ABB India Overview

25 July 2013

A global leader in power and automation technologies Leading market positions in main businesses

135,000 employees in about 100

countries

$38 billion in revenue (2011)

Formed in 1988 merger of Swiss and

Swedish engineering companies

Predecessors founded in 1883 and

1891

Publicly owned company with head

office in Switzerland

Power and productivity for a better world ABB’s vision

As one of the world’s leading engineering companies, we

help our customers to use electrical power efficiently, to

increase industrial productivity and to lower environmental

impact in a sustainable way.

How ABB is organized Five global divisions

Power Products

Power Systems

Discrete Automation and Motion

Process Automation

$10.3 billion

35,000

employees

$7.7 billion

19,500

employees

$8.4 billion

27,500

employees

$7.8 billion

28,500

employees

(2011 revenues, consolidated)

Low Voltage Products

$5.0 billion

21,000

employees

Electricals, automation, controls and instrumentation for power generation and industrial processes

Power transmission

Distribution solutions

Low-voltage products

Motors and drives

Intelligent building systems

Robots and robot systems

Services to improve customers

productivity and reliability

ABB’s portfolio covers:

Shaping the world we know today through innovation Pioneering technology since 1883

Founding fathers

1900

Industrial robot

Turbochargers

HVDC

Ultrahigh voltage

Gas-insulated switchgear

Variable-speed motor

drives Extended control

systems

Steam turbine

1920 1930 1940

Electric propulsion

systems

1990 2000

1960 1970

Gas

turbine

1950

Gearless motor drives

1980

Power and automation are all around us You will find ABB technology…

crossing oceans and on the sea bed,

orbiting the earth and working beneath it,

on the trains we ride and in the facilities

that process our water,

in the fields that grow our crops and

packing the food we eat,

in the plants that generate our power and

in our homes, offices and factories

ABB India Presence, Trends and Opportunities

Indian Macro economy A Decade of progress

Source: India Strategy Motilal Oswal report January 2011

Between 2000-2010:

GDP trebled from less than US$ 0.5t to US$ 1.3t.

Per Capita GDP rose 2.5x from US$ 427 to US$ 1058

Clocked a real GDP CAGR of 7.2%

Service sector grew from 49% of GDP to 57% of GDP

Growth was largely financed with savings rate

increasing from 24% to 34%

Merchandise trade (Imports+Exports) as a percentage

of GDP nearly doubled from 22% to 40%

Forex reserves expanded 7 times to US$ 280bn

India - Macro Overview

Macroeconomics:

Declining IIP and exports with

increasing inflation and trade deficit

Increasing competition: Changing

Rules of the Game and eligibility

Criteria

Increasing margin pressures:

Interest costs and delay project

investments

Technology - Price equation:

India high on ‘better technology at

a lower price

Global footprint:

Leverage India for optimizing cost

and talent pool

National Manufacturing Policy:

Catalyst to sustain economic

growth

Investment in infrastructure:

$1 trillion between 2012-17

Rail:

Electrification of 12000 km + Metro

planned in over 12 cities

India – Power and Industry Segment

Demand – supply gap still 10-12%

Over 12% of installed capacity is more

than 30 years old

Delicensing & Increased Participation

of Private Players : 6% in 2006 to 29%

in 2011. May go upto 52 % by 2017

Delay in projects – land acquisition and

environmental clearances

National Grid: 155 – 188 thousand ckm

planned by 2017

Learnings

10-12% growth in consumption – led

by rising middle class

2020:100 mn jobs. 2025: 200 m jobs

Auto sector to contribute 10% of GDP

by 2016

Huge opportunities in energy efficiency

space

Industrial Zones with special

incentives for green technologies

Month DD, Year | Slide 10

Industry Segment Power Segment

BANGALORE

FARIDABAD

VADODARA

MUMBAI

NASHIK

HARIDWAR

KOLKATA

MYSORE

Key manufacturing/ project units

Head office, Bangalore

ABB in India Strong local presence since 1928

12 Manufacturing facilities

23 Marketing offices

4 Training centers

8 Service centers

3 Logistics warehouses

2 Power & Automation Engineering Centers

ABB’s largest R&D Center

Listed on Bombay and National

Stock Exchange, India

* As on 2011 June

* Does not include Baldor and K-tech acquisitions

+ Cluster countries

ABB in India 1.7+ BUSD in revenues, 10355 employees*

Electricals, automation, controls and instrumentation for power generation and industrial processes

Power transmission

2,732 Employees

462 MUSD

20,446 MINR

2,476 Employees

554 MUSD

24,491 MINR

1,524 employees

417 MUSD

18,440 MINR

2,078 employees

315 MUSD

13,948 MINR

Process Automation

1,016 employees

121 MUSD

5,355 MINR

Power Products

Power Systems

Discrete Automation and Motion

ABB India portfolio:

Low Voltage Products

Distribution solutions

Low-voltage products

PLCs, variable frequency drives, motors for discrete automation and process industries

ABB in India is the 5th largest contributor to the group business volumes

*Regular employees + Trainees

Revenues include all legal entities; Figures rounded off to 0 decimal;1 USD: 44.25 INR

© ABB Group

July 25, 2013 | Slide 13

India country organization 2013

Priteesh Mahajan Process Automation

Amlan Datta Majumdar Chief Financial Officer

N Venu Power Systems

Pitamber Shivnani Power Products

R Narayanan Discrete Automation &

Motion

Madhav Vemuri Country Service Manager

Raja Radhakrishnan Country HR Manager

Tajinder Vohra Country Operations Officer

Giandomenico Testi Chief Technology Officer

Raimondo Salandra Low Voltage Products Subir K Pal

Communications, Business

development and Marketing

Bazmi Husain Country Manager

Ralph Schutheiss Legal and Integrity

TK Sridhar Investor Relations

-TBD- Sustainability

ABB in India Local Investment in Manufacturing

Vadodara: First manufacturing facility 1962. Most recent - Wind Mill Generators in set up 2010,

International quality certification (ISO 9001,14001,18001 certified)

Manufacturing and/or assembly performed in locations across India, much of which supplies local demand

Global factories for Power Products, Low Voltage Products and Discrete Automation and Motion

Manufacturing facilities have unique energy savings systems such as solar panels for energy and water recycling systems

ABB in India Global Corporate Research Center

Highlights

Established in 2002 in India

R&D footprint with 40% of BUs

Lifecycle support for over 30 products

29 invention disclosures approved

No. of engineers: 1000+

University cooperation with IIT, IISC

Bangalore, IIIT Bangalore

Research cluster areas

Control and optimization

Industrial communications

Industrial software systems

Network management systems

800xA

Robotics and drives

ABB in India Global Industrial Services

Process competencies – Process Automation

Metals, Minerals, Oil, Gas & Petrochemicals, Pulp & Paper, Marine and Plant Electrification

Process competencies – Power Systems

Grid Systems, Substation Automation and Power Generation

Engineering operation centers located in Bangalore and Chennai

with 900 employees, delivering engineering for prestigious

projects worldwide

Local delivery of a variety of projects ranging from aluminum

smelter electrification to inter-state electrical grid control

Two Engineering Centers

Our customers Some of the biggest names in the Indian Industry

India’s energy challenges Reduce linkage between growth, energy use and emissions

Meeting these challenges requires the India to:

Reduce the correlation

between economic growth

and energy use

Reduce the correlation

between energy use and

emissions

Energy

efficiency

Renewable sources

of energy

Industry / Govt. Push….BSE Green Index, PAT…Audits

Opportunity to reduce carbon footprint

India: Energy -

Supply Efficiency

4.3

2.8

4.2

4.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

World India China USA

TW

h /m

MT

OE

Electrical Energy Available per Unit of Primary Energy

Consumed to produce it

Power Generation

•Total Auxiliary Power Consumption in Power Plants is 8.34% of the Production

•World Average Benchmark 3.99%

Power Transmission & Distribution

•Total Losses in T&D is 33% of power handling capacity. Benchmark: Germany 4%.

•11% lost in Transmission, 22% in distribution.

There is scope for improvement when we compare India with other countries

North East to Agra UHVDC transmission

Customer’s need

Development of renewable hydro power 1730 km from load centre

ABB’s response

± 800 kV UHVDC, 6000/8000 MW

Multi terminal

Customer’s benefits

High efficiency > 95 %

ROW ~ 40% of eqvt. 765 kV AC system

Reliable transmission – forced unavailability < 0.5 %

Worlds highest capacity power interconnect

Custom engineered SCADA

solution

Maximum efficiency , optimal

space use with minimal losses

Delhi, India: Electrify one of

the largest metro projects in

Asia

Challenge ABB solution

Maharashtra, India: State of

the art, turnkey electrification

solution for thermal power

plant that supplies increased

power to western grid

Bangalore, India: Improve

reliability in grid serving 53

million people in Karnataka

Network management with

real-time control

Key building block for smart

grid

Modular eBoP solution for

300MW generating units that

provide optimized and

integrated solutions for

complete plant electricals

Improving capacity, reliability and efficiency in the grid Pioneer in smart technologies

Custom engineered System

800xA control solution

Energy efficient drives and

motors

India/Bangladesh: Provide a

complete automation solution

for world’s longest trans

national, single-belt conveyor

India: Help the largest

steel blast furnace in India

maximize their production

efficiency

Challenge ABB solution

India: Complete electrical

and automation solution for

one of the largest cement

manufacturers in the world

800xA automation solution helps

to increase productivity from

7850 tons per day to 9000 tons

per day

Tackling society’s challenges on path to low-carbon era Helping customers do more using less

Composite solution with plant

electrics, drives and motors

Elimination of hardware

communication between MCC

and DCS by using Profibus with

intelligent MCC