abbanalystpptmay052022 PPT PRESENATION NEW

PPT

1. —
MAY 5, 2022
—
Solid performance in an
uncertain environment
ABB India Analyst Call
Q1 CY2022

2. —
Important notices
Slide 2
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 global economic conditions, and the economic conditions
of the regions and industries that are major markets for ABB India Ltd. These expectations, estimates and projections are generally identifiable by statements containing
words such as “expects,” “believes,” “estimates,” “targets,” “plans,” “outlook,” “on track,” “framework” or similar expressions.
Therearenumerousrisksanduncertainties,manyofwhicharebeyondourcontrol,thatcouldcauseouractualresultstodiffermateriallyfromtheforward-
lookinginformationandstatementsmadeinthispresentationandwhichcouldaffectourabilitytoachieveanyorallofourstatedtargets.Theimportant
factorsthatcouldcausesuchdifferencesinclude,amongothers:
–business risks associatedwith the volatile globaleconomicenvironment and politicalconditions
–costsassociated withcompliance activities
–market acceptance ofnew productsand services
–changes in governmental regulations and currency exchange rates, and
–such other factors as may be discussedfrom timetotime in ABBIndia Ltd’sfilingswith the Securities and Exchange BoardofIndia (SEBI), including its
Annual Report
–Impact of ongoing pandemic
Although ABB India Ltd believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no
assurancethatthoseexpectationswillbeachieved.
Further,Informationsharedhereininter-aliacontainssomekeyfinancialspertainingtoABBIndia.ABBIndiabeingalistedentityisobligedbylawnotto
sharethesaidinformationtoanyone(otherthanthosewhoareinvolvedintheprocessandwhoareboundbyInsiderTradingRegulation)unlessanduntil
thefinancialsareconsideredandapprovedbyABBIndiaBoardandthereafterannouncedtostockexchangesasperthelistingobligationsentrustedupon
ABBIndia.Therefore,privytothispresentationshouldkindlyensurestrictconfidentialityoftheinformationsharedanddiscussedherein.

3. ——
ABB at a glance
ABB is a leading global technology company that
energizes the transformation of society and
industry to achieve a more productive, sustainable
future. By connecting software to its electrification,
robotics, automation and motion portfolio, ABB
pushes the boundaries of technology to drive
performance to new levels. With a history of
excellence stretching back more than 130 years,
ABB’s success is driven by about 105,000 talented
employees in over 100 countries.
ABB has been present in India for over a century and
manufacturing for more than 70 years. Today, ABB’s
operations in India are around one billion US dollars.
ABB in India has 5 manufacturing locations with an
extensive network of 21 sales office and a 750
strong partner network.

4. —
—
Business highlights

5. Slide3 1. YoYcomparable
•Strongest base order growth in the qtr
Orders +26%
1
, Revenues +21%
1
•Improved value offerings and
operational efficiencies led to
double digit PBT% (before exceptional items)
•Published the first Business Responsibility
and Sustainability Report (BRSR) 2021as
early adopters
•Solid cash position continued
—
Q1 2022 highlights

6. —
Strong business momentum
May 5, 2022 Slide 6
Market segments
Focus on channels & segments aid price realization
Short-cycle
Growth driven across most businesses
Services
Orders +19%
1
Discrete
Broad-basedordergrowth inF&B, electronics,
automotive
Process industries and optimization
Energy efficiency, management and stabilization
solutions led growth in core sectors
Orders +26%
1
Revenues+21%
1
INR crores
INR crores
1. YoYcomparable
1955
1200
1308
1470
1825
1689
1909
2243
2291
Q1/20Q2/20Q3/20Q4/20 Q1/21Q2/21Q3/21Q4/21Q1/22
1522
986
1612
1701
1629
1425
1778
2101
1968
Q1/20Q2/20Q3/20Q4/20 Q1/21Q2/21Q3/21Q4/21Q1/22
Exports
Orders +33%
1

7. —
Key milestones in Q1 2022 to accelerate ABB India’s growth
May 5, 2022 Slide 7
Rectifiers for natural resources major
System drives and motor packages for
tyreindustry
Robotics order for electronics major
Electrification panels for IT campuses
in Hyderabad
New, expanded facility for digital
substation products and systems factory
LV motors for explosive atmospheres

8. —
Slide 8
Growing exports and service portfolio
Optimizing growth in times of uncertainty
—
303.4
274.0
361.1
284.0
Orders Revenue
Services
Q1 21Q1 22
189.5
228.0
251.0
235.3
Orders Revenue
Exports
Q1 21Q1 22
Exports: Strong performance amidst global volatility Services: A steady growth driver with transforming potential
INR croresINR crores

9. —
ABB Global
2030 Targets
based on
SDGs
Evolution of the ESG framework 10 points ESG focus area
BRSR &
National ESG
requirement
ABB India
ESG focus
area
+
ABB India’s 10-point ESG Framework
Aligned with Local & global sustainability commitment
SDG : Sustainable developmentgoals
BRSR : Business Responsibility & SustainabilityReporting
Slide21
1.Green Infrastructure & siteefficiency
2.Renewable Energy & Energy
Efficiency Improvement
3.GHG EmissionReduction
4.WaterConservation
5.Product Stewardship & Lifecycle
analysis
6.Material conservation, Waste &
Circularity
7.Stakeholder engagement
(Community, Supply Chain &
Customer)
8.Innovation &Biodiversity
9.Safe & Healthy workingenvironment
10.Diversity & inclusive workforce

10. —
Green initiatives in our locations
Green
Certification
100% Renewable
Electricity (RE 100)
100% Energy
Productivity
(EP 100) target year
Waste
Recyclability
Water Net Zero/
reduction target
year
Special Initiatives
Nelamangala
100% Achieved
2026
> 90%
Net Positive
Certified
Sustainable
Packaging
Faridabad
100% Achieved
2026
> 98%
2023
Renewable Fuel
Usage
Peenya
100% Achieved
2027
> 98%
2022
Certified Single Use
Plastic Free
Nashik
100% Achieved
2026
> 97%
2023
SF6 Elimination for
GHG Reduction
100% Achieved
2027
> 98%
5% by 2024
Certified Single Use
Plastic Free
Disha Maneja
Applied for Gold
100% Achieved
2027
> 87%
2024
Bio-diversity with
60% green area

11. —
Launch and award of ABB -LPF
Women engineering scholarship
program for deserving women-
Bangalore
Focus on infrastructure upgrade, education & skilling and healthcare for
communities aligned to UN SDGs
Continued operations across
locations with the Mobile health
care unitsfor Peenya,
Nelamangala, Vadodara, Nashik &
Faridabad
Technology, need based
educational program for 98 govt.
schools in Nelamangala.National
Science Day 2022 conducted as a
part of the program
Peenya infrastructure
upgradation –Handed over to
local Govt (BBMP and Traffic
police)
Infrastructure upgradation –
Govt. Taluk Hospital,
Nelamangala Project under way
SDGs -Sustainable Development Goals

12. —
Focused growth segments contribute 85% of
our business
High Moderate Moderate -low
Renewables
Water &
Wastewater
Warehouse &
Logistics
Electronics
Food & Beverage
Pharmaceuticals
Data Centers
Railways & Metro
Power Distribution
Automotive
Buildings & Infra
Marine & Ports
Cement
Oil, Gas &
Chemicals Metals &
Mining Pulp &
Paper
Rubber & plastics
Textile
Healthcare

13. —
—
Financial highlights

14. —
Financial Performance
INR crores
Resilient performance in a challenging period
Q4 2021Performance Indicator Q1 2022 Q12021 Change CY 2021
1,936Base Orders 2,291 1,825 +26% 7,359
2,243Total Orders Received 2,291 1,825 +26% 7,666
4,912Order Backlog (end of period) 5,229 4,328 4,912
2,101Revenue 1,968 1,629 +21% 6,934
219Profit Before Exceptional and Tax (PBT) 198 129 +53% 603
10.4PBT before Exceptional % 10.1 7.9 8.7
265Profit After Exceptional and Before Tax(PBT) 491 204 +141% 724
12.6PBT after Exceptional % 25.0 12.5 10.4
194Profit After Tax (PAT) 370 151 +146% 532
9.2PAT % 18.8 9.2 7.7
2,688Cash balance 2,707 2,528 2,688
—

15. —
Financial summary
•Uptick in exports and service business
along with strong backlog execution, led
to the positive movement in revenue
•Commodity prices remain on rise due to
steady demand and disruptions to global
supply
•Increase in personnel expense on account
of salary revision
•Other expenses go up relative to revenue
•Improved profitability, margin growth
supported by quality execution
•Exceptional item pertains to profit on
sale of Turbocharger business

16. —
Electrification
Improving on a solid track record
Orders Rs 925 crore
Order Backlog Rs 1,403 crore
•Strong customer connect & segment focus
resulted in solid order booking across all
divisions
•Penetration in Tier II & Tier 3 markets
Revenues Rs 861 crores
•Higher revenues across divisions
•Strong backlog execution
PBIT Rs 118 crore
•Capacity utilization efficiencies due to
higher volume
•Better product mix and improved price
realization helped offset increase in
commodity prices
684
575
707
760
925
8%
-16%
23%
7%
22%
Q1/21 Q2/21 Q3/21 Q4/21 Q1/22
Orders received Order Growth
633
577
693
849
861
-2%
-9%
20%
23%
4%
Q1/21 Q2/21 Q3/21 Q4/21 Q1/22
Revenue Revenue Growth

17. —
Slide 17
Motion
Significant step up in exports
638
731
806
703
885
19%
15%
10%
-13%
28%
Q1/21 Q2/21 Q3/21 Q4/21 Q1/22
Orders received Order Growth
631
500
700
760
716
-3%
-21%
40
%
9%
-4%
Q1/21 Q2/21 Q3/21 Q4/21 Q1/22
Revenue Revenue Growth
Orders Rs 885 crore
Order Backlog Rs 1,970 crore
•Short cycle orders and growth through customer
engagement and penetration to tier II & III
markets
•Good contribution from Channel business,
Exports & Packaging
Revenues Rs 716 crore
•Solid conversion of order backlog
•Growth in all major divisions
PBIT Rs 95 crore
•Better product mix and improved price
realization helped offset increase in
commodity prices

18. —
Process Automation
Navigating headwinds with increased focus on service revenue and profitability
440
362
361
770
460
57%
-18%
0%
113%
-40%
Q1/21 Q2/21 Q3/21 Q4/21 Q1/22
Orders received Order Growth
326
267
340
471
342
-16%
-18%
27%
39%
-27%
Q1/21 Q2/21 Q3/21 Q4/21 Q1/22
Revenue Revenue Growth
Orders Rs 460 crore
Order Backlog Rs 1,813 crore
•Traction in steel and paint industry and
downstream units
•System orders starting to make a comeback
•Higher focus around resource efficiency, new
renewable energy models and energy transition
•Utilities focusing on energy management and
gridintegrationstability withadvanced process
controls anddigitalization
Revenues Rs 342 crore
•Strong backlog execution across all business
•Service revenues supported overall growth
PBIT Rs 35 crore
•Revenue mix, capacity utilization &
high-quality execution

19. —
Robotics and Discrete Automation
Strong orders, closely monitoring supply chain stresses
94
65
61
39
80
100
%
-31%
-6%
-36%
105%
Q1/21 Q2/21 Q3/21 Q4/21 Q1/22
Orders received Order Growth
48
89
64 54
65
12%
85%
-28%
-16%
20%
Q1/21 Q2/21 Q3/21 Q4/21 Q1/22
Revenue Revenue Growth
Orders Rs 80 crore
Order Backlog Rs 151 crore
•Service orders led by system upgrades
•Automotive segments showing signs of recovery
Revenues Rs 65 crore
•Strong backlog execution
•Supply chain headwinds
PBIT Rs 6 crore
•Better revenue mix
•Increase in input cost

20. —
Well diversified business model
Slide 20
Channels Geography Offerings
Note: Category distribution by Revenue
34% 32%
30% 34%
12%
12%
15% 12%
6% 7%
3% 3%
Q1/21 Q1/22
System Integrators Panel Builders
OEMs EPCs
Distributors Direct Sales
86% 88%
14% 12%
Q1/21 Q1/22
Domestic Export
72%
77%
17%
14%
11% 9%
Q1/21 Q1/22
Products ServicesProjects

21. — —
Outlookand
priorities
Slide15
•Flawless execution of strong Order book
•Mitigation of sensitivities on
demand/supply imbalances, elevated
commodity prices, forex volatility and
geo-political uncertainties
•Leverage positive market momentum
•Consolidate cash position
•Enhance stakeholder and customer
engagement