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BENGALURU, INDIA | MAY 13, 2024 | SANJEEV SHARMA, CMD & TK SRIDHAR, CFO

Q1, 2024 results

Solid start for the year – strong growth in orders &
revenues, margin expansion with cash accretion
ABB India Analyst Call | Q1 CY2024 | January – March 2024
© 2022 ABB. All rights reserved.
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Important notices

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 Ltd. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects,”
“believes,” “estimates,” “targets,” “plans,” “outlook” or similar expressions.
There are numerous risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially
from the forward-looking information and statements made in this presentation and which could affect our ability to achieve any or all of
our stated targets. The important factors that could cause such differences include, among others:
• business risks associated with the volatile global economic environment and political conditions
• costs associated with compliance activities
• market acceptance of new products and services
• changes in governmental regulations and currency exchange rates, and
• such other factors as may be discussed from time to time in ABB India Limited’s filings with the Securities and Exchange Board of
India (SEBI), including its Annual Report.
Although ABB Ltd believes that its expectations reflected in any such forward-looking statement are based upon reasonable
assumptions, it can give no assurance that those expectations will be achieved.

May 14, 2024 Slide 2 © 2022 ABB. All rights reserved.

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ABB in India at a glance
ABB Group
ABB is a technology leader in electrification and automation, enabling a more
sustainable and resource-efficient future. The company’s solutions connect
engineering know-how and software to optimize how things are manufactured,
moved, powered, and operated. Building on over 140 years of excellence, ABB’s
more than 105,000 employees are committed to driving innovations that
accelerate industrial transformation.

ABB in India
ABB is present in India for over a century and manufacturing for 74 years. The
manufacturing unit is a listed entity. It operates with the entire eco-system of
ABB R&D and Services.

Electrification Motion Process Robotics &

Distribution Solutions Drive Products Automation Discrete
Smart Power System Drives
Smart Building Service
Energy Industries Automation
Process Industries Robotics
Installation Products NEMA Motors Marine & Ports
Service IEC LV Motors Machine automation1
Measurement &
EV Large Motors & Analytics
Generators
Traction 5 Manufacturing
locations 28 Sales Offices
1 – Machine Automation division is not part of ABB India & is run separately out of ABB B&R 25 Plants 750+ Partners
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Business highlights
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Q1 2024 highlights
Orders +15%1 underlining the success of ABB India’s
multi-division portfolio

Revenue +28%1 driven by a strong backlog & conversion

from book-to-bill

PAT +87%1 due to capacity leverage and cost

optimisation

Robust cash position at INR 5,036 crore

88% reduction in greenhouse gas emission (scope 1 and

2) at own operation as compared to baseline year of 2019

Water positive operations for half of ABB India’s

campuses

Launched compact drive ACH180, catering to the HVACR

equipment sector
1. YoY comparable
© 2024 ABB. All rights reserved.
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Positive market momentum across Orders (+15%)1 INR crores

segments 80% 3,607 4,000

3,125 3,044 3,004 3,147 3,500

Orders 60% 2,767 2,634 3,000
Healthy mix of short and long cycle opportunities 2,291 2,335 2,500

40% 2,000

Export 1,500

Orders +23%1 20% 1,000

500

0% 0
Discrete Q1/22 Q3/22 Q1/23 Q3/23 Q1/24
Continued momentum in automotive sector,
Orders YoY Growth %
electronics
Process
Strong demand from energy industry, metals & mining

Data Centers Revenues (+28%)1 INR crores

Market uptake for distribution solutions, smart power 60% 3,080
3,500

2,769 2,757 3,000

2,427 2,411 2,509
2,500
Transport 40% 2,053 2,120
1,968
2,000
Demand for propulsion technology for railways and electrification for
1,500
metros
20%
1,000
Tier II & Tier III Markets
Increased market penetration through accessible solutions 500

0% -
Q1/22 Q3/22 Q1/23 Q3/23 Q1/24

Order backlog grew +25%1 to INR 8,935 crore Revenue YoY Growth %

1.YoY comparable
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Proven capabilities leading to significant wins

Compact substations, smart power Robotics solutions for primary, secondary System Drives order for a global metal
products, MV switchgear for a large data and end of line packaging solutions major product manufacturer
center project for F&B segment

Robotics solutions for electronics in Low voltage motors for a range of pump PA solutions for remote terminal unit, leak
consumer goods & mobile phone assembly manufacturing, water solutions and detection system and SCADA for brown
engineering companies field project of an energy major
© 2022 ABB. All rights reserved.
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Continuous customer engagement
Diverse segments, deeper coverage

Value Provider Conference Retailers Meet in Bangalore & Technology Day for cold storage
by Robotics Navi Mumbai by Electrification industry, Aligarh by Motion
Smart Power and Smart Building

Technical Seminar for steel Service Camp for a tyre Training sessions, Punjab for
major in Asansol Electrification manufacturer in Trichy by Motion Paper & Metals Industry by Motion

© 2022 ABB. All rights reserved.

Diverse businesses catering to
23 market segments
Focus Enhance Sustain

Data Centers Renewables Textile

Railways & Metro Automotive Marine & Ports

Electronics Warehouse & Rubber & Plastics

Logistics Metals & Mining

Water & Wastewater Oil, Gas and

Building & Chemicals

Infrastructure Pharma & Healthcare

Power Distribution Pulp & Paper

Food & Beverage Cement

High Growth Moderate Growth Moderate-Low

Growth
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Theme for the quarter
Buildings & Infrastructure: a deep-dive

Segment Insights Key Drivers & Trends

• Buildings & Infrastructure Industry in India expected to reach • Need for Affordable Houses: By 2030, more than 40% of our
$1.4 Tn in medium term at a CAGR of ~9% population expected to live in urban India creating a demand
• Infrastructure development in areas of smart cities, roads, for 25 Mn additional affordable houses
waterways, ports among others • Adoption of Green Building Solutions: Use of green building
• Categorization of Buildings: materials, energy efficient HVAC and lighting systems
Residential buildings Commercial buildings Industrial buildings
• Technology/AI Shaping the Industry: Techniques such as
prefabricated buildings, building information modelling etc.

• Proactive Government Policies & Support

Offices and public

• PMAY: Housing for all – 2 crore houses in next 5 years
Transportation
Hospitality Healthcare buildings buildings • PM GatiShakti fueled by $1.5 trillion National Infrastructure
Pipeline till FY25 to improve multimodal connectivity
• 100% FDI permitted under automatic route

ABB’s offerings include LV & MV Switchgear, Building Automation, Switches, Wiring Accessories, Drives & Motors, Digital Power Train,
Port Infrastructure Solutions
May 14, 2024 Slide 10 © 2022 ABB. All rights reserved. Source: IBEF, Invest India ; PMAY: Pradhan Mantri Awas Yojana
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Sustainability in practice
Tracking our green goals: Q1 FY24 progress

By 2024 By Q1’24
(plan) (actual)

Scope 1&2 GHG Emissions* 88% 88%*

Water recyclability ~45% ~37%

Water positive unit 4 3

Zero Waste to Landfill unit

2 1
(No.)

* Compared to 2019 baseline and all figures are on a cumulative basis

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Care: Performance with Purpose
Focus on local development, education, diversity & inclusion, and healthcare for communities

Phase-2 Nelamangala rural Science competitions for Special school to mainstream Inauguration of the
road infrastructure National Science day 2024 children with special needs pediatric OPD at Municipal
upgradation hospital, Delhi, supported
by ABB

May 14, 2024 Slide 12 © 2022 ABB. All rights reserved.

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Summary
Aligning with India’s growth and global shifts

Domestic demand and elections Energy access and transition

Cautiously optimistic – in short run, moderation Energy demand expected to grow by ~50% over next
expected especially in large capex & channel spend decade; est. 2/3rd of India’s energy mix

Demographic and social change Global offshoring

By 2030, India’s overall consumption could more Manufacturing share of GDP expected to rise from
than double as income distribution in the country 15.6% currently to 25% by 2025; develop focused
shifts. However inflation can soften the spend sectors for exports
potential

Private capex Technological advancements

Significant private investment in areas like data Robotics could reduce India’s relative cost
centre, automation, industrial automation, advantage over developed economies by 4-5% over
metals & mining, PLI-led capex a decade

Source: Mckinsey, BCG, Bain reports, internal assessments

© 2022 ABB. All rights reserved.
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Financial highlights
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Performance Overview Q1 2024 All figures in INR Crores

First time – Revenue crosses INR 3000 Cr, PAT 15%, Cash 5k+ Cr Key Highlights
• Orders: Momentum in base orders
Full year Actual Actual Actual Change vs Change vs continued. Large value orders received
Performance Indicator
2023 Q1 23 Q4 23 Q1 24 Q1 23 Q4 23 from Data center segment
10,999 3,125 2,547 Base Orders Received 3,234 3% 27%
1,320 - 600 Large Orders Received 373 • Revenues: Driven by a strong backlog &
12,319 3,125 3,147 Total Orders Received 3,607 15% 15% conversion from book-to-bill, revenues
increased across all business divisions.
8,404 7,170 8,404 Order Backlog (end of period) 8,935 25% 6%
10,447 2,411 2,757 Revenue 3,080 28% 12%
• Profitability: Reduced material cost,
1,659 328 454 Profit Before Tax (PBT) 617 88% 36% supported by capacity leverage / cost
15.9 13.6 16.5 PBT % 20.0 optimization resulted in better
profitability.
1,248 245 345 Profit After Tax (PAT) 460 87% 33%
11.9 10.2 12.5 PAT % 15.0
• Cash: While overall cash position
1,384 274 409 Operational EBITA 514 87% 26% improved with good collection drive,
13.3 11.4 14.8 Operational EBITA% 16.7 stocking to deliver backlog
commitments & March ending for
1,489 285 417 EBITDA 565 98% 35%
customers resulted in slight
14.3 11.8 15.1 EBITDA % 18.3 deceleration
4,727 3,942 4,727 Cash balance (including T bills) 5,036
4,543 4,229 4,543 Own Workforce 4,656

May 14, 2024 Slide 15

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Demand vs Supply
Growth for ABB in India is 15% while for ABB Group it is 5%
Fig in MUSD @ 1 $ = 83.02 INR

Orders originating from India (Demand view as per Group) Orders as reported by local entity (Supply view relevant for
ABB India Ltd)

Q1/24 Q1/23 Change Q1/24 Q1/23 Change

% %
3rd Party
ABB India ABB India
Customers in
Ltd Ltd 392 342 15%
392 342 15% India

3rd Party
Customers Other ABB ABB Cos outside+
ABB India 61 51 20%
in India Cos in India 5 7 -28% 3rd Party outside
Ltd
India

ABB Cos 453 393 15%

10 40 -75%
outside India

407 389 5%

From customers in
- To all ABB Units in India India & outside
+ India to ABB India
Ltd
To all ABB Units o/s India

May 14, 2024 Slide 16

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Financial summary
Q1 2024 vs Q1 2023

Other income: 87 Cr (72 Cr)

Major component is Interest on fixed deposits – 83
Cr for the quarter vs 56 Cr prev year

Material cost: 59.8% (63.7%)

• Revenue mix especially higher service & exports
• Localization, SCM savings
• Better margin orders from backlog

Personnel expenses: INR 221 Cr (INR 187 Cr)

Annual salary revision and headcount increase

Other expenses: INR 457 Cr (INR 401 Cr)

Majority is volume linked, one-time favorable tax
refund, q1/23 had a one-time warranty cost

Interest costs: INR 3.8 Cr (INR 2.2 Cr)

Comprises MSME interest & Notional interest on
lease discounting
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Electrification INR crores

(+34%) (+30%)

1,791 1,296 Orders Received

1,130 • Growth from data centres, smart building
1,335 999 1,006 1,042
1,100 • Tier 2/3, OEMs expansion
1,032 1,037
• Installed base opportunities
Orders
Revenues
Received
Revenues
• Seamless backlog execution of system &
Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 product orders

PBIT %
(+29%) 23.7 PBIT
2,468 19.3 19.0 • Revenue mix with growth in service
1,918 19.5 • Execution of higher margin orders
16.3 • No major forex impact
Order • Efficient capacity utilization
Backlog

Q1/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24

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Motion INR crores

(-3%) (+4%)

1,417 1,400 Orders Received

972 981 1,013
1,216
1,126 1,181 917 915 • Decision on system orders slightly delayed
• Price pressure of standard products

Orders
Revenues Revenues
Received
• Steady backlog leading to a stable growth

Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24
PBIT
PBIT % • Revenues mix and price advantage in select
(+57%) product revenue streams
21.4
3,675 19.4 • Advantage of higher revenue from services
17.7
• Cost structure in control
14.5
2,344
12.0
Order
Backlog

Q1/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24

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Process Automation INR crores

(+17%) (+73%)

726 Orders Received

784 676
631 • Orders from power, metal, logistics
695
510
529 541
463 420
Revenues
Orders
Revenues • Higher execution of order backlog
Received
• Continued contribution from services and
exports
Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24

PBIT
PBIT %
• Revenue mix accompanied with strong
16.3 support from service revenues
14.5
Flat • Optimization of value chain costs in project
revenue stream
12.8
2,692 2,686 11.1
9.2
Order
Backlog
Q1/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24
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Robotics and Discrete Automation INR crores

(-3%) (+60%)

123
Orders Received
118
156 152
108 109 • Strong inflow from automotive sector,
electronics
116
68

61 57 Revenues
Orders Revenues • Execution of industry & automotive orders
Received from backlog
Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 • Good momentum in execution of book & bill
revenues
PBIT %

(-28%)
PBIT
298
• Higher revenues from services & automotive
15.8 15.4
226 segment
12.6 12.0 11.8
Order
Backlog

Q1/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24

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Resilient and diversified business model (by revenues)
Segment Offerings
3% 3% 4% 9% 14% 10%
17% 23% 21% 13% 14%
16%

40% 32%
RA
36%
Projects
PA
78%
71% 76% Services
MO
Products
40% 41% 40% EL

Q1/23 Q1/24 CY/23 Q1/23 Q1/24 CY/23

Channels Geography
9% 11% 9% 9% 8% 10%
11% 9% 10%

44% 40% 41% OEMs

EPCs 91% 92% 90% Export
Partners Domestic
36% 40% 40%
Direct Sales

Q1/23 Q1/24 CY/23 Q1/23 Q1/24 CY/23

May 14, 2024 Slide 23