ppttoanalystsoct272021 PPT PRESENTAION ABOUT

ppttoanalystsoct272021 PPT PRESENTAION ABOUT

• 1.
  OCTOBER 27, 2021 Strongperformance exceeding pre-COVID levels ABB India Ltd Analyst Call Q3 CY2021 —
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  — Important notices October 27,2021 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. 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 Ltd’s filings with the Securities and Exchange Board of India (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 assurance that those expectations will be achieved. Further, Information shared herein inter-alia contains some key financials pertaining to ABB India. ABB India being a listed entity is obliged by law not to share the said information to any one (other than those who are involved in the process and who are bound by Insider Trading Regulation) unless and until the financials are considered and approved by ABB India Board and thereafter announced to stock exchanges as per the listing obligations entrusted upon ABB India. Therefore, privy to this presentation should kindly ensure strict confidentiality of the information shared and discussed herein. Slide 2
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  — Business highlights Financial Highlights Agenda October27, 2021 Slide 3 Slide 3
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  — Q3 2021 highlights Slide4 • Solid recovery from covid disrupted market dynamics • High level of demand driving strong order growth with double-digit growth rates in all business areas • Strong revenue growth with favourable product mix • Improved value offerings and operational efficiencies led to high Operational EBITA margin • Healthy cash position ABB expands manufacturing capacity for Low Voltage (LV) motors at its Faridabad facility, powered by renewable energy ABB technology to improve quality and lower production costs for Tata Steel plant in India ABB remotely commissions modernization project for Bilt Graphic Paper Products Limited (BGPPL), Ballarpur ABB drives enhance safety and energy efficiency at Bharat Biotech’s Covaxin manufacturing facility Recognized as a part of key ESG indices Power distribution equipment for cities of Ahmedabad and Mumbai
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  — October 27, 2021Slide 5 Slide 5 Strong performance exceeding pre-COVID levels Actual for Q3/21 (in Crores) Change Q3/21 vs Q3/20 Change Q3/21 vs Q3/19 Orders 1909 46% 19% Order Backlog 4765 9% 6% Revenue 1778 10% 2% PBT 165 45% 47% PAT 120 40% 52% Operational EBITA 168 64% 41%
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  — Strong demand; revenue maintainsmomentum October 27, 2021 Slide 6 Slide 6 Orders +46%1 Revenues +10% 1 INR crores INR crores 1.YoY comparable 1606 1596 1953 1200 1308 1470 1825 1689 1909 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 1746 1953 1522 986 1612 1701 1629 1425 1778 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Process Improvement across segments, including oil & gas; customer activity in power generation remained stable Discrete Broad-based order growth with orders also improving in automotive Systems and service Orders make a come-back this quarter Market segments Focus on channels & segments aid price realization Short-cycle Steep growth across most businesses Transport & infrastructure Broad-based order growth across segments; continued recovery in railway
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  — Progressing well onnew business model and technologies Industry first collaborative robotics on ABB shopfloor 1 yr of ABB eMart: 26x growth in organic users since 2020, with customers from J&K to Kanyakumari Adoption of digital products like Emax2 by SMEs Local manufacturing of world’s first eco-friendly switchgear
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  — Growth Sectors &ABB Offerings Slide 8 Offerings - UPS, MV & LV Switchgear, LV Components, Automation & Instrumentation, Drives, Digital Power Train Order - low-voltage switchgear and controlgear assembly for power distribution and motor control and ArTuk panels for data centers in Hyderabad Data Centre Renewables Food & Beverage Automotive Offerings - Motors, Electrical drive train package, MVAC, Turbine Controller, Digital Power Train Order - EDS supplied low voltage components like breakers, contactors & MCBs to over 3 GW of solar and 2.5 GW of wind in India over last one year Offerings - Drives, Motors, Automation & Instrumentation, Robots, MV & LV Switchgear, Digital Power Train Order - LV switchgears for processing of the biggest plant for Ayurvedic supplements for an FMCG major, power distribution technology solutions from confectionary to sugar companies Offerings - Robots, LV & MV Switchgear, Drives, Motors, Automation & Instrumentation, Digital Power Train Order - System service orders for auto majors from robotics Offerings - Automation & Instrumentation, Motors, Drives, LV Components Order - Motion solutions for Kalwakurthy extension project including Mallanasagar Water & Wastewater Railways Pharma Power Distribution Offerings - Traction converter & motors, LV components, DC circuit breaker, Inverter/UPS, Digital Power Train Order - Traction converters Offerings - Drives, Motors, Automation & Instrumentation, Robots, MV & LV Switchgear Order - Energy efficiency drives for clean room for vaccine manufacturers and distributed control and MES for pharma companies Offerings – LV components, MV products (CSS, Switchgears, RMU), Relays, Arc fault protection Order - Compact substations, panels, switchgears, etc. for industries and tier 2 cities
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  — Slide 9 AMRUT 2.0approved by Govt. of India, 100% coverage of household sewerage/ septage, universal water supply, >2 crore tap GatiShakti launched by Govt. of India will fuel the ₹ 111,00,000 crore ($1.5 tn) National Infrastructure Pipeline (NIP) as announced in Dec’20 Battery manufacturing: India to need 8000GWh of batteries by 2030, govt incentives to push local giga factories National Hydrogen Mission announced in the Union Budget 2021 and allotted INR 25 crore for R&D. Govt. committed outlay of INR 800 Crores (~$100 Mn) between 2021 to 2024 Govt growth drivers and emerging business areas for future growth PartneringIndia’sgrowth story, acrosssectors Low Moderate High Renewables Water & Wastewater Warehousing Logistics Food & Beverage Pharma Data Centre Railways & Metro Power Distribution Automotive Buildings & Infra Ports Cement & Mining Oil, Gas & Chemicals Metals & Mining Pulp & Paper Rubber & Plastics Business Outlook
• 10.
  — Implementing ABB IndiaESG strategy ESG: Environment, Social & Governance October 27, 2021 Slide 10 Sustainable Business Model Driving sustainability to the last mile Phase 1 Green Factory Buildings Phase 2 Green Manufacturing- Towards Net Zero Phase 3 Green Products Data gathering & Expert Engagement - Energy Data Analysis & proposal by Expert Team RE100 project realization Renewable Energy agreements for RE100 Carbon Net Zero with - RE100 - EV100 & EP100 Water Net zero WIP at multiple location (neutral/positive units) Waste net Zero & achieve zero waste to landfill work in progress Net Zero-Green manufacturing RE100 project realization 2020 Dec'2022 i. Renewable energy utilisation (%) Dec’22 ii. Steps involved in RE100 realisation
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  — Agenda Business highlights Financial highlights October27, 2021 Slide 11
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  — Slide 12 Financial Performance INRcrores Strong performance exceeding pre-COVID levels Q2 2021 Performance Indicator Q3 2021 Q3 2020 Change Vs Q3 20 YTD 2021 YTD 2020 Change Vs YTD 20 Full Year 2020 1,689 Base Orders Received 1,909 1,308 +46% 5,423 4,443 +22% 5,914 - Large Orders Received - - - 18 18 1,689 Total Orders Received 1,909 1,308 +46% 5,423 4,461 +22% 5,932 4,583 Order Backlog (end of period) 4,765 4,390 4,765 4,390 4,114 1,425 Revenue 1,778 1,612 +10% 4,833 4,120 +17% 5,821 90 Profit Before Exceptional and Tax (PBT) 165 114 +45% 384 165 +133% 338 6.3 PBT before Exceptional % 9.3 7.1 8.0 4.0 5.8 - Exceptional item - - 75 59 (34) 90 Profit After Exceptional and Before Tax(PBT) 165 114 +45% 459 224 +105% 304 6.3 PBT after Exceptional % 9.3 7.1 9.5 5.4 5.2 68 Profit After Tax (PAT) 120 85 +40% 339 168 +101% 230 4.8 PAT % 6.7 5.3 7.0 4.1 4.0 88 Operational EBITA 168 103 +64% 367 125 +198% 293 6.2 Operational EBITA% 9.4 6.4 7.6 3.0 5.0 2,364 Cash balance 2,481 1,598 2,481 1,598 2,207 —
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  — Q3 CY21 financialsummary Slide 13 • Strong backlog execution and solid customer-connect led to positive momentum in revenue • Favourable mix & better margin orders shore up contribution • Increase in personnel expense on account of salary revision • Other expenses go up relative to revenue • Improved profitability Y-o-Y, margin growth supported by demand and better capacity utilization
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  — PBT Bridge Slide 14 114 165 10 12 28 965 PBT for Q3/2020 Base volume, Mix and Mat cost Personnel expenses Other expenses Forex Other income PBT for Q3/2021 9.3% margin 7.1% margin 5
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  — Share of totalorders, revenues & PBIT by division — 42% 33% 4% 21% EL MO RA PA 40% 35% 4% 21% EL MO RA PA 45% 37% 4% 14% EL MO RA PA 39% 39% 2% 20% EL MO RA PA 37% 37% 3% 23% EL MO RA PA 45% 47% 1% 7% EL MO RA PA 36% 39% 4% 21% EL MO RA PA 39% 38% 4% 19% EL MO RA PA 38% 42% 3% 17% EL MO RA PA Orders Revenues PBIT CY 2019 CY 2020 YTD 2021 Rs 6,970 Cr Rs 5,932 Cr Rs 5,423 Cr Rs 7,315 Cr Rs 535 Cr Rs 5,821 Cr Rs 262 Cr Rs 4,833 Cr Rs 391 Cr
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  — October 27, 2021Slide 16 Slide 16 Q3 2021 Electrification Improving on a solid track record Orders Rs 707 crores Order Backlog Rs 1,386 crores Good order booking across all divisions Growth from low-voltage business Revenues Rs 693 crores Performance across divisions improved in Q3 Strong export performance PBIT Rs 84 crores Higher volume helped to increase contributions Better product mix and improved price realization helped offset increase in commodity prices 492 631 684 575 707 -2% 28% 8% -16% 23% Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Orders received Order Growth 595 647 633 577 693 66% 9% -2% -9% 20% Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Revenue Revenue Growth
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  — Slide 17 October 27,2021 Slide 17 Q3 2021 Motion Stable margin despite cost inflation 554 535 638 731 806 45% -3% 19% 15% 10% Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Orders received Order Growth 629 648 631 500 700 60% 3% -3% -21% 40% Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Revenue Revenue Growth Orders Rs 806 crores Order Backlog Rs 1,860 crores Growth across all divisions Good contribution from Channel business, Exports & Packaging Received high value LCI orders in Q3 Revenues Rs 700 crores Growth in all the divisions except MOTR due lower volume in Propulsion Equipment business Strong focus on execution of OBL resulted in improvement in products sales PBIT Rs 76 crores Higher volume contributed to increase in PBIT Better product mix and price realization have improved profitability
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  — Slide 18 October 27,2021 Slide 18 Q3 2021 Process Automation Strong profitability improvement 274 280 440 362 361 -11% 2% 57% -18% 0% Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Orders received Order Growth 367 387 326 267 340 55% 5% -16% -18% 27% Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Revenue Revenue Growth Orders Rs 361 crores Order Backlog Rs 1,442 crores Overall demand revival in Q3 System orders making a comeback Focus on energy management and grid integration stability with advanced process controls and digitalization Revenues Rs 340 crores Higher service revenues across divisions Strong backlog conversion in TU and MA PBIT Rs 42 crores Higher service revenue Better revenue mix and margin development Lower discretionary spend and improvement in material cost
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  — Slide 19 October 27,2021 Slide 19 Q3 2021 Robotics and Discrete Automation Robust growth continuing 33 47 94 65 61 65% 42% 100% -31% -6% Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Orders received Order Growth 45 43 48 89 64 80% -4% 12% 85% -28% Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Revenue Revenue Growth Orders Rs 61 crores Order Backlog Rs 149 crores Automotive segments showing signs of recovery Service system upgrade orders from Auto OEMs Revenues Rs 64 crores Service revenues going steady with some system upgrades PBIT Rs 8 crores Service revenues boosting the overall profitability