Slides
Page 1
© 2025 ABB. All rights reserved. Q2 CY2025 Results Revenue and backlog expansion drive resilient performance ABB India Analyst Call | Q2 CY2025 | April – June 2025 B E N G A L U R U , I N D I A | A U G U S T 2 , 2 0 2 5 | S A N J E E V S H A R M A , C M D & T K S R I D H A R , C F O
Page 2
— © 2022 ABB. All rights reserved. Important notices August 2, 2025 Slide 2 This presentation includes forward-looking information and statements including statements concerning the outlook for our businesses. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions, and the economic conditions of the regions and industries that are major markets for ABB Ltd. These expectations, estimates and projections are generally identifiable by statements containing words 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 differ materially from the forward-looking information and statements made in this presentation and which could affect our ability to achieve any or all of our stated targets. The important factors that could cause such differences include, among others: • business risks associated with the volatile global economic environment and political conditions • costs associated with compliance activities • 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 India Limited’s filings with the Securities and Exchange Board of India (SEBI), including its Annual Report. Although ABB Ltd believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved.
Page 3
—— ABB in India at a glance ABB Group ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while becoming more efficient, productive and sustainable so they outperform. At ABB, we call this ‘Engineered to Outrun’. The company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB). ABB in India ABB is present in India for over a century and manufacturing for more than 75 years. The manufacturing unit is a listed entity. It operates with the entire eco-system of ABB R&D, Engineering, and Services. Electrification Distribution Solutions Smart Power Smart Building Installation Products Service Motion Drive Products System Drives NEMA Motors IEC LV Motors Large Motors & Generators Traction Service Process Automation Energy Industries Process Industries Marine & Ports Measurement & Analytics Robotics & Discrete Automation Robotics Machine automation1 1 – Machine Automation division is not part of ABB India & is run separately out of ABB B&R 5 Manufacturing locations Shop floors 25 28 Sales offices Partners750+ Exporting to 30+countries
Page 4
ABB India has delivered heathy returns over the past 30 years Total Shareholder Return over 8,500%; consistent dividend payout every year since listing Key Market Indicators as on June 30, 2025 vs February 08, 1995 Share Price 6,745% Market Capitalization A lot of 100 shares worth vs ~₹8,883 Net worth Key Financial Performance Indicators 2024 vs 1994 Revenue from operations (in Crore) Despite change in business structure due to divesture PAT EPS DPS Dividend Payout 68x >₹6 lakh 33x 20x 37x Margin almost doubled to ~15% 27x 6,209% 2,850 bps ABB India marks 30 years of listing on the National Stock Exchange
Page 5
Business highlights
Page 6
© 2024 ABB. All rights reserved. Slide 6 H1 CY2025 highlights Resilient performance amid softening market environment • Growth in base order; large orders delayed • Strong order backlog distributed across all business areas • Steady revenue growth • Profitability tempered by forex volatility and on-offs • Strong cash position 6,169 7,042 6,787 H1/23 H1/24 H1/25 Orders -4%1 14%1 4,920 5,911 6,335 H1/23 H1/24 H1/25 Revenue 7,727 9,517 10,064 H1/23 H1/24 H1/25 Backlog 6%1 23%1 7%1 20%1 721 1,211 1,110 H1/23 H1/24 H1/25 -8%1 68%1 14.7% 20.5% 17.5% H1/23 H1/24 H1/25 25.53 42.58 38.9 8 H1/23 H1/24 H1/25 EPS -8%1 67%1 PBT (before exceptional) 4,092 4,872 5,154 H1/23 H1/24 H1/25 Cash 6%1 19%1 1 . YoY comparable
Page 7
— — Q2 CY2025 highlights 2. Figures are on cumulative basis Financial performance • Base orders +5%1; large orders impacted by subdued market conditions • Revenue +12%1; highest second quarter revenue in the last five years • Cash balance at INR 5,154 crore • The Board of Directors declared an interim dividend of INR 9.77 per equity share of face value of INR 2 each 1. YoY comparable • Introduced an optimally designed LV Titanium Variable Speed Motor platform • ABB motor for Indian steel plant sets world record with 99.13% energy efficiency Sustainability • Reduction of ~87.5%2 in own GHG (Scope 1 & 2) emissions as compared to baseline in 2019 • Rated "strong" in ESG performance by CRISIL • Comprehensive sustainability training delivered to over 50 suppliers Portfolio Revenue and backlog expansion drive resilient performance
Page 8
—— Stronger momentum in core segments in Q2, complemented by few emerging segments Discrete Industrial robotics applications in automotive and electronics segment Process Demand from energy, pulp & paper, mining, and paint companies Transport Positive momentum in railways, two-wheelers, EV Order backlog +6%1 at INR 10,064 crore 1. YoY comparable. Orders (-12%)1 INR crores 3,044 3,147 3,435 2,695 3,036 -40% 0% 40% 80% 120% Q2/23 Q4/23 Q2/24 Q4/24 Q2/25 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Orders YoY Growth % Revenues (+12%)1 2,509 2,757 2,831 3,365 3,175 -40% 0% 40% 80% 120% Q2/23 Q4/23 Q2/24 Q4/24 Q2/25 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Revenue YoY Growth % Buildings & Infrastructure Encouraging growth trajectory for smart building solutions
Page 9
— © 2022 ABB. All rights reserved. Proven capabilities leading to significant wins August 2, 2025 Slide 9 Ultra-Low Harmonic drives for leading sustainable carbon black manufacturer Machine and factory automation solutions for a large paints and polymers company Distributions Solutions for a power and energy major SCADA, Remote Terminal Units for pipeline projects System drives for a tyre manufacturing company Robotics solutions for an Indian electric two-wheeler manufacturer Power Electronic Building Block and control systems for Indian Railways Automation of smelter for a large aluminium producer
Page 10
— © 2022 ABB. All rights reserved. Continuous customer engagement Diverse segments, deeper coverage ABB Technology Day with steel major in Mumbai Bhubaneshwar ELSP & SB cluster team hosts exclusive product seminar MODP and MOIM teams host ‘ABB Technology Day’ in Ajmer, Rajasthan ELSE team organized the ABB Technology Day for Metal and Mining industry customers at Barbil, Odisha ELSE hosts technical training for MV & LV service partners MODP empowers channel partners at Drive Products Partner Expert Days 2025 ELSB Building solutions teams showcased Next-gen home automation solutions at Smart Home Expo 2025 PAEN India showcases automation prowess at Bharuch, Gujarat
Page 11
— © 2022 ABB. All rights reserved. Diverse businesses catering to 23 market segments Deep domain expertise and a commitment to customer value — High Moderate Low Data Center Electronics Renewables Water & wastewater Railways & Metro Buildings & infrastructure Oil, gas & chemicals Food & beverage Pharma & healthcare Automotive Rubber & plastics Power distribution Cement Metals & Mining Pulp & Paper Marine & Ports Textiles
Page 12
— © 2022 ABB. All rights reserved. Theme for the quarter Pharma and Healthcare: a deep-dive • Globally, India ranks 3rd for pharmaceutical production by volume; Exports contribute ~50% • Pharma industry to reach ~$130B by 2030, a CAGR of ~12% from 2024 (EY Report) Government Initiatives • 2025-26 budget of ~$11.50B for the healthcare sector; up ~10% YoY • Pharma Vision 2047 – become a global powerhouse in pharma through self-reliance, innovation, and global expansion • PLI scheme with a total outlay of $2.04B from 2020-21 to 2028-29 • Pradhan Mantri Bhartiya Janaushadhi Pariyojana for affordable generic medicines. Healthcare coverage through Ayushman Bharat Key Trends / Capabilities • Adoption of advanced technologies by pharma companies for improved efficiency, risk monitoring, addressing ESG challenges, etc. • India has the largest number of USFDA-compliant pharmaceutical plants outside the US and over 2,000 WHO-GMP approved facilities • Emerging Medical Tourism Hub, providing cost-effective treatments with the latest technologies Segment Insights Key Drivers & Trends Source: EY Parthenon Report, India Brand Equity Foundation Report, News Articles 42 49.78 65 130 450 2021 2023 2024P 2030P 2047P In billion $ • India's hospital market is to grow at a CAGR of ~8% from FY23 to FY32, reaching ~$194B • Biotechnology market is to grow from $137B in 2022 to $300B by 2030, a CAGR of ~10% Pharmaceutical Market ABB offerings include ABB Ability Manufacturing Operations Management, ABB Ability APM Suite, Distributed Control Systems, Automation Solutions, LV Motors, Variable Speed Drives, UPS, MV switchgear and others
Page 13
Target (2025): 87% Achieved (till Q2): 87.5% 3 Water Positive Units (No.) — Sustainability in Practice On track for achieving our green goals for 2025 3 Zero waste to landfill units (No.) 87.50% Scope 1&2 GHG Emissions* 41.0% Water Recyclability (%) Target (2025): 4 Achieved (till Q2): 3 Target (2025): 50% Achieved (till Q2): 41% Target (2025): 4 Achieved (till Q2): 3
Page 14
— © 2025 ABB. All rights reserved. Slide 14 Performance with Purpose Focus on local development, education, diversity& inclusion and healthcare for communities Project – Strengthening Circular Economy through Women in e-waste entrepreneurship in Bangalore Phase 2 of Digitization of classrooms – across Govt schools in Peenya and Nelamangala New community IT Skill Center in Ballabhgarh, Faridabad Health awareness and special health camps for communities across locations Science / STEM education program across Govt schools in Peenya and Nelamangala for 2025-26 Electrification programs for the new batches in Faridabad Smart Center for 2025-26 Waste management – a Material Recovery Facility in Kasol, Himachal became operational Water Conservation – Borewell Recharge solutions in villages in Nelamangala Education & Skilling Diversity & Inclusion and Communities and Environment
Page 15
— © 2025 ABB. All rights reserved. Slide 15 Megatrends Outlook — Resilient market environment, despite geopolitical and trade uncertainties Electrification Digitalization and Automation Energy Transition Sustainability Macro factors Continued Govt. expenditure Revival in Private Investments Increase in Private Consumption Easing Inflation
Page 16
Financial highlights
Page 17
— © 2022 ABB. All rights reserved. Performance Summary Q2 2025 August 2, 2025 Slide 17 Values in INR Crores 2024 Q1 25 Q2 24 Performance Indicator Q2 25 vs Q2 24 vs Q1 25 H1 25 H1/24 Vs H1 24 11,497 3,545 2,890 Base Orders Received 3,023 +5% -15% 6,568 6,124 +7% 1,582 206 545 Large Orders Received 13 219 918 13,079 3,751 3,435 Total Orders Received 3,036 -12% -19% 6,787 7,042 -4% 9,380 9,958 9,517 Order Backlog (end of period) 10,064 +6% +1% 10,064 9,517 +6% 12,188 3,160 2,831 Revenue 3,175 +12% Flat 6,335 5,911 +7% 2,305 582 542 EBITDA 414 996 1,108 18.9 18.4 19.2 EBITDA % 13.0 15.7 18.7 2,513 636 594 Profit Before Tax (PBT) 474 -20% -25% 1,110 1,211 -8% 20.6 20.1 21.0 PBT % 14.9 17.5 20.5 1,875 474 443 Profit After Tax (PAT) 352 -20% -26% 826 902 -8% 15.4 15.0 15.7 PAT % 11.1 13.0 15.3 5,390 5,756 4,872 Cash balance 5,154 5,154 4,872 • Orders: Growth in base orders in Electrification and Motion • Revenues: Higher revenue from electrification offset by process automation • Profitability: Impacted due to mix, sourcing, forex volatility and one-offs • Cash: Strong collection; inventory stocking up to meet future delivery Key Insights
Page 18
© 2024 ABB. All rights reserved. Slide 18 Forex volatility impacting profitability — Figures in INR Crores 349 542 414 14% 19% 13% 0% 5% 10% 15% 20 % 25% 0 100 20 0 300 400 500 600 70 0 Q2/23 Q4/23 Q2/24 Q4/24 Q2/25 EBITDA EBITDA EBITDA% 393 594 474 16% 21% 15% 0% 5% 10% 15% 20 % 25% 30% - 100 20 0 300 400 500 600 70 0 800 Q2/23 Q4/23 Q2/24 Q4/24 Q2/25 PBT (before Exceptional) PBT (bef Exceptional) PBT% 14.0 20.9 16.6 Q2/23 Q4/23 Q2/24 Q4/24 Q2/25 EPS 21.0% 14.9% 4.6% 2.0% 0.4% 0.1% PBT% for Q2/2024 Material cost Other Expenses Personnel expenses Other income PBT% for Q2/2025 PBT Bridge 296 443 352 12% 16% 11% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20 % 0 100 20 0 300 400 500 600 Q2/23 Q4/23 Q2/24 Q4/24 Q2/25 PAT PAT PAT% Revenue mix + sourcing
Page 19
— © 2022 ABB. All rights reserved.Slide 19August 2, 2025 Evolving order backlog Base orders and large orders include service orders 7,727 8,008 8,404 8,935 9,517 9,995 9,380 9,958 10,064 -1000 1000 3000 5000 7000 9000 11000 13000 15000 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Order Backlog 2,886 2,442 2,547 3,234 2,890 2,719 2,654 3,545 3,023 158 562 600 373 545 623 41 206 13 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Orders Received (for the quarter) Base Orders Large Orders INR crores +6% YoY Key Takeaways • Backlog: Order backlog continues to have a majority share of base orders with a seamless execution coverage over next 4 quarters • Large orders: Large orders follow project milestone trajectory; consists of orders from railways, electronics, mining, pulp & paper, energy, and paints majors
Page 20
— © 2022 ABB. All rights reserved. Demand vs Supply Q2’25 Orders for ABB in India is -12% while for ABB Group it is -9% in Q2’25 ABB Group India Orders ABB India Ltd Reported Orders Domestic and Export Q2/25 Q2 24 Change % 3rd party customers in India (Domestic) 320 360 -11% Exports 41 49 -16% Orders from India 361 409 -12% Fig in MUSD @ 1 $ = 83.91 INR Indian 3rd party customers served by Q2/25 Q2/24 Change % ABB India Ltd 320 360 -11% Other ABB companies in India 9 4 +125% ABB companies outside India 5 4 +25% Group India Orders 334 368 -9%
Page 21
— © 2022 ABB. All rights reserved. Financial statement overview August 2, 2025 Slide 21 Q2 2025 vs Q2 2024 Other income: 99.7 Cr (86.8 Cr) Comprises interest on fixed deposits Material cost: 61.8% (57.2%) Material cost impacted by revenue mix, higher import content and forex Personnel expenses: 216 Cr (203 Cr) Salary revision and head count increase Other expenses: 528 Cr (477 Cr) Increase in revenue linked costs Crs % Crs % Crs % Crs % Crs % Crs % INCOME ` ` ` Revenue from Operations 3,175.4 100.0 3,159.6 100.0 2,830.9 100.0 6,335.0 100.0 5,911.2 100.0 12,188.3 100.0 Other Income 99.7 3.1 92.4 2.9 86.8 3.1 192.1 3.0 173.8 2.9 353.4 2.9 Total Income 3,275.2 103.1 3,251.9 102.9 2,917.6 103.1 6,527.1 103.0 6,085.1 102.9 12,541.7 102.9 EXPENDITURE Material cost 1,961.4 61.8 1,842.0 58.3 1,617.9 57.2 3,803.4 60.0 3,458.6 58.5 7,090.3 58.2 Personnel Expenses 216.0 6.8 245.2 7.8 203.0 7.2 461.2 7.3 424.1 7.2 821.9 6.7 Other Expenses 527.8 16.6 514.0 16.3 477.1 16.9 1,041.8 16.4 934.1 15.8 1,943.0 15.9 Exchange & commodity variation (net) 56.2 1.8 (23.9) (0.8) (9.5) (0.3) 32.3 0.5 (13.4) (0.2) 27.9 0.2 Depreciation 35.5 1.1 33.8 1.1 31.0 1.1 69.3 1.1 62.4 1.1 128.9 1.1 Interest 4.2 0.1 4.7 0.1 4.5 0.2 8.9 0.1 8.3 0.1 16.5 0.1 Total Expenditure 2,801.1 88.2 2,615.8 82.8 2,323.9 82.1 5,416.8 85.5 4,874.3 82.5 10,028.5 82.3 Profit before Tax 474.1 14.9 636.1 20.1 593.8 21.0 1,110.2 17.5 1,210.9 20.5 2,513.3 20.6 Tax Expense 122.0 3.8 162.0 5.2 151.2 5.3 284.0 4.4 308.6 5.2 638.7 5.3 Profit after tax 352.1 11.1 474.1 15.0 442.6 15.6 826.2 13.0 902.2 15.3 1,874.6 15.4 ETR % 25.7% 25.5% 25.5% 25.6% 25.5% 25.4% (INR Crores) Quarter ended 30.06.2025 Quarter ended 31.03.2025 Quarter ended 30.06.2024 Half year ended 30.06.2025 Half year ended 30.06.2024 Year ended 31.12.2024
Page 22
— © 2022 ABB. All rights reserved. Electrification Orders Received • Demand for solutions across business segments • Large order in Q2/24 Revenues • Growth across business segments with strong backlog execution • Higher export revenues PBIT • Higher import content, forex volatility, revenue mix and one-offs 1,432 1,766 1,024 1,759 1,369 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Orders Received (-4%) 1,121 1,154 1,503 1,358 1,379 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Revenues (+23%) 2,739 3,491 Q2/24 Q2/25 (+27%) Order Backlog INR crores 23.1 20.8 23.6 24.7 16.1 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 PBIT %
Page 23
— © 2022 ABB. All rights reserved. Orders Received • Control systems for railways • Demand for system drive products • Large orders in Q2/24 Revenues • Higher revenues from drives products, traction business, services PBIT • Higher import content; forex loss • Competitive pricing 1,329 1,048 1,074 1,255 1,099 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Orders Received (-17%) 1,076 1,079 1,119 1,096 1,088 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Revenues (+1%) 3,930 4,012 Q2/24 Q2/25 (+2%) Order Backlog Motion INR crores 23.1 23.1 20.9 21.9 16.4 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 PBIT %
Page 24
— © 2022 ABB. All rights reserved. Process Automation Orders Received • Demand from mining and paper segments • Delay in customer decision making Revenues • Q2/24 had large order revenue • Change in delivery schedule of customers PBIT • Revenue mix, higher service business, and operational improvements • Project closure and actualisation of margins • Above positives had a more than offset due to forex 533 499 573 452 471 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Orders Received (-12%) 633 596 628 586 492 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Revenues (-22%) 2,556 2,240 Q2/24 Q2/25 (-12%) Order Backlog INR crores 16.2 19.2 19.4 16.4 17.2 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 PBIT %
Page 25
— © 2022 ABB. All rights reserved. Robotics and Discrete Automation Orders Received • Orders from electronics and automotive • Service orders yet to pick-up Revenues • Seamless execution of orders in emerging segments PBIT • Revenue mix • Forex loss 157 75 149 326 119 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Orders Received (-24%) 84 111 140 150 236 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Revenues (+181%) 302 331 Q2/24 Q2/25 (+10%) Order Backlog INR crores 14.6 14.7 10.4 13.2 6.5 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 PBIT %
Page 26
— © 2022 ABB. All rights reserved. 38% 43% 40% 43% 37% 34% 35% 34% 22% 16% 23% 17% 3% 7% 2% 6% Q2/24 Q2/25 H1/24 H1/25 RA PA MO EL Resilient and diversified business model (by revenues) 34% 36% 37% 38% 42% 45% 41% 42% 11% 9% 10% 9% 13% 10% 12% 11% Q2/24 Q2/25 H1/24 H1/25 OEMs EPCs Partners End Users 76% 78% 73% 75% 12% 10% 15% 12% 12% 12% 12% 13% Q2/24 Q2/25 H1/24 H1/25 Services Projects Products 88% 84% 89% 90% 12% 16% 11% 10% Q2/24 Q2/25 H1/24 H1/25 Export Domestic Channels Geography Offerings Business Areas
Page 27
August 2, 2025 Slide 27