February 13, 2014 ABB FY and Q4 Presentation Driving solid results in challenging times © ABB Group February 13, 2014 | Slide 1 Important notices This presentation includes forward-looking information and statements including statements concerning the outlook for our businesses. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions, and the economic conditions of the regions and industries that are major markets for ABB Ltd. These expectations, estimates and projections are generally identifiable 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 important factors that could cause such differences include, among others: . business risks associated with the with the volatile global economic environment and political conditions . costs associated with compliance activities . raw materials availability and prices . 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 no assurance 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 GAAP counterparts can be found in “Supplemental Financial Information” under “Reports and Presentations” – “Quarterly Financial Releases” on our website at www.abb.com/investorrelations © ABB Group February 13, 2014 | Slide 2 Welcome on behalf of the ABB Executive Committee Ulrich Spiesshofer Bernhard Jucker Claudio Facchin Pekka Tiitinen Tarak Mehta Veli-Matti Reinikkala CEO Power Power Discrete Automation Low Voltage Process Products Systems and Motion Products Automation Eric Elzvik Jean-Christophe Diane Frank Duggan Greg Scheu CFO Deslarzes de Saint Victor Global Markets Business Integration Human General Counsel and North America Resources © ABB Group February 13, 2014 | Slide 3 Agenda: Investor and Analyst meeting Content Speaker FY and Q4 results presentation Ulrich Spiesshofer, Eric Elzvik Outlook and targets Ulrich Spiesshofer Focus areas Focus areas in action: profitable growth in Low Voltage Products Tarak Mehta Focus areas in action: business-led collaboration in services and integration Greg Scheu Summary Ulrich Spiesshofer Q&A © ABB Group February 13, 2014 | Slide 4 Full year 2013 summary © ABB Group February 13, 2014 | Slide 5 ABB delivered a solid 2013 performance in a challenging market Record revenues, higher earnings, free cash flow and dividend . Revenues up 7%1 (5% organic2) to a record level of $42 billion Profitable . Early cycle business trending positively as we head into 2014, lower Growth order backlog to weigh on revenues . Four of five divisions performed well . Operational EBITDA up 9% . Integration of acquisitions on track, delivering synergies Business-led . Service orders continued to outperform rest of business collaboration . Successful collaboration in key markets and accounts . Steady cost savings ~ $1.2 bn 1 Changes in orders Relentless . Automation with higher operational EBITDA margin and revenues in local currencies execution . Power Products continues to lead the sector in profitability 2 Excl. Thomas & Betts in H1 2012 and H1 2013 . Power Systems actions under way to generate more consistent returns 3 Proposed by Board of Directors . Free cash flow at $2.6 bn—94% conversion vs net income Attractive returns to shareholders via 5th consecutive dividend increase3 © ABB Group February 13, 2014 | Slide 6 ABB’s vision: Power and productivity for a better world Strong external endorsement Recognition for ABB’s efforts in energy efficiency and renewable energy technologies Underlines our relentless drive for innovation to create new offerings and value for our customers Reflects ABB’s pioneering heritage in technology innovation Strengthens our reputation in the Gulf region and in key market segments © ABB Group February 13, 2014 | Slide 7 Order intake reflects challenging market Automation growth helped mitigate lower large orders 2013 order growth by region Automation 0% Change in local currencies Europe Power -9% Total -3% Germany +7% United Kingdom -8% Norway -12% Italy -7% Americas1 Automation +4% Power -18% Total -5% Asia Automation +7% US 0% Power -9% Canada -7% Brazil -37% Total +1% MEA2 Automation -9% China +7% India -11% Power -7% 1 Excl. Thomas & Betts in H1 South Korea +2% 2012 and H1 2013 : Americas Australia -15% total is -11% Americas Total -7% automation is -7%, total US -8%, total Canada -16% 2 Middle East and Africa Saudi Arabia -14% UAE +35% © ABB Group February 13, 2014 | Slide 8 Divisional highlights 2013 Discrete Automation Low Voltage Products Process Automation Power Products Power Systems and Motion . Strong year for . Strong growth in NAM . No. 1 position in global . Higher revenues and . Key project successes, robotics globally via T&B synergies DCS market confirmed strong cash flow despite offshore wind setbacks . Power-One . Breakthrough Emax . $260-mill 9-year . Good growth in acquisition to build #2 power manager offshore O&G service service business . New leadership to drive solar inverter position order strategic repositioning . ELBI wiring . Continued market and . Rapid order growth in accessories, Newron . Los Gatos analytical technology leadership . Technology position in EV fast charging building automation instruments acquisition with new product HVDC strengthened business software acquisitions launches All-time high in cash from Record revenues and Highest-ever operational Maintained sector-leading Project management operations operational EBITDA EBITDA and margin profitability improvements under way © ABB Group February 13, 2014 | Slide 9 Key figures by division full year 2013 Operational Operational US$ millions Orders 1 Revenues 1 EBITDA EBITDA % Discrete Automation 9,771 +2% 9,915 +5% 1,783 +3% 18.0% -0.4 pts and Motion Low Voltage Products +14% +16% 7,696 7,729 1,468 +20% 19.0% +0.6 pts (organic)2 (+1%) (+2%) Process Automation 8,000 -8% 8,497 +5% 1,096 +9% 12.9% +0.6 pts Power Products 10,459 -5% 11,032 +3% 1,637 +3% 14.8% 0 pts Power Systems 5,949 -25% 8,375 +8% 419 +44% 5.0% +1.3 pts Corporate (2,979) (3,700) (328) ABB Group -3% +7% 38,896 41,848 6,075 +9% 14.5% +0.3 pts (organic)2 (-5%) (+5%) 1 Change in local currencies 2 excl. Thomas & Betts in H1 2012 and H1 2013 © ABB Group February 13, 2014 | Slide 10 Actions under way to return PS to higher, more consistent returns New leadership driving the realignment . Fix current project issues: . Significantly increased experienced and qualified resources . Leverage local and global technical and functional expertise (internal and external) . Benefit from learnings and focus on proven and repeatable technology and project design . Continue to improve quality of orders portfolio: . Drive market penetration in key sectors with balanced risk reward profile . Pricing models that better reflect technical and commercial risk profile . Revise commercial terms to rebalance technical and cash risks (e.g., timing of milestones, contract duration) . Continue selectivity on large projects with new technology . New risk mitigation models (e.g., alliances, insurance) © ABB Group February 13, 2014 | Slide 11 Service momentum is key building block for profitable growth Increasing share of recurring revenues Service order share1 Drivers of service growth: 20% . Grow installed base . Increase penetration of installed base 19% . Expand services product portfolio 18% . Broaden geographic coverage, strengthen local capabilities 17% . Invest in service workforce 16% . Focus on execution: Implement “how-to-win” initiatives 15% . Use common tools and processes 2010 2011 2012 2013 1 excl. Baldor and Thomas & Betts © ABB Group February 13, 2014 | Slide 12 ABB continues to save 3-5% of COS per year Steady momentum going forward Share of 2013 cost savings by division Share of 2013 cost savings by type Percent Percent Operational Global supply chain excellence optimization Process Automation Examples Examples 18% 32% Power Products . Lean/Six Sigma 36% . Best-cost sourcing Low Voltage Products 7% throughout . Joint sales and operations ~$1.2 bn ~$1.2 bn operations planning . Design-to-cost 64% . Collaboration and 18% . Design for consolidation Discrete Automation 25% reliability and Motion Power Systems . Increased focus on . 5,000 concrete indirects projects running Proactive cost saving measures to secure sustainable profitability © ABB Group February 13, 2014 | Slide 13 Integration update on ABB’s two largest transactions Solid “say-do” Baldor Thomas & Betts North American leader in electrical motors Major player in North American low-voltage market . 3-year CROI target exceeded . T&B operational EBITDA on plan . Accelerated global growth . Integration well under way, with retention of .