Fundamental actions to focus,simplify and lead in digital industries for enhanced customer value and shareholder returns.

1.Focus of Portfolio on Digital Industries through Divestment of Power Grids

1.1 Divestment of Power Grids to Hitachi expands existing partnership and strengthens Power Grids as a global infrastructure leader with enhanced access to markets and financing

1.2 Enterprise Value of $11 billion for 100% of Power Grids, equivalent to an EV/op. EBITA multiple of 11.2x1.

1.3 Crystallizing value from the transformation of Power Grids including doubling operational EBITA margin since 20142

1.4 ABB initially to retain 19.9 percent in the equity of carved-out Power Grids to ensure transition; pre-defined exit option on 19.9 percent equity at fair market value with floor price at 90 percent of agreed Enterprise Value, exercisable by ABB three years after closing

1.5 Closing expected by first half of 20203

1.6 ABB intends to return 100% of the estimated net cash proceeds of $7.6-7.8 billion4 from the 80.1% sale to shareholders in an expeditious and efficient manner through share buyback or similar mechanism

2.Simplification of Business Model and Structure

2.1 Discontinuation of legacy matrix structure

2.2 Businesses will run all customer-facing activities as well as business functions and territories, fostering ABB’s entrepreneurial business culture

2.3 Businesses to be strengthened by transfer of experienced country management resources

2.4 Existing country and regional structures including regional Executive Committee roles to be discontinued after closing of the transaction

2.5 Corporate activities to be focused on Group strategy, portfolio and performance management, capital allocation, core technologies and ABB Ability™ platform