Slide 1: Q2 2019 results
— ZURICH, SWITZERLAND, JULY 25, 2019 Q2 2019 results Continued growth despite market headwinds; transformation progressing Peter Voser, Chairman and 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
Slide 3: Q2 2019 results summary
— Q2 2019 results summary Orders +1% 1 Revenues +2%1 Operational EBITA Operational EPS margin -110 bps $0.34 -10% PG (% or bps) Q2 18 Q2 19 sale PG impact sale $7.17 bn Op. EBITA impact $6.73 bn margin 12.6 11.5 Basic EPS $7.13 bn $7.40 bn recast $0.03 recast -91% Stranded -120 -90 Incl. $455 charge
Slide 4: Q2 2019 orders
— Q2 2019 orders Americas supportive; AMEA slower Order development yoy AMERICAS Growth by region and largest 3 country markets in $ terms All businesses up, led by strong growth in IA, RA, EL Robust in US, strong in South America USA +1% China -1% Canada +7% India +4% Brazil +30% S. Korea +30% EURO
Slide 5: Electrification
— Q2 2019 Electrification Continued top-line momentum 3,750 8 5 6 6 6 4 4 16.0 5 6 15.2 3 3 3 2,750 2 4 2 13.5 13.5 2 12.4 11.7 0 1,750 -2 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 EBITA margin Target 15-19% mid-term Orders ($ mn) Ord
Slide 6: Industrial Automation
— Q2 2019 Industrial Automation Mixed end-market dynamics 2,000 15 20 3 14.3 14.3 14.2 8 15 2 13.6 13.5 7 4 10 1,500 5 0 0 12.1 -5 -4 0 -1 -1 -5 -1 0 1,000 -1 5 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 EBITA margin Target 12-16% mid-
Slide 7: Motion
— Q2 2019 Motion Solid execution 2,000 20 12 17.3 14 15 10 16.7 13 15 9 9 16.3 16.4 7 7 6 10 5 14.9 14.9 1,500 4 5 0 1,000 -5 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 EBITA margin Target 14-18% mid-term Orders ($ mn) Orders growth (c
Slide 8: Robotics & Discrete Automation
— Q2 2019 Robotics & Discrete Automation Stronger headwinds 16 20 11 8 15.2 15.2 12 14.9 1,000 8 4 3 5 10 0 13.1 -1 -3 12.3 0 11.2 500 -9 -1 0 0 -20 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 EBITA margin Target 13-17% mid-term Orders
Slide 9: Q2 2019 operational EBITA
— Q2 2019 operational EBITA Operational EBITA bridge Q2 2018 to Q2 2019 ($ mn) 12.6% op. 11.5% op. EBITA margin EBITA margin +60 -30 -68 +57 +2 -45 +32 -38 855 825 Op. EBITA Net Commodities Net Invest growth, Mix/Under- Other Acq./Div. Forex Op. EBITA Q2 2018 savings volume incl. digital absorption
Slide 10: Q2 2019 net income drivers
— Q2 2019 net income drivers Operational EBITA to net income walk Q2 2019 ($ mn) Key non-operating items Q2 19 Op. EBITA 825 Restructuring related includes $51 mn ABB-OS simplification PPA-related amorization 67 Power Grids related transaction and separation costs $38 mn Restructuring related 74 Acq
Slide 11: 2019 framework
— 2019 framework FY 2019 Q3 2019 FY 2019 $ mn unless otherwise stated H1 2019 H1 2019 framework framework framework Corporate & Other operational ~(800) (359) ~(220) EBITA Net finance expenses (continuing) 2 ~(200) (86) Of which, stranded costs (gross) ~(300) (154) ~(70) Stranded cost elimination ~6
Slide 12: Driving growth: Q2 highlights
— Driving growth Q2 highlights Robotics & Discrete Electrification Industrial Automation Motion Automation LV switchgear innovation Pulp & paper sector leadership Extended digital solutions Robotics for the Hospital of the Future NeoGear™ showcased to Control systems order, Trident Collaboration wit
Slide 13: Power Grids: separation activities tracking to plan
— Power Grids: separation activities tracking to plan Power Grids separation Power Grids operations On track for planned H1 2020 closing Maintaining strong focus on customers and operations Country and functional teams implementing separation to plan Significant large orders won YTD, including – HVD
Slide 14: GEIS: integration making good progress
— GEIS: integration making good progress Delivering on integration commitments Performance Organization streamlined, ~80% employees fully integrated Q2 Operational EBITA ~5% On track to capture targeted cost synergies Market access Combined salesforces focused on growth areas ABB service products de
Slide 15: Managing the transformation
— Managing the transformation 2018 2019 2020 2021 ü Transformation announced ü ABB-OS and carve-out teams set up H1 Transaction closed; JV operational ABB-OS reaches full run-rate ü New GBS governance established H1 Majority of stranded ü ABB-OS program established ü New businesses operational H1 co
Slide 16: 2019 progress and outlook
— 2019 progress and outlook Focused on growth, headwinds in some markets End-market growth estimates, short-term $150-200 mn ABB-OS run-rate savings expected >3% O&G upstream Renewables Business and Mining Marine Hybrid Data centers transformation PG separation tracking to plan EV infrastructure pro
Slide 17: Appendix
— Appendix
Slide 18: Operational EPS analysis
— Operational EPS analysis Q2 2019 Q2 2018 Change yoy1 $ mn, except per share date in $ EPS EPS Net income (attributable to ABB) 64 0.03 681 0.32 -91% Operational adjustments: Acquisition-related amortization 67 62 Restructuring, related and implementation costs2 74 (1) Non-operational pension costs
Slide 19: AL GD ED
AL GD ED FADD ED