Market Research Report : Wind Energy Market in China 2014 - Sample

Wind Energy Market – China

August 2014

2 WIND ENERGY MARKET IN CHINA 2014.PPT

Executive Summary

Market

Drivers & Challenges

Competition

Global cumulative installed wind power capacity is expected to reach x GW growing with a CAGR of a% during 20-- - --

Wind power cumulative installed capacity in China is expected to reach around y GW in 20-- growing with a CAGR of b% between 20-- and 20--

Major Players

Company A Company B Company C Company D

Government Initiatives

Key Policies to Develop Wind Power

National Renewable Energy Law

National Initiatives

Different Level Key Policies

Drivers:

Growing Energy Demand

Untapped Potential

High Investment Potential

Reduction in CO2 Emission

Challenges:

Oversupply Condition

Tariff Constraints

Lack of Grid Connectivity

Off-Shore Wind Power Development

Development of Domestic Manufacturers

Reliance on Coal-fired Power Plants

Trends

3

•Market Overview

• Global

• China

•Major Wind Power Bases

•Drivers & Challenges

•Government Initiatives

•Trends

•Mergers & Acquisitions

•Investment Scenario

•Competitive Landscape

•Strategic Recommendation

•Appendix

WIND ENERGY MARKET IN CHINA 2014.PPT

4

Cumulative installed wind power capacity has witnessed steady growth over the past years

D

C

B

A

0

GW

x

2013

a14

2012

a13

2011

a12

2010

a11

2009

a10

2008

a9

2007

a8

2006

a7

2005

a6

2004

a5

2003

a4

2002

a3

2001

a2

2000

a1

Global Cumulative Installed wind Capacity: Historical Data

• Global cumulative installed wind power capacity is expected grow at CAGR of x%, to reach a GW by the end of 20--

• By the end of 20-- , six countries had more than 10 GW cumulative installed capacity including China , US, Germany ,Spain, India and UK

• Asia now leads ahead of other regions within the global wind market Asian market is expected to grow at an annual cumulative

capacity rate of more than x% over the coming five years

• Top ten companies account for x% share of the global wind energy market in 20--

Global Market – Overview (1/x) Global Market Share (2013)

c

h

a

d

g f

e b

j

i g

c

f

i

j

h

e

d

b

a


5

SAMPLE

In 2013, newly installed capacity in China accounted for x% of the global annual wind power capacity

• XX

• XX

• XX

• XX

• XX

• XX

Domestic Market – Overview (1/x) New Installed Capacity: Top 5 Provinces (2013)

Rank: Cumulative Installed Capacity (2013) Rank: New Installed Capacity(2013)

A5

A4

A3

A2

A1

0

GW

India

a5

Spain

a4

Germany

a3

USA

a2

PR China

a1 DD

CC

BB

AA

0

GW

Canada

E

India

D

UK

C

Germany

B

PR China

A

48.5%

5.5% 8.0%

8.1%

10.2%

19.6%

Others

Ning Xia

Shan Dong

Shan Xi

Inner Mongolia

Xin Jiang


6

SAMPLE Domestic Market – Overview (2/x)

B

A

0

GW

x

2013

a8

2012

a7

2011

a6

2010

a5

2009

a4

2008

a3

2007

a2

2006

a1

China Installed Wind Capacity: Historical Data

China Installed Wind Capacity: Forecasted Data

C

B

A

0

x1

2018e

aa5

2017e

aa4

2016e

aa3

2015e

aa2

2014e

aa1

Cumulative Installed Capacity

0

20

40

60y1

2018e

bb5

2017e

bb4

2016e

bb3

2015e

bb2

2014e

bb1

Annual Installed Capacity

Annual installed wind power capacity in China is expected to reach AA GW by 20--

Cumulative Installed Capacity

B

A

0

GW z y

2013

b8

2012

b7

2011

b6

2010

b5

2009

b4

2008

b3

2007

b2

2006

b1

New Installed Capacity


7

East Inner Mongolia region is expected to build x wind power plants with a total capacity of x GW by 20--

• XX

• XX

• XX

• XX

• XX

• XX

• XX

• XX

East Inner Mongolia Base – Overview Wind Power Target

Planned Construction (20--)

Base Unit Capacity Cost (USD/Kw)

20--e 20--e 20--e

XX 1,119.4 1,074.62 1,044.77

East Inner Mongolia – Unit Capacity Cost

Coverage Area

XX

Location Units Capacity (GW)

AA 24 6.75

BB 16 7.45

CC 11 3.85

DD 4 1.6

EE 1 0.15

D

C

B

A

0

GW

X

2020 (planned)

A3

2015 (planned)

A2

2010 (installed)

A1

Note: m/s – Meters/second


8

SAMPLE Electricity demand projected to grow at x% CAGR during 20-- - -- is poised to drive wind energy growth in China

Growing Energy Demand (2/x)

Note: Mtoe – Mn tonnes of oil equivalent; Production in TWh (Tera Watt Hours); Power Capacity in GW; HP: Hydro Power; WP: Wind Power; CFP: Coal Fire Power

Electricity Demand

Expected Wind Power Role (2050)

G F E D C B A 0

Production Y y1 y2 y3 y4 y5

Power Capacity X x1 x2 x3 x4 x5

Hydro Power Wind Power PV Nuclear Others

B

A

0

Twh

x

2035

b6

a6

2030

b5

a5

2025

b4

a4

2020

b3

a3

2015

b2

a2

2008

b1

a1

China World


9

Growing emphasis on renewable energy to act as a major growth driver for the wind energy market in China

• AA

• AA

• AA

• AA

• AA

• AA

• AA

• AA

• AA

Focus on Renewable Energy Impact

Category 20-- – 20-- (USD bn)

Solar Water Heater and Surface Geothermal Energy x1

Biomass x2

Solar Power x3

Wind Power x4

Others X

Investment Potential (12th FYP) Renewable Energy Targets

D

C

E

0%

B

A

GW 226

A1

A2 A4 A3

2009 2020e

362

B1

B2 B3 B4


Solar PV

Hydro Power Wind Power

Biomass Power

10

SAMPLE

Weak grid connectivity to have an adverse impact on the Chinese wind energy market

• XX

• XX

• XX

Weak Grid Connectivity Impact

X

XX XX XX

• Transportation of wind-generated energy requires high investment in the latest generation of

ultra-high voltage (UHV) transmission lines

• Growing investment in wind power generation without grid connectivity to absorb the generated

power has emerged as a major challenge to the wind energy market in China


11

SAMPLE Several policies have been adopted by the Chinese government..

National Initiatives

Industrial Policy

• XX

• XX

• XX

• XX

• XX

• XX

• XX

• XX

Standards Setting

• XX

• XX

• XX

• XX

• XX

• XX

• XX

• XX


12

SAMPLE … wind turbine generator system manufacturing, project construction costs, quality assurance and installation

Standard Name Standard Number

X --

X --

X --

X --

X --

X --

X --

X --

X --

4. Wind Energy Technical Standards – Summary (2/x)


13

The market was mainly dominated by domestic companies in 20--

• XX

• XX

• XX

• XX

• XX

• XX

Development of Domestic Manufacturers

Growing domestic

participation in equipment

manufacturing

Market Share – New Installed Capacity

100 90 80 70 60 50 40 30 20 10 0

a3

2006 x1 x2 x2 %

2009 c1 c2

2008 b1 b2

2007 a1 a2

Joint Ventures

Foreign-funded Enterprises in China

Chinese Brands

Market Share (20--)

x y

Others Top 10 Companies

a

Chinese Companies


14

SAMPLE Mergers & Acquisitions (M&A)/Private Placement (6/x)

Announced Date Closed Date Transaction Type Target Buyer/Investors Sellers Deal Size (USD mn)

-- -- -- -- -- -- --

-- -- -- -- -- -- --

-- -- -- -- -- -- --

-- -- -- -- -- -- --

-- -- -- -- -- -- --

-- -- -- -- -- -- --

Note: Data for 2013 and 2014


15

SAMPLE Investment Overview (1/x)

Datang International Power Generation Co. Ltd. – Investment Overview

Dongfang Electric Corporation Ltd. – Investment Overview

Note: Data for 2013 – 14

C F E

D

A

B

Materials

Consumer Discretionary

Financials

Energy

Industrials

Utilities

X

Y

Electric Utilities

Independent Power And Renewable Electricity

B

C

A

Information Technology

Utilities

Industrials

Y

X

Engines and Turbines

Motors and Generators


16

SAMPLE Market Competition – Porter’s Five Forces Analysis

• XX

• XX

• XX

• XX

• XX

Bargaining Power of Suppliers

Threat of New Entrants

Competitive Rivalry Bargaining Power of Buyers

Threat of Substitutes

Impact X

Impact X

Impact X Impact

X

Impact X

OIL AND GAS MARKET IN CHINA 2014.PPT

17

SAMPLE Competitive Benchmarking (1/x)

Public Trading Comparables (FY 2013)

Company A Company B Company C

Market Capitalization (USD mn) - - -

Share Price (USD) - - -

EV/EBITDA (x) - - -

EV/Revenue (x) - - -

PE Ratio - - -

Note: Top 3 Public companies based on the Market Capitalization; Market Capitalization is as on 25/06/20--, Share Price is as on 25/06/20-- and PE ratio is as on 24/06/20--


18

SAMPLE Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (2/3)

Competitive Benchmarking (3/5)

Y

X

0

%

Company C

y3 x3

Company B

y2 x2

Company A

y1 x1

Return on Capital Employed Return on Equity

Z

Y

X

0.0

Company C

x3

Company B

x2

Company A

x1

Current Ratio

• XX

• XX

• XX

• XX

• XX


19

SAMPLE

Key People

Products and Services

Company Information Locations – China

Corporate Address

XX

Tel No. XX

Fax No. XX

Website XX

Year of Incorporation XX

Ticker Symbol XX

Stock Exchange XX

Category Products/Services

Oil and Gas XX

Oil Refining XX

Petrochemicals XX

Services XX

Name Designation

Chunguang Li XX

Xinhua Wang XX

Xiyou Cai XX

Houliang Dai XX

Headquarters

Public: Domestic Company – Company A (1/4)


20

SAMPLE

Financial Snapshot Key Ratios

Financial Summary

• XXX

Financial Summary

Profit / Loss Total Income

10,92410,24811,61510,887

0

5,000

10,000

15,000XX

XX

XX

0

2011

398,831.9

2010

291,179.1 447,424.0

Total Income USD mn

Profit USD mn

2013

477,133.8

2012

Indicators Value (26/06/20--) Market Capitalization (USD) XX

Total Enterprise Value (USD) XX

EPS (USD) XX

PE Ratio (Absolute) XX

Particulars y-o-y

change (2013-2012)

2013 2012 2011 2010

Profitability Ratios

Operating Margin -0.15 3.38% 3.53% 4.19% 6.11%

Net Margin 0.00 2.29% 2.29% 2.91% 3.74%

Profit Before Tax Margin 0.04 3.29% 3.25% 4.16% 5.40%

Return on Equity -1.02 10.64% 11.66% 14.43% 15.91%

Return on Capital Employed -1.18 12.05% 13.23% 15.06% 17.79%

Return on Working Capital 17.25 -49.17% -66.42% -103.89% -154%

Return on Assets -0.76 7.07% 7.83% 9.21% 11.78%

Return on Fixed Assets -1.23 11.77% 13.00% 15.57% 18.61%

Cost Ratios

Operating costs (% of Sales) 0.14 96.61% 96.46% 95.79% 93.87%

Administration costs (% of Sales) 0.30 4.35% 4.05% 4.17% 4.43%

Interest costs (% of Sales) -0.03 0.37% 0.40% 0.37% 0.42%

Liquidity Ratios

Current Ratio -8.26% 0.65 0.71 0.77 0.77

Cash Ratio 34.03% 0.16 0.12 0.16 0.19

Leverage Ratios

Debt to Equity Ratio -11.38% 0.42 0.48 0.38 0.45

Debt to Capital Ratio -7.99% 0.30 0.32 0.27 0.31

Interest Coverage Ratio 4.96% 9.22 8.78 11.41 14.72

Efficiency Ratios

Fixed Asset Turnover -5.62% 3.47 3.68 3.70 3.03

Asset Turnover -5.96% 2.08 2.21 2.19 1.92

Current Asset Turnover 1.16% 7.72 7.63 7.31 7.35

Working Capital Turnover -22.86% -14.48 -18.78 -24.69 -25.11

Capital Employed Turnover -5.37% 3.25 3.44 3.59 2.92

Improved Decline



21

SAMPLE Key Business Segments Key Geographic Segments

Key Recent Developments

Description News

Overview • XX

Reserves • XX

Business highlights

• XX

27.8%

31.3% 30.9% 31.2% 31.0%

29.2% 27.8% 26.9% 27.0%

28.0%26.0%24.0%9.9%

5.0%5.4%5.6%

0%

50%

100%

2013

9.0%

2012

8.7%

2011

9.7%

2010

5.6%

D B E C A

78% 75% 73%

25% 27%22%

100%

0%

50%

100%

2012 2013 2011 2010

0%

B A



22

SAMPLE

• XX • XX

• XX • XX

T O

W S

Public: Domestic Company – Player A (4/4)


Strength Weakness

Opportunity Threat

23

SAMPLE

Private: Domestic Company – Player B (1/3)

Key People

Products and Services

Company Information Locations – China

Corporate Address XX

Tel No. XX

Fax No. XX

Website XX

Year of Incorporation XX

Category Products/Services

Turbines XX

Services XX

Name Designation

Liu Dongyuan XX

Headquarters Other Offices


24

SAMPLE Description News

Overview XX

Certification XX

Project Development XX

Key Recent Developments

Private: Domestic Company – Player B (2/3)


25

SAMPLE

• XX • XX

• XX • XX

T O

W S

Private: Domestic Company – Player C (3/3)


26

SAMPLE Strategic Recommendations

Focus on AA Sector

• XX

AAAAAA

Focus on BB Sector

• XX

CC

• XX


27

Thank you for the attention

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Market Research Report : Wind Energy Market in China 2014 - Sample

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