ABB: Next stage of unlocking value

Zurich, Switzerland, October 4, 2016

  •  Shaping four focused, market-leading, entrepreneurial divisions:
    • Electrification Products
    • Robotics and Motion
    • Industrial Automation
    • Power Grids
  • Continued Power Grids transformation under ABB ownership:
    • “Power Up” program aiming at growth, lower risk, earnings accretion
    • De-risked EPC business modelDivesture of cable business expected in Q1 2017
      • Partnership with Fluor for substations
      • Partnership with Aibel for offshore wind
    • Raised margin target corridor 200bps to 10-14%, effective 2018
  • Realizing full potential as digital champion
    • “ABB Ability”: fully integrated digital offering across customer segments; cements ABB’s leadership in the Fourth Industrial Revolution
    • Far-reaching partnership with Microsoft to develop next-generation digital solutions
    • IoT pioneer Guido Jouret took office as Chief Digital Officer effective October 1
  • Strengthening global ABB brand
    • Consolidation of 1000+ brands under the ABB master brand
    • Prerequisite for full value creation of digital offering
    • Writes ABB’s heritage as a pioneering technology leader into the future
  • White-collar productivity target increased by 30% to $1.3bn; timeline and costs unchanged
  • All other financial targets confirmed
  • Second share buyback program of $3bn planned 2017 through 2019; capital allocation priorities unchanged

ABB today launched Stage 3 of its Next Level strategy to unlock value for customers and shareholders. The core elements of this include: shaping ABB’s divisions into four market-leading, entrepreneurial units, including continuing to transform the Power Grids division under ABB’s ownership; realizing ABB’s full digital potential; accelerating momentum in operational excellence; and strengthening ABB’s brand.

ABB CEO Ulrich Spiesshofer said, “Over the last two years, ABB has become faster, leaner and more efficient. We have continuously improved margins and further strengthened our cash generation. In Stage 3 of our Next Level strategy, we are building on our successful transformation momentum and strengthening our position as a pioneering technology leader and global digital champion. With our four simplified, market-leading, entrepreneurial businesses, combined with “ABB Ability”, we address customers’ needs in the Energy and Fourth Industrial Revolutions in a more focused and agile way. 

The complete press release including the appendices is available at www.abb.com/news

Media Relations
Saswato Das, Antonio Ligi, Domenico Truncellito, Sandra Wiesner
Tel: +41 43 317 6568
media.relations@ch.abb.com

Investor Relations
Tel. +41 43 317 71 11
investor.relations@ch.abb.com

ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland

For further information please refer to www.abb.com/news

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About Us

ABB (ABBN: SIX Swiss Ex) is a pioneering technology leader in electrification products, robotics and motion, industrial automation and power grids, serving customers in utilities, industry and transport & infrastructure globally. Continuing more than a 125-year history of innovation, ABB today is writing the future of industrial digitalization and driving the Energy and Fourth Industrial Revolutions. ABB operates in more than 100 countries with about 136,000 employees. www.abb.com

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