Slide 1: Building growth momentum
— ABB LTD, ZURICH, SWITZERLAND, JULY 20, 2017, Q2 2017 RESULTS Building growth momentum Ulrich Spiesshofer, CEO; Timo Ihamuotila, CFO
Slide 2: Important notices
— 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
Slide 3: Q2 2017: key figures
— Q2 2017: key figures Orders Base orders Revenues $8.3 bn $7.7 bn $8.5 bn 1 1 1 +3% +3% +1% Cash flow from operating Operational EBITA margin Operational EPS activities 12.4% $0.30 $467 mn 2 -0.5pts -11% -$615 mn 3 1On a comparable basis; 2Operational EPS growth is in constant currency (2014 foreig
Slide 4: Q2 2017: building growth momentum
— Q2 2017: building growth momentum Total and base orders up 3%; higher orders in all regions; service & software up 8% Profitable Revenues up 1% Growth Key ABB AbilityTM customer wins, artificial intelligence (AI) partnership with IBM Active portfolio mgmt: B&R acquisition closed July 6, KEYMILE’s
Slide 5: Q2 2017: regional order development
— Q2 2017: regional order development 2017 Q2 total order growth by region 2017 Q2 base order growth2 Change on a comparable basis Change on a comparable basis US +1% Europe China +4% Total +6% Germany -2% Germany +2% UK +65% India +23% Sweden +17% Canada -14% Italy +3% Italy +1% Base orders +1% Ame
Slide 6: Q2 2017: performance by division
— Q2 2017: performance by division Key figures $ bn Electrification Electrification Robotics and Robotics and Industrial Industrial Power Power ABBGroup ABB Group Products Motion Automation Grids unless otherwise Products Motion Automation Grids stated Orders 8.3 2.5 2.2 1.5 2.5 Δ Comparable +3% -1%
Slide 7: Q2 2017: operational EBITA
— Q2 2017: operational EBITA 12.9% op. 12.4% op. EBITA margin EBITA margin Operational EBITA bridge Q2 2016 to Q2 2017, $ mn +121 -28 -68 +13 -9 -80 -27 0 1,120 1,042 Op. EBITA Net Net Mix Other Forex Divest. Op. EBITA Commodity Project Q2 2016 savings Volume Q2 2017 margins July 20, 2017 Slide 7
Slide 8: H1 2017: net working capital and cash flow
— H1 2017: net working capital and cash flow Net Working Capital reduction Cash flow from operating activities NWC as a % of revenues $ mn 18 Q1 Q2 17 1600 16 1400 15 180 Timing of tax payments 1200 95 Cables operational cash 14 1000 2014 13 800 12 2015 807 467 600 11 2016 400 10 509 2017 200 252 0
Slide 9: Next Level Stage – committed to unlocking value
— Next Level Stage 3 – committed to unlocking value Four actions ANNOUNCED OCTOBER 4TH, 2016 1 Driving growth in four market-leading entrepreneurial divisions Profitable Growth 2 Quantum leap in digital Relentless Execution 3 Accelerating momentum in operational excellence Business-led Collaboration
Slide 10: H1 2017: Continuing to shift ABB's Center of Gravity
— H1 2017: Continuing to shift ABB’s Center of Gravity Strengthening competitiveness Service growth KEYMILE acquisition IBM partnership Robotics acquisitions e.g. NUB3D ABB AbilityTM B&R Cable divestiture Expansion in high-growth Handed over Dolwin 2 markets (e.g. Robotics, F&B) Lowering risk Drivin
Slide 11: H1 2017: ABB Ability
— H1 2017: ABB AbilityTM Strong momentum building Industry-leading offering Global launch ~ 30’000 customer representatives in US, Europe and China Innovation and expansion 180+ ABB Ability solutions 8 ABB Ability Collaborative Operations Centers Partnership July 20, 2017 Slide 11
Slide 12: H1 2017: ABB Ability – Leadership and strong customer interest
— H1 2017: ABB AbilityTM Leadership and strong customer interest Leadership in digital grid Key wins Example: asset performance management Utilities – Nordic HVDC link Contenders Leaders Followers Challengers Solution for world-class grid reliability ABB Ability MACHTM control system IBM ABB Industr
Slide 13: H1 2017: Power Grids transformation continuing
— H1 2017: Power Grids transformation continuing Operational EBITA margin, % 14% Shifting the Center of Gravity – Business model change Future range 12% Current – Investment in digitalization, ABB AbilityTM range 10% 10.0 – Keymile’s communication business to be acquired 8% 9.3 – Investment in Enbal
Slide 14: H1 2017: regular cost savings and White Collar Productivity
— H1 2017: regular cost savings and White Collar Productivity Constant Opex and SCM savings Increased White Collar Productivity ambition Target 3-5% of cost of sales, $ bn Run rate gross savings 5% $1.3 bn 3% new target 1.2 1.2 +30% 1.1 1.1 1.11 $1.0 bn original target 2013 2014 2015 2016 H1 2015 20
Slide 15: Q2 2017: summary and outlook
— Q2 2017: summary and outlook Q2 2017 results Outlook unchanged Total and base orders up 3% Mixed short-term picture Higher orders in all regions Some macroeconomic signs remain positive in US Revenues up 1% and growth in China expected to continue Op EBITA margin 12.4% dampened this quarter by com
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Slide 17: Key figures Q2 2017
— Key figures Q2 2017 Q2 17 Q2 16 Change $ mn unless otherwise $ Local currency Comparable indicated Orders 8,349 8,316 +0% +3% +3% Order backlog 23,553 25,338 -7% -6% -1% Revenues 8,454 8,677 -3% +0% +1% Operational EBITA 1,042 1,120 -7% -5% as % of operational revenues 12.4% 12.9% -0.5 pts Income
Slide 18: Third party base orders by division
— Third party base orders by division Q2 17 Q2 16 % Change Third-party base orders $ mn Comparable Electrification Products 2,393 2,494 -1% Robotics and Motion 1,967 1,826 +10% Industrial Automation 1,327 1,325 +2% Power Grids 1,977 1,980 +2% Corporate and Other 17 32 Total Group 7,681 7,657 +3% Jul
Slide 19: Cash flow from operating activities by division
— Cash flow from operating activities by division Q2 17 Q2 16 % Change Cash flow from operating activities $ mn Electrification Products 259 325 -20% Robotics and Motion 213 289 -26% Industrial Automation 143 270 -47% Power Grids 75 241 -69% Corporate and Other -223 -43 n.a. Total Group 467 1,082 -5
Slide 20: Order backlog by division
— Order backlog by division Q2 17 Q2 16 % Change Order backlog $ Comparable (end June) $ mn Electrification Products 3,220 3,452 -7% -5% Robotics and Motion 4,188 4,025 +4% +4% Industrial Automation 5,710 6,165 -7% -7% Power Grids 11,860 12,286 -3% -2% Corporate and Other -1,425 -590 Total Group 23,
Slide 21: Operational EPS analysis
— Operational EPS analysis Q2 17 Q2 16 1 mn $, except per share data in $ EPS EPS Net income (attributable to ABB) 525 0.25 406 0.19 +30% Operational adjustments: Acquisition–related amortization 56 71 Restructuring and restructuring-related 84 367 expenses2 Non-operational pension cost -7 0 Change
Slide 22: ABB's Executive Committee
— ABB’s Executive Committee As of July 1, 2017 Frank Duggan Sami Atiya Peter Diane de Jean- Ulrich Spiesshofer Claudio Timo Tarak Mehta Chunyuan Gu Greg Scheu Region Division Terwiesch Saint Christophe President and Facchin Ihamuotila Division Region AMEA Region Europe Robotics and Division Victor D
Slide 23: Regional share of total orders and revenues by division
— Regional share of total orders and revenues by division Q2 2017 Electrification Robotics and Industrial Power Electrification Products Robotics Motionand Industrial Automation Power Grids Products Motion Automation Grids 22% 27% 32% 29% 36% 33% 36% Orders 42% 37% 35% 42% 29% 20% 28% 32% 30% Revenu
Slide 24: Electrification Products Q2 2017
— Electrification Products Q2 2017 In $ mn, y-o-y change comparable -1% Orders impacted by fewer trading days in the quarter Orders Positive orders in Europe could not fully compensate 2,624 2,512 the decline in the Americas and AMEA H1 2017 orders up 1 percent Q2 16 Q2 17 +2% Revenues Revenues grew
Slide 25: Robotics and Motion Q2 2017
— Robotics and Motion Q2 2017 In $ mn, y-o-y change comparable +14% Total orders were 14 percent higher; up in all Orders regions and business units Third-party base orders increased 10 percent on 1,978 2,219 continued strong growth in robotics and light industry Q2 16 Q2 17 +5% Revenues Revenues im
Slide 26: Industrial Automation Q2 2017
— Industrial Automation Q2 2017 In $ mn, y-o-y change comparable +8% Total orders up 8 percent on selective CAPEX Orders investments in oil and gas and mining Third-party base orders continued positive 1,419 1,499 development Q2 16 Q2 17 -7% Revenues Revenues were 7 percent lower reflecting the exec
Slide 27: Power Grids Q2 2017
— Power Grids Q2 2017 In $ mn, y-o-y change comparable -3% Third-party base orders grew 2 percent on Orders investments in emerging markets 2,632 2,484 Total orders were impacted by timing of large order awards Q2 16 Q2 17 +0% Revenues Revenues were steady on solid order backlog 2,717 2,647 executio
Slide 28: More information available at ABB Investor Relations
— More information available at ABB Investor Relations Name Telephone Email Alanna Abrahamson +41 43 317 3804 alanna.abrahamson@ch.abb.com Head of Investor Relations Beat Fueglistaller +41 43 317 4144 beat.fueglistaller@ch.abb.com Ruth Jaeger +41 43 317 3808 ruth.jaeger@ch.abb.com July 20, 2017 Slid