Slide 1: Q3 2020 results
— ZURICH, SWITZERLAND | OCTOBER 23, 2020 Q3 2020 results Strong underlying performance Björn Rosengren, CEO | Timo Ihamuotila, CFO
Slide 2: Important notices
— Important notices This presentation includes forward-looking There are numerous risks and uncertainties, many Although ABB Ltd believes that its expectations of which are beyond our control, that could cause reflected in any such forward-looking statement information and statements including our a
Slide 3: Q3 2020 key take-aways
— Q3 2020 key take-aways Strong underlying performance 1 Q3 margins >16% in EL, >17% in MO COVID-19 continues to weigh on top-line Uncertainties remain 2 Health & safety foremost, operations adapted Ongoing focus on business continuity 3 Capital structure optimization program continues, executing sh
Slide 4: Q3 2020 orders: US, Europe strongly impacted; China recovery continues
— Q3 2020 orders US, Europe strongly impacted; China recovery continues Order development yoy Growth by region and largest 3 country markets in $ terms Europe -10% Americas Germany -14% Decline correlated to ongoing COVID-19 pandemic Italy -4% USA: MO robust, EL and RA subdued, steep fall in IA Amer
Slide 5: Q3 2020 results summary
— Q3 2020 results summary Orders -8%1 Revenues -4%1 Operational EBITA Operational EPS margin +30 bps $0.21 -36% 7068 7401 7171 7346 6892 $7.61 bn $6.85 bn 6886 6582 6688 Q3 19 Q3 20 6216 6154 $7.35 bn (% or bps) 6109 6054 Op. EBITA $6.22 bn 11.7 12.0 margin Basic EPS Stranded $2.14 costs -70 n.a. +7
Slide 6: Electrification: In target margin corridor
— Q3 2020 Electrification In target margin corridor 5 3 10 4 3,500 1 5 1 0 16.3 -2 -2 -5 0 -7 14.2 -12 -5 -10 13.5 2,500 -10 13.1 12.6 -15 11.4 -20 1,500 -25 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Orders ($ mn) Orders growth (compa
Slide 7: Industrial Automation: COVID-19 continues to impact services
— Q3 2020 Industrial Automation COVID-19 continues to impact services 5 8 10 3 3 -2 -1 -1 12.1 12.1 5 -4 0 -7 9.7 1,500 -9 9.0 8.4 -5 -17 -10 6.4 -20 -15 -20 1,000 -25 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Orders ($ mn) Orders gro
Slide 8: Motion: Maintaining solid track record
— Q3 2020 Motion Maintaining solid track record 5 8 17.8 17.7 2,000 4 10 5 17.4 1 5 3 16.7 0 -1 -2 -7 -5 0 -4 -5 15.4 15.3 1,500 -10 -15 -20 1,000 -25 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Orders ($ mn) Orders growth (comparable %
Slide 9: Robotics & Discrete Automation: Order recovery led by China
— Q3 2020 Robotics & Discrete Automation Order recovery led by China 0 0 12.9 12.3 -9 11.0 1,000 -3 -3 8.8 9.5 -14 -5 -16 -10 6.8 -18 -15 500 -25 -19 -23 0 -30 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Orders ($ mn) Orders growth (com
Slide 10: Q3 2020 net income drivers
— Q3 2020 net income drivers Moving through most significant transformation steps 787 4,530 In $ mn, unless 71 stated otherwise Operational EBITA Income from operations Net Income ~(100) restructuring & GEIS ~(70) net finance expense integration expenses ~(110) other items, incl. PPA ~(340) non-oper
Slide 11: Capital structure optimization program: Improved financial flexibility
Balance sheet and liquidity position, — end Q3 2020 Capital structure optimization program Debts Cash & facilities Improved financial flexibility Net debt/EBITDA Total cash5 and undrawn facilities Phase 1 Share Debt and credit Pension -0.4x $11.6 bn buyback facilities structures A/A3 $2 bn 59.3 mn s
Slide 12: Outlook & priorities
1 Strong underlying performance, operations — adapting Outlook & priorities – #1 priority, Health & Safety – Staying close to customers Short-term outlook, by end-market – Reducing costs, sustainably End Q3 – Resilient cash delivery anticipated for FY20 2 Estimated growth, 0% or higher 0% to -5% -5%
Slide 13: Appendix
— Appendix
Slide 14: 2020 framework
— 2020 framework Key New or revised guidance FY 2020 Q4 2020 FY 2020 Q4 2020 $ mn unless otherwise stated 9M 2020 9M 2020 framework framework framework framework Corporate and Other operational ~(550) (401) ~(150) EBITA Net finance expenses ~(380) (152) ~(230) Non-operating items Non-operational pen
Slide 15: Q3 2020 operational EBITA bridge
— Q3 2020 operational EBITA bridge 11.7% margin 12.0% margin +10 ($ mn) - 128 + 245 - 60 806 787 - 107 + 25 -4 Op. EBITA Net Savings Commodities Net Volume Non-core Mix / Under- Others Forex Op. EBITA Q3 19 Absorption* Q3 20 *Inclusive of COVID-19 related mobility constrained service activities Othe
Slide 16: Slide 16