Slide 1: Resilient growth – Q1 2019 results
— ABB LTD, ZURICH, SWITZERLAND, APRIL 17, 2019 Resilient growth Q1 2019 results Peter Voser, Chairman and interim CEO and Timo Ihamuotila, CFO
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: Today's leadership announcement
Draft – Privileged and Confidential – Prepared at the request of Counsel — Today’s leadership announcement Selection process for new CEO to commence Chairman to fulfill dual role as interim CEO until new CEO in role Transformation of ABB to continue with full support of the Board April Q1 2019 16, r
Slide 4: The new ABB investment proposition
Draft – Privileged and Confidential – Prepared at the request of Counsel — The new ABB investment proposition Medium-term financial framework Uniquely positioned portfolio focused on digital industries Attractive 3 – 6% p.a. Four leading entrepreneurial businesses in attractive growth markets growth
Slide 5: Q1 2019 resilient growth
Draft – Privileged and Confidential – Prepared at the request of Counsel — Q1 2019 resilient growth Financial summary Orders +3% 1 Revenues +4% 1 Operational EBITA Operational EPS Base orders +6% 1 margin -50 bps 2 $0.31 +5% 3 PG (% or bps) Q1 18 Q1 19 PG sale sale impact impact Op. EBITA $6.85 bn 1
Slide 6: Q1 2019 orders
Draft – Privileged and Confidential – Prepared at the request of Counsel — Q1 2019 orders Base order growth in all regions Total orders +3%1 Third-party base orders +6%1 Growth by region and key country markets in $ terms1 Growth by region and key country markets in $ terms1 USA +7% China +6% USA +4
Slide 7: Q1 2019 Electrification Products
Draft – Privileged and Confidential – Prepared at the request of Counsel — Q1 2019 Electrification Products Strong order and revenue growth $ mn % 4,000 10 15 5 4 16.0 6 6 6 10 3 3 15.2 3,000 2 14.7 3 2 5 0% -1 13.5 2,000 0 12.4 11.7 -5 1,000 -10 0 -15 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q4 17 Q1 18
Slide 8: Q1 2019 Industrial Automation
Draft – Privileged and Confidential – Prepared at the request of Counsel — Q1 2019 Industrial Automation Continued base order momentum $ mn % 14.9 14.1 14.1 14.1 2,500 15 20 15 3 12.9 13.0 2,000 7 8 10 0 0 0 0 0 4 0% 1,500 5 -1 1,000 -5 0 -5 500 -10 0 -15 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q4 17 Q1
Slide 9: Q1 2019 Robotics and Motion
Draft – Privileged and Confidential – Prepared at the request of Counsel — Q1 2019 Robotics and Motion Solid execution $ mn % 3,000 15 20 11 17.0 11 11 11 15 16.1 15.3 15.0 15.1 6 5 10 8 8 2,000 7 7 13.8 5 6 0 1,000 -5 -10 0% 0 -15 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1
Slide 10: Q1 2019 operational EBITA
Draft – Privileged and Confidential – Prepared at the request of Counsel — Q1 2019 operational EBITA Operational EBITA bridge Q1 2018 to Q1 2019 ($ mn) 11.7% op. 11.2% op. EBITA margin EBITA margin +79 -29 -39 +91 +3 -45 +10 -56 671 552 766 752 Op. EBITA Net Commodities Net Invest growth, Mix Other
Slide 11: Q1 2019 net income drivers
Draft – Privileged and Confidential – Prepared at the request of Counsel — Q1 2019 net income drivers Operational EBITA to net income walk Q1 2019 ($ mn) Key non-operating items Q1 19 Op. EBITA 766 Restructuring related includes $19 mn ABB-OS™ simplification PPA-related amorization 68 Power Grids re
Slide 12: 2019 framework
Draft – Privileged and Confidential – Prepared at the request of Counsel — 2019 framework FY 2019 Q2 2019 FY 2019 $ mn unless otherwise stated Q1 2019 Q1 2019 framework framework framework Corporate & Other operational ~(800) (174) ~(225) EBITA Net finance expenses ~(230) (43) Of which, stranded cos
Slide 13: Accelerating growth in digital
Draft – Privileged and Confidential – Prepared at the request of Counsel — Accelerating growth in digital Q1 highlights Strengthened end-to-end offering Advancing wireless automation Connected packaging solution Dassault Systèmes, PLM / IT-OT Ericsson alliance, 5G / IT-OT Tetra Pak collaboration Sol
Slide 14: Managing the transformation
Draft – Privileged and Confidential – Prepared at the request of Counsel — Managing the transformation 2018 2019 2020 2021 Transformation announced ABB-OS™ and carve-out teams set up H1 Transaction closed; JV operational ABB-OS™ reaches full run-rate New GBS governance established ABB-OS™ pr
Slide 15: 2019 priorities
Draft – Privileged and Confidential – Prepared at the request of Counsel — 2019 priorities Solid order and revenue growth, demonstrating quality and resilience Running the Continued focus on operational execution company GEIS turnaround proceeding to plan PG separation on track Managing the ABB-OS™
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Slide 17: Key figures Q1 2019
Draft – Privileged and Confidential – Prepared at the request of Counsel — Key figures Q1 2019 Q1 2019 Q1 2018 Change yoy recast $ in millions, unless otherwise indicated $ Local currency Comparable1 Orders 7,613 7,555 +1% +7% +3% Order backlog (end March) 13,853 13,624 +2% +9% +6% Revenues 6,847 6,
Slide 18: Total orders and order backlog
Draft – Privileged and Confidential – Prepared at the request of Counsel — Total orders and order backlog By division Q1 2019 Q1 2018 Change yoy In $ mn unless stated otherwise Comparable Total orders 3,363 2,786 +6% Electrification Products Order backlog 4,394 3,441 +6% Total orders 1,884 2,117 -5%
Slide 19: Cash flow from operating activities by division
Draft – Privileged and Confidential – Prepared at the request of Counsel — Cash flow from operating activities by division Q1 2019 Q1 2018 Change yoy In $ mn unless stated otherwise Electrification Products -2 81 n.a. Industrial Automation 40 79 -49% Robotics and Motion 175 73 +140% Corporate and Ot
Slide 20: Operational EPS analysis
Draft – Privileged and Confidential – Prepared at the request of Counsel — Operational EPS analysis Q1 2019 Q1 2018 Change yoy1 $ mn, except per share date in $ EPS EPS Net income (attributable to ABB) 535 0.25 572 0.27 -6% Operational adjustments: Acquisition-related amortization 68 63 Restructurin
Slide 21: 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 Q1 2019, in % terms Electrification Products Industrial Automation Robotics and Motion Orders 32 35 32 37 35 44 33 24 28 Revenues 30 34 32 34 34 45 36 23 32 April Q1 201
Slide 22: 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 Q1 2019, in % terms Electrification Products Industrial Automation Robotics and Motion End-customer market 16 15 16 7 Revenues 20 45 39 65 77 Product type 8 16 5 Revenues 33