Industrial Battery Group Xavier Delacroix Investor day – Jacksonville, November 2014
Industrial Battery Group Xavier Delacroix Investor day – Jacksonville, November 2014 Industrial Battery Group 1. Industrial Battery Group overview 2. Stationary Industrial Standby Telecommunication Energy Storage System (ESS) Takeaways 3. Transportation Markets 2 Investor day – Jacksonville, November 2014 Aviation Railway Industrial Vehicles Takeaways 1. Industrial Battery Group overview 3 Investor day – Jacksonville, November 2014 Industrial Battery Group A solid and growing business IBG Sales* in K€ CAGR: Transportation +2,0%, Stationary +7,7% 400 000 350 000 300 000 250 000 200 000 150 000 100 000 50 000 2005 *from continued activities 4 Investor day – Jacksonville, November 2014 2006 2007 2008 Transportation 2009 Stationary 2010 Others 2011 2012 2013 Industrial battery market Overview Market totals 6,8 Bil EUR Market still dominated by Lead acid Li-ion starts to enter some markets Saft market share increased, particularly in telecom and Motive power sectors Industrial Battery Market Estimation Mil € 2013 Market Market Share Industrial StBy (including transportation) 2 100 14,1% Telecom networks 2 200 2,3% Motive Power 2 500 0,4% 6 800 5,3% Total Source : Eurobat, 14th ELBC conference, various lead manufacturers 5 Investor day – Jacksonville, November 2014 Industrial battery Market (2013 estimate Mil EUR) 2. Stationary 6 Investor day – Jacksonville, November 2014 Stationary: Accelerating growth in the past 3 years Stationary Sales in K€ 250 000 200 000 150 000 100 000 50 000 2005 7 2006 2007 2008 2009 2010 2011 2012 2013 Industrial Standby: Growing faster than WW GDP thanks to Asia, US and Middle East Telecom: Strong growth from US (Ni-Cd) and India (Li-ion) Energy Storage systems: Currently taking off with commercial projects Investor day – Jacksonville, November 2014 2. Stationary Industrial Standby 8 Investor day – Jacksonville, November 2014 Industrial Standby market trends Building & plants Hospitals Plants Data centers Telecom installations Large public buildings Banks Oil & Gas Offshore platforms Onshore production sites Pipelines upstream and downstream facilities Remote locations Off-grid photovoltaic PV Off-grid installations Pipelines Hybrid systems Transport infrastructures Rail Road Marine buoys Aviation beacons Tunnels Signaling Generators Utilities Electricity generation Gas turbine plants T&D substations Desalination plants This market is forecasted to grow at 5 to 6% CAGR to 2017(1) UPS, communications, infrastructure investments and will continue to drive the stationary market (1) Saft marketing estimate base on IMF May 2014,Eurobat, EBLC Conference, Frost & Sulivan battery Market report 9 Investor day – Jacksonville, November 2014 Industrial Standby Saft Market positioning Saft has a large and well performing product portfolio, industrial and commercial footprint to address the growing stationary market demand. End user education of the advantages of Ni technologies against lead Developing regions are more demanding on batteries. Plant in Bangalore (India) began production in January 2013, servicing the growing and demanding Indian Large Power plants End-Users Competitive landscape includes large US, Indian, German and some Chinese manufacturers. Market potential exists in industrial UPS (>100 kVA) for Telecom (datacenters) and industrial applications > Saft Li-ion Intensium-Max has the right positioning for these demanding requirements. 10 Investor day – Jacksonville, November 2014 Saft Standby Recent notable advances Remote off-grid site Saft new Sunica.plus, with 5 490 Ah, combined with off grid PV, wind turbine and co generation, will provide daily 250 kWh of energy of the Hornlihütte in 2015 (Switzerland). Oil & Gas: Saft Ni-Cd “maintenance free” technology is used on oil and gas platforms, to provide enough power to restore, or close down the off-shore rig’s operation safely. Fire Pumps: High Power SPH/XHP product are used on Quad 204 FPSO in the north sea, to start the 3 fire pumps engines. Power sector: 11 Saft Ni-Cd batteries are unsed in the Qassimm 1 500 MW Power station to support vital equipments with fail-safe power. Investor day – Jacksonville, November 2014 Market potential for new applications for Advanced battery technologies Saft Li-ion Intensium® Flex (696V, 500 kW, 525kWh) finds its place for demanding new O&G applications Intensium® Flex packaged in an Eco-H large hybrid containerized genset to help level peak power during drilling. Benefits: O&G operators see reduced fuel consumption, emissions and operating costs. A second generator is not needed for the peak power demands. 12 Investor day – Jacksonville, November 2014 2. Stationary Telecom 13 Investor day – Jacksonville, November 2014 Telecom applications A complete range of battery solutions for the multiple needs of modern telecom networks 14 Investor day – Jacksonville, November 2014 Telecom Market drivers Global market will reach 9,7bn connections (including M2M) by 2017 with a 7,6% CAGR More data traffic than voice (data +66%per year) 3G/4G rollout is expected to significantly influence the need for more infrastructure, which will drive market growth Internet of things (or of everything) Developping countries: 15 Tougher operating conditions (non reliable grid or no grid) Hybrid system solutions Investor day – Jacksonville, November 2014 Strategy for growth in the telecom market 2013 Telecom Battery market is estimated at 2.2 Bil EUR Telecom WW Market Market Saft Conventional batteries 1 900 0% Very competitive market Advanced batteries 250 to 300 20 to 25% 2 200 2,3% Lead acid leading this market New players in Advanced Li-ion batteries Total Telecom 2013 Market (Mil EUR) Saft’s market share is between 20% to 25% in the Advanced Telecom Battery Market Saft’s larger and stronger Customer base in this market, is expanding. This is due to Good growth in North America Deployment to 4G network in India New Li-ion Product range 16 Investor day – Jacksonville, November 2014 Saft product strategy for Telecom Tel.X back-ups more OSP in the US due to its outstanding life at high temperatures Large range of Ni-Cd products to service Mission critical Plant with reliable service. Evolion® (48V, 77Ah) powers ¼ of Inda’s new 18 000 BTS sites thanks to its compactness and performance in these though operating conditions High number of cycles, partial SOC operation are meeting the requirements of the weak grid to insure right wireless service. 4G/LTE deployments and new market potential will be adressed with the extention of the Evolion range Data storage capacity must grow to meet the demand, and Intensium® Flex is ready to provide the right power for Mission Critical Facilities 17 Investor day – Jacksonville, November 2014 2. Stationary Energy Storage Systems 18 Investor day – Jacksonville, November 2014 Global Drivers for ESS Confirmed increase of Renewables Lion-share of Investments High share of EU energy mix by 2050 Driven by wind & solar Share of electricity generated from variable renewables (%) by region in the 2DS PV has reached competitiveness in many areas Grids reach level of RES saturation Variable Renewable Energies Source : IEA Energy Outlook 19 Investor day – Jacksonville, November 2014 Need for more flexibilities Need for more ancillary services Need for local energy management ESS markets in MW (Navigant, 2014) Energy Storage technology Forecast, World markets: 2013-2023 Multiple Storage Technologies … 11GW by 2020 > 50% batteries > 30% Li-ion Energy Storage by Application, World markets: 2013-2023 …compete for a variety of markets 20 22% Grid Asset Optimization 30% Renewable integration 17% Decentralized Storage Investor day – Jacksonville, November 2014 Trends - Lithium-ion positioning Specific needs of smaller devices Only few bulk storage projects are realized Limited potential for pumped hydro Renewables = decentralized ressource Most PV/wind capacity connected to LV/ MV grids Short term storage (min – hours) adresses current problems of intra-day variability, peak management and grid stability and has highest short term potential Global energy storage capacity to be commissioned in 2013 (MW) 164 MW Growing shares for Li-ion batteries Navigant predicts 30% market share Li-ion fastest growing technology > 1/3 of project pipeline 2013 with Li-ion 21 Investor day – Jacksonville, November 2014 Based on Bloomberg New Energy Finace ESS – Saft’s main achievements 2010: Creation of Business Unit ESS - Energy Storage Systems Li-ion storage systems for Renewable Integration and Smart Grids Successful take-off First MW containerized systems shipped early 2012 More than 50 MW containers installed or projected Significant uptake of sales and orders 2014 Proven ability to win and execute large turnkey contracts Consortia with Power Conversion & Installation partners Execution of service contracts: I&C, training, maintenance, full service Bankability Project Wins beyond demonstration 22 Multiple MW contracts, numerous customers, different geographic areas Delivery of largest ESS in La Réunion: 9MWh Investor day – Jacksonville, November 2014 Energy Storage installations 2012/14 23 Lithium-ion technology, containerized systems only Investor day – Jacksonville, November 2014 ESS – Saft’s Main Markets (1) Large Renewable plants & PV-Diesel Majority of current Saft project pipeline Rationale: reach highest possible penetration of RES in non interconnected or micro-grids, grid stability, fuel savings Examples: La Réunion Island: 9 MWh ESS for 9 MWp PV farm Bolivia: 2 MW ESS for 10 MW PV-Diesel system Frequency Regulation 24 Market Uptake has started through FERC regulation Rationale: Cost effective alternative to fossil fuel based primary reserves: CO2 savings, faster and more accurate response, free production capacity Examples : SEPTA Philadelphia: 1 MW brake recovery & frequency regulation EDF France: 1 MW Frequency Regulation Investors day – Jacksonville, November 2014 ESS - Main Markets (2) End customer energy efficiency Naissant market: smart buildings, residential PV & storage Rationale: Optimized facility energy management, Demand Response, PV self-consumption / autonomy Examples: Bosch BPT-S 5 Hybrid, 5kW with 4-13 kWh battery SDEM Bretagne smart building, 50 kWh / 100 kW solution coupled to Schneider building management Smart Distribution Grids 25 Mainly Demonstration Projects & some early adopters Rationale: Integrate storage with high level of energy production, smart grid technologies and DSM at distribution level Avoid / defer grid upgrades Examples : ERDF Nice Grid & Venteea in France ENEL several smart grid projects Investor day – Jacksonville, November 2014 26 ESS Li-ion battery systems Generation Transmission Distribution Electricity Customers Energy Storage Containers ESSU Intensium Max 20+E 1MWh highest energy density on market Intensium Max 20 P 1.8 MW highest power density on market Products for residential, building & community segments Interfacing with leading power conversion brands : ABB, Alstom, Ingeteam, S&C, SMA, … 26 Investor day – Jacksonville, November 2014 Residential systems Stationary market Key Takeaways Industrial Standby market Strong, competitive, and leading Ni-Cd product line Answering the needs of growing BRICS countries Seizing new stationary applications with Li-ion Telecom segment Growing Product offer in Ni based and Li-ion chemistries, recognized by the market Continue sales growth with 4G deployments and emerging countries Penetrate Datacenter Market with Intensium® Flex Energy Storage Systems Successful take-off beyond demonstration projects Positioned on a market with strong long term growth potential Li-ion system solutions for a large application spectrum Saft’s mid term objective: growth of 11-13% per year 27 Investor day – Jacksonville, November 2014 3. Transportation 28 Investor day – Jacksonville, November 2014 Transportation: supported by growing mobility needs Transportation Sales in K€ 160 000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 2005 29 2006 2007 2008 2009 2010 2011 Aviation: Strong after market and OEM businesses with Li-ion take off Railways: Market share recovery since 2010 Industrial Vehicles: in a starting phase Investor day – Jacksonville, November 2014 2012 2013 3. Transportation Aviation 30 Investor day – Jacksonville, November 2014 Saft: world leader in aviation batteries One Saft battery taking off every two seconds Playing a key role in the aircraft safety chain, incl. emergency avionics back-up power 100% of aircraft produced by Airbus and majority of Boeing are equipped with Saft battery Breakdown of Aviation 2013 sales worldwide 31 Civil aircraft: 1st mount Civil aircraft: aftermarket Military aircraft: 1st mount and aftermarket combined Investor day – Jacksonville, November 2014 20% 55% 25% Aviation market is growing! All commercial aircraft OEMs display historically high backlog Boeing and Airbus combined have 8,000 aircraft on order Estimates based on +4% global GDP growth predict airliner fleet to grow by 5%/year, while IATA project passenger traffic to grow +6% in 2014 Growth in number of commercial flights stimulates aftermarket > -2% CAGR over last 5 years in USA (Source: FAA) is compensated by rapid growth in Asia and Middle-East Overall, total fleet projected to grow +2.6%/year over 2013-2023 (source: ICF sh&e) Business Jet Aviation recovers from 2008 crisis BA sector driven by high-end, large biz jets Teal Group Corp forecasts 700 units delivered in 2014, 800 in 2015 (vs 620 in 2013) Military aviation: flat or slightly negative growth 32 Investor day – Jacksonville, November 2014 Aviation batteries: competitive landscape Saft market share (on Ni-Cd and Li-ion combined): 63% Lead-Acid 33 Investors day – Jacksonville, November 2014 Ni-Cd Li-ion Saft reinforces its leading position General Aviation: Small private planes Business Jet Aviation and helicopters Ni-Cd strategy = Leverage the recovery of this segment, driven by the USA, since 2013 Li-ion strategy = Capture dominant market share in nascent niche Saft delivers ULM® batteries to Gulfstream Aerospace for the G650® and G550® Airliners & military aircraft 34 Nearly exclusively lead-acid (not a technology Saft carries): mostly inaccessible to Saft Saft is on board the Airbus A350XWB aircraft with Ni-based and Li-ion batteries Ni-Cd: differentiate Saft’s OEM-approved against Parts Manufacturer Approval(PMA) batteries Saft will provide maintenance-free nickel-based batteries on the KAI T-50/A-50 Military strategy: become preferred provider for Large Unmanned Aircraft Vehicles (UAVs) Multi-million Contract to Pioneer High Power Li-ion Battery Capabilities for F-35 Investor day – Jacksonville, November 2014 Li-ion introduction Smart, Lighter, Smaller, easier to maintain Li-ion fit perfectly the Aviation needs Increase the battery value/plane by 3 to 4 Saft is delivering 3 battery systems for 2 major aviation programs 48v Li-ion System for Airbus A350 35 Investor day – Jacksonville, November 2014 270V Battery for LockheedMartin’s Joint Strike Fighter (JSF F-35) 3. Transportation Railway 36 Investor day – Jacksonville, November 2014 Railway market overview The current market grew by ±1,5% CAGR over the previous period (2009-2011), achieving growth despite already high past market volumes Rolling stock will grow from 47,9 Bil € (2011-2013) to 54,6 (2017-2019) ; +2,2% per year Drivers are population growth, urbanization, road congestion, and increased demand for mobility, combined with climate change and environmental concerns Urban rolling Stock growth is +5,9%, driven my metro, and Asia Pacific, CIS, Europe Regions with key significance will be Latin America, Asia pacific, Africa /middle east and NAFTA. Source: Unife World Market 2014 to 2019 37 Investor day – Jacksonville, November 2014 Saft increasing it’s leading position in the Railway market Saft continues to lead the Nickel based Railway battery market On board: Emergency Back-up, engine starting Trackside: signaling Li-ion will foster growth on new Regen Traction Market & applications Light Rail Vehicles, hybrid locomotives Technology trend : rather conservative approach to new technology adoption lengthy qualification processes stringent standards… Market need is there, and growing 38 Investor day – Jacksonville, November 2014 2013 Rail Est. market share (On-board batteries) Saft strengthening its position Saft MSX batteries step-up to the reliability challenge for Hitachi’s Class 80 series UK trains MRX in the Singapore MRT metropolis driverless trains SRM+ batteries pack high energy into a compact package for the Chennai metro Saft Batteries deliver reliable back-up power for Hyderabad’s new Metro Rail system Extreme temperature batteries to keep trains running during 2014 winter olympics Business driven by strong urban area’s development 39 Investor day – Jacksonville, November 2014 Li-ion opens new applications Cleaner cities, with esthetic urban public transport solution are drivers for on board kinetic energy storage solutions. Light Rail and tram market is EUR 2,3 Bil/year Saft is delivering 2 battey systems for 2 autonomous new trams projects energy savings from storing Regen energy and associated infrastructure costs can provide up to 25% energy savings for Light Rail Vehicle Operator. 790V 210kW Li-ion System 40 Investor day – Jacksonville, November 2014 515V 216kW Li-ion System 3. Transportation Industrial Vehicles 41 Investor day – Jacksonville, November 2014 2012 2015 2020 A fast growing electrification trend Source: IdTech industrial and Commercial vehicles, 2013 2023, Saft internal market analysis 42 Investor day – Jacksonville, November 2014 Industrial Vehicle Market This market has the following trends: existing lead acid applications, switching to Li-ion: e.g. forklifts Saft strategy is to position Li-ion unique advantages in the intense (24/7) warehousing activities (e.g. food logistics, pharmaceuticals, chemical industry…) New application requiring electrification or hybridization: busses, trucks, Ground Support Equipment 43 Several technologies are being evaluated : advanced Lead, super capacitors, fly wheels, fuel cells… Li-ion provides advanced solution that conventional batteries cannot provide (weight & space, lifetime, TCO, quick charge…) Investor day – Jacksonville, November 2014 Forklifts Market Drivers for “more electric” Manufacturers want « green logistics » Investigate alternative power sources Hybrid, fuel-cells, Li-ion Very Narrow isle truck with alternative drive technologies Avoid conventional L/A maintenance Fast charge = time saving better shift utilization No battery swapping Reduction of fleet size These features translate into TCO savings up to 20%. Li-ion penetration is this market is estimated between 5 to 10% 44 Investor day – Jacksonville, November 2014 Off-Road: Ground Support Equipment (GSE) Market drivers for hybridization GSE market is 91 k vehicles/year, > 30% xEVs, forecasted to grow +15%/year by 2020 (with >50% xEVs) Driven by: Electrify the idling time: typically, short period of high load -> extended periods of idle or engine off Reducing Fuel and Maintenance costs Allowing in door usage (Aircraft in warehouse) Decrease Airport CO2 emission taxes and noise level (greener image) All are strong drivers to hybridize (or electrify) Ground Support Equipment 45 Investor day – Jacksonville, November 2014 Ground Support Equipment (GSE) Aircraft pusher TBL 800: 1st hybrid tractor for jumbo jets (A380) Saft Li-ion battery: 740 V, ±200 kWh Total cost of ownership benefits 46 2,500 hours / year 2 to 3 years pay back CO2 emissions halved Investor day – Jacksonville, November 2014 On road vehicles Market and drivers Industrial markets are developing Following Environmental initiative / commitment from Cities > RATP (Paris City bus operator) strategy communicated early 2014 is to operate 100% of its fleet without diesel bus by 2025 > Other European cities have already made a step by introducing hybrids and plug-in hybrids (Bordeaux, Hamburg, Stockholm, Luxembourg, Helsinki,…) > Specific incentives programs in some US states such as in California, New-York, Pennsylvania, Connecticut, Illinois, etc… > Ex of California with CARB posted funding plan for FY14-15 – Hybrid and Zero Emission Truck and Bus Voucher Incentive Project (HVIP) – $10-15 million – Zero-Emission Truck and Bus Pilot Projects –$20-25 million To reduce operating costs (fuel & maintenance) To reduce Noise and CO2 emission To match Euro 6 regulation for heavy duty vehicles (bus and trucks) > 80% less NOX – 66% less particles compare to Euro V (2009) Bus Market xEV 47 2012 estimated @ <10k vehicles 2020 forecast to reach ± 90 k xEV vehicles 2014 investors day - Nov 2014 - Jacksonville, FL, USA. DRAFT Saft Li-ion product solution Bus example Saft 630V Li-ion Bus battery, 19 kWh, 170 kW PHEV Bus operation advantages Provides Stop & Start function Regen energy storage Fast charge Full electric drive mode (up to 10 km) Up to 30% fuel savings Noise reduction in city center Version for Full EV bus also available (26 kWh) 48 Investor day – Jacksonville, November 2014 Transportation Key Takeaways Aviation Structural growth in Airliner segment and tailwind in Business jet segment Is already benefiting from F-35 and A350 Li-ion contracts Saft well positioned to capture new, More Electric Aircraft platform, in particular with Li-ion systems Railways Stronger market share, in a conservatively growing market Positionned to capture emerging countries needs Li-ion adoption for Regen will strengthen Saft’s market leadership Industrial Vehicles Li-ion answers this market changing needs for better energy utlilization Industrial vehicle market is scheduled to grow… Saft is already penetrating this market with main players in Forklifts & Bus Saft mid term objective: Growth of 8-10% per year 49 Investor day – Jacksonville, November 2014 Conclusion IBG has entered in rapid and diversified growth phase supported by Traditional business Li-ion moving from demonstration to commercial Profitability is improving 50 Maintain strong profitability of the traditional business Improvement of Li-ion link with volume increase Investor day – Jacksonville, November 2014
© Copyright 2024