Slide 1: Q2 2024 results: Solid demand; record-high Operational EBITA margin
— ZURICH, SWITZERLAND | JULY 18, 2024 | BJÖRN ROSENGREN, CEO; TIMO IHAMUOTILA, CFO Q2 2024 results Solid demand; record-high Operational EBITA 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: Q2 2024 highlights
01. Financial performance Orders flat1 yoy, Revenue +4%1; Op. EBITA +10% year-on-year; Op. EBITA margin 19.0% +150 bps; to some extent supported by non-repeats Free cash flow $918 mn, +$312 mn YoY 02. Sustainability ABB’s scope 1, 2 and 3 targets for 2030 and 2050 were approved by the Science Based
Slide 4: Short-cycle order growth returns
— Orders 0%1 Short-cycle order growth returns 8,807 8,667 8,435 Q2 2024 results 20 Notable orders developments (comparable % YoY, unless otherwise indicated) 2 0 Short-cycle Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Low-single digit growth driven by Electrification and Motion 22 22 22 23 23 23 23 24 24 Orders ($ m
Slide 5: Declining in Americas and Europe, growing in AMEA
— Declining in Americas and Europe, growing in AMEA Q2 2024 regional, country orders The Americas -4% USA Impacted by timing of large orders in last year period. Underlying strong. Steep -1% growth in RA; strong growth in EL; decline in PA; strong decline in MO Canada +2% Mexico -13% Europe -4% Germ
Slide 6: Record-high Operational EBITA margin of 19% reported
— Record-high Operational EBITA margin of 19% reported Profitability drivers Operational EBITA +10% Gross Profit 1’564 1’425 +12%1 19.0 Gross profit as a % of revenues increased from 35.4% to 38.5%; 1’136 expansion in 3 out of 4 business areas 17.5 SG&A expenses 15.5 +4%1 SG&A expense as a % of reve
Slide 7: Record-high revenues, earnings and margin: Electrification
— Record-high revenues, earnings and margin Q2 2024 Electrification 4,500 35 4,500 25 900 26 23.2 17 21.1 11 22 7 9 3,500 3 10 3,500 7 10 450 17.6 18 2,500 -15 2,500 -5 0 14 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 22 22 22 23 23 23 23 24 24 22 22 22 23 23 23
Slide 8: Short-cycle order growth and strong profitability: Motion
— Short-cycle order growth and strong profitability Q2 2024 Motion 2,500 26 35 2,500 22 30 500 20.4 22 19.9 20 2,000 20 2,000 3 10 250 16.4 18 3 1,500 5 1,500 -1 -4 0 1,000 -10 1,000 -10 0 14 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 22 22 22 23 23 23 23 24 24
Slide 9: Continued strong execution: Process Automation
— Continued strong execution Q2 2024 Process Automation 15.4 15.5 2’500 60 2’500 30 300 16 14.3 25 35 19 2’000 6 10 2’000 20 10 12 150 13 1’500 1’500 7 10 -15 1’000 -40 1’000 0 0 10 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 22 22 22 23 23 23 23 24 24 22 22 22 2
Slide 10: Robotics orders improving; machine automation under pressure
— Robotics orders improving; machine automation under pressure Q2 2024 Robotics & Discrete Automation 1’500 65 1’500 150 20 27 35 15.3 1’000 23 1’000 15 11.1 15 10 75 500 -17 500 -5 8.2 10 -22 -8 0 -35 0 -15 0 5 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 22 22 2
Slide 11: Operational EBITA bridge
— Operational EBITA bridge Operational EBITA margin (%) 17.5% 19.0% Accretion / dilution +1.2 +0.1 +0.1 +0.1 (%) -31 -10 15 1,564 -13 178 1,425 Operational performance Operational EBITA $147 million ($ mn) Q2 2023 Volume/price Operations Items FX Portfolio Q2 2024 impacting changes Comparable revenu
Slide 12: Strong cash delivery
— Strong cash delivery Q2 2024 cash flow drivers Free cash flow (+$918 mn, +$312 mn YoY) ($ mn) 3’667 Improved cash flow from operating activities in all business areas driven by: • Lower build up of Net working capital; all key 1’713 components of NWC improved versus the prior year 1’469 • Slight i
Slide 13: Outlook
— Outlook Q3 2024 FY 2024 Revenues Revenues Sequentially higher growth Comparable revenue growth rate in comparable to be about 5 percent; revenues Book-to-bill above 1 Operational EBITA % Operational EBITA % Operational EBITA margin Operational EBITA margin around 18.5% or slightly to be about 18%
Slide 14: Q&A
Q&A
Slide 15: Appendix
— Appendix
Slide 16: 2024 framework
— 2024 framework Q2 24 Q3 24 20241 6M 24 2024 $ mn unless otherwise stated framework framework framework ~(200) ~75 Corporate and Other Operational EBITA2 20 ~(75) Net finance expenses 53 from ~(300) from ~(50) ~24%4 Effective tax rate 24.5% Non-operating items: from ~25% PPA-related amortization (5
Slide 17: AL GD ED
AL GD ED FADD ED