ABB. Carlos Poñe, ABB South Africa, 14/02/2013 ABB South Africa Media Presentation 2012 Annual Results

Transcription

1 ABB Carlos Poñe, ABB South Africa, 14/02/2013 ABB South Africa Media Presentation 2012 Annual Results

2 A global leader in power and automation technologies Formed in 1988 through the merger of Swiss and Swedish engineering companies Predecessors founded in 1883 and 1891 Publicly owned company with head office in Switzerland 145,000 employees in more than 100 countries $39 billion in revenue (2012) ABB Group February Slide 2

3 ABB operations in Southern Africa Offices: Angola Botswana Democratic Republic of Congo Kenya Mauritius Mozambique Namibia South Africa Tanzania Uganda Zambia Zimbabwe ABB ABB Group Group February February 1414, Slide Slide 3 3

4 ABB Southern Africa 1992 ABB South Africa formed 80% ABB Ltd, Zurich 20% WIPCAPITAL (part of WIPHOLD), Women empowerment company Employees ZAR 4.3 billion Orders: 2012 ZAR 3.5 billion Revenues: 2012 ABB Group February Slide 4

5 Overview of Results 2012 Global

6 2012 Q4 and full-year key figures ABB proposes to raise dividend on the back of solid growth and near-record cash flow Full-year 2012 orders and revenues higher despite difficult business climate Continued growth in automation supported by Thomas & Betts acquisition Power Products with solid operational EBITDA margin in a tough environment Continued robust free cash flow generation

7 2012 Q4 and full-year key figures.. Cont Global economic growth remained under pressure through the fourth quarter of 2012 ABB was able to grow orders by 4 percent Base orders (below $15 million) at the same level on an organic basis as in the fourth quarter of Industrial demand for more energy efficient production technologies and the need to deliver more electricity through existing power grids remained the key growth drivers. ABB Month DD, YYYY Slide 7

8 Summary of 2012 Solid growth and near-record cash flow Our long-term growth drivers such as the need for greater industrial productivity, more reliable and efficient power delivery and growth in renewables remain in place. Shorter-term trends such as industrial production growth and government policy are expected to be the main determinants of demand in We will continue to focus on executing our large order backlog and taking advantage of our broad product and geographic scope to capture profitable growth opportunities in line with our targets. We will continue to drive cost savings and productivity improvements equivalent to 3-5 percent of cost of sales every year through improved supply management, better quality and higher returns on investments in sales and R&D. We remain committed to delivering higher cash to shareholders and improving returns on our capital investments in both organic and inorganic growth.

9 Overview of Results South Africa

10 Results overview Orders up 36% Orders increased by 36% to R4,3 billion Large orders reported in solar, motors and generators in Q3 & Q4 Export orders at 15% of total orders for 2012 Revenue up 2% to R3,5 billion South Africa 80% of revenue and cross-border 20% (Mozambique, DRC, Kenya and Botswana) Strong focus on good contract execution Continued improved productivity through integration into one facility (Longmeadow) Order book backlog at R4 billion No acquisitions during the period New capacitor factory in Longmeadow ABB Group February Slide 10

11 Market context ABB Group February Slide 11 Improvement in market conditions, mainly outside South Africa Continued demand from power infrastructure projects in South Africa and Southern Africa Medium voltage switchgear with Eskom and municipalities New power plants in solar and wind Focus on renewables Energy efficiency continues to be a significant driver for customers to reduce costs Price increases over the last three years Old plant and systems, eg. motors, generators (large order for Alrode factory) Process industries invested in service and upgrades of existing plants Mining and minerals seen a drop after July Global customers continue investing in Africa (Mozambique and Tanzania a focus)

12 Market context continued IPPs (Independent Power Producers) Positioned to support IPPs 3 contracts signed for IPP renewable spend in phase 1 Interaction with key players in the market to position ABB as a key supplier Renewable spend Most of the spend coming from solar and wind Number of interested solar developers above expectations Growth in export market i.e. power electronics for mining industry and substations for utilities ABB Group February Slide 12

13 ABB Africa strategy

14 Africa Strategy update Focus on 10 countries, with Egypt and South Africa as distribution hubs Staff numbers in the focus countries have increased significantly 359 hired in 2012 Approx. 120 new ABB people recruited from local communities in countries such as Namibia, Tanzania, Kenya, Mozambique and Angola Sales force and engineers equipped with adequate skills, trained in all aspects of the business New country office now operating in Mozambique and the Democratic Republic of Congo Additional branch offices in other countries - Kenya, Tanzania and Nambia to provide service and support to remote industry centres Enthusiastic response from current and new customers to the increased ABB presence in the countries Continuous growth in both direct and indirect orders enabled ABB to exceed budgets ABB Group February 14 Slide 14

15 ABB Southern Africa Overview

16 Five global divisions Power Products Power Systems Discrete Automation and Motion Low Voltage Products Process Automation MV Switchgear HV Switchgear Service MV & HV Products, Transformer service Capacitors Substations Power Generation Grid Systems Service Robotics Motors and Generators Drives Programmable Logic Controllers (PLCs) Power Electronics Cable Distribution Cabinets Connection Devices Enclosures Low Voltage Systems Circuit Breakers Control Products Enclosed Switches Fusegear Intelligent Building Control Process Control Systems Petroleum & Chemical Industries Paper, Metals & Cement Mining Industries Mine Hoists Measurement Products Service Turbocharging Modular DIN Rail Products ABB Group February Slide 16 Switches

17 Review of Automation business Record year for orders driven by Pulp & Paper, Mining and Service Mine winder acquisition (2011) delivering solid returns on investment and business now rapidly expanding globally Automation solutions and products required to optimise industrial plant showed above-average growth (regionally) Service and Maintenance business grew with focus on plant availability and optimisation Key projects Eskom medium voltage motors order - $13 Million Project GoCell SAPPI cellulose line expansion, ABB supplies electrification and automation - $15 Million Five-year Full Service agreement for Namibia Custom Smelters - $18 Million in the first phase ABB February Slide 17

18 Review of Power Business Increased demand for our products and solutions from the oil and gas industry and utilities Increased number of enquiries from the mining sector bodes well for orders in 2013 Key projects Medium voltage switchgear order from oil and gas company for the replacement of medium voltage switchgear at 6 sub-stations in Secunda Cahora Bassa HVDC transmission line to provide maximum of 1920 MW to South Africa Sun Edison Solar power orders for photovoltaic (PV) power plants in northern province of Limpopo - $225 Million ABB February Slide 18

19 South Africa Localisation and skills development New capacitor factory in Longmeadow Consolidated Cape Town operations at new state-of-the-art building - opening in April 2013 Level 4 BBBEE supplier Strong focus on supply chain development with SMEs Localisation initiatives with customers internships, technical skills transfer and training ABB School of Maintenance equipping internal and external stakeholders with product knowledge Close links with universities for technology transfer and engineering and partnership with The Ithemba Institute of Technology in Soweto ABB Group February 14, 2013 Slide 19

20 Outlook for 2013 ABB well positioned to tap into growth drivers Growth drivers Increased demand from utilities throughout the Southern Africa region Renewable energy in South Africa Connecting remote power for utility and mining projects (mining electrification and harbours) Continued demand for mining and minerals Oil and gas markets will continue to show growth (Mozambique, Tanzania and Uganda) ABB positioning Reputation to execute large projects Stronger product support due to quality, reliability and local expertise (Africa strategy) Large pool of engineering skills Entrenched customer relationships around Southern Africa Ability to provide customers with integrated solutions ABB February Slide 20

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