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Power Market Study 2030 A new outlook for the

Hamburg, April 2018 summary

General market environment: The traditional remains under significant pressure; major trends identified in Deloitte’s 2015 Market Study remain valid for generation, and

New drivers of change: Major players have made necessary adjustments, but new market realities have emerged – generation is driven by consolidation and recovering wholesale , distribution by the interplay between high- voltage transportation requirements and need for new revenue streams, and consumption by changing customer expectations and transformation needs

Implications: Based on the new market environment, utilities have to re- prioritize their business model portfolio and investment decisions, as well as to adjust their Target Operating Model into an even clearer set-up

Monitor Deloitte 2018 2 Recap: Power Market Study 2025 (1/2) Main challenges and trends of Deloitte’s Power Market Study 2025 published in 2015 have been confirmed over the last 2 years and are largely still valid

Power Market Study 2025 Implications

• Deloitte’s 2015 study has been Power Market Study 2025 focusing on the future of the power The traditional business model for utilities is gone, market let’s talk about how to build the future • Main challenges remain:  Generation: Ongoing margin pressure as over-capacity is only Technological, social and most of all regulatory influences changed the 1 Current Situation utilities industry over the last 10 years for good, resulting in significant slowly reduced challenges in terms of market valuation, profits and returns for utilities  Distribution: Imbalance of consumption and generation Key issues exist in three areas: In generation, over-capacity eliminates remains a challenge, increasing spreads; in distribution, increasing geographical disparity exists Key Issues 2 between generation and demand; in consumption, new segments with number of dispatching incidents diverse behaviors and needs arise besides the “traditional” consumers  Consumption: Customers have the option to choose preferred To respond to these challenges, utilities need to fix current business, invest in intelligent and commercially optimized demand/supply for power generation Implications 3 balancing solutions, become more customer centric and reposition for new business models • Consequences are being realized (e.g. through portfolio © 2015 Deloitte Consulting GmbH adjustments), the industry seems to have bottomed out

Monitor Deloitte 2018 3 Recap: Power Market Study 2025 (2/2) The good old days are gone for good – a mere evolution is not sufficient, a real transformation is required

Major trends and their development Observations

2015 projection Adjusted projection New topics • General confirmation of Power High Market Study 2025, however, some “surprises” have occurred: Energy-as-  Very effective model a- Regulatory- driven for renewables decarbonization Portfolio adjustment/ Maturity of  Extent of portfolio adjustments market consolidation renewables Micro- across all major utilities grids1  Speed of storage Blockchain to become relevant (Large-scale) IoT / convergence storage / P2G • Regulatory-driven decarbonization (introduction of

E-Mobility CO2 taxation and potential lignite phase-out) no longer a vision of the Impact for utilities Impact future • Further consolidation in large- scale traditional generation expected Low Long-term Short-term Time of occurrence

Monitor Deloitte 2018 1 Microgrids include Peer-to-Peer-Trading Platforms and Energy 4 Challenges have not diminished – new market realities have appeared to which utilities have to adjust.

Monitor Deloitte 2018 5 Overview The three major chain segments are still a valid basis for industry analysis

Generation Distribution Consumption

• Further regulatory push towards • Inexpensive renewable and • Traditional business not decarbonization (Paris Agreement), maturing storage solutions push profitable (for B2B no margin over-capacities will decrease (nuclear, importance of micro-grids recovery, for B2C potentially slight lignite phase-out) increase through automation • High-voltage transmission still expected) • Recovering wholesale market essential to balance unequal supply prices (50-60 EUR/MWh); and demand • Shifting customer needs and renaissance of (“stranded industry convergence require • Convergence of assets”) to provide system services (power and gas, , transformation and cost-effectiveness data, mobility)

Consolidation in large-scale Relevance of Micro-grids, De-commoditization, generation, market forces extension of (critical) convergence and service cost relevant again ecosystem reduction

Monitor Deloitte 2018 6 Generation | development Wholesale prices are improving – relieving the profit situation for utilities

Price development Considerations

German wholesale power price (spot) Expected utilities’ profitability • Germany will potentially see upturn (EUR/MWh) growth 2017-2020 (CAGR in %) in wholesale power prices (nuclear 50-60 60 52 DE EU 3.6% phase-out by 2022 + potential 46 43 38 /lignite) 33 31 33 40 28 1.9%  Nuclear phase-out: remaining 1.6% nine nuclear shut down by 20 0.8%

EUR/MWh 2022 latest 0  Limited future for coal: §13g 2010 2011 2012 2013 2014 2015 2016 20172030e Revenue EBITDA EnWG already to shut-down of approx. 10% of coal plants by 2019 Number of hours with negative wholesale power prices and hours with prices >100 EUR/MWh • Price fluctuations on spot market more pronounced 146 150 126  2017: negative prices during 146 97 100 88 hours (most ever recorded); many 56 64 64 hours with prices >100 EUR/MWh 50  volatility on intraday market 15 17 Hours Hours p.a. 12 8 9 high as well; shows increasing 0 need for flexibility due to rising PV 2010 2011 2012 2013 2014 2015 2016 2017 & wind capacity Hours with negative spot prices Hours with spot prices > 100 EUR/MWh

Monitor Deloitte 2018 Source: EPEX; Suisse: “European Utilities – 2018 Outlook” (2017); Federal Network Agency (BNetzA); Agora : “Jahresauswertung 2017”; Monitor 7 Deloitte analysis Generation | Consolidation in fossil generation However, large-scale conventional generation will be subject to further consolidation, while their relevance for system stability remains

Developments in fossil generation Considerations

• Traditional vertically integrated utilities business model is increasingly challenged

• Merger wave in conventional generation

• Capital-intensive business, large players will set the pace

• Need for new (gas) power plants Gross generation, generation mix (%) for of supply – at least 2022 after finalization of nuclear phase- 23% 22% 18% out; conventional generation will become profitable again as wholesale 17% 17% 20% power prices rise Gap (10%) – 12% 12% Options 10% • Remaining gap in generation mix 13% 20% 1. Wind on-shore 13% will have to be filled by additional 10% 6% 2. Imports 2% 3% generation in order to 6% 9% 11% 3. Gas new-built 3% 3% 3% 4. Efficiency meet carbon reduction targets 7% 8% 8% 7% 3% 4% 2016 2020 2030

Lignite Natural gas Wind on Solar Hard coal Nuclear Wind off Hydro Other

Monitor Deloitte 2018 Source: Federal Ministry for Economic Affairs and Energy (BMWi); Monitor Deloitte analysis 8 Generation | Development of “dark doldrums” (Dunkelflaute) The rising variability of residual load – due to fluctuating renewables – requires balancing mechanisms that complements conventional generation

Impacts of high share Considerations

Number of situations p.a. during which average wind and solar • Recent studies indicate that generation is < 10% of nominal capacity for period of 48 hours situations with prolonged yield losses of fluctuating renewables are 23 Germany Europe rare, viewed over time – but when occurring, large spreads need to Often be covered 13 • So far, dark doldrums (times during Rarely 2 which solar or wind power generation 0.2 is very low) covered by Wind on- Wind on-/ Wind on-/ Wind conventional generation and shore off-shore off & Solar & Solar electricity imports

• Considering a lignite phase-out, Wind and solar generation at peak load, peak load (GW) cross-border capacities might not be sufficient to ensure security of 16% 21% 19% 2% 11% 2% 24% supply during “cold dark doldrums” 100 (coincidence of low wind and solar generation and high electricity 50 Residual load demand during winter months) GW to be covered • Need for balancing, e.g. via 0 Winter period capacity mechanisms or price peaks 2010 2011 2012 2013 2014 2015 2016 to incentivize use of flexible gas Wind, PV at peak load Peak load power plants

Monitor Deloitte 2018 Source: Energy Brainpool (2017); Deutscher Wetterdienst (DWD) (2018); RWE (2017); Monitor Deloitte analysis 9 Generation | Renewables The growth of renewables is increasingly backed by its superior cost position that will make merchant the norm in the mid-term

Profitability of renewables Considerations

Levelized Cost of Electricity (LCOE), • Switch to tender process for average auction prices, renewables with Renewable Energy wholesale electricity price (EUR/MWh) Act (“EEG”) amendment 2017

160 • Constant decrease in auction 140 prices, also reflecting decline in renewable costs (LCOE) 120 • Expected wholesale market price 100 development implies that it might 80 become more profitable to market renewable capacities via merchant

EUR/MWh 60 markets than to rely on subsidies 40 (remuneration according to submitted tender price) 20

0 2013 2014 2015 2016 2017 2020 2025 2030

PV EPEX Spot price Auction price PV Wind on-shore Auction price wind on-shore Wind off-shore Auction price wind off-shore

Monitor Deloitte 2018 Note: Average auction prices reflect the most recent auction results in Germany (PV / wind on-shore: February 2018; wind off-shore: April 2017) 10 Source: EPEX Spot; Federal Ministry for Economic Affairs and Energy (BMWi); Federal Network Agency (BNetzA); Agora Energiewende Generation | Market uncertainties

This development is underpinned by higher, potentially -based CO2 prices that ensure required wholesale price levels of about 60 Euro/MWh

CO2 price effects Considerations

German merit order at German merit order at • CO2 price is added to each ’s CO2 price of 7 EUR/ton CO2 price of 30 EUR/ton marginal costs and thus increases 80 80 ILLUSTRATIVE ILLUSTRATIVE the overall wholesale price: an increase of 1 EUR/ton CO results in a 60 60 Marginal price 2 rise of wholesale prices of 0.7 40 Marginal price 40 EUR/MWh

Producer EUR/MWh EUR/MWh 20 Producer 20 surplus • In order to achieve Paris Agreement surplus targets and EU and German climate 0 0 protection goals, increased Renewables Nuclear Lignite Gas Hard coal Other carbon pricing seems imperative; German Climate Protection Plan:  total emission reduction of 40% by Emission reduction target Emission reduction target 2020 (compared to 1990) achievement 2020 achievement 2025 80 80 68% 71% 69%  reduction of energy sector 2030 target 61% emissions of about 60% by 2030 60 52% 60 2020 target 40% 40 40 • Recent studies imply that mere 28% 27% anticipation of strict CO2 pricing 20 20 triggers divestment in CO2

0 0 intensive generation (especially coal), Emission reduction % Emission reduction % Ref. 20 40 60 Ref. 20 40 60 prevailing over the “green paradox”1 scenario EUR/ton EUR/ton EUR/ton scenario EUR/ton EUR/ton EUR/ton and thus effectively reducing Reference scenario: CO reduction through planned development path of renewable energy generation 2 emissions Reduction targets: 40% across all sectors by 2020; 61% in energy sector by 2030 (both comp. to 1990) Slight emission increase in 2025 through increased full load hours of coal due to nuclear phase-out

1 Monitor Deloitte 2018 Increase in CO2 emissions as result of CO2 reduction policy announcement as fossil generation owners accelerate production while still possible (profit maximization) 11 Source: : “Utilities Primer. An introduction to the European Utilities market” (2017); Energy Brainpool (2017); Potsdam Institute for Climate Impact Research Generation | Point of view

Decarbonization will be the major driver influencing the future generation and shaping sector consolidation

Centralized, conventional generation is not “dead”, though, as it is required to balance the system at least for the next decade

Key to a more healthy generation system are recovering wholesale prices that need to be underpinned by increasing

CO2 prices allowing for merchant marketing of further technologies

Monitor Deloitte 2018 12 Distribution | Regulatory environment Changing realities in regulation create pressure on earnings – at the same time regulators are pushing for investments in smart grids

Remuneration and investment of grid operators Considerations

Development of return on equity before (%) • Probable switch towards Yardstick regulation after 3rd regulation period -6% -28% in 2024 (e.g. capital expenditure per -3% -24% grid kilometer) 9,29 9,05 7,56 7,14 6,91 • Margin pressure due to decreasing 5,12 return on equity – importance of new revenue streams from competitive grid services and digitalization 1st reg. period 2nd reg. period 3rd reg. period (e.g. energy consulting, demand response, gateway administration) New assets Existing assets • The growing importance of Smart meter rollout path Number of DSOs investing in grid renewables and the changing (according to the 2016 “Law on the improvement measures customer behavior (e.g. prosumers, Digitization of the ”) (according to §12 EEG, §11 EnWG) communities, peer-to-peer platforms) to increased - driven investments 513 511 530 513 488 494 479 458 483 • Local regulations on data protection and data security are still a main obstacle for , especially in the development of smart grids Grid Grid Grid reinforcement optimization expansion

2015 2016 2017

Monitor Deloitte 2018 DSO = Distribution System Operator 13 Source: Federal Network Agency (BNetzA), Monitor Deloitte analysis Distribution | Grid expansion To maintain security of supply, grid expansion remains an inalienable imperative

Grid expansion requirements Considerations

Development of measures for grid congestion management • Due to energy transition, cost for (costs in million EUR p.a., duration in GWh p.a.) congestion management 1,000 20,000 measures, i.e. redispatch

GWh p.a. GWh (contractually-based adjustment of 800 15,000 electricity feed-in from power plants) 600 10,000 and feed-in management 400 (curtailment of

200 5,000 from renewables and combined MillionEUR p.a. 0 0 and power plants) increased 2011 2012 2013 2014 2015 2016 2017 significantly over the last years Q1-Q3

Redispatch Feed-in management Total costs • Further funding and adjusted regulation to ensure adequate RoI seem required to foster grid Progress grid expansion (%) expansion, thus responding to public sensitivity for security of supply and EU requirements (assurance of EnLAG 40% 1,800 km cross-border exchange capacity)

• Grid expansion investments can BBPlG 3% 5,900 km reduce pressure on earnings for grid operators – nevertheless the number of delayed or rescheduled Completed Due investment shows the complexity of upgrading existing grids

Monitor Deloitte 2018 EnLAG = Energieleitungsausbaugesetz (2009), 22 grid expansion projects; BBPlG = Bundesbedarfsplangesetz (2013), 43 grid expansion projects 14 Source: Federal Network Agency (BNetzA); Agora Energiewende; Monitor Deloitte analysis Distribution | Excursus: Power-to-Gas By using large-scale storage technologies to relieve the grid, investment needs for grid expansion can be reduced

Integrated energy view on Power-to-Gas Considerations

• Ready technology: More than € 70 m are invested in more than • Increasing share of volatile electricity 100 Power-to-Gas plants globally generation from renewables • Infrastructure relevance: Power- • Nearly no buffering in the electricity grid to to-Gas is able to relieve the electricity meet real-time demand grid

• Need for regulation change: Make Power-to-Gas more attractive (e.g. by exempting from taxes and levies) Electrolysis H2 Methanation CH4 • Supply change: Due to increasing renewables, the all-electric is coming closer using PtG as carbon- free source

contribution: • The gas grid is able to store large volumes of Power-to-Gas enables the energy (former electricity) decarbonization of the heat sector Gas • Gas storages are suitable as additional seasonal

Monitor Deloitte 2018 15 Distribution | New services Companies need to identify further on- and off-grid solutions to benefit from the changing client behavior and to respond to pressure on earnings

Evolution of the electricity grid Considerations

Wind • New infrastructure systems TODAY become relevant for utilities – Virtual existing infrastructure is digitally plant optimized (e.g. equipment of lines with sensors) and new infrastructure Home Photovoltaic is built (e.g. charging infrastructure) automation • Strategic considerations by utilities to focus on (critical) infrastructure (instead of end- infrastructure costumer products and services) or expand the portfolio towards the end- Smart cooling / customer needs Smart heating meter • Support of self-consumptions and local micro-grid with external Power, gas, heat, advice and energy consulting Storage infrastructure • Constant increase of complexity and opportunities for the end- costumer – a comprehensive end-to- end package (via ) as a Electric mobility potential unique selling proposition Mobility TOMORROW infrastructure

Monitor Deloitte 2018 16 Distribution | New services: Use case “Landau Microgrid Project” Utilities can benefit from micro-grids by offering data-driven and customer- oriented services – and avoid being reduced to pure infrastructure providers

Objective: Function principle Automation of transaction in local Closed grid infrastructure energy systems Smart meter Smart meter Partners: Generation data Consumpt. data Karlsruhe Institute of Technology (KIT), Mobile app Mobile app Energie Südwest AG, Power price Power mix LO3 Energy preferences preferences

Current setting

Local transaction Local household micro-grid electricity customers • Peer-to-peer trading based on blockchain technology • Fully automated trading Choose where based on indicated Lazarettgarten, Landau to buy from preferences

Local renewable power producers Power from general grid

Monitor Deloitte 2018 Source: Karlsruhe Institute of Technology (KIT), Energie Südwest AG 17 Distribution | Point of view

Grid expansion stays relevant with more innovation-driven investments to push for sustainability and digitalization along the entire power value chain

Grid operators have to tap into alternative revenue streams, based on changing end-customer behaviors and evolving local opportunities (e.g. storage, micro-grids)

Focus on (critical) infrastructure might be reasonable – but utilities have to develop competences and build partnerships with regard to new infrastructure systems

Monitor Deloitte 2018 18 Consumption | Customer expectations Customers are expecting change – as our surveys are demonstrating

Preferred customer channels by age group Considerations

Outage Consumption Invoice reporting • Customers show their readiness for change by embracing user friendly 46% 54% 9% opportunities to connect with energy and their

Call 10% 3% 62% • Traditional mail, e-mail and web

portal are the preferred contact Analog Text channels for consumption and message 6% 4% 8% invoice to easily store provided data

• Mobile app is used by 10-20% of participants – integrating other digital E-mail 49% 40% 31% channels, the app has the potential to become favorable digital

channel in the future Active digital Web chat 2% 2% 5% • Age does not play a major role for contact channel preferences

Web portal 39% 43% 29% • Digital readiness of customers unlocks future digitalization and therefore cost reduction potential digital Mobile App 12% 11% 17% Passive Passive for consumption and invoice related information

Age: <30 30–39 40–49 50–60 >60

Monitor Deloitte 2018 Source: Monitor Deloitte Study “Kundenerlebnis@EVU” (survey across more than 1,000 German utility customers in 2017) 19 Consumption | New requirements To satisfy customer expectations, new requirements have to be addressed – either through re-build or new-build

Approaches to address customer expectations Considerations

To meet and exceed new customer expectations and achieve competitive cost levels, existing structures require New-build re- or new-build Complete new technology stack, Main changes & challenges

&Backend) incl. digital new-build: -

Complete operating models • High investment and migration cost Today (Front • … but opportunity to achieve leading Optimization within cost-to-serve levels and respective Scope existing structures long-term competitive edge Re-build Focused Main chances & challenges extension re-build: in analytics Focused • High cost-of-change and operating (Frontend) and frontend expenditure (mainly personal and IT licenses)

Existing New • … but limited investment while Technology & Processes Technology & Processes enabling more customer friendly and analytic-based frontend Level of Change

Monitor Deloitte 2018 20 Consumption | Cost implications New-build results in significantly lower costs – even though these are only becoming effective as of larger customers numbers

Cost-to-Serve analysis Considerations

CtS [EUR] • German utilities below 400,000 75 household customers are lacking 1 scale for own new-build initiatives 70 Scale effect 65 • Therefore small utilities should invest 60 cooperate and bundle their digital 2 back- and frontends to also achieve 55 competitive CtS (Cost-to-Serve) Migration 50 levels in the near future costs 3 45 • Depending on migration costs to shift Project 40 existing customer groups towards a uplift digital only operating model, utilities 35 with over half a million household 30 customers might benefit from new 25 technologies and processes outside existing structures 20

15 • For large utilities with over a million household customers it is prudent to 10 pursue a digital pure play model 250 500 750 1000 1250 1500 1750 2000 to achieve all-in CtS of 10 EUR per Household (HH) customers [in thousands] household and lower

Today Re-build New-build New-build incl. migration cost

Monitor Deloitte 2018 Note: CtS = Cost-to-Serve; HH customers: <10,000 kWh/a (one metering point per customer); incl. project costs; for average companies, deviations possible 21 Source: Monitor Deloitte analysis Consumption | Market reality However, re-build currently seems to be the preferred option amongst German utilities

Dominance of re-build Considerations

Re-build Balanced New-build • Only 3% of German utilities currently prefer new-build for single system stacks (e.g. smart 3% meter data systems) 32% 65% • 32% are uncertain with regard to re- or new-build and might try to use existing systems to cope with new customer demands

• 84% of German utilities ensured sufficient funding for upcoming re- and new-build initiatives, of which Insights: 71% will take place within the next four years 68% • Around two thirds of respondents 84% 71% Agreement 60% see the planned transformation as a means for scale and synergy effects, where a joint digital backend Agreement Agreement Agreement or platform unlocks the full potential

Funding for planned Time frame of Transformation will Capabilities and • 40% of German utilities lack required transformation planned transfor- lead to scale and for capabilities and/or resources and available mation within next synergies effects planned transfor- demand for external expertise 1-4 years mation are available

Monitor Deloitte 2018 Source: Monitor Deloitte survey among 31 member companies of BDEW NRW (Dec 17-Jan 18) 22 Consumption | Outlook: Energy-as-a-service New capabilities, though, are needed to unlock value and higher margins of the increasingly growing field of Energy-as-a-service

Energy-as-a-service – outlook Considerations

Application Service Technology Players (%) • “Service”: Absence of pure hardware or commodity

Ancillary Platform 16 • Countermovement to Security of Services commoditization of recent times: Supply Conscious generation of non- Batteries transparency by offering abstract, Energy Storing 23 P2X new or combined services (example: batteries can be better sold in combination with other services as Energy Smart 18 they are often not profitable stand- Enabler Energy Steering Meter alone) Transition Self-genera- • Main advantages of new players: tion of RE PV 7 Increased customer loyalty due to (by Leasing) offering of mid-term contracts and opportunity to realize high margins App (due to lack of comparability) Energy Saving Frontend 21 Algorithm Energy Cost • Nevertheless, we expect to see also Optimization External industry consolidation in this Supply Database 15 growing field, given the large Optimization numbers of new players

Monitor Deloitte 2018 Note: Technology refers to the main technologies 23 Source: Monitor Deloitte analysis Consumption | Point of view

Customers, independent of age, demand leading experience and channel consistency, and utilities now need to deliver a cost effective digital channel landscape

Competitive cost-to-serve in the digital-only scenario becomes a matter of scale and small utilities require joint digital platforms to cope with new customer demands

Currently, German utilities focus on re-build – but disruption might come from within the industry through new standards being set by “First Movers”, followed by concentration and cooperation

Monitor Deloitte 2018 24 What does this mean for utilities?

Monitor Deloitte 2018 25 Implications | Strategic implications The changing market realities result in different strategic implications per value chain segment

Implications per value chain segment Considerations

• Strive to even cleaner business • Build long-term scale by combining models around different market conventional and renewable assets roles Generation as entire portfolio is exposed  Asset-intensive generation with merchant marketing system responsibility  Customer-centric solution business to deliver energy • Customer-centric business model around a combination of Distribution • Unlocking innovation investment to and Consumption may require new propel end-customer solutions, while interpretation of unbundling Distribution adapting investor base to improve • Regardless, utilities at all levels will capital efficiency have to cope with stretch between continued cost discipline and agile, quick-to-market decision making

• Integrating commodity and energy- as-a-services into single Consumption solution competence for end- customers

Monitor Deloitte 2018 26 Implications | Structural implications In the future, utilities may pursue an asset-light strategy and position themselves as operational and financial asset managers

Potential structure for further development Considerations

Financial Operational benefits: investors • Clear structure and focus on new roles: split between Equity provision and Asset Manager debt • Integrated operation: control over RegulatedRegulated New grid with grid asset management as Regulatedassetasset investm. in basic foundations for build-up of Customer assetsss regulated Asset assets customer solution businesses Service Mgmt. O&M • Asset management as separate Provider Services Non- ser- regulated business unit can focus on acquisition vices assets of 3rd party customers for Operation & (O&M) services

Financial benefits: O&M Services • Wide range of options for asset-light services financing to acquire and invest in further assets via with 3rd party Customers grids / assets institutional investors • Additional cash flow from operational asset management services to 3rd parties and from financial asset management services to institutional investors (set-up of own fund)

Monitor Deloitte 2018 27 Implications | Organizational implications As a result of strategic and structural adjustments, organizational structures and capability requirements will change as well

Organizational implications Considerations

Customer • With increasing automation and 1 Individualization up to “Segment of One” segments new technologies, organizational structures will change and require Products/ Products/ 2 New products/services “beyond the meter” Services Services  New talent with new skill sets (e.g. data miners, service designers, performance marketeers 3 Channels Omni-channel communication and delivery and analysts)  Agile approaches (e.g. to speed 4 Processes Processes allowing customer centric interaction up product development to respond quickly to changing customer needs) Infor- 5 Use of available plant, grid, customer data mation Capa- bilities • This also implies changes in 6 People Most wanted: Digital and data analytics capabilities leadership / governance as well as in recruiting processes Tech- 7 Data to drive business insights in real-time nology

Organi- Structure allowing for instant, 24h, multi-channel 8 zation response to reactive or proactive customer contact Organi- zation Full customer-centricity – customer service and 9 Locations engagement anywhere, anytime

Monitor Deloitte 2018 28 Your contacts

Dr. Thomas Schlaak Hilmar Franke Partner Director

Dammtorstr. 12 Dammtorstr. 12 20354 Hamburg 20354 Hamburg

Phone: +49 (0)40 32080 4894 Phone: +49 (0)40 32080 4993 E-mail: [email protected] E-mail: [email protected]

Kristina Brod Manager

Rosenheimer Platz 4 81669 München

Phone: +49 (0)89 29036 7977 E-mail: [email protected]

Monitor Deloitte 2018 29 This presentation contains general information only, and none of Deloitte Consulting GmbH or Deloitte Touche Tohmatsu Limited (“DTTL”), any of DTTL’s member firms, or any of the foregoing’s affiliates (collectively, the “Deloitte Network”) are, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. In particular this presentation cannot be used as a substitute for such professional advice. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this presentation. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/de/UeberUns for a more detailed description of DTTL and its member firms. Deloitte provides , risk advisory, tax, financial advisory and consulting services to public and private clients spanning multiple industries; legal advisory services in Germany are provided by Deloitte Legal. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s approximately 263,900 professionals are committed to making an impact that matters.