1. Joined perspective creates opportunities Illustrated by the case of Nuon/Vattenfall and Tata Steel in Velsen, The Netherlands PM Summit 7 October 2014 Jan van der Marel Confidentiality - Medium (C2)

2. Introduction to the case – view of Nuon/Vattenfall Confidentiality - Medium (C2) Joined perspective creates opportunities | Jan van der Marel | 2014.10.07 2 Velsen Almost 100 years of cooperation between Nuon/VF and Tata on Velsen location Physical connection between Nuon/VF and Tata by the Blast Furnace Gas (BFG) pipeline Nuon/VF units are BFG dedicated and not competitive in merit order on Natural Gas (NG)

3. Introduction to the case – view of Tata Steel Confidentiality - Medium (C2) Joined perspective creates opportunities | Jan van der Marel | 2014.10.07 3 Almost 100 years of cooperation between Nuon/VF and Tata on Velsen location Physical connection between Nuon/VF and Tata by the Blast Furnace Gas pipeline Conversion to power is best option for waste Blast Furnace Gas

4. Perspective Nuon/Vattenfall Confidentiality - Medium (C2) Joined perspective creates opportunities | Jan van der Marel | 2014.10.07 4 Position Interest Identity A new power plant or lifetime extension of existing units is essential for long term profitability of the Velsen location Safe, reliable, profitable and as clean as possible electricity production A reliable, sustainable and profitable Energy company High Nuon CAPEX low Tata fee Unavailability Risks 2006–2009Development of new power plant fueled with BFG in project Ultimo in cooperation with Tata

5. Perspective Tata Steel Confidentiality - Medium (C2) Joined perspective creates opportunities | Jan van der Marel | 2014.10.07 5 Long term availability of BFG converting assets is essential Safe, reliable, profitable and as clean as possible steel production A reliable, sustainable and profitable Steel company Low Nuon CAPEX high Tata fee Risk 2006–2009Development of new power plant fueled with BFG in project Ultimo in cooperation with Tata

6. Separated perspectives Confidentiality - Medium (C2) Joined perspective creates opportunities | Jan van der Marel | 2014.10.07 6 Position Interest Identity 2009–2012 Nuon developed a new power plant fueled with Natural Gas in project Score 2009–2012 Tata developed their own power plant in project TRUST (3x BFG fueled boilers) Own asset is cheaper than new power plant by Nuon Profitable only on power market Unbalance in power market Risk Bad spark spread outlook Risk

7. Joined perspective Renewed negotiations for a new Tolling Agreement: June 2012Development of Trust and Score were officially stopped May 2013Signing of the full Tolling Agreement 2014 – 2025 Confidentiality - Medium (C2) Joined perspective creates opportunities | Jan van der Marel | 2014.10.07 7 Position Interest Identity Mutual gains: Utilise safe and reliable Nuon assets to: Facilitate reliable steel production Produce electricity for Tata reliably Avoid investments in new units Shared risks: Tata scope items: joined investigation on scope. All costs and unavailability risk for Tata Steel Costs for permit changes are shared

8. Lesson learned Joined perspective creates opportunities Confidentiality - Medium (C2) Joined perspective creates opportunities | Jan van der Marel | 2014.10.07 8 All Nuon risks incorporated in high Tata Steel fee Nuon Tata Steel Available assets for low Tata Steel fee New power plants by Tata Steel and Nuon New Tolling Agreement with shared risks

9. Lose-lose situation Confidentiality - Medium (C2) Joined perspective creates opportunities | Jan van der Marel | 2014.10.07 9