September 2012

ABB Investor Presentation

Safe-harbor statement

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, 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 Ltds 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.

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Introducing ABB

ABB at a glance ABB: A company with global reach 135 000+

employees in

$38 bn
in revenue 2011

100
countries Traded on

HQ located in

Zurich, Switzerland

Switzerland, Sweden and the US ~$45 bn

Market Capitalization1

as of 31 December 2011

Chart 4

ABB at a glance ABB operates in more than 100 countries in the world

Manufacturing sites Sales offices

Chart 5

ABB: A global leader in power and automation Five operating divisions: Two Power
Market leader across most of the portfolio
Power transmission & distribution solutions for utilities and industry

Power Products

Power Systems

$10.9 billion1

$8.1 billion1

Switch, protect, transform and measure power transmission and distribution for industries, utilities and power generation

Delivers systems for utilities, industrial and commercial customers for the generation, transmission and distribution of electricity

2011 revenues non-consolidated

Chart 6

ABB: A global leader in power and automation Five operating divisions: Three Automation
Among Top 3 in most markets
Energy efficiency solutions for process industries (eg, oil & gas), factory automation and building & construction
Discrete Automation and Motion

Low Voltage Products

Process Automation

$8.8 billion1

$5.3 billion1

$8.3 billion1

Integrated automation solutions, movement and control for industrial applications

1

Products and solutions to provide protection, control and measurement for LV electrical installations

2011 revenues non-consolidated

Products and solutions to process control, safety, energy and information management, plant maintenance and performance enhancement

Chart 7

Offering a diverse business mix Products, systems & service

Business Mix
Approx. share of orders received 2011

Service

55%

30%

15%

ABB engineers working at onshore gas processing plant

Systems

Products

Power Generation Solutions: Switchyard Power Plant

Industrial robots in furniture industry

Chart 9

A balanced portfolio across cycles Early, mid and late cycle businesses
Share of orders 2011
Approximate; Percent

Key macro drivers

Construction, earlycycle industry (GDP)

Low-Voltage Products Discrete Automation and Motion

20%

Early cycle
Industrial production (machinery, electronics)

32% Process Automation Power Products 48% Power Systems

Mid cycle
Demand for commodities, industrial capex

Late cycle

Utility (T&D) and industry capex, renewables

Chart 10

Geographically balanced portfolio

Tapping profitable growth opportunities wherever they arise
Orders by region
% of 2011 orders (non-consolidated)

Europe 38% Asia 30% Americas 23% Middle East and Africa 9%

Chart 11

A broad base of emerging market demand

Emerging markets account for nearly half of total orders
Top emerging markets by orders received in 2011

Order growth 2006-11*

> $1 billion > $100 million Mature markets Emerging markets Total ABB
* CAGR, local currencies

5% 7% 6%

Chart 12

5-year performance through the cycle Steady growth and earnings

ABB Orders received vs GDP growth1
US$ bn,
$45.0

$38.3
$40.0

$40.2 $31.0 $32.7

6%

$34.4
$35.0 $30.0

3%

$25.0

0%
$20.0 $15.0

$10.0

-3%

$5.0

ABB Revenues & op EBITDA margin

-6% 2007 2008 2009 2010 2011 US$ bn,
$45.0 $40.0

$-

30.0% $38.0 $34.9 $31.8 $31.6 20.0%

$35.0

$29.2
$30.0 $25.0

$20.0

$15.0

10.0%

$10.0

$5.0

$0.0

0.0% 2007 2008 2009 2010 2011

Source: Global Insight

Chart 13

The ABB investment case: Steady growth, earnings & cash generation through the cycle

A leader in attractive long-term growth markets: High-efficiency power grids and industrial automation Product and geographic scope allows us to capture profitable growth opportunities wherever they arise Strength in fast-growing emerging markets ensures both growth and long-term competitiveness Proven track record in quickly adjusting costs and production footprint to changing market demands Solid balance sheet and credit rating provide a foundation for both organic and inorganic growth Steady dividend payout through the cycle

Chart 14

Strategy 2011-2015

2011-2015 strategy Competitiveness today underpins future growth

1

Drive competitiveness and stay relevant in our current markets

2
Capitalize on megatrends

3
Aggressively expand core business

4
Disciplined M&A

5
Exploit disruptive opportunities

Chart 16

Drive competitiveness and stay relevant in our markets Execution is top priority
Strengthen the base

1
Drive competitiveness

Continue to drive cost and quality competitiveness Invest in technology leadership Use assets efficiently: cash, intellectual property and brand Invest in people development

Our ambition To develop, produce, source and sell optimally to match market needs, profitability growing the business while increasing levels of productivity and quality

Chart 17

Drive competitiveness and stay relevant in our markets Technology development: In country for country
Annual R&D spend as % of sales
3.6% 4.0%

Share of total employees by market

25% 26% 30% 50%

2.9%

3.3%

3.4%

Emerging markets

75%

74%

70% 50%

Mature markets

2008 2009 2010 2011

2015F

2009

2010

2011

2015F

In country for country Moving closer to customers and markets allows ABB to move at local speeds and develop products for local markets

Chart 18

Drive competitiveness and stay relevant in our markets Reducing costs while improving quality
Cost savings
50%
Supply Chain Management
Leverage volumes, Boost supply chain competences

Strategy

Glocalized strategic commodity management Maximum efficiency in logistics

45%

Operational Excellence
Quality improvements, on-time delivery

5%

Global Footprint
Optimize geographic footprint

Processes & systems

People

Improved quality processes Proactive risk management Common ERP structure

Training & certification Supportive organizational structure Strategic vs. transactional thinking Collaboration with suppliers

Chart 19

Capitalize on mega trends Anticipate, participate and lead in key markets

2
Capitalize on megatrends
Resource Economies Green Urbanization

Transportation Electrification mobility (people, goods)

Digital information

Emerging economies and power shift

Focus on industries growing faster than world GDP Traditional mature markets still with significant opportunity Global megatrends will mitigate short-term volatility
Chart 20

Aggressively expand core business Secure next level of growth

Grow service to ~25% of revenues 3
Aggressively competitiveness expand core business

Drive

Integration IT and OT

2010

2011

2012

2013

2014

2015

Key drivers

Tap leading installed base

Integrate service into product design Optimize software business model Invest in service sales

Information Technology

Operations Technology

Energy Management Infrastructure

Chart 21

Disciplined M&A Across products, markets and geographies

Key drivers for a successful acquisition

4
Disciplined M&A

Deeply grounded in strategy

Disciplined approach to valuation Rigorous due diligence Integration planning from Day One

Increase North American exposure

Increase software exposure

Chart 22

Exploit disruptive opportunities Addressing major developments

1

5
Exploit disruptive opportunities

Top technologies of the decade #1 Smart Phone #2 Social Networking #3 Voice Over IP

# 9 ABBs Technology FACTs

An enabler for a smarter grid

Increase transmission capacity Improve system stability Improve power quality

ABB position

1

Institute of Electrical and Electronics Engineers

Worlds leading supplier Delivered >50% of world total installations Pioneer and technology leader

Chart 23

Key drivers for market growth to 2015 Power

Estimated total market sizes and expected growth rates
US$ bn and percent change

$130 bn $100 bn
6% CAGR

Key Drivers

Aging network in North America and Europe Remote renewable integration and interconnections Emerging market grid and generation build-out Wind and solar to reach grid parity in many markets by 2015 Smart grids to manage power system volatility

2010

2015

Assumes average annual global GDP growth of 3-4%

Chart 24

Key drivers for market growth to 2015 Automation

Estimated total market sizes and expected growth rates
US$ bn and percent change

$380 bn $285 bn
6% CAGR

Key Drivers

Energy efficiency Commodity demand Use of energy (oil & gas) Factory automation Transportation and mobility

2010

2015

Assumes average annual global GDP growth of 3-4%

Chart 25

2011 2015 new targets Overview

Group targets1
Metric Organic revenue growth (CAGR2)
Operational EBITDA margin corridor Organic EPS growth (CAGR2) 2011-15 Targets2
7 10%

Potential Impact from M&A

+3% to 4% Within the same corridor

13 19%

10 15%

+3%

Free cash flow Annual average >90% conversion Cash flow return on invested capital
>20% by 2015

Same conversion rate Depends on acquisition timing, steady over the long term

1 See 2

Appendix for definition of non-GAAP measures

Organic incl. acquisitions closed as of end-Oct. 2011; CAGR = Compound annual growth rate, base year 2010

Chart 26

2011 2015 plan assumptions We expect to outgrow global GDP by more than 2x
Key assumptions World GDP growth assumptions2
Real GDP growth %

Economic slowdown in next 18 months, not a deep recession World GDP to grow 34%1, emerging market (EM) growth >2x developed markets Global industrial capex to grow 56%1, EM capex share growing to 65% from <60% ABBs markets to grow 6%1

ABBs organic revenue growth target (CAGR) = >2x GDP

6 4 2

4% CAGR

3% CAGR
0 2010 2011 2012 2013 2014 2015 2009.5 2010.5 2011.5 2012.5 2013.5 2014.5 2015.5

1 Compound

annual growth rate, base year 2010; 2 Source: Global Insight

Chart 27

2011 2015 plan assumptions Execution to balance cost AND growth remains key
Market assumptions

Emerging markets keep commodity prices high good for business, challenge for input costs Plan assume stable forex, changes compensated by hedging policy and balanced footprint Price pressure and emerging market competition are a fact of life continuous cost savings required to incrementally improve gross margin

Strategic parameters

Portfolio remains focused on Power and Automation no divestments planned

M&A capacity to potentially increase top line CAGR1 by 3 4 % (not included in targets)

1 Compound

annual growth rate, base year 2010

Chart 28

Clearly defined credit and investment targets Solid single A rating remains our standard
Credit Rating by Agency
Long-term rating
Standard and Poors* Moodys*
* As of March 31, 2012

Key debt ratios

Outlook Net debt / EBITDA
ABB Target ABB at end-June 2012 ~1.5-2x 0.7x

Gross Gearing
< 40% 37%

A A2

Stable Stable

M&A Investments criteria

Investment priorities
1 Organic growth, R&D, and capex 2 Paying annual dividend in line with policy 3 Value-creating acquisitions 4 Returning additional cash to shareholders

Cash return > WACC within 3 years

IRR > WACC + specific hurdles

Chart 29

R&D locations to grow regional markets with locally developed products

Location of ABBs corporate research centers, 2011

>$1.3 bn
invested annually in R&D
Vsteras
Sweden

7,500
R&D scientists
Ladenburg
Germany

Krakow
Poland

Beijing
China

Raleigh
USA

Baden
Switzerland

Shanghai Bangalore
India

China

Collaboration with 70 universities

MIT (US) Tsinghua (China) KTH Royal Institute of Technology (Sweden) Indian Institute of Science (Bangalore)

ETH (Switzerland) Karlsruhe (Germany) AGH University of Science and Technology (Poland)

Chart 30

Technology: Our competitive advantage Localized R&D: New products for new markets
Examples of new products launched in 2011

Door entry systems

Residential/commercial, indoor/outdoor Modular design for network configuration

Gas Insulated Switchgear type ELK-14

Space saver for high-voltage substations Highly modular, easy to customize

Symphony Distributor Control System

New generation DCS upgrade for installed base Widely used in power and water applications

Electric Vehicle fast-charger

Operating in Europe, Asia Full charge <30 mins. Software connectivity to grid

Chart 31

Sustainability one of highest business priorities Balancing economic success, environmental stewardship and social progress

Offer eco-friendly products that minimize waste and reduce environmental impact Helping customers in implementing environmentally sound processes and technologies Complying with all applicable environmental, health, safety standards and social legislation

Working to achieve best practices in occupational health, safety for employees and our customers
Integrity embedded in ABB DNA, e.g. zero tolerance to fraud, bribery and corruption Code of Conduct followed by all ABB employees No business with sensitive countries such as Somalia and North Korea Completed withdrawal from Sudan in 2009 Not pursuing new business in Iran since 2007 and completed our withdrawal from oil and gas in Iran in 2011

Chart 32

Making a more efficient world Our products are inherently sustainable

Press Release
June 11, 2012

ABB electric drives save 310 million megawatt hours in 2011

Equivalent to the output of 41 nuclear reactors

Chart 33

Developing sustainability of products and operations Lowering environmental impact and costs
Sustainability in product development

Focus on resource and energy efficiency over product lifecycle Independently verified Environmental Product Declarations for main products

Sustainability in operations

Reduce use of energy, raw materials, hazardous substances Example: China

63% lower energy use per unit of revenue from 2002 to 2010

Chart 34

ABBs vision and culture

Vision

Global leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. Demonstrate personal, professional and corporate responsibility, showing respect for the views and needs of others and applying our shared determination to win. Committed to high moral and ethical standards and conduct business with integrity and in full compliance with regulations, local laws and our own corporate policies.

Business Principles

Integrity

Sustainability

Balance economic success, environmental stewardship and social progress to benefit all our stakeholders.

Chart 35

2011 Financial Performance

Full-year 2011: Financial highlights Outstanding results in a tough environment

Financial highlights
US$ mill unless otherwise stated

2011 Orders Revenues Operational EBITDA 40,210 37,990 6,014

Change vs 2010 +18%1 (organic. +11%) +15%1 (organic +9%) +25% +0.5 percentage points +24% +23% +8% -14% -7 percentage points

Record orders and revenues

Net income up $600 million vs. 2010

Operational EBITDA % Net income EPS (basic) Dividend per share

(CHF)

15.8% 3,168 1.38 0.65 3,612 14%

Cash from operations close to 2010 record

Cash from operations Cash return on invested capital

Cash return on invested capital reflects initial impact of Baldor acquisition

Chart 37

Exceeded 2011 cost savings target Savings continued to outpace negative market impact
Savings by category, 2011
Percent

Historical savings, 2009-2011

US$ bn

Operational Excellence
40%

1.5
Sourcing

1.5 1.1

$1.1 bn
5%

55%

Global footprint

2009

2010

2011

ABBs cost-out focus embedded in its DNA

Over $4 bn in savings since in 2009

Continued commitment to cost-out for 2012 at 3-5 % of cost of sales Cost savings:

Offset price pressure (in 2011, $970 mill) Fund M&A activities

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2011 dividend paid: CHF 0.65 per share Equivalent to 47% payout ratio, 3.3% yield1
Dividend payout 2005-2011
CHF per share

0.60 0.48 0.48 0.51

0.65

Ensuring steady cash flows for investors over the cycle 2011 dividend up 8% vs. 2010

0.24

2006

2007

2008

2009

2010

2011

Dividend policy
A steadily rising, sustainable annual dividend over time

as of 15 February 2012

Chart 39

2011-2015 New targets First-year performance against our targets

Group targets1
Metric
2011 Perfomance2 15% 2011-15 Targets2
7 10%

Comment
Starting well above the range Still a good buffer thanks to cost programs A strong first year High capital spending; to normalize over time 1st year show impact of Baldor acquisition

Organic revenue growth (CAGR2) Operational EBITDA margin corridor Organic EPS growth (CAGR2) Free cash flow conversion

15.8%

13 19%

23%

10 15%

82%

Annual average >90% >20% by 2015

Cash flow return on invested capital

1 2

14%

See Appendix for definition of non-GAAP measures Organic incl. acquisitions closed as of end-Oct. 2011; CAGR = Compound annual growth rate, base year 2010

Chart 40

Appendix Definitions of non-GAAP measures

Chart 42

Appendix: Definitions of non-GAAP measures (1)

Operational EBITDA: Earnings before interest and taxes (EBIT) excluding depreciation and amortization, adjusted for i) unrealized gains and losses on derivatives (FX, commodities, embedded derivatives), ii) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, iii) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities), iv) restructuring and restructuringrelated expenses, and v) acquisition-related expenses and certain non-operational items

Operational EBITDA margin: Operational EBITDA as a percentage of Operational revenues

Gross gearing: Total debt divided by total debt plus total stockholders equity (including non controlling interests) Net cash (Net debt): Cash and equivalents plus marketable securities and short-term investments, less total debt Free cash flow (FCF): Net cash provided by operating activities adjusted for i) changes in financing and other non-current receivables; ii) purchases of property, plant and equipment and intangible assets; and iii) proceeds from sales of property, plant and equipment

Chart 43

Appendix: Definitions of non-GAAP measures (2)

Free cash flow conversion: Free cash flow as a percentage of net income attributable to ABB CROI: Cash return on capital invested, calculated as i) cash provided by operating activities plus interest paid, divided by ii) capital employed plus accumulated amortization and depreciation

Chart 44

For more information, call ABB Investor Relations or visit our website at www.abb.com/investorrelations

Telephone Alanna Abrahamson (Zurich) John Fox (Zurich) Tatyana Dubina (Zurich) Annatina Tunkelo (Zurich) +41 43 317 3804

e-mail
alanna.abrahamson@ch.abb.com

+41 43 317 3812

john.fox@ch.abb.com

+41 43 317 3816

tatyana.dubina@ch.abb.com

+41 43 317 3820

annatina.tunkelo@ch.abb.com

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