© ABB IndiaJune 1, 2012 | Slide 1

ABB India Strategic initiatives

AGM, Bangalore, Biplab Majumder, 19 May 2009

A AA

© ABB IndiaJune 1, 2012 | Slide 2

Overview

Economic environment : 2008

ABB India results

Strategic growth areas

Strategic initiatives

Operational excellence

Sustainability

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Economic environment

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Economic environment : 2008

Slowdown in growth of Indian economy due to steep increase in global commodity prices in first half of the year and financial crisis in the second half

Delay in decision making and deferment of large projects due to liquidity crunch

High inflation and currency fluctuations created cost push

Deceleration in major sectors like Infrastructure, Metals, Automobile, Capital and Engineering goods

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ABB India results

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Major highlights

Order Backlog equivalent of 9 months revenue

Contribution of large orders : 1/3rd of total orders

Major businesses have grown >25%*

Strategic growth areas contribute ~20% of total business

Company remains debt free with positive cash flow

Earning per share increases to Rs 25.83 from Rs 23.2 for face value of Rs 2 / share

• Correcting for business loss from exiting Rural Electrification Segment of Power Systems division

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Business wise revenue break up

Y-o-Y comparison2008 2007 %

Power Systems 23,318 22,514 3.6*Power Products 20,492 16,320 25.6Process Automation 13,334 10,665 25Automation Products 17,376 13,333 30.3Robotics 809 344 135Unallocated 2,64 91 190Internal -5,866 -3532Total 69,463 59,736 16.3

* Exited from rural electrification business

MINR

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Performance highlights

Y-o-Y comparison2008 2007 %

Orders received 80,541 76,682 5Order backlog 61,618 50,260 23Revenue 69,463 59,736 16.2Profit before tax 8,332 7,565 10.2Profit after tax 5,474 4,916 11.3

EPS increases to Rs 25.83 from Rs 23.2 for face value of Rs 2 / share

MINR

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Strategic growth areas

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New growth opportunitiesRailways, Water, Wind

Auxiliary & propulsion converter, Traction transformer & motors, Turbochargers, SCADA, Medium voltage products, Substations and electricals for metros (AC & DC)

Railways

Water

Wind

Motors & drives, Instrumentation, Electrical & control systems, SCADA systems

Generators, LV and MV drives, MV switchgears, Transformers, Low voltage products, Control and protection, Electrical sub-stations

Business Contribution ~ 12% of total orders

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Service and asset management

Remote ServiceA feature of ABB Robotics Service Agreements

Business Contribution ~ 10% of total orders

Lifecycle services Packaged solutions, maintenance, repair, overhaul & remote diagnostics

Consulting Benchmarking audits for performance improvement

Asset management Feasibility & Benchmarking Audits

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ABB contributions to energy efficiency

Upto 30% energy saving potential with ABB technology

Robots Drives Motors Wind generators Capacitors

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Strategic initiativesNew productsCapacity expansion

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New products launchedPower Products

33kV compact substation High Current Transformers with Silicone rubber insulators

Distribution Relay (Ring Main application)

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New products launchedAutomation Products

Low voltageDrives(Machinery Application)

Low voltage energy efficient motors

2.3 MW High voltage wind generator

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Mid size robot IRB 4600

Target industry -Plastics, Foundry, Machine tools and Solar

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New products rolled out Wind Power Generator Traction motors for Metros and modern electric locos

HV machines and wind generators are being exported across the world

HV machines factory, Vadodara

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Low voltage motors expansion & Instrumentation factory, Faridabad

Introduction of Efficiency -1 motors for domestic and exports

Complete range of magnetic flow meters, SWAS packages positioned to cater demand from power generation, water projects and process industries

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Small power transformers and bushings, Vadodara

Small power transformer : Annual capacity of 5000 MVA

Bushings : Capacity enhanced from 900 nos. to 1800 nos.

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Breakers & Auxiliary Systems, Vadodara

Expansion, modernization of existing facility upto 765 kV

Global focused factory exporting 72.5 kV breakers across the world

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18-acre facility

Manufacturing facility for low voltage systems, low and medium voltage drives and systems, and power electronics

Automation products manufacturing facility, Nelamangala

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Repair, upgrade, modification & maintenance facility for AC machines up to 200 MW Large DC machines up to 100 MW Traction motor

Machines Service, Mumbai

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Operational ExcellenceProject execution

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220 kV substation, GETCO Rajpar

CEA has selected this project for

“Gold Shield”

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220 kV substation, WBSEB Bishnupur

Asian Power Award for Best T&D

Substation in Asia

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Electrification of DMRC Phase II: MO & RO Corridor

Project delivered 3 months ahead of schedule

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Electrics & Automation: Grasim Cement, Shambhupura

Intelligent motor control center reduce overall

commissioning time

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Tata Motors – World Truck Project

29 robots installed in

main production

line

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Infrastructure & Electricals, HVAC – Delhi Metro Rail Bhavan, New Delhi

Letter of appreciation from DMRC

Green Building –Eligible for

carbon credit

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Sustainability

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Government Girls’ school adopted in Faridabad Up gradations include sanitation and drinking water facilities and

classrooms Teacher’s training, health camps and extra-curricular activities will be

taken up in the next phase Jürgen Dormann Foundation has identified three technical institutes &

altogether twelve scholarships shall be awarded Three scholarships already awarded to needy students of RV

college of engineering, Bangalore.

Sustainability initiatives

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