Image

courtesy of the Singapore Tourism Board

Sandeep Shettty /Timo Sipila 26 April 2011 2011

ABB in Pulp & Paper

ABB Singapore 2009 | Slide 1

BU Pulp and Paper is

is built on innovative and leading edge technologies! Distributed Control (DCS) Quality Control (QCS) Web Imaging (WIS) Drives System Electrification Instrumentation Fieldbus Integration Asset Optimization Coating Kitchen and Chemical Delivery

ABB Group April 25, 2011 | Slide 2

ABBs Pulp and Paper Business - 2010

Offices in over 40 countries 3500 people dedicated to the pulp and paper industry 2010 Revenue:

Solutions Service

165 MUSD 195 MUSD 54 MUSD 212 MUSD

Electrification

Products (09)

Performance Services (09) 408 MUSD __________________________

Total

1,034 MUSD

ABB Group April 25, 2011 | Slide 3

ABBs Pulp and Paper Business Unit - 2010

BU Manager Controller Michael Briggs Technology Marketing Wayne Hopson William Dannelly

Centres of Excellence
China Quality Control Systems) Web Imaging System Singapore Finland Control Systems PM Drives

Composite Plant Solutions, Electrification and Instrumentation France USA Chemical Delivery Systems Services

Regional Centres
North Asia South Asia North America South America PSE North Europe South Europe Beijing (Lin Shu Ming) Singapore (Mark Chan Yan) Columbus (Troy Hobson) Sao Paulo (Fernando Oliviera) Prague (Anders Kornblad) Vasteras (Kent Jansson) Milan (Amadeo Cattaneo)

ABB Group April 25, 2011 | Slide 4

ABB Pulp & Paper Market Share

Drives
A BB Siemens Tos hiba Rockw ell GE Other 0% 10%

W eb Inspection
36% 27%

DCS
55%
A BB

A BB Cognex Parsytec 5% 3% 20% 40% 37%

38% 26% 13% 7% 5% 3% 8%

10% 20% 30% 40%

11% 8% 4% 14%
20% 30% 40%

Metso Y okogaw a Others

Others 0%

60%

0%

Were #1 or 2 in the Markets We Compete !

Chemical Delivery
V almet/Rasio A BB GA W BV G Other 0% 10%

QCS
35%
40% A BB Honeyw ell 37% 17% 4% 2% 10% 20% 30% 40%

20% 20%

Metso

10% 15%
20% 30% 40%

V oith Y okogaw a 0%

-5 -

ABB will continue to deliver innovative products to the industry we serve

First DC Drives 1926 First Basis Weight Gauge 1950 First Analog QCS 1955 First Mechanical Scanner 1956 First On-line Moisture Sensor 1961 First Sectional Thyristor DC Drive 1964 First Computerized QCS 1967 First Digital Web Inspection System 1970 First Digital AC Drive 1984 First X-ray Coat Weight Sensor 1986 First AC Winder Drive 1988 First Coat Weight Actuator 1989 First QCS in DCS Architecture 1990 First Smart Sensor 1991 First Advanced Color Control 1992 First On-line Fiber Orientation Sensor 1999 First Encoderless Drive 2001 First Direct Drive 2002 First Neural Classification for WIS 2003 First Fiber Orientation Control 2006 2009 First Optical Caliper Sensor

ABB Group April 25, 2011 | Slide 6

Pulp and Paper Systems Total Employees

Canada-23 US- 98

Finland- 209 Ireland- 80 Sweden- 35 Germany- 8 France- 36 Italy- 20 Czech - 19 China- 94

India- 53 Singapore- 74 Brazil- 72

South Africa- 24

845 people dedicated to developing, manufacturing and delivering automation and electrical systems the Pulp and Paper Industry
ABB Group April 25, 2011 | Slide 7

Pulp and Paper Service Total Employees

Canada- 46 US- 247

Finland- 56 Ireland- 27 Sweden- 74 Germany- 51 Netherlands- 20 UK- 49 Spain- 40 Portugal- 10 France- 97

Czech- 38 Hungary- 9 Italy- 27

China- 32 South Korea- 11

Brazil- 41 Columbia-6 Argentina-3 South Africa- 18

India- 7 Singapore- 15 Thailand- 20 Indonesia- 17 Australia- 16 New Zealand- 18

875 People Dedicated to Servicing Pulp and Paper Customers

ABB Group April 25, 2011 | Slide 8

ABB Pulp and Paper: 5 Year People Migration Western Countries: -41% Emerging Countries +44%

NEU

786 465

CEU NAM

286 136

NAS 59 198

687 375 MED

254 212

IMA 64 107 SAS

Project Execution

ABB Executes Projects in 8 Countries Used to be 10 in west. Today only US, Finland, Sweden, and Italy China, Singapore, India, and Brazil are emerging country centers Western Countries > 70% Service Emerging Countries < 20% Service

SAM
70

118 145

110

Service (as a percent of revenue)

ABB Process Automation BU Pulp & Paper Unit April 25, 2011 | Slide 9

Commitment to a common architecture A unified portfolio of automation solutions

ABB Group April 25, 2011 | Slide 10

Power Distribution, Electrification and Instrumentation

ABB Group April 25, 2011 | Slide 11

What is our message

ABB Group April 25, 2011 | Slide 12

Commitment to our installed base Support for life

ABB Group April 25, 2011 | Slide 13

ABB Systems are built to last

20 years of life is not uncommon! 30 years of life is not unheard of!

Visy Paper in Australia, Smithfield Mill 20 year old MP being replaced. Notice original MP in foreground

ABB Group April 25, 2011 | Slide 14

Image

courtesy of the Singapore Tourism Board

21 February 2011

BU Pulp & Paper Regional Centre and CoE Singapore

ABB Singapore 2009 | Slide 15

Pulp & Paper Regional Center and CoE Singapore

Started in 1990 Regional center for all project execution in SAS. Regional center for all optimization and expert service in SAS. CoE for control systems moved to Singapore in April 2005

A high competence, high efficiency center with capacity to operate globally More than 12 nationalities

Gives us a very international outlook Allows us to be local anywhere

Total headcount of 60 (6 in CoE) Competencies

Process Automation Systems (PAS) Quality Control Systems (QCS) and CD actuators Web Inspection Systems (WIS) Advanced Process Control (APC) Process Information Management Systems (PIMS) Collaborative Production Management (CPM) Electrification Sectional drives Instrumentation Performance services

ABB Group 25, 2011 | Slide 16

April

Pulp & Paper Regional Center and CoE Singapore

Main Activities

Active driver of P&P OCS business worldwide Developer of IP for the BU P&P Global technical and sales support center Marketing resource/global BU marketing team member Major project delivery center in SEA/South Africa/Australia Authorization / certification
Enhance customer value with new technology and applications for the P&P industry Reduce costs/risk of projects

Value

Efficient engineering tools and solutions Focus on the value chain of engineering Reduce duplication of development efforts Reduce exposure to risks Resources for development of special/unique requirements Pooling of global competence and experiences

Effective sharing of competence of technology across countries

Problem resolution center

ABB Group 25, 2011 | Slide 17

April

Pulp & Paper Regional Center and CoE Singapore

Development Projects

Engineering Tools PPDesign automatic hardware engineering and drawing creation PPApplication automatic software engineering Advanced Process Controls Predict and control the operations for effective plant management Process & Control Optimization Analyze, identify, replace, modify and optimize instrumentation and controls for increased productivity and quality improvements with minimum efforts and investments

ABB Group 25, 2011 | Slide 18

April

Pulp & Paper

ABB Group April 25, 2011 | Slide 19