ABB Technology Ventures (ATV) is the corporate venture capital arm of ABB Group, focusing on investing in cutting-edge energy technologies to enhance internal innovation and development. Since its inception in 2010, ATV has deployed approximately $100 million across ten investments, positioning itself as a pivotal player in the evolving smart grid and clean technology landscapes. The initiative aims to integrate ABB's vast technological expertise with emerging startups, ensuring a competitive edge in smart technologies and energy efficiency solutions.

1. February 9, 2012
ABB Technology Ventures
Overview
CED CleanLinks Forum
Confidential
© ABB February 10, 2012

2. Table of Contents
ABB Overview
Thoughts on the Smart Grid
Market Backdrop
Technology Ventures
© ABB
February 10, 2012 | Slide 2

3. ABB Overview
$50 billion1 market cap Swiss power + automation company
130,000 employees in 100 countries
$32 billion in revenue (2010)
$5.6 billion2 in cash
Growth via M&A: Ventyx ($1.2B), Baldor ($4.2B), Thomas & Betts
($3.9B; not yet approved)
Formed by 1988 merger of Swiss & Swedish companies
Headquarters in Zürich; U.S. headquarters in Cary, NC
"As one of the world’s leading engineering companies, we help our
customers to use electrical power efficiently, to increase industrial
productivity and to lower environmental impact in a sustainable way.”
1 Market capitalization as of 2/8/2012 2 As of 9/30/2011
© ABB
February 10, 2012 | Slide 3

4. ABB Organization
Five global divisions
Power Automation
Discrete
Power Power Low Voltage Process
Automation
Products Systems Products Automation
and Motion
2010 Revenue $10.2 $6.8 $5.6 $4.6 $7.4 $ billions USD
% Total 29% 20% 16% 13% 21%
~50% ~50%
ABB’s portfolio covers:
Electricals, automation, controls Low-voltage products
and instrumentation for power
generation and industrial Motors and drives
processes Intelligent building systems
Power transmission Robots and robot systems
Distribution solutions
© ABB
February 10, 2012 | Slide 4

5. Ground-breaking and nation-building projects
Pushing the boundaries of technology
Longest underwater
power link
First commercial Most remote offshore
Mine hoist for wave power plant wind farm linked to grid
largest potash mine First platform connected Europe’s largest
to mainland grid thermal solar
power plant
Largest battery
Longest and highest
capacity power link
Largest SVC
installation
Longest conveyor belt
Automation of largest Largest SCADA
alumina plant network
Longest underground
power link
Largest gearless mill
drive (for crushing ore) Largest reverse-
osmosis
desalination plant Power and automation
Substation in world’s
First 600 kV of largest chemical
tallest building
power link cellulose plant
© ABB
20% of ABB revenue from the Americas, 38% from Europe
February 10, 2012 | Slide 5

6. Improving capacity, reliability and efficiency in the grid
A pioneer in smart technologies
Challenge ABB solution
• Deliver 6,400 MW of • Transmission at ultrahigh voltage
China hydropower over 2,000 km
• Minimal losses with direct current
solution
• Increase capacity and • World’s largest installation
U.S. reliability for Texas utility enabling existing lines to carry
more power
• Also enables integration of
renewable energy
• Improve reliability in grid • Network management with real-
India serving state of Karnataka time control
(pop. 53 million) • Key building block for smart grid
© ABB
February 10, 2012 | Slide 6

7. Innovation is key to ABB’s competitive advantage
Leadership built on consistent R&D investment
More than $1 billion invested
annually in R&D1
6,000 scientists and engineers
7 global Corporate Research
Centers (CRCs)
Collaboration with 70 universities
MIT (U.S.), Carnegie Mellon (U.S.), N.C.
State (U.S.), Tsinghua (China), KTH
Royal Institute of Technology (Sweden),
Indian Institute of Science (Bangalore),
ETH (Switzerland), Karlsruhe (Germany)
© ABB
February 10, 2012 | Slide 7 1 Comprises non-order related R&D and order-related development

8. Targeted product development & investment scoping
Example Development Areas: Maintaining the lead in conventional technologies, opening new areas
Still, major innovation occurring out in the marketplace
ABB Technology Ventures (ATV) is a critical strategic tool for finding, assessing,
investing in, and integrating the best of these leading edge energy technologies
Look to Silicon Valley, Washington (ARPA-E etc.), research institutions & labs, as
well as ABB’s global network of entrepreneurs and partners for opportunities
Tight linkages with ABB business units and R&D functions to ensure additional
investment value-add, product pull-through and accelerated R&D
© ABB
February 10, 2012 | Slide 8

9. Table of Contents
ABB Overview
Thoughts on the Smart Grid
Market Backdrop
Technology Ventures
© ABB
February 10, 2012 | Slide 9

10. Integrating OT/IT – Smart grid pillars
Transmission Grid Management
Electric Vehicle Charging
Work and Asset Management
Utility IT Management
Demand Management
Energy Management System Flexible AC Transmission System
Wide Area Management System High Voltage DC Link
Business Intelligence
Energy Storage
Distribution Grid Management
Distribution Management System Volt/Var Efficiency
Outage Management System Self Healing Reliability
OT/IT Integration
Distributed Generation
Demand Response
Asset Health Management
CIS and GIS
Security
Microgrids
Monitoring & Diagnostics Asset Analytics
Sensors & Monitors Dashboards
Meter Management
© ABB Group
February 10, 2012 | Slide 10

11. Integrating OT/IT – Smart grid pillars
Transmission Grid Management
Electric Vehicle Charging
Work and Asset Management
Utility IT Management
Demand Management
Energy Management System Flexible AC Transmission System
Wide Area Management System High Voltage DC Link
Business Intelligence
Energy Storage
Distribution Grid Management
Distribution Management System Volt/Var Efficiency
Outage Management System Self Healing Reliability
OT/IT Integration
Distributed Generation
Demand Response
Asset Health Management
CIS and GIS
Back Office
Security
Microgrids
Business Intelligence
Monitoring & Diagnostics Asset Analytics
Sensors & Monitors Smart Grid Dashboards
2.0
Cloud Computing
Meter Management
© ABB Group
February 10, 2012 | Slide 11

12. NAM Smart Grid – Market Forecasts
Total Market: 2011 vs. 2016
Source – Pike Research
AMI: Meters, components (such as remote disconnect switches & interfaces), communications, and solutions integration.
Distribution Automation: Various technologies including distribution switchgear (reclosers, sectionalizers, switches, and
underground/overhead switches), volt/VAR systems, FDIR, feeder protection & control, and other technologies (fault indicators,
sensors, etc.).
Analytics: Products (and services) that enable the collection, aggregation, inspection, cleaning, interpreting, visualizing, and
modeling of data from smart grid devices (including smart meters). Analytics can be a “standalone” offering, but is frequently
embedded as a value-added feature in a wide range of smart grid related applications (ex. MDM, DMS, OMS, etc.).
Demand Response: Programs, solutions, and technologies that strive to shed, curtail, or eliminate energy usage by utilizing
price signals, incentives, and/or directions from grid operators.
Microgrids: Integrated energy systems consisting of distributed energy resources and multiple electrical loads operating as a
single, autonomous grid either in parallel or “islanded” from the existing utility power grid. Products include DERS, control systems,
switches, and energy storages. Services include consulting and development.
EVSE: Public and private, AC and DC charging infrastructure.
© ABB Group
February 10, 2012 | Slide 12

13. NAM Smart Grid – Market Forecasts
Total Market: 2011 – 2016 (MUSD)
Source – Pike Research
© ABB Group
February 10, 2012 | Slide 13

14. Smart Grid Value – Why smart grid is growing
US Smart Grid Full Potential > $125 billion annually
FDIR Peak Shifting
Monitoring &
Diagnostics
Grid Energy Efficiency
and Conservation
Applications
Customer
Volt/Var Efficiency
Applications
and CVR
Avoided Generation
Capacity Costs
WAMS AMI
© ABB Group
February 10, 2012 | Slide 14

15. Smart Grid Value
Summary of Estimated Cost and
Benefits of Smart Grid
20-Year Total ($billion)
Net Investment
338 – 476
Required
Net Benefit
1,294 – 2,028
Benefit-to-Cost
2.8 – 6.0
Ratio
(Provided by EPRI Report 1022519: Estimating the Cost and
Benefits of the Smart Grid)
© ABB Group
February 10, 2012 | Slide 15

16. Research Triangle Cleantech Cluster
Research Triangle Cleantech Cluster
Triple-helix development model – government, academia, industry
Cleantech cluster – smart grid, renewable generation, electric transportation
Research Triangle Regional Partnership
NC State University Office for Economic Development
Cooperation with NSF FREEDM Center, Duke Energy Envision Center, NC Solar Center,
and Advanced Energy Center on NC State University campus
Regional Smart Grid Taxonomy Report (Marcy Low, Duke University)
"Smart Grid: Core Firms in the Research Triangle Region, NC."
Raleigh Chamber
Wake County Economic Development
Smart Grid brochure http://www.raleigh-wake.org/page/smart-grid
Smart Grid Executive Roundtable
City of Raleigh
NC Department of Commerce
NCSEA and smart grid legislation
Governor’s office – Economic development
Council for Entrepreneurial Development (CED) – Cleanlinks Forum
© ABB Group
February 10, 2012 | Slide 16

17. Smart Grid Leadership
© ABB Group
February 10, 2012 | Slide 17

18. Technology solutions – how are we responding
1. Power electronics
HVDC and FACTS
Inverters for Solar PV
Drives for industrial automation
DC grids for data centers
2. Creating a more flexible, adaptive grid
Distribution grid management – FDIR, Volt/Var Efficiency
Distributed energy resource management
Microgrids
Demand response
Energy storage
Distributed generation
3. OT/IT integration
Back office data processing – MDMS, WAMS, VPP
Business intelligence – Asset Health
Systems integration – Smart Grid Operations Center
© ABB Group
February 10, 2012 | Slide 18

19. CoE – Addressing Distribution Automation
• CoE functions: 1) Demonstration Center, 2)
System Verification Center, 3) sales and proposal
support, 4) project integration and management,
5) program management for accelerated R&D
• Demonstration Center – Ventyx (DMS, DRMS,
Focal Point, Service Suite), MicroSCADA, Relion,
GridShield, GridGuard, GridSync, padmount
switch, capacitors, Industrial Defender security,
Trilliant communications, Ecotality EV charging,
Energate home automation
© ABB Group
February 10, 2012 | Slide 19

20. End-to-End Solution to Drive Asset Performance
© ABB Group
February 10, 2012 | Slide 20

21. DERMS – Integrating OT/IT with virtual power plants
© ABB Group
February 10, 2012 | Slide 21

22. Microgrids
Operate connected to grid or as an
island. Integrate fossil and renewable
generation with energy storage and
demand response.
DOD requirements – supply critical
loads for 30 days without re-supply.
Renewable power to meet 25% of
power needs by 2025.
Data Centers and DC Distribution
Systems:
Brookfield, CT Direct current (DC) power
NAM supply systems for data
center efficiency
Santa Clara, CA Data center automation
NAM and energy efficiency
management software
© ABB Group
February 10, 2012 | Slide 22

23. Energy storage
© ABB Group
February 10, 2012 | Slide 23

24. EV Charging infrastructure
© ABB Group
February 10, 2012 | Slide 24

25. Demand Response – engaging the end-use consumer
Price-Based Demand Response
energy time-of-use day-ahead hourly real-time hourly
efficiency rates pricing (RTP) pricing (RTP)/CPP
power &
load
reduction
delivery
years months day-ahead day-of
system planning operational planning economic scheduling economic dispatch
< 15 <1515min
<15 min
<minmin
dispatch
commitment
capacity/ancillary demand bidding/ emergency interruptible direct load
services programs buyback programs programs control
Source – DOE
Incentive-Based Demand Response
Today residential consumers use energy without regard to the actual supply situation
Power producers plan the supply and deliver without knowing the detailed projected consumption
Effective information exchange and automation of appropriate actions of both parties can optimize the
demand supply equation
For US a 20% reduction potential in peak demand after full deployment of demand response is
estimated – Source FERC 2009
The future electrical system must facilitate an effective dialog
© ABB Group
February 10, 2012 | Slide 25

26. Demand Response – Energy Rates
All electricity is not created
equally – as demand
Price
increases, the cost to generate
and deliver electricity increases
6
Control
5
PCT
4
IHD
kW
WEB
3 Source – OG&E
ALL
2 1 2 3 44 5 5 6 6 7 7 8 8 9 910 11 12 13 14 15 16 17 18 19 20 21 22 23 24
1 22 33 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
10 11 12 13 14 23 24
1 15 16 17 18 19 20 21 22 23 24
© ABB Group
February 10, 2012 | Slide 26

27. Distributed Generation
Connecting solar energy to the
grid – integration with microgrids
and energy storage
Proposal to California Solar
Initiative with PG&E to study
feeders with high concentrations
of PV
Recent investment of
approximately $20 million for a
substantial minority stake in
California-based GreenVolts, a
leading provider of turnkey
concentrating photovoltaic (CPV)
systems
© ABB Group
February 10, 2012 | Slide 27

28. Integrating OT/IT
Developing Smart Grid Control Center
Large-scale smart grid in Stockholm Royal Seaport
7 1 Smart homes/Buildings and Demand Response
Reduced peak load and increased energy efficiency by
demand side participation and home/building automation
6 2 Distributed Energy Systems
Integration of production for local generation PV and Wind
in Home/Building Automation Solution
6 2 Integration and Use of electric vehicles
6 3
Integration of PHEV Charging Infrastructure
3 4 Energy Storage for Network Support and DES
4
Increased stability and power quality
5 Harbor Control Solution
Reduced CO2 emission based High voltage shore
1 connection
6 Smart Primary Substations
4
Increased efficiency and reliability with higher automation
2 level
5
Goals:
1. Royal Seaport is fossil free by 2030
2. CO2 emissions below 1.5 tons per person by 2020
© ABB Group
February 10, 2012 | Slide 28

29. Table of Contents
ABB Overview
Thoughts on the Smart Grid
Market Backdrop
Technology Ventures
© ABB
February 10, 2012 | Slide 29

30. Market Forces
VC funding rebounding
Cleantech investing on the
rise, too, but returns remain
tepid
Severe blowouts
Solyndra
Beacon Power
Evergreen Solar
Stirling
Reduction in government
subsidies Corporates playing
Failings of DOE LPO 1705 more active role
1 2010
© ABB
February 10, 2012 | Slide 30

31. Overall VC Activity
© ABB
February 10, 2012 | Slide 31

32. Exits are Still Skewing to M&A
© ABB
February 10, 2012 | Slide 32

33. Venture Activity by Sector
Up 75% from 2010
Source: PwC MoneyTree
© ABB
February 10, 2012 | Slide 33

34. Corporate VC Activity
© ABB
February 10, 2012 | Slide 34

35. Corporate VC Activity
© ABB
February 10, 2012 | Slide 35

36. Filling the need
© ABB Group - Introduction to ABB Technology Ventures
January 12, 2012 | Slide 36

37. Corporate VC Activity
% of Total VC Deals with Corporate VC Involved
Source: PwC MoneyTree
© ABB
February 10, 2012 | Slide 37

38. Corporate VC Activity
% of VC Deals and Dollars in Cleantech
2010 and 2011
% of Total % of Clean % of Total % of Clean
Total # Deals Deals Tech deals $M Invested Investment Tech $
All VC 7,222 100% $51,698 100%
Cleantech Only 646 9% 100% $8,448 16% 100%
Corporate VC Investment in
142 2% 22% $1,233 2% 15%
Cleantech
Source: PwC MoneyTree
© ABB
February 10, 2012 | Slide 38

39. Corporate VC Activity
Source: PwC MoneyTree
© ABB
February 10, 2012 | Slide 39

40. Why does a big company need a VC group?
Emerging Technologies Emerging Competitors
Smart Grid
Cyber Security
Thousands of Start-Ups
Renewables
Teaching ABB businesses to be paranoid!
Teaching ABB businesses to be paranoid!
© ABB Group - Introduction to ABB Technology Ventures
January 12, 2012 | Slide 40

41. A CVC group augments healthy R&D and M&A
Other CVC Groups
Other Sectors
80 CVCs
- Reese Schroder formed in
2011!
Motorola Solutions Venture Capital
© ABB Group - Introduction to ABB Technology Ventures
January 12, 2012 | Slide 41

42. Table of Contents
ABB Overview
Thoughts on the Smart Grid
Market Backdrop
Technology Ventures
© ABB
February 10, 2012 | Slide 42

43. ATV Overview
ABB Technology Ventures (ATV) is the corporate VC arm of ABB Group
(NYSE: ABB), a $32B1 revenue power & automation technology provider
Legally separate entity formed to profitably invest ABB’s assets, to
increase the pace of internal innovation and to access leading edge
energy technologies
Began investing in 2010
Approx. $100 million deployed
10 investments to date:
8 investments into companies
2 investments as Limited Partners into other VC funds
5 person investment team with broad business and technology due
diligence and portfolio company support from ABB
Technology/market due diligence and portfolio company support from ABB
business units, segment initiatives (ISIs) and corporate research (CRC)
1 2010
© ABB
February 10, 2012 | Slide 43

44. ATV Team
Girish Nadkarni 8 yrs. at ABB; prev. responsible for ABB’s global cost MBA, Harvard
migration program and ran global automotive business LL.M., UVA
Managing Director
for the Robotics Division as Sr. Vice President LL.B., University of Mumbai
Head of ABB Technology
Ventures Prior: EIR, View Group; President & CEO, vSimplify; B.Com, University of Mumbai
Mgr., Corp. Dev., GE; GE Capital; Prudential Capital
Andrew Tang 10+ yrs. VC experience; founding Managing Director at MBA, Wharton
DFJ DragonFund; exits include Broadbus (MOT), MSEE, MIT
Managing Director
Zettacom (IDTI), and NuTool (ASMI) BSEE, UT Austin
Prior: Partner, Infineon Ventures; Credit Suisse First
Boston (investment banking); Intel and Motorola
Grant Allen Formerly VP at Core Capital Partners ($350MM MBA, Wharton
Washington, DC fund focused on enterprise software) BSE, Duke
Vice President
Notable deals: Validus, Valen Tech, OLO (fka GoMobo)
Prior: Microsoft Corp., Liberty Associated Partners (VC),
Dean & Company (mgmt. consulting), 3 start-ups
Kurt Kaltenegger 20 yr. ABB veteran; fmr. head of high voltage circuit PhD, Montanistic U. Leoben
breaker development; global medium voltage products (solid state physics &
Head of Technology
BU technology manager superconductivity)
Director of Research Center in China (Beijing) and CTO MSc, Karl-Franzens
for ABB CN; more than 30 patents University Graz
Mohamed Eissa Prior: United Nations Headquarters NY (Intern at the MSc, New York Institute of
Policy Analysis and Networks Branch, DESA) Technology
Global Trainee,
Energy Futures Design Engineer, ABB-PPMV, Egypt BSc, Cairo University
© ABB
February 10, 2012 | Slide 44

45. Investment Criteria
Targeting 5 new deals per year
$2 - $10 million USD typical initial investment size
Stage and geography agnostic
Typically partner with leading financial VCs and/or other strategic
investors
Investment must meet traditional VC return requirements and have
credible strategic value to ABB parent
Financial
+ Strategic
• 30%+ IRR • Exposure/learning for ABB
• Returns • Hedging bets among competing
commensurate with technologies
early-stage business • Pre-M&A (Cisco approach)
& technology risk • Indirect market support (Intel
approach)
© ABB
February 10, 2012 | Slide 45

46. Adding Value
“ABB is value-added capital.”
Examples of Value Add
• Hired seasoned international business
development FTE
• Found new CEO
• Backstopped working capital line
• Convertible debt with attractive terms
• Introduced to major partners in China
• Brokered purchase of robotics for
manufacturing line at premium pricing
© ABB
February 10, 2012 | Slide 46

47. ATV Investment Focus
ABB Focus: Power and automation technologies to improve utility and
industrial customer performance and to lower environmental impact
ABB Divisions ATV Investment Themes
Power Products
Power Enabling Connectivity +
Power Systems
Generation Technologies Intelligence
Discrete Automation & Motion Renewables Energy Efficiency & Smart Grid
•CPV and other solar Management Tech. •Demand/response
•Wind •Energy storage
Power Electronics
Low Voltage Products •Efficiency/mgmt.
Other •Cyber security
High Speed Motion
•Waste energy
Process Automation •Small scale/ Advanced Materials Sensors, Measurement
distributed gen. & Control Systems
Industry Segment Initiatives Turbine Technology Wireless
Analytics & Diagnostics
Energy
Smart Grid Efficiency Energy Storage For: • Load leveling Industrial Automation
•Electrochemical cells • Spinning reserve
Other Software
•Flow batteries • Frequency regulation
Wind Water Rail • Peak shaving Platforms
•Other
• Renewables integration
Specific Sector Focus • Data Center • Water • Green Lighting & • O&G
• Power conversion • Treatment/desal. Commercial Control
Areas: • Energy efficiency • Monitoring Systems
• Monitoring/analytics • Manipulation
© ABB
February 10, 2012 | Slide 47

48. ATV Investments
Board
Company Location Description Involvement Co-Investors
1 Redwood City, CA Smart grid communications network Observer GE, Investor Growth
USA using self-forming, self-balancing, Capital, VantagePoint,
and self-healing radio mesh MissionPoint, zouk
2 Foxborough, MA Cyber security company with 1 seat Deep River Ventures
USA applications for power systems,
automation, and control systems
3 Santa Clara, CA Data center automation and energy Observer DFJ, Point Judith, Good
USA efficiency management software Energies, Department of
Energy
4 Rehovot, Israel Advanced LIDAR technology for Observer Cedar Fund, Evergreen
remote sensing of wind vectors to Venture Partners, DFJ
optimally align turbines
5 Edinburgh, UK Marine energy conversion using 2 seats Sigma Capital, Royal
Oyster wave power technology Academy of Engineering,
Scottish Enterprise, et al.
6 San Francisco, CA Electric vehicle (EV) fast charging 2 seats Public (NASDAQ: ECTY)
USA technology
7 Brookfield, CT Direct current (DC) power supply 4 seats Oak Hill
USA systems for data center efficiency
8 Fremont, CA Highly efficient, fully integrated 2 seats Oak Investment Partners
USA concentrating photovoltaic (CPV)
solar systems
1 = All amounts in millions unless noted; amounts represent first round of investment only. Deals listed in chronological order of initial ATV investment.
2 = PIPE
© ABB
February 10, 2012 | Slide 48

49. Tips to working with ABB and other CVCs
Plan well & do your homework
Know your goals: acceleration, funding, M&A, etc.
Be patient
BU buy-in is often a good beachhead
Think globally
Have a partnership and future integration plan
© ABB Group - Introduction to ABB Technology Ventures
January 12, 2012 | Slide 49

50. © ABB 110118- ATV Contribution to ABB Growth
February 10, 2012 | Slide 50
© ABB Group 091111- ATV Investment Strategy & Policy
February 10, 2012 | Slide 50