Abb Ltd. · SIX:ABBN
Abb — Q4 2022 Earnings Presentation
27 slides from Abb's earnings presentation, Feb 2, 2023
Slide 1: Slide 1
Slide 2: Orders
Orders $inmillions 9,500 8,500 7,500 6,500 5,500 2020 suum Orders: 2021 2 022 Comparable growth % -16%
Slide 3: Orders and revenues
ABB INTERIM REPORT I Q4 2022 3 In the fourth quarter , order intake declined by 8% (up 2% comparable) year -on-year to $7,620 million with a favorable development in most of the process-related segments, while certain parts of the short-cycle business declined as customers normalize order patterns.
Slide 4: Basic EPS
Basic EPS $ per share 2.20 1.70 1.20 0.60 0.50 0.40 0.30 0.10 2020 20a1 2022
Slide 5: Income from operations & Operational EBITA
Income from operations & Operational EBITA $inmillions 3,000 20% : a 1,500 15% 1,000 10% a O UL. oa 2020 2021 2022 'ssmssss Operational EBITA umm Income from operations Operational EBITA margin %
Slide 6: Gross profit, income from operations and operational EBITA
ABB INTERIM REPORT I Q4 2022 4 Gross profit Gross profit increased strongly by 11 % (22% constant currency) to $2,658 million, supported by a significant gross margin improvement of 230 basis points to 34.0 %. Gross margin improved materially in all business areas. Income from operations Income from
Slide 7: Net Cash (Net Debt) position
Net Cash (Net Debt) position $inmillions 500 -2,500 -5,500 -8,500 2020 2021 2022
Slide 8: Free cash flow conversion to net income, R12M
Free cash flow conversion to net income’, R12M 400% 300% 200% ~ il _l Pha. 2022 2020 2021
Slide 9: Net working capital, capex and net debt
ABB INTERIM REPORT I Q4 2022 5 Net working capital Net working capital amounted to $3,216 million, increasing year-on-year from $2,303 million but declining sequentially from $3,407 million. The sequential decrease reflects the total impact from higher trade payables and other current liabilities of
Slide 10: Orders and Revenues
Orders and Revenues 12M $in $inmillions millions 4,500 16,000 4,000 14,000 3,500 12,000 3,000 2,500 : 10,000 2020 2021 2022 ‘mmm Orders (am Revenues Orders 12M rolling
Slide 11: Income from operations & Operational EBITA
Income from operations & Operational EBITA $inmillions 20% 600 15% 450 300 10% 150 5% ° 0% 2020 2021 2022 (=m Operational EBITA qu Income from operations Operational EBITA margin %
Slide 12: Orders and revenues
ABB INTERIM REPORT I Q4 2022 6 Orders and revenues Demand was stable or improved in most customer segments year-on-year, except for in residential building. Order intake amounted to $3,565 million and including the adverse impact from changes in exchange rates it declined by 2% (up 6% comparable). ●
Slide 13: Income from operations & Operational EBITA
Income from operations & Operational EBITA $inmillions 2,500 25% 2,400 i + 20% 400 15% 300 10% 200 100 5% ° 0% 2020 2021 2022 (mmm Operational EBITA (GEE INcome from operations Operational EBITA margin %
Slide 14: Orders and revenues
ABB INTERIM REPORT I Q4 2022 7 Orders and revenues Order intake amounted to $1,649 million and declined by 11% (0% comparable). The development was hampered by fewer project orders received , although the product business improved at a mid-single digit rate. ● Orders in Europe declined by 26% (15% c
Slide 15: Orders and Revenues
Orders and Revenues 12M $in $inmillions millions 2,000 7,500 7,000 1,500 6,500 1,000 6,000 500 5,500 2020 2021 2022 mmm Orders mm Revenues Orders 12M rolling
Slide 16: Income from operations & Operational EBITA
Income from operations & Operational EBITA $inmillions 250 20% 200 15% 150 10% 100 | : 5% 50 a | | Dns Co) 0% 2020 2021 2022 (uum Operational EBITA Ssincome from operations Operational EBITA margin %
Slide 17: Orders and revenues
ABB INTERIM REPORT I Q4 2022 8 Orders and revenues Robust customer activity supported a solid order momentum in all divisions on a comparable basis, although this was more than offset by changes in exchange rates and business portfolio which resulted in a total order decline of 8% (up 11% comparable
Slide 18: Orders and Revenues
Orders and Revenues 12M $in $inmillions millions 1,350 4,500 1,100 | 4,000 850 | 3,500 600 | : | | | | 3,000 350 = . : 2,500 2020 2021 2022 (ae Orders mmm Revenues Orders 12M rolling
Slide 19: Slide 19
Slide 20: Orders and revenues
ABB INTERIM REPORT I Q4 2022 9 Orders and revenues Following a period of elevated order levels when customers pre-ordered in response to a strained supply chain, growth in the fourth quarter was impacted by a normalization of order patterns in anticipation of shorter delivery lead times. Order intak
Slide 21: CO2e Scope 1&2
COze Scope 1&2 Ktons Ktons, R12M 200 750 150 600 450 100 300 50 | | | 150 ° ° 2020 2021 2022 mms Ktons of CO; equivalent emissions (Scope 1&2)* Ktons of COz equivalent emissions (Scope 1&2), RI2M
Slide 22: Lost Time Injury Frequency Rate
Lost Time Injury Frequency Rate LTIFR LTIFR,R12M 03 f 0.25 - 0.20 02 > 015 | > 0.10 o1 i / 0.05 0.0 _ 2020 2021 2022 tums LTIFR, frequency/200,000 working hours LTIFR, frequency/200,000 working hours, RI2M
Slide 23: Quarterly highlights
ABB INTERIM REPORT I Q4 2022 10 Quarterly highlights ● ABB is working with Boliden, the Swedish mining and smelting company, to build a strategic co-operation to use low carbon footprint copper in its electromagnetic stirring (EMS) equipment and high-efficiency electric motors. The aim is to reduce
Slide 24: Slide 24
Slide 25: Q4 2022 Financial Information Contents
2 Q4 2022 FINANCIAL INFORMATION — Financial Information Contents 03 ─ 07 Key Figures 08 ─ 34 Consolidated Financial Information (unaudited) 35 ─ 50 Supplemental Reconciliations and Definitions
Slide 26: Key Figures
3 Q4 2022 FINANCIAL INFORMATION — Key Figures CHANGE ($ in millions, unless otherwise indicated) Q4 2022 Q4 2021 US$ Comparable (1) Orders 7,620 8,257 -8% 2% Order backlog (end December) 19,867 16,607 20% 29% Revenues 7,824 7,567 3% 16% Gross Profit 2,658 2,397 11% as % of revenues 34.0% 31.7% +2.3
Slide 27: Q4 2022 Financial Information
34 Q4 2022 FINANCIAL INFORMATION