converteam corporate presentation march 2011

Corporate PresentationCONVERTEAM World Leader in Power Conversion

At the heart of customer process

Mechanical energy transformed into electrical

energy by a Generator

Electrical energy transformed into

mechanical energy by a Motor

Adjusting frequency and current through a

Converter or an Inverter

• Wind/Solar PV

• Railway substations

• Pulse power supply

• Soft starters

Electricity into MotionElectricity into Motion Motion into ElectricityMotion into Electricity Electricity into ElectricityElectricity into Electricity

• Wind Turbines

• Turbogenerators

• Hydropower

• Wet Renewables

• Compressors

• Propellers

• Rolling mills

• Pumps

Corporate Presentation - Copyright: CONVERTEAM March 2011 2

• Soft starters • Wet Renewables • Pumps

Wind FarmWind Farm Railway Substation Railway Substation Ship PropulsionShip Propulsion

Transforming energy to optimize customer process is our missionTransforming energy to optimize customer process is our mission

Drawing missing Drawing missing

A small but key part of customer spending

Cold Rolling MillCold Rolling Mill

Wind FarmWind Farm

Total Project ~ € 1-1.5 M / MW

Power Conversion ~ 10%

• Generators

• Converters

• Higher efficiency, higher profitability through the sale of extra electricity

• Higher reliability, higher availability: turbine protection

CAPEXCAPEX Our SolutionsOur Solutions Customer BenefitsCustomer Benefits


Cold Rolling MillCold Rolling Mill

Oil & GasOil & Gas

Total Project ~ € 30-300 M

Power Conversion ~ 10%

Total Project ~ € 50 M to 2 B

Power Conversion ~ 1% - 2%

• Extra revenues from increased availability

• Higher steel quality

• Steady production

• Safety

• Rolling mill process

• Plant automation

• Oil pumping and gas compression

• Natural Gas Liquefaction

Power Conversion market drivers

Technology substitution towards

• 40%+ efficiency for electric solution vs 20-35% for a gas turbine in a pipeline compression application

• Global energy demand growing 36% in ’10-’35 driven by infrastructure growth

• Double digit growth for renewable energies in ’10-‘14

Growth of our served industries

+


substitution towards electrical solutions • Electric propulsion for merchant and Naval ships

driving efficiency and environmental friendliness

Variable speed replacing fixed speed

for energy saving

• 30% average energy savings on large industrial pumps and fans

• +20% of electricity production for variable speed wind turbines vs fixed speed

+

=Power Conversion market growthPower Conversion market growth

We have come a long way

Spin offfrom ALSTOM

GEC1889

AEG1883

WESTINGHOUSE1886

(drive systems)

ELECTRIC MACHINERY

1891 (acquisition)

ALSTHOM1928

CGE1898


Over 100 years of GLOBAL experience Over 100 years of GLOBAL experience

1971

1989

1995

1999

End

200

5

CEGELECCEGELEC

Industrial Systems Group

ALSTOM Power

Conversion

2007

CGEALSTHOM

• Project Management & Total Quality

• Cycle Time Reduction

• Cost out & Standardization

The four pillars of our strategy

• Geographic organization

• Global footprint

• Life cycle services

Complete Solution Complete Solution OfferingOffering

• Optimizing the system architecture

• Mastering interfaces

• Continuously advancingtechnology

TechnologyTechnology& Innovation& Innovation

• A heritage of more than100 years’ experience

• Continuous innovation

• Customized solutions

ProximityProximity to to ourourCustomersCustomers

Excellence In Excellence In ExecutionExecution


Innovation is our DNA

• More than 2,500 chartered engineers

• Converteam supplies leading R&D institutes in the world, such as CERN, ESTD, National Fusion Research

Power supply to CERN, one of the leading global particle physics center – Geneva , Switzerland

30 30 MM€€ invested in R&D in 2010invested in R&D in 2010


European Project HTSHigh Temperature Superconductive generator

HYDROGENIE project, Germany

ESTD, National Fusion Research Institute of Korea, NARI and many more

• Breakthrough developments, such as HTS (High Temperature Superconductivity), subsea applications, high-speed motors

Some recent achievements that make us unique

World leader in wind converters. More than 20,000 MW supplied globally

EDF Paimpol first wet renewables with

MVDC collection (Brittany, France)

New business: 60 MW of Solar

inverters in 2010 in Europe and Africa

100+ high-speed motors sold

globally in the O&G industry

Ormen Lange Norway - power

conversion supplier to first subsea compressor

Offshore industry over 700 Dynamic

Positioning Systems supplied

worldwide

2010 2009 2010 2010 20102007


DDG1000 US Electrical propulsion for most advanced US Navy Destroyer

The first LNG carrier ever equipped with electrical propulsion

(GDF Energy)

1060MW Vattenfall Goldisthal PSPP -

The largest cycloconverter in

the world

ThyssenKrupp -Germany

The fastest tinning line in the world

(700 m/min)

South Africa The two deepest

hoist mine winders

The world leader in cranes for wind

turbine installation

2010 2009 2010 2010 20102007

2010 2002 2002 2007 20101998 & 2001

Our complete solution offering

++


Mechanical Equipment

Electrical Grid

Electrical Machines

Variable Speed Drives

Automation & Control

• Continuously advancing technology in critical components

• Optimizing the whole system architecture

• Mastering interfaces

The Converteam Way

A solution approach to improve the performance of e nd users’ processesA solution approach to improve the performance of e nd users’ processes

We are committed to helping our Planet


Actively curbing COActively curbing CO 22 emissionsemissions

• Leading supplier of power converters and generators for wind, solar and wet renewables

• Key player in high power renewable solutions to accelerate cost-effectiveness vs. fossil fuel generation

• Innovative motors and variable speed drives, able to reduce power consumption by 30% vs. fixed speed

• Key player in high speed motors as an environmentally friendly replacement for gas turbines in O&G

• Supplier of electrical machines and variable speed drives for CO2 emissions-free base load generation

• Active in nuclear fusion with leading edge power supply systems (CERN, K-Star)

Green Energy Green Technologies CO 2 free base load Generation

Our playground

Oil & Gas & Offshore Oil & Gas & Offshore RenewablesRenewables

PowerPower MarineMarine

Renewables

Industry

Power

11%

18%

23%


We provide power conversion solutionsWe provide power conversion solutionsacross all energy infrastructure marketsacross all energy infrastructure markets

IndustryIndustry ServicesServices

Oil & Gas and

Offshore

Services

18%

12%

18%

Renewables

Our OfferingOur OfferingOnshore Wind

• Wind Converters (for Doubly Fed, Full Power)

• Generators (Permanent Magnet Generators, Direct Drive, Hybrid and Standard Speed)

• Solar inverters

• Wind turbine drive train

• Power quality

Offshore Wind• Turbine drive train

• Wind farm architecture and power quality


• Solar inverters

• Power conditioning systems (grid compliance)

• Power collection and farm level architecture

• Marinized solutions (Wet)

Solar PV• Photovoltaics farms

(>500kW, architecture and power quality)

Wet Renewables• Tidal/Current/Wave farm architecture

and power quality

Oil & Gas and Offshore

Our OfferingOur OfferingOil & Gas Upstream

• Low and Medium voltage motors for pumps and compressors

• High-speed motors

• Field/Offshore generators

• Variable Frequency Drives

• Integrated motor-compressors

• Reinjection

• Gas Oil Separation Plants

• Offshore platforms

• Subsea Systems

Oil & Gas Midstream/Downstream• Pipelines

• Storage facilities

• LNG liquefaction & regasification

• Refining & Petrochemical


• Integrated motor-compressors

• Solutions for subsea electrification and compression

• Power Management and SCADA systems

• Dynamic Positioning & automation systems

• Drilling control systems

• Electric propulsion

• Refining & Petrochemical

Offshore Exploration/Construction• Seismic survey vessels

• Drilling rigs

• Pipe Layers

• Construction vessels

Offshore Production/Transportation• Floating production vessels

• Semi-sub production rigs

• Subsea Process Units

• Support Vessels

Power

Our OfferingOur OfferingFossil Power Plant

• Generators for energy services

• Generators for small hydro

• Motors and drives for pumps and fans

• Static Frequency Converters/Exciters/Soft Starters for generators

• Power Generators

• Auxiliary pump systems

• Emergency power supply

Nuclear• Auxiliary pump systems

• Emergency power supply


for generators

• Variable Speed Drives for Pump Storage Power Plant

• Special power supplies (transportation, nuclear fusion)

• Static Var Compensation for grid stability

Hydro• Pump Storage Power Plants

• Run-of-river plants

Special Power Supply• Special power supplies

(Railway substations…)

• R&D Labs special equipment (CERN)

Marine

Our OfferingOur OfferingMerchant - Passenger

• All electric propulsion

• POD solutions

• Electric generation & distribution

• Low/Medium voltage motors and drives

• Dynamic Positioning

• Cruise

• Mega Yachts

• Ro-Pax ferries

Merchant - Transportation• LNG vessels/tankers/ferries

• Heavy lift/Tugs

• Dredgers


• Dynamic Positioning

• Ship automation and propulsion control systems

• Power and distribution management systems

• On board processes (LNG, Floating Production Units, cooling, cranes...)

• Anti-roll systems/Shore connections)

Navy• Destroyers/frigates

• Aircraft carriers/Mobile Landing Platforms

• Amphibious ships

• Submarines

Special Vessels• Research ships

• Icebreakers

• Coast Guard

Industry

Our OfferingOur OfferingMetals

• Low and Medium voltage motors and drives (including cement, water treatment, sugar mills, ...)

• Medium and Low voltage distribution

• Instrumentation

• Automation & Control

• Blast/Arc Furnaces

• Hot & Cold rolling mills

• Processing lines

Mining• Winders/Hoists/Shovels

• Grinding Mills and Crushers

• Concentrators/Separators


• Automation & Control

• Process simulation for metals

• Static Var Compensation systems (SVC, D-SVC)

• Power collection and supply

• Energy storage systems

Material Handling• Container/Goliath cranes

• Conveyors and Ship Loaders/Unloaders

• Offshore cranes

Test benches• Automotive engine and gear

• Wind turbine drive train

• Aerospace (wind tunnels, helicopter gears)

Services

Our OfferingOur OfferingSpare Parts & Repairs Services

• Full range of lifecycle services for entire offering

• 45 Regional Business Centers to support global customers

• Experts in managing risks: from preventive maintenance to safe modernization and upgrades

• Spare parts availability

• Obscolescence management

• Component repairs & rotating machine refurbishment

Field Services• Installation, commissioning & start-up

• Maintenance, technical assistance & expert support

• Training services


modernization and upgrades

• Increased contractual approach to partner with customers

• Training services

Rewampings/Upgrades• Life extension projects

• Performance improvement

• Capacity upgrades

Long Term Service Agreement• From basic Time & Material to performance

based contracts

• Remote Monitoring & Diagnostics (VISOR)

• Fleet Management (Marine, Offshore, Navy)

Some of our Customers


We do care for our Customers and measure their sati sfaction continuouslyWe do care for our Customers and measure their sati sfaction continuously

Top Management Team

Vice CEO

Florent Battistella

President & CEO

Pierre Bastid

Executive Vice President

Finance, Controlling & Legal

Nicolas Lwoff

Senior Vice President

Chief Marketing Officer

Executive Vice President

HR & Communications

Hervé Borensztejn


Chief Operating Officer


China

India

Brazil

Senior Vice PresidentSouthern Europe,Middle East & AfricaPhilippe Lecois

Senior Vice PresidentCentral, Eastern Europe & RussiaAlfred Stobbe

Senior Vice PresidentNorth America

Mike Archibald

Senior Vice PresidentNorthern Europe

Steve Raynor

Senior Vice PresidentEmerging Units (acting)Florent Battistella

Chief Marketing Officer

Alex Martayan

Chief Operating Officer

Walter Ceglia


Chief Technology Officer

Alfred Permuy

Our global footprint

Rugby, United KingdomEstablished in 1889Manuf. area: 21 000 sqm

Nancy, FranceEstablished in 1898, new factory in 2002 ; Manuf. area: 21 000 sqm

UKKidsgroveGlasgow

7 Converter factories

4 Electrical machines factories

45 Regional Business Centers

12 Engineering Centers

FRANCE


BRAZILBelo Horizonte

100% of our engineering and production sites certif ied ISO 9001, 100% certified 100% of our engineering and production sites certif ied ISO 9001, 100% certified ISO 14001 or on the ISO 14001 or on the process.Totalprocess.Total safety including our customers and sup plierssafety including our customers and suppliers

Minneapolis, USAEstablished in 1897Manuf. area: 30 000 sqm

Yantai, ChinaEstablished in 2009Manuf. area: 16 000 sqm

GERMANY

Berlin

CHINA

Shanghai

USA

Pittsburgh

BRAZIL

Belo Horizonte

FRANCE

Massy

Regional organization for customer proximity

North America

Northern Europe

Central, Eastern Europe and Russia

Asia

Southern Europe, Middle East and Africa

1.400

1.100

890

560

520

430

26%

21%

17%

10%

10%

8%

5,300 employees5,300 employees

Pittsburgh

Rugby

BerlinMassy

Shanghai


South & Central Americas

430

200

200

Competency management: our priority• Permanent screening of key competencies and

development plans to secure long-term availability

• Knowledge management systems in place

• College of Experts and Converteam Academy

8%

4%

4%

RoW

A highly educated company • 60% of the workforce with a Bachelor or Master’s degree

minimum

• Partnerships with Universities, Engineering schools

• Permanent education as a key success factor: 80% of workforce trained at least yearly

We make our competencies available to our customers locally We make our competencies available to our customers locally

Belo Horizonte

Growth Platforms - China

Yantai

Beijing

Yantai (Rotating Machines)

• Established in September 2009

• Motors and generators factory

• Wholly owned by Converteam (100%)

• 99 Employees/19 Engineering

• Established in 2006

• Sales and representation offices

Beijing (Sales Offices)


Shanghai

Yantai

WuhanShanghai (HQ & Drives)

Wuhan (CONWAC-Metals-Eng)


• Established in April 2005

• HQ and drives factory

• Wholly owned by Converteam (100%)


• Established in April 2000

• Metals EPC company

• Joint-Venture WISET/WISCO (50%) and Converteam (50%)


Delhi

Delhi (Sales office)

Mumbai (Sales office)


• Sales, Service and representation offices

• 3 employees



• 2 employees

Growth Platforms - India


• HQ, Sales, Project Management, Sourcing, Engineering and R&D offices

• Drives Factory (opening 2011)

• 442 Employees / 380 Engineering

23

Chennai

MumbaiKolkata

Chennai (HQ & Engineering Co)

Kolkata (Sales offices)



• 6 employees

Growth Platforms - Brazil

Belo

• HQ, Sales, Service, Engineering center

• 143 employees / 100 Engineering

• Regional Business Office


Belo Horizonte (Established in 1981)

Vitória (Established in 2003)

• Service and sales office


Parauapebas (Established in 2009)

Parauapebas


Belo Horizonte

Betim

• Drives & Switchboards Manufacturing


• Sales Office


• Regional Business Office and Training Center

• 10 employees / 9 EngineeringMacae

Rio de Janeiro

Vitoria Macaé (Established in 2007)

Betim (Established in 2005)

Rio de Janeiro (Established in 2010)

Growth Platforms - Middle East & North Africa


• Sales, Service, representation offices

• Training platform in 2011

• 12 Employees

Abu Dhabi (Sales offices)


Abu Dhabi

Our growth story. Main KPI

Orders (M€)

777

1.426 1.370

801

1.092

'06A '07A '08A '09A '10A

• Hit by crisis but strong response ... +36% in 2010

• Consistent Renewables growth

• Power and Oil & Gas recovering


Sales (M€)

* CAGR between 2006 and 2010

• Sales profile managed through the crisis

• Excellence in execution key growth lever

• Service focus increasing recurrent business

676

876

1.0971.158 1.091

'06A '07A '08A '09A '10A

Strong performance in Brazil, India, China (BIC)

719

940

+85%

+31%

‘09A

’10A

Orders (M€)


• Brazil, India and China (BIC) growing 2x vs RoW

• Benefiting from energy segments upward trend

• Increasing footprint and diversifying portfolio to capture growth

82152

BIC Rest of the World

+85%

Growing in all market segments

(M€)

171252

'09A '10A

• Wind +43% without “catch up effect” … Non Wind +43% still not at pre-crisis levels

• +44% order in China up to 74M

IndustryOil & Gas

• Energy sector driving group growth

• Performance in line or above relevant OEM growth rate

• Test Benches 1st order with #1 player and Material Handling 1st

order with Gusto offshore wind cranes

• Metals Rourkela greenfield in India and major revampings

(M€)(M€)+33%

+48%

130192

'09A '10A

+48%

RenewablesRenewables Oil & GasOil & Gas IndustryIndustry


Marine ServicesPower

and major revampings

• Maintaining leadership position both in Merchant and Navy

• 1st Mega Yacht order with Fincantieri and MLP project with US Navy

• Secured 1,600MW+ Hydro drives orders in Switzerland

• Won major power supply order with Deutsche Bahn

• Industry recovery … ongoing restart of modernizations

• Marine and Offshore … focus on new fleet

(M€) (M€)(M€)

+26% +67%+13%

MarineMarine PowerPower ServicesServices

Our enduring values. Key enablers

Entrepreneurship Transparency


CommitmentContinuous

Improvement

Thank you for your attention

| 30

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www.converteam.com

CONVERTEAM - World Leader in Power Conversion

converteam corporate presentation march 2011

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