Slide 1: ABB Q2 2013 results
July 25, 2013 ABB Q2 2013 results Joe Hogan, CEO Eric Elzvik, 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 gl
Slide 3: Q2 2013: Improved results on a balanced portfolio
Q2 2013: Improved results on a balanced portfolio Revenues & earnings up despite uncertain market Growth Revenues up on balanced backlog across industries, cycles, geographies Positive orders in key markets (e.g., construction, automotive, China, Germany) Realignment in Power Systems, timing o
Slide 4: Key figures for Q2 2013
Key figures for Q2 2013 Q2 2013 performance Q2 2013 Q2 2012 Change in US$ Change in local US$ millions unless otherwise indicated currencies -8% Orders 9’312 10’052 -7% (organic1: -11%) Order backlog (end June) 28’292 29’070 -3% -2% +6% Revenues 10’225 9’663 +6% (organic1: +2%) Operational EBITDA 1’
Slide 5: Mixed picture across geographies in Q2 2013
Mixed picture across geographies in Q2 2013 Large order timing impacted all regions Order growth in selected countries, Q2 13 vs Q2 12 (in local currencies) Europe Automation -1% -4% Power -9% Germany +9% France +13% Sweden +6% United Kingdom -7% Italy -3% Automation +3% Russia -3% Americas (excl. T
Slide 6: Selective customer investments continued
Selective customer investments continued Upgrading existing assets, targeted capex spend Automotive robotics orders (UK, Sweden, China) Offshore oil safety and automation system upgrade (Norway) Energy-efficient propulsion solutions for rail (Russia) Substation and utility communications sol
Slide 7: ABB to build world's largest nationwide network of EV fast-charging stations in the Netherlands
ABB to build world’s largest nationwide network of EV fast-charging stations in the Netherlands >200 electric vehicle fast-charging stations Able to charge in 15-30 minutes Value-based services for uptime and reliability management Cloud connectivity allows user-friendly payment Compatible
Slide 8: Q2 2013 divisional growth overview
Q2 2013 divisional growth overview Orders reflect selectivity & capex trends; revenues up on backlog execution Change vs Q2 12 Change vs Q2 12 in US$ millions Orders in local currencies Revenues local currencies Discrete Automation and 2’392 -2% 2’362 -1% Motion Low Voltage Products 1’980 19% 1’929
Slide 9: Q2 2013 divisional earnings overview
Q2 2013 divisional earnings overview Delivering on target across the portfolio Change vs Q2 12 Change vs Q2 12 in US$ millions Op EBITDA in US$ Op EBITDA margin percentage points Discrete Automation and 428 -4% 18.1% -0.7 Motion Low Voltage Products 367 28% 19.0% +1.1 (Organic) 251 10% 19.4% +1.7 Pr
Slide 10: Operational EBITDA bridge
Operational EBITDA bridge Factors affecting operational EBITDA Q2 2013 vs Q2 2012 US$ millions +$126 +$57 1,561 1,471 +$22 -$41 1,504 Mix -$74 T&B Net volume Other Incremental Net savings Positive volume change vs Q2 Project costs, 2012 Cost savings impact of $96 forex, other provisions of $260 mill
Slide 11: Operational EPS analysis
Operational EPS analysis Q2 13 Q2 12 US$ millions, except per share data in US$ EPS EPS change2 Net income (attributable to ABB) 763 0.33 656 0.29 16% Restructuring and restructuring-related 25 12 expenses1 Acquisition-related expenses 20 65 and certain non-operational items1 FX/commodity timing dif
Slide 12: Thomas & Betts update: Another solid contribution
Thomas & Betts update: Another solid contribution Integration on track Q2 stand-alone vs. year-earlier period 2% revenue growth on full-quarter basis Contributed ~$640 mill in revenues, ~$115 mill in op EBITDA and ~$90 mill in cash from operations Q2 operational EBITDA margin 18.2% Integra
Slide 13: Lower cash generation mainly in Power Systems
Lower cash generation mainly in Power Systems Solid cash in majority of portfolio Cash from operating activities Underlying cash generation solid Q2 13 vs Q2 12 US$ millions PS down ~$150 million on timing of project payments and repositioning outflows 902 Net working capital at 17.5% of 816 D
Slide 14: Mid-term demand outlook
Mid-term demand outlook Large order timing uncertain, short-term focus on positive early-cycle trends Americas Europe Asia Industrial demand soft Utility spending remains low Power Continues to outgrow but still positive Industrial demand varies world GDP >2x Grid upgrades continue widely
Slide 15: Outlook for the remainder of 2013
Outlook for the remainder of 2013 Mixed macro trends ahead Growth Long-term growth drivers intact: Industrial productivity, energy efficiency Market uncertainty continued; large order delays likely to continue Positive early-cycle signals, situation remains volatile Execution Leverage strong
Slide 16: Power and productivity for a better world
Power and productivity Ah [a i> for a better world™ PF = Ub UD
Slide 17: Balanced business and geographic portfolio
Balanced business and geographic portfolio Orders by division Q2 2013 Orders by region Q2 2013 Non-consolidated Middle East Power Discrete and Africa Systems Automation 13% 10% 24% and Motion 34% Europe Asia 27% Power 26% Low Voltage Products 19% Products 18% 29% Process Americas Automation Chart 17
Slide 18: Orders and revenues by region and division Q2 2013
Orders and revenues by region and division Q2 2013 Regional share of total orders and revenues by division US$ 3% 7% 8% 13% 10% 7% 22% 27% 31% 32% Orders 38% 23% 37% 23% 39% 27% 31% 30% 24% 34% 33% 37% 30% 23% 39% 28% 19% 18% 32% 32% 20% 28% 27% Discrete Automation Low Voltage Process Power Products
Slide 19: Order backlog by division
Order backlog by division Order backlog (end June) Q2 2013 Q2 2012 Change % US$ millions US$ Local currencies Discrete Automation and Motion 4‘481 4‘567 -2% -2% Low Voltage Products 1'289 1'082 19% 20% Process Automation 6’361 6'417 -1% 0% Power Products 8’578 8’692 -1% -1% Power Systems 10’598 11’5
Slide 20: For more information, call ABB Investor Relations
For more information, call ABB Investor Relations Or visit our website at www.abb.com/investorcenter Name Telephone E-mail Zurich, Switzerland 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 3