VATTENFALL POWER CONSULTANT

– BUSINESS DEVELOPMENT –

TARGETING EXTERNAL GROWTH

Michael Lindskog & Matiss Paegle

March 2007

Today’s Agenda

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Project Overview

Challenges

Lessons Learned

Questions & Answers

Description of key details concerning our project.

Discussion regarding the challenges we faced during the process.

What did we learn from completing the project?What can we use in the future?

An opportunity for open discussion.

Today’s Agenda

Michael Lindskog & Matiss Paegle-3-

Project Overview

Challenges

Lessons Learned

Questions & Answers

Description of key details concerning our project.

Discussion regarding the challenges we faced during the process.

What did we learn from completing the project?What can we use in the future?

An opportunity for open discussion.

Michael Lindskog & Matiss Paegle-4-

Introducing our project.

Vattenfall Power ConsultantBusiness Development Division

PROJECT GOAL: To develop strategies for targeting external growth.

2006 2010

30%9%

90% Growth

External Revenues

External Revenues

Vattenfall Group Revenues

Vattenfall Group Revenues

VPC BD GOAL: Ambitious growth and diversified customer base

Our plan of attack was the following.

PROCESS

Internal Asssessment

Market Asssessment

Go-To-Market Strategy

Implication Assessment

Dec06-Jan07 Feb-Mar07 Mar07

METHODOLOGY

Semi-structured Interviews:15 within VPC10 within different customer segments

SYNTHESIS

Theoretical tools and managerial experience utilized to reach organizational conclusions and recommendations.

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VPC is comprised of these divisions.

VPCVPC

NuclearNuclear Hydro-Hydro-powerpower

Wind-Wind-powerpower

PowerPowerNetworksNetworks ThermalThermal

Infra & Infra & civil engi-civil engi-neeringneering

BusinessBusinessDevelop-Develop-

mentment

Inter-Inter-nationalnational

BusinessBusinessConsultingConsulting

AssetAssetManage-Manage-

mentment

ValuationValuation&&

StrategyStrategy

Sustain-Sustain-ableable

StrategiesStrategies

2006 in figures

VPC VPC BD

Employees 550 90

Turnover (MSEK) 630 91

External Revenue 36% 9%

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We recommended that BD shifts their current value proposition focus.

General Management Issues:Business StrategyM&A, PMI’sOrganization & RestructuringStrategic Investments

Engineering / Technical Issues

Draw upon

Complement

Functional Issues:Finance & Administration Human ResourcesInformation TechnologyCommunication & PR

Operational Issues:Production & ProcessesRisks, Safety & SecurityInvestments & Maintenance Procurement Vattenfall based

operational/technical expertise – core competitive advantage

This is what VPC BD had in mind as core focus area

BD’s focus to be on: Few, well selected operational & functional area products

High level strategy project experience – potentially add-on / follow-up offering

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The following customer segments are the recommended targets.

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Removed for confidentiality aspects

Today’s Agenda

Michael Lindskog & Matiss Paegle-9-

Project Overview

Challenges

Lessons Learned

Questions & Answers

Description of key details concerning our project.

Discussion regarding the challenges we faced during the process.

What did we learn from completing the project?What can we use in the future?

An opportunity for open discussion.

We faced these challenges during the process.

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Vs.

1. Managing the scope and focus of the project.

We faced these challenges during the process.

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2. Avoiding to let personal biases influence the analytical process.

We faced these challenges during the process.

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Vs.

3. “Consulting consultants”.

Today’s Agenda

Michael Lindskog & Matiss Paegle-13-

Project Overview

Challenges

Lessons Learned

Questions & Answers

Description of key details concerning our project.

Discussion regarding the challenges we faced during the process.

What did we learn from completing the project?What can we use in the future?

An opportunity for open discussion.

What were our key learnings?

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1. Hands on experience working as an external change agent.

What were our key learnings?

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2. Learning how to utilize qualitative data to draw inferences and conclusions.

What were our key learnings?

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3. The importance of establishing internal support when driving a change process.

Today’s Agenda

Michael Lindskog & Matiss Paegle-17-

Project Overview

Challenges

Lessons Learned

Questions & Answers

Description of key details concerning our project.

Discussion regarding the challenges we faced during the process.

What did we learn from completing the project?What can we use in the future?

An opportunity for open discussion.

Floor open for questions…

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