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Helsinki 13.5.2009

Käytännön kokemuksia etabloitumisesta Saksan markkinoille

Jarmo Kuikka

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Helsinki 12.2.2009

‘‘Bringing You Power’’ from the wind

Jarmo Kuikka

Hip hop, rap artist Paleface and his band Conscious Youths have created a special song for The Switch and its quest.

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Why The Switch

Switch to renewable energy: Wind and other New Energy sources

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1The Switch is your proactive choice

to do more for our world of the future.

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Why The Switch

Switch to smarter technology: With in-built simplicity, robustness and

reliability

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Advantage of an optimized power-generating package for consistent performance.2

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Why The Switch

Switch to better results: Gain up to 20% more energy.

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Switch outside the box… and profit more from a whole new way of thinking.

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Focus on selected business

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Annual Wind Power DevelopmentActual 1990-2008 & Forecast 2009-2013

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10,000

20,000

30,000

40,000

50,000

60,000

1990 1995 2000 2008 2013

MW

Europe USA Asia Rest of World ExistingSource: BTM Consult ApS - March 2009

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Vision of the future - 2012

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Meur

Technology leader

250 MEur with EBIT exceeding 10%.

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Growth rates in the Top 10 markets

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Finland 89 113 0Accu. in the world total 122,158 MW

Accu. Accu. Accu. Accu. Growth rate 3 yearsend end end end 2007-2008 average

Country 2005 2006 2007 2008 % %USA 9,181 11,635 16,879 25,237 49.5% 40.1%Germany 18,445 20,652 22,277 23,933 7.4% 9.1%Spain 10,027 11,614 14,714 16,453 11.8% 17.9%P.R. China 1,264 2,588 5,875 12,121 106.3% 112.4%India 4,388 6,228 7,845 9,655 23.1% 30.1%Italy 1,713 2,118 2,721 3,731 37.1% 29.6%France 775 1,585 2,471 3,671 48.6% 68.0%UK 1,336 1,967 2,394 3,263 36.3% 34.7%Denmark 3,087 3,101 3,088 3,159 2.3% 0.8%Portugal 1,087 1,716 2,150 2,829 31.6% 37.6%Total "Ten" 51,303 63,203 80,415 104,051 29.4% 26.6%Source: BTM Consult ApS - March 2009

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European wind resources

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HighMediumLow

Wind speed

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Power to energy, P2EPower to energy, P2EThe Switch generators and converterstransform the power of wind into electrical energy – and maximize turbine output.

The Switch generators and converterstransform the power of wind into electrical energy – and maximize turbine output.

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Wind turbine

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Focus on main components

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PMG = Permanent Magnet GeneratorPMG = Permanent Magnet Generator

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Motivated team around the customer

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The Switch – Why to Germany?

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Meeting with Mikael Helle 1st of August 2008

• The Switch presentation• Wind turbine market info• Saksalais-suomalainen kauppakamari• The Switch operations in Germany• Type to company needed in Germany• Personnel and hiring process• How to organize The Switch operations• Recruiting a local sales representative• Financial support sources

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How to enter the German market?

• How to operate in Germany?• Operations from Finland for first 2 years• 2008 office with one salesperson of our own• Increase personnel step by step

• Type of company?• Dependent Branch Office

• Registration with the local trade office?• Commercial register – not needed?

• Bookkeeping?• Lawyer or notary?• Tax advisor?• Bank?

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The Switch – How did we do it?

• Analyzing location of potential customers• Finding the right person• Finding an office• Organizing general issues• Getting new sales person into business• Learning

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Customers and potential customers are located in North Germany and in Denmark

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• What kind of tasks / operations locally?• Job description defined

• What kind of person needed?• Wide experience in wind turbine industry• Technical knowledge and sales skills

• How to find a right kind of person?• Friends in Germany?• Headhunters?• Advert for a job in local newspapers?• Advert in Monster? Yes• Monster

• 12 applications within 2 weeks – 6 potential candidates

• Jürgen Millhoff – over 10 years experience in wind industry

Hiring a local wind turbine expert

Office in Hamburg

Nordport Tower in Norderstedt • Located next to potential customers• Opening 1st of January, 2009• Near to the airport • Near Jürgen’s home• New building

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Get new sales person into business

• Jürgen visited The Switch offices in Finland• Vantaa, Vaasa, Lappeenranta

• Meeting with all key persons• Marketing material• Action plan• Meeting German customers• Jürgen knows who is who in

the German wind business

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Jürgen – Why did you select The Switch?

• Where did you get information

about The Switch?• Monster• Internet

• Why did you select The Switch?• Interesting future technology: specialized in

permanent magnet generator and full power converter• “Scandinavian thinking” in The Switch• To get experience with a company and colleagues from abroad

• and “sauna business”

• Huge market in Germany and other countries• I’m in the wind business since 18 years now and I have a good network

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Ask information and support from Germany Trade & Invest

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What did we learn?

• Positive • Deutsch-Finnische Handelskammer - Mikael Helle• Germany Trade and Invest (Invest in Germany) • Bookkeeping – Sari M. Trosien in Frankfurt• Monster and good luck •

• Challenges• Financial support

• Finland ??• Germany ??

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