07 ITAP2019 Peter Terwiesch, President – Industrial Automation, ABB, Switzerland

Thank you and good afternoon. I want to talk about industry having not only a business case but also a strong sustainability case going forward. Let me quickly introduce ABB: we are in the physical and digital world, in electrical automation and digitization, operating in more than 100 countries for over 125 years. As an engineer, I find it exciting to work in this period of two revolutions: the energy revolution and the Fourth Industrial Revolution, both powered by digitalization. I want to tie sustainability into this. The UN Sustainable Development Goals drive three mega trends: urbanization, decarbonization, and digitalization, which are particularly relevant for Singapore and South Asia. For example, in Australia we are executing the first hydrogen liquefaction and export terminal, where clean hydrogen is prepared for export to Japan. In Ho Chi Minh City, digitalization helps detect water leakages and deploy maintenance crews, saving 15 million cubic meters or $10 million per year. Here in Singapore, we delivered a project using smart sensors and integrated dashboards for predictive maintenance, reducing energy consumption and meeting stricter discharge standards. ABB is an important partner in Singapore's digital transformation journey for sustainable water supply. Reflecting on our 125-year history, automation started isolated and is now connecting assets with operation centers, including our collaborative operations center in Singapore. We have over a thousand marine vessels and industrial facilities under contract. This makes digitalization more presentable beyond PowerPoint. We are moving towards increasingly autonomous operations. Digitalization has two phases: capital investment (cost, schedule, risk) and operations (safety, productivity, energy efficiency). We close the loop from sensing to acting. Extended automation ties the operations loop and the asset loop together. For autonomous operations, we need to close more complex loops: perceiving, understanding, and solving problems. This won't happen overnight. Like the automotive industry, we take stages of autonomy. For example, offshore oil and gas: we have developed technology to put electrical and automation directly on the seabed, up to 600 kilometers from shore, at 3,000 feet depth, requiring autonomous functions because maintenance is prohibitive. Yesterday we announced a partnership with Capital Offshore and Marine to have Asia's first autonomous tug operation by end of 2020, allowing crews to focus on essential tasks. There is a safety, energy efficiency, and productivity case for this. Finally, we are 'sipping our own champagne' with Mission Zero, making our first facility CO2 neutral in energy provision using ABB technologies. This combines business and sustainability cases. I leave you with an artist's rendering of robots additively manufacturing a bridge in Amsterdam. It inspires thinking about building a bridge to a safer and more sustainable future. These things are possible today with our technologies. The development towards more autonomous industries will take time but will provide ample business opportunities. Thank you for your participation.