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ABB Capital Markets Day 2025 CAPIT AL MARKETS DA Y 2025 ABB Group M O R T E N W I E R O D , C E O | T I M O I H A M U O T I L A , C F O
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— Slide 2ABB Capital Markets Day 2025 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 global economic conditions, and 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,” “guidance”, “plans,” “outlook,” “on track,” “framework” 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 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 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. This presentation contains alternative performance measures. Definitions of these measures and reconciliations between these measures and their US GAAP counterparts can be found in “Supplemental Reconciliations and Definitions” within our Q3 2025 financial information booklet and under the Additional material section on our website at https://global.abb/group/en/investors/strat egy-events
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HIGH SAY/DO RATIO DELIVERING ON HIGHER TARGETS ABB Way operating model • Accountability, Transparency, Speed • High performance & High integrity • Performance management system • Continuous improvements Strong market exposure Active portfolio management EPS growth excl. divisional exits Acquired growth Op. EBITA margin ROCE FCF conversion 1-2% avg through cycle 0.6% avg 2019 – 20252 16-19%18.8% 2025 Q3 LTM >18%23.3% Q3 2025 at least high single digit avg through cycle 17% avg 2022 – 20251 mgmt estimate ∼100%101% Target Comparable revenue growth 5-7% avg through cycle 6% avg 2019 – 20251 1. 2025 Q3 LTM 2. Per target definition Actual EPS growth basic 8% avg 2022 – 20251
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— Slide 4 * Q3 LTM achieving new ALL -TIME -HIGHS Basic EPS continuing operations Free Cash Flow ROCE 0 1 2 3 2019 2020 2021 2022 2023 2024 2025* USD 0% 5% 10% 15% 20% 0 2’000 4’000 6’000 8’000 2019 2020 2021 2022 2023 2024 2025* Op. EBITA Op. EBITA margin 20’000 23’000 26’000 29’000 32’000 35’000 38’000 2019 2020 2021 2022 2023 2024 2025* 20’000 23’000 26’000 29’000 32’000 35’000 2019 2020 2021 2022 2023 2024 2025* Orders Revenues Op. EBITA & Margin USD, million USD, million USD, million USD, million ABB moving in the right direction 0 1’000 2’000 3’000 4’000 5’000 2022 2023 2024 2025* 10% 12% 14% 16% 18% 20% 22% 24% 2022 2023 2024 2025*
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80 21.9%421.3%21.0%17.8% 1. Management estimate based on 12m rolling as per Q2 2025 2. Part of portfolio assessed through Circularity Approach 3. The above disclosure relates to countries where policies legally permit and to the extent that it does not conflict with any applicable local laws, where ABB operates 4. As per YTD end of Q3 2025 2030E N A B L I N G A L O W- C A R B O N S O C I E T Y Reduce own scope 1 and 2 CO₂e emissions by 80% by 2030 79.8%1 80%From 2019 Ambition to avoid emissions throughout lifetime of products sold between 2022 and 2030 From 2022 66Mt65Mt 74Mt 600Mt Reduce scope 3 CO₂e emissions by 25% by 2030 8%From 2022 25% 202320212020 2022 2024 P R E S E R V I N G R E S O U R C E S Cover at least 80% of ABB’s portfolio of products and solutions with our Circularity Approach by 2030 In 2024 41%2 80% Send zero waste to landfill while reducing waste generation by 2030 5.8%8.4% 7.0% 6.4% 6.3% 0From 2019 P R O M O T I N G S O C I A L P R O G R E S S Zero harm to our people and contractors – we aim for a gradual reduction in lost time from incidents From 2019 00.150.140.15 0.14 0.13 Increase proportion of women in senior management roles to 25% by 20303 From 2019 25%16.3%13.5% Achieve a top-tier employee engagement score 7875 74 76 77From 2019 On track towards 2030 sustainability targets and ambitions 2025 0.144
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CHANGE IN OPERATIONAL CUL TURE • accountability • transparency • speed Strong improvement in Employee Engagement Score Morten Wierod CEO “ I am proud of WHAT the ABB team has accomplished, and HOW the team stepped up to the challenge of significant change in our ways of working. We have come a long way and can still do even better. 60% 65% 70% 75% 80% 85% 90% 70 72 74 76 78 80 82 2019 2020 2021 2022 2023 2024 2025 Employee Engagement Score (Left axis) Employee Response Rate (Right axis)
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WE CAN DO BETTER • The beauty of mix – stricter focus on performance delivery by mandate • Next wave in the ABB Way operating model – increasing operational accountability and transparency • The power of ABB – three Business Areas with sales and technology synergies • Operational leverage on expected growth in robust external markets Morten Wierod CEO “ We have come a long way in improving our operational performance for growth, profitability and returns. I strongly believe we can still do even better. • Sustained focus on continuous improvements and annual 5% internal gross profit productivity target • M&A bolt-ons part of ABB Way performance culture
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— © 2025 ABB. All rights reserved. Slide 8 Stricter focus on delivery by mandate “Beauty of mix” to further improve group performance 1. Q3 2025 LTM, excl. ABB Robotics division 2. % not adding to 100 due to no mandate allocated to E-mobility Changing internal perception. Growth and Profitability equally valuable to optimize Group performance More transparent mandate framework. Always growth AND profitability improvement but at different rates Even sharper link between weighting of remuneration KPIs and strategic mandate GROWTHPROFIT ABILITYST ABILITY 79%18%2% of divisional revenues1, 2of divisional revenues1, 2of divisional revenues1, 2 >20% 15% - 20% 10% - 15% <10% All Electrification divisions in growth mode Mixed mandates in Motion and Automation Share of revenues by Op. EBITA margin1 range Machine Automation ABB Way operating model pushed further down in the organization with mandates by Business Line Margin ranges
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NEXT WAVE • Reached full implementation of ABB Way performance accountability & strategic mandate for Business Lines after summer 2025 • ∼75 Business Lines • Majority of Divisions has a mix of Business Line mandates; majority in growth some on profitability and minority in stability • Business Line performance management owned by Business Areas & Divisions on the journey of ABB Way operating model Decentralized business model pushed deeper in the organization for further increased Accountability, Transparency and Speed Corporate Divisions Business Areas Business Lines
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— © 2025 ABB. All rights reserved. Slide 10 Make M&A part of our ABB Way performance culture Strategic fit and future value creation is key Scoring system with ∼20 KPIs Aiming for: • Strong gross margin potential • Solid track record for comparable growth • No EPC business • Filling technology and geographical gaps • Economies of scale • Adjacent markets and segments Small- to mid-size M&A led by Divisions Large deals led by Corporate and Business Areas All M&A to be in line with: • ABB Purpose • ABB Way operating model • Embedded software and AI • Maintain strong investment grade rating Bolt-on deals to add revenues of 1%-2%, average through cycle Make M&A part of the ABB Way performance culture • Lead large deals or adding new Division • Support due diligence • Lead bolt-on deals within Divisions • Build and maintain bolt-on deal pipeline • Lead due diligence and transactions for bolt-on deals • Responsible for integration Corporate / Business Area Division →
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— © 2025 ABB. All rights reserved. Slide 11 The power of ABB Three Business Areas with sales and technology synergies STAND -OUT VALUE PROPOSITION OF COMBINED ELECTRIFICATION & AUTOMATION Even Better Together • Access ABB’s full offering directly through each Business Area and/or one point of contact through project management • ∼$900 million of pull-through revenues • Technology sharing between business areas, e.g. o Electrification’s SACE Air Circuit Breaker in Motion’s market leading drives o Motion’s electrical motor in Azipods from Automation Smart People Collaborate • Utilize full ABB scope to solve customers’ problem • Account management with one lead point of contact, when customer wants it • Revenue split by Business Area contribution to the specific contract • Scale benefits for parts of sourcing • Selected R&D projects • Internal collaboration by improved access to ”communities of practice” CUSTOMERS Local-for-Local* • Legacy of manufacturing close to customers • Investing to further increase local-for-local set-up; e.g. US, India Europe ~95% rest from ~3% AMEA ~2% Americas China ~85% rest from ~12% Europe ~1% Americas ~1% rest of AMEA USA ~75-80% rest from ~15% Europe ~5-10% rest of Amcas ~2% AMEA * Management estimates and % based on 2024 3rd party revenues ∼65% E L E C T R I F I C A T I O N ∼35% A U T O M A T I O NABB Business Area A U T O M A T I O N ( F O R M E R P R O C E S S A U T O M A T I O N ) Business Area E L E C T R I F I C A T I O N Business Area M O T I O N
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The power of ABB combined offering creates customer value “ABB’s early involvement and ability to combine global expertise with a strong local presence were key factors in our decision. With the new technology, we can achieve lower costs, shorter lead times and a better ability to handle variations in demand. ” CARL ORRLING, Chief Technology Officer and Head of Transformation Office, SSAB ~ $ 7 0 M P R O J E C T D I R E C T Fossil-free mini mill construction for SSAB steel in Luleå, Sweden A B B S O L U T I O N S D I R E C T • ELECTRIFICATION – full electrical design services, supply of MV & LV equipment, UPS Systems, DC distribution and backup power systems • AUTOMATION – automation power control & monitoring systems I N D I R E C T • MOTION – MV drives, HV motors, Advanced Auxiliary Controls C U S T O M E R O U T C O M E S • Contributing to reducing Sweden’s CO2 emissions by 7% • 90% less emissions vs current operations • Lower costs • Production stability
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— Slide 13ABB Capital Markets Day 2025 ABB HELPS INDUSTRIES OUTRUN LEANER AND CLEANER ABB customer value proposition built on: • Leading electrical and automation engineering know-how • Embedded software • Applied AI in products and solutions • Know the industry at least as well as customer • 140 years of legacy • Strong distribution network • Local-for-local footprint Technology leadership Domain expertise
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— Slide 14ABB Capital Markets Day 2025 Sustainability is our business... LEANER Our leading automation technologies are helping to improve the productivity and efficiency of every industry's critical day-to-day operations. CLEANER Our leading electrification technologies are helping to decarbonize the world's most essential industries. We help industries outrun leaner & cleaner Corporate Divisions Sustainability Council Business Lines Sustainability is part of ABB Way operating model ABB Climate Transition Plan ...and fully integrated in our ways of working • Reflects how ABB plans to achieve its emission reduction targets leveraging our long-term performance planning process • Maps transition risks and opportunities to decarbonization measures that ABB takes • Identifies business opportunities from the growing demand for offerings for the energy transition and cost savings from resource-efficient practices → → → → 1. Source: International Energy Agency; 2. Management estimate based on FY 2024 Revenues. Due to rounding, numbers presented may not add to 100. • Governance at Board and Corporate level • Business accountable for performance • Part of quarterly/ annual performance management reviews and executive compensation • MSCI AAA • Most Sustainable Companies by TIME Magazine and Statista • Top 25 Europe's Climate Leaders by FT
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— Slide 15ABB Capital Markets Day 2025 Electricity The power of the future Source: IEA World Energy Outlook 2024 1. Stated Policies Scenario 2. exajoules 3. Announced Pledges Scenario 4. Emerging Markets and Developing Economies — Global electricity demand outpacing energy demand (CAGR in %, IEA CPS) 1.3% 3.0% 1.3% 3.0% 2015 - 2024 2024 - 2035 Energy demand Electricity demand Global electricity demand in selected industries (EJ2, IEA CPS) 49 40 2 95 57 12 Buildings Industry Transport +95% +42% +521% 2024 2050 Share of electricity in final energy consumption across regions (%, IEA CPS) Advanced economies Other EMDE China India 10% 15% 20% 25% 30% 35% 40% 45% 2010 2020 2030 2040 2050
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— Slide 16ABB Capital Markets Day 2025 Source: IEA World Energy Outlook 2025, Current Policies Scenario Global electricity generation – different data sources point in the same direction ELECTRICITY WE NEED MORE ENERGY EXPANSION Regardless of the energy source the demand for electricity is expected to double by 2050 WE NEED OPTIMIZA TION ENERGY EFFICIENCY Optimize consumption of electricity already available WE NEED CLEAN ENERGY TRANSITION The world has not yet started to decarbonize. Similar amount of electricity generated through fossil sources as in 2018/19 2024 0 10’000 20’000 30’000 40’000 50’000 60’000 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 TWh Offshore wind Onshore wind Small-scale PV Utility-scale PV Geothermal Hydro Bioenergy Other Hydrogen Small modular nuclear Nuclear Oil Gas peaker with CCS Gas peaker CCGT with CCS CCGT Coal with CCS Coal Source: Bloomberg New Energy Outlook CCS: Carbon Capture Storage; CCGT: Combined Cycle Gas Turbine 2010 2015 2023 2024 2035 2040 2045 2050 21’431 24’212 29’851 31’109 44’961 50’325 55’271 59’248 Wind + Solar PV Hydro Bioenergy Other renewables and H2 Nuclear Fossil
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— Slide 17ABB Capital Markets Day 2025 55 GW data center capacity 2023 2030 220 GW data center capacity 200 MW facility considered normal today = X 30 X 4 1 MW AI GPU peak rack density in 2030 1.5 GW AI factories normal in 2030 X 1 US nuclear plant = X 1,000 Future data centers at 4X POWER DEMAND 30 kW peak rack density in current architectures Source: McKinsey, Bank of America, Morgan Stanley, Jefferies, J.P. Morgan
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— Slide 18ABB Capital Markets Day 2025 Strong data center build-up supports demand for electrical infrastructure in adjacent segments • Data centers expected to have an annual need of 1 million metric tons of copper by 2030 • Data centers anticipated to represent ∼2% of global copper demand by 2030 MET ALS AND MINING SEMI- CONDUCTORS • 12.8 million AI chips from 1.1 million wafers expected in 2026 • AI growth imply need for >30% additional wafer manufacturing per year equal to 4x current capacity in 2030 UTILITIES • Data centers’ consumption of electricity in the US is expected to rise from 4% in 2023 to 12% by 2030…and globally from 1.5% to 3% • Major grid investments and innovative technologies required for power availability and fast connections Source: IEA, Bloomberg, McKinsey, Morgan Stanley, JP Morgan
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— © 2025 ABB. All rights reserved. Slide 19 ABB positioned in the centre of robust markets Help customers optimize, electrify and decarbonize Mid-term: 1. Management estimate based on FY 2024 Revenues. Due to rounding, numbers presented may not add to 100. 2. Source: International Energy Agency >10% 3% - 5% 18% Buildings 8% Buildings 54% Industry 13% Utilities GHG Emissions by sector2 40% Power Mid-term market growth drivers Power • Electricity largest energy source in future • Aging grid and integration of renewables • Grid flexibility and automation Industry • Decarbonization, energy efficiency and energy security in industry • Increased electrification and automation of heavy industries • AI and higher power density in data centers Transport & Infrastructure • Electrification and automation of transport and infrastructure Buildings • Urbanization drives need for building solutions • Optimization of energy usage • Electrification and automation of buildings Conventional Generation Distribution Renewables Marine & Ports Rail Data Centers Oil & Gas Mining & Metals Water & Wastewater Food & Beverage HVACR Buildings % of ABB Revenues by sector1 25% Industry 13% Transport & Infrastructure 22% Transport — 5% - 10% End-market split below is not identical with ABB Factsheet and covers ∼75% of Group revenues Infrastructure
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ABB Way performance culture and continuous improvements Strong market exposure and technology leader in electrification and automation ABB – the best is yet to come
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— Slide 21ABB Capital Markets Day 2025 Raising margin and return targets ABB excluding Robotics division Growth through economic cycle Comparable 5% - 7% avg Excluding FX impacts, acquisitions and divestments Acquired 1% - 2% avg Acquired growth target is the net of acquisitions and divestments; excluding deals of full Business Area or Division or divestments larger than 3% of Group revenues EPS growth basic, avg through economic cycle At least high single digit % Op. EBITA margin annual 18% - 22% Business Area target ranges Electrification 22% - 26% Motion 18% - 22% Automation 14% - 18% U P D A T E D ROCE annual >20% U P D A T E D FCF conversion to net income annual >95% U P D A T E D
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— Slide 22ABB Capital Markets Day 2025 → Higher long-term Operational EBITA margin range 10% 16% 22% 2019 2020 2021 2022 2023 2024 Q3 2025 LTM 22% target range high 18% target range low Op. EBITA margin reshaped portfolio1 Op. EBITA margin as reported • Robotics dilutive at ~45 bps • E-mobility dilutive at ~80 bps Upgraded target range leaves headroom for further operational improvements Long-term corporate costs run-rate to remain at slimmed ∼$300 million (excl. stranded costs) Target is based on a bottom-up approach and future1 group structure Q3 2025 L TM — 1. Excl. Robotics division
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— Slide 23ABB Capital Markets Day 2025 Strategic mandates drive operational focus 1. Management estimates excl. impacts from FX and M&A. High Power division historical financials calculated as weighted average of former Large Motors & Generators and System Drives divisions. Optimize mix through stricter focus on performance delivery by mandate Growth mandate 2025 divisional mandates Profitability mandate Stability mandate • Implemented a transparent KPI framework for each strategic mandate with closer alignment to remuneration • GROWTH and PROFITABILITY mandates – both growth AND higher profitability, but at different improvement rates • Mandates by Business Line to increase operational accountability • Mandates continuously reviewed, valid for at least 12 months RA MO MO EL EL PA MO PA EL PA MO MO EL MO EL PA RA EL PA MO MO EL MO MO PA MO PA PA EL EL MO EL 2023 to Q3 2025 LTM average divisional1 revenue growth 2023 to Q3 2025 LTM divisional Op. EBITA margin delta
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— Slide 24ABB Capital Markets Day 2025 Quality of revenues – diversified and well balanced % 2020 2021 2022 2023 2024 Q3 2025 LTMShort-cycle growth % Project and systems-related business growth % 2022 Q3 2025 LTM Short-cycle Service Long-cycle • Short-cycle product businesses account for ~50% of group revenues1 • Project and systems-related2 orders balanced softness in short-cycle • Project and systems-related order backlog provides revenue visibility • Reduced gross margin gap between project and systems-related vs group • Lower earnings volatility from mix impact on improved profitability in project and systems-related businesses 1. Q3 2025 LTM 2. Project and systems-related businesses include the following divisions: Distribution Solutions, Electrification Service, High Power, Motion Service, Traction, Energy Industries, Process Industries as well as Marine and Ports %
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— Slide 25ABB Capital Markets Day 2025 Quality of revenues – order backlog supports future gross margin 2019 2022 Q3 2025 Long-cycle Service Short-cycle Mix in order backlog has normalized Share of short-cycle mix in order backlog increased to unusually high levels during period of supply chain constraints % • Better price management • Improved project selectivity with higher share of ABB content • Stringent project execution offers additional upside Increased gross margin1 in order backlog despite normalized composition Higher order backlog gross margin supported by higher profitability in project and systems-related businesses USD, billions 20% 25% 30% 10 15 20 25 30 2019 2020 2021 2022 2023 2024 Q3 2025 Order backlog ($bn) Order backlog gross margin — 1. Management estimate
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— Slide 26ABB Capital Markets Day 2025 A more productive ABB 1. Gross profit productivity defined as YoY change in gross profit LTM / average quarterly workforce 2. Revenues LTM / workforce end of quarter; Gross profit LTM / workforce end of quarter Continued strong focus on gross profit productivity • Operating leverage, scale and more efficient operations • Optimizing mix through strategic mandates • Disciplined hiring • Improving business analysis through ABB Way Transformation Program for higher transparency on gross profit components Gross profit productivity1 above long-term target of 5% Increasing revenues and gross profit2 per workforce 0% 5% 10% 15% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 60 80 100 120 200 250 300 2020 2021 2022 2023 2024 2025 Revenues per workforce (Left axis) Gross profit per workforce (Right axis) Long-term target USD, thousands USD, thousands
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— Slide 27ABB Capital Markets Day 2025 Improving speed and data quality in business analysis to support operational improvements • Faster speed in analysis and decision making with live access to transactional data • Higher quality of data – cleansed and common input directives • Increased transparency on costs and revenues • Improved insights in trade net working capital management and efficiency • Common platform for more efficient and less manual finance processes • Easier integration of acquisitions in IT system landscape — Slide 27 No material ABB Way Transformation costs after 2025 Expect delta of ~100bps1 between Op. EBITA and EBITA Onwards 1. Excl. transaction and separation costs for transformational divestments of full Division or larger than 3% of Group revenues, such as Robotics sale Existing ERP structure Central finance (CFIN) data source Analytics cloud Transactional data is pulled to CFIN data source from ERPs Data is cleansed, processed and harmonized Data for business analysis Scope of ABB Way Finance Transformation Program ABB Capital Markets Day 2025
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— Slide 28ABB Capital Markets Day 2025 Want to consistently be a +40% gross margin company 1. Gross margin LTM 2. Q3 2025 LTM vs. FY-22 30 35 40 45 2023 2024 2025 S T R O N G I N C R E A S E I N G R O S S M A R G I N1 +40% gross margin +560 bps2 Structurally higher order backlog margin Mix optimization through strategic mandates % High gross profit productivity Improved data analysis after ABB Way Transformation Program
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— Slide 29ABB Capital Markets Day 2025 Well invested 1. Non-order related R&D excluding completed divisional exits 2. Q3 2025 LTM R&D & venture investments as % of revenues Venture investments ($ mn $) Non-order related R&D ($ mn1) 3.0% 3.5% 4.0% 4.5% 5.0% 700 900 1’100 1’300 1’500 R&D investments as % of revenues 0 200 400 600 800 1’000 2018 2019 2020 2021 2022 2023 2024 2025 Capex YTD ($ mn) Q3 2025 YTD + Capex guidance Non-order related R&D / revenues, % Capex / revenues, % Increasing R&D spend towards target range of 4.5% - 5% Absolute Capex spend to remain fairly stable at high level going forward Lowest Highest 0.4% 5.6%1.6% 9.5% Lowest Highest Investing needs differ across divisions…2 2022 Q3 2025 LTM Future 2023 2024 R&D and Capex decisions close to customers • Divisions responsible for R&D and Capex • Move R&D spend towards range of 4.5% - 5% of revenues • Q3 2025 LTM R&D spend at ~4.1% of revenues excl. Robotics division Adding value through combination of hardware with software • >50% of R&D employees are software engineers • Software often main differentiator for value proposition Increasing performance through automation in operations • Higher factory output not only about factory size in m2, but also about investments in productivity • Significant productivity differences between factories, driven by automation Investing to be market leading Embedded software strategy Capex and productivity 2025 Capex guidance excl. Robotics division at ~$800 mn
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ABB Capital Markets Day 2025 6% 12% 18% 2019 2020 2021 2022 2023 2024 Q3 2025 LTM 16% 19% 22% 2019 2020 2021 2022 2023 2024 Q3 2025 LTM 12% 19% 26% 2019 2020 2021 2022 2023 2024 Q3 2025 LTM 26% target range high 22% target range low Op. EBITA margin Op. EBITA margin reshaped portfolio1 Op. EBITA margin as reported, PA Op. EBITA margin 18% target range high 22% target range high 18% target range low 1. Historical Process Automation business area adjusted to include financial results of the Machine Automation division. Business Areas have achieved margin improvements of 300 – 990bps Further margin upside in all Business Areas All Business Areas’ margin ranges are fit for ABB Group Slide 30 14% target range low ELECTRIFICATION MOTION AUTOMATION
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ABB Capital Markets Day 2025 0% 50% 100% 150% 200% 250% 0 1’000 2’000 3’000 4’000 5’000 2019 2020 2021 2022 2023 2024 Q3 2025 LTM Higher and less volatile Free Cash Flow 2025 FCF expected to improve from 2024 annual level Free Cash Flow from continuing ops. ($ mn) FCF conversion to net income Q3 2025 LTM FCF excl. Robotics division decreases FCF by ~$0.2 bn Stronger and more resilient Free Cash Flow margin 11% – 13% in recent years 0% 5% 10% 15% 2019 2020 2021 2022 2023 2024 Q3 2025 LTM Free Cash Flow margin Q3 2025 LTM Robotics division dilutive at ~20 bps Strong cash flow delivery in a growth environment Deeper implementation of ABB Way in divisions to further improve operational performance Optimizing “beauty of mix” for profitable growth and performance improvements Continued strong focus on trade net working capital and improving transparency after ABB Way Transformation Program Targeted investments and net working capital to support growth Target >95% Free Cash Flow conversion to net income → → → → ← ← ← ←
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— Slide 32ABB Capital Markets Day 2025 Best-in-class ROCE Upgraded target to >20%, including ambition to accelerate M&A 1. Alternative performance measure, details in Supplementary Reconciliations and Definitions. Efficient capital managementROCE1 at 23.3% ROCE1 on Net operating assets ∼55% 16.1 20.0 22.4 23.3 8 10 12 14 16 18 20 22 24 2022 2023 2024 Q3 2025 LTM ROCEExcluding impact of PG JV ownership interest Upgraded target range >20% End Q3 2025 LTM Robotics division dilutive at ~190 bps 36.8 49.7 53.5 53.6 10 15 20 25 30 35 40 45 50 55 2022 2023 2024 Q3 2025 LTM End Q3 2025 LTM Robotics division dilutive at ~170 bps Increasing ROCE driven by margin improvement 25 30 35 5 10 15 20 2023 2024 2025 Avg. Trade NWC % of revenues (Left axis) Inventories / Order backlog (Right axis) Strong focus on capital efficiency Disciplined value accretive M&A with goodwill carried by acquiring divisions Fairly stable Capex spend going forward % %
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— Slide 33ABB Capital Markets Day 2025 Capital allocation principles remain unchanged 1. Per target definition 2. Payout ratio % net income attributable to ABB 01 03 Fund organic growth, R&D, Capex at attractive returns 0% 50% 100% 150% 0.7 0.8 0.9 1.0 2018 2019 2020 2021 2022 2023 2024 Dividend per share (CHF) Payout ratio % net income Rising sustainable dividend per share over time Division-led R&D and Capex to ensure: • No. 1-2 market position – be customers’ preferred problem solver • High returns on capital Value-creating acquisitions Returning additional cash to shareholders through share buybacks 1’800 2’000 2’200 2020 2021 2022 2023 2024 2025 Shares outstanding (in millions) 02 04 ~$11.3 bn in share buybacks from 2020 – YTD Q3 2025 • Make M&A part of our ABB Way performance culture • Pace has picked up but deal size small • Maintain strong investment grade rating target 1% – 2% average through cycle 0.6%1 average acquired growth 2019 – 2025 2
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— Slide 34ABB Capital Markets Day 2025 1. Total shareholder return in USD since 01.01.2020, Source: FactSet 2. Management estimate 3. Q3 2025 LTM 5% – 7% comparable growth and 1% – 2% acquired growth through cycle Deliver on upgraded margin target range of 18% – 22% High single-digit EPS growth through cycle Cash distribution via dividends and share buybacks Financial targets & cash distribution point towards double-digit TSR through cycle TSR1 ~215% since 2020 TSR performance since implementation of ABB Way operating model in 2020 driven by: • Strong operational performance and revenue growth under ABB Way operating model – average EPS growth of 17%2 excl. divisional exits from 2022 – 20253 • Disciplined capital allocation in R&D and Capex • Return of cash to shareholders through dividends and share buybacks; distribution of Accelleron shares in 2022 as dividend-in-kind 0 50 100 150 200 250 300 350 2020 20252024202320222021
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ABB Capital Markets Day 2025 CAPIT AL MARKETS DA Y 2025 Automation P E T E R T E R W I E S C H , P R E S I D E N T , A U T O M A T I O N
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— Slide 2ABB Capital Markets Day 2025 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 global economic conditions, and 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,” “guidance”, “plans,” “outlook,” “on track,” “framework” 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 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 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. This presentation contains alternative performance measures. Definitions of these measures and reconciliations between these measures and their US GAAP counterparts can be found in “Supplemental Reconciliations and Definitions” within our Q3 2025 financial information booklet and under the Additional material section on our website at https://global.abb/group/en/investors/strat egy-events
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— Slide 3ABB Capital Markets Day 2025 $8.4b $7.0b $1.1b Process Automation Performing better than ever Note: #1/#2 ranking based on: revenues for DCS, installed base for marine electric propulsion, revenue for process analytical, and installed base for industry specific anchor products 1. Management estimate Orders Revenue Op. EBITA (Margin) ROCE Avg trade NWC as a % of revenue 0.2b (3.3%) (15.4%) 33.9% #1 Marine electric propulsion 5,000+ electrified vessels Azipod® propulsion in 80% of cruise vessels #1-2 Process control ~100,000,000 input/output points connected #1-2 Process analytical 70,000+ continuous emission monitoring systems installed #1 Industry specific anchors 1,000+ mine hoist solutions 300+ grinding mill drives >40,000 excitation and synchronization products ~87% Direct sales1 (end users, OEMs, EPCs) ~44% Service ~22.9K Employees 3Q 2025 LTM
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— Slide 4ABB Capital Markets Day 2025 Record level backlog with attractive margins Adding resilience at times of uncertainty and supporting future performance 1. Excluding Turbocharging and Machine Automation. 2. LTM 25Q3 3. Management estimate Orders & revenues1 Order backlog1 20 consecutive quarters of positive book-to-bill Order backlog gross margin up >500 bps since 2020 2020 2021 2022 2023 2024 25Q3 LTM2 5.1 6.0 5.5 6.1 5.5 7.5 6.3 7.1 6.8 8.4 7.0 5.5 Orders, $b Revenues, $b 2020 2021 2022 2023 2024 25Q3 5.7 5.9 6.2 7.5 7.4 9.4 OBL gross margin trend3 (%) OBL, $b
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— Slide 5ABB Capital Markets Day 2025 Unlocking full potential of the Machine Automation division High-end technology in automation and advanced motion control Solution sales to serial machinery OEMs Differentiation through domain competence and engineering Niche player in top-tier discrete market Recovery expected in discrete market • Bring to full potential (towards a ~15% margin business) • Maximize control technology synergies • Leaner sales engine, with targeted application and geographic growth • Accelerate digital and services • Explore synergies in hybrid industries (e.g., life sciences) Integration into new Automation business area
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— Slide 6ABB Capital Markets Day 2025 Direct sales1 (end users, OEMs, EPCs) Service ~39% Employees ~88%~26.1K New Automation business area 3Q 2025 LTM pro-forma estimate 1. Management estimate $9.0b $7.8b $1.1b $0.6b Process Automation Automation PA + Machine Automation division Orders Revenue Op. EBITA (Margin) ROCE (15.4%) 33.9% (7.9%) 22.1% 0.2b (3.3%) (13.7%) $8.4b $7.0b $1.1b Process Automation Machine Automation Avg trade NWC as a % of revenue
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— Slide 7ABB Capital Markets Day 2025 Automation Unrivalled end-to-end integration – from Process to Machine to Power Safety Productivity Sustainability — CONTROL, MONITOR & OPTIMIZE ACT POWER Electric Thermal Mechanical PROCESS & MACHINE SENSE
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— Slide 8ABB Capital Markets Day 2025 Automation as the backbone of industrial operations What if a 24/7 continuous process is disrupted? Customer needs Solution: DCS Economic loss Clean-up of material residues in process Environmental and people safety risk Damage to equipment • Reliability: 24/7 uptime • Process steps tightly integrated • Safety and sustainability • Productivity and asset utilization • Continuous improvement
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— Slide 9ABB Capital Markets Day 2025 Automation Five fully accountable divisions, with strong underlying drivers and mega trends Energy Industries Process Industries Marine & Ports Measurement & Analytics Machine Automation Profitability Profitability Growth Growth Stability Energy growth and transformation Digitalization and AI Process electrification Security of supply ▪ Energy security and localization ▪ Resilient and efficient operations ▪ Demand for critical minerals ▪ Electrification of mining ▪ Maritime decarbonization ▪ Investment in defense ▪ Environmental and regulatory focus ▪ Energy security ▪ Individualized consumer needs ▪ Labor shortage Market drivers Mega trends Process Control Platform, Operation and Digital centers
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— Slide 10ABB Capital Markets Day 2025 From technology leadership and domain expertise to local presence and service excellence – creating long-term value where it matters How we win — Best-in-class Automation, Electrical, and Digital integration Local strength with global reach LEANER AND CLEANER Unparalleled domain expertise Service that powers the lifecycle Pioneering technology leadership #1-2 Segment leadership with industry leading anchor products; investing ~5% of sales in R&D Automation, Electrical, Digital Reducing cost and risk in projects while improving safety, productivity and sustainability 60+ countries with direct presence, aiming for regional self-sufficiency; reaching 150+ countries via partners 125 years of domain expertise; running dependable, mission-critical, real-time operations
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— Slide 11ABB Capital Markets Day 2025 Leveraging the power of ABB through integration… Rio Grande LNG Integrated automation, electrical and digital scope including: • Motors, drives and compressions from Motion • Switchgear and UPS from Electrification • System 800xA® and digital to control power, process and safety systems from Automation Northern Lights CCS1 Integrated automation, electrical and digital scope including: • Electric motors from Motion • Switchgear and switchboards from Electrification • System 800xA® and digital to control power, process and safety systems from Automation … for dependable, mission critical, real-time operations CUSTOMERS Business Area ELECTRIFICATION Business Area MOTION Business Area AUTOMATION Photo: Ruben Soltvedt, Northern Lights JV 1. Carbon Capture Storage
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— Slide 12ABB Capital Markets Day 2025 All-time high performance Successful execution of our strategy Note: all figures excluding Turbocharging 1. LTM 25Q3 Revenue $b ROCE % Profitability Op. EBITA margin % › 5.5 5.1 5.5 5.5 6.3 6.8 7.0 7.8+4% 9.7% 6.1% 11.1% 12.7% 14.6% 15.1% 15.4% 13.7% 5.7 p.p. 34% 22% 2019 20 21 22 23 24 LTM Q31 LTM Q31 Strengthening the core 1 Digital & AI2 Energy & Sustainability 3 Inorganic Process Automation Automation (pro forma)6% Average comparable y-o-y growth
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— Slide 13ABB Capital Markets Day 2025 …with even more potential to unlock value Base Strengthened core Energy & Sustainability Digital & AI Today 2030 Inorganic Inorganic Strengthening the core Digital & AI Energy & Sustainability • Support energy growth and transformation • Combine sustainability and security of supply • Extension of automation • Enabling progress towards autonomous operations • Productization and growth • Technology leadership • Market and channel expansion • Lifecycle service commitment • Full potential for B&R 1 2 3
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— Slide 14ABB Capital Markets Day 2025 Leading with technology Mission-critical technology offerings that drive differentiation and customer value v DynafinTM propulsion Azipod® propulsion Gas chromatographs GCProTM series Mechatronic systems Automation Extended Strengthening the core DCS modernization without disruption Leading the way in energy efficiency Revolutionary propulsion system New standard for real- time gas analysis Innovative solutions for adaptive manufacturing
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— Slide 15ABB Capital Markets Day 2025 Growing customer lifecycle services 1. LTM 25Q3 2. Management estimate Recurring and predictable revenues over decades of plant lifespan Customer value Enable modernization without disruption Lower lifecycle costs and boost reliability Enable digitalization and data-driven decisions Strengthen cyber security and compliance Energy Industries Process Industries Marine & Ports Measurement & Analytics Machine Automation Europe Americas Asia, Middle East & Africa ~$1b2 yearly potential for modernization opportunities in our DCS installed base in next 5-10 years 39%1 of business as service, with significant upside potential across divisions Automation service revenue, $b $2.9b FY24 $2.9b FY24 2021 2022 2023 2024 2025 LTM1 2.5 2.4 2.7 2.9 3.1 +5% Strengthening the core
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— Slide 16ABB Capital Markets Day 2025 Digital & AI: enabling progress towards autonomous operations Digital & AI 1890 Today1980 Tomorrow Collaborative operations Autonomous operations Isolated operations Connected operations
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— Slide 17ABB Capital Markets Day 2025 Building and growing an industrial software and digital services business Note: Management estimate 2021 2022 2023 2024 Ambition >$700m Double digit growth Helping customers optimize their operations Continue double-digit growth SaaS/recurring Productization Capabilities and culture Bolt-on acquisitions Industrial software and digital services ordersStrategic priorities Weather-based route and speed optimization software CLOSED : 3 Jun 2024 Digital & AI → ← — ABB Ability Knowledge Manager & Genix Insights 360, helping Gold Fields to drive efficient, sustainable and remote operations of their mine ABB AbilityTM Cyber Security Workplace helping Engie enhance cyber security at the combined heat and power plants in Belgium ABB Genix Industrial IoT and AI Suite helping optimize operations at the 2GW Al Dhafra single-site solar plant in Abu Dhabi, the largest worldwide ABB Genix Industrial IoT and AI Suite recognized as leader by Gartner and Verdantix
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— Slide 18ABB Capital Markets Day 2025 Powering energy expansion and transformation Energy & Sustainability Energy demand is growing, with electricity outpacing industry growth, and fuel and heat remaining significant Total final consumption, IEA Current Policies Scenario 2025, Exajoules (EJ) Well positioned to support growth and transformation, with an ambitious plan to shift revenue mix Automation revenue composition 9% 9% 70% Today 14% 9% 66% 2035 17% 9% 65% 2040 453 523 549 Fuel and heat Electricity Decarbonized Today 2030 2040 Low carbon sectors Transforming sectors Thereof hydrocarbon While accelerating decarbonization of industry
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— Slide 19ABB Capital Markets Day 2025 Further growth and value creation through M&A ACQUIRED TECHNOLOGY Acquisition strengthens global leadership in continuous emission monitoring CLOSED: 1 Oct 2024 Weather-based route and speed optimization software CLOSED: 3 Jun 2024 Optical sensor technology for real-time water monitoring and testing CLOSED: 1 Feb 2024 Industrial software & AI Advanced sensing Decarbonize hard-to-abate sectors Marine Segment leadership #1 → … with continuous pipeline development SEARCH FIELDS
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— Slide 20ABB Capital Markets Day 2025 High ambitions Driving customer success and further value creation >5% growth through economic cycle Op. EBITA in range of 14% to 18% Towards ~30% ROCE Strongly improved quality of business, investing for the future 1 Strategic priorities: Strengthening the Core, Digital & AI, Energy & Sustainability 2 Growth and margin improvement – both important for value creation3 Automation – at the heart of ABB’s purpose4
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ABB Capital Markets Day 2025 CAPIT AL MARKETS DA Y 2025 Electrification G I A M P I E R O F R I S I O , P R E S I D E N T , E L E C T R I F I C A T I O N
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— Slide 2ABB Capital Markets Day 2025 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 global economic conditions, and 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,” “guidance”, “plans,” “outlook,” “on track,” “framework” 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 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 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. This presentation contains alternative performance measures. Definitions of these measures and reconciliations between these measures and their US GAAP counterparts can be found in “Supplemental Reconciliations and Definitions” within our Q3 2025 financial information booklet and under the Additional material section on our website at https://global.abb/group/en/investors/strat egy-events
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THE WORLD NEEDS MORE POWER AND LESS EMISSIONS ELECTRIFICATION MAKES IT POSSIBLE Slide 3ABB Capital Markets Day 2025
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ELECTRICITY IS THE POWER OF THE FUTURE Growth across all segments B U I L D I N G S 34% of 2024 Electrification revenues1 U T I L I T I E S & R E N E W A B L E S 20% I N D U S T R I E S 26% D A T A C E N T E R S 12% I N F R A S T R U C T U R E 8% Slide 4ABB Capital Markets Day 2025 1. 2024, management estimates Mid-term market growth: >10% 5-10% → 3-5%
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— Slide 5ABB Capital Markets Day 2025 BUILDINGS Providing safety, comfort and intelligence for everyone A B B S O L U T I O N E X A M P L E S : ABB i-bus® KNX, Wiring Accessories O U T C O M E S : • New standard of efficiency in operations in Nordic hospitality • Up to 50% less energy from HVAC & lighting Annual market up $20B by 20301 34% of 2024 revenues GROWTH DRIVERS: • Urbanization – 70% of global population living in urban areas by 2030 • Automation – 85% of commercial buildings without automation • Energy Efficiency – 26% of global energy-related emissions2 from buildings • Heating & cooling – 95% higher electricity demand in buildings in 2050 vs. 2024 1. vs. 2024 2. 8% direct, 18% indirect emissions from the production of electricity and heat used in buildings Source: United Nations Population Fund, IEA Energy System Buildings report, IEA world energy outlook 2025 Current Policies Scenario, Abi Research “Roadmap To Autonomous Building Operations” Mid-term market growth: >10% 5-10% → 3-5%
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— Slide 6ABB Capital Markets Day 2025 UTILITIES & RENEWABLES Powering the energy revolution 1. vs. 2024 2. Between 2024 and 2035 3. vs. 2016-2025 4. Due to lower on-site labor and commissioning time 5. Due to modular, pre-integrated eHouse solution Source: IEA world energy outlook 2025, Current Policies Scenario A B B S O L U T I O N E X A M P L E S : 33kV eHouses with MV switchgear and control room O U T C O M E S : • Up to 30% of W. Australia load covered • Lower installation4, downtime & maintenance costs • 25% faster project completion5 Annual market up $20B by 20301 20% of 2024 revenues GROWTH DRIVERS: • Electrification of everything – electricity grows 2x as fast as total energy consumption2 • Aging grid – ~50% higher avg. annual grid investments in 2026-20303 • Renewables integration – ~3x solar and wind installed capacity by 20351 Mid-term market growth: >10% 5-10% → 3-5%
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— Slide 7ABB Capital Markets Day 2025 DAT A CENTERS Comprehensive solutions portfolio Mid-term market growth: >10% 5-10% → 3-5% Service & EV Charging Installation Products Cooling system components Digital Data Center Operations Critical Power LV electrical solutions MV Primary & Secondary Distribution Battery Energy Storage Systems Motors & Drives MV substations Backup & supplement power ABB TECHNOLOGY PRESENT IN 1 OUT OF 4 DA TA CENTERS
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— Slide 8ABB Capital Markets Day 2025 DAT A CENTERS At the forefront of the AI revolution A B B S O L U T I O N E X A M P L E S : ABB MV HiPerGuard UPS O U T C O M E S : • Up to 20% less power infrastructure Capex • >98% efficiency, highest on the market • 20% faster deployment3GR OWTH DRIVERS: • AI – 4x data center energy demand by 2030 • Power density – 30x higher peak rack density in 2030 vs. 2023 • Uptime – ~$6k/minute avg. downtime cost 1. vs. 2024 2. Q3 2025 LTM 3. Due to easier cabling and reduced number of components Source: IEA, Goldman Sachs, McKinsey, Gartner Annual market up $25B by 20301 12% of 2024 revenues, 25% avg. annual orders growth since 20192 Mid-term market growth: >10% 5-10% → 3-5%
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14.1% Revenues NEW ALL-TIME-HIGH PERFORMANCE Commitments delivered and much more Op. EBITA & Margin USD, billion USD, billion 5-7% Average annual comparable revenue growth >20% Op. EBITA % Actuals 8% Avg. 2019-20252 23.3% 2025 Q3 LTM CMD 2023 commitments Financial information excludes the impact of Solar and Power Conversion for the applicable periods 1. Q3 2025 LTM; 2. Annualized through Q3 2025 LTM revenues 23.3% 2019 2020 2021 2022 2023 2024 20251 11.8 11.3 12.6 13.2 14.4 15.4 16.7 2019 2020 2021 2022 2023 2024 20251 1.7 1.7 2.1 2.3 2.9 3.5 3.9 comparable +8% Slide 9ABB Capital Markets Day 2025 Over the cycle Over the cycle
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01 02 03 04 1. Since 2023 2. Power Conversion, Solar, Industrial Wiring Accessories, Terminal Blocks, Multi Site Retail, Kaufel Berlin; 3. Cylon Controls, ASKI EM, EVE, SIB, SIEMENS WA in CN, SENSORFACT, ABNEX JV, BEL PRODUCTS, SEAM, LUMIN, WETOWN JV 4. From 2019 Note: Local for Local based on management estimates, 2024 Implemented through the Business Lines Empowerment and agility All Divisions in GROWTH mandate 4 of 5 Divisions improved margins1 Installation Products & Distribution Solutions turnaround 6 divestments2, 11 acquisitions3 since 2019 >$2.5B invested in R&D4 GE IS synergies over-achieved Profitability improved towards high teens Market share gain since 2020 SPEED, EMPOWERMENT , CLOSE TO OUR CUSTOMERS Everything that runs well can be engineered to outrun ABB Way Always improving & innovating US turnaround & expansion Local for Local Slide 10ABB Capital Markets Day 2025 97% 82% 80% 89%
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04 03 02 THE BEST IS YET TO COME US focus Technology Leadership Innovation M&A 01 ABB Capital Markets Day 2025 Slide 11ABB Capital Markets Day 2025
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US OUR LARGEST & FASTEST GROWING MARKET Invested >$500M in Capex to capture scale1 Targeted investments to reach >90% local-for-local production and grow in North America Automation and optimized line setup achieving Frosinone productivity2 increase (>100% 2020-2025) US profitability at least at Electrification average 2019 2023 2025 Q3 LTM Revenues in US 1. YTD from 2019 2. Gross profit over headcount Slide 12ABB Capital Markets Day 2025 Avg. annual comp. growth +20% Avg. annual comp. growth +9%
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— Slide 13ABB Capital Markets Day 2025 1000x more data storage Industry’s most accurate sensors Full backwards compatibility -40% advanced logic implementation time 1st certified with SL2 cybersecurity 1st with arc flash detection integrated 5 million Emax 2 installed since its launch EMAX 3 FOR RESILIENT AI DAT A CENTERS AND MANUFACTURING Emax 2 Leading the market for the last 13 years Emax 3 Setting the next level for LV Air Circuit Breakers Slide 13ABB Capital Markets Day 2025
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THE FUTURE IS DIRECT CURRENT (DC) Drivers Surge in DC demand and supply • 3x wind and solar PV by 20351 • 8x Battery Energy Storage Systems by 20351 • 30x power density in Data Centers by 2030 Power Electronics advancements Benefits • Higher power density • Less conversion losses • Less raw materials Strongly positioned to win 1. Refers to GW of installed capacity Source: IEA World Energy Outlook 2025 Current Policies Scenario, Goldman Sachs, McKinsey Our DC journey Solid State Circuit Breakers World First 2022 SACE Infinitus R&D Growing 700+ DC patents Collaborations Standards T O D A Y T O M O R R O W Slide 14ABB Capital Markets Day 2025
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INCREASED FOCUS Priority areas: • Reliable electrical grids • High performance data centers • Smarter buildings • High growth geographies Slide 15ABB Capital Markets Day 2025 ~$800M1 IN M&A AND VENTURES JV Wiring Accessories, CN 1. Investments since January 2023, excluding divestments
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— Slide 16ABB Capital Markets Day 2025 REVENUE GROWTH towards higher end of ABB range1 1. Comparable, average through the cycle ELECTRIFICATION AMBITION 22-26% O P . E B I T A M A R G I N Where the most ADV ANCED TECHNOLOGY meets the best CUSTOMER EXPERIENCE
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© 2025 ABB. All rights reserved. CAPIT AL MARKETS DA Y 2025 Motion B R A N D O N S P E N C E R , P R E S I D E N T , M O T I O N
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— Slide 2ABB Capital Markets Day 2025 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 global economic conditions, and 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,” “guidance”, “plans,” “outlook,” “on track,” “framework” 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 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 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. This presentation contains alternative performance measures. Definitions of these measures and reconciliations between these measures and their US GAAP counterparts can be found in “Supplemental Reconciliations and Definitions” within our Q3 2025 financial information booklet and under the Additional material section on our website at https://global.abb/group/en/investors/strat egy-events
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ABB MOTION The most comprehensive portfolio of electric motors, drives, generators, and motion control with digital powertrain solutions, supported by our service offering Note: FY24 actuals $7.8bn Revenues 19.4% Op. EBITA Margin >22k Employees #1 in a ~USD 57bn market ABB Capital Markets Day 2025
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6 DIVISIONS TO BEST SERVE OUR CUSTOMERS Perfect match of motors and drives Unique scaling from lowest to highest power Differentiated by application specific software Drive Products High Power NEMA Motors IEC LV Motors TractionService
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— Slide 5ABB Capital Markets Day 2025 Running at all-time-highs, we have a strong foundation to build on 1. Q3 2025 LTM (Trailing twelve months); 2. Chart adjusted for Mechanical Power Transmission division divestment 3. Comparable growth as reported in period REVENUE EVOLUTION2 $B PROFIT ABILITY DEVELOPMENT2 2021 2023 20251 6.4 7.8 8.0 6.0 2019 16.3 16.6 18.9 19.6 2019 2023 202512021 +9% avg. annual growth / margin +330 bps 1.1 1.5 1.6 1.0 Op. EBITA ($B) Op. EBITA (%) +6%3 avg. comparable growth
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WE POWER THE ENERGY TRANSITION TOGETHER WITH OUR CUSTOMERS Protecting mission-critical operations Improving grid stability & energy security Boosting industrial efficiency & reliability Enabling renewable power generation at scale B U I L D I N G S ~USD 6bn market 8% of Energy-related GHG emissions I N D U S T R Y ~USD 31bn market 25% of Energy-related GHG emissions Total market of USD 57bn T R A N S P O R T ~USD 12bn market 22% of Energy-related GHG emissions P O W E R ~USD 8bn market 40% of Energy-related GHG emissions Source: IEA
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— Slide 7ABB Capital Markets Day 2025 Note: Rounded, management estimate and % based on FY24 3rd party revenues NAM | Local-for-local ~80% India | Local-for-local ~85% Europe | Local-for-local ~95% Local-for-local, our strategy drives speed, resilience, and customer intimacy Business and Service in 100+ countries Local supply chains with 39 factories across 10 countries 6,000+ channel partners China | Local-for-local ~90% Global coverage, always close to our customers and partners
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— Slide 8ABB Capital Markets Day 2025 Energy Transition GtCO2 reduction, Paris-aligned 2024 2030 149 612 2024 2030 Global Data Volume Zettabytes Global Electricity Demand TWh 2024 2030 ~31,000 ~37,500 Accelerated demand for energy-efficient solutions across industry, transport, buildings and power Slide 8 +4x +20% Source: Statista; UN World Urbanization Prospects; IEA World Energy Outlook 2025, UNFCCC, IPCC, IEA COP28 energy goals Key drivers fueling our growth ~7-8 GtCO2 through energy efficiency ~53 ~31 ~14-15 GtCO2 through electrification, renewables, technology, et al. 2024 2030 -40% ABB Capital Markets Day 2025
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— Slide 9ABB Capital Markets Day 2025 Our customers require greater energy efficiency Powering growth Slide 9 Install high- efficiency motors Electrify industrial processes & vehicle fleets Use variable speed drives Bring connectivity to physical assets Maintain efficient heat exchangers Energy audits for efficiency We deliver long-term Opex savings while supporting customer resilience and competitiveness 1 2 Cut operating costs at scale by reducing energy waste across motor-driven systems Boost asset performance through smarter, more efficient operations – less waste, more output Source: US EIA; IEA World Energy Outlook 2025 2024 2035 Electricity demand growth US, in TWh (chart illustrative) +35% peak demand -15% efficiency gains 4,600 5,500 +20% ABB Capital Markets Day 2025
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— Slide 10ABB Capital Markets Day 2025 Helping industries outrun - leaner and cleaner Reducing both Opex and emissions through energy efficiency Slide 10 Energy efficiency Increase in avg. annual investment, $B 356 382 418 2026-30 2041-50 +18% IE2 motor Direct-on-line ~15,500 USD Capex for IE2 250kW motor IE5 motor Paired with a variable speed drive ~40,000 USD Capex for 1 low-voltage (<1'000 volts) SynRM IE5 250kW plus 1 variable speed drive Over 25 year lifetimeOver 1 year ROI3 ~9 months ~9 months Electricity cost savings1 ~0.05 MUSD 1.3 MUSD Emissions savings2 180 tons 4,500 tons Equivalate to 952 gasoline- powered passenger vehicles driven for 1 year4 Opex & emissions savings delivered › Replaced with 1. U.S. electricity cost, Industrial sector, July 2025 – Source: U.S. Energy Information Administration (EIA); 2. U.S. electricity emission factor, 2025 database – Source: International Energy Agency (IEA); 3. ROI calculated assuming replacement of IE2 in use with 1 low-voltage (<1'000 volts) SynRM IE5 250kW and 1 VSD; 4. Calculation per EPA; Source: IEA 2025 2031-40 ABB Capital Markets Day 2025
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— Slide 11ABB Capital Markets Day 2025 THE NEW MACHINERY DRIVE ACS380-E We continuously invest into our technology leadership 1. Q3 2025 LTM (Trailing twelve months) 2022 20251 3.4% 3.9% Motion R&D spend % of sales, non-order related ~12% CAGR • Large synchronous electric motor with energy efficiency rating of 99.13%, our new world record • Help customers reduce electricity usage, operating costs and total cost of ownership • Summarizing 100+ pages of spec into 1 page • +225% faster spec reading with high accuracy and consistency TOP INDUSTRIAL EFFICIENCY MOTOR SPECIFIER POWERED BY GENAI • Adaptable connectivity, versatile simplicity, robust cyber security • Future-ready product platform for diverse applications worldwide
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Driving strategic growth & innovation through targeted investments Slide 12 • Tap into new opportunities • Strengthen our electrification portfolio • Enable more efficient, cleaner transport solutions • Access breakthrough technology aligned with our strategy • Solve customer problems and speed up time-to-market BUILDING VALUE THROUGH M&A AND OPEN INNOVATION ABB Capital Markets Day 2025
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— Slide 13ABB Capital Markets Day 2025 Source: ABB Management Estimate Electrifying the LNG process by replacing gas turbines (~35% efficiency) with electric motors and drives (~95% efficiency) can significantly improve the overall efficiency of a facility Integrated Solutions → • Integrated offering enables us to effectively manage customers’ schedule, cost and risk • Joint account management to best serve our customers and anticipate their needs • Joint R&D to accelerate innovation such as our control algorithm for electric frequency converters ABB Electrification Instrumentation Controls Telecommunications 24/7/365 Service Enabling energy efficient and low carbon operations for Liquified Natural Gas Joining forces with Automation
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— Slide 14ABB Capital Markets Day 2025 Together, we support our customers by • Offering a fully integrated solution, simplifying sourcing and ensuring interoperability • Enabling speed to deployment with modular solutions • Ensuring uptime and reducing planned outage time • Enabling energy efficiency and lowering carbon emissions • Delivering energy insights to lower power consumption Critical Power Alternate power sources ABB Digital Data Center Operations Medium Voltage Substations Low Voltage Power Distribution Medium Voltage Primary & Secondary Distribution Cooling system components Installation Products White space electrical solutions Integrated Solutions → Energy and insights for Data Centers Joining forces with Electrification —
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— Slide 15ABB Capital Markets Day 2025 A strengthened operating model Accelerating growth with accountability, focus, customer centricity STRENGTHENING ACCOUNTABILITY with 25 newly formed Business Lines and clear strategic mandates. CREATING CUSTOMER VALUE by better serving our long-cycle business through our new High Power Division. ENHANCED GO-TO-MARKET streamlined and fully empowered to accelerate growth. 1 2 3
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CLEAR PRIORITIES FOR CONTINUED IMPROVEMENT Even stronger accountability for profitable growth across Business Lines Targeted M&A across key search fields and growth drivers Strengthening service attachment for sustainable customer value Building on the power of ABB with Electrification and Automation Accelerating product innovation to help industries outrun
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MOTION KEY TAKEAWAYS We are well-positioned in our markets to contribute to ABB’s growth target1 We have the right operational set-up to deliver on ABB’s comparable revenue growth target of 5-7% at a 18%-22% Op. EBITA margin 2 We continuously invest in R&D and inorganic growth to broaden our differentiating technology leadership3
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© 2025 ABB. All rights reserved. CAPIT AL MARKETS DA Y 2025 Motion T U O M O H Ö Y S N I E M I , D I V I S I O N P R E S I D E N T , D R I V E P R O D U C T S
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ABB NEW BERLIN CAMPUS 1ST ONE STOP SHOP FOR US DRIVESW e serve the customers from pre-sales and engineering to after-sales and services - locally in the US Technology Domain Expertise and Services Production and Supply Engineering and Development Customer Experience Center
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— Slide 20ABB Capital Markets Day 2025 ABB New Berlin Campus $100M investment 700+ employees ~159K sq ft P R O D U C T I O N ~300K sq ft D I S T R I B U T I O N R & D E N G I N E E R I N G ~83K sq ft O F F I C E Creating highly skilled jobs in sales, engineering and R&D, operations and services – local for US customers. ~28K sq ft
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— Slide 21ABB Capital Markets Day 2025 Local for Local Strategy in the US We create customized solutions locally in the US Product development in collaboration with Customer in the local innovation and R&D hub Lead customer: Global climate-technologies company Application: High Speed compressors ABB Innovation: Patented cooling to increase power output Customer value Strong ABB local presence in the US: Engineering - Sales - Manufacturing - Field support A single application-specific ABB product covers all customer needs Smaller drive delivering more power with higher efficiency and easier integration to their machine Slide 21ABB Capital Markets Day 2025
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— Slide 22ABB Capital Markets Day 2025 Local for Local in the US We provide a comprehensive customer experience for Data Centers cooling Customer experience center with application know-how - fast and agile local support driven by sustainability and qualityLe ad customer: Trane, a global climate innovator and key data center cooling solutions provider Application: Chiller applications for data centers cooling ABB Innovation: Customer-specific software features Customer value Strong ABB local presence in the US: Engineering - Sales - Manufacturing - Field support ABB as a partner that meets current requirements and future needs that can open new markets Brand labeled products and customer specific software features to optimize machine performance Slide 22 ABB Capital Markets Day 2025
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— Slide 23ABB Capital Markets Day 2025 Local for Local in the US We engineer to meet customer needs and deliver 10x faster locally in the US Investment in US engineering and manufacturing to increase local production in fast response to customer needs Lead customer: Industrial company specialized in complex automation projects Application: Underground mining market ABB Innovation: Localized support and manufacturing to drive engineered-to-order capability Customer value OEMs have direct access to engineers in the same time zone – streamlining communication and accelerating design resolution Freight time reduced from 8 weeks to 2 days BABA - Build America, Buy America compliant Enables ABB to meet U.S. tax incentive requirementsfor customers while also minimizing tariff impacts Slide 23 ABB Capital Markets Day 2025
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Example of ABB's world-wide Net Zero initiative ABB NEW BERLIN CAMPUS – MISSION TO ZERO Solar panel installation on the roof to assist with energy supply More robust insulation for the roof and for better climate controls Geothermal HVAC system with electrical heat pumps Biodiesel generator for critical emergency backup Electric vehicle charging stations Integrated ABB digital solutions for building and energy management
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1 CAPITAL MARKETS DAY 2025 November 18 , 202 5 Supplemental Reconciliations and Definitions ENGINEERED TO OUTRUN
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2 CAPITAL MARKETS DAY 2025 — Supplemental Reconciliations and Definitions The following alternative performance measures supplement the November 18, 2025, Press Release and the Capital Markets Day 202 5 presentations. Certain of these alternative performance measures are not defined under U.S. GAAP. While ABB’s management believes that the alternative performance measures herein are useful in evaluating ABB’s operating results, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in acco rdance with U.S. GAAP. Therefore these measures should not be viewed in isolation but considered together with the Consolidated Financial Informatio n (unaudited) prepared in accordance with U.S. GAAP as of and for the nine and three months ended September 30, 2025, and with the Consolidated Financial Statements prepared in accordance with U.S. GAAP as of and for the years ended December 31 , 2024, 2023, 2022, 2021, 2020 and 2019. For the full definition of each of these measures, refer to Supplemental Reconciliations and Definitions, ABB Q3 202 5 Financial information on global.abb/group/en/investors/quarterly-results. Return on Capital employed on Net operating assets Definition Return on Capital employed on Net operating assets Return on Capital employed on Net operating assets is calculated as Operational EBITA after tax, divided by the average of the period’s opening and closing Capital employed on Net operating assets, adjusted for the timing of significant acquisitions and divestments during the period. Capital employed on Net operating assets Capital employed on Net operating assets is calculated as the sum of Operating assets and Net working capital. Operating assets Operating assets is the sum of (i) property, plant and equipment, net, (ii) capitalized software for internal use, net, (iii) investments in equity-accounted companies, (iv) operating lease right-of-use assets, and (v) fixed assets included in assets held for sale, as applicable. Net working capital Net working capital is the sum of (i) receivables, net, (ii) contract assets, (iii) inventories, net, and (iv) prepaid expens es; less (v) accounts payable, trade, (vi) contract liabilities and (vii) other current liabilities (excluding primarily: (a) income taxes payable, (b) current der ivative liabilities, (c) pension and other employee benefits, (d) payables under the share buyback program and (e) liabilities related to certain other restructur ing-related activities); and including the amounts related to these accounts which have been presented as either assets or liabilities held for sale. Notional tax on Operational EBITA The Notional tax on Operational EBITA is computed using a consistent notional tax rate, approximately representative of the C ompany’s weighted- average global tax rate, multiplied by Operational EBITA. The notional tax rate is subject to adjustment for significant chan ges in the Company’s weighted-average global tax rate.
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3 CAPITAL MARKETS DAY 2025 Reconciliation – Return on Capital employed on Net operating assets December 31, ($ in millions, unless otherwise indicated) 2024 2023 Operating assets: Property, plant and equipment, net 4,177 4,142 Capitalized software for internal use, net 123 129 Investments in equity-accounted companies 368 187 Operating lease right-of-use assets 840 893 Total Operating assets 5,508 5,351 Net working capital (as published) 2,739 3,257 Capital employed on Net operating assets 8,247 8,608 Capital employed on Net operating assets: - at the end of the previous year 8,608 - at the end of the current year 8,247 Average Capital employed on Net operating assets 8,428 Adjusted for timing of acquisitions/divestments (69) Average Capital employed on Net operating assets 8,359 Operational EBITA for the year ended 5,968 Notional tax on Operational EBITA (as defined above) (1,492) Operational EBITA after tax 4,476 Return on Capital employed on Net operating assets 53.5% Return on Capital employed on Net operating assets – Trailing twelve months Definition Return on Capital employed on Net operating assets – Trailing twelve months Return on Capital employed on Net operating assets – Trailing twelve months is calculated as Operational EBITA after tax, divided by the average of the period’s opening and closing Capital employed on Net operating assets (as defined above) for each of the four quarters during the trailing twelve -month period (4-quarter average). Reconciliation – Return on Capital employed on Net operating assets – Trailing twelve months ($ in millions, unless otherwise indicated) Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Operating assets: Property, plant and equipment, net 4,690 4,618 4,301 4,177 4,248 Capitalized software for internal use, net 135 131 123 123 119 Investments in equity-accounted companies 401 388 377 368 185 Operating lease right-of-use assets 845 849 861 840 873 Operating assets included in assets held for sale 4 – – – 11 Total Operating assets 6,075 5,986 5,662 5,508 5,436 Net working capital (as published) 3,304 3,767 3,371 2,739 3,512 Capital employed on Net operating assets 9,379 9,753 9,033 8,247 8,948 Average of opening and closing Capital employed on Net operating assets 9,566 9,393 8,640 8,598 Operational EBITA for the three months ended 1,738 1,708 1,597 1,434 Operational EBITA for the trailling twelve months 6,477 Notional tax on Operational EBITA (as defined above) (1,619) Operational EBITA after tax for the trailing twelve months 4,858 Average Capital employed on Net operating assets (4 quarters) 9,049 Return on Capital Employed on Net operating assets - Trailing twelve months 53.6%
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4 CAPITAL MARKETS DAY 2025 Process Automation Business area including the Machine Automation Division The Process Automation Business area and the Machine Automation Division (formerly part of the Robotics & Discrete Automation Business area) comprise the newly-formed Automation Business area. The following section presents the reconciliations of Orders, Revenues and Operational EBITA margin for the trailing twelve m onths period ended September 30, 2025, as well as Order backlog as at September 30, 2025, for the Process Automation Business area including the Machine Automation Division. Definition Operational EBITA margin Operational EBITA margin is Operational EBITA as a percentage of operational revenues. Reconciliation Trailing twelve months to ($ in millions, unless otherwise indicated) September 30, 2025 Orders(1) 8,363 Add: Orders Machine Automation Division 643 Orders including the Machine Automation Division 9,006 Order backlog (as published) 9,353 Add: Order backlog Machine Automation Division 171 Order backlog including the Machine Automation Division 9,524 Revenues(1) 7,033 Add: Revenues Machine Automation Division 775 Revenues including the Machine Automation Division 7,808 Operational EBITA margin: Operational revenues(1) 7,024 Add: Operational revenues Machine Automation Division 776 Operational revenues including the Machine Automation Division 7,800 Operational EBITA(1) 1,080 Add: Operational EBITA Machine Automation Division (15) Operational EBITA including the Machine Automation Division 1,065 Operational EBITA margin (%)(2) 15.4% Operational EBITA margin (%) including the Machine Automation Division 13.7% (1) Orders, Revenues, Operating revenues and Operational EBITA for the trailing twelve months (LTM) are all calculated as the sum of the respective amounts published in the “Financial Information” for Q4 2024, Q1 2025, Q2 2025 and Q3 2025. (2) Operational EBITA margin is calculated as Operational EBITA for the trailing twelve months divided by Operating revenues for the trailing twelve months.
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5 CAPITAL MARKETS DAY 2025 Average trade net working capital as a percentage of revenues for Process Automation Definition Average trade net working capital as a percentage of revenues Average trade net working capital as a percentage of revenues is calculated as Average trade net working capital divided by T otal revenues for the trailing twelve months (being the total revenues recorded in the twelve months preceding the relevant balance sheet date). Average trade net working capital Average trade net working capital is calculated as the average of the opening and closing Trade net working capital for each of the four quarters during the trailing twelve-month period (4-quarter average). Trade net working capital Trade net working capital is the sum of (i) trade receivables (comprised of trade accounts receivable net of related allowanc e), (ii) contract assets, and (iii) inventories, net; less (iv) accounts payable, trade, (v) contract liabilities and (vi) accrued expenses, operating (com prised of accruals related to customer rebates, unpaid interest and other general operating expenses); and including the amounts related to these accounts which have been presented as either assets or liabilities held for sale. Reconciliation – Average trade net working capital as a percentage of revenues for Process Automation September 30, June 30, March 31, December 31, September 30, ($ in millions, unless otherwise indicated) 2025 2025 2025 2024 2024 Trade net working capital: Trade receivables 1,229 1,260 1,236 1,303 1,180 Contract assets 793 765 722 665 761 Inventories, net 701 722 669 669 751 Accounts payable, trade (926) (932) (896) (932) (968) Contract liabilities (1,559) (1,457) (1,422) (1,312) (1,339) Accrued expenses, operating (121) (123) (110) (101) (113) Trade net working capital(1) 117 235 199 292 272 Average of opening and closing Trade net working capital 176 217 246 282 Average trade net working capital 230 Total revenues for the three months ended: December 31, 2024 1,796 March 31, 2025 1,633 June 30, 2025 1,804 September 30, 2025 1,800 Total revenues for the trailing twelve months 7,033 Average trade net working capital as a percentage of revenues (%) 3.3% (1) Trade net working capital includes the Intersegment activities outside of the Business area.
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6 CAPITAL MARKETS DAY 2025 Average trade net working capital as a percentage of revenues for Process Automation including the Machine Automation Division Reconciliation – Average trade net working capital as a percentage of revenues for Process Automation including the Machine Automation Divisio n September 30, June 30, March 31, December 31, September 30, ($ in millions, unless otherwise indicated) 2025 2025 2025 2024 2024 Trade net working capital: Trade receivables 1,395 1,430 1,388 1,425 1,336 Contract assets 793 765 722 665 761 Inventories, net 976 1,012 970 992 1,120 Accounts payable, trade (996) (993) (942) (986) (1,038) Contract liabilities (1,566) (1,466) (1,432) (1,317) (1,352) Accrued expenses, operating (130) (125) (118) (103) (122) Trade net working capital(1) 472 623 588 676 705 Average of opening and closing Trade net working capital 548 606 632 691 Average trade net working capital 619 Total revenues for the three months ended: December 31, 2024 1,968 March 31, 2025 1,818 June 30, 2025 2,009 September 30, 2025 2,013 Total revenues for the trailing twelve months 7,808 Average trade net working capital as a percentage of revenues including the Machine Automation Division (%) 7.9% (1) Trade net working capital includes the Intersegment activities outside of the Business area.
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7 CAPITAL MARKETS DAY 2025 Return on Capital employed (ROCE) for Process Automation Definition Return on Capital employed (ROCE) Return on Capital employed (ROCE) is calculated as Operational EBITA after tax for the trailing twelve months divided by the unrounded average of the opening and closing Capital employed for each of the four quarters during the trailing twelve -month period (4-quarter average). Capital employed Capital employed is calculated as the sum of Adjusted total fixed assets and Net working capital (as defined above). Adjusted total fixed assets Adjusted total fixed assets is the sum of (i) property, plant and equipment, net, (ii) goodwill, (iii) other intangible asset s, net, (iv) investments in equity accounted companies, (v) operating lease right -of-use assets, and (vi) fixed assets included in assets held for sale, less (vii) deferred tax liabilities recognized in certain acquisitions. Notional tax on Operational EBITA The Notional tax on Operational EBITA is computed using a consistent notional tax rate, approximately representative of the C ompany’s weighted- average global tax rate, multiplied by Operational EBITA. The notional tax rate is subject to adjustment for significant chan ges in the Company’s weighted-average global tax rate. Reconciliation – Return on Capital employed (ROCE) for Process Automation September 30, June 30, March 31, December 31, September 30, ($ in millions, unless otherwise indicated) 2025 2025 2025 2024 2024 Adjusted total fixed assets: Property, plant and equipment, net 435 435 414 401 390 Goodwill 1,951 1,934 1,890 1,868 1,671 Other intangible assets, net 96 97 96 97 42 Investments in equity-accounted companies 31 14 12 12 11 Operating lease right-of-use assets 201 206 200 193 198 Total fixed assets 2,714 2,686 2,612 2,571 2,312 Less: Deferred taxes recognized in certain acquisitions – – – – – Adjusted total fixed assets 2,714 2,686 2,612 2,571 2,312 Net working capital (as defined above) (1) (347) (187) (216) (178) (143) Capital employed 2,367 2,499 2,396 2,393 2,169 Average of opening and closing Capital employed 2,433 2,448 2,395 2,281 Operational EBITA for the three months ended 277 290 255 258 Operational EBITA for the trailing twelve months 1,080 Notional tax on Operational EBITA (270) Operational EBITA after tax for the trailing twelve months 810 Average Capital employed (4 quarters) 2,389 Return on Capital Employed (ROCE) - Process Automation 33.9% (1) Net working capital includes the Intersegment activities outside of the Business area.
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8 CAPITAL MARKETS DAY 2025 Return on Capital employed (ROCE) for Process Automation including the Machine Automation Division Reconciliation – Return on Capital employed (ROCE) for Process Automation including the Machine Automation Division September 30, June 30, March 31, December 31, September 30, ($ in millions, unless otherwise indicated) 2025 2025 2025 2024 2024 Adjusted total fixed assets: Property, plant and equipment, net 649 653 618 598 603 Goodwill 2,485 2,467 2,382 2,341 2,180 Other intangible assets, net 275 281 270 268 231 Investments in equity-accounted companies 38 21 19 19 19 Operating lease right-of-use assets 225 233 224 216 224 Total fixed assets 3,672 3,655 3,513 3,442 3,257 Less: Deferred taxes recognized in certain acquisitions (55) (56) (58) (60) (61) Adjusted total fixed assets 3,617 3,599 3,455 3,382 3,196 Net working capital (as defined above) (1) (11) 175 150 187 287 Capital employed 3,606 3,774 3,605 3,569 3,483 Average of opening and closing Capital employed 3,690 3,690 3,587 3,526 Operational EBITA for the three months ended 278 288 255 244 Operational EBITA for the trailing twelve months 1,065 Notional tax on Operational EBITA (266) Operational EBITA after tax for the trailing twelve months 799 Average Capital employed (4 quarters) 3,623 Return on Capital Employed (ROCE) - Process Automation including the Machine Automation Division 22.1% (1) Net working capital includes the Intersegment activities outside of the Business area.
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9 CAPITAL MARKETS DAY 2025 Electrification Business area excluding Power Conversion Division and Solar The following section presents the reconciliations of Revenues and Operational EBITA margin for the Electrification Business area excluding Power Conversion (divested in July 2023) and Solar (divested in March 2020) for 2019 to 2023. Definition Operational EBITA margin Operational EBITA margin is Operational EBITA as a percentage of operational revenues. Reconciliation Year ended December 31, ($ in millions, unless otherwise indicated) 2023 2022 2021 2020 2019 Revenues (as published) 14,584 13,619 12,894 11,722 12,535 Less: Revenues Power Conversion (224) (432) (327) (319) (372) Less: Revenues Solar – – – (54) (337) Revenues excluding Power Conversion and Solar 14,360 13,187 12,567 11,349 11,826 Operational EBITA margin: Operational revenues (as published) 14,581 13,599 12,894 11,711 12,526 Less: Operational revenues Power Conversion (224) (442) (339) (330) (372) Less: Operational revenues Solar – – – (53) (338) Operational revenues excluding Power Conversion and Solar 14,357 13,157 12,555 11,328 11,816 Operational EBITA (as published) 2,937 2,343 2,120 1,686 1,679 Less: Operational EBITA Power Conversion (38) (63) (27) (53) (50) Less: Operational EBITA Solar – – – 17 39 Operational EBITA excluding Power Conversion and Solar 2,899 2,280 2,093 1,650 1,668 Operational EBITA margin (%) (as published) 20.1% 17.2% 16.4% 14.4% 13.4% Operational EBITA margin (%) excluding Power Conversion and Solar 20.2% 17.3% 16.7% 14.6% 14.1%
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