                        standard), which is still a considerable improvement on the                                                                             Probo Bus
     was also able to keep the bus services already in its portfolio
                                                                        start in 2004, when punctuality was 83.7%. Customer                  TfL standards are used to measure the reliability of bus           Probo Bus operates 120 buses on 70 routes in Central
     when they were put out to tender again.
                                                                        satisfaction rose in 2010 from 81% to 82%.                           services in London. The reliability of high-frequency bus          Bohemia in the Czech Republic, mainly to the west of
                                                                                                                                             services rose by 12%. Customer satisfaction with the Abellio       Prague. The company transports 17,750 passengers daily
     Great Britain
                                                                        In September, the first CyclePoint in Great Britain was              Surrey network was measured for the first time this year;          and employs 218 people.
     Abellio has got a strong hold in the British market thanks
                                                                        opened at the station in Leeds. The concept is based on the          it was 83.8%. Various investments were made in 2010 to
     to the Merseyrail and Northern Rail concessions. Both these
                                                                        wide range of bicycle facilities at Dutch stations and was           ensure more environmentally friendly performance,                  In 2010 customer satisfaction was 93%, thus exceeding
     concessions are run as a 50-50 joint venture with a British
                                                                        introduced to Great Britain by Abellio. The new CyclePoint           including in 36 Euro V buses, which use less fuel and produce      the target of 90%. The number of passengers increased by
     partner, Serco. Merseyrail involves a 25-year contract with
                                                                        building provides safe shelter for 300 bicycles. There are           fewer CO2 emissions. More than a quarter of Abellio London         1.4% compared with 2009 and revenue grew by 0.1%.
     Merseytravel, the regional public transport authority.
                                                                        facilities for bicycle hire, bicycle sales and repairs, as well as   and Surrey buses now use this technology.                          Performance improved thanks to GPRS information on
     Northern Rail delivers train services to and from the most
60   NS Annual Report 2010 / Results of Activities                                                                                                                                                                                                                                         61




     routes in the Prague transport region. The system was                         NS Poort distinguishes four main activities, which have been       Voting at stations. Rail passengers and passers-by were           stations as this helps keep the station lively. Once again,
     introduced at the end of 2009 and is now available in a                       placed in four separate companies: the Commercial                  able to vote at 44 stations during the Dutch parliamentary        in 2010, many such premises were let. Some examples are a
     quarter of all Probo buses. Savings in fuel consumption were                  Operation company (asset management & development and              elections in 2010.                                                brasserie with meeting area at Valkenburg station and a cafe
     achieved through various initiatives: investments in new                      land development company), the Development company                 Major sporting events. 2010 was a year full of sporting events.   at Ede-Wageningen station. The problem of empty premises
     rolling stock and linking drivers’ pay to diesel consumption.                 (property development), the Retail company (commercial             During the World Cup, It was possible to play the latest 2010     has been solved at Diemen station by a local entrepreneur
     Low absence figures helped towards efficiency.                                operation of shops) and the Management company                     FIFA World Cup game on portable PlayStation consoles at Den       who has started a Soup to go. A chicken restaurant has been
                                                                                   (commercial, administrative and technical management of            Haag Centraal station. The World Cup matches were                 introduced at Soest-Zuid station. The former waiting room at
     Passenger transport (overall)                                                 stations). NS Poort also has three subsidiaries: NS Fiets,         broadcast on a huge screen. Amsterdam Centraal, Amsterdam         Almere Muziekwijk station is now an art centre. In 2010 NS
                                                                                   OV-fiets and Passenger Terminal Amsterdam.                         Zuid, Utrecht Centraal, Leiden, Roosendaal and Middelburg         helped artists and local residents set up the Cultuurspoor
     amounts in millions of euros                               2010       2009
                                                                                                                                                      were decked out in pink to mark the Dutch stage of the Giro       Nieuwland foundation and extend their activities to other
                                                                                                                                                      d’Italia cycling race. There was live entertainment and a         stations along the Flevo line.
     Revenue                                                  2,880      2,699         NS Poort plays a central role                                  champions’ podium where visitors could have their photo
     Operating expenses                                       2,751      2,639
     Result from operating activities                          129         60
                                                                                             in the customer’s journey                                taken wearing the leader’s pink jersey or as a ‘stage Miss’.      Redevelopment of station areas
                                                                                                                                                                                                                        In 2010 the municipalities of Geldermalsen and Culemborg
     Total assets                                             4,512      4,287
                                                                                   Financial result                                                         Passengers are facing extensive                             signed agreements for redeveloping the station areas.
     Additions                                                 578        543
                                                                                   NS Poort’s operating revenue rose from €613 million in                                                                               A station square, a bus station and a Park-and-Ride site will
     Depreciation 1                                            298        265
                                                                                   2009 to €686 million in 2010. The result from operating
                                                                                                                                                                           station renovations                          be built to the west of Geldermalsen station. An urban
     Number of employees (FTEs) at year-end               20,246        20,518
                                                                                   activities rose from €51 million in 2009 to €98 million                                                                              development plan, involving a change to the zoning plan,
     Depreciation also includes amortisation and impairment
     1
                                                                                   in 2010. This increase is mainly due to the fact that              Sustainable accommodation                                         will be drawn up for the area around the track at
                                                                                   provisions were made for real estate projects in 2009              Business passengers often need somewhere to work,                 Culemborg. Redevelopment is expected to start in 2012.
     Passenger services on the main Dutch rail network                             in connection with the economic crisis and NS Poort’s              a formal or informal place to meet up or a meeting room
                                                                                   decision to focus more on stations and their surrounding           for a specific time. NS Poort is creating lounges and meeting     NS Poort seeks to strengthen the links between stations and
     amounts in millions of euro                                 2010       2009
                                                                                   area than in the past.                                             rooms for them at various stations. Large companies are also      city centres. NS Poort commissioned the graduation project
                                                                                                                                                      keen to meet part or all of their flexible accommodation          Fixing the Link. This graduation dissertation, which was
     Revenue                                                  1,851      1,822
                                                                                   Commercial Operations company                                      requirements at or around stations. NS Poort is responding        given the highest score possible by Delft University of
     Operating expenses                                       1,611      1,649
                                                                                   NS Poort’s Commercial Operations company is in charge of           to this demand for sustainable offices, accommodation and         Technology, shows how the relationship between the station
     Result from operating activities                           240        173
                                                                                   all land and buildings belonging to NS, including shops and        mobility through its station2station concept.                     and the city centre can be strengthened.
     Total assets                                             3,227      3,218
                                                                                   hospitality outlets at stations, offices and parking facilities.
     Additions                                                  489        448
                                                                                                                                                                                                                        Land
     Depreciation 1                                             218        207                                                                                       Large companies keen to build
                                                                                   Stations undergoing renovations                                                                                                      NS has clustered all its land designated for use as nature
     Number of employees (FTEs) at year-end                   9,619     10,017
                                                                                   Passengers will be faced with extensive renovations                          at or around stations                                   (eco-land) and water into a nature portfolio. This portfolio
     Depreciation also includes amortisation and impairment
     1
                                                                                   of several major stations over the next few years.                                                                                   consists of 3200 cadastral plots with a total area of more
                                                                                   The pedestrian routes will be moved, shops and platforms           When developing areas, the possibility of recycling waste         than 800 ha. This portfolio was sold in December 2010 to
                                                                                   will be closed temporarily and building work could cause           and water is investigated. The new stations and surrounding       a buyer that is setting up a business for CO2 compensation.
     Hub development and operation                                                 inconvenience. NS Poort is arranging clear segregation of          buildings in Utrecht, Breda and Rotterdam are connected
                                                                                   the building site and passenger areas and for clearly              to heat and cold storage systems.                                 Property fund
     NS Poort develops stations and their surrounding areas,                       marked pedestrian routes. Additional measures will be              In 2010, NS and ProRail developed a method for getting            The Vastgoedfonds Stationslocaties (Station Locations
     turning them into sustainable locations that are pleasant to                  taken where necessary, such as temporary seating, uniform          a better picture of a station area during the design, build       Property Fund) is a property fund that invests mainly in
     live in. The company collaborates closely with public                         fencing closing off the building area, decor for empty             and maintenance phases. The main objective is a reduction         offices in station areas. NS Poort is the founder of this
     authorities and other partners. It works on creating station                  areas, temporary hospitality facilities and works of art.          in energy consumption and CO2 emissions.                          institutional fund, in which it has a 51% stake. As at year-end
     areas passengers feel comfortable in and where businesses                     A ‘Station Experience Monitor’ will let passengers and                                                                               2010, the fund’s capital was approximately €600 million.
     are interested in having offices. The larger hubs in                          visitors give their opinion on the station renovations.            Most of the buildings in NS Poort’s office portfolio have
     particular are dynamic places that are well suited to an                                                                                         energy label A. Where necessary, we invest in outer wall          Development company
     efficient combination of a range of activities: living,                       Once again, numerous events were organised in 2010 to              insulation, economical energy installations, lighting and         NS Poort’s Development company is working on creating
     working, shopping, studying and recreation. NS Poort plays                    create the right atmosphere at stations.                           water-saving measures as well wherever possible. We also          pleasurable, high-quality station areas. Every square inch of
     a central role in the customer’s journey at all 380 plus                      NS Try-Out Festival. In October 2010, following a successful       look for the most sustainable solutions for listed buildings,     this scarce land is used as efficiently as possible. NS Poort is
     stations in the Netherlands, including the more minor halts.                  pilot project in Leiden in 2009, four stations were converted      which tend to score low in energy labels.                         developing offices, schools and shops in the vicinity of
     NS Poort collaborates closely with NS Reizigers and the                       into a festival site for three whole days. People at Amersfoort,                                                                     stations. These functions make the areas more lively and
     other carriers in order to ensure proper coordination of the                  Groningen, Leiden and Eindhoven stations were entertained          Minor stations                                                    increase personal safety, thus contributing to the customer
     various services for public transport passengers.                             by various cultural events.                                        The aim is to find a good use for empty premises at minor         satisfaction of passengers.
62   NS Annual Report 2010 / Results of Activities                                                                                                                                                                                                      63




     There was a great deal of attention in 2010 for the renova-       friendly area. An agreement was signed in November 2010           Retail company
     tions of the major stations. These projects are being carried     for the construction of student accommodation close to            The Retail company operates various formats, including a
     out in close collaboration with ProRail and public authorities.   Den Haag Hollands Spoor station. This will provide housing        large number in partnership with franchise owners, such as
     Renovation work is already in full swing at Arnhem Centraal,      for a total of 564 students from mid-2013. Construction of        Starbucks, AH to go, HEMA, Unox, Sissy-Boy Homeland and
     Rotterdam Centraal and Amsterdam Centraal.                        the new school building next to it for the Mondriaan              Rituals. The partnership with these strong brands improves
     The preparation for construction work at Breda, Den Haag          regional training centre is in full swing. Delivery is expected   the quality of the range of shops available at stations.
     Centraal and Utrecht Centraal has progressed a long way.          in July 2011.
     All these stations will soon be fit for the future in terms of                                                                            Sissy-Boy Homeland and
     size, élan and amenities.                                         Rotterdam
                                                                       Work started in March 2010 at Rotterdam Centraal on the
                                                                                                                                                  Rituals shops introduced at stations                    NS wants to help its customers think up
        NS Poort is developing offices,                                platform roofing, the large passenger passage under the                              at the end of 2010                            solutions, including for transport to and
         schools and shops in the vicinity of stations                 tracks and renovation of the platforms. There will be six                                                                          from the station. Planning your journey
                                                                       construction phases of six months each between February           Once again, in 2010 there were further innovations and           at home is easy to do thanks to the
     Amsterdam                                                         2010 and spring 2013, leading up to the final delivery.           professionalisation in the range of shops available at NS        extensive information provided by NS.
     At the start of 2010 NS, ProRail and the municipality of                                                                            stations. The retail company Servex created new retail           NS makes transport by car (Green-
     Amsterdam presented their ambitions for the renovation            Utrecht                                                           formats in the past year, both in the food and in the            wheels), bus (Qbuzz), taxi (NS Zonetaxi),
     and expansion of Stationseiland Amsterdam Centraal.               A start was made in 2010 at Utrecht Centraal on renovating        non-food segments. Efforts were also made to increase the        bicycle (OV-fiets) or scooter (NS scooter)
     NS will take on the commercial operation of the IJ concourse      the platforms and placing new platform roofs. A European          profitability of the formats. The effects of the recession       possible. The OV-fiets (public transport
     including two passages. They will contain hospitality outlets,    tender procedure was completed at the end of 2010 for the         could still be seen in 2010. Customers were making fewer         bicycle) is a success, with growth of 25%
     shops and facilities.                                             construction of a new civic centre. Building will start in        journeys and also spending less. This fall in demand could       in 2010. These bicycles can now be hired
                                                                       spring 2011.                                                      be compensated to some extent by providing more formats          at 226 locations and there are 85,000
     Arnhem                                                                                                                              with a greater range in prices.                                  subscribers. Customers who come to the
     Building work in and around Arnhem Centraal is going              Other stations                                                                                                                     station by car can park their car in one of
     according to schedule. The first platform roofs fitted with       Planning permission was granted at the end of 2010 for            Expansion of franchise formats                                   the more than 20,000 free or 10,000 paid
     solar panels have been placed by ProRail. The passenger           the development of offices for the REAAL Verzekeringen            Sissy-Boy Homeland and Rituals shops were introduced at          parking spaces. The public transport
     tunnel will be delivered in summer 2011, after which              insurance company in Alkmaar. The offices will have a             stations at the end of 2010. These shops are how NS is           smart card is already turning out to be a
     passengers will no longer have to use the temporary station.      floor area of 11,000 m² and will be built to the north of         responding to passengers’ wishes to be able to buy quality       handy access pass for public transport. In
     After that, a start can be made on the construction of a new      the station. Construction is due to start in the first quarter    interior decorating and body care products at stations.          future, NS wants customers to be able to
     station concourse.                                                of 2011, with delivery planned for mid-2012.                      The successful partnership with Starbucks has been continued     use this card to access and pay for other
                                                                                                                                         with the introduction of VIA™ Ready Brew Coffee on Fyra          services in the door-to-door journey,
     Breda                                                             Alphen aan den Rijn will be getting a station pavilion            high-speed trains and other RailCatering routes. There is a      such as parking. NS customer service
     In February 2010, NS Poort reached agreement with the             with a flower shop and kiosk. The pavilion will be delivered      new Unox shop at Den Bosch station, offering traditional         staff at stations give information about
     Ministry of Infrastructure and the Environment, ProRail and       at the start of 2012.                                             Dutch winter food (in the cold months only).                     connecting services for trains, buses,
     the municipality of Breda on a tender for a new station.          Construction work on the second phase of the                                                                                       trams and the metro.
     The expansion of the Apollo Hotel, next to the station, was       Amor Forte residential accommodation project in the               Increasing sales and profitability
     delivered in March. The Singelveste AlleeWonen offices were       Amersfoort station area reached its peak in October.              The main formats run by the Servex retail company
     officially occupied in April.                                     The first batch of 119 homes is due to be delivered               are Kioskgroep, Smullers, De Brooodzaak, Julia’s and
                                                                       at the start of 2011.                                             Shakies. Here too the number of outlets grew, and
                                                                       Construction of the town hall in the Beverwijk station            initiatives were taken to increase sales and improve
              Student accommodation                                    area started in September. The building has a floor area          profitability. Some examples are Kiosk 2.0 in Leiden and
                    will be built near                                 of7800 m² and is being developed on order of the                  a special variant on the Kiosk format for operation at
                                                                       municipality and the IJmond Regional Environmental                minor stations during peak hours.
              Den Haag Hollands Spoor station                          Office, both of which will be occupying it.
                                                                       October saw the ground-breaking ceremony for the                  Optimisation of business operations and the opening of new
     The Hague                                                         ‘House of the Town’ in Gouda. The new premises for the            branches of De Brooodzaak have led to a rise in sales and
     In 2010 the contractor for Den Haag Centraal was                  municipality of Gouda are being built right next to the           profits. The results were also helped by a modified promo-
     contracted by ProRail. Temporary shopping areas will be           station on Burgemeester Jamessingel.                              tions policy, including campaigns such as ‘New on the Shelf!’.
     opened in the station at the start of 2011, after which the       Construction work on the municipality of Zaanstad’s town
     building work will begin. The aging station concourse will        hall is in the final phase. The municipality will move into       New branches of the Italian pasta chain Julia’s were opened
     be renovated to create a spacious, well-lit, passenger-           the building in spring 2011.                                      in 2010 in Amsterdam Amstel and Groningen. The new ‘look
64   NS Annual Report 2010 / Results of Activities                                                                                                                                                                                                                                    65




     and feel’ for Shakies at Amsterdam Centraal, Leiden Centraal      station. In total, customers have access to guarded facilities     The number of people with a subscription grew last year           The occupancy rate for these ships was as much as 96%,
     and Utrecht Centraal stations is a success. The Smullers fast     for 115,000 bicycles. The guarded storage facilities can           to 85,000, while 850,000 trips were made. Mobility passes         which meant the number of passengers increased to nearly
     food format at Amsterdam Amstel has had a makeover.               be accessed from the first train through to the last train.        such as the NS Business Card, Mobility Card and Minder            200,000 (175,000 in 2009). PTA experienced a slight increase
                                                                       In 2010, NS Fiets opened new storage facilities at Alkmaar         Hinderpas were used for 15% of these trips. The positive          in major events, while bookings for more minor events
     In 2010 the retail company switched to a single supplier          Noord and renovated storage facilities at stations such as         results led to the Minister of Infrastructure and the             lagged behind. In August 2010, PTA received the big SAIL
     – Lekkerland – for its own formats. This has increased the        Hoorn, Meppel, Heerenveen en Venlo. There are now guards           Environment deciding in the autumn that the transfer              2010 event. The PTA building was put to use as a press centre
     efficiency of working practices and reduced costs.                in the busiest periods for the formerly unmanned storage           of OV-fiets to NS should be permanent. NS has met                 and the operational heart of the organisation. Overall
                                                                       facilities at Baarn and Amsterdam Sloterdijk stations.             the conditions set for the transfer (including 200 hire           turnover for PTA grew in 2010. PTA was able to achieve a
     Marketing campaigns once again made a contribution to                                                                                locations) with ease over the past three years.                   considerable increase in profits by closely monitoring costs.
     the result in 2010. For example, first-year students were                In August 2010, NS Fiets
     given a discount to introduce them to the assortment                                                                                                 OV-fiets@home concept being
     available in station shops. A range of different campaigns
                                                                                introduced a bicycle storage                                    introduced in Utrecht and The Hague
                                                                                                                                                                                                            Hub development and operation
     led to increased sales to existing customers. The collabo-            scheme for season ticket holders                                                                                                 amounts in millions of euros                              2010     2009

     ration with NS Reizigers in campaigns with Kruidvat and                                                                              In 2010 OV-fiets introduced self-service on-street storage.
                                                                                                                                                                                                            Revenues                                                 686      613
     Blokker as well as the Spoordeelweken (travel discount            In August 2010 NS Fiets introduced ‘Stallen-Op-Pas’                The hire bicycles are parked on the street in a special rack
                                                                                                                                                                                                            Operating expenses                                       588      562
     weeks) was very successful.                                       (storage for season ticket holders) in 36 bicycle storage          and can easily be hired by regular customers. In addition,
                                                                                                                                                                                                            Result from operating activities                         98        51
                                                                       facilities, allowing customers with an OV fiets subscription,      dozens of self-service storage facilities at stations have
                                                                                                                                                                                                            Total assets                                             818      833
     Management company                                                an NS Business Card or a Mobility Card to store their bicycles     been put into operation. This means OV-fiets bicycles are
                                                                                                                                                                                                            Investments                                              27        77
     NS Poort’s Management company handles the day-to-day              quickly without paying cash. They receive an invoice later         also available at storage facilities without a manager for
                                                                                                                                                                                                            Depreciation 1                                            32       37
     commercial, technical and administrative management of            through the OV fiets system.                                       part of the day. The OV-fiets ticket machine was introduced
                                                                                                                                                                                                            Number of employees (FTEs) at year end              2,922        2,951
     the stations and station areas. The management company’s                                                                             at Den Bosch station. It lets you take out a subscription at
     motto is ‘Clean, undamaged and safe’.                             In 2010, 22 bicycle storage facilities were renovated              the station, pay for it using a debit card and hire an            Depreciation also includes amortisation and impairment
                                                                                                                                                                                                            1



                                                                       and provided with new racks, better lighting and clear             OV-fiets bicycle straight away. In the autumn OV-fiets
                                                                       signposting. A total of 58 bicycle storage facilities will         launched a new website using the ns.nl design.
           The platforms were kept free                                have been upgraded by the end of 2011.                             The site has a search facility for easily finding a hire          Rail infrastructure & construction
                    of ice and snow during                                                                                                location. The OV-fiets@home concept was introduced in
                                                                       A new feature in 2010 was the ‘Bicycle Storage Manager of          Utrecht and The Hague at the start of 2011. It allows             It was decided that Strukton was no longer part of the
             the severe winter of 2010                                 the Year’ competition. The NS bicycle storage facility in          commuters to cycle home in the evening on an OV-fiets             NS Group’s core activities. As a consequence, on 29 October
                                                                       Dordrecht has the honour of winning the first ‘Bicycle Storage     bicycle and return the bicycle the next morning to the            2010 NS sold Strukton – and with it the entire rail infra-
     The platforms were kept free of ice and snow during the           Manager of the Year’ prize. A survey by the Fietsersbond           storage facility at the station.                                  structure and construction segment – to Oranjewoud NV
     severe winter of 2010. Processors have been improved in close     (Dutch Cyclists’ Association) showed that Cees Zwaan’s storage                                                                       for €168 million.
     collaboration with ProRail, ensuring that stations remain         facility had been voted as the bicycle storage facility with the   Parking
     accessible for our passengers during severe winter weather.       best service in 2010 by customers of OV-fiets.                     In collaboration with Q-Park, NS Poort offers rail passengers
                                                                                                                                          a discount on rates for car parks and parking garages near        Other activities
     In the area of procurement, NS Poort and NedTrain                 A trial was held at five stations in 2010 which involved the       stations. There was a further increase in 2010 in the use of
     started up the Cleaning Commodity Team, which aims for            bicycle storage lockers being adapted to allow bicycles to be      paid parking spaces operated by Q-Park. Further expansion         The other activities include the staff of the holding company
     operational excellence, hospitality, service and sustainability   stored for a day after inserting a public transport smart card,    took place in 2010 in the number of free parking spaces at        and a number of support business units providing HR-related
     in cleaning work.                                                 a credit card or a prepaid card. The five stations were            Park-and-Ride locations: more than 1500 free parking spaces       services such as NS Opleidingen and NS Loopbaancentrum.
                                                                       Arnhem Zuid, Didam, Leerdam, Beilen and Vleuten.                   were created. This brings the number of free parking spaces       Intra group transactions between the two other segments
     Journey chain facilities                                          NS Fiets and ProRail are using the trial to see how much           to 20,700, at 127 locations, and the number of paid parking       have been eliminated in this segment so as to give an
     The train will be even more attractive as a means of              demand there is for this product.                                  spaces to 10,000 at 54 locations. Further expansion is being      accurate report of the overall financial situation.
     transport if connections between the station, the station                                                                            realised in partnership with the Ministry of Infrastructure       The total number of staff involved in these other activities
     area and the city are optimised. NS Poort ensures that            OV-fiets                                                           and the Environment as part of the ‘Groei op het Spoor’           is 462 (474 in 2009).
     customers can easily park their car or bicycle in the course      OV-fiets is a convenient rental bicycle for the last bit of        (Growth on the Railway) action plan. Budget has been
     of their door-to-door journeys and hire an OV-fiets bicycle       the journey. NS is providing this service to put into practice     allocated for 6,600 parking spaces.
     or NS scooter at their destination station.                       its ambition of offering transport from door to door.
                                                                       The OV-fiets bicycle can be hired at 230 locations, including      PTA
     NS Fiets                                                          around 175 stations, which means customers can transfer            Passenger Terminal Amsterdam (PTA) celebrated its first ten
     NS Fiets gives customers the option of storing their bicycles     to an OV-fiets bicycle at all major hubs. Electric NS scooters     years in 2010. The number of cruise ships received remained
     quickly and easily. Around 40% of passengers cycle to the         are also available at ten hire locations.                          virtually the same in this anniversary year at 90 (92 in 2009).
66   NS Annual Report 2010                                                                                                                                                                                                                                                             67




     Corporate Governance                                                                                                                                            Transparent governance means gaining insights
                                                                                                                                                                                       into decisions and decision-making procedures


           We are a large company with a key           As NS is not quoted on the stock exchange and does not                                           Corporate governance structure                               Corporate audit
                                                       have a one-tier management structure, some parts of the                                                                                                       Internal auditors perform their duties under the aegis of the
        community role within Dutch society,           code do not apply2. At NS, the corporate governance code is                                      Executive Board                                              Executive Board. The results of their work are discussed with
                                                       embedded in the rules of procedure for the Executive and                                         The Executive Board is responsible for managing the          the Audit Committee. The Executive Board ensures that the
             so we are very much aware of the          Supervisory Boards, the Audit Committee and the Remu-                                            business. It establishes the vision for the company and      Audit Committee and the external auditor are involved in
                                                       neration, Selection and Appointments Committee, as well as                                       the resulting mission, strategy and objectives.              drawing up the internal auditors’ plan of work.
                       importance of openness and      in a code of conduct and in a procedure for ‘whistleblowers’.                                    The business units and subsidiaries are responsible for
                                                                                                                                                        implementing the NS strategy. The management of              The Supervisory Board
           transparency. Although not a listed                                                                                                          the business units and subsidiaries is the responsibility    The Supervisory Board is charged with supervising the
                                                       Structure of the company                                                                         of their executive managers.                                 Executive Board’s policies and the general management of
         company, NS has voluntarily applied                                                                                                                                                                         the company and its affiliated enterprises, as well as advising
                                                       NV Nederlandse Spoorwegen                                                                        The Executive Board is responsible for managing the          the Executive Board. The Supervisory Board has defined a set
     the Dutch Corporate Governance code           1
                                                       NV Nederlandse Spoorwegen is a public limited company                                            business in a transparent way, with the aim of providing     of procedural rules to work by.
                                                       under Dutch law. Its management and supervision are based                                        all stakeholders with a clear understanding of the
                       ever since it was introduced.   on the rules applicable to its structure. The company is                                         company’s decisions and decision-making procedures.          Among its other tasks, the Supervisory Board evaluates the
                                                       managed by the Executive Board and supervised by the                                             To ensure this, the Executive Board has drawn up             organisational structure and how it functions in practice.
                                                       Supervisory Board. These two bodies are independent of                                           ‘Rules of Procedure for the Executive Board of               The Supervisory Board as a whole is responsible for the
                                                       each other. NV Nederlandse Spoorwegen is the holding                                             NV Nederlandse Spoorwegen’, which have been approved         proper performance of its duties, and its members can take
                                                       company of NS Group NV.                                                                          by the Supervisory Board.                                    independent positions regarding the Executive Board.
                                                                                                                                                                                                                     The Supervisory Board exercises its duties in the interests of
                                                       Shareholder                                                                                                                                                   our company and its business affairs, and in so doing will
                                                       The sole shareholder of NV Nederlandse Spoorwegen
                                                                                                                                                              The Executive Board reports                            weigh up all matters of relevance to the company.
                                                       is the Dutch State. The role of the company shareholder                                            to the Supervisory Board                                   Members of the Supervisory Board perform their duties
                                                       is performed by the Ministry of Finance. The company’s                                                                                                        without a mandate and independently of any personal
                                                       relationship with the General Meeting of Shareholders is
                                                                                                                                                                   and its Audit Committee                           interest in the company. They must not support any one
                                                       governed by the rules applicable to the company structure                                                                                                     interest without also taking account of all the other
                                                       and the articles of association.                                                                 The Executive Board performs its tasks in the company’s      interests at stake. The Supervisory Board is responsible
                                                                                                                                                        interests and provides the Supervisory Board promptly        for the quality of its own performance.
                                                       Organisation of the company                                                                      with the information it requires in order to do its work
                                                       The Executive Board bears the final responsibility for the                                       properly. To this end, the Executive Board also makes the
                                                       management of the whole company. NV Nederlandse                                                  necessary resources available and ensures that the           Requirements and compliance
                                                       Spoorwegen’s activities are divided into the two segments                                        Supervisory Board and its individual members obtain
                                                       Passenger Services and Hub Development & Operation.                                              all the information they require in order to function        Remuneration
                                                       These segments are made up of one or more business units                                         as the supervisory body of our company.                      The remuneration policy was approved by the General
                                                       or subsidiaries. Rail Infrastructure & Construction was sold                                     The Executive Board reports on developments in these         Meeting of Shareholders in 2004 and is reported upon in this
                                                       off in 2010.                                                                                     areas to the Supervisory Board and its Audit Committee       annual report in accordance with that resolution. There are
                                                                                                                                                        and discusses the internal risk management and control       regular discussions with the shareholder about the remu-
                                                                                                                                                        system (see the section on Risk Management on page 70)       neration policy. Key issues are the exercise of due care,
                                                                                                                                                        with them.                                                   transparency and restraint. Within the framework of the
                                                       1
                                                        Available via www.corpgov.nl
                                                       2
                                                        NS is not quoted on the stock exchange. The following best practice stipula-                                                                                 policy adopted, the Supervisory Board determines the
                                                        tions are therefore not applicable: II.2.4, II.2.5, II.2.6, II.2.7, III.7.1, III.7.2, lV.1.1,   The Executive Board’s Secretary, Ms G.M. Schumacher LLM,     remuneration of the Executive Board, acting on the advice
                                                        IV.1.2, IV.1.7, IV.2.1, IV.2.2, IV.2.3, IV.2.4, IV.2.5, IV.2.6, IV.2.7, IV.2.8, IV.3.1,
                                                                                                                                                        ensures that the proper procedures are followed and that     of the Supervisory Board’s Remuneration Committee.
                                                        IV.3.2, IV.3.3, IV.3.4, IV.3.11, IV.3.12, IV.3.13, IV.4.1, IV.4.2 and IV.4.3.
                                                       NS has a two-tier management structure. The following best practice stipulations                 the actions taken are consistent with the laws and regula-   NS does not extend any loans or guarantees to members
                                                       are therefore not applicable: III.6.4, III.8.1, III.8.2, III.8.3 and III.8.4.                    tions governing the Executive Board’s obligations.           of the Executive or Supervisory Boards.
68   NS Annual Report 2010 / Corporate Governance                                                                                                                                                      69




     Employment contracts with members                                 The articles of association and the rules of procedure of     External accountant
     of the Executive Board                                            the Supervisory Board also stipulate that members shall       The external auditor is appointed by the General Meeting
     New members of the Executive Board are appointed for four         periodically step down according to a fixed schedule drawn    of Shareholders. If this meeting does not make such an
     years, after which they may be reappointed. Employment            up by the Supervisory Board, in order to avoid wherever       appointment, the Supervisory Board is authorised to do
     contracts with new members of the Executive Board offer           possible large numbers of simultaneous appointments           so or, failing that, the Executive Board.
     them compensation on dismissal equivalent to one year’s           or reappointments.                                            The Audit Committee, acting on the Supervisory Board’s
     basic salary.                                                                                                                   behalf, is directly responsible for overseeing the work of the
     The existing agreements with members of the Executive             Committees of the Supervisory Board                           external auditor. At least once a year, the Audit Committee
     Board that pre-date the introduction of the Dutch corporate       The Supervisory Board has set up an Audit Committee and       prepares a joint report together with the Executive Board
     governance code remain in force.                                  a Remuneration, Selection and Appointments Committee.         for the Supervisory Board regarding developments
                                                                       The rules of procedure for these committees and detailed      concerning the external auditor, and in particular the latter’s
     Conflicts of interests/transactions between                       profiles of the members of the Supervisory Board can also     independence. Once every four years, the Audit Committee
     affiliated parties                                                be viewed on our website, www.ns.nl.                          and Executive Board also jointly carry out a thorough
     The Supervisory Board is responsible for resolving conflicts                                                                    appraisal of the performance of the external auditor.
     of interest between members of the Executive Board,               Audit Committee                                               The findings of this appraisal are presented to the General
     members of the Supervisory Board and the external auditor         The Audit Committee performs its duties in accordance         Meeting of Shareholders and the Supervisory Board.
     on the one hand, and the company on the other.                    with the rules of procedure as approved by the Supervisory    The external auditor attends those meetings of the
     Any decision by a member of the Executive or Supervisory          Board, in accordance with the provisions of the Dutch         Supervisory Board at which his report on the audit of the
     Board to enter into transactions entailing conflicts of           corporate governance code. The Audit Committee’s rules        financial statements is discussed and which deal with the
     interest of material significance to the company and/or           of procedure require the committee to have three              adoption of the financial statements. He also attends the
     the member of the Executive of Supervisory Board in               members. The Audit Committee is chaired by the Board’s        meeting of the Supervisory Board held to discuss the
     question requires the approval of the Supervisory Board.          financial expert, Dr F.J.G.M. Cremers.                        six-monthly figures.
     Members of the Executive and Supervisory Boards are
     required to notify the Chairman of the Supervisory Board          The Audit Committee is responsible for advising the
     (and the other members of the Executive Board, if the             Supervisory Board on and scrutinising the annual financial
     person concerned is a member of that board) without delay         statements, financing and financing-related strategies,
     of any actual or potential conflict of interest of significance   fiscal planning and the performance of the risk management
     to the company and/or themselves; they must then                  and control system. The entire Supervisory Board is respon-
     provide all relevant information. This also includes any          sible for supervision of the application of information and
     potential conflict of interest involving their spouse,            communications technology.
     registered partner or other partner in life, blood
     relatives, foster children or relatives by marriage up            Remuneration, Selection and Appointments
     to the second degree.                                             Committee
                                                                       This committee draws up a proposal for the remuneration
     Appointments, expertise and composition                           policy for members of the Executive Board and presents this
     of the Supervisory Board                                          to the Supervisory Board for approval. The Remuneration,
     Supervisory Board members are appointed by the General            Selection and Appointments Committee has three members
     Meeting of Shareholders, on the recommendation of the             and is chaired by H. Zwarts. The committee makes proposals
     Supervisory Board. The Central Works Council (COR) is also        for the salaries of the individual Executive Board members
     consulted beforehand, as required by law. The Supervisory         and also determines whether this salary is in line with the
     Board has at least five members. The Supervisory Board has        remunerations policy approved by the General Meeting of
     drawn up a profile of its size and composition, taking            Shareholders. In addition, the Committee decides on the
     account of the nature and activities of the company and           selection criteria and appointment procedures for the
     outlining the desired expertise and backgrounds of the            appointment of members of the Supervisory and Executive
     members of the Supervisory Board. The Supervisory Board           Boards, as well as periodically appraising the size and
     evaluates this profile periodically. According to its rules of    composition of the Supervisory Board and proposing a
     procedure and profile, a Board member can be appointed            profile for its makeup. It also prepares a report for the
     for a maximum of three terms of four years each. If a             Supervisory Board on its own performance and makes
     member is nominated for reappointment, the performance            recommendations for the appointment and reappointment
     of the Board member in question is specifically discussed.        of members of the Supervisory Board.
70   NS Annual Report 2010                                                                                                                                                                                                                                     71




                                                                                                                                                                   Thalys takes passengers from Rotterdam
                                                                                                                                                                                   to Paris in 2 hours 36 minutes
     Risk Management
     System of internal checks and                                              blower procedure allows staff to report (alleged) irregularities
                                                                                at the company to the confidential advisor, the Executive
                                                                                                                                                   functions such as corporate security, corporate control, risk
                                                                                                                                                   management, regulatory affairs and compliance, and the
                                                                                                                                                                                                                        ‘at high speed
     risk management                                                            Board or the Supervisory Board3. The procedure for whistle-
                                                                                blowers describes the rights and obligations of every member
                                                                                                                                                   confidential advisor.
                                                                                                                                                                                                                     by train through
     The Executive Board is responsible for the company’s internal
     risk management and control system and for assessing its
     effectiveness. The NS-wide risk management and control
                                                                                of staff making a report under this procedure and also sets
                                                                                out the obligations of management. Staff who use the
                                                                                procedure as whistleblowers and report (alleged) irregu-
                                                                                                                                                   Principal risk factors                                                  Europe’
     system is designed to limit the risk of our business goals                 larities or help others to do so can act without jeopardising      Our decision-making and objectives are based in part on our
     not being achieved. It is not designed to eliminate this risk;             their legal position. Reports can be made by staff in confi-       expectations of future developments. This section gives an      NS is a company without borders and
     a system can offer reasonable, but not total, protection                   dence. Reports relating to members of the Executive Board          overview of the most relevant risks and uncertainties liable    explicitly includes the rest of Europe in
     against loss or errors of material importance.                             are made to the Chairman of the Supervisory Board.                 to affect the forecast future developments and therefore the    its scope as well. Train journeys do not
                                                                                                                                                   realisation of our objectives.                                  stop at the national borders.
     The risk management framework has been implemented                         Rules of procedure for the Executive Board                                                                                         NS Hispeed’s Thalys and ICE services
     throughout the Group. Risk assessments are an integral part                and assigned authorities                                           Market risks/political decision-making                          travel at great speed to destinations in
     of the Group’s annual planning and control cycle, and they                 Besides the assigned authorities, the rules of procedure           High-Speed Line (HSL) South                                     other countries and Fyra too will be
     are discussed annually with the Audit Committee and the                    of the Executive Board contain internal requirements               In October 2010 HSA introduced a half hourly Fyra service       running to Brussels from the end of
     Supervisory Board. The risk assessments identify the main                  such as rules on investments, the policy on insurance,             between Amsterdam and Rotterdam using Traxx/Prio                2011. There was a further increase in
     risks the company faces with regard to operations, finance                 regulatory affairs and compliance issues, the risk                 rolling stock. This was two months earlier than anticipated     the volume of train services on the HSL
     and compliance.                                                            management policy document, the financial process                  in its strategic plan. Since December 2010, Fyra has been       South in 2010. There are now ten Thalys
                                                                                risk management manual and the planning and control                running twice an hour in the weekend as well. In 2011 we        trains a day on this route, taking
     The risk management and control system for financial                       cycle. The manuals for these items can be viewed by                will be extending this service to Breda. This expansion is      passengers from Rotterdam to Paris in
     reporting is based on the NS handbook for risk management                  all NS staff on the intranet.                                      dependent on the implementation of temporary measures           two hours and 36 minutes. Fyra has also
     in financial processes, clear bookkeeping rules in the NS                                                                                     to solve the EMC problems on the HSL South. The Thalys          increased the frequency of its domestic
     Reporting Manual and a standard reporting structure.                       Assigned authorisations                                            service also ran on the HSL South in 2010, with the number      services from one train an hour to two
     The main NS business units are subjected to an audit as if                 Representative authority, including the authority to sign          of trains being increased to ten a day.                         an hour including in the weekends.
     they were required to publish results in their own right.                  documents, is held by each individual member of the                                                                                NS carried nearly 3.5 million passengers
                                                                                Executive Board as well as other officers appointed for            HSA is expecting to be able to run the first V250 train         on its international services in 2010, an
     Given this risk management and control system, we believe                  this purpose by the Executive Board, subject to the                as a pilot trial in 2011. A key risk affecting the continuity   increase of 14%. Passengers abroad also
     that the system set up for financial reporting is adequate                 restrictions as filed with the Chamber of Commerce and             of HSA is too little revenue in comparison with the             come across NS as the local or regional
     and that it has functioned correctly during this financial                 Industry. NS has had such a procedure governing authori-           concession fee. In addition to offering a reliable product      carrier. Abellio – a fully owned
     year. In the opinion of the Executive Board, there are no                  sation for many years now.                                         and attractive propositions, we are also discussing possible    subsidiary of NS – has operations in
     indications at this moment that the risk management and                                                                                       strategies with the State for a solution to guarantee the       Great Britain, Germany and the
     control system will fail to work properly in 2011.                         Reporting structure                                                continuity of HSA. This is not just in view of the investment   Czech Republic, and carries more
                                                                                The reporting structure at NS reflects the way in which the        in the HSL South, but above all in the interests of our         than 650,000 passengers daily.
     Risk management framework                                                  separate business units are run. The Executive Board is            passengers. The Minister informed Parliament about this
     The relevant components of the risk management                             responsible for introducing and guaranteeing effective             at the end of January 2011.
     framework include the current codes of conduct, the rules of               controls. The success of these controls is evaluated by
     procedure for the Executive Board, the assigned authorisa-                 self-assessments carried out by the directors of the business      Budget for expansion and/or maintenance of
     tions, the planning and control cycle and reporting on these.              units, as well as in internal investigations by the NS corporate   infrastructure
                                                                                audit department. Reports by the management and the                Some sections of the railway infrastructure in the
     Codes of conduct                                                           Corporate Audit department on the quality of (financial)           Netherlands are used right to the limit of their capacity
     The good conduct code can be found on the NS website                       processes and internal controls are presented to the Executive     every day. NS and other parties in the sector are closely
     (www.ns.nl). Among other things, this code of conduct                      Board and discussed with the Supervisory Board’s Audit             involved in plans aimed at making investments to remove
     contains the procedure for ‘whistleblowers’. The whistle-                  Committee, as are any issues emerging from corporate               bottlenecks and to make further growth in passenger and

     3
         This depends on the situation; see the procedure for whistleblowers.
72   NS Annual Report 2010 / Risk Management                                                                                                                                                             73




     freight transport possible. The new Cabinet’s investments        where necessary to bring about improvements or to              some stations. The far-reaching renovations could have
     in the infrastructure remain the subject of political debate.    maintain the structurally high level of safety.                a major impact on customer satisfaction and the financial
     Every governmental decision to make less budget available                                                                       result (higher costs and lower revenue). The project board,
     for infrastructure projects or maintenance will have a           An early warning system has been implemented in                in which the executive boards of both NS Poort and ProRail
     negative impact on the quality of the services we                cooperation with the government body NCTb (National            are represented, manages project progress and cost control.
     provide to passengers and on achieving the intended              Coordinator for Counter-terrorism). We also regularly
     passenger growth.                                                assess with NCTb whether the preventive measures need          Extreme disruptions
                                                                      to be modified in response to an increase in the threat        If NS is unable to manage extreme disruptions appropriately,
     Liberalisation                                                   of terrorism. Despite this system, NS is aware that a system   it will not be able to provide its customers and staff with the
     The competitive model of putting regional concessions            can never be watertight offering 100% certainty.               performance it aims for. In 2010, a fault in the overhead lines
     out to tender is continuing to evolve throughout Europe.                                                                        in the Schiphol Tunnel, the fire at the traffic control office in
     The pace of change in the European rail market has               Introduction of public transport smart cards                   Utrecht and the wintry weather all resulted in variable and
     increased with the third European railways package, the          and gates                                                      unpredictable services for some time. The measures taken in
     liberalisation directive that came into force on 1 January       The nationwide introduction of public transport smart cards    response to the disruptions in 2009 resulted in better
     2010 (including the right to cabotage or carrying domestic       at NS was continued and extended in 2010. There has been       corrective actions to deal with the disruptions. However,
     passengers on cross-border trains) and the proposed              steady growth in their use, with the milestone of one          they were unable to prevent the level of service being
     revision of the first railways package, the Recast. Some         million activated public transport smart cards being           poorer than intended. In particular, improvements to
     examples are the DB/Arriva and Transdev/Veolia mergers,          achieved at the end of 2010. The balance adopted between       journey information for our customers and our staff remain
     and DB’s plans to provide a service on the Amsterdam-            the speed of the introduction and due care has turned out      an important point for attention.
     London route. This has been one factor in the increase in        to be effective. The service processes and the public
     investigations by the European Commission and procedures         transport smart card system have developed in a stable
                                                                                                                                         Improving journey information remains
     relating to competition law by the Dutch and European            fashion in line with the increase in the use of the public
     regulatory authorities for the rail markets.                     transport smart card.                                             an important point for attention
                                                                      A start was made in 2010 on working out the details
             Examples of the changing face                            and testing various potential products, which will be rolled
                                                                                                                                     Projects
                                                                      out in 2011. For instance, travelling on account will be
               of the rail market are the DB/Arriva                   introduced, in addition to being able to use the card
                                                                                                                                     The risk profile for projects for NS as a whole has been
                                                                                                                                     reduced by the sale of Strukton in 2010 and the strategic
           and Transdev/Veolia mergers                                as a stored-value card. This all still means step-by-step
                                                                                                                                     decision for NS Poort to develop projects in station areas
                                                                      development and controlled introduction, investigating
                                                                                                                                     only from now on. Even so, proper project control remains
     At NS, policy and management powers regarding these              how customers and staff feel about the new features and
                                                                                                                                     important to achieving strategic and financial objectives.
     areas have been defined in the rules of procedure of the         taking time to implement improvements where necessary.
                                                                                                                                     Risk management is intensified in projects of major
     Executive Board and implemented. NS’s competitors submit         Other important issues remain phasing out paper tickets,
                                                                                                                                     strategic significance, such as journey information and
     complaints or requests for investigations to the regulatory      transferring to and from other carriers, and bringing more
                                                                                                                                     infrastructure projects within the programme for very
     authorities with some regularity. The regulatory authorities     gates into operation. Here, too, the foundations were laid
                                                                                                                                     frequent train services, which is being carried out in
     have not seen any reason to impose enforcement measures          in 2010 for a gradual, controlled introduction in the years
                                                                                                                                     partnership with ProRail.
     or fines on NS.                                                  to come. Collaboration with such parties as the passengers’
                                                                      association Rover, the Government, ProRail and TransLink
                                                                                                                                     Financing risks
     Operating Risks                                                  Systems (TLS) is crucial in order to manage the expectations
                                                                                                                                     Recession
     Safety                                                           of these parties.
                                                                                                                                     The recession had a limited impact in 2010. It is unclear
     Safety of staff and passengers is one of the prerequisites for
                                                                                                                                     whether and to what extent the recovery just starting in the
     NS’s operations. NS produces overviews of the main safety
                                                                                                                                     economy will continue in 2011 and what the consequences
     developments every quarter in order to stay informed about            Extensive modifications to a                              will be for the results of NS.
     developments in safety. The main areas of concern are
     improvements in safety on the track, a safe and secure
                                                                                  number of major stations
                                                                                                                                     Please also refer to the Accounting Principles for Financial
     environment, and accidents at work (and the related sickness
                                                                                                                                     Instruments accompanying the Consolidated Financial
     absence). In addition, there are preventative meetings of the    Upgrading stations (key projects)
                                                                                                                                     Statement (page 88).
     crisis management organisation to establish specific             A number of major stations – known as the New Key
     measures for events with a high security risk, such as the       Projects – will undergo radical alterations over the coming
     reception for the Dutch football team after the World Cup.       years. The parties commissioning these projects are ProRail,
     Based in part on these insights, actions are undertaken          NS and local authorities. The actual work has started at
74   NS Annual Report 2010                                                                                                                                                                                                                                                                        75




     Financial overview
           NS recorded higher revenue in 2010       Result from operating activities                                 Specification of revenue*
                                                    The result from operating activities in 2010 amounts to
                                                                                                                                                                                                                                               2010                                        2009
          and a larger operating result due to      €234 million, an increase of €84 million compared with           amounts in millions of euros                                                                              €                 %                       €                   %
                                                    2009 (€150 million).
             an increase in passenger revenues                                                                       Revenue from passenger services                                                                   2,880                   82                2,699                     82
                                                    In 2009, NS took measures to deal with the consequences of       Revenue from hub development and operation                                                          686                   19                  613                     19
      and increased revenues from property          the recession. This resulted in one-off expenditure due to       Revenue from other activities                                                                       -46                   -1                  -41                     -1
                                                    setting aside a provision for reorganisation and writing off
                                                                                                                     Total revenue                                                                                   3,520                   100               3,271                   100
                       development and operation.   costs of property and development projects. There were no
                                                    such one-off items in 2010. In addition, better results were     * In order to maximise the customer focus, NS clusters the business units in a logical manner around coherent processes in the fields of rolling stock maintenance,
                                                    achieved on the development and sale of property.                  passenger services, and hub development and operation.


                                                    Please refer to the chapter on ‘Results of Activities’, from
                                                    page 52 onwards, for further information about the
                                                    developments within the segments.
                                                                                                                     Hub development and operation                                                          The sale of Strukton led to a decrease in the average
                                                    Revenue                                                          Revenue from the hub development and operation segment                                 workforce by 6,059 FTEs. At NS Reizigers, NedTrain and
                                                    NS’s revenue rose from €3,271 million in 2009 to                 rose by €73 million to €686 million. There was an increase in                          NS Poort, the average workforce decreased, by a total
                                                    €3,520 million in 2010.                                          revenue from property sales and development.                                            of 492 FTEs.


                                                       Revenue from passenger services                               Other activities
                                                                                                                     The ‘other activities’ include supporting business units and                                       Access charge for
                                                                   increased by €181 million                         the holding company management and staff, as well as the
                                                                                                                     elimination of intra-Group transactions between the                                            rail infrastructure rose
                                                    Passenger transport
                                                    Revenue from the passenger services segment increased
                                                                                                                     different segments within the Group.
                                                                                                                                                                                                                          by €17 million
                                                    by €181 million to €2,880 million. Revenues from the main        Operating expenses
                                                    Dutch rail network rose from €1,822 million to €1,851 million.   NS’s operating expenses rose from €3,121 million in 2009                               The depreciation costs of €337 million were €33 million
                                                    This increase is primarily the result of higher revenues from    to €3,286 million in 2010.                                                             higher than in 2009, as a result of the replacement of old
                                                    the public transport student pass. Revenue from foreign and      The wages, salaries and social security charges rose by                                rolling stock by new rolling stock.
                                                    international (cross-border) transport by NS Hispeed rose by     7% from €1,029 million in 2009 to €1,101 million in 2010.                              Costs for raw materials, consumables, inventories and energy
                                                    €26 million compared with 2009 to €150 million. This rise is     A major factor in explaining this rise is the higher average                           rose due mainly to an expansion of activities at Abellio.
                                                    mainly due to increased revenue from Fyra. Revenue from          staffing levels due to the acquisition of Abellio London in                            The costs of outsourced work and some other external costs
                                                    passenger services abroad provided by Abellio increased by       2009 and the start of a new concession in 2010.                                        are higher due to higher levels of activity in property and
                                                    €46 million to €629 million, mainly due to the revenue of                                                                                               development at NS Poort, higher costs for cleaning and
                                                    Abellio London, which was acquired in 2009.                      For staff covered by NS’s own and other collective labour                              higher IT costs.
                                                                                                                     agreements, €28 million was paid in pension contributions in
                                                    In the passenger services segment, revenue from our 49%          2010, compared with €26 million in 2009. For staff covered                             The access charges for the rail infrastructure (infrastructure
                                                    participating interest in Qbuzz also increased. The start of     by the NS collective labour agreement, two thirds of the                               levy) increased by €17 million in total to €379 million
                                                    new bus concessions at the end of 2009 meant that this           pension contribution deducted is borne by the company and                              (€362 million in 2009). The access charges for the rail
                                                    revenue rose by €43 million.                                     one third by the employees.                                                            infrastructure in the Netherlands rose from €203 million to
                                                                                                                                                                                                            €246 million, primarily due to the €74 million concession fee
                                                    The other operations in this segment generated about the         The average workforce for the year as a whole fell by                                  for the HSL (€29 million in 2009). The access charge in Britain
                                                    same revenue as in 2009.                                         6,526 FTEs, from 29,505 in 2009 to 22,979 FTEs in 2010.                                was €113 million in 2010 (€140 million in 2009).
76   NS Annual Report 2010 / Financial Overview                                                                                                                                                                                                                         77




                                                             The fall is the result of a change in the method used to         Investments                                                         Equity
                                                             determine the charges whereby both the access charge             Additions to property, plant and equipment and to intan-            At the end of the year under review equity was €2,831
                                                             and the government’s contributions were reduced by an            gible fixed assets totalled €633 million in 2010, compared          million (€2,871 million in 2009). In 2010, a dividend of €41
                                                             equal proportion. The access charge for the German rail          with €666 million in 2009. These additions were primarily in        million was paid to the Government (as the shareholder) on
                                                             infrastructure was €20 million (€19 million in 2009).            rolling stock. Payments were made for the double decker             the profit for 2009. In addition, there was again an extra
                                                                                                                              trains, Sprinters and high-speed trains ordered as part of the      dividend payment, this time of €155 million.
                Like any company, NS continues to            Other operating expenses include insurance premiums,             continued upgrades to the train fleet. NS also continued to         The profit of €149 million for the period under review,
                monitor costs. This is important if the      office accommodation and inventory costs, auditor’s              invest in modernising the Intercity rolling stock. NS Poort has     including the dividend to be paid out on this profit, was
                continuity of its services is to be          fees, publicity costs, rental and lease costs for operating      invested in property projects in Rotterdam, Zaandam and             credited to equity.
                guaranteed. A return on invested capital     assets, and additions to provisions. In 2010 this item           elsewhere, as well as in retail formats. NedTrain also made         Solvency, at 53%, was higher than last year (48% in 2009),
                of at least 7% after tax is required to      included the addition to the provision for the loss-making       investments in the Tilburg component plant and the                  primarily due to the sale of Strukton.
                enable continued investment in quality       contract for the HSA operations of €7 million                    Rotterdam Waalhaven workshop.                                       The return on investments (ROI) is 3.4%, which is higher than
                improvements. There must be enough           (€62 million in 2009).                                                                                                               in 2009 (2.2%) due to the higher profits over the period
                cash in the future for new, modern                                                                                                                                                under review. As previously stated, we seek to achieve a
                trains and a perfectly maintained rail       Net finance income                                                                      Profits rose by                              post-tax return on our investments of at least 7% so that we
                network. NS will remain alert over the
                years to come to innovations and new
                                                             The net finance income fell by €26 million, now making a
                                                             negative contribution of €22 million. Interest income fell by
                                                                                                                                               €33 million in 2010                                can continue to invest in growth and quality.

                techniques, to enable passengers to          €22 million, primarily due to a reduction in cash at the end
                travel even more comfortably.
                                                                                                                                                                                                                 NS is expecting limited growth
                                                             of 2009 resulting from the payment of an additional              Financing
                The NS budget naturally also encompas-       dividend of €1,400 million.                                      The net cash flow from operating activities was €673 million
                                                                                                                                                                                                          in passenger numbers next year
                ses an attractive, diverse range of                                                                           (€821 million in 2009). Investments in fixed assets required a
                products and services for its passengers.    Taxation                                                         net outgoing cash flow of €596 million (€666 million in 2009).      Prospects
                Travelling by train must be, and must        The effective tax rate for the result before corporate income    The transfer of cash to deposits came to €59 million in 2010        Given the uncertain situation in the market and the hesitant
                remain, a fairly affordable alternative to   tax is 24.7% compared with 26.1% in 2009.                        (as opposed to a negative figure of €1,304 million in 2009).        economic recovery, we expect limited growth in passenger
                the car. The increasing range of services    The corporate income tax was calculated on the basis of the      This transfer has been classified as part of the cash flow from     numbers in the coming year and we shall continue to
                available through the public transport       applicable tax rates, taking into account tax rules. The tax     investment activities, which is one reason why the cash flow        keep a close eye on costs. Planned investments will continue.
                smart card makes payment and travel-         rules include participation exemption, tax compensation of       from investment activities was €550 million negative for            In addition, it is extremely important that a solution is
                ling increasingly easy. There is some-       losses and the notional addition for costs that are deductible   2010 (2009: €676 million). The dividend payment of €196             found for the worrying financial situation at HSA. It is also
                thing to suit every taste.                   to a limited extent. Deferred tax items were written down to     million (2009: €1,498 million) has been included as a cash          highly desirable that the situation regarding the extension
                                                             a sum of €7 million because of the reduction in the corporate    flow from financing activities. Partly as a result of this, there   of the main rail network concession from 2015 onward
                                                             income tax rate.                                                 was a negative cash flow of €162 million (in 2009 there was         should be clarified as soon as possible In the long term,
                                                                                                                               a negative cash flow of €27 million). The above-mentioned          we still expect that demand for our services will pick up
                                                             Result from discontinued operation                               receipts and expenditure are part of the reason the working         again as the economy recovers, and that this will be
                                                             NS sold Strukton Group on 29 October 2010, thus termi-           capital decreased by €122 million (2009: €307 million).             reflected in the results.
                                                             nating the Rail infrastructure & construction business
                                                             segment. The overall result for the terminated business
                                                             operation in that financial year was a loss of €11 million
                                                                                                                              Specification of operating expenses
                                                             (a loss of €1 million in 2009). The comparative figures have
                                                                                                                                                                                                                               2010                              2009
                                                             been adjusted as a result of the sale of Strukton.               amounts in millions of euros                                                         €             %                 €               %


                                                             Profit for the period                                            Wages, salaries and social security charges                                  1,101               33          1,029                 33
                                                             The above means that the profit for the period under review      Staff hired in                                                                 64                 2             71                  2
                                                             rose by €33 million, from €116 million in 2009 to €149 million   Other personnel expenses                                                       73                 2             81                  2
                                                             in 2010.                                                         Depreciation/amortisation/impairment                                          337               10             304                 10
                                                                                                                              Raw materials, consumables, inventories and energy                            494               15             467                 15
                                                             Profit appropriation                                             Subcontracted work and other external costs                                   420               13             334                 11
                                                             A proposal will be made to distribute €52 million of the         Infrastructure levy                                                           379               12             362                 12
                                                             profit for the period under review of €149 million               Other operating expenses                                                      418               13             473                 15
                                                             (35% of the profit for the period) as dividend and to add
                                                                                                                              Total operating expenses                                                     3,286              100          3,121               100
                                                             the remaining amount of €97 million to the reserves.
78   NS Annual Report 2010 / Financial Overview




     Key financial figures
     amounts in millions of euros                                  2010             2009



     Equity
     Capital base/total assets                                  53%               48%
     Current assets/current liabilities                           0.8              0.9
     Working capital 1                                           -646             -524
     Total assets                                              5,794             6,514
                                                                                                                     Jaarverslag
     Profitability                                                                         Verslag van de raad van commissarissen     34
     Result from operating activities/revenue
     (ROS - return on sales) 2                                  6.6%             4.6%                      Verslag van de directie    36
     Profit for the period/average invested
     capital 3) (ROI - return on investment)                    3.4%             2.2%
                                                                                                          Verslag van activiteiten    42
     Profit for the period/average equity                                                                 Duurzaam en betrokken       54
     (ROE - return on equity)                                   5.2%             3.3%

     1 Working capital: inventories plus current receivables minus current liabilities.
                                                                                                       Resultaten van activiteiten    60
     2 The comparative figures have been adjusted as a result of the sale of
       Strukton.
                                                                                                           Corporate Governance       70
     3 Invested capital: total assets less non-interest-bearing current liabilities.
                                                                                                                 Risicobeheersing     74
                                                                                                                        Financiën     78


                                                                                                             Financial Statements
                                                                                                Consolidated Financial Statements     80
                                                                                                    Separate Financial Statements    140


                                                                                                                            Other
                                                                                                               Other Information     142
                                                                                                        Segmentation Breakdown       144
                                                                                                                 Five Years of NS    145
                                                                                                                    GRI Indicators   148
                                                                                                                            Index    156




                                                                                                               Annual Report 2010
80   NS Annual Report 2010                                                                                                                                                                                                                                               81




     Consolidated 2010 financial statements
                                                   Consolidated balance sheet NV Nederlandse Spoorwegen                             Consolidated income statement for 2010 of
                                                   As at 31 December 2010                                                           NV Nederlandse Spoorwegen
                                                                                                   31 December   31 December
                                                   in millions of euros                                  2010          2009         In millions of euros                                                          2010    2009 *)

                                                                                                                                    Continuing operations
                                                   Assets                                                                      17   Revenue                                                                    3,520      3,271
                                                   Non-current assets                                                          18   Personnel expenses                                                         1,238      1,181
                                              1    Property, plant and equipment                      3,272         3,150      19   Depreciation, amortisation and impairment                                   337        304
                                              2    Investment property                                  309           317      20   Use of raw materials, consumables and inventories                           494        467
                                              3    Intangible assets                                     64           157      21   Costs of subcontracted work and other external costs                        420        334
                                              4    Investments in equity accounted investees             14            40      22   Infrastructure fees                                                         379        362
                                              5    Other financial assets, including investments        146           305      23   Other operating expenses                                                    418        473
                                              6    Deferred tax assets                                  407           438           Total operating expenses                                                   3,286      3,121
                                                   Total non-current assets                           4,212         4,407           Result from operating activities                                            234        150
                                                                                                                                    Finance income                                                                16        38
                                                   Current assets                                                                   Finance expenses                                                             -38        -34
                                              7    Inventories                                           95           132      24   Net finance result                                                           -22         4
                                              5    Other investments                                    209           150           Share in result of equity accounted investees                                  1          -
                                              8    Trade and other receivables                          892         1,245           Profit before income tax                                                    213        154
                                                   Corporate tax receivable                               -            34      25   Income tax expense                                                           -53        -37
                                              9    Cash and cash equivalents                            386           546           Profit from continuing operations                                            160       117
                                                   Total current assets                               1,582         2,107

                                                   Total assets                                     5,794         6,514             Discontinued operation
                                                                                                                                    Result from discontinued operation (net of income tax) **)                   -11         -1
                                                                                                                                    Profit for the period                                                        149       116
                                                   Equity and Liabilities
                                              10   Equity
                                                                                                                                    Attributable to:
                                                   Share capital                                      1,012         1,012
                                                                                                                                    Equity holder of the Company                                                 149       116
                                                   Reserves                                           1,670         1,743                                                                                                           The notes and disclosures
                                                                                                                                    Minority interest                                                               -         -     contained on pages 86 to 139
                                                   Retained earnings                                    149           116
                                                                                                                                                                                                                                    form an integral part of these
                                                   Minority interest                                      -             -
                                                                                                                                    Profit for the period                                                      149        116
                                                                                                                                                                                                                                    consolidated financial statements.
                                                   Total equity                                       2,831         2,871           *) The comparative figures have been adjusted due to the sale of Strukton Groep NV.
                                                                                                                                    **) See notes on pages 97 and 99.
                                              11   Deferred credits                                     213           229


                                              12   Loans and borrowings                                 315           785
                                              13   Employee benefits                                     34            34
                                              14   Provisions                                           175           233
                                                   Accruals                                             103            29
                                               6   Deferred tax liabilities                             103            88
                                                   Total non-current liabilities                        730         1,169


                                              12   Bank overdrafts                                        -            18
                                              12   Loans and borrowings                                 387           292
                                                   Corporate tax payable                                  7             -
                                              15   Trade and other payables                             794         1,210
                                              16   Deferred income                                      751           707
                                              14   Provisions                                            81            18
                                                   Total current liabilities                          2,020         2,245

     The notes on pages 86 to 139 form             Total liabilities                                  2,750         3,414
     an integral part of these consolidated
                                                   Total equity and liabilities                     5,794         6,514
     financial statements.
82   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                      83




                                                Consolidated statement of the total result for 2010 of                                 Consolidated cash flow statement for 2010 of
                                                NV Nederlandse Spoorwegen                                                              NV Nederlandse Spoorwegen
                                                In millions of euros                                              2010    2009         In millions of euros                                            2010       2009


                                                                                                                                       Profit for the period                                         149        116
                                                Profit for the period                                            149     116
                                                                                                                                       Adjustments for:
                                                Currency translation differences on foreign activities             3       2
                                                                                                                                       Result from discontinued operation                             11          1
                                                Effective portion of changes in fair value of cash flow hedges     3      -1
                                                                                                                                 1-3   Depreciation and (reversal of) impairment losses              369        332
                                                Net change in fair value of available-for-sale
                                                                                                                                       Net finance result                                             18          2
                                                financial assets                                                   4      -1
                                                                                                                                       Release of deferred credits                                    -15       -13
                                                Defined benefit plans actuarial result                            -2       1
                                                                                                                                       Income tax expenses                                            19         40
                                                Other changes                                                      -       3
                                                                                                                                                                                                     551        478
                                                Income tax on income and expenses recognised directly                                  Changes in inventories                                         12          2
                                                in equity                                                         -1       -
                                                                                                                                       Changes in trade and other receivables                         -95       134
                                                Income and expenses recognised directly                                                Changes in provisions                                          19         72
                                                in equity                                                          7       4
                                                                                                                                       Change in other non-current liabilities                        78         21
                                                Total recognised result for the period                           156     120           Change in current liabilities excluding credit institutions   108         44
                                                                                                                                                                                                     673        751
                                                Attributable to:                                                                       Interest paid                                                  -37       -49
                                                Equity holder of the Company                                     156     120     25    Income tax                                                     37        119

     The notes on pages 86 to 139               Minority interest                                                  -       -           Net cash from operating activities                            673        821
     form an integral part of these
                                                Total recognised result for the period                           156     120           Interest received                                              16         45
     consolidated financial statements.
                                                                                                                                       Dividends received                                              1           -
                                                                                                                                       Disposal of discontinued operation, net of cash *)            102        -32
                                                                                                                                 1,3   Acquisition of intangible assets and property,
                                                                                                                                       plant and equipment                                           -587      -660

                                                                                                                                 2     Acquisition of investment properties                            -9         -6
                                                                                                                                       Income from other investments                                  -59     1,304
                                                                                                                                       Other changes in non-current financial assets,
                                                                                                                                       including investments                                          -21       -36
                                                                                                                                       Other changes in non-current assets                             7         61

                                                                                                                                       Net cash flow from investing activities                       -550       676


                                                                                                                                       Net cash flow from operating and investing activities         123      1,497


                                                                                                                                       Other changes in deferred credits                              -1          4
                                                                                                                                       Repayments of liabilities                                     -299      -103
                                                                                                                                       Non-current liabilities taken out                             211         73
                                                                                                                                 10    Dividends paid                                                -196     -1,498
                                                                                                                                       Net cash from financing activities                            -285     -1,524


                                                                                                                                       Net decrease (increase) in cash and cash equivalents          -162       -27
                                                                                                                                       Cash and cash equivalents as at 1 January                     546        571
                                                                                                                                       Effect of exchange rate fluctuations on cash held               2          2

                                                                                                                                       Cash and cash equivalents                                                         The notes and disclosures contained on
                                                                                                                                 9                                                                   386       546       pages 86 to 139 form an integral part of
                                                                                                                                       as at 31 December
                                                                                                                                                                                                                         these consolidated financial statements.
                                                                                                                                       *) See notes on page 99
84   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                                                              85




     Consolidated statement of changes in equity of                                                                                                       Consolidated statement of changes in equity of
     NV Nederlandse Spoorwegen                                                                                                                            NV Nederlandse Spoorwegen

                                                                  Foreign                                                                                                                                             Foreign
                                                                 currency                  Fair                                                                                                                      currency                  Fair
                                                     Share    translation   Hedging      value    Actuarial   Retained              Minority      Total                                                  Share    translation   Hedging      value    Actuarial   Retained             Minority     Total
     In millions of euros                           capital       reserve    reserve   reserve     reserve    earnings      Total   interest     Equity   In millions of euros                          capital       reserve    reserve   reserve     reserve    earnings     Total   interest    Equity

     Balance as at 1 January 2009                  1,012             -6       -15           -           5     3,253      4,249           -     4,249      Balance as at 1 January 2010                 1,012             -4       -16         -1            6     1,874      2,871          -     2,871




     Profit for the period                                                                                      116        116           -       116      Profit for the period                                                                                     149       149           -      149



     Income and expenses recognised                                                                                                                       Income and expenses recognised
     directly in equity                                                                                                                                   directly in equity

     Currency translation differences on                                                                                                                  Currency translation differences on
     foreign activities                                               2                                                       2          -          2     foreign activities                                              3                                                      3          -         3

     Effective portion of changes in fair value                                                                                                           Effective portion of changes in fair value
     of cash flow hedges, after tax                                             -1                                           -1          -         -1     of cash flow hedges, after tax                                             2                                           2          -         2

     Net change in fair value of available-for-                                                                                                           Net change in fair value of available-for-
     sale financial assets, after tax                                                     -1                                 -1          -         -1     sale financial assets, after tax                                                     3                                 3          -         3

     Defined benefit plans actuarial result,                                                                                                              Defined benefit plans actuarial result,
     after tax                                                                                          1                     1          -          1     after tax                                                                                        -1                   -1          -        -1
     Other changes                                                                                                 3          3          -          3     Other changes                                                                                                          -          -         -

     Total income and expenses recognised                                                                                                                 Total income and expenses recognised
     directly in equity                                               2         -1        -1            1          3          4          -          4     directly in equity                                              3          2         3           -1          -         7          -         7



     Total recognised income and expense                                                                                                                  Total recognised income and expense
     for the period                                                   2         -1        -1            1       119        120           -       120      for the period                                                  3          2         3           -1       149       156           -      156



     Transactions with owners, directly                                                                                                                   Transactions with owners, directly
     recognised in equity                                                                                                                                 recognised in equity

     Dividend paid to share holder                                                                            -1,498     -1,498          -     -1,498     Dividend paid to share holder                                                                            -196       -196          -      -196


     Balance as at 31 December 2009                1,012             -4       -16         -1            6     1,874      2,871           -     2,871      Balance as at 31 December 2010               1,012             -1       -14          2            5     1,827      2,831          -     2,831
86   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                             87




     Notes to the consolidated financial                              adjusted on some points for comparative purposes, partly           Important principles for                                          Elimination of transactions upon consolidation
                                                                      as a result of the sale of Strukton.                                                                                                 Intra-group balances and income and expenses from
     statements for 2010                                                                                                                 financial reporting                                               transactions between Group companies are eliminated
                                                                      Assumptions and estimates                                                                                                            when the financial statements are prepared.
     Reporting entity                                                 The preparation of the financial statements require that           Principles for consolidation
     NV Nederlandse Spoorwegen has its registered seat in             management make certain estimates and assumptions that             Subsidiaries                                                      Unrealised gains from transactions with investments
     Utrecht in the Netherlands. The company’s consolidated           impact on the application of accounting principles and the         Subsidiaries comprise those companies in which NV Neder-          accounted for using the equity method are eliminated
     financial statements for the 2010 financial year include         reported value of assets and liabilities and income and            landse Spoorwegen has direct or indirect control. Control is      in proportion to the Group’s share in the investment.
     the company and its subsidiaries (hereinafter referred to as     expenses. The estimates and the corresponding assumptions          defined as when the Group is able to determine directly or        Unrealised losses are eliminated in the same way as
     the ‘Group’) and the Group’s share in participating interests    are based on past experiences and different other factors          indirectly the financial or operating policy of a company in      unrealised gains, but only to the extent that there is
     and companies which it controls jointly with third parties.      which, given the circumstances, can be seen as reasonable.         order to obtain benefits from the activities of the company.      no indication of impairment.
     NV Nederlandse Spoorwegen is the holding company of              The actual outcomes may differ from these estimates.               The financial statements of subsidiaries are fully consoli-
     NS Groep NV which, in turn, is the holding company of the        The estimates and the underlying assumptions are reviewed          dated with effect from the date control was first obtained        Any third-party interests are carried separately on the
     operating companies that implement the Group’s different         on a regular basis. Revised estimates are recognised in the        until the date on which such control ends.                        balance sheet and in the income statement.
     operating activities. The consolidated financial statements      period in which the estimate is revised, or in future periods
     of NS Groep NV are the same as those of NV Nederlandse           if the revision relates to a future period.                        Associates                                                        Foreign currency
     Spoorwegen. The operating companies of NS Groep NV are           The main estimates and assumptions relate to revenue               Associates (investments in which substantial influence is         Transactions in foreign currency
     listed on page 138.                                              recognition on projects, pension obligations, other employee       exercised) comprise those companies in which the Group has        Transactions denominated in foreign currency are translated
     The Group’s activities mainly consist of transportation of       benefits, provisions for non-current liabilities, provisions for   substantial influence on the financial and operational policy,    to the relevant functional currency of the group entities at
     passengers, the management and development of property           the impairment of accounts receivable, downward value              but no control. Substantial influence is defined as when the      the rate applying on the transaction date. Monetary assets
     and stations. Until 29 October 2010, the construction and        adjustment of inventories to net realisable value, impairment      Group holds between 20 and 50% of the voting rights in            and liabilities denominated in foreign currency are
     maintenance of rail infrastructure and construction activities   of property, plant and equipment and provisions for onerous        another entity.                                                   translated to the functional currency as at balance sheet
     were also part of the activities of the Group.                   contracts, including the HSL-South high-speed rail track           They are measured using the equity method. The equity             date, using the rate applying at that date. The foreign
                                                                      (see page 101).                                                    method is defined as follows: Initial recognition is at fair      exchange differences arising from the monetary items
     The Board of Directors prepared the financial statements         Please also refer to the principles and notes to the different     value, which is subsequently increased or decreased by a          comprise the difference between amortised costs in the
     on 15 February 2011. In its preliminary advice to the General    items.                                                             proportionate share in the profit or loss of the participating    functional currency at the beginning of the period, adjusted
     Meeting of Shareholders, the Supervisory Board recom-            The reporting standards explained below have been applied          interest with effect from the date that the Group first           for the effective interest paid during the period, and the
     mended that the financial statements be adopted without          consistently to the periods presented in these consolidated        obtains substantial influence to the date on which such           amortised cost of foreign currency translated at the end
     change. The Board of Directors and Supervisory Board             financial statements.                                              influence ends. With respect to investments accounted for         of the period using the exchange rate then applying.
     granted permission on 15 February 2011 for the financial                                                                            using the equity method, the share of the Group in the result     The exchange differences are recognised as a charge in the
     statements to be published. The adoption of these financial                                                                         of these investments is recognised in the income statement.       income statement, with the exception of a financial liability
     statements will be on the agenda for the General Meeting                                                                            When the share of the Group in the losses is greater than the     designated as a hedge for the net investment in a foreign
     of Shareholders scheduled for 15 March 2011.                                                                                        value of the interest in an investment, the carrying amount       activity or qualifying cash flow hedges, which are taken
                                                                                                                                         of the investment on the Group’s balance sheet is written         directly to equity.
     Accounting principles applied in the preparation                                                                                    down to zero, and further losses are no longer taken into
     of the financial statements                                                                                                         account, except to the extent that the Group has a legal or       Foreign operations
     With effect from 2006, the Group applies the International                                                                          constructive obligation or has made payments towards the          The assets and liabilities of foreign operations, including
     Financial Reporting Standards (IFRS) and their interpreta-                                                                          relevant investment.                                              goodwill and fair value adjustments resulting from
     tions as issued by the International Accounting Standards                                                                                                                                             consolidation, are translated into euros using the rate
     Board (IASB) and adopted for use by the European Union.                                                                             Joint ventures                                                    applying on the balance sheet date. The income and
                                                                                                                                         Joint ventures are those companies which the Group jointly        expenses of foreign operations are translated into euros
     Pursuant to section 402 Part 9 Book 2 of the Netherlands                                                                            controls with third parties, with this joint control agreed in    using the exchange rate applying on the transaction date.
     Civil Code (BW), the separate financial statements of NV                                                                            a contract and pursuant to which strategic decisions
     Nederlandse Spoorwegen were issued with a condensed                                                                                 concerning the financial and operational policy are taken         Exchange rate differences are taken directly to equity
     income statement.                                                                                                                   unanimously. The consolidated financial statements include        in the reserve for exchange differences. If a foreign
                                                                                                                                         the proportional share of the Group in the assets, liabilities,   operation is sold in full or in part, the relevant amount
     The financial statements are presented in euros, rounded to                                                                         income and expenses of the company, with items being              is transferred from the reserve for exchange differences
     the nearest million. Unless specified otherwise, the financial                                                                      combined line-by-line with similar items as from the date         to the income statement.
     statements were prepared in accordance with the historical                                                                          on which joint control is exercised until the date that joint
     cost convention. The figures for the previous year have been                                                                        control ceases.
88   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                                    89




     Financial instruments                                                Derivative financial instruments                                   Property, plant and equipment                                     Depreciation
     Acquisitions and disposals of financial instruments are              The Group uses derivative financial instruments to hedge           Property, plant and equipment are measured at cost less           Depreciation is charged to the income statement using the
     accounted for on the settlement date.                                exchange rate and interest rate risks.                             cumulative depreciation and impairment losses. The cost           straight-line method based on the estimated useful life of
     The Group uses the following financial instruments:                                                                                     price of assets constructed by the company includes the cost      property, plant and equipment or component thereof. Land
                                                                          Upon first-time recognition, derivative financial instruments      of raw materials, direct labour costs, a fair portion of the      and buildings are not depreciated, with the exception of
     Non-derivative financial instruments                                 are carried at fair value, which is the same as the cost at that   indirect manufacturing costs and capitalised borrowing            paving.
     Non-derivative financial instruments comprise investments            time. Attributable transaction costs are charged to the income     costs. If relevant, the estimated costs of disassembly
     in securities, deposits, bonds, trade and other receivables,         statement when incurred. Subsequently, derivative financial        and removal of the asset and the clean-up costs of the site       The estimated useful life for property, plant and equipment
     cash and cash equivalents, amounts borrowed and other                instruments are measured at fair value and any changes in the      where the asset is situation are included in the cost price.      is as follows:
     borrowing commitments and trade and other payables.                  fair value are accounted for as described below.                   Computer software that form an integral part of the               •	   Buildings     broken down into component (15 to100 years)
                                                                                                                                             computer equipment is capitalised as part of the                                                                average 40 years
     Cash and cash equivalents include cash and bank balances             Cash flow hedges                                                   relevant equipment.                                               •	   Other fixtures and fittings                  10 to 25 years
     and deposits callable within one month.                              Changes in the fair value of a derivative hedging instrument       Assets of which only the economic propriety rests with            •	   Trains                                            20 years
                                                                          designated as a cash flow hedge are taken directly to equity       the Group are stated on the balance sheet and treated             •	   Buses                                          6 to15 years
     Upon first-time recognition, non-derivative financial                (under hedging reserve), to the extent that the hedge is           in accordance with the same principles.                           •	   Plant and equipment                            3 to10 years
     instruments are carried at fair value. Subsequently, non-            effective. The non-effective portion is charged or added to
     derivative financial instruments are measured as follows.            the income statement.                                              Gains and losses on the sale of a component of property,          And investment property:
                                                                                                                                             plant and equipment is determined on the basis of a               •	   Foundations and underlying land                  100 years
     The treatment of financing income and expenses is described          If a hedging instrument no longer meets the requirements           comparison between the sales revenue and the carrying             •	   Structure and core                                50 years
     on page 94.                                                          for ‘hedge accounting’, expires or is sold, the hedge is ended     amount of property, plant and equipment and is taken              •	   Facades and outer walls                           33 years
                                                                          prospectively. The cumulative gain or the cumulative loss          net to ‘other revenues’ in the income statement.                  •	   Roofing                                            15 years
     Financial assets held to maturity                                    previously taken to equity continues to be part of equity                                                                            •	   Interior finish                                    15 years
     When it is the Group’s express aim to hold financial assets to       until the expected transaction takes place. The amount in          Investment Property                                               •	   Technical equipment                                15 years
     maturity, and it is in a position to do so, these are measured       equity is transferred to the income statement (under net           Property includes investment property held to realise rental
     at amortised cost using the effective interest rate method,          changes in fair value from the cash flow hedges transferred        income or an increase in value or both. Property is valued at     The identified useful life is an average for the relevant assets
     less impairment losses.                                              from equity) in the same period in which the hedging               cost less cumulative depreciation and impairment losses.          and asset components.
                                                                          instrument impacts on the income statement.                        The cost price of assets constructed by the company includes
     Financial assets held for sale                                                                                                          the cost of raw materials, direct labour costs, a fair share of   The depreciation method, the remaining useful life and the
     The investments of the Group in certain bonds and deposits           Economic hedges                                                    the indirect manufacturing costs and capitalised borrowing        residual value are reviewed on an annual basis.
     are classified as financial assets held for sale. After first-time   Hedge accounting is not applied to derivative instruments          costs. If relevant, the estimated costs of disassembly and
     recognition, these assets are measured at fair value and any         used in an economic sense as a hedge for assets and                removal of the asset and cleaning up the site where it was        Should property, plant and equipment be designated as
     changes in the fair value, except for impairment losses and          liabilities denominated in foreign currency. Changes in the        located are included to the cost price.                           investment property for own use through a change in its
     exchange rate gains and losses on monetary items available           fair value of such derivatives are taken to the income                                                                               intended use, or if investment property is designated as for
     for sale, are taken directly to equity. When an investment is        statement as part of the exchange rate gains and losses.           The following principles are applied to both property,            own use, a transfer is made to investment property or
     no longer recognised on the balance sheet, the cumulative                                                                               plant and equipment and investment property.                      property, plant and equipment respectively. Since the
     profit or cumulative loss in equity is transferred to the                                                                                                                                                 measurement of both categories of tangible fixed assets is
     income statement.                                                                                                                       Components                                                        the same, the transfer is made at the carrying amount.
     If there is no information available for determining the fair                                                                           Should property, plant and equipment consist of
     value, the assets will be measured at cost.                                                                                             components with different useful lives, these components
                                                                                                                                             are specified as separate items under property, plant and
     Other non-derivative financial instruments                                                                                              equipment and investment property.
     Other non-derivative financial instruments are measured
     at amortised cost using the effective interest rate method,                                                                             The carrying amount of a property, plant and equipment
     less impairment losses.                                                                                                                 or investment property includes the cost for the renewal
                                                                                                                                             of that asset or part of it when the expenses are incurred
                                                                                                                                             and if it is likely that the restoration will result in future
                                                                                                                                             economic benefits. All other costs associated with the
                                                                                                                                             maintenance of the asset are charged to the income
                                                                                                                                             statement when they are incurred.
90   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                               91




     Intangible assets                                                 Other investments                                                   Impairment                                                        associated with the asset. For the purpose of impairment
     The Group measures its intangible non-current assets in           The other investments acquired by the Group with a finite           Financial assets                                                  tests, assets are combined in a group of assets that generate
     accordance with IAS 38 and IFRS 3.                                useful life are measured at cost less cumulative amortisation       A financial asset is tested at each balance sheet date to         cash flow from ongoing use that are largely independent
     In accordance with IAS 36, the Group performs an                  and cumulative impairment losses.                                   ascertain whether it has been impaired. A financial asset         of other assets and groups (‘cash generating unit’).
     impairment test on the capitalised goodwill from cash                                                                                 is considered to have been impaired if there are objective        For impairment testing, goodwill acquired in a business
     generating units.                                                 Expenses after first-time recognition for capitalised intan-        indications that one or more events have had a negative           combination is attributed to cash flow generating units
     The valuation method used is the discounted cash flow             gible assets are only capitalised if it would increase the          impact on the expected future cash flows of that asset.           that are expected to gain from the synergy benefits of
     method. The cash flows are based on the business plans            future economic benefits that are contained in the specific                                                                           the combination.
     prepared by the relevant unit for a period of five years.         asset to which they relate. All the other expenses, including       An impairment loss with respect to financial assets measured
     A weighted average (WACC) has been agreed for each cash           internally generated goodwill and trademarks, are charged           at amortised cost is calculated as the difference between the     An impairment loss is recognised if the carrying amount of an
     generating unit in accordance with those of comparable            to the income statement when they are incurred.                     carrying amount and the present value of the expected future      asset or the cash generating unit to which that asset belongs
     businesses.                                                       Amortisation is charged in a straight line to the income            cash flows, discounted at the original effective interest rate.   is higher than the estimated net realisable value. Impairment
     The forecasts take account of cash flows after tax.               statement based on the estimated useful life of the intan-          An impairment loss with respect to a financial asset available    losses are taken to the income statement. Impairment losses
     The present value of the cash flows was calculated using the      gible asset, except for goodwill, from the time it is available     for sale is calculated on the basis of the fair value.            recognised in connection with cash generating units are first
     weighted average discount rate that lies between 7.4% and         for use. The estimated useful life for the current and                                                                                deducted from the carrying amount of any goodwill
     9.1% (2009: between 7.4% and 9.1%).                               comparable periods is as follows:                                   Significant financial assets are tested individually for          attributed to the units, and subsequently deducted in
     In accordance with IAS 36.44, the forecast years took             •	   Software                                        5 to 8 years   impairment. The remaining financial assets are grouped            proportion from the carrying amount of the other assets in
     expansion investments into account.                               •	   Client file                                         8 years    together on the basis of comparable risk features and tested      the unit (or group of units).
                                                                       •	   Contracts                                      5 to 10 years   as a group.
     Goodwill                                                                                                                                                                                                As far as goodwill is concerned, impairment losses are not
     All the business combinations are accounted for using the         Inventories                                                         All impairment losses are charged to the income statement.        reversed. For other assets, impairment losses recognised in
     acquisition method. Goodwill is the amount that results from      Inventories are stated at cost or net realisable value, if lower.   A cumulative loss with respect to a financial asset available     prior periods are tested at each balance sheet date for
     the acquisition of subsidiaries, associates and joint ventures.   The net realisable value is the estimated selling price in the      for sale that had previously been charged to equity is            indications that the loss has decreased or no longer exists.
     Goodwill represents the difference between the cost of the        context of ordinary business operations, less the estimated         transferred to the income statement.                              An impairment loss is reversed if the estimates have changed
     acquisition and the fair value of the acquired identifiable       cost of completion and the selling costs.                                                                                             on the basis of which the net realisable value was deter-
     assets and liabilities at the time of acquisition. Goodwill is    The cost of inventories is based on average purchase prices         An impairment loss is reversed if the reversal can be             mined. An impairment loss is only reversed to the extent
     measured at cost less cumulative impairment losses.               or cost prices, and includes expenses incurred for the              objectively linked to an event that occurred after the loss       that the carrying amount of the asset does not exceed the
     Negative goodwill that results form an acquisition is taken       acquisition of the inventories and the related purchasing           had been recognised. With respect to financial assets             carrying amount, after deduction of depreciation or amorti-
     directly to the income statement.                                 costs. The cost of inventories for sale and projects in progress    measured at amortised cost and financial assets available         sation, that would have been determined if no impairment
                                                                       includes a fair share of the indirect cost based on normal          for sale in the form of bonds, the reversal is added to the       loss had been recognised.
                                                                       production capacity.                                                income statement.


                                                                       Construction projects                                               Non-financial assets
                                                                       Construction projects are measured at cost plus profit taken        The carrying amount of the non-financial assets of the
                                                                       until balance sheet date, less a provision for foreseeable          Group, with the exception of inventories and deferred tax
                                                                       losses and less invoiced instalments in proportion to the           assets, a new assessment is made as at every balance sheet
                                                                       project’s progress. The cost includes all the direct expenses       date to ascertain whether there are indications of
                                                                       in connection with specific projects and an allocation of           impairment. In the event of such indications, an estimate
                                                                       indirect fixed and variable costs incurred in connection with       is made of the net realisable value of the asset. With respect
                                                                       the contract activities on the basis of normal production           to goodwill and intangible non-current assets not yet ready
                                                                       capacity.                                                           for use, an estimate is made of the realisable value as at each
                                                                       A receivable is defined as when the total of the costs              balance sheet date.
                                                                       incurred (including the recognised result) exceeds the total
                                                                       of the invoiced instalments. If the total of the costs incurred     The net realisable value of an asset or a cash generating unit
                                                                       (including the recognised result) is lower than the total of        is the realisable value at the higher of the going-concern
                                                                       the invoiced instalments, it constitutes a debt.                    value or the fair value less selling costs. When determining
                                                                                                                                           the going-concern value, the present value of the estimated
                                                                                                                                           future cash flows before tax is calculated using a discount
                                                                                                                                           rate before tax that reflects both the current market valua-
                                                                                                                                           tions of the time value of money and the specific risks
92   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                           93




     Equity                                                             The expected changes in the pension obligations and the           Reorganisation costs and non-activity schemes                   management involvement in the goods and the sum of
     Dividends are recognised in the period in which profit is          investment results at the beginning of the year based on          Provisions are formed for reorganisation when a detailed        the income can be reliably determined.
     appropriated and dividends are declared.                           actuarial calculations are implemented in the net obligations     plan for the reorganisation has been formalised or made         Payments from the authorities by virtue of transport
                                                                        and taken to the income statement. The paid amounts are           public. No provision is formed for future operating costs.      contracts or transport concessions are recognised in the
     Deferred credits                                                   deducted from the net obligations. The actuarial gains and        The reorganisation provision in particular relates to redun-    period to which the payment is related.
     This income concerns one-off payments in connection                losses, consisting of the difference between the actual and       dancies, bridging payments and the redeployment of staff
     with agreements that extend into future years. The income          the expected changes in the pension obligations and               whose positions have been scrapped.                             Construction contracts
     is taken to the income statement during the term of the            investment results are taken to equity.                                                                                           The contractual income and expenses of construction
     agreements to which they are related. The income is                                                                                  Provision for soil decontamination                              contracts are recognised in the income statement in
     measured at amortised cost.                                        Obligations arising from long-service awards and early            The provision for soil decontamination is formed to cover the   proportion to the stage of completion of the project.
                                                                        retirement benefits are calculated actuarially and recognised     expenses required to maintain operating assets or to bring      The stage of completion is determined on the basis of the
     Employee benefits                                                  at present value. Account is taken of wage and price indexes.     them up to standard. In accordance with the published           cost of the work performed in relation to the total expected
     Employee benefits include pension obligations arising              Any actuarial gains or losses are taken to the income             environmental policy of the Group and the applicable legal      expenses. As soon as a reliable estimate can be made of the
     from defined benefit plans and other employee benefit              statement in the period in which they occur.                      requirements, provisions are formed to manage and clean         result, a proportional part of the profit is added to the
     obligations consisting of long-service awards, early               Obligations arising from occupational disability are              up environmental pollution when the pollution occurs or         income statement. Expected losses on contracts are directly
     retirement (VUT) benefits and obligations in connection            calculated similarly.                                             appears to have occurred.                                       recognised in full in the income statement.
     with staff occupational disability.
                                                                        Short-term employee benefits                                      Onerous contracts                                               Rental income
     Defined contributions plans mean that the Group has no             Short-term employee benefits are measured without                 A provision for onerous contracts is formed on the balance      Rental income from property is included in the income
     further obligations over and above paying the contractual          discounting and recognised when the corresponding service         sheet when the benefits the Group expected to gain from         statement in a straight line based on the term of the lease
     contributions. These contributions are recognised in the           is delivered.                                                     a contract are lower than the inevitable costs that arise by    agreement. The cost of incentives offered to encourage the
     income statement in the period in which they are due.                                                                                virtue of the contract.                                         conclusion of lease agreements is recognised as an integral
                                                                        Provisions                                                        The provision is measured at the expected net cost of           part of the total rental income.
     Defined pension plans are plans where the Group cannot             A provision is formed on the balance sheet when the Group         continuing the contract or, if lower, cost of terminating the
     suffice with paying the compulsory, contractual contribu-          has a legal or constructive obligation as a result of an event    contract being any compensation or penalty as a result of       Concessions in connection with public-private
     tions to pension funds or insurance companies. The Group’s         in the past and it is likely that settlement of this obligation   not complying with the contract. Prior to forming provision,    partnerships (PPPs)
     net obligation is calculated separately in respect of each plan    will require the outflow of funds.                                an impairment loss is recognised on the assets related          During the construction of a PPP project, the project is
     by making an estimate of the pension rights employees have         Provisions are calculated on the basis of the present value of    to the contract.                                                accounted for as a construction project. The project income
     accrued during the reporting and preceding years. The              the expected future cash flows discounted at a rate before                                                                        and expenses are recognised in the income statement in
     present value of these entitlements is calculated, which is        tax that reflects the current market valuations of the time       Other provisions                                                proportion to the project progress.
     netted with the fair value of the plan assets. The discount        value of money and, where necessary, taking account of the        Provisions are formed for damage through fire, guarantees       During the operational phase the income from concession
     rate is the interest rate as at balance sheet date of gilt-edged   risks associated with the obligation.                             issued, claims and other matters.                               management consists of the fair value of the services
     fixed-income securities of which the term approximates that                                                                                                                                          delivered pursuant to the agreement. The interest income in
     of the pension obligations. The calculation takes account of                                                                         Revenues                                                        connection with the investment in the project is accounted
     aspects such as future wage increases due to general wage                                                                            Revenues include transport earnings and earnings from the       for as interest income.
     developments and career opportunities, inflation and of                                                                              other business divisions, less discounts and turnover tax.
     current life expectancy tables. The calculation is performed
     on an annual basis by a registered actuary using the                                                                                 Providing services and selling goods
     ‘projected unit credit’ method. When the calculation                                                                                 Income from services provided is recognised in the period in
     produces a positive result for the Group, the recognition of                                                                         which the service is provided. With respect to delivery
     the asset is limited to a maximum that does not exceed the                                                                           contracts that extend beyond the balance sheet date, income
     balance of any non-recognised pension costs of past service                                                                          is allocated to the separate years in proportion to the stage
     and the present value of any future reimbursements by the                                                                            of completion of the transaction at balance sheet date.
     fund or the lower future pension premiums.                                                                                           The stage of completion is determined based on assessments
     The pension obligations related to the group companies                                                                               of the work performed.
     established in the UK are recognised for the periods that the                                                                        Income from the sale of goods is taken to the income
     transport concessions are valid for.                                                                                                 statement when the significant risks and benefits of
                                                                                                                                          ownership have been transferred to the buyer, the collection
                                                                                                                                          of the due payment is likely, the associated costs or any
                                                                                                                                          returns can be reliably estimated, there is no longer any
94   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                               95




     Other revenues                                                   Government grants                                                   New standards and interpretations                                Trade and other receivables
     These include capitalised production for own use, incidental     Government grants are recognised when it is reasonable              A number of new changes to standards and interpretations         The fair value of trade and other receivables, excluding
     income and insurance provided by third parties of the costs      to expect that the entity will satisfy the conditions applied       were not yet effective in 2010 and were therefore not applied    construction projects, is estimated at the present value of
     of additional activities that do not form part of the            by the grants and that the grants will be received.                 to the financial statements. Not one of these standards will     the future cash flows which, in turn, are discounted at the
     operating activities of the company. The balance between         The government grants are deducted from the related assets          have a material impact on the consolidated financial state-      intra-banking swap interest rate as at balance sheet date.
     the income from and the carrying amount of the sold              and liabilities.                                                    ments of the Group.
     property, plant and equipment is also taken to ‘other                                                                                                                                                 Derivatives
     revenues’.                                                       Lease payments                                                      Determining the fair value                                       The fair value of derivatives is formed by an estimated total
                                                                      Lease payments pursuant to operating leases are recognised          A number of principles and the information provision             that the Group would receive or pay to continue the contract
     Operating expenses                                               as operating expenses in the income statement in a straight         of the Group require that the fair value be determined           until balance sheet date, with account being taken of the
     Operating expenses are allocated to the year to which            line over the lease period.                                         of both financial and non-financial assets and liabilities.      current interest rate and the current creditworthiness of the
     they are related or during which the goods and services                                                                              For valuation and information provision purposes, fair value     counterparties to the contract. This value is determined and
     are delivered to the client.                                     Income tax                                                          is determined as follows.                                        issued by the financial institution where the derivative is
                                                                      Tax on the profit or loss for the reporting period comprises                                                                         outstanding.
     Financing income and expenses                                    the payable and deductible taxes for the reporting period           Property, plant and equipment
     Financing income includes the interest income on invested        and deferred income tax. Income tax is stated in the income         The fair value of property, plant and equipment included         Non-derivative financial liabilities
     funds (including financial assets available for sale), lease     statement, unless they are directly related to items taken          as a result of a business combination is based on the market     The fair value of non-derivative financial obligations is
     income and profit on the sale of hedging instruments that        directly to equity, in which case the tax is taken to equity.       value. The fair value is calculated on the basis of current      measured for disclosure purposes and calculated on the basis
     are recognised in the income statement. Interest income is       All the tax items are stated at nominal value.                      purchase prices or is determined by using indexation figures     of the present value of the future redemptions and interest
     recognised in the income statement as it accrues, using the                                                                          to bring the historical purchase price to the current price.     payments, discounted at the market rate as at reporting
     effective interest rate method. Dividend income is recog-        The payable and deductible tax for the financial year is                                                                             date. As far as financial leases are concerned, the market
     nised in the income statement when the right to payment          the expected tax payable on the taxable profit for the              Investment Property                                              interest rate is determined on the basis of similar lease
     becomes vested.                                                  reporting period, calculated on the basis of tax rates that         The fair value is determined independently and profes-           agreements.
                                                                      apply on the balance sheet date and adjustments to tax              sionally through the engagement of qualified specialists.
     Borrowing costs include the interest charges on loans taken      payable for prior years.                                            It takes account of the current lease agreements that the        Segmented information
     up, interest added to provisions and losses on hedging                                                                               Group has concluded in a businesslike and objective manner       Segmented information is provided for the Group’s business
     instruments. All the borrowing costs that cannot be directly     Almost all the subsidiaries that belong to the Group are part       and that is comparable to those of similar property in the       segments. Since the Group, pursuant to IFRS, is not obliged
     attributed to the acquisition, construction or production of     of the NS tax entity for corporation tax purposes, with the         same area. To measure the value of property, the net rentals     to provide this information, the segmentation statement is
     a qualifying asset are taken to the income statement in          exception of foreign subsidiaries.                                  are discounted each year by a factor that includes the risks     presented as an appendix to the financial statements with
     accordance with the effective interest rate method.                                                                                  that are inherent to net cash flows. The factor assumes          effect from 2010. This summary is not a segmentation
     No financing costs were capitalised in 2009 and 2010.            Deferred tax assets and tax liabilities are formed for              3% per annum (2009: 3%).                                         summary as referred to under IFRS 8 (see page 144).
                                                                      temporary differences between the carrying amount of assets         The fair value of property is only determined for information
     The release from cross-border lease agreements is deducted       and liabilities in the financial reporting and the value of         purposes.                                                        The primary segmentation basis, that for business segments,
     from the interest charges to the extent that it relates to the   assets and liabilities for tax purposes. The calculation is based                                                                    refers to the different nature of the operating activities, the
     reporting period.                                                on the tax rates expected to apply when the temporary               Intangible assets                                                management structure and the internal reporting structure
                                                                      differences are reversed using the tax rates that have been         The fair value of other investments is based on the expected     employed by the Group.
     Exchange rate gains and losses are part of the financial         enacted or substantially enacted as at the balance sheet date.      present value of the cash flows from use and the final selling   Prices for transactions between the segments and between
     income or expenses. Default interest related to positions                                                                            of the assets.                                                   the group companies within the segments are determined
     with the tax authorities is included under other financing       As far as deferred tax assets within the tax entity are                                                                              on the basis of businesslike and objective principles.
     income and expenses.                                             concerned, assumptions are made about the continuity of the         Investments in bonds and deposits                                The results, assets and liabilities of a segment include items
                                                                      enterprise, sufficient taxable profit in the future about no        The fair value of financial assets held to maturity and          which, directly or, on the basis of reason, can be attributed
                                                                      limit on loss compensation. As a result, it is assumed that         financial assets available for sale is determined on the basis   to the segment.
                                                                      deferred tax assets will be collected.                              of the listed closing price at balance sheet date. The fair      The investment costs for a segment include total expenses
                                                                      Deferred tax assets and liabilities are only offset if there is a   value of investments held to maturity is only determined for     incurred for the reporting period in order to acquire the
                                                                      formal right to offset and the company intends to offset the        information purposes.                                            asset, which is not expected to be operational for longer
                                                                      deferred taxes simultaneously. Deferred taxes are recognised                                                                         than one reporting period.
                                                                      at nominal value.
96   NS Annual Report 2010 / Consolidated financial statements                                                                         97




     Business segments                                                 General notes
     The Group makes a distinction between the following
     business segments:                                                The amounts quoted in the notes are in millions of euros,
        P
     •	 	 assenger    transport: the transport of passengers in the    unless specifically stated otherwise.
       Netherlands in domestic trains and buses and in interna-
       tional trains, as well as passenger transport in trains and     Acquisition and disposal of companies
       buses abroad. This also includes the services for traveller     For the acquisitions made last year, the preliminary purchase
       transport, such as making available and maintaining             price allocation prepared in 2009 was finalised. This did not
       rolling stock;                                                  lead to any adjustment.
        H
     •	 	 ub    development and operations, including the mainte-
       nance of property and station sites and the operation of        The following transaction took place during the financial
       commercial sites in and around stations;                        year:
        R
     •	 	 ail   infrastructure and construction, including rail
       infrastructure and construction. With the sale of Strukton      Discontinued operation
       Groep NV on 29 October 2010, the activities of this             It had been decided in 2009 that Strukton was no longer
       segment were discontinued.                                      part of the core activities of the Group. Strukton has been
     •	 	 ther
        O         comprehensive auxiliary companies, holding           incorporated in the rail infrastructure and construction
       company operations and the elimination of inter-company         segment and is active as full-service provider in the field
       transactions.                                                   of rail systems; design, implementation, maintenance and
                                                                       management of infrastructure projects; development,
     The passenger transport segment primarily operates in             implementation and maintenance of property; property
     the Netherlands, the UK, Germany and the Czech Republic.          management and support services. It was uncertain if and
     The return and risk profiles do not differ to such an extent      when a sale of Strukton could be realised. Strukton was
     as to require separate segmentation according to                  therefore neither accounted for as a discontinued operation
     geographical areas.                                               as at 31 December 2009 nor as held for sale.


     Principles for the consolidated cash flow statement               On 29 October 2010, the Group sold Strukton and with it the
     Basically, the cash flow statement is prepared on the basis       entire rail infrastructure and construction segment for a
     of the comparison between the opening and closing balance         total of EUR 168 million. The financial results for 2010 were
     for the relevant financial year. In this context, the result is   prepared and reported by Strukton after NS had transferred
     adjusted for changes that did not result in receivables or        control to Oranjewoud. The comparative figures in the
     payments during the financial year.                               consolidated income statement have been restated in order
                                                                       to show the discontinued operation separately from the
                                                                       continued operations.
98   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                     99




     Results of discontinued operation                                                                            Cash flows from discontinued operation
                                                                     1 January – 29 October 2010           2009   In millions of euros                                        2010          2009
     In millions of euros

                                                                                                                  Net cash flow from operating activities                    -57            58
     Income                                                        1,194                           1,369
                                                                                                                  Net cash flow from investment
     Operating expenses                                            1,187                           1,356          activities                                                 -42            -98
     Result from operating activities                                  7                             13
                                                                                                                  Net cash flow from financing
                                                                                                                  activities                                                 59             70
     Net financing result                                             -6                              -8          Net cash flow for the financial year                       -40            30
     Income tax                                                       -3                              -4
     Result from operating activities of Strukton, after tax                               -2               1


     Book profit made by NS from the sale of Strukton                17                                -          Effect of the disposal on the financial position
                                                                                                                  of the Group
     Other transaction result:                                                                                    In millions of euros                                                     2010

     Realisation of revaluation reserve of NS                        -23                               -
     Selling costs                                                    -2                              -3          Property, plant and equipment                                            -419
     Income tax                                                       -1                              1           Current assets                                                           -577
     Transaction result of NS, after tax                                                   -9              -2     Reduction in non-current liabilities                                     305
                                                                                                                  Reduction in current liabilities                                         528
     Total result for the financial year                                                 -11               -1
                                                                                                                  Balance of assets and liabilities                                        -163


     The realisation of the revaluation reserve of NS mainly                                                      Selling price                                                            168
     relates to previously unrealised hedging results due to                                                      Less: Amount stated as receivable                                          -8
     the financing method of the PPP activities at Strukton.
     These hedging results were realised through the sale of                                                      Payment received by NS in cash                                           160
     Strukton and taken from the revaluation reserve to the                                                       Disposed cash and cash equivalents
     income statement. This transfer does not have any impact                                                     of Strukton                                                              -58*
     on shareholders’ equity.                                                                                     Net inflow of cash and cash equivalents after
                                                                                                                  deconsolidation of Strukton                                              102
     The total result of the discontinued operation can be fully
                                                                                                                  * The disposed cash and cash equivalents consists of EUR 55 million in
     attributed to the company’s shareholder.
                                                                                                                    tied accounts.
100   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                                                      101



       Notes to the consolidated balance sheet as at 31 December 2010


      1
      Plant, property and equipment                                                                                                                              The ‘other changes’ item primarily relates to intercompany        the start-up losses were charged to the provision and
                                                                                                                                                                 eliminations and reclassifications. Of the other changes in       investments for tangible fixed assets were withdrawn
                                                                                Other fixed                              Machinery &   Assets under              projects and materials in construction in 2010, EUR 26 million    from the provision.
      In millions of euros                                   Land   Buildings   installations   Rolling stock   Spares    equipment    construction      Total   is related to HSA assets (2009: EUR 16 million). This change
                                                                                                                                                                 represents the transfer of the provision for onerous contracts    The Group performs an annual impairment test. This test
      2009                                                                                                                                                       to a drop in the value of the tangible fixed assets.              prompted the Group in 2009 to recognise an additional
      Cost as at 1 January                                   68       494             130           4,191       180           754           531       6,348
                                                                                                                                                                                                                                   impairment loss of EUR 70 million as a result of:
      Additions                                                                                                                             655         655
                                                                                                                                                                 With respect to divestment of business premises,
      Capitalisations                                        16         11               8            420        24            80           -559           -
      Acquisitions                                            -           -              -              18         -            4               -        22
                                                                                                                                                                 no divestment contribution was received in 2010                   •			 low
                                                                                                                                                                                                                                      S       development and integration of the timetable;
      Exchange rate differences                               -           -              -                -        -            1               -         1      (2009: EUR 8 million).                                            •			 ower
                                                                                                                                                                                                                                      L        growth in turnover due to the recession.
      Divestments                                            -3        -16              -1             -69      -20           -54            -17       -180
      Other changes                                          32        -28               5              20         -          -40            -35        -46      The fair value adjusted for depreciation of tangible fixed        In 2010, the prospects for the operation of the HSL-South
      Cost as at 31 December                                113       461             142           4,580       184           745           575       6,800      assets amounts to EUR 4.1 billion (2009: EUR 4.0 billion)         deteriorated considerably, partly as a result of disappointing
                                                                                                                                                                 and is calculated on the basis of the historical cost             passenger numbers due to the crisis and further delay in the
      Depreciation and impairment
                                                                                                                                                                 convention brought to the current value with the aid              delivery of the V-250 stock. The financial situation of HSA is
      as at 1 January                                        13       213              71           2,611        97           499               -     3,504
                                                                                                                                                                 of indexation figures.                                            causing concern, although there are still no acute liquidity
      Depreciation of the year                                1         13             12             192        10            69               -       297
      Divestments                                            -2         -9               -             -67      -12           -47               -      -137                                                                        problems foreseen for 2011.
      Impairment                                              -           -              -               6         -            2               -         8      Some of the trains recognised on the balance sheet are part
      Impairment reversals                                    -           -              -              -3         -             -              -        -3      of cross-border lease transactions concluded in the past.         The cost for NS of the concession agreement is limited to the
      Exchange rate differences                               -           -              -                -        -             -              -          -                                                                       guarantee as agreed with the State. The present value of
      Other changes                                          11        -11               4               5         -          -28               -       -19      The carrying amount of the rolling stock accommodated in          these costs as at year-end is estimated at EUR 193 million and
      Depreciation and impairment
                                                                                                                                                                 cross-border leases at year-end 2010 is EUR 258 million           is substantially lower than the present value of the net cost
      as at 31 December                                      23       206              87           2,744        95           495               -     3,650
                                                                                                                                                                 (2009: EUR 229 million). Securities have been pledged in the      expected for continuing the contract.
      Carrying amount as at 1 January                        55       281              59           1,580        83           255           531       2,844
                                                                                                                                                                 form of first lien on rolling stock for the Eurofima loans that
      Carrying amount as at 31 December                      90       255              55           1,836        89           250           575       3,150
                                                                                                                                                                 are not part of the cross-border lease financing. The carrying    Of the total amount of EUR 193 million, EUR 132 million
                                                                                                                                                                 value of this is EUR 88 million (2009: EUR 110 million).          was deducted from investments in property, plant and
                                                                                Other fixed                              Machinery &   Assets under              More information can be found in the section Financial Risk       equipment, leaving a provision for onerous contract of
      In millions of euros                                   Land   Buildings   installations   Rolling stock   Spares    equipment    construction      Total   Management (see page 138).                                        EUR 61 million (see also page 118).

      2010                                                                                                                                                       Projects and materials under construction mainly consist          ICE
      Cost as at 1 January                                  113       461             142           4,580       184           745           575       6,800
                                                                                                                                                                 of investments in trains and buildings.                           An impairment loss has been recognised for ICE since 2003.
      Additions                                                                                                                             622         622
                                                                                                                                                                                                                                   In 2009, this loss amounted EUR 11 million.
      Capitalisations                                        16         15               2            709         6            86           -834           -
      Acquisitions                                            -           -              -                -        -             -              -          -     Impairment and reversal                                           This calculation was updated for 2010, which led to an
      Exchange rate differences                               -           -              -               1         -            1               -         2      The calculations that result in impairment losses and their       addition of EUR 1 million. The remaining impairment loss
      Divestments                                            -2         -2              -3             -29         -          -33            -37       -106      reversal are based on an interest rate after tax of 7.5%          at year-end 2010 amounts to EUR 12 million. In 2009, the
      Disposals                                              -7        -50               -                -        -         -232            -10       -299      (2009: 7.5%). Before tax, the interest rate is 10% (2009: 10%).   impairment loss of EUR 3 million was reversed. The reason
      Other changes                                          -1          3               -               6        -9          -13              9         -5      The impairment losses and reversals listed below exclusively      for the addition and reversal is increasing insight as a result
      Cost as at 31 December                                119       427             141           5,267       181           554           325       7,014
                                                                                                                                                                 relate to the passenger transport segment.                        of which outlooks were adjusted.

      Depreciation and impairment
      as at 1 January                                        23       206              87           2,744        95           495               -     3,650
                                                                                                                                                                 HSL-South
      Depreciation of the year                                1         12             10             217        12            68               -       320      HSA Beheer NV is the joint venture of NS and KLM that was
      Divestments                                             -         -1              -2             -26         -          -32               -       -61      awarded the concession for transporting passengers over
      Impairment                                              -           -              -              -1        2            12               -        13      the HSL-Zuid high-speed track with effect from 1 July 2009.
      Impairment reversals                                    -           -              -                -        -             -              -          -     For more information concerning this concession, please
      Exchange rate differences                               -           -              -                -        -             -              -          -
                                                                                                                                                                 refer to the ‘Concessions’ notes on page 120.
      Disposals                                               -        -23               -                -        -         -150               -      -173
      Other changes                                           -          2              -1                -      -8              -              -        -7
                                                                                                                                                                 In view of the downward adjustment of expectations with
      Depreciation and impairment
      as at 31 December                                      24       196              94           2,934       101           393               -     3,742      respect to the turnover and the increasing costs, the Group
                                                                                                                                                                 recognised in 2006 an impairment loss of EUR 140 million
      Carrying amount as at 31 December                     95       231              47          2,333         80           161           325        3,272
                                                                                                                                                                 (provision for onerous contracts). In the following years
102   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                           103




                                                                  2
      Abellio                                                     Investment property
      Abellio operates train and bus concessions in Europe.                                                                                                               Investment

      Some of the bus concessions in Germany are running                                                                                                  Investment   property under
                                                                  In millions of euros                                                                      property     construction             Total
      at a loss, as a result of which the relevant material was
      not capitalised upon acquisition in 2008. The provision
      for onerous contracts at year-end 2010 is EUR 10 million
                                                                  2009
                                                                  Cost as at 1 January                                                                        417               14               431
      (2009: EUR 22 million),
                                                                  Additions                                                                                      -               6                 6
      and was deducted in full from plant, property and
                                                                  Capitalisations                                                                              16              -16                  -
      equipment. At year-end 2009, EUR 20 million was deducted
                                                                  Divestments                                                                                   -6                -               -6
      from property, plant and equipment, leaving a provision
                                                                  Other changes                                                                                 3                6                 9
      of EUR 2 million.
                                                                  Cost as at 31 December                                                                      430               10               440

                                                                  Depreciation and impairment as at 1 January                                                 112                 -              112
      NS Reizigers
      In 2010, no impairment losses were recognised for           Depreciation of the year                                                                     12                 -               12

      out-of-date material (2009: EUR 6 million).                 Divestments                                                                                   -5                -               -5
                                                                  Impairment                                                                                    4                 -                4
                                                                  Other changes                                                                                  -                -                 -
                                                                  Depreciation and impairment as at 31 December                                               123                 -              123
                                                                  Carrying amount as at 1 January                                                             305               14               319
                                                                  Carrying amount as at 31 December                                                           307               10               317

                                                                                                                                                                          Investment
                                                                                                                                                          Investment   property under
                                                                  In millions of euros                                                                      property     construction             Total



                                                                  2010
                                                                  Cost as at 1 January                                                                        430               10               440
                                                                  Additions                                                                                      -               9                 9
                                                                  Capitalisations                                                                              14              -14                  -
                                                                  Disposals                                                                                   -12                 -              -12
                                                                  Divestments                                                                                   -4                -               -4
                                                                  Other changes                                                                                 1                2                 3
                                                                  Cost as at 31 December                                                                      429                7               436

                                                                  Depreciation and impairment as at 1 January                                                 123                 -              123
                                                                  Depreciation of the year                                                                     14                 -               14
                                                                  Disposals                                                                                     -8                -               -8
                                                                  Divestments                                                                                   -2                -               -2
                                                                  Impairment                                                                                    -1                -               -1
                                                                  Other changes                                                                                 1                 -                1
                                                                  Depreciation and impairment as at 31 December                                               127                 -              127

                                                                  Carrying amount as at 31 December                                                          302                 7               309


                                                                  The fair value of investment property as at 31 December 2010     include a period of some years during which it is not possible
                                                                  amounts to EUR 0.5 billion (2009: EUR 0.6 billion). The value    to cancel the contract. After this period, extension of the
                                                                  was measured independently and professionally through the        agreement is negotiated with the tenant. No conditional lease
                                                                  engagement of qualified specialists. In this context, account    payments are charged.
                                                                  was taken of the current lease agreements that the Group has
                                                                  concluded in a businesslike and objective manner, and which is   The direct rental income amounts to EUR 67 million (2009:
                                                                  comparable to similar property in the same area.                 EUR 67 million). The direct rental costs include maintenance
                                                                  Investment property consists of a number of business premises    costs, immovable property tax and direct management costs,
                                                                  rented to third parties. Generally, the lease agreements         and came to EUR 17 million (2009: EUR 17 million).
104   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                                   105




                                         3                                                                                                                                                                      4
                                         Intangible assets                                                                                    The investment of goodwill relates to goodwill paid upon          Investments in equity accounted investees
                                                                                                                                              acquisitions (see also page 97).                                  In millions of euros
                                                                                                                          Other
                                         In millions of euros                                       Goodwill   intangible assets      Total
                                                                                                                                              Goodwill per segment                                              Carrying amount as at 1 January 2009                       33
                                         2009                                                                                                 In millions of euros                          2010         2009   Exchange rate difference                                      -
                                         Cost as at 1 January                                          97                  84        181                                                                        Increase                                                      2
                                         Additions                                                       -                  5          5      Rail infrastructure & construction             -           65     Disposal                                                      -
                                         Acquisitions                                                  11                   6         17      Passenger services                            26           26     Share in profit                                               4
                                         Other changes                                                  2                  -4          -2     Hub development,                                                  Profit distributed                                            -
                                         Cost as at 31 December                                       110                  91        201      development & exploitation                     5            5     Other changes                                                 1
                                                                                                                                              Total                                         31           96     Carrying amount as at 31 December 2009                     40
                                         Amortisation and impairment as at 1 January                   14                  18         32                                                                        Exchange rate difference                                      -
                                         Amortisation for the year                                       -                 11         11      The impairment tests carried out did not give rise to writing     Increase                                                      -
                                         Other changes                                                   -                  1          1      down goodwill.                                                    Disposal                                                   -26
                                                                                                                                                                                                                Share in profit                                               1
                                         Amortisation and impairment as at 31 December                 14                  30         44                                                                        Profit distributed                                          -1
                                         Carrying amount as at 1 January                               83                  66        149                                                                        Other changes                                                 -
                                         Carrying amount as at 31 December                             96                  61        157
                                                                                                                                                                                                                Carrying amount as at 31 December 2010                     14

                                                                                                                          Other
                                         In millions of euros                                       Goodwill   intangible assets      Total                                                                     Pursuant to the disclosure requirements contained in
                                                                                                                                                                                                                sections 2:379 and 2:414 of the Netherlands Civil Code,
                                         2010                                                                                                                                                                   a complete list of group companies, associates and joint
                                         Cost as at 1 January                                         110                  91        201                                                                        ventures has been filed with the Trade Register in Utrecht.
                                         Additions                                                       -                  2          2
                                         Acquisitions                                                    -                   -          -
                                         Disposals                                                     -79                -50        -129
                                         Other changes                                                   -                  1          1
                                         Cost as at 31 December                                        31                  44         75


                                         Amortisation and impairment as at 1 January                   14                  30         44
                                         Amortisation for the year                                       -                 10         10
                                         Disposals                                                     -14                -41         -55
                                         Impairments                                                     -                 12         12
                                         Other changes                                                   -                   -          -


                                         Amortisation and impairment as at 31 December                   -                 11         11

                                         Carrying amount as at 31 December                             31                 33          64



                                         The impairment loss of EUR 12 million (2009: zero) concerns intangible assets in the rail
                                         infrastructure and construction segment.
106   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                                                                    107




                                         5                                                                                                       6
                                         Other financial assets, including investments                                                           Deferred tax assets and liabilities
                                         In millions of euros                                                     31 Dec. 2010    31 Dec. 2009   The deferred tax assets and liabilities can be broken down into the relevant items as follows:

                                                                                                                                                                                                                                                      Assets                          Liabilities

                                         Other non-current financial assets, including investments                                               In millions of euros                                                                   31 Dec. 2010           31 Dec. 2009   31 Dec. 2010          31 Dec. 2009

                                         Available-for-sale financial assets                                             96             100
                                         Held-to-maturity investments                                                     5             142      Property, plant and equipment                                                                133                    138             92                    67
                                         Financial leases                                                                31              50      Intangible assets                                                                                -                     -              -                    9
                                         Other investments                                                               14              13      Financial assets                                                                                 -                     -             9                      -
                                                                                                                                                 Inventories                                                                                      6                    8               -                     -
                                         Total                                                                        146               305
                                                                                                                                                 Receivables                                                                                  149                    180              2                     5
                                                                                                                                                 Deferred credits                                                                              56                     60               -                     -
                                         Current financial assets
                                                                                                                                                 Provisions                                                                                    53                     49               -                     -
                                         Available-for-sale financial assets                                               -               -
                                                                                                                                                 Non-current liabilities                                                                          7                    3               -                     -
                                         Held-to-maturity investments                                                      -               -
                                                                                                                                                 Other items                                                                                      1                     -              -                    7
                                         Deposits                                                                       209             150
                                                                                                                                                 Tax loss carry-forward                                                                           2                     -              -                     -
                                         Derivatives used for hedging                                                      -               -
                                                                                                                                                 Tax asset                                                                                  407                    438
                                         Total                                                                        209               150
                                                                                                                                                 Tax liability                                                                                                                    103                     88
                                         Total available-for-sale financial assets                                       96             100
                                         Total held-to-maturity investments                                               5             142




                                         In 2009, receivables of Strukton from public private partnership projects (PPP) were stated
                                         under financial assets held to maturity. These relate to the concession payments still to be
                                         received from the authorities in connection with the PPP projects.


                                         Using financial lease contracts, the Group makes goods material available to DB Schenker Rail
                                         Nederland NV, with the Group acting as lessor.
                                         The weighted average remaining term of the lease contracts is two years (2009: two years).


                                         Deposits and bonds (contained in current financial assets available for sale) are intended,
                                         among other things, for payment of some EUR 670 million of the agreed investment obliga-
                                         tions, redemption and interest payments on loans, non-current provisions and liabilities.


                                         The credit, exchange rate and interest rate risks the Group faces from the other investments
                                         are explained in greater detail on pages 128 to 138.
108   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                                           109




      Changes during the reporting period in the temporary differences between commercial valuation in the balance sheet and the          Deferred tax assets 2010
      valuation for tax purposes, distinguished according to additions and reductions:                                                                                                                            Amount on which                                    Amount on which
                                                                                                                                                                                                                    deferred tax is                                    deferred tax is
                                                                                                                                                                                                                    calculated as at                                   calculated as at
                                                                                                                                          In millions of euros                                                      1 January 2010          Increase      Decrease   31 December 2010
      Deferred tax assets 2009
                                                                        Amount on which                              Amount on which
                                                                          deferred tax is                               deferred tax is   Property, plant and equipment                                                      540               19            31                 528
                                                                          calculated as at                             calculated as at
                                                                                                                                          Intangible assets                                                                     1                -             -                   1
      In millions of euros                                                1 January 2009     Increase     Decrease   31 December 2009
                                                                                                                                          Financial assets                                                                       -             29              -                 29
                                                                                                                                          Inventories                                                                         30                 -            5                  25
      Property, plant and equipment                                                629          74          163                 540
                                                                                                                                          Receivables                                                                        705               11           117                 599
      Intangible assets                                                               1           -            -                   1
                                                                                                                                          Deferred credits                                                                   237                 -           14                 223
      Inventories                                                                   30           1            1                  30
                                                                                                                                          Provisions                                                                         191               28             7                 212
      Receivables                                                                  801          21          117                 705
                                                                                                                                          Non-current liabilities                                                             11               16             2                  25
      Deferred credits                                                             244          14           21                 237
                                                                                                                                          Current liabilities                                                                   2                -            1                    1
      Provisions                                                                    64        124             -3                191
                                                                                                                                          Total temporary differences                                                      1,717              103           177               1,643
      Non-current liabilities                                                       12           1            2                  11
      Current liabilities                                                             7          4            9                    2
                                                                                                                                          Deferred tax asset on temporary differences                                        438               20            45                 413
      Total temporary differences                                                1,788        239           310               1,717
                                                                                                                                          Tax loss carry-forward                                                                                                                   2
                                                                                                                                          Changes in tax rate, temporary differences                                                                                              -8
      Total deferred tax asset                                                    455          62            79                438        Total deferred tax assets                                                                                                            407

      Deferred tax liabilities
                                                                                                                                          Deferred tax liabilities
      Property, plant and equipment                                                336        115              -                451
                                                                                                                                          Property, plant and equipment                                                      451              141            15                 577
      Intangible assets                                                             24           1             -                 25
                                                                                                                                          Financial assets                                                                       -             36             1                  35
      Receivables                                                                   29            -           8                  21       Intangible assets                                                                   25                 -             -                 25
      Provisions                                                                      1           -            -                   1      Receivables                                                                         21               -5             6                  10
      Other items                                                                   30            -           4                  26       Provisions                                                                            1                -             -                   1
      Total temporary differences                                                  420        116            12                 524       Other items                                                                         26              -26              -                    -
                                                                                                                                          Total temporary differences                                                        524              146            22                 648

      Deferred tax liability                                                        66         24             2                  88
                                                                                                                                          Deferred tax liability on temporary differences                                     88               23             7                 104
                                                                                                                                          Changes in tax rate, temporary differences                                                                                              -1

                                                                                                                                          Total deferred tax liability                                                                                                         103


                                                                                                                                          Of the change in the deferred taxes in 2010 EUR 1 million           The total receivables item of EUR 304 million
                                                                                                                                          (2009: zero) was recognised in equity.                              (2009: EUR 350 million) can be broken down as follows:
                                                                                                                                          The changes originate from the financial assets item on the         •    Receivable from Dutch tax authorities: EUR 370 million
                                                                                                                                          balance sheet.                                                           (2009: EUR 401 million);
                                                                                                                                                                                                              •    Owed to the UK tax authorities: EUR 2 million
                                                                                                                                          The bulk of the deferred tax assets will be collectible before           (2009: receivable of EUR 2 million);
                                                                                                                                          2015. With respect to a number of participating interests           •    Owed to the Irish tax authorities: EUR 62 million
                                                                                                                                          outside the tax unity, no deferred tax assets were recognised            (2009: EUR 47 million);
                                                                                                                                          for a total of EUR 1 million (2009: EUR 14 million) because it is   •    Owed to the Czech tax authorities: EUR 2 million
                                                                                                                                          unlikely that these receivables will be realised in the future.          (2009: EUR 2 million);


                                                                                                                                          The applicable corporation tax rate for the Dutch companies
                                                                                                                                          for 2010 and 2009 is 25.5%. The calculation of the deferred
                                                                                                                                          tax position as at year-end 2010 was based on the rate
                                                                                                                                          applicable in 2011 of 25%.
110   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                     111




      7                                                                           8                                                                         9
      Inventories                                                                 Trade and other receivables                                               Cash and cash equivalents
      In millions of euros                          31 Dec. 2010   31 Dec. 2009   In millions of euros                        31 Dec. 2010   31 Dec. 2009   In millions of euros                      31 Dec. 2010   31 Dec. 2009



      Maintenance materials                                 4             44      Receivables from clients from projects in                                 Cash and bank balances                          333            336
      Projects under construction, unsold                  36             53      progress                                           15            100      Term deposits                                    11            138
      Trade goods                                          55             35      Trade receivables                                 687            827      Constrained accounts                             42             72
                                                                                  Unbilled revenue                                   83             96
      Total                                               95           132                                                                                  Total                                         386            546
                                                                                  Other taxes and social security charges            11             24
                                                                                  Other receivables                                  96            198
      In 2010, the charge for the reduction of the inventories value                                                                                        With the exception of tied accounts, the cash and cash
                                                                                  Total                                           892          1,245
      to net realisable value was EUR 7 million (2009: EUR 9 million).                                                                                      equivalents are readily available.
                                                                                                                                                            The interest rate risk facing the Group and a sensitivity
                                                                                  The invoiced income for the student travel card for 2011 and              analysis for financial assets and liabilities can be found
                                                                                  2010 is recognised in the trade receivables balance.                      on pages 130 to 134.


                                                                                  The credit risk associated with trade and other receivables
                                                                                  (excluding construction projects) and the impairment losses
                                                                                  are shown on pages 135 to 137.



                                                                                  Receivables from clients
                                                                                  from projects in progress
                                                                                  In millions of euros                        31 Dec. 2010   31 Dec. 2009



                                                                                  Costs of work in progress                         131            734
                                                                                  Realised gains and losses                           7            -77
                                                                                                                                    138            657


                                                                                  Less: Billed instalments                          123            557

                                                                                  Receivables from clients from projects in
                                                                                  progress                                           15            100




                                                                                  Advance payments received from projects in prog-
                                                                                  ress (stated under trade and other payables)
                                                                                  In millions of euros                        31 Dec. 2010   31 Dec. 2009



                                                                                  Costs of work in progress                          31            907
                                                                                  Realised gains and losses                           2             25
                                                                                                                                     33            932
                                                                                  Less: Billed Instalments                           63          1,089

                                                                                  Advance payments received from
                                                                                  projects in progress                               30            157


                                                                                  Trade and other payables are listed on page 118.
112   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                   113




      10                                                                                                                                              11
      Equity                                                                                                                                          Deferred credits
                                                                                            Increase/                      Increase/                                                                              Financing   Lump sum
       In millions of euros                                               1 Jan. 2009   decrease 2009   31 Dec. 2009   decrease 2010   31 Dec. 2010   In millions of euros                                         benefits   payments    Total



      Share capital                                                          1,012                -         1,012                -         1,012      Total as at 1 January 2009                                      58         194     252
      Legal reserves                                                                                                                                  Release                                                          -8         -5     -13
      Foreign currency translation reserve                                      -6               2             -4               3             -1      Other changes                                                    2          -2        -
      Hedging reserve                                                          -15               -1           -16               2            -14      Total as at 31 December 2009                                    52         187     239
      Total of legal reserves                                                  -21               1            -20               5            -15      Less: current                                                    5           5      10
      Other reserves
                                                                                                                                                      Total non-current as at 31 December 2009                       47         182      229
      Fair value reserve                                                          -              -1            -1               3              2
      Actuarial reserve                                                          5               1              6               -1             5
      General reserve
                                                                                                                                                                                                                  Financing   Lump sum
      •	balance	as	at	1	January                                              2,972
                                                                                                                                                      In millions of euros                                         benefits   payments    Total
      •	other	changes                                                             -              3                               -
      •	profit	for	the	period                                                     -            281                            116
                                                                                                                                                      Total as at 1 January 2010                                      52         187     239
      •	dividends	paid                                                            -         -1,498                           -196
                                                                                                                                                      Release                                                          -7         -7     -14
      Total general reserve                                                                 -1,214          1,758             -80          1,678
                                                                                                                                                      Other changes                                                     -          -        -
      Total other reserves                                                   2,977                          1,763                          1,685
                                                                                                                                                      Total as at 31 December 2010                                    45         180     225
                                                                                                                                                      Less: current                                                    6           6      12
      Total reserves                                                         2,956                          1,743                          1,670
      Profit for the period                                                   281                             116                            149      Total non-current as at 31 December 2010                       39         174      213
      Total group capital                                                    4,249                          2,871                          2,831
      Minority interests                                                          -                              -                              -
                                                                                                                                                      The income concerns financing benefits from cross-border
      Total equity                                                         4,249                          2,871                          2,831        leases, lump sum payments for ground lease issued and
                                                                                                                                                      the lump sum payment for the wage cost increase following
                                                                                                                                                      the privatisation of the Spoorwegpensioenfonds in 1994.
      The authorised capital as at both 31 December 2010 and            Hedging reserve
                                                                                                                                                      The release from the financing benefits item was deducted
      31 December 2009 consisted of 4 million ordinary shares           The hedging reserve consists of the cumulative change in the
                                                                                                                                                      in the income statement from the borrowing costs.
      with a nominal value of EUR 1,000. There are 1,012,000            fair value of hedging instruments when the hedged transaction
      shares issued and fully paid up. All issued shares are held       has not yet taken place or the hedged position has not yet been
      by the Dutch State. The shareholders are entitled to              terminated.
      dividend distribution as declared annually based on a
      resolution by the general meeting of shareholders                 Fair value reserve
      concerning profit appropriation. The shareholders are             The fair value reserve comprises the cumulative change in the
      entitled to cast one vote per share during the company’s          fair value of investments available for sale until the investment
      annual general meeting.                                           is no longer shown on the balance sheet.


      In addition to the total proposed last year of EUR 41 million     Actuarial reserve
      (2009: EUR 98 million), a further EUR 155 million                 The actuarial reserve concerns the actuarial gains and losses,
      (2009: EUR 1,400 million) was distributed to the shareholder      consisting of the difference between the actual and the
      in 2010.                                                          expected changes in the pension obligations and the
                                                                        investment result on plan assets.
      Reserve for exchange rate differences
      The reserve for exchange rate differences includes all the        General reserve
      exchange rate differences on foreign currency that arise from     This is recognised in equity after deduction of tax.
      the translation of the financial statements of foreign
      companies, as well as the translation of liabilities with which   Dividend
      the net investment of the company in a foreign group              The proposed profit appropriation is included under
      company is hedged.                                                ‘Other information’ on page 142.
114   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                                                    115




      12                                                                          13
      Loans and other financial liabilities                                       Employee benefits                                                            When joining industrial pension funds, NS group companies       Merseyrail and Northern Rail
      These notes contain information about the contractual                       Employee benefits include:                                                   are under no obligation to meet additional payments in the      Merseyrail and Northern Rail have placed the administration
      stipulations and the interest-bearing loans and other                       •   Obligations with respect to staff who retired early,                     event of a shortfall at the industrial pension fund, other      of the pension plan for their staff with the Railways
      financial liabilities the Group has which are valued at                         including the amount of the future benefits that former                  than meeting their obligations with respect to future           Pension Scheme. The respective funds are industrial pension
      amortised cost.                                                                 employees receive pursuant to the then VUT scheme, and                   premiums. Likewise, the NS group companies also have no         funds and the pension plan a defined benefit plan.
                                                                                      early retirement after 40 years of service in the context of             entitlement to any surpluses in the funds. As a result, these   The negative difference between the pension obligations
                                                                                      the transitional arrangement;                                            defined benefit plans are treated as defined contribution       and plan assets is recognised under other non-current
      In millions of euros                          31 Dec. 2010   31 Dec. 2009
                                                                                  •   Other employee benefits in the long term, including                      plans in these financial statements in accordance with IFRS.    liabilities and includes the amount that would result in
                                                                                      long-service awards;                                                                                                                     payment over the duration of the concession period.
      Non-current liabilities
                                                                                  •   Obligations arising from occupational disability and                     Total pension premium payments charged to the income            The residual amount at the end of the concession period is
      Private loans                                       291            611
                                                                                      supplements to social benefits;                                          statement for 2010 was EUR 28 million (2009: EUR 26 million).   not recognised on the balance sheet because it will be part
      Bank loans                                             -           142
                                                                                  •   Obligations in connection with defined pension plans                                                                                     of the liabilities of the next concession holder. Of the total
      Mortgage loans                                         -             2
                                                                                      (for further information please see page 115 to 117).                    The pension plan for the railways sector is placed with         pension charges calculated, 60% is for the account of the
      Finance lease liabilities                             4              4
                                                                                                                                                               Spoorwegpensioenfonds. For financial reporting, this plan is    employer and 40% for that of the employees.
      Interest rate swaps used for hedging                 20             24
                                                                                                                                                               classified as a defined contribution plan. The premium          The pension obligations and the plan assets were
      Other liabilities                                      -             2      In millions of euros                           31 Dec. 2010   31 Dec. 2009
                                                                                                                                                               agreed with Spoorwegpensioenfonds is a fixed, previously        determined using actuarial calculations carried out
      Total                                             315            785                                                                                     agreed, annual premium, expressed as a percentage of the        as at 31 December.
                                                                                  Defined benefit plans                                  6              4
                                                                                                                                                               pension base. This eventually increases to 20%. Of the
                                                                                  Other long-term employee benefits                     23             20
      Current liabilities                                                                                                                                      pension premiums paid to Spoorwegpensioenfonds,                 Basic principles
                                                                                  Liabilities from occupational disability                                     2/3 is for the account of the employer and 1/3 for the          When calculating the pension obligations and the plan
      Private loans                                       387            125
                                                                                  benefit and social security payments                      -           5
      Bank loans                                             -           167                                                                                   account of the staff.                                           assets of Merseyrail and Northern Rail, the following basic
                                                                                  Transitional arrangements for early                                          After payment of the agreed premium, the company has            principles were applied:
      Total loans and borrowings                          387            292
                                                                                  retirement (OVUT)                                      5              5
      Bank overdrafts                                        -            18                                                                                   no further obligation to make further payments should
                                                                                                                                                                                                                                                                               2010         2009
                                                                                  Total                                                34             34       there be shortfall at the pension fund. The actuarial risks
      Total                                               387            310
                                                                                                                                                               and the investment risks are borne by the pension fund
                                                                                                                                                                                                                               Discount rate                             5.3 - 5.4%        5.7%
                                                                                                                                                               and its members.
      The liquidity, exchange rate and interest rate risks arising                Pension obligations                                                                                                                          Expected return on invested assets
      from the loans and other financial liabilities of the Group                 The pension plans of the following pension funds apply with                                                                                  in long term                                  6.7%          6.7%
                                                                                                                                                               With respect to the consolidated foreign participating
      are explained in greater detail on pages 128 to 138.                        respect to the personnel of NS group companies, showing                                                                                      Wage total increase                           3.9%          4.0%
                                                                                                                                                               interests of Abellio, the pension plan is primarily a defined
                                                                                  the number of participating active members (year-end 2010):                                                                                  Pension increase                              2.9%          3.5%
                                                                                                                                                               contribution one.
                                                                                                                                                                                                                               Inflation                                     3.4%          3.5%

                                                                                                                                                               The supplementary pension plan of Servex was changed            Mortality table: 2007 SFO valuation
                                                                                  Spoorwegpensioenfonds                                           14,592
                                                                                                                                                               on 1 January 2008 from a defined benefit plan to a defined
                                                                                  Bedrijfstakpensioenfonds Horeca & Catering                        2,620
                                                                                                                                                               contribution plan.
                                                                                  Bedrijfstakpensioenfonds voor het levensmiddelenbedrijf             562
                                                                                  Supplementary pensionplan Servex                                    216
                                                                                  Railways Pension Scheme Merseyrail                                  590
                                                                                  Railways Pension Scheme Northern Rail                             2,298
                                                                                  Abellio London                                                      489
116   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                                                                      117




      Composition                                                                 Composition of plan assets                                             Historical data
      The pension obligations are composed as follows:                            The composition of the plan assets is as follows:                      In millions of euros                                            2010                   2009                    2008                 2007            2006


      In millions of euros                          31 Dec. 2010   31 Dec. 2009   In millions of euros                     31 Dec. 2010   31 Dec. 2009
                                                                                                                                                         Fair value of plan assets                                      312                    268                     213                  355             353
                                                                                                                                                         Present value of defined benefit obligations                   420                    389                     239                  361             371
      Fair value of plan assets                           312            268      Shares                                         219            193
                                                                                                                                                         Balance of liabilities                                        -108                -121                         -26                   -6             -18
                                                                                  Fixed-income securities                         33             27
      Defined benefit obligations                         420            389      Property                                        29             23
                                                                                                                                                         Difference between realised and expected return
      Deficit                                            -108           -121      Other                                           31             25
                                                                                                                                                         on investment                                                   10                    16                      -104                   -1             26
      Members' share of deficit                            43             48      Total                                          312            268      Percentage of plan assets                                     3.2%               6.0%                     -48.8%                  -0.3%           7.3%
      Deficit at the end of the concessionary
                                                                                                                                                         Experience gains or losses on defined benefit obligations         3                     -2                      -3                    -              -1
      period                                               59             69
                                                                                                                                                         Percentage of defined benefit obligations                     0.7%              -0.5%                        -1.3%                0.0%            -0.3%
      Write-down of pension surplus                          -              -

      Group’s commitments concerning
                                                                                  Pension charges in the income statement
                                                                                                                                                         The Group projects that it will have to contribute                     hedge obligations, a one-off payment was made to
      concessionary period                                 -6             -4      In millions of euros                            2010           2009
                                                                                                                                                         EUR 10.5 million (GBP 9.0 million) to the aforementioned               Spoorwegpensioenfonds. Settlement will be on the
                                                                                                                                                         defined benefit plan in 2011. In 2010, the contribution                basis of final costing.
      At year-end 2010, the actuarial calculation for all the plans               Pension costs                                   12              8
                                                                                                                                                         totalled EUR 10.9 million (GBP 9.4 million).
      resulted in a liability.                                                    Interest expenses                               10              9
                                                                                                                                                                                                                                Other long-term employee benefits
                                                                                  Expected return on investments                 -11             -8
                                                                                                                                                         Early pension after forty years’ service                               This includes long-service obligations.
      Movement
                                                                                  Total                                           11              9      In accordance with the collective labour agreement (CAO)               For calculating the long-service awards, the 2010-2060
      The movement in the plan assets and the pension obliga-
                                                                                                                                                         agreed in 1998 for the social unity of the Group, the early            mortality tables are used.
      tions is as follows:
                                                                                                                                                         retirement scheme (VUT) was replaced at the time by the                Movement in the provision for long-service awards
                                                                                                                                                         early-pension scheme. As regards staff that have served 40             is as follows:
      In millions of euros                                 2010           2009    Actuarial results included under equity
                                                                                                                                                         years before the early pension age and were born before
                                                                                  In millions of euros                            2010           2009                                                                                                                                              2010       2009
      Plan assets as at 1 January                        268            213                                                                              1950, a transitional arrangement applies. As regards staff that
                                                                                                                                                         have served 40 years before early pension age and were born            Long-service award obligation
      Expected return                                      20             15
                                                                                  Actual return on investment                     29             31                                                                             as at 1 January                                                     20        18
      Pension contributions                                17             16                                                                             after 1949, the amount reserved for these members of staff
                                                                                  Expected return on investment                   19             15                                                                             Actuarial gains and losses                                           2         1
      Pension benefits paid                               -11             -7                                                                             was committed to the career break scheme [levensloo-
                                                                                  Difference between actual and expected                                                                                                        Accrued interest                                                     1         1
      Difference between actual return and                                                                                        10             16      pregeling]. The administration of the transitional arrangement
                                                                                  return on investment                                                                                                                          Long-service award obligation as at 31 Dec.                         23        20
      expected return                                      10             16                                                                             has been transferred to Spoorwegpensioenfonds. In order to
      Exchange rate gains and losses                        8             15



                                                                                                                                                         14
                                                                                  Experience gains or losses on defined
      Plan assets as at 31 December                      312            268
                                                                                  benefit obligations                              3             -2
                                                                                  Changes in assumptions                          10           -107
      Defined benefit obligations as at 1 January        389            239
                                                                                  Franchise adjustment                           -16             56
      Pension costs                                        20             13                                                                             Provisions
                                                                                  Changes in members' share                       -9             37                                                                             Reorganisation
      Interest expenses                                    23             17
                                                                                  (Reversal of) write-down of pension                                                                                                                costs and           Provision             Provision
      Pension benefits paid                               -11             -7                                                                                                                                                       redundancy              for soil       for onerous              Other
                                                                                  surplus                                           -              -
      Net actuarial gain or loss                          -13           109                                                                              In millions of euros                                                         schemes          remediation             contracts     provisions      Total
                                                                                  Other                                            1              1
      Exchange rate gains and losses                       12             18
                                                                                  Total                                           -1              1      Carrying amount as at 1 January 2010                                            29                 109                    66              47        251
      Defined benefit obligations
      as at 31 December                                  420            389                                                                              Acquisitions                                                                      -                   -                     -               -         -
                                                                                                                                                         Addition                                                                        12                    3                    7              26         48
                                                                                  Cumulative actuarial gains and losses
                                                                                                                                                         Accrued interest                                                                  -                   1                   16                -        17
                                                                                  recognised in equity                             5              6
                                                                                                                                                         Withdrawal                                                                     -13                   -9                     -             -10       -32
                                                                                                                                                         Reclassification                                                                  -                   -                  -23                -       -23
                                                                                                                                                         Release                                                                         -3                    -                     -              -2        -5

                                                                                                                                                         Carrying amount as at 31 December 2010                                         25                 104                    66               61       256


                                                                                                                                                         Non-current                                                                                                                                         175
                                                                                                                                                         Current                                                                                                                                              81
118   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                                                 119




                                                                       15
      Reorganisation costs and non-activity schemes                    Trade and other payables                                                Off-balance sheet commitments                                           Contingent liabilities
      The purpose of the provision for reorganisation costs and        In millions of euros                      31 Dec. 2010   31 Dec. 2009                                                                           Of the share of the Group in the share capital (converted EUR
      non-activity schemes is to hedge the costs incurred in the                                                                               Long-term contracts                                                     121 million) of Eurofima AG, EUR 24 million has been paid up.
      context of a reorganisation project. The bulk of the provision   Advance payments received from projects
                                                                                                                                               At year-end 2010, the Group had a number of long-term                   The Group has a direct callable full payment obligation and
      is earmarked for redundancy schemes, bridging payments           in progress                                      30            157      financial obligations to third parties. In the first instance,          guarantee commitments worth EUR 218 million.
      and redeployment of members of staff whose positions have        Trade payables                                  176            315      these concern operating lease agreements for trains,                    Securities have been pledged for the Eurofima loans, which
      been scrapped during the reorganisation project.                 Current portion of deferred credits              12             10      company cars and reproduction equipment.                                are not part of the cross-border lease financing in the form
      The Group expects obligations to arise with respect to this      Other taxes and social security charges          84            118      Secondly, long-term contracts concern services provided                 of first lien on rolling stock.
      provision until 2014.                                            Pension contributions                              -             5      by third parties in the field of electronics, health and safety
                                                                       Other liabilities                               398            436      services, maintenance and cleaning.                                     In addition, the Group and consolidated participating
      Provision for soil decontamination                               Accrued expenses and deferred income             94            169      The total obligation for long-term lease agreements for                 interests have pledged securities, letters of intent and
      The purpose of the provision for soil decontamination                                                                                    office accommodation amounts to some EUR 60 million                     guarantees worth some EUR 200 million (2009: some
                                                                       Total                                         794          1,210
      is to manage and clean up environmental damage.                                                                                          (2009: some EUR 50 million).                                            EUR 400 million).
      The provision is calculated using a discount rate of 3.5%
      (2009: 3.9%).                                                    The liquidity risk of the Group arising from payables and               The amounts due by virtue of operating lease agreements                 Claims have been submitted against NS and/or group
      The Group expects obligations to arise with respect to this      other outstanding items are listed on page 137 and 138.                 that cannot be cancelled expire as follows:                             companies, which it is contesting. Although the outcome of
      provision until 2030. A substantial part of this provision                                                                                                                                                       these disputes is not certain, it is expected that they will not
                                                                                                                                               In millions of euros                   31 Dec. 2010      31 Dec. 2009
      concerns the residual provision that will have to be on hand     For detailed information on the advance payments item                                                                                           have negative financial consequences of material significance.
      in 2030. This portion has a long-term character. A review will   from work in progress, please refer to page 110.
                                                                                                                                               <1 year                                       67                 91
      be carried out every five years, which may result in adjust-                                                                                                                                                     Concessions
                                                                                                                                               1-5 years                                    240               288
      ments to the addition policy.                                                                                                                                                                                    The Group has the following concessions:
                                                                                                                                               >5 years                                     155               145

      Provision for onerous contract
      This provision primarily concerns the loss-making concession
      agreement concerning the operation of HSL-South,
                                                                       16                                                                      Total                                      462

                                                                                                                                               In 2005, the Group concluded an eight-year contract with
                                                                                                                                                                                                            524

                                                                                                                                                                                                                       Main rail network
                                                                                                                                                                                                                                                                                  Expiry date



                                                                                                                                                                                                                                                                               31-12-2014
                                                                       Deferred income                                                                                                                                 HSL-South                                               30-06-2024
      as explained on page 101 under impairment. In 2010,                                                                                      Essent (2007-2015) for the delivery of traction power to the
                                                                       This primarily concerns prepaid subscription money and                                                                                          Regional transport concessions                          see further
      a total of EUR 23 million (2009: EUR 70 million) was added                                                                               material fleet in the Netherlands. The transport costs of
                                                                       deferred income for the student public transport pass
      to the provision.                                                                                                                        traction power are not covered by this contract. The value
                                                                       (‘Studentenkaart’).                                                                                                                             Merseyrail Electrics concession around Liverpool (UK)   20-07-2028
                                                                                                                                               of the contract that exceeds an agreed limit is pledged as
                                                                                                                                                                                                                       Northern Rail concession in the UK                      15-09-2013
      The total HSA provision amounts to EUR 193 million                                                                                       security by Essent or paid by Essent. The contribution and
                                                                                                                                                                                                                       Abellio concessions in Germany                          see further
      (2009: EUR 170 million), being the maximum amount                                                                                        liability are offset against each other since both are
                                                                                                                                                                                                                       PROBO concessions in the Czech Republic                 see further
      due based on the guarantee agreed with the State.                                                                                        intrinsically linked to each other.
                                                                                                                                                                                                                       Abellio London concessions in England                   see further
      EUR 132 million of the provision was written down
                                                                                                                                                                                                                       Syntus                                                  see further
      on property, plant and equipment (2009: EUR 106 million)                                                                                 Virtually all the subsidiaries of the Group are part of
                                                                                                                                                                                                                       Qbuzz                                                   see further
      by means of a reclassification and EUR 61 million is                                                                                     the NS tax entity for corporation tax purposes, with
      presented as a provision (2009: EUR 64 million).                                                                                         the exception of foreign subsidiaries. As a consequence,
                                                                                                                                               the Group is jointly and severally liable for tax debts of
      Other provisions                                                                                                                         subsidiaries that are part of the tax entity.
      Other provisions concerns, among other things, provisions
      for damage from accidents and fire and guarantees issued.                                                                                Investment obligations
                                                                                                                                               At year-end 2010, the Group had outstanding
                                                                                                                                               investment obligations totalling some EUR 670 million
                                                                                                                                               (2009: EUR 960 million), particularly for acquiring
                                                                                                                                               and refitting trains.
120   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                      121




      Main rail network                                                 amounted to EUR 74 million (for the period from                   the relevant provincial or urban authorities.                 Syntus concessions
      This concession was granted by the ministry of Transport and      1 July - 31 December 2010, EUR 29 million). In a Memo-            A user fee is received from the entity granting the           Syntus operates regional bus and train concessions in
      Water Management and concerns passenger transport by rail         randum of Understanding from December 2008, the State             concession for its implementation.                            Overijssel and Gelderland. The running time of the conces-
      using the main railway network in the Netherlands. Each year,     has suspended payment by HSA of the infrastructure fee                                                                          sions ends between 2012 and 2020.
      NS prepares a transport plan that requires the approval of the    for a period of three years from the starting date.               Merseyrail-concession
      minister of Transport and Water Management. With the              The associated liability is presented on the balance sheet        This concession is operated in a 50/50 joint venture with     Qbuzz concessions
      transport it offers, NS is responsible for guaranteeing the       as a non-current liability. A downward adjustment of              Serco, a listed British company. It concerns passenger        Qbuzz operates regional bus concessions in Rotterdam,
      public interest of passenger transport by train. This means       EUR 14 million of the annual infrastructure fee was               transport on the rail network around Liverpool.               Friesland, Groningen and Drente. The running time of the
      that NS contributes towards the accessibility of major cities,    attributed to the journey times and frequency of service          The annual distance covered comes to approximately six        concessions ends between 2011 and 2019.
      economic core areas and the countryside, and ensures              to Paris. Under certain circumstances, the infrastructure         million kilometres.
      accessibility for each and everyone. The service provided by      fee, among other things, may be renegotiated.                     There is a duty to implement the agreed service level
      NS must also be focused on growth. Furthermore, in the                                                                              (timetable, quality of the service) at a fixed fee from the
      context of the public interest, NS should keep its operational    Shareholders of HSA have each furnished a guarantee for           regional authorities. An evaluation is performed once every
      performance up to standard as measured against five duty          their share in HSA to settle equity shortage at HSA up to         five years to ascertain whether the operations continue to
      of care aspects: guaranteeing public safety, running on time,     a maximum of EUR 244 million (at 2000 price level).               be ‘efficient’. The first evaluation took place in 2009.
      offering a proper service (cleanliness and ready information      For KLM, this settlement is a maximum of EUR 6 million            The concession runs for 25 years (until 20 July 2028).
      in the event of disruptions) and offering a fair chance of        (already settled). Taking account of payments already made        There is no option to extend. Failure to comply with the
      obtaining a seat.                                                 of EUR 121 million (at 2000 price level), the outstanding         contract means that the concession may be terminated, in
      It has been agreed with the authorities that rolling stock used   liability for NS as at balance sheet date is EUR 123 million      which case the financial exposure would be GBP 5.2 million.
      on the main railway network be recognised at carrying             (at 2000 price level). It is expected that the whole obligation   The annual fee from the authorities (grant) is laid down in
      amount and that lease agreements be taken over by the new         will be settled in 2012, after which, basically, HSA will have    the contract and is indexed annually.
      concession holder should NS lose the concession for the main      no more funds. Since the shareholders are not required to
      railway line in the long term.                                    clear any further equity shortfalls, this threatens the           Northern Rail concession
      The concession is valid from 1 January 2005 to 1 January 2015.    continuity of HSA in the following periods unless further         This franchise is operated in a 50/50 joint venture with
      The concession was evaluated in 2008/2009, with the               measures are implemented (see also page 141 under                 Serco, a listed British company. It concerns the regional
      concession price, special transport services, duty to care,       company equity). At the moment, talks are underway with           and urban passenger transport in the north of England.
      performance and ticket prices, among other things, being          the State concerning, among other things, possible solutions      This franchise covers about 40 million kilometres a year.
      scrutinised. This has led to a number of changes in the           to secure the continuity of HSA.                                  There is a mandatory requirement to perform the agreed
      concession. For example, with effect from 2009, NS is subject     At the end of January 2011, the Minister updated the Lower        service provision (timetable, quality of the timetable)
      to a concession price of EUR 10 million increasing to             House of Parliament about this.                                   at a fee from the authorities (grant) agreed in advance
      EUR 30 million in 2014. In addition, the Minister can impose a                                                                      and which is indexed annually. The franchise is valid
      maximum fine of EUR 2.75 million per year on NS if the agreed     Regional transport concessions                                    until 15 September 2013. If the contractual conditions
      performance as contained in the transport plan is not met.        Concerns passenger transport by rail to the connections           are not met, the franchise may be terminated.
                                                                        listed below.                                                     In that case, the financial exposure is GBP 15 million.
      HSL-South                                                         The concession contains the requirements with respect
      The concession was awarded on the basis of a public               to frequency, accessibility, service level and suchlike.          Concessions in Germany
      tender to HSA, in which NS and KLM are shareholders.              The running validity of the concession is as follows:             Abellio operates various bus and train services in the
      The contractual obligations include, amongst others,              •   Gouda – Alphen aan den Rijn: from 13 December 2009            North-Rhine Westphalia and Hessen regions.
      minimum frequencies and maximum journey times, as well                to 9 December 2012                                            The concessions are valid until between 2012 and 2019.
      as quality requirements (punctuality) and requirements            •   Zutphen – Apeldoorn: from 31 May 2005
      concerning customer satisfaction / accessibility.                     to 9 December 2012                                            Concessions in the Czech Republic
      The concession runs for 15 years. The starting date had been      •   Zwolle – Kampen: from 13 December 2009                        PROBO operates 70 bus services in the Central Bohemia
      postponed a couple of times and set by the State at 1 July            to 9 December 2012                                            region. The concessions are valid until between
      2009. The agreement does not contain any options for              •   Zwolle – Emmen: from 12 December 2010                         2011 and 2014.
      extension and cancellation is only possible in exceptional            until 9 December 2012 at the latest
      circumstances (including insolvency, force majeur and failure     •   Rotterdam – Hoek van Holland Strand:                          Concessions in London
      to comply with obligations).                                          from 12 December 2010 to 9 December 2012                      Abellio London operates 40 bus services in London
      The annual infrastructure fee is EUR 148 million at 2000                                                                            and 19 in Surrey. The concessions are valid until between
      prices (indexed) with a running-in scheme / discount              The first concessions were granted by the ministry                2011 and 2016, with the possibility of an extension
      for the first four years. The infrastructure fee for 2010         of Transport and Water Management. The others by                  for two years.
122   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                                      123




      Notes to the consolidated income                                       The average workforce, expressed in full-time equivalents            Level of the remuneration in relation to the external           With respect to the contract of employment agreed with
                                                                             (FTEs):                                                              remuneration market                                             her, the Supervisory Board was guided by the corporate
      statement for 2010                                                                                                                                                                                          governance code no. II.1.1 and nr. II.2.7 concerning the
                                                                                                                                                  When deciding the level and composition of the remu-
                                                                                                                        2010               2009
                                                                                                                                                  neration, the Supervisory Board refers to developments in       duration of the appointment and any severance pay


      17                                                                     Passenger services
                                                                             Hub development and operation
                                                                                                                     19,583
                                                                                                                      2,927
                                                                                                                                        19,980
                                                                                                                                         2,991
                                                                                                                                                  the external remuneration market for Directors. This goes
                                                                                                                                                  about as follows:
                                                                                                                                                  •   The complexity of the NS Director positions is determined
                                                                                                                                                                                                                  respectively, as well as a 20% reduction in fixed income.


                                                                                                                                                                                                                  The successor of Mr. M. Niggebrugge, Mr. E.M. Robbe, took
      Revenue                                                                Other activities                          469                475
                                                                                                                                                      with the aid of external job assessment specialists using   up his post on 1 October 2010. His contract of employment
      Revenues can be broken down as follows into revenue
                                                                             Total                                 22,979           23,446            the Hay method. The job complexity is expressed in          also includes the aforementioned corporate governance
      categories:
                                                                                                                                                      Hay points. The Hay points are linked to a specific remu-   principles, as well as a 20% reduction in fixed salary.
                                                                                                                                                      neration via the Hay job scale system.                      Mr. Niggebrugge stepped down as finance Director on
      In millions of euros                             2010          2009
                                                                             Remuneration of Directors                                            •   In order to ascertain whether the remuneration is           1 January 2011 and will continue to serve the Board until
                                                                             The remuneration policy for the NS Directors and                         competitive in relation to comparable Dutch companies,      the middle of March 2011.
      Revenue
                                                                             its implementation in 2010 are explained in the                          NS regularly takes part in an external remuneration
      Passenger services                            2,655          2,514
                                                                             remuneration report.                                                     review, with the Hay points offering an objective compar-   Performance criteria for variable salary component
      Hub development and operation                   602           542
                                                                                                                                                      ative basis. The purpose of the remuneration policy is to   The remuneration committee draws up the performance
      Other activities                                -62            -65
                                                                             The purpose of the agreed remuneration policy is twofold:                assess whether the primary fixed income component           criteria at the beginning of the year, which are then approved
      Total turnover                                3,195          2,991
                                                                             1. The remuneration policy supports the domestic and                     (fixed income and variable income short term) is compa-     by the Supervisory Board. The performance criteria are
                                                                               international objectives of NS and is in line with the                 rable to the median of similarly complex positions It has   directly derived from the group plan and the 2010 Transport
      Own capitalised production                      144           130
                                                                               position of the organisation in domestic and international             been concluded that the fixed income component of the       Plan [Vervoerplan 2010] and specified in client and share-
      Other revenue                                   181           150
                                                                               multimodal transport in an increasingly competitive                    NS Directors is below the median for this review.           holder. Approximately 75% of the performance criteria is
      Total revenue                               3,520           3,271        environment.                                                           The same applies even more emphatically for the variable    client related. The remuneration committee advises the
                                                                             2. The remuneration level and set-up of the remuneration                 income component.                                           Supervisory Board on whether and to what extent the targets
                                                                               structure create the conditions for attracting and retaining       •   At the initiative of the shareholder, the reference         have been achieved and whether there have been excep-
      The other activities include auxiliary services, the holding
                                                                               and properly awarding qualified, expert managers with                  framework for the total income in 2009 was amended.         tional circumstances requiring adjustments. The Supervisory
      company and the eliminations deliveries between the
                                                                               the required experience.                                               NS has been positioned by the authorities in the            Board then sets the variable income component.
      segments. The latter produces a negative amount in the
                                                                                                                                                      market / public category. With effect from 2009, account
      turnover.
                                                                             The remuneration is approved by the Supervisory Board                    has to be taken of each calculation of the remuneration     Approximately 80% of the performance criteria apply to all
                                                                             as proposed by the remuneration committee. In 2010, the                  of a weighted combination of remuneration ratios in the     the Directors, albeit to a different degree for the different
      Operating expenses
                                                                             remuneration committee consisted of Mr H. Zwarts (chair),                relevant markets: private, public and international.        Directors. In 2010, the Directors achieved 35% of the targets
                                                                             Mr W. Meijer and Ms M.J. Oudeman.                                        Peer groups have been identified for each market            (2009: 40 and 30%).


      18                                                                     Elements of the remuneration and the relationship
                                                                             between them
                                                                                                                                                      of companies that can be compared, and a median is
                                                                                                                                                      agreed for each peer group. Based on these three
                                                                                                                                                      medians, a weighted median is determined.
                                                                                                                                                                                                                  The targets realised are the financial result and public safety
                                                                                                                                                                                                                  in trains and on stations. The Supervisory Board however,
      Staff costs
      In millions of euros                             2010           2009   The Directors’ remuneration consists of a fixed income                   The Supervisory Board has established that the total        decided it would use its discretionary powers and not award
                                                                             component with secondary terms and conditions (expense                   cash income of the Directors of NS is below the agreed      variable remuneration for 2010. In taking this decision, the
      Wages and salaries                              960           906      allowance, company car, pension) and a short-term variable               median income.                                              Supervisory Board was swayed by the fact as far as customer
      Social security contributions                   113             97     income component.                                                                                                                    focus is concerned, the most important targets had not been

      Contributions to defined
                                                                             The short-term variable income is focused on the reali-              With effect from 1 January 2010, the fixed income               realised. This does not alter the fact that the Supervisory
      contribution plans                               17             17     sation of challenging targets and objectives within                  component of Directors was not adjusted.                        Board greatly values the effort and involvement of all the

      Contributions to defined
                                                                             a single financial year and, for the current chairman                                                                                members of the Board of Directors, often under very
      benefit plans                                    11              9     of the board, amounts to a maximum of 50% of the                     Contracts of employment                                         difficult conditions.
      Other personnel expenses                         73             81     fixed income component and for board members a                       The contracts of employment with the Directors
      Staff hired in                                   64             71     maximum of 40%.                                                      M. Niggebrugge and A. Meerstadt were agreed in 2000 and         Pension plan
                                                                             In the past, the intention was mooted to find a better               2001 respectively. The contracts stipulate that upon termi-     The Directors are members of a pension plan of the industry
      Total                                       1,238           1,181
                                                                             balance between the variable and the fixed income                    nation - unless section 7:687 of the Netherlands Civil Code     pension fund (Spoorwegpensioenfonds). The retirement age
                                                                             components by, among other things, in addition to the                dictates - severance of a minimum of one time and a             for Directors on a current contract is 62. In addition, there is
                                                                             existing short-term variable income, introducing a                   maximum of three times the fixed salary will be paid.           a transitional arrangement with effect from 60 years.
                                                                             long-term variable component in order to strengthen                  Ms. M.W.L. van Vroonhoven was appointed to the Board            For the Directors appointed in 2009 and 2010, the retirement
                                                                             the Directors’ ties with the company and its objectives.             of Directors of NS in 2009.                                     age is 65.
124   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                                 125




                                                                                                                                                    19                                                    21
      Remuneration of Directors                                                 The break down per Supervisory Board member is as follows:          Depreciation, amortisation and impairment             Costs of subcontracted work and
      The gross remuneration per Director for the account of the                                                                                                                                          other external costs
                                                                                                                                                    In millions of euros                   2010    2009
      company can be specified as follows:
                                                                                Remuneration of Supervisory Board members                                                                                 In millions of euros                        2010               2009

                                                                                In euros                                   2010              2009   Depreciation of property, plant and
      Remuneration of Directors                                                                                                                     equipment                             306     270     Subcontracted work                         140                 82
      In euros                                         2010              2009   W. Meijer, Chair                        39,700            39,700    Depreciation of investment property    14      12     Cleaning                                    88                 77
                                                                                H. Zwarts, Vice-Chair                   40,150            40,150    Amortisation of intangible assets       5      10     Maintenance                                 78                 84
      A. Meerstadt                                                              F.J.G.M. Cremers                        34,900            34,900    Total depreciation and amortisation   325     292     Automation                                 114                 91
      Fixed salary                                473,391            473,391    T.M. Lodder                             29,900            29,900    Impairment of property, plant and                     Total                                     420               334
      Variable component                                                        M.J. Oudeman                            29,900            29,900    equipment                              13       8
      (for 2010 and 2009)                                -            71,009    P. Rosenmöller                          29,900            29,900    Impairment investment property         -1       4
      M. Niggebrugge
      Fixed salary

      Variable component
                                                  473,391            473,391
                                                                                Total                                204,450         204,450        Impairment intangible assets

                                                                                                                                                    Total (reversal of) impairment
                                                                                                                                                    losses
                                                                                                                                                                                            -


                                                                                                                                                                                           12
                                                                                                                                                                                                    -


                                                                                                                                                                                                   12
                                                                                                                                                                                                          22
      (for 2010 and 2009)                                -            34,084                                                                                                                              Infrastructure fees
                                                                                The company has not extended any loans, advances or                 Total                                 337     304
                                                                                                                                                                                                          The user fee for the Dutch rail infrastructure increased from
      M.W.L. van Vroonhoven                                                     guarantees with respect to the Directors or Supervisory
      Fixed salary (with effect from 1                                                                                                                                                                    EUR 203 million to EUR 246 million due to a price increase
                                                                                Board members.


                                                                                                                                                    20
      Augustus 2010)                              367,000            152,917                                                                                                                              and infrastructure fee paid for the high-speed rail.
                                                                                                                                                                                                          The user fee for the British rail infrastructure in 2010 was
      Variable component                                                        All the shares of NV Nederlandse Spoorwegen are held by the
      (for 2010 and 2009)                                -            18,350                                                                                                                              EUR 113 million (GBP 97 million) compared to EUR 140 million
                                                                                Dutch State. No options have been extended to Directors or
                                                                                                                                                    Use of raw materials, consumables and inventories     (GBP 125 million) in 2009. This drop is the result of new
      Total                                   1,313,782           1,223,142     Supervisory Board members or to members of staff to hold or
                                                                                                                                                                                                          subtraction procedures with both user compensation and
                                                                                obtain securities in the company.                                   In millions of euros                   2010    2009
                                                                                                                                                                                                          government contributions having been reduced propor-
      In addition, the employer contribution to the pension
                                                                                                                                                                                                          tionally. The user fee for the German rail infrastructure
      charges for the whole of the NS Board of Directors in 2010                                                                                    Raw materials and consumables         295     277
                                                                                                                                                                                                          2010 was EUR 20 million (2009: EUR 19 million).
      came to EUR 31,468 (2009: EUR 22,105). The employer’s                                                                                         Energy                                199     190
      share in the charges is two thirds.
                                                                                                                                                    Total                                 494     467

      The remuneration for Supervisory Board members charged
      to the account of the company in 2010 amounted to
                                                                                                                                                                                                          23
      EUR 204,450. In 2009, this total also came to EUR 204,450.                                                                                                                                          Other operating expenses
      The remuneration consists of a flat fee and an allowance                                                                                                                                            Other operating expenses include insurance, accommodation
      for participating in one or more committees.                                                                                                                                                        costs and fixtures and fittings, external auditor’s fees,
                                                                                                                                                                                                          publicity costs, rental and lease costs for operating assets
                                                                                                                                                                                                          and additions to provisions.


                                                                                                                                                                                                          External auditor’s fees

                                                                                                                                                                                                          In millions of euros                        2010               2009



                                                                                                                                                                                                          Statutory audits                            2.8                2.9
                                                                                                                                                                                                          Other assurance engagements                 1.2                0.4
                                                                                                                                                                                                          Tax advisory services                         -                0.2
                                                                                                                                                                                                          Other services                              0.9                0.2

                                                                                                                                                                                                          Total                                      4.9              3.7
126   NS Annual Report 2010 / Consolidated financial statements                                                                                                                           127




      24                                                                                       25
      Net finance result                                                                       Income tax expense

      In millions of euros                                                      2010    2009
                                                                                               In millions of euros                                                        2010    2009


      Recognised in the income statement                                                       Included in the income statement
                                                                                               Current taxes                                                               -3       1
      Interest income from held-to-maturity investments                          4       2     Deferred taxes                                                             -50     -38
      Interest income from available-for-sale financial assets                   1       2
                                                                                               Total income tax expense                                                   -53     -37
      Interest income from deposits with a term longer than a month              1      20
      Interest income from bank balances                                         2       4
                                                                                               Reconciliation with effective tax rate
      Net gain on disposal of available-for-sale financial assets
      transferred from equity                                                    -       -     Profit before tax                                                          213     154

      Exchange rate differences                                                  -       2     Non-deductible costs                                                         3       1

      Lease income                                                               3       4     Income exempt from tax                                                       2      -2

      Other interest income                                                      5       4     Taxable result                                                             218     153

      Finance income                                                           16      38
                                                                                               Income tax at Dutch tax rate for corporation tax (2010 and 2009: 25.5%):   -56     -39
      Interest expense from financial liabilities measured at amortised cost   -18     -27     Effect of the tax rate in foreign jurisdictions (different rate)            11       9
      Financial benefits                                                         7       9     Effect of non-valuation of deductible losses                                -1      -5
      Exchange rate differences                                                  -       -     Adjustments from previous years                                              -      -2
      Other costs of financing activities                                      -27     -16     Changes in tax rate on deferred taxes                                       -7       -

      Finance expense                                                          -38     -34     Total income tax expense                                                   -53     -37


      Net finance result included in the income statement                      -22      4      Income tax on income and expenses recognised directly in equity             -1       -



      Recognised directly in equity                                                            The corporation tax was calculated using the applicable tax
      Foreign currency translation differences                                           2     rates in the Netherlands, the UK, Ireland, Belgium, Germany,
                                                                                 3
      Effective portion of changes in the fair value of cash flow hedges         3      -1     the Czech Republic and the Scandinavian countries, taking
      Net changes in the fair value of available-for-sale financial assets       4      -1     account of the tax rules and the permanent differences
      Income tax on gains and losses recognised in equity                       -2       -     between the result determination for reporting purposes
                                                                                               and for tax purposes. The tax rules consist of, among other
      Finance result recognised directly in equity, after tax                   8        -
                                                                                               things, the participation exemption and the restriction of
                                                                                               deductible costs.
      Attributable to:                                                                         The effective tax burden on the result of the company is
      Equity holder of the Company                                               8       -     24.7% (2009: 26.1%).
      Minority interest                                                          -       -

      Finance result recognised directly in equity, after tax                   8        -     Agreements have been reached with the tax authorities with
                                                                                               respect to the tax returns until the end of 2006. No final
                                                                                               assessment has been received yet for the years after that,
                                                                                               and this year tax was accounted for on the basis of the
                                                                                               submitted returns.
128   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                              129




         26
      Financial risk management                                          The Audit Committee monitors the adequacy of the risk            Information over risks and financial instruments                   risks. To this end, forward contracts are used monthly for
                                                                         management framework in conjunction with the risks the           The following financial risks are distinguished: market risk,      a part of its fuel costs for a future period (varying between
      Financial instruments have been agreed that produce                Group faces. In its supervisory capacity, the Group’s Audit      credit risk and liquidity risk. There also additional risks        year-end 2011 and 2016) to hedge the exposure from risks
      a financial asset at one party and a financial liability or        Committee is assisted by Corporate Audit and the                 arising from cross-border lease transactions.                      associated with fuel costs and the corresponding foreign
      equity instrument at another party. This includes tradi-           Corporate Finance and Administration department.                                                                                    exchange risks.
      tional financial instruments (accounts receivable, debts and       Corporate Audit performs regular and incidental evalua-          Market risk
      securities) and derivative financial instruments (derivates).      tions to provide additional assurance over the good              Market risk concerns the risk that the income and expenses         Vacancy risk for investment property
                                                                         governance of all the business processes of NS. The findings     of the Group or the value of the investments in financial          With respect to investment property, the Group faces the
      Financial instruments basically involve risks. As far as the       of Corporate Audit are reported to the Audit Committee.          instruments suffer a negative impact due to market                 risk of vacancy. To limit this risk, the Group uses long-term
      Group is concerned, these are mainly market risks, credit                                                                           changes, such as the cost of raw materials, foreign                lease agreements with financially sound parties.
      risks and liquidity risks. This section discusses the objectives   Insurance risks                                                  exchange rates and interest rates. The purpose of market
      and the policy with respect to the management of risks             In the context of its operating activities, the Group faces      risk management is to maintain an acceptable market risk           Interest and exchange rate risks
      arising from financial instruments, as well as management          risks that can be insured. Risks in addition to its retained     position with optimum return.                                      Interest and exchange rate risks are largely managed
      of capital.                                                        cover are administered by subsidiary NS Insurance.                                                                                  centrally. The holding of both interest rate and foreign
                                                                         These concern the risks of collision, fire, operational          Price risk of raw materials                                        currency positions in connection with foreign group
      The purpose of the Group’s risk policy is to identify              and liability claims. The maximum amount of these                The Group is sensitive to the effect of market fluctuations        companies being regulated, and this is done within defined
      and analyse the risks to which the Group is exposed,               damages is calculated once every three years, or more            in the energy price. In 2005, the Group signed an eight-year       position limits. Speculative positions are not taken.
      to determine effective risk limits and controls and to             often if changed circumstances dictate, by external              contract with Essent (2007-2014) to deliver track power for
      monitor compliance with the agreed limits. The policy              specialists. Subsidiary NS Insurance insures the identified      trains in the Netherlands. The transport costs of the track        The Group uses derivative financial instruments to
      and systems for financial risk management are evaluated            risks of the business units. It does not insure third parties.   power are not included in the contract. Pursuant to the            hedge exchange rate and interest rate exposures that
      on a regular basis and, where appropriate, adjusted                Should the total annual claims burden exceed the                 service contract, the Group pays Essent the costs for the          arise from operating, financing and investing activities.
      to the changes in the market conditions and the activities         retained cover of NS Insurance, they are covered by              shared use of their gas and coal-fired plants. Part of these       Such transactions take place within agreed guidelines.
      of the Group.                                                      reinsurance. The normal damage of the group shall be             costs is variable (fuel prices) and part is fixed (other costs).   Depending on circumstances, this policy can be adjusted
                                                                         reimbursed from the premium income and investment                The Group uses a hedging strategy, with also a substantial         from time to time. In accordance with the treasury policy,
      To ensure adequate risk management, additional policies            income of NS Insurance.                                          part of the fuel costs (reduced over a number of years             the Group does not hold derivatives for trading purposes
      have been drawn up for a number of business units.                 If the claims exceed the normal claims, yet lower than           ahead) are fixed.                                                  and the Groups also does not issue them.
      For instance, NS Insurance and Abellio implement specific          the retained cover of NS Insurance, these are met the            The contract offers the Group price stability, market
      risk management in respect of business units for which             – adequate – free reserve of NS Insurance.                       conformity and takes account of volume and credit risk:            Exchange rate risk
      Corporate Treasury gives substance to the financial risk                                                                                                                                               The Group faces exchange rate exposure on purchases,
      management.                                                        NS Insurance NV is reinsured by means of stop-loss               •   Price stability: shortfalls in production capacity in the      trading activities, liquid assets, loans taken up and other
                                                                         reinsurance contracts. Maximum possible loss assessments             Netherlands and a shortfall in CO2 emission rights do          balance sheet items denominated in a currency other than
      To the extent that Corporate Treasury has an influence on          are done on a regular basis to prevent under-insurance.              not result in price increases.                                 the euro. By virtue of is operating activities, the Group’s
      the business units, this policy is recorded in the Cash            If market conditions allow, NS Insurance only takes out          •   Market conformity: the variable fuel component also            foreign exchange positions mostly arise from positions with
      Manager’s Manual [Handboek Cashmanagers], which is                 reinsurance with parties with a minimum rating of A +,               offers the option to implement the company’s own risk          pound sterling (GBP), the Swiss franc (CHF) and the Czech
      part of the overall NS Reporting Manual accessible to every        stable outlook. Should the rating fall below A-, it has the          management in more liquid fuel markets.                        crown (CZK). With respect to exchange rate risk, the Group
      member of staff via the NS intranet. Based on policy               option to cancel the reinsurance contract. This has not          •   Volume risk: the volume risk of the contract is limited        recognises the transaction risk, the translation risk and the
      standards and procedures, the Group wishes to create a             been the case to date. The reinsurers of NS Insurance                because the Group has the option to adjust the volume          economic risk.
      disciplined and constructive climate within which all the          has a minimum rating (December 2010) of A -.                         annually within bandwidths.
      members of staff understand their role and responsibilities.                                                                        •   Credit risk: the credit risk is hedged by means of a credit    Transaction risks concern risks in connection with future
      The Group also strives to spread knowledge and know-how            NS Insurance is an insurance company subject to regulation           management system.                                             cash flows in foreign currency, as well as in connection
      across several members of staff in order to limit too much         by the Dutch central bank (DNB) and the Authority for the                                                                           with balance sheet positions denominated in foreign
      dependence on individual people.                                   Financial Markets (AFM). As is the practice in the insurance     If the value of the contract exceeds an agreed threshold,          currency. The policy of the Group is aimed hedging
                                                                         sector, the required size of the free reserves to be held is     Essent issues security by means of a bank guarantee, or            100% of all the material items denominated in foreign
      Via Abellio, the Group participates in foreign transport           linked to the solvency margin required by DNB.                   Essent contributes cash as security. If this security is pledged   currency, with the exception of exchange rate risks on
      concessions. Most of these operations are in the UK, some          It is standard practice in the industrial insurance market       in cash, the contribution and the obligation will be offset        foreign operations. The risk of exchange rate fluctuations
      in a joint venture with partner Serco, with both parties           to hold free reserves at a factor 3 times the solvency           since both are intricately linked.                                 is hedged using forward exchange contracts, spot
      having equal representation. In addition, Abellio has              margin The solvency margin requirement for 2010 is                                                                                  and/or forward acquisitions and sales and swaps, as a
      operations in Germany and the Czech Republic. The nature           approximately EUR 4 million. For NS Insurance, this means        Abellio agreed fuel hedge contracts for some of its                result of which one or more risks to which the primary
      of the risks and the control measures are similar to those         that a free reserve of EUR 12 million is sufficient.             subsidiaries to partly hedge them against fluctuations in          financial instruments are exposed are transferred to
      for NS, bearing in mind the size of these operations.              NS Insurance satisfies this requirement.                         the fuel price and the corresponding foreign exchange              other contract parties.
130   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                                           131




      Acquisitions and sales, investment and financing obliga-           The main exchange rate for the reporting year is as follows:               The table below presents the division between financial
      tions and settlements with foreign railway companies                                                                                          assets belonging to the interest-bearing non-current and
      usually are conducted in the functional currency of the            Exchange rate                                                              current assets and the interest rate on balance sheet date
      Group’s business units: the euro (EUR) and pound sterling                                                                      Spot rate on   as well as the remaining term.
                                                                                                  Average exchange rate            reporting date
      (GBP). At year-end 2009 and 2010, no material items are
                                                                                                     2010         2009      2010            2009
      held in foreign currency.                                                                                                                     Interest-bearing financial assets

      Sensitivity analysis                                               GBP                       1.17         1.12      1.16            1.13                                                     2010
                                                                                                                                                                                                    Interest        Total   < 6 months   6-12 months   1-2 years   2-5 years   >5 years
      Since no material items denominated in foreign currency
      were held at year-end 2010 an 2009, a change in the value of
      the euro at year-end did not impact on the equity and profit
                                                                         Interest rate risk                                                         Available-for-sale financial assets          3% - 6%            56            6            12          19          19           -
      for the reporting period.
                                                                         The policy pursued by the Group is to ensure that at least
                                                                         50% of the interest rate risk on loans taken up is based on                Held-to-maturity investments                 5% - 6%             4             -             -           -           -         4
      Translation risks concern risks in connection with the
                                                                         a fixed rate. When determining the interest risk on                        Financial leases                             5% - 6%            31            7             2           7          15           -
      translation of the balance sheet items of subsidiaries whose
                                                                         borrowings, the Group can take account of available                        Deposits                                     0% - 1%           209          208              -           -           -         1
      functional currency is different to the euro. The ensuing
                                                                         liquidities which can neutralise the interest rate risk on
      risks are only hedged if the Group expects to discontinue                                                                                     Total                                                          300         221             14         26          34           5
                                                                         variable interest loans. The Group uses derivatives, such as
      the relevant operating activities in the short term. The net
                                                                         interest rate swaps, to limit the interest rate risk. The tables
      equity value of the subsidiary can then be hedged. If no
                                                                         below provide insight into the interest rate as at balance
      decision has been made to dispose of or discontinue the                                                                                                                                      2009
                                                                         sheet date, as well as the maturity date or - if earlier - the
      relevant, the translation differences are accounted for in                                                                                                                                    Interest        Total   < 6 months   6-12 months   1-2 years   2-5 years   >5 years
                                                                         contractual revision date. This means that a position whose
      equity under statutory reserve for exchange differences.
                                                                         interest rate revision falls within the coming year is classified
                                                                         in the category ‘12 months or less’.
      Economic risks are related to a possible weakening of the                                                                                     Available-for-sale financial assets          3% - 6%            54            3             8          19          24           -
      competitive position caused by a change in the value of
      foreign currency. These risks are not currently hedged                                                                                        Held-to-maturity investments                 4% - 7%           122             -            2           2           6       112
      because the likelihood that the competitive position is under                                                                                 Financial leases                             5% - 6%            50            8             8          19          15           -
      threat because of this is low. Moreover, this risk is considered                                                                              Deposits                                     0% - 1%           150          149             1            -           -          -
      to be a normal operational risk.
                                                                                                                                                    Total                                                          376         160             19         40          45       112


                                                                                                                                                    The above deposits and bonds (included in financial current
                                                                                                                                                    assets available for sale) are intended, among other things,
                                                                                                                                                    for paying the agreed investment obligations of approxi-
                                                                                                                                                    mately EUR 670 million, redemption and interest rate
                                                                                                                                                    payments on the amounts borrowed, non-current provisions
                                                                                                                                                    and liabilities.
132   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                133




                                                                               The following notes contain information over the                     Interest rate profile
                                                                               contractual stipulations of the interest-bearing amounts             As at balance sheet date, the interest rate profile of the
                                                                               borrowed and other financial liabilities of the Group, which         interest-bearing financial instruments of the Group could
                                                                               are stated at amortised cost.                                        be specified as follows:

                                                                                                                                                                                           Carrying amount   Carrying amount
                                                                               The summary of outstanding loans is as follows:
                                                                                                                                                    In millions of euros                              2010             2009



                                                                                                                                                    Assets / Liabilities with a fixed
      Summary of outstanding loans                                                                                                                  interest rate
                                                                                                                                 31 December 2010
                                                                                                                                                    Financial assets                                  91              130
      In millions of euros                                   Currency   Nominal interest       Expiry date        Face value     Carrying amount
                                                                                                                                                    Financial liabilities                             79              151


      Private loans                                               EUR       0% - 6%          2012 - 2021               42                   42
                                                                                                                                                    Balance                                          12               -21
      Private loans                                               EUR      6% - 10%                2011                21                   21      Assets / Liabilities with a variable
                                                                                                                                                    interest rate
      Private loans                                               EUR      6% - 10%          2012 - 2021               12                   12
      Private loans                                               EUR        variable              2011               366                  366      Financial assets                                 595              792

      Private loans                                               EUR        variable              2012                17                   17      Financial liabilities                            603              920

      Private loans                                               EUR        variable              2015               125                  125      Balance                                           -8            -128
      Private loans                                               EUR        variable              2017                44                   44
      Private loans                                               EUR        variable              2019                51                   51
                                                                                                                                                    Interest rate sensitivity
      Financial lease liabilities                                 EUR       4% - 6%                2015                 4                     4
                                                                                                                                                    An increase of 100 basis points in the interest rate as at
      Interest rate swaps used for hedging                        EUR        variable        2011 - 2016               20                   20
                                                                                                                                                    balance sheet date would mean an increase in profit for
      Total liabilities                                                                                              702                  702       the reporting period of EUR 4 million. EUR 6 million more
                                                                                                                                                    (2009: EUR 8 million) would have received in interest income.
                                                                                                                                                    The interest charges increasing by EUR 6 million
                                                                                                                                 31 December 2009   (2009: EUR 9 million) are compensated by income from
      In millions of euros                                   Currency   Nominal interest       Expiry date        Face value     Carrying amount    interest rate swaps of EUR 5 million (2009: EUR 5 million).
                                                                                                                                                    This results in a positive effect of EUR 5 million
      Private loans                                               EUR       0% - 6%          2010 - 2012               50                   50      (2009: EUR 4 million). Taking account of corporation tax, an
      Private loans                                               EUR      6% - 10%          2010 - 2011               41                   41      increase of EUR 4 million (2009: EUR 3 million) in the profit
      Private loans                                               EUR        variable        2010 - 2011              407                  407      for the reporting period and equity remains. In the event
      Private loans                                               EUR        variable              2012                30                   30      of a drop in the interest rate of 100 basis points, a reverse
      Private loans                                               EUR        variable        2017 - 2019               94                   94      effect would be achieved.
      Private loans                                               EUR        variable        2011 - 2034              114                  114
      Bank loans                                                  EUR       2% - 6%          2010 - 2020               39                   39      When determining the result, it was assumed that the
      Bank loans                                                  EUR      6% - 10%          2010 - 2020               16                   16      balance sheet position of instruments at year-end had a
      Bank loans                                                  EUR        variable        2010 - 2012              254                  254      variable interest rate. Subsequently, the effect of a increase
      Mortgages loans                                             EUR        variable              2011                 2                     2     or decrease in the variable interest rate of 100 basis points
      Financial lease liabilities                                 EUR       4% - 6%                2017                 4                     4     was calculated. For some of these instruments, the variable
      Bank overdrafts                                             EUR        variable              2010                18                   18      interest rates were fixed by means of interest rate swaps.
      Interest rate swaps used for hedging                        EUR        variable        2010 - 2034               24                   24      As a result, a change in the variable interest rate has no
      Other liabilities                                           EUR        variable              2011                 2                     2     impact on these instruments. The assumption is that all the
                                                                                                                                                    other variables, in particular foreign exchange rates, remain
      Total liabilities                                                                                            1,095                1,095
                                                                                                                                                    constant. The analysis was performed on the basis of the
                                                                                                                                                    same assumptions in 2009.
134   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                                                          135




                                                                                  Hedging transactions                                                   Credit risk                                                                   Investment
                                                                                  The Group uses derivatives to partly or fully hedge the risk           Credit risk is the risk of financial loss for the Group if a                  The Group reduces its credit risk on investments by exclu-
                                                                                  of fluctuations in the fair value of financial assets and/or           supplier or counterparty of a financial instrument does not                   sively investing in counterparties that meet the policy
                                                                                  liabilities, as well as fixed commitments.                             comply with the contractual obligations. Credit risks mainly                  prepared by the Group. Regular assessments are carried out
                                                                                  With the aid of interest rate swaps, the character of variable-        arise from accounts receivable from clients and from                          ascertain whether counterparties continue to meet the
                                                                                  interest loans is converted into that of fixed-interest loans.         investments. As at balance sheet date, there were no concen-                  policy or whether further action is required.
                                                                                                                                                         trations of credit risks. The maximum credit risk equals the
                                                                                  The tables below show the periods in which the net cash                balance sheet value of each financial asset.                                  In view of the credit rating of the counterparties, the Group
                                                                                  flows before tax with respect to derivatives that serve as cash                                                                                      expects them to fulfil their obligations. No impairment losses
                                                                                  flow hedges are expected to happen. The interest rate risk is          The carrying amount of financial assets represents the                        were incurred on investments, bonds and deposits in 2010
                                                                                  partly mitigated by these cash flow hedges.                            maximum credit risk. The maximum credit risk as at balance                    and 2009. Investments are basically made in counterparties
                                                                                                                                                         sheet is as follows:                                                          with a long-term credit rating of A from Standard & Poor’s
                                                                                                                                                                                                                                       and at least a long-term credit rating of A2 from Moody’s.
      Cash flow from interest rate swaps used for hedging purposes 2010                                                                                  Credit risk                                                                   Should a counterparty only have only one credit rating, the
                                                                                                                                                                                                  Note   31 Dec. 2010   31 Dec. 2009
                                                          Carrying    Expected                                                                                                                                                         rating requirements of Standard & Poor’s or Moody’s as
      In millions of euros                                amount     cash flows      < 6 months   6-12 months   1 to 2 years   2 to 5 years   >5 years   In millions of euros
                                                                                                                                                                                                                                       described above have to be satisfied. The investments that
                                                                                                                                                                                                                                       no longer satisfy this policy are wound down (mainly
      Interest rate swaps                                                                                                                                Financial assets including investments
                                                                                                                                                                                                                                       through normal selling), which can still extend some
      Assets                                                  -             -               -             -             -              -           -     Available-for-sale financial assets        5           96            100
                                                                                                                                                                                                                                       time beyond balance sheet date. The foreign companies
      Liabilities                                            20           69               5             3            13             38          10      Held-to-maturity investments               5            5            142
                                                                                                                                                                                                                                       of the Group do not have long-term material liquidity
                                                                                                                                                         Finance leases                             5           31             50
                                                                                                                                                                                                                                       surpluses at hand.
                                                                                                                                                         Other financial assets                     5           14             13
      Cash flow from interest rate swaps used for hedging purposes 2009
                                                                                                                                                         Deposits                                   5          209            150
                                                          Carrying    Expected                                                                                                                                                         Trade and other receivables
      In millions of euros                                amount     cash flows      < 6 months   6-12 months   1 to 2 years   2 to 5 years   >5 years   Trade and other receivables                8          783          1,025
                                                                                                                                                                                                                                       The credit risk arising from trade and other receivables of
                                                                                                                                                         Cash and cash equivalents                  9          386            546
                                                                                                                                                                                                                                       the Group is primarily determined by the individual charac-
      Interest rate swaps
                                                                                                                                                         Total                                             1,524          2,026        teristics of the different clients. The demographic aspects of
      Assets                                                   -            -               -             -             -              -           -
                                                                                                                                                                                                                                       the client file, including the risk of non-payment and the
      Liabilities                                            24         102                7             6            10             18          61
                                                                                                                                                                                                                                       country in which the clients are active, has less impact on the
                                                                                                                                                                                                                                       credit risk. Some 10% (2009: 11%) of the Group’s turnover is
                                                                                                                                                                                                                                       realised from sales transactions with the Dienst Uitvoering
                                                                                  The above items are stated net because of the determined
                                                                                                                                                                                                                                       Onderwijs (DUO).
                                                                                  intention to settle the hedging transactions net. In the
                                                                                  calculation of the future cash flows, it was assumed that
                                                                                  the future variable interest rate position will be the same
                                                                                  as the latest available variable interest rate position.


                                                                                  Fair value versus carrying amount
                                                                                  The carrying amount of financial assets and liabilities
                                                                                  recognised on the balance sheet hardly differs from the fair
                                                                                  value. When calculating the market price, it was assumed
                                                                                  that the carrying amount of deposits with a residual term of
                                                                                  less than one year is equal to the market value. With respect
                                                                                  to government securities, the fair value was calculated using
                                                                                  the available market prices/closing prices. In the absence of
                                                                                  market prices, the fair value is determined on the basis of the
                                                                                  government interest rate curve. For other instruments, the
                                                                                  fair value was calculated using the swap interest rate curve.
136   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                                                       137




      As part of the credit policy pursued by the business units,      The Group recognises a provision for impairment                             The maximum credit risk on receivables as at reporting date                 also has at its disposal a committed credit facility allowing
      each new client’s credit rating is established separately        amounting to the estimated losses from trade and other                      can be specified as follows (segmented):                                    the withdrawal of EUR 350 million, with a term until 2015.
      before standard payment and delivery terms and conditions        receivables. The most important elements of this provision
      are offered. When a contract is extended, the company’s          are a specific loss provision for separate major positions                  Credit risk on receivables                                                  At year-end 2010, the liquid assets and assets that can
      own experience is also referred to when the credit rating is     and a collective loss provision for groups of similar assets                                                                                            be made liquid quickly amounted to EUR 1,378 million
                                                                                                                                                   In millions of euros                     31 Dec. 2010      31 Dec. 2009
      assessed. When assessing credit rating, clients are divided      in connection with losses already incurred but not yet                                                                                                  (2009: EUR 1,721 million). The contractual financial
      into groups, based on credit profiles, including government,     identified. The collective loss provision is determined                                                                                                 obligations within one year amount to EUR 996 million
                                                                                                                                                   Passenger services                             619               572
      companies, private and clients that may have had earlier         on the basis of historical payment data for similar                                                                                                     (2009: EUR 1,091 million). The Group expects to meet the
                                                                                                                                                   Hub development and operation                   56                41
      financial difficulties. Deliveries to clients with a high risk   financial assets.                                                                                                                                       investment obligations and the long-term liabilities from the
                                                                                                                                                   Rail infrastructure & construction                -              207
      profile are only made after approval by the Board of                                                                                                                                                                     surplus of funds in the short term and from the projected
                                                                                                                                                   Other                                           12                 7
      Directors. Business transactions with biggest share of the       The age breakdown of the receivables as at balance sheet                                                                                                cash flow from operating, investing and financing activities.
      clients go back some years now, with only a few incidental       date is as follows:                                                         Total                                        687               827
      cases of immaterial losses.                                                                                                                                                                                              The Group manages the liquidities on the basis of a regular
                                                                                                                                                                                                                               bottom-up compiled liquidity forecast. Based on the
                                                                                                                                                   The risk profiles of the Group’s operations in the Nether-                  forecast, the business units that are clients of the in-house
                                                                                                                                                   lands, the UK, Germany and the Czech Republic do not differ                 bank of Corporate Treasury are awarded financing limits.
      Age analysis of receivables                                                                                                                  that much to justify a separate summary.                                    The bank monitors these limits and it is not possible
                                                                              31 Dec. 2010       31 Dec. 2010   31 Dec. 2009        31 Dec. 2009                                                                               to exceed them unless approval has been obtained.
      In millions of euros                                                           Gross       Provided for          Gross        Provided for
                                                                                                                                                   Liquidity risk                                                              This provides Corporate Treasury with an early-warning
                                                                                                                                                   The risk of the Group failing to meet its financial obligations             system. The liquidity forecast and the financing limits
      Not past due                                                                   649                  -           650                    -
                                                                                                                                                   is limited because the Group has sufficient liquid assets or                referred to above enable Corporate Treasury to manage
      Past due 0 - 30 days                                                            19                  -           100                    -
                                                                                                                                                   assets that can be made liquid quickly. In addition, the Group              the liquidities (lending and borrowing of funds).
      Past due 31 - 120 days                                                            5                 -            61                   1
      Past due 121 - 180 days                                                           5                1             10                   3
      Past due 181 - 360 days                                                           8                1              4                   2
      Past due more than one year                                                     18                15             24                  16      Below we list the contractual terms of the financial liabilities, including the estimated interest payment.

      Total                                                                        704                 17           849                   22
                                                                                                                                                   Contractual cash flows of financial liabilities 31 December 2010
                                                                                                                                                                                                  Carrying
                                                                                                                                                                                                   amount        Contractual
                                                                       Impairment losses                                                           In millions of euros                       31 Dec. 2010        Cash flows     < 6 months   6 - 12 months   1 - 2 years   2 - 5 years   > 5 years
                                                                       Changes in the provision for impairment with respect to
                                                                       receivables were as follows:                                                Non-derivative financial liabilities
                                                                                                                                                   Private loans                                    678               708             67             344           29           156         112
                                                                       Statement of change in provision                                            Finance lease liabilities                              4                5            -              1             1             2           1
                                                                       for bad debts                                                               Trade and other payables                         574               574            574                -            -             -            -

                                                                       In millions of euros                                 2010           2009
                                                                                                                                                   Derivative financial liabilities
                                                                                                                                                   Interest rate swaps used for hedging                  20               69           5               3           13            38           10
                                                                       Balance as at 1 January                              22             23
                                                                                                                                                   Total                                         1,276             1,356            646            348            43          196          123
                                                                       Additions                                               2            4
                                                                       Use                                                     -4          -1
                                                                       Release                                                 -3          -4

                                                                       Balance as at 31 December                            17            22



                                                                       The provision accounts for receivables are used to enter
                                                                       impairment losses, unless the Group is certain that it is
                                                                       impossible to get the due amount back. In that case, the
                                                                       amount is classified as uncollectible and directly written off
                                                                       against the relevant financial asset.
138   NS Annual Report 2010 / Consolidated financial statements                                                                                                                                                                                                                                                              139




      Contractual cash flows of financial liabilities                                                                                                                                                             Percentage                       The following items are included in the consolidated
      31 december 2009                                                                                                                                                                                                interest   Registered seat
                                                                                                                                                                                                                                                   financial statements that correspond with the share of the
                                                          Carrying                                                                                                                                                                                 Group in the assets and liabilities, income and expenses of
                                                          amount     Contractual                                                                                             Subsidiaries of operating com-                                        the joint ventures:
      In millions of euros                            31 December    Cash flows       < 6 months      6 - 12 months       1 - 2 years        2 - 5 years         > 5 years   panies

                                                                                                                                                                             Thalys Nederland NV                       100           Utrecht       In millions of euros                             2010             2009

      Non-derivative financial liabilities                                                                                                                                   HSA Beheer NV                              90        Rotterdam
      Private loans                                         736           821               57                80              404                  34              246       Ematech BV                                100           Utrecht       Non-current assets                               49               45
      Bank loans                                            309           332             167                  5                 6                103                51      Servex BV*                                100           Utrecht       Current assets                                  159              113
      Mortgage loans                                          2             2                -                  -                2                    -                -     NS Fiets BV                               100           Utrecht       Non-current liabilities                          27               26
      Finance lease liabilities                               4             6                -                  -                2                    4                -     NS-OV Fiets BV                            100           Utrecht       Current liabilities                             171              125
      Trade and other payables                              751           751             501                250                 -                    -                -     Stationsfoodstore BV                      100           Utrecht       Net assets / liabilities                         10                 7
      Bank overdrafts                                        18            18               12                 6                 -                    -                -     PROBO BUS a.s.                            100       Kraluv Dvur
      Other liabilities                                       2             2                -                  -                2                    -                -     Abellio GmbH                              100             Essen       Revenue                                         545              496
                                                                                                                                                                             Abellio West London Ltd                   100           London        Expenses                                        518              485
      Derivative financial liabilities                                                                                                                                       Abellio London Ltd                        100           London        Result from operating activities                 27               11
      Interest rate swaps used for hedging                   24           102                7                 6               10                 18                 61                                                                            Profit for the period                            18                 4

      Total                                               1,846         2,034             744                347              426                 159              358
                                                                                                                                                                                                                                                   As at 31 December 2010, joint ventures had investment
                                                                                                                                                                                                                                                   obligations of EUR 0.2 million (2009: EUR 0.6 million).
      Risks arising from cross-border lease transactions                           Group companies
      Until the end of 1998, the Group concluded cross-border                      In accordance with section 403 Book 2 of the Netherlands                                  Joint ventures                                                        Other interests
      lease transactions with the aim to reduce borrowing costs.                   Civil Code, NS Groep NV has assumed joint and several                                     The Group participates in the following joint ventures:               The Group’s interest concerns:
      Under these cross-border leases, which solely concerned                      liability for debts arising from the actions participating
                                                                                                                                                                                                                   Percentage
      rolling stock, the economic property remained with the                       interests marked with an asterix (*).                                                                                              interest   Registered seat                                               Percentage       Registered
                                                                                                                                                                                                                                                   In millions of euros                           interest            seat
      Group, which is why the relevant assets are included on the
      balance sheet. The carrying amount of the rolling stock                      The main companies included in the consolidated financial                                 Waterkant CV                                51      Amsterdam
                                                                                                                                                                                                                                                   Eurofima                                         5.8           Basel
      involved in cross-border leases at year-end 2010 was                         statements are:                                                                           Stationsdrogisterijen CV                    50        Zaandam
      EUR 258 million (2009: EUR 229 million). The financial                                                                                                                 Merseyrail Electrics 2002 Ltd               50        Liverpool
                                                                                                                                        Percentage
      benefits of the cross-border leases are, spread across the                                                                           interest        Registered seat   Northern Rail Ltd                           50       Hampshire
                                                                                                                                                                                                                                                   In accordance with the disclosure requirement contained in
      term of the transactions in the income statement, deducted                                                                                                             Syntus BV                                   50      Doetinchem
                                                                                                                                                                                                                                                   sections 2:379 and 2:414 of the Netherlands Civil Code, a full
      from the borrowing costs. The not yet amortised financing                    Operating companies                                                                       Qbuzz BV                                    49      Amersfoort
                                                                                                                                                                                                                                                   list of the group companies, associates and joint ventures is
      benefits achieved with these leases, amounting to                            NS Reizigers BV*                                         100                Utrecht       Trans Link Systems BV                   68.75       Amersfoort
                                                                                                                                                                                                                                                   filed with the Trade Register in Utrecht.
      EUR 45 million at year-end 2010, are recognised on the                       NS Internationaal BV                                     100                Utrecht
      balance sheet as income attributable to future years and                     Abellio Transport Holding BV                             100                Utrecht
      split into a current portion of EUR 5 million and a non-                     NedTrain BV*                                             100                Utrecht
                                                                                                                                                                                                                                                   Related parties
      current portion of EUR 40 million. The maximum risk that                     NS Financial Services (Holdings) Ltd                     100                 Dublin
                                                                                                                                                                                                                                                   Eurofima is a 5.8% participating interest of the Group; the
      arises upon the simultaneous dissolution of all the current                  NS Stations BV*                                          100                Utrecht
                                                                                                                                                                                                                                                   following transactions and balance sheet positions apply to
      contracts actually exceeds the reserve, but the chance of                    NS Vastgoed BV*                                          100                Utrecht
                                                                                                                                                                                                                                                   this party:
      this occurring is minimal. In view of the real risk, we                      NS Insurance NV                                          100                Utrecht
      consider the amount of the balance sheet item income                         NS Opleidingen BV                                        100                Utrecht
      attributable to future years as adequate. Some of the                        NS Spooraansluitingen BV                                 100                Utrecht                                                                             In millions of euros                             2010             2009
      positions related to these leases concern off-balance sheet
      positions. The credit risk associated with these off-balance                                                                                                                                                                                 Interest charges                                  12               17
      sheet positions is managed by Corporate Treasury.
      Unless exceptional not foreseeable situations arise, the                                                                                                                                                                                                                             31 Dec. 2010      31 Dec. 2009

      exchange rate risk in these contracts is hedged.                                                                                                                                                                                             Interest payable                                   1                1
                                                                                                                                                                                                                                                   Private loans                                   494              619
140   NS Annual Report 2010                                                                                                                                                                                                                                                                141




      Separate financial statements
      Separate balance sheet as at 31 December 2010 of                     Principles applied to the                                             Equity                                                                   The cumulative loss of HSA until the end of 2010 amounts
      NV Nederlandse Spoorwegen                                                                                                                                                                                           to EUR 436 million (2009: EUR 295 million) and exceeds
                                                                           financial statements                                                  In millions of euros              31 Dec. 2010            31 Dec. 2009
                                                                                                                                                                                                                          the indexed guaranteed equity by EUR 143 million
      In millions of euros                   31 Dec. 2010   31 Dec. 2009
                                                                                                                                                 Share capital                                                            (2009: EUR 5 million).
                                                                           General
                                                                                                                                                 Balance as at 31 Dec.                 1,012                   1,012
      Assets                                                               With effect from 2006, the Group applies the International
                                                                                                                                                                                                                          The cumulative loss for HSA as shown in the consolidated
      Financial assets                           2,974          2,876      Financial Reporting Standards (IFRS) and their interpreta-
                                                                                                                                                 Statutory reserves                                                       financial statements exceeds the cumulative cash flow
                                                                           tions by International Accounting Standards Board (IASB)
      Total                                    2,974          2,876                                                                              Foreign currency
                                                                                                                                                                                                                          (from capital contributions) primarily as a result of
                                                                           as adopted for use in the European Union for preparing its
                                                                                                                                                 translation reserve                      -1                      -4      the deferred payment of infrastructure fee
                                                                           consolidated financial statements.
      Equity                                                               For the determination of the principles for the valuation of          Hedging reserve                         -14                     -16      (see page 120 ‘Concessions’).

                                                                           assets and liabilities and result determination for its separate      Total of statutory
      Share capital                              1,012          1,012                                                                            reserves                                -15                     -20      Off-balance sheet commitments
                                                                           financial statements, NS avails itself of the option in 2:362(8)
      Foreign currency translation reserve          -1             -4                                                                                                                                                     In contrast to what is stated on page 119, no claims have been
                                                                           of the Netherlands Civil Code. This means that the principles
      Hedging reserve                              -14            -16                                                                            Other reserves                                                           made against NV Nederlandse Spoorwegen and consolidated
                                                                           for the valuation of assets and liabilities and result determi-
      Actuarial reserve                              5              6                                                                            Fair value reserve                        2                      -1      participating interest that have not been adequately
                                                                           nation (hereinafter ‘accounting principles’) of the separate
      Fair value reserve                             2             -1                                                                            Actuarial reserve                         5                       6      accounted for on the balance sheet.
                                                                           financial statements of NS are the same as those applied to
      General reserve                            1,683          1,758
                                                                           the consolidated financial statements. In this context,
      Profit for the period                        287            121                                                                            General reserve                                                          Most important participating interests
                                                                           participating interests in which substantial influence is
      Total equity                               2,974          2,876                                                                            Balance as at 1 Jan.      1,758                  2,972                   NV Nederlandse Spoorwegen is the holding company
                                                                           exercised are measures using the equity method.
                                                                                                                                                 Dividend paid              -196                  -1,498                  of NS Groep NV. NS Groep NV is the only subsidiary of
      Total                                    2,974          2,876
                                                                                                                                                                                                                          NV Nederlandse Spoorwegen. For a list of the participating
                                                                           Participating interests in group companies                            Profit for the previous
                                                                                                                                                 period                     121                     281                   interest, please refer to page 138 and 139.
                                                                           The participating interests in group companies are measured
                                                                                                                                                 Other changes                 -                      3
                                                                           using the equity method, with losses only recognised to the
                                                                                                                                                 Balance as at 31 Dec.                 1,683                   1,758      Utrecht, 15 February 2011
      Separate income statement for 2010 of                                extent that the shareholder has an obligation to settle them.
                                                                                                                                                 Total other reserves                  1,690                   1,763      Supervisory Board
      NV Nederlandse Spoorwegen
                                                                                                                                                                                                                          W. Meijer, Chair
                                                                           Result of group companies
      In millions of euros                          2010           2009                                                                          Profit for the period                   287                     121      H. Zwarts, Vice-chair
                                                                           The result of group companies consists of the result after
                                                                                                                                                 Minority interests                         -                       -     F.J.G.M. Cremers
                                                                           income tax.
      Result of group companies after tax          287            121                                                                                                                                                     Ms T.M. Lodder
                                                                                                                                                 Total equity                        2,974                   2,876        Ms M.J. Oudeman mba
                                                                                                                                                                                                                          P. Rosenmöller


                                                                                                                                                 The difference of EUR 143 million between the                            Board of Directors
                                                                           Notes to the separate balance sheet                                   equity in the separate financial statements as shown                     A. Meerstadt mba, Chief Executive
                                                                           and the income statement                                              above and the equity in the consolidated financial                       M. Niggebrugge
                                                                                                                                                 statements (EUR 2,831 million) as shown on page                          E.M. Robbe RA
                                                                           The amounts presented in the notes are stated in millions             112 concerns losses from group companies (HSA) which,                    Ms M.W.L. van Vroonhoven mba
                                                                           of euros, unless indicated otherwise.                                 in deviation from the consolidated financial statements,
                                                                                                                                                 in the separate financial statements are only recognised
                                                                           Financial assets                                                      to the extent that the shareholder has an obligation
                                                                           Participating interests in group companies                            to settle them.
                                                                           In millions of euros                            2010           2009
                                                                                                                                                 Shareholders of HSA have each furnished a guarantee
                                                                           Balance as at 1 January                       2,876          4,249    for their share in HSA to settle equity shortage at HSA
                                                                           Share in profit                                287            121     up to a maximum of EUR 244 million (at 2000 price level).
                                                                           Dividend distributed for the previous                                 For KLM, this settlement is a maximum of EUR 6 million
                                                                           reporting year                                 -196         -1,498    (already settled). Taking account of payments already made
                                                                           Other changes                                    7              4     of EUR 121 million (at 2000 price level), the outstanding
                                                                                                                                                 liability for NS as at balance sheet date is EUR 123 million
                                                                           Balance as at 31 December                    2,974          2,876
                                                                                                                                                 (at 2000 price level).
142   NS Annual Report 2010 / Seperate financial statements                                                                                                                                                                                                      143




                                                              Other information
                                                              Profit appropriation                                           Auditor’s responsibility                                          Report on other legal and regulatory requirements
                                                              Pursuant to article 21(2) of the Articles of Association of    Our responsibility is to express an opinion on these financial    Pursuant to the legal requirements under Section 2:393
                                                              NV Nederlandse Spoorwegen, any positive balance in the         statements based on our audit. We conducted our audit in          sub 5 at e and f of the Netherlands Civil Code, we have no
                                                              income statement is at the disposal of the General Meeting     accordance with Dutch law, including the Dutch Standards          deficiencies to report as a result of our examination whether
                                                              of Shareholders. It will be proposed to the Meeting to         on Auditing. This requires that we comply with ethical            the Board of Directors’ report, to the extent we can assess,
                                                              add EUR 97 million of the total result of EUR 149 million      requirements and plan and perform the audit to obtain             has been prepared in accordance with part 9 of Book 2 of
                                                              to the general reserves and distribute the remaining           reasonable assurance about whether the financial state-           this Code, and if the information as required under Section
                                                              EUR 52 million as dividend. In 2010, EUR 196 million was       ments are free from material misstatement.                        2:392 sub 1 at b - h has been annexed. Further, we report
                                                              distributed in dividend.                                                                                                         that the Board of Directors’ report, to the extent we can
                                                                                                                             An audit involves performing procedures to obtain audit           assess, is consistent with the financial statements as required
                                                              Independent auditor’s report                                   evidence about the amounts and disclosures in the financial       by Section 2:391 sub 4 of the Netherlands Civil Code.
                                                                                                                             statements. The procedures selected depend on the auditor’s
                                                              To: Annual General Meeting of Shareholders of                  judgment, including the assessment of the risks of material       Utrecht, 15 February 2011
                                                              NV Nederlandse Spoorwegen                                      misstatement of the financial statements, whether due to
                                                                                                                             fraud or error. In making those risk assessments, the auditor     KPMG ACCOUNTANTS N.V.
                                                              Report on the financial statements                             considers internal control relevant to the entity’s preparation   A. Zoetbrood RA
                                                              We have audited the 2010 financial statements of               and fair presentation of the financial statements in order
                                                              NV Nederlandse Spoorwegen, Utrecht, as set out on pages        to design audit procedures that are appropriate in the
                                                              80 to 141. The financial statements include the consolidated   circumstances, but not for the purpose of expressing an
                                                              financial statements and the company financial statements.     opinion on the effectiveness of the entity’s internal control.
                                                              The consolidated financial statements comprise the             An audit also includes evaluating the appropriateness of
                                                              consolidated balance sheet as at 31 December 2010, the         accounting policies used and the reasonableness of
                                                              consolidated income statement, consolidated statement          accounting estimates made by management, as well
                                                              of total result, the consolidated cash flow statement and      as evaluating the overall presentation of the financial
                                                              the consolidated statement of changes in equity for the        statements.
                                                              year then ended, and the notes, comprising a summary           We believe that the audit evidence we have obtained
                                                              of significant accounting policies and other explanatory       is sufficient and appropriate to provide a basis for our
                                                              information. The company financial statements comprise         audit opinion.
                                                              the separate balance sheet as at 31 December 2010,
                                                              the separate income statement for the year then ended          Opinion with respect to the consolidated financial statements
                                                              and the notes.                                                 In our opinion, the consolidated financial statements
                                                                                                                             give a true and fair view of the financial position of
                                                              Management’s responsibility                                    NV Nederlandse Spoorwegen as at 31 December 2010, and
                                                              Management is responsible for the preparation and fair         of its result and its cash flow for the year then ended in
                                                              presentation of the financial statements in accordance with    accordance with International Financial Reporting Standards
                                                              International Financial Reporting Standards as adopted by      as adopted by the European Union and with Part 9 of
                                                              the European Union and with Part 9 of Book 2 of the            Book 2 of the Netherlands Civil Code.
                                                              Netherlands Civil Code, and for the preparation of the Board
                                                              of Directors’ report in accordance with Part 9 of Book 2 of    Opinion with respect to the company financial statements
                                                              the Netherlands Civil Code. Furthermore, management is         In our opinion, the separate financial statements give a true
                                                              responsible for such internal control as it determines is      and fair view of the financial position of NV Nederlandse
                                                              necessary to enable the preparation of the financial           Spoorwegen as at 31 December 2010, and of its result for the
                                                              statements that are free from material misstatement,           year then ended in accordance with Part 9 of Book 2 of the
                                                              whether due to fraud or error.                                 Netherlands Civil Code.
144   NS Annual Report 2010                                                                                                                                                                                                                                                                                                 145




      Segmentation breakdown                                                                                                                                                                 Five years NS
      The breakdown below into business segments is not                                        detailed breakdown of the passenger transport segment.                                        Balance sheet
      intended as a segmentation summary as referred to under                                                                                                                                In millions of euros                                                            2010      2009      2008      2007      2006
      IFRS 8. In April 2005, the ministry of Transport and Water                               Non-main railway line include eliminations of intercompany
      Management granted the transport concession for the main                                 deliveries between business units belonging to Main rail                                      Assets
      railway network to NS. In this context, the main information                             network and business units not belonging to Main rail                                         Non-current assets
      concerning the main railway network is provided in a more                                network.                                                                                      Property, plant and equipment                                                 3,272     3,150     2,844     2,710     2,468
                                                                                                                                                                                             Investment property                                                            309       317       319       307       305
                                                                                                                                                                                             Intangible assets                                                               64       157       149       115        96
      Segmentation breakdown                                                                                                                                                                 Investments in equity accounted investees                                       14        40        33        27        24
                                                                                 Hub development,                                                                                            Other financial assets, including investments                                  146       305       274       263       254
                                                                                  development and            Rail infrastructure                                                             Deferred tax assets                                                            407       438       455       524       654
                                                       Passenger services                     operation       & construction *)                   Other                 Total      Total

      In millions of euros                               2010           2009      2010            2009       2010         2009             2010           2009           2010      2009
                                                                                                                                                                                             Current assets
                                                                                                                                                                                             Inventories                                                                     95       132       133       133       127
      Revenue                                          2,880        2,699        686              613          -              -            -46            -41          3,520     3,271
                                                                                                                                                                                             Other investments                                                              209       150      1,454     1,815     1,882
      Operating expenses                               2,751        2,639        588              562          -              -            -53            -80          3,286     3,121
                                                                                                                                                                                             Trade and other receivables                                                    892      1,245     1,377     1,243      823
      Result from operating activities                   129              60       98              51          -              -             7              39           234        150
                                                                                                                                                                                             Corporate tax receivable                                                          -       34       154       116          -
      Result from investments in equity
                                                                                                                                                                                             Cash and cash equivalents                                                      386       546       571       291       481
      accounted investees                                   1               -        -               -         -              -              -               -            1              -
      Profit for the period                               49            -59        61              24          -              -            39             151           149        116       Total assets                                                                 5,794     6,514     7,763     7,544     7,114
      Total assets                                     4,512        4,287        818              833          -          941             464             453          5,794     6,514
      Intangible assets                                   59              62        5               5          -           91                -              -1           64        157
      Current liabilities excluding loans              1,632        1,449        216              236          -          510             -215         -260            1,633     1,935       Equity and liabilities
      Depreciation, amortisation                                                                                                                                                             Equity                                                                        2,831     2,871     4,249     4,109     3,843
      and impairment                                     298            265        32              37          -             -              7               2           337        304       Deferred credits                                                               213       229       238       251       267

      Investments in equity accounted                                                                                                                                                        Non-current loans and borrowings                                               315       785       839       794       786
      investees                                             6             82         -               -         -           25               8             -67            14         40       Non-current employee benefits                                                   34        34        34        40        48
      Additions                                          578            551        27              77         9            22              -18             16           596        666       Non-current provisions                                                         175       233       162       147       192
      Number of employees (FTEs) at year-end          20,246      20,518        2,922           2,951          -        6,125             462             474         23,630    30,068       Accruals                                                                       103        29         8        22         6
                                                                                                                                                                                             Deferred tax liabilities                                                       103        88        66        51        67
                                                                                                                                                                                             Bank overdrafts                                                                   -       18        42        46        15
      Passenger services                                                                                                                                                                     Current part of loans and borrowings                                           387       292       244       232       248
                                                                                                             2010                                                                  2009

                                                                                  Non-main                                                                Non-main                           Corporate tax payable                                                            7          -        1        84        46
      In millions of euros                            Main rail network         rail network                 Total   Main rail network               rail network                  Total     Trade and other payables                                                       794      1,210     1,226     1,101     1,097
                                                                                                                                                                                             Prepaid income                                                                 751       707       639       616       436
      Revenue                                                   1,851              1,029                   2,880                  1,822                      877                 2,699       Current part of provisions                                                      81        18        15        51        63
      Operating expenses                                        1,611              1,140                   2,751                  1,649                      990                 2,639
                                                                                                                                                                                             Total equity and liabilities                                                 5,794     6,514     7,763     7,544     7,114
      Result from operating activities                           240                 -111                   129                    173                      -113                   60
                                                                                                                                                                                             With effect from 2007, income tax to be collected is presented separately.
      Result from investments in equity
      accounted investees                                           -                    1                    1                       -                           -                  -
      Profit for the period                                      183                 -134                    49                    130                      -189                   -59
      Total assets                                              3,227              1,285                   4,512                  3,218                    1,069                 4,287
      Intangible assets                                             -                    59                  59                       -                          62                62
      Current liabilities excluding loans                       1,060                572                   1,632                   995                       454                 1,449

      Depreciation, amortisation
      and impairment                                             218                     80                 298                    207                           58               265

      Investments in equity accounted
      investees                                                     -                     6                    6                      -                          82                82

      Additions                                                  489                     89                 578                    448                       103                  551
      Number of employees (FTEs) at year-end                    9,619             10,627                  20,246              10,017                      10,501                20,518


      * The comparative figures have been adjusted due to the sale of Strukton Groep NV.
146   NS Annual Report 2010 / Five years NS                                                                                                                                                                                                                                147




      Income statement                                                                                                                                Staffing
      In millions of euros                                                                      2010      2009*)        2008        2007       2006                                                                         2010      2009      2008      2007      2006



      Continuing operations                                                                                                                           Average strength (FTEs)                                            22,979    29,505    26,270    25,502    24,334
      Revenue                                                                                3,520       3,271       4,253       4,040      3,846     Average number of employees                                        26,099    32,705    29,033    27,978    26,819
      Total operating expenses                                                               3,286       3,121       3,925       3,685      3,536     FTEs as at 31 December                                             23,630    30,068    26,581    26,004    24,961
      Result from operating activities                                                         234         150         328         355       310      Number of employees as at 31 December                              26,868    33,582    29,384    28,676    27,382


      Net finance income                                                                       -22           4          67         -56         43
      Share in result of investments in equity accounted investees                               1           -           4           5          1     Trains as at 31 December1)
      Profit before income tax                                                                 213         154         399         416       358                                                                            2010      2009      2008      2007      2006

      Income tax expense                                                                       -53         -37        -118         -79       -157
                                                                                                                                                      Electric multiple units (EMUs)                                      2,307     1,983     2,003     1,969     1,881
      Profit for the period from continuing operations                                        160         117         281         337        197
                                                                                                                                                      Diesel multiple units (DMUs)                                          50        50        76        84        78
      *) The comparative figures have been adjusted due to the sale of Strukton Groep NV                                                              Loco-hauled coaches                                                  473       589       849       833       870
                                                                                                                                                      Passenger rolling stock, total vehicles                             2,830     2,622     2,928     2,886     2,829
      Passenger services1)                                                                                                                            comprising:
                                                                                                                                                      • double-decker coaches                                             1,168     1,242     1,146     1,050     1,050
      In millions of euros                                                                     2010        2009        2008        2007       2006
                                                                                                                                                      Locomotives for passenger travel                                      60        84       108       122       122

      Total ticket revenues                                                                  1,896       1,839       1,790       1,740      1,697
      comprising:
                                                                                                                                                      Seating
      • domestic ticket revenues                                                             1,799       1,758       1,706       1,663      1,622
                                                                                                                                                                                                                            2010      2009      2008      2007      2006
      • international ticket revenues                                                          97          81          84          77         75


      Passenger kilometres in millions                                                      16,359      16,315      16,180      15,546     15,414     Gross number of seats as at 31 December, in thousands                264       251       258       256       250
                                                                                                                                                      Average number of seats available to passengers, in thousands 2)     201       217       223       214       205
      comprising:
      • standard tickets                                                                    12,252      12,290      12,277      11,644     11,498     1) Including material rented from third parties.
      • major contracts (student travel passes)                                              4,107       4,025       3,903       3,902      3,916     2) This only concerns stock included in the timetable.

      Seat kilometres in millions                                                           57,117      59,636      59,033      54,772     50,167


      Productivity:

      • passengers per train                                                                  138         139         140         135        135
      • seats per train                                                                       487         515         482         487        441




      Hub development and operations
      In millions of euros                                                                     2010        2009        2008        2007       2006



      Retail and catering turnover in the Netherlands                                         342         330         321         291        267
      Number of stations                                                                      399         398         395         387        377
      Property under development (m2 gross floor area)                                     219,200     259,000     583,714     418,000     24,181
148   NS Annual Report 2010                                                                                                                                                                                                          149




                              GRI Indicators
                              The Global Reporting Initiative (GRI) has resulted in a            the reporting criteria applied by NS;                             reporting the data and associated explanatory notes
                              generally accepted system for reporting on the economic,          • providing   a limited degree of assurance that the other         relating to these indicators.
                              environmental and social aspects of the performance of             information in the Account is presented correctly in all         We carried out the following work for the remaining
                              companies. The guidelines consist of principles for deter-         aspects of material significance in accordance with the          information in the Account:
                              mining the content of the report and for guaranteeing              reporting criteria applied by NS.                                • an   assessment of the results of the stakeholder dialogue;
                              the quality of the information in the report. The system has                                                                        • an   assessment of the systems and processes for gathering
                              been designed for use by any organisation, irrespective           The activities carried out for the purpose of obtaining            information, internal checks and the processing of the
                              of its size, sector or location. Reporting according to the       a limited degree of assurance focused on establishing              other information;
                              GRI standards makes it possible to compare how sustainable        the plausibility of information and went into less detail         • an   assessment of internal and external documentation to
                              the activities of different companies are and assess them,        than the activities carried out for the purpose of obtaining       determine whether there is sufficient supporting evidence
                              as well as looking at the performance of the company in the       a reasonable degree of assurance. We do not provide                for the information in the Account;
                              longer term. GRI provides NS with a universal guide for           any assurance regarding the viability of the objectives,          • an   assessment of the level of application according to the
                              further intensification of its sustainability policy, as well     expectations and ambitions of NS.                                  GRI G3 Guidelines.
                              as greater transparency.
                                                                                                Reporting criteria                                                Conclusion
                              NS is reporting on the year under review in accordance with       When drawing up the Account, NS applied the Sustainability        We have concluded on the basis of our work that:
                              GRI level B (externally audited).                                 Reporting Guidelines (G3) of the Global Reporting Initiative      • the   CO2 emissions data in the Account for the 2010 financial
                                                                                                (GRI).                                                             year and associated explanatory notes have been presented
                              Table and scope                                                                                                                      correctly in all aspects of material significance in accordance
                              The table on the following page gives the GRI indicators for      Assurance standards                                                with the GRI G3 Guidelines;
                              the activities of the Group as a whole. Its scope is limited to   We carried out our assignment in accordance with the              • we    have not seen any evidence that the other information
                              the NS Group operating companies whose operations are             3410N standard (‘Assurance assignments relating to                 in the Account has been presented incorrectly in any
                              mainly in the Netherlands. Our operating company                  corporate sustainable reporting’) of the Royal Netherlands         aspects of material significance in accordance with the GRI
                              operating outside the Netherlands - Abellio - produces            Institute of Registered Accountants. This standard                 G3 Guidelines.
                              its own annual corporate social responsibility report, which      requires that the members of the assurance team possess
                              also meets the GRI requirements at level B, including an          the specific knowledge, skills and professional expertise         Amstelveen, 15 February 2011
                              external assessment.                                              necessary to understand and evaluate the information
                                                                                                in the Account, and that these members comply with                KPMG Sustainability
                                                                                                the requirements of the Ethical Code for Professional             W.J. Bartels RA
                                                                                                Accountants of the IFAC in order to safeguard
                              Independent Assurance Report                                      their independence.
                              To the readers of the 2010 Annual Report of N.V. Nederlandse
                              Spoorwegen                                                        Activities
                                                                                                We carried out the following work in order to establish the
                              Introduction                                                      accuracy of the CO2 emissions data in the Account for the
                              The Executive Board of N.V. Nederlandse Spoorwegen                2010 financial year and associated explanatory notes:
                              (hereinafter referred to as NS) has asked us to provide           •a   check of the design, the existence and the performance
                              assurance concerning the information about sustainability in       testing of the systems and processes for recording,
                              the 2010 Annual Report. NS describes its efforts and results       collecting and processing information for the data reported
                              in the area of sustainable business practices in the chapter       and associated explanatory notes, including the calculation
                              entitled Sustainable Commitment (hereinafter referred to           and consolidation of the results;
                              as ‘the Account’). The NS Executive Board is responsible for      •a   check of internal and external documentation to
                              drawing up the Account and determining which subjects              determine whether there is sufficient supporting evidence
                              should be reported on. It is our responsibility to provide an      for the information in the Account;
                              assurance report concerning this Account.                         • an   analysis of the data reported and the associated
                              Our activities focused on:                                         explanatory notes;
                              • providing   a reasonable degree of assurance that the data      •a   check of the application of internal principles for infor-
                               on CO2 emissions in the Account for the 2010 financial year       mation provision and internal checks used in drawing up
                               and associated explanatory notes are presented correctly          the reported data and associated explanatory notes;
                               in all aspects of material significance in accordance with       • interviews   held with staff responsible for analysing and
150   NS Annual Report 2010 / GRI indicator                                                                                                                                                                                                                                                                                 151




      GRI indicators
                GRI indicators   Description of GRI indicator                                                                              Location or explanation   GRI indicators   Description of GRI indicator                                                                                Location or explanation


                           1 Strategy and analysis                                                                                                                              4 Governance, commitments and engagement
                          1.1    Statement from the management about the philosophy and strategy for sustainable                                                               4.1    Governance structure of the organisation                                                                             pages 66-78
                                 development                                                                                                    pages 28, 30, 43               4.2    Indicate whether the Chair of the highest governance body is also an executive officer                                    page 67
                          1.2    Description of the key consequences, risks and opportunities                                                                                  4.3    For organisations that have a unitary board structure, state the number
                                 Part 1: Impact of the organisation on sustainable development and effects on                                                                         of independent members                                                                                                         n/a
                                         interested parties                                                                                         pages 43-45                4.4    Mechanisms for shareholders and employees to provide recommendations or direction
                                 Part 2: Impact of sustainability trends, risks and opportunities on the prospects for                                                                to the highest governance body                                                                                            page 66
                                         long-term performance and financial performance                                                            pages 31, 43               4.5    Remunerations policy (including social and environmental performance aspects)                                        pages 67-68
                                                                                                                                                                               4.6    Processes in place for the highest governance body to ensure that conflicts are avoided                                   page 68
                           2 Organisational profile                                                                                                                            4.7    Process for determining the qualifications and expertise of the members of the highest
                          2.1    Name of the organisation                                                                                                  cover                      governance body for guiding the organisation’s strategy on economic, environmental,
                          2.2    Primary brands, products and/or services                                                                           inside cover                      and social topics
                                                                                                                                                                                                                                                                                                                page 68
                          2.3    Operational structure of the organisation                                                                          inside cover               4.8    Internally developed statements of mission or values, codes of conduct, and principles                    pages 30, 39-42, 66-69
                          2.4    Location of organisation’s headquarters                                                                               page 158                4.9    Procedures for the highest governance body for managing economic, environmental
                          2.5    The number of countries in which the organisation operates                                                         inside cover                      and social aspects of performance and risks                                                                          pages 70-73
                          2.6    Nature of ownership and legal form                                                                                      page 66              4.10    Procedures for the highest governance body for evaluating its own performance,
                          2.7    Markets served                                                                                              pages 32-39, 52-65                       particularly regarding economic, environmental and social aspects of performance                                     pages 66-69
                          2.8    Scale of the reporting organisation                                                                                inside cover              4.11    Explanation of the application of the precautionary principle by the reporting organisation                      pages 44, 70-73
                          2.9    Significant changes during the reporting period in size, structure or ownership                                    pages 52-65               4.12    Externally developed principles or other initiatives that the organisation subscribes         Tabaksblat Code Obesity Covenant
                         2.10    Awards received during the period under review                                              page 56, and the magazine Spoor                          to or endorses                                                                                    Sector agreement on mobility,
                                                                                                                             won a Zilveren Veer (‘Silver Quill’)                                                                                                                          logistics and infrastructure:
                                                                                                                                                                                                                                                                                            Sustainability on the Move

                           3 Report parameters                                                                                                                                4.13    Memberships of associations (e.g. for the sector) and/or national/international                       KNV, Railforum, VNO/NCW
                          3.1    Reporting period                                                                              1 January to 31 December 2010                          advocacy organisations                                                                            (Confederation of Netherlands
                                                                                                                                                                                                                                                                                                             Industry)
                          3.2    Date of the most recent previous report                                                                      16 February 2010
                                                                                                                                                                              4.14    List of interested parties that the organisation has engaged with                                                         page 43
                          3.3    Reporting cycle                                                                                                          annual
                                                                                                                                                                              4.15    Basis for the inventory and selection or interested parties                                                               page 43
                          3.4    Contact for questions regarding the report or its contents                                       godelinde.schumacher@ns.nl
                                                                                                                                                         page 43              4.16    Engagement of interested parties                                                                                     pages 43-44
                          3.5    Process for determining the content of the report
                          3.6    Demarcation of the report                                                                                             NS Group               4.17    The main subjects concerning the interested parties and how the organisation has
                                                                                                                                                                                      responded to these, inter alia in its reporting                                                                      pages 43-44
                          3.7    Limitations to the demarcation or scope of the report                                                                        No
                          3.8    Basis for reporting                                                                                             IFRS and GRI-B
                          3.9    Data measurement techniques and bases of calculations
                                                                                                                                                                                      Management
                                                                                                                             IFRS, and (for the CO2 calculation)
                                                                                                                                                      www.ns.nl             DMA       Economic aspects, EC                                                                                   pages 52-65 and financial
                                                                                                                                                                                                                                                                                                           statements
                         3.10    Explanation of the effect of any re-statements of information provided in earlier reports                                    n/a
                                                                                                                                                                            DMA       Environmental aspects, EN                                                                                            pages 45-46
                         3.11    Significant changes during the reporting periods                                                                             No
                                                                                                                                                                            DMA       Labour conditions aspects, LA                                                                                        pages 39-42
                         3.12    Table identifying the GRI indicators included                                                                              here
                                                                                                                                                                            DMA       Human rights aspects, HR                                                                                             pages 50-51
                         3.13    Policy and current practice for external assurance of the report                                       pages 142-143, 148-149
                                                                                                                                                                            DMA       Social aspects, SO                                                                                            pages 30, 43, 48-50
                                                                                                                                                                            DMA       Product responsibility aspects, PR                                                                               pages 35, 48, 49
152   NS Annual Report 2010 / GRI indicator                                                                                                                                                                                                                                                                             153




                GRI indicators   Description of GRI indicator                                                                             Location or explanation   GRI indicators   Description of GRI indicator                                                                             Location or explanation

                                                                                                                                                                             LA3     Remuneration components that are available to full-time staff but not part-time staff                                     none
                                 Performance indicators                                                                                                                      LA4     Percentage of employees covered by a collective labour agreement                                                        99.1%
                                                                                                                                                                             LA5     Minimum periods of notice for operational changes                                               1 month, as per the collective
                                 Economic performance indicators                                                                                                                                                                                                                                labour agreement

                         EC1     Direct economic values                                                                             pages 74-78 and financial                LA7     Rates of injury, occupational diseases, lost days, and absenteeism, and total number of
                                                                                                                                                  statements                         work-related fatalities for each region                                                                           pages 41-42
                         EC2     Financial implications and other risks and opportunities for the organisation’s activities                                                  LA8     Education, training, counselling, prevention, and risk-control programs in place to assist
                                 as a result of climate change                                                                                     pages 45-47                       workforce members, their families, or community members regarding serious diseases                                pages 41-42
                         EC3     Coverage of the obligations relating to the organisation’s plan for set payments             financial statements – see pages               LA9     Health and safety topics covered in formal agreements with trade unions                         please refer to the text of the
                                                                                                                                             119 ff. and 128 ff.                     (additional indicator)                                                                         collective labour agreement on
                                                                                                                                                                                                                                                                                                         www.ns.nl
                         EC4     Significant financial support from governmental authorities                                   no significant financial support
                         EC5     Variation in the relationship between the standard starting salary and the local                                                           LA11     Programmes for competence management and lifelong learning aimed at ensuring
                                 minimum wage at key operating locations                                                                                     0%                      that staff remain usable                                                                                          pages 40-41
                         EC6     Policy, methods and proportion of expenditure concerning locally established suppliers                                                     LA12     Percentage of employees receiving regular performance and career                                please refer to the text of the
                                 at key operating locations                                                                                        pages 50-51                       development reviews                                                                            collective labour agreement on
                                                                                                                                                                                                                                                                                                         www.ns.nl
                         EC7     Procedures for local staff recruitment and proportion of the higher management
                                 originating from the local community at key operating locations                                                        page 41             LA13     Composition of governance bodies and breakdown of employees per category according
                         EC8     Development and impact of investments in infrastructure and services that are provided                                                              to gender, age group, minority group membership, and other indicators of diversity                                     page 41
                                 primarily for general use through obligations of a commercial nature, either in kind or                                                    LA14     Ratio of the basic salaries of men and women                                                                             Equal
                                 for no fee
                                                                                                                                                   not relevant
                         EC9     Insights into and description of significant indirect economic impacts, including their                                                             Social performance indicators: human rights
                                 scale (additional indicator)                                                                                      pages 38, 51              HR1     Percentage and total number of substantial investment agreements in which clauses about
                                                                                                                                                                                     human rights have been included or for which observance of human rights is checked                100% as of November 2010
                                 Environmental performance indicators                                                                                                        HR2     Percentage of important suppliers and contractors who are checked to confirm that
                         EN3     Direct energy consumption by primary energy source                                                                          n/a                     human rights are respected measures are taken                                                     100% as of November 2010
                         EN4     Indirect energy consumption by primary energy source                                                              pages 45-46               HR5     HR5 Activities for which it has been determined that there could be a significant risk to
                         EN5     Energy saved by savings and efficiency improvements                                                               pages 45-46                       the right of freedom of association and collective labour negotiations                                                    none
                         EN6     Energy efficiency initiatives                                                                                     pages 45-46               HR6     Activities for which it has been determined that there could be a significant risk of child
                         EN7     Initiatives for reducing indirect energy consumption                                                              pages 45-46                       labour being involved, plus the measures that have been taken with the aim of
                                                                                                                                                                                     eliminating child labour
                       EN16      Total direct and indirect greenhouse gas emissions (by weight)                                                    pages 45-46                                                                                                                                              page 50
                       EN18      Initiatives to reduce greenhouse gas emissions                                                                    pages 45-46               HR7     Activities for which it has been determined that there could be a significant risk of forced
                       EN22      Total weight of waste products, broken down by type and method of disposal                                             page 47                      or non-voluntary labour being involved, plus the measures that have been taken with the
                                                                                                                                                                                     aim of eliminating forced or non-voluntary labour
                                                                                                                                                                                                                                                                                                            page 50
                                 Social performance indicators: working conditions                                                                                           HR9     Total number of cases of violations of the rights of indigenous populations, plus the
                         LA1     Total workforce, broken down by type of work, labour agreement and region                                              page 40                      measures taken to combat this (additional indicator)                                                              not relevant
                         LA2     Absolute figures and rate of staff turnover broken down by age group, gender and region                                   5.3%
154   NS Annual Report 2010 / GRI indicator                                                                                                                                     155




                GRI indicators   Description of GRI indicator                                                                            Location or explanation



                                 Social performance indicators: society
                         SO1     Nature, scope and effectiveness of all programmes and methods used to determine and
                                 manage the effects of the activities (including establishment, operations and departure)
                                 on communities
                                                                                                                                                       page 30
                         SO2     Percentage and total number of business units analysed for risks associated with
                                 corruption (particularly fraud)                                                                                         100%
                         SO3     Percentage of the staff that has been given training in the organisation’s anti-corruption
                                 policy and procedures (particularly fraud)                                                        100% of the management
                         SO4     Measures that have been taken as a result of corruption (particularly fraud)                         where proven: dismissal
                                                                                                                                      + measures to mitigate




                                                                                                                                                                                Index
                         SO5     Positions adopted with respect to public policy and participation in its development,
                                 as well as lobbying                                                                                          pages 29, 30, 38
                         SO6     Total value of financial contributions and payments in kind to political parties, politicians
                                 and related institutions, broken down by country (additional indicator)                                                   zero
                         SO7     Total number of legal suits relating to anti-competitive behaviour, anti-cartel and
                                 anti-monopoly practices, as well as the outcomes of any such cases                                                        zero


                                 Social performance indicators: product responsibility
                         PR1     Lifecycle stages during which the impacts of products and services on health and safety are
                                 examined with the aim of making improvements, and the percentage of key categories of
                                 products and services that are subject to such procedures
                                                                                                                                                       page 35
                         PR2     Total number of cases of non-compliance with regulation and voluntary codes regarding
                                 the health and safety impacts of products and services throughout the lifespan, broken
                                 down by the type of result (additional indicator)
                                                                                                                                                       page 35
                         PR3     Type of information about products and services that is made mandatory by procedures
                                 and the percentage of key products and services that are subject to such information
                                                                                                                                 General terms and conditions
                                 requirements
                                                                                                                                        of NS (see www.ns.nl)
                         PR5     Customer satisfaction policy, including the results of studies into customer satisfaction
                                 (additional indicator)                                                                                           pages 43-44




                                                                                                                                                                   Index 2010
156   NS Annual Report 2010                                                                                                                                                                                                                                                                                                      157




      Index
      A   Abellio 46, 53, 57, 58, 59, 71, 74, 75, 102, 114, 115, 119, 121, 128,            Credit risk 110, 129, 135, 137, 138                                         G   Gay Pride Canal Parade 49                                                 K   Key projects 29, 72
               129, 138, 139, 148                                                          CultuurSpoor Nl 50                                                              Germany 23, 55, 57, 59, 71, 96, 102, 119, 121, 127, 128, 137                  Kiosk 29, 62, 63
          Absence due to illness 35, 41                                                    Customer service 37, 39, 40, 41, 42, 45, 51, 63                                 Goodwill 87, 90, 91, 104, 105                                                 Klm 101, 120, 141
          Accessibility 50, 120                                                            CyclePoint 58, 59                                                               Gouda by Candlelight 50                                                       Koninklijk Nederlands vervoer 37
          Accidents at work 23, 35, 72                                                     Cyclists’ association 29, 64                                                    Great britain 57, 58, 59, 71                                                  Kruidvat 53, 64
          Principles applied to the financial statements 140                               Czech Republic 57, 58, 59, 71, 96, 119, 121, 127, 128, 137                      Greenwheels 37, 38, 63
          Acquisition 40, 75, 83, 90, 94, 97, 102                                                                                                                          GRI 28, 46, 79, 148, 149, 150, 152, 154
                                                                                                                                                                                                                                                     L   lease contracts 106
          Actuarial 82, 84, 85, 92, 112, 115, 116, 117, 140, 141                       D   Debtors 80, 83, 88, 95, 110, 135, 136, 137, 145                                 Growth in passenger numbers 29, 30, 53, 77
                                                                                                                                                                                                                                                         lessor 106
          Agis 40                                                                          Deferred taxes 94, 109, 127                                                     Growth on the Railway (action plan) 38
                                                                                                                                                                                                                                                         liberalisation 72
          AH to go 63                                                                      Deposits 77, 88, 95, 106, 111, 126, 131, 134, 135
                                                                                                                                                                                                                                                         liberation train 49
          Appointments 23, 24, 66, 68                                                      Depreciation 60, 65, 75, 77, 81, 83, 89, 91, 100, 101, 103, 125, 144        H   Hay method 123                                                                locov 45
          Articles of incorporation 66, 68, 142                                            Deutsche bahn 27, 30, 54                                                        Hedge accounting 88                                                           long-term agreement on energy efficiency 46
          Asset management 60                                                              Dialogue 39, 44, 46, 149                                                        Hedging instruments 94, 112
          Assets 27, 60, 65, 76, 77, 78, 80, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91,       Disabled 49, 50
               92, 93, 94, 95, 99, 100, 101, 104, 106, 107, 108, 109, 111, 112,
                                                                                                                                                                           HEmA 29, 63                                                               M   main Dutch rail network 23, 32, 33, 37, 53, 60, 74
                                                                                           Discontinued business operation 76, 81, 83, 97, 98, 99                          High-Speed line 71                                                            main objectives 42
               115, 116, 117, 125, 126, 129, 131, 133, 134, 135, 136, 137, 138,            Dismantling and removal costs 89                                                High-Speed train 54, 56                                                       maintenance 37, 41, 53, 56, 57, 59, 61, 71, 72, 75, 86, 89, 96, 97,
               139, 140, 144, 145                                                          Diversity 40, 41, 46, 49, 153                                                   Historic purchase price 95                                                         103, 110, 119, 125
          Assigned authorisations 70                                                       Dividends 22, 29, 51, 76, 77, 83, 84, 85, 92, 112, 140, 141, 142                Holland opera 50                                                              market value 95, 134
          Atb 35
                                                                                                                                                                           Hospitality sector 29, 60                                                     merseyrail 58, 114, 115, 119, 121, 139
          A train every ten minutes 38
                                                                                       E   Early retirement payments 92                                                    Hospitality services and retail 29                                            minister 22, 27, 54, 65, 71, 120
          Audit committee 23, 66, 67, 68, 69, 70, 128
                                                                                           Economic recession 53, 63, 73, 74, 101                                          HRm policy 40                                                                 ministry 24, 28, 32, 37, 38, 45, 46, 48, 52, 54, 62, 65, 66, 120, 144
          Auditor 23, 24, 67, 68, 69, 76, 125, 142, 143
                                                                                           Efficiency 28, 29, 31, 40, 46, 47, 48, 49, 51, 56, 60, 64, 152                  HSA 22, 23, 27, 29, 54, 56, 71, 76, 77, 101, 118, 120, 139, 141               mission 30, 41, 44, 55, 67, 151
          Auditors’ report 142
                                                                                           Efqm 57                                                                         HSl South 27, 36, 48, 53, 54, 71                                              mobility 30, 31, 37, 43, 44, 46, 47, 61, 64, 65, 151
          Avéro 40
                                                                                           Electricity consumption 46                                                      Hub development and operation 60, 65, 75, 122, 137                            multimodal 27, 30, 58, 122
                                                                                           Employee involvement survey 40                                                                                                                                municipalities 29, 61
      B   betapartners 28                                                                  Employee participation 151
          bicycle 29, 30, 37, 38, 58, 59, 63, 64, 65
                                                                                                                                                                       I   ICC 51
                                                                                           Employers 31, 37, 40, 51
                                                                                                                                                                           ICE 33, 37, 54, 55, 64, 71, 101
                                                                                                                                                                                                                                                     N   National Coordinator for Counter-terrorism 72
          blokker 53, 64                                                                   Employment contracts 68, 123                                                                                                                                  Nedtrain 36, 41, 46, 47, 53, 56, 57, 64, 75, 77, 138
                                                                                                                                                                           IfRS 86, 90, 95, 115, 140, 144, 150
          broodzaak 63                                                                     Energy and the climate 46                                                                                                                                     Network Rail 59
                                                                                                                                                                           Ijmond Regional Environmental office 62
          bus 27, 29, 30, 37, 40, 53, 57, 58, 59, 61, 63, 74, 102, 121, 139                Environment 23, 28, 29, 31, 32, 37, 41, 43, 45, 47, 48, 49, 56, 62,                                                                                           New timetable 141
                                                                                                                                                                           Ikchip.Nl 39
          business segments 95, 96, 144                                                          65, 72, 122                                                                                                                                             NoC*NSf 49
                                                                                                                                                                           Ilo 51
                                                                                           Environmental policy 93                                                                                                                                       Noise 46, 47, 48, 51, 52, 56, 57
                                                                                                                                                                           Impairment 60, 65, 77, 81, 83, 86, 87, 88, 89, 90, 91, 93, 100,
      C   Cash 52, 64, 76, 77, 80, 82, 83, 84, 85, 87, 88, 90, 91, 92, 95, 96, 99,         Equity 77, 78, 80, 81, 82, 84, 85, 87, 88, 91, 92, 94, 98, 105, 112, 116,                                                                                     Non-Current liabilities 80, 83, 86, 99, 107, 108, 109, 114, 115, 139
                                                                                                                                                                                 101, 102, 103, 104, 105, 110, 118, 125, 135, 136, 144
                111, 123, 126, 128, 129, 134, 135, 137, 138, 141, 142, 143, 145                  120, 126, 127, 128, 130, 133, 140, 141, 142, 144, 145, 146                                                                                              Northern Rail 58, 59, 114, 115, 119, 121, 139
                                                                                                                                                                           Infrastructure levy 53, 75, 77
          Cash flow 77, 82, 83, 84, 85, 87, 88, 90, 91, 96, 99, 126, 134, 137,             Equity method 87, 140                                                                                                                                         NS Academy 40, 55
                                                                                                                                                                           Insurance Nv 128, 138
                141, 142, 143                                                              Erasmus Universiteit 28                                                                                                                                       NS business Card 37, 38, 53, 54, 64, 65
                                                                                                                                                                           Intangible fixed assets 77, 80, 89, 90, 91, 95, 104, 107, 108, 109,
          Cash flow statement 83, 96, 142                                                  Essent 119, 129                                                                                                                                               NS Executive board 24, 42, 45, 51, 148
                                                                                                                                                                                 125, 144, 145
          Cash-generating unit 90, 91                                                      Eurofima AG 119                                                                                                                                               NS fiets 37, 38, 60, 64, 139
                                                                                                                                                                           Intercity 28, 34, 36, 38, 77
          Central government 38                                                            European Commission 72                                                                                                                                        NS financial Services (Holdings) ltd 138
                                                                                                                                                                           Interest expenses 116
          Central Works Council 22, 42, 68                                                 Exchange rate differences 87, 100, 112, 126                                                                                                                   NS Hispeed 36, 47, 53, 54, 55, 56, 71, 74
                                                                                                                                                                           Interest income 76, 93, 94, 126, 133
          Clean trains and stations 36, 48                                                 Exchange-rate risk 129, 130, 138                                                                                                                              NS Insurance 128, 138
                                                                                                                                                                           Interest-rate risk 88, 106, 111, 114, 129, 130, 134
          CliniClowns 50                                                                   EYE/film festival 49                                                                                                                                          NS Internationaal 138
                                                                                                                                                                           Interest rate swaps 114, 130, 132, 133, 134, 137, 138
          Co2 46, 47, 49, 59, 61, 129, 148, 149, 150                                                                                                                                                                                                     NS opleidingen 41, 65, 138
                                                                                                                                                                           Internal auditors 67
          Coach workshop 50                                                            F   fair share scheme 49
                                                                                                                                                                           Inventories 75, 77, 78, 80, 81, 83, 86, 90, 91, 107, 108, 109, 110,
                                                                                                                                                                                                                                                         NS Poort 29, 37, 39, 46, 50, 56, 60, 61, 62, 64, 65, 73, 75, 77
          Collective labour agreement 27, 40, 75, 117, 153                                 financial assets 80, 82, 83, 84, 85, 88, 91, 94, 95, 106, 107, 109, 111,                                                                                      NS Reizigers 36, 41, 47, 53, 60, 64, 75, 102, 138
                                                                                                                                                                                 125, 145
          Commercial operation 27, 29, 54, 60, 62                                                126, 131, 133, 134, 135, 136, 140, 145                                                                                                                  NS Spooraansluitingen 138
                                                                                                                                                                           Investments 23, 29, 39, 52, 55, 56, 59, 60, 65, 70, 71, 72, 77, 80, 83,
          Compensation for delays 53                                                       financial instruments 73, 88, 128, 129, 133                                                                                                                   NS vastgoed 138
                                                                                                                                                                                 87, 88, 90, 95, 101, 105, 106, 112, 116, 126, 129, 131, 135, 144,
          Competition 30, 43, 57, 64, 72                                                   financial lease contracts 106                                                                                                                                 NS Zonetaxi 37, 63
                                                                                                                                                                                 145, 146, 152
          Concessionary grants 106                                                         financing risks 73
                                                                                                                                                                           IPo 45
          Concessions 30, 40, 53, 54, 58, 72, 74, 92, 93, 101, 102, 119,                   flevolijn 35, 61
                                                                                                                                                                           It and communications 40, 42, 75
                120, 121, 128, 141                                                         foreign exchange differences 87
                                                                                                                                                                           ItS lab 28
          Conflicts of interest 68                                                         fyra 48, 54, 56, 57, 63, 71, 74
                                                                                                                                                                           Ivonne van de ven foundation 50
          Consolidated balance sheet 80, 100, 142
          Consolidated financial statements 79, 81, 82, 83, 84, 86, 87, 88, 90,
                92, 94, 95, 96, 98, 100, 102, 104, 106, 108, 110, 112, 114, 116,                                                                                       J   joint ventures 53, 87, 90, 105, 139
                118, 120, 122, 124, 126, 128, 130, 132, 134, 136, 138, 139, 140,                                                                                           julia’s 29, 63
                141, 142, 143
          Consolidation 87, 149
          Consumer organisations 39, 45
          Continuity 22, 23, 27, 41, 46, 47, 52, 54, 71, 76, 94, 120
          Corporate governance 24, 45, 51, 66, 67, 68, 79, 123
          Corporate income tax 76
          Corporate plan 23
          Creditors 80, 88, 110, 118, 137, 138, 145
158   NS Annual Report 2010                                                                                                                                                                                                                            159




      O   obesity Covenant 151                                                              Remuneration 23, 24, 66, 67, 68, 122, 123, 124, 153                          T   tabaksblat 151
          oCCR 27, 33                                                                       Remuneration policy 24, 67, 68, 122, 123                                         talent Clinic 42
          oECD 51                                                                           Reporting structure 70, 95                                                       talent to the top Charter 41
          off-balance sheet liabilities 141                                                 Returns 27, 93, 127                                                              tangible fixed assets 77, 80, 83, 89, 93, 95, 100, 101, 107,
          operating lease 119                                                               Risk factors 71                                                                  108, 109, 118, 125, 145
          operational Excellence 56, 64                                                     Risk management 46, 67, 68, 70, 71, 72, 73, 101, 128, 129                        tax 23, 31, 52, 76, 77, 80, 81, 82, 83, 84, 85, 90, 91, 92, 93, 94, 98,
          other operating expenses 76, 77, 81, 125                                          Rituals 29, 63                                                                         101, 103, 107, 108, 109, 112, 119, 125, 126, 127, 133, 134, 140,
          ov-fiets 37, 49, 60, 63, 64, 65                                                   RoC 56, 62                                                                             145, 146
          ov-fiets@home 65                                                                  Role in society 66                                                               taxi 37, 63
                                                                                            Rolling stock 28, 32, 41, 47, 48, 51, 53, 56, 57, 60, 71, 75, 77, 96, 100,       terrorist threat 72
                                                                                                  101, 119, 120, 138, 147                                                    thalys 27, 54, 56, 71, 139
      P   Parking 29, 37, 38, 60, 63, 65
                                                                                            Rolling stock lifecycle logistics 57                                             tickets 38, 39, 53, 55, 72, 146
          Participating interests 86, 109, 115, 119, 138, 140, 141
                                                                                            Rolling stock maintenance 53, 56, 75                                             traffic jams 30
          Passenger terminal Amsterdam 60, 65
                                                                                            Rover 72                                                                         train timetable book 28, 34, 44
          Passenger transport 26, 27, 31, 46, 53, 54, 60, 74, 96, 101, 120, 121,
                                                                                            Royal waiting-room 50                                                            translink Systems 28, 72
               144
                                                                                            Rules applying to company structure 66                                           transport and Water management Inspectorate 35
          Passenger transport Act 54
                                                                                            Rules of Procedure 51, 66, 67, 68, 70, 72                                        transport capacity 36
          Pension 75, 86, 92, 112, 114, 115, 116, 117, 118, 122, 123, 124
                                                                                            Rules of Procedure for the Executive board 51, 67, 70                            transport for london 59
          People, planet and profit 44
                                                                                            Running on time 32, 33, 58, 120                                                  transport plan 32, 34, 37, 45, 53, 120, 123
          Personal safety 23, 34, 41, 42, 61
                                                                                                                                                                             treasury policy 129
          Privacy 46, 50, 51
          Private loans 114, 132, 137, 138, 139                                         S   Safety 23, 27, 31, 34, 35, 41, 42, 50, 51, 56, 57, 61, 72, 119, 120, 123,        try out festival 29
          PRobo 59, 60, 119, 121, 139                                                             153, 154
          Profit appropriation 24, 76, 112, 142                                             Scandinavia 58                                                               U   Unox 29, 63
          Property development 45, 50, 60, 74                                               Schiphol 25, 26, 33, 38, 40, 54, 55, 73                                          Up-to-date journey information 28, 39
          ProRail 22, 26, 27, 29, 33, 35, 36, 37, 38, 45, 47, 50, 53, 61, 62, 64, 72,       Scooter 63, 64                                                                   Usage fee 81, 120, 125, 141
               73                                                                           Seating capacity 146, 147                                                        Utrechts Archief 50
          Providing service 33                                                              Sector agreement 46, 151
          Provinces 37, 53, 54                                                              Security Centre 35                                                           V   veolia 27, 30, 72
          Provisions 27, 60, 68, 76, 80, 83, 86, 92, 93, 94, 106, 107, 108, 109,            Security teams 34, 35                                                            vision 30, 43, 52, 67
               117, 118, 125, 131, 145                                                      Self-service on-street bicycle storage 64
                                                                                            Serco 58, 121, 128
          Public-private partnership 93, 106                                                                                                                             W   Waste 36, 37, 46, 48, 49, 57, 61, 152
          Public transport 23, 24, 27, 28, 29, 30, 32, 35, 36, 37, 38, 39, 41, 42,          Servex 63, 114, 115, 139
                                                                                                                                                                             Water consumption 46, 49, 57, 59
               44, 45, 51, 54, 57, 58, 60, 63, 64, 72, 74, 76, 118                          Shakies 63, 64
                                                                                                                                                                             Waterkant 139
          Public transport journey information 37                                           Share capital 80, 112, 119, 140, 141
                                                                                                                                                                             Whistle-blower regulation 66, 70
          Public transport smart card 23, 27, 28, 32, 35, 37, 38, 39, 42, 45, 51,           Shareholder 22, 23, 24, 45, 52, 66, 67, 77, 98, 112, 123, 140, 141
                                                                                                                                                                             Winter 22, 26, 28, 32, 33, 38, 42, 45, 49, 54, 56, 63, 64
               54, 63, 64, 72, 76                                                           Shops 29, 39, 48, 60, 61, 62, 63, 64
                                                                                                                                                                             Workplace 56, 59
          Public transport smart card (code of conduct) 51                                  Sissy-boy Homeland 63
          Punctuality 32, 33, 38, 54, 55, 56, 58, 59, 120                                   SNCf 27
                                                                                            Social responsibility 42, 43, 46, 51, 148
                                                                                                                                                                         Z   ZAPP City 50
          Purchasing process 51
                                                                                            Soil remediation 50, 117
                                                                                            Spoorbouwmeester 50
      Q   qbuzz 29, 37, 53, 63, 74, 119, 121, 139                                           Sprinter train 36, 55
          q-Park 65                                                                         Starbucks 29, 63
                                                                                            Station area 61, 62, 64
      R   Rabobank 25                                                                       Stationsdrogisterijen 139
          Rail infrastructure 27, 41, 65, 66, 75, 76, 86, 96, 97, 105, 125, 137, 144        Stationsfoodstore 139
          Rail infrastructure & construction 65, 66, 76, 105, 137                           Stichting bodemsanering NS (NS soil remediation foundation) 50
          Railway Action Plan 38                                                            Stichting Nederland Schoon (Clean Netherlands foundation) 48
          Railway Pensions fund 113, 115, 117, 123                                          Stichting Slachtofferhulp (victim support foundation) 50
          Railway Police 35                                                                 Strategy 22, 27, 30, 31, 40, 43, 44, 45, 51, 59, 67, 129, 150, 151
          Railway safety 27, 35                                                             Strukton 22, 23, 27, 28, 29, 40, 42, 65, 73, 75, 76, 77, 78, 81, 86, 96,
          Randstad 25, 37, 48                                                                     97, 98, 99, 106, 144, 146
          REAAl verzekeringen 62                                                            Suicides 50
          Regional authorities 38, 53, 54, 121                                              Supervisory board 22, 23, 24, 25, 43, 45, 66, 67, 68, 69, 70, 86, 122,
          Regional concessions 54, 72                                                             123, 124, 141
          Regulatory authorities 72                                                         Syntus 40, 53, 54, 119, 121, 139
160   NS Annual Report 2010




                       Credits

                       NS Groep NV.
                       Registered office in Utrecht.
                       Trade register entry no. 30124358



                       Head Office
                       Laan van Puntenburg 100
                       3511 ER UTRECHT



                       Postal address:
                       Postbus 2025
                       3500 HA UTRECHT



                       Website
                       www.ns.nl

                       This annual report is
                       available in digital form
                       via www.ns.nl/jaarverslag



                       Photography
                       Foto Formation



                       Concept and realisation
                       VBAT, Amsterdam



                       This report complies with
                       the requirements of GRI B+




                       This Annual Report is published in both Dutch and English.
                       In the event of any discrepancies between the Dutch and English version, the Dutch version will prevail.