Slide 1: Solid growth in a mixed market
Ulrich Spiesshofer, CEO ABB; Eric Elzvik, CFO ABB, April 29th, 2015 Solid growth in a mixed market Q1 2015 © ABB April 29, 2015 | Slide 1
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: Q1 2015 – solid growth in a mixed market
Q1 2015 – solid growth in a mixed market Delivering along our three focus areas Growth initiatives drive solid top line development; PIE is working Profitable Orders up 15%1, revenues grew 3% growth Book to bill 1.2x, >1.0x in every division Innovation: YuMi® robot, intelligent transformer sensors,
Slide 4: Q1 2015 Key figures
Q1 2015 Key figures Q1 15 Q1 14 Change $ mn unless otherwise indicated Orders 10’404 10’358 +15%1 Order backlog (end March) 25’491 26’924 +10%1 Revenues 8’555 9’471 +3%1 Operational EBITA 949 1’039 +5%1 as % of operational revenues 11.1% 11.0% +0.1 pts Net income 564 544 +4% Basic earnings per share
Slide 5: Focused growth initiatives drive 15% order increase
Focused growth initiatives drive 15% order increase Base orders increase in four divisions 2015 Q1 base order 2015 Q1 total order growth by region growth2 Change on a like-for-like basis Change on a like-for-like basis Europe Brazil -10% Automation -2% Canada +8% Power +90% China 0% Total +27% Finla
Slide 6: Negative double digit translation impacts in Q1
Negative double digit translation impacts in Q1 Foreign exchange exposures – overview 15% appreciation of USD Example: 15% appreciation of CHF vs EUR Timing Estimated impact Actions / Drivers Structural effect Inc. from op. á ~$200-400 mn Net exporter from EUR- Medium-term USD appreciation Inc. from
Slide 7: Impact of low oil price
Impact of low oil price Low oil price Oil & Gas Industries1 Governments Upstream Mid- / Downstream Short term opex Short term opex reductions reductions Several industries Reallocation of oil benefit, e.g., subsidies to Longer term capex Impact mainly on automotive, aluminum infrastructure reduction
Slide 8: Operational EBITA bridge
Operational EBITA bridge Growth offset by mix and foreign translation Factors affecting operational EBITA Q1 2015 vs Q1 2014 +81 -78 +100 -58 -109 1,039 +9 1,093 -35 949 Net Net Project Mix Other Forex Divestitures savings volume margins Business & Costs Translation Cost Revenue Geographic effects s
Slide 9: Q1 2015 performance by division
Q1 2015 performance by division Key figures quarter on quarter $ mn r r Operational Cash flow from unless otherwise stated Orders Like-for-like Revenues Like-for-like EBITA% r operations r Discrete Automation 2’569 -1% 2’271 +4% 14.2% -0.6 pts 223 (71) and Motion Low Voltage 1’703 +2% 1’555 -1% 15.6
Slide 10: Capital management
Capital management Freeing up cash for growth and value creation A solid, more balanced, cash generator 2015 Total cash distribution Cash from operations, $ mn Dividend from capital contribution to be paid early May (0.55CHF/ share) 53 Dividend distribution from nominal reduction to -45 be paid late
Slide 11: ABB – our Next Level strategy
ABB – our Next Level strategy Shaping a global leader in power & automation Presented September 9th, 2014 Shifting the center of gravity § Strengthening competitiveness Profitable § Driving organic growth momentum growth § Lowering risk Well Incremental acquisitions and partnerships positioned Leadi
Slide 12: Profitable growth
Profitable growth Driving organic growth momentum Example Growth in Japan Orders received Profitable >10% CAGR § Q1 2015 growth >20% growth Penetration Well § e.g., solar, utilities, positioned robotics 2011 2012 2013 2014 Yumi® Relentless § Collaborative dual-arm Innovation execution robots for sma
Slide 13: Profitable growth
Profitable growth Partnerships to expand into growth markets Example Profitable growth Well positioned Power electronics, converter and Technological expertise and electrification competence scale in lithium battery technology Packaged energy storage solutions High performance battery energy Relentl
Slide 14: Relentless execution
Relentless execution Securing profitability in challenging markets Example Profitable New global business model for IT growth Structural cost infrastructure Well savings Sustainably lower annual costs positioned 8’000 workforce reduction via Relentless Productivity productivity & portfolio measures
Slide 15: Relentless execution
Relentless execution Power Systems delivering on ‘step change’ Example What we said What we delivered Profitable growth Progress on profitability in 2015 Profitable Q1 Well positioned Division line and project mgmt. Strengthen leadership strengthened Complete off-shore wind Milestone progress on tra
Slide 16: Relentless execution
Relentless execution New compensation model rolled out Example Better link between performance and compensation Profitable growth What we Well said in Q4 positioned 2014 Relentless execution Care Customer Cost Cash Rolled out Hazard Ratio OTD Request in Place CCRP‘s Resolved on Time Field Failure Ra
Slide 17: Business-led collaboration
Business-led collaboration Profitable growth from combined power & automation offering Example Cross-division collaboration delivers greater customer value in Q1 Profitable growth Transportation & Well Utilities Industry positioned Infrastructure Eskom, Statoil, Norway Stadler rail South Africa ~$12
Slide 18: Q1 summary and outlook
Q1 summary and outlook 2015 priorities remain unchanged Q1 results Outlook Growth initiatives drive top line, PIE is working Mixed short-term picture, uncertainty remains Order backlog support revenues Continued growth in US; slower growth in China; modest growth in Europe Higher operational EPS in
Slide 19: Power and productivity for a better world
Power and productivity for a better world™ April 29, 2015
Slide 20: Key figures Q1 2015
Key figures Q1 2015 Q1 15 Q1 14 Change $ mn unless $ Local currency Like-for-like otherwise indicated Orders 10’404 10’358 0% +13% +15% Order backlog (end March) 25’491 26’924 -5% +9% +10% Revenues 8’555 9’471 -10% 0% +3% Operational EBITA 949 1’039 -9% +1% +5% as % of operational revenues 11.1% 11.
Slide 21: Order backlog by division
Order backlog by division Q1 2015 Q1 2014 Change % Order backlog (end March) $ Like-for like $ mn Discrete Automation and Motion 4’596 4’839 -5% +6% Low Voltage Products 1’003 1’161 -14% +6% Process Automation 5’648 5’836 -3% +19% Power Products 7’874 8’277 -5% +7% Power Systems 8’746 9’280 -6% +11%
Slide 22: Operational EPS analysis
Operational EPS analysis Q1 2015 Q1 2014 mn $ except per share data in $ EPS1 EPS r2 Net income 564 0.25 544 0.24 +6% (attributable to ABB) Restructuring and restructuring- 19 0.01 34 0.01 related expenses3 Acquisition-related expenses 8 0.00 8 0.00 and certain non-operational items4 FX/commodity ti
Slide 23: Regional share of total orders and revenues by division
Regional share of total orders and revenues by division Q1 2015 Discrete Low Voltage Process Power Power Automation & Motion Products Automation Products Systems 31% 32% 44% 23% Orders 35% 40% 36% 26% 43% 13% 20% 31% 64% 34% 28% Revenues 27% 28% 30% 31% 36% 38% 37% 40% 44% 41% 35% 30% 25% 32% 26% ©
Slide 24: Discrete Automation & Motion
Discrete Automation & Motion Q1 2015 Orders received Revenues Operational EBITA $ mn, y-o-y change like-for-like $ mn, y-o-y change like-for-like $ mn, operational EBITA -1% margin +4% 2'816 14.2% 2,816 2'569 2'485 2'381 2,569 2'327 2,485 2'271 378 2,381 352 2,327 2,271 378 318 352 318 Q1113 Q1214 Q
Slide 25: Low Voltage Products
Low Voltage Products Q1 2015 Orders received Revenues Operational EBITA $ mn, y-o-y change like-for-like $ mn, y-o-y change like-for-like $ mn, operational EBITA margin +2% -1% 1'882 1'777 1,882 1'975 1,777 1'934 1,975 1'555 15.6% 1,934 1'703 1,555 1,703 299 271 299 271 243 243 Q1113 Q1214 Q1315 Q11
Slide 26: Process Automation
Process Automation Q1 2015 Orders received Revenues Operational EBITA $ mn, y-o-y change like-for-like $ mn, y-o-y change like-for-like $ mn, operational EBITA margin +16% 2'500 -4% 2,500 12.2% 2'004 1'978 1'943 1'921 1,978 2,004 245 1,943 242 1,921 242 245 1,579 1'579 192 192 Q1113 Q1214 Q1315 Q111
Slide 27: Power Products
Power Products Q1 2015 Orders received Revenues Operational EBITA $ mn, y-o-y change like-for-like $ mn, y-o-y change like-for-like $ mn, operational EBITA margin +7% +4% 2'489 2'859 11.2% 2,859 2'391 2'725 2,489 2'656 2'275 2,391 2,275 2,725 2,656 319 304 319 304 253 253 Q1113 Q1214 Q1315 Q1113 Q12
Slide 28: Power Systems
Power Systems Q1 2015 Orders received Revenues Operational EBITA $ mn, y-o-y change like-for-like $ mn, y-o-y change like-for-like $ mn, operational EBITA margin +90% 2.2% +4% 147 2'051 2'394 147 2,051 2,394 33 1'608 1'472 1,608 1,472 1'637 1,637 1,490 1'490 -54 Q1113 Q1214 Q1315 Q1113 Q1214 Q13 15
Slide 29: More information available at ABB Investor Relations
More information available at ABB Investor Relations Name Telephone E-Mail 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 43 317 3832 binit.sanghvi@ch.abb.com Beat Fueglistaller +41 43 317 4144