A Decade of Delivery Through People John Shine Deputy Chief Executive 25 th May 2011

ESB in Figures People - ROI People – ROW Assets (€ B) Turnover (€ B) EBITDA (€ B) ,0006,500 1,

Significant Presence Abroad Over 8,000 People Projects in over 20 countries

Strategic Framework 2020 World class sustainable networks A renewable business of scale Best practice GTS portfolio Competitive energy supply business Significant international presence World class sustainable networks A renewable business of scale Best practice GTS portfolio Competitive energy supply business Significant international presence … and Be A Leader In Carbon Management And Energy Efficiency

A Decade of Industry Transformation from… 3 rd Party Generators ESB Generation ESB National Grid ESB Distribution ESB Supply Customers In 2000, ESB was the Irish Electricity Market!

…to a New Energy Industry

Starting Point In 2000! Underinvestment in Networks Aging Legacy Generation Fleet No Presence in Renewables Facing forced “Surrender” of Market Share Shareholder negative on future ESB Growth /International Expansion

€6B Investment in Networks Infrastructure

Renewal and Refocus of Generation Fleet  Built 7 x New Plants ( 3 x UK/Spain)  Sold 2 x Thermal & 2 x Peaking Plants  Significant Overhaul / Refurbishment  Closed 8 x Old Plants

A Renewables Portfolio of Scale

Transformation of Supply Business From Monopoly Public Service Ethos Electricity Only To Competition Dual Fuel/GasRebranding Energy Services

Geographic Expansion – 2010 Acquisition of NIE  Electricity T&D Networks OF NI  800,000 customers  1,300 staff  Largest Acquisition in Company History - £1.2 Billion

Management Development - A 10 Year Journey PACT No’s & Work Practices Safety Leadership PPC Local Change Rationalisation & Asset Sales Sustainability Leadership Cost Reduction & Pensions reform IMD Programme Top 60 Ashridge Programme Top 300 Diversity Coaching IMD Programme Top 60 A New Management Engagement Performance Management

Talent Management - Framework Recruitment Promotion Performance Management Career Planning & Succession Management Leadership Development Personal Development Integrated Framework

Driving Business Performance Strategy Alignment SelectionSystem Performance & Reward & Reward LeadershipDevelopment SuccessionManagement BUSINESS STRATEGY INDIVIDUAL PERFORMANCE Managers Improved Performance At its most basic it’s about individual performance

Professor George Kohlrieser IMD Performance Conversations & Coaching Skills Programme for Executive Team & Top 50 Senior Managers

Pillars of High Performance Leadership Leading from the mind’s eye Cycle of bonding Conflict resolution Power of dialogue High impact negotiation Leader as secure base Managing emotions, creating high energy

Putting The Fish On The Table !

Coaching in ESB Commitment from Top/Resources Aligned with Business Strategy & HR Strategy About Releasing Potential and Maximising Performance Across Full Management Chain (almost!) All New Managers – First 100 Days Team Coaching now on Agenda

Coaching Framework TRIGGERS ImprovedSuccessionAssurance PerformanceImprovement CapabilityAwarenessOrganisationalLearning Retention OUTCOMES SuccessionAssurance ITDP Promotion RoleChange 1 : 1 Feedback Coaching

First 100 Days Coaching Focus Obtain awareness of our own skills & vulnerabilities Manage organisational politics Understand challenges & opportunities Build trust & relationships Get control of diary Agree role & objectives

Emerging Benefits of Team Coaching … Focus On Team Improvement Goals Being energetic, aligned, cohesive and showing leadership Identifying the things that either Doing, or not Doing, don’t support achieving the Team’s Goal Identifying/Understanding Competing Commitments Commitment to delivery of own personal targets Committment to Corporate versus Business Line goals Focus on destination versus following agreed journey

Coaching Evaluation Supported achieving objectives (70.9%) Improved focus on work role (71.8%) Approach work role differently (70.9%) Valued coaching (88.2%) Main Findings: General endorsement of the ESB Group coaching programme and activity to date Greater level of awareness and integration required to become part of the fabric of the organisation “ “ “ “

Client Experience – Still WIP ! Inadequate Delegation Poor Feedback Activity Trap Poor Communication Silo Approach Career Insecurity

Management Development - More Personal ! “PACT” No’s & Work Practices Safety Leadership “PPC” Local Change Rationalisation & Asset Sales Sustainability Leadership Cost Reduction & Pensions reform More Personal Certainty Security Less Personal Certainty Security

Empowerment But more than ever we need…! High Energy and Resilience Real Conversations Role Flexibility Ideas Offered & Listened to Teamwork

Pillars of Staff Engagement Priorities % Strategic Story Engaging Managers ListeningIntegrity International Research January 2011 by Sheppard Moscow/The McLeod Report

The Journey Continues !