ABB: Solid progress on profitability

Zurich, Switzerland, July 21, 2016: Second-quarter highlights

  · Operational EBITA margin[1] (http://#_ftn1) up +100 basis points to 12.7%
  · All divisions in target margin corridor
  · White collar productivity program delivering results
  · Operational earnings per share1 up +18%[2] (http://#_ftn2)
  · Net Income $406 million impacted by $367 million[3] (http://#_ftn3) of
restructuring and restructuring-related expenses
  · Base orders steady [ (http://#_ftn4)1] ,[4] (http://#_ftn4), continued
market headwinds reflected in total orders -5%
  · Revenues -2% on lower short-cycle volumes and timing of order backlog
execution
  · Cash flow from operating activities up +80% at $1,082 million

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[1] (http://#_ftnref1) For a reconciliation of non-GAAP measures, see
“Supplemental Reconciliations and Definitions” in the attached Q2 2016 Financial
Information

[2] (http://#_ftnref2) EPS growth rates are computed using unrounded amounts.
Comparable operational earnings per share is in constant currency (2014 exchange
rates and not adjusted for changes in the business portfolio)

[3] (http://#_ftnref3) Restructuring and restructuring-related expenses include
the incremental implementation costs in relation to the white collar
productivity program

[4] (http://#_ftnref4) Growth rates for orders, revenues and order backlog are
on a comparable basis (local currency adjusted for acquisitions and
divestitures), previously referred to as ‘like-for-like’. US$ growth rates are
presented in Key Figures table
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