qten96-ep72-2 european product release

QTEN Product Release Document Product Release up to 72.5 kV A.Russell / April 2010-04-09

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QT EN 96-EP72*-2* High Voltage Cold Shrink Termination up to 72.5 kV U.max

European Product Release

European Marketing Guideline

Date: 28.02.2012 Author: Allan Russell 1. PRODUCT The 3M QT EN Cold Shrink Series Kits are designed to terminate high voltage cables up to 72.5kV (Umax) voltage class. This product line can accommodate many different polymeric (XLPE, EPR, PE) insulated power cables according to IEC 60840.


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2. PRODUCT DESCRIPTION The QT EN Termination includes a Coldshrink body with integrated, silicone elastomeric insulation and outer silicone rain sheds, with a separate Coldshrink Stress Control Adaptor. Also included are silicone Coldshrink PST’s (Pre-Stretched Tubes) for a bottom and top Lug sealing. The inner refractive stress control layer and the silicone insulation layer are co-extruded during the manufacturing process. The Termination is designed to accommodate all available cable Lugs designs including, hexagonal or deep indent crimping technologies and a large variety of mechanical shear-off connecting technologies. Polymeric Terminations: Single core Terminations: We release four polymeric Terminations kits covering one voltage class 72.5kV Umax. All kits will be available as a standard European kit. 3. PRODUCT APPLICATION RANGE Find below the basic kit portfolio of QT EN Termination family. In case you require any different application / configuration please contact our technical service department. 96-EP620-2R for use on XLPE Cables with a Copper Wire Screen 120 – 630mm2, Internal Type Test only. Fighting Brand for Large Volume Projects for use on 66kV Cables operated at 52kV. 96-EP720-2 for use on XLPE Cables with a Copper Wire Screen 120 – 1000mm2, Full Independent Type Test. 96-EP722-2 for use on XLPE Cables with a Lead Sheath 120 – 1000mm2, same design as 96-EP720-2. 96-EP724-2 for use as a retrofit kit to replace Heat shrink Terminations on XLPE Cables with a Lead Sheath 120 – 1000mm2


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4. PACKAGING INFORMATION & PRODUCT STOCK-NUMBERS Stock Numbers: Please see the list of released stock numbers in the table below: KE-2341-0845-1 for 96-EP620-2R XLPE cable with a Copper Wire Screen. KE-2341-1331-1 for 96-EP720-2 XLPE cable with a Copper Wire Screen. GE-7000-3672-8 for 96-EP722-2 XLPE Cable with a Lead Sheath GE-7000-(TBC) for 96-EP724-2 XLPE Cable with a Lead Sheath, Retrofit design. Packaging: One core kits: Each single core kit is packed in the carton included all components needed for installation of ONE PHASE excluding Phase and Screen Lugs. Each kit includes minimum English and Spanish translation. Other languages can be requested by contacting our technical service department. View example of kit labeling:


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5. TRANSFER COST SOS Product Description SOS 3M ID Barcode EAN14 MOQ @ ESL ESL Each/Pallet TCs(euro) ELNSP MOQ @ Marcallo Production Lead Time

QTEN 96-EP620-2R KE234108451 08021684622236 no esl no esl 16 €203.00 €450.00 1 each 32 working daysQTEN 96-EP720-2 KE234113311 08021684696473 no esl no esl 12 €237.60 €550.00 1 each 32 working days

6. SOURCE OF SUPPLY Marcallo - 3M Italy CMI Planner: Cosimo Borraccino Supply Chain - Logistics Manager 3M Marcallo Electrical Markets e-mail: [email protected] Tel: +39 02 70355818 Fax: +39 02 97255980 7. TARGET MARKETS a.) Pan European Power Utilities and Branches (EdF, E-on, Endesa) We position QT EN product for power utilities where large volume requires special pricing and cost structure and 3M strategic intend is to expand application offer with high competitive advantage. b.) Local Power Utilities with 66kV Networks. c.) High Speed Train Networks. Termination 96-EP620-2R d.) Other Industrial applications.


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8. SALES STRATEGY AND TACTICS QT EN kits have all performance and cost characteristic which qualify as a LEADER in the medium tier market segments. The product line offer competitive alternative to Tyco heat shrink or some low cost cold shrink (Prysmian), cold applied (ABB & Pfisterer), Composite/Porcelain ( NKT, SüdKabel & Nexans ). The prime sales strategy is to GAIN NEW CUSTOMER IN THE MEDIUM TIER SEGMENT. Today there are two product lines available for QT EN Terminations and this addresses three different competitor types:

- A.) GAIN MARKET SHARE FROM HEAT SHRINK COMPETITOR: Product to offer: QT EN Polymeric Termination.

MESSAGE TO CUSTOMER: YOU GET BETTER PRODUCT WITH SIMILAR PRICING THAN HEAT SHRINK

Argumentation:

- Technology upgrade to cold shrink Termination body which increase reliability - Less dependence on installation quality as stress control is integrated - Easier and safer installation in a confined space to shrink Termination properly - No risk to overheat cable insulation when applying Coldshrink components - Kits covers wider application ranges - Proven technology - Less installation steps/components - Similar installation technique to heat shrink so minimal training required

B.) GAIN MARKET SHARE FROM COLD SHRINK, SLIDE-ON COMPETITOR AND PROTECT EXISTING COLD SHRINK BUSINESS: Product to offer: QT EN Polymeric Termination.

MESSAGE TO CUSTOMER: 3M IS THE INNOVATOR OF COLD SHRINK TECHNOLOGY WITH HIGHEST EXPERIENCE. WE PROVIDE THE BEST PRICE/VALUE RATIO IN THE COLD SHRINK MARKET

Argumentation:

- 3M has the longest industrial experience in cold shrink - Wide range of product covering big variety of cable sizes and types - Easier and safer installation in a confined space to shrink Termination properly - Kits covers wider application ranges - Simple and Easy Installation with no taping

C.) GAIN MARKET SHARE FROM COMPOSITE SEALING END TYPE TERMINATIONS:


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Product to offer: QT EN Polymeric Termination.

MESSAGE TO CUSTOMER: YOU GET BETTER PRODUCT WHICH IS SIMPLIER TO INSTALL THAN COMPOSITE SEALING ENDS

Argumentation:

- Less dependence on installation quality as stress control is integrated - Wide range of product covering big variety of cable sizes and types - Easier and safer installation in a confined space to shrink Termination properly - Kits covers wider application ranges - Simple and Easy Installation with no taping

Our strategy is NOT to destroy market pricing, especially NOT in the premium product level, but to GAIN additional businesses to acquire NEW CUSTOMERS and gain market share from competition. In case we gain a new customer with the QT EN Termination we need to start to work with the customer to demonstrate advantages of full cold shrink system. We need to manage to change customer specification in a way that full cold shrink system should be accepting the price different between the heat-shrink and cold-shrink system. This allows us to upgrade customer specification in a way that we can gain unique position to introduce full cold shrink line. 3M Interest to upgrade market / customer specification in a higher level to gain unique position on the market which provide to us sustainable business growth opportunity in this segment.


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9. KEY PRODUCT BENEFITS AND TOTAL INSTALLED COST ANALYSES

Features Advantage Benefits

Cold Shrink Termination Easy and Safe Installation

Constant radial pressure

- Less workmanship dependence

- Provides excellent electrical interface between cable and splice body.

- Minimize network maintenance cost

Four Component construction Integrated Stress Control layer, Insulation layer

Minimized number of kit components

- Factory controlled interfaces between different elements of splice body.

- Minimize the probability of installation errors

- Minimize network maintenance cost

- Easy and straight-forward installation

Extruded Termination Body Optimize manufacturing cost for high volume applications

- Cost saving

Silicone Termination body Wide range taking capabilities

Excellent cold temperature shrinking performance

- Reduce inventory needed to cover all applications

- Reduce risk of wrong product selection

- Compatible with Mechanical and Crimped Lug technology

- Easy and safe installation in wide temperature range

Meets European Standards

IEC 60840

Ensure high quality and performance

- Safe cost ensuring low network maintenance cost

Total Installed Cost Analyses for a 1-core Polymeric Termination:


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96-EP720-2 Installation time per phase, 30 Minutes for Installation of Coldshrink Termination with a total Installation of 1 hour, dependent on Stripping Tools, including Cable preparation.

Total Installed Cost Analysis

Total Installed Cost QTEN

Cold Shrink Technology

Heat Shrink Technology

Installation Time (estimated time, including cable prep. in min)

60 240

Time lost before energising (estimated time in min)

0 30

Total Installation Time (estimated time in min)

60 270

Estimated Price per 1 kit (Euros) 700 650

Gas, Cleaning, etc (other accessories)

0 2

Installation Cost for 1 installer (50 €/hour labour cost for 1 installer x time to install (min)

50 225

Total Installed Cost (Euros) 750 877

Total savings over 100 Terminations ( Euros) 12700

10. SALES COLLATERAL Product Presentation QT EN Product Information Document Data Sheet for each basic kit Test Reports Instruction drawings 11. COMPETITION


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The 66kV Termination market can be divided to three segments: Premium, Medium tier and Low tier segment. The major differentiation of the segments is the easiness of installation and the independence of quality and performance from the installer skill set. This differentiation can be defined by following product attributes:

a.) Integration of termination b.) Number of kit components c.) Insulation materials d.) Range taking capabilities

Premium tier product characteristic:

a.) The Termination body consists of a one piece system, insulation layer, stress control system and rain sheds. Some cases the Lug seal is integrated as well. (Some cases separate tape or pad needs to be used)

b.) Few components of kit. c.) Elastomeric materials used for Termination body like Silicone d.) Covers wide application range, different connector technologies and big tolerances in cable

diameters Very important remark, that Prysmian Cold Shrink / Cold Applied Termination for 66 kV applications has been released. Still awaiting analysis. Medium tier product characteristic:

a.) The Termination body consists of an insulation layer and stress control system with rain sheds applied separately. Lug seal separate.

b.) More components in the kit. c.) Elastomeric materials used for splice body like Silicone. d.) Some limitation in application range coverage (typically slide-on technology). Connecting

system compatibility needs to be checked carefully, only small tolerances allowed in cable dimensions.

We can classify from the pricing point of view the Heat Shrink suppliers to the medium tier market. The Heat Shrink Terminations – from the performance and complexity of installation point of view more fits to low tier products, but some customer based on good experience especially where installers are highly skilled are very loyal to this technology. Low tier Product characteristic:


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a.) Termination consisting of several heat shrink tubes (one for Stress Control and many separate insulation tubes added according to required insulation level). Stress control tubes are always separate, sealing mastic needs to be used under the Termination body to provide sustainable water tightness. Around the Lug and at the end of cable semi conductive screen needs to be applying stress grading mastic.

b.) Lot of kit components (different size of heat shrink tubes, mastics, some cases silicone grease to slide different component in position.

c.) Heat Shrink sleeves used for insulation materials. This material needs to be combined always with sealing mastic to provide proper sealing characteristic.

d.) Application range is very limited. Most cases two—three cross section can be covered with one kit. Different connector technologies require different kit designs.

See in below table the overview of European High Voltage Accessory market competitors:

Nexans13%

Others16%

T&B1%

G&W3%

Sagem4%

Pfisterer4%

NKT6%

Viscas9%

Sudkabel7%JPS

5%ABB6%

TYCO4%

Prysmian15%

Ankura3%

3M4%


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Full details on 66kV competitive products are available on EMD EMEA Info Portal:

Tyco, Heat shrink, 13 Heat shrink Components. ABB, Cold Applied, Limited application range, many kits, “Screw Fit” Pfisterer, Cold Applied, 2 Part Silicone Slide on, 95-1000mm2 Nexans F/FM Composite or Porcelain, Slide on Joints Prysmian – Slide on, lots of taping, many components.

QTEN 72.5kV $6M EMEA Market Opportunity

$400k Additional Sales on Successful IEEE Type Test $800k Additional Sales forecasted

for 2010

$666k 3M sales 2009

$4.3M Further Opportunity


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12. PRICING GUIDELINES Out of Scope of Pricing Guidelines: Pan European tenders or tenders where the potential of 12 Months customer consumption is more than 1500 Terminations are out of the scope of the guideline. This cases are always individual pricing can be applied and 60 days prior to pricing submission date please contact to European Product Marketer to initiate special pricing process. In Scope of Pricing Guidelines Pricing (create local price list) of QT EN product Please follow the below described process to create local pricing of QT EN kit series. In case the applied process is conflicting with above mentioned LNSP guideline please contact to European Product Marketer. Step 1. Price Value Map Please list the major competitors in your local market and create a price Value map for the major applications:

Step 2. Position the QTEN(R) & QTEN Portfolio and align 3M portfolio to the market situation.

66 kV Termination

Competitor

Competitor

Competitor Competitor

Competitor

Competitor

Competitor

350 € 375 € 400 € 425 € 450 € 475 € 500 € 525 € 550 € 575 € 600 €

0 1 2 3 4 5 6 7 8


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Step 3. Price positioning: Based on Market situation define the pricing. Check that does it fits to the guidelines. In case you identify significant deviation from European pricing contact to European Product Marketer. 13. LONG TERM PRODUCT STRATEGY QT EN Product family provides a competitive medium tier product to the High voltage Termination market. 3M protect the premium product pricing QT EN with QT EN(R) kits and enables to penetrate and gain market share in the medium tier market. Today 3M offers only a small variety of High voltage accessories to the market where with a right product and design selection we can satisfy our customer expectoration for the pricing as well from the performance point of view. Our ultimate strategy needs to have a following key component:

a.) Protect Pricing for different market segments (Premium Product – Premium Pricing, Medium Tier Product – Medium Tier Pricing)

b.) Destroy the myth that cold shrink is and un-affordable (expensive) technology c.) Penetrate and gain customer by selecting the right 3M product line which is closest to their

specification. d.) Value selling: Work with the customer together to demonstrate the strength of 3M portfolio,

expertise and technologies to upgrade customer specification in a way that 3M can offer competitively higher specification (more premium direction) products

e.) Reduce new customer acquisition time by applying multi-tier product offer

Further development of product portfolio:

In 2010 we will release a larger size QTEN to accommodate Cable Cross sections up to the range of 2000mm2 for single core polymeric cables for 36/60(72.5)kV

14. TECHNICAL, SUPPLY CHAIN AND MARKETING CONTACT

20 kV Inline Splice

Competitor 6

Competitor 3

Competitor 7 Competitor 5

Competitor 1

Competitor 2

Competitor 4

350 € 375 € 400 € 425 € 450 € 475 € 500 € 525 € 550 € 575 € 600 €

0 1 2 3 4 5 6 7 8 Value

QT ENQT EN(R)Heat-Shrink


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Technical Support:

3M Deutschland GmbH Jens Weichold Senior Development Specialist Energy Products Electrical Markets Division Tel: +49(0)2131/14-2212 - GSM+49 (0)1752247404 Fax: +49(0)2131/14-122648 e-mail: [email protected]

Supply Chain (CMI Planner):

Cosimo Borraccino Supply Chain - Logistics Manager 3M Marcallo Electrical Markets e-mail: [email protected] Tel: +39 02 70355818 Fax: +39 02 97255980

Marketing Support: Allan Russell European Business Development Manager

3M Centre, Bracknell, Berkshire RG12 8HT e-mail: [email protected] Tel: +44 7774 100346

qten96-ep72-2 european product release

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