© ABBSlide 1September 30, 2014

Fabio Castagna, Regional OEM Business Development Manager MED and Dominik Cybulski, Global OEM Concept ManagerSeptember 25-26, 2014 – Dalmine, Italy

ABB OEM Days 2014OEM Cooperation Program – more than products

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OEM Cooperation Program

§ Introduction

§ Multichannel strategy

§ Flexible value chain and cooperation needs

§ Cooperation concept set-up

§ Cooperation program advantages

§ Summary

§ Showroom – presentation of different concepts

§ Q and A session

Contents

30 min.

30 min.

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OEM Cooperation ProgramMulti-Channel Strategy

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§ Business has grown 338% in 13 years

§ Geographical coverage, value addedenlarged

§ More successes, more partners allaround the world

OEM Cooperation ProgramOEM channel growth for power products

+338%

[%] Order trends

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OEM Cooperation ProgramFlexible value chain

ABB scope

OEM scope

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OEM Cooperation ProgramCooperation needs

Marketpenetration

Productdevelopment

Marketdevelopment Diversification

Existing New

ProductsM

arke

tE

xist

ing

New

§ Market analysis

§ Design

§ Test

§ Production

§ Market launch

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OEM Cooperation ProgramCooperation needs

Marketpenetration

Productdevelopment

Marketdevelopment Diversification

Existing New

ProductsM

arke

tE

xist

ing

New

§ Market analysis

§ Design and Test

§ Production

§ Market launch

§ Promotion

§ Portfolio management

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OEM Cooperation ProgramCooperation needs

Marketpenetration

Productdevelopment

Marketdevelopment Diversification

Existing New

ProductsM

arke

tE

xist

ing

New

§ Market research

§ Promotion

§ Sales

§ Portfolio management

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OEM Cooperation ProgramOEM cooperation concept set-up

§ 4 elements of a strategic partnership

§ Cooperation based on a modular concept

§ Results

§ Capture more business opportunities

§ Penetrate more markets

FINAL PRODUCT Three main types of agreements:

§ Commercial

§ Trademark

§ Technology

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§ Reduced R&D expenses

§ Use of existing designs

§ Safe on type tests costs

§ Use of technicaldocumentation and tools

§ R&D support

OEM Cooperation ProgramTake advantage

Lower investment

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OEM Cooperation ProgramTake advantage

Lower investment§ Reduced R&D expenses

§ Reduced manufacturing costs

§ Drawings for direct loadinginto CNC machines, etc.

§ Manufacturing documentation

§ Production instructions

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OEM Cooperation ProgramTake advantage

Lower investment§ Reduced R&D expenses

§ Reduced manufacturing costs

§ Reduced marketing and supportexpenses

§ Marketing and promotionmaterials

§ Training and support materials

§ Co-promotional / marketingevents / activities

§ Tools and documentation

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OEM Cooperation ProgramTake advantage

Lower investment§ Reduced R&D expenses

§ Reduced manufacturing costs

§ Reduced marketing and supportexpenses

§ Reduced engineering costs

§ Simulation and calculationtools

§ Project management support

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§ Time to marketdecreased up to 75% (!)

§ Example: new switchgearcan be developed within2 months

OEM Cooperation ProgramTake advantage

Lower investment

Short time to market (speed)

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§ Comprehensive and state-of-the art product portfolio

§ OEM products based onstandard ABB solutions

§ Latest innovationsembedded in partnerprograms

§ Technology and marketleader

§ ABB brand

§ Offering of brandingconcepts

Ultra Fast Earthing Switch type UFES

OEM Cooperation ProgramTake advantage

Lower investment

Short time to market (speed)

ABB technology and brand

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§ Well-proven, acceptedproducts and technology

§ Large installed base

§ Wide partner network

§ Type-tested products andsolutions

OEM Cooperation ProgramTake advantage

Lower investment

Short time to market (speed)

ABB technology and brand

Risks limitations

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Solutions for every need§ Wide range of applications§ Applicable for different standards§ Designed for different customers types

OEM Cooperation ProgramEven more benefits

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Solutions for every need

Solutions for:§ Every market segment

§ Any market

§ Different standards and homologations

Three main types of agreements:

§ Commercial

§ Trademark

§ Technology

OEM Cooperation Program

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Solutions for every need

One stop shop

§ Wide range of applications§ Applicable for different standards§ Designed for different customers types

§ Comprehensive and complete power products portfolio

OEM Cooperation ProgramEven more benefits

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TransformersHigh Voltage Products Medium Voltage Products

Generation

Generation

Generation

Generation

TransmissionTransmission

Transmission

Transmission

Distribution

Distribution

Distribution

Distribution

OEM Cooperation ProgramComplete Power Product Portfolio

Low Voltage Products

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Solutions for every need

Knowledge

One stop shop

§ Wide range of applications§ Applicable for different standards§ Designed for different customers types

§ Product, market and application expertise§ Support programs§ Training§ Tools and documentation

§ Comprehensive and complete power products portfolio

OEM Cooperation ProgramEven more benefits

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§ Training programs

§ On-site support

§ Access to certified laboratorieswith ABB experts

§ Production layout and operationprocesses support

§ Type tests, configurators,simulation tools, marketingmaterials

§ Factory visits showcastingoperational excellence

§ Partner events

OEM Cooperation ProgramKnowledge

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Solutions for every need

Knowledge

One stop shop

Network§ Global availability§ Partnership network

§ Wide range of applications§ Applicable for different standards§ Designed for different customers types

§ Product, market and application expertise§ Support programs§ Training§ Tools and documentation

§ Comprehensive and complete power products portfolio

OEM Cooperation ProgramEven more benefits

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~145,000employees

Presentin

countries+100

Business growthin the last 13 years

338%

OEM Cooperation ProgramGlobal availability

Technical CooperationPartners

>80

Products CooperationConcepts

9

Global network ofOEM customers

+3000

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§ Leading technology§ Comprehensive products, services and solutions§ Continuous innovation with ABB brand quality§ Customized products per OEM demands

• Excellent performance• Engineered for safety and reliability• Sustainable and energy efficient solutions

Safety and reliability

§ Extensive experience§ Dedicated organization§ Global availability – close to you!§ Flexible and modular offerings§ Quick market entrance§ Competitive edge

Technology and innovation

Partner programs

OEM Cooperation ProgramBuilding the best… together!