Abb India Limited · NSE:ABB
Abb India — ABB — Q1 2013 Earnings Presentation
27 slides from Abb India's earnings presentation, Apr 24, 2013
Slide 1: ABB Q1 2013 results
April 24, 2013 ABB Q1 2013 results Joe Hogan, CEO Eric Elzvik, CFO
Slide 2: Safe-harbor statement
Safe-harbor statement 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, includin
Slide 3: Q1 2013: Revenue growth, improved profitability
Q1 2013: Revenue growth, improved profitability More balanced business and regional scope Growth § Steady orders, higher revenues despite weak macro environment § Order growth in mining, marine, robotics and China § Revenues higher on execution of strong order backlog § Emerging market orders up 10%
Slide 4: Key figures for Q1 2013
Key figures for Q1 2013 Q1 2013 performance Q1 2013 Q1 2012 Change vs Q1 2012 Change vs Q1 2012 US$ millions unless otherwise indicated US$ local currencies +2% Orders 10'492 10'368 1% (organic1: -4%) Order backlog (end Mar.) 29'614 29'910 -1% +2% +10% Revenues 9'715 8'907 9% (organic: +3%) Operatio
Slide 5: Balanced business and geographic portfolio
Balanced business and geographic portfolio Orders by division Q1 2013 Orders by region Q1 2013 Non-consolidated Middle East Discrete & Africa Power Automation Systems 14% 9% 22% and Motion 37% Europe Asia 27% Power 25% Products 17% Low Voltage Products 22% 27% Process Americas Automation Chart 5
Slide 6: Modest growth across geographies in Q1 2013
Modest growth across geographies in Q1 2013 Resilient performance in most regions Order growth in selected countries, Q1 13 vs Q1 12 (in local currencies) Europe Automation -1% -1% Power 0% Germany -18% Switzerland -17% Italy -16% Netherlands +52% France +4% Automation +24% Russia +49% Americas Pola
Slide 7: Key orders won in the quarter
Key orders won in the quarter Significant wins in service, HVDC and oil & gas § $260-mill. offshore oil & gas platform service (Norway) § $150 mill. in technology for highest-capacity UHVDC link (China) § $110-mill. HVDC link between Lithuania and Poland § Electrification of offshore oil & gas proce
Slide 8: Q1 2013 divisional growth overview
Q1 2013 divisional growth overview Order backlog provides a buffer vs softer early cycle Change in local Change in local US$ millions unless otherwise indicated Orders currencies Revenues currencies Discrete Automation and Motion 2'485 -7% 2'327 4% Low Voltage Products 1'934 47% 1'777 51% (organic)
Slide 9: Q1 2013 divisional earnings and cash overview
Q1 2013 divisional earnings and cash overview Higher margins in 4 out of 5 divisions Change in Change in US$ millions unless otherwise indicated Op EBITDA US$ Op EBITDA margin percentage points Discrete Automation and Motion 416 0% 17.8% -0.8 Low Voltage Products 320 62% 18.0% +1.4 (organic) 222 18.
Slide 10: Operational EBITDA: Upside from cost and volume
Operational EBITDA: Upside from cost and volume T&B contributes almost $100 million Factors affecting operational EBITDA Q1 2013 vs Q1 2012 US$ millions +$98 1,458 +$115 1,360 +$7 +$57 1,228 -$47 Other T&B Net volume Mix Project costs, Net savings Positive volume forex, other Cost savings impact of
Slide 11: Operational EPS analysis
Operational EPS analysis Q1 2013 Q1 2012 Change1 US$ in millions, except per share data in US$ US$ EPS US$ EPS Net income 664 0.29 685 0.30 -3% Restructuring-related costs2 14 0.01 12 0.01 FX/commodity timing differences on EBIT2 44 0.02 -50 (0.02) Acquisition-related expense and certain non-operati
Slide 12: Thomas & Betts update: A strong start
Thomas & Betts update: A strong start Integration on track § Q1 stand-alone vs. year-earlier period § Stable revenues § Contributed ~$590 mill in revenues, ~$100 mill in op EBITDA § Q1 operational EBITDA margin 16.6% vs 18.1%1 in Q1 2012 § Integration on track § Integration costs and cost synergies
Slide 13: Weaker cash generation
Weaker cash generation Normal recovery expected over remainder of the year Cash from operating activities § Main divisional impacts: Q1 13 vs Q1 12 US$ millions § Timing of project payments § Lower customer advances 205 § PS reset cash impacts Divisional cash flow from § Net working capital at 16.4%
Slide 14: Technology and innovation
Technology and innovation A world leader in power electronics Power electronics DC power systems New 1000 kW central solar inverter Onboard DC grid for Norwegian for enhanced grid stability offshore supply vessel Low-voltage breaker Gearless conveyors 1st LV breaker with integrated energy Gearless c
Slide 15: Demand outlook heading into 2013
Demand outlook heading into 2013 Short term unclear, long term remains supportive Americas Europe § Continued uncertainty § Utility spending remains low Power from fiscal debate § Industrial demand stable § Industrial demand § Eastern Europe outgrowing softer but still positive total Europe Automati
Slide 16: Outlook for the remainder of 2013
Outlook for the remainder of 2013 No clear trend changes visible heading into Q2 13 Growth § Long-term growth drivers intact: Industrial productivity, power efficiency § Market uncertainty likely to remain high in near term § Short-term driven by GDP, government policies Execution § Sustain annual P
Slide 17: Power and productivity
Power and productivity | for a better world™ iA A a
Slide 18: Balanced business and geographic portfolio
Balanced business and geographic portfolio Revenues by division Q1 2013 Revenues by region Q1 2013 Non-consolidated Middle East Discrete & Africa Power Automation Systems 10% 19% 22% and Motion 35% Europe Asia 26% Power Products 23% 17% Low Voltage Products 19% 29% Process Americas Automation Chart
Slide 19: Orders and revenues by region and division Q1 2013
Orders and revenues by region and division Q1 2013 Regional share of total orders and revenues by division US$ 3% 5% 7% 13% 10% 7% 22% 31% Orders 29% 38% 20% 29% 27% 31% 30% 41% 23% 42% 43% 33% 24% 37% 23% 39% 30% 31% 18% 18% 32% 25% 30% 24% 17% Discrete Automation Low Voltage Process Power Products
Slide 20: Order backlog by division
Order backlog by division Order backlog (end March) Q1 2013 Q1 2012 Change % US$ millions US$ Local currencies Discrete Automation and Motion 4'467 4'675 -4% -2% Low Voltage Products 1'246 1'049 19% 22% Process Automation 6'784 6'483 5% 8% Power Products 8'831 8'859 0% 2% Power Systems 11'511 12'115
Slide 21: Solid investment grade balance sheet
Solid investment grade balance sheet Strong support for organic and inorganic growth Net cash (debt) position 2005-Q1 2013 US$ billions § Total debt at $9.1 bn § Net debt/EBITDA at 0.4x 7.2 6.4 5.2 5.4 Uses of cash in 2013 § Annual dividend >$1.5 bn 1.8 § ~$900 mill bond repayment in June 1.3 § Cape
Slide 22: Reconciliation of Operational EBITDA by Division
Reconciliation of Operational EBITDA by Division Q1 2013 vs Q1 2012 Discrete Automation Low Voltage ABB Process Automation Power Products Power Systems & Motion Products Q1 13 Q1 12 Q1 13 Q1 12 Q1 13 Q1 12 Q1 13 Q1 12 Q1 13 Q1 12 Q1 13 Q1 12 9'721 8'844 2'331 2'240 1'779 1'186 1'983 1'960 2'503 2'49
Slide 23: Reconciliation of non-GAAP measures 1
Reconciliation of non-GAAP measures 1 ($ in millions) Net Working Capital as a percentage of Revenues Mar. 31, = Net Working Capital / Adjusted Revenues for the trailing 12 months 2013 Receivables, net 11,941 Inventories, net 6,267 Prepaid expenses 322 Accounts payable, trade (4,705) Billings in exc
Slide 24: Reconciliation of non-GAAP measures 2
Reconciliation of non-GAAP measures 2 ($ in millions) Net (Debt), Net Cash Mar. 31, = Cash and equivalents plus Marketable securities and short-term investments, 2013 less Total debt Cash and equivalents 5,455 Marketable securities and short-term investments 1,591 Cash and Marketable securities 7,04
Slide 25: Appendix: Definitions 1
Appendix: Definitions 1 § Acquisition-related amortization: amortization expense on intangibles arising on acquisitions and the cost of sales impact from fair valuing inventory in an acquisition. § FX/commodity timing differences on EBIT: the sum of i) unrealized gains and losses on derivatives (for
Slide 26: Appendix: Definitions 2
Appendix: Definitions 2 § Operational net income: Net income adjusted for the net-of-tax impact (using the Group’s effective tax rate) of i) unrealized gains and losses on derivatives (FX, commodities, embedded derivatives), ii) realized gains and losses on derivatives where the underlying hedged tr
Slide 27: For more information, call ABB Investor Relations
For more information, call ABB Investor Relations Or visit our website at www.abb.com/investorrelations Name Telephone E-mail Alanna Abrahamson Head of Investor Relations +41 43 317 3804 alanna.abrahamson@ch.abb.com (Zurich) John Fox +41 43 317 3812 john.fox@ch.abb.com Binit Sanghvi +41 43 317 3832