Successful strategy further strengthens brand
Beijing, China, February 8, 2006 - ABB, the leading power and automation technology group, has been listed among the 50 most valuable Swiss brands, and ABB becomes the first among business to business brands.
The latest issue of the Swiss business magazine Bilanz has just published its 2005 survey of the top Swiss-based international brands and Swiss country brands. The study was conducted for Bilanz by the international brand valuation consultants: Interbrand.
For 2005, ABB ranked 13 overall behind heavily marketed consumer brands like Nestlé, UBS and Rolex. The Interbrand brand valuation method values ABB’s brand at CH 1,547 million.
This value is 1 percent higher than last year’s Interbrand-allocated value. ABB’s clear single-brand strategy, along with the success of the financial turnaround and our restored reputation further strengthensits brand. Additionally, ABB was viewed as one of the favorite employers for high-school graduates.
This is the second year for the Bilanz brand ranking system. In 2004 ABB ranked number 12 out of 50 Swiss brands, with a brand value of CH 1,529 million.
Interbrand defines brand value as the net present value of future earnings generated by the brand alone. The method employed to evaluate brands is comprised of five steps: segmentation, financial analysis, demand analysis, brand strength analysis and finally, the calculation of the net present value of brand earnings.
In September of 2005 ABB announced its new mid-term targets for the five-year period from 2005 to 2009, and at the same time released its Mission 2009 and Vision 2009, a key guidance document that defines the group’s ambition, purpose and aspirations -its commitments as a company towards its people, business partners and shareholders, and to the communities where it operates. By 2009, ABB will be recognized as the top global engineering company in terms of market impact, growth and profitability, value creation, sustainability and ethical behavior.
With the announcement of the midterm targets, it also outlined a strategy that emphasizes improved business execution and a broader approach to value creation, including focus on growth, operating margin, use of capital and cash generation. The announcement of ABB Group’s 2005-2009 targets begins a new chapter in the company’s development and brings to an end the intense period of turnaround activity.
ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impacts. The ABB Group of companies operates in around 100 countries and employs about 103,000 people worldwide. ABB has a full range of business activities in China, including manufacturing, R&D, sales and service, with 8,000 employees, 25 joint ventures and wholly owned companies, and an extensive sales and service network across 30 cities. To know more about ABB, visit www.abb.com.cn.