Gwen Andrews

Tokyo, 14 October 2012

Enhancing Public Private

Partnership on Green Growth

Presentation title - 01/01/2007 - P 2

Agenda

Who is Alstom? Page 1

What do we bring? Page 8

Risk and other issues Page 15

Conclusions Page 18

Three main activities in four Sectors

Equipment & services for power generation

ALSTOM THERMAL POWER

Equipment & services for rail transport

Equipment & services for power transmission

ALSTOM TRANSPORT

ALSTOM GRID

ALSTOM RENEWABLE POWER

Power Present in all markets

Clean Power Day Thailand – Oct 2, Bangkok - P 4

GAS COAL OIL

HYDRO NUCLEAR (conventional island)

BIOMASS SOLAR

WIND

GEOTHERMAL

…FOR NEW PLANTS OR INSTALLED BASE

Grid Sector

New growth potential for the Group • Among the Top 3 in Transmission business • Over 50 locations worldwide • Leader in key markets and fast-growing technologies (disconnectors, GIS,

HVDC…)

Strategic offering including Power Generation and Transmission

For Customer assets & For society

3 levers of Alstom product & portfolio development

Alstom: Clean, Efficient and Reliable Energy

Cost Of Electricity Efficiency Improvement

Combined Cycle power plant

Coal-fired power plant

Continuous performance improvement

1960 1980 2010

167/ 540/ 540240/ 540/ 565

270/ 580/ 600

280/ 600/ 620

350/ 700/ 720

2020

350/ 730/ 760

50%

* Based on LHV and open cycle cooling at 13°C

45%

Net Plant Efficiency

evolution

45

50

55

60

65

70

1100 1200 1300 1400 1500 1600

Hot Gas Temperature (ºC)

Comb

ined C

ycle E

fficien

cy(%)

1980

1995

2011

Cost Of Electricity Scaling-Up & Capacity Factor Increase

Driving down cost of electricity

POWEROF3™

ECO 100 Platform

Haliade™ 150-6MW

Flexibility and Reliability GT24:The Pioneer of Operational Flexibility

Flexible Operation Modes and On-line switch over

Highest part load efficiency

Low Load Parking

Fast ramp rates

Performance & Flexibility to better integrate Renewables

What do we Bring to developing countries?

Money

Inward Investment $662 million in emerging economies 2011/12

Experience in project financing in different

markets

Expertise

Workforce Investment 92,000+ employees in 100

countries

Measurement of carbon savings and environment

outcomes from technologies

Technologies

Research and Development $1 billion in 2011/12

Worldwide references in many technologies

Alstom as an Investor in Developing Economies What Why Where

Inward investment

$662 million in emerging markets in 2011/12

- Strengthen our presence and modernise production facilities

- Create jobs, develop local capacity, and transfer technology

India: manufacturing plant for steam turbines and generators, boiler component factory; new rolling

stock plant

Brazil: our first wind turbine factory, in Bahia province

Continued development of our hydropower R&D facility in Tianjin, China

Alstom as an Investor in Developing Economies: Workforce Development

• growing numbers outside Europe and North America

We employ over 92,000 people in 100 countries

• component design and manufacture, EPC and project management

We bring high value, high skills jobs

• Tsinghua in China • WITs in South Africa • Indian institutes of technology

We build relationships with top universities

Alstom as an Investor in Developing Countries

• South Africa • investment in training, education and development of local capacity and

skills • 176 professionals (project managers, planners, quality control) • 55 bursaries for engineers (mechanical, electrical and civil) • 650 artisans (fitters, welders, technicians, boilermakers, etc)

• India • We introduced an induction program for Young Engineering Graduates • First intake of 126 in 2011 • 75 days induction, nine months on-the-job training

Some examples of workforce investment:

Capacity building: skills & supply chains

Supply chain support, S Africa

Presentation Title - Presenters Initials - dd mmm yyyy - P 14

Graduate induction, India

Lessons:

Infrastructure investment attracts FDI and supports local skills & SMEs Encourage long-term investment & relationship-building

Market demand: domestic & export markets

What do we consider when we invest in a country or facility?

Market Potential Costs Technology and Logistics Risk Mitigation = Commercial

Viability

Presentation title - 01/01/2007 - P 15

Policy is the biggest risk

Government policy must:

• Be based on a strong, long term vision

• Be predictable

• Be well designed to support technology development

• Deal with non financial barriers as well as financial

• Assure fair access to transmission and distribution

• Be enforced

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Public Private Sharing of Risks

• Public/ Private sector

• Private sector

• Public/ Private sector

• Public sector

Policy Capacity

Commercial Technical

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Allocate risks to those best placed to handle them

Financial instruments to help contain risks

Operational support for renewable technologies

Insurance Mechanisms

Loan guarantee programs Credit enhancement

Public- Private funds aimed at sharing risk

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Risk containment

In conclusion

• Companies like Alstom already have experience in delivering clean development projects in emerging and developing economies

• In addition to carrying out projects, we are investing in capacity building, facilities, skills development and supply chains

• We can identify the risks associated with investments, and we can advise government on policies to mitigate risk

• In conjunction with the financial sector, we can advise on financial mechanisms for mitigating risk

• We are large enough to contribute significantly to green growth

And we are more than willing to help

Presentation title - 01/01/2007 - P 19

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