ABB Group

ABB Structure and Solutions

ERP and ABB IT Infrastructure

• MS Office 365
  • All applications are available from any device
  • SharePoint and OneDrive instead of a file server
  • Skype for Business for Conferences and Communication

• Salesforce.com - Available from any device
• SAP ECC and SAP BI - Business Network Required
• Lotus Notes (not migrated to SharePoint yet) - Enterprise Network Required

Economics of VDI Issue Presentation ^[1]

• Replacing desktops with thin clients
• Remove additional workstations
• Thin client life is 1.5-2 times longer
• VDI Infrastructure Organization
• Switching to IP Telephony and Eliminating Desktops
• 24 jobs for 32 employees in IT

• IT budget has not increased
• Workplace utilization aims for 1.5

Performance indicators

2020: Revenue decline 7%, to $26.13 billion, robot sales down 12%

ABB ended 2020 with revenue of $26.13 billion from this 12-month period. Compared to 2019, sales from the company decreased by 7%. This decline was partly due to the robotic division of Robotics & Discrete Automation, whose turnover decreased by 12%, to $2.91 billion.

In the direction of industrial automation, ABB registered revenue of $5.79 billion in 2020, which is 8% less than a year earlier. In the division for the production of electrical equipment, annual sales decreased by 6%, to $11.92 billion.

ABB robot sales fall 12% in 2020

Another major business of ABB is related to the production of electric motors, generators, drives, components of mechanical transmissions and solutions of integrated digital drive systems. The turnover of the corresponding division at the end of 2020 reached 6.41 billion, having decreased by 2% on an annualized basis.

The ABB financial statements report that the weak performance of the robotics division was affected by the COVID-19 coronavirus pandemic, due to which product orders were reduced by 12%. At the same time, sales of digital solutions from the company significantly increased due to the growing popularity of technologies for remote control.

In 2020, ABB's revenue contracted the most in the Americas - where the decline reached 11%. In Europe, negative dynamics was measured -3%, in Asia, the Middle East and Africa - -5%.

ABB's net profit at the end of 2020 was $5.15 billion, an increase of 258% compared to profit a year ago. This increase was due to the transfer of 80.1% of the Electric Networks business unit to Hitachi. The profit could have been higher if not for the net financing costs of $351 million, which included $162 million spent on early repayment of bonds.^[2]

History

2022

System for issuing bribes for government contracts

On December 2, 2022, the US Department of Justice (DOJ) announced that the Swiss engineering and technology group ABB had agreed to pay more than $300 million in connection with a bribery case in South Africa.

ABB was found guilty of improper payments and other violations related to the activities of the Kusile power plant - the coal plant of the South African state-owned electric power firm Eskom. ABB bribed a senior official of that company to obtain confidential information and subsequently enter into lucrative contracts, it said. According to the case file, ABB, through some of its subsidiaries, paid bribes to an official between 2014 and 2017. A representative of Eskom agreed to conclude a $160 million contract with ABB if it hires an engineering firm under a $7.2 million subcontract. At the same time, an Eskom employee demanded payment of his share in the amount of $720 thousand.

How ABB paid bribes for government contracts

ABB and the South African National Prosecution Service (NPA) have reached an agreement that the company will pay compensation for involvement in public sector corruption. Two ABB units have pleaded guilty and the parent company has been charged with violating U.S. anti-corruption law abroad. In addition, ABB is fined by the Swiss Attorney General. The decision has been agreed with the U.S. Securities and Exchange Commission (SEC).

{{quote 'We take Kusile's case extremely seriously. ABB has cooperated fully with authorities and has also made many efforts to address the issue, including introducing a new code of conduct, training employees and implementing an improved control system to prevent something similar in the future, the company said in a statement. }} In total, ABB will pay more than $315 million. In particular, $144.51 million will be spent on penalties in South Africa. This is in addition to the $92.48 million the company paid to Eskom in 2020.^[3]

Withdrawal from the Russian market

On July 21, 2022, ABB announced its withdrawal from the Russian market. The decision is related to the ongoing conflict in Ukraine and the subsequent international sanctions, follows from the company's message. Read more here.

2021

Investing in Swiss startup Sevensense Robotics

ABB on November 26, 2021 announced the entry into a strategic partnership with Swiss startup =, founded in 2018 as a separate company of the Swiss Higher Technical School (Zurich ETH Zurich). The goal of the partnership artificial intelligence technical vision is to bring autonomous mobile from robots ABB to a different level with the help of map building technology. More. here

Opening a Test Center to Develop 3D Vision Solutions in Object Processing

On September 2, 2021, ABB announced that its Robotics division had opened a test center in Jönköping (Sweden) to develop automated solutions for lifting and moving items using Random Bin Picking technology based on three-dimensional vision. The Center is the stage of implementation of ABB's comprehensive strategy to accelerate flexible automation in small and medium enterprises. At the ABB Global Center for Robotic Machine Service Solutions, ABB's team of experts, together with customers and partners from around the world, will create designs that integrate into their own solutions. Read more here.

Sale of the business for the production of devices for the transfer of mechanical energy Dodge for $2.9 billion

At the end of July 2021, ABB sold its mechanical power transmission devices business to the Dodge company. RBC Bearings The deal is estimated at $2.9 billion. More. here

Purchase of autonomous mobile robot maker ASTI Mobile Robotics Group

On July 20, 2012, ABB announced the ASTI Mobile Robotics Group acquisition at a price the companies would not disclose. With this transaction, the buyer continued to implement a strategy to diversify his robotic business beyond traditional automated solutions, the agency notes. Reuters More. here

2020: Transfer of 80.1% of Electric Networks business unit to Hitachi

On July 3, 2020, ABB announced the achievement of an important milestone on the path of transformation into a decentralized global technology company, completing the transfer of 80.1% of the Power Grids business unit to Hitachi according to the planned plan. Read more here.

2019

57% of all ABB revenues brought eco-efficient solutions for smart cities, industrial and transport systems

On March 18, 2020, it became known that ABB published a report on sustainable development for 2019. It contains information on the main indicators of the company's performance in the field of modern technologies, socially responsible activities and socially responsible relations. In 2019, ABB achieved or exceeded more than half of its previously scheduled sustainability targets.

As reported, in 2019, 57% of all ABB revenues brought eco-efficient solutions for creating smart cities, industrial and transport systems without detrimental impact on the climate and preserving non-renewable natural resources. By the end of 2020, it is planned to increase this figure to 60%. The company's portfolio includes digital solutions in the areas of construction, infrastructure, clean energy, transportation systems and energy efficiency. The potential target market size for these solutions is US $5 trillion.

ABB supports the 2015 Paris climate agreement and the Science Based Targets (SBT) initiative and aims to limit global warming and prevent the potentially devastating effects of climate change. Compared to 2013, in 2019, ABB reduced greenhouse gas emissions by 41%, exceeding the 2020 target of 40%.

ABB plans to become a carbon neutral company in the long term. In 2019, the company opened the first carbon-neutral plant in Ludenscheid (Germany), thereby demonstrating its desire for sustainable industry. The plant is equipped with a solar power plant and digital technologies that ensure its energy independence. The smart industrial ecosystems of the enterprise are managed by digital means, which gives the plant a number of advantages.

In addition, in 2019, working at ABB has become safer. The total reported injury rate (TRIFR) decreased last year from 0.58 to 0.47. The target for 2020 was 0.7. One ABB employee and one contractor were killed in accidents in 2019.

In 2019, ABB achieved three out of four targets in socially responsible relationships. ABB's operations are entirely based on the principles of integrity. The company changes and simplifies the structure of work and management, but invariably follows these principles and will continue to do so in the future.

ABB's task by the end of 2020 is to ensure awareness and respect of human rights every day and in any area of ​ ​ the company. To meet it, ABB has taken measures to improve competencies, identify risks and increase the effectiveness of its supplier base, as well as restrict access to conflicting types of materials.

ABB continued to work on gender equality and inclusive employment programs. ABB joined the EmbraceDifference guarantee, created by the European Round Table of Industrialists and signed in 2018. In 2019, the company linked its initiatives with six priority areas indicated in the guarantee: inclusive culture, inclusive leadership, setting goals and objectives, clearly formulated responsibilities, equal opportunities and involvement in public life, responsibility.

During 2019, the company achieved some results in the field of equality. In 2019, 11.7% of senior executives at ABB were women. In 2018, this figure was 10.5%, in 2017 - 10%. ABB continues to promote the education and employment of girls and women in science, technology, engineering and mathematics (STEM), including through targeted scholarship and mentoring programs in Hungary, India, Poland, Sweden and other countries.

Launch of a modern power storage plant in Baden

On November 6, 2019, ABB announced that production in Baden began production of energy storage systems designed for railways, trolleybuses, electric buses and trucks . The introduction of such systems will reduce emissions and increase energy efficiency. In the future, energy storage solutions are planned to be installed in trolleybuses in some cities of Switzerland.

Слева направо: Эрнст Рот, руководитель местного бизнес-направления по производству приводов (подразделение "Электроприводы") ABB Switzerland; Стефан Аттигер, state councillor of the canton of Aargau; Robert Itschner, CEO of ABB Switzerland; Markus Schneider, Mayor of Baden

Energy storage technologies are of paramount importance for the creation of an environmentally friendly transport system of the future, as they ensure the electrification and decarbonization of road and rail transportation. The development of the segment of electric buses and trucks is impossible without highly efficient battery solutions, which, in particular, will be able to preserve braking energy by recuperation. In addition, energy storage systems will increase the operating area of ​ ​ trolleybuses, which, thanks to this technology, will receive an additional range and will be able to work without overhead lines.

Unlike Switzerland, many European countries still do not electrify significant sections of the railway network. By integrating energy storage systems, diesel trains can be converted into hybrid systems, resulting in a 30% reduction in CO2 emissions, as well as providing substantial energy savings through recovery. Energy storage systems open the way to modernize commercial fleets, helping transport companies improve the sustainability of transportation.

Шаблон:Quote 'author = says Robert Itschner, CEO of ABB Switzerland and Regional Development Director of Electric Drive

During the production process, battery cells are assembled into standardized modules. Next, the modules are combined into energy storage systems that are adapted according to a particular application. The systems use lithium-ion technology, so batteries have a high specific power and a long life even at high loads. When developing the technology, the requirements for maximum safety, quality and energy efficiency were taken into account.

For this purpose, two ABB robots are operating on the production line, ensuring compliance with the standards. One robot places the battery cells in the module body, and the other connects them by high-precision laser welding. All process data is continuously recorded in digital form.

ABB has experience in the production of energy storage systems for various applications, such as power grids and solar installations. Baden's choice as the site of the plant is due to a number of factors, including the city's proximity to the ABB Traction Converter Development Centre in Thurgie and the ABB Corporate Research Centre in Detville.

Opening of the Texas Medical Center Campus Health Research Center

On October 9, 2019, ABV announced that it had opened its Houston first international health research center Texas medical on the center's campus and demonstrated a number of experimental technologies, including mobile, robot YuMi which will help laboratory staff and perform hospitals in laboratory logistic and work. More. here

According to the company, the ABB Medical Center will occupy an area of ​ ​ 500 m2 in the TMC. This modern research institution will be a powerful platform that will bring together startups scientists and leading technology companies in working together on prototypes of revolutionary medical technologies.

The TMC Institute of Innovation, Texas Medical Center itself and the entire network of related organizations congratulate ABB on opening its own research site for designing robotic systems for health care. The main goal of the TMC, as the largest medical campus in the world, is to speed up research and reduce its cost at the same time in order to create more cost-effective solutions faster for patients who are in dire need of treatment. On our territory, ABV is creating the first of its kind research center for the development of medical robots. narrated by Bill McKeon, President and CEO of Texas Medical Center

Bjorn Rosengren - new CEO

On 11 August 2019, ABB announced the appointment of Bjorn Rosengren as the company's new CEO. Read more here.

Partnership with Dassault Systèmes

ABB and Dassault Systèmes on March 6, 2019 announced the start of a large-scale partnership, as a result of which companies will be able to offer customers from digital industries industries a portfolio of software solutions that includes a wide range of tools ranging from product lifecycle management asset health. The partnership will bring together the strengths of digital solutions ABB Ability and the Dassault Systèmes platform. 3DExperience More. here

2018

ABB sells 80.1% of Hitachi's power grid business for $6.4 billion

On November 17, 2018, it was announced the sale of an 80.1 percent stake in the ABB power grid business to the Japanese company Hitachi for $6.4 billion. The acquisition was Hitachi's largest ever and reflects a buyer's ambition to become a global industrial giant, and in the case of ABB, the deal points to the company's focus on digital and robotic businesses.

ABB intends for some time to maintain a 19.9 percent stake in the Power Grids division, which, taking into account debts, is estimated at $11 billion. The Swiss company will return about $7.6-7.8 billion of funds from the sale of assets to shareholders in the form of share buybacks.

Hitachi buys ABB power grid business for $6.4 billion

The option allows ABB to sell the remaining interest at a fair market price - not less than 90% of the agreed value of the entity - three years after the formal completion of the first part of the transaction.

According to the Financial Times, the purchase of ABB's power grid business, which is due to close in the first half of 2020, reinforces Hitachi's ambitions to be among global industrial groups such as General Electric and Siemens.

This is a good purchase that will strengthen our position as a world leader, "commented Hitachi chief executive Toshiaki Higashihara.

In January-September 2018, sales at Power Grids amounted to $7.1 billion, and profitability reached 9.8%. After buying the business, Hitachi will move it into a separate subsidiary, leaving the Japanese conglomerate hoping to become the world's second-largest heavy electrical equipment maker by revenue, behind only GE.

As for ABB, the sale of the power grid business will deprive the corporation of about a quarter of its profits. After the deal closes, the company will focus on robots and manufacturing automation.^[4]

Construction for $150 million of a factory where robots will collect robots

At the end of October 2018, ABB announced the construction of an enterprise where it plans to use robots to produce other robots. Investments in the project will amount to $150 million.

The new production center with an area of ​ ​ almost 7 thousand square meters, which the company is building in Shanghai, should start working by the end of 2020. The ABB said in a statement that this facility will combine digital technology, robotics and innovative research in the field of artificial intelligence, the company said. New types of robots will work at the enterprise, people will follow their actions.

The plant will produce products both for the market and China for export to other countries. Asia China is the second largest market for the ABB after. USA

How China applies the latest technology in artificial intelligence, modern robotics... represents an example for every country that wants to have a globally competitive manufacturing base, the ABB noted.

Chinese organizations and enterprises are increasingly adopting robots as salaries rise in the country, preventing the Middle Kingdom from competing with states offering cheaper production services. Automation plays a very big role in this competition. One in three robots sold in 2017 in the world went to China; we are talking about sales of 138 thousand units, reported in ABB.

ABB robot

ABB itself creates robots that, among other things, are used to assemble cars and electronic devices. The Shanghai Robotic Factory plans to manufacture equipment designed for a wide range of industries.

By the end of October 2018, robots are replacing humans with more than 2,000 jobs at ABB enterprises in China.^[5]

2011

In May 2011, ABB acquired Mincom from the investment fund Francisco Partners to expand its portfolio of software solutions and strengthen its position as a leader in the enterprise asset management (EAM) technology and services market.

Clients

ABB Enterprise Software Clients

Notes