Christian Morf, ABB Schweiz, 19.4.2012 New Business Area EV Charging Infrastructure

New Business Area: EV Charging Infrastructure Referee Introduction Christian Morf 2007 MSc in Electrical Engineering ETH 2009 start at ABB Switzerland as a Trainee Since 2011 responsible for Sales and Business Development EV charging infrastructure Swiss market April 18, 2012 Slide 2

ABB Company Introduction Power Products Power Systems Discrete Automation & Motion Low Voltage Products Process Automation $10B turnover $6,8B turnover $5,6B turnover $4,5B turnover $7,4B turnover 32.000 employees 17.500 employees 25.500 employees 20.000 employees 26.500 employees Product Group EV Charging Infrastructure April 18, 2012 Slide 3

New Business Area: EV Charging Infrastructure Presentation Overview Technology overview 5 Emergence of a new business area within ABB 10 The portfolio and its characteristics 5 The market, channels and players 10 Marketing 10 April 19, 2012 Slide 4

EV Charging infrastructure Technology & Standardisation

E-Mobility Energy efficiency and flexible choice of primary energy 4/18/2012 Slide 7

Charging technology AC and DC charging AC Charging DC Charging On-board Charger CHAdeMO module DC Fast Charging Station BMS Li-ion battery Slow (4-10 hours) Investment in each EV Fast (15-30 minutes) Investment for a fleet of EVs 4/18/2012 Slide 9

Example: Nissan Leaf (24kWh) 30-50kW DC vs. 3.7kW AC

Ladetechnologie und Standards Reichweitengewinn in km bei 30 min. Laden 300 200 100 AC Technology DC Technology 0 240V / 10-16A 400V / 16A 400V / 32A CHAdeMO DC Combo Coupler Chinese std Stecker Kommunikation ISO 15118 ISO 15118 CHAdeMO V0.9 CAN ISO 15118 / J1772 GB CAN Renault Zoe Elektroautos Praktisch alle Alle Fahrzeuge nach 2010 Deutsche / US Hersteller

Emergence of a new business area within ABB Chronology From the first ideas to the complete portfolio April 19, 2012 Slide 13

Emergence of a new business area within ABB 2008/09 Rising information demand from one of our main customer group: The utilities April 19, 2012 Slide 14

Emergence of a new business area within ABB 2009: Market analysis Elaboration of the Paper «EV charging infrastructure: ABB Switzerland market potential» Market volume estimate for 2020 Mitsubishi imiev Peugeot ion Renault Kangoo EV Renault Fluence Modelle Smart smart ed Volvo V60 VW e-up Audi A1 e-tron Erwartete Marktentwicklung Elektroautos ~50% BEV *) ~50% PHEV **) & REEV ***) Citroen C-Zero Toyota Prius Plug-in Tesla Roadster (2009) Subaru R1e Opel Ampera Nissan Leaf Fisker Karma Renault Twizzy Toyota IQ, EV Ford Connect Ford Focus Elektro Tesla Mod. S Volvo V60 Renault Zoe BMW i i3 VW Golf blue e-motion Mercedes A/B Kl. Volvo C30 BEV Endkunden ~40% privat ~30% geschäftlich ~30% privat und geschäftlich April 19, 2012 Slide 15 2010 2011 2012 2013 2020 Quellen: BCG, McKinsey, Roland Berger and Citigroup, Nationale Platform Elektromobilität (Deutschland) *) BEV: Battery Electric Vehicle **) PHEV: Plug-in Hybrid Electric Vehicle ***) REEV: Electric Vehicle with Range Extender

Emergence of a new business area within ABB 2010: First prototypes Establishment of the ABB Switzerland EV programme: Extension of the ABB fleet with EVs, Charging stations (Prototypes) for internal and public use Placement of the new business into a business unit, establishment of a new Product Group Prototypes April 19, 2012 Slide 16

ABB Switzerland Organization Status March 2012 * Member of the Country Executive Team ABB Switzerland J. Staiblin* Sales Domestic Market Power Products D. Bischofberger Power Systems L. Widenhorn Process Automation J. Staiblin Discrete Automation and Motion D. Steck Low Voltage Products F. Wentzler Finance & IS R. Kannabiran* Services Domestic Market High Voltage Products D. Bischofberger Substations R. Itschner Turbo Systems U. Gribi Power Electronics & MV Drives O. Preiss Low Voltage Products F. Wentzler Human Resources V. Stephan* Medium Voltage Products T. Lassus Transformers A. Gonzalez Power Generation H. Erb Network Management P. Hansen Minerals M. Schumacker Control Technologies W. Felber Electrical Machines J. Fleischmann Low Voltage Systems M. Gabriel Legal & Integrity B. Mrose Corporate Research W. Paul Grid Systems Semiconductors B. Eschermann Communication K. Lötscher Power Products & Power Systems M. Wüthrich Process Automation P. Lieberherr Industrial and Building Automation M. Pellin Sales Switzerland M. Wüthrich Power Products & Power Systems T. Zurflüh Process Automation A. Koch Discrete Automation and Motion J. Fleischmann Low Voltage Products M. Gabriel Service Switzerland A. Koch April 19, 2012 Slide 17

Emergence of a new business area within ABB 2011: Acquisition of a technology leader Acquisition of the start-up company «Epyon», the current leader in the field of fast charging, to accelerate the go2market New PG and PRU Headquarters, Rijswijk Netherlande Software-Entwicklungszentrum im High-Tech Campus, Eindhoven Netherlande April 19, 2012 Slide 18

Emergence of a new business area within ABB 2012: On the way to a mature and complete portfolio April 19, 2012 Slide 19

Electric vehicle charging infrastructure portfolio Hardware, software & services DC + AC Highway Charger DC + AC Commercial Charger AC Charge Pole AC Wall-box > 50 kw 20 kw 3-10 kw 3-6 kw 15-30 min. use case 30-120 min. case 4-8 h. use case 4-8 h. use case

Use cases in electric vehicle charging Different solutions for each specific use case Highway DC fast charging 15-30 minutes Commercial DC & AC charging 30-120 min. Office AC & DC charging 30-120 min. (fast) 8 hours (workday) Home AC charging 8 hours (overnight) 2 hours (top-off)

Terra 51 & 100.2 series Powerful fast charging performance for highway locations

Use cases in electric vehicle charging ABB products for the commercial and office use case Highway DC fast charging 15-30 minutes Commercial DC & AC charging 30-120 min. Office AC & DC charging 30-120 min. (fast) 8 hours (workday) Home AC charging 8 hours (overnight) 2 hours (top-off)

Terra SC: the Smart Connection Cost effective fast charger for office & commercial areas

The CMC AC charge post Elegant and robust charger for outdoor parking Type 2 Mode 3 AC charging For 4-8 hours workday or overnight charging Elegant & compact dual outlet design OCPP connectivity Product CMC AC charger AC Input, 400 VAC 10% Maximum output power Output voltage Output current RFID system Communication Protection class AC dual 11 / 22 kw 400 V 3 x 16 A / 3 x 32 A 13,56MHz, ISO 14443A CDMA / 3G / Ethernet IP54 Temperature range -30 C +50 C

Terra Charge Clusters for business fleets The benefit of one networked solution Headquarters Overall usage reporting CO2 reduction reporting Company wide access management one network Local office 1 Status & availability Configuration Local reporting Local office 2 Status & availability Configuration Local reporting

Marketing A new market is evolving: a few challenges The EV charging infrastructure market is continuously evolving Industries which had no contact before have now to work together (e.g. car OEMs and utilities) New players come up and try to find their niche The future role of the players is not defined yet and depends on the strategies of the players and the evolvement of the new market What brings revenue today might not be sustainable in the future No standardisation Difficult to anticipate the near-term development April 18, 2012 Slide 29

Marketing Our approach in Switzerland 1. Identifying all players in the market 2. Trying to estimate their role and business potential in near- and long-term 3. Grouping these players into target groups with similiar needs 4. Defining marketing mix for these TGs via the analysis of the five Ps Product, Promotion, Price, Place and People April 18, 2012 Slide 30

Marketing The market model, channels and players April 18, 2012 Slide 31

Marketing Identifying the high-priority players April 18, 2012 Slide 32

Marketing Product Core product (value): To charge a car Formal product: A suitable charging station optimized for each specific use case Extended product: Consulting, planning, safety, flexible software interface, know how for large scale installations, worldwide availability and maintenance April 18, 2012 Slide 34

Marketing Price For HW prices: Market minus Differentiation into recurring and non-recurring prices Categories Fixed price / unit and standard options HW SW Cust Proj Defined quantity discount Customer specific solutions: on a time basis Usage of standard software options: price / month Connection to customer data centers: on a time basis, non recurring Complete systems (incl. partners, ABB as main contractor): on project basis April 19, 2012 Slide 35

Marketing Place Different channels, flexibility very important No exclusivity! Direct sales Partnering Strategic sales April 18, 2012 Slide 36

Marketing Promotion Fairs Media Internet (Webpage, Ad banner, blog, social media) Brochure Common events with customers Networking Organising workshops Showroom Press releases Success stories POS Material for channel partners April 18, 2012 Slide 37

Marketing People Train all ABB internal sales force on the new portfolio which could get in contact with the TG Spread the information internally to all ABB employees as (E-)Mobility is a topic basically everybody gets in touch with April 19, 2012 Slide 38

Marketing Communication Target ABB is seen in Switzerland as an expert, partner and supplier of suitable charging infrastructure and systems for electrical and plug-in hybrid vehicles. ABB guarantees through service and maintenance a high availability for the charging infrastructure. ABB supply products, which are based on a modular concept, thus it is possible to modify the products, related to customer requirements and engineering standards. ABB is the supplier and consultant for electric vehicles charging infrastructure. Depending on the channel: ABB can handle complete projects and delivers necessary products and solutions to it. April 19, 2012 Slide 39

April 18, 2012 Slide 40 Marketing Integration of the communication strategy into the overall ABB communication Spitzentechnologie Aufgeschlossen Leidenschaftlich Effiziente Lösungen für eine dynamische Welt Energieeffizienz Zuverlässigkeit der Stromversorgung Unser Fachwissen einsetzen, um Energieerzeugung und -einsparung vernünftig zu gestalten. Mit Know-how und Innovation elektrischen Strom erzeugen und die Umweltbelastung reduzieren Qualifiziert, um Verbesserungen in der gesamten Energiekette zu erzielen Führend auf allen grossen Weltmärkten und in allen wichtigen Technologiesegmenten Einsatz für eine nachhaltige Unternehmensführung und einen veranzwortungsbewusten Umgang mit der Umwelt Lieferung zuverlässiger Energie als zentraler Katalysator für die Verbesserung des Lebensstandards Inhalt Schlüsselbotschaften Engagement etc. Industrielle Produktivität Mit unserer Anwendungserfahrung komplexe industrielle Prozesse zuverlässig und effizient gestalten Eingehende Kenntnisse über wichtige Industriemärkte,orientiert am Kundenbedarf Verpflichtung zur Erzielung echter Kapitalrenditen bei minimaler Umweltbelastung Designelemente Bilder Materialien Sprache Verhalten

New Business Area: EV Charging Infrastructure Discussion Thanks for your attention April 19, 2012 Slide 41

April 18, 2012 Slide 42