Analyst day – Russia & CIS

Grid

Grégoire Poux-Guillaume

15/03/2012

Agenda

Grid market size & drivers

Alstom Grid presence and achievements

Alstom Grid strategy in Russia & CIS

2

Market trends in Russia & CIS 2011-2014

• Russia Grid Market expected to increase by 7% / year for the period 2011-2014

- Large scale HVDC projects expected in Moscow area and border with EU

• Heterogeneous market in CIS

Source: Alstom

1.51.8 1.8 1.8

0.2 0.30.5

0.5

0.5 0.5

2011 2012 2013 2014

CISRussia (HVDC)Russia (traditional)

B€2.0

2.32.5 2.6

3

Grid Market evolution

Grid market in Russia

Power Generation

300 M€

Utilities750 M€

Oil & Gas150 M€

Industry & Infrastructure

300 M€

2011 Grid Market Breakdown by End Users • Transmission & Distribution companies are

the main players on the market

- FSK is modernising and investing in new technology – Smart Grid, Digital substations, R&D

- Power Generation sector led by RusHydro and Rosatom + foreign investors will start development

- Big plans for railways: tramways and high speed trains

- Oil & Gas: focus on modernisation and automation of refinery process

- Approaching Sotchi Olympic games will serve as driver to ensure growth

€ 1.5 bn

4

Grid market in CIS

• All countries recovering after severe economical crisis impact

• Kazakhstan: main CIS market (~50%)

• Flat global market with opportunities

- Transmission network rehabilitation launched in 2010 in Kazakhstan

- Grid rehabilitation and grid connections of new renewable energy projects in Ukraine

Kazakhstan

Tajikistan

Azerbaijan

Belarus

Ukraine

2011 Grid Market Breakdown by Countries

€ 500 M

5

ПетродворецЛенинградскаяАЭС-2

Преобразовательныйпункт (ПП)

Преобразовательныйпункт (ПП)

КЛ 300 кВпостоянного тока

26 км

ВЛ 300 кВпостоянного тока

62 км

ВЛ 330 кВпеременного тока

25 кмФинский залив

•Back-to-Back Vyborg• 4 x existing 350 MW to be reconstructed , with a Go for 500 MW• Start with new multi-terminal 1,000 MW

•HVDC line Point-to-Point Vyborg to LAES• 2 x (300 kV, 500 MW) • approximately 150km Submarine cable and Over-head lines

B2B Vyborg

HVDC Projects in Russia2012-2016

Back-to-back Vyborg RUS-FIN

Point-to-Point LAES NPP terminal

• Sibiria-Ural-Centre • Russia-Turkey • Russia-Norway Back-to-Back• Russia-Central Asia-India • Kaliningrad – Poland Back-to-Back• Kaliningrad – Germany Point-to-Point with submarine cable• Russia – China (2-3 projects) • HVDC Back-to-Back in St.-Petersburg and Moscow

Other potential HVDC Projects (2012-2016)Vyborg-LAES HVDC Scope in Russia (2012)

6

Smart Grid projects in Russia

FSK challenge: control of a large network with periodically distributed generation and loadsAlstom Grid closely cooperating with FSK on Cluster Pilot Project in Volga Region

SMART FACTSfor improved current

stability

Already under deployment with FSK

(Nadhezda)

DIGITAL SUBSTATIONboosting the performance

of grid substations

ON-LINE STABILITY SOLUTIONS

tracking power oscillations on wide area networks

SMART CITY MICROGRIDIntegrating and piloting

Distributed Energy Resources and Loads in local grids

Smart Grid Cluster Pilot Project in Volga Region

7

Competition

• ABB engineering and production capabilities in Russia

• SIEMENS entered the market through Power Generation

• HYUNDAI entering the market

• Russian Players (ELECTROZAVOD, TT, UETM)- Covering all power transformers (except HVDC and special transformers) and AIS switchgear- Developing GIS

8

Competitive market with international and local companies

Agenda

9

Grid market size & drivers

Alstom Grid presence and achievements

Alstom Grid strategy in Russia & CIS

Grid orders in Russia & CIS

2011/12 (e)

CISRussia

14%market share

10%market share

10

• 2011/12 (e) orders based on recurrent business

• Multiple channels to market: active cooperation with many EPCs

• Additional opportunities in aluminum and HVDC projects

App. € 200 M

Alstom Grid order intake

Grid in Russia Regional presence

North-West

Center

South

Ural

West Siberia

East Siberia

Far East

Main office -1Sales Offices -6

Factory of JV Alstom-Rusal

Joint Venture with RUSAL

Automation Business

Service Business

S. Petersburg

Moscow

Yekaterinburg Surgut

Irkutsk

Krasnoyarsk

New offices to be opened

KhabarovskRostov-on-Don

150 employees for Alstom Grid in Russia

11

Grid achievements in Russia

• Alstom Grid has signed a JV (51/49) agreement with KER to work jointly on HVDC projects in Russia

• Alstom Grid is working to boost the traditional AC business

- Active cooperation with FSK

- Strong relationships with a lot of local contractors

- On-going discussions to localise production in Russia (AIS and GIS switchgears)

• JV (50/50) with RUSAL – #1 Russian Aluminiumproducer. Good opportunities to continue in Mines & Metals and joint work in Power Generation

12

Recent achievement in Russia: Kubanski Cascade - Alstom(110 kV, 330 kV Gas-Insulated Substation)

End customer: RusHydro

Customer: Alstom Power

Project scope: Kubanski Cascade HPP (9 HPPs in cascade)

Turnkey project Installation of:- GIS (110 kV, 330 kV)- CBR (330 kV)- PTR (Power Transformer and Autotransformer) (110 kV, 330 kV) - AIS (110 kV)

Particularity: in cooperation with Alstom Power

Volume: over € 35 M

Commissioning: 2013 - 2015

13

Recent achievement in Russia: Alstom - RUSAL(Tajshet Aluminium Smelter)

End Customer: RUSAL

Project Scope: Tajshet smelter (Sayanogorsk, Siberia): 2007 to present, 2 potlines, 750,000 t/year of aluminium.

Turnkey project

Alstom equipment: - GIS (220 kV)

- 12 rectifiers 82.5 kA each, total current 400 kA- PTR (Power and Rectifier Transformers)

Volume: over € 110 M

Commissioning: 2013

14

Recent achievement in Russia: Alstom - RUSAL (Boguchany Aluminium Smelter)

End Customer: RUSAL

Customer: RUSAL & RusHydro

Project Scope: Boguchany smelter (Kodinsk, Siberia): 2007 to present, 2 potlines, 600,000 t/year of aluminium.

Turn key project

Alstom equipment: - GIS (220 kV)

- 10 rectifiers 82.5 kA each, total current 320 kA- PTR (Power and Rectifier Transformers)

Volume: over € 100 M

Commissioning: 2013

15

U K R A I N E

BELARUS

ROMANIA

MOLDOVA

HUNGARY

LITHUANIA

LATVIA

ESTONIA

CZECH REP.

SLOVAKIA

BULGARIA

Sofia

Bucharest

Budapest

Bratislava

Prague

Katowice

Vilnius

Riga

Kiev

Grid commercial representationGrid commercial representation

K A Z A K H S T A N

Astana

Almaty

CIS countries –Grid Organisation and Customers(Kazakhstan, Ukraine, Belarus, Tajikistan and Azerbaijan)

~30 Nb of Grid employees

KEGOC – State-owned 220 kV, 500 kV, 1150 kVconnected to Uzbekistan, Kyrgyzstan, Russia

Transmission customers

BELENERGO – state owned

220 kV, 330 kV, 750 kV6 regional utilities ~ 20 OHL connected to Russia, Lithuania, Ukraine, Poland

Ukrenergo – state owned

8 regional grids40.357 km OHLconnected to Belarus, Russia, Hungary,Moldova, Poland, Slovakia, Romania

POLAND

Tajikistan

Azerbaijan

BarkiTajik

AzerEnergy

16

Recent achievement in CIS: 500 kV Gas-Insulated Substation

Customer: Tajikistan National Utility Barki Tajik

Project: Substation for Nurek Hydroelectric Power Plant (Nurek HPP), the largesthydropower station in Central Asia, installed generation capacity of 3 gigawatts toproduce over 75% of Tajikistan's electricity

Particularity: The first ever project to use 500 kV Gas-insulated switchgear (GIS) technology in Central Asia

Volume: approx. € 30 M

Commissioning: January 201417

Agenda

18

Grid market size & drivers

Alstom Grid presence and achievements

Alstom Grid strategy in Russia & CIS

Strategic plan for Russia

Be a leading player in Russia through partnerships and localisation

• Continue cooperation with RUSAL to capture a big part of Aluminiumbusiness and develop joint work in industries

• Localise HVDC engineering with KER and be the main HVDC player in Russia

• Localise products (AIS and GIS Switchgear and Power Transformers) and secure long-term contracts with FSK

• Develop Smart Grid in Russia (on-going discussions with local actors & FSK)

• Continue strong partnership with local contractors and design institutes

• Enhance Service capabilities in Russia

Ambition

Action plan

19

Strategic plan for CIS

Increase Alstom Grid presence through turnkey projects and local partnershipsAmbition

Action plan

• Focus local teams on selected projects

- Transmission network rehabilitation in Kazakhstan and Ukraine- Hydro generation in Tajikistan in coordination with Alstom Power

• Develop local partnership

- Partnership in Ukraine and Azerbaijan with local partners - Build-up efficient channels-to-market in Kazakhstan

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