Slide 1: Q4 2024 results
Q4 2024 results ZURICH, SWITZERLAND | JANUARY 30, 2025 | MORTEN WIEROD, CEO; TIMO IHAMUOTILA, CFO Ending record-high 2024 with strong order growth and positive 2025 outlook © 2025 ABB. All rights reserved.
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: 2024 highlights – a new record year
— 2024 highlights – a new record year Record-high profitability and cash • Book-to-bill >1; Orders +1%1; Revenues +3%1 • Record-high Operational EBITA of $6.0 bn and margin of 18.1% Progress on virtually all headline numbers • Free cashflow $3.9 bn; meeting ambition to improve YoY • New all-time-hig
Slide 4: Q4 2024 selected highlights
— Q4 2024 selected highlights Ending record-high 2024 with strong order growth 02. New brand positioning • "We help industries outrun – leaner and cleaner“ • Articulates what ABB wants to be known for in the minds of our customers • ABB’s new tagline is ‘Engineered to Outrun’. 01. Financial performa
Slide 5: ABB medium voltage UPS HiPerGuard is unique in the market
— ABB medium voltage CAPEX on power infrastructure reduced by up to 30% UPS HiPerGuard is • Lower number of units by using larger blocks at higher voltage for UPS, switchgears, unique in the market backup power generators, battery solutions • Reduced cabling complexity Less Service Medium Voltage UP
Slide 6: Notable orders developments
— Notable orders developments Robust overall trading environment (comparable % YoY, unless otherwise indicated) Record-high quarterly revenues Strongest momentum in Electrification Short-cycle Low double-digit growth; up in Data centers & Utilities 3 out of 4 Business Areas Very strong Orders +7%1 R
Slide 7: Order growth across all regions
— Order growth across all regions Q4 2024 regional, country orders The Americas +7% Europe +9% AMEA +4% USA +1% Germany +18% China -11% Underlying strong; Growth in all business Slight decline in EL and base orders +5% areas MO; steep decline in PA Strong growth in EL and and RA RA, decline in MO an
Slide 8: Profitability drivers
— Profitability drivers Improving Operational EBITA margin Gross Profit Up in 3 out of 4 Business Areas • +8%1 • Gross profit as a % of revenues increased from 34.5% to 35.5%, +100 bps; up in 2 out of 4 BAs Operational EBITA +8% SG&A expenses • +2%1; SG&A expenses as a % of revenues at 17.5%, down f
Slide 9: Q4 2024 Electrification
— Strong order growth in Q4 ends a record performance year Q4 2024 Electrification Orders $3,908 mn Revenues $4,046 mn Operational EBITA $863 mn, +19% YoY 4,500 35% 4,500 25% 1,000 26% 22% 3,500 16% 10% 3,500 14% 10% 500 21.3% 11% 18% 8% 19.7% 4% 2% 2,500 -15% 2,500 -5% 0 16.6% 14% Q1 Q2 Q3 Q4 Q1 Q2
Slide 10: Q4 2024 Motion
— Record revenues achieved surpassing $2 billion Q4 2024 Motion Orders $1,866 mn Revenues $2,038 mn Operational EBITA $383 mn, +20% YoY 2,500 35% 2,500 30% 500 22% 20% 2,000 13% 20% 2,000 20% 10% 250 18% 18.7% 1,500 -3% 5% 1,500 6% 0% 17.4% 2% 16.6% 1,000 0% -10% 1,000 -10% 0 14% Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 11: Q4 2024 Process Automation
— Solid markets – positive book-to-bill for 17th straight quarter Q4 2024 Process Automation Orders $1,823 mn Revenues $1,795 mn Operational EBITA $258 mn, +8% YoY 2,500 60% 2,500 30% 300 16% 35% 2,000 2,000 20% 14.4% 10% 150 14.0% 13% 1,500 11% 1,500 6% 10% 13.2% 5% -15% 4% -1% 10% 1,000 -40% 1,000
Slide 12: Q4 2024 Robotics & Discrete Automation
— Solid Robotics offset by weak Machine Automation; order growth impacted by backlog review Q4 2024 Robotics & Discrete Automation Orders $567 mn Revenues $769 mn Operational EBITA $61 mn, -48% YoY 1,500 65% 1,500 40% 150 20% 40% 1,000 1,000 15% 15% 23% 4% 15% 75 14.0% 13.8% 500 -19% 500 -10% 7.9% 1
Slide 13: Full year cash flow ambition achieved
— — Full year Cash flow ambition achieved Free cash flow in Q4 declined year-on-year following very strong cash collection in first 9 months driven by: Free cash flow Improved operational ($ (+$1,295 mn, -$418 mn YoY) performance mn) 3,937 Offset by less reduction 3,667 in NWC this year versus prior
Slide 14: Best-in-class Return on Capital Employed
— Best-in-class Return on Capital Employed Return on Capital 24 22.9 Employed (ROCE) (22.9%, +180 bps YoY) 22 21.1 20 18 Strong ROCE improvement in 16 2024 well above 16.5 the target range 14.9 14 12 Improvement driven 10 10.3 by higher Operational EBITA compared with 8 2020 2021 2022 2023 2024 last
Slide 15: Reporting changes as from 1Q 2025
— Reporting changes as from 1Q 2025 Closer alignment with Drive operational focus Restated and new numbers to be day-to-day operations and improvement available on ABB IR website during February 2025 01. 02. 03. Gross profit definition New KPI: Return on Gross margin Trade Net Working Capital Capita
Slide 16: Reporting changes as from 1Q 2025
— Reporting changes as from 1Q 2025 Gross profit Gross margin 01. Re-classification of IT costs; moving to cost (Trade NWC) • 02. New KPI: Trade Net Working Capital Introducing additional measure with closer links to business Return on Capital Employed (ROCE) 03. REASON • • Calculation based on 4Q a
Slide 17: Outlook
— Outlook Q1 2025 FY 2025 Revenues Operational EBITA % Revenues Operational EBITA % • Comparable growth in the • Operational EBITA • Comparable growth in the • Operational EBITA mid-single digit range margin to be broadly mid-single digit range margin to improve stable year-on-year • Book-to-bill ab
Slide 18: Q&A
Q&A
Slide 19: Appendix
Appendix
Slide 20: 2025 framework
— 2025 framework Q4 24 Q1 25 20251 2024 2025 $ mn unless otherwise stated framework framework framework Corporate and Other Operational EBITA2 (59) ~(75) ~(300) Finance net 107 40 Effective tax rate4 24.4% ~25% Non-operating items: PPA-related amortization (46) ~(45) ~(180) Capital expenditure (845)
Slide 21: Operational EBITA bridge
— Operational EBITA bridge Operational EBITA margin (%) 16.3% 16.7% Accretion / dilution +0.1 +0.2 +0.1 0 (%) -124 213 -8 1,434 21 -1 1,333 Operational performance Operational EBITA $89 million ($ mn) Q4 2023 Volume/price Operations Items FX Portfolio Q4 2024 impacting changes Comparable revenues 5%
Slide 22: AL ED ED
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