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Anders JonssonHead of ABB

Robotics Division

Member, ABB Group Executive Committee

Robotics Overview

Enhancing the ABB Global Footprint

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Key Facts – ABB Robotics

Over 140,000 ABB robots installed

worldwide

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-in-white, paint processes, power train assembly

Product, system and asset services

Customers Served:Automotive and Tier 1 suppliers

General industries such as foundry, metal fabrication, plastics, electronics, consumer

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Global resources to serve global customers

Lead CentersLocal OperationsFactories

Committed to both established and emerging marketsLarge installed base drives service opportunitiesRevenues by region: EU 50% - NA 35% - Asia 15%

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Market positions 2004Key applications: Material handling, picking, packing, palletizing, welding, painting, gluing, sealing, assembly

World market $10 billion with average market growth of 5 – 6%

Business line(Products)

1 2 3

Foundry ABB Fanuc Kuka

Painting ABB Yaskawa Fanuc

Plastics Fanuc ABB Kuka

Metal fabrication Yaskawa ABB Fanuc

Packaging Fanuc ABB Kuka

Auto parts36%

Plastic9%

Foundry13%

Auto OEMs23%

Foodbeverage

5%

Other14%

Business line(Systems)

1 2 3

Press automation ABBKuka, Fanuc, Comau

Paint process automation Durr ABB Fanuc

Powertrainassembly Krause ABB Comau

Body-in-white Comau Kuka ABBEnd markets as percentage of

2004 revenues Source: ABB, McKinsey, IFR, Company Reports

ABB has the Number One robotics market share in China

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Industrial Robot Market Growth (in units)

Year 2000 2001 2002 2003 2004Robot units 380 700 522 1,451 3,493

Sources: United Nations Economic Commission for Europe, International Federation of Robotics

The China robot market is developing rapidly.

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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

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ABB market offer: Robot products

Software

Robots Accessories

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ABB market offer: Industry specific applications

Arc Welding CuttingPainting/CoatingSpot Welding

Machine TendingPress Tending Material HandlingFinishing

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ABB market offer: robot systems for automotive

500 press automation solutions 400 body-in-white solutions

150 powertrain assembly lines2,200 paint automation and sealing installations

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Delivering results to industry’s leading names

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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

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ABB China robotics casebook (2)

Shanghai Mitsubishi ElevatorTurnkey 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

Flexible production: more than 50 product types in 3 series

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ABB China robotics casebook (3)

Leading Electronics Sub SupplierLaser Welding System for iPodcomponents

High strength and cosmetic properties

Production:120,000 pieces per day

ABB offer includes on-site technical support and training center

iPod MP3

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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 ChinaAutomotiveShipbuildingHarbor constructionMetalsOil and Gas. . .

Strengthening ABB’s global footprint18,000 new robots annually for Asia through 2008*

*Source: International Federation of RoboticsComparison: 2000 new robots in US during 2005

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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.

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 10th 2004; Business Week, March 20, 2006

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Similar rapid growth in general industry sectors

2005 consumption growth – selected goods and services

Source: Deutsche Bank Estimates

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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

Dedicated local resources14,000 sq. m. facility in ShanghaiPlant capacity expanded to more than 1,000 robots per yearMore than 300 employees by the end of 2006.

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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

We remain committed to meeting mid-term targets through innovation, simplicity and cost migration