普华永道——CDD slides_Zhuhai_030908.PPTVIP

Project Medium Voltage Phase 2 Draft Transaction Services Project Medium Voltage Phase 2 8.29.03 17:11 FG Zhuhai FG Zhuhai’s sales amount dropped about 9% in FY02/03 compared with that of FY01/02, key reasons are: Spin-offs of cable joints and terminators business in FY01/02, but no information available on those products; Internal sales team restructuring; Postponement of electricity investment by PSB (Power Supplying Bureau) customers due to electricity industry reform; Price depreciating because of the fierce competition from other key market players, especially ABB on switchgears (pricing 20-30% lower than FG for same type products, for ABB had localized their production having set up a JV in Beijing) and 2 local companies on connectors (copying the products of FG) NPG Beijing 27 Section 3a - Sales FG Zhuhai sales amount slumped in FY02/03 compared with FY01/02, NPG Beijing…… Added Switchgears Connectors* May 2001 – Apr. 2002 1,438 3,910 May 2002 – Apr. 2003 1,691 3,259 FG Zhuhai sales volumes (FY01/02 - FY02/03) € ’000 All products** May 2001 – Apr. 2002 6,807 May 2002 – Apr. 2003 5,001 FG Zhuhai sales amount (FY01/02 – FY02/03) * Excluding cable joints and terminators ** Excluding VAT Source: FG Zhuhai management interview Unit: piece Project Medium Voltage Phase 2 8.29.03 17:11 30 Section 3a - Sales FG Zhuhai sales amount is expected to recover for FY03/04, While NPG Beijing…… Added FG Zhuhai budget (FY03/04) * Excluding VAT Source: FG Zhuhai management interview FG Zhuhai The adjacent table shows the FY03/04 budget of FG zhuhai. Future sales turnovers growth will mainly come from new customer wins due to several factors: The internal restructure is over and sales has been restored to its normal ways; Launch of new product of GAE, which is very competitive in China market; Future expansion to new regions north of Yangtze river; Close cooperation with local PSB will be set up in the near future. According to the estimates of FG Zhuhai management, prices wi