AUTOMATION (ASE)

284

Number of Employees

€39.8M

Turnover

€3.7M

EBITDA

VISION

To make Efacec a world-reference in the Systems and Products for Automation, Protection, Energy Systems Management and Energy Conversion market

MISSION

To achieve excellency levels and standards in developing and supplying of Systems and Products for Automation, Protection, Energy Systems Management and Energy Conversion and Space, sustained by a strong desire to continuously improve our multiple stakeholders’ satisfaction

STRATEGY

To guarantee our growth sustainability, by reinforcing the domestic market and increasing our international turnover
To develop a value proposal rooted on automation and protective solutions, with its own product and high flexibility, allowing for the adaptation to the client’s specifications
Relying on productisation

WHICH GEOGRAPHIES?

STRATEGIC
PILLAR

Technological
Innovation

Relying on productisation
Business escalation in Network Management
Positioning ourselves as a reference partner in the hardware roll-out for Medium-Voltage as far as smart grids’ development is concerned

Operational
excellence

To continue developing efficiency efforts towards reducing operating costs, namely through optimising procurement

Proactive
comercial
approach

Relying on larger scale geographies with better margins, balanced with our presence in lower-risk countries
Focus on markets that have local or regional utilities
Reinforcing local partnerships to serve opportunistic markets and/or countries that have difficulty in accessing the market through Efacec
Increasing joint commercial efforts, aiming to capture synergies within markets and/or clients (upsell and crosssell)

Focus
on the client

Quicker type approval and I&D projects
Improving the compliance of our delivery deadlines (On Time Deliver)

Talent
Development

Building a dual career model, fostering the professional development of technical tasks, as well as management tasks
Revising our performance assessment model, transversely incorporating throughout Efacec the specificity of functional families versus functional groups
Revising our compensation and benefits’ model, promoting guidance towards strategic (e.g.: commercial proactivity) and tactical goals (e.g.: lowering accident rate) of the Group’s Business Units
Defining a talent management model that allows for high potential employees to be singled out, guiding them through to more accelerated pathways of professional development
Putting together a behavioural, functional and management training plan, one that enables us to prepare our employees for the Efacec 2020 vision

The outlined strategy is materialised in 18 initiatives, which foreseeably will have a positive impact on the EBITDA around mid-2017.

GLOBAL MARKET VISION

We’ve seen a growing global tendency to implement network automation solutions and monitoring, and managing critical assets on behalf of the energy utilities. This is especially relevant in the regions of North America and Western Europe, where the continuous growing usage of renewable energy sources, such as wind and solar power, as well interconnections between regions and countries has generated technical and energy network management challenges, which can only be overcome with automation and control.

Also, globally speaking, there was a macroeconomic context characterised by some restraint or delay in investments. Yet, despite this scenario, opportunities for the Business Unit are still increasingly present, namely in Central Europe, especially Romania, and in South America, especially in Brazil.

OPERATIONAL PERFORMANCE

Thanks to the integration of new businesses, as part of the reorganisation process Efacec is invested in, the ASE BU has defined, for 2016, a new organic structure that favours verticalisation in the different areas of activity, ensuring leadership, focus and result-oriented, promoting synergies’ reinforcement, promoting synergies, team work, sharing of knowledge and communication. The new structure will allow for the Business Unit to be favourably positioned as far as the growth challenges that are brought about by the digitalisation of energy networks.

MALASIA
As far as the SCADA system for railroad infrastructure management is concerned, Efacec successfully concluded the Klang Valley Mass Rapid Transit Project, in Kuala Lumpur. This project sought to supply the electric traction network management system with a main power distribution as well as a redundant disaster recovery system. The railroad system in Kuala Lumpur entails a new line between Sungai Buloh and Kajang, including 32 stations distributed along 51 km.

NORWAY
Furthermore, as far as the SCADA system for railroad infrastructure management is concerned, we also implemented the management system for the Bergen Light Rail (red line with 15 stations along a 9.8 km length).

PERU
In August, Efacec successfully finished implementing a control and automation system for ENEL Distribución (formerly EDELNOR) in the 220/60kV transmission substation designated as Malvinas.

CHILE
Efacec also completed and delivered an automation system for substations to Transelec electric power company. The system was implemented in the 220kV Ciruelos substation, as part of the expansion of two AT lines.

TANZANIA
Efacec completed two new contracts for Tanesco – Tanzania Electric Supply Company – which included the supply, configuration and commissioning of automation systems for the 220/132kV substation and for the 150kW thermal energy central, both designated as Kinyerezi. The project was received by the client in a very positive manner, which led to the allocation of other projects for the substation expansion, as well as the main station.

MOZAMBIQUE
A Efacec also implemented the SAS system for EDM – Electricidade de Moçambique, for their 220/66/33kV transmitting substation in Matambo, in Northern Mozambique. This project was part of a more encompassing contract to expand this transmitting substation, which brings power to the largest coalmining concessions in Mozambique, and it also interconnects the Cahora Bassa hydropower station to the 220kV network.

GEORGIA
Efacec has implemented the SAS system for the Georgian State Electrosystem, an electric-power transmission company in Georgia, in the Jvari relaying substation, which reaches voltage levels up to 500/220/10kV.

In 2016, we’d like to point out the following events:

Launching of new ranges of IEDs – Intelligent Electronic Devices for protection and transmission, distribution and generation control. (500, 450 and 430 Series).
Launching 4 large I&D projects, with over 50% financing. DSGrid – digital substations, advanced ADMS4LV – SCADA for distribution networks, NextSTEP – PT do Futuro, and PowerFlow – energy storing with new flow battery technology.
Awarding of the largest relay-acquisition contract with Electrica Muntenia Nord, in Romania. Notably, in Romania, we supplied several 110/20kV substations with over 1.500 relays of the most recent range of protection and the control IEDs: the 500, 450 and 430 series.
Awarding a new contract to supply automation systems for substations, for the Electricity and Water Authority of Bahrain, resulting from a long cooperation with Efacec. This contract showed the ongoing preference for Efacec’s technology, coming to a total of over 50 commissioned substations all of them equipped with integrated automation, protection and control systems provided d by Efacec, in the past 10 years.
Signing an agreement for a programme-contract with Energinet – a transmissionutility in Denmark, one of the most prominent in Europe, for equipment and software supply to the substations’ automation system pilot-project.
Supplying the first reference for inverters’ solution and control for a hybrid plant (plant with diesel and photovoltaic energy groups) for an industrial client in South Africa The EFASOLAR Hybrid solution works as a flexible platform of photovoltaic inverters and controller that allows for easy integration with already-installed diesel groups or with any other new solutions available in the market.
PV Stations in the Dutch market.
Introduction of a new range of PAC products (Protection and Control for MAT/AT/MT) and finishing the appropriate homologations in 15 Power Utilities.

In the space segment, Efacec is developing, together with other three partners, an innovative radiation monitor for the JUICE mission that will orbit around Jupiter in 2022. In this field, Efacec continues to develop altimeters to be used in landing missions to Mars or other celestial bodies. In addition, Efacec is in charge of ALFASAT-TDP8 operations, enabling data gathering, broadcasting tele commands that define the equipment’s status. This equipment was supplied in 2013 and has been, ever since, in geo-stationary orbit as part of this ESA and Inmarsat satellite. In turn, the BERM – BepiColombo Radiation Monitor>, delivered to AIRBUS, is in its final tests’ stage as part of the spaceship that will be going into space in 2018, to orbit around Mercury.

FINANCIAL PERFORMANCE

ECONOMIC INDICATORS

(MILLIONS OF EUROS)

ASE’s turnover, as well as the remaining indicators, was directly influenced by three relevant events:

Transfer, to this Business Unit, of three activities – Power, Inverters and Space supply systems – which led to an increase in the business’ diversity and an increment in the respective turnover, which resulted in the highest order-volume to-date.
Change in the criteria for I&D costs accounting, which are now considered operational costs, therefore impacting the EBITDA.

The business that has come from the activities that were transferred on to ASE are the reason for the increase in orders when compared to the previous year, EUR 5.3 million from a of total EUR 14.2 million, and EUR 6.7 million from a total of EUR 8.2 million in revenue. In turn, these transferred activities have impacted the gross margin, from EUR 2.5 million to EUR 1.2 million.

ASE has kept, throughout 2016, a high investment volume in I&D activities (about EUR 4 million), which is the base for the business competitiveness, enabling it to enter into new markets, as well as securing new clients.

To perform a comparative analysis, we must show adjusted indicators of the effects of transferring activities and the R&D’s costs’ criteria standardisation.

ADJUSTED ECONOMIC INDICATORS

(MILLIONS OF EUROS)

EXPECTATIONS FOR 2017

The ASE BU foresees that 2017 will be a year of great challenges, with new products being launched, opening up to new markets and the start of new areas of activity, transversely supported by a new organisational model, heavily client-oriented and demanding operational excellency, as well as an ever-growing reliance on technology and sustainable growth.

Despite the fact that these perspectives of growth are quite aggressive, there is confidence in the Unit and the belief that the goals that were set-out will be attained, since the business plan is based on a set of commercial opportunities that safely meet the demands of the plan that was laid out.

In parallel, the Unit will pursue the development of its outlined strategies, such as implementing a new business model for the sale of protection and control products, launching a new storage activity area, as well as a vast number of initiatives in technological innovation, of operational excellency, of commercial proactivity, focused on the client and on developing talent.

For 2017, our goal is to also simplify working methods and internal procedures, seeking to make the Unit more agile and homogenous, ensuring greater speed and efficiency in our response to the client and to the market in general.

Finally, one of our goals for 2017 is to set up the foundations to make ASE BU one of the best companies to work for in Portugal, in its field of expertise.

A GLANCE
AT THE BUSINESS

PAULO
VAZ

AUTOMATION BUSINESS UNIT

What are the contributions that you attribute to the new range of protection and control products, for the next five years?

The new product ranges include third generation technology in this field of Efacec’s activity. Nowadays, we have a state-of-the-art range of products characterised by a larger breadth of functionality, compared to the previous generation, that embodies the more than 25 years of experience in the digital protection field. Developed from the ground up, based on standards for information modelling and functions like the IEC 61850, thus enabling us to respond to the international markets’ requisites, Efacec’s technology also shows differentiating characteristics such as total integration, in a single engineering software of all the range of products from transmission relays and local and central SCADA units, to the Medium-Voltage feeders. This new setting creates a unique set of technology/service value for all our clients and for our partners.

In addition, we’re revising all our product processes and technology, our value chain, and systemising the go-to-market in parallel with investing in R&D as far as the next generation of products is concerned. In 2017, we’ll be providing the necessary sustainability that can leverage a strong international economic growth in the next 5 years, together with our partners, making us a go-to partner in multiple geographies.

In such a context of organisational change and in a setting where digitalisation is a promising factor for this sector’s transformation, how do you see ASE’s placement to be and its role?

The emergency of big data, of thecloud, of the Internet of Things or Artificial Intelligence, is, even today, a reality, and 2016 established a new level as far as the expectations for the digitalisation of the industry are concerned, establishing a way-above-average perspective of growth for all digitally-based businesses. The future of all energy systems is a digital one and will be fixed on three axes: optimisation, flexibility and consumer’s experience.

As to the energy networks, we stand at a turning point as far as asset management, electric mobility penetration, storage, dispersed source production such as solar, photovoltaic and micro-grids, are concerned. These are not new concepts, but they are just coming to the industrial world and they can only be integrated in it if they’re managed by digital technologies. ASE BU gathers a set of unique skills as far as network digitalisation is concerned and we’re in the crux of this transformation, from Very High Voltage to Low Voltage, and also management and support software. We have a unique profile.

Is the unit ready for this new technological paradigm, and, at the same time, to meet all the demands of next years’ planned growth?

ASE BU clearly understands what has to be done and what are the critical factors for success that we need to include to be successful in all these challenges.

We’re in the frontline of what has been discussed as far the market’s evolution is concerned, mainly the technological evolutions we’ve seen, and the clients’ needs in terms of energy automation systems. On the other hand, revising our procedures, launching new products and also our highly skilled human resources, enables us to ensure, with great confidence, that we’re in the frontline of the bestplayers in the market.

Tiago Gonçalves - Unidade de Negócio de Service

Seguinte

Carlos Freitas - Unidade de Negócio de Energia