BU Renewables Strategic Priorities Gunnar Groebler 19 March, 2014 Confidentiality class: Medium (C2)

2 ǀ Management Conference BU Renewables ǀ Strategic Direction ǀ Tuomo Hatakka ǀ 19 March, 2014 Strategic Priorities – Region Continental/UK Operational consolidation Strong focus on OPEX and CAPEX Sale of non-core activities Turn around/sale/closure of non profitable activities Consolidation: strong focus on EBIT and cash flow Profitable growth in downstream Become a trusted partner of our customers and other stakeholders Profitable growth in renewables Take advantage of growth opportunities of the “New Normal” Raise flexibility of conventional capacities Manage conventional capacities for commercial availability and cash-flow Position conventional capacities as a trusted partner of the energy transformation Lobby for concrete (commercially driven) changes within the “Energiewende”, the Dutch Energy Deal and the UK Market Reform Reshaping of the regulatory regime Motivation of our employees Rightsizing of the organization Increased flexibility requirements on our employees Knowledge transfer Master HR Challenges

Confidentiality class: Medium (C2) 3 ǀ Management Conference BU Renewables ǀ Strategic Direction ǀ Tuomo Hatakka ǀ 19 March 2014 Strategic Priorities – BU Renewables Project realization in time and budget LEC reduction Capital Recycling & project financing Consolidation: strong focus on EBIT and cash flow Formulate growth strategy for BU Renewables Review future business model Sandbank Growth options beyond wind Take advantage of growth opportunities of the “New Normal” Position conventional capacities as a trusted partner of the energy transformation Lobbying activities Link regulatory changes to pipeline development Reshaping of the regulatory regime Implement new organisation HSS/HR operating model & mgmt system Succession & competence supply Planning & resource allocation Develop Leaders & Culture Master HR Challenges

Confidentiality class: Medium (C2) 4 | BU Renewables | Management Kick-off 2014 | Strategic Priorities | Gunnar Groebler | 19 March, 2014 The New Normal can already be seen in the renewable growth target and the EBITDA contribution of Renewables in Cont/UK Renewable Growth targets Vattenfall aims to grow its renewables capacity at a rate faster than the EU-10 (BE, DE, DK, F, FI, GB, NL, NO, PL, SWE) renewables market growth Percentage of EBITDA contribution of Renewables in Conti/UK % of EBITDA Deliver projects on time, in budet and quality specification Development beyond 2017? 44

Confidentiality class: Medium (C2) 5 | BU Renewables | Management Kick-off 2014 | Strategic Priorities | Gunnar Groebler | 19 March, 2014 Our Challenge: According to the IL we will not add any new capacity from 2018 onwards Target growth* Onshore Biomass Offshore Vattenfall capacity increase versus target – Continen- tal/UK Capacity growth (MW)** Clashindaroch (37) 2015 Dan Tysk (288) KF ext (50) 2016 HW8 co-firing (93) Ray (48) 2017 Pen y Cymoedd (228) Nant Bach (23) 2018 Zuidlob (121) Swinford (22) Moabit co-firing (25) Main projects (MW) We have to concretize our further Growth potential beyond (FID Sandbank?) Version (based on Preliminary Investment Plan 2013 after Asset Port. Dialogue)

Confidentiality class: Medium (C2) 6 | BU Renewables | Management Kick-off 2014 | Strategic Priorities | Gunnar Groebler | 19 March, 2014 Main drivers to close the growth gap in the context of New Normal Existing Project- Pipeline BU Renewables Identifcation of new projects Prioritize Projects (incl. also to close down projects) Identify new profitable growth opportunities according to country specifics Broaden the Scope Identify/Realize profitable growth options in other renewable energy sources and system integration (BD)

Confidentiality class: Medium (C2) 7 | BU Renewables | Management Kick-off 2014 | Strategic Priorities | Gunnar Groebler | 19 March, 2014 Strong project pipeline is a prerequisite for further growth South Kyle Middelharnish Beaufort (51%) Eemshaven West Nochten Spremberg West Honigkuchenberg / Plauen Uckley Auchenhay Cnoc an Fionn Capacity according to Pipeline BU Renewables Maasvlakte 2 Hiddum Houw Aultmore Sandbank (2017) Rough overview Check on strategic fit, profitability and focus/prioritize

Confidentiality class: Medium (C2) 8 | BU Renewables | Management Kick-off 2014 | Strategic Priorities | Gunnar Groebler | 19 March, 2014 UK RegulationThe Government target is to ensure sufficient investment in sustainable low-carbon technologies by allocation of CfD which are not yet available. OffshoreRecalibrate Offshore pipeline and develop extension opportunities OnshoreFurther pipeline development NL RegulationThe national regulations underline an explicit choice for wind energy as one of the main renewable sources which is expected to start in OffshorePosition Offshore pipeline in context with new framework OnshoreRepowering of own Onshore parks and develop new projects GER RegulationStabile support schemes until 2020 with fixed basic prices for on- and offshore wind under the current working draft. The law is planned into force on August 1 st OffshoreDevelop Offshore project opportunities for post 2020 timeframe OnshoreLimited greenfield/mainly brownfield repowering Different Markets with different growth opportunities Analyze market potential and derive best growth opportunities according to profitabilty and risk exposure (market/regulatory)

Confidentiality class: Medium (C2) 9 | BU Renewables | Management Kick-off 2014 | Strategic Priorities | Gunnar Groebler | 19 March, 2014 BU Renewables is an integral part of the New Normal Consoli- dation Project realization in time and budget LEC reduction Capital Recycling & project financing Growth options Formulate growth strategy for BU Renewables Review future business model Sandbank Growth options beyond wind Regulatory Regime Lobbying activities Link regulatory changes to pipeline development Human Resources Implement new organisation HSS/HR operating model & mgmt system Succession & competence supply Planning & resource allocation Develop Leaders & Culture

Confidentiality class: Medium (C2) 10 | BU Renewables | Management Kick-off 2014 | Strategic Priorities | Gunnar Groebler | 19 March, 2014 Your questions 44 Is there an adjusted success criteria for DanTysk and how is that linked to a FID for Sandbank? With a strong focus on growth in Renewables, do we have the money to invest or will the number of projects to be executed be limited? What's the one single goal you wish to achieve between now and March 2015? How is our development pipeline progressing? What projects are on the horizon?

Confidentiality class: Medium (C2) 11 | BU Renewables | Management Kick-off 2014 | Strategic Priorities | Gunnar Groebler | 19 March, 2014 Your questions What is the strategic importance of offshore project for VF group? What is the importance of developing a project pipeline? In what ways will projects be financed? Do we still intend to have a UK/Continental pipeline of wind farms?