BERNSTEIN PAN EUROPEAN STRATEGIC …new.abb.com/docs/default-source/investor-center-docs/presentations/...BERNSTEIN PAN EUROPEAN STRATEGIC DECISIONS CONFERENCE, LONDON, ... –business

—BERNSTEIN PAN EUROPEAN STRATEGIC DECISIONS CONFERENCE, LONDON, SEPTEMBER 28, 2017

Committed to unlocking valueLeadership in the digital revolutionTimo Ihamuotila, CFO, ABB LTD

—

This presentation includes forward-looking information and statements including statements concerning the outlook for our businesses. These statements arebased on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions, andthe economic conditions of the regions and industries that are major markets for ABB Ltd. These expectations, estimates and projections are generallyidentifiable by statements containing words such as “expects,” “believes,” “estimates,” “targets,” “plans,” “outlook” or similar expressions.

There are numerous risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking information and statements made in this presentation and which could affect our ability to achieve any or all of our stated targets. The importantfactors that could cause such differences include, among others:

– business risks associated with the volatile global economic environment and political conditions

– costs associated with compliance activities

– market acceptance of new products and services

– changes in governmental regulations and currency exchange rates, and

– such other factors as may be discussed from time to time in ABB Ltd’s filings with the U.S. Securities and Exchange Commission, including its Annual Reports on Form 20-F.

Although ABB Ltd believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give noassurance that those expectations will be achieved.

This presentation contains non-GAAP measures of performance. Definitions of these measures and reconciliations between these measures and their US GAAPcounterparts can be found in the ‘Supplemental reconciliations and definitions’ section of “Financial Information” under “Quarterly results and annual reports”on our website at www.abb.com/investorrelations

Important Notices

September 27, 2017 Slide 2

—ABB: the pioneering technology leader

September 27, 2017 Pro forma: 2016 figures including B&R full-year figuresSlide 3

Offering

Customers

Geographies

Utilities Industry Transport & Infrastructure

~35% of revenue ~40% of revenue ~25% of revenue

Globally

Asia, Middle East, Africa Americas Europe

Pioneering technology leadership

Products Systems Software & services

~$35 bn revenue ~100 countries ~136,000 employees

—2017: living Next Level

September 27, 2017 Slide 4

Clear priorities, implementation well under way

Driving growth in four market-leading entrepreneurial divisions

Shifting the Center of Gravity: competitiveness, growth, risk

Quantum leap in digital

Value creating, strategic acquisitions and partnerships

World-class operational excellence across the whole organization

– White Collar Productivity, Net Working Capital, Quality

Linked strategy, performance management and compensation

Market focused and lean organization

Continued leadership development

Strengthening the global ABB brand

Profitable Growth

Relentless Execution

Business-led Collaboration

—Four market-leading entrepreneurial divisions

September 27, 20171Unconsolidated 2016; 22016 revenues in new structure as of January 2017; 38% for robotics market; 4Discrete automation segment; 5Consolidated, $140 bn unconsolidated; 6In certain segments; 7After the close of B&R acquisition

Slide 5

All businesses in #1 or 2 positions

…robotics and intelligent motion solutions

…industrial automation

…a stronger, smarter and greener grid

Schneider

Legrand

Eaton

Siemens

Fanuc

Kuka

Siemens

Emerson

Schneider

Siemens

GE

Hyundai

#2 in electrification

#1 in motion

#2 in robotics

#2 in industrial automation7

#1 in T&D

Position Revenues2

$9.9 bn

$7.9 bn

$6.8 bn

$10.9 bn

Top 3 competitors

…electrification of all consumption points

Partner of choice for…

~$140 bn2 – 4%

~$110 bn3 – 8%3

~$130 bn1 – 5%4

~$110 bn5

3 – >10%6

Market size1

and growth

Electrification Products

Robotics and Motion

Industrial Automation

Power Grids

—Leadership in industrial automation

September 27, 2017 Slide 6

B&R – closing ABB’s historic gap in machine and factory automation

Deal rationale

Attractive market segment (CAGR 4-5%)

Attractive company (CAGR ~11%)

Attractive strategic rationale(shaping global #2 in industrial automation)

Attractive financials(incl. strong growth and cost synergies)

B&R ABB

—ABB and B&R – strong #2 in industrial automation

Source: Management estimate, based on revenues, 1Excl. electrificationSeptember 27, 2017 Slide 7

Business volume industrial automation (products, software, solutions, services)

Sie

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GE

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ell

Ro

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a

Yo

ko

ga

wa

KU

KA

AB

B1

+ B

&R

~$15 bn

—Leadership in electrification

September 27, 2017 Slide 8

ABB to acquire GE Industrial Solutions (GE IS) for $2.6 billion

Deal rationale

Market access

− Expanded access to North America

− Significant installed base globally

Performance improvement

− Non-core business for GE

− Significant value creation potential:

• ABB technology leadership

• Cost synergies

Comprehensive electrification portfolio

− Complementary portfolio and solutions

Strategic supply partnership

− GE to tap ABB’s leading portfolio through long-term supply partnership

—GE IS and ABB

Source: Management estimate, based on revenues Electrification: low- and medium-voltage electrical distribution products and solutions

September 27, 2017 Slide 9

Global electrification revenues

Strengthening global #2 in electrification

VertivABB &GE IS

Schneider LevitonChintHagerSiemens LegrandEaton Hubbell

$12.3 bn

—ABB Ability™: industry-leading digital solutions

September 27, 2017 AMEA: Asia, Middle East and AfricaSlide 10

Successful launch in Europe, Americas and AMEA1 in H1 2017

180+ ABB Ability™ solutions

Platform(common technologies for device, edge, and cloud)

Utilities solutions

Industry solutions

Transportation & Infrastructure

solutions

—Why ABB?

September 27, 2017 Slide 11

Committed to unlocking value

Pioneering technology leader

Strong positions in attractive markets

Efficient balance sheet; generating attractive returns for shareholders

Clear transformation agenda driving operational EPS and CROI

Let’s write the future.Together.