bmd-d0009 copyright © yokogawa electric corporation october 2004 vigilance workshop 3 page.1

Vigilance Workshop 3Page.1

BMD-D0009Copyright © Yokogawa Electric CorporationOctober 2004

Yokogawa Electric Corporation

BMD-D0009Copyright © Yokogawa Electric CorporationOctober 2004 Vigilance Workshop 3

Power industry session11/24/2004



Agenda

Global Plan (Yamazaki, 10 min.)– Why power– What we want to achieve

Tool (Yamazaki, 5-10 min.)– Tier3 presentation kit

Regional Plan (Murray, 10 min.)– Power as a market – Target & action plan

Wrap-up (Murray, 10-15 min.)– Success story– Q&A



2001

2006

2011

0

500

1000

1500

2000

2500

3000

3500

Why Power <market size>

ChemicalPulp & Paper Oil &

GasRefining Pharma

W&W

Food & Beverage

Metals & Mining

Cement & Glass Other

(M$)

*Source: 2002 ARC 2001 Market Shares of the PAS Suppliers (Power)

Power

PAS market forecast by industry

Huge market potential!Huge market potential!

(year)

$1000M growth/10years 2011: $3,300M



Why Power <market trends and opportunities>

*Source: EIA, 2004, International Energy Outlook

Japan, China& Korea

: Japan

: Korea

: Total

: China

0

2000

4000

6000

8000

'01 '10 '15 '20 '25

(kWh)

: India

: Middle East

: Total

: ASEAN & Oceania

Asia, Oceania & Middle East

0

2000

4000

6000

8000

'01 '10 '15 '20 '25

(kWh)

0

2000

4000

6000

8000

'01 '10 '15 '20 '25

Americas

: North America

: Central & South America

: Total

: Eastern Europe & Former Soviet Union

: Africa

: Total

: Western Europe

Europe, Russia & Africa

0

2000

4000

6000

8000

'01 '10 '15 '20 '25

(kWh)

(kWh)

Opportunities especially in:

Electricity Consumption Outlook

Western & Eastern Europe- Coal-fired (esp. FGD & revamping)- Gas-fired (esp. combined-cycle)

South Africa- Large coal-fired

North America- Largest market- Major accounts

China- Large coal-fired (new, revamping, FGD)- Gas fired (esp. combined-cycle)

Oceania- Large coal-fired revamp.

Asia & Middle East- Mid-size oil/gas/coal-fired/biomass (esp. Thailand, India, Vietnam, Indonesia)- Independent Water & Power Producer (Middle East)



0 100 200 300 400 500 600

ABB

Siemens

Invensys

Emerson

Alstom

Honeywell

Yokogawa

Metso

Toshiba

MHI

Hitachi

Others

Why Power <market trends and opportunities>

2001 Total $2,300MYokogawa: 3%, $70M - Product: $60M - System: $10M

24.7%

24.3%

14.8%

12.1%

9.8%

3.5%

3%

(M$)

*Source: 2002 ARC 2001 Market Shares of the PAS Suppliers (Power)

2001 Total Revenue = $2,323 Million

2010： Total $3,100M 3% ($100M) is NOT enough.

2001 market shares of the PAS suppliers (power)

Our goal in 2010 10 % share ($310M)10%



How we going to do it? <differentiators>

Challenges for us– Fewer installations worldwide compared to the major players– Low recognition in the market as a total solution provider– Incomplete product range - no control system optimized for

power generation

Our Strengths/Differentiators– World’s best transmitter

• DPharp EJX series enabling reliable & accurate measurement even under ultra critical power application such as boiler drum level and feed water flow

– GE gas turbine market (40% of world turbine) • CENTUM CS 3000/UOI enabling unified operation of GE turbine

control and Yokogawa process control– Power plant simulators & Plant services

• High fidelity, full replica plant simulators • Operator training and Operation & Maintenance (O&M) services

Focus on markets where we can Focus on markets where we can leverage our strengths!leverage our strengths!



Latest Successes

CS 3000/UOI - Contributes to unified operation of the GE turbine power station @BBE, Spain (2004)

O&M Services- Fully entrusted with the O&M@biomass plant, Australia(2004)

DP transmitters- Integrated solution (CS3000, tx, Exaquantum, training simulators @ largest plant, AU(2004)

Plant Simulator- Contributed to faster commissioning



Marketing Process & Deliverables

The sales funnel

After sales commitment

UtilityIPPs

Large fossilGas turbineServices

New order!

Attract– Advertisement

• Industry ads, solution ads

– Direct Marketing• Promo CD

– Public Relations• News releases, magazine articles, success

stories

– Events• Industry shows, industry conferences

– Web• Industry web pagesInteract

–Sales tools•Internal handbooks•Bulletins•White papers •Tier3•Reference lists

–Demos

Retain–Project execution & lifecycle support

•Engineering KM network

Network–User groups

•Periodic meeting, e-Update



Promotion tools to attract the prospect

GlobalChinaWeb

Brand ad

Solution ad

Advertisement

PowerGenEurope

Events



Schedule

7 8 9 10 11 12 1 2 3 4 5 6

2004 2005

Ads

Direct MktgPublic Rela

Event

Sales Tools

Web

Demos

Europe China

Launch (China)

PowerGen (US)

Enhance(Global)

South America

Bulletin

PowerGen (Europe)

Enhance (Japan)

Success Stories

Press releases Press releases

Rollout

China

Tier3

Sol Ad(Services)



YHQUSAEurope

Asia-Pacific, ME

The power marketing team

Brent Lilientha

l

Shigeru Horikoshi

John Picoto

David Whan

Power Networking

Hiroko Yamazaki

Murray Champion

YHQ: S.Horikoshi (15 members )

YCA: B. Lilienthal, M. Cosentino

YEA: M. Champion, T. Suan Han

YEF: J. Picoto, J. vd Geer, C.Plomer,

YEF-F: Oliver Deslangle, Olivier Cheyrou, R.Sultana

YEF-Spain: Andres Marin, J.Criado

YEF-SA: B.Cillers

YEF-Italy: G.Moccia

YME: P. De Vuyst

YBI: A.Garg, B. P. Mehta

YTH: J. Pattanadilokl, S. Wongakard, Apiruk

YIL: S.Muhadi

YAU: J. Cripps, P.Nicolson (30 members)

TCS: D.Whan, M.Barry, D.Dyson 、 B. Mitchell

YSA: Natalino

YXC: G.Yan, L.WhenZhou

YTW: H.C. Lin

YKO: K.Shin, P.S. Jun

Power industry network over 15 affiliates ! (System sales, Sales Engineer, Marketer, Project Engineer, Service)

Power industry network over 15 affiliates ! (System sales, Sales Engineer, Marketer, Project Engineer, Service)

TechComm

Barry Mitche

ll

Tan Suan Han



Summary

Power business opportunity is here.

Let’s expand your business with us!

DPharp EJX series

> Less blind spots

enabling reliable & accurate measurement even under ultra critical power application

CS 3000 & UOI

> Fewer surprises

Unified operation of the entire plant from a single operator interface.

Plant Simulators & Services

> Free of bottlenecks

Secure faster commissioning and safe operation reducing delays or lost opportunities

…to help our customers keep achieving operational excellence…



Market trends and action plan

Regional Plan



Power as a market

Power is a market that is similar to any other, but like any market people use different words: – Is it complex? No, Yokogawa has developed a

complete range of products, both DCS and field related.

– How is it different from chemical? The whole process is to produce steam, it is a very interactive parallel process, not a serial process.

– Do I have to talk Power? Your support team can!Is it new or refurbishment business? – Both, plants will typically replace all C&I instrumentation 3-4 ti

mes in their lifeProjects can range from:– a pressure transmitter for $1000 to a complete retrofit of $30

mServices is:– a very important part of the business that Yokogawa can provi

de.



Regional Plan <market trends>

Asia– Oil/Gas-fired – Coal-fired

(Indonesia/Vietnam)– Biomass

Middle East– Independent Water & Power

Producer– Desalination

India– Coal-fired

Oceania– Large coal-fired revamping– Biomass

Vietnam for example:– New plant

Indonesia for example:– Independent Power Producer (IPP)– Retrofit

EPC Contractors:– Chinese– Korean



Regional Plan <action plan>

Priority A Priority B Priority C

Major Acct Dev Special Projects

Brunei

Indonesia Pulp/Paper Sri Lanka

Thailand Singapore Philippines

Vietnam Malaysia China

Middle East Bangladesh



Regional Plan <action plan2>

Prospecting Developing Semi- Mature

Bangladesh Vietnam Indonesia

Malaysia Thailand Singapore

Sri Lanka Australia

Philippines

Middle East

Market Maturity depends upon:– Affiliate Commitment– Industry Knowledge– Acceptance: In the Circle / Industry Contacts– Amount of Business



Eraring Power Station, Australia

Success Story



Success Story : Eraring Power Station, Australia

Customer Challenges– Replaced the existing hard-wired control equipment (analog and sequence control

equipment) with a modern Integrated Control and Monitoring System (ICMS).

Location: New South Wales, AustraliaOutput / Fuel: 4 ×660MW, coal firedOwners: Eraring Energy Operation Date: 2004-2005Project Type: ICMS replacement

Location: New South Wales, AustraliaOutput / Fuel: 4 ×660MW, coal firedOwners: Eraring Energy Operation Date: 2004-2005Project Type: ICMS replacement

Eraring Power Station, one of the largest power station in Australia successfully replace its control systems leveraging Yokogawa’s integrated package of a control system, monitoring system, field devices and training simulator

Results– Succesfully gained high plant reliability and operational improvements in order to maintain co

mpetitiveness in the Australian de-regulated power market, leveraging Yokogawa’s integrated solutions

– Faster control system commissioning. Yokogawa plant simulators allows hands-on operator training prior to commissioning so that customer staff can become familiar with all aspects of operating the complex plant before running the real plant. Also, conducting control loop testing and tuning on the simulator ensures smooth plant commissioning process.



““

””

Testimonial

Eraring Energy considered that Yokogawa offered the best integrated package of a control system, monitoring system and trainin

g simulator, as well as strong local support.

General Manager/Production at Eraring Power Station

Eraring Energy considered that Yokogawa offered the best integrated package of a control system, monitoring system and trainin

g simulator, as well as strong local support.

General Manager/Production at Eraring Power Station



Thank you for your attention.

Commitment means building the future to last.

bmd-d0009 copyright © yokogawa electric corporation october 2004 vigilance workshop 3 page.1

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