September 2013

Introducing ABB
ABB Group presentation
ABB Group
January 29, 2016 | Slide 1

A global leader in power and automation technologies

Leading market positions in main businesses

ABB Group
January 29, 2016 | Slide 2

145,000 employees in about 100

countries

$39 billion in revenue (2012)

Formed in 1988 merger of Swiss and

Swedish engineering companies

Predecessors founded in 1883 and 1891

Publicly owned company with head

office in Switzerland

Power and productivity for a better world

ABBs vision

As one of the worlds leading engineering companies, we

help our customers to use electrical power efficiently, to
increase industrial productivity and to lower environmental
impact in a sustainable way.

ABB Group
January 29, 2016 | Slide 3

How ABB is organized

Five global divisions

Power
Products

Power
Systems

Discrete
Automation
and Motion

Low Voltage
Products

Process
Automation

$10.7 billion
36,000
employees

$7.9 billion
20,000
employees

$9.4 billion
29,000
employees

$6.6 billion
31,000
employees

$8.2 billion
27,000
employees

(2012 revenues)

ABBs portfolio covers:

ABB Group
January 29, 2016 | Slide 4

Electricals, automation, controls

and instrumentation for power
generation and industrial
processes

Power transmission

Distribution solutions

Low-voltage products

Motors and drives

Intelligent building systems

Robots and robot systems

Services to improve customers

productivity and reliability

Power and automation are all around us

You will find ABB technology
orbiting the earth and working beneath it,

crossing oceans and on the sea bed,

in the fields that grow our crops and

packing the food we eat,
on the trains we ride and in the facilities
that process our water,
in the plants that generate our power and
in our homes, offices and factories

ABB Group
January 29, 2016 | Slide 5

Tackling societys challenges on path to low-carbon era

Helping customers do more using less
Rise in electricity demand by 2035
(under current policies)
Source: IEA, World Energy Outlook 2012

Terawatt-hour
(TWh)

+92%

34,615

30,000

2010

12,500

10,000

17,483

20,000

ABB power and automation

solutions are:

Meeting rising demand

for electricity

Increasing energy
efficiency and reducing
CO2 emissions

Improving productivity to
raise competitiveness of
businesses and utilities

2035

Electricity demand is calculated as the total gross electricity generated less own use in the production of electricity and transmission, and
distribution losses.

Improving capacity, reliability and efficiency in the grid

A pioneer in smart technologies
Challenge

ABB Group
January 29, 2016 | Slide 7

China: deliver 6,400 MW of

hydropower over 2,000 km

US: Increase capacity and

reliability for Texas utility

India: Improve reliability in

grid serving state of
Karnataka (pop. 53 million)

ABB solution

Transmission at ultrahigh
voltage

Minimal losses with direct

current solution

Worlds largest installation

enabling existing lines to
carry more power

Also enables integration

of renewable energy

Network management
with real-time control

Key building block for

smart grid

Renewable energy
Key growth driver for both power and automation

Project examples

ABB Group
January 29, 2016 | Slide 8

Generation and
transmission solutions for:

Hydro

Wind

Solar

Wave

ABB scope

Xiangjiaba-Shanghai (China)

Grid connection

Wind Capital (US)

Transformers

Totana solar (Spain)

Turnkey execution

Pelamis wave energy (Portugal)

Customized generators

Boosting productivity and energy efficiency

Example: Stora Enso, worlds biggest paper maker

Skoghall mill, Sweden:

ABB Group
January 29, 2016 | Slide 9

No. 1 maker of board for drink cartons

Two-year revamp boosted productivity

and cut CO2 by 170,000 tons/year

ABB provided key control systems:

For boiler, collecting and analyzing

data on pressure, flow, temperature,
etc. from thousands of instruments

For total control over power supply

with real-time data

Leading power systems biggest-ever transformation

Smarter, greener grid for more efficiency and reliability

ABB Group
January 29, 2016 | Slide 10

Merging power and automation

technologies makes electricity network
more reliable, flexible, secure and
efficient. Smart grid benefits include:

Lower power consumption

Greater use of renewable energy

ABBs broad offering in both power and

automation technologies positions it
uniquely to support this evolution

Transformation of grid to take place

over several decades

Ground-breaking and nation-building projects

Pushing the boundaries of technology
First commercial
wave power plant

Mine hoist for

largest potash mine

Longest underwater
power link
First platform connected
to mainland grid

Most remote offshore

wind farm linked to grid
Europes largest
thermal solar
power plant

Largest battery
Longest and highest
capacity power link
Largest SVC
installation

Longest conveyor belt

Automation of largest
alumina plant

Longest underground
power link

Largest gearless mill

drive (for crushing ore)
First 600 kV
power link
ABB Group
January 29, 2016 | Slide 11

Largest SCADA
network

Largest reverseosmosis
desalination plant

Power and automation

Substation in worlds
of largest chemical
tallest building
cellulose plant

Shaping the world we know today through innovation

Pioneering technology since 1883
Founding fathers

Steam turbine
1900

Industrial robot

Turbochargers
1920

Gas-insulated switchgear

Electrical drive
system for
locomotives

Gas
turbine
1930

1940

Gearless motor drives

HVDC
1950
1960

1970
1980
Variable-speed motor
drives

1990
ABB Group
January 29, 2016 | Slide 12

Extended control
systems

Electric propulsion
systems

2000

Ultrahigh voltage

Innovation is key to ABBs competitive advantage

Leadership built on consistent R&D investment

More than $1.4 billion invested annually in R&D

8,000 scientists and engineers
Collaboration with 70 universities

ABB Group
January 29, 2016 | Slide 13

MIT (US), Tsinghua (China), KTH Royal Institute of Technology

(Sweden), Indian Institute of Technology (New Delhi), ETH
(Switzerland), Karlsruhe (Germany), AGH University of
Science and Technology (Poland)

Fashioning the world we will live in tomorrow

Tackling challenges with customers and partners

ABB Group
January 29, 2016 | Slide 14

R&D programs focus on

incremental and breakthrough
developments to address
challenges including:

Integrating renewable power sources

into the grid

Enhancing power network efficiency,

reliability and flexibility

Improving industrial resource

efficiency and asset productivity

Optimizing flexibility and reliability

Developing sustainability of products and operations

Lowering environmental impact and costs
Sustainability in product development

Focus on resource and energy

efficiency of equipment over life cycle

Independently verified Environmental

Product Declarations for main products

Sustainability in ABBs operations

Cuts targeted in use of energy, raw

materials, hazardous substances

ABB Group
January 29, 2016 | Slide 15

eg, China: 63% cut in energy use per unit

of revenue between 2002 and 2010

People make the difference

The best want to work in a first-class environment

ABB Group
January 29, 2016 | Slide 16

ABB is one of the worlds most global companies

A culture of openness, flexibility and inclusiveness helps to

attract top performers

ABB strives for excellence in personal development,

operational execution, health and safety, business ethics

A Group-wide staff development program aims to bring a

culture of leadership to every level of the organization

Committed to the highest standards of business ethics

Integrity as bedrock of ABBs global culture
At ABB performance is measured not only by the
results achieved, but also how these results were
achieved. This is why our stakeholders can rely on
the fact that our services, operations and daily
business are based on ethical behavior.
CEO Ulrich Spiesshofer in ABBs Code of Conduct

ABB Group
January 29, 2016 | Slide 17

Code of Conduct defines relationships with all stakeholders

Employees acknowledge Code of Conduct and take

compulsory training courses

Zero tolerance toward violations

Several reporting options in place for employees to report

suspected violations; each report thoroughly investigated

A successful business and a reliable partner

Strong financial position is competitive advantage
Revenue (US$ million) by quarter and annual operational EBITDA margin

13-19% operational EBITDA

margin corridor targeted for
period 2011-2015
Q4
Q3
Q2
Q1

ABB Group
January 29, 2016 | Slide 18

Main investments 2012/13

Main acquisitions and investments

Plant expansion New plant

Switzerland
Brazil
Sweden, Italy,
USA, India,
Poland, Czech
Indonesia, Saudi
Rep., China, India, Arabia, Vietnam
New Zealand,
Germany, Bulgaria

2012
Newave, Thomas
& Betts, Tropos,
RGM, Bob White
Electrix / L.E.
Jarvis

2013
APS Technology
Group, Dynamotive,
Newron Systems,
Power One

Well-balanced business and geographic portfolio

Capturing growth opportunities, wherever they arise
Orders by division

Orders by region

% of total orders 2012 (non-consolidated)

Process
automation

Low
voltage
products

Discrete
automation
and motion

ABB Group
January 29, 2016 | Slide 19

Share of employees

% of total orders 2012

Power
products

Middle East
and Africa

2012

Europe
Emerging
44%
markets

America
s

Mature
markets

Power
systems
Asi
a

56%

Innovation, passion and diversity are hallmarks of ABB

As a global leader in power and
automation technologies, ABB is
continuously pioneering reliable, cleaner
and more efficient energy and automation
solutions, helping its customers increase
the productivity of their industrial and
infrastructure operations.

CEO Ulrich Spiesshofer

ABB Group
January 29, 2016 | Slide 20

 ABB Group
January 29, 2016 | Slide 21