Slide 1: ABB Q1 Presentation
April 29, 2014 ABB Q1 Presentation Ulrich Spiesshofer, CEO Eric Elzvik, 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 gl
Slide 3: Four divisions on track, orders stable, cash improved
Four divisions on track, orders stable, cash improved “Step change” program launched in Power Systems Growth1 § Total orders steady vs Q1 2013, base orders 3% higher on positive early-cycle trend § Base orders up in 3 biggest markets: US +5%, China +6% and Germany +8% § Large orders 12% lower—demand
Slide 4: Key figures first quarter 2014
Key figures first quarter 2014 Q1 14 Q1 13 Change $ millions unless Local Like-for- US$ otherwise indicated currency like Orders 10,358 10,492 -1% +1% +1% Order backlog (end March) 26,924 29,614 -9% -9% Revenues 9,471 9,715 -3% -1% -2% Income from operations 855 1,052 -19% as % of revenues 9.0% 10.8
Slide 5: Orders received by region overview
Orders received by region overview 2014 Q1 order growth by region Europe Change on a like-for-like basis Automation +7% Power -7% Total +2% Germany 0% UK +48% Italy -14% Americas Automation -4% Power +12% Asia Total +1% Automation 0% US +7% Power -5% Canada +8% MEA* Brazil -36% Total -2% Automation
Slide 6: Key figures ABB and by division first quarter 2014
Key figures ABB and by division first quarter 2014 US$ millions r r Operational r Operational unless otherwise stated Orders Local currency Revenues Local currency EBITDA US$ EBITDA % r Discrete Automation 2,816 +14% 2,381 +3% 395 -5% 16.6%1 -1.2 pts1 and Motion Like-for-like +9% -2% Low Voltage Pro
Slide 7: Operational EBITDA Bridge
Operational EBITDA Bridge Factors affecting operational EBITDA Q1 2014 vs Q1 2013 US$ millions +24 +27 1,458 -21 -126 -91 1,271 Net Net Mix Project Other savings volume Early margins G&A, Cost savings Negative cycle Mainly PS forex, ~$200 mill volume products projects other, less price impact plus m
Slide 8: Group Q1 cash flow significantly improved despite PS shortfall
Group Q1 cash flow significantly improved despite PS shortfall Cash from operations Q1 2014 vs Q1 2013 US$ millions Q1 2013 Q1 2014 § Divisional cash flows +$80 mill higher, despite >$100-mill deterioration in Power Systems § Total cash flow improved by $290 mill +118 excluding PS effects +42 § Seas
Slide 9: Executing along our three focus areas in Q1
Executing along our three focus areas in Q1 Q1 examples Penetration § Medium-voltage switchgear § Continue push on power sales in for UK rail network § Robotics/automation industry and infrastructure package for food company § Drive automation in emerging in Indonesia economies § Medium-voltage driv
Slide 10: Executing along our three focus areas in Q1
Executing along our three focus areas in Q1 Q1 examples § Combined expertise across § Swedish rail divisions to create greater $200-million customer value upgrade order § Multi-division footprint expansion § $300 mill in China, $200 mill in Brazil ABB’s new plant in Sorocaba, Brazil § Joint channel
Slide 11: Executing along our three focus areas in Q1
Executing along our three focus areas in Q1 Q1 examples § Continued cost reductions adding § Sales productivity pilots started white collar productivity focus § Improved cash management § Inventory management improvements in Discrete Automation and Motion § Acquisition integration § Power-One progre
Slide 12: Power Systems step change
Power Systems step change In-depth review revealed need for deeper “step change” program § Projects, portfolio, execution, people, go-to market/business model Focus areas Actions taken 1. EPC*: Adjust offshore wind business 1. Stop bidding for solar PV EPC model and risk/reward hurdles, re- (follows
Slide 13: Q1 summary
Q1 summary Q1 Results Outlook § Four of five divisions on track § Reiterate Q4 macro outlook § Positive early-cycle development § Encouraging early-cycle indicators offsets lower large orders § Uncertainty remains on pace of recovery in key markets § Revenues reflect lower opening order § Organic gr
Slide 14: Chart 14
© ABB Group April 29, 2014 | Slide 14 Chart 14
Slide 15: Orders and revenues by region and division Q1 2014
Orders and revenues by region and division Q1 2014 Regional share of total orders and revenues by division 3% 7% 6% 14% 20% 10% 7% 26% 31% Orders 21% 23% 41% 27% 41% 31% 30% 42% 32% 42% 33% 24% 37% 23% 39% 30% 29% 17% 18% 30% 30% 21% 26% 21% Discrete Automation Low Voltage Process Power Products Pow
Slide 16: Discrete Automation and Motion Q1 2014 summary
Discrete Automation and Motion Q1 2014 summary Orders received Revenues Operational EBITDA US$ mill., y-o-y change US$ mill., y-o-y change US$ mill., op EBITDA margin in % +8% +9% -8% +15% +4% -2% 2'816 2'678 2'485 2'381 2'327 2'242 18.6% 17.8% 16.6% 417 416 395 Q1 2012 Q1 2013 Q1 2014 Q1 2012 Q1 20
Slide 17: Low Voltage Products Q1 2014 summary
Low Voltage Products Q1 2014 summary Orders received Revenues Operational EBITDA US$ mill., y-o-y change US$ mill., y-o-y change US$ mill., op EBITDA margin in % +1% +3% 0% +7% 1'882 1'975 1'934 18.4% 1'777 -3% 18.0% +2% 346 320 1'337 16.6% 1'192 197 Q1 2012 Q1 2013 Q1 2014 Q1 2012 Q1 2013 Q1 2014 Q
Slide 18: Process Automation Q1 2014 summary
Process Automation Q1 2014 summary Orders received Revenues Operational EBITDA US$ mill., y-o-y change US$ mill., y-o-y change US$ mill., op EBITDA margin in % -1% -1% -11% 2'540 +6% +1% 2'500 +4% 13.1% 13.6% 2'004 12.4% 1'978 1'970 1'943 264 259 243 Q1 2012 Q1 2013 Q1 2014 Q1 2012 Q1 2013 Q1 2014 Q
Slide 19: Power Products Q1 2014 summary
Power Products Q1 2014 summary Orders received Revenues Operational EBITDA US$ mill., y-o-y change US$ mill., y-o-y change US$ mill., op EBITDA margin in % +10% -8% +8% 0% -3% -2% 14.9% 14.5% 14.8% 3'117 2'513 2'489 2'391 2'859 2'725 372 363 354 Q1 2012 Q1 2013 Q1 2014 Q1 2012 Q1 2013 Q1 2014 Q1 201
Slide 20: Power Systems Q1 2014 summary
Power Systems Q1 2014 summary Orders received Revenues Operational EBITDA US$ mill., y-o-y change US$ mill., y-o-y change US$ mill., op EBITDA margin in % +2% +15% -15% 0% -6% -19% 1'958 2'051 1'807 1'637 8.3% 1'608 1'490 6.6% 169 -1.8% 117 -29 Q1 2012 Q1 2013 Q1 2014 Q1 2012 Q1 2013 Q1 2014 Q1 2012
Slide 21: Operational EPS analysis
Operational EPS analysis Q1 14 Q1 13 US$ millions, EPS1 EPS1 r2 except per share data in US$ Net income 544 0.24 664 0.29 -18% (attributable to ABB) Restructuring and restructuring- 34 0.01 14 0.01 related expenses3 Acquisition-related expenses 1 EPS amounts are and certain non-operational 8 0.00 3
Slide 22: Order backlog by division
Order backlog by division Order backlog (end March) US$ millions Q1 2014 Q1 2013 Change % US$ Local currencies Discrete Automation and Motion 4,839 4,467 8% 7% Low Voltage Products 1,161 1,246 -7% -6% Process Automation 5,836 6,784 -14% -13% Power Products 8,277 8,831 -6% -6% Power Systems 9,280 11,
Slide 23: For more information, call ABB Investor Relations
For more information, call ABB Investor Relations Or visit our website at www.abb.com/investorcenter Name Telephone E-mail Zurich, Switzerland Alanna Abrahamson +41 43 317 3804 alanna.abrahamson@ch.abb.com Head of Investor Relations John Fox +41 43 317 3812 john.fox@ch.abb.com Binit Sanghvi +41 43 3