Slide 1: Presentation to Analysts - cover letter to exchanges
REF:INABB:STATUT:LODR:R30:ANLST-PPT: February 20, 2024 BSE Limited P.J. Towers Dalal Street Mumbai 400 001 (Attn : DCS CRD) National Stock Exchange of India Ltd Exchange Plaza, 5th Floor Plot No. C/1, G Block Bandra-Kurla Complex, Bandra (E) Mumbai 400 051 Dear Sirs Sub: Presentation to Analysts Ref
Slide 2: Solid finish to a record year
— FEBRUARY 21, 2024 Solid finish to a record year ABB India Analyst Call | Q4 & Full-year CY2023 | October – December 2023 © 2022 ABB. All rights reserved.
Slide 3: 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 4: ABB at a glance
— — ABB at a glance ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The company’s solutions connect engineering know-how and software to optimize how things are manufactured, Faridabad moved, powered and operated. Building on m
Slide 5: Diverse businesses catering to 23 market segments
Diverse businesses catering to 23 market segments metals & cement mining rubber & plastics textiles pulp & paper pharma & water & healthcare wastewater marine & oil, gas & ports chemicals automotive food & beverage renewables datacenter buildings & infrastructure power warehouse distribution railway
Slide 6: Theme for the quarter: Renewables: a deep-dive
— Theme for the quarter Renewables: a deep-dive Segment Insights Key Drivers & Trends • India aims for 500 GW renewable energy installed capacity by • India’s commitments to achieve net-zero emissions by 2070 2030 • India’s rising power demand to reach 817 GW by 2030 • 180.8 GW installed capacity fo
Slide 7: Continuous customer engagement to serve 23 diverse segments
— Continuous customer engagement to serve 23 diverse segments Engaged with 7,000+ customers across 30+ tier II & tier III markets in 2023 Customer Connect, Mumbai for cement, Technology Day for F&B segment, Kochi Road Show for Chemical segment, Mahad metal & paper industry by PAPI Digital by MODP, M
Slide 8: Business highlights
— — Business highlights
Slide 9: Q4 2023 highlights
— — Q4 2023 highlights 1 OPERATIONAL PERFORMANCE 2 ESG & CUSTOMERS Strong operational performance 50% of the company’s Orders +35%1 from both, . manufacturing campuses emerging and traditional certified as water positive segments Achieved ~87.3*% reduction in Revenues +14%1 achieved through own GHG
Slide 10: Positive market momentum across segments
— Positive market momentum across Orders (+35%)1 INR crores segments 3,500 3,125 3,044 3,004 3,147 80% 3,000 2,767 2,634 60% 2,243 2,500 2,291 2,335 1,825 1,909 40% Orders 2,000 1,689 Significant traction in large orders with steady base 1,500 20% orders 1,000 Discrete 0% 500 Continued momentum in a
Slide 11: Robust execution driving growth
— Robust execution driving growth 2023 highlights Orders Backlog Revenue • Double-digit top-line growth as ABB is well- 23%1 positioned to benefit from megatrends 23%1 30%1 24%1 31%1 32%1 • Record high profitability achieved 12,319 10,447 10,028 8,404 • New all-time high ROCE 8,568 6,468 6,934 • Eng
Slide 12: Return on Capital employed reaching best in class level
— Return on Capital employed reaching best in class level +110% +110% 21.0% Return on Capital employed (ROCE) • More than doubled since pre-COVID levels 13.1% • Strong, consistent ROCE performance across the years 10.0% • Improvement driven by higher operational EBITA YoY 2019 2021 2023
Slide 13: Proven capabilities leading to significant wins
— Proven capabilities leading to significant wins Power distribution package for datacenter Robotics solutions for electronics Traction technology service/AMC offering of IT major business of a conglomerate for railways Electrics, drives and automation for a leading Distributed control systems for a
Slide 14: Implementing ABB India ESG Strategy
— Implementing ABB India ESG Strategy 100% achievement across planned KPIs By 2023 Green Certified unit 100% Scope 1&2 GHG Emissions* 87% Energy productivity* ~65% Water recyclability ~45% Water positive unit 50% Zero Waste to Landfill unit (No.) 1 * Compared to 2019 baseline
Slide 15: Care: Performance with Purpose
— Care: Performance with Purpose Focus on local development, education, diversity & inclusion, and healthcare for communities Phase-2 Nelamangala Pilot project Additional 100 Additional support to Additional support for rural road infrastructure implementation on meritorious women 4,500 children mid
Slide 16: Financial highlights
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Slide 17: Consistent track record
— Consistent track record YoY comparison • Consistent double-digit order growth over the last quarters • Double digit revenue and profitability growth maintained across Earnings per share FCF conversion to net income most business divisions 500 300% 17.47 442 17.08 16.29 363 380 375 250% • Free cash
Slide 18: Executive summary
— Executive summary Steady gains: charting growth trajectory INR crores Change vs Change vs Change vs Q3 2023 Performance Indicator Q4 2023 Q4 2022 CY 2023 CY 2022 Q3 23 Q4 22 CY 22 3,004 +5% Total Orders Received 3,147 2,335 +35% 12,319 10,028 +23% 8,008 +5% Order Backlog (end of period) 8,404 6,46
Slide 19: Financial summary (INR Crores)
— Financial summary (INR Crores) Quarter ended on Quarter ended on Quarter ended on Year ended Year ended 31.12.2023 30.09.2023 31.12.2022 31.12.2023 31.12.2022 Crs % Crs % Crs % Crs % Crs % INCOME ` ` Revenue from Operations 2,757.5 100.0 2,769.2 100.0 2,426.9 100.0 10,446.5 100.0 8,567.5 100.0 Oth
Slide 20: Steady profits, delivering growth
— Steady profits, delivering growth PBT Bridge EBITDA 500 439 18% 417 16% 400 364 349 14% 300 285 12% 10% Higher profitability 200 169 201 188 199 211 8% driven by : 23 132 6% 155 45 100 95 4% • capacity utilization 41 8 2% 0 0% • revenue mix Q2/21 Q4/21 Q2/22 Q4/22 Q2/23 Q4/23 • price realization E
Slide 21: Electrification
— Electrification INR crores (+24%) (+19%) 1,335 1,130 Orders Received 999 1,006 1,042 • Growth across major segments and channels 1,100 1,032 1,037 950 860 • Project and system related orders • Key orders from data centers, OEMs, major Orders metals and energy players Revenues Received Revenues Q4/
Slide 22: Motion
— Motion INR crores (+82%) (-2%) 1,417 1,400 Orders Received 972 981 1,216 1,126 935 917 915 • Large order for traction converter • Increasing penetration to Tier II & III cities 770 Orders Revenues Revenues Received • Efficient capacity utilisation • Strong backlog conversion in drives systems & Q4
Slide 23: Process Automation
— Process Automation INR crores (-25%) (+23%) Orders Received 784 676 631 • Orders from power, metal, logistics 695 622 511 510 529 420 • Surge in service orders 463 Orders Received Revenues Revenues • Higher execution of order backlog • Continued contribution from export revenue Q4/22 Q1/23 Q2/23 Q
Slide 24: Robotics and Discrete Automation
— Robotics and Discrete Automation INR crores (-53%) (+71%) 156 123 Orders Received 118 120 108 • Strong inflow from automotive sector, 116 electronics, along with service orders 63 68 61 57 Revenues Orders Revenues • Higher revenue from execution of paints order Received Q4/22 Q1/23 Q2/23 Q3/23 Q4/
Slide 25: Well-structured, diversified business model
— Well-structured, diversified business model Channels Offering Geography 11% 11% 12% 9% 11% 12% 10% 10% 11% 10% 12% 10% 10% 12% 11% 11% 11% 13% 12% 14% 39% 39% 41% 43% 89% 90% 88% 90% 76% 76% 78% 76% 39% 39% 40% 34% Q4/22 Q4/23 CY/22 CY/23 Q4/22 Q4/23 CY/22 CY/23 Q4/22 Q4/23 CY/22 CY/23 Direct Sale
Slide 26: Factors propelling growth in 2024
— Factors propelling growth in 2024 Growth trend expected to remain healthy; fueled largely by capital and efficiency Key Growth Drivers Key factors to monitor Investments growth hinges on private Domestic Economic Strain due to high sector uptick alongside public sector inflation & higher lending r
Slide 27: February 20, 2024 Slide 26
February 20, 2024 Slide 26