Slide 1: ABB continues its transformation
ABB LTD, ZURICH, SWITZERLAND, APRIL 20, 2017, Q1 2017 RESULTS ABB continues its transformation Ulrich Spiesshofer, CEO; Timo Ihamuotila, CFO
Slide 2: Important notices
Important notices This presentation includes forward-looking information and statements including statements concerning the outlook for our businesses. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including gl
Slide 3: Q1 2017: key figures
Q1 2017: key figures Orders Base orders Revenues $8.4 bn $7.6 bn $7.9 bn 1 1 1 -3% +2% +3% Cash flow from operating Operational EBITA margin Operational EPS activities 12.1% $0.28 $509 mn 2 3 steady +1% +102% 1On a comparable basis; 2Operational EPS growth is in constant currency (2014 foreign April
Slide 4: Q1 2017: ABB continues its transformation
Q1 2017: ABB continues its transformation Revenues up 3%; book to bill ratio 1.07x Profitable Base orders up 2%; total orders reflect lower large contract awards Growth Active portfolio management: HV cables business divested, B&R acquisition announced April 4 Commercial launch of ABB AbilityTM Op E
Slide 5: Q1 2017: regional order development
Q1 2017: regional order development Base orders up 2% 2017 Q1 total order growth by region 2017 Q1 base order growth2 Change on a comparable basis Change on a comparable basis US +3% China -3% Europe Germany +14% Total +2% Germany -26% India +11% UK +35% Canada -5% France +134% Italy -1% Italy +1% S
Slide 6: Q1 2017: performance by division
Q1 2017: performance by division Key figures $ bn Electrification Electrification Robotics and Robotics and Industrial Industrial Power Power ABBGroup ABB Group Products Motion Automation Grids unless otherwise Products Motion Automation Grids stated Orders 8.4 2.5 2.2 1.7 2.4 Δ Comparable -3% +4% +
Slide 7: Q1 2017: operational EBITA
Q1 2017: operational EBITA Solid operating leverage 12.1% op. 12.1% op. EBITA margin EBITA margin Operational EBITA bridge Q1 2016 to Q1 2017, $ mn +34 +10 -8 -78 +121 -24 -50 -13 951 901 943 Op. EBITA Insurance Op. EBITA Net Net Project Mix Other Forex Divest. Op. EBITA Q1 2016 underlying savings v
Slide 8: Q1 2017: net working capital and cash flow
Q1 2017: net working capital and cash flow Net Working Capital reduction A solid, consistent cash generator NWC as a % of revenues Cash flow from operating activities, $ mn 18 Q1 Q2 17 1600 16 1400 15 1200 14 2014 1000 13 800 1,082 2015 600 12 400 2016 11 2017 200 509 252 10 0 Q4 Q1 Q2 Q3 Q4 2016 20
Slide 9: Next Level Stage 3 – committed to unlocking value
Next Level Stage 3 – committed to unlocking value Four actions ANNOUNCED OCTOBER 4TH, 2016 1 Driving growth in four market-leading entrepreneurial divisions Profitable Growth 2 Quantum leap in digital Relentless Execution 3 Accelerating momentum in operational excellence Business-led Collaboration 4
Slide 10: Acquisition of B&R – leadership in industrial automation
Acquisition of B&R – leadership in industrial automation Closing ABB’s historic gap in machine and factory automation Deal rationale Attractive market segment (CAGR 4-5%) Attractive company (CAGR ~11%) Attractive strategic rationale (shaping global #2 in industrial automation) Attractive financials
Slide 11: B&R – a leader in machine and factory automation
B&R – a leader in machine and factory automation Integrated product, software and solutions portfolio SOLUTIONS SOFTWARE IPC / HMI Visualization software Application store PLC PLC (Programmable Logic Controller) IPC (Industrial PC) FIELD DEVICES SERVO MOTION Automation Studio I/O modules Servo drive
Slide 12: B&R and ABB – leadership in industrial automation
B&R and ABB – leadership in industrial automation Closing ABB’s historic gap in machine and factory automation Sensing & DCS PLC / IPC Industrial Robotics Digital Electrification2 analytics servo motion motion1 platform B&R ABB B&R + ABB Siemens Emerson GE Schneider Fanuc Honeywell Rockwell Yaskawa
Slide 13: B&R and ABB – strong #2 in industrial automation
B&R and ABB – strong #2 in industrial automation Business volume industrial automation (products, software, solutions, services) ~$ 15bn Honeywell B&R Fanuc KUKA Siemens Emerson Yaskawa Yokogawa GE Rockwell Schneider 1 ++B&R ABB ABB April 20, 2017 Slide 13 Source: Management estimate, based on reven
Slide 14: Q1 2017: Power Grids continuing to transform
Q1 2017: Power Grids continuing to transform Power Up well underway Operational EBITA margin, % 14% Shifting the Center of Gravity – Business model change Future range2 12% – HV cables divestment closed Current range 10% – Commercial launch of ABB Ability 10.3 8% 9.3 – Investment in Enbala – a distr
Slide 15: Q1 2017: commercially launched ABB Ability
Q1 2017: commercially launched ABB Ability 180+ ABB Ability solutions customized for our end markets Utilities Industry Transport & Infrastructure solutions solutions solutions ABB Ability Platform (common technologies for device, edge, and cloud) April 20, 2017 Slide 15
Slide 16: Continuing to shift ABB's Center of Gravity
Continuing to shift ABB’s Center of Gravity Strengthening competitiveness Robotics acquisitions Service growth Strategic partnerships ABB Ability B&R Substation EPC partnership Cable divestiture Expansion in high-growth Offshore wind business markets model change Lowering risk Driving organic growth
Slide 17: Q1 2017: summary and outlook
Q1 2017: summary and outlook ABB continues its transformation Q1 2017 results Outlook unchanged Revenues up 3 percent; book to bill ratio 1.07x Mixed short-term picture Base order growth of 2 percent Total orders reflect lower large contract awards Some macroeconomic signs remain positive in US and
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Slide 19: Key figures Q1 2017
Key figures Q1 2017 Q1 17 Q1 16 Change $ mn unless otherwise $ Local currency Comparable indicated Orders 8,403 9,253 -9% -7% -3% Order backlog 23,084 25,978 -11% -7% -2% Revenues 7,854 7,903 -1% +2% +3% Operational EBITA 943 951 -1% +2% as % of operational revenues 12.1% 12.1% steady Income from op
Slide 20: Third party base orders by division
Third party base orders by division Q1 17 Q1 16 % Change Third-party base orders $ mn Comparable Electrification Products 2,365 2,351 +4% Robotics and Motion 1,991 1,803 +13% Industrial Automation 1,445 1,452 +2% Power Grids 1,782 2,016 -10% Corporate and Other 15 21 Total Group 7,598 7,643 +2% Apri
Slide 21: Cash flow from operating activities by division
Cash flow from operating activities by division Q1 17 Q1 16 % Change Cash flow from operating activities $ mn Electrification Products 205 24 +754% Robotics and Motion 254 118 +115% Industrial Automation 110 52 +112% Power Grids 154 26 +492% Corporate and -214 32 Other Total Group 509 252 +102% Apri
Slide 22: Order backlog by division
Order backlog by division Q1 17 Q1 16 % Change Order backlog (end March) $ mn $ Comparable Electrification Products 3,157 3,421 -8% -3% Robotics and Motion 3,956 4,145 -5% 0% Industrial Automation 5,609 6,576 -15% -11% Power Grids 11,812 12,671 -7% -2% Corporate and Other -1,450 -835 Total Group 23,
Slide 23: Operational EPS analysis
Operational EPS analysis Q1 17 Q1 16 1 mn $, except per share data in $ EPS EPS Net income (attributable to ABB) 724 0.34 500 0.23 +48% Operational adjustments: Acquisition–related amortization 59 71 Restructuring and restructuring-related 48 69 expenses2 Non-operational pension cost -7 0 Changes i
Slide 24: Regional share of total orders and revenues by division
Regional share of total orders and revenues by division Q1 2017 Electrification Robotics and Industrial Power Electrification Products Robotics Motionand Industrial Automation Power Grids Products Motion Automation Grids 22% 27% 32% 28% 35% 34% 35% 35% Orders 38% 34% 43% 37% 21% 28% 30% 31% Revenues
Slide 25: Electrification Products Q1 2017
Electrification Products Q1 2017 In $ mn, y-o-y change comparable +4% Orders Total orders improved reflecting improved market demand in the United States, China and Germany. 2,506 2,528 Q1 16 Q1 17 +3% Revenues Revenues grew 3 percent in the quarter. 2,289 2,293 Q1 16 Q1 17 Op. EBITA & 13.5% 14.1% m
Slide 26: Robotics and Motion Q1 2017
Robotics and Motion Q1 2017 In $ mn, y-o-y change comparable +7% Total orders grew 7 percent with third party base orders increasing 13 percent on continued strong Orders demand patterns in robotics and light industry. 2,088 2,177 Q1 16 Q1 17 +5% Revenues improved 5 percent. Revenues 1,873 1,926 Q1
Slide 27: Industrial Automation Q1 2017
Industrial Automation Q1 2017 In $ mn, y-o-y change comparable -6% Total orders reflect lower large orders related to specialty vessels. Orders Improved demand for products, services and software 1,838 1,682 was seen in the positive base order development in the quarter. Q1 16 Q1 17 -5% Revenues dec
Slide 28: Power Grids Q1 2017
Power Grids Q1 2017 In $ mn, y-o-y change comparable Total orders were lower primarily due to the timing of -17% large contract awards. Orders Positive base order development in many markets 2,965 2,379 could not offset soft demand in the Middle East and a tough comparison in China last year. Q1 16
Slide 29: More information available at ABB Investor Relations
More information available at ABB Investor Relations Name Telephone E-Mail Alanna Abrahamson +41 43 317 3804 alanna.abrahamson@ch.abb.com Head of Investor Relations Beat Fueglistaller +41 43 317 4144 beat.fueglistaller@ch.abb.com Ruth Jaeger +41 43 317 3808 ruth.jaeger@ch.abb.com April 20, 2017 Slid
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