TÖÖSTUSE ÄRIPLAAN 2018, 30.11.2017, SWISSOTEL, TALLINN ABB in Baltics Today and tomorrow Jukka Patrikainen, Country Manager, Baltic States
ABB One Campus, Jüri Drives and Renewables Factory Grids Integration Business Unit Motors and Generators Factory Turbochargers Service Station Compact Secondary Substations Factory Process Industries Business Unit Low Voltage Systems Factory Headquarters Sales and Service, Support Functions November 28, 2017 Slide 2
ABB in Baltic States 8 locations and 5 factories More than 1800 employees Estonia: ~1750 Latvia: ~60 Lithuania: ~75 8 locations Estonia: Jüri, Jõhvi, Tallinn, Tartu Latvia: Riga Lithuania: Vilnius, Kaunas, Klaipeda 5 factories in Jüri, Estonia Motors and generators factory Drives and Renewables factory Low voltage systems factory Compact secondary substations factory 2016 Global Business Service (GBS) opened in Tallinn Estonia Latvia Lithuania Finland Inhabitants [M] 1,3 2,1 2,9 5,5 GDP [BN ] 21 25 39 218 Import [BN ] 16 14 29 79 Export [BN ] 17 15 28 76 SEB Nordic Outlook September 2017 Slide 3
ABB history in Baltic States ABB starts business in Baltics. First (switchboards) factory in Keila, Estonia The ABB Baltic organization was formed Motors and generators factory opening in Jüri, Estonia Drives and renewables factory s opening in Jüri, Estonia Estlink 1 HVDC Light underwater cable Compact secondary substations factory opening in Maardu, Estonia NordBalt HVDC Light power link 1992 2000 2002 2005 2006 2008 2010 ABB delivers 168 DC fast charging stations for EV in Estonia LitPol - HVDC converter station in Lithuania ABB One Campus opening in Jüri, Estonia Title of Foreign Investor to ABB AS (also in 2007-2009, and 2011) ABB new office opening in Vilnius, Lithuania Regional Global Business Services Center opening ABB AS reaches to gold level with responsible business index (also in 2015) ABB AS won the Best Traineeship contest 2012 2013 2013 2014 2015 2016 2016 2016 November 28, 2017 Slide 4
Attractive customer dynamics Utilities ~$7 trillion renewables investment next 25 years 300 HVDC projects planned Industry 26 bn things connected by 2020 18% p.a. growth machine-to-machine industry 2020 Transport & Infrastructure >63% urban population by 2050 Smart home market to triple to ~$36 bn in 2020 $5 bn microgrid market 2025 ~50% CAGR stationary energy storage (GWh) 2.6 mn industrial robots by 2019 from 1.2 mn today ~30% CAGR cloud computing infrastructure and platforms Energy management market to more than double to $44 bn by 2020 >50% of cars sold in 2030 will be electric November 28, 2017 Slide 5
Digital revolution coming to industrial markets Digital technologies are driving new innovation in industrial markets Virtual/augmented reality Software-defined machines Machine learning Time-sensitive networking Big data Inexpensive computing Cloud computing Cybersecurity Connectivity Blockchain Media is focused on B2C but the killer app is in B2B November 28, 2017 Slide 6
Digital revolution coming to industrial markets Industrial markets primed to adopt digital technologies Computing + connectivity + cloud + analytics set to unlock value November 28, 2017 Slide 7
ABB Ability Offering smart digital solutions to improve our customers productivity and lower environmental impact Electrification solutions Factory automation IT and OT solutions Digital solutions & software development Process industry (UGM, OPG, etc.) Power generation W&WW Food & beverage Metal Wood & furniture Process industry /UGM, OPG, etc.) Power generation W&WW End customers OEM-s ABB Transport & infrastructure Transport & infrastructure Discrete manufacturing Our value is customer focus & quality November 28, 2017 Slide 8
Europe is moving towards renewable power generation Net Capacity Changes in EU-28 Power Generation 2000-2015 GW 140 100 60 20-20 -60 November 28, 2017 Slide 9 Source: GLOBAL MARKET OUTLOOK FOR SOLAR POWER 2016-2020
The Current Role of Renewables in the European Power Generation Renewable Power Generation vs Demand in 2015 Hydro Wind Solar 100% 60% 10% 80% 60% 40% 5% 40% 20% 20% 0% NO IS CH HR LU AT ME SE BA LV MK SI RO RS FI LT PT SK EU 0% DK PT ES DE SE EU HR NL AT IT FR FI 0% IT GR DE ES BE LU RO BG CZ EU SK DK SI LT PT FR Benchmark NO 96% SE 47%, LV 35%, FI 25%, LT 22% EU average 17% Benchmark DK 51% LT 18%, SE 10% EE 8%, EU average 8% FI 4% Benchmark IT 9% EU Average 3% DK 2%, LT 2% November 28, 2017 Slide 10 Data Source: ENTSO-E
Renewables projected deployment by 2040 Wind and Solar: new players all over the world IEA New policies scenario Net capacity additions 2014-2040 Europe & North America (OEDC) Hydro China Wind Solar PV Other renewables 771 GW 768 GW Japan 100 GW India Southeast Asia Latin America M. East & Africa 109 GW 334 GW 186 GW 320 GW Wind, hydro and solar are most prevalent technologies November 28, 2017 Slide 11 Source: International Energy Agency (IEA), WEO 2014
Market outlook for our customer segments in Baltics Market development for 2017-2018 Utilities Industry&Generation Transport & infrastructure Distribution Transmission Generation Stable investmenst plans Wind, several pre studies Pulp & paper Mining Food & Beverage - F&B 5-10 new projects Rail Com. buildings Buildings EV-charging November 28, 2017 Slide 12
Service our global and local expertise to drive your business results Long-term commitment to maintain your assets What do we offer? Rapid response We guarantee fast and flexible response to maximize your equipment uptime Repairs Spares and consumables Replacement Training Service agreements Performance improvement We optimize connectivity, reliability and efficiency of your assets to increase speed and yield Engineering and consulting Maintenance Advanced services Extensions, upgrades and retrofits Training, Service agreements Lifecycle management We employ powerful tools and knowledge to optimize and extend your equipment life Installation and commissioning Maintenance Extensions, upgrades and retrofits Replacement Spares and consumables Training End of life services Service agreements Operational excellence We together manage your assets, operations, and risk to deliver strategic business results Advanced services Engineering and consulting Extensions, upgrades and retrofits End of life services Service agreements Planning partner Product, solutions, systems provider Operations partner November 28, 2017 Slide 13 www.abb.com/service
How ABB Ability solutions deliver value Digitally connected products and services providing expertise Together Analyze Collaborate Sense Act Do better Analyze Analyze Optimize Sense Act Sense Act Do more Analyze Automate Know more Sense Act Assess November 28, 2017 Slide 14
Industry Improved productivity (<200%), reduced energy (<30%), & longer product life (<30%) SELECTION Connected robots Manufacturing execution systems Energy assessment Cybersecurity assessment Digital simulation for robot deployment Power quality monitoring & demand-response Distributed control systems Remote monitoring & optimization November 28, 2017 Slide 15 www.abb.com/abb-ability
People make the difference The best want to work in a first-class environment Every person is important for us, from every person we expect unique contribution. Each of our employees must have a clear understanding of their role in the company and clear targets. ABB is one of the most multi-cultural companies in Estonia. We are from different cultures, this is our strenght. One ABB. And don t forget, that each of you can make the difference. November 28, 2017 Slide 16