A draft on the defences. Statkraft group.

Slide numbers !
S1 Order of members: justification ?
Etc ?

Slide #1
Introduce Statkraft
1. Who is Statkraft ?
Statkraft is a European generator of renewable energy that was founded in Norway in 1895. Today, it
operates in more than 20 countries. In 2022, Statkraft produced 60.2 TWh of energy having an
installed capacity of 19.1 GW and up to 90% of the energy is by hydropower. Its gross operating
revenue (turnover) is 14,789 billion euros. Round up this number.

Slide #2
WHAT DO THEY DO?
Energy sources
Statkraft develops and operates renewable energy assets generating:
1) Hydro power (largest producer in Europe) with 363 hydropower plants in the world
2) Wind power (the largest owner and operator of onshore wind power assets in the Nordics)
with 63 wind farms worldwide
3) Solar power (a leading solar developer in the European solar market) with 118 of solar
plants
4) Gas and biomass assets with 7 power plants in Germany
5) District heating: Statkraft uses excess heat to heat and cool buildings, towns, cities across
the Nordic region.

Slide #3
Business activities:
Statkraft produces, buys, and sells energy. The company focuses on B2B activities, it provides
businesses with risk management consultancy and helps them become carbon neutral.
- Power generation
- Power Purchase/Selling - company buys power from various producers and sells power to
commercials and industrials.
- Consulting - Statkraft provides external consultations - to power producers and consumers.
(For example, how to make one’s factory more sustainable or where to build a power plant
(in case of producers))
- Storage
- Household Heating and cooling (in Norway and Sweden)1

Hydropower 89.5%
Wind power 7.2%
gas-fired + Biomass + solar power 3.3%

1
https://www.statkraft.com/what-we-offer/district-heating/
Some comments for us: - hydropower mostly, Power Purchase Agreements (need to be able to
explain this), energy trading, risk management, they come up with solutions for different consumers

Slide #4
2. Who are the consumers
Statkraft operates in the B2G sector and mostly in B2B. The company’s B2B customers are
representatives of different economic sectors. For example, the company’s customers include food
and drink producers, vehicle automotive brands, telecommunications companies, cement
manufacturers, energy suppliers, oil refining companies, automotive suppliers, circular materials
technology companies, and chemicals companies. Working with companies in this variety of fields
Statkraft provides a variety of offers like: plant investment, power purchase agreements, and power
reselling mediation.

Vodafone: The contract includes 500,000 MWh of wind and hydropower generation to reduce CO2
emissions. ​
Mercedes- Ben: A development of a complete 24/7 energy supply system for factories with a special
mix of solar, wind and hydro power at the same time. ​

In the B2G sector, Statkraft has established State contracts with Ireland for one wind and three solar
projects in Ireland, which will produce a total of 360 MW of clean energy. As you don’t have much to
say on B2G, say it but give up the slide. However you could detail a bit the types of deal they make
with one or two Business customers

Slide #5
Competitive advantage over the rivalries
In quite a fierce competitive environment, being not the biggest company in the sector, Statkraft has
its great advantages over the rivalries.
- Since 1895 it has produced renewable energy and it is almost 100% renewable - which very
much aligns with its mission which is quite clear and strong. Moreover, the company does
not require transition unlike its competitors. It can focus on growth.
- The very distinguishing fact is that Statkraft is a state owned company which cannot be
neither bought nor acquired. This provides protection on the legal level from other big
players, like Engie, EDF, E.ON (Germany) or Iberdrola (Spain)
- Statkrfat is a hydropower expert, skilled in this area since the 19th century
Notes for us

Slide #6
Positioning VS Position
Some notes for us

CONCLUSION

Statkraft is a highly profitable company.

If we take into account the ratio of productivity and profit, this is especially significant.

For example, income of EDF RE 2.15 billion Euros with an installed capacity of 14MW

Whereas, the net profit of Statkraft is 2.5 billion euros with an installed capacity of 19.1 MW.

This ratio is truly impressive and, in addition to high profitability, quantifies the company's ability to
invest in development.

Among the factors behind Statkraft's success is the company's high expertise in the use of
hydropower resources.

As well as the features of this energy source, for example:

- hydroelectric power plants have a long service life and require minimal maintenance compared to
other energy sources

- hydropower systems can store energy in reservoirs, making them more flexible than other energy
sources such as solar or wind power.

6. Why we gave these recommendations with our analysis

● To focus on acquiring small companies that develop new technologies, and larger companies
to attain knowledge on renewable energy assets and develop their overall skills. That is why
the establishment of Statkraft Ventures was a strategic choice (Because their competitors do
it)
 ● It seems that this recommendation aligns with the creation of Statkraft venture in 2015

● Assess the risks associated with the acquisition and conduct sufficient due diligence on the
companies to avoid scandals and money loss as it was in a corruption case from the acquired
Brazil company Desenvix.
● The international development of the company may be limited by Norwegian governance.
However, we acknowledge that this is inherent to a state-owned company. Through an
excellent CSR policy, Stakraft can build and strengthen its trustworthiness. Thus, Statkraft
would transform this limitation into a strength. WE THINK THIS BECAUSE: a good CSR policy
makes a company more trustworthy and makes their reputation better - it shows that the
customers can trust them even though the governance may not be very international

7. (ORALLY) to finish
Very hard but we worked very well together
Time management was bad
To be fair … we should've been more aggressive with getting an interview

- Worked well as a team however it took us a long time to write a draft that answered basic
questions (time management)​
- Failed to have a meeting with Statkraft even though they have offices in Paris ​
- We should have been more forceful with emails/calls etc​
- Relied heavily on Statkraft’s annual reports and the information on the website ​
- However – as outlined in the report – many of the news articles we found on Statkraft also
referenced their annual report​
​
Overall, we are very happy with our report. We think it is an interesting read that is as neutral and
investigative as possible, and it offers a global analysis of a successful company who excels in the
energy market​. You can say that you have learnt a lot and that it makes you happy but you cannot say
that your report is good…