Shaping a global leader in power and automation

Kaprun mountain reservoir in the Austrian alps, site of a hydroelectric power plant (photo)
ABB is present across the entire power value chain: its technologies convert primary energy into electricity, and transport that power from the point of conversion to the point of consumption.

In 2014, ABB laid the foundations to take the company to the next level, with a new strategy aimed at accelerating sustainable value creation to deliver attractive shareholder returns. The Next Level strategy is designed to build on ABB’s strong position in attractive markets.

As a global leader in power and automation, ABB serves utilities, industry, and transport and infrastructure customers in a market worth more than $600 billion per year. From 2015 to 2020, that market is expected to grow by roughly $150 billion, implying growth rates above global GDP.

To provide us with a systematic and robust approach for value creation, enhanced earnings per share (EPS) and cash return on invested capital (CROI), ABB defined three focus areas: profitable growth, relentless execution and business-led collaboration.

ABB’s Next Level targets are to grow operational EPS at a 10–15 percent compound annual growth rate and deliver CROI in the mid-teens over the period 2015–2020.