ABB Process Automation – NAM Increasing uptime with complete ...

© ABB Group November 21, 2013 | Slide 1

ABB Process Automation – NAMIncreasing uptime with complete solutions

November 14th , 2013 – JP Morgan Fieldtrip Automation Demo Center, Houston, Texas

Important notices

This presentation includes forward-looking information and statements including statements concerning the outlook for ourbusinesses. These statements are based on current expectations, estimates and projections about the factors that may affect ourfuture performance, including global economic conditions, and the economic conditions of the regions and industries that aremajor markets for ABB Ltd. These expectations, estimates and projections are generally identifiable by statements containingwords such as “expects,” “believes,” “estimates,” “targets,” “plans,” “outlook” or similar expressions.

There are numerous risks and uncertainties, many of which are beyond our control, that could cause our actual results to differmaterially from the forward-looking information and statements made in this presentation and which could affect our ability toachieve any or all of our stated targets. The important factors that could cause such differences include, among others:

business risks associated with the with the volatile global economicenvironment and political conditions

costs associated with compliance activities raw materials availability and prices 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 Ltd’s

filings with the U.S. Securities and Exchange Commission, including itsAnnual Reports on Form 20-F.

Although ABB Ltd believes that its expectations reflected in any such forward-looking statement are based upon reasonableassumptions, it can give no assurance that those expectations will be achieved.

This presentation contains non-GAAP measures of performance. Definitions of these measures and reconciliations betweenthese measures and their GAAP counterparts can be found in “Supplemental Financial Information” under “Reports andPresentations” – “Quarterly Financial Releases” on our website at www.abb.com/investorcenter

Agenda

Process Automation (PA) Division Overview

Business model

Process Automation in North America Footprint

Key customers

Feature topics Distributed Control System: 800xA

Service

Shale Gas

Summary


ABB: A global leader in automation and powerHelping our customers become more competitive

Power Products

Power Systems

Discrete Automation and Motion

Process Automation

$9.4 billion29,000

employees

$8.2 billion28,000

employees

Low Voltage Products

$6.6 billion 31,000

employees

ABB orders by region2012 non-consolidated

Europe

Asia

Americas

Middle Eastand Africa

26%

26%

34%

10%

PA revenues by region2012 non-consolidated

10%

30%

37%23% Europe

Asia

Americas

Middle Eastand Africa

$10.7 billion 36,000

employees

$7.9 billion20,000

employees

Process Automation: Products, systems and services across a wide range of industries

Systems

Fully engineered solutions, services and products for process control, safety,

instrumentation, plant electrification and energy management

Oil, Gas and Petrochemicals, Marine, Mining and Minerals, Metals, Pulp and Paper, Others

What we do Key industries served

Control Systems Measurement Products

35%

27%

38%

Service Systems

Domain generic products Domain specific products

Based on typical mix of Orders Received

Process AutomationUnparalleled technology and industry know-how


… and know-how

Domain generic products, industry-specific products, automation system expertise, grid code knowledge, comprehensive service offering

Industry knowledge …Oil, Gas and Petrochemicals, Marine, Mining and Minerals, Metals, Pulp and Paper, others

TechnologyFully engineered solutions and products for process control, safety, instrumentation, plant electrification and energy management


Business modelComplete portfolio + engineering + execution

Main ElectricalContractor

Main AutomationContractor

Integrated Process and Power Automation

ControlSystem

HV/MVPowerDistri-bution

LVPowerDistri-bution

Intelli-gentSwitch-gears

Drives Motors SafetySystems

Telecom Systems

Intelli-gentFieldInstru-ments

Analyzers Consulting

Expertise andConsulting services

ABB Services

Integrated process and power automationTotal ABB portfolio advantage

Drives

Intelligent field instruments

Motors

In-plant power distribution

LV products

Substation

Project Benefits Reduced capexFaster project startups Reduced engineering Less equipment required

Operational BenefitsReduced opexEnergy management Operator efficiency/

productivity Increased safety Reduced lifecycle costs

(training, spare parts, personnel, maintenance)

Control system & software

Safety

Consulting and engineering expertise

Industry expertiseDomain specific solutions provide added value

Metallurgical analyzers

Electro-magnetic stirrers, brakes and

stabilizersSubsea

electrificationGearless mill

drives

Paper machine valves and actuators

Paper quality control systems Turbochargers Azipod marine

propulsion

Unique ABB offering

Automation, telecom & electrical Integrated safety and control Instrumentation Integrated operations Power management Telecom systems Electrification & drives E-Houses Propulsion systems Subsea control system

Example: Floating Production Storage and Offloading vessels (FPSOs)

Industry-specific solutions

Under execution in HoustonNew technology enables production in difficult locations

When complete, the project will be the largest float-out

topside ever built.

Exxon Mobil Hebron project, Newfoundland, Canada

Daily production: 150,000 barrels

Project value: $80 mill+

Scope: automation system, safety system, telecoms, transformers, motors (LV & MV), and drilling drives

Delivery: First oil anticipated in 2017

Total investment: $20bn, operational by 2015/2016

Largest petochemical facility ever built in a single phase

Fully integrated complex now being built at Jubail Industrial City in Saudi Arabia. Comprised of 26 manufacturing units

Will produce over 3 million metric tons of plastics and chemical products

Sadara project – Saudi ArabiaLargest greenfield petrochemical facility

US Gulf coast – benefitting from N. America shale playLow cost of feedstock drives growth


Source: Wall Street Journal

USA & Chemicals:

USA largest consumer of plastics in the world

Low price of natural gas drives investment in the building blocks of plastics, ethylene and propylene

Process automation opportunity in chemicals will also provide further opportunity in discrete manufacturing down the line

The Dow Chemical Company investments:

Restart ethylene cracker in LA

Enhance ethane flexibility at second cracker in LA

Build on-purpose propylene facility in TX

Construct new world-scale ethylene cracker

US Gulf coast – benefitting from N. America shale play ABB delivering value


Small power distribution transformersProvides reliable power distribution in a complex environment

Small power distribution transformersProvides reliable power distribution in a complex environment

Strong safety cultureCommitment to safety

Strong safety cultureCommitment to safety

Energy efficient drivesStandardized delivery of ABB low voltage drives across plants

Energy efficient drivesStandardized delivery of ABB low voltage drives across plants

ABB process automation portfolioDelivery of extended automation across program plants

ABB process automation portfolioDelivery of extended automation across program plants

ProgramsABB solutions and support significantly increase productivity, energy efficiency and process reliability

ProgramsABB solutions and support significantly increase productivity, energy efficiency and process reliability

Process Automation in North AmericaWell positioned for profitable growth

© ABB Inc.

November 21, 2013 | Slide 15

Mfg/Assy (ABB)

Mfg/Assy (Baldor)

Service Center (ABB)

Service Center (Baldor)

Engineering (ABB)

Engineering (Baldor)

NAM Headquarters

Edmonton

Calgary

Winnipeg

Napa

Santa Clara

San Luis Potosí

Tacoma

Thunder Bay

Sudbury

Brampton Whitby

Burlington

Jonquière

Quebec City

St Laurent

DorvalLachineVarennes

Saint John

Veracruz

Coral SpringsMiramar

Lake MarySugar Land

HoustonCrystal Springs

New Orleans

Birmingham

AlamoNashville Cary

Florence

Bartlesville

Jefferson CitySt Louis

New Berlin

Chicago

Pinetops

Raleigh

North Brunswick

BethlehemDanbury

Windsor

Auburn HillsWickliffe

BlandLewisburg

Westerville

South Boston

WarminsterNatrona HtsMt Pleasant

Fort NelsonFort St JohnGrande Prairie

Fox Creek

Edson

Eckville

Red DeerRocky Mtn House Stettler

Bonnyville

Mexico City

Montreal

Process Automation North AmericaGeographical presence

Vancouver

Atlanta

Prairieville

HuntersvilleFort Smith

Athens

Kings Mountain

Marion

WestvilleCarson

Stratford

Jalisco

Columbus

Gainesville

Rogersville

Greenville

Asheville

Oshkosh

Saint Claire

OzarkClarksville

BeltonClio

Cleveland

Claremore Crossville

Fort McMurray

Guanajuato

Zaragoza

Norwalk

Midland

Boulder Pittsburgh

Oil/Gas/Chem.

Oil/Gas/Chem

Chem/Mining/Paper

Marine

Measurement Products

System 800xAOne system for process and power automation

System 800xA overviewIntegration of plant-wide information

Connectivity to existing PLC, DCS and 3rd party

DCS systems

Integrated Process and Power Automation

800xA demonstration


800xA integrated process and power automationIndustry facts from the past

Poor working procedures Organizational barriers between

process and power department Separate system for power automation

Cost drivers A lot of hardwiring needed Old fashioned network equipment Device specific solutions of integration

into DCS

Lack of visibility Lack of information from electrical

devices Many protocols, lack of global standard

800xA Integrated process and power automationNew approach with System 800xA – One system

System Networks

AC 800M

Controller

Fieldbuses

ProcessInstrumentation

ProcessElectrification

SubstationAutomation

PowerManagement

System Servers

IEC 61850

LV Switchgear, Drives, Motor Controller Protection & Control IEDs

Benefits

Improved daily operation

Common working methods

Initial cost savings and over the life cycle

Full support of IEC 61850 to adhere to most modern industry standard

Better power protection possibilities

Increased process availability

Process Automation Power Automation

800xA Integrated process and power automationCost savings over the life cycle

System Networks

AC 800M

Controller

Fieldbuses

ProcessInstrumentation

ProcessElectrification

SubstationAutomation

PowerManagement

System Servers

IEC 61850

LV Switchgear, Drives, Motor Controller Protection & Control IEDs

Cost savings

Less wiring

Fewer cabinets

Less space required

Common system software

Common spare parts

Common training

Common documentation

Process Automation Power Automation

Service opportunitiesDriving growth with broadest portfolio and installed base

ABB aims to cover the entire service value chainTapping our leading installed base and global footprint

Responsive service Installation and

commissioning Break and fix Technical support Spare parts Training

Process improvement Lifecycle management Software services Evolution programs Optimization solutions Remote solutions

Advanced services

Value-creating partnerships Co-develop solutions Strategic partnerships Value-based offerings Productivity and

energy efficiency solutions

Consulting

ABB service in USAMarket situation

Largest global market for Power and Automation solutions

Service Demand trends

Aging infrastructure

Maturing workforce

Desire to outsource services

Efficiency pressures

Lifecycle service (industrial sector) and advanced service (asset health, monitoring, optimization) are must haves

Customers expect One ABB, with clear offering, excellent delivery, and sales differentiation

“Largest service portfolio of any automation supplier

worldwide.”

ARC Advisory Group

“Largest service portfolio of any automation supplier

worldwide.”

ARC Advisory Group


ServicePortSecure, remote service delivery platform

ABB ServicePort is a service delivery platform through which customers and ABB experts can securely access: Diagnostic services Improvement services Performance-sustaining services

ServicePort lets customers subscribe to high-value service “channels” most important to them, instead of addressing maintenance issues as they arise

Customers benefit from latest diagnostic and improvement services – when they want them

ServicePort can also be a valuable on-site resource for visiting engineers to perform advanced services


ServicePort “channels” ABB experts on site when needed, not just when they can be there

ServicePort “channels” ABB experts on site when needed, not just when they can be there

The shale gas opportunityABB with a strong position in North America


Shale: Unconventional gas and liquids revolutionGlobal opportunity, current activity focused in NAM

N. America- Liquids driven- Mature, highly

developed service sector

Europe- Gas driven- Service sector shortage

Asia- Gas driven- Service sector shortage

S. America- Gas driven- High level of local

content required- Service sector shortage

Source: EIA

Shale play – not just gas, but also liquidsSignificant impact on North American Industries


Low gas prices fueling investment in chemicals

Some of the largest projects in decades being announced

Gas extraction and production expected to remain strong for the foreseeable future

Source: EIA

Over 100 active customersOver 50,000 sites automated

Field Optimization

SCADA

Intermitter ChemicalInjection

PlungerController

Gas Assist Plunger Pump Control

ABB: ~50,000 non-conventional gas wells automated Strong position in North America

Ethylene crackers (greenfield and de-bottleneck)Large opportunity for ABB

Significant capital investments ($1-3 bn+ )

Large consumers of Process Automation and

safety Process analytics Instrumentation Drives and motors Advanced control and

optimization Plant electrification Service


All areas of ABB expertise

SummaryABB moving to the next stage of excellence

Next stage of excellencePower and productivity for a better world

Profitable Growth

Business-led collaboration

Relentless execution

Accelerated growth momentum,continued profit focus

Gro

wth

mom

entu

m

Profit

Focus on EPS and CROI

Tomorrow

Today

ABB Process AutomationWell positioned for large North American market

Well-balanced footprint and portfolio offering

Strong domain expertise in key industry sectors

Leading technology with System 800xA

Large service opportunity based on product scope and installed base

Integrated process and power automation solutions for highest operator effectiveness

Core offering to tap into large shale gas and related growth


Significant opportunities to generate profitable growth through business-led collaboration and relentless execution


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