This presentation gives an overview of E&C's activities as an energy procurement consultant.

1. E&C Business
Presentation

2. CONTENT
About E&C Energy markets E&C’s approach
ePoint E&C’s portfolio
Market
information

3. 3
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4. About E&C

5. 5
Gas &
electricity
Focused on price, not on
consumption reduction
Consulting, not supplying,
trading or brokering
CLIENT
SUPPLIER
CONSULTANT
What do we do?
ENERGY PROCUREMENT CONSULTANCY

6. 6
Integrated international approach
Since its creation in 2005, E&C has grown organically, responding to the
request of our clients.

7. 7
Our job
Regulated market Second phase deregulationFirst phase deregulation
1990: UK &
Scandinavia
2000: Continental
Europe
Load profile management & Tariff check-up
Tenders & Negotiation
Risk management in volatile
commodity markets
2005
Energy
prices
time

8. E&C’s approach

9. 9

10. 10
Gazing into the mist
Short term analysis Long term analysis
OPPORTUNITY HUNTING
“What is the price doing right now?”
RISK MANAGEMENT
“How do I protect myself against
future price movements?”
MARKET ANALYSIS
STRATEGY
At which pace will you take a
rise or fall in energy prices?

11. 11
Our services
Data management ePoint
Portfolio consultancy
Portfolio management
Documentation Visualisation Information Communication
Contracting
• Organise and
execute RFP
• Contract
management
Risk
management
• Strategy
• Monitoring
Fixing /
unfixing advice
• Market
intelligence
commodity
• Direct contact
• Monitoring
Financial
controlling
• Market
intelligence grid
fees & taxes
• Budget analysis
• Bill validation
• Consumption
monitoring
Fixing / unfixing
decisions
Trade execution Quote validation

12. 12
Setting up a strategy
Falling cost of energy
= falling price of
product ?
(and to some extent
vice versa)
Is the energy cost a
high proportion
of the margin ?
MARKET RISK STRATEGY
• keep close to the market
average
• determine at what pace the
product prices react
• adapt the forward hedging
strategy to it
SURVIVAL STRATEGY
• keep close to the market
average
• ‘Lock in a margin’ when possible
YES
NO YES
BUDGET RISK STRATEGY
• aim at stabilizing budgets inside
the business’s cycles
NO

13. 13
Opportunity hunting
Compared to what the
market was prepared to
pay for a similar product,
how historically good is
today’s price?

14. 14
Opportunity hunting
Buy less
(or sell)
Buy more
Buy more
20
30
40
50
60
70
80
90
100
01/2008
04/2008
07/2008
10/2008
01/2009
04/2009
07/2009
10/2009
01/2010
04/2010
07/2010
10/2010
01/2011
04/2011
07/2011
10/2011
01/2012
04/2012
07/2012
10/2012
01/2013
04/2013
07/2013
10/2013
01/2014
04/2014
07/2014
10/2014
01/2015
€/MWh
Percentiles on EEX German Baseload YA (last 750 values)
Perc10 Perc25 Perc50 Perc75 Perc90 Y+1 Base

15. 15
Opportunity hunting
0-10%
10-25%
25-50%
50-75%
75-90%
90-100%
Very low Perc 10 Only 10% of all prices are low er than this level
Low Perc 25 Only 25% of all prices are low er than this level
Middle Perc 50 50% of all prices are low er than this level
High Perc 75 75% of all prices are low er than this level
Very high Perc 90 90% of all prices are low er than this level
N+1 N+2 N+3
100% 75% 50%
75% 50% 25%
50% 25% 0%
25% 0% 0%
0% 0% 0%
0% 0% 0%prices > VH (90%)
Actual prices
VL (10%) > prices
L (25%) > prices < VL (10%)
M (50%) > prices < L (25%)
H (75%) > prices < M (50%)
VH (90%) > prices < H (75%)
Example

16. 16
Regular meetings
1. Start meeting
2. Strategy
assessment
3. Strategy note
4. ePoint site
with monitoring
tools
5. Quarterly
meetings
Contract negotiations
Price (un)fixing action

17. 17
How about pricing?
Our contracts have:
- A clear description of fees
- Transparant fees
- No extra bills
Fixed yearly
fee
Ok for
next year?
Fixed yearly
fee
Fixed yearly
fee
Fixed yearly
fee
Fixed yearly
fee
Ok for
next year?
Ok for
next year?
Ok for
next year?

18. 18
More information?
Benedict De Meulemeester
Managing Director
m: +32 495 510 482