RAMBOLL SUSTAINABLE SOCIETY INITIATIVES...The growing economy and urban development in the Middle...

RAMBOLL SUSTAINABLE SOCIETY INITIATIVES “STRONGER TOGETHER”

Henrik Rosenberg Seiding

Senior Director,

Rambøll Management Consulting 1

OUR ORGANISATION

3

THE FIVE GLOBAL MEGATRENDS…

Demographic changes

Urbanisation Climate change &

Environmental problems

Natural resource shortages

Globalisation

Ageing population, migration as challenge and opportunity, increasing

demand on health services

Safe cities, sustainable urban

development, competition on job creation and

green growth

Degradation of ecosystem,

global warming conditions

Increasing demand, lack of

governance structures

Competition on societies and

business becomes more global

SUSTAINABLE SOCIETY INITIATIVES

• Our Sustainable Society Platform

• Liveable Cities

• Society Building

• Arctic 360

• 2016 Summary

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THE GROUP STRATEGY “STRONGER TOGETHER” IDENTIFIES SUSTAINABLE SOCIETIES AS A KEY STRATEGIC FOCUS AREA

WHY sustainable societies? • Ramboll has the brand equity and full suite of skills

necessary to deliver such services

• Greater cooperation between businesses will enable this focus

• These markets, while modest, are high margin and high growth in their own right

• Additionally such services can provide access to new international customers, and will motivate our team by reinforcing our core DNA

Develop and capitalise on our sustainable society platform

WHAT will we do? • To provide a focus in Sustainable Society,

leveraging our USP and allowing our business to grow

• Establish a reputation as world-leader in Sustainable Society

• Adjust our portfolio to serve this purpose, acquiring and reorganising internally where possible

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Further develop and test our sustainable cities offering

Use our strong public sector platform to build a position as a global leader within society- building

Bring a One Company offering to the Arctic 360

DEVELOP AND CAPITALISE ON OUR SUSTAINABLE SOCIETY PLATFORM AS “ONE COMPANY”

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SUSTAINABLE SOCIETIES - RAMBOLL HAS A UNIQUE COMBINED OFFERING

Society Economy Fair

Liveable

Physical

structures Environment

Resilient Coherent Liveable Cities

Society Building

Priorities Investments

Changes

Institutional

Capacity

Rules and

Regulations

Social

Coherence

Operations

Management

Competences

to Execute

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• Liveable Cities


• Arctic 360

• 2016 Summary

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OUR HERITAGE PROVIDES CREDIBILITY WHEN ADDRESSING CITIES WITH AMBITIONS TO BECOME MORE LIVEABLE

0

10

20

30

40

50

60

70

80

90

100

Index

Green city index - Top 30 from Europe and North America, 2012 Key

Ramboll Home Market

Other market

Source: Siemens

Four of the home market capitals of Ramboll are on the top 10

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THE MARKET IS ATTRACTIVE

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•The total turnover for city planning in listed cities is expected to be 1.7 billion DKK.

•New York accounts for 417 million DKK in expected turnover – equivalent to 24 % of total turnover of listed cities.

•London accounts for 387 million DKK – equivalent to 22 % of total turnover.

•Singapore accounts for 159 million DKK – equivalent to 9 % of total turnover.

Note: *Dubai GDP pr. cap. is based on real GDP 2010, **Hyderabad GDP pr. cap. is based on GDP (PPP) 2008.

Source: CIA Factbook 2012, PWC Report, Economic Outlook November 2009, reuters.com

Million DKK (2011)

115

60

70 Dubai*

Berlin

35

36 Stockholm

Oslo 37

Hyderabad** 51

Warsaw

83

Chicago

30

Helsinki 34

Amsterdam

Delhi

Ottawa 27

25 Copenhagen

Beijing 156

Singapore 159

London 387

New York 417

Total 1.746

Mumbai 24

50

51

32

9

40

25

35

35

7

68

45

47

60

1

34

49

2

34

Investments in city planning pr. capita in DKK.

Estimated City planning Turnover in selected Cities around the world

Ramboll presence

WHAT IS OUR LIVEABLE CITIES CONCEPT?

• Developing a sustainable city requires a holistic city strategy, clever planning and multiple solutions combined in a clever manner

• With our Sustainable Cities initiative we are primarily targeting the strategic consultancy level

• However, the strategic consultancy services should lead to additional engagements at both the planning and solutions levels

• Our strategic consultancy services are organised in the “Liveable Cities Lab” (LCL)

LIVEABLE CITIES LAB (LCL)

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LIVEABLE CITIES WORKSTREAMS

Initiation Projects & Marketing

LCL Research & Innovation

LCL Academy

Ramboll is a market leader within liveable city development

Ramboll is recognised for thought leadership within city development

Ramboll’s city development capacity is increased and customer relations are strengthened

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EXAMPLES OF INITIATION PROJECTS

Through selected initation projects the LCL will explore new and innovative ways of addressing customers and city challenges. The LCL will serve as a spearhead and facilitator and together with relevant Ramboll units position Ramboll towards the customers and bring in Ramboll services in new combinations. Examples:

Pilot Projects, Marketing & Business development

Grosvenor Estates

Ramboll UK has a framework contract with Grosvenor Estates, which owns large parts of central London (e.g. Mayfair and South Kensington). Ramboll has been asked to provide a series of “think pieces” that presents a “radical” approach to developing a sustainable estate. The LCL will join forces with RUK on this.

Tver Smart City

Together with Shell, Grundfoss, Danfoss, IKEA, ABB and others Ramboll has been asked to provide input to a new growth model for Russian cities with Tver as a pilot city. LCL will head up pilot studies on energy efficiency and LNG as transportation fuel

ME liveable cities concept - Souk of Life/ Oman

The growing economy and urban development in the Middle East is catering for a holistic sustainable approach. Together with international developers, the local Municipality and architects, the LCL, Atelier Dreiseitl/Ramboll will initiate a joint effort to cultural sensitive and environmental friendly spaces and infrastructures.

Revitalising the Finnish suburban landscape RFI, the municipalities of Espoo and Helsinki together with Aalto University will look for better socio-economic and environmental solutions to integrate fragile Finish suburban landscapes with infrastructures in order to make them more vibrant, attractive and liveable.

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REVENUE ON LIVEABLE CITIES IS ESTIMATED TO 800 MDKK IN 2016

320 368 424 487

279

9083

75

+30%

2016

803

106

120

2015

665

79 80

2014

561

58 60

2013

397

40 37

2012

• Estimated revenue in 2012 is 279 million DKK

• Forecasted revenue in 2016 is 803 million DK, i.e. an annual growth of 30%

Annual revenue, million DKK

"Do nothing" scenario, incl. 15% organic growth**

Strategic focus on cities, including Liveable Cities Lab

Atelier Dreiseitl

Downstream engineering revenue from city initiatives ”Classic”, big engineering projects* and services following from strategic city consultancy and Dreiseitl clients. E.g.: • Jakarta dug and cover tunnel • Copenhagen Cloud Burst

15 *Average contract size of downstream projects assumed to be 20 mDKK: 3 projects in year 2014, 4 in 2015, 6 in 2016.

**High-growth market also in the absence of AD acquisition and increased Ramboll focus

LCL PERFORMANCE INDICATORS 2013

Initiation Projects & Marketing

• 3 international projects in selected focus areas initiated

• 3-5 Marketing Initiatives delivered, including LCL film,

interviews and articles for Ramboll‘s website

• 5 keynotes at high profile city events

• 2 Marketing packages developed

• Academy

• 2-3 Academy events

Research and Innovation

• 1-2 research projects initiated (e.g. with University of

Singapore)

• Collaboration ties with 3 international universities

established

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• Liveable Cities


• Arctic 360

• 2016 Summary

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SOCIETY BUILDING CAN TAKE OUR PUBLIC SECTOR EXPERTISE GLOBAL

WHY Society building?

• It touches on nearly all aspects of government

• …and provides customers with a broad range of management consulting services

• Society building is based on one of our core strengths

Economics Rules,

regulations

Public policy welfare sectors

Ramboll Sectors

Social and Economic impacts Feasibility Studies

Planning and execution

• Management Consulting Services can form the integrator in the Ramboll service portfolio.

• Especially Socio Economics, Feasibility analyses, Social impacts and Legal Services are obvious levers.

• Specific focus on European Commission puts Ramboll in front of the policy making processes in Europe.

What is in focus?

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MARKET POTENTIAL WITHIN SOCIETY BUILDING

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Source: RMC Analysis

• The total market potential for services

for the European Commission, Socio-

economic analysis and Master planning

is estimated to be 2.6 billion DKK.

• Master planning (strategic advisory and

stakeholder management) is the largest

potential market with an estimated size

of 1.2 billion DKK.

Estimated market, million DKK

335

149

104

Total

2.590

Master planning (strategic advisory and stakeholder management)

1.178

Socio-economic analysis

European Commission

1.077

358

281

67 117

Other institutions

BUSINESS

CLIMATE

TRANSPORT

ENVIRONMENT

ENERGY

SOCIETY BUILDING WORK STREAMS

Go international with Public Sector Development Expand present market focus to new markets

Develop Society Building Offering Penetrate new domains – socio economics, feasibility analyses, master planning and capacity to execute

Centres of Excellence Establish well recognized Centres of Excellence on

Economics and Legal services

Management Consulting services present on all Ramboll Markets. Leading consultant for European Commission customers

Well recognized consultancy within master planning and infrastructure projects. Extending services to policy developments

Centres of Excellence on Economics and Legal services form a competence backbone for the entire Ramboll Group

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SOCIETY BUILDING PROJECT EXAMPLES

Policy level: Mid-term evaluation of the Intelligent Transport Systems Action Plan

The EU ITS Action Plan aims to address market failures by fostering the use of ICT in road transport while reconciling the growing mobility needs of citizens. The Ramboll evaluation helps to ensure that the Action Plan continues to address obstacles to the appropriate deployment of ITS in Europe.

Master planning: How can the city of Jeddah in Saudi Arabia become sustainable in 2030?

How can the City of Jeddah become one of the worlds most sustainable cities in 2030, and what are the environmental and social issues that Jeddah faces? The Ramboll analysis establishes a master plan for the most efficient ways of achieving the strategic goals. Counting in “saved” costs of degradation, needed investments and societal possibilities.

Policy level: Climate strategies for the city of Dresden

The Ramboll analysis estimated energy consumption costs today and described different scenarios for achieving the goal of 10 percent reduction in 2013. The analysis was subsequently used to develop policy choices

Society building: Social cohesion and developments as a part of city developments How can Gjellerup in Aarhus or Norrebro in Copenhagen become more coherent and secure? How can investments in buildings and infrastructure help achieve societal goals? Ramboll included stakeholder engagements, community hearings and inquiring in our approach. We “understood” the social dynamics in Norrebro based on anthropological methods. 21

17 1530

5260

134

+49%

2016

37

37

2015

112

30

30

2014

67

15

22

2013

34

11

7

2012

28

9 1

• Estimated revenue in 2012 is 28 MDKK (4 MEUR)

• Forecasted revenue 2016 is 134 MDKK (18 MEUR), i.e. an annual growth of 49%


EU operations - policy studies

Social Economic analyses and feasibility

Master planning, stakeholder engagements

IN SOCIETY BUILDING WE EXPECT A SIGNIFICANT REVENUE INCREASE

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THE RMC SUSTAINABLE SOCIETY DIVISION IS ALREADY EXCEEDING EXPECTATIONS

RESULTS The first 6 months of 2013 indicate that the Sustainable Society division is on a very good track. H1 2013 EBITA of 3.9 MDKK compared to a budget of 1.1 MDKK.

EBITA, Sustainable Society Division, tDKK

4.000

3.500

3.000

2.500

1.500

500

0

1.000

2.000

Jun Jul Aug Sep Oct Nov Jan May Apr Mar Feb

+265%

Dec Label

Budget

Actual

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SOCIETY BUILDING PERFORMANCE INDICATORS 2013

European Commission Market

• Strategic Framework Contracts on Transport, Energy,

Climate and Environment

• Conference on smart regulation and impact assessments

to be held by end 2013

Socio Economics

• Established Group wide Centre of Excellence

• Framework Contract for Danish Ministry of Finance

Master planning

• 1-2 large scale master planning projects outside Denmark

conducted.

• Conceptualisation and use of methods on stakeholder

engagements and institutional capacity building.

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• Liveable Cities


• Arctic 360

• 2016 Summary

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THE ARCTIC MARKET IS LARGE… Estimated investment in consulting services* pr. sector, billion DKK (including US and Canada)

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Other Energy

28-29

Oil/gas*

98-103

170-205

Total Society Building

6-9

Environment

14-24

Mining

10-22

Transport

13-19

*The percentage of the total investment dedicated to consulting services is based on the best estimates by Ramboll’s regional market experts.

ARCTIC MARKET OUTLOOK 2010-2020+

• The share of the total investments in consulting services is 169-205 billion DKK, that is 5-6% of total investments. • The main part of consulting services is expected to be within the Energy sector, mainly Oil and gas, with 98 – 103 billion DKK. • Large investments for consulting services in Society Building, Environment, Mining and Transport must also be expected. • *Not adjusted for a possible reduction in Oil & Gas investments (cf. “shale revolution” discussion)

… AND WE HAVE A STRONG PLATFORM IN THE REGION

A strong position in the Arctic region

• Ramboll is the leading consultancy in the Arctic

region

• We have 30+ years of experience designing

and implementing projects

• More than 400 Ramboll engineers and technical

and social scientists work in the North

• We have 21 offices in Arctic areas of Finland,

Sweden, Norway and Greenland

What we do

• We provide multi-disciplinary engineering and

management services

• We offer the full scope of the value chain: from

idea phase and strategy development to execution

of large-scale projects

• We facilitate environmentally and socially

responsible projects

• We use our Ramboll heritage to build a bridge

between projects, society, and regulators

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ARCTIC 360 WORK STREAMS

Arctic Account Programme

Arctic Competences

Ramboll is perceived as

thought leader for Arctic

development

Ramboll has an Arctic

customer portfolio with a

turnover > 700 mDKK in

2016

Ramboll’s Arctic

competences ensure

sustainable solutions

Arctic profiling

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Statoil

Narvik Havn

Statnett

Barents Freeway Forum

Kirkenes Havn

Tromsø Havn

Bodø Havn

Dalradian Resoruces

AP Møller Maersk

Danbor

Norway

LKAB

Boliden

Northland Resources

PEAB

Sweden

Talvivaara

Liikennevirasto

Ministry of Transport

Fingrid

Finland

London Mining

Arctic Base Supply (Danbor)

Nuukissiorfiit

Greenlandic Government

LNS Greenland

True North Games

Greenland

Vattenfall

Svenska Kraftnet

Statkraft

Energy

Statoil

Gassco

ENI

Maersk Drilling

Maersk Oil

Shell

Conoco Phillips

Oil&Gas

Greenlandic Government

Swedish Government

Norwegian Government

Finnish Government

Icelandic Government

European Commission

Man. Consult.

Note The program me includes existing customers, new Arctic customers, and customers new to the Arctic. Some are already Global or PBU accounts

ARCTIC PRIORITY CUSTOMERS

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ARCTIC 360 PROJECT EXAMPLES

Environmental Impact Assessment of the extension of the Talvivaara Mine, Finland

The goal of the expansion project is to utilize the significant ore deposit of the area and to secure the operational competitiveness of the mining company and the employment situation in the future. The mine expansion means new power lines, enlarged sulphurid acid plant, revised water management scheme and increased power production. Ramboll conducted EIA according to national legislation in preparation for the license to enlarge the mine.

Gällivare. An Arctic World Class City in Sweden

Gällivare is facing large changes, amongst other because of land requirements for the iron ore mining. Furthermore , 60% of Gällivare municipality stands under nature conservation and the city is the main gate to Laponia. Ramboll assists the municipality in preparing a strategic regional plan taking into consideration not only the development of the mining industry, but also how to further develop tourism and outdoor life. The work includes a comprehensive outreach and stakeholder dialogue program.

The Barents Freeway

Transport links in the Barents Region, which straddles northern Finland, Sweden, Norway, and Russia, have historically been developed from north to south with little consideration given to integrating networks across national borders. Ramboll is part of a consortium, which will pave the way for cohesive and optimised future development of the transport network in the region.

Environmental and social impact assessment of offshore drilling for Oil & Gas in Baffin Bay To date, Shell has completed a Site Hazards Survey (2011), a Shallow Coring Project (2012) and a 3D Seismic Survey (2012). Depending on the results of the 2012 activities, Shell may pursue exploratory drilling. Under the Greenlandic Minerals Act, exploration activities require ESIA. Ramboll assisted Shell in conducting the required research, environmental and social assessments for the application for a permit to start up exploratory drilling in 2014. 30

OUR ARCTIC REVENUE IN 2016 IS ESTIMATED TO APP. 700 MDKK.

31

+20%

2013

379

346

0 33

2012

330

330

0 0

87

199

2015

536

381

58

97

2014

449

363

29

57

687

401

2016

"Do nothing" baseline, incl. 5% organic growth

Increased revenue from Arctic focus

Growth in Arctic market size / new customers

• Estimated revenue in 2012 is 330 million DKK

• Forecasted revenue in 2016 is 687 million DKK, i.e. an annual growth of 20%


ARCTIC PERFORMANCE INDICATORS 2013

Gross Revenue + 6 million Euro

• Organic growth, 5% equivalent to +2 million Euro

• Arctic Focus, +4 million Euro

Profile

• Identification and analysis of stakeholders, priorities

• 10+20 Ramboll round table participants (among priority stakeholders)

• Increased news paper coverage in Nordic countries

Customers

• Arctic project relationship with 2 new customers in our priority customer group

• MS CRM tested and assessed

Capacity

• Signature projects described in RamLink in English

• Identified capacity gaps and plan for filling the gaps

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• Liveable Cities


• Arctic 360

• 2016 Summary

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BUILDING A POSITION AS THE LEADING SUSTAINABLE SOCIETY CONSULTANT

• In 2016 we want to be seen as the leading sustainable

society consultant by building a position as thought leader within sustainable cities, arctic and sustainable society building.

• This means we are widely recognised for the long term value we bring to society and communities around us by providing sustainable solutions to challenges posed by the megatrends.

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SUPPLEMENTS

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RAMBOLL SUSTAINABLE SOCIETY INITIATIVES...The growing economy and urban development in the Middle...

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