OCTOBER 2013INTERNATIONAL BUSINESS LINES - WHY, WHAT AND HOW1

International Business Lines in COWI – why, what and how?Point of departure, definitions and process for establishment

OCTOBER 2013INTERNATIONAL BUSINESS LINES - WHY, WHAT AND HOW2

International business lines in COWI – why, what and how

Table of contents:

•WHY do we need international business lines in COWI?

•Point of departure – Powerhouse 2015 – international ambitions

•WHAT - international business line (IBL) – definition and requirements

•Anchoring and mandate

•Roles and responsibilities

•HOW - process for establishing an international business line

OCTOBER 2013INTERNATIONAL BUSINESS LINES - WHY, WHAT AND HOW3

Why do we need international business lines in COWI?WHY

› Increasing population growth and urbanisation worldwide are fundamental drivers for COWI's services.

› A continued and increased internationalisation of COWI's business outside our Scandinavian home markets is crucial for our success as consultant and employer. It is vital for COWI's future growth that we continue to develop competencies to remain a significant player in an increasingly competitive market.

› It is vital to have a continuous number of strong international business areas with a significant international growth potential like our present ISL businesses (bridge, tunnel, marine, mapping and airports).

› We are in an attractive market but also in a market where our clients access to international competencies is steadily increasing as competencies are globally available.

› Going forward, our international business development will mainly be driven by focused sector and service approach towards well defined market and customer segments.

› We need to pave the way for the next generation of new international business areas at the international scene

– therefore the introduction of international business lines (IBL) in COWI.

OCTOBER 2013INTERNATIONAL BUSINESS LINES - WHY, WHAT AND HOW4

Powerhouse 2015 – international ambitionsPoint of departure

PowerHouse 2015 outlines clear strategic ambitions for international business development in the COWI Group.

› BTM – is working worldwide and is expanding business in North America

› Region Denmark – has an ambition of increasing their international turnover from 25 per cent to 33 per cent which is close to a double up in Region Denmark's international turnover

› CMC – works in close cooperation with the regions and BTM internationally

› Region Sweden – has an international perspective within industrial processing plants

› Region Norway – international ambitions not yet defined, but will be required in the future – hospital building in particular

› Significant growth in North America reflected in must-win battle

OCTOBER 2013INTERNATIONAL BUSINESS LINES - WHY, WHAT AND HOW5

International business line – definition and requirementsWHAT

An international business line is characterised by:

•Being a well-defined line of business in terms of clear market segment

•Having internationally recognised competencies

•Having international business above DKK 20 million in annual turnover

•Having a significant growth potential

•Having a well-defined market focus

•Having a clear strategy with well-defined KPIs

•Having a clear appointment of leadership responsibilities anchored in a business unit

OCTOBER 2013INTERNATIONAL BUSINESS LINES - WHY, WHAT AND HOW6

Anchoring and mandate WHAT

Once established the IBLs will set the direction for international business development and business decisions outside Scandinavia and North America within their defined scope of business. Furthermore, future acquisition strategies will partly be guided by the strategic framework established by IBLs.

Anchoring

›An IBL derives from and is anchored in the line organisation – meaning that the line management in a given business unit assesses where they have international ambitions and decides whether their business area complies with the IBL requirements.

›The operation of an IBL is fully financed by the business entity it is anchored in.

Mandate

An IBL has the lead mandate to operate in geographies outside the three home markets in Scandinavia and in North America.

The elaborated strategy plan with KPIs defines the development of the individual IBL.

OCTOBER 2013INTERNATIONAL BUSINESS LINES - WHY, WHAT AND HOW7

Roles and responsibilityWHAT

› The IBL is lead by an IBL Director appointed by the relevant business entity

› The role as IBL Director is a secondary position according to COWI's career system

› The IBL director reports to the relevant Regional Vice President/SVP

› The responsibility of the IBL Director is outlined in a job description

OCTOBER 2013INTERNATIONAL BUSINESS LINES - WHY, WHAT AND HOW8

Process for establishing an International Business Line HOW

Having met the requirements for an International Business Line (IBL) the following process applies:

1.The line management is responsible for elaborating a strategy plan with KPIs for the IBL (please use IBL template for strategic intent).

2.The strategy plan is discussed in the line management with involvement of the relevant SVP and Regional Vice President.

3.The Regional Vice President is responsible for recommending the IBL for further review and endorsement in COWI's Group Management Board (GMB).

4.GMB is to endorse the strategy plan for final approval by the Executive Board (EB).

5.EB is to finally approve the strategy plan.