Driving innovative solutions for Smarter Buildings · Smart Buildings growth is based on digital innovation and channel partnerships October 4, 2018 Slide 15 Residential to commercial

—ABB LTD., BANK OF AMERICA MERRILL LYNCH SMART BUILDINGS CONFERENCE, OCTOBER 4, 2018

Driving innovative solutions for Smarter BuildingsTarak Mehta, President, Electrification Products

—Agenda

Market drivers for Smart Buildings

ABB and Smart Buildings

—Mega trends shape the future of buildings

October 4, 2018 Slide 3

Urbanization

70% of the world’s population will live in cities by 2050

UN study

New sources of consumption

EVs will represent over 55%of the market by 2040

Bloomberg

Digitalization

By 2020, 33bn+ internet-connected devices will be used worldwide

Strategy Analytics study

Integration of renewables

The solar market will grow to 150 GW in 2025

Frost&Sullivan

—Smart Buildings

October 4, 2018 Slide 4

Smarter Buildings deliver performance – both financially and in terms of quality of life

Sustainability

Connectivity

Design

Comfort

SecurityEnergy efficiency

SafetyEnergy costs

Maintenance costs

CO2 emissions

Rent

Return on Investment

—

Residential buildings

automation

10

Residential buildings electrical

distribution

23

C&I buildings electrical

distribution

30

C&I buildings automation

27

Market estimate 2017 ($bn)

Buildings are an attractive $90+ billion market

October 4, 2018 Source: ABB Strategy team analysis, BCG project for ABB Slide 5

Opportunities in both electrical distribution and building automation

—

Building complexity pyramid Growth enablersSmart technologies

penetration

Smart buildings opportunity

October 4, 2018 Source: BCG analysisSlide 6

Digital capabilities create growth

Medium

High

Low

Government regulations

Computing costs go down

IoT-enabled & cloud technologies

Soft factors

60 - 70%

10 - 15%

0 - 5%

OpEx savings pressure

Customers

Large mixed developments,

skyscrapers, campuses

Mid-size offices, hotels, retail,

healthcare

Small commerce, branches

—Agenda

Market drivers for Smart Buildings

ABB and Smart Buildings

—

October 4, 2018 1Excluding GE IS acquisition full-year results; 2incl. BuildingsSlide 8

ABB: a global pioneering technology leader with >130 years of history

What

(Offering)

For whom (Customers)

Where (Geographies)

Utilities Industry Transport & Infrastructure1

Globally

Asia, Middle East, Africa Americas Europe

~$34bn2 revenue ~100 countries ~135,0002 employees

Pioneering technology

Products Systems Services & software

—

~43,000 employees$10.1 bn1 in revenues

$1.5 bn1 Op.EBITA

Present in +100 countries

Manufacturing sites 100+

Delivering 1.5+ million products a day

~14,000 employees

$2.7 bn in revenues

GE Industrial Solutions

ABB Electrification Products at a glance

October 4, 2018 1 2017 reported resultSlide 9

—

Biological House, Denmark Skalski Offices, Poland Chateau de Ferrierès, Paris

Schauland office, Germany Igloo Hotel, Finland Volante Tower, Dubai

Today, we are helping buildings across various segments

October 4, 2018 Slide 10

—Smart homes & buildings are a reality today

October 4, 2018 Slide 11

End-to-end solution with solar, storage, home & buildings automation and e-mobility

Renewablesgeneration

Energy storage

Electricvehicles

digitally enabled by

Microgrid

Homes & buildings ecosystemIntegrated 3rd party products and services

—

– Grid management

– Smart metering and energy storage management

– Smart home/building integration

– Integration of EV charging network

– Demand-Response to align production and consumption

Shaping a sustainable future for the capital of Sweden

October 4, 2018 Slide 12

Stockholm, Sweden

A comprehensive solution from one source

Royal Seaport Project

—

ABB Ability™ applications

ABB Ability™ enables buildings to unlock value

October 4, 2018 Slide 13

Digital solutions enable:

– System optimization

– Grid reliability

– Energy services

– New business models

– Savings

En

erg

y

ConsumptionGeneration Storage

Advanced distribution network management Demand / Response

Gri

d

Generation Distribution Wholesale markets Retail

Microgrid

Asset Health

Energy mgmt

Aggregation

Se

gm

en

ts

CommunitiesCommercial Residential Industrial

—ABB Ability™ in a strong position within first two years of brand

Ipsos, Brand Reputation Study 2017; global data1Base: All respondents: n=1,976; 2,3,4,5 Base: : Aware of respective digitally connected offering: ABB Ability: n=478, Sap HANA: n=281, MindSphere: n=242, EcoStruxure: n=210, Predix: n=190, Lumada: n=143; Remark: GE and Schneider not assessed in all divisions

October 4, 2018 Slide 14

Brand performance Image profile5

23

46

14

43

13

36

10

34

10

34

7

19

43

75

40

73

34

67

31

66

30

63

28

60

Aided awareness1 Familiarity (top2)2

Usage3 Consideration4

AB

B A

bil

ity

™A

BB

Ab

ilit

y™

AB

B A

bil

ity

™

AB

B A

bil

ity

™ 30 40 50 60 70

Predix MindSphere

ABB Ability EcoStruxure

Lumada SAP Hana

Stands for extensive industry expertise

Provides unmatched digital competence

Offers cloud connectivity

Protects customer data

Ensures cyber security

Guarantees data ownership

—Smart Buildings growth is based on digital innovation and channel partnerships

October 4, 2018 Slide 15

Residential to commercial Ecosystem integration Market access

Digital customer experienceIII

Reduced costs for technologyII

Intelligent functionalityI

Residential Buildings – current focus

Medium

High

Low

Mechanical contractors

Electricalcontractors

System Integrators