1. Introducing ABB
Welcome to this general overview of ABB.

2. Facts about ABB
A leading power and automation technology company with strong market positions in its core businesses
Two core divisions: Power Technologies, Automation Technologies
Oil, Gas and Petrochemicals division, Building Systems, to be divested
Headquarters: Zurich, Switzerland
About 133,000 employees in around 100 countries
Orders in 2002: US$ 18.1 billion
Revenues in 2002: US$ 18.3 billion
Listed on stock exchanges in London/Zurich, Stockholm, Frankfurt and New York
What is ABB? ABB is one of the largest power and automation technology companies in the world. ABB is an acronym made up of the first letters from the names of our two parent companies - ASEA AB of Sweden, and BBC Brown Boveri Ltd., of Switzerland. These two companies merged in 1988 to create Asea Brown Boveri, better known as ABB.
Today, ABB employs 139,000 employees in more than 100 countries.
We have two core businesses – power and automation technologies – in which we hold market leadership positions.
Other businesses - the Oil, Gas and Petrochemicals division, and Building Systems - are due to be divested in 2003.
Company headquarters are in Zurich, Switzerland.
In 2002 we had revenues of $18.3 billion US.
Our chairman and chief executive officer is Jürgen Dormann, who became CEO in September, 2002.
ABB is a publicly traded company, which means it is owned by shareholders. Shares of ABB stock are listed on exchanges in New York, Stockholm, Frankfurt and London/Zurich.

3. Who we are
ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact
Our aim is to create value for all our stakeholders. We seek to meet the needs of our customers, our employees and the communities where we do business, and create value for our shareholders
We are a big company, and our employees work very hard to ensure ABB is and remains a good corporate citizen. Our business philosophy is to generate value for each of the stakeholder groups which keep us in business - namely, our customers, our employees, our shareholders, and the communities and countries where we do business.
We believe that by creating value for our customers - our first priority - we create value for our employees, shareholders and society as a whole - and so we profit as a company.
ABB is committed to sustainable development which means integrating economic, environmental and social growth opportunities into our business strategy. We are committed to this approach, because we believe that sustainable development is good for business.

4. What we offer
Leading-edge power and automation technology products, systems, solutions and services for
Utilities
Industries
The oil, gas and petrochemicals sector
World-class collaborative business platforms and solutions based on IndustrialIT open architecture software
At ABB, we design and manufacture power and automation products, sold individually and as part of industry-specific solutions and services for utilities, manufacturing, consumer industries and process industries.
ABB delivers advanced technology along the entire value chain of the oil and gas industry, from the well to refining and petrochemicals.
Our Industrial IT business concept is a real-time integration of plant and business processes, adding value to every facet of the customer’s enterprise.

5. Automation Technologies
Core Divisions
Power Technologies
Automation Technologies
Headquarters: Zurich, Switzerland
About 139,000 employees in more than 100 countries
Orders in 2002: US$ 18.1 billion
Revenues in 2002: US$ 18.3 billion
Listed on stock exchanges in London/Zurich, Stockholm, Frankfurt and New York

6. Power Technologies division
High-Voltage
Products
Medium- Voltage
Products
Power
Transformers
Distribution
Transformers
Utility
Automation
Systems
Power Systems
The Power Technologies division comprises six Business Areas. Four of them – High-Voltage Products, Medium-Voltage Products, Power Transformers and Distribution Transformers represent the product business, with more than 150 factories. The other two Business Areas - Utility Automation Systems and Power Systems – run the division’s system business, adding value to our products by offering the customer complete, turnkey solutions.

7. Products, systems and services
Power Technologies
Products for power technologies:
power and distribution transformers
switchgear
breakers
products and technologies for high- and medium-voltage applications
Systems for power technologies:
AC and DC power transmission and distribution systems
Automation systems for utilities
Services for power technologies:
Repair, retrofit, refurbishment
Asset management and diagnostics
ABB is the only company in power technology which offers such a comprehensive portfolio of products, systems and services. We serve electric, gas and water utilities, as well as industrial and commercial customers, with a broad range of products, systems and services for power transmission, distribution and automation.
We produce transformers, switchgear, breakers, capacitors, cables and other products and technologies for high- and medium-voltage applications. These products are delivered to customers as part of complete engineered solutions, and are also sold directly to external channel partners such as engineering procurement and construction firms (EPC), original equipment manufacturers (OEM), re-sellers and system integrators.

8. Automation Technologies division
Control Platform & Enterprise Products
Drives,
Motors &
Machines
Low-Voltage Products & Instrumentation
Robotics, Automotive & Manufacturing industries
Paper,
Minerals, Marine &
Turbocharging
Petroleum, Chemical & Consumer
industries
As you will observe today, we have put together a comprehensive portfolio of products, services and solutions.
Let me give you three facts: We are the only supplier of process and robotics-based discrete automation. We have more industry-specific products and solutions than any other supplier. We are one of a very small number of companies which supply products and system services, and asset management services. (FYI: Full Service).

9. Control Platform and Enterprise Products
Key Deliverables:
Industrial IT automation, optimization, and information management products
Control systems
Software solutions for integrating and optimizing the use of plant assets and operations
Information Management, Production Management, Planning & Scheduling, Manufacturing Execution Systems, Substation Automation
Customers Served:
Full range of process industries, including pulp and paper, metals and minerals, chemicals, petroleum, life sciences, etc.
Public and private power generation, transmission and distribution
Discrete manufacturing, food and beverage, and automotive

10. Drives and Motors Key Deliverables: Low and Medium Voltage Drives
Low and High Voltage Motors and Generators
Power Electronics Systems
Services Products
Customers Served:
Drives, Motors and Generators: OEMs, Distributors and End Users within building automation, marine, power, transportation, manufacturing and process industries
Power Electronics: Aluminium and magnesium smelters, excitation systems for power plants

11. Low Voltage Products and Instruments
Key Deliverables:
Breakers, Control Products, Switches & Fusegear, Terminal blocks
Modular DIN rail Products, Intelligent Installation Systems, Enclosures, Cable Systems and Wiring accessories
Instrumentation
Switchgear and Motor Control Centers
Customers Served:
Sales Channels = Distributors and wholesalers
Industries = OEM‘s and panel builders, systems integrators and end users, process manufacturing industries

12. Robotics, Automotive and Manufacturing
Key Deliverables:
Development, production and sale of industrial robots, related equipment and software
Standardized manufacturing cells for varied applications such as material handling, machine tending, welding, cutting, painting, finishing
Engineering for turnkey solutions in press automation, body-in-white, paint process automation, power train assembly
Product and system services and asset management services
Customers Served:
Automotive, foundry, metal fabrication, plastics, electronics, consumer Industries

13. Paper, Minerals, Marine and Turbocharging
Key Deliverables:
Pulp and paper automation, production and quality, machine health monitoring; chemical delivery
Measurement and automation solutions for ferrous and non-ferrous metals production and processing
Electrification and automation solutions for primary aluminum, cement, mining and mineral processing
Electric propulsion, power generation and distribution, automation and HVAC systems for cruise, cargo and offshore vessels.
Turbocharging of Diesel and Gas Engines
Customers Served:
Pulp and paper manufacturers
Ferrous and non-ferrous metals producers
Cement, mining and mineral processing
Cruise, ferry and oil and gas vessels
Turbochargers: Marine, power and transportation

14. Petroleum, Chemicals and Consumer
Key Deliverables:
Industry-specific products, systems, software and solutions
Full range of industry services and engineering
Analytical products and solutions
Customers Served:
Oil and gas production, processing, refining, and transportation
Petrochemical and chemical markets
Primary and secondary pharmaceutical manufacturing and packaging; quality control and regulatory validation/compliance
Food and beverage, home care, agricultural milling, personal care products

15. Automation Technologies Services
Commissioning
Installation & commissioning; product and process applications; environmental adaptation; product migration
Lifecycle Optimization
Contract & demand hardware & software optimization; remote services; system upgrade expansion & modification.
Parts & Repair
Spares; reconditioning & repair; version management; legacy product support; parts management support.
Performance Services
Performance-based automation procurement, commissioning & operational outsourcing
Performance-based electrical maintenance outsourcing
Condition monitoring
Benchmarking and improvement; change management ; sustainable excellence; safety, health & environmental
Training
Products, process & application; general technology; training contracts, training assessment
                                      

16. Strategy: Leverage and focus
Automation Technologies
Serve global wholesalers and distributors with full range of standard automation products
Serve existing product and system customers with asset-extending services
Serve manufacturing customers with combined process and discrete solutions
ABB is a leader in standard automation products, ranging from motors and low-voltage products to instrumentation. Our global channel network means we can serve customers wherever they do business.
Customers are spending less on new equipment, and more on extending the life of their existing equipment. With a $100 billion installed base, ABB provides a wide range of product and industry-specific services to extend the life of our customers’ automation investment.
ABB has industry-specific solutions that combine both process and discrete automation, helping customers become even more efficient.

17. IndustrialIT
Integration of enterprise systems for automation, information, and collaborative commerce
A single ABB architecture for fast deployment, seamless integration and real-time information
Compatible ABB building blocks across the enterprise value chain
Unsurpassed domain expertise in customer industries
We have more than 35,000 Industrial IT-enabled products
So, where are we heading? Industrial IT is an ABB concept which we believe will profoundly change the way businesses operate. Industrial IT makes it possible for businesses to harness the power of information technology. On one level, that simply means a company can integrate all of its business processes into a single system which can be accessed and controlled immediately onsite or via the Internet. It gives managers structured, instant information about supply, production, control, management, sales and distribution.
There is more, however. Industrial IT can actually link a company to its suppliers and customers, creating a seamless communications web in which information is instantaneous.
This is called collaborative commerce. It means sellers and buyers are united in a kind of community of purpose, bringing enterprise to an entirely new level of partnership and collaboration along the whole value chain.
We now have more than 35,000 Industrial IT-enabled products.

18. Extra value with ABB IndustrialIT
A compatible “information enabled” product portfolio
Built-in tools to install, operate, optimize, and maintain every plant device
Easier integration of systems for power, automation, and information
A compatible, open architecture from shop floor to top floor

19. Compatible enterprise building blocks
Comprehensive electronic asset information bundled with every product
Documentation, configuration and connectivity tools, lifecycle support and more at the click of a mouse!
Copy-and-Paste integration through ABB Aspect Object™ technology

20. An open enterprise architecture
The ABB Aspect Integrator Platform™ lets you monitor, control, optimize, and maintain from one powerful interface.
Evaluate, deploy, and influence plant components just like browsing the files on your PC
Fast, intuitive navigation from a logical systems perspective.

21. Technology innovation
Objectives
Keep and build technology leadership in power and automation products, applications and services
Research and Development
New R&D center opened in China in Two centers, India and Singapore, opened in 2002
Investment in technology
ABB spent around 5 percent of revenues on research and development in 2002
ABB prides itself on being a technology leader. In 2002, we invested approximately 5 percent of our revenues on technology innovation. The percentage of software-related first patent filings increased to 27 percent in 2001, up from 23 percent in 2000.

22. Full-year key figures (MUS$) Full year 2002 Full year 2001 Orders
Revenues
EBIT
Net interest expense
Discontinued operations
Net income
Net cash from operations
Net debt*
18,112
18,295
336
-129
-853
-787
126
3,262
19,672
19,382
179
-190
-501
-691
1,983
4,338
*Excluding Oil, Gas and Petrochemicals, and after asbestos settlement

23. ABB Group – Q2 key figures
(US$ million)
Q2 2003
Q2 2002 **
Orders
4'929
4'667
Revenues
5'061
4'534
EBIT
171
150
Net interest expenses
(92)
(74)
Discontinued operations
(87)
(3)
Net (Loss)/income
(55) 38
Cash from operations
(25)
172
Gross debt *
8'304
8'155 *
Quarterly: as of 30 June 2003 and 31 March 2003 **
restated

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