1. © ABB Group May 15, 2015 | Slide 1 The MotorAdvantage – how to save UK industry Steve Ruddell, Division Manager, Discrete Automation and Motion, ABB Ltd

2. © ABB Group May 15, 2015 | Slide 2 Low voltage electric motors today  UK motor repair industry twice size of new motor market  While mechanical repairs – such as bearings and shafts – will always be needed, why are there so many rewinds?  No one should be making inferior motors  Today’s technology gives motors 20+ year life expectancy  Yet many repairers are rewinding motors less than 5 years old

3. © ABB Group May 15, 2015 | Slide 3 Remember this?  1.3 OHV engine  4 Star leaded petrol  Max Speed 98 mph  No ABS,power steering or CAT  32 mpg  No air bag. No central locking  No engine management system  Need regular maintenance (Every 6000 miles)  For the enthusiast only!  1.25 Zetec Engine  Unleaded petrol  Max speed 112 mph  ABS and power steering and CAT  35-50 mpg  4 Air Bags. Central locking  Engine management system  Longer service intervals (12-18,000 miles)  3 Year Warranty  When was the last time your car broke down?  Is your car rusty?  Do you own a Haynes manual for your car?  Would you spend 50% of the value of a new Fiesta repairing the engine of your old Fiesta?

4. © ABB Group May 15, 2015 | Slide 4 Low voltage electric motors today  Significantly different from 20 years ago  Advances in materials and manufacturing processes = better reliability and efficiency  65% of industrial electricity consumed by electric motor  110kW IE3 motor running 8760 hours per annum will create 19 tonnes less CO2 emissions than a less efficient model  It is estimated that there are over 10 million motors running in the UK today  Why are motor owners acting like Fiesta enthusiasts?

5. © ABB Group May 15, 2015 | Slide 5 Confused?  Since 2005 ABB has conducted over 2000 drives energy appraisals in UK  Information suggests industry does not effectively manage its motor assets  Leads to unplanned downtime, increased repair costs and higher than necessary energy bills and CO2 emissions  With UK PLC fighting for survival why is nothing being done about this?

6. © ABB Group May 15, 2015 | Slide 6 Is this really a big problem?  Metals process line  Downtime is £400/hr  Rip out / repair / re-install time is 48hr  Unplanned outage cost is £19,200  This is the hard cost…  What about the soft cost?  Loss of reputation  Loss of customer  Loss of margin

7. © ABB Group May 15, 2015 | Slide 7 Help is at hand MotorAdvantage  ABB believes UK industry is ineffectively managing its installed motors base  Leads to unplanned downtime, higher energy bills and higher CO2 emissions than necessary  Based on information collected over 5 years and from over 2000 plants we believe that there is an unarticulated need  Today we launch MotorAdvantage as a way of articulating and addressing that need

8. © ABB Group May 15, 2015 | Slide 8 MotorAdvantage from ABB What is it?  Motor management plan encouraging process industry to uncover true cost of running electric motors  Identify up to five motor-driven applications offering best potential for analysis  Site visit by motor engineer to assess identified motors  Shows financial impact of production loss through motor failure and recommends ways to minimise or mitigate  Shows energy savings and CO2 reductions by fitting premium efficiency motors and calculates payback period

9. © ABB Group May 15, 2015 | Slide 9 MotorAdvantage from ABB 3 steps to improving profitability 1. Consultation  Examine plant installed motor asset register  Identify up to five critical applications running continuously or more than 4,000 hrs per annum

10. © ABB Group May 15, 2015 | Slide 10 MotorAdvantage from ABB 3 steps to improving profitability 2. The Appraisal  Inspect selected motors; get an understanding of plant; inventory of spare motors; energy and maintenance plans  Old motor can be 1-5% lower in efficiency compared to new premium efficiency  If that motor is running continuously then typical payback of 2-3 years achievable if motor scrapped prior to failure  If the motor is replaced at point of failure then, taking rewind cost into payback calculation, new motor cost can be recovered in <12 months

11. © ABB Group May 15, 2015 | Slide 11 MotorAdvantage from ABB 3 steps to improving profitability 3. Proving savings – report and recommendations  Findings analysed and potential savings identified using dedicated software  Among data available includes:  estimation of present energy usage  whether application benefits from variable speed control  payback time if investment is made in new motors  CO2 emission reductions  Cost of unplanned outage

12. © ABB Group May 15, 2015 | Slide 12 MotorAdvantage from ABB Sample report – Engineers Report

13. © ABB Group May 15, 2015 | Slide 13 MotorAdvantage from ABB Sample report – Executive Summary

14. © ABB Group May 15, 2015 | Slide 14 MotorAdvantage from ABB Benefit to motor user  Clearly determines:  Current policy in event of motor failure  Financial impact on company  Areas for improvements in maintenance and stockholding  Energy use of current installation  Repays investment in plan within weeks  ABB predicts when motor needs maintaining and overhauling  Downtime minimised – Profits maximised

15. © ABB Group May 15, 2015 | Slide 15