Andritz AG · VIE:ANDR
Andritz — Investor Day (2006)
54 slides from Andritz's investor day presentation, 2006
Slide 1: Andritz Investor Days 2006 Part I
Andritz Investor Days 2006 Part I: Basic information about hydro power plants and the related market
Slide 2: Hydro power is the most advanced and reliable renewable source
HYDRO POWER is the most advanced and reliable source of renewable energy for electricity production Andritz VA TECH HYDRO is a global supplier of turnkey electromechanical equipment and services ("Water to Wire") for hydropower plants with a leading position in the growing market of plant refurbishm
Slide 3: Types of hydro power stations: run-of-river
Types of hydro power stations Run-of-river power stations: For low head and high water quantity Secure base load Installed in medium and lower sections of rivers Freudenau, Austria In 2004, the market for run-of-river power stations was in the range of about 1,100 MW (17 projects)* * Source: W
Slide 4: Types of hydro power stations: storage
Types of hydro power stations (cont‘d) Storage power stations: Bhumibol, Thailand For higher heads and lower water quantity Secure constant electricity generation by averaging the yearly water flow Provide support to daily demand variation In 2004, the market for storage power stations was in
Slide 5: Types of hydro power stations: pump storage
Types of hydro power stations (cont‘d) Pump storage power stations: Cover peak load demand Provide stability to the grid Goldisthal, Germany In 2004, the market for pump storage power stations was in the range of about 6,900 MW (6 projects)* * Source: Water Power & Dam Construction Yearbook 2005
Slide 6: New emphasis on pump storage
New emphasis on pump storage How does pump storage work: Electricity surplus stored Stored energy Electricity production during low demand periods energy during high demand periods Grid Grid Motor Generator Pump Turbine Electricity demand Peak load Surplus Base load Turbine operation Pump operation
Slide 7: New emphasis on pump storage: advantages
New emphasis on pump storage Advantages of pump storage: Balancing of peak load (daily, weekly, yearly) Stabilizing the grid („ancillary services“) Balancing the impact of wind, solar and base load energy „No expansion of wind energy without pump storage“ Andritz VA TECH HYDRO supplies the ful
Slide 8: Turbine characteristics
Turbine characteristics Andritz VA TECH HYDRO covers all types and sizes of turbines Storage / Pump storage: Run-of-river: Pelton Francis / Pump turbine Kaplan / Bulb turbine Output range: 0.1 - 400 MW/unit Output range: 0.1 - 800 MW/unit Output range: 0.1 –250 MW/unit Head range: 100 – 1,800 m Head
Slide 9: Capacity range of power stations
Capacity range of power stations Hydro power covers by far the widest range of output sizes/unit 1-3 units per plant NUCLEAR 100 1000 1-5 units per plant THERMAL 50 500 1-32 units per plant HYDRO 0,1 800 1 10 100 1000 Output in MW 10000 9
Slide 10: Electricity generation
Electricity generation 2001 Power generation worldwide 2010E in TWh (=Billion kWh) 23,100 92% from hydro power 13,300 Renewables Oil Gas 21% 9% Renewables Oil Gas 21% 18% 8% 18% 2001 1990 2025 2020 Nuclear Nuclear 17% 14% Coal 39% Coal 35% Hydro power is by far the most important renewable source fo
Slide 11: Electricity generation: life cycle energy yield
Electricity generation Hydro power has the best life cycle energy yield Efficiency Life time Operating hours [%] [years] [hours/year] 8,000 90% 60-90 6,500 6,500 6,000 40% 40% 35% 35-40 35-40 20-25 1,750 Hydro Coal Nucl. Wind Hydro Coal Nucl. Wind Hydro Coal Nucl. Wind Source: Parlamentarischer Aben
Slide 12: Typical supply split for hydro power
Typical supply split for hydro power Given the typical split between civil part and electromechanical equipment Andritz VA TECH HYDRO concentrates on turnkey electromechanical equipment supplies or partnering with civil companies in special markets for special cases. Run-of-river power station Stora
Slide 13: Sources of electricity generation
Sources of electricity generation 2001 2010E +2.4% p.a. 16,400 TWh 9% 13,300 TWh 14% 8% 17% 21% 18% +4.1% p.a. 21% 18% ¹ 39% 35% Coal Renewables Gas Nuclear Oil Major developments Depletion of natural resources National independence of power generation Growing demand for renewable and Rising o
Slide 14: Sources of electricity generation: hydro share by country
Sources of electricity generation Percentage of power generation contributed by hydro power: Austria 60 % Germany 4% France 10 % Norway 99 % China 15 % India 17 % Freudenau, Austria Russia 20 % Canada 60 % More than 760,000 MW of hydro power are in operation worldwide in 160 countries USA 7% Hyd
Slide 15: Market potential
Market potential The predominant markets for rehabilitation and upgrades are Europe and North America 70% 65% 55% World Average: 50% 35% 30% 25% 15% Installed capacity: 154,000 MW 159,000 MW 87,000 MW 13,000 MW 30,000 MW 192,000 MW 125,000 MW Western North Eastern Africa Middle Developing Central/ E
Slide 16: Electricity generation costs of various technologies
Electricity generation costs of various technologies Renewable Technologies Costs/ US$ Biomass energy 5-15 ¢/kWh Wind electricity 5-13 ¢/kWh Solar photovoltaic electricity 25-125 ¢/kWh Hydroelectricity Large 2-8 ¢/kWh Small 4-10 ¢/kWh Geothermal energy 2-10 ¢/kWh Fossil-Fuel Technologies Costs in US
Slide 17: End of Part I
End of Part I Andritz VA TECH HYDRO Your partner for renewable and clean energy! 17
Slide 18: Andritz Investor Days 2006 Part II
Andritz Investor Days 2006 Part II: Andritz VA TECH HYDRO
Slide 19: Agenda
Agenda History of VA TECH HYDRO Andritz VA TECH HYDRO Business segments Integration of VA TECH HYDRO Summary 19
Slide 20: History of VA TECH HYDRO
History of VA TECH HYDRO The pioneers laid the foundations. We can draw on more than 160 years of experience and knowledge in the field of hydropower generation. Member of the ANDRITZ Group since June 2006 ESCHER WYSS VOEST ELIN SAT since 1805 since 1831 since 1892 since 1973 20
Slide 21: The merger of 2000 and the market positions today
The merger of 2000 and the market positions today 2000 Today Out of 8 global players in the World market shares1 hydro market 4 new ones were Andritz VA formed: TECH HYDRO 16% Others ABB +Alstom, 33% GE + Kvaerner, Voith + Siemens, Alstom Power VA TECH HYDRO + Sulzer GE Hydro 12% 22% Voith Sieme
Slide 22: Andritz today: global operations
Andritz VA TECH HYDRO today: global operations Jevnaker, Norway Prague, Czechia Ravensburg, Germany Vienna, Linz, Weiz, Graz, Austria Zurich, Vevey & Kriens, Switzerland Grenoble, France Schio, Italy < Stoney Creek, Canada Moscow, Russia Kiev, Ukraine Beijing, China Charlotte, USA Madrid, Spain Anka
Slide 23: Agenda
Agenda History of VA TECH HYDRO Andritz VA TECH HYDRO Business segments Integration of VA TECH HYDRO Summary 23
Slide 24: Five business segments
Five business segments Andritz VA TECH HYDRO Large Hydro Compact Pumps Generator Hydro Service Hydro Turbo Central Functions 24
Slide 25: Large Hydro
Large Hydro Shiwa Tidal Power Plant / Korea R GEST T A N LD’S L R PLA E WORL POW TIDA 25
Slide 26: Large Hydro: overview
Large Hydro: overview Large Hydro New plants Large Rehab Penstocks and gates Large Hydro contributes approx. 45 % to the Hydro Power Business Area‘s Sales: Electro-mechanical packages (85% of Sales) Product business: turbines, generators, penstocks Ozark/USA & gates, shut off devices, balance
Slide 27: Large Hydro: orders under implementation
Large Hydro: Orders under implementation Lower Olt River / RO Dolna Arda / BG PdF II & Gogosou / RO Karahnjukar / IS Tsankov Kamak / BG Ermenek / TR Glendoe / GB Rock Borcka / TR Island / US Limberg II / AT Deriner / TR Sihwa Hintermuhr / AT Tidal / KR Grand Nestil / CH Tong Bai / CN Coulee / US Kop
Slide 28: Bulgaria – Tsankov Kamak Hydro Power Plant
Bulgaria – Tsankov Kamak Hydro Power Plant O F THE First joint implementation project based on DE AL , NC IAL R (2003 Y) stipulations by the Kyoto Protocol: FINA YEAOMONE EUR Order volume: 200 MEUR; start-up in 2007 One new plant and refurbishment of existing River-Vacha cascade Greenhouse gas re
Slide 29: Large Hydro: full liner strategy
Large Hydro: Full liner strategy Gate Penstock Overview Automation, control, protection and excitation Hydro generator Valve Hydro turbine Gate Penstock Valve Gate Hydro turbine Hydro generator Automation Electro hydraulic turbine governor 29
Slide 30: Large Hydro: focussed strategy
Large Hydro: Focussed strategy Market strategy – Manufacturing strategy Project execution selective project approach Market/Customer Risk mitigation due to in- Focus on project access house production of core management Risk assessment components Innovative Solutions Attractive hit rate Po
Slide 31: Large Hydro: Innovation HYDROMATRIX
Large Hydro: Innovation HYDROMATRIX® HYDROMATRIX® technology HYDROMATRIX® benefits: Installation in existing civil structures (i.e. dams for irrigation) Add on renewable energy generation Low costs due to no additional civil works Standardised modular concept with Turbine generator unit high
Slide 32: Hydro Service
Hydro Service Therapy Diagnosis Analysis 32
Slide 33: Hydro Service: overview
Hydro Service: Overview Hydro Service contributes approx. 25 % to the Hydro Power Business Area‘s Sales: Hydro Service Rehab Service General overhaul/repair Plant assessment Upgrading/modernization Maintenance services Automation and control Spare parts services Monitoring and diagnosis syste
Slide 34: Hydro Service: strategy
Hydro Service: Strategy Achieve and maintain #1 position in the home markets Establish and grow business in the defined target markets, such as USA, Bulgaria, and Turkey Focus is on services, and on small and medium size modernisation projects Specific attention is on servicing the own insta
Slide 35: Compact Hydro
Compact Hydro VAULEGh] HYDRO
Slide 36: Compact Hydro: overview
Compact Hydro: Overview Compact Hydro contributes approx. 10 % to the Hydro Power Business Area‘s Sales Compact Hydro Compact Hydro benefits: Water-to-Wire packages for small and Decentralised renewable power medium-sized hydroelectric power plants generation up to an output of 15 MW: European
Slide 37: Compact Hydro: business features
Compact Hydro: business features Trend towards small, environmentally friendly hydro power plants New drivers are green energy bonus and Kyoto protocol Innovative solutions with low overall investment and fast implementation 37
Slide 38: Compact Hydro: Innovation ECOBulb
Compact Hydro: Innovation ECOBulb® Description Bulb type unit up to 5 MW with direct driven generator Environmentally friendly solution (reduction of noise, reduction of oil pollution risk) Overall economical solution by reduction of the civil work costs Benefits Low investment costs Low o
Slide 39: Pumps
Pumps VATLECLIHYDRO ANDRGTZ
Slide 40: Pumps: overview
Pumps: Overview Pumps contribute approx. 10 % to the Hydro Power Business Area‘s Sales PUMPS Large Scale Pumps Centrifugal Pumps for thermal power stations for the pulp & paper for irrigation plants industry for water supply systems for thermal power plants Double suction Centrifugal type
Slide 41: Generator Turbo
Generator Turbo Generator Turbo contributes approx. 10 % to the Hydro Power Business Area‘s Sales 41
Slide 42: Generator Turbo: overview
Generator Turbo: Overview Description Products Production of air-cooled turbo generators from 50 up to 175 MVA for GE gas turbine; manufactured at site in Weiz, Austria Turbo generators are used in gas- combined-cycle power plants and combined heat-and-power stations Turbo generators with a tota
Slide 43: Turbo generator
Turbo generator Thermal cycle Highlights Exhaust gases VA TECH HYDRO is the major Steam manufacturer of GE of air-cooled turbine turbo generators which are based on Turbo generator GE technology and have been partly Boiler co-developed by both partners. Air °°° Since 1991 we have shipped more th
Slide 44: Agenda
Agenda History of VA TECH HYDRO Andritz VA TECH HYDRO Business segments Integration of VA TECH HYDRO Summary 44
Slide 45: Integration of VA TECH HYDRO
Integration of VA TECH HYDRO Integration of VA TECH HYDRO into the Andritz Group focuses on three different areas: Markets Products Cross Functions 45
Slide 46: Integration of VA TECH Hydro: Markets
Integration of VA TECH Hydro: Markets Integration Existing overlaps: Markets Products Cross Service business for Austria and Germany Functions Large Hydro core component business in China Status of integration: Service business for Austria directed from Graz location (former HM Business Area)
Slide 47: Potential synergies: Andritz/Andritz VA Tech Hydro
Potential synergies: Andritz/Andritz VA Tech Hydro China: Northern Europe: Strong Andritz position with Waplans: Andritz share 40 %, ~ 80 Andritz Technologies employees China Sweden / Finland Strong Andritz position in Pulp and JV Andritz Kenflo Paper, but also in Hydro service Selective
Slide 48: Integration of VA TECH HYDRO: Products
Integration of VA TECH HYDRO: Products Integration Markets Products Cross Functions The entire product range of VA TECH HYDRO and Andritz HM will be integrated into the Hydro Power Business Area All activities for “small turbines” so far handled by Andritz Graz will be integrated into the Compact
Slide 49: Integration of VA TECH HYDRO: Cross Functions
Integration of VA TECH HYDRO: Cross Functions R&D Integration Andritz HM will be fully integrated into the VA Markets Products Cross Functions TECH HYDRO’s R&D program Engineering Harmonization of all computation and design (CAD) tools and software Organizational integration Integration has been
Slide 50: Integration of VA TECH HYDRO: Improvement projects
Integration of VA TECH HYDRO: Improvement projects Part of the integration process is also to identify and address areas with improvement potential; the following projects have been initiated: Competitiveness of Hydro generator business Market and manufacturing strategies for India - Legal and org
Slide 51: Agenda
Agenda History of VA TECH HYDRO Andritz VA TECH HYDRO Business segments Integration of VA TECH HYDRO Summary 51
Slide 52: Summary
Summary Hydro Power in general is the most developed and feasible renewable energy with highly proven technology supporting the Kyoto target. Andritz VA TECH HYDRO … … takes advantage of continuous market growth for investments in the electrical power industry … is well positioned as one of the
Slide 53: Summary
Summary The first 100 days in the new environment have shown that both customers and employees welcome the new structure and that our business development continues successfully Integration is also proceeding well due to our staff’s full commitment. We are well positioned for new, future challeng
Slide 54: Thank you very much!
Andritz VA TECH HYDRO Your partner for renewable and clean energy! Thank you very much! 54