Clients & references
Hereunder, we provide some examples of how our different approach has helped clients protect or create shareholder value. As a rule, we do not mention clients' names.
Project
A Central European telecommunication company’s strategy of strategic acquisition is threatened by the European Commission’s policy on roaming charges.
Challenge
In March 2006, noting the latest figures on international roaming prices, European Telecommunications Commissioner Reding declared her intention “to eliminate all unjustified roaming charges” and to prepare specific price regulation. Investment analysts promptly downgraded the company’s earnings forecast as the company was expected to suffer a greater than average impact due its larger proportion of wholesale roaming revenues.
EPPA approach
We led a targeted information initiative within the European Commission at service and cabinet levels. The company was able to make its case on the asymmetry in the wholesale market, noting that telecom companies in tourist destinations and business hotspots would suffer disproportionately from the Commission’s plans.
Result
The advisers of Commissioner Reding acknowledged the particular problem. Following clarifications from European Commission officials, the company was able to ease the concerns of the financial analysts and to normalise relations with investors regarding further expansion plans.
Project
A substance being produced by an international chemical company was due to be reclassified under EU law with green campaigners deeming it to be a threat to the environment and to human and animal health.
Challenge
The challenge was to ensure that the substance was included on the European Commission’s exhaustive list of approved substances for use in Europe. An EU ban or restriction on use of the substance would have a significant impact on the company’s business and time would be required for the company to adapt its research, development and operations accordingly. In addition, an ban would have a multiplier effect as other authorities around the world consider the EU decision regarding a substance worth €1 billion Euros per year in global sales.
EPPA approach
We ensured that the EU process took all scientific and economic elements fully into account. At the national level, we helped key decision makers to take a comprehensive and long term view and provided tailored information to the Member State authority that was the rapporteur, leading on the case. Together sustainable use methods were further refined, setting a new standard for the sector.
Result
The result was that the substance was authorised for use, under certain conditions, in all EU markets.
Project
An international food company sources raw materials from around the world for use in its EU-based production sites and then subsequently exports its finished products. EPPA was engaged in a long term project address a range of tariff barriers facing the company.
Challenge
The client wanted to reduce its customs duty and to expand sale opportunities by working with the EU and Member State authorities to obtain reductions or eliminations of a range of custom tariffs and non-tariff barriers. The scope of the project included bilateral trade agreements as well as global multi-lateral agreements.
EPPA approach
We provided guidance for the company as it set up several projects to gather intelligence, prepare strategic and tactical advice, draft position statements, manage key stakeholders and drive action in relevant trade associations. The projects also streamlined the work of the company’s local management teams.
Result
After just one year the combined results of the various projects meant that the company saved in excess of €55 million Euros worth of tariffs. Some savings were repeated in subsequent years, while others faded as sourcing plans changed or trading conditions changed. The coordinated approach also gave the company real insight into the most effective methodologies and networks.
Project
A medium-sized commodity producer sought to defend itself from a hostile takeover attempt by a close competitor and to secure its future as a stand alone operator.
Challenge
We had to help our client provide compelling argumentation as to why the merger in this strategically important sector might not be desirable for the EU. Furthermore, the European Commission was processing the merger authorisation request amidst a general consolidation trend in the sector.
EPPA approach
We helped the client gain traction as it sought to engage fully with all policymakers - from the Commission’s case team in the Competition Directorate, to other Commission services, as well as the national competition authorities and ministries who contributed significantly to the final decision.
Result
EU decision-makers appreciated the client’s viewpoint and the European Commission concluded that the bid would only be allowed if a number of harsh remedies were met by the bidding company. The hostile bidding company decided to stop all procedures and is estimated to have incurred a loss of €750 million euros for failing to pave the way for the regulatory process. For our client, the outlay on government relations was considerably less than the expensive process of preparing financial poison pills.
Project
A multinational electrical appliances manufacturer wanted to ensure that the revision of the Battery Directive did not terminate a successful product line.
Challenge
The European Commission was proposing to ban cadmium, a hazardous substance used in batteries, for environmental safety reasons. However, at the time, cadmium batteries were the only proven battery technology that met customer expectation regarding cordless power tools – a product line which was performing well and accounted for 30% of the client’s European business.
EPPA approach
We led the dialogue with decision-makers, consistently informing them about the extent of the environmental risk posed by the use of cadmium in batteries. Throughout the procedure - from the preliminary impact assessments, to the internal Commission deliberations, to the debate in Council and Parliament - all stakeholders were informed as to how the minimal risk could be further reduced by the introduction of viable collection and recycling systems.
Result
EU decision-makers agreed to grant power tools a four year exemption from the blanket ban on cadmium in the Battery Directive. This rare exemption (other exempt products were for emergency lighting and hospital appliances) allowed the company to maintain its sales and provided a reasonable lead time to develop commercially viable and environmentally friendly alternatives.
Project
A financial services company encountered regulatory barriers as it sought to expand its innovative retail strategy throughout Europe.
Challenge
Although established in the EU, the client’s new innovative business model was meeting resistance as it sought approval in other Member States due to the differences in regulatory culture and history. The challenge was to speed-up the regulatory approval processes for the client’s financial products.
EPPA approach
Although the legality of the client’s product was never in question, we helped the company to change its mind-set and recognise the importance and value of making specific representation to government stakeholders. Then we put in place a plan which allowed the client to thoroughly explain its business model to both direct and indirect decision-makers.
Result
Regulatory approvals were greatly enhanced as a result of the client’s greater outreach efforts. The client’s CEO subsequently estimated that their initial lack of public affairs effort had cost the company a minimum of 10% additional growth per annum on the first years’ entry into the market.
Project
A global IT company delivering software solutions to financial service providers, wanted to fully leverage new business potential from the changes that were being made to the regulatory framework for financial services sold at a distance.
Challenge
As the European Commission moved towards a legislative proposal specifically targeting distance selling of financial services, our client foresaw that the new regulatory framework would require new IT products for European banks and insurers as they sought to implement the new rules. The challenge was to ensure that our clients specialised business software would adequately meet the requirements being set by the updated legislation.
EPPA approach
As the bankers and insurers had been reluctant to engage fully with the regulatory authorities, we advised the client to assume a mediatory role. By staying in close contact with both the EU policymakers and the financial community, we helped the client both enhance its reputation and to model scenarios predicting the impact of the new regulation with more accuracy.
Result
The client’s investment in the preparation of the directive enriched their knowledge of the regulatory requirements and of the business implementation challenges. Having attained a competitive edge, our client used its first-mover advantage to launch its financial software package and become the best known in the marketplace.
Project
A leading beverage company wanted to enhance its strategic planning by taking account of future policy and ongoing cultural changes.
Challenge
A combination of complex cultural changes and budgetary pressures have seen public health policy gain momentum and evolve more rapidly than companies can adjust their business models.
EPPA approach
EPPA’s multi-disciplinary team provided a comprehensive analysis of the societal pressures and political dynamics which were most pertinent to the client’s business. This insight allowed the company to make timely adjustments to its marketing and communication strategies.
Result
In a shrinking marketplace, our client saw both an annual sales increase of several percentage points and a growth in trust in its relationship with regulatory authorities.
Project
A corporation with operations in all EU Member States (and beyond) and with multiple policy and regulatory interests wanted to increase the efficiency of its government and regulatory affairs whilst reducing costs.
Challenge
The matrix structure of the multinational corporation, a strong focus on products, with commercial matters organised by country made it difficult to execute consistently trans-European policy or regulatory plans conceived at headquarters.
EPPA approach
Working closely with the client, EPPA first delivered a detailed analysis of the key European institutions and the operational realities of the EU decision-making process. This provided the framework within which we guided the corporation and identified its specific needs. Thereafter our experienced and multi-disciplinary team of consultants provided practical advise on how to implement the most cost-effective and efficient internal structure to deliver on the corporation’s policy objectives.
Result
Our client has now greatly improved its self-reliance and presence in governmental and regulatory affairs and has been able to position itself as the leader in its sector. the methodology developed has since been tailored successfully for other companies, with similar cost savings and efficiency increases.