April 2016 ABB in Norway Power and productivity for a better world Slide 1
ABB today A global leader in power and automation technologies What (Offering) Power ~ 40 % of revenue Power & Automation Automation ~ 60 % of revenue For whom (Customers) Utilities Industry Transport & Infrastructure ~ 35 % of revenue ~ 45 % of revenue ~ 20 % of revenue Where (Geographies) Globally AMEA 1 37 % Americas 30 % Europe 33 % ~ $36 bn revenue ~ 100 countries ~ 135,000 employees Single A credit rating HQ Zurich Slide 2 1 Asia, Middle East, Africa
ABB in Norway today Demand market What (Offering) Power ~ 55 % of revenue Power & Automation Automation ~ 45 % of revenue For whom (Customers) Utilities Industry Transport & Infrastructure ~ 50 % of revenue ~ 40 % of revenue ~ 10 % of revenue Where (Geographies) Norway From Norway 60 % From rest of the world 40 % ~ NOK 10 billion orders ~ 13 locations ~ 2,300 employees Single A credit rating HQ Billingstad Slide 3
ABB technology All around us orbiting the earth and working under the surface crossing oceans and on the sea bed in fields where we grow crops, and packaging our food in transport and infrastructure in power plants and in homes, offices and factories Slide 4
Well positioned in attractive markets Long-term market growth drivers intact Power & Automation Utilities Industry Transport & Infrastructure Renewables Grid automation / digitalization Microgrids Smart upgrades Electrification penetration Energy storage Productivity Energy efficiency Automation penetration Internet of Things, Services and People Power quality / reliability Emerging markets Urbanization Data management Electric transport Energy efficiency Power quality / reliability Decentralized power generation Power & Automation for the grid Power & Automation for the site Slide 5
Serving key global trends Big shifts in power & automation Big shift in power Big shift in automation Generation mix Things Services Power transmission and distribution Internet of People Micro- / Nanogrids Slide 6
Executive Management Team ABB in Norway Steffen Waal Managing director ABB AS Pål Morstad Finance and Control Kari Wold-Hansen Human Resources Kjerstin Bull-Berg Legal and Integrity Helene Gunther Merg Communications Arne Klette Business Development and Special Projects Jan Petter Abrahamsen Electrification Products Ken Isaksen Electrification Products, Medium Voltage Products Lars-Fredrik Mathiesen Discrete Automation and Motion, Drives and Controls Borghild Lunde Process Automation, Oil, Gas and Chemicals Sindre Sætre Gøran Salomonsen Process Power Grids, Automation, Transformers Marine and Ports Helge Bjørsvik Service Steffen Waal Marketing and Sales Slide 7
Facts about ABB - 2015 Core business is organized in four divisions Revenues ABB in Norway: NOK 8.8 billion Orders ABB in Norway NOK 9.7 billion Number of employees in Norway: about 2,300 Revenues ABB Group: $ 35.5 billion Orders received ABB Group: $ 36.4 billion Number of employees ABB Group: about 135,000 Slide 8
Geographical distribution of employees in Norway December 31, 2015 Number of employees 2324 Harstad 9 Hammerfest 15 Trondheim 16 Stord 59 Bryne 68 Stavanger 88 Ulsteinvik/Ålesund 91 Drammen 104 Billingstad, Asker 303 Bergen 409 Skien 548 Oslo 614 Slide 9
Factories and workshops Electrification Products Discrete Automation and Motion Medium voltage products, Skien Low voltage products, Skien and Bergen Turbocharger service, Oslo Marine drives factory, Ulsteinvik Transformer repair workshop, Drammen In addition: project work at client sites on-/offshore Process Automation Power Grids Slide 10
Electrification Products Division Offering Products and solutions suitable for multiple lowand medium-voltage electrical applications from residential home automation to industrial buildings, including modular substation packages, distribution automation products, switchgear, circuit breakers, measuring and sensing devices, control products, wiring accessories, and enclosures and cabling systems designed to ensure safety and reliability. Customers Distributors, installers, panel builders, OEMs, system integrators, contractors, architects and end users. Key fact ABB ships over one million products to customers worldwide every day. Slide 11
Discrete Automation and Motion Division Offering Motors, generators, drives, mechanical power transmission, robotics, wind converters, solar inverters, voltage regulators, rectifiers, UPS systems, excitation systems, traction converters, fast DC chargers. Customers Manufacturers, OEMs in a variety of industries and utilities, process industry end users and transportation and infrastructure operators. Key fact ABB is the world s largest supplier of industrial electric motors and drives. Slide 12
Process Automation Division Offering Products, systems and services designed to optimize the productivity of industrial processes. Solutions include turnkey engineering, control systems, measurement products, life cycle services, outsourced maintenance and industry specific products (eg, electric propulsion for ships, mine hoists, turbochargers and pulp testing equipment). Customers Process industries such as oil and gas, petrochemicals, mining, metals production, marine, pulp and paper, and cement. Key fact ABB delivered the world s first power-fromshore solution for an offshore rig. Slide 13
Power Grids Division Offering Power Grids offers power and automation products, systems and service solutions across the generation, transmission and distribution value chain. Its offering includes transformers, high-voltage products, power transmission systems, and grid integration and automation solutions to enable a stronger, smarter and greener grid. Customers Power generation, transmission, distribution and other utilities; industries across the spectrum, transportation and infrastructure customers, and commercial enterprises. Key fact ABB is the world s largest supplier of transformers pushing the voltage record levels and is also a leader in high-voltage products and substation solutions.. Slide 14
Services across the entire value chain Long-term commitment to maintain your assets Rapid response Lifecycle management Operational efficiency Performance improvement Repairs Spares and consumables Replacement Training Service agreements Installation and commissioning Maintenance Extensions, upgrades and retrofits Replacement Training Spares and consumables End of life services Service agreements Engineering and consulting Maintenance Advanced services Extensions, upgrades and retrofits Training Service agreements Advanced services Engineering and consulting Extensions, upgrades and retrofits End of life services Service agreements Planning partner Product, solutions, systems provider Operations partner Slide 15
Shaping the world through innovation Consistent R&D investment +$1.5 bn Investment annually ~ 8,500 Technologists ~ 70 University collaborations 7 Corporate research centers linked by a global research center Innovation is ingrained in the DNA of ABB Slide 16
Research and development in Norway Research departments in Oslo, Bryne and Skien R&D oil, gas and chemicals The strategic R&D group for oil, gas and chemicals in Oslo focuses on technology driven innovation primarily in automation. R&D paint robots The research department at Bryne focuses on research and development of paint robots and related technologies. R&D medium voltage products ABB s center for reseach and development of medium voltage switchgear in Skien is one of several such centers in ABB and consists of about 40 engineers focusing on development and testing. Slide 17
Committed to sustainability Economic success, environmental stewardship, social progress Example 445 TWh* energy saved by ABB drives $ 9 million spent on community projects in 2014 5.2 million m 3 of water saved through reuse and recycling 200+ energy efficiency projects under way in 2014 Running the world without consuming the earth Slide 18 * Terrawatt-hours
Committed to the highest standards of business ethics Integrity as the bedrock of ABB s culture Basic principles Integrity is a basic building block of a world-class business It is a core value at ABB, along with safety No acceptance of business, if it means engaging in unethical practices or putting people at risk Code of Conduct Our Code of Conduct defines ABB s relationships with all of its stakeholders Employees must sign the Code of Conduct and attend compulsory training courses Zero-tolerance policy towards violations Basic principles and Code of Conduct Several reporting options in place for employees to report suspected violations; every report is thoroughly investigated Company motto: Don t look the other way! Slide 19
People make the difference The best want to work in a first-class environment ABB is one of the world s most global companies ABB attracts top performers due to its inclusive culture ABB strives for excellence in integrity and social responsibility ABB aims for a culture of leadership at every level A better world begins with you Slide 20
ABB vision Power and productivity for a better world Power A leader in addressing power infrastructure and control needs for utilities, industry and transport & infrastructure Productivity A leader in operational asset effectiveness uptime, speed, yield and efficiency Better world Contributing to decoupling growth from environmental impact Less energy per unit GDP Less pollution per unit energy Slide 21