Slide 1: Q3 2024 results
— ZURICH, SWITZERLAND | OCTOBER 17, 2024 | MORTEN WIEROD, CEO; TIMO IHAMUOTILA, CFO Q3 2024 results Order growth and record level margin
Slide 2: Important notices
— Important notices This presentation includes forward-looking There are numerous risks and uncertainties, many and reconciliations between these measures information and statements including of which are beyond our control, that could cause and their US GAAP counterparts can be found our actual res
Slide 3: Q3 2024 Selected highlights
— Q3 2024 Selected highlights Order growth and record level margin 01. Financial performance Order growth +2%1, revenues +2%1 +160 bps Op. EBITA margin improvement to 19.0% CFO of $1,345 mn, -$6mn YoY (up $745 mn YTD), following strong cash collection in H1 and high comparable 02. Acquisitions Födis
Slide 4: Order growth and positive book-to-bill
— Orders +2%1 Order growth and positive book-to-bill 8,188 8,052 8,193 Strength in Electrification, weakness in Machine Automation and E-mobility 16 Notable orders developments (comparable % YoY, unless otherwise indicated) 2 2 Short-cycle High-single digit growth driven by Electrification Q3 Q4 Q1
Slide 5: ABB has a broad portfolio offering for Data Centers
— Data centers are power hungry ABB has a broad portfolio offering for Data Centers AI data center racks consume 10x more power than traditional racks Helping our customers with reliable and efficient power Increased power needs, means more Medium Voltage (MV) solutions We are the market leader in M
Slide 6: Growth in Europe and AMEA; USA down on high large order comparable
— Growth in Europe and AMEA; USA down on high large order comparable Q3 2024 regional, country orders The Americas -6% USA Underlying strong; base orders +12%. -7% Growth in EL, MO and RA; strong decline in PA Canada -11% Mexico -4% Europe +6% Germany Steep growth in EL, PA and RA; steep +33% declin
Slide 7: Operational EBITA margin of 19%
— Operational EBITA margin of 19% Improvements in 3 out 4 Business Areas Profitability drivers Operational EBITA +12% Gross Profit 1’553 1’392 +13%1 1’231 19.0 Gross profit as a % of revenues increased from 34.7% to 38.2%; expansion in 3 out of 4 business areas 17.4 16.6 SG&A expenses +5%1 SG&A expe
Slide 8: Strong execution and market resulting in another record quarter
— Strong execution and market resulting in another record quarter Q3 2024 Electrification 4,500 35 4,500 20 25 1’000 24.1 26 21 20.8 22 10 10 6 18.7 3,500 1 10 3,500 10 500 18 2,500 -15 2,500 -5 0 14 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 22 22 23 23 23 23 2
Slide 9: Structural improvements in long-cycle businesses support record margin
— Structural improvements in long-cycle businesses support record margin Q3 2024 Motion 2,500 35 2,500 23 30 500 20.7 22 24 19.8 20 2,000 20 2,000 11 17.8 10 250 18 1 1,500 -4 5 1,500 -7 0 1,000 -10 1,000 -10 0 14 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 22 22
Slide 10: Robust underlying markets and focused execution
— Robust underlying markets and focused execution Q3 2024 Process Automation 2’500 60 2’500 30 300 15.3 15.2 16 38 23 14.6 35 2’000 2’000 20 3 -5 10 150 13 1’500 1’500 6 6 10 -15 1’000 -40 1’000 0 0 10 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 22 22 23 23 23 23
Slide 11: Robotics holding steady; Machine Automation challenging
— Robotics holding steady; Machine Automation challenging Q3 2024 Robotics & Discrete Automation 1’500 40 1’500 40 150 20 13 14.7 7 9 1’000 15 1’000 15 12.8 15 -4 75 500 -10 500 -20 -10 8.3 10 -27 0 -35 0 -35 0 5 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 22 22
Slide 12: Operational EBITA bridge
— Operational EBITA bridge Operational EBITA margin (%) 17.4% 19.0% Accretion / dilution +1.8 0 -0.2 0 (%) 4 -13 1,553 0 76 94 1,392 Operational performance Operational EBITA $170 million ($ mn) Q3 2023 Volume/price Operations Items FX Portfolio Q3 2024 impacting changes Comparable revenues comparab
Slide 13: Cash flow ambition on track
— Cash flow ambition on track Q3 2024 cash flow drivers Free cash flow (+$1,173 mn, -$13 mn YoY) ($ mn) 3’667 Free cash flow remained broadly stable year-on-year 2’642 following very strong cash collection in H1 driven by: • Improved operational performance 1’954 1’713 • Offset by less reduction in
Slide 14: Outlook Q4 2024 and FY 2024
— Outlook Q4 2024 FY 2024 Revenues Revenues Low to mid single-digit Comparable revenue growth comparable growth; to be below 5 percent; Book-to-bill below 1 Book-to-bill above 1 Operational EBITA % Operational EBITA % Operational EBITA margin Operational EBITA margin sequentially lower to be slightl
Slide 15: Q&A
Q&A
Slide 16: Appendix
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Slide 17: 2024 framework
— 2024 framework Q3 24 Q4 24 20241 9M 24 2024 $ mn unless otherwise stated framework framework framework ~(170) Corporate and Other Operational EBITA2 (48) ~(75) Finance net 55 ~75 From ~(200) Effective tax rate 26.1% ~24%4 Non-operating items: ~(200) ~(850) PPA-related amortization (44) ~(45) Capit
Slide 18: AL GP ED
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