Alstom Sa · EURONEXT:ALO
Alstom Sa — Investor Day (February 2013)
49 slides from Alstom Sa's investor day presentation, Feb 28, 2013
Slide 1: Alstom Renewable Power Analyst Day
Alstom Renewable Power Analyst Day Jérôme Pécresse Nantes 28th February 2013
Slide 2: Agenda
Agenda I. Renewable Power within Alstom II. Renewable market III. Financials IV. Hydro V. Wind VI. New Energies VII. Conclusion P2
Slide 3: Renewable Power Sector creation
Renewable Power Sector creation Renewable Power Sales within Alstom Group Renewable Power • Sector created in July 2011 10% • Agile organisation with empowerment and leaner decision-making processes 90% Rest of Alstom P3 Source: Alstom
Slide 4: Renewable Power Sector organisation
Renewable Power Sector organisation HYDRO WIND NEW ENERGIES Comprehensive range of Integrated wind farm 3 activities hydro power generation solutions • Renewable Steam Plants ACTIVITY DESCRIPTION equipment and services • System or key component offers fuel-tailored turnkey • Designs to services desi
Slide 5: Synergies with Thermal Power and Grid
Synergies with Thermal Power and Grid THERMAL POWER GRID • Joint commercial network • HVDC solutions for Offshore Wind (Global Power Sales) with Renewable Power • Smart grids to incorporate the intermittency of renewable • Hybrid generation technology power generation offering combining solar with g
Slide 6: Renewable Power strategy
Renewable Power strategy Maintain leadership in Hydro − Keep leading technological edge − Seize growth opportunities in terms of geographies (i.e. Russia), markets (i.e. increase presence in Service/Rehabilitation market) and products (i.e. VarSpeed Pump Storage) − Continue strong focus on cost comp
Slide 7: Recent footprint developments
Recent footprint developments P7 Source: Alstom
Slide 8: Key recent commercial successes
Key recent commercial successes Tehri 1000 MW - India Santo Antonio do Jari 378 MW Brazil Inga 21&22 350 MW DR CONGO P8 Source: Alstom
Slide 9: Agenda
Agenda I. Renewable Power within Alstom II. Renewable market III. Financials IV. Hydro V. Wind VI. New Energies VII. Conclusion P9
Slide 10: Renewable Energy market by technology
Renewable Energy market by technology [Avg. GW / year; 2008-2021] 100 85-90 • Low point in 2012 but demand expected 77 to rebound Ocean 63 • Hydro New overall stable, most of growth Biomass ST driven by ageing & growing Installed Base Solar CSP • Wind onshore nearly stable, while offshore Geothermal
Slide 11: Renewable Energy market by geography
Renewable Energy market by geography [Avg. GW / year; 2008-2021] 85-90 77 China Oceania • Most regions to increase 63 India • China to sustain growth and represent Asia almost half of the market LAM NAM • Fewer very large hydro projects in LAM but more wind to come MEA Russia & CIS • Europe growth d
Slide 12: Renewable Energy LCOE
Renewable Energy LCOE Typical cost of electricity for European new plant construction Target 2020 Average without storage 4hrs storage PSP New on existing Dam Coal Coal with Gas Gas with Nuclear Hydro Geo- CFB Wind Wind Solar Solar PV Ocean CCS CCS thermal Biomass Onshore Offshore Thermal Onshore wi
Slide 13: Agenda
Agenda I. Renewable Power within Alstom II. Renewable market III. Financials IV. Hydro V. Wind VI. New Energies VII. Conclusion P 13
Slide 14: Order growth vs. market growth
Order growth vs. market growth Orders [€ million] Renewable Power market [GW] Excluding PV -43% -8% 1,936 2,026 63 1,324 1,218 36 FY 10/11 FY 11/12 FY 11/12 9m FY 12/13 9m 9m 2011 9m 2012 Low level of market due to project delays (permitting ,etc …) Good resistance of the order book in a difficult m
Slide 15: Orders by geography and business
Orders by geography and business Orders by geography [FY 11/12] Orders by business [FY 11/12] Eastern Wind New Energies Europe 20% 2% South 13% and Central America 37% 18% MEA 10% 11% North 78% 12% America Western Europe Asia / Pacific Hydro Geographical and technological diversity allowing better r
Slide 16: Sales, IFO margin and Backlog
Sales, IFO margin and Backlog Sales [€ million] Backlog + awarded projects & IFO margin [% of sales] [€ million] 8.9% 9 8 ~1,000 7.4% 7.3% 7 +75% ~2,000 6 5.7% 5 1,941 2,027 4 3 4,133 1,037 2 856 1 0 Renewable Offshore Renova FY 10/11 FY 11/12 H1 FY 11/12 H1 FY 12/13 Power French Tender Energia Back
Slide 17: Agenda
Agenda I. Renewable Power within Alstom II. Renewable market III. Financials IV. Hydro V. Wind VI. New Energies VII. Conclusion P 17
Slide 18: Hydro market
Hydro market Hydro market by region – New market [Avg. GW / year; 2008-2021] New market − “Incentive free” and self sustainable new build market, except a few mini-hydro 31 − Short-term slowdown to be overcome China with China resuming large projects 27-32 Oceania − China by far the largest market 2
Slide 19: Zoom on Pump-Storage technology
Zoom on Pump-Storage technology How does a Pump-Storage Plant work ? Key benefits • Increase in grid stability • Optimisation of power plant fleet and electrical network infrastructures • High cycle efficiency (~80%) • Quick response for peak load energy supply • Environmentally friendly P 19 Source
Slide 20: Alstom Hydro installed base market share
Alstom Hydro installed base market share World IB = 1,060 GW Europe 225 GW NAM Russia & Cis 169 GW 68 GW China 230 GW India 43 GW Asia ALSTOM MEA 98 GW LAM 50 GW Installed base activity 166 GW accounting today for ~20% of Hydro sales with significant growth potential Oceania 14 GW *ALSTOM supplied T
Slide 21: Recent commercial successes in Hydro
Recent commercial successes in Hydro LAM ASIA EMEA Ituango, Colombia Lai Chau, Vietnam Grand Renaissance, Ethiopia • 2,400 MW • 1,200 MW • 3,000 MW • 8x300 MW Francis • 3x400 MW Francis • 8x375 MW Francis • November 2012 • December 2012 • June 2012 Baixo Iguacu, Brazil Dong Nai 5, Vietnam Mapragg an
Slide 22: Alstom Hydro industrial base
Alstom Hydro industrial base CANADA FRANCE Tracy, Hydro Grenoble, Hydro SWITZERLAND Manufacturing sites Since 1950’s Since 1917 Birr, Hydro Turbines + Generators Turbines Since 1960 Generators CHINA RUSSIA Tianjin, Hydro • Ufa Present since 1995 Turbines + Generat
Slide 23: Partnership with RusHydro
Partnership with RusHydro AlstomRusHydroEnergy (JV) • JV announced in a strategic cooperation agreement in December 2010 with a mission to produce hydropower and auxiliary equipment in Russia • Shareholders Agreement signed in June 2011 to establish the JV (50% -1 share for Alstom) • Ufa factory: pa
Slide 24: Alstom Hydro products & services offering
Alstom Hydro products & services offering • Head: 3 – 25 m • Head: from 10 to 1,200 m • Max. Diameter: 8 m • Reversible single, double or multi- stage • Axial flow centrifugal units • Horizontal axis • Axial, mixed or centrifugal flow • Output < 80 MW • Output < 500 MW BULB PUMP TURBINE • Head: 10 –
Slide 25: Adapting to market environment
Adapting to market environment • Price pressure since 2010 with some limited recent signs of stabilisation • Rationalisation of the European footprint launched, starting with the grouping of most French Hydro engineering and support activities in Grenoble • Initiatives launched to optimise the full
Slide 26: Agenda
Agenda I. Renewable Power within Alstom II. Renewable market III. Financials IV. Hydro V. Wind VI. New Energies VII. Conclusion P 26
Slide 27: Wind market
Wind market Onshore Wind market by region [Avg. GW / year; 2008-2021] Onshore − Tightening market & overcapacity 40 China 35 35-40 Oceania − Local content requirement in emerging markets India (Brazil, Morocco, Saudi Arabia, South Africa,…) Asia LAM − Repowering opportunities in mature markets NAM M
Slide 28: Wind market current dynamics
Wind market current dynamics Nacelle capacity vs. Demand [2011 - 2013] Increase in overcapacity in 2012 100% − Uncertain/revamped renewables 80% support policies Supply (e.g. Spain, Italy, UK, USA) 60% Demand − Tight financing conditions 40% 20% 0% Local content requirement in new 2011 2012 2013e co
Slide 29: Alstom well positioned to address Wind market
Alstom well positioned to address Wind market Fit with Alstom’s core competencies Success factors − Designer-integrator business − Global commercial network − Innovation business − Access to a broad range of Utilities clients − Increasing technological content worldwide − Strong project management c
Slide 30: Alstom's traditional customers active in Wind
Alstom’s traditional customers active in Wind Added Wind capacity in the USA & Europe • Two primary client types: [by client segment type] large Utilities and IPPs, both traditional Alstom customers 100% Wind IPPs, Installed GW 80% S/M developers • Large Utilities looking to optimise 60% Multi-busin
Slide 31: Strategy in Wind
Strategy in Wind Historical Alstom Wind Orders 1 Develop leadership position in Offshore by geography − Top technology available in the market − Good platform with French tender 100% 1% 5% − Opportunities in Europe and beyond 2 Grow selectively in Onshore 53% 52% − Focus on LAM with strong volume gr
Slide 32: Industrial footprint in Wind
Industrial footprint in Wind FRANCE offshore Nacelles (proto, pre-series) Nacelles (600 MW) Generators JV (600 MW) USA onshore Nacelles (800 MW) SPAIN onshore Buñuel – Nacelles (1,500 MW) Altamira – Towers (150 towers) Somozas – Cabinets& Extenders BRAZIL onshore Nacelles (60
Slide 33: Haliade-150: a technological edge in the market
Haliade-150: a technological edge in the market • Simple increasing reliability whilst lowering maintenance − Direct drive (few moving parts, low rotation speed, proven technology) − Permanent magnets (no excitation of rotor required, less electrical parts) • Efficient Large rotor giving higher yiel
Slide 34: Offshore French tender – Round 1
Offshore French tender – Round 1 • Three zones awarded in April 2012 to a consortium Planned factories Wind farm sites led by EDF (Alstom, Dong Energy, Nass & Wind and WPD Offshore): Saint-Nazaire, Courseulles-sur-Mer and Fécamp Fécamp Courseulles-Sur-Mer 500 MW • Alstom exclusive turbine supplier t
Slide 35: Offshore opportunities worldwide
Offshore opportunities worldwide UK 10.3 (current offshore capacity YE11: 2.1 GW) GW • Total of 48 GW allocated between 2001 and 2010 0.4 Denmark for development in Rounds 1, 2, 3, Round 2 (current offshore capacity YE11: 860 MW) extension and Scottish Territorial Waters GW • 400 MW Horns Rev III te
Slide 36: Commercial success in Brazil for Wind Onshore
Commercial success in Brazil for Wind Onshore • Brazilian wind market expected Successes in Brazil [MW; 2010 – 2013 YTD] to be ~2GW / year through 2020 • Entry in the Wind market in Brazil 2010 ~100 • 57 x ECO86 (1.67 MW) leveraging a strong historical presence through Hydro • 41 x ECO86 (1.67 MW) 2
Slide 37: Zoom on Renova Energia Frame Agreement
Zoom on Renova Energia Frame Agreement Brazilian Wind market overview • Renova Energia: the largest wind power generation company in Latin America • Signature of a Frame Agreement (FA) between Renova Energia and Alstom for the supply of 1.2 GW of Wind turbines CAMACARI PLANT (mainly ECO-122) • FA pa
Slide 38: ECO-122 well positioned to capture future growth
ECO-122 well positioned to capture future growth • Complements our product offering for low-wind sites • High power − Rotor diameter of 122m − Nominal power of 2.7 MW • Higher Capacity Factor: up to 42% or over 3,600 hours per year • Land optimisation: up to 25% increased wind farm yield compared wi
Slide 39: Adapting to market environment
Adapting to market environment • Reduction in platform costs to deal Key competitiveness focus areas with pressure on market prices Key savings • Increased volumes, particularly expected in LAM, allowing for greater in blades, economies of scale welded structure, • Optimisations made in design conve
Slide 40: Agenda
Agenda I. Renewable Power within Alstom II. Renewable market III. Financials IV. Hydro V. Wind VI. New Energies VII. Conclusion P 40
Slide 41: Solar CSP market
Solar CSP market Solar CSP market by technology [Avg. GW / year; 2008-2021] Mid-term outlook 2.5 – 3.5 − Tower technology with the largest growth potential − Storage-based CSP technology Linear Fresnel becoming dominant segment, & others supported by feed-in tariff (FIT) Tower − Hybrids (subject to
Slide 42: Tower technology overview
Tower technology overview Scope RENEWABLE POWER GRID RENEWABLE POWER P 42 Sources: Alstom, BrightSource Energy
Slide 43: Solar technology comparison
Solar technology comparison Parabolic Linear PV Dish Tower + Higher efficiency today, Trough Fresnel with potential for further efficiency improvement + Low specific costs vs. Through (less piping, flat Utility Scale mirrors) Experience + Highest thermal storage Bankable effectiv
Slide 44: Partnership with BrightSource Energy (BSE)
Partnership with BrightSource Energy (BSE) Zoom on Ashalim project • Founded in 2006, ~ 300 employees worldwide • Development and building of large-scale solar steam and power generation plants • Headquartered in California, with technology teams in Israel • Developing 400MW solar tower project to s
Slide 45: Ocean Energy market
Ocean Energy market Ocean energy by technology [2020] • Global Market to reach ~1 GW per year in 2020 • Tidal to dominate and first to come 23% Tidal • Wave technology taking off later (no technological convergence yet) Wave 77% • UK to lead the market, followed by France Ocean energy by geography [
Slide 46: Acquisition of Tidal Generation Limited (TGL)
Acquisition of Tidal Generation Limited (TGL) Simple design Optimised design Full scale Voith MCT Hammerfest • Two types of design prototype (Siemens) (Andritz) (1MW) (2 x 0.6MW) (1MW) − Simple design: (>1MW) Atlantis TGL (1MW) (1 MW) finally tending to have more technical issues (heavy) Half scale
Slide 47: TGL technology overview
TGL technology overview More cost efficient and easier Better maintenance hydrodynamic performance • Buoyant nacelle, allowing turbine to be towed to and from the foundation site • Uses unidirectional • Detachable from tripod for easy blades rather than maintenance bidirectional blades • Ability to
Slide 48: Agenda
Agenda I. Renewable Power within Alstom II. Renewable market III. Financials IV. Hydro V. Wind VI. New Energies VII. Conclusion P 48
Slide 49: Conclusion
Conclusion • Ambition to grow in profitable Renewable Energy segments − Build on Hydro worldwide leadership and generate more Service revenues − Succeed in Offshore Wind industrial and commercial ramp up • Pursue selective growth in Onshore • Improve cost competitiveness and operational performance