Anders Jonsson Head of ABB Robotics Division Member, ABB Group Executive Committee Robotics Overview Enhancing the ABB Global Footprint ABB Robotics Division - 1
Key Facts ABB Robotics About 4600 employees worldwide 2005 revenues $1.7 billion Key Deliverables: Industrial robots and software Standardized manufacturing cells for material handling, welding, cutting, painting, etc. Turnkey solutions in press automation, body-inwhite, paint processes, power train assembly ABB Robotics Division - 2 Product, system and asset services Customers Served: Automotive and Tier 1 suppliers General industries such as foundry, metal fabrication, plastics, electronics, consumer Over 140,000 ABB robots installed worldwide
Global resources to serve global customers Lead Centers Local Operations Factories ABB Robotics Division - 3 Committed to both established and emerging markets Large installed base drives service opportunities Revenues by region: EU 50% - NA 35% - Asia 15%
Robotics market overview Key applications: Material handling, picking, packing, palletizing, welding, painting, gluing, sealing, assembly World market $10 billion with average market growth of 5 6% Market positions 2004 Business line (Products) 1 2 3 Foundry ABB Fanuc Kuka Painting ABB Yaskawa Fanuc Plastics Fanuc ABB Kuka Metal fabrication Yaskawa ABB Fanuc ABB Robotics Division - 4 Food beverage 5% Plastic 9% Foundry 13% Other 14% Auto OEMs 23% Auto parts 36% Packaging Fanuc ABB Kuka Business line (Systems) Press automation Paint process automation Powertrain assembly 1 2 3 ABB Kuka, Fanuc, Comau Durr ABB Fanuc Krause ABB Comau Body-in-white Comau Kuka ABB End markets as percentage of 2004 revenues Source: ABB, McKinsey, IFR, Company Reports ABB has the Number One robotics market share in China
Industrial Robot Market Growth (in units) ABB Robotics Division - 5 The China robot market is developing rapidly. Year 2000 2001 2002 2003 2004 Robot units 380 700 522 1,451 3,493 Sources: United Nations Economic Commission for Europe, International Federation of Robotics
Why do customers buy robots? Reduce manual labor costs Remove operators from hazardous areas Improve process quality through application-specific expertise Other market drivers: New automotive models, improved manufacturing flexibility ABB Robotics Division - 6
ABB market offer: Robot products Robots Accessories ABB Robotics Division - 7 Software
ABB market offer: Industry specific applications Spot Welding Arc Welding Painting/Coating Cutting ABB Robotics Division - 8 Press Tending Finishing Material Handling Machine Tending
ABB market offer: robot systems for automotive 500 press automation solutions 400 body-in-white solutions ABB Robotics Division - 9 2,200 paint automation and sealing installations 150 powertrain assembly lines
Delivering results to industry s leading names ABB Robotics Division - 10
ABB China robotics casebook (1) Saic GM Wuling Automobile Co. Turnkey powertrain assembly line for light petrol engine assembly Annual production: 350,000 units Modular mechanical design for flexible production Local ABB competence includes Engineering, Purchasing and System Integration ABB Robotics Division - 11
ABB China robotics casebook (2) Shanghai Mitsubishi Elevator Turnkey system for arc welding of elevator crossbeams 1x IRB7600 +2x IRB1400 for welding 1x IRB7600 for positioning and tool changer Compact and space-efficient solution ABB Robotics Division - 12 Flexible production: more than 50 product types in 3 series
ABB China robotics casebook (3) Leading Electronics Sub Supplier Laser Welding System for ipod components ipod MP3 High strength and cosmetic properties Production:120,000 pieces per day ABB offer includes on-site technical support and training center ABB Robotics Division - 13
Why a robotics headquarters in Shanghai? Well established local ABB presence - 6 companies ABB Shanghai Transformer Co. Ltd. ABB Shanghai Motors Co. Ltd. ABB Electrical Machines Ltd. ABB Engineering (Shanghai) Ltd. ABB China Shanghai Branch ABB Lummus China Ltd. 2000 local ABB employees Shanghai is the largest city market for ABB in China Automotive Shipbuilding Harbor construction Metals Oil and Gas... ABB Robotics Division - 14 Strengthening ABB s global footprint 18,000 new robots annually for Asia through 2008* *Source: International Federation of Robotics Comparison: 2000 new robots in US during 2005
The automotive sector in China Passenger car sales in China increased 26% in 2005 to 3.1 million vehicles 84% of new-car sales to first-time buyers More than 120 vehicle plants now operating in China $25.5 billion investment in new auto manufacturing by 2007 bringing total capacity to 15 million units. ABB Robotics Division - 15 China automakers need greater efficiency and lower costs to meet the strong competition Source: Forbes Global, April 19 2004; China daily, March 18 2004; The Economist, May 10 th 2004; Business Week, March 20, 2006
Similar rapid growth in general industry sectors 2005 consumption growth selected goods and services ABB Robotics Division - 16 Source: Deutsche Bank Estimates
ABB Robotics in China Leading robotics player in China Established 1999 in Waigaoqiao Free Trade Zone Strong relationships with proven local partners Local robotics R&D center, focused on functionality, cost and simplicity ABB Robotics Division - 17 Dedicated local resources 14,000 sq. m. facility in Shanghai Plant capacity expanded to more than 1,000 robots per year More than 300 employees by the end of 2006.
Summary Robots are an important tool for improving productivity while increasing return on assets. ABB enjoys a strong market position and the largest installed base of robots worldwide Robot growth in Asia will far outpace rest of world ABB is in position to capture this opportunity, while maintaining strong support for developed markets ABB Robotics Division - 18 We remain committed to meeting mid-term targets through innovation, simplicity and cost migration