OSP™ Innovative Approach to Service

V94.2 Users’ Conference 2008

Davide PagnottaAnsaldo Energia Head of Strategic Marketing

Overview

• Service Market Trends

• OSP™ - Our Innovative Business Model

• OSP™ Solutions in practice

• Going Forward

The Service Market TrendsThe Service Market Trends

Service Market Trends

Service Development

Enablers

Services

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Asset Protection

• Revampings/Upgrades• RAM Engineering• Remote Moni. & Diagn.• Other OEM’s

• Revampings/Upgrades• RAM Engineering• Remote Moni. & Diagn.• Other OEM’s

• Reverse Engineering• Tecnology• Advanced Communication

• Data Management• Risk Analysis• Project Financing• Life Extension Projects

AssetManagement

Asset Enhancement

AssetOptimization

• Expertise• Capital• People

• Parts• Repairs• Maintenance

• LTSA• Plant Upgrading• Risk Based

Inspection/Predictive Maintenance

• EHS Services

• LTSA• Plant Upgrading• Risk Based

Inspection/Predictive Maintenance

• EHS Services

Service Development

Enablers

Services

Cus

tom

er

Valu

e

Asset Protection

• Revampings/Upgrades• RAM Engineering• Remote Moni. & Diagn.• Other OEM’s

• Revampings/Upgrades• RAM Engineering• Remote Moni. & Diagn.• Other OEM’s

• Reverse Engineering• Tecnology• Advanced Communication

• Data Management• Risk Analysis• Project Financing• Life Extension Projects

AssetManagement

Asset Enhancement

AssetOptimization

From Spare Parts to Value Added

• Expertise• Capital• People

• Parts• Repairs• Maintenance

• LTSA• Plant Upgrading• Risk Based

Inspection/Predictive Maintenance

• EHS Services

• LTSA• Plant Upgrading• Risk Based

Inspection/Predictive Maintenance

• EHS Services

OSPOSP™™ -- Our Innovative Business ModelOur Innovative Business Model

OSP™ – Our Innovative Service Model

OEM ISP

Ansaldo Energia, in the Power Generation field:

• Equipment & Plant Design• Engineering• Manufacturing• Contracting• Services

One-stop-shop for Service Solutions on STs and GENs

• Engineering• Site management• Spares and repairs• On-site Machining

Over a century of experience in all aspects of GTs

• Technologically rich• Innovative• Full Service solutions

OSP™ – Our Innovative Service Model

Ansaldo Energia, in the Power Generation field:

• Equipment & Plant Design• Engineering• Manufacturing• Contracting• Services

One-stop-shop for Service Solutions on STs and GENs

• Engineering• Site management• Spares and repairs• On-site Machining

Over a century of experience in all aspects of GTs

• Technologically rich• Innovative• Full Service solutions

OSP™ Mission

To become the one-stop shop to serve the Energy industry across a broad range of power generation equipment

OSP™ One-Stop Shop

OSP™ Broad Range

Ansaldo Energia OSP™

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Field

Repair

Spare parts

Upgrades

L.T.S.A.

Training

Field

Repair

Spare parts

Upgrades

L.T.S.A.

Training

Field

Repair

Spare parts

Upgrades

L.T.S.A.

Training

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1853 Gio. Ansaldo & C. was born manufacturing the first locomotive

1923 First Power Station

1949 GE License for Steam Turbines and Generators

1980 Strong overseas commitment

1989 ABB Licensee for Steam Turbines and Generators

1991 AnsaldoEnergia was born

1991 Siemens License for Gas Turbines

1991 Westinghouse License for Steam Turbines

1998 Business model refocused on energy sector

2004 New Global Service Strategy

2005 Total technological independence

2006 Acquisition of ESG and TTS

2007 OSP Concept Launch

Units Built: 70

MW Installed: 12,700

License Duration: 14 Years

Units Built: 70

MW Installed: 12,700

License Duration: 14 Years

ABB Licensee for Steam Turbines and Generators

Acquisition of ESG and TTS

Units Built: 360

MW Installed: 42,200

License Duration: 40 Years

Units Built: 360

MW Installed: 42,200

License Duration: 40 Years

GE License for Steam Turbines and Generators

Units Built: 218

MW Installed: 32,850

Units Built: 218

MW Installed: 32,850

Westinghouse License for Steam Turbines

Ansaldo Energia Milestones Solid Grounds for OSP™

OSPOSP™™ Solutions Solutions –– Recent examplesRecent examples

OSP™ – Some recent achievements

General Electric Gas Turbines

• LTSA:– 3 x GE 6B LTSA - Turkey– 2 x GE 6B LTSA - Poland

• Fuel Conversion: 12 x GE 9E - Israel• Low NOx Combustion:

– 2 x GE 9E - Italy– 2 x GE 6B - Oman and France

• Relocation: 2 x GE 6B - UK• Major Overhauls: 6 x GE 5P - Morocco

Steam Turbines and Generators

• ST+GEN Refurbishment:– Alstom - Lybia (repeat orders)– Elin - Turkey– Escher Wiss - Belgium (ST only)

• ST Upgrade:– ABB - Spain– 3D optimised 43” LP– Improved power and heat rate

• GEN Stator Rewinding:– ABB - Colombia– Completely On-Site - 53 days

OSP™ – Some recent achievements

OSP™ Long Term Service Agreements

Total Maintenance concept• Guaranteed Parts availability• Lower stock levels• No frozen investments in parts and

tools• Guaranteed Plant Performance• Priority services• Single point of contact

OSP™ LTSA11 countries 7 customers

16 units

Online Monitoring System

THOMSCall Centre

Operator InterfaceLocal THOMSStation

Unit Control System

OEM LTSA25 GW 23 customers

115 units

Going ForwardGoing Forward

OSP™ Growing Portfolio

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Field

Repair

Spare parts

Upgrades

L.T.S.A.

Training

Field

Repair

Spare parts

Upgrades

L.T.S.A.

Training

Field

Repair

Spare parts

Upgrades

L.T.S.A.

Training

Technology

Gas

Tur

bine

Stea

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Ansaldo Energia

Sie

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s 50

Hz

Gen

eral

Ele

ctric

Als

tom

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B/B

BC

Wes

tingh

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Mits

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Field

Repair

Spare parts

Upgrades

L.T.S.A.

Training

Field

Repair

Spare parts

Upgrades

L.T.S.A.

Training

Field

Repair

Spare parts

Upgrades

L.T.S.A.

Training

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erat

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AEN&

TTS&

ESG

Positi

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Technology

Gas

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OSP™