A New Vision of

Value: Connecting

corporate and societal

value creation

KPMG Advisory

Sustainability Services

11 November 2014

Välkommen!

2© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no

client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved. . Printed in the Netherlands. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.

Vårt erbjudandekpmg.se/sustainablebusiness

3© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no

client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved. . Printed in the Netherlands. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.

KPMG Advisory

■ Majority of Fortune 500 companies as clients

■ > 2000 professionals

KPMG International

■ Audit, Tax & Advisory

■ >156,000 people

■ >156 countries

Global Climate Change & Sustainability

■ >500 professionals

■ >50 countries

Global räckvidd och kompetens - lokal kännedom

Swedish Sustainability Services

■ >11 professionals

4© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no

client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved. . Printed in the Netherlands. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.

Välkommen!www.kpmg.se/sustainablebusiness

5© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no

client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved. . Printed in the Netherlands. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.

A New Vision of

Value: Connecting

corporate and societal

value creation

6© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no

client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved. . Printed in the Netherlands. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.

Introduction

‘A New Vision of Value – Connecting corporate and societal value creation’

A New Vision of Value - 2014

Two years of studies

Smith School, University of Oxford

50+ senior investors, business leaders, academics,

policy experts

KPMG’s contribution to ongoing development

Expect the Unexpected - 2012

Presented 10 global mega trends

40% of the operating result may disappear

Businesses, governments and civil society need to act

How can companies calculate their true value?

7© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no

client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved. . Printed in the Netherlands. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.

Introduction

Sustainability and corporate responsibility in three dimensions

Human & Labor Rights

Occupational Health & Safety

Human Capital Development

…

Wages

Tax

Corruption

…

Climate Change

Water usage

Biodiversity

…

8© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no

client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved. . Printed in the Netherlands. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.

Introduction

Why is KPMG’s True Value methodology relevant?

3 key results

1. Insight on societal value creation

2. Insight on value at risk and opportunities for value creation

3. Insight on financial and societal return of potential strategic actions

© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no

client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved. . Printed in the Netherlands. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.

9

What are externalities?

Externalities are “Costs and benefits that haven’t been priced into the market, and

which affect a party who did not choose to incur those costs or benefits”

© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no

client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved. . Printed in the Netherlands. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.

10

22

153

84 100

223

89 97

26

134

670

482

0

100

200

300

400

500

600

700

2010 EBITDA (billion USD) 2010 total environmental costs as percentage of EBITDA

224%

Environmental externalities on

average 40% of EBITDA

52%22% 42% 43%

87%

71%

59%

64%

23%

2.5%

11© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no

client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved. . Printed in the Netherlands. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.

Regulations &

Standards

■ New laws

■ Product standards

■ Pricing

■ Subsidies

■ Taxes

■ Disclosure regulations

■ Certification standards

Stakeholder Action

■ Labour strikes

■ Loss of license to operate

■ NGO criticism

■ Consumer pressure

■ Terminated contracts with

suppliers

Market Dynamics

■ Scarcity and pricing

■ Extreme weather

■ New markets

THREE KEY DRIVERS: increasing the rate of internalization

© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no

client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved. . Printed in the Netherlands. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.

12

STEP 1

Assess the company’s ’true’ earnings – a true value bridge

© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no

client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved. . Printed in the Netherlands. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.

13

Step 2 and 3

Understand future earnings at risk and calculate NPV and opportunities

Based on scenario’s, assess likelihood of internalization and risk to earnings.

Assess effects on operating margin and calculate net Present Value of investment needs.

Assess the opportunities.

Key externalities prioritized by likelihood of internalization

© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no

client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved. . Printed in the Netherlands. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.

14

KPMG’s TRUE VALUE METHODOLOGY

3 steps approach

ASSESS THE COMPANY’S

‘TRUE’ EARNINGS

by identifying and quantifying

its material externalities

UNDERSTAND FUTURE

EARNINGS AT RISK

by analyzing exposure to the

forces of internalization

CREATE CORPORATE

AND SOCIETAL VALUE

by developing business cases

that capture value, create

opportunities and reduce risk.

1

2

3

15© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no

client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved. . Printed in the Netherlands. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.

Anna Ryott Swedfund

Johan ByggeEQT

Parul SharmaThe Academy for

Human Rights in

Business

Paneldiskussion

16© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no

client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved. . Printed in the Netherlands. The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.

TACK!

Helena Mueller

+46 733 272 254

helena.mueller@kpmg.se

Daniel Dellham

+46 70 580 70 40

daniel.dellham@kpmg.se