—ABB SWITZERLAND LTD APRIL 2ND , 2019

Digital Transformation – Strategic approachWhich pillars to addressWolfgang Felber, Country Digital Officer

—Digital Transformation – Strategic approachWolfgang Felber

—Industrial markets primed to adopt digital technologies

April 3, 2019 Note: relative size of industry for advanced economiesSource: ABB analysisSlide 3

Computing + connectivity + cloud + analytics set to unlock value

Time

Leve

l of

digi

taliz

atio

n

Digital S-Curve

Agriculture

Buildings

Mining & Metals

Food & Bevarage

Retail

MarineRail & Road Logistics

Oil & GasChemicals

Automative/DiscreteUtilitiesHealthcare

Finance &Insurance

Media ICT

Other industriesABB end-market

—

Individualization& customization

Shorter productlifecycles

Efficiency& productivity

ABB AbilityTM Smart Building

April 3, 2019 Slide 4

Embedded digital factory

Suppliers

Energy

Customers

ABB AbilityTM

Smart Factory

The picture can't be displayed.

Consumers

Workers

Robots Process

Logistics

Cloud

Connected

Optimized

Transparent

Proactive

Agile

Initiative to transform selected ABB factories to factories of the future that will act as blueprints for other ABB manufacturing sites

—Connectivity - Integration

—Control Technologies

April 3, 2019 Slide 6

Edge

OT

IT

Plant Wide AutomationProcesscontrol

Safety Electricalcontrol

Manufacturing Operations ManagementProcessIntelligence

ManufacturingExecution

ProductionIntelligence

ProductionOptimization

Extended capabilities and enterprise view

FleetManagement

BusinessAnalytics

PredictiveMaintenance

MobileOperations

Collaboration AdvancedServices

Connect

AggregateSecure

Act

Visualize

Prescribe

Analyze Predict

Cyb

er s

ecur

ity

PlantAutomation

—Digital and Collaborative Operations

April 3, 2019 Source: ABB Digital TransformationSlide 7

What this could look like

Level 1

Level 2

Level 4

Level 5

Component

System

Plant

Fleet

Corporate

Level 3

Step 1: Define Standard for Digital Hierarchyand Data Management

Cus

tom

er C

APA

BIL

IITY

AB

BA

rchi

tect

ure

DataStorage

ABB AbilityCloud Gateway

DataGateway

Step 2: Integrate Software, IT,OT across the digital hierarchy

Analytics Tools

Datalake

Cloud

MES/ LIMS

Energy SW

Asset SW

RTDB

DCS

PLC

IT/OT Integration

Step 3: Activate enablingservices

Step 1: Implement Standard data transferarchitecture to ABB Ability Cloud

Step 2: Collate integrated datainto Collaborative Operations

Center

INTEGRATEDOVERVIEW

q Energy Optimization

q Condition Monitoring

q Operations & Tech.Support

q Analytics andVisualization

q PerformanceOptimization

q Cyber Security

INTELLIGENTOVERVIEW

Step 3: Integrate performancemonitoring for Intelligent

Overview

Step 4: Apply AI and externaldatasets for Smart Operations

Center

Step 4: Enable enhancedcollaborative operations at Nestle

SMART COLLABORATIVEOPERATIONS CENTER

WeatherData Traffic Data

+

BY

USI

NG

DIG

ITA

L TW

INA

ND

AZ

UR

EST

AC

K

—Operator environments: Increasing amount of data presented

April 3, 2019 Slide 8

Complexity beyond human comprehension

Decision making: human operator – Data based support: Artificial intelligence

~1910

~1990 ~Today Future

—Digital operations for Datacenter

April 3, 2019 Slide 9

Improved productivity, reduced energy, & longer operation life

Cybersecurity assessment Power quality monitoring &demand-response

Digital operations

Distributed control systemsEnergy assessment

Remote monitoring &optimization

SELECTION

—Autonomous AutomationUsing Artificial intelligence AI in industrial applications

—

Connectivity Blockchain

Time-sensitivenetworking

Digital technologies are driving new innovation in industrial markets

April 3, 2019 Slide 11

Media is focused on B2C but the “killer app” is in B2B

Virtual/augmentedreality

Software-definedmachines

Machine learning Big data

Inexpensivecomputing

Cloudcomputing

Cybersecurity

—Draft – Privileged and Confidential – Prepared at the request of Counsel

Robotics, PLC1, process control Software, digital solutions Cyber-physical systemsMotors Drives

ABB Ability™

Digital operations

Autonomous operations

Automated operations

Electronics

Copper & iron

Artificial Intelligence

Expertise

Nerves, Senses

Muscles

Brain, Logic

Long-term committed to driving pioneering innovation

April 3, 2019 1Programmable Logic ControllersSlide 12February 28, 2019

—From physical to digital differentiation

April 3, 2019 Slide 13

Mastering the control room - Closing the loop

Maintenance

Operation

Control

Plant / equip. health

Operational data

Measurements

Service action

Set points

Control signals

Analyze

Act Sense

—

Steady state control Normal operationStart, transients, stop Complete plant lifecycle

AutonomousAutomated

Automated systems move towards autonomous

April 3, 2019 Slide 14

TMAnalyze

ActSense

Analyze

ActSense

Understand

SolvePerceive

—Deterministic vs. AI systems

April 3, 2019 Slide 15

Critical situation (safety relevant) Non-critical situation (improving effectiveness)

“better safe than sorry” “nobody is perfect”

Roles in autonomous systems

False -Danger! Operator intervention

False +Impacting availability

Correct reaction Correct reaction

Impacting trust

False -

False +

Undetected

Detected

Improperly detected

—Artificial Intelligence is key technology for the next level of industrial progress

April 3, 2019 Slide 16

AI: “The ability to learn or understand or to deal with new or trying situations”1

Human

Systems designed by experts

+ Intuition

+ Creativity

+ Expertise

– Computation

Artificial

Knowledge learned from data

– Intuition

– Creativity

+ Expertise

+ Computation

Augmented

Amplifying human potential

1Webster referring to intelligence

Experts supported by algorithms

—Examples

—Manipulate and move

April 3, 2019 Slide 18

Autonomous robots designed for target segments

“Data center sheriff” “Motor crawler” “Transformer diver” “Plant helicopter”

—Steering towards autonomous ships

April 3, 2019 Slide 19

From… To…

Changing the view of the captain

Revolutionizing transport with AI

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