An exploration of North America's wind energy sector and a look at Goldwind Corporation.

1. Goldwind USA
Chinese Wind in the Americas
Prepared by:
Jasjit Singh, Harmandeep Deol, Neha Randhawa

2. Agenda
• Background
• Industry
• Financials
• Critical Issues
• Recommendation

3. Cost per MW

4. Goldwind Development History
Wind farm in Panama 2015 | $427 Million | 86 Turbines

5. Ownership Structure

6. Leadership – Goldwind US
Tim Rosenzweig
CEO
David Halligan
CFO
Matt Olive
VP Sales
Scott Rowland
VP Engineering
Kate Dusett
VP Planning.
Operations, Logistics
Nancy Cook
Head – Marketing &
Strategy
David Halligan
CEO
Nurdin Bi
CFO
Matt Olive
VP Sales
Scott Rowland
VP Engineering
Kate Dusett
VP Planning.
Operations, Logistics
Nancy Cook
Head – Marketing &
Strategy
2012
2014

8. Market Share in 2013
*http://www.goldwindglobal.com/upload/files/201403/201403240919393.ppt.pdf

9. Industry View- Annual Installations (MW)

10. International Presence

12. Financials

13. Pricing Pressure in RMB/KW

14. Revenue Segmentation

16. Issues Facing Goldwind USA
• Banks and utility companies hesitant to finance
new energy projects due to economic
conditions… recession in 2008
• Goldwind USA leadership team lacks the
credentials to be successful
• Reduced overall demand for energy led to lower
prices for natural gas and other conventional
power generation
• United States do not have as lucrative
government incentives for the wind sector and
current subsidies and tax credits might not be
renewed
• Battling well-known industry players and brands
in the United States

17. Issues Facing Goldwind USA Cont’d
• Quality concerns with Chinese developed wind
turbines
• Wind industry growth declining since watermark
year in 2008
• Several international entrants failed in the early
2000s which has left a bitter taste in the mouth
of Americans
• From start to finish, a wind farm could take up to
5 years to become operational…. Ease depends
on many factors including which state the wind
farm will be setup in
• Failure to achieve wind “grid parity”… price that
is on par with conventional power sources

18. 3 Critical Issues for Goldwind USA
1. Leadership team lacks the relevant
experience to be successful
2. Lacking customer pipeline of projects
3. Lack of brand awareness and respect in
the United States

19. Addressing Leadership Team
• Lacks the relevant experience
• 113 years of experience… But all in a few
small firms (start-ups)
• Need to address talent gap in leadership
team
• Source talent from top American firms
– Leverage GE human capital and pipeline
to develop Goldwind USA

20. Options for Goldwind
Sell Turbines to Developers of Wind Farms
•PROS: Simple process of earning revenue & low risk investment
•CONS: Constrained financing, reduced power demand & power of large firms
Partner with Utility Companies
•PROS: PPAs are inherent in deal & consistent revenues
•CONS: Difficult convincing Utility companies to work with Goldwind
Full Ownership of a Project prepared by a Developer
•PROS: Experienced, brand awareness & service companies can support farm
•CONS: Significant up-front investment and risk on not being able to sell
Financier of Wind Farms
•PROS: Ensure sales of turbines by providing financial instruments
•CONS: Growth tied to equity & capital versus turbine sales

21. Recommendation
Goldwind USA should
implement a BOT Strategy…
Build, Operate & Transfer

22. • Potential US customers skeptical of quality
and integrity of Chinese products
• Need to convince customers of Chinese
capabilities, Goldwind best option vs. others
(eg. GE)
• Chinese business culture - personal trust and
long-term relationships are critical in
business decision making
Issue of Branding

23. • Demonstrate successful operating record in
China can transfer to US
– Strong cash position, commitment to R&D
– Thousands of MW installed in China
– Known for reliability
– 25,000 years turbine ops experience
– Terrain more harsh in China, US market
should be easier
– Geography doesn’t impact performance and
experience … “commercially proven”
Issue of Branding Cont’d

24. • Showcase technology capabilities
– German proprietary via (Vensys)
– PMDD (turbine efficiency, fewer failures)
• Source component parts in Germany,
assembly in US, sell in US
• Need to forge strong supplier relationships
and skilled after-sale service partners
Issue of Branding Cont’d

25. • Reinforce US advertising campaign:
– Brand personality
– Communicate human elements
– Quality of products
Issue of Branding Cont’d

26. • New supplier selection process
• Address Chinese concerns of quality,
assurance and control
• Begin with selecting US suppliers with whom
HQ had previous relationships
• Generate supplier network to hedge market
cycles – ensured product availability and
lead time flexibility
Convincing the Chinese to Source Locally

27. Why Source Locally?
• Reduce market skepticism around Chinese
quality
• Improved logistics by reducing lead times
overseas and transportation costs
• Suppliers can visit site for troubleshooting
easily, local after-sales support
• Reduced rates from US suppliers due to
2008 recession
• Job creation

28. Thank you!
Q&A