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© ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address www.abb.com/ventures m International Convention for Innovation & Business Development in Electricity and En
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© ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

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Page 1: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

© ABB Group - Introduction to ABB Technology Ventures

October 15, 2013 | Slide 1

Girish Nadkarni -ABB Technology VenturesElectricity 2013 - Keynote Addresswww.abb.com/ventures

Jerusalem International Convention for Innovation & Business Development in Electricity and Energy

Page 2: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

A global leader in power and automation technologiesLeading market positions in main businesses

© ABB Group April 19, 2023 | Slide 2

Power Products

Power Systems

Discrete Automation and

Motion

Process Automation

$10.7 billion36,000

employees

$7.9 billion20,000

employees

$9.4 billion29,000

employees

$8.2 billion28,000

employees

(2012 revenues)

Low Voltage Products

$6.6 billion31,000

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:

145,000 employees in about 100 countries

$39 billion in revenue (2012)

Page 3: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

MIT Technology ReviewABB Among Top 50 Disruptive Companies of 2013

April 19, 2023 | Slide 3© ABB Group

Page 4: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

Thompson Reuters2013 Top 100 Global Innovators

April 19, 2023 | Slide 4© ABB Group

Page 5: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

ABB Technology Ventures Overview

ABB Technology Ventures (ATV) is the corporate venture capital arm of ABB

Goals:

Gain access to leading edge technologies and business models of strategic interest to ABB

Increase the pace of internal innovation

Profitably invest ABB’s assets

Began investing in 2010

Approx. $150 million USD deployed so far

16 investments to date:

13 investments into companies

3 investments as Limited Partners into other VC funds

3 investment professionals, 1 technologist and 1 intern

Technology/market due diligence and portfolio company support from businesses, industry sectors and corporate research

Report into a Board consisting of CEO, CFO, CTO and 3 other EC members

© ABB Group - Introduction to ABB Technology VenturesJanuary 12, 2012 | Slide 5

Page 6: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

Investment Criteria

© ABB Group - Introduction to ABB Technology VenturesJanuary 12, 2012 | Slide 6

Target ~4 deals per year (not including refinancings)

$1-$20 million USD initial investment size

Stage and geography agnostic

Typically partner with leading financial VCs and/or other strategic investors

Indifferent to leading deal

Investment must meet traditional VC return requirements and have credible strategic value to ABB:

Tight linkages with ABB business units and deep technical resources to ensure additional value-add product pull-through and accelerated R&D

Financial

• 25%+ IRR• Returns commensurate with

early-stage business & technology risk

Strategic

• Exposure/learning for ABB• Hedging bets among competing

technologies• Pre-M&A (Cisco approach)• Support nascent markets (Intel

approach)Key Question • Would a financial VC invest? • Would ABB like to own this company or

be in this space in the future?

+

Page 7: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

Why do we need a corporate venture capital group?

© ABB Group - Introduction to ABB Technology VenturesJanuary 12, 2012 | Slide 7

Teaching ABB businesses to be paranoid!!!Teaching ABB businesses to be paranoid!!!

Smart Grid RenewablesCyber Security

Thousands of Start-Ups

Emerging Technologies

Emerging Competitors

Proximity to current market

Pro

xim

ity t

o c

ore

te

chn

olo

gy

High

Low

Low

R&

D

Business

Developm

entC

orporate

Venturing

Other Sectors with Overlapping Interests

80 CVCs formed in 2011!

Other CVC Groups

Page 8: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

Why Corporates Invest in Startups – 3 L’s

© ABB Group - Introduction to ABB Technology VenturesJanuary 12, 20121 | Slide 8

Leap

Not Mutually Exclusive

Leverage

Page 9: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

Emerging Trends & Technologies from Different Universe….

Internet of things/M2M Communication Big Data 3D Printing Transfer of technology from consumer to industry Cloud Computing Software defined Anything Cyber crime Mobile apps and applications (some countries leapfrogging PC based

internet, e.g. Kenya) Frugal and local (contextual) innovation (Kenya, Brazil, India, China) Social media – 2 Way Communication (reputation, branding), Sourcing

(Über, AirBnB), Sharing (cars, bicycles, handbags, watches) Crowd sourcing (there are people who are smarter or luckier) Service Robots (vision, ease of programming, interaction with humans,

exoskeletons) Autonomous cars Biomimicry – learn from the master Smart Cities – slowly but surely

Implications for:1.Product development2.Business model3.Competition4.Disruption

Implications for:1.Product development2.Business model3.Competition4.Disruption

…. But having long-term implications for ABB

Page 10: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

Benefits of Working with a Corporate Investor

© ABB Group - Introduction to ABB Technology VenturesJanuary 12, 20121 | Slide 10

Source: Partnering with Corporates, Cleantech Group Report

Page 11: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

ABB Technology Ventures February 4, 2013 | Slide 11

Areas of Interest 2013 Priority in Declining Order

High Potentials for 2014

Urban MiningWaste to Energy

el. Power + Heat + Recycling

G2L; P2G & P2LPower to Gas & Liquid

Energy storage, Gas utilization

Smart CityPartly covered in other topics

supervision, optimization, control

Geothermaland co-development

Sub Sea TechnologyOil/Gas

Unconventional O&GWater treatment

LNG regasification

Active Search

Energy EfficiencyIndustrial EEBuilding EMS

Smart manufacturingConnectivity, interface,

Predictive MaintenanceService

Software

Micro-GridDistributed Generation

Home AutomationMultiple sensors,

convergence,

Demand ResponseLighting TechnologiesBuilding and Industrial

applications

Discrete manufacturing& Robotics

Intuitive & easy programming

Sector Strategy to be prepared

Theme Based

Big Data Applications beyond

Smart Grid

Internet of ThingsApplications across BUs

Incl. “real time everything”

3D PrintingProducts & spare parts

Next gen. manufacturing

Reports released

Page 12: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

Solar PVmulti-function / BIPV

Residential

Solar BoS(micro) inverter & power optimizer

Solar CPVHCPV

Tidal energyand co-development

of PTO

Wave energyin synergy with APL &

far off-shore

Wind technologiessmall wind /

distributed Generation

Discrete manufacturingSmart manufacturingconnectivity, interface,

Renewables Smart Grid Energy Efficiency Other High Potentials

Geothermaland co-development

Micro GridDistributed Generation

DC TechnologiesFCL, DC CB, LV

Cyber Securitysoftware

Big DataApplications beyond

Smart Grid

Energy Storageutility scale

Demand ResponsePartly covered in other topics

Energy Efficiencycompressed air systems,

building EMS

Home automationmultiple sensors,

convergence,

Internet of ThingsM2M

(in-house study)

Waste heat recoveryadvanced heat pumpsmall scale generation

Lighting TechnologiesLED control,

Measuringadvanced sensors

Sensor,

Sub Sea TechnologyOil/Gas

Electric and oil separation

Power ElectronicPower Quality

inverter efficiency

3D Printing(in-house study)

Data Center Coolingincl. server and PCB cooling

P2GPower to Gas

Energy storage, Gas utilization

High speed motionmotors andcomponents

Predictive MaintenanceServicesoftware

Smart CityPartly covered in other topics

No real company strategy

Actively investigating sector / companies Passive search – few appealing targets Decline unless exceptional

General Areas of Interest – Evaluated Regularly

Page 13: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

Moving from opportunistic investing to theme and sector driven investing

Energy storage / utility scale battery technologies

Micro Inverter and Power Optimizer

Waste to Energy / Urban Mining

Lighting Control – industry overview

Waste Heat Recovery

Wave and Tidal

Solar CPV

Big data

Internet of things

3D printing

Identify emerging sectors in conjunction with businesses and industry sectors

Conduct thorough analysis and mapping of targeted sector to identify best technologies and investment targets

Study staffed by combination of ventures, business and research teams

Sector Studies Finished

Page 14: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

© ABB April 19, 2023 | Slide 14

Investments – 1 of 2

1 = All amounts in millions unless noted

2 = PIPE

2

Company Description Amount1

Board Involvement

Co-InvestorsLocation

Deals listed in chronological order of initial ATV investment.

As of October 1, 2013

N/DBrookfield, CTUSA

Direct current (DC) power supply systems for the data center

4 seats Oak Hill7 Sold to ABB 12/12

Status

Redwood City, CAUSA

Smart grid communications network using self-forming, self-balancing, and self-healing radio mesh

$20 Observer GE, Investor Growth Capital, VantagePoint, MissionPoint, zouk

1 Active

Foxborough, MAUSA

Cyber security company with applications for power systems, automation, and control systems

$5 1 seat Deep River Ventures2 Active

Santa Clara, CAUSA

Data center automation and energy efficiency management software

$9 Observer DFJ, Point Judith, Good Energies, Department of Energy

3 Active

RehovotIsrael

Advanced LIDAR technology for remote sensing of wind vectors to optimally align turbines

$3 Observer Cedar Fund, Evergreen Venture Partners, DFJ

4 Active

EdinburghUK

Marine energy conversion using Oyster wave power technology

£18 2 seats Sigma Capital, Royal Academy of Engineering, Scottish Enterprise, et al.

5 Active

San Francisco, CAUSA

6 Electric vehicle (EV) fast charging technology

$19 2 seats Public (NASDAQ: ECTY)Asset Sale

Page 15: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

© ABB April 19, 2023 | Slide 15

Investments – 2 of 2

1 = All amounts in millions unless noted

Company Description Amount1

Board Involvement

Co-InvestorsLocation

Deals listed in chronological order of initial ATV investment.

As of October 1, 2013

Status

Fremont, CAUSA

Highly efficient concentrating photovoltaic (CPV) solar systems

$20 2 seats Oak Investment Partners8 Asset Sale

Tel AvivIsrael

Cloud-based network monitoring and leak detection software platform for water utilities

$3 1 observer Emerald Technology Ventures, Gemini Israel Funds, Giza Venture Capital

9 Active

OrkneyUK

Advanced hydrokinetic device for floating tidal streams and run-of-river applications

$8 2 seats TOTAL, Fred Olsen10 Active

Czech Republic Technology park and Incubation center focused on direct current (DC) technology in the LV and MV space

€2 N/A E.ON, Philips, Alliance Federated Energy

11 Active

ZugSwitzerland

Technology + services company focused on wind farm performance through yaw alignment optimization

€1 1 seat Yellow & Blue Investment Management, b-to-v Partners AG

12 Active

Santa Clara, CAUSA

Electroadhesion technology for robotics, material handling and industrial automation

1 seat Formation 8 and Nike$113 Active

Page 16: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

Beijing, China

© ABB April 19, 2023 | Slide 16

Fund Investments

Fund Name

RepresentativeInvestments

Location

Fund Size

Strategic Focus

Founded

AUM

ET SolarChina Hydroelectric Corporation (CHC)Haiyuan GroupNeo-NeonNetPowerChina SunergyLDK

$271MM USD

2001

Targeting investments in cleantech companies in China or those having a nexus to China with a mix of earlier stage to expansion stage companies

China Environment Fund IV (CEF IV)

$350MM USD

Managing Partner Don Ye

Zurich, CH / Toronto, Canada

TaKaDu1

Evergreen Solar (Nasdaq: ESLR)Pemeas (acquired by BASF)RuggedCom (TSX:RCM)River Basin EnergySynapsenseXunlight

€300MM

Targeting €4-10MM investments in early and expansion stage cleantech companies in Europe and North America

2000

Emerald Cleantech Fund III

€100MM target (€25MM first close)

Gina Domanig

1 ABB Technology Ventures co-investment

Juno Beach, Florida USA

2012

ClearSky Power & Technology Fund

Alex Weiss

New fund, sponsored by NextEra Energy

$350MM target

Strategic fund for NextEra Energy

Targeting late/growth stage equity investments in renewable energy generation, smart grid, energy efficiency, energy storage and air & environment

iControlClean Energy Finance

Other undisclosed investments

Page 17: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

ATV Team

Girish NadkarniPresident, ABB Technology Ventures

Kurt KalteneggerHead of Technology

Andrew TangManaging Director

8 yrs. at ABB; prev. responsible for ABB’s global cost migration program and ran global automotive business for the Robotics Division as Sr. Vice President

Prior: EIR, View Group; President & CEO, vSimplify; Mgr., Corp. Dev., GE; GE Capital; Prudential Capital

Nominated as one of the top 100 global corporate venture capitalists

20 yr. ABB veteran; fmr. head of high voltage circuit breaker development; global medium voltage products BU technology manager

Director of Research Center in China (Beijing) and CTO for ABB CN; more than 30 patents

10+ yrs. VC experience; founding Managing Director at DFJ DragonFund; exits include Broadbus (MOT), Zettacom (IDTI), and NuTool (ASMI)

Prior: Partner, Infineon Ventures; Credit Suisse First Boston (investment banking); Intel and Motorola

MBA, Harvard LL.M., UVA LL.B., University of Mumbai B.Com, University of Mumbai

PhD, Montanistic U. Leoben (solid state physics & superconductivity)

MSc, Karl-Franzens University Graz

MBA, Wharton MSEE, MIT BSEE, UT Austin

© ABB April 19, 2023 | Slide 17

Grant AllenSenior Vice President

Formerly VP at Core Capital Partners ($350MM Washington, DC fund focused on enterprise software)

Notable deals: TaKaDu, Validus, Valen Technologies Prior: Microsoft Corp., Liberty Associated Partners (VC),

Dean & Company (mgmt. consulting), 3 start-ups

MBA, Wharton BSE, Duke

Zurich

Zurich

Palo Alto, CA

Washington, DC

Page 18: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

How to Work with a Corporate VC

Find companies which have in interest in your space

Educate yourself about their strategy and priorities

Approach their corporate venture group – Helpful but not critical that it be through a common connection

In your presentation:

Show how your technology will help them strategically

Discuss the type of support you expect from them other than money

If a deal develops, ensure that there is buy-in from the relevant business unit

© ABB Group - Introduction to ABB Technology VenturesJanuary 12, 20121 | Slide 18

Page 19: © ABB Group - Introduction to ABB Technology Ventures October 15, 2013 | Slide 1 Girish Nadkarni -ABB Technology Ventures Electricity 2013 - Keynote Address.

© ABB Group 091023- Introduction to ABB Technology VenturesNovember 1, 2011 | Slide 19© ABB Group 091111- ATV Investment Strategy & PolicyApril 19, 2023 | Slide 19