1. ABB: The World Leader in Motors and Generators ATAP, USA. June 2005
Ray Doran New Berlin, WI Lotus Notes: Ray Doran/USINY/ABB Off.: (262) Cell: (414)

2. AT Commitment to PT Agenda PT Commitment to AT
Medium Voltage Motors R. Doran
Organization / Contact Point
Product Overview
Typical Applications in Utilities
ABB differentiators / Weaknesses
Major Competitors
Questions / Suggestions

3. Motors and Generators Topic 1 - Where are the opportunities?
Who uses motors and generators?
Motor and generator applications are easy to identify
How are motors and generator opportunities pursued?
Topic 2 - What we have?
Our product range
Our technology and expertise
Topic 3 - Who we are?
Your contacts

4. Where are the opportunities?
Motors & Generators “in a nutshell”
Motor and generator applications are easy to identify
Motors and generators are EVERYWHERE (all applications and industries)
Who uses motors and generators?
How are motors and generator opportunities pursued?

5. ABB Motors & Generators
ABB is the world’s leading manufacturer of low and high voltage AC motors and generators.
ABB has over one hundred years design experience and application understanding with electric motors.
ABB has the newest and most efficient designs in the market
ABB has experienced Sales, Project Management and Service teams all over the world

6. Motors & Generators in ALL Applications & Industries
Power
Grinders & Refiners
Pulp & Paper
Compressors
HVAC
Petrochemical, Oil and Gas
Pumps
Cement & Mining
Mills
Air Separation
Water & Wastewater
Metals
Fans & Blowers
Turbines
Variable Speed Drives
Marine
Multipurpose Industrial Use
Wind Power Generation

7. Motors & Generators in a System

8. Power Circ. and Cooling Water Pumps Boiler Feed Pumps Compressors Fans
Coal Mills
High-inertia loads
High efficiency
High power factor
Two-speed motors
Low life-cycle costs

9. New Ventures - Wind Power
ABB is the world’s leading manufacturer of generators for wind turbines.
Extensive range of ABB products and services for wind power developers.
Power: kW
Low and high voltage
Single and two-speed
Air and water-cooling
High efficiency
State-of-art form wound winding technology in MW class units

10. The AC Motors & Generators Market
Total USA Market = $400M
ABB Share: approximately 5%
ABB has a long history as a motor & generator supplier in the USA market
ABB is well known and highly respected

11. BOTTOM LINE: How are motors and generator opportunities pursued?
Step One:
Identify opportunities:
1 - New Projects
2 - Plant Expansions
3 - Retrofits
4 - MRO business
Motors don’t last forever
Many low-efficiency machines out there

12. BOTTOM LINE: How are motors and generator opportunities pursued?
Step Two:
Important Information for us:
Power
Speed
Voltage
Enclosure
Application

13. BOTTOM LINE: How are motors and generator opportunities pursued?
Step Three:
Contact anybody in the Motor and Generator (Electrical Machines) organization for support!

14. What we have?
Our product range
Our technology and expertise

15. Electrical Machines - Product Range
AC Induction Motors and Generators
AC Synchronous Motors and Generators
Power range from HP to 70,000 HP

16. Induction Motors and Generators
Full range of IEC Motors, fractional to 30,000 HP
NEMA Frames 100HP and up
Stocked globally
High Efficiency
Complete range of enclosures
Horizontal and Vertical Designs

17. Induction Flameproof Motors
Low and Medium Voltage
A solution for hazardous environments, compliant with standards to meet world-wide demand (zone 1 and zone 2)
Designed to withstand the pressure caused by an internal explosion and also able to prevent flame propagation outside.
Compared with other types of protection (Ex-p, Ex-e), the main advantages are:
No purging before starting
No pressurization system required
No inert gas needed
No thermal limitation for "te" time
No need for system test in VSD applications
Individual certification not required

18. AC Synchronous Motors and Generators
Power: MW Frame sizes:
Synchronous Generators
Power: MVA
Frame sizes: 400 – 1250
1800rpm and below

19. Motorformer™ / Powerformer™
The world’s first cable-wound high-voltage(up to 150 kV) AC Machine.
Combines conventional AC technology with the new cable technology
Motor installation simpler, more efficient and more environmentally friendly.
the motor can be connected directly to a distribution network having a considerably higher voltage.
eliminates the need for a transformer to lower the voltage between the supply network and the motor.

20. Our Technology and Experience
AT Electrical Machines motor and generator business is based on more than a century of experience.
We are served by several factories, many of which where founded more than 100 years ago.
Due to continuous R&D our product portfolio is the most modern in the market place.
We promote strong energy conservation (high efficiency, EPACT), low noise level, safety, and many other environmental concerns.
We comply with all relevant major national and international standards, e.g. CSA

21. The Features You Want... Rigid fabricated frames Copper bar rotor
Low vibration levels
Copper bar rotor
High thermal capacity and stability
ABB MICADUR®-Compact Industry (MCI) Insulation
Available as a sealed system for long life
Class B temperature rise with Class F insulation

22. The Enclosures You Need...
Modular Motors
ODP / WP-I
WP-II
TEWAC
TEAAC
TEFC Motors
Cast-iron, ribbed frame TEFC through 3500 HP (4-pole)

23. The Accessories You Need...
Sleeve or A/F bearings
Winding and bearing RTDs
Space heaters
Vibration detectors
Surge protection
Current transformers
Soleplates
Mounting 1/2-coupling
Adapter bases

24. Medium Voltage - Construction
VPI Insulation
The MICADUR®-COMPACT INDUSTRY (MCI) insulation system based on the global Vacuum Pressure Impregnation (VPI) insulation method.
The VPI method has successfully demonstrated reliability for many years in machines for types of applications and has achieved world-wide recognition for excellence.
Exceeds class F requirements
Excellent mechanical strength
High moisture resistance

25. R&D - High Efficiency
Motors account for about 70% of industrial energy consumption.
Cost of purchasing a motor 1-2%; running a motor accounts for % of lifetime cost.
Any increase in motor efficiency can make a difference in annual energy consumption and extend motor lifetime.
ABB investment in motor efficiency R&D continues to make us the world leader in high efficiency designs

26. Business Unit’s LV Motors & Machines
1000 MUSD business
4500 employees
Product offering, power range from kW to MW:
AC LV Induction Motors
AC HV Induction Motors
AC Induction Generators
AC Synchronous Motors
AC Synchronous Generators
DC Motors
Servomotors
ABB is the market leader in LV
and HV motors

27. Business Unit’s LV Motors & Machines factories

28. Your contacts here
Ray Doran LN: Ray Doran/USINY/ABB Off: Cell:
Olli Mansikka LN: Olli Mansikka/USINY/ABB Off:
Cell:

29. After Sales Service Partners
SIMMCO
Jim Pepper
Milwaukee u
Steve Wetter
Jim Skaggs
Wayne Bendelow
Joe Sedberry

30. U.S Market Overview - Competitors
AC Large Induction Motor Market: Market Share of Major Market Participants (North America)
Source: Frost & Sullivan, HRI Analysis, competitor information
Other players include: ABB, Alsthom, Ansaldo, Baldor, Emerson Electric Machinery, Ideal Electric, Imperial Electric, Marathon, Precise Power, Toshiba, WEG Electric
2001 Data per Harbor Research, Inc. report (Oct. 2002)

31. Marketplace Overview by Industry/Application
U.S Market Opportunity Space ($M)*
MARKETS
Compressors
Pumps
Fans &
Blowers
Transport
ation
Other
2003
$75.9
$71.0
$62.9
$86.2
$86.9
Oil & Gas
$37.5
15%
59%
10%
Utilities
$88.1
17%
43%
Metals/Mining
$17.2 8%
20%
Pulp & Paper
$27.9 5%
30%
Chemicals
$42.1
28%
26%
12%
Transportation
$69.7
<2%
HVAC
$21.3
60% 0%
Waste/Wastewater
39%
46% 7%
Cement
$6.3
80%
90%
$338.1
TOTAL
34%
90-100%
16%
23%
64%
45%
Percent indicates motor energy use by sector and equipment type
Census Bureau, Frost & Sullivan, HRI Analysis (prepared by Harbor Research, May 2004)

32. Customer Industry - Utilities: Current profile
General:
Large market with opportunities as environmental regulations continue to tighten
The utilities industry is heavily influenced by energy efficiency of motors, and desires highly efficient motors to save on operating costs
Estimated US market size in 2003: $88M.
ABB market share in 2003 estimated at 3% (2001: 11%)
Customer Segment Characteristics:
The industry is heavily government regulated and values strong vendor relationships and longer lead times for highly custom projects
Pumps and fans/blowers are in widespread use in the utilities industry
The Current Profile per Customer Segment gives, for each identified customer segment, an overview of the “as-is” situation of that segment and its importance for ABB. It contains both descriptive information and quantitative data.
The Current Profile per Customer Segment slide covers:
1) the definition of the segment
2) a characteristics of the customer segment that:
- should focus on which buying criteria distinguish it from the other segments
- can contain qualitative as well as quantitative information
3) the “content” of the segment: how many customers, how many $, who are the main/representative customers within the segment
4) the profitability of major customers within the segment for ABB or overall profitability of segment (this data could be obtained “top-down” from gross margin information at BA level or “bottom-up” from profitability data coming from ABC projects in major BAUs)
5) ABB’s sales to the customer segment split up in major product/service groups
Customers in segment:
OEMs: Flowserve, Sulzer Pumps, KSB, Weir, Howden, TLT
End-Customers: Southern Company, Calpine, AES, PG&E

33. Customer Industry - Utilities: Future profile
Trends:
Existing power generation / distribution facilities require replacement or upgrade to maintain system reliability
Pollution control continues to be a major area for investment
Independent power producers (IPP’s) will continue to provide energy to meet the demand for industrial & municipal growth
Estimated market growth (CAGR): 3-4%
ABB target market share in 2008: 10%
Opportunities:
Partner with ABB PT sales channel to strengthen presence / visibility in utility industry
Complete ABB MV Motor/Drive package provides enhanced system efficiency / capability in fan & pump applications
ABB generator products are highly regarded by IPP players
Threats:
Lack of installed base provides limited replacement opportunities
Difficult for new suppliers to be accepted into the existing utility community
Customer Segment future state:
Highly energy efficient motors to save on operating costs
The industry is heavily government regulated and values strong vendor relationships
Customers in segment (future):
Many customers are emerging from financial and operational difficulties
Alternative energy sources are being developed, however lack of government support will delay investments
The Future Profile per Customer Segment gives, for each identified customer segment, an overview of the future situation of that segment (5 years from now or another time horizon to be decided) and the opportunities for ABB.
This slide includes:
1) an analysis of the trends that are affecting the customer segment, which are the basis for forecasting the future state of that customer segment. The trends can be derived by considering:
- historical trends/growth rates
- (potential future) forces that the customers in the segment are subject to
2) a representation of the future state of the customer segment, derived from the previous analysis and containing both descriptive and quantitative information (future segment size)
3) an estimation of the future “content” of the segment: who will be the main customers,…
4) opportunities and threats (specific to the customer segment) that should be addressed by the Strategy (as part of the EC Deliverables)

34. Industry SWOT: Utilities