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 CO
2
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
WIND ENERGY MARKET IN CHINA 2014.PPT
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
WIND ENERGY MARKET IN CHINA 2014.PPT
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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
60
y1
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
WIND ENERGY MARKET IN CHINA 2014.PPT
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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
WIND ENERGY MARKET IN CHINA 2014.PPT
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
WIND ENERGY MARKET IN CHINA 2014.PPT
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 (12
th
FYP) Renewable Energy Targets
D
C
E
0%
B
A
GW
226
A1
A2
A4
A3
2009 2020e
362
B1
B2
B3
B4
WIND ENERGY MARKET IN CHINA 2014.PPT
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
WIND ENERGY MARKET IN CHINA 2014.PPT
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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
WIND ENERGY MARKET IN CHINA 2014.PPT
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)
WIND ENERGY MARKET IN CHINA 2014.PPT
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
WIND ENERGY MARKET IN CHINA 2014.PPT
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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
WIND ENERGY MARKET IN CHINA 2014.PPT
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
WIND ENERGY MARKET IN CHINA 2014.PPT
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--
OIL AND GAS MARKET IN CHINA 2014.PPT
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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
OIL AND GAS MARKET IN CHINA 2014.PPT
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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)
OIL AND GAS MARKET IN CHINA 2014.PPT
20
SAMPLE
Financial Snapshot Key Ratios
Financial Summary
• XXX
Financial Summary
Profit / Loss Total Income
10,924
10,248
11,615
10,887
0
5,000
10,000
15,000 XX
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
Public: Domestic Company – Company A (2/4)
OIL AND GAS MARKET IN CHINA 2014.PPT
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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
Public: Domestic Company – Company A (3/4)
OIL AND GAS MARKET IN CHINA 2014.PPT
22
SAMPLE
•XX •XX
•XX •XX
T
O
W
S
Public: Domestic Company – Player A (4/4)
OIL AND GAS MARKET IN CHINA 2014.PPT
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
WIND ENERGY MARKET IN CHINA 2014.PPT
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SAMPLE
Description News
Overview XX
Certification XX
Project Development XX
Key Recent Developments
Private: Domestic Company – Player B (2/3)
WIND ENERGY MARKET IN CHINA 2014.PPT
25
SAMPLE
•XX •XX
•XX •XX
T
O
W
S
Private: Domestic Company – Player C (3/3)
WIND ENERGY MARKET IN CHINA 2014.PPT
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SAMPLE
Strategic Recommendations
Focus on AA Sector
• XX
AAAAAA
Focus on BB Sector
• XX
CC
• XX
OIL AND GAS MARKET IN CHINA 2014.PPT
27
Thank you for the attention
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WIND ENERGY MARKET IN CHINA 2014.PPT

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