Q4 2020 Abb Ltd Earnings Call

Peter results Analyst Conference call I, and Moira the chorus call operator, I would like to remind you that all participants will be in listen only mode and the conference has been recorded.

The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone.

For operator assistance, Please press star and zero become Fred Smith will be recorded for publication or broadcast at this time, it's my pleasure to handle their try and Sophie. Please go ahead and let them.

Greetings to all and welcome to this conference call and webcast from ABB fourth quarter and full year 'twenty and 'twenty result.

The press release, and finance and information and documents were published this morning at seven a M and can be found on our website along with the presentation. We will go through here today. Following the presentation, we will open up for a Q&A session.

With me today to present here, our ABB CEO, Bill Andrews and get in and CFO T. Mo E M Mattila.

Before we begin I would like to draw your attention to the information regarding safe Harbor notices on our use of non-GAAP measures on slide two of the ABB presentation.

This conference call will include forward looking statements. These statements are based on the company's current expectations and assessed and assumptions and are therefore subject to certain risks and uncertainties.

With that said I will now hand over to be on and T. Mo for the presentation. Please go ahead.

Thank you, Ron and Steve and welcome to everyone on the call I have now been with ABB for almost exactly one year and looking back it has been a very eventful and exciting year.

And that does go through some of the highlights on slide number three.

It was a year when we transition to ABB towards improved performance, we implemented the decentralized operating model, we call ABB way, making the division the highest operating level.

They now have the cost ownership, they drive R&D for profitable growth and day.

Evolve their business portfolios.

We launched our 2030 sustainability strategy and updated our financial network in November.

And we delivered on the simplification program and achieved targeted net savings run rate of 100 million one year ahead of plan.

I am very confident that the actions taken in 2020 will leverage performance going forward.

2020 was also a year of the pandemic with the dominated the market development.

I am thankful for the speed and dedication of the ABB team on how mitigation actions were implemented.

The agile response to COVID-19 challenges enabled our organization to prioritize health and safety, while keeping operations running and undertaking strong cost mitigation efforts.

After a year like 2020, I'm proud to see the progress we have made in our employee engagement survey.

It shows that our employees have more clarity of roles and responsibilities as well as of our overall purpose of the company, we really saw the culture change and gain momentum in 2020.

Tim will talk you through the full year numbers, a little bit later on.

Turning to slide four we shift focus to the fourth quarter. We saw continued sequential improvement in customer activity from the low level noted during summer.

In total orders and revenues remained broadly stable year over year debt.

Positive impact from mid single digit growth in the short cycle business was offset by subdued demand for services and headwinds in selected end markets, such as oil and gas.

We secured some largest system order wins for our world leading asset propulsion technology.

The machine automation Division also closed out the period with an all time high level of future design wins.

And this creates a good base to build from after the management change in machine automation Division is completed.

Revenues were stable, but we still managed to improve the operational EBITDA margin by 140 basis points and the increase was led by stellar performance in electrification and motion.

Synergies from Gis came in ahead of target $120 million run rate and the integration is now approximately two third completed.

Further.

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