6. ABB: the pioneering technology leader
July 27, 2022 Slide 6
What
(Offering)
For whom
(Customers)
Where
(Geographies)
Utilities Industry Transport & Infrastructure
~35% of revenue ~40% of revenue ~25% of revenue
Globally
Asia, Middle East, Africa 38% Americas 29% Europe 33%
~$34 bn revenue ~100 countries ~132,000 employees
Pioneering technology
Products 58% Systems 24% Services & software 18%
8. The best want to work in a first-class environment
People make the difference
July 27, 2022 Slide 8
ABB is one of the world’s most global companies
ABB attracts top performers due to its inclusive culture
ABB strives for excellence in integrity and
social responsibility
ABB aims for a culture of leadership at every level
9. Committed to sustainability
July 27, 2022 * Terrawatt-hours
Slide 9
430,000m3
Reduction in
water
withdrawals
9%
reduction in GHG
emissions (Scope
1 &2)
700
community projects and
charities supported in 2015
490 TWh*
energy saved by
ABB drives
Safety
“Don’t look the
other way” – 32%
improvement to
employee TRIFR
since 2013
Running the world without consuming the earth
EXAMPLE
Economic success, environmental stewardship, social progress
10. A true global player - team, culture, and presence
Well positioned in attractive markets
July 27, 2022 Slide 10
Emerging markets (46%)
Mature markets (54%)
>3/4 from outside
Switzerland and Sweden
27 nationalities from 6
continents
7 nationalities in the
Executive Committee
Revenue split 2016 Top 200 managers
ABB has a unique global team with local presence everywhere
Europe
33% $11.3 bn
Americas
29% $9.7 bn
AMEA
$12.8 bn
38%
11. Attractive markets: Energy and Fourth Industrial Revolutions
July 27, 2022 Slide 11
The Energy Revolution The Fourth Industrial Revolution
Utilities Industry Transport & Infrastructure
12. Attractive customer dynamics
July 27, 2022 Slide 12
~$7 trillion renewables investment next
25 years
300 HVDC projects planned
$5 bn microgrid market 2025
~50% CAGR stationary energy storage
(GWh)
26 bn things connected by 2020
18% p.a. growth machine-to-machine
industry 2020
2.6 mn industrial robots by 2019 from 1.2
mn today
~30% CAGR cloud computing
infrastructure and platforms
>63% urban population by 2050
Smart home market to triple to ~$36 bn
in 2020
Energy management market to more than
double to $44 bn by 2020
>50% of cars sold in 2030 will be electric
Utilities Industry Transport & Infrastructure
13. ABB uniquely positioned to benefit from these dynamics
July 27, 2022 Slide 13
Our pioneering technology leadership places us
at the heart of the Energy and Fourth Industrial Revolutions
The opportunity is now – and we are ready
14. Four actions
Next Level Stage 3 – committed to unlocking value
July 27, 2022 Slide 14
Profitable
Growth
Relentless
Execution
Business-led
Collaboration
Driving growth in four market-leading entrepreneurial divisions
Accelerating momentum in operational excellence
Strengthening the global ABB brand
Quantum leap in digital
1
2
3
4
Delivering attractive shareholder returns
15. Four actions
Next Level Stage 3 – committed to unlocking value
July 27, 2022 Slide 15
Profitable
Growth
Relentless
Execution
Business-led
Collaboration
Driving growth in four market-leading entrepreneurial divisions
Accelerating momentum in operational excellence
Strengthening the global ABB brand
Quantum leap in digital
1
2
3
4
Delivering attractive shareholder returns
16. All businesses in #1 or 2 positions
Four market-leading entrepreneurial divisions
July 27, 2022
1 Unconsolidated
2 2016 revenues in new structure as of January 2017
3 38% for robotics market
Slide 16
…robotics and intelligent motion solutions
…industrial automation
…a stronger, smarter and greener grid
Schneider
Legrand
Eaton
Siemens
Fanuc
Kuka
Siemens
Emerson
Schneider
Siemens
GE
Hyundai
#2 in electrification
#1 in motion
#2 in robotics
#1 in process control
#1 in T&D
Position Revenues2
$9.9 bn
$7.9 bn
$6.8 bn
$11.0 bn
Top 3
competitors
…electrification of all consumption points
Partner of choice for…
~$140 bn
2 – 4%
~$110 bn
3 – 8%3
~$120 bn
1 – 3%
~$110 bn4
3 – >10%5
Market size1
and growth
Electrification
Products
Robotics and
Motion
Industrial
Automation
Power
Grids
1
4 Consolidated, $140 bn unconsolidated
5 In certain segments
17. Focusing four market-leading entrepreneurial divisions
July 27, 2022 Slide 17
Combine all electrification components
Investment in growth platforms (renewables, EV charging, power quality)
Simplified and focused portfolio
Driving growth in robotics
Driving digitalization across industry sectors
Driving service offering
Focus on high growth, digitalization, “Power Up” transformation
Prune niche non-core & grow with de-risked business model
Electrification
Products
Robotics and
Motion
Industrial
Automation
Power
Grids
1
Portfolio actions:
18. Four actions
Next Level Stage 3 – committed to unlocking value
July 27, 2022 Slide 18
Profitable
Growth
Relentless
Execution
Business-led
Collaboration
Driving growth in four market-leading entrepreneurial divisions
Accelerating momentum in operational excellence
Strengthening the global ABB brand
Quantum leap in digital
1
2
3
4
Delivering attractive shareholder returns
19. Mastering the control room
What does it take to win in digital?
July 27, 2022 Slide 19
From physical to digital differentiation
Maintenance
Operation
Control
Plant / equip. health
Operational data
Measurements
Service action
Set points
Control signals
2
20. Large, global software and digital offering
Today: ABB – a “hidden” digital champion
July 27, 2022 Slide 20
>55% of ABB’s sales from software and digitally enabled devices
50cloud-based services and advanced analytics
>6,000 solutions installed
>70,000 systems installed
>70,000,000 digitallyenableddevicesconnected
2
21. Creating one common offering for digital end-to-end solutions
Quantum leap in digital: ABB AbilityTM
July 27, 2022 Slide 21
Digital ABB offering
across businesses: integrate, penetrate, replicate
Build on customer trust, domain expertise,
deep process knowledge
Open access, intelligent cloud
Closing the loop with connected devices
New end-to-end digital solutions
2
22. Customer value through digital for transmission & distribution
Higher efficiency in operation and maintenance
July 27, 2022 Slide 22
2
Network management center
ABB asset health center
Digital Substation
50% OPEX savings
for transformers and breakers
Up to 50% reduction in outage time
$360,00 / substation / year
savings today through service and software
50% CAPEX savings related to footprint reduction
80% CAPEX savings on copper cables
Up to 40% reduction in installation time
23. Optimizing mining processes in real-time
Customer value through digital for mining
July 27, 2022 Slide 23
Customer
operations center
ABB remote control center
2
30 – 50% energy savings
in mine ventilation
$5 mn / underground mine / year
savings today through services and automation
5% uptime improvement
of mine hoists and gearless mill drives
24. Optimizing planning and production
Customer value through digital for automotive industry
July 27, 2022 Slide 24
25% reduction in installation costs
$5 mn / plant CAPEX savings today through software
25% reduction in unplanned down-time
$19 mn / plant / year OPEX savings today through services
Automotive factory
Customer production planning
Automotive factory
ABB Analytics Hub
2
25. Higher productivity in overall operations and on the vessel
Customer value through digital for marine industry
July 27, 2022 Slide 25
ABB Integrated Operations Center
Vessel
Customer operations center
2
20% savings in administration and coordination
20% savings in maintenance and repairs
Up to 5% fuel savings
$350,000 / average vessel / year savings today through
services and software
26. Making buildings smart with end-to-end solutions
Customer value through digital for buildings
July 27, 2022 Slide 26
Safety / emergency solutions
Audio / visual controls
Temperature / air quality controls
Daylight harvesting / lighting / blind controls
Room access controls
Power management
2
Up to 30% energy savings and 20% lower
maintenance costs in intelligent buildings
27. Four actions
Next Level Stage 3 – committed to unlocking value
July 27, 2022 Slide 27
Profitable
Growth
Relentless
Execution
Business-led
Collaboration
Driving growth in four market-leading entrepreneurial divisions
Accelerating momentum in operational excellence
Strengthening the global ABB brand
Quantum leap in digital
1
2
3
4
Delivering attractive shareholder returns
28. Operational targets of existing programs
Operational momentum increasing
July 27, 2022
1 COS: Cost Of Sales
2 Run-rate cost savings end of 2017
Slide 28
Contributing to 10 – 15% operational earnings per share growth target
3
Opex and supply chain management savings programs – 3-5% of COS1 per year
Net Working Capital program $2 bn reduction by 2017
From initiative-driven optimization to Leading Operating Model
White Collar Productivity target increased by 30% to $1.3 bn2
29. Four actions
Next Level Stage 3 – committed to unlocking value
July 27, 2022 Slide 29
Profitable
Growth
Relentless
Execution
Business-led
Collaboration
Driving growth in four market-leading entrepreneurial divisions
Accelerating momentum in operational excellence
Strengthening the global ABB brand
Quantum leap in digital
1
2
3
4
Delivering attractive shareholder returns
30. Consolidation of 1,000+ brands under one roof
Strengthening global ABB brand
July 27, 2022 Slide 30
Selection
Prerequisite for value creation of digital offering
4
31.
32. ABB Executive Committee as of October 4, 2016
July 27, 2022 Slide 32
Division Leaders
Corporate Officers Regional Leaders
Tarak Mehta
Electrification Products
Sami Atiya
Robotics and Motion
Ulrich Spiesshofer
President and Chief
Executive Officer
Peter Terwiesch
Industrial Automation
Claudio Facchin
Power Grids
Eric Elzvik
Chief Financial
Officer
Jean-Christophe
Deslarzes
Chief Human
Resources Officer
Diane de Saint
Victor
General Counsel
Frank Duggan
Asia, Middle East
and Africa
Greg Scheu
Americas
Bernhard Jucker
Europe
33. ABB at the heart of the Energy and Fourth Industrial Revolutions
July 27, 2022 Slide 33
Our four market-leading businesses,
led by empowered entrepreneurs,
drive sustainable value creation…
…supported by regions and Group ‘oxygen’
34. Hallmarks of ABB
July 27, 2022 Slide 34
“As a pioneering technology leader and global digital champion,
ABB addresses customers’ needs in the Energy and Fourth
Industrial Revolutions through our four market-leading,
entrepreneurial businesses, and our ‘ABB Ability’ digital offering.”
CEO Ulrich Spiesshofer
35. ABB (ABBN: SIX Swiss Ex) is a pioneering technology leader in electrification products, robotics and motion, industrial automation and
power grids, serving customers in utilities, industry and transport & infrastructure globally. Continuing more than a 125-year history of
innovation, ABB today is writing the future of industrial digitalization and driving the Energy and Fourth Industrial Revolutions. ABB
operates in more than 100 countries with about 132,000 employees.
Boilerplate
Hallmarks of ABB
July 27, 2022 Slide 35
