Introduction to Alstom Power

25 November 2010

Theo Molamu

Local Supplier Manager : Sourcing & Tendering

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Theo Molamu - 25 11 2010 - P 2

Agenda

Our Group: A major industry player

Our Market: Power generation

Our Strategy: The cleanest integrated solutions

Our Teams: Present where the market is

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Theo Molamu - 25 11 2010 - P 3

Alstom Group: Three sectors

Employees by SectorSales by Sector (proforma figures)

Source: Alstom 2009/10

Power

13.9 €bn

Transport

5.8 €bn

Grid

3.5 €bn(2009)

Supplier of 1 metro/tram in each 4 Leadership in key markets and

fast-growing technologies

Major supplier in 25% of worldwide

installed base

Rail transport infrastructure Power transmission infrastructurePower generation infrastructure

Transport

26,000

Power

50,200

Grid

20,300

21%

52%27%

19%

30%

51%

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Theo Molamu - 25 11 2010 - P 4

Alstom: 96,500 employees in over 70 countries

11% 62%

17%6%

4%

Group

Power Sector

58%

22%1%

7%

12%

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Theo Molamu - 25 11 2010 - P 5

Transport Sector

Metro

Regional

Locomotives Very High SpeedDISTANCE

SPEED

Tram Train

High Speed

Interurban

Alstom Transport, a leader in the railway sector

N°1

in high and very high speed

N°2

in urban transportation (metro/tram)

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Theo Molamu - 25 11 2010 - P 6

Grid sector

● New growth potential for the Group

• Among the Top 3 in Transmission business

• 20,000 employees, over €3.5 bn in sales,

over 50 locations worldwide

• Leader in key markets and fast-growing

technologies (disconnectors, GIS, HVDC…)

● Strategic offering including Power Generation

and Transmission

Alstom creates a third Sector by acquiring Areva’s Transmission business

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Theo Molamu - 25 11 2010 - P 7

Hydro

Alstom Power:Technologies adapted to all energy sources

Gas

Coal

Oil

Geothermal

Nuclear (Conv.Island)

Wind

BiomassSolar

Life Cycle

Management

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Theo Molamu - 25 11 2010 - P 8

Agenda

Our Market in SA: current and future projects

Our Group: A major industry player

Our Strategy: The cleanest integrated solutions

Our Teams: Present where the market is

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Theo Molamu - 25 11 2010 - P 9

Current Projects

• Medupi Power Station: Turbine Hall & BOP

C & I

• Kusile Power Station :Turbine Hall & BOP, C & I &

WFGD

• Koeberg Nuclear Power station : Refurbishment &

maintanance

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Theo Molamu - 25 11 2010 - P 10

Future Projects – unique Turnkey capabilities

• Gas Power Plants : Combined-Cycles Power Plants ,

Simple Cycle;

• Steam Power Plants : Circulating Fluidized Bed Boiler;

• Solar Thermal Plants;

• Wind Projects;

• Nuclear Power Plants (Conventional part)

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Theo Molamu - 25 11 2010 - P 11

Agenda

Our Tender Sourcing Strategy: Project Specific

Our Group: A major industry player

Our Teams: Present where the market is

Our Market: Power generation

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Theo Molamu - 25 11 2010 - P 12

Tender Sourcing Strategy

• Sourcing Strategy : Equipment Target Price, Targeted Countries, LCC Opportunities, Local content/Suppliers, Turnkey Packages foreseen, reference Projects & Tenders;

• Customer requirements : Imposed black listed suppliers, Incoterms, etc.

• Finance, Legal & Trade :Customs duties & Tax issues, Local Law restrictions, Trade agreements, etc;

• Tender Supplier List(TSL): Mandatory suppliers from Client, suuplier information to be supplied in TSL, etc:

• Top Critical Equipments(Steam/Gasnt) : Water/Air Cooled Condenser, Pumps, Heat Exchangers, Feedwater Tanks, Feedwater Pumps, Demineralisation Plant, Water Treatment Plants, Coal Handling, Ash Handling, Transformers, HV Switchyard, etc;

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Theo Molamu - 25 11 2010 - P 13

Agenda

Our Market: Power generation

Our Strategy: The cleanest integrated solutions

Our Supplier Development :Local Suppliers Opportunities

Our Group: A major industry player

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Theo Molamu - 25 11 2010 - P 14

Suppliers Development Opportunities

• High Voltage Switchyard;• High Voltage & Medium Voltage Cables;• Auxiliary Transformers;• Water Treatment Plant - done• HP Pressure Heat Exchangers – Thermal/ Mechanical

design;• HVAC Systems;• HP Pipes and Fittings;• Metallic Expansion Joints, Supports and Spring Hangers;• Cross Over Piping;• Water/Air Cooled Condenser;• Dampers & Compensators;• HV & MV Switchgears, etc

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Theo Molamu - 25 11 2010 - P 15

Challenges

• To pre-qualify local suppliers (assess): Commercial,

Technical & Quality;

• Supplier Capabilities and Capacities: turnkey- Power Stations 20 years;

• Alstom Power requirements: T&C’s, SPIQ and Quality

requirements;

• New Projects :Equipments suppliers of Wind , Solar &

Nuclear.

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Theo Molamu - 25 11 2010 - P 16

Next Steps

• Identify & pre-assessment of local suppliers;

• Draw a qualification plan;

• Project specific – Gas and Steam On/Off – shore split;

• Compile ZA Market Study for all key commodities.

www.power.alstom.com