© ABB| Slide 1

Digitalisation is a must and an opportunity Digisalonki 6.6.2016 Helsinki

Marjukka Virkki, Country Service Manager, ABB Oy, 18.11.2015

© ABB| Slide 2

A global leader in power and automation technologies

2

Leading market positions in main businesses

June 3, 2016

Power & Automation

Utilities Transport & InfrastructureIndustry

© ABB| Slide 3June 3, 2016

A global leader in power and automation technologiesLeading market positions in main businesses

~140,000employees

Present

in

countries~100

Formed

in

1988merger of Swiss (BBC, 1891)

and Swedish (ASEA, 1883)

engineering companies

In revenue

(2014)

billion40$

© ABB| Slide 4

ABB in Finland

© ABB| Slide 5

Future is already here

The Economic Times: http://economictimes.indiatimes.com/news/international/business/china-sets-up-first-unmanned-factory-all-processes-are-operated-by-robots/articleshow/48238331.cms

© ABB| Slide 6

Future is already here

“In India, though, the concern is

more that companies may chose

never to hire human workers in

the first place.”

© ABB| Slide 7

Future is already hereIndustrial robots in work: ABB wire accessories factory in Porvoo

© ABB| Slide 8

Future is already here: Industrial robots in work: ABB low voltage switches factory in Vaasa

© ABB| Slide 9

Global market for industrial robotsYearly growth trend

Units

YoY

Gro

wth

Lähde: International Federation of Robotics

113 K

60 K

121 K

166 K 159 K178 K

229 K

259 K

298 K

-47%

101%

38%

-4%

12%

27%15% 15%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

0

50 000

100 000

150 000

200 000

250 000

300 000

2008 2009 2010 2011 2012 2013 2014 2015 2016

World Industrial Robots Market (2008 – 2016)

Robot types 2013 2014 Growth %

All types 178,132 225,498 27

Articulated 119,837 141,559 18

Cartesian/gantry/linear 32,538 54,987 69

Parallel 2,941 3,433 17

Scara 18,060 23,117 28

All others 4,756 2,402 -49

© ABB| Slide 10

Market research – 2014 IFR DataTop Countries by Robot Shipments (229K Units)

2,944

(36%)

3,657

(14%)

6,215

(32%)

6,912

(27%)

Taiwan Italy Thailand France

2,494

(-9%)

Mexico

26,202

(11%)9%38,67356,217

China Korea Japan USA

20,051

(10%)

Germany

29,297

(17%)

24,721

(16%)

57,096

(56%)

Lähde: International Federation of Robotics

300

(-18%)

1073

(-11%)

Ruotsi Suomi

© ABB| Slide 11

0 10 20 30 40 50 60 70 80 90 100

Others

Food & Bev

Plastics & Rubber

Metal

Electrical/Electronics

Auto OEM + Tiers

Global Shipments by Industry (2013 & 2014)

2013 2014

0 10 20 30 40 50 60 70 80 90 100

Others

Processing

Dispensing

Assembling

Welding

MH/ Mac. Tending

Global Shipments by Application (2013 & 2014)

2013 2014

K UnitsK Units

Global market for industrial robotsCar industry dominant, others growing

Robotiikan kasvu erkanemassa BKT:n kasvun korrelaatiosta

Ihmisten ja robottien yhteistyö mahdollistaa uusia sovelluskohteita

Robottien älykkyys kehittyy konenäön ja sensoriteknologian ansiosta

Lähde: International Federation of Robotics

© ABB| Slide 12

Although industrial robots have been used in factories

for decades, robots currently perform only around

10 percent of manufacturing tasks

By 2025 the portion of tasks performed by robots

will near 25 percent

Output per worker could rise by an estimated

10 to 30 percent

Manufacturing labor costs are projected to be

18 to 33 percent lower

Industrial production in change

Lähde: Boston Consulting Group: The shifting economics of global manufacturing, How a Takeoff in Advanced Robotics Will Power the Next Productivity

Surge

2025

25%

© ABB| Slide 13

Advances in vision sensors, gripping systems, and

information technology are driving this improvement

in price and performance, making robots smarter,

highly networked, and immensely more useful in a

wider range of applications.

As robots become more affordable and easier to

program, also smaller manufacturers will use them on

a wider scale

Industrial production in changeNext productivity step

Lähde: Boston Consulting Group: The shifting economics of global manufacturing, How a Takeoff in Advanced Robotics Will Power the Next Productivity

Surge

© ABB| Slide 14June 3, 2016

Industrial production in changeRobotics already a rational alternative to human labor in many industries based on

pure economies

Manufacturers begin to ramp up

investment in robotics when the

costs of owning and operating a

system reach a 15 percent

discount over the cost of

employing a worker.

Note: employer costs increase

by 3-15% per year

Economics

Lähde: Boston Consulting Group: The shifting economics of global manufacturing, How a Takeoff in Advanced Robotics Will Power the Next Productivity Surge

© ABB| Slide 15

Use of robotics will increase fast.

As robots become more affordable and easier to program,

also smaller manufacturers will use them on a wider scale.

The transportation equipment, computers and

electronics, electrical equipment, and machinery

industries are expected to account for around 75 percent of

advanced robotics installations through 2025.

By 2025, robots should be able to handle 40 to 45

percent of manufacturing tasks in these industries.

Industrial production in changeNext productivity step

2025 40-45 %

Lähde: Boston Consulting Group: The shifting economics of global manufacturing, How a Takeoff in Advanced Robotics Will Power the Next Productivity

Surge

© ABB| Slide 16

What is the role for human in digitalization?New jobs will be created, jobs will change

© ABB| Slide 17June 3, 2016

Key takeawaysDigitalization is a must and an opportunity

Digitalization and robotization is a must and an opportunity

• Robot prices will decrease and performance improve.

• Robots become more affordable, easier to program

and more useful in a wider range of applications.

• Robots will be easier to adapt to changes in

production both in volume and product lines.

• Lifecycle of products will be shorter (electronics)

• Cost of man labour will increase 3-15% per year

• The era of moving factories to capitlalize on low-cost

labor is coming to an end.

• The size of manufacturing plant will be far less

important as an economic driver than it is today.

• Factories will be smaller and will be able to service

local markets with tailored proudcts.

• Manufacturers better stay wide awake – entry level to

the market is decreasing, more rivalry will exist.

Trends Outcome

Lähde: Boston Consulting Group: The shifting economics of global manufacturing, How a Takeoff in Advanced Robotics Will Power the Next Productivity Surge

© ABB| Slide 18

YumiFirst collaborative robot in the world