ABB Investor Presentation September 2012

Chart 2

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 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.

Introducing ABB

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ABB at a glance ABB: A company with global reach

$38 bn in revenue 2011

135 000+ employees in

100 countries

HQ located in

Zurich, Switzerland

Traded on

Switzerland, Sweden and

the US

Market Capitalization1

~$45 bn

1 as of 31 December 2011

Chart 5

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

Manufacturing sites

Sales offices

Chart 6

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

ABB: A global leader in power and automation Five operating divisions: Two Power

Power Products

$10.9 billion1

Power Systems

$8.1 billion1

Market leader across most of the portfolio

1 2011 revenues non-consolidated

Power transmission & distribution

solutions for utilities and industry

Chart 7

Integrated automation

solutions, movement and

control for industrial

applications

Products and solutions to

provide protection, control

and measurement for LV

electrical installations

Products and solutions to

process control, safety,

energy and information

management, plant

maintenance and

performance enhancement

ABB: A global leader in power and automation Five operating divisions: Three Automation

Discrete Automation and Motion

$8.8 billion1

Low Voltage Products

$5.3 billion1

Process Automation

$8.3 billion1

Among Top 3 in most markets

1 2011 revenues non-consolidated

Energy efficiency solutions for process industries (eg, oil &

gas), factory automation and building & construction

Chart 8

End markets served As a percentage of total Divisional revenues; approximations

ABB serves a broad customer base With a variety of channels and demand drivers

20%

10%

10%

5%

5%

10%

15%

5%

5%

15%

2011

Power transmission

Power distribution

Power generation

Buildings

Discrete manufacturing, automotive & transport

Oil, gas & petrochemicals

Minerals & metals

Pulp & paper

Marine

Other

40%

60%

2011

45%

55%

2005

Industrial

customers

(direct and

indirect

channels)

Utility

customers

(mainly direct

channels)

Chart 9

55% 30% 15%

Offering a diverse business mix Products, systems & service

Systems

Service Business Mix Approx. share of orders received 2011

Products

ABB engineers

working at onshore

gas processing plant

Industrial robots in

furniture industry

Power Generation

Solutions: Switchyard

Power Plant

Chart 10

48%

32%

20%

A balanced portfolio across cycles Early, mid and late cycle businesses

Share of orders 2011 Approximate; Percent

Early cycle

Late cycle

Mid cycle

Low-Voltage Products

Discrete Automation and Motion

Process Automation

Power Products

Power Systems

Industrial production (machinery, electronics)

Utility (T&D) and industry capex, renewables

Construction, early-cycle industry (GDP)

Demand for commodities, industrial capex

Key macro drivers

Chart 11

Geographically balanced portfolio Tapping profitable growth opportunities wherever they arise

Orders by region % of 2011 orders (non-consolidated)

Americas

23%

Europe

38%

Middle East and Africa

9%

Asia

30%

Chart 12

A broad base of emerging market demand Emerging markets account for nearly half of total orders

Order growth 2006-11*

Mature markets 5%

Emerging markets 7%

Total ABB 6% * CAGR, local currencies

Top emerging markets by orders received in 2011

> $1 billion

> $100 million

Chart 13

5-year performance through the cycle Steady growth and earnings

$34.4

$38.3

$31.0 $32.7

$40.2

-6%

-3%

0%

3%

6%

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

$45.0

2007 2008 2009 2010 2011

$29.2

$34.9 $31.8 $31.6

$38.0

0.0%

10.0%

20.0%

30.0%

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

$45.0

2007 2008 2009 2010 2011

ABB Orders received vs GDP growth1 US$ bn,

ABB Revenues & op EBITDA margin US$ bn,

1 Source: Global Insight

Chart 14

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

Strategy 2011-2015

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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 17

Drive competitiveness and stay relevant in our markets

Strengthen the base

Continue to drive cost and quality

competitiveness

Invest in technology leadership

Use assets efficiently: cash,

intellectual property and brand

Invest in people development

Execution is top priority

To develop, produce, source and sell optimally to match

market needs, profitability growing the business while

increasing levels of productivity and quality

Our ambition

1

Drive competitiveness

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75% 74% 70% 50%

25% 26% 30% 50%

2009 2010 2011 2015F

Annual R&D spend as % of sales Share of total employees by market

Drive competitiveness and stay relevant in our markets Technology development: In country for country

Moving closer to customers and markets allows ABB to

move at local speeds and develop products for local

markets

In country for country

Emerging markets

Mature markets

2.9% 3.3% 3.4% 3.6%

4.0%

2008 2009 2010 2011 2015F

Chart 19

Processes & systems

Improved quality processes

Proactive risk management

Common ERP structure

People

Training & certification

Supportive organizational structure

Strategic vs. transactional thinking

Collaboration with suppliers

Drive competitiveness and stay relevant in our markets Reducing costs while improving quality

Strategy

“Glocalized” strategic commodity

management

Maximum efficiency in logistics

Cost savings

Supply Chain Management

Leverage volumes, Boost supply chain competences

Operational Excellence

Quality improvements, on-time delivery

Global Footprint

Optimize geographic footprint

50%

45%

5%

Chart 20

Capitalize on mega trends

Focus on industries growing faster than world GDP

Traditional mature markets still with significant opportunity

Anticipate, participate and lead in key markets

Resource

Economies Green Urbanization

Emerging economies

and power shift

Digital

information Electrification

Transportation

mobility (people,

goods)

Global megatrends will mitigate short-term volatility

2

Capitalize on

megatrends

Chart 21

Aggressively expand core business

Key drivers

Tap leading installed base

Integrate service into product design

Optimize software business model

Invest in service sales

Secure next level of growth

Drive competitiveness

Integration IT and OT 2010 2011 2012 2013 2014 2015

Grow service to ~25% of revenues

Information

Technology

Operations

Technology

Energy Management Infrastructure

3

Aggressively

expand core

business

Chart 22

Disciplined M&A

Key drivers for a successful

acquisition

Deeply grounded in strategy

Disciplined approach to valuation

Rigorous due diligence

Integration planning from Day One

Across products, markets and geographies

Increase North

American exposure

Increase software

exposure

4

Disciplined

M&A

Chart 23

Exploit disruptive opportunities Addressing major developments

# 9 ABB’s Technology – FACTs

An enabler for a “smarter grid”

• Increase transmission capacity

• Improve system stability

• Improve power quality

ABB position

• World’s leading supplier

• Delivered >50% of world total

installations

• Pioneer and technology leader

#1 Smart Phone

#2 Social

Networking

#3 Voice Over

IP

Top technologies of the decade

1

5

Exploit

disruptive

opportunities

1 Institute of Electrical

and Electronics Engineers

Chart 24

Key drivers for market growth to 2015

2010 2015

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

Power

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

$100 bn

$130 bn

6% CAGR

Assumes average annual global GDP growth of 3-4%

Chart 25

Key drivers for market growth to 2015

2010 2015

Key Drivers

Energy efficiency

Commodity demand

Use of energy (oil & gas)

Factory automation

Transportation and mobility

Automation

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

$285 bn

$380 bn

6% CAGR

Assumes average annual global GDP growth of 3-4%

Chart 26

2011 – 2015 new targets Overview

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

+3% to 4%

Within the same corridor

+3%

Same conversion rate

Depends on acquisition timing,

steady over the long term

Group targets1

7 – 10%

13 – 19%

10 – 15%

Annual average >90%

>20% by 2015

1 See Appendix for definition of non-GAAP measures

Organic revenue

growth (CAGR2)

Operational EBITDA

margin corridor

Organic EPS growth

(CAGR2)

Free cash flow

conversion

Cash flow return on

invested capital

2011-15

Targets2 Metric Potential Impact from M&A

Chart 27

0

2

4

6

2009.520102010.520112011.520122012.520132013.520142014.520152015.5

2011 – 2015 plan assumptions

Key assumptions

Economic slowdown in next 18 months,

not a deep recession

World GDP to grow 3–4%1, emerging market

(EM) growth >2x developed markets

Global industrial capex to grow 5–6%1,

EM capex share growing to 65% from <60%

ABB’s markets to grow 6%1

World GDP growth assumptions2 Real GDP growth %

We expect to outgrow global GDP by more than 2x

ABB’s organic revenue growth target

(CAGR) = >2x GDP

1 Compound annual

growth rate, base

year 2010; 2 Source: Global Insight

3% CAGR

4% CAGR

2010 2015 2011 2014 2012 2013

Chart 28

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)

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

1 Compound annual

growth rate, base

year 2010

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Clearly defined credit and investment targets Solid single A rating remains our standard

Long-term

rating Outlook

Standard and Poor’s* A Stable

Moody’s* A2 Stable

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

Investment priorities

Cash return > WACC within 3 years

IRR > WACC + specific hurdles

M&A Investments criteria

Net debt /

EBITDA

Gross

Gearing

ABB Target ~1.5-2x < 40%

ABB at end-June 2012 0.7x 37%

Key debt ratios

* As of March 31, 2012

Credit Rating by Agency

Chart 30

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

Location of ABB’s corporate research centers, 2011

Raleigh USA

Ladenburg Germany

Baden Switzerland

Västeras Sweden

Krakow Poland

Bangalore India

Beijing China

Shanghai China

>$1.3 bn invested

annually in R&D

7,500 R&D scientists

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 31

Technology: Our competitive advantage Localized R&D: New products for new markets

Examples of new products launched in 2011

Gas Insulated Switchgear

type ELK-14

Space saver for high-voltage substations

Highly modular, easy to customize

Electric Vehicle

fast-charger

Operating in Europe, Asia

Full charge <30 mins.

Software connectivity to grid

Door entry systems

Residential/commercial, indoor/outdoor

Modular design for network configuration

New generation DCS upgrade for installed base

Widely used in power and water applications

Symphony Distributor

Control System

Chart 32

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 33

Press Release June 11, 2012

Making a more efficient world Our products are inherently sustainable

ABB electric drives save 310

million megawatt hours in 2011

Equivalent to the output of 41 nuclear reactors

Chart 34

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

Developing sustainability of products and operations Lowering environmental impact and costs

Chart 35

ABB’s vision and culture

• Global leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact.

Vision

• Demonstrate personal, professional and corporate responsibility, showing respect for the views and needs of others and applying our shared determination to win.

Business Principles

• 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.

Integrity

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

Sustainability

2011 Financial Performance

Chart 37

Full-year 2011: Financial highlights

Record orders and revenues

Net income up $600 million vs. 2010

Cash from operations close to 2010

record

Cash return on invested capital

reflects initial impact of Baldor

acquisition

Outstanding results in a tough environment

2011 Change vs 2010

Orders 40,210 +18%1

(organic. +11%)

Revenues 37,990 +15%1

(organic +9%)

Operational EBITDA 6,014 +25%

Operational EBITDA % 15.8%

+0.5 percentage

points

Net income 3,168 +24%

EPS (basic) 1.38 +23%

Dividend per share (CHF)

0.65 +8%

Cash from operations 3,612 -14%

Cash return on invested

capital 14%

-7 percentage

points

Financial highlights US$ mill unless otherwise stated

Chart 38

55%

5%

40%

ABB’s 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

1.5 1.5

1.1

2009 2010 2011

Exceeded 2011 cost savings target Savings continued to outpace negative market impact

Savings by category, 2011 Percent

Operational

Excellence Sourcing

Global

footprint

$1.1 bn

Historical savings, 2009-2011 US$ bn

Chart 39

0.24

0.48 0.48 0.51

0.60 0.65

2006 2007 2008 2009 2010 2011

Ensuring steady cash flows for

investors over the cycle

2011 dividend up 8% vs. 2010

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

Dividend payout 2005-2011 CHF per share

A steadily rising, sustainable annual dividend over time

Dividend policy

1 as of 15 February 2012

Chart 40

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

Group targets1

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

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

7 – 10%

13 –19%

10 – 15%

Annual average >90%

>20% by 2015

1 See Appendix for definition of non-GAAP measures

Organic revenue

growth (CAGR2)

Operational EBITDA

margin corridor

Organic EPS growth

(CAGR2)

Free cash flow

conversion

Cash flow return on

invested capital

15%

15.8%

23%

82%

14%

2011

Perfomance2

2011-15

Targets2 Metric Comment

Chart 42

Appendix Definitions of non-GAAP measures

Chart 43

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 restructuring-

related 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 44

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 45

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

Telephone e-mail

Alanna Abrahamson

(Zurich) +41 43 317 3804 alanna.abrahamson@ch.abb.com

John Fox

(Zurich) +41 43 317 3812 john.fox@ch.abb.com

Tatyana Dubina

(Zurich) +41 43 317 3816 tatyana.dubina@ch.abb.com

Annatina Tunkelo

(Zurich) +41 43 317 3820 annatina.tunkelo@ch.abb.com