Abb Ltd. · SIX:ABBN
Abb — Q3 2023 Earnings Presentation
28 slides from Abb's earnings presentation, Oct 18, 2023
Slide 1: Slide 1
Slide 2: Orders
Orders $inmillions 9,500 8,500 7,500 6,500 5,500 2022 2023 Comparable growth % 24% 16% 8% 0%
Slide 3: ABB Interim Report Q3 2023: orders and revenues
ABB INTERIM REPORT I Q3 2023 3 Strong demand for the project- and systems-related businesses, often linked to the medium voltage offerings, more than offset a decline in parts of the short-cycle businesses hampered by inventory adjustments among channel partners and normalizing order patterns. In to
Slide 4: Basic EPS
Basic EPS $ per share 1.50 1.40 1.30 0.70 0.60 0.50 0.40 0.30 0.20 0.10 Seas + 2021 2022 2023 0.00
Slide 5: Income from operations & Operational EBITA
Income from operations & Operational EBITA $inmillions 3,000 1] 20% 1,500 ij 7 15% 1,000 10% ° 0% 2021 2022 2023 tummemas Operational EBITA ummm Income from operations Operational EBITA margin %
Slide 6: Gross profit and income from operations
ABB INTERIM REPORT I Q3 2023 4 Gross profit Gross profit increased strongly by 11% (9% constant currency) to $2,762 million, reflecting a strong gross margin improvement of 120 basis points to 34.7%. Gross margin improved in three out of four business areas, with only Process Automation declining ma
Slide 7: Net Cash (Net Debt) position
Net Cash (Net Debt) position $inmillions 1,000 -2,000 ' UL -5,000 2021 2022 2023
Slide 8: Free cash flow conversion to net income, R12M
Free cash flow conversion to net income’, R12M 350% 300% 250% 200% 150% 100% ~Hhndaon 0% 2021 2023
Slide 9: Net working capital, capex and net debt
ABB INTERIM REPORT I Q3 2023 5 Net working capital Net working capital amounted to $4,041 million, increasing year-on-year from $3,407 million driven mainly by the increase in inventories and receivables. Net working capital decreased sequentially from $4,585 million driven mainly by strong trade ne
Slide 10: Slide 10
Slide 11: Orders and Revenues
Orders and Revenues 12M $in $inmillions millions 4,500 16,000 4,000 | a 14,000 3500 ff | | | | | | | | - 3,000 | ] 2,500 10,000 2021 2022 2023 smmeses Orders mmm Revenues Orders 12M rolling
Slide 12: Electrification orders and revenues
ABB INTERIM REPORT I Q3 2023 6 Orders and revenues Demand linked to the medium-voltage offerings noted strong year-on-year development and more than offset market softness in parts of the short-cycle business which was hampered by distributors normalizing inventory levels in the face of shortening d
Slide 13: Orders and Revenues
Orders and Revenues 12M $in $ in millions millions 2,500 8,500 2,000 i i 8,000 | 7,500 1,500 | | | |i 7,000 1,000 i | ] | ia 6,500 500 : “ 6,000 2021 2022 2023 mmmmms Orders mmm Reverntucs Orders 12M rolling
Slide 14: Income from operations & Operational EBITA
Income from operations & Operational EBITA $inmillions 2,500 25% 2,400 i I 20% 400 15% 300 10% 200 100 5% ° 0% 2021 2022 2023 iummmas Operational EBITA mmm Income from operations Operational EBITA margin %
Slide 15: Orders and revenues
ABB INTERIM REPORT I Q3 2023 7 Orders and revenues Total orders declined due to a high level of larger bookings in last year’s period. Looking beyond this impact, it was a more stable development with a strong order momentum reported for the long-cycle businesses, while weakness was noted in parts o
Slide 16: Orders and Revenues
Orders and Revenues 12M $in $inmillions millions 2,500 7,500 2,000 | 7,000 1,500 6,500 1,000 | | L | 6,000 500 5,500 2021 2022 2023 mmm Orders mms Revenues Orders 12M rolling
Slide 17: Income from operations & Operational EBITA
Income from operations & Operational EBITA $inmillions 300 20% 225 15% 150 | a 10% 75 | | | 5% Co) : ~ 0% 2021 2022 2023 Operational EBITA es Income from operations Operational EBITA margin %
Slide 18: Process Automation orders and revenues
ABB INTERIM REPORT I Q3 2023 8 Orders and revenues On a broad robust underlying activity across the customer segments, with the added contribution of large orders, order intake reached $1,883 million and increased by 20% (comparable 38%) year-on-year. ● Order intake included the booking of an order
Slide 19: Orders and Revenues
Orders and Revenues 12M $in $inmillions millions 1,350 4,500 1,100 4,000 850 3,500 600 3,000 350 2,500 2021 2022 2023 mamma Orders mmm Revenues Orders 12M rolling
Slide 20: Slide 20
Slide 21: Robotics & Discrete Automation orders and revenues
ABB INTERIM REPORT I Q3 2023 9 Orders and revenues With both divisions in negative growth, total orders declined by 26% (comparable 27%), weighed down by normalizing order patterns and weakening of the Chinese robotics market. Although it is difficult to exactly assess, we expect these pressures to
Slide 22: Slide 22
Slide 23: CO2e Scope 1&2
COze Scope 1&2 Ktons Ktons, R12M 200 750 150 600 450 100 300 7 lian ° ° 2021 2022 2023 mamas Ktons of CO2 equivalent emissions (Scope 1&2) Ktons of COz equivalent emissions (Scope 1&2), RI2M
Slide 24: Quarterly highlights
ABB INTERIM REPORT I Q3 2023 10 Quarterly highlights ● ABB was upgraded from AA to AAA in the MSCI ESG rating. ESG ratings from MSCI ESG Research are designed to measure a company’s resilience to financially material environmental, societal and governance (ESG) risks. Achieving the highest possible
Slide 25: Slide 25
Slide 26: Q3 2023 Financial Information Contents
2 Q3 2023 FINANCIAL INFORMATION — Financial Information Contents 03 ─ 07 Key Figures 08 ─ 33 Consolidated Financial Information (unaudited) 34 ─ 46 Supplemental Reconciliations and Definitions
Slide 27: Key Figures
3 Q3 2023 FINANCIAL INFORMATION — Key Figures CHANGE ($ in millions, unless otherwise indicated) Q3 2023 Q3 2022 US$ Comparable (1) Orders 8,052 8,188 -2% 2% Order backlog (end September) 21,445 19,393 11% 11% Revenues 7,968 7,406 8% 11% Gross Profit 2,762 2,481 11% as % of revenues 34.7% 33.5% +1.2
Slide 28: Q3 2023 Financial Information
33 Q3 2023 FINANCIAL INFORMATION