Engineering Energy& Utilities

www.eng.it1

ENGINEERINGand the Energy & Utilities Division

www.eng.it2

Agenda

The Engineering GroupThe Engineering Group11

Engineering’s E&U DivisionEngineering’s E&U Division22

Net@SUITE, the solution for the E&U MarketNet@SUITE, the solution for the E&U Market33

www.eng.it3

The Engineering Group

The first Italian player in the ICT Italian market, with a market share of 7%

37 Offices

More than 6.600 Employees

More than 1.400 Project based contracted workforce

More than 800 Clients

More than 730 million € of revenues in 2008

www.eng.it4

The Engineering Group

Solutions for:P.A. HealthcareFinance IndustryTlc Energy&Utility

www.eng.it5

The Ownership

Leader in the Italian market since 1980

Since 2001, Engineering is listed in Milan Stock Exchange’s All Stars Segment Index (companies with high growth potential)

Market22%

Baillie Gifford Overseas Limited

3%

Generali Investments

Italy SGR2%

Bestinver Gestion

5% Founders68%

www.eng.it6

2000 2003Year

Total revenues

182.7

276.1

Other revenues

(Ml of €)2007

709

Engineering’s Growth

2008

732

www.eng.it7

The Engineering Group - Italian ICT Market Ranking

Data from : Computerworld Italia 2009 – in mln €

1° Italian System Integrator

5° Player in the Italian S&S Market

7% Market share

www.eng.it8

Business Lines & Markets

Software solutions

Outsourcing

System Integration and Consultancy

Att

ivit

à

8%

34%58%

System Integration & Consultancy

Outsourcing

Software solutions

Source: Engineering 2008

Fin

ance

Ind

ust

ry

Tlc

En

erg

y &

Uti

litie

s

Hel

thca

re

Pu

blic

Ad

min

istr

atio

n

Markets

Finance25%

Helthcare20,1%

Tlc14,2%

Industriy 14,8%

Public Administration

14,0%

Energy & Utilities11,9%

www.eng.it9

Focus Abroad

Argentina (Telecom Personal, Diasorin)Australia (IVECO, ENI)Austria (Coca Cola HBC)Belgium (Kraft)Brazil (TIM Celular)Congo (ENI)Czech Republic (Coca Cola HBC)Denmark (Cementir)Egypt (ENI)France (AO International, Autogrill, IKEA, FIAT)Germany (Kraft, Eurofighter)Greece (Atos Origin Hellas, BAE Systems)Hungary (Coca Cola HBC)Portugal (Whirlpool)Poland (Whirlpool, FIAT, Selenia)Romania (Whirlpool)

Russia (Whirlpool)Serbia (Telecom Srbija, Promonte GSM)Slovakia (Whirlpool, ENEL)Spain (Whirlpool, Atos Origin Spain, Canon, FIAT)Sweden (IKEA)Switzerland (Atos Origin Schweiz)Turkey (AVEA, FIAT)United States (ENI)United Kingdom (FIAT, Ferrero)Venezuela (Digitel)

9,300

Italy3,100

00

UK 6,500

0045 Million €Current RevenuesFrom Int.l Operations

www.eng.it10

Engineering’s Top Clients per Market Segment

Finanza PAC PAL

Telco Industria E&U

www.eng.it11

Net@SUITE, the solution for the E&U MarketNet@SUITE, the solution for the E&U Market

Agenda

The Engineering GroupThe Engineering Group11

The Engineering’s E&U DivisionThe Engineering’s E&U Division22

33

www.eng.it12

The Leader in the Italian Energy&Utilities market

Revenues (2008) 57 Ml Euros

Expected revenues 2009 80 Ml Euros

Investment (3 years) 10 Ml Euros

IT&Business Specialists + 850

Market Experience 28 years

Bills produced (2007) 40.000.000

Engineering Energy & Utilities Division

Clients + 200

Gas 123

Water 85

Electricity 29

Waste 29

Meters managed 17.600.000

Gas 11.130.000 (65,5%)

EE 2.170.000 (48,8%)*

Water 4.370.000 (22,4%)

(*) Excluding ENEL

www.eng.it13

E&U Division’s Top Clients

www.eng.it14

Engineering’s value chain

CustomerService Outsourcing

SystemIntegration

ProductsConsulting

850 specialistsfully focused on the Energy & Utility market

Energy & Utilities Division

www.eng.it15

E&U Division: strengths

• Ownership of the vertical CIS solution leader in the Italian E&U market,, with an investment of 10 million euros over three

years

• Market understanding and responsiveness. A Business Unit focused on tracking regulatory changes in order to deliver IT enabled operational performance

• Specific technology and application know-how (more than 200 references in the Utilities sector)

• Focus on the Utilities market

• System Integration expertise with third party products (e.g. Siebel, SAP, IBM).

• Ability to execute and flexible deployment project methodology

www.eng.it16

Net@SUITE, the solution for the E&U MarketNet@SUITE, the solution for the E&U Market

Agenda

33

The Engineering GroupThe Engineering Group11

Engineering’s E&U DivisionEngineering’s E&U Division22

www.eng.it17

Functional Footprint

METERING

BILLING

Acquisition planning

CREDIT

Management

Products &Pricing

Sales cycle

Cashing

Credit collection

RELATIONAL CRM

OPERATIONAL CRM

Multi-channelcontact

ANALYTICAL CRM

Contactsupport

CustomerService

SalesManagement

Business Intelligence & Reporting

MarketingManagement

Modular Architecture

- enhanced integration

- higher flexibility

www.eng.it18

Gartner – CIS Magic Quadrant

http://mediaproducts.gartner.com/reprints/engineering/article1/article1.html

Gruppo Engineering

entered this year the

Gartner’s Magic Quadrant

for CIS product for

Energy& Utilities Market

Net@SUITE is one of the Top 10

CIS product in the World

www.eng.it19

Sales - Functional Footprint

Acquisition planning

Acquisition planning ManagementManagement

METERING

SP

EC

IFIC

FE

AT

UR

ES

CashingCashing DebtDebtProducts & Pricing

Products & Pricing Billing & InvoicingBilling & Invoicing

BILLING CREDIT

Correction

Printing/Ebills

Tax reporting

Automatic cashing management

Domicile adjustment

Manual cashing management

Meter Reading

Delinquencies & Anomalies mgt

ConsumptionProfiles

Reading groupingInstallments /

Extensions

Interest and arrears

AccrualsAllocations

Transport fees

Billing test

Billing check

Final invoicing

Data import / Estimates

Reading validation Accounting flow

Dunningclosure

Debt managementAdjustments

ReadjustmentsPlanning /

Reading calendar

Estimates /Forecasts

Dispute management

Free market /VAS

Catalogue /Products

Tariffs

Data flows for Accounting

Troubleshooting

Billing Schedule

Delivery management

Components /Prices

Credit score

Billing simulation

Distribution invoice balance

Internet payments

www.eng.it20

Distribution - Functional Footprint

BILLING

CO

MM

ON

FE

AT

UR

E

OPERATIONS CRM

GA

SE

E

Service Billing

Compliance to regulations

Delivery PointManagement

Contracted work management

Self service portalEstimate Billing

Safety&Emergency

Cashing

EDI data generation/acquisition

Agenda

EstimateManagement

Compliance to laws

Field ServiceAutomation

Maintenance

Mercurio

Customer Requestmanagement

Communicationsto Authorities

Transport Billing

Load profilingMulti-hour licenses

Compliance to service std code

Interval meter reading

Customer Satisfaction code

Credit Mgt

Consumption allocation

ConsumptionProfiles

DP dashboard

Distribution Billing

Pipeline management

Meter Management

Tariffs

Adjustments &Readjustments

Street directory

Supply management

Components /Prices

Meter Reads Billing

Automated meter reading

Automated meter management

METERING

Correction

Meter ReadingConsumption

Profiles

Reading grouping

Data import / Estimates

Reading validation

Planning /Reading calendar

Estimates /Forecasts

www.eng.it21

Functional Footprint

Multi-channel contact

Multi-channel contact Contact supportContact support

Relational CRM

SP

EC

IFIC

FE

AT

UR

ES

Business Intelligence & ReportingBusiness Intelligence & ReportingCustomerService

CustomerService

Operational CRM Analytical CRM

SalesManagement

SalesManagement

MarketingManagement

MarketingManagement

Web Portal

Call Center Margin analysis

Front-Office

On line estimates

Customer Request management

On line paymentsAgenda integration

Customer management

Client/Prospect segmentation

Pricelists and promos

Reporting by channel

Contract reporting

DynamicPricing and

discount mgt

Contract management

E-mail

FAQ

Offering simulation

Agent performance Reporting

Campaign progress

Campaign management

Scripting

Document management

Prospect management

CrossSelling

Offering management

Customer portfolio management

Sales force management

Sms

Palmtops

Alert and messages

Fax

www.eng.it22

SOA – Business benefits

Bottom-Line Benefits (Cost Savings)

• High integrability and scalability

• Simplified modifications

• Support for regulatory compliance requirements: SOA approaches help to reduce the cost of supporting ongoing, externally driven and typically unplanned changes.

Top-Line Benefits (Revenue Generation)

• Greater adaptability of applications to meet changing business requirements

• Service delivery: the IT systems supporting these processes are more agile.

• Incremental deployment of new business services

• Enabling mergers. SOA approach enables organizations to make strategic decisions based on value to the business, not the limitations of IT

• Customer self-service: organizations can more-effectively extend traditionally internally applications directly to customers via a standard web browser.

www.eng.it23

Our answers to market needs

BUSINESS

Manage the Complexity

Manage the Complexity

ResolutionsCompliancyResolutionsCompliancy

Time to Market

Time to Market

Complete Solution

Complete Solution

Full Resolutions

Coverage

Full Resolutions

Coverage

Fast deployment

Fast deployment

MARKET KNOWLEDGE

Best ofbreed

Best ofbreed

Merge &Acquisition

Merge &Acquisition PerformancePerformance

Web ServicesWeb Services ScalabilityScalabilityPowerful

calculation engine

Powerful calculation

engine

IT COMPETENCES

MARKET

NEEDS

ANSWERS

www.eng.it24

A complete Solution:

Lines of Business

Gas

Electricity

Water

Waste Mgmt

Heating

Lines of Business

Gas

Electricity

Water

Waste Mgmt

Heating

Functionalities

Multiple Services/Marketsmetered/unmeteredBilling & Invoicing

Metering

CRM & Credit Mgt

Finance & Accounting

Logistics

Functionalities

Multiple Services/Marketsmetered/unmeteredBilling & Invoicing

Metering

CRM & Credit Mgt

Finance & Accounting

Logistics

FULL COVERAGE

of anymulti-utility needs

An integrated suite:

able to manage all processes

of any multi-utility company

in an effective & efficient way

BUSINESS

ComplexityManagementComplexity

ManagementResolutionsCompliancyResolutionsCompliancy

Time to Market

Time to Market

Complete Solution

Complete Solution

Full Resolutions

Coverage

Full Resolutions

Coverage

Fast deployment

Fast deployment

MARKET KNOWLEDGE

www.eng.it25

Market oriented

market deregulation

Companies’ unbundling

New business processes

• Switching Operations Switching Data exchange, Distributors’ Portal

• Delivery Points Management Specific module to manage Delivery Points

• Players Communications Communication tools and standard

• Energetic Balance Management on the local distribution grid

enables our Clients to manage the new processes required

by the market liberalization, such as:

BUSINESS

ComplexityManagementComplexity

ManagementResolutionsCompliancyResolutionsCompliancy

Time to Market

Time to Market

Complete Solution

Complete Solution

Full Resolutions

Coverage

Full Resolutions

Coverage

Fast deployment

Fast deployment

MARKET KNOWLEDGE

www.eng.it26

Unbundled Solution

BUSINESS

ComplexityManagementComplexity

ManagementResolutionsCompliancyResolutionsCompliancy

Time to Market

Time to Market

Complete Solution

Complete Solution

Full Resolutions

Coverage

Full Resolutions

Coverage

Fast deployment

Fast deployment

MARKET KNOWLEDGE

MER

CU

RIO

: A

2A

Distribution Company

Field Serv Asset Mgt

BillingDistr

DPM

ERPDistribution

More special modules

Sales Company

CRM BillingSales

ERPSales

More special modules

• System for Sales Companies (special DB & applications)

• System for Distribution Companies (special DB & applications)

• Communication Module between Distribution and Sales Company

• DP Mgmt System for data reconciliation and energetic balance

architecture is unbundling-driven

www.eng.it27

Resolution Compliancy

A Business Unit focused on

ADDEDVALUEADDEDVALUE

View sharing with 200 customers on resolutions interpretation

Partnership with customers involved in Authority’s workshops

Direct participation on Authority’s consultation documents

BUSINESS

ComplexityManagementComplexity

ManagementResolutionsCompliancyResolutionsCompliancy

Time to Market

Time to Market

Complete Solution

Complete Solution

Full Resolutions

Coverage

Full Resolutions

Coverage

Fast deployment

Fast deployment

MARKET KNOWLEDGE

Resolutions study and analysis

Consulting activities on resolutions interpretation

Impact analysis (resolutions’ impact on processes)

www.eng.it28

Resolutions Update

Maintenance fee includes the resolutions update

2005 2006 2007 2008

New Resolutions

analyzed 108 120 102 178

Explanatory Circulars emitted

17 23 24 17

New Functionalities 38 56 42 40

New Modules 10 8 11 9

BUSINESS

ComplexityManagementComplexity

ManagementResolutionsCompliancyResolutionsCompliancy

Time to Market

Time to Market

Complete Solution

Complete Solution

Full Resolutions

Coverage

Full Resolutions

Coverage

Fast deployment

Fast deployment

MARKET KNOWLEDGE

New resolutions analysis

Explanatory Circular issues

New modules and functionalities embedded in the system

www.eng.it29

Fast deployment

BUSINESS

ComplexityManagementComplexity

ManagementResolutionsCompliancyResolutionsCompliancy

Time to Market

Time to Market

Complete Solution

Complete Solution

Full Resolutions

Coverage

Full Resolutions

Coverage

Fast deployment

Fast deployment

MARKET KNOWLEDGE

Extremely fast Billing system deployment both in the design and data migration phases.

Over 300 deployments and data migration since 1990

www.eng.it30

Integration

Core processes - “New Contract” Work Flow

WE

BS

PH

ER

E

SIEBEL

NETABilling

DisCo system

1. New contract 2. New contract

3. Technical activation request>

4. Technical activation request

6. Technical activation result

5. Technical activation result

7. Activation result8.Activation result

Administration processes - “Accounting”

SAP R/3NETABilling

Accounting issued

AccountingCollected

Project planned for a primary vendor (Gas and Electricity).

Application components:• SIEBEL • WEBSPHERE• NETA Billing• Specific systems for distributors

Main working integrations:• Gruppo E.On• AGSM Verona• Edison • COGEME Rovato• ACEA Roma

BUSINESS

Best ofbreed

Best ofbreed

Merge &Acquisition

Merge &Acquisition PerformancePerformance

Web Services

Web Services ScalabilityScalability

PowerfulCalculation

engine

PowerfulCalculation

engine

IT COMPETENCE

www.eng.it31

Scalability

Managed DPs growth trend

300.000

1.500.000

3.000.000

6.000.000

TIME

Step #1

Step #2

Step #3

Step #4

Q4 2008

N° Customers

0

Q1 2009 Q3 2009 Q4 2009

BUSINESS

Best ofbreed

Best ofbreed

Merge &Acquisition

Merge &Acquisition PerformancePerformance

Web Services

Web Services ScalabilityScalability

PowerfulCalculation

engine

PowerfulCalculation

engine

IT COMPETENCE

The evolution process is illustrated herebelow in terms of number of managed Delivery Points (DPs) for primary Italian E&U market vendors.

www.eng.it32

Performance

Running system performance

Herebelow are illustrated the Hardware features and performance (in terms of invoices/hour) realized on production systems by some Engineering customers who use Neta billing.

10.000.000

SUN SF SF6900k (c/o Sun IForce)• 16 1,5 GHz CPU ultrasparc IV+ (32cores) • 48 GB RAM• 6TB on storage area network

800.000benchmark

740,000

SUN SF 15k (outsourcing c/o T-Systems)• 12 1,2 GHz CPU ultrasparc III • 48 GB RAM• 750GB on storage area network

432,000

550,000

2 x IBM dSeries 660 6h1 in cluster• 4 x RS64 IV 750 MHz per hub • 4GB RAM per hub• 2 x 18GB 10k SCSI Raid 1 + 7 x 73 Gb 10k rpm SSA

420,000

650,000

SUN SF6900• 8 1,05 GHz CPU ultrasparc IV • 16 GB RAM• Storage Area Network Hitachi 9970

288,000

Company Customers Hardware featuresInvoices/

hour

BUSINESS

Best ofbreed

Best ofbreed

Merge &Acquisition

Merge &Acquisition PerformancePerformance

Web Services

Web Services ScalabilityScalability

PowerfulCalculation

engine

PowerfulCalculation

engine

IT COMPETENCE

www.eng.it33

Net

@C

RM

Net

@S

IU Net

@A

MM

M 3S

AP

SZigBee

Intranet

GPRS

Livello 1 Livello 2 Livello 3

1) Net@AMI: MESH and Point to Point model

GPRS/GSM

www.eng.it34

Net

@A

MM

M 3S

AP

S

Livello 1 Livello 2 Livello 3

GSM

1) Net@AMI: Point to Point model

Net

@C

RM

Net

@S

IU

Intranet

www.eng.it35

Net@AMI: Georeferential model

www.eng.it36

Net@AMI: Georeferential model