Siemens Power Generation in China. Lothar Herrmann, Siemens PG China

Transcription

1 Siemen Power Generation in China Lothar Herrmann, Siemen PG China Siemen Day in China March 16 th, 2005

2 Safe Harbor Statement Thi preentation contain forward-looking tatement and information that i, tatement related to future, not pat, event. Thee tatement may be identified either orally or in writing by word a expect, anticipate, intend, plan, believe, eek, etimate, will or word of imilar meaning. Such tatement are baed on our current expectation and certain aumption, and are, therefore, ubject to certain rik and uncertaintie. A variety of factor, many of which are beyond Siemen control, affect it operation, performance, buine trategy and reult and could caue the actual reult, performance or achievement of Siemen worldwide to be materially different from any future reult, performance or achievement that may be expreed or implied by uch forward-looking tatement. For u, particular uncertaintie arie, among other, from change in general economic and buine condition, change in currency exchange rate and interet rate, introduction of competing product or technologie by other companie, lack of acceptance of new product or ervice by cutomer targeted by Siemen worldwide, change in buine trategy and variou other factor. More detailed information about certain of thee factor i contained in Siemen filing with the SEC, which are available on the Siemen webite, and on the SEC webite, Should one or more of thee rik or uncertaintie materialize, or hould underlying aumption prove incorrect, actual reult may vary materially from thoe decribed in the relevant forward-looking tatement a anticipated, believed, etimated, expected, intended, planned or projected. Siemen doe not intend or aume any obligation to update or revie thee forward-looking tatement in light of development which differ from thoe anticipated. 2

3 Siemen Siemen Siemen intalled firt generator for illuminating the Shanghai harbor in 1879 Contructed China firt tram line and related power plant in Beijing in 1899 Today Siemen PG China: Deign and deliver component for foil power plant (incl. CCPP) Supplie part, provide ervice, offer modernization and upgrade for power plant Fact & Figure Supplie intrumentation and control equipment for power plant Supplie turbine and compreor for indutrial application Buine Opportunitie We are the leading partner for the Chinee power indutry 3

4 Country etup Siemen Number of location 15 (incl. JV) thereof ale & ervice 9 thereof manufacuring 6 Number of employee 6,650 (incl. JV) Power Plant Site* 16 with power generation capacity of ~14 GW (* Yuhuan 4x1000 MW till under contruction) Fact & Figure Buine Opportunitie 4

5 Joint venture unit Local partner in China Siemen 100 % Siemen Ltd., China Joint Joint Venture Venture Figure for FY 04 Shanghai Electrical Co. (SEC) SIEMENS AG 32 % Shanghai Turbine Co. Deign, manufacturing / ale of team turbine (50 to 1,300MW) 68 % Shanghai Turbine Work 40 % Shanghai Turbine Generator Co. Deign, manufacturing / ale of el. generator (50 to 1,000MW) 60 % Shanghai Electric Machinery Manufacturing Work 30 % Shanghai Power Equipment Co. Deign, manufacturing / ale of power plant auxiliary equipment 70 % Shanghai Power Station Auxiliary Equipment Work 35 % Shanghai Advanced Power Project Co. Project management for power project implementation 65 % Shanghai Electrical Corp. Fact & Figure 60 % Shanghai Power Plant Automation Ltd Sale and Service for I&C, electr.-/ IT-equipment and olution 50 % Long Wei Mod, repair & maintenance / field ervice for power plant 51 % Siemen Ga Turbine Part Ltd Manufacturing & Sale for hot ga path part 40 % 50 % 49 % Buine Opportunitie Nanjing Automation Equipment Factory State Power Technical Environment Group Co. Shanghai Electrical Corp. 5

6 Intalled capacity in China Siemen Market Environment Fact & Figure Thermal, Hydro and Nuclear (in GW) Hydro GT/CC Wind Coal Fired Nuclear + other Wind Power 806 GW (in GW) GW GW GW 357 GW GW GW GW GW , ,57 0,6 0, ,4 0, // e 2005 e 2010 Buine Opportunitie We participate through joint venture Source: China Electricity Council 6

7 China power market Siemen Per Capita Conumption 1,582 kwh in 2004 which i till about only half of world average (USA above kwh) Power generation in 2004 Market Environment Fact & Figure 2187 TWh with annual growth of 14.5% Increaed utilization and efficiency of exiting plant Macro Control Policie The tide of project approval for power generation project ha been curbed by the policy meaurement a following : 1. Taken back the approval right from local level 2. Stringent bank loan 3. Strictly carried out the environment aement procedure Still domination by coal power Buine Opportunitie Shortage of Power Supply China' intalled capacity of power till failed to meet it demand Power upply demand i expected to be baically balanced by the end of 2007 Wind power and other renewable energy technologie will gradually play ignificant role in the future Continuouly high market demand 7

8 Wind power in China Siemen Market Environment Fact & Figure China firt MW Wind farm contruction tarted late MW of total intalled capacity completed by the end of 2004 Ambitiou national plan till 2020 ha been drafted: 4,000 MW by ,000 MW by ,000 MW by 2020 Accelerating wind power commercialization proce through NDRC franchied project A many a 40 wind farm being under planning and contruction Policy in favor of China wind power indutry through requet for increaed local content Main Player in the Market a % of intalled fleet Total Fleet per 2004: 600MW Gamea 20% Gold Wind 16% Veta 40% Nordex 12% Siemen (Bonu) 5% GE 3% Other 4% Buine Opportunitie Wind power growth driven by ambitiou national plan 8

9 Siemen PG at a glance Siemen FY2004 FY2003 Sale (in mn RMB) (excl. minority JV ) 1,655 1,037 Capex & Invetment (in mn RMB) Fact & Figure Employee (excl. minority JV ) Buine Opportunitie 9

10 Foil power plant in operation Siemen Dalian 2x350 MW Hanfeng 2x660 MW Heilongjiang Jilin Dandong 2x350 MW Fact & Figure Yangcheng 6x350 MW Xin jiang Yuzhou 2x350 MW Mingzhu 2x48 MW GTPP Zhuhai 2x828 MVA Geno Coloane.B 2x48 MW GTPP Qinhai Tibat Gan Sichuan Inner Mongolia Beijing Tianjin Hubei Ningxia Shanxi Shandong Su Shaanxi Chongqing Gui Zhou Henan Hubei Hunan Anhui Jiangxi Liaoning Jiangu Zhejiang FuJiang Rizhao 2x350 MW Yangzhou 2x600 MW Ligang II 2x350 MW Shanghai Waigaoqiao 2x900 MW Yanghupu 2x125 MW Yangpu 2x137 MW GTPP Yunnan Guangxii Guangdong Taiwan Fuzhou 2x350 MW Hongkong Macau Hainan Fuhuade 1x157 MW GTPP Buine Opportunitie We intalled 16 power plant during the lat decade with ~14GW generating capacity 10

11 PG Indutrial Application project Siemen Hancheng Power Plant - BFPT Nanjing BASF-YPC - Compreor train. 3 order Jinchuan - MAC Longmen ISCO - MAC Tianji Revamp -Compreor Train Tonghi (APCI) - Compreor Nanjing ISCO - MAC Yangtze River Acetyle - Compreor train Meihan ISCO -Blower Drive ST SECCO Co-made - STG Fact & Figure Buine Opportunitie APP Jiangling - STG (2x120MW) Package CSPC (Shell Nanhai) - STG (4x60MW) package - Compreor train WISCO - MAC Jianlong ISCO - MAC Over 400 Siemen indutrial turbine and compreor have been intalled in China 11

12 PG Intrumentation & Control project Siemen Fact & Figure Buine Opportunitie Zhangjiakou 2x300 MW Yangliuqing 2x300 MW Daihai 2x600 MW Zhunge er Guohua 2x330 MW Yangquan1#+2# 2x300 MW 3#+4# 2x300 MW * Hanfeng 2x660 MW * Yangcheng 6x350 MW * Zhaoguang 2x300 MW Dingzhou Guohua 2x600 MW Dezhou Huaneng 2x660 MW Laichang 2x300 MW Yangzhou 2x600 MW * Hangzhou Ditrict Heating 1x220 t/h Diandong 4x600 MW Mingzhu C 50 MW CCPP Taihan Guohua 2x600 MW * = Supply with TELEPERM XP Beijing Shanghai Daqing 3x200 MW Shuangliao 1x300 MW Gaobeidian Huaneng 2x830 t/h Dalian Chemical 1x220 t/h Longkou 2x200 MW Shengli 2x200 MW Rizhao 2x350 MW * Wuxi 1x63 MW CCPP Shunlong Fenghan 51 MW CCPP Suzhou Huaneng 2x300 MW Suzhou Coatal 51 MW CCPP Jinhan 4x100 MW Yanghupu 2x125 MW Jiaxing 2x300 MW Taizhou 2x330 MW Ninghai 4x600 MW Jinhua 2x55 MW CCPP Fuzhou 2x350 MW Taihan Extenion 3x600 MW So far more than 80 power plant in China have adopted our I&C Sytem or Equipment 12

13 Future trategy Siemen Improve local preence through SEC and other local partnerhip Participate through Joint Venture in all power plant type project Introduce new technology to China Fact & Figure Buine Opportunitie Participate in: GT/CCPP Project Ultra upercritical STPP NPP program Indutrial application project 13

14 Summary Siemen Siemen PG i a leading partner for the Chinee power indutry Siemen PG participate through joint venture in project for all power plant type Siemen PG intalled 16 power plant during the lat decade with more than 14GW generating capacity Over 400 Siemen indutrial turbine and compreor have been intalled in China Fact & Figure So far more than 80 power plant in China have adopted Siemen I&C Sytem or Equipment Buine Opportunitie PG i going to further improve it local preence through SEC and other local partnerhip and will introduce new technologie to China 14

15 Reconciliation and definition Group profit from Operation i reconciled to Income before income taxe of Operation under Reconciliation to financial tatement on the table Segment information. See Financial Report/Fical 2004, Quarter 4 / Financial Statement at our Invetor Relation webite under ROE (Return on equity) margin for SFS wa calculated a SFS income before income taxe divided by the allocated equity for SFS. Allocated equity for SFS a of September 30, 2004 wa billion. See alo Siemen Form 20-F at our Invetor Relation webite under The allocated equity for SFS i determined and influenced by the repective credit rating of the rating agencie and by the expected ize and quality of it portfolio of leaing and factoring aet and equity invetment and i determined annually. Thi allocation i deigned to cover the rik of the underlying buine and i in line with common credit rik management tandard in banking. The actual rik profile of the SFS portfolio i monitored and controlled monthly and i evaluated againt the allocated equity. Siemen tie a portion of it executive incentive compenation to achieving economic value added (EVA) target. EVA meaure the profitability of a buine (uing Group profit for the Operating Group and income before income taxe for the Financing and Real etate buinee a a bae) againt the additional cot of capital ued to run a buine, (uing Net capital employed for the Operating Group and rik-adjuted equity for the Financing and Real etate buinee a a bae). A poitive EVA mean that a buine ha earned more than it cot of capital, and i therefore defined a value-creating. A negative EVA mean that a buine i earning le than it cot of capital and i therefore defined a value-detroying. Other organization that ue EVA may define and calculate EVA differently. A reconciliation of EVA may be found on our Invetor Relation webite under 15

16 Siemen Invetor Relation Team Marcu Deimoni Dr. Contantin Birntiel Irina Pchelova Chritina Schmöe Webpage: Invetor Relation Fax: