Slide 1: Presentation to Analysts cover letter
REF:INABB:STATUT:LODR:R30:ANLST-PPT: February 10, 2022 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: Strong growth in Q4, 21 supports solid CY 2021 performance
— FEBRUARY 10, 2022 Strong growth in Q4, 21 supports solid CY 2021 performance ABB India Ltd Analyst Call Q4 and full year CY2021
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: Business highlights
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Slide 5: Q4 2021 highlights
— Q4 2021 highlights Flags off ‘Energy Efficiency Movement’ and highlights • Strong performance across all key the importance of industrial energy parameters despite covid disruptions efficiency Won large order for automation systems • Demand revival driving strong order for second largest lube plan
Slide 6: Delivering consistent profitable growth
— Delivering consistent profitable growth Q4/21 Q4/21 CY21 Particulars vs Vs vs Q4/20 Q3/21 CY20 Orders +53% +17% +29% Revenues +24% +18% +19% PBT before excep/one-off +27% +32% +78% PBT +231% +60% +138% PAT +213% +61% +131% 1. Management estimates.
Slide 7: Strong quality demand growth supported by margin improvement
— Strong quality demand growth Orders +29%1 INR crores supported by margin improvement Short-cycle Steep growth across most businesses 7666 6729 6970 5784 5932 Market segments Focus on channels & segments aid price realization CY'17 CY'18 CY'19 CY'20 CY'21 Systems and service Orders make a come-back
Slide 8: ABB India – 2021 was marked by strategic partnerships and key order wins
— ABB India – 2021 was marked by Strategic Partnerships and key order wins to accelerate ABB India’s growth ABB India provides Electrification, Drives & Automation solutions to ABB drives enhance safety and energy efficiency at Bharat Biotech’s world’s longest conveyor systems Covaxin manufacturing
Slide 9: ABB India – 2021 was marked by strategic partnerships and key order wins
— ABB India – 2021 was marked by Strategic Partnerships and key order wins to accelerate ABB India’s growth ABB reaches cumulative 5GW milestone in delivering solar plant ABB India joins hands with Lila Poonawalla Foundation to build automation solutions in India future women leaders in technology A
Slide 10: Growing exports and service portfolio
— Growing exports and service portfolio Optimizing growth in times of transformation Exports: Strong performance amidst global volatility Services: A steady growth driver with transforming potential INR crores INR crores Exports Services 3674 2863 2750 3225 2906 2215 2700 1451 Orders Revenue Orders
Slide 11: Sustainability in practice
— Sustainability in practice Driving sustainability to the last mile Sustainability milestones Sustainable Business Model (WIP) Phase 1 Safety - 98.1% Green Factory Buildings of hazards resolved, “Don’t look the other way” Green factory building roadmap Water - 25% Parameters considered in phase-1 •
Slide 12: Sustainability in practice
— Sustainability in practice Driving a sustainable business model with green infrastructure Improved business efficiency by optimizing usage of water & energy and ~5000 ABB products & intelligent BMS at ABB HQ, ~30% more energy demonstrating product excellence with remote monitoring @ water positive
Slide 13: Sustainability in practice
— Sustainability in practice Extending support to communities and addressing Sustainable Development Goals COVID – Continued focus on prevention and support Regular Governance CSR support Vaccination for ecosystem Peenya Public road and infrastructure Launch of partnership with Gharkul Parivar upgra
Slide 14: Massive capex push by government to support growth
— Massive capex push by government to support growth ABB’s identified high growth areas partnering India’s growth story Proactive measures lead to order wins in high growth areas Growth drivers announced in budget for future growth • Capex - outlay for capital expenditure increased by 35.4% from pre
Slide 15: Financial highlights
— — Financial highlights
Slide 16: Financial Performance
— Financial Performance Remarkable growth in Q4/21 supports solid CY 2021 performance INR crores Q3 2021 Performance Indicator Q4 2021 Q4 2020 Change CY 2021 CY 2020 Change 1,909 Orders Received 2,243 1,470 +53% 7,666 5,932 +29% 4,765 Order Backlog (end of period) 4,912 4,114 4,912 4,114 1,778 Reven
Slide 17: Financial summary
— Financial summary • Uptick in exports and service business along with strong backlog execution, led to the positive movement in revenue • Commodity prices • Improved profitability, margin growth supported by quality execution Slide 16
Slide 18: Electrification
— Electrification Improving on a solid track record 23% 28% 20% 23% 9% 8% 7% -9% -2% 849 -16% 760 684 707 647 693 631 575 577 633 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Orders received Order Growth Revenue Revenue Growth Orders Rs 760 crore, (CY’21 – Rs 2,725 crore) Revenues Rs
Slide 19: Motion
— Motion Significant step up in exports 40% 19% 15% 10% 9% 3% -3% -3% 806 760 731 703 700 638 648 535 -13% - 631 21% 500 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Orders received Order Growth Revenue Revenue Growth Orders Rs 703 crore, (CY’21 – Rs 2,878 crore) Revenues Rs 760 crore
Slide 20: Process Automation
— Process Automation Strong profitability improvement 113% 39% 27% 57% 770 5% 471 2% 440 0% 387 -16% 340 -18% -18% 280 361 362 326 267 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Orders received Order Growth Revenue Revenue Growth Orders Rs 770 crore, (CY’21 – Rs 1,933 crore) Revenue
Slide 21: Robotics and Discrete Automation
— Robotics and Discrete Automation Backlog execution to support growth 85% 100% 12% 42% 94 -6% -4% 89 -28% -16% -31% 61 47 -36% 43 48 65 39 54 64 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Orders received Order Growth Revenue Revenue Growth Orders Rs 39 crore, (CY’21 – Rs 259 crore)
Slide 22: Well diversified business model
— Well diversified business model Channels Geography Offerings 3% 4% 6% 7% 7% 12% 13% 9% 10% 8% 15% 16% 15% 14% 23% 27% 88% 87% 75% 75% 46% 40% CY'20 CY'21 CY'20 CY'21 CY'20 CY'21 System Integrators Panel Builders Domestic Export Products Services Projects OEMs EPCs Distributors Direct Sales Februar
Slide 23: 2022 in focus
— 2022 in focus — — — — Health and safety Flawless Deeper and Leverage including Covid execution innovative positive market management of strong customer momentum Order book connect — — — — Focus on high Steady Managing Further growth sectors margin risks consolidate and govt capex improvement cash
Slide 24: Writing the future: together
— Writing the future: together February 10, 2022 Slide 23