1. Region Continental/UK Strategic Direction 2014 Tuomo Hatakka Head of Region Continental/UK 19 March 2014 – Management Conference BU Renewables Confidentiality class: Medium (C2)

2. 2 ǀ Management Conference BU Renewables ǀ Strategic Direction ǀ Tuomo Hatakka ǀ 19 March, 2014 Business environment and trends +++ ENERGYMARKET +++ Paradigm change in power generation - Europe „goes green“ Systemic overcapacities “bearish” price development Increasingly national and regulated energy markets Share prices of European Utilities have taken a big fall System margin shifts from conventional generation to renewables and downstream

3. Confidentiality class: Medium (C2) 3 ǀ Management Conference BU Renewables ǀ Strategic Direction ǀ Tuomo Hatakka ǀ 19 March, 2014 Vattenfall’s Strategic Direction Sustainable Heat and Electricity Production Sustainable Consumption Sustainable Financial Performance Selected growth in renewables Strong Nordic Position Define options to meet 65 Mtons CO 2 target by2020 Smart Energy Enabler Strengthen focus on Operational Excellence and reduce cost

4. Confidentiality class: Medium (C2) 4 ǀ Management Conference BU Renewables ǀ Strategic Direction ǀ Tuomo Hatakka ǀ 19 March, 2014 Region Continental/ UK Getting fit for the ‘New Normal’ The energy system in Continental Europe is experiencing a paradigm change. We create this Business Division to shape the future (the ‘New Normal’) - not to fix the past! Vision Continental/UK will deliver cost efficient, reliable and climate friendly energy solutions for people, corporates and society. Mission To get fit for the ‘New Normal’ and to be recognized as a positive force in the transformation processes of the German, Dutch and UK energy systems. Core Values: Safety Performance Cooperation Customer Focus

5. Confidentiality class: Medium (C2) 5 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 in 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 1 2 3 4 5

6. Confidentiality class: Medium (C2) 6 ǀ Management Conference BU Renewables ǀ Strategic Direction ǀ Tuomo Hatakka ǀ 19 March, 2014 My expectations on you as the managers of BU Renewables  Excellence in project management in particular fix Dan Tysk issues  Deliver the EBITDA growth from post FID projects  Concretize further growth potential until 2020  Do not „fall in love“ with any of your projects  „Excite“ your direct reports with your growth story