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CAPITA L MARKETS DAY, OCTOBER 4, 2016
ABB Division Fact Sheets
October 04, 2016©ABB
Slide 2
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1Revenues by new divisional structure effective January 1, 2017; 2Sales of products, systems, or services where software is part of what is delivered or requires real-time integration with customers’ systems; 3Adjusted for the impact of divested businesses; 4Constant currency
ABB financial summary
TransmissionDistributionRenewable gen.Conventional gen.Mining & metalO & G, ChemicalOther IndustryBuildings
UtilitiesIndustryTransport & Infr.
Revenues by division 20151
% of total revenuesRevenues by region 2015
% of total revenues
Revenues by end market 2015% of total revenues, estimated
Employees by region 2015% of total workforce
Service revenue percentage% of total revenues3
Capital allocation 2011 – 15 US$ billions and % of total deployed
Revenues by product type 2015% of total revenues, estimated
Dividend per share CHF
Operational EPS growth4
23%
27%
19%31%
PGRM
EPIA
37% 33%
30%Mature marketsEmerging markets
AMEAEuropeAmericas
32%45%
23%AMEAEuropeAmericas
15% 15%16%
17%
2012 2013 2014 2015
22%35%
34%
9%
DividendShare buybackCapex
MarineRailOther Transport & Infrastructure
59%24%
17%
Digitally enabled2
Non-digitally enabledProductsSystemsService and software
0.51 0.60 0.65 0.68 0.70 0.72 0.74
2009 2010 2011 2012 2013 2014 2015
1.281.35
2014 2015
Acquisitions
~$25 bn
51%49%
32
41
27
Revenues and Op. EBITA margin % US$ bn and %
39.3 41.8 39.835.5
12.1% 12.3%11.2% 11.8%
2012 2013 2014 2015
FCF and percentage of net income US$ bn and %
2.6 2.6 2.62.9 3.0
82% 94% 94%110%
156%
2011 2012 2013 2014 2015
+5%
55%45%
October 04, 2016©ABB
Slide 3
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1New divisional structure as of January 2017; 2Unconsolidated 3Comparable growth; 4Portfolio changes
Electrification Products1
Partner of choice for electrification of all consumption points
2015
Orders Revenues
Orders and revenues$ bn
10.5 10.2
Op. EBITA$ bn, margin %
EmployeesThousand
Current structure New structurepro-forma1,4
20152014
10.9
9.810.6
9.5
Main competitors
Market ~$140 bn market2 in 2015
Position of strength Complete portfolio for electrification of “the site”Strong distributor relationshipsGeographically balanced production and R&D footprintStrong growth segments renewables, data centersInnovative products and solutionsIntelligent solutions for smarter buildings
OfferingBroadest global portfolio of low- and medium-voltage products and solutions for intelligent protection and connectionPre-engineered, packaged solutions and services tailored to customers’ needs
1.71.6
1.3
16.4%16.4%
Key figures
1.514.7%
42.5 41.6 43.6
0%3
0%3
October 04, 2016©ABB
Slide 4
—Electrification Products1
Business breakdown and key end-market growth trends
Buildings:Up globally, shift to smart buildings
Industry:Solid growth from digitalization as well as safety
Renewables:Double digit growth
Customers Geography
Emerging markets:Slowdown in China; uncertainty in TurkeyModerate growth in Saudi Arabia & RussiaStrong growth India Mature markets: Pockets of growth USA & CanadaGrowth slowdown in Germany, Italy & Finland; uncertainty in UK
38
35
27
4654
AMEAEuropeAmericas
Emerging marketsMature markets
UtilitiesIndustryTransport & Infr.
1All comments and numbers pertain to the new divisional structure as of January 2017
18
3349
40
712
12
18
Channels
Digitalization:Connectivity and communication, digital models and configurators
Service / software: Condition monitoring and diagnostics, cloud connection and cyber security, collect, provide and process data
DistributorsInternalUtilitiesEPCOEMPanel builders
11
DistributionRenewable gen.Mining & MetalO&G, ChemicalOther IndustryBuildingsOther Transport & Infrastructure
Approximation, % Approximation, % Approximation, %
October 04, 2016©ABB
Slide 5
—Electrification Products1
Partner of choice for electrification of all consumption points
Electrification #2
Com
peti
tive
p
osit
ion
Mai
n o
ffer
ings
Maj
or c
ompe
tito
rs
Electrical distribution
LV/MV switchgearDistribution boardsCircuit breakersSolar inverters, UPS
Building solutions
EV charging
Wiring accessories
Intelligent building / smart home products
Installation
Enclosures
DIN-rail products
Wire and cable mgmt.
Automation/Control
MV grid automation
Motor control centers
Intelligent breakers
MV #1 EV charging #1
1Reflects portfolio changes as of January 2017
October 04, 2016©ABB
Slide 6
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1New divisional structure as of January 2017; 2Unconsolidated; 3Comparable growth; 4 Portfolio changes
Robotics and Motion1
Partner of choice for robotics and intelligent motion solutions
2015
Orders
10.9 8.4
Revenues
Current structure Discrete Automation & Motion
New structurepro-forma1,4
10.6
9.2
10.1
9.1
1.6
1.3
15.7%
13.9%
Key figures
1.3
15.7%
31.7 30.3 27.9
Main competitors
Market ~$100 bn in 20152
Position of strength
Technology leader in fast-growing robotics market
Broadest robotics portfolio and large installed base
Largest motion player with unmatched global reach
At the cutting edge of power electronics and quality, renewables, and electric transportation
Offering
Robotics and intelligent motion solutions Orders and revenues$ bn
Op. EBITA$ bn, margin %
EmployeesThousand
20152014
8.3
-5%3
-2%3
October 04, 2016©ABB
Slide 7
—Robotics and Motion1
Business breakdown and key end-market growth trends
Automotive: growing specifically in emerging markets like Asia
3C & semicon: robotization of manufacturing processes
Food & Beverage: population & income growth; lifestyle changes
Customers Geography
Emerging markets: China and India driving global growth
Mature markets: US growingEurope mixed; impact of Brexit still unknown
30
36
3436
64
AMEAEuropeAmericas
Emerging marketsMature markets
1All comments and numbers pertain to the new divisional structure as of January 2017
Transport & Infr.
Renewable gen.Conventional gen.O&G, ChemicalAutomotiveMining & Metal
RailBuildingsMarine
UtilitiesIndustry
F&BOther Industry
12
68
20
73
12
15
Offering
Digitalization: will continue gaining relevance and will drive customer expectations
Service / software: growing reliance on data management and statistical productivity
ProductsSystemsService and software
Approximation, % Approximation, % Approximation, %
October 04, 2016©ABB
Slide 8
—Robotics and Motion1
Partner of choice for robotics and intelligent motion solutions
Mai
n o
ffer
ings
Maj
or c
ompe
tito
rs
Robotics
Industrial robots, software and IoTSP connected servicesRobotic applications and systems for diverse industries
#2
Drives
LV AC drives up to 5600 kWMV drives to 100 MWWind convertersDigital services and software toolsPropulsion converters
#1
Motors & Generators
LV motors to 1’200 kWHV motors to 80 MWPower generators to 80 MWMechanical power transmission
#1
Com
peti
tive
p
osit
ion
1Reflects portfolio changes as of January 2017
October 04, 2016©ABB
Slide 9
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Main competitors
1New divisional structure as of January 2017; 2Unconsolidated 3Comparable growth; 4Portfolio changes
Industrial Automation1
Partner of choice for industrial automation
Op. EBITA$ bn, margin %
Employees
Key figures
Orders Revenues
Market ~$120 bn market in 20152
Position of strength
Integrated control product, system and service offering
Advanced process control & optimization software and know-how
Integrated power and automation solutions
Largest installed base, advanced services
Deep domain and process expertise
OfferingControl systems, software, measurement & analytics Industry-specific power & automation solutions, products (e.g. electric ship propulsion) and services
Orders and revenues$ bn 10.9
7.5 7.4
2015
Current structureProcess Automation
New structurepro-forma1,4
20152014
1.00.9
11.9%
11.8%
12.0%
25.8 24.8 25.2
9.2
7.38.6
7.2
0.9
-9%3
-5%3
October 04, 2016©ABB
Slide 10
—Industrial Automation1
Business breakdown and key end-market growth trends
Chemicals: positive fundamentals
F&B, pharma & discrete industries:population growth, increasing disposable income
Cruise ships: strong demand from Europe & Asia
Emerging markets: penetration of basic automation still rising, aging installed base provides upgrade opportunities
Mature markets: leveraging digital to achieve next level of productivity, energy efficiency and safety
43
34
23
505013
59
28
UtilitiesIndustryTransport & Infr.
Conventional generationO&G, ChemicalMining & MetalsOther IndustryMarineOther Transport & Infrastructure
1All comments and numbers pertain to the new divisional structure as of January 2017
AMEAEuropeAmericas
Emerging marketsMature markets
Digitalization: growth opportunity building on largest installed base in power generation and process industryServices and software: supporting customers remotely with advanced services and optimization
ProductsSystemsService and software
28
35 37
Customers GeographyOfferingApproximation, % Approximation, % Approximation, %
October 04, 2016©ABB
Slide 11
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1Leader in Force Measurement
Industrial AutomationPartner of choice for industrial automation
Com
peti
tive
pos
itio
nM
ain
off
erin
gsM
ajor
com
peti
tors
Industry-specific solutions & servicesIntegrated electrification & automation solutionsSystems and advanced services
Propulsion
Electric propulsion systems for shipsLarge turbochargers >500kW
Measurement & analyticsPressure, temperature, flow, level, force measurementAnalyzers
Control systems & softwareProcess and discrete control (DCS, PLC)Adv. process control & manufacturing execution systems
Process industries #1-5Marine #1
Measurement &analytics top 3-51
DCS #1; PLC top 10 APC/MES software #1/2
Electric marine propulsion #1Turbocharging #1
October 04, 2016©ABB
Slide 12
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Main competitors
1Consolidated (unconsolidated ~$140 bn market); 2Comparable growth;
Power GridsPartner of choice for a stronger, smarter and greener grid
12.8 12.212.5 11.6
38.1 37.2
Orders and revenues$ bn
Op. EBITA$ bn, margin %
Employees
8%2
2%2
Market ~$110 bn market in 20151
Position of strength
Market and technology leader
Unrivalled application know-how
Truly global player with largest installed base
Leading software and automation solutions
Industry leading margins
Orders Revenues
Key figures
2014 2015
OfferingBroadest offering of products systems, services and software for power transmission and distribution
0.6 0.94.7%
7.5%
October 04, 2016©ABB
Slide 13
—Power GridsBusiness breakdown and trends
Transmission & distribution: increasing complexity, more take-out and feed-in points, interconnections, aging infrastructure, physical cyber securityIntegrating renewables: long distance transmission, storage, bi-directional flow, power stability, microgridsConnecting consumers: rail electrification, data centers, EVs, industry
Emerging markets: Grid build out, renewable integration, interconnections, electrification of society
Mature markets: Renewable integration, interconnections, aging infrastructure, power quality, security of supply, electrification of transport
38 32
30
4753
AMEAEuropeAmericas
Emerging marketsMature markets
UtilitiesIndustryTransport & Infr.
TransmissionDistributionRenewable generationConventional generationIndustry
1Percent of division revenue 2015;
RailOther Transport & Infrastructure
78
148
52
34
14
Digital equipment: real time supervision, higher reliability, maintenance optimization
Digitally enhanced systems: faster installation, more configurable power quality, higher penetration of renewables, managing less predictable supply & demand
Software & operations: more real-time control, smart asset mgmt., planning optimization
ProductsSystemsService and software
Customers1 Geography1Offering1
Approximation, % Approximation, % Approximation, %
October 04, 2016©ABB
Slide 14
—Power GridsPartner of choice for a stronger, smarter and greener grid
Products & components Consultancy, services & softwareSystem & automation
#1 #1Automation HVDC
Distribution transformersPower transformersHV gas / air insulated switchgear Power quality components
Substations Grid automationFACTSHVDCMicrogrids
Consulting, planning servicesNetwork control, operation servicesAsset & workforce mgmt.Asset performance mgmt.Maintenance services
Mai
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ffer
ings
Maj
or c
ompe
tito
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#1
Com
peti
tive
p
osit
ion
October 04, 2016©ABB
Slide 15
—Contact us
ABB LtdInvestor RelationsP.O. Box 8131CH-8050 ZürichPhone: +41 (0) 43 317 71 11E-mail: [email protected]/investorrelations
This presentation contains non-GAAP measures of performance. Definitions of these measures and reconciliations between these measures and their US GAAP counterparts can be found in “Supplemental Financial Information” under “Financial results & presentations” – “Quarterly results & annual reports” on our website at www.abb.com/investorrelations
October 04, 2016©ABB
Slide 16
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