Slide 1: Solid growth: Full-year and Q4 2018 results
— ABB LTD, ZURICH, SWITZERLAND, FEBRUARY 28, 2019 Solid growth Full-year and Q4 2018 results
Slide 2: Important notices
Draft – Privileged and Confidential – Prepared at the request of Counsel — 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 project
Slide 3: 2018 results: growth momentum built, transformation defined
Draft – Privileged and Confidential – Prepared at the request of Counsel — 2018 results1: growth momentum built, transformation defined Orders +8%, revenues +4%, book to bill 1.03x Profitable Growth in all divisions and regions Growth ABB Ability™ recognized as a globally leading offering for Indust
Slide 4: Results summary
Draft – Privileged and Confidential – Prepared at the request of Counsel — Results summary Orders Revenues Operational EBITA Operational EPS Cash flow from margin operating activities FY 2018 $28.6 bn $27.7 bn 10.9%2 $1.33 $2,924 mn5 +8%1 +4%1 -30 bps +8%4 Orders Revenues Operational EBITA Cash flow
Slide 5: Full-year and Q4 2018 orders
Draft – Privileged and Confidential – Prepared at the request of Counsel — Full-year and Q4 2018 orders Order growth in all regions FY 2018 total orders +8% yoy1 Q4 2018 total orders +7% yoy1 Growth by region and key country markets in $ terms1 Growth by region and key country markets in $ terms1 US
Slide 6: Full-year 2018 divisional results
Draft – Privileged and Confidential – Prepared at the request of Counsel — Full-year 2018 divisional results Orders and revenues up in all divisions $ mn and change yoy, unless otherwise stated Electrification Products Industrial Automation Robotics and Motion Orders 11,867 7,631 9,570 Comparable +4
Slide 7: Q4 2018 Electrification Products
Draft – Privileged and Confidential – Prepared at the request of Counsel — Q4 2018 Electrification Products GEIS in line with expectations % $ mn 3,400 15 10 5 3,200 4 3 3 16.1 3,000 7 10 2 16.0 6 6 0% 15.2 2,800 -1 14.7 3 5 2,600 2 13.5 2,400 11.7 0 2,200 2,000 -5 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 1
Slide 8: Q4 2018 Industrial Automation
Draft – Privileged and Confidential – Prepared at the request of Counsel — Q4 2018 Industrial Automation Good order growth % $ mn 20 15 3 14.9 2,000 10 15 14.1 14.1 14.1 7 8 13.4 10 1 1,750 4 0 0 0 0 12.9 5 0% -1 1,500 0 -5 1,250 -10 1,000 -15 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q3 17 Q4 17 Q1 18 Q2
Slide 9: Q4 2018 Robotics and Motion
Draft – Privileged and Confidential – Prepared at the request of Counsel — Q4 2018 Robotics and Motion Strong growth and execution % $ mn 3,000 20 11 15 17.0 8 8 8 16.4 2,500 15 7 16.1 11 11 11 6 15.3 15.0 2,000 10 6 4 0% 13.8 1,500 5 1,000 0 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q3 17 Q4 17 Q1 18 Q2
Slide 10: Group operational EBITA impacts
Draft – Privileged and Confidential – Prepared at the request of Counsel — Group operational EBITA impacts FY 2017 FY 2018 Q4 2017 Q4 2018 Operational EBITA margin 11.2% 10.9% 9.7% 7.9% PG related stranded costs -110 bps -110 bps -110 bps -100 bps Non-core charges -70 bps -100 bps -200 bps -260 bps
Slide 11: Q4 2018 operational EBITA
Draft – Privileged and Confidential – Prepared at the request of Counsel — Q4 2018 operational EBITA Operational EBITA bridge Q4 2017 to Q4 2018 ($ mn) 9.7% op. 7.9% op. EBITA margin EBITA margin +110 -29 -23 +31 -15 -70 -92 +24 -16 671 552 664 594 584 Op. EBITA Net Commodities Net Invest growth, Mi
Slide 12: Q4 2018 net income drivers
Draft – Privileged and Confidential – Prepared at the request of Counsel — Q4 2018 net income drivers Operational EBITA to net income walk Q4 2018 ($ mn) Key non-operating items Restructuring including ~$65 mn accelerated delivery of ABB-OS™ Q4 18 Op. EBITA 584 simplification plans PPA-related amort
Slide 13: 2019 framework
Draft – Privileged and Confidential – Prepared at the request of Counsel — 2019 framework FY 2018 FY 2019 Q1 2019 FY 2018 FY 2019 $ mn unless otherwise stated recast framework framework recast framework Corporate & other operational (1,087) ~(800) ~(200) EBITA Net finance expenses (190) ~(230) Of wh
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Slide 15: Key figures Q4 2018
Draft – Privileged and Confidential – Prepared at the request of Counsel — Key figures Q4 2018 Q4 2018 Q4 2017 Change yoy In $ mn unless stated otherwise $ Local currency Comparable Orders 6,985 6,328 +10% +15% +7% Order backlog (end December) 13,084 12,491 +5% +10% +6% Revenues 7,395 6,804 +9% +13%
Slide 16: Key figures FY 2018
Draft – Privileged and Confidential – Prepared at the request of Counsel — Key figures FY 2018 FY 2018 FY 2017 Change yoy In $ mn unless stated otherwise $ Local currency Comparable Orders 28,590 25,034 +14% +14% +8% Order backlog (end December) 13,084 12,491 +5% +10% +6% Revenues 27,662 25,196 +10%
Slide 17: Total and base orders
Draft – Privileged and Confidential – Prepared at the request of Counsel — Total and base orders By division Q4 2018 Q4 2017 Change yoy In $ mn unless stated otherwise Comparable Total orders 3,139 2,556 +2% Electrification Products 3rd party base orders 3,032 2,394 +3% Total orders 1,866 1,795 +8%
Slide 18: Q4 2018 total and base orders
Draft – Privileged and Confidential – Prepared at the request of Counsel — Q4 2018 total and base orders By region and country Total orders +7% yoy1 Base orders2 +5% yoy1 Growth by region1 Growth by region1 Europe +4% Europe +2% Germany -8% Germany -8% Italy +16% Italy +1% Sweden +8% Sweden +9% AMEA
Slide 19: Order backlog by division
Draft – Privileged and Confidential – Prepared at the request of Counsel — Order backlog by division End December 2018 End December 2017 Change yoy In $ mn unless stated otherwise $ Comparable Electrification Products 4,113 3,098 +33% +7% Industrial Automation 5,148 5,301 -3% +2% Robotics and Motion
Slide 20: Full year 2018 operational EBITA
Draft – Privileged and Confidential – Prepared at the request of Counsel — Full year 2018 operational EBITA Operational EBITA bridge FY 2017 to FY 2018, $ mn 11.2% op. 10.9% op. EBITA margin EBITA margin 2817 3005 +381 -133 -13 -146 -223 +292 -106 +81 +55 671 552 664 $3.0 bn $2.8 bn 594 584 Op. EBIT
Slide 21: Cash flow from operating activities by division
Draft – Privileged and Confidential – Prepared at the request of Counsel — Cash flow from operating activities by division Q4 2018 Q4 2017 Change yoy In $ mn unless stated otherwise Electrification Products 636 590 +8% Industrial Automation 372 356 +4% Robotics and Motion 476 388 +23% Corporate and
Slide 22: Operational EPS analysis
Draft – Privileged and Confidential – Prepared at the request of Counsel — Operational EPS analysis Q4 2018 Q4 2017 Change yoy1 $ mn, except per share date in $ EPS EPS Net income (attributable to ABB) 317 0.15 393 0.18 -19% Operational adjustments: Acquisition-related amortization 75 65 Restructuri
Slide 23: Regional share of total orders and revenues by division
Draft – Privileged and Confidential – Prepared at the request of Counsel — Regional share of total orders and revenues by division Q4 2018, in % terms Electrification Products Industrial Automation Robotics and Motion Orders 28 31 34 33 35 47 37 22 33 Revenues 31 33 36 33 37 44 36 20 30 February 28,
Slide 24: End-customer and product type revenues by division
Draft – Privileged and Confidential – Prepared at the request of Counsel — End-customer and product type revenues by division Q4 2018, in % terms Electrification Products Industrial Automation Robotics and Motion End-customer market 8 17 15 10 21 Orders 35 57 62 75 Product type 10 16 6 32 Orders 44