ABB’s top priority remains protecting the health of its shareholders and employees. Despite the recent relaxation of COVID-19 protection measures, the Board of Directors therefore resolved that shareholders again will only be able to exercise their shareholder rights via the independent proxy. As a result, it unfortunately will not be possible for shareholders to attend the 2022 Annual General Meeting in person.

ABB offers its shareholders the opportunity to address questions on agenda items to the Board of Directors in writing until March 14, 2022. The Board of Directors will respond to important questions on agenda items at the Annual General Meeting and address other questions to the extent possible on ABB’s website.

The Annual General Meeting will be broadcast live under www.abb.com/agm, starting at 10:00 am and will be conducted primarily in German. Translation into English will be available.

The voting results will be published on www.abb.com/agm shortly after the AGM.

The 2021 annual report is now available electronically at www.abb.com/groupreports. It provides comprehensive information on the company and its strategy, business, governance and financial performance.

Shareholders may request a printed copy of the annual report via this link. It will be distributed when it becomes available.

Additional information is available on ABB’s investor relations website site at https://global.abb/….

This is information that ABB is required to disclose in accordance with the Financial Instruments Trading Act (Sweden). The information was submitted for publication at 11.00 a.m. on January 25, 2022 (CET).

• Revenue growth target lifted to 4-7% through economic cycle
• Group Operational EBITA margin target sharpened to at least 15% as from 2023
• Sustainable transport supporting mid-term growth story
• CEO: “Demand has remained robust this far and we anticipate positive market momentum in 2022 but still have to manage supply chain disruptions”
• Swiss IPO for E-mobility planned for H1 2022
• CFO: “Continued strong cash flow generation to support organic growth and M&A”
• Introduction of ABB Circularity Framework as part of 2030 Sustainability Strategy

ABB will be hosting its Capital Markets Day today, December 7, starting 12.00 midday CET. At the event, CEO, Björn Rosengren, CFO, Timo Ihamuotila, as well as other members of the Executive Committee, will give an update on ABB’s ongoing transformation into a more profitable group with increased growth rates, its updated financial targets and its portfolio management efforts. Furthermore, they will give insights into its technologies and offerings that promote sustainable transport.

“Over the last 24 months, ABB has made solid progress in implementing its decentralized organization and improving quality of revenues. But we are still not where we want to be,” said CEO Rosengren. “Our technology leadership in electrification and automation, aligned with sustainability and the global megatrends, is at the core of ABB’s Purpose and gives us a competitive edge. Nevertheless, we need to cement a high performance and integrity culture in everything we do. Therefore, a sharpened focus on accountability, transparency and speed in 2022 will help drive growth, lift profitability and create further value for shareholders.”

Improving performance

Since the start of 2020, ABB has decentralized its organization to bring business decisions closer to the customer and successfully rolled out its new operating model called ABB Way, including the introduction of a scorecard-based performance management system. Furthermore, the Group has focused on a better quality of revenues by targeting high-growth segments (e.g. data centers, food and beverage, EV charging), growing the software portfolio, increasing revenues through distributors and enlarging the exposure to short-cycle products.

ABB has lifted its revenue growth target to 4-7% through the economic cycle, in constant currency, which is the total of 3-5% organic growth and 1-2% acquired growth. ABB also sharpened its operational EBITA margin target to be at least 15% as from 2023. These changes take into account the immediate adverse margin impacts due to the exit of the Dodge (MPT) and Turbocharging divisions. The Group had previously targeted 3-5% for revenue growth through the cycle and an operational EBITA margin in the upper half of a 13-16% range as from 2023.

CEO Rosengren added: “Order activity has remained robust this far and we anticipate a positive market momentum in the business year 2022. That said, we still have to manage the disruptions in the supply chain, which most likely will impact customer deliveries in the fourth quarter and at least the early part of next year.”

ABB is more optimistic about its revenue growth prospects not only because of its global leading businesses and its decentralized operating model but also because it will benefit from important secular trends. For example, energy efficiency is a key driver for decarbonizing the economy, including the industrial sector, while declining working age populations and rising labor costs are driving demand for automation in industrial and other sectors.

Approximately 60% of the Group’s divisions are currently in growth mode, which means they focus both on organic growth, as well as M&A opportunities that can fill technology gaps, focus on high-growth segments and open up new geographic markets.

ABB is expecting to make five or more small to mid-sized acquisitions per year. This will be funded through the Group’s “continued strong cash flow generation,” said CFO Timo Ihamuotila. He also reiterated ABB’s capital allocation priorities of funding organic growth, paying a rising sustainable dividend per share, making value-creating acquisitions and returning additional cash to shareholders via share buyback programs.

Portfolio management progress

Last year, ABB announced the exit of three divisions of which the Dodge (MPT) business has already been successfully sold in November. At today’s event, CEO Rosengren will give an update on the Group’s ongoing portfolio management efforts. This includes exiting the Turbocharging division (PA) through a spin-off to existing shareholders or a divestment and is targeted for summer 2022. The final decision will be based purely on which route creates the most value. ABB also plans to divest its Power Conversion (EL) division in the second half of 2022 as it continues to improve its business’ performance.

In addition, ABB is continuing to work towards an initial public offering of its E-mobility division (EL). The legal separation is expected to be completed during Q1 2022 and if market conditions remain favorable, a listing in Switzerland would be targeted for the first half of 2022. ABB would retain a majority shareholding in the future listed entity.

Sustainable transport

At today’s event, the four business area Presidents will present their product portfolios that enable sustainable transport, representing in total ~10% of Group order intake. ABB has been outperforming this market segment for the last five years, growing at an estimated 17% per annum and expects to continue to outgrow the market, which is estimated to show double-digit growth in the mid-term. Key product drivers will be EV charging for cars and busses, traction systems in railways, trucks and mines and green hydrogen technology in the marine sector.

One particular highlight is the growing demand for electric vehicles (EVs), whose sales are expected to exceed non-EV sales by 2035*, driven by the global electrification, decarbonization and digitalization trends. For example, the Robotics division is the second largest provider of technology for the assembling of the powertrain and battery, the car body, as well as the painting and sealing of EVs. Furthermore, ABB is the leading company for charging solutions (AC & DC) to passenger e-cars, e-buses and e-trucks, as well as rail infrastructure.

Sustainability strategy: Circularity framework rollout

At last year’s CMD, ABB unveiled its ambitious Group 2030 sustainability strategy based on three pillars of enabling a low-carbon society, preserving resources and promoting social progress. Significant steps have already been made, above all through ABB technology supporting customers in reducing their annual CO2 emissions by more than 100 megatons, which is the equivalent of 30 million combustion cars.

In 2022, ABB will introduce a circularity framework covering every stage of the product lifecycle in order to preserve resources. It will include stages: design and sourcing; production and packaging; optimizing the use phase (efficiency and lifetime); and the end-of-life phase (take back and recycling). The goal is to have 80% of ABB products, solutions and services covered by the circularity framework by 2030, with the company’s progress measured against a set of KPIs. Already today, several initiatives are in place. For example, close to 40% of ABB’s 400 sites across the world are sending zero waste to landfills.

*Source: Long-term Electric Vehicle Outlook 2021, BloombergNEF

Note to editors: The Capital Markets Day can be followed on the ABB Investor Relations website from midday to 5.00 pm CET.

Important notice about forward-looking information

This press release includes forward-looking information and statements which are based on current expectations, estimates and projections about the factors that may affect our future performance, including the economic conditions of the regions and industries that are major markets for ABB. These expectations, estimates and projections are generally identifiable by statements containing words such as “anticipates”, “expects,” “believes,” “estimates,” “plans”, “targets”, “aims” or similar expressions. However, there are many 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 press release and which could affect our ability to achieve any or all of our stated targets or anticipated transactions. Some important factors that could cause such differences include, among others, business risks associated with the COVID-19 pandemic, the volatile global economic environment and political conditions, costs associated with compliance activities, 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. The foregoing list of factors is not exclusive and undue reliance should not be placed upon any forward-looking statements, including projections, which speak only as of the date made.

The shareholders of ABB have approved all the proposals by the company’s Board of Directors at its 2021 Annual General Meeting. Due to the extraordinary circumstances and in line with applicable Swiss COVID-19 legislation, shareholders were not able to attend the meeting in person but could exercise their shareholder rights via the independent proxy who represented 59 percent of the issued share capital.

The shareholders supported the proposed distribution of a dividend of CHF 0.80 per share with 99.4 percent of the votes. The dividend payment in Switzerland is planned for March 31, 2021. The shareholders also approved the management report, the consolidated financial statements and the annual financial statements for 2020 with 99.4 percent of the votes.

Peter Voser was confirmed as Chairman of the company’s Board of Directors with 92.9 percent of the votes. With the exception of Matti Alahuhta, who as announced earlier did not stand for re-election, all other members of the Board were re-elected for another term: Jacob Wallenberg, Gunnar Brock, David Constable, Frederico Fleury Curado, Lars Förberg, Jennifer Xin-Zhe Li, Geraldine Matchett, David Meline and Satish Pai.

Furthermore, a capital reduction through the cancellation of shares repurchased under ABB’s share buyback program announced in July 2020 was supported with 98.4 percent. Shareholders also approved in a binding vote with 98.4 percent the maximum aggregate compensation of the Board of Directors for the 2021–2022 term of office and of the Executive Committee for the 2022 financial year with 92.7 percent. In addition, in a non-binding vote the shareholders voted in favor of the compensation report for 2020 with 90.2 percent of the votes.

The final results of the Annual General Meeting are available on www.abb.com. ABB will be reporting first quarter results on April 27, 2021.

The Nancy Grace Roman Space Telescope, NASA’s future space observatory, is due to launch in 2025 in search of other earth-like worlds. It carries two instruments: one to study the mystery of dark energy distribution in the cosmos; and the first dedicated exoplanet imaging camera in space, the CGI (CoronaGraph Imager). Within the CGI will be two high sensitivity cameras with electronic cores developed by ABB together with Nüvü.

Extra-solar planetary systems are extremely difficult to observe from large distances as planets are tremendously dimmer than their neighboring star and barely separated from one another. NASA’s CGI complex arrangement of optical components manage to block out the star light and send the residual light of the nearby planet to a highly sensitive camera. This is where the unique ABB/Nüvü imaging solution comes at play in revealing the unusual dot that was previously invisible.

“The Roman mission is a $3.2 billion project which should be 100 to 1000 times more powerful for imaging exo-planets than what is achieved on the ground today. We are very proud to be supplying such a critical component in this groundbreaking mission. It is an exciting project which will require our most advanced technological expertise to succeed,” stated Marc Corriveau, General Manager ABB Measurement & Analytics Canada.

“We are thankful to the Canadian Space Agency (CSA) Space Technology Development Program which enabled this revolutionary camera technology to be brought to a maturity level sufficient for its consideration by NASA‘s Jet Propulsion Laboratory,” said Olivier Daigle, Chief Technology Officer at Nüvü Camēras.

The ABB contract win follows a recent contract award from GHGSAT, a private satellite constellation operator, to supply additional optical sensors capable of imaging methane leaks on the ground in high definition. ABB optical equipment already in space cumulates more than 90 years of reliable operation. Since 2003, the SCISAT sensor has tracked long-term composition changes down to parts per trillion of more than 60 molecules and pollutants in the earth’s atmosphere.

Weather agencies around the world base their predictions on ABB technology at the heart of the latest generation of polar satellites of the United States’ National Oceanic and Atmospheric Administration (NOAA), which saves lives by improving the timeliness and accuracy of weather forecasts for up to seven days. ABB sensors are also flying onboard the Japanese GOSAT 1 and 2 satellites monitoring at high accuracy the steady rise of greenhouse gases around the world since 2009.

Nüvü Camēras is a world leader in ultra-sensitive imaging solutions since 2010. The Canadian based company designs and manufactures cameras and controllers for markets such as space exploration and surveillance, industrial quality control, physics and life science diagnostics. www.nuvucameras.com

– Orders $6.1 billion, -9%; comparable -8%1
– Revenues $6.6 billion, -4%; comparable -4%
– Income from operations $71 million; margin 1.1%
– Power Grids gain of $5.3 billion, pre-tax, recorded in discontinued operations
– Operational EBITA1 $787 million; margin1 12.0%
– Net income $4.5 billion, +780%, including Power Grids gain
– Basic EPS $2.14, +785%2; operational EPS1 $0.21, -36%
– Cash flow from operating activities $408 million, after $273 million negative impact from pensions; resilient cash delivery expected for the full year

“Third quarter revenues in all business areas were still dampened due to the impact of COVID-19, although a strong recovery in China and ongoing cost mitigation efforts supported a strong underlying performance. On the upside, the integration of GEIS and turnaround of Installation Products in Electrification is starting to bear fruit and Motion is performing robustly. Robotics and Industrial Automation, on the other hand, are taking more time to recover,” said Björn Rosengren, CEO of ABB. “We are pushing ahead with the decentralization of the group and the ongoing review of our portfolio, while carrying out our share buyback program as planned. We look forward to presenting further details on our strategic progress at our Capital Markets Day on November 19.”

Summary

Trading conditions during the third quarter remained challenging, influenced by the ongoing COVID-19 pandemic. Demand decreased year-on-year in all regions despite a strong rebound in China, which drove improved order development, particularly in Robotics. Short-cycle product businesses developed positively, but this was outweighed by lower large orders and the ongoing pull-back of service activities. Operating margins for the group were weighed by non-core charges and a loss in Industrial Automation in relation to the Kusile project in South Africa. Excluding these effects, margins showed good underlying resilience, reflecting sustained cost mitigation in all business areas, and strong progress in Electrification with the integration of GEIS and turnaround of Installation Products. Motion maintained its track record of solid performance.

Orders

Orders were 9 percent lower (8 percent comparable) in the quarter compared to the prior year period. Foreign exchange translation effects had a neutral impact and portfolio changes a net negative impact of 1 percent. The order backlog was $13,878 million at the end of the quarter.

Regional overview

– Orders from Europe were 9 percent lower (10 percent comparable) with mixed results at the country level. Sweden, Norway and the Netherlands showed solid growth, while orders declined in most other countries including Switzerland, the UK, Italy and Spain, when compared to the prior year period. In Germany, orders were 11 percent lower (14 percent comparable).
– Orders from the Americas were 14 percent lower (11 percent comparable), with most countries reporting lower order levels. In the US, orders declined by 13 percent (12 percent comparable).
– In Asia, Middle East and Africa (AMEA), orders were 1 percent lower (2 percent comparable). Orders were materially lower in India, Japan and Singapore, while order developments in South Korea were robust. China’s growth was strong, with orders up 7 percent (8 percent comparable).

End-market overview

– In discrete industries, orders were mixed. While the group benefited particularly from select order wins in the automotive and 3C sectors, demand from machine builders was weak. Some end-markets, such as food & beverage and logistics, grew strongly.
– Process and energy industry activities were materially lower in the quarter. Service activities were still constrained by travel restrictions, as well as customers delaying service spend. Capital expenditure projects continue to be deferred as most customers adjust to the weaker demand outlook.
– In transport & infrastructure, investments in rail, e-mobility, wind and data centers were healthy. Furthermore, orders were resilient in electrical distribution utilities. Marine activities declined steeply.
– Buildings were mixed, depending on geography.

Revenues

Revenues were 4 percent lower (4 percent comparable) year-on-year reflecting weakness across all four business areas. Foreign exchange translation effects had a net positive impact of 1 percent and portfolio changes a net negative impact of 1 percent. The book-to-bill ratio for the quarter was 0.93×1, compared to 0.97x in the prior year period.

Income from operations and operational EBITA

Income from operations was $71 million. The result for the quarter includes approximately $311 million goodwill impairment and $203 million of charges due to changes in obligations related to divested businesses.

In addition, the result reflects regular non-operational items including amounts related to timing differences on commodities and foreign exchange and expenses related to restructuring and integration efforts.

Operational EBITA1 was 2 percent lower (5 percent in local currencies), at $787 million. The operational EBITA1 margin of 12.0 percent expanded 30 basis points year-on-year. Margins were higher in Electrification, while all other businesses reported lower margins on a year-on-year basis, mainly reflecting lower volumes. Corporate and Other improved by $24 million compared to a year ago, due to the removal of stranded costs and lower ongoing corporate costs, partially offset by higher charges for non-core business activities.

The 12.0 percent operational EBITA margin includes a negative 80 basis points impact from the proposed settlement in South Africa with Eskom in relation to the Kusile project which resulted in a further project revaluation and, in addition, a negative 130 basis points impact from the aforementioned charges for non-core business activities.

Net income and basic earnings per share

Group net income attributable to ABB was $4,530 million. Net income benefited from the net income from discontinued operations of $5.0 billion, which included a $5.3 billion pre-tax book gain on the sale of Power Grids and income tax expenses related to the divestment. ABB also recorded non-operational pension costs of $343 million. Further details on this item follow below. Income tax expense was $164 million in continuing operations.

Basic EPS of $2.14 was up 785 percent on a year-on-year basis. Operational EPS of $0.211, down 36 percent2 compared to the prior year period.

Cash flow from operating activities

Cash flow from operating activities was $408 million including a $273 million negative impact from a cash outflow to facilitate the transfer of certain pension schemes, compared to $670 million in the third quarter of 2019. Cash flow benefited from favorable timing of tax payments and net working capital movements, which offset the effects of a reduction in business activities. As a percent of revenues, net working capital was 12.5 percent at quarter end.

Q3 2020 business area results

All commentary by business area relates to third quarter results on a year-on-year basis.

Electrification (EL)

– Short-cycle activities showed good resilience overall with healthy momentum in distribution utilities, data centers, food and beverage, wind, rail and e-mobility, offset by fewer large orders and weaker long-cycle demand. Buildings were mixed, depending on geography, and oil and gas activities declined materially. Demand from the Americas and AMEA showed continued COVID-19 impacts, offsetting the strong recovery in China.

– Resilient short-cycle business revenues were dampened by a more challenged project business, mainly in the US.
– Margin accretion of 210 basis points reflects solid operational performance. The third quarter result includes benefits of approximately 100 basis points from items that may not repeat. Good cost mitigation and supportive pricing actions helped offset the impact of lower volumes. The exit of the solar inverter business and improved performance from Installation Products and GEIS also supported margins.

Industrial Automation (IA)

– Industrial Automation results were impacted by the proposed settlement in South Africa with Eskom in relation to the Kusile project which resulted in a further project revaluation. This lowered both orders and revenues by 3 percent and operational EBITA margin by 400 basis points. A revaluation of the same project had a similar margin impact in the same period a year ago.
– Orders were otherwise materially impacted by the ongoing downturn in energy and marine, although the business area benefited from select large order wins and resilience in process industries, including Pulp & Paper. Orders were lower in all regions, with a severe drop in the Americas. Subsequent to the quarter, the business area secured a marine order in excess of $300 million.
– Revenue weakness reflects a substantial drop in book-and-bill activities, particularly mobility constrained services.
– Aside from the project impact in South Africa, margins improved sequentially as the business worked to fast-track cost savings, but remained impacted by lower volumes and unfavorable mix, with service activities still hampered by COVID-19 restrictions.

Motion (MO)

– Moderate growth in short-cycle products and strong rail demand was outweighed by broad-based weakness in project and services activities from the continued downturn across sectors such as oil & gas. Orders were up in the Americas but declined in AMEA and Europe.
– Revenue development reflects resilience in short-cycle business, as well as good execution on the order backlog.
– Margins held up well versus a tough comparable, benefiting from mix and cost mitigation efforts.

Robotics & Discrete Automation (RA)

– Orders were steady relative to an easier comparison period as a result of select robotics investments in the 3C and automotive sectors, mostly in China, while activity levels among machine builders was weak. Orders fell sharply in Europe and the Americas, mitigated by very strong growth in the AMEA region.
– Revenues declined on a year-on-year basis, but improved relative to the previous quarter, driven by catch-up in backlog execution in robotics for automotive and general industry, as COVID-19 restrictions lessened.
– Margins were materially lower relative to the prior year period but improved sequentially. Ongoing cost mitigation efforts continued to soften the impact of lower volumes and adverse mix.

Corporate and Other

– Corporate and Other Operational EBITA improved to -$152 million compared to a year ago. This reflects the elimination of stranded costs related to Power Grids’ sale and lower ongoing corporate costs.
– The non-core business incurred $88 million of losses versus $23 million in the prior year period.

Capital structure optimization

ABB divested 80.1 percent of its Power Grids business to Hitachi on July 1, 2020, recording a book gain of $5.3 billion in the quarter within net income from discontinued operations. As previously announced, ABB intends to return to shareholders net cash proceeds from the divestment of $7.6-7.8 billion. A buyback program of 10 percent5 of the company’s share capital commenced July 23 on a second trading line on the SIX Swiss Exchange.

In addition to the ongoing share buyback program, ABB intends to purchase 30-35 million treasury shares during the next 12 months mainly for use in connection with its employee share plans. The purchases will be made at the market price on the ordinary trading line on the SIX Swiss Exchange. ABB currently owns 89,710,731 treasury shares including shares repurchased through the buyback program.

In July, ABB repaid the remaining balance of the €2 billion short-term revolving credit facility put in place to strengthen liquidity in the face of COVID-19, and in early October, the company repaid a €1 billion bond upon maturity. In addition, ABB repaid $2.8 billion of commercial paper during the third quarter. In total, ABB’s gross debt has been reduced by approximately $4 billion over the last six months.

During the third quarter, as part of an ongoing review of its pension structures, certain of the group’s pension plan obligations were transferred to third party insurers, who have assumed the obligation to pay all pensions and benefits due to those plan members.

The transactions, which cover an estimated $1.3 billion of pension obligations that were underfunded by an estimated $450 million, are being facilitated by $320 million of cash contributions of which $273 million was paid in the third quarter by ABB, as well as the transfer of approximately $850 million of existing pension plan assets. As a result, ABB recorded a non-operational pension charge of approximately $380 million in its income statement. The transfer strengthens ABB’s financial profile and supports de-risking of its balance sheet for the long term.

During the fourth quarter 2020, ABB intends to continue its capital structure optimization program including further reviews of its debt, credit and pension structures. ABB currently expects these actions to create non-operational costs and expenses of approximately $330 million. Cash flow from operating activities is expected to be negatively impacted by $90 million. Besides the share buyback program, the company anticipates the capital structure optimization transactions of this phase to be largely complete by the end of this year.

“ABB takes a responsible approach to financial management, and our capital structure optimization program continues to deliver clear benefits for our stakeholders. The divestment of Power Grids has significantly strengthened our balance sheet, allowing us to improve returns to shareholders while continuing to deleverage and invest in long-term growth,” said Timo Ihamuotila, CFO of ABB.

Short-term outlook

The global economy is expected to contract in 2020 after a rapid deterioration in outlook driven by the COVID-19 pandemic. Despite an earlier recovery in China being followed by other large parts of the global economy, there remains considerable uncertainty around the continued pace of recovery. Many countries continue to face ongoing or renewed COVID-19 related restrictions, which could slow recovery, with anticipated long-term economic consequences.

The impact of COVID-19 continues to weigh on the short-term outlook across many end-markets, particularly in oil and gas, conventional power generation, automotive, marine and buildings. Some end markets such as electrical distribution, transport, data centers, consumer electronics and food and beverage continue to show relative resilience.

Against this background, ABB expects fourth quarter order and revenue growth rates to remain challenged on a year-on-year basis and revenue growth rates to decline sequentially. Operating margins are expected to be higher year-on-year including fewer negative impacts from non-recurring items, while weakening on a sequential basis including seasonal impacts. The company anticipates resilient cash delivery for the full year.

Transformation progress

Given the outlook and continued effectiveness of ABB’s overall mitigation efforts, remuneration reductions voluntarily taken by all members of the Board of Directors and Executive Committee, and by many senior employees since the onset of COVID-19, were concluded at the end of September.

COVID-19 aside, ABB continues to accelerate its transition to a fully decentralized operating model while conducting a review of the group’s portfolio. ABB remains on track for faster delivery of the approximately $500 million per annum net savings initiated through the ABB-OS simplification program, while shifting its focus to continuous improvement across its 18 divisions under the ABB Way. A new division-level scorecard system using standardized KPIs became operational in July, enabling a clear prioritization of improving profitability in underperforming divisions.

ABB’s Capital Markets Day on November 19 will provide more insight into the evolution of ABB’s portfolio and the company’s new way of working under the ABB Way, while providing a closer look at the strategies of its business areas and divisions.

More information

The Q3 2020 results press release and presentation slides are available on the ABB News Center at www.abb.com/news and on the Investor Relations homepage at www.abb.com/investorrelations. A conference call and webcast for analysts and investors is scheduled to begin today at 10:30 a.m. CEST (9:30 a.m. BST). To pre-register for the conference call or to join the webcast, please refer to the ABB website: www.abb.com/investorrelations. The recorded session will be available after the event on ABB’s website.

ABB (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 110,000 talented employees in over 100 countries.

Important notice about forward-looking information

This press release includes forward-looking information and statements as well as other statements concerning the outlook for our business, including those in the sections of this release titled “Capital structure optimization”, “Transformation progress” and “Short-term outlook”. 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. These expectations, estimates and projections are generally identifiable by statements containing words such as “anticipates”, “expects,” “believes,” “estimates,” “plans”, “targets” or similar expressions. However, there are many 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 press release 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 volatile global economic environment and political conditions, costs associated with compliance activities, 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.