Abb Ltd. · SIX:ABBN
Abb — Q1 2025 Earnings Presentation
24 slides from Abb's earnings presentation, Apr 17, 2025
Slide 1: Q1 2025 Results
ZURICH, SWITZERLAND | APRIL 17, 2025, | MORTEN WIEROD, C EO; TIMO IHAMUOTILA, CFO Q1 2025 RESULTS Strong start to the year; Optimizing value creation with portfolio management
Slide 2: Important notices
— Important notices This presentation includes forward-looking There are numerous risks and uncertainties, Although ABB Ltd believes that its many of which are beyond our control, that expectations reflected in any such information and statements including could cause our actual results to differ fo
Slide 3: Q1 2025 Selected highlights
— — Q1 2025 Selected highlights STRONG START TO THE YEAR Financial performance Acquisitions Organic growth investments New share buyback program • Order growth +5%1; • Completed acquisition of Siemens • Announced plan to invest $120 of up to $1.5 billion Revenue growth +3%1 Wiring Accessories busine
Slide 4: Sustainability highlights 2024
— Sustainability highlights 2024 Reduction of own scope Avoided customer Women in senior 1 and 2 GHG emissions GHG emissions management roles 78% 66Mt 21.3% compared to 2019 baseline avoided throughout the lifetime of products sold in 2024 Lost-time injury frequency rate (LTIFR) Reduce scope 3 CO₂e
Slide 5: Order growth from high comparable; up in 3 out of 4 Business Areas
— Notable orders developments Order growth from high comparable (comparable % YoY, unless otherwise indicated) Up in 3 out of 4 Business Areas Short-cycle Data centers & Utilities Mid single-digit growth, up in all Utilities strong Business Areas Data centers underlying strong but slightly down in t
Slide 6: Growth in all regions – strong local-for-local footprint
— Growth in all regions – strong local-for-local footprint Q1 2025 regional, country orders Europe | Local-for-local ~95% The Americas +11% with the remainder coming from USA +9% ~3% AMEA Up in all Business Areas ~2% Americas Canada +20% Brazil +82% Europe +1% Germany Steep growth in PA and RA; Stro
Slide 7: Operational EBITA margin improvement in 3 out of 4 Business Areas
— Profitability drivers Operational EBITA margin Improvement in 3 out of 4 Business Areas Gross Profit • +11%1 • Gross profit as a % of revenues increased from 38.9% to 41.7%, +280 bps, includes ~+110 bps Operational EBITA +13% support from commodity & FX timing differences 1,597 1,417 1,277 20.2% S
Slide 8: Q1 2025 Electrification
— All-time-high order intake and order backlog; Strong profitability improvement Q1 2025 Electrification Orders $4,394 mn Revenues $3,825 mn Operational EBITA $886 mn, +7% YoY 4,500 25% 4,500 25% 1,000 26% 22% 23.2% 3,500 10% 3,500 16% 10% 500 22.4% 18% 8% 19.0% 5% 6% 6% 2% 2,500 -5% 2,500 -5% 0 14%
Slide 9: Q1 2025 Motion
— Orders down on record high comparable; Strong margin improvement Q1 2025 Motion Orders $2,156 mn Revenues $1,840 mn Operational EBITA $360 mn, +5% YoY 2,500 35% 2,500 30% 500 22% 29% 20% 2,000 20% 2,000 10% 250 18.9% 19.6% 18% 1% 18.5% 1,500 -4% 5% 1,500 8% -6% 0% 3% 1,000 -10% 1,000 -10% 0 14% Q1
Slide 10: Q1 2025 Process Automation
— Record order backlog supporting future revenue generation Q1 2025 Process Automation Orders $2,024 mn Revenues $1,633 mn Operational EBITA $255 mn, +1% YoY 2,500 55% 60% 2,500 30% 300 16% 23% 40% 15.6% 15.8% 2,000 2,000 15% 20% 20% 150 14.2% 13% 0% 1,500 1,500 5% 10% -20% 12% -20% 1,000 -40% 1,000
Slide 11: Q1 2025 Robotics & Discrete Automation
— Both divisions in order growth YoY as well as sequential margin improvement Q1 2025 Robotics & Discrete Automation Orders $799 mn Revenues $744 mn Operational EBITA $74 mn, -35% YoY 1,500 40% 1,500 40% 150 20% 17% 35% 1,000 15% 1,000 15% 15% 75 14.9% 9.9% 500 -20% -10% 500 -10% 13.2% 10% -30% -7%
Slide 12: Cash generation analysis
— — Cash generation analysis Q1 2025 cash flow drivers Solid Free cash flow start to the year Positive cash flow from operating Free cash flow activities in all business areas with ($ ($652 mn, +$101 mn YoY) additional support from real estate mn) gain Year-on-year increase driven by: 3,937 3,667 •
Slide 13: Return on Capital Employed in focus
— Return on Capital Employed in focus Return on Capital 24 Employed (ROCE) 23.0 (23.0%, +250 bps YoY) 22 20.5 20 Improvement driven by higher earnings in 18 3 out of 4 business 17.3 areas 16 Additional support 14 from improvements in Net working capital 12 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q
Slide 14: Extracting full value creation
— Extracting full value creation Robotics division is planned to be spun-off as a separately listed company in the second quarter of 2026 2022 – 2024 1 2024 ROCE % 1 40 Electrification Revenues 7% Separation allows for optimized 35 Op. EBITA 5% 30 New Group governance for ABB and 25 24.3% New Proces
Slide 15: ABB Robotics: Global No. 2 in the robotics industry
— ABB Robotics Global No. 2 in the robotics industry ∼2.3bn1 revenues Broad and technology Double-digit Op. EBITA margin leading customer in most quarters since Q1 2019 offering • Broadest mechatronics portfolio - 16% • ~2/3* direct sales industrial robots, cobots, Autonomous Mobile Robots 14% • Gro
Slide 16: ABB Robotics - a strong performer in its industry
ABB Robotics - a strong performer in its industry Well invested • R&D 1, 2 spend drives • CAPEX 1 of ∼ $200m product innovation in 2019-2024 600bps o 2024 launch of unique o State of the art intelligent robot control gross margin 1, 2 Good platform OmniCoreTM manufacturing sites in China and US impr
Slide 17: ABB reshaped portfolio
Process Automation has competitive advantage by being part of ABB, making ABB it the only supplier with direct access to both electrification and motion products RESHAPED and solutions PORTFOLIO Electrification and Motion benefit from Process Automation acting as a brand Three business areas with an
Slide 18: ABB reshaped portfolio
— ABB reshaped portfolio Higher growth rate in Higher gross margin in Higher Operational EBITA margin reshaped portfolio reshaped portfolio in going-forward-portfolio Comparable revenue growth1 Gross margin*, 1 Op. EBITA margin1 15% 40% 19% 18.6% 39.3% 18% 18.1% 12% 38.9% 17% 9% 38% 7% 16% 6% 6% 15%
Slide 19: Outlook
— Outlook Acknowledging the increased uncertainty for the global business environment Q2 2025 FY 2025 Revenues Operational EBITA % Revenues Operational EBITA % • Comparable growth in the • Operational EBITA • Comparable growth • Operational EBITA margin to mid-single digit range margin to improve in
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: 2025 framework
— 2025 framework Q1 25 Q2 25 20251 3M 25 2025 $ mn unless otherwise stated framework framework framework ~(200) Corporate and Other Operational EBITA2 69 ~(75) Finance net 7 40 From ~(300) Effective tax rate4 29.5% ~25% Non-operating items: PPA-related amortization (45) ~(55) ~(180) Capital expendit
Slide 23: Operational EBITA bridge
— Operational EBITA bridge Operational EBITA margin (%) 17.9% 20.2% Accretion / dilution +0.6 +1.7 0 0 (%) -37 1,597 -5 134 -1 89 1,417 Operational performance Operational EBITA $88 million ($ mn) Q1 2024 Volume/price Operations Items FX Portfolio Q1 2025 impacting changes Comparable revenues 3% com
Slide 24: AL ED ED
AL ED ED FADD ED