Slide 1: Q1 2020 results
— ZURICH, SWITZERLAND | APRIL 28, 2020 Q1 2020 results COVID-19 impacts results; weighs on outlook Björn Rosengren, 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: Q1 2020 key take-aways
— Q1 2020 key take-aways COVID-19 impacts results Orders retain positive momentum 1 Large order wins help build backlog Majority of operations fully or partially operational throughout 2 Quick reopening of operations in China Margins hurt by fall in demand and disruption to project and service activ
Slide 4: First days at ABB
— First days at ABB Meeting the team Initial tour of operations before COVID-19 restrictions COVID-19 pandemic, #1 priority Health & Safety, while securing business continuity Strong respect for ABB’s technologies, expertise, people Sharing first perspectives with colleagues Q1 2020 results Slide 4
Slide 5: An extraordinary macro-environment
— Q1 2020: an extraordinary macro-environment COVID-19 pandemic and oil price drop Economic downturn Demand impacts Manufacturing PMI (% yoy) Weaker short-cycle demand led by automotive and consumer facing sectors Contraction ← → Expansion 60 Strong large orders in transport, process 55 China stabil
Slide 6: Swift and full response from ABB
— Swift and full response from ABB Leadership response Operational mitigation #1 priority, Health & Safety Focus on serving customers – Led by dedicated Group Steering Co, – Supply of critical infrastructure Country Task Forces goods and services maintained – Following government guidelines – Maximi
Slide 7: Q1 2020 results summary
— Q1 2020 results summary Orders +1% 1 Revenues -7% 1 Operational EBITA Operational EPS margin -100 bps $0.30 -2% $7.61 bn $6.85 bn Q1 19 Q1 20 $7.35 bn (% or bps) $6.22 bn Op. EBITA margin 11.2 10.2 Basic EPS $0.18 Stranded -30% costs -100 -30 Cash flow from operating activities 2 Q1 19 Q1 20 Q1 19
Slide 8: Q1 2020 orders
— Q1 2020 orders Regional demand influenced by timing of COVID-19 spread Order development yoy Americas Growth by region and largest 3 country markets in $ terms IA and RA strong, MO robust and EL steady USA: strong in RA and IA, steady in EL, MO subdued Europe +5% Germany -4% Italy -18% UK +89% Eur
Slide 9: Q1 2020 Electrification
— Q1 2020 Electrification Short-cycle slowdown 6 3 5 4 3,750 5 7 1 0 3 5 2 1 3 14.2 2,750 1 13.5 13.1 -2 -7 12.4 -1 11.7 11.4 -3 1,750 -5 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Orders ($ mn) Orders growth (comparable % yoy) Revenue
Slide 10: Q1 2020 Industrial Automation
— Q1 2020 Industrial Automation Adverse business mix 8 8 3 5 10 13.6 13.5 3 0 5 -1 -1 -1 12.1 12.1 -2 1,500 -5 -4 0 9.7 -5 9.0 -10 1,000 -15 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Orders ($ mn) Orders growth (comparable % yoy) Reve
Slide 11: Q1 2020 Motion
— Q1 2020 Motion Solid delivery 17.8 2,000 8 10 12 9 7 16.7 6 5 16.4 5 3 4 5 0 15.4 15.3 1,500 1 -4 14.9 0 1,000 -5 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Orders ($ mn) Orders growth (comparable % yoy) Revenue growth (comparable %
Slide 12: Q1 2020 Robotics & Discrete Automation
— Q1 2020 Robotics & Discrete Automation Very challenged 16 25 8 0 13.1 12.9 1,000 12.3 -1 10 -3 -3 11.2 11.0 -9 -10 8.8 -16 -14 -5 500 -18 -19 -20 0 -35 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Orders ($ mn) Orders growth (comparabl
Slide 13: Resilient for medium term
— Resilient for medium term Balanced operations Solid cash generation track-record2 Serving +30 end-markets Group operating cash flow / operational EBITA ratio Globally diversified: Americas (32%), AMEA (31%), Europe (36%)1 1.5 Supply-demand alignment within regions Global Financial Crisis Industria
Slide 14: Continuing our daily business
— Continuing our daily business Resilient end-markets Electrification Industrial Automation Motion Robotics & Discrete Automation EV charger installations for bus 5 year service frame agreement, Upgraded ultra energy efficient F&B robotic solutions for stations, Transdev Chile China COSCO Shipping C
Slide 15: Immediate priorities
— Immediate priorities Short-term outlook, by end-market Securing business continuity 0% or higher 0% to -5% -5% to -15% -15% or lower Priority #1, Health & Safety Buildings Challenging quarters ahead Autos, machinery Mitigation efforts intensifying, speed is key Conv. power generation Other discret
Slide 16: Q&A
Together. @ABB Q1 2020 results I Slide 16
Slide 17: Appendix
— Appendix
Slide 18: Q1 2020 operational EBITA bridge
— Q1 2020 operational EBITA bridge Operational EBITA bridge Q1 2019 to Q1 2020 ($ mn) 11.2% op. 10.2% op. EBITA margin EBITA margin Op. EBITA Net Savings Commodities Net Volume Invest. Growth Mix / Under- Others Forex Op. EBITA Q1 19 Absorption* Q1 20 *Inclusive of COVID-19 related mobility constrai
Slide 19: 2020 framework
— 2020 framework Key New or revised guidance FY 2020 Q2 2020 $ mn unless otherwise stated Q1 2020 FY 2020 Q2 2020 framework framework Q1 2020 framework framework Corporate and Other operational ~(550) (115) ~(150) EBITA Net finance expenses Of which stranded costs, gross ~(120) (4) ~(40) ~(40) (21)
Slide 20: Q1 2020 net income drivers
— Q1 2020 net income drivers Operational EBITA to net income walk ($ mn) Key non-operational items Q1 20 Op. EBITA 636 Restructuring and related costs includes $16 mn ABB-OS PPA-related amorization 65 simplification Restructuring related 40 Power Grids related transaction and separation costs $44 mn
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