Slide 1: Continuing growth
— ABB LTD, ZURICH, SWITZERLAND, OCTOBER 26, 2017, Q3 2017 RESULTS Continuing growth 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: Q3 2017: continuing growth
— Q3 2017: continuing growth Ord ers Base ord ers Revenues $8.2 bn $7.4 bn $8.7 bn 1 1 1 +5% +6% +3% Cash f low f rom op erat ing Op erat ional EBITA marg in Op erat ional EPS act ivit ies 12.9% $0.34 $954 mn 2 +0.1 pt s +7% -$127 mn 1On a comparable basis; 2Operational EPS growth is in constant cur
Slide 4: Q3 2017: continuing growth
— Q3 2017: continuing growth Total orders up 5%, including B&R up 6%; up in all regions Profitable Base orders up 6%, including B&R up 7% Growth Services and software orders up 11%; ABB AbilityTM driving momentum Revenues up 3%, including B&R up 4% B&R acquisition closed July 6, integration on track
Slide 5: Q3 2017: growth across all regions
— Q3 2017: growth across all regions 2017 Q3 total order growth by region 2017 Q3 base order growth2 Change on a comparable basis Change on a comparable basis Aust ralia +26% Europe Canada +14% Tot al +8% China +10% Germany -8% UK +120% France +31% Sweden -11% Germany +5% France +31% India -4% Base
Slide 6: Q3 2017: performance by division
— Q3 2017: performance by division Key figures $ bn Electrification Elect rificat ion Robotics Robot icsand and Industrial Indust rial Power Power unless ot herwise ABBGroup ABB Group Productss Motion Automation Grids Product Mot ion Aut omat ion Grids st at ed Orders 8.2 2.5 2.0 1.7 2.2 Δ Comparabl
Slide 7: Q3 2017: operational EBITA
— Q3 2017: operational EBITA 12.8% op. 12.9% op. EBITA margin EBITA margin Operational EBITA bridge Q3 2016 to Q3 2017, $ mn +115 +73 -49 -5 -23 -10 -80 +24 +16 1,063 1,124 Op. EBITA Net Net Net Invest in Project Mix Other Forex Acquis / Op. EBITA Q3 2016 savings Commodity Volume growth margins Dive
Slide 8: 9M 2017: net working capital and cash flow
— 9M 2017: net working capital and cash flow Growth impacting working capital and cash flow in the quarter Net Working Capital reduction Cash flow from operating activities NWC as a % of revenues $ mn 18 Q1 Q2 Q3 17 3000 16 2500 15 14 2000 1,081 2014 13 1500 954 12 2015 11 1000 2016 1,082 467 10 500
Slide 9: Next Level Stage 3 – 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: 9M 2017: Continuing to shift ABB's Center of Gravity
— 9M 2017: Continuing to shift ABB’s Center of Gravity Strengthening competitiveness Solutions & service KEYMILE acquisition Robotics acquisitions, Partnerships: IBM e.g. NUB3D Low Voltage: GE IS Discrete: B&R acquisition Expand in less cyclical industries Business model change PIE: Expansion in hig
Slide 11: Leadership in electrification
— Leadership in electrification ABB to acquire GE Industrial Solutions (GE IS) Deal rationale Deal Financials Market access $2.7 bn sales − Expanded access to North America – Op EBITDA: ~8% − Significant installed base globally – Op EBITA: ~6% Performance improvement − Non-core business for GE $2.6
Slide 12: ABB Ability
— ABB AbilityTM Leadership and strong customer interest Leadership in Digital Grid ABB AbilityTM solution examples Utilities ABB AbilityTM Network Manager distribution ARC Market analysis - SCADA systems for Power T&D & outage management system ComEd (Chicago, USA) Solution to improve outage respons
Slide 13: EV Charging for cars and electric buses
— EV Charging for cars and electric buses ABB AbilityTM powered management system Leading portfolio Leading position Complete expertise in EV charging infrastructure Orders: from grid to socket supporting all EV charging EV charging infrastructure standards US, Germany, Netherlands, South America, …
Slide 14: Q3 2017: summary and outlook
— Q3 2017: summary and outlook Q3 2017 results Outlook Total orders +5%; base orders +6%; higher in all While uncertainties prevail, some macroeconomic regions signs trend positively in Europe and US with growth Services & software orders +11%; ABB AbilityTM expected to continue in China driving mom
Slide 15: Ak ED ED
Ak ED ED FADD ED
Slide 16: Key figures Q3 2017
— Key figures Q3 2017 Q3 17 Q3 16 Change $ mn unless ot herw ise ind icat ed $ Local currency Comp arab le Ord ers 8,157 7,533 +8% +8% +5% Ord er b acklog (end Sep t emb er) 23,424 24,554 -5% -6% -1% Revenues 8,724 8,255 +6% +4% +3% Op erat ional EBITA 1,124 1,063 +6% +3% as % of op erat ional reven
Slide 17: Third-party base orders by division
— Third-party base orders by division Q3 17 Q3 16 % Change Third-part y base orders $ mn Comparable Elect rificat ion Product s 2,407 2,227 +8% Robot ics and Mot ion 1,858 1,724 +7% Indust rial Aut omat ion 1,443 1,169 +4% Power Grids 1,668 1,581 +5% Corporat e and Ot her 8 26 n.a. Tot al Group 7,38
Slide 18: Cash flow from operating activities by division
— Cash flow from operating activities by division Q3 17 Q3 16 % Change Cash f low f rom operat ing act ivit ies $ mn Elect rificat ion Product s 304 352 -14% Robot ics and Mot ion 242 333 -27% Indust rial Aut omat ion 227 242 -6% Power Grids 157 149 +5% Corporat e and Ot her 24 5 n.a. Tot al Group 9
Slide 19: Order backlog by division
— Order backlog by division Q3 17 Q3 16 % Change Order backlog $ Comparable (end Sept ember) $ mn Elect rificat ion Product s 3,228 3,378 -4% -4% Robot ics and Mot ion 4,086 3,958 +3% +2% Indust rial Aut omat ion 5,766 5,854 -2% -5% Power Grids 11,752 12,139 -3% -4% Corporat e and Ot her -1,408 -775
Slide 20: Operational EPS analysis
— Operational EPS analysis Q3 17 Q3 16 r1 $ mn, except per share dat a in $ EPS EPS Net income (at t ribut able t o ABB) 571 0.27 568 0.27 +1% Operat ional adjust ment s: Acquisit ion–relat ed amort izat ion 74 70 Rest ruct uring and rest ruct uring-relat ed 92 39 expenses 2 Non-operat ional pension
Slide 21: Regional share of total orders and revenues by division
— Regional share of total orders and revenues by division Q3 2017 Elect rificat ion Robot ics and Indust rial Power Electrification Product s Robotics and Mot ion AutIndustrial omat ion Power Grids Products Motion Automation Grids 22% 28% 32% 29% 34% Orders 37% 37% 41% 35% 34% 41% 30% 18% 27% 28% Re
Slide 22: Electrification Products
— Electrification Products Q3 2017 In $ mn, y-o-y change comparable +7% Total orders were 7 percent higher as construction and Orders utility demand remained positive in particular in the AMEA region. 2,374 2,547 Q3 16 Q3 17 +5% Revenues grew 5 percent in the quarter. Revenues 2,462 2,596 Q3 16 Q3 1
Slide 23: Robotics and Motion
— Robotics and Motion Q3 2017 In $ mn, y-o-y change comparable +4% Total orders improved 4 percent on continued demand Orders for robotics and energy efficient solutions. Demand for the process end markets were positive to stable in the 1,936 2,032 quarter. Q3 16 Q3 17 Third-party base orders contin
Slide 24: Industrial Automation
— Industrial Automation Q3 2017 In $ mn, y-o-y change comparable +14% Total orders excluding B&R and currency effects grew Orders 14 percent; third party base orders grew 4 percent. 1,654 Including B&R and currency effects, the total reported 1,240 order growth was 33 percent and third party base or
Slide 25: Power Grids
— Power Grids Q3 2017 In $ mn, y-o-y change comparable -6% Total orders were impacted by the delayed timing of Orders large order awards and continued selectivity driven by change in business model. Third party base orders 2,379 2,244 grew 5 percent underpinned by investments in emerging markets. Q3
Slide 26: 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 October 26, 2017 S