March 2 2014 One sector one target one

Before I start … … our key messages: 40% cost reduction can only be

The Dutch offshore wind market opens up new opportunities for all • Energy Agreement

Dutch offshore wind market: Status and outlook based on (projected) year of commercial operation

BUT this will only happen if the Levelised Cost of Electricity (LCOE) will reduce

We take our share. . . BUT we need your contribution as well to

However, providing a “contribution” is not sufficient: We have to act together! One sector,

Or to put it differently: All for one & one for all Restricted ©

AND we do need a master plan to avoid the Round 2 situation: Restricted

Focus is key to construct and operate the 3. 45 GW in the most

Assign Tenne. T as grid developer and owner: key arguments • 10 -15% LCOE

Preliminary business case review shows that the “Centralized Far Shore” scenario results in the

One sector, one target, and. . . One message Restricted © Siemens AG 2014

Thank you very much for your attention! Th an ky ou for yo ur

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Before I start … … our key messages: 40% cost reduction can only be achieved when all stakeholders act together Constructing 3. 45 GW offshore wind in less than a decade demands a master plan Tenne. T needs to be assigned as the grid developer and owner Restricted © Siemens AG 2014 All rights reserved. Page 2 Use round 2 permits as a steppingstone towards a centralized far shore roll-out

The Dutch offshore wind market opens up new opportunities for all • Energy Agreement (for sustainable growth) signed on September 6, 2013: • • A 14% renewable energy share in 2020 (today 4%) A 16% renewable energy share in 2023 1, 5% energy savings per year (or 100 PJ savings in 2020) 15. 000 new jobs • Wind will be key to reach above and the targets are: • Onshore: 6 GW to be operational in 2020 • Offshore: 4. 45 GW to be operational in 2023 • Today's installed total capacity: • Onshore: 2. 5 GW • Offshore: 1 GW (installed and under construction) • That is: we need to install another 3. 5 GW onshore and 3. 45 GW offshore Restricted © Siemens AG 2014 All rights reserved. Page 3

Dutch offshore wind market: Status and outlook based on (projected) year of commercial operation Gemini 150 x SWT-4. 0 -130 | 2 x 300 MW Energy Agreement September 6, 2013 OWEZ (2006) Westermeerwind 36 x Vestas V-90 | 108 MW 48 x SWT-3. 0 -108 | 144 MW PAWP (2008) 60 x Vestas V-80 | 120 MW Luchterduinen 600 43 x Vestas V-112 | 129 MW 2006 120 2007 2008 300 2016 2017 129 2009 2010 Restricted © Siemens AG 2014 All rights reserved. Page 4 900 450 144 108 700 800 2011 2012 2013 2014 2015 2018 2019 2020 2021 2022 2023

BUT this will only happen if the Levelised Cost of Electricity (LCOE) will reduce from today’s level to 100 EUR / MWh in 2023 Electricity from wind is still seen as expensive AND …. subsidies won’t last forever Restricted © Siemens AG 2014 All rights reserved. Page 5

We take our share. . . BUT we need your contribution as well to reach the target! Primary target: 40% by 2020*) CAPEX Offshore wind industry target: -40% in less than a decade OPEX 160 € / MWh + LCOE = Lifecycle electricity output 130 Restricted © Siemens AG 2014 All rights reserved. Page 6 Larger rotor blades (lifecycle electricity output) 100 2010 *) http: //www. nwea. nl/greendeal Optimize resource Direct drive (CAPEX) productivity (OPEX) 2020

Focus is key to construct and operate the 3. 45 GW in the most cost-efficient way • Change mindset: from project-2 -project to portfolio thinking • Start with the desired end situation in 2023 • Assign Tenne. T as grid developer and owner • Use round 2 permits as a steppingstone towards a centralized far shore roll-out • Select “IJmuiden ver” area as the main focus area • Nearshore area is a nice-2 -have for future projects Restricted © Siemens AG 2014 All rights reserved. Page 10 Max 1 GW Maximum learnings Sharing grid connection cost O&M synergies No EIA performed Public resistance Limited space Conflict with Oil & Gas industry Max 1 -1, 5 GW Located North East of Belgian projects

Assign Tenne. T as grid developer and owner: key arguments • 10 -15% LCOE reduction: • Cost of capital • CAPEX • OPEX • Speed • International alignment • Cross-project benefits • Enabling exploring synergies between turbines and grid • Lessons learned from 6. 2 GW Restricted © Siemens AG 2014 All rights reserved. Page 11 Financing by TSO: -33% Standardization: Depreciation period: 40 years -10% Centralized O&M: -10% Purchasing power: -10% Cable redundancy: = 4% more yield Less dune crossings: -10%

Preliminary business case review shows that the “Centralized Far Shore” scenario results in the required 40% cost reduction Base case Scenario A Scenario B IJmuiden Ver Decentralized “cf. round 2” Centralized Offshore Centralized Far Shore Island for O&M and substation CAPEX 100 84 90 OPEX 100 90 80 AEP 100 112 120 LCOE 100 62 59 Name Redundancy and standardization of cables Industrialization and standardization of cables Depreciation electrical infrastructure in 40 years Restricted © Siemens AG 2014 All rights reserved. Page 12 Higher wind speed