APRIL 2018 ABB Division Fact Sheets - new.abb.com · ABB financial summary1 April 26, 2018 ... (DCS, PLC) Adv. process control & manufacturing execution systems Electric propulsion

APRIL 2018

ABB Division Fact Sheets

55%45%

28%

19%

24%29%

23% 14%

42%21%

82%

18%

47%

21%

32%

35%28%

37%

54%46%

32

41

27

ABB financial summary1

April 26, 2018

1Data by new divisional structure effective January 1, 2018; 2illustrative, based on 2016 estimates; 3Sales of products, systems, or services where software is part of what is delivered or requires real-time integration with customers’ systems; 4Constant currency

Slide 2

Revenues by division 2017% of total revenues

PGEP

IARM

TransmissionDistributionRenewable gen.Conventional gen.Mining & metalO & G, ChemicalOther IndustryBuildings

UtilitiesIndustryTransport & Infr.

Revenues by end market2

% of total revenues, estimated

MarineRailOther Transport & Infrastructure

Revenues by region 2017% of total revenues

Mature marketsEmerging markets

EuropeAmericasAMEA

Employees by region 2017% of total workforce

EuropeAmericasAMEA

Revenues by product type 2017% of total revenues, estimated

Digitally enabled3

Non-digitally enabledProductsServices

Revenues and Op. EBITA margin % US$ bn and %

39.835.5 33.8 34.8

11.3% 11.9% 12.4% 12.1%

2014 2015 2016 2017

Service revenue percentage% of total revenues

15%16% 17% 18% 18%

2013 2014 2015 2016 2017

Dividend per share CHF

0.65 0.68 0.70 0.72 0.74 0.76 0.78

2011 2012 2013 2014 2015 2016 2018

Capital allocation 2014 – 17 US$ billions and % of total deployed

DividendShare buybackCapex

Acquisitions

~$16 bn

Operational EPS growth4

1.30 1.361.40 1.39

2014 2015 2016 2017

+5% +3%

FCF and percentage of net income US$ bn and %

2.6 2.93.0 3.1 2.9

94%110%

156% 132%

2013 2014 2015 2016 2017

161%

-1%

Main competitors

Partner of choice for a stronger, smarter and greener grid

Power Grids

April 26, 20181New divisional structure as of January 2018; 2Consolidated (unconsolidated ~$140 bn market); 3Comparable growthSlide 3

Market ~$110 bn market in 20152

Position of strength Market and technology leaderUnrivalled application know-howTruly global player with largest installed baseLeading software and automation solutionsIndustry leading margins

OfferingBroadest offering of products systems, services and software for power transmission and distribution

Key figures1

1.0 1.0

10.1% 10.3%

35.0 35.5

2016 2017

Op. EBITA$ bn, margin %

EmployeesThousand

10.5 9.2 10.0 10.0

Orders and revenues$ bn

OrdersRevenues

-12%3

0%3

29

40

31

78

148

15

85

Offering

Business breakdown and trends

Power Grids

April 26, 20181Illustrative, based on 2016 estimatesSlide 4

Customers1 Geography

Approximation, % Approximation, % % of revenues

Transmission & distribution: Increasing complexity, more take-out and feed-in points, interconnections, aging infrastructure, physical cyber security

Integrating renewables: Long distance transmission, storage, bi-directional flow, power stability, microgrids

Connecting consumers: Rail electrification, datacenters, 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

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

EuropeAmericasAMEA

Emerging marketsMature markets


TransmissionDistributionRenewable generationConventional generationIndustryRailOther Transport & Infrastructure

ProductsServices

5050

Partner of choice for a stronger, smarter and greener grid

Power Grids

April 26, 2018 Slide 5

Consulting, planning servicesNetwork control, operation servicesAsset & workforce mgmt.Asset performance mgmt.Maintenance services

Distribution transformersPower transformersHV gas / air insulated switchgear Power quality components

Products & components

Substations Grid automationFACTSHVDCMicrogrids

System & automation Consultancy, services & software

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Automation HVDC #1#1 #1

Partner of choice for electrification of all consumption points

Electrification Products


Main competitors

Market ~$140 bn market1 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

Key figures

1.5 1.5

14.7% 15.0%

42.5 42.2

2016 2017


EmployeesThousand

9.8 10.1 9.9 10.1


OrdersRevenues

+5%2

+2%2

1Unconsolidated; 2Comparable growth

37

27

36

465446

620

12

97

Channels1

Business breakdown and key end-market growth trends




DistributorsInternalUtilitiesEPCOEMPanel builders

Buildings:Up globally, shift to smart buildingsIndustry:Solid growth from digitalization as well as safetyRenewables:Double digit growth

Digitalization:Connectivity and communication, digital models and configuratorsServices: Condition monitoring and diagnostics, cloud connection and cyber security, collect, provide and process data

DistributionRenewable gen.Mining & MetalO&G, ChemicalOther IndustryBuildingsOther Transport & Infrastructure


EuropeAmericasAMEA


18

3349

Approximation, % of revenues

Approximation, % of revenues

% of revenues

Emerging markets:Construction and infrastructure trends in key markets such as China and India. Urbanization and renewable integrationMature markets: Smart and energy efficient buildings. Intelligent power distribution. Growing datacenter and EV fast-charging infrastructure

Partner of choice for electrification of all consumption points



LV/MV switchgearDistribution boardsCircuit breakersSolar inverters, UPS

MV grid automationMotor control centersIntelligent breakers

EV chargingWiring accessoriesIntelligent building / smart home products

EnclosuresDIN-rail productsWire and cable mgmt.

Electrical distribution Automation/Control Installation Building solutions

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Electrification #2MV #1 EV fast charging #1

Main competitors

Partner of choice for industrial automation

Industrial Automation

April 26, 20181New divisional structure as of January 2018; 2Unconsolidated; 3Comparable growthSlide 9

Market ~$120 bn market in 20152

Position of strength Integrated control product, system and service offeringAdvanced process control & optimization software and know-howIntegrated power and automation solutionsLargest 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

Key figures1

0.9 1.0

13.4% 13.9%

22.3 25.2

2016 2017


EmployeesThousand

6.0 6.6 6.7 6.9


OrdersRevenues

+2%3

-3%3

42

20

3842

58

Offering





Chemicals:Positive fundamentalsF&B, pharma & discrete industries: Population growth, increasing disposable incomeCruise ships:Strong demand from Asian and North American operators

Emerging markets:Penetration of basic automation still rising, aging installed base provides upgrade opportunitiesMature markets:Leveraging digital to achieve next level of productivity, energy efficiency and safety

Digitalization:Growth opportunity building on largest installed base in power generation and process industryServices:Supporting customers remotely with advanced services and optimization


Conventional generationO&G, ChemicalMining & MetalsOther IndustryMarineOther Transport & Infrastructure

EuropeAmericasAMEA

Emerging marketsMature marketsProducts

Services

13

59

2845

55

% of revenues Approximation, % of revenues

% of revenues

Partner of choice for industrial automation


April 26, 20181Leader in Force MeasurementSlide 11

Integrated electrification & automation solutionsSystems and advanced services

Process and discrete control (DCS, PLC)Adv. process control & manufacturing execution systems

Electric propulsion systems for shipsLarge turbochargers >500kW

Pressure, temperature, flow, level, force measurementAnalyzers

Industry-specific solutions & services

Control systems & software

Measurement & analytics Propulsion

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DCS #1; PLC top 5APC/MES software #1/2

Process industries #1-5Marine #1

Electric marine propulsion #1Turbocharging #1

Measurement &analytics top 3-51

Main competitors

Partner of choice for robotics and intelligent motion solutions

Robotics and Motion

April 26, 20181New divisional structure as of January 2018; 2Unconsolidated; 3Comparable growthSlide 12

Market ~$100 bn in 20152

Position of strength Technology leader in fast-growing robotics marketBroadest robotics portfolio and large installed base Largest motion player with unmatched global reachAt the cutting edge of power electronics and quality, renewables, and electric transportation

Offering

Robotics and intelligent motion solutions

Key figures1

1.2 1.3

15.6% 15.0%

26.6 27.1

2016 2017


EmployeesThousand

7.9 8.5 7.9 8.4


OrdersRevenues

+8%3

+6%3

35

33

32

85

15

Offering


Robotics and Motion



Automotive: Growing specifically in emerging markets like Asia3C & semicon: Robotization of manufacturing processesFood & Beverage: Population andincome growth, lifestyle changes

Emerging markets: Automation and productivity driving robotization, key market ChinaMature markets: US and European macro-economic trends and digitalization supporting growth, political risks

Digitalization: Will continue gaining relevance and will drive customer expectationsServices: Growing reliance on data management and statistical productivity

Products Services

12

68

2039

61

EuropeAmericasAMEA



RailBuildingsMarine

Renewable gen.Conventional gen.O&G, ChemicalAutomotiveMining & MetalF&BOther Industry

% of revenues Approximation, % of revenues

% of revenues

Partner of choice for robotics and intelligent motion solutions

Robotics and Motion


LV motors to 1’200 kWHV motors to 80 MWPower generators to 80 MWMechanical power transmission

Industrial robots, software and IoTSPconnected servicesRobotic applications and systems for diverse industries

Robotics

LV AC drives up to 5600 kWMV drives to 100 MWWind convertersDigital services and software toolsPropulsion converters

Drives Motors & Generators

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#1#2 #1

ABB LtdInvestor RelationsP.O. Box 8131CH-8050 ZürichPhone: +41 (0) 43 317 71 11E-mail: [email protected]

www.abb.com/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

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APRIL 2018 ABB Division Fact Sheets - new.abb.com · ABB financial summary1 April 26, 2018 ... (DCS, PLC) Adv. process control & manufacturing execution systems Electric propulsion