Abb India Limited · NSE:ABB
Abb India — Q2 2024 Earnings Presentation
26 slides from Abb India's earnings presentation, Aug 8, 2024
Slide 1: Exchange cover letter: Presentation to Analysts
REF:INABB:STATUT:LODR:R30:ANLST-PPT: August 8, 2024 BSE Limited P.J. Towers Dalal Street Mumbai 400 001 (Attn : DCS CRD) National Stock Exchange of India Ltd Exchange Plaza, 5th Floor Plot No. C/1, G Block Bandra-Kurla Complex, Bandra (E) Mumbai 400 051 Dear Sirs Sub: Presentation to Analysts Ref: B
Slide 2: Q2 & H1, CY 2024 results
— BENGALURU, INDIA | AUGUST 8, 2024 | SANJEEV SHARMA, CMD & TK SRIDHAR, CFO Q2 & H1, CY 2024 results Growth momentum drives record margins ABB India Analyst Call | Q2 & H1 CY2024 | April – June 2024 © 2022 ABB. All rights reserved.
Slide 3: 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
Slide 4: ABB in India at a glance
— — Exporting to ABB in India at a glance 30+countries ABB Group ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The company’s solutions connect engineering know-how and software to optimize how things are manufactured, moved,
Slide 5: Business highlights
eceees. eee! See Business highlights S3oe.
Slide 6: Q2 2024 highlights
— Q2 2024 highlights 01. Strong performance • Orders +13%¹ ; strong momentum with large orders from emerging sectors • Revenue +13%¹ driven by steady demand and seamless execution across segments • PAT +50%1 due to revenue mix and superior order execution • Operational EBITA up 64% for the quarter •
Slide 7: Positive market momentum across segments
— Positive market momentum across segments Orders (+13%)1 INR crores 80% 3,607 4,000 3,435 2,767 3,125 3,147 3,500 Orders 3,044 3,004 60% 2,634 3,000 Robust order impetus with good mix of long and short cycle; 2,335 2,500 large orders from emerging segments 40% 2,000 1,500 Export & Services 20% 1,00
Slide 8: Robust execution driving growth
— Robust execution driving growth H1 2024 highlights Orders Backlog Strong performance; well-positioned to continue growth trajectory 22%1 14%1 29%1 23%1 9,517 • Double-digit top-line growth aided by all divisions 7,042 6,169 7,727 • Strong order backlog distributed across all business 5,066 5,995 a
Slide 9: Proven capabilities leading to significant wins
— Proven capabilities leading to significant wins Transportation & Mobility Systems Industry Propulsion equipment for Traction orders including for Robotics application for Efficient power distribution solutions for a data center major Indian Railways motors in the metro rail existing production lin
Slide 10: Continuous customer engagement
— Continuous customer engagement Diverse segments, deeper coverage Technology Day in Jaipur by Technical Seminar at Karur Technology Day in Bangladesh by Electrification Distribution by Motion division Electrification for Building & Infra, Solutions for various Marine, Metro, Railways and government
Slide 11: Diverse businesses catering to 23 market segments
Diverse businesses catering to 23 market segments Focus Enhance Sustain Data Centers Renewables Textile Railways & Metro Automotive Marine & Ports Electronics Warehouse & Rubber & Plastics Logistics Metals & Mining Water & Wastewater Oil, Gas and Building & Chemicals Infrastructure Pharma & Healthca
Slide 12: Energy Transition: India in the initial phases with an investment potential of $656bn till FY32
— Energy Transition: India in the initial phases with an investment potential of $656bn till FY32 Major driver is India’s energy transition targets: 50% (500GW) power installed capacity from non-fossil sources by 2030 & reduction in emissions intensity of the GDP by 45% by 2030, from 2005 levels Ren
Slide 13: Sustainability in practice
— Sustainability in practice Tracking our green goals: H1 FY24 progress H1 2024 By 2024 (actual) (plan) Scope 1&2 GHG Emissions* 86% 80% Water recyclability* ~36% 45% Water positive unit* 3 4 Zero Waste to Landfill unit 1 2 (No.)* * Compared to 2019 baseline and all figures are on a cumulative basis
Slide 14: Performance with Purpose
— Performance with Purpose Focus on local development, education, diversity & inclusion, and healthcare for communities Education & Skilling Communities & Environment STEM and FLN program Phase-2 Nelamangala rural initiated: 148 Govt. schools road upgradation project - in Peenya & Nelamangala nearin
Slide 15: Financial highlights
09202 pect oooeecen Rosbrtes Sop coe | highlights inancia F
Slide 16: Consistent track record
— Consistent track record YoY comparable • Superior customer- centric solutions ensuring order momentum • Seamless execution driving higher revenues • Cost optimisation and Earnings per share FCF conversion to net income pricing power resulting 1.2 21.68 20.89 25.00 180% 442 500 in superior margins
Slide 17: Performance Overview Q2 2024 & H1 2024
— Performance Overview Q2 2024 & H1 2024 All figures in INR Crores Full Half vs Q2 vs Q1 Vs Key Highlights year year Q2 23 Q1 24 Performance Indicator Q2 24 H1 24 23 24 H1 23 2023 2023 Orders & Revenues: 10,999 6,011 2,886 3,234 Base Orders Received 2,890 Flat -11% 6,124 +2% • Moderation in sequenti
Slide 18: Demand vs Supply Q2 FY24
— Demand vs Supply Q2 FY24 Growth for ABB in India is 13% Fig in MUSD @ 1 $ = 83.02 INR Orders originating from India (as seen by Group) Orders as reported by local entity (ABB India Ltd) Q2/24 Q2/23 Change Q2/24 Q2/23 Change % % 3rd Party ABB India ABB India Customers in Ltd Ltd 363 330 10% 363 330
Slide 19: Steady profits, delivering growth
— Steady profits, delivering growth All figures in INR Crores EBITDA 565 PBT Bridge Growth catalysts: 25% 542 600 439 +21.0% 20% 417 19% 500 +15.7% (+)6.3 (-0.5) (-2.1) (+)1.5 (+)0.1 • Diversified 364 349 15% 285 400 revenue mix from 14% 10% 199 211 300 services, exports, 10% 200 and customer 5% 297
Slide 20: Financial summary
— Financial summary Figures in INR Crores Q2 2024 vs Q2 2023 Other income: 87 Cr (75 Cr) Comprises interest on fixed deposits and TSA income from APPSIL. Increase in FD interest income by Rs. 13 Cr Material cost: 57.2% (63.5%) Revenue mix, better margin orders and price revision. Discussed subsequen
Slide 21: Electrification
— Electrification INR crores (+30%) (+12%) 1,791 1,296 Orders Received 1,432 1,130 1,121 • Growth from data centres, smart power 1,006 1,042 1,100 • Large orders for power distribution solutions 1,032 1,037 • Higher service orders Orders Revenues Received Revenues • Higher order backlog and uninterr
Slide 22: Motion
— Motion INR crores (+18%) (+17%) 1,417 1,400 1,076 Orders Received 1,329 981 1,013 1,126 1,181 917 915 • Large orders for traction technology from railways and metro Orders Revenues Revenues Received • Higher revenues from propulsion equipment and high dynamic performance motors Q2/23 Q3/23 Q4/23 Q
Slide 23: Process Automation
— Process Automation INR crores (-32%) (+24%) 726 Orders Received 784 676 631 633 695 • Orders from chemicals and energy sectors 510 529 541 533 • Large metal order with one-time impact in Q2/23 Orders Revenues Received Revenues • Higher execution of order backlog Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q2/23
Slide 24: Robotics and Discrete Automation
— Robotics and Discrete Automation INR crores (+157%) (-31%) 123 118 157 108 109 Orders Received 152 84 • Strong inflows from automotive sector driven 116 by EVs 61 57 Orders Revenues Revenues Received • Good momentum in execution of book & bill Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q2/23 Q3/23 Q4/23 Q1/24
Slide 25: Resilient and diversified business model (by revenues)
— Resilient and diversified business model (by revenues) Business Areas Offerings 5% 3% 4% 3% 12% 12% 11% 15% 20% 22% 19% 22% 12% 12% 12% 12% 37% 35% RA 36% 37% Projects PA 76% 76% 77% 73% Services MO Products 39% 38% 40% 40% EL Q2/23 Q2/24 H1/23 H1/24 Q2/23 Q2/24 H1/23 H1/24 Channels Geography 10%
Slide 26: August 8, 2024 Slide 25
August 8, 2024 Slide 25