COLLABORATIVE INNOVATION. Vienna, 3rd November, 2015 European Utility Week

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1 COLLABORATIVE INNOVATION Vienna, 3rd November, 2015 European Utility Week

2 1 : AN INNOVATION COMPANY

3 INNOVATIVE GENE STRONG VIEW CUSTOMER FOCUSSED has long been at the forefront of innovation, aspiring to bring light into all households. Since our foundation, has continued to develop innovative products. focus on innovation is one of the strongest in the European utility sector. Innovation lies at the heart of ' s strategy. (European School of Management and Technology (ESMT) Innovation Index) In a fast- changing environment uses a customer base of 23 million as a solid foundation to deliver new products and services. 1. An innovation company

4 WORLD' S LONGEST SUPERCONDUCTOR CABLE (ESSEN) SMART HOME SOLUTIONS SINCE 2011 T O D THE LEADING OPERATOR OF CHARGING STATIONS A Y FLAT- RATE ELECTRICITY (PILOT) Naturstrom Flatrate SYSTEM SOLUTIONS FOR THE ' ENERGIEWENDE' BATTERY APPLICATIONS 1. An innovation company

5 NEW FIELDS OF INNOVATION EMERGE FROM IT/DATA WITH POTENTIAL FOR NEW BUSINESS DEVELOPMENT CHANGES IN THE ENERGY SECTOR NECESSITATE INNOVATIVE SOLUTIONS: Shrinking market for conventional generation Government incentives Decreasing costs for energy storage (batteries) More demanding customers Changing role of utilities INTERNET OF THINGS & INDUSTRY 4.0: DIGITAL MARKET INTEGRATION OF NEW ENERGY AND CONSUMER BUSINESS MORE AND MORE BUSINESS MODELS ARE DISRUPTED BY DIGITAL DEVELOPMENTS IN CONSUMER/IT INDUSTRY, E.G.: Uber Airbnb Tesla Banks are closing local branches due to growing online banking 1. An innovation company

6 2 MOVING INNOVATION INTO THE HEART OF STRATEGY

7 O U R G O A L S The creation of an environment where new pilots and models can be developed rapidly. First successful launches of ideas into start- up companies. Innovation as a mindset and driver of bottom- line success is anchored in all operational businesses. Our first significant results will be delivered. A material contribution to revenues will be generated from products new to 2. Moving innovation into the heart of strategy

8 3 TARGETED INNOVATION

9 WHAT THE FUTURE OF INNOVATION L O O K S L I K E A T R W E STRATEGIC FOCUS TOPICS BUSINESS MODEL INNOVATION RAPID IMPLEMENTATION PARTNERSHIPS AND NETWORKS ONE VIEW ON INNOVATION Do: Achieve change at the core of ' s business. Do: Focus on clear customer centric objectives. Do: Create a culture that lets realise ideas fast. Do: Collaborate, both inside and outside. Do: Share language and methods to create one focussed culture and DNA. Don t: Get distracted by everything that comes along. Don t: Focus on technological innovation. Don t: Strive for perfection before going to market. Don t: Isolate and invent on their own. Don t: Get confused by many different views. 3. Targeted innovation

10 DEFINING ' S FOCUS TOPICS SMART & CONNECTED DISRUPTIVE DIGITAL URBAN CONCEPTS BIG DATA Services that digitise and improve energy usage for homes and businesses. Technologies and apps that let interact digitally with internal and external customers. Products and services focussing on mobility, logistics, communication and energy to improve the quality of life for people living in urban areas. Advanced analytics on massive datasets that underpin all our business decisions. LAUNCHED IN 2014 TO BE SET UP IN 2015 HORIZONTAL ENABLER 3. Targeted innovation

11 4 LAYING THE FOUNDATION FOR THE FUTURE

12 INNOVATION HUBS MULTIPLE APPROACHES TO INNOVATION CORPORATE VENTURE CAPITAL CORPORATE START-UPS PARTNERSHIPS & SMALL SCALE ACQUISITIONS BUSINESS NETWORK

13 S C O U T F O R I D E A S I N E X I S T I N G INNOVATION HUBS SILICON VALLEY BERLIN ISRAEL The original innovation hotspot, where billion dollar ideas become billion dollar realities. This area is at the centre of cultural change. Europe s new startup capital. Fresh thinking and hungry young businesses thrive in this culture. Known as the startup nation, Israel produces more start- up businesses per capita than anywhere else on the planet. 4. Laying the foundation for the future

14 CREATING CORPORATE START- UPS, FIRST COMPANIES T O B E LAUNCHED I N EASY OPTIMIZ E LEMONBEAT The vision: First commercial platform for peer- to- peer supply among power prosumers. Easy Optimize starts with a first device to optimise consumer energy generation, storage and consumption. Pilot successful: market rollout is in progress. Secure and deviceindependent communication protocol for the internet of things. Technology is developed for use in SmartHome devices. Spin- off to develop business models based on Lemonbeat. 4. Laying the foundation for the future

15 BERLIN - ESSEN ENHANCING S IDEAS WITH STRATEGIC PARTNERSHIPS easyoptimize InnogyVentureCapital recently partnered with AXA to develop a water- protection system in smart houses. USA With Schneider Electric, cooperated in the area of e- mobility, sharing technology and resources. Large international customers will benefit from joint products. Silicon Valley 4. Laying the foundation for the future ISRAEL

16 S VISION The long- term goal is to transform the business, hard- coding innovation into the DNA of everything it does. By realising this vision, aims to become the innovation leader of the future energy system. 4. Laying the foundation for the future

17 THANK YOU Dr. Inken Braunschmidt

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