Power Products Market Information

Customer Applications: Switch, protect, transform and measure power transmission and distribution for industries, utilities and power generation Market Dynamics: Emerging markets growing faster than mature markets driven by infrastructure development Upgrade replacement and focus on grid efficiency and reliability for mature markets Industrial markets growing earlier in the cycle Increased investment in renewables Pricing pressure from emerging competitors
End Markets *
10% 25%

Total Market Size 2010:~$55B

Main Channels *

40%
25%

60%

40%

Direct

Indirect
Utility Transmission Industries Utility Distribution Power Generation

ABB Group 04 November 2011

* As a percentage of total 2010 Divisional revenues; approximations

Power Products Overview

Portfolio overview: High and medium voltage switchgears Power, distribution and specialty transformers Products to measure and control power flow Products for power quality Service Business Characteristics: Critical technologies to ensure performance, efficiency and reliability of the power network

Major Competitors alphabetically

Transformers Alstom Hyundai Siemens Medium Voltage Products Schneider Siemens High Voltage Products Alstom Siemens

Competitive Advantage: Leading market positions Presence in more than 100 countries Technology Leadership Comprehensive portfolio Large global installed base Economies of Scale Geographically balanced and global production footprint/ R&D

ABB Group 04 November 2011

Power Products Financial Data

Figures in BUSD Orders Received Revenues Oper. EBITDA Oper. EBITDA Margin Employees 2010 Full year 9.8 10.2 1.9 18.2% ~ 32,500 Q3 2011 YTD 8.3 7.8 1.3
Products Mature Markets

2010 Orders Geographic Mix

Approximate

2010 Orders by Type

Approximate

Service

10%

50%

90%

17.0% ~ 34,500

Emerging Markets

50%

2010 Revenues by business

Approximate

MEA 2010 Revenues by region

9%

25%
26%

Europe
34%

50%

25%

Asia
31%

Transf ormers

High Voltage Products

Medium Voltage Products

Europe

Asia

Americas

MEA

ABB Group 04 November 2011

Power Products Secure market leadership, stay cost competitive

Compound annual growth rate, base year 2010, % change in local currencies

Target revenue growth vs market growth 2011-15

Execution plan for top-line growth

Power Products target revenues 5 7% Power Products market 4% Expand market coverage in key markets Strengthen channels to increase market penetration Enhance product portfolio to realize growth from megatrends Lead technological innovation Grow service business faster than core business

25
Op. EBITDA margin target corridors 2007-15
% revenues

Previous EBIT margin targets converted to operational EBITDA margins

20
19%

20%

Execution plan for profitability

Implement product cost reduction programs Further optimize global footprint Drive flawless operations & increase customer loyalty

15

14%
2007 2008 2009 2010 9m 11

2007-2011

14% 2011-2015 target

Focus on continuous productivity improvements Enhance application-specific offering for industries

10
ABB Group 04 November 2011

Power Systems Market Information

Customer Applications: Serves utilities, industrial and commercial customers for the generation, transmission and distribution of electricity Market Dynamics: Emerging market growth and need for industrialization Need for new power infrastructure in emerging markets: upgrade/ replacement in mature markets Renewable integration

Total Market Size 2010:~$80B

Main Channels *
15%

End Markets *
15% 25%

15% 45%
85%

EPCs

Direct

Generation

Distribution

Transmission

Industry

ABB Group 04 November 2011

* As a percentage of total 2010 Divisional revenues; approximations

Power Systems Overview

Portfolio overview: Power plant electrification and automation Bulk power transmission (HVDC, FACTS) Substation solutions Power distribution and network management Software solutions Services Business Characteristics: Turnkey solutions/ system integration Technology as a differentiator Domain expertise Global installed base Wide portfolio across the power value chain

Major Competitors alphabetically

Grid Systems Alstom Nexans Prysmian Siemens Network Substations Management Alstom Alstom GE Siemens Siemens Power Generation Alstom Emerson GE Siemens

Competitive Advantages: Technology and innovation Offering / breadth of portfolio Global presence Installed base

ABB Group 04 November 2011

Power Systems Financial Data

Figures in BUSD Orders Received Revenues Oper. EBITDA Oper. EBITDA Margin Employees 2010 Full year 7.9 6.8 0.3 4.5% ~ 17,300 Q3 2011 YTD 6.1 5.7 0.5 8.8% ~ 19,100
Emerging Markets

2010 Orders Geographic Mix

Approximate

2010 Orders by Type

Approximate

Service Mature Markets

15%

50%

Systems

85%

50%

2010 Revenues by business

Approximate

2010 Revenues by region

15%
28% 34%

20%

45%

20%

21%

17%

Substations Power Generation

ABB Group 04 November 2011

Grid Systems Network Management

Europe

Asia

Americas

MEA

Power Systems
Huge market opportunities, build on technology leadership
Compound annual growth rate, base year 2010, % change in local currencies

Target revenue growth vs market growth 2011-15

Execution plan for top-line growth

22 Power 20 Systems market 6% 18 16 Op. EBITDA14 margin target corridors 2007-15 12 11% 11% 10 8 7% 7% 6 2011-2015 target 4 2 2007-2011 0
1

Power Systems target revenues 10 14%1

Tap opportunities in large-scale renewables: hydro, wind, solar Build grid business around capacity, reinforcement and reliability Leverage business opportunities in automation, network control Expand software solutions business (OT/IT convergence) Drive service and consulting growth above division average

Excl. Ventyx and Mincom, CAGR 9-13%

% revenues

Previous EBIT margin targets converted to operational EBITDA margins

Execution plan for profitability

Further strengthen contract and risk management Drive operational excellence Sharper focus on supply management and footprint for cost competitiveness Differentiate on technology and innovation leadership

2007 2008 2009 2010 9m 11

ABB Group

04 November 2011

Discrete Automation and Motion Market Information

Customer Applications: Discrete automation: products and integrated automation solutions Industrial motion: movement and control for industrial applications Renewables: components and packages for wind power, solar inverters and solar tracker solutions Power control and quality: control of power supply and ensuring power quality for industry, utilities and infrastructure Transport: electrical components and packages for rolling stock and fixed rail applications, electrical vehicle charging infrastructure
Main Channels *
Distributors/ Wholesalers OEMs/ System Integrators 20% EPCs Direct ABB Internal
ABB Group 04 November 2011

Market Dynamics: Next level of productivity Automation penetration in emerging markets Infrastructure investments especially in emerging markets Energy efficiency Renewable growth

Total Market Size 2010:~$115B

End Markets *
15% 5% 14% 9% 14% Discrete Manuf acturing Generation Buildings Petrochemical Oil & Gas Minerals & Metals

10%

20%

5% 45%

5% 11% 20%

5%

Pulp and Paper Transport Water Other

* As a percentage of total 2010 Divisional revenues; approximations

Discrete Automation and Motion Overview ABB

Portfolio overview: A leading player in drives, motors, generators, converters/power electronics and robotics Portfolio completed by PLC, mechanical power transmission Products, packages, solutions and related services for industries, utilities, infrastructure and transport
Major Competitors alphabetically
Robotics Fanuc Kuka Mitsubishi Siemens Rockwell Yasukawa Industrial motion GE/Converteam Renewable Enercon GE/Converteam Power Control Transport & Quality Areva Alstom Eaton Emerson Friem GE/Converteam Siemens Schneider Bombardier Siemens

Business Characteristics: Standard and engineered products Application specific packages and solutions Strong service business Balanced across regions, industries and cycle Acquisition of Baldor has significantly improved position in North America

Competitive Advantage: Very broad portfolio of high quality products Ability to deliver application-specific product packages and solutions Technology leadership Global presence: sales, R&D/engineering, sourcing, manufacturing, service Early mover in emerging markets Large installed base and innovative service concepts

Hyundai
Rockwell Siemens Schneider Weg

PowerOne
Siemens SMA Vestas

ABB Group 04 November 2011

Discrete Automation and Motion Financial Data

Figures in BUSD Orders Received Revenues Oper. EBITDA Oper. EBITDA Margin Employees 2010 Full year 5.9 5.6 1.0 18.3% ~ 18,300 Q3 2011 YTD 7.3 6.4 1.3
80%
Products

2010 Orders Geographic Mix

Approximate

2010 Orders by Type

Approximate

20%

Service

15%

58%

Mature Markets

68%

85%

19.4%
42%

~ 27,200

Emerging Markets

32%

Exclud. Baldor

Includ. Baldor

Exclud. Baldor

Includ. Baldor

2010 Revenues by business

Approximate; Outercircle; Include. Baldor*

2010 Revenues by region

Outer circle; Include. Baldor*

13% 26% 17% 14% 17%

34% 26% 14%

3% 4% 38% 48%

33%

33% 47%
Low Voltage Drives Power Electronics & Medium Voltage Drives
ABB Group 04 November 2011

33%

Motors & Generators Robotics

Europe

Asia

Americas

MEA

* Estimated figures as if Baldor had been acquired by ABB in 2010

Discrete Automation and Motion Expand product and application offering

Compound annual growth rate, base year 2010, % change in local currencies

Target revenue growth vs market growth 2011-15

Discrete Automation target revenues 12 15%1

Execution plan for top-line growth

Expand discrete automation offering Industrial motion: Further expand presence & portfolio Drive renewables component & package growth Power electronics strength for new applications Continue growth in traction, early-mover EV infrastructure Further tap large installed base with advanced service concepts Grow application business based on broad portfolio

Discrete Automation market 7%

Excl. Baldor, CAGR 7-10%

Op. EBITDA margin target corridors 2007-15

% revenues

22 20 Previous EBIT margin targets 18 converted to operational EBITDA 16 margins 14 12 10 8

ABB Group 04 November 2011

21% 20%

Execution plan on op EBITDA margin

Drive pricing excellence Aim for world-class operations supporting growth and profitability Enhance target costing/design-to-cost Continue successful footprint and sourcing optimization

16% 15%
2007 2008 2009 2010 9m 11

2011-2015 target

2007-2011

Low Voltage Products Market Information

Customer Applications: Products and solutions to provide protection, control and measurement for LV electrical installations Intelligent building control and automation Market Dynamics: Automation and energy efficiency in industry and buildings Industrial production process Residential & commercial construction General GDP Development

Total Market Size 2010:~$60B

End Markets *
15% 5% 10% 5% 35%

30%

Utility

Construction

O&G

Metals & Mining

Rail

Other

ABB Group 04 November 2011

* As a percentage of total 2010 Divisional revenues; approximations

Low Voltage Products Overview

Portfolio overview: The Low Voltage Products offering covers a wide range of products and services including lowvoltage switchgear, breakers, switches, control products, DIN-rail components, enclosures and wiring accessories Business Characteristics: Manufacture standardized products, shipping over 1 million items per day

Major Competitors alphabetically

Wiring Accessories Legrand Leviton Schneider LV systems Eaton Enclosures & Rail Products Hager Legrand Control Products Eaton Phoenix Contact Siemens Schneider LV Breakers & Switches Eaton Mitsubishi Siemens Schneider

Competitive Advantages: Price/value: Economies of scale, smart design and global sourcing Global Market Presence: Market penetration and above average growth secured by global scope Segmentation approach to the market with products and solution by the application Excellence: Products recognized for quality and reliability based on operational excellence in production, distribution and response time

GE
Siemens Schneider

Rittal
Schneider

ABB Group 04 November 2011

Low Voltage Products Financial Data

Figures in BUSD Orders Received Revenues Oper. EBITDA Oper. EBITDA Margin Employees 2010 Full year 4.6 4.6 0.9 20.3% ~ 19,800 Q3 2011 YTD 4.2 4.0 0.8
Products Mature Markets

2010 Orders Geographic Mix

Approximate

2010 Orders by Type

Approximate

Service Systems

5% 15%

55% 80%

20.3% ~ 21,300

Emerging Markets

45%

2010 Revenues by region

MEA

8% 9%

Europe

26%

57%

Asia

Europe
ABB Group 04 November 2011

Asia

Americas

MEA

Low Voltage Products Expand market access, broaden product scope

Compound annual growth rate, base year 2010, % change in local currencies

Target revenue growth vs market growth 2011-15

Low Voltage target revenues 8 11% Low Voltage market 4%

Execution plan on revenues

Market access in key geographies (N America and BRIC) Application focus (e.g., buildings, renewables, data centers) Broaden product scope (e.g., security, lifestyle, energy efficiency) Develop additional channels to market (South Asia, Middle East & South America) Expand service offering

Op. EBITDA margin target corridors 2007-15

% revenues

Previous EBIT margin targets converted to operational EBITDA margins

ABB Group 04 November 2011

22 20 18 16 14 12 10

22%

Execution plan on op EBITDA margin

19% Operations and logistics excellence Products tailored for emerging markets (e.g., mid segment) 16% 15%
2007 2008 2009 2010 9m 11

Technology leadership in switching, current interruption and power distribution Price management

2011-2015 target

2007-2011

Process Automation Market Information

Customer Applications: Process control, safety, energy and information management Plant maintenance and performance enhancement Market Dynamics: Commodity prices and process industry capex Need for industrial efficiency and productivity improvements Total Market Size 2010:~$110B

Main Channels *
15%

End Markets *
5% 5%

20%
55% 30%

35%

10% 25%
Direct OEM/ System In tegrators EPCs

Oil &Gas Marine

Minerals/ Metals Pulp & Paper Utility + Water Other

ABB Group 04 November 2011

* As a percentage of total 2010 Divisional revenues; approximations

Process Automation Overview

Portfolio overview: Engineered solutions & products for Process control Safety Instrumentation Plant electrification Energy management Industry specific control and measurement products Life-time service, maintenance and Full Service
Major Competitors alphabetically
Oil, Gas & Petrochemicals Emerson Honeywell Invensys Rockwell Yokogawa Metals & Minerals FLS Emerson Siemens SMS TMEIC Marine Converteam Siemens Wartsilla Pulp & Paper Andritz Metso Siemens Turbocharging MAN Mitsubishi

Business Characteristics: Industry-specific system and software engineering automation for increased customer productivity, profitability, safety and environmental compliance

Competitive Advantage: : Technology leadership: System 800xA control platform offers state of the art functionality, allows integration of existing control systems, reduces development costs for product variants Economies of scope : Broad industrial and geographic presence, industry expertise for tailor made solutions in many sectors Captive service business : Largest installed base >$30Bn

ABB Group 04 November 2011

Process Automation Financial Data

Figures in BUSD Orders Received Revenues Oper. EBITDA Oper. EBITDA Margin Employees 2010 Full year 7.4 7.4 0.9 12.5% ~ 26,700 Q3 2011 YTD 6.8 6.0 0.8 12.6% ~ 28,400
Emerging Markets

2010 Orders Geographic Mix

Approximate

2010 Orders by Type

Approximate

Products Mature Markets

20%

55%
Systems

45%

45%
Service

35%

2010 Revenues by business

Approximate

MEA2010 Revenues by region

Oil, Gas & Petrochemicals Minerals/ Metals Pulp & Paper Marine Measurement Products Turbocharging Performance Services

10% 25% 15%

15%

Europe
39% 19%

15% 10% 5%

20%

Asia

27%

Europe

Asia

Americas

MEA

ABB Group 04 November 2011

Process Automation Enhance offering mix, increase relevance in oil and gas
Compound annual growth rate, base year 2010, % change in local currencies

Target revenue growth vs market growth 2011-15

Execution plan on revenues
Process Automation target revenues 6 9% Consolidate lead in process control, #1 in all focus industries Broaden portfolio and increase relevance to customers in oil&gas Increase market share in measurement and control products Tap service in large and growing installed base Expand domain-specific products to differentiate ABBs offering Capture new business by offering solutions based on energy audits

22 20 Op. EBITDA 18 margin target corridors 2007-15 16 15% 14% 14 12 11% 10% 10 2011-2015 target 8 6 2007-2011 4 2
% revenues Previous EBIT margin targets converted to operational EBITDA margins
2007 2008 2009 2010 9m 11
ABB Group 04 November 2011

Process Automation market 6%

Execution plan on op EBITDA margin

Focus on cost-competitive products, improve LCC footprint Improve business models (e.g. mid-segment, software pricing) Flawless project execution Continue cost-out program