Slide 1: Q3 2019 results
— ZURICH, SWITZERLAND, OCTOBER 23, 2019 Q3 2019 results Holding course in tougher markets 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: Q3 2019 results summary
— Q3 2019 results summary Orders -1% 1 Revenues steady 2 Operational EBITA Operational EPS margin +20 bps $0.33 -7% 3 PG PG sale sale impact impact (% or bps) Q3 18 Q3 19 $6.92 bn Op. EBITA recast $6.69 bn $7.10 bn $6.89 bn margin 11.5 11.7 Basic EPS recast Stranded $0.24 costs -100 -70 -15% Non-cor
Slide 4: Q3 2019 orders
— Q3 2019 orders AMEA up, Americas and Europe subdued Order development yoy Growth by region and largest 3 country markets in $ terms AMERICAS EL steady, strong growth in IA outweighed by MO, RA headwinds USA slower: weaker in MO, RA, steady in EL, up in IA USA -1% China -5% Canada +6% India +5% Bra
Slide 5: Electrification
— Q3 2019 Electrification Margin development supported by strong execution 3'750 8 6 6 6 5 16.0 5 6 4 4 3 3 14.2 2 4 13.5 13.5 2'750 1 1 12.4 2 11.7 0 1'750 -2 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 EBITA margin Target 15-19% mid-t
Slide 6: Industrial Automation
— Q3 2019 Industrial Automation Impacted by project revaluation 15 2 3 14.3 14.2 2'000 20 13.6 13.5 8 15 0 7 -1 -1 12.1 3 10 -2 5 1'500 -5 -4 0 9.0 -5 -10 1'000 -15 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 EBITA margin Target 12-16%
Slide 7: Motion
— Q3 2019 Motion Steady execution 17.8 2'000 20 12 17.3 15 10 16.7 13 15 9 9 16.3 16.4 7 6 10 5 1'500 4 3 14.9 1 5 0 1'000 -5 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 EBITA margin Target 14-18% mid-term Orders ($ mn) Orders growth (c
Slide 8: Robotics & Discrete Automation
— Q3 2019 Robotics & Discrete Automation Continued headwinds 16 8 15.2 12 20 14.9 1'000 8 4 3 10 13.1 12.9 -1 0 12.3 0 -3 -3 11.2 500 -9 -16 -10 0 -20 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 EBITA margin Target 13-17% mid-term Order
Slide 9: Q3 2019 operational EBITA
— Q3 2019 operational EBITA Operational EBITA bridge Q3 2018 to Q3 2019 ($ mn) 11.5% op. 11.7% op. EBITA margin EBITA margin +95 +2 +0 -24 -10 -48 -12 -11 814 814 806 825 Op. EBITA Net Commodities Net Invest growth, Mix/Under- Projects Other Forex Op. EBITA Q3 2018 savings volume incl. digital absor
Slide 10: Q3 2019 net income drivers
— Q3 2019 net income drivers Operational EBITA to net income walk Q3 2019 ($ mn) Key non-operational items Q3 19 Op. EBITA 806 Restructuring related includes $53 mn ABB-OS simplification PPA-related amorization 70 Power Grids related transaction and separation costs $44 mn Restructuring related 59 A
Slide 11: 2019 framework
— 2019 framework FY 2019 FY 2019 $ mn unless otherwise stated YTD YTD framework framework Corporate & Other operational EBITA ~(800) (535) Net finance expenses2 ~(170) (122) Of which, stranded costs (gross) ~(300) (225) Stranded cost elimination ~60 40 Non-operating items Effective tax rate (excl. s
Slide 12: Driving growth: Q3 highlights
— Driving growth Q3 highlights Robotics & Discrete Electrification Industrial Automation Motion Automation Leadership in co-location data Expansion in renewables Services growth in process Upgraded software solution center market industries for packaging Electrification and automation Automation sol
Slide 13: Managing the transformation
— Managing the transformation 2018 2019 2020 2021 ✓ Transformation announced ✓ ABB-OS and carve-out teams set up H1 Transaction closed; PG-JV operational ABB-OS reaches full run-rate ✓ New GBS governance established ABB-OS program ✓ New businesses operational H1 Majority of stranded costs eliminated
Slide 14: 2019 progress and outlook
— 2019 progress and outlook End-market growth estimates, short-term >3% O&G upstream Renewables Robust results in more challenging markets Mining Marine Hybrid Data centers Business and $150-200 mn ABB-OS run-rate savings on track EV infrastructure Commercial transformation buildings progress PG sep
Slide 15: Appendix
— Appendix
Slide 16: Operational EPS analysis
— Operational EPS analysis Q3 2019 Q3 2018 Change yoy1 $ mn, except per share date in $ EPS EPS Net income (attributable to ABB) 515 0.24 603 0.28 -15% Operational adjustments: Acquisition-related amortization 70 73 Restructuring, related and implementation costs2 59 37 Non-operational pension costs
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