130209 Siemens RO
Content
Energy Sector
Siemens Transformers Siemens Romania CIPRIAN DUMITRASCU
Agenda
Market Overview Performance of TR in Romania Strategy and Outlook
Siemens s.r.l. 2013
Market Size Country overview
Population: GDP: Currency: Area: Capital:
19,5 Mio 134‘‘787‘ EUR Romanian Lei (RON) 237,500 km2 Bucharest (~2M people in metropolitan area)
Transformer Market 50000 45000
Sources:
40000
Own info
35000 30000 DT 25000 PT
Market intelligence
20000 15000 10000 5000 0 2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Siemens s.r.l. 2013
Customer Overview Grid Parameters
Customers
Transmission
HV: 400kV
Transelectrica
Production Hidroelectrica, Termoelectrica Nuclearelectrica
HV: 220kV
HV: 110kV
MV: 20, 10, 6kV
LV: 0.4 kV
Distribution
Enel , CEZ, E.ON , Electrica
Various Industry customers (coal, metals, chemical, paper, etc.)
Various EPC and wind project companies, e.g.
Verbund
Enel Green Power
Energobit
Elcomex
Siemens s.r.l. 2013
Utilities – Purchasing Strategy Company
Acceptance for Siemens
RC
Factories
~
EON
Position of local competitors
Comments
DT usually done by locals
-
No investment in PT Investments done & reduction expected;
~
ENEL
~
Tender frame contracts; Homologation mandatory, existing for DT. PT local and italian competitors Change of strategy new vector group. Very tough
CEZ
~
-
commercial conditions.
-
No investment so far in DTs. Tende r frame contract for PT lost against local producer.
Electrica (state owned)
~
-
Take cheapest option, no points on technical aspects or
-
losses.
~
Transelectrica (state owned)
Production companies
Tough technical requirements. Electronic tender as rule.
~
-
-
Very limited investment due to lack of available funding.
Expandable business Wind customers (direct or EPC based)
-
-
Insist on having very good delivery : aprox. 6 months. Want cheaper solutions Sales force necessary
Siemens s.r.l. 2013
Agenda
Market Overview Performance of TR in Romania Strategy and Outlook Discussion
Siemens s.r.l. 2013
Order income + past years + actual + forecast
EPT013 ET TR 2011
New Orders Direct Business with third parties Direct business with affiliated companies Intra Company Business NEW ORDERS, DIRECT BUSINESS
2012
Forecast Q1 2013 YTD
Forecast Q2 2013 YTD
Forecast Q3 2013 YTD
Forecast Q4 2013 YTD
4,034
3,900
2,190
3,170
4,424
4,898
683 4,717
847 4,747
2,190
3,170
4,424
4,898
Net revenue Direct Business with third parties Direct business with affiliated companies Intra Company Business NET REVENUE, DIRECT BUSINESS
2,790
1,103
147
1,401
4,388
683 3,473
509 1,611
147
1,401
4,388
NEW ORDERS, International Business NET REVENUE, International business
17,984 17,428
6,319 11,248
1,803 2,452
7,200 9,200
Siemens s.r.l. 2013
Order Intake
In 2010 and 2011, Siemens had more than 30% market share as IBV. Every 2-3 years there is a low year, without significant market opportunities. Currently, financing crisis means lots of delayed projects. New government since end of 2012, uncertainty investment plan for the state owned companies. Evaluation of renewable energy support scheme in progress, unknown result for business plan. Uncertainty leads to delayed projects in renewable energy.
Allocated Factories Power Transformers
Distribution Transformers
≤40MVA (class I)
≤200MVA (class II)
≥200MVA (class III, IV, VI)
Oil Filled (class XII)
GEAFOL (class IX)
STAL (STN)
STAL (KPT)
KPT
DB (STAW)
DK (DB) Siemens s.r.l. 2013
Competitor Landscape PT and DT Name
Electroputere
Scope PT 110kV – 400kV
Retrasib
Description
PT 110-400kV
Elerom
DT & PT 110kV
ABB DT& PT
Schneider
DT
ETRA PT 110-400KV
Traditional RO transformer maker Always price agressive and on brink of bankrupcy, but trying to gain back market share Better quality than Electroputere; Recently trying to bid for lots of export business in CEE Won recent Tulcea Vest Project ( 3x250MVA )
Very herratic behaviour, active on some projects only More active in one region of Romania (E.on) Poland and Germany factory for class 2 units, very aggressive Italy factory for class 1 Distributors strategy for DT Market leader in DT, Competitive package combination with the MV panels. Former supplier for Siemens industry projects Recently almost no activity in RO Siemens s.r.l. 2013
Current Projects
Transelectrica: 2x63 MVA, Bradu : 2x400MVA + 2x200 MVA + 2x16MVA;
Wind business: 1x40MVA, 1x25MVA, 3x11MVA, 1x400MVA;
Stejaru HPP: 7xPTs between 40 and 200 MVA
Various small industrial customers for oil-filled and GEAFOL Distribution Transformers
Directly from DB: panel builder B&K Electrosistem
Siemens s.r.l. 2013
Agenda
Market Overview Performance of TR in Romania Strategy and Outlook
Siemens s.r.l. 2013
Business Outlook General market environment
Romanian economy stable within European Union area
No political pressure against Nuclear or overall Energy plans
Unclarity regarding the support scheme by green certificates for Wind and Solar Power -> delayed projects;
Further growth expected (GDP + 1,5% p.a. in 2013-2017)
Upcoming projects
Transelectrica: next frame agreement expected (5 pcs. 200MVA, 3 pcs. 400MVA, 2x100MVA shunt reactors)
Wind business 1000 MVA/year, for the next three years in case the legal frame remains unchanged;
Several CCHP projects in pipeline (Tulcea, Fagaras) – momentary on hold due to financial instability; Siemens s.r.l. 2013
Support from factories PN
100 MVA Shunt reactor Mintia : a impressive collection of problems, delays at every possible stage. Results: Customer penalty invoice in amount of 0’28 Mio Eur. Severe deterioration of Siemens image to the main transmission customer ( Transelectrica ) due to this project.
DK/DB
Delivery time far greater then market expectations (4-6 weeks)
Wrong factory allocation for dry types
Technical documentation not in line with customer expectations
KPT/STAL/STN
Proving that orders can be secured each fiscal year. Thanks for the constant help and support !
Main TS ( Tulcea Vest ) project in 2012 lost due to transformer prices promised before tender and not confirmed during e-biding stage. Approximately 1 million euro difference for 3 pcs. 250MVA transformers, mainly due to transport costs.
Siemens s.r.l. 2013
Feedback and wishes Demand side
Supply side
Overall market PT and DT seems to be increasing , further „white elephants“ expected;
Public utilities tend to move to electronic auction, therefore strong price pressure;
Further investments of wind power plants are expected for the next 2-3 years – around 4x250MVA /year in case legal frame remains unchainged;
No Chinese nor Koreean manufacturers active yet on the market ! Opportunity to be considered
Toshiba delivered 4x25MVA, SF6 MPT for Subway Project in Bucharest.
DT average delivery market requirement 4-6 weeks
Currently high Siemens market share will be very difficult to defend; Market price adaptation is necessary;
We strongly insist not to reduce TR headcounts in the RC from 2 to 1 persons. We will see volumes dropping as a result.
Siemens s.r.l. 2013
Transformers
Thank you ! Ciprian Dumitrascu Siemens SRL CEE RU-RO E T Str Preciziei, Nr 24, Corp H3, 062204 Bucuresti Romania Phone: +40-21-6296-628 Fax: +40-21-6296-395 Mobile: +40-744-516-273 [email protected] www.siemens.ro Siemens s.r.l. 2013
Safe Harbor Statement
Siemens s.r.l. 2013
Siemens Transformers Siemens Romania CIPRIAN DUMITRASCU
Agenda
Market Overview Performance of TR in Romania Strategy and Outlook
Siemens s.r.l. 2013
Market Size Country overview
Population: GDP: Currency: Area: Capital:
19,5 Mio 134‘‘787‘ EUR Romanian Lei (RON) 237,500 km2 Bucharest (~2M people in metropolitan area)
Transformer Market 50000 45000
Sources:
40000
Own info
35000 30000 DT 25000 PT
Market intelligence
20000 15000 10000 5000 0 2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Siemens s.r.l. 2013
Customer Overview Grid Parameters
Customers
Transmission
HV: 400kV
Transelectrica
Production Hidroelectrica, Termoelectrica Nuclearelectrica
HV: 220kV
HV: 110kV
MV: 20, 10, 6kV
LV: 0.4 kV
Distribution
Enel , CEZ, E.ON , Electrica
Various Industry customers (coal, metals, chemical, paper, etc.)
Various EPC and wind project companies, e.g.
Verbund
Enel Green Power
Energobit
Elcomex
Siemens s.r.l. 2013
Utilities – Purchasing Strategy Company
Acceptance for Siemens
RC
Factories
~
EON
Position of local competitors
Comments
DT usually done by locals
-
No investment in PT Investments done & reduction expected;
~
ENEL
~
Tender frame contracts; Homologation mandatory, existing for DT. PT local and italian competitors Change of strategy new vector group. Very tough
CEZ
~
-
commercial conditions.
-
No investment so far in DTs. Tende r frame contract for PT lost against local producer.
Electrica (state owned)
~
-
Take cheapest option, no points on technical aspects or
-
losses.
~
Transelectrica (state owned)
Production companies
Tough technical requirements. Electronic tender as rule.
~
-
-
Very limited investment due to lack of available funding.
Expandable business Wind customers (direct or EPC based)
-
-
Insist on having very good delivery : aprox. 6 months. Want cheaper solutions Sales force necessary
Siemens s.r.l. 2013
Agenda
Market Overview Performance of TR in Romania Strategy and Outlook Discussion
Siemens s.r.l. 2013
Order income + past years + actual + forecast
EPT013 ET TR 2011
New Orders Direct Business with third parties Direct business with affiliated companies Intra Company Business NEW ORDERS, DIRECT BUSINESS
2012
Forecast Q1 2013 YTD
Forecast Q2 2013 YTD
Forecast Q3 2013 YTD
Forecast Q4 2013 YTD
4,034
3,900
2,190
3,170
4,424
4,898
683 4,717
847 4,747
2,190
3,170
4,424
4,898
Net revenue Direct Business with third parties Direct business with affiliated companies Intra Company Business NET REVENUE, DIRECT BUSINESS
2,790
1,103
147
1,401
4,388
683 3,473
509 1,611
147
1,401
4,388
NEW ORDERS, International Business NET REVENUE, International business
17,984 17,428
6,319 11,248
1,803 2,452
7,200 9,200
Siemens s.r.l. 2013
Order Intake
In 2010 and 2011, Siemens had more than 30% market share as IBV. Every 2-3 years there is a low year, without significant market opportunities. Currently, financing crisis means lots of delayed projects. New government since end of 2012, uncertainty investment plan for the state owned companies. Evaluation of renewable energy support scheme in progress, unknown result for business plan. Uncertainty leads to delayed projects in renewable energy.
Allocated Factories Power Transformers
Distribution Transformers
≤40MVA (class I)
≤200MVA (class II)
≥200MVA (class III, IV, VI)
Oil Filled (class XII)
GEAFOL (class IX)
STAL (STN)
STAL (KPT)
KPT
DB (STAW)
DK (DB) Siemens s.r.l. 2013
Competitor Landscape PT and DT Name
Electroputere
Scope PT 110kV – 400kV
Retrasib
Description
PT 110-400kV
Elerom
DT & PT 110kV
ABB DT& PT
Schneider
DT
ETRA PT 110-400KV
Traditional RO transformer maker Always price agressive and on brink of bankrupcy, but trying to gain back market share Better quality than Electroputere; Recently trying to bid for lots of export business in CEE Won recent Tulcea Vest Project ( 3x250MVA )
Very herratic behaviour, active on some projects only More active in one region of Romania (E.on) Poland and Germany factory for class 2 units, very aggressive Italy factory for class 1 Distributors strategy for DT Market leader in DT, Competitive package combination with the MV panels. Former supplier for Siemens industry projects Recently almost no activity in RO Siemens s.r.l. 2013
Current Projects
Transelectrica: 2x63 MVA, Bradu : 2x400MVA + 2x200 MVA + 2x16MVA;
Wind business: 1x40MVA, 1x25MVA, 3x11MVA, 1x400MVA;
Stejaru HPP: 7xPTs between 40 and 200 MVA
Various small industrial customers for oil-filled and GEAFOL Distribution Transformers
Directly from DB: panel builder B&K Electrosistem
Siemens s.r.l. 2013
Agenda
Market Overview Performance of TR in Romania Strategy and Outlook
Siemens s.r.l. 2013
Business Outlook General market environment
Romanian economy stable within European Union area
No political pressure against Nuclear or overall Energy plans
Unclarity regarding the support scheme by green certificates for Wind and Solar Power -> delayed projects;
Further growth expected (GDP + 1,5% p.a. in 2013-2017)
Upcoming projects
Transelectrica: next frame agreement expected (5 pcs. 200MVA, 3 pcs. 400MVA, 2x100MVA shunt reactors)
Wind business 1000 MVA/year, for the next three years in case the legal frame remains unchanged;
Several CCHP projects in pipeline (Tulcea, Fagaras) – momentary on hold due to financial instability; Siemens s.r.l. 2013
Support from factories PN
100 MVA Shunt reactor Mintia : a impressive collection of problems, delays at every possible stage. Results: Customer penalty invoice in amount of 0’28 Mio Eur. Severe deterioration of Siemens image to the main transmission customer ( Transelectrica ) due to this project.
DK/DB
Delivery time far greater then market expectations (4-6 weeks)
Wrong factory allocation for dry types
Technical documentation not in line with customer expectations
KPT/STAL/STN
Proving that orders can be secured each fiscal year. Thanks for the constant help and support !
Main TS ( Tulcea Vest ) project in 2012 lost due to transformer prices promised before tender and not confirmed during e-biding stage. Approximately 1 million euro difference for 3 pcs. 250MVA transformers, mainly due to transport costs.
Siemens s.r.l. 2013
Feedback and wishes Demand side
Supply side
Overall market PT and DT seems to be increasing , further „white elephants“ expected;
Public utilities tend to move to electronic auction, therefore strong price pressure;
Further investments of wind power plants are expected for the next 2-3 years – around 4x250MVA /year in case legal frame remains unchainged;
No Chinese nor Koreean manufacturers active yet on the market ! Opportunity to be considered
Toshiba delivered 4x25MVA, SF6 MPT for Subway Project in Bucharest.
DT average delivery market requirement 4-6 weeks
Currently high Siemens market share will be very difficult to defend; Market price adaptation is necessary;
We strongly insist not to reduce TR headcounts in the RC from 2 to 1 persons. We will see volumes dropping as a result.
Siemens s.r.l. 2013
Transformers
Thank you ! Ciprian Dumitrascu Siemens SRL CEE RU-RO E T Str Preciziei, Nr 24, Corp H3, 062204 Bucuresti Romania Phone: +40-21-6296-628 Fax: +40-21-6296-395 Mobile: +40-744-516-273 [email protected] www.siemens.ro Siemens s.r.l. 2013
Safe Harbor Statement
Siemens s.r.l. 2013
