Abb Ltd. · SIX:ABBN
Abb — Q1 2024 Earnings Presentation
17 slides from Abb's earnings presentation, Apr 18, 2024
Slide 1: Q1 2024 results: Positive book-to-bill, record-high margin and strong cash flow
— ZURICH, SWITZERLAND | APRIL 18, 2024 | BJÖRN ROSENGREN, CEO; TIMO IHAMUOTILA, CFO Q1 2024 results Positive book-to-bill, record-high margin and strong cash flow
Slide 2: Important notices
— Important notices This presentation includes forward-looking There are numerous risks and uncertainties, many no assurance that those expectations will be information and statements including of which are beyond our control, that could cause achieved. our actual results to differ materially from t
Slide 3: Q1 2024 highlights: Strong start to the year
— 01. Q1 2024 highlights Strong start to the year Robust underlying markets, Orders -4%1 on strong comparable; Revenue +2%1 from last year’s high level; Op. EBITA +11% year-on-year; Op. EBITA margin 17.9% +160 bps; Free cash flow $551 mn, +$389 mn positive book-to-bill, YoY strong margin and cash 02
Slide 4: Strong book-to-bill driven by Electrification and Motion
— Orders -4%1 Strong book-to-bill driven by 9,373 9,450 8,974 Electrification and Motion 28 Q1 2024 results 9 Notable orders developments (comparable % YoY, unless otherwise indicated) -4 Short-cycle Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Down low-single digit; strength in Electrification offset by other Busine
Slide 5: Continued strength in the US and AMEA outside of China
— Continued strength in the US and AMEA outside of China Q1 2024 regional, country orders The Americas -3% USA Steep growth in EL; decline in MO; +2% strong decline in PA; Steep decline RA Canada -18% Mexico -5% Europe -9% Germany Growth in EL; decline in PA; strong -9% decline MO; steep decline in
Slide 6: Op. EBITA +11% year-on-year and record high Operational EBITA margin
— Op. EBITA +11% year-on-year and record high Operational EBITA margin Profitability drivers Operational EBITA +11% 1,417 Gross Profit 1,277 +9%1 17.9 997 Gross profit as a % of revenues increased from 34.6% to 37.3%; expansion in all business areas driven mainly by higher volumes 16.3 improving cos
Slide 7: Record high orders and profitability: Q1 2024 Electrification
— Record high orders and profitability Q1 2024 Electrification 4,500 25 35 4,500 25 900 26 16 22.4 8 9 22 5 6 19.0 3,500 10 3,500 10 450 15.9 18 2,500 -15 2,500 -5 0 14 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 22 22 22 22 23 23 23 23 24 22 22 22 22 23 23 23 23
Slide 8: Robust customer activity in project- and systems-related businesses: Motion
— Robust customer activity in project- and systems-related businesses Q1 2024 Motion 32 29 2,500 35 2,500 30 500 22 20 18.9 18.5 2,000 20 2,000 9 8 17.4 10 250 18 1 1,500 5 1,500 -6 0 1,000 -10 1,000 -10 0 14 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 22 22 22 2
Slide 9: Record profitability with all divisions now in the teens range: Process Automation
— Record profitability with all divisions now in the “teens” range Q1 2024 Process Automation 55 15.6 2,500 60 2,500 30 300 16 14.2 35 2,000 6 2,000 15 20 13.0 10 11 12 150 13 1,500 -20 1,500 10 -15 1,000 -40 1,000 0 0 10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 10: Orders improved sequentially; revenues and margin holding: Robotics & Discrete Automation
— Orders improved sequentially; revenues and margin holding Q1 2024 Robotics & Discrete Automation 60 35 150 20 1,500 65 1,500 35 14.9 1,000 1,000 13.2 15 15 10 75 500 -20 500 -7 10 -12 6.7 -30 0 -35 0 -15 0 5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 22 22 22
Slide 11: Operational EBITA bridge
— Operational EBITA bridge Operational EBITA margin (%) 16.3% 17.9% Accretion / dilution +1.5 0 +0.1 0 (%) -1 3 1,417 -15 22 131 1,277 Operational performance Operational EBITA $153 million ($ mn) Q1 2023 Volume/price Operations Items FX Portfolio Q1 2024 impacting changes Comparable revenues +2% co
Slide 12: Cash generation analysis: Q1 2024 cash flow drivers
— Cash generation analysis Q1 2024 cash flow drivers Free cash flow (+$551 mn, +$389 mn YoY) ($ mn) 3,667 Positive cash flow from operating activities in all business areas with 3 out of 4 business areas improving driven by: • Better operational performance • Less build up of Net working capital due
Slide 13: Outlook
— Outlook Q2 2024 FY 2024 Revenues Revenues Mid single-digit Comparable revenue growth comparable revenue to be about 5 percent; growth year-on-year Book-to-bill above 1 Operational EBITA % Operational EBITA % Operational EBITA margin Operational EBITA margin slightly higher than in the to be about
Slide 14: Q&A
Q&A
Slide 15: Appendix
— Appendix
Slide 16: 2024 framework
— 2024 framework Q1 24 Q2 24 20241 3M 24 2024 $ mn unless otherwise stated framework framework framework ↑ ~(50) Corporate and Other Operational EBITA2 (64) ~(75) ~(300) Net finance expenses 20 from ~(120) Effective tax rate 27% ~25%4 Non-operating items: PPA-related amortization (56) ~(60) ~(210) C
Slide 17: AL GD ED
AL GD ED FADD ED