Introduction to E.ON Inhouse Consulting (ECON) February 2014
E.ON Inhouse Consulting is a leader in global energy consulting E.ON Inhouse Consulting (ECON) value proposition Advising top-management of a leading global energy company Solving complex problems along the energy value chain Comprising vast external consulting experience and capabilities Offering an exciting path for personal growth and development Aligning a strategy consulting job with a long-term industry career 2
ECON is part of the E.ON Group, one of the world s leading energy companies E.ON facts & figures E.ON geographic footprint HQ: Düsseldorf, Germany Sales: EUR 132 billion (2012) Employees: 72,000 (2012) Focus: Cleaner & better energy ECON has ~80 consultants, located in Essen, and is advising E.ON on nearly all global challenges Founding of E.ON through merger of VEBA and VIAG Start of international activities (Russia & Benelux) Biggest European utilities company (in terms of sales) Further extension of international activities (Brazil & Turkey) 2000 2002 2004 2006 2008 2010 2012 Extension of international activities (Spain, France & Italy) Announced new strategy: Cleaner & better energy 3
ECON today five things to remember Focus Scale Capabilities High end of the consulting services spectrum as an alternative to/ in full competition with external top management consultancies >70% market share in high end consulting segment at E.ON ~ 80 consultants; amongst the leading inhouse consulting firms in Europe Unique combination of deep consulting, energy and functional expertise and in-depth understanding of E.ON Incubator to develop new, high demand capabilities for E.ON High end consulting segment No 1 top mgmt consultant at E.ON Looking ahead, incubator Quality Top quality, on par with external top management consulting companies (systematic reviews) Team with >250 years of top management consulting experience On par with top mgmt consultants Value add Sustainably realising a high value add 1) for E.ON by avoiding external cash out and by protecting E.ON s intellectual capital > 40m cash out avoided p.a. 1) Value add = Cash out avoided
ECON delivers consulting in the high end spectrum in full competition with the top external consultancies ECON focus Strategy Development Conceptual Design Implementation Focus ECON: "High end" Tier I: e.g. McK, BCG, Booz, Bain Tier II: Few strategy boutiques "Big Four" (E&Y, Deloitte, KPMG, PWC) Remaining / others: Non-strategy boutiques 5
ECON s capabilities are a unique combination of consulting, energy, functional and E.ON expertise ECON core capabilities CORE CONSULTING CAPABILITIES Problem Structuring Analytics & Problem Solving Project & Program Management Business Communication IN-DEPTH INDUSTRY KNOWLEDGE Trading & Risk Management Generation & Renewables Gas Mid & Upstream Distribution Sales Innovation & New Technologies DEEP FUNCTIONAL EXPERTISE Strategy Development Operational Excellence & Lean CFO Agenda 1) Organisation, HR & Change Sourcing 1) incl. steering models, shared services, working capital,, risk mgmt 6
ECON s strategy is a promise to realize high value add, deliver superior quality and develop top talent ECON strategic goals HIGH (FINANCIAL) VALUE ADD SUPERIOR QUALITY TOP TALENT Leverage our scale and portfolio of capability assets to serve E.ON s business leaders as preferred provider of management consulting services Adhere to the highest professional services standards and exemplify an uncompromised quality focus via rigorous performance monitoring and training Excite our people and develop future business leaders for E.ON through active apprenticeship, stretching and entrepreneurial opportunities 7
ECON is well-represented with projects across E.ON s management units as well as functional topics Project Split By Management Unit Support Functions 10% 35% Global Units Distribution Value Chain Sales New Technologies 15% 10% 10% Conv. Generation & Renewables 15% 15% 35% Functional 1) Trading / Risk Mgmt. / Optimization Group Management 42% 14% Regional Units Strategy By Topic 35% 50% Operations & Lean 15% 1) e.g. Finance, HR, Procurement Organization, HR & Change 8
and is the preferred advisor of E.ON s top-management across businesses Selected ECON projects and clients Group Management: Board Steering & Leadership @ E.ON Generation: Board Lean Transformation Power Plants Trading: Board Trading Integration Concept Regional Units: Head of Strategy Smart Home Strategy Global Gas: Board Operating Model LNG Trading Renewables: Board Global Biomass Strategy Group Management: Board E.ON 2.0 Restructuring Program Regional Units: Board Smart Grid Strategy Generation: Board Internationalization of Maintenance Group Technology & Innovation: Head of Innovation Center Global Power Storage Business Models 9
Our projects create value for E.ON Group, with a strong focus on business and strategy development Exemplary ECON projects Biomass Strategy Client and setup Head of Biomass, E.ON Climate & Renewables 3 consultants 5 months Context and objective Key challenges Problem solution Develop biomass assets and sourcing strategy Large-scale biomass still an emerging market Complex regulatory frameworks Select approach to a set of biomass options, including conversions and new builds Power Storage Business Models Head of E.ON Research & Development Center 4 consultants 3 months Developing and valuing various business models for power storage tech s Vast content complexity (40 business models, 22 technologies) Few business already made Hypothesizing on business models Specific definition of required info Testing via expert interviews 10
Our people are a mix of senior professionals with strong top mgmt. consulting background and young professionals ECON workforce by professional background Total: 80 consultants Most common prior employers University 41% 11% Industry 48% Consulting Bain & Company Booz & Company Boston Consulting Group McKinsey & Company Roland Berger Other international strategy boutiques Ø time spent in consulting prior to ECON: 5 years 11
Each consultant has a clear development path within ECON and exciting growth opportunities beyond ECON ECON organization E.ON line organization 2.5-3 years 3-4 years MTM 1) Principal Direct access to E.ON s Executive positions via Executive Pools 2 2.5 years 2-3 years Project Manager Senior Project Consultant Project Consultant Direct access to E.ON s talent positions via ECON network and reputation 1) Management Team Member (Partner level) 12
Our consultants are experiencing ECON s value proposition on a daily basis ECON consultant testimonials Giorgio Position at ECON Management Team Member Consulting experience 12 years with McKinsey & Co. For me ECON is the perfect place to be after my relatively long career with McKinsey: I can continue doing what I like to do consulting I am part of a team that shares and lives a very strong set of values (client, people, performance) I can concentrate on an industry that I like deeply I work for a top tier utility in the world (my client and my company at the same time!) Through ECON, I can look for a smoother transition to a line position after knowing better the organization I joined ECON as I wanted to get into a driver-seat-position in the change process the energy business is currently in. One of the things I like best about ECON vs. external strategy consulting is that here I can take my fact-based suggestions directly to my clients. Our Management Team Members are there for me if I need their advice, but very much rely on the work I am doing. This also drives the sustainable lifestyle I am having here my wife and son are thankful for that as much as I am! Sebastian Position at ECON Principal Consulting experience 5 years with Bain & Company Annika Position at ECON Senior Project Consultant Consulting experience 3 years with Booz & Company I chose to join ECON mainly for three reasons: I wanted to focus on an industry sector which is important for the future I wanted to continue doing challenging and interesting project work I wanted a work/life balance that allows me to pursue other hobbies of mine and see more often my friends and family On top of that I got ECON colleagues that are qualified and inspiring, also "energy" loving and fun people to work with. 13
ECON provides a stepping stone for a great career Examples of transitions from ECON to E.ON management positions Dr. Sopna Sury Philipp Schaffrath Andrea Nierfeld Ines Bergmann Previous role at ECON Member of the Management Team Principal Project Manager Senior Project Consultant Current position at E.ON Director Business Development & Business Affairs Head of Global Sourcing, Key Supplier and Claim Management Project Manager Group HR Strategy & Projects Manager Technology & Innovation, Innovation Scouting & Co-Investments E.ON Climate & Renewables E.ON SE Procurement E.ON SE E.ON SE Transition from ECON to E.ON line position ECON provided the perfect opportunity to quickly build up a strong network and group-wide visibility. Due to my work at ECON, I was considered as a trusted advisor by the senior management of Procurement. At ECON I was leading challenging projects and got the chance to build up a strong, international network. ECON enabled me to make an educated and targeted decision regarding my next career step. 14
ECON senior team: >250 years of top management consulting experience Example ECON Management Team (excluding managing director) Martin Endress Giorgio Boneschi Dr. Malte Kuss Dr. Robert Kirchner Jasper Koch Lisa Norcross BCG 10+ years of experience McKinsey 13+ years of experience Booz & Co 11+ years of experience McKinsey 11+ years of experience BCG 13+ years of experience McKinsey 18+ years of experience Focus on Sales & Marketing Focus on RU UK, Sourcing & Regulation Focus on Finance, & Controlling, T&I & Renewables Senior Team = Management Team Members, Principals, Senior Project Managers 15 Focus on Trading, Risk Management, Midstream Focus on Distribution, RU Sweden & Lean Focus on Lean Principals and Project Managers with top management consulting backgrounds (e.g. ex McKinsey, BCG, Booz) and deep expertise in different energy-related and functional topics
Thus, ECON builds on the principles of a top management consultancy, with differences in some essential aspects ECON business model versus external top management consultancies People Development Capabilities Culture What is identical Thought leadership Applying foresight built on - Deep capabilities - Experience - Creativity High quality focus "Client first" mindset Obligation to dissent Structured career path Strong focus on capability building/ training Performance culture/regular and detailed performance reviews What distinguishes ECON Closer to the source, in-depth knowledge of E.ON s business processes Uncompromised focus on creating sustainable value for E.ON Group Stronger topical identification with project and client Lack of "big name syndrome" trust, acceptance, mandate to challenge more difficult to obtain Not a long-term consultant career offer, systematic placement on E.ON line/executive positions Additional development of managerial skills 16
We employ a pragmatic and transparent recruiting approach ECON recruiting Key qualification Outstanding academics Strong problemsolving capabilities Highly advanced analytical and communication skills Team and entrepreneurial orientation Strategy consulting experience beneficial but not a prerequisite ECON recruiting path Application Interviewing Decision Pragmatic application CV All transcripts and references Please apply online on www.eon.jobs Three case studybased interviews and one case presentation Problem-solving skills Team & client leadership Personal profile Motivation Timely decision Response within 48 hours Detailed feedback Concrete offer Flexible starting date 17
We are very much looking forward to get in touch with you! Getting in touch with ECON Your central HR contact Rebekka Beyer Recruiting Specialist & HR Management E.ON Inhouse Consulting Brüsseler Platz 1 45131 Essen Germany +49 (201) 184 7951 18
E.ON Inhouse Consulting GmbH Brüsseler Platz 1 45131 Essen www.eon.com Managing Director: Anja-Isabel Dotzenrath Registered Office: Essen District Court: Essen HRB 24332 This document was created for the exclusive use of our customers. Without the basic detail analysis and the oral lecture it is not complete. Transfer to third parties is only allowed if E.ON Inhouse Consulting GmbH explicitly assents.