You are on page 1of 16

CAPITAL MARKETS DAY, OCTOBER 4, 2016

ABB Division Fact Sheets



ABB financial summary
Revenues by division 20151 Revenues by region 2015 Revenues and Op. EBITA margin % FCF and percentage of net income
% of total revenues % of total revenues US$ bn and % US$ bn and %
19%
31% 37% 33% 39.3 41.8 2.9 3.0
39.8 2.6 2.6
45% 35.5 2.6
55% 156%
27% 12.1% 12.3%
11.2% 11.8% 110%
23% 94%
AMEA 30% 82% 94%
PG EP Europe Mature markets
RM IA Americas Emerging markets 2012 2013 2014 2015 2011 2012 2013 2014 2015

Revenues by end market 2015 Employees by region 2015 Service revenue percentage Capital allocation 2011 – 15
% of total revenues, estimated % of total workforce % of total revenues3 US$ billions and % of total deployed
22%
32% 17% 35%
45% 16%
15% 15% ~$25 bn
27 32 9%

41
AMEA 23% 34%
Europe Acquisitions Share buyback
2012 2013 2014 2015
Americas Dividend Capex

Revenues by product type 2015 Dividend per share Operational EPS growth4
Transmission Utilities
Distribution Industry
% of total revenues, estimated CHF
Renewable gen. Transport & Infr. 17%
Conventional gen.
+5% 1.35
1.28
Mining & metal 0.68 0.70 0.72 0.74
49% 51% 0.60 0.65
O & G, Chemical
24% 59% 0.51
Other Industry
Buildings
Marine Products Digitally enabled2
Rail Systems Non-digitally enabled
2009 2010 2011 2012 2013 2014 2015 2014 2015
Other Transport & Infrastructure Service and software

©ABB
October 04, 2016 Slide 2 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

Electrification Products1
Partner of choice for electrification of all consumption points

Market
Key figures
~$140 bn market2 in 2015 New structure
Current structure
pro-forma1,4
Offering
Broadest global portfolio of low- and medium-voltage Orders and revenues 10.9 10.6
products and solutions for intelligent protection and 0%3 10.5 10.2
$ bn 9.8 9.5
connection 0%3
Pre-engineered, packaged solutions and services
tailored to customers’ needs
Main competitors
16.4%
Op. EBITA 16.4%
14.7%
$ bn, margin % 1.7
1.6 1.5
Position of strength 1.3
Complete portfolio for electrification of “the site”
Strong distributor relationships
Geographically balanced production and R&D 42.5 43.6
41.6
footprint Employees
Strong growth segments renewables, data centers Thousand
Innovative products and solutions
Intelligent solutions for smarter buildings 2014 2015 2015

©ABB Orders Revenues


October 04, 2016 Slide 3 1New divisional structure as of January 2017; 2Unconsolidated 3Comparable growth; 4Portfolio changes

Electrification Products1
Business breakdown and key end-market growth trends

Channels Customers Geography


Approximation, % Approximation, % Approximation, %

18
27
40 18 38
12 49 46
33 54

12
11 7 35
Distribution
Distributors Renewable gen. Utilities AMEA Emerging markets
Internal Mining & Metal Industry Europe Mature markets
Utilities O&G, Chemical Transport & Infr. Americas
EPC Other Industry
OEM Buildings
Panel builders Other Transport & Infrastructure

Digitalization: Buildings: Emerging markets:


Connectivity and communication, digital Up globally, shift to smart buildings Slowdown in China; uncertainty in Turkey
models and configurators Industry: Moderate growth in Saudi Arabia & Russia
Service / software: Solid growth from digitalization as well Strong growth India
Condition monitoring and diagnostics, as safety Mature markets:
cloud connection and cyber security, Renewables: Pockets of growth USA & Canada
collect, provide and process data Double digit growth Growth slowdown in Germany, Italy &
Finland; uncertainty in UK

©ABB
October 04, 2016 Slide 4 1All comments and numbers pertain to the new divisional structure as of January 2017

Electrification Products1
Partner of choice for electrification of all consumption points

Electrical distribution Automation/Control Installation Building solutions

LV/MV switchgear MV grid automation Enclosures EV charging


Distribution boards
Main offerings

Motor control centers DIN-rail products Wiring accessories


Circuit breakers
Intelligent breakers Wire and cable mgmt. Intelligent building /
Solar inverters, UPS
smart home products
Competitive
position

MV #1 Electrification #2 EV charging #1
Major competitors

©ABB
October 04, 2016 Slide 5 1Reflects portfolio changes as of January 2017

Robotics and Motion1
Partner of choice for robotics and intelligent motion solutions

Market
Key figures
~$100 bn in 20152 Current structure New structure
Discrete Automation & Motion pro-forma1,4
Offering 10.6
Orders and revenues 10.1
Robotics and intelligent motion solutions $ bn -5%3
9.210.9
9.1 8.4
-2%3 8.3

Main competitors
15.7%

Op. EBITA 1.6


13.9% 15.7%
$ bn, margin %
1.3 1.3
Position of strength
Technology leader in fast-growing robotics market
Broadest robotics portfolio and large installed base
31.7 30.3
Largest motion player with unmatched global reach 27.9
Employees
At the cutting edge of power electronics and Thousand
quality, renewables, and electric transportation
2014 2015 2015

©ABB Orders Revenues


October 04, 2016 Slide 6 1New divisional structure as of January 2017; 2Unconsolidated; 3Comparable growth; 4 Portfolio changes

Robotics and Motion1
Business breakdown and key end-market growth trends

Offering Customers Geography


Approximation, % Approximation, % Approximation, %

12
34 30
15
20 12
36
64
68
73
36

Products Renewable gen. Rail Utilities AMEA Emerging markets


Systems Conventional gen. Buildings Industry Europe Mature markets
Service and software O&G, Chemical Marine Transport & Infr. Americas
Automotive
Mining & Metal
F&B
Other Industry

Digitalization: will continue gaining Automotive: growing specifically in Emerging markets:


relevance and will drive customer emerging markets like Asia China and India driving global growth
expectations 3C & semicon: robotization of Mature markets:
Service / software: growing reliance manufacturing processes US growing
on data management and statistical Food & Beverage: population & Europe mixed; impact of Brexit still
productivity income growth; lifestyle changes unknown

©ABB
October 04, 2016 Slide 7 1All comments and numbers pertain to the new divisional structure as of January 2017

Robotics and Motion1
Partner of choice for robotics and intelligent motion solutions

Robotics Drives Motors & Generators

Industrial robots, software and LV AC drives up to 5600 kW LV motors to 1’200 kW


IoTSP connected services MV drives to 100 MW HV motors to 80 MW
Main offerings

Robotic applications and systems Wind converters Power generators to 80 MW


for diverse industries Digital services and software tools Mechanical power transmission
Propulsion converters
Competitive
position

#2 #1 #1
Major competitors

©ABB
October 04, 2016 Slide 8 1Reflects portfolio changes as of January 2017

Industrial Automation1
Partner of choice for industrial automation

Market
Key figures
~$120 bn market in 20152 Current structure New structure
Process Automation pro-forma1,4
Offering Orders and revenues
Control systems, software, measurement & analytics $ bn 10.9
9.2
Industry-specific power & automation solutions, 8.6 -9%3
products (e.g. electric ship propulsion) and services 7.3 7.2 -5%3 7.5 7.4

Main competitors

11.9% 12.0%
Op. EBITA
$ bn, margin % 1.0 11.8% 0.9
0.9
Position of strength
Integrated control product, system and service
offering
Advanced process control & optimization software 25.8 24.8 25.2
and know-how
Employees
Integrated power and automation solutions
Largest installed base, advanced services
2014 2015 2015
Deep domain and process expertise

©ABB Orders Revenues


October 04, 2016 Slide 9 1New divisional structure as of January 2017; 2Unconsolidated 3Comparable growth; 4Portfolio changes

Industrial Automation1
Business breakdown and key end-market growth trends

Offering Customers Geography


Approximation, % Approximation, % Approximation, %

23
35 37
28 13 43
50 50
59

34
28

Products Conventional generation Utilities AMEA Emerging markets


Systems O&G, Chemical Industry Europe Mature markets
Service and software Mining & Metals Transport & Infr. Americas
Other Industry
Marine
Other Transport & Infrastructure

Digitalization: growth opportunity Chemicals: positive fundamentals Emerging markets: penetration of


building on largest installed base in basic automation still rising, aging
F&B, pharma & discrete industries:
power generation and process population growth, increasing disposable installed base provides upgrade
industry income opportunities
Services and software: supporting Mature markets: leveraging digital to
Cruise ships: strong demand from Europe
customers remotely with advanced achieve next level of productivity,
& Asia
services and optimization energy efficiency and safety

©ABB
October 04, 2016 Slide 10 1All comments and numbers pertain to the new divisional structure as of January 2017

Industrial Automation
Partner of choice for industrial automation

Industry-specific Control systems & Measurement &


Propulsion
solutions & services software analytics
Integrated electrification & Process and discrete Pressure, temperature, Electric propulsion systems
automation solutions control (DCS, PLC) flow, level, force for ships
Main offerings

Systems and advanced Adv. process control & measurement Large turbochargers
services manufacturing execution Analyzers >500kW
systems
Competitive
position

Process industries #1-5 DCS #1; PLC top 10 Measurement & Electric marine propulsion #1
Marine #1 APC/MES software #1/2 analytics top 3-51 Turbocharging #1
Major competitors

©ABB
October 04, 2016 Slide 11 1Leader in Force Measurement

Power Grids
Partner of choice for a stronger, smarter and greener grid

Market
Key figures
~$110 bn market in 20151

Orders and revenues 12.8 12.5 8%2


12.2 11.6
Offering $ bn 2%2
Broadest offering of products systems, services
and software for power transmission and
distribution

Main competitors

Op. EBITA 7.5%


4.7%
$ bn, margin % 0.9
0.6

Position of strength
Market and technology leader
Unrivalled application know-how
Truly global player with largest installed base 38.1 37.2
Employees
Leading software and automation solutions
Industry leading margins
2014 2015

©ABB Orders Revenues


October 04, 2016 Slide 12 1Consolidated (unconsolidated ~$140 bn market); 2Comparable growth;

Power Grids
Business breakdown and trends

Offering1 Customers1 Geography1


Approximation, % Approximation, % Approximation, %

34 32
14
8 38
52 53 47
78

14
30
Transmission
Products Distribution Utilities AMEA Emerging markets
Systems Renewable generation Industry Europe Mature markets
Service and software Conventional generation Transport & Infr. Americas
Industry
Rail
Other Transport & Infrastructure

Digital equipment: real time supervision, higher Transmission & distribution: increasing Emerging markets: Grid build out, renewable
reliability, maintenance optimization complexity, more take-out and feed-in points, integration, interconnections, electrification
interconnections, aging infrastructure, physical of society
Digitally enhanced systems: faster installation,
cyber security
more configurable power quality, higher Mature markets: Renewable integration,
Integrating renewables: long distance interconnections, aging infrastructure, power
penetration of renewables, managing less
transmission, storage, bi-directional flow, power quality, security of supply, electrification of
predictable supply & demand
stability, microgrids transport
Software & operations: more real-time control, Connecting consumers: rail electrification, data
smart asset mgmt., planning optimization centers, EVs, industry

©ABB
October 04, 2016 Slide 13 1Percent of division revenue 2015;

Power Grids
Partner of choice for a stronger, smarter and greener grid

Products & components System & automation Consultancy, services & software

Distribution transformers Substations Consulting, planning services


Main offerings

Power transformers Grid automation Network control, operation services


HV gas / air insulated switchgear FACTS Asset & workforce mgmt.
Power quality components HVDC Asset performance mgmt.
Microgrids Maintenance services
Competitive
position

Automation
#1 #1 #1
HVDC
Major competitors

©ABB
October 04, 2016 Slide 14

Contact us

ABB Ltd
Investor Relations
P.O. Box 8131
CH-8050 Zürich
Phone: +41 (0) 43 317 71 11
E-mail: investor.relations@ch.abb.com
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

©ABB
October 04, 2016 Slide 15

©ABB
October 04, 2016 Slide 16

You might also like