GERMAN AMERICAN WIND ENERGY BUSINESS CONFERENCE Trends in Supply Chain and After Sales fr a Component Manufacturer s Perspective Richard Nelson Chicago, IL November 5, 2013 For internal use only/ Winergy
Agenda 1. 1. Winergy at a Glance 1. 2. Market Perspective USA and Americas 1. 3. Drive Train Technology Trends 1. 4. Supply Chain Requirements 1. 5. Lifecycle Services 1. 6. Lifecycle Services Portfolio 1. 7. Conclusion 1
Winergy at a Glance Winergy Group Product Portfolio Market leader for drive systems with over 30 years of experience Gearbox Coupling Service Globally 70,000 wind turbine gearboxes delivered Production and service facilities in Europe, China, India, and the U.S.A. Winergy Drive Systems Corporation Assembly and Service Located in Elgin, IL, USA Founded in 2001 Focus on minimized life cycle costs Innovations (e.g. HybridDrive) Full local service coverage Global OEM Customer Base (excerpt) Sewind Largest assembly and testing facility in North America with full local supply chain More than 15,000 gearboxes installed in the USA Guang Dong Ming Yang Wind Power Industry Group Co., Ltd 2
MW Market Perspective USA and Americas Turbine Installations Americas 2011-2015 Market Environment Americas 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Americas view - 55% + 128% US view - 84% + 310% 15,122 15,535 362 478 1,290 457 1,100 11,078 2,850 1,153 8,979 950 306 213 499 6,821 12,884 2,775 944 400 8,200 6,658 1,260 4,500 2,000 1,273 941 2,042 1,785 1,425 2011 2012 2013e 2014e 2015e Rest of Latin America Mexico Chile Brazil U.S. Canada USA PTC uncertainty in 2012 resulting in <50 MW new capacity added in the USA in first half of 2013. After PTC extension, activity is picking up Forecast of >8 GW for 2014 on track 2015-2017 might be slower as PTC effect could fade and natural gas prices below $4/MMB dampen energy prices. By 2018, macroeconomic variables expected to improve: - Cost of wind energy continues to decrease - Natural gas prices expected to increase - Retired coal plants need to be replaced Canada & Latin America As US turbine manufacturers produce for the whole region, these markets help offset US volatility Strong forecast for Canada. Rush in 2014 and long term growth in Brazil is expected Mexico passed a renewable energy quota resulting in approx 1 GW per year 2013-2020. Source: MAKE Q3 Market Outlook September, 26 th, 2013 3
Drive Train Technology Trends Drive Train Concept Three-stage gearbox drive train Technical Data / Facts of Interest Gearbox: Average: 1.5 2.5 MW Available: 500 kw 7.5 MW i = 90 110 Highest market share Proven technology Winergy set standard in wind industry Extensive track record (>60,000 MW) HybridDrive Hybrid Drive: 3 MW 7.5 MW i = 35 42 Highest overall drive train efficiency Modular set-up for optimized serviceability Compact for flexible concepts First prototype in grid connection process 4
Supply Chain Requirements Regional Supply Chain Focus Commodities and Capabilities Needed Large castings Small castings Steel parts Large raw castings (up to 6 tons) Large castings machining Small castings Steel parts (rings, planetary axles) Mandatory Requirements ISO 9001 certification Signed NDA Supplier self-description Signed code of conduct Machine and equipment list Pre-Assessment (technology, quality, logistics, commercial) in collaboration with Winergy Tips for Interested Suppliers Call us! Details under www.winergy-group.com Feel free to ask questions during the RFQ process Prepare resources for first article qualification Prepare for flexible serial production Respond quickly to opportunities 5
Life Cycle Services The obvious questions The important questions Who can service my gearbox? How long does is take? How much does it cost? Is up tower service possible? Is the product improved? Do I receive a comprehensible report? What processes are used? What spare parts are used? What about quality assurance? Is there a warranty? Is the product load tested? 6
Life Cycle Services Portfolio Uptower Solutions Full range of uptower solutions utilizing Winergy developed procedures, tooling and parts Gearbox Shop Service Disassembly, inspection and remanufacture incl. engineered upgrades (new production standard) Paint/rewiring & oil supply system replacement Full load testing of each unit Drivetrain Services Main shaft, Main bearing Brake and coupling Gearboxes for Service New and remanufactured units Spare Parts Consumable spare parts and up tower parts kits Training Customer training Winergy Authorized Service Provider (ASP) program 7
Conclusion Trends in New Product Supply Chain Buyers market Growing importance of Canada, Mexico and Latin America to offset volatile U.S. market Market demands reliability, serviceability and efficiency Local US suppliers are needed for shorter reaction times, lower inventory and lower currency risk Trends in U.S. Gearbox Service Life cycle costs matter - More than ever Up tower solutions and local service providers Gearbox exchange program Upgrades for higher efficiency One-Stop Shop solutions 8
Thank you for your attention! www.winergy-group.com For internal use only/ Winergy 9