© 2008 Eventure Events. All rights reserved. 1 Implementation of Market Messaging Functionality in Essent-Greenfield Maarten Moolhuysen Project leader Greenfield

2 How we implemented market messaging functionality as part of a huge transition program About Essent and the developments in the Dutch energy market … … which force us to execute huge Transition programs The role of SAP in one of these programs and specifically how we jointly implemented a market messaging module… … and what we have learned from that

3 Essent: a vertically integrated energy utility company - leader in The Netherlands Revenues7,378 M€ EBIT991 M€ Cash Flow*1,003 M€ Assets8,048 M€ ROIC13,4% Employees10,223 FTE Customers2,1 M Contracts (E+G)2,8 M KEY FIGURES 2007 * Operational Cash Flow Value Creation Entities Gas Storage, Waste, Generation, Transport, Distribution (unbundled per ) Portfolio Optimization / Trade, C&I Sales, Residential Sales, Value Added Services (including Meter reading services) Products and Services Gas and Electricity Heat Product related services Geography The Netherlands Germany Belgium ESSENT’S BUSINESS

4 Transition Programs in Essent – internal and external drivers EU market changes Dutch market changes LNG market Mergers & Acquisitions Labor market shortage DTe scorecard Unbundling (split Supply – Grid) New market rules Capacity tariff Supplier model Energy saving targets ( in 2020) Changed Meter market model Heat law Smart meters Micro WKKs Solar panels Intelligent networks Domotica MARKET / SECTOR REGULATORY CHANGES TECHNOLOGY Increased competition Pressure for lower operational costs Stronger customer orientation New products (energy saving related) BUSINESS

5 Greenfield: lower cost to serve and enabling unbundling and market-model changes No Hassle Basic Products & Services Offering Optional Standard 'No Waste' Green Package Optional Standard 'No Waste' Euro Package Optional Standard 'No Risk' Euro Package Standardized Processes Flexibility via business rules that vary communication channel, lead times, etc. driven by customer value and segmentation VALUE Customer first First time right First call resolution Fit for purpose IT-systems FLOW End to end processes FO/BO integration Workflow Performance management PERFECTION Six sigma Empowered employees Continuous improvement Best practices PULL Day production Feedback loops Pro-active Greenfield organization according to Lean principles Simple and flexible processesModular product & services packages Standard SAP in combination with a flexible IT front end Core of: SAP ISU / CRM / BI-BW SAP XI integration layer for interfacing to Flanking Applications User friendly interface (Morphis) and Customer Self Service Greenfield facilitates the implementation of new market model and upcoming unbundling. Enables Essent to focus on business targets of individual customer segments 5 Best practice IT architecture

6 (Dutch) energy landscape after liberalization Generation Companies TradingEnergy Suppliers Foreign entrants LNG and storage Utilities Oil companies Banks Incumbents New entrants Consumer unions Distribution Companies MeteringGrid sales Smart meter reader providers National System Operator Power/Gas Exchanges Energy Clearing House

7 What is IDEX, and Why IDEX at Essent? Adhere to (expected) market standard to be able to easier follow future market changes Integrated approach with one software vendor/ solution Expertise and quality Rationale for Essent All Switching related processes (switches, move in/ move out) Master and Meter data requests IDEX handles data exchange for

8 Essent as principal to SAP-Custom Development for IDEX product SAP CD as project responsible contractor –After drafting the specs, on fixed price basis –With strict end-date for delivery With “other implementation partner” for –Developing main Greenfield applications –Integrating IDEX product SAP development team in Walldorf –Weekly a joint project-management meeting –Essent and implementation partner to assist in development Structure of IDEX project in Greenfield GREENFIELD PROJECT IT project – 1 SAP Backend, Morphis Front end By: Implementation Partner IT project – 2 Flanking Applications By: Essent IT project – 3 IDEX By: SAP CD ESSENT as PROJECT PRINCIPAL

9 On time delivery and consequently maintenance started IDEX is successfully integrated in Greenfield architecture Time-pressured issue resolution –more issues than expected … –… faster solved than predicted Successful “certification” by Dutch messaging authority EDSN What have we achieved?

10 Some key lesson learned around organizational and technical challenges Main implementation partner is responsible for integrated solution … … however, Essent and SAP CD delivered the IDEX module … … when technical/ integration issues appeared, who is responsible? And how to solve the issues. Integration For technical expertise turn to the experts from the IBU or LCC (much more than to the country / sales organization, e.g. in the Netherlands) Where SAP most often has a consultancy / advisory role, I was pleasantly surprised by their project management skills SAP Essent choose for future market standard … … but experiences - as front-runner – all the start up problems … … and maybe the start up costs? IDEX Philosophy

© 2008 Eventure Events. All rights reserved. 11 Maarten Moolhuysen project leader Greenfield