june 9, 2015 - berenberg energy efficiency conference in
TRANSCRIPT
June 9, 2015 - Berenberg Energy Efficiency Conference in Zürich, Dr. Anders H Nordström
© ABB GroupMay 28, 2015 | Slide 1
Energy efficiency remains the ”first fuel”
© ABB Group| Slide 2May 28, 2015
Well positioned in attractive marketsABB today
Where(Geographies) Globally
For whom(Customers) Utilities Transport &
InfrastructureIndustry
What(Offering)
$40 bnrevenue
~100countries
~140,000employees HQ ZurichSingle “A”
credit rating
AMEA1 37% Americas 29% Europe 34%
~35% of revenue ~45% of revenue ~20% of revenue
Power ~ 40% of revenue Automation ~ 60% of revenue
Power & Automation
1Asia, Middle East, Africa
© ABB Group| Slide 3May 28, 2015
Well positioned in attractive marketsPower & automation demand drivers
Significant market opportunities – today: ~ $600 bn, 2020: ~ $750 bnSignificant market opportunities – today: ~ $600 bn, 2020: ~ $750 bn
RenewablesGrid automationSmart upgradesEmerging marketsNew consumption points
Utilities
~$200 bn
UrbanizationEnergy efficiencyElectric transportPower quality and reliability
~$150 bn
ProductivityEnergy efficiencyAutomation penetrationPower quality and reliabilityEmerging marketsUS re-industrialization
~$250 bn
Industry
Transport & Infrastructure
Energy and resource efficiency – an essential part ofour business
| Slide 4
Energy and resource efficiency are integratedinto our technology and what we offercustomers
ABB is world’s
§ Largest supplier of high-efficiency powergrids to integrate renewable energy
§ Largest manufacturer of energy efficientindustrial motors and drives
§ Largest provider of generators to windindustry
§ Second largest solar inverter company,following Power-One acquisition
§ Leading supplier of electric vehiclecharging infrastructure
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ABB’s vision: Power and productivity for a better world
Recognition for ABB’s efforts in energy efficiencyand renewable energy technologies
Underlines our relentless drive for innovation tocreate new offerings and value for our customers
Reflects ABB’s pioneering heritage in technologyinnovation
Strengthens our reputation in the Gulf region andin key market segments
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Strong external endorsement
Energy efficiency - the first fuel
§© ABB Group
Large annual savings from continual efficiency efforts
Total annual fuel consumption
Source: IEA Example describes total annual energy consumption in 11 OECD countries, and the annual impact of their efficiency efforts since 1974
If no energy efficiencyimprovement after 1974,this much more energywould be consumedannually today
Energy consumption is decoupling from GDP growthElectricity consumption is still increasing worldwide
May 28, 2015 | Slide 7© ABB
Global focus on energy management in industryISO 50001 – new, global energy management standard
© ABB Group
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§ Incentives are strong drivers for energy management and efficiency
§ Regulation also strong driver for energy efficiency
Energy efficiency in industry1,000 Mtoe potential in power generation, cement and steel
© ABB GroupMay 28, 2015 | Slide 9
>$400 bn
Savings potential in power generation, steel and cement
1,000 Mtoe
(at $60 per barrel of oil)
Sources:§ The state of global
energy efficiency,Enerdata
§ Key World EnergyStatistics 2013, IEA
Energy efficiency in industry250 Mtoe potential in steel with today’s best practice
© ABB GroupMay 28, 2015 | Slide 10
Sources:§ The state of global
energy efficiency,Enerdata
§ Key World EnergyStatistics 2013, IEA
Cost of energy canbe 20-40 percent ofoperating costs iniron and steelmaking – energyefficiency is wellestablished
ABB is a leadingprovider of electricalequipment and controlsystems to optimizemelting, shaping andfinishing of metals
In addition to energycost savings, many ofthese solutions helpcustomers boostproductivity and quality
Energy efficiency in industry
§ ABB’s range of equipment, automation systems and powersolutions cut cost for energy-intensive industries
§ The installed base of ABB’s variable speed drives savedmore than 445 terawatt-hours (TWh) of electricity in 2014,equal to the annual consumption of about 110 millionEuropean households
Industryaccounts forabout onethird of theworld’s finalenergydemand
Industry’stotal energyuse continuesto grow
Large opportunities and good progress
§© ABB Group
Two-thirds areconsumed bysix processindustries:§ Iron & steel§Other metals§Minerals§Oil & gas§Chemical &petrochemicals§Pulp and paper
Energy efficiency in industrySaving energy and cost at water utility
ABB drives solvecapacity problemand save $150,000per year in energycosts for water utilityin the UK
Energy efficiency in industrySaving energy and cost at wastewater plant
ABB motors anddrives replaced oldequipment:• 65% energy saved• 8 months pay-back• Cost savings of
£10,000 per year
Energy efficiency in utilitiesBoost transmission capacity and increase efficiency
§© ABB Group§May 28, 2015 | Slide 14
SVC – Static VarCompensation –reinforces the grid,increases trans-mission capacityand power quality,and enables moreefficient operation ofthe system
Energy efficiency in utilitiesHVDC – efficient bulk transmission over long distances
§© ABB Group§May 28, 2015 | Slide 15
Energy efficiency in utilitiesExample: Connecting Norwegian and German power grids
§© ABB Group§May 28, 2015 | Slide 16
§ NordLink - $900 millionHVDC order to connectNorwegian and Germanpower grids
§ Europe’s longest HVDCpower grid interconnection
§ Enable transmission of 1,400megawatts (MW) ofrenewable energy
§ ABB has been awardedabout 100 HVDC projectssince it pioneered thetechnology 60 years ago
Energy efficiency in utilitiesABB – an expert partner in solar power
§© ABB Group§May 28, 2015 | Slide 17
ABB offers theindustry’s mostcomprehensiveportfolio ofproducts, systems,solutions andservices,
ABB has expertiseand experience insolar power gainedover decades
Solar power isentering a newphase.
Technologyadvances andlower costs meanit has growingpotential every-where
Energy efficiency in transportation and infrastructureEfficient and clean electric propulsion at sea and land
§© ABB Group§May 28, 2015 | Slide 18
ABB’sregenerativebrakes regain70% of energy
80% of tradetransported bysea. Annualgrowth of 12%for electricpropulsion
Onboard DCgrid & electricpropulsionsaves up to27% of fuelconsumption
ABB is a worldleader incharging ofelectricvehicles
Internationalfreighttransport toquadruple by2050(Source: OECD 2015)
© ABB Group| Slide 19
Innovation is key to ABB’s competitive advantageLeadership built on consistent R&D investment
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§ More than $1.5 billion invested annually in R&D§ 8,500 scientists and engineers§ Collaboration with 70 universities
Innovation is key to ABB’s competitive advantageNext level automation and power transmission from ABB
§© ABB Group§May 28, 2015 | Slide 20
Productivityincrease of up to30% realistic with‘internet of things,services andpeople’ by ABB
New cabledoubles powerflow and cutslosses
YuMi –world’s firstcollaborativedual armsrobot
World record525 kVvoltageextrudedHVDC cable,
© ABB| Slide 21May 28, 2015
EnvironmentKey figures 2014
445TWh energy savedby ABB drives
5.2 millionm3 of watersaved through reuse and recycling
200+energy efficiencyprojects under way
51%of revenuesrelated to energy efficiencyand renewable energy
1.6%improvementin energy intensity ofour operations
1.95 milliontons of greenhousegas emissions
© ABB| Slide 22May 28, 2015
CEO statements on sustainability“A value creator, embedded in the business”
“When we speak of taking business to thenext level, sustainability is an integrated
part of that journey.”
“Embedding sustainability considerationsinto our daily business helps us in differentways to create value and to manage risk.”
Ulrich Spiesshofer, CEO in 2014Sustainability Performance Report
© ABB| Slide 23May 28, 2015
More information available at ABB Investor Relations
Name Telephone E-Mail
Alanna AbrahamsonHead of Investor Relations +41 43 317 3804 [email protected]
John Fox +41 43 317 3812 [email protected]
Binit Sanghvi +41 43 317 3832 [email protected]
Beat Fueglistaller +41 43 317 4144 [email protected]
Tatyana Dubina +41 43 317 3816 [email protected]
Annatina Tunkelo +41 43 317 3820 [email protected]
Ruth Jaeger +41 43 317 3808 [email protected]
