Westinghouse Electric Company Overview

Transcription

1 Westinghouse Electric Company Overview 1

2 Westinghouse Electric Company Westinghouse Headquarters Westinghouse Electric Electric Company provides fuel, fuel, services, technology, plant plant design, design, and and equipment to to utility utility and and industrial customers in in the the worldwide commercial nuclear nuclear electric electric power power industry Nearly 50 percent of the nuclear power plants in operation worldwide are based on Westinghouse technology 2

3 Westinghouse Electric Company Founded in 1886 by George Westinghouse Responsible for some of the world s important achievements Alternating Current technology First commercial radio broadcast (KDKA-1920) USS Nautilus nuclear submarine First camera on the moon Commercial nuclear power 3

4 Toshiba Profile Established Total Assets Employees Number of Group Companies (Worldwide) billion 197,000 Worldwide 368 (35 countries/regions) 5,579 Net Sales 5,836 6,343 7,116* Operating Income * Net Income * FY03 FY04 FY05 FY06 FY03 FY04 FY05 FY06 FY03 FY04 FY05 FY06 4

5 Toshiba Product Segments 5

6 Toshiba and Westinghouse Nuclear Business ABWR BWR Business Construction ABWR Maintenance & Services Mainly PWR Business Construction AP1000 Maintenance & Services Fuel AP1000 Providing excellent solutions through synergy The global leader, promoting both BWR and PWR technologies 6

7 Toshiba, Westinghouse and Partners Scope Westinghouse Toshiba Sales 34 Sites Globally Japan Development PWR Technology Turbine Systems BWR Technology Manufacturing Parts of Reactor, Fuel All Plant Equipment Installation, Civil Construction Shaw Installation, Commissioning IHI Japan Development, Manufacture and Installation of Nuclear Plant Components Kazatomprom: uranium supply Form a Strong Nuclear Business Group through Collaboration 7

8 Today s Westinghouse Electric Company More than 10,000 People in 15 Countries Around the World As of March

9 Three Core Businesses Nuclear Services Services, modernization and life extension of nuclear power plants worldwide Nuclear Fuel Provider of fuel for PWR, BWR, VVER, AGR, and Magnox reactors worldwide Nuclear Power Plants Supplying new nuclear power plants world wide 9

10 Westinghouse Electric Company President and CEO Aris Candris August 1, 2008 Nuclear Services Senior Vice President Nick Liparulo Nuclear Fuel Senior Vice President Joe Belechak Nuclear Power Plants Senior Vice President Dan Lipman Global Growth & Innovation Senior Vice President Ric Pérez Legal & Contracts, Environment, Health & Safety Senior Vice President & General Counsel Ramsey Coates Finance Senior Vice President & Chief Financial Officer Kazumasa Uchida Human Resources & Corporate Relations Senior Vice President Tony Greco Customer Relations & Sales Senior Vice President Jim Fici Research & Technology Senior Vice President and Chief Tech. Officer Regis Matzie Operational Excellence Senior Vice President Jack Allen Senior Vice President & Chief Coordination Officer Shigenori Shiga Strategy Vice President Rick Etling Westinghouse 10 Proprietary Class 2

11 Westinghouse - Vision and Values Our vision is to be the customers' choice in supplying leading-edge nuclear technology to satisfy the world's growing demand for energy. Our values support this vision: Act with integrity and respect for others Be safe and environmentally responsible Commit to achieve success for our customers Deliver value and profit Excel in our operations 11

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13 Westinghouse Strategic Focus Achieve Sustainable Growth by Contributing to Our Customers Success Customer Intimacy Operational Excellence Technology Leadership Customer 1 st Enablers Voice of the Customer Successful Project Outcomes Financial Project Benefits Process Owner Engagement Behavioral Differentiation Create Success for Customers Innovation World-Class Environment, Health & Safety Flawless Execution Cost-competitiveness Develop and Maintain Critical Skills Innovation Develop Leading Technology Solutions Innovation 13

14 Westinghouse Revenue Growth Billions of Dollars Non-U.S. United States % 65% 50% 60% 50% 40%

15 Preparing for the Future Strategic Growth Team chartered to explore the possibility to grow the business 3X ($9.0B) and achieve best-in-class status Market potential for growth $30 billion growth aspiration by 2018 Global market strategy Comprehensive technology development plan Business plans for dramatic growth developed in 2008 Dramatic growth in number of employees Future leaders needed! 15

16 The Nuclear Industry 16

17 Today s Nuclear Industry Rapid growth with numerous opportunities New build resurgence Senior workforce; retirements beginning Extremely high demand for resources Business growth limited by human resource quantity and capability 17

18 Nuclear Industry Trends Global partnerships forming to compete Toshiba/Westinghouse General Electric/Hitachi Areva/Mitsubishi Heavy Industries Political/regulatory issues shaping future Interest of non-proliferation treaty countries in new plants Role of United Nations, International Atomic Energy Agency Emergence of large generators changing market make-up 18

19 Customer Trends Consolidation in North America and Europe Forming long-term alliances to reduce total cost of ownership Driving price and margins downward Customer service becoming differentiator (Customer 1 st ) 19

20 Top Nuclear Generators (MWe Capacity) Global Generators 1. EDF 2. Rosenergoatom 3. Exelon 4. Korea Electric Power Corp. 5. Tokyo Electric Power Co. 6. Energoatom 7. Entergy 8. British Energy Group plc 9. Kaisai Electric Power Co. 10. Vattenfall AB 50% Global Generation U.S. Generators 1. Exelon 2. Entergy 3. Duke Energy 4. TVA Nuclear 5. Dominion 6. Florida Power & Light 7. Southern Nuclear Operating Co. 8. Progress Energy 9. Constellation 10. Arizona Public Service Co. 72% U.S. Generation Key Westinghouse customers 20

21 Market Dynamics Americas Westinghouse a strong market leader 60% market share (Fuel and Services) GE has an established position focused on boiling water reactors Areva aggressively trying to grow its position Strong potential for new plant construction Europe Areva is the market leader; Westinghouse is #2 GE has a minor position Market is large enough to support a strong second supplier position Russia leads in Eastern European market, with global aspirations 21

22 Market Dynamics Asia Market differs in various parts of Asia Market policies are restrictive in some countries Significant new plant opportunities Strong competition to establish market leadership in China India market is developing and will be large Still not signatory to Non-Proliferation Treaty 22

23 The Nuclear Renaissance and Westinghouse 23

24 Forecast Electricity Demand by Region (Billion KWh) Source: EIA Annual Energy Outlook 2004 Asia Europe U.S Rest of World

25 World Electric Power Generation If 20% is from nuclear, that equals about 375 new plants! Source: Energy Information Administration 25

26 Interest Expressed in New Nuclear Americas Argentina Brazil Canada Chile United States Asia China India Indonesia Japan South Korea Taiwan Vietnam Europe Belgium Bulgaria Czech Republic France Germany Hungary Italy Lithuania Netherlands Poland Romania Oceana Slovakia Australia Slovenia New Zealand Spain Switzerland Africa Turkey South Africa United Kingdom Egypt Finland Morocco Sweden Nigeria Belarus Russia Ukraine 26

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28 AP Technology of Choice in China 28

29 China Plants and Sites Operating Plants Daya Bay Mwe FANP Ling Ao Mwe FANP Qinshan I Mwe Chinese Qinshan II Mwe Chinese Qinshan III Mwe AECL Under Construction Beijing Haiyang Tianwan Tianwan Mwe Announced Russian Shanghai Quinshan Qinshan II Mwe Ling Ao Mwe Chinese Chinese Sanmen Sanmen Mwe Haiyang Mwe AP1000 AP1000 Plant Sites Major Cities Hong Kong Yangjiang Daya Bay Ling Ao Other Near Term Sites Yangjiang 29

30 Technology Decisions for New U.S. Plants 30

31 Nuclear Power Plants Recent Market Changes 4 units in China under contract 29 units contracted by Number of Plants TVA (Bellevonte 2) TVA (Bellevonte 1) PROGRESS (Harris 3) FPL (Turkey Point 7) ESKOM 3 SCANA (VC Summer 3) PROGRESS (Harris 2) FPL (Turkey Point 6) ESKOM 2 PROGRESS (Levy 2) ESKOM 1 SOUTHERN (Vogtle 4) DUKE (WS Lee 2) PROGRESS (Levy 1) SOUTHERN (Vogtle 3) DUKE (WS Lee 1) SCANA (VC Summer 2) CHINA 4 CHINA 3 CHINA 2 CHINA 1 PG&E AEP CHINA 8 UNITED KINGDOM 4 UNITED KINGDOM 3 UNITED KINGDOM 2 CHINA 7 CHINA 6 ESKOM 4 RWE (UK) PSEG (Salem 3) CHINA 5 Contracted Units Technology Commitment Best Estimate Future Assumptions Calendar Year WESTINGHOUSE CONFIDENTIAL 31

32 The Future of Nuclear Power is Here The people of the world need reliable sources of electricity to enhance their standards of living Nuclear power offers a safe, reliable, costeffective and environmentally sound source of electricity Global leaders are more aggressively considering new nuclear plant construction Westinghouse is prepared to lead the way! 32