Form 20-F x

Form 40-F o

Yes o

No x

Media Relations
Antonio Ligi, Sandra Wiesner
Tel: +41 43 317 7111 media.relations@ch.abb.com

Investor Relations
Tel. +41 43 317 71 11 investor.relations@ch.abb.com

ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland

Q4 2015 Financial Information

Financial Information 3 Key Figures 8 8 9 Interim Consolidated Financial Information (unaudited) Interim Consolidated Income Statements Interim Condensed Consolidated Statements of Comprehensive Income Interim Consolidated Balance Sheets Interim Consolidated Statements of Cash Flows Interim Consolidated Statements of Changes in Stockholders’ Equity Notes to the Interim Consolidated Financial Information 10 11 12 13 33 Supplemental Reconciliations and Definitions Q4 2015 Financial Information 2

Key Figures Change Change (1) For a reconciliation of non-GAAP measures see “Supplemental Reconciliations and Definitions” on page 33. (2) For a reconciliation of Operational EBITA to Income from continuing operations before taxes see Note 13 to the Interim Consolidated Financial Information (unaudited). (3) EPS growth rates are computed using unrounded amounts. Operational EPS growth is in constant currency. (4) Growth rates for cash flow figures are calculated using constant currency (not adjusted for impacts of changes in the business portfolio). Q4 2015 Financial Informat ion 3 ($ in millions, unless otherwise indicated) FY 2015 FY 2014 US$Comparable(1) Orders 36,429 41,515 -12% -1% Revenues 35,481 39,830 -11% 0% Operational EBITA(2) 4,169 4,475 -7% 3% as % of operational revenues(1) 11.8% 11.2% +60 bps Net income 1,933 2,594 -25% Basic earnings per share ($) 0.87 1.13 -23%(3) Operational earnings per share(1) ($) (constant currency basis) 1.35 1.28 5%(3) Cash flow from operating activities 3,818 3,845 -1% 9%(4) Free cash flow(1) 3,019 2,857 6%16%(4) as % of net income 156.0% 110.0% Cash return on invested capital(1) 13.4% 12.7% +70 bps Total employees 135,800 140,400 -3% ($ in millions, unless otherwise indicated) Q4 2015 Q4 2014 US$Comparable(1) Orders 8,262 9,365 -12% -2% Revenues 9,242 10,346 -11% -1% Operational EBITA(2) 1,081 1,153 -6% 1% as % of operational revenues(1) 11.7% 11.1% +60 bps Net income 204 680 -70% Basic earnings per share ($) 0.09 0.30 -69%(3) Operational earnings per share(1) ($) (constant currency basis) 0.35 0.34 4%(3) Cash flow from operating activities 1,994 1,833 9%18%(4)

Q4 2015 F inan cial Informat ion 4 ($ in millions, unless otherwise indicated) Q4 2014 Change Q4 2015 US$Local Comparable OrdersABB Group 8,262 9,365 -12% -3% -2% Discrete Automation and Motion 1,984 2,379 -17% -9% -9% Low Voltage Products 1,530 1,722 -11% -2% -2% Process Automation 1,591 1,907 -17% -6% -1% Power Products 2,398 2,548 -6% 3%3% Power Systems 1,340 1,437 -7% 3%3% Corporate and Other (incl. inter-division eliminations) (628) (581) Order backlog (end December)ABB Group 24,121 24,900 -3% 5%5% Discrete Automation and Motion 4,232 4,385 -3% 3%3% Low Voltage Products 857 891 -4% 6%6% Process Automation 5,203 5,661 -8% 2%3% Power Products 7,717 7,791 -1% 7%7% Power Systems 8,218 8,246 0%8%8% Corporate and Other (incl. inter-division eliminations) (2,074) (2,106) RevenuesABB Group 9,242 10,346 -11% -2% -1% Discrete Automation and Motion 2,288 2,583 -11% -4% -4% Low Voltage Products 1,624 1,793 -9% 0%0% Process Automation 1,674 2,094 -20% -11% -8% Power Products 2,544 2,825 -10% -2% -2% Power Systems 1,755 1,965 -11% -1% -1% Corporate and Other (incl. inter-division eliminations) (914) (643) Operational EBITAABB Group 1,081 1,153 -6% 1%1% Discrete Automation and Motion 279 403 -31% -26% -26% Low Voltage Products 268 307 -13% -4% -4% Process Automation 201 263 -24% -17% -14% Power Products 329 360 -9% -2% -2% Power Systems 130 26 n.a.n.a.n.a. Corporate and Other (incl. inter-division eliminations) (206) (126) Operational EBITA %ABB Group 11.7% 11.1% Discrete Automation and Motion 12.2% 15.6% Low Voltage Products 16.5% 17.1% Process Automation 11.9% 12.5% Power Products 12.9% 12.7% Power Systems 7.5% 1.3% Income from operations ABB Group 347 1,049 Discrete Automation and Motion 134 357 Low Voltage Products 153 267 Process Automation 85 353 Power Products 227 330 Power Systems 45 (47) Corporate and Other (incl. inter-division eliminations) (211) (297) Income from operations %ABB Group 3.8% 10.1% Discrete Automation and Motion 5.9% 13.8% Low Voltage Products 9.4% 14.9% Process Automation 5.1% 16.9% Power Products 8.9% 11.7% Power Systems 2.6% -2.4% Cash flow from operating activitiesABB Group 1,994 1,833 Discrete Automation and Motion 328 487 Low Voltage Products 399 443 Process Automation 267 386 Power Products 659 518 Power Systems 426 203 Corporate and Other (85) (204)

Q4 2015 F inan cial Informat ion 5 ($ in millions, unless otherwise indicated) FY 2014 Change FY 2015 US$Local Comparable OrdersABB Group 36,429 41,515 -12% -2% -1% Discrete Automation and Motion 9,222 10,559 -13% -5% -5% Low Voltage Products 6,581 7,550 -13% -3% 1% Process Automation 6,464 8,577 -25% -14% -11% Power Products 10,033 10,764 -7% 2%2% Power Systems 6,800 6,871 -1% 13%13% Corporate and Other (incl. inter-division eliminations) (2,806) (2,671) Order backlog (end December)ABB Group 24,121 24,900 -3% 5%5% Discrete Automation and Motion 4,232 4,385 -3% 3%3% Low Voltage Products 857 891 -4% 6%6% Process Automation 5,203 5,661 -8% 2%3% Power Products 7,717 7,791 -1% 7%7% Power Systems 8,218 8,246 0%8%8% Corporate and Other (incl. inter-division eliminations) (2,074) (2,106) RevenuesABB Group 35,481 39,830 -11% -1% 0% Discrete Automation and Motion 9,127 10,142 -10% -2% -2% Low Voltage Products 6,547 7,532 -13% -3% 0% Process Automation 6,374 7,948 -20% -9% -5% Power Products 9,550 10,333 -8% 2%2% Power Systems 6,342 7,020 -10% 2%2% Corporate and Other (incl. inter-division eliminations) (3,145) (2,459) Operational EBITAABB Group 4,169 4,475 -7% 2%3% Discrete Automation and Motion 1,271 1,589 -20% -13% -13% Low Voltage Products 1,096 1,241 -12% -1% 2% Process Automation 755 958 -21% -13% -11% Power Products 1,178 1,319 -11% -3% -3% Power Systems 274 (96) n.a.n.a.n.a. Corporate and Other (incl. inter-division eliminations) (536) (405) Operational EBITA %ABB Group 11.8% 11.2% Discrete Automation and Motion 13.9% 15.7% Low Voltage Products 16.8% 16.4% Process Automation 11.8% 12.0% Power Products 12.3% 12.7% Power Systems 4.4% -1.3% Income from operations ABB Group 3,049 4,178 Discrete Automation and Motion 991 1,422 Low Voltage Products 909 1,475 Process Automation 593 1,003 Power Products 1,051 1,204 Power Systems 110 (360) Corporate and Other (incl. inter-division eliminations) (566) (605) Income from operations %ABB Group 8.6% 10.5% Discrete Automation and Motion 10.9% 14.0% Low Voltage Products 13.9% 19.6% Process Automation 9.3% 12.6% Power Products 11.0% 11.7% Power Systems 1.7% -5.1% Cash flow from operating activitiesABB Group 3,818 3,845 Discrete Automation and Motion 1,232 1,564 Low Voltage Products 981 997 Process Automation 607 945 Power Products 1,174 1,091 Power Systems 458 (138) Corporate and Other (634) (614)

Operat ion al EBITA Discrete Automation and Motion Low Voltage Products Process Automation Power Products Power Systems ($ in millions, unless otherwise indicated) ABB Discrete Automation and Motion Low Voltage Products Process Automation Power Products Power Systems ($ in millions, unless otherwise indicated) ABB (1) Amounts also include the incremental implementation costs in relation to the White Collar Productivity program. Depreciation and Amortization Discrete Automation and Motion Low Voltage Products Process Automation Power Products Power Systems ($ in millions, unless otherwise indicated) ABB Discrete Automation and Motion Low Voltage Products Process Automation Power Products Power Systems ($ in millions, unless otherwise indicated) ABB Q4 2015 Financial Informat ion 6 FY 15 FY 14 FY 15 FY 14 FY 15 FY 14 FY 15 FY 14 FY 15 FY 14 FY 15 FY 14 Depreciation 764 851 149 161 163 182 57 68 175 194 75 87 Amortization 396 454 146 148 108 119 18 20 16 23 63 88 including total acquisition-related amortization of 310 380 128 138 100 113 12 17 10 17 43 74 Q4 15 Q4 14 Q4 15 Q4 14 Q4 15 Q4 14 Q4 15 Q4 14 Q4 15 Q4 14 Q4 15 Q4 14 Depreciation 192 211 39 39 40 46 14 16 43 49 19 20 Amortization 96 106 36 36 27 28 4 5 4 4 13 19 including total acquisition-related amortization of 73 90 32 34 24 26 3 6 3 3 8 16 Operational EBITA margin (%) 11.8% 11.2% 13.9% 15.7% 16.8% 16.4% 11.8% 12.0% 12.3% 12.7% 4.4% -1.3% Income (loss) from operations 3,049 4,178 991 1,422 909 1,475 593 1,003 1,051 1,204 110 (360) Acquisition-related amortization 310 380 128 138 100 113 12 17 10 17 43 74 Restructuring and restructuring-related expenses(1) 235 25 45 43 51 63 674 125 101 112 105 96 Gains and losses from sale of businesses, acquisition-related expenses and certain non-operational items (482) – (407) (113) 16 12 120 26 3 11 4 35 FX/commodity timing differences in income from operations 164 4 15 8 31 115 16 1 (17) 27 8 (10) Operational EBITA 4,169 4,475 1,271 1,589 1,096 1,241 755 958 1,178 1,319 274 (96) FY 15 FY 14 FY 15 FY 14 FY 15 FY 14 FY 15 FY 14 FY 15 FY 14 FY 15 FY 14 Revenues 35,481 39,830 9,127 10,142 6,547 7,532 6,374 7,948 9,550 10,333 6,342 7,020 FX/commodity timing differences in total revenues 213 (5) 14 10 24 169 (28) 4 (11) 23 9 (54) Operational revenues 35,453 40,043 9,131 10,137 6,536 7,546 6,397 7,958 9,559 10,357 6,288 7,189 Operational EBITA margin (%) 11.7% 11.1% 12.2% 15.6% 16.5% 17.1% 11.9% 12.5% 12.9% 12.7% 7.5% 1.3% Income (loss) from operations 347 1,049 134 357 153 267 85 353 227 330 45 (47) Acquisition-related amortization 73 90 32 34 24 26 3 6 3 3 8 16 Restructuring and restructuring-related expenses(1) 93 11 16 17 16 29 531 81 88 88 75 80 Gains and losses from sale of businesses, acquisition-related expenses and certain non-operational items (122) – (12) (122) 6 2 76 26 3 – 1 1 FX/commodity timing differences in income from operations 43 1 10 9 5 26 54 6 – 25 23 (4) Operational EBITA 1,081 1,153 279 403 268 307 201 263 329 360 130 26 Q4 15 Q4 14 Q4 15 Q4 14 Q4 15 Q4 14 Q4 15 Q4 14 Q4 15 Q4 14 Q4 15 Q4 14 Revenues 9,242 10,346 2,288 2,583 1,624 1,793 1,674 2,094 2,544 2,825 1,755 1,965 FX/commodity timing differences in total revenues (4) 66 4 3 (4) 3 14 16 7 5 (27) 38 Operational revenues 9,238 10,412 2,292 2,586 1,620 1,796 1,688 2,110 2,551 2,830 1,728 2,003

Orders received and revenues by region ($ in millions, unless otherwise indicated) Orders received Change Revenues Change Change Change ($ in millions, unless otherwise indicated) Orders received Revenues Q4 2015 F inan cial Informat ion 7 FY 14 Com-US$Local parable FY 14 Com-US$Local parable FY 15 FY 15 Europe 12,568 14,319 -12% 5%7% 11,602 13,745 -16% 1%2% The Americas 10,505 11,966 -12% -6% -4% 10,554 11,490 -8% -2% 1% Asia, Middle East and Africa 13,356 15,230 -12% -7% -6% 13,325 14,595 -9% -2% -1% ABB Group 36,429 41,515 -12% -2% -1% 35,481 39,830 -11% -1% 0% Q4 14 Com-US$Local parable Q4 14 Com-US$Local parable Q4 15 Q4 15 Europe 2,888 3,128 -8% 7%7% 3,028 3,451 -12% 0%1% The Americas 2,491 2,696 -8% 0%1% 2,627 2,955 -11% -4% -3% Asia, Middle East and Africa 2,883 3,541 -19% -14% -13% 3,587 3,940 -9% -3% -2% ABB Group 8,262 9,365 -12% -3% -2% 9,242 10,346 -11% -2% -1%

Interim Consolidated Financial Information ABB Ltd Interim Consolidated Income Statements (unaudited) See Notes to the Interim Consolidated Financial Information Q4 2015 inan cial Informat ion 8 ($ in millions, except per share data in $) Year ended Three months ended Dec. 31, 2015 Dec. 31, 2014 Dec. 31, 2015 Dec. 31, 2014 Sales of products 29,477 33,279 7,599 8,545 Sales of services 6,004 6,551 1,643 1,801 Total revenues 35,481 39,830 9,242 10,346 Cost of products (21,694) (24,506) (5,820) (6,357) Cost of services (3,653) (4,109) (1,027) (1,148) Total cost of sales (25,347) (28,615) (6,847) (7,505) Gross profit 10,134 11,215 2,395 2,841 Selling, general and administrative expenses (5,574) (6,067) (1,580) (1,497) Non-order related research and development expenses (1,406) (1,499) (408) (387) Other income (expense), net (105) 529 (60) 92 Income from operations 3,049 4,178 347 1,049 Interest and dividend income 77 80 21 23 Interest and other finance expense (286) (362) (63) (107) Income from continuing operations before taxes 2,840 3,896 305 965 Provision for taxes (788) (1,202) (66) (264) Income from continuing operations, net of tax 2,052 2,694 239 701 Income from discontinued operations, net of tax 3 24 1 14 Net income 2,055 2,718 240 715 Net income attributable to noncontrolling interests (122) (124) (36) (35) Net income attributable to ABB 1,933 2,594 204 680 Amounts attributable to ABB shareholders: Income from continuing operations, net of tax 1,930 2,570 203 666 Net income 1,933 2,594 204 680 Basic earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax 0.87 1.12 0.09 0.29 Net income 0.87 1.13 0.09 0.30 Diluted earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax 0.87 1.12 0.09 0.29 Net income 0.87 1.13 0.09 0.30 Weighted-average number of shares outstanding (in millions) used to compute: Basic earnings per share attributable to ABB shareholders 2,226 2,288 2,203 2,266 Diluted earnings per share attributable to ABB shareholders 2,230 2,295 2,206 2,272

ABB Ltd Interim Condensed Consolidated Statements of Comprehensive Income (unaudited) See Notes to the Interim Consolidated Financial Information Q4 2015 F inan cial Informat ion 9 ($ in millions) Year ended Three months ended Dec. 31, 2015 Dec. 31, 2014 Dec. 31, 2015 Dec. 31, 2014 Total comprehensive income (loss), net of tax 1,416 480 254 (486) Total comprehensive income attributable to noncontrolling interests, net of tax (100) (115) (27) (36) Total comprehensive income (loss) attributable to ABB shareholders, net of tax 1,316 365 227 (522)

ABB Ltd Interim Consolidated Balance Sheets (unaudited) See Notes to the Interim Consolidated Financial Information Q4 2015 F inan cial Informat ion 10 ($ in millions, except share data) Dec. 31, 2015 Dec. 31, 2014 Cash and equivalents 4,565 5,443 Marketable securities and short-term investments 1,633 1,325 Receivables, net 10,061 11,078 Inventories, net 4,757 5,376 Prepaid expenses 225 218 Deferred taxes 881 902 Other current assets 638 644 Total current assets 22,760 24,986 Property, plant and equipment, net 5,276 5,652 Goodwill 9,671 10,053 Other intangible assets, net 2,337 2,702 Prepaid pension and other employee benefits 68 70 Investments in equity-accounted companies 178 177 Deferred taxes 423 511 Other non-current assets 643 701 Total assets 41,356 44,852 Accounts payable, trade 4,342 4,765 Billings in excess of sales 1,375 1,455 Short-term debt and current maturities of long-term debt 1,454 353 Advances from customers 1,598 1,624 Deferred taxes 249 289 Provisions for warranties 1,089 1,148 Other provisions 1,920 1,689 Other current liabilities 3,817 4,257 Total current liabilities 15,844 15,580 Long-term debt 5,985 7,312 Pension and other employee benefits 1,924 2,394 Deferred taxes 965 1,165 Other non-current liabilities 1,650 1,586 Total liabilities 26,368 28,037 Commitments and contingencies Stockholders’ equity: Capital stock and additional paid-in capital (2,314,743,264 issued shares at December 31, 2015 and 2014) 1,777 1,444 Retained earnings 20,476 19,939 Accumulated other comprehensive loss (4,858) (4,241) Treasury stock, at cost (123,118,123 and 55,843,639 shares at December 31, 2015 and 2014, respectively) (1,206) (2,581) Total ABB stockholders’ equity 14,481 16,269 Noncontrolling interests 507 546 Total stockholders’ equity 14,988 16,815 Total liabilities and stockholders’ equity 41,356 44,852

ABB Ltd Interim Consolidated Statements of Cash Flows (unaudited) See Notes to the Interim Consolidated Financial Information Q4 2015 F inan cial Informat ion 11 ($ in millions) Year ended Three months ended Dec. 31, 2015 Dec. 31, 2014 Dec. 31, 2015 Dec. 31, 2014 Operating activities: Net income 2,055 2,718 240 715 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,160 1,305 288 317 Pension and other employee benefits 56 16 5 21 Deferred taxes (219) 65 (193) 31 Net loss (gain) from sale of property, plant and equipment (26) (17) (5) (2) Net loss (gain) from sale of businesses 20 (543) 1 (98) Net loss (gain) from derivatives and foreign exchange 15 167 53 31 Other 99 112 20 45 Changes in operating assets and liabilities: Trade receivables, net 162 (12) 363 337 Inventories, net 105 (176) 509 336 Trade payables (112) 257 16 75 Accrued liabilities (24) 9 (2) (43) Billings in excess of sales 35 (118) (55) (51) Provisions, net 330 (127) 487 47 Advances from customers 106 39 112 62 Income taxes payable and receivable (32) (13) 41 (185) Other assets and liabilities, net 88 163 114 195 Net cash provided by operating activities 3,818 3,845 1,994 1,833 Investing activities: Purchases of marketable securities (available-for-sale) (1,925) (1,430) (827) (594) Purchases of short-term investments (614) (1,465) (68) (432) Purchases of property, plant and equipment and intangible assets (876) (1,026) (329) (384) Acquisition of businesses (net of cash acquired) and increases in cost-and equity-accounted companies (70) (47) (56) (12) Proceeds from sales of marketable securities (available-for-sale) 434 361 55 274 Proceeds from maturity of marketable securities (available-for-sale) 1,022 523 395 288 Proceeds from short-term investments 653 1,011 25 684 Proceeds from sales of property, plant and equipment 68 33 24 7 Proceeds from sales of businesses (net of transaction costs and cash disposed) and cost-and equity-accounted companies 1,110 119 69 – Net cash from settlement of foreign currency derivatives 231 (179) 23 (181) Other investing activities 20 11 5 7 Net cash used in investing activities (974) (1,121) (709) (259) Financing activities: Net changes in debt with original maturities of 90 days or less 3 (103) (72) (94) Increase in debt 68 150 13 19 Repayment of debt (101) (90) (23) (39) Delivery of shares 107 38 – 12 Purchase of treasury stock (1,487) (1,003) (439) (542) Dividends paid (1,357) (1,841) – – Reduction in nominal value of common shares paid to shareholders (392) – – – Dividends paid to noncontrolling shareholders (137) (132) (6) (6) Other financing activities (84) (43) (66) (16) Net cash used in financing activities (3,380) (3,024) (593) (666) Effects of exchange rate changes on cash and equivalents (342) (278) (97) (98) Net change in cash and equivalents – continuing operations (878) (578) 595 810 Cash and equivalents, beginning of period 5,443 6,021 3,970 4,633 Cash and equivalents, end of period 4,565 5,443 4,565 5,443 Supplementary disclosure of cash flow information: Interest paid 221 259 70 84 Taxes paid 1,043 1,155 207 409

ABB Ltd Interim Consolidated Statements of Changes in Stockholders’ Equity (unaudited) ($ in millions) Balance at January 1, 2014 1,750 19,186 (431) 7 (1,610) 22 (2,012) (246) 18,678 530 19,208 Comprehensive income: Net income 2,594 2,594 124 2,718 Foreign currency translation adjustments, net of tax of $(11) (1,671) (1,671) (1,671) (9) (1,680) Effect of change in fair value of available-for-sale securities, net of tax of $1 6 6 6 6 Unrecognized income (expense) related to pensions and other postretirement plans, net of tax of $(193) (521) (521) (521) (521) Change in derivatives qualifying as cash flow hedges, net of tax of $(12) (43) (43) (43) (43) Total comprehensive income 365 115 480 Changes in noncontrolling interests (34) (34) 33 (1) Dividends paid to noncontrolling shareholders – (132) (132) Dividends paid (1,841) (1,841) (1,841) Share-based payment arrangements 73 73 73 Purchase of treasury stock (1,015) (1,015) (1,015) Delivery of shares (17) 55 38 38 Call options 5 5 5 Balance at December 31, 2014 1,777 19,939 (2,102) 13 (2,131) (21) (4,241) (1,206) 16,269 546 16,815 Balance at January 1, 2015 1,777 19,939 (2,102) 13 (2,131) (21) (4,241) (1,206) 16,269 546 16,815 Comprehensive income: Net income 1,933 1,933 122 2,055 Foreign currency translation adjustments, net of tax of $(47) (1,033) (1,033) (1,033) (25) (1,058) Effect of change in fair value of available-for-sale securities, net of tax of $(1) (6) (6) (6) (6) Unrecognized income (expense) related to pensions and other postretirement plans, net of tax of $140 412 412 412 3 415 Change in derivatives qualifying as cash flow hedges, net of tax of $3 10 10 10 10 Total comprehensive income 1,316 100 1,416 Changes in noncontrolling interests (30) (25) (55) (2) (57) Dividends paid to noncontrolling shareholders – (137) (137) Dividends paid (1,317) (1,317) (1,317) Reduction in nominal value of common shares paid to shareholders (349) (54) (403) (403) Share-based payment arrangements 61 61 61 Purchase of treasury stock (1,501) (1,501) (1,501) Delivery of shares (19) 126 107 107 Call options 4 4 4 Balance at December 31, 2015 1,444 20,476 (3,135) 7 (1,719) (11) (4,858) (2,581) 14,481 507 14,988 See Notes to the Interim Consolidated Financial Information

Notes to the Interim Consolidated Financial Information (unaudited) Note 1 The Company and basis of presentation ABB Ltd and its subsidiaries (collectively, the Company) together form a leading global technology company in power and automation that enables utility, industry, and transport & infrastructure customers to improve their performance while lowering environmental impact. The Company works with customers to engineer and install networks, facilities and plants with particular emphasis on enhancing efficiency, reliability and productivity for customers who generate, convert, transmit, distribute and consume energy. The Company’s Interim Consolidated Financial Information is prepared in accordance with United States of America generally accepted accounting principles (U.S. GAAP) for interim financial reporting. As such, the Interim Consolidated Financial Information does not include all the information and notes required under U.S. GAAP for annual consolidated financial statements. Therefore, such financial information should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report for the year ended December 31, 2014. The preparation of financial information in conformity with U.S. GAAP requires management to make assumptions and estimates that directly affect the amounts reported in the Interim Consolidated Financial Information. The most significant, difficult and subjective of such accounting assumptions and estimates include: - assumptions and projections, principally related to future material, labor and project-related overhead costs, used in determining the percentage-of-completion on projects, - estimates of loss contingencies associated with litigation or threatened litigation and other claims and inquiries, environmental damages, product warranties, self-insurance reserves, regulatory and other proceedings, - assumptions used in the calculation of pension and postretirement benefits and the fair value of pension plan assets, - recognition and measurement of current and deferred income tax assets and liabilities (including the measurement of uncertain tax positions), - growth rates, discount rates and other assumptions used in testing goodwill for impairment, - assumptions used in determining inventory obsolescence and net realizable value, - estimates and assumptions used in determining the fair values of assets and liabilities assumed in business combinations, - growth rates, discount rates and other assumptions used to determine impairment of long-lived assets, and - assessment of the allowance for doubtful accounts. The actual results and outcomes may differ from the Company’s estimates and assumptions. A portion of the Company’s activities (primarily long-term construction activities) has an operating cycle that exceeds one year. For classification of current assets and liabilities related to such activities, the Company elected to use the duration of the individual contracts as its operating cycle. Accordingly, there are accounts receivable, inventories and provisions related to these contracts which will not be realized within one year that have been classified as current. In the opinion of management, the unaudited Interim Consolidated Financial Information contains all necessary adjustments to present fairly the financial position, results of operations and cash flows for the reported interim periods. Management considers all such adjustments to be of a normal recurring nature. The Interim Consolidated Financial Information is presented in United States dollars ($) unless otherwise stated. Certain amounts have been reclassified from Other non-current assets to Long-term debt in the Consolidated Balance Sheet at December 31, 2014, as a result of the early adoption of an accounting standard update on the presentation of debt issuance costs (see Note 2). In the Consolidated Statements of Cash Flows certain amounts reported for prior periods in the Interim Consolidated Financial Information have been reclassified to conform to the current period presentation. These reclassifications were within Net cash provided by operating activities. Note 2 Recent accounting pronouncements Applicable for current periods Simplifying the presentation of debt issuance costs In April 2015, an accounting standard update was issued to simplify the presentation of debt issuance costs. Under the update, the Company presents debt issuance costs related to a recognized debt liability in the balance sheet as a direct deduction from the carrying amount of that debt liability rather than as a non-current asset. The existing recognition and measurement guidance for debt issuance costs is not affected by this accounting standard update. In August 2015, an accounting standard update was issued to clarify that the Company may elect to present debt issuance costs related to a line-of-credit arrangement as an asset, regardless of whether or not there are any borrowings outstanding on the line-of-credit arrangement. The Company has elected to early adopt both updates. In connection with the adoption of the updated accounting standards, the Company reclassified deferred debt issuance costs of $26 million from "Other non-current assets" to "Long-term debt" at December 31, 2014, and has elected to continue to present debt issuance costs related to revolving credit facilities as an asset. Simplifying the accounting for measurement-period adjustments In September 2015, an accounting standard update was issued to simplify the accounting for measurement-period adjustments in a business combination by eliminating the requirement to restate prior period financial statements for measurement-period adjustments. Under the update, the Company is required to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, including the cumulative effect of the change in provisional amount as if the accounting had been completed at the acquisition date. The adjustments related to previous reporting periods since the acquisition date must be disclosed by income statement line item either on the face of the income statement or in the notes. The Company has elected to early adopt this update in the third quarter of 2015. The update is applied prospectively to measurement period adjustments that occur after the effective date. This update did not have a material impact on the consolidated financial statements.

Applicable for future periods Revenue from contracts with customers In May 2014, an accounting standard update was issued to clarify the principles for recognizing revenues from contracts with customers. The update, which supersedes substantially all existing revenue recognition guidance, provides a single comprehensive model for recognizing revenues on the transfer of promised goods or services to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Under the standard it is possible that more judgments and estimates would be required than under existing standards, including identifying the separate performance obligations in a contract, estimating any variable consideration elements, and allocating the transaction price to each separate performance obligation. The update also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the effective date for the update was deferred and the update is now effective for the Company for annual and interim periods beginning January 1, 201 8, and is to be applied either (i) retrospectively to each prior reporting period presented, with the option to elect certain defined practical expedients, or (ii) retrospectively with the cumulative effect of initially applying the update recognized at the date of adoption in retained earnings (with additional disclosure as to the impact on individual financial statement lines affected). Early adoption of the standard is permitted for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of this update on its consolidated financial statements. Disclosures for investments in certain entities that calculate net asset value per share (or its equivalent) In May 2015, an accounting standard update was issued re garding fair value disclosures for certain investments. Under the update, the Company would no longer categorize within the fair value hierarchy investments for which fair value is measured using the net asset value per share practical expedient. The amend ments also remove the requirement to make certain disclosures for investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the Company has elected to measure the fair value using that practical expedient. This update is effective for the Company for annual and interim periods beginning January 1, 2016, with early adoption permitted, and is applicable retrospectively. The Company does not believe that this update will have a significant impact on its consolidated financial statements. Simplifying the measurement of inventory In July 2015, an accounting standard update was issued to simplify the subsequent measurement of inventories by replacing the current lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company will early adopt this update in the first quarter of 2016 and apply it prospectively. The Company does not believe that this update will have a significant impact on its consolidated financial statements. Balance sheet classification of deferred taxes In November 2015, an accounting standard update was issued which removes the requirement to separate deferred tax liabilities and assets into current and noncurrent amounts and instead requires all such amounts, as well as any related valuation allowance, to be classified as noncurrent in the balance sheet. This update is effective for the Company for annual and interim periods beginning January 1, 2017, with early adoption permitted, and is applicable either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented . The Company is currently evaluating which transition method it will adopt and the impact of this update on its consolidated financial statements. Recognition and measurement of financial assets and financial liabilities In January 2016, an accounting standard update was issued to enhance the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. Amongst others, the Company would be required to measure equity investments (except those accounted for under the equity method) at fair value with changes in fair value recognized in net income and to present separately financial assets and financial liabilities by measurement category and form of financial asset . This update is effective for the Company for annual and interim periods beginning January 1, 2018, with early adoption permitted for certain provisions. The Company is currently evaluating the impact of this update on its consolidated financial statements. Note 3 Bus ines s d ivest ments For the year and three months ended December 31, 2014, the Company recorded net gains of $543 million and $98 million, respectively, in “Other income (expense), net” and an associated tax expense of $279 million and $40 million, respectively, in “Provision for taxes”, relating to the divestment of consolidated businesses. In the year and three months ended December 31, 2015, there were no significant amounts recognized from the divestments of consolidated businesses. Q4 2015 Financial Information 14

Note 4 Cash and equivalents, marketable securities and short-term investments Current assets Cash and equivalents, marketable securities and short-term investments consisted of the following: December 31, 2015 December 31, 2014 Included in Other short-term investments at December 31, 2015 and 2014, are receivables of $224 million and $219 million, respectively, representing reverse repurchase agreements. These collateralized lendings, made to a financial institution, have maturity dates of less than one year. Non-current assets Included in “Other non-current assets” are certain held-to-maturity marketable securities. At December 31, 2015, the amortized cost, gross unrecognized gain and fair value (based on quoted market prices) of these securities were $99 million, $11 million and $110 million, respectively. At December 31, 2014, the amortized cost, gross unrecognized gain and fair value (based on quoted market prices) of these securities were $95 million, $14 million and $109 million, respectively. These securities are pledged as security for certain outstanding deposit liabilities and the funds received at the respective maturity dates of the securities will only be available to the Company for repayment of these obligations. Note 5 Derivative financial instruments The Company is exposed to certain currency, commodity, interest rate and equity risks arising from its global operating, financing and investing activities. The Company uses derivative instruments to reduce and manage the economic impact of these exposures. Currency risk Due to the global nature of the Company’s operations, many of its subsidiaries are exposed to currency risk in their operating activities from entering into transactions in currencies other than their functional currency. To manage such currency risks, the Company’s policies require the subsidiaries to hedge their foreign currency exposures from binding sales and purchase contracts denominated in foreign currencies. For forecasted foreign cur rency denominated sales of standard products and the related foreign currency denominated purchases, the Company’s policy is to hedge up to a maximum of 100 percent of the forecasted foreign currency denominated exposures, depending on the length of the forecasted exposures. Forecasted exposures greater than 12 months are not hedged. Forward foreign exchange contracts are the main instrument used to protect the Company against the volatility of future cash flows (caused by changes in exchange rates) of cont racted and forecasted sales and purchases denominated in foreign currencies. In addition, within its treasury operations, the Company primarily uses foreign exchange swaps and forward foreign exchange contracts to manage the currency and timing mismatches arising in its liquidity management activities. Commodity risk Various commodity products are used in the Company’s manufacturing activities. Consequently it is exposed to volatility in future cash flows arising from changes in commodity prices. To manage the price risk of commodities, the Company’s policies require that the subsidiaries hedge the commodity price risk exposures from binding contracts, as well as at least 50 percent (up to a maximum of 100 percent) of the forecasted commodity exposure over the next 12 months or longer (up to a maximum of 18 months). Primarily swap contracts are used to manage the associated price risks of commodities. Q4 2015 Financial Information 15 ($ in millions) Gross Gross unrealized unrealized Cost basis gains losses Fair value Cash and equivalents Marketable securities and short-term investments Cash 2,218 2,218 2,218 – Time deposits3,340 3,340 3,140 200 Other short-term investments 225 225 – 225 Debt securities available-for-sale: U.S. government obligations 135 2 (1) 136 – 136 Other government obligations 2 –– 2 – 2 Corporate734 4 (1) 737 85 652 Equity securities available-for-sale 98 12 – 110 – 110 Total 6,752 18 (2) 6,768 5,443 1,325 ($ in millions) GrossGross unrealized unrealized Cost basisgainslosses Fair value Cash and equivalents Marketable securities and short-term investments Cash1,837 1,837 1,837 – Time deposits 2,821 2,821 2,717 104 Other short-term investments 231 231 – 231 Debt securities available-for-sale: U.S. government obligations 120 2 (1) 121 – 121 Other government obligations 2 –– 2 – 2 Corporate519 1 (1) 519 11 508 Equity securities available-for-sale 658 9 – 667 – 667 Total 6,188 12 (2) 6,198 4,565 1,633

Interest rate risk The Company has issued bonds at fixed rates. Interest rate swaps are used to manage the interest rate risk associated with certain debt and generally such swaps are designated as fair value hedges. In addition, from time to time, the Company uses instruments such as interest rate swaps, interest rate futures, bond futures or forward rate agreements to manage interest rate risk arising from the Company’s balance sheet structure but does not designate such instruments as hedges. Equity risk The Company is exposed to fluctuations in the fair value of its warrant appreciation rights ( WARs) issued under its management incentive plan. A WAR gives its holder the right to receive cash equal to the market price of an equivalent listed warrant on the date of exercise. To eliminate such risk, the Company has purchased cash-settled call options, indexed to the shares of the Company, which entitle the Company to receive amounts equivalent to its obligations under the outstanding WARs. Volume of derivative activity In general, while the Company’s primary objective in its use of derivatives is to minimize exposures arising from its business, certain derivatives are designated and qualify for hedge accounting treatment while others either are not designated or do not qualify for hedge accounting. Foreign exchange and interest rate derivatives The gross notional amounts of outstanding foreign exchange and interest rate derivatives (whether designated as hedges or not) were as follows: Type of derivative Total notional amounts Derivative commodity contracts The following table shows the notional amounts of outstanding commodity derivatives (whether designated as hedges or not), on a net basis, to reflect the Company’s requirements in the various commodities: Type of derivative Unit Total notional amounts Equity derivatives At December 31, 2015 and 2014, the Company held 55 million and 61 million cash-settled call options indexed to ABB Ltd shares (conversion ratio 5:1) with a total fair value of $13 million and $33 million, respectively. Cash flow hedges As noted above, the Company mainly uses forward foreign exchange contracts to manage the foreign exchange risk of its operations, commodity swaps to manage its commodity risks and cash-settled call options to hedge its WAR liabilities. Where such instruments are designated and qualify as cash flow hedges, the effective portion of the changes in their fair value is recorded in “Accumulated other comprehensive loss” and subsequently reclassified into earnings in the same line item and in the same period as the underlying hedged transaction affects earnings. Any ineffectiveness in the hedge relationship, or hedge component excluded from the assessment of effectiveness, is recognized in earnings during the current period. At December 31, 2015 and 2014, “Accumulated other comprehensive loss” included net unrealized losses of $11 million and $21 million, respectively, net of tax, on derivatives designated as cash flow hedges. Of the amount at December 31, 2015, net losses of $2 million are expected to be reclassified to earnings in the following 12 months. At December 31, 2015, the longest maturity of a derivative classified as a cash flow hedge was 51 months. The amount of gains or losses, net of tax, reclassified into earnings due to the discontinuance of cash flow hedge accounting and the amount of ineffectiveness in cash flow hedge relationships directly recognized in earnings were not significant in the year and three months ended December 31, 2015 and 2014. Q4 2015 Financial Information 16 December 31, 2015 December 31, 2014 Copper swapsmetric tonnes 48,903 46,520 Aluminum swapsmetric tonnes 5,455 3,846 Nickel swapsmetric tonnes 18 – Lead swapsmetric tonnes 14,625 6,550 Zinc swapsmetric tonnes 225 200 Silver swapsounces 1,727,255 1,996,845 Crude oil swapsbarrels 133,500 128,000 ($ in millions) December 31, 2015 December 31, 2014 Foreign exchange contracts 16,467 18,564 Embedded foreign exchange derivatives 2,966 3,013 Interest rate contracts 4,302 2,242

The pre-tax effects of derivative instruments, designated and qualifying as cash flow hedges, on “Accumulated other comprehensive loss” (OCI) and the Consolidated Income Statements were as follows: (1) SG&A expenses represent “Selling, general and administrative expenses”. Net derivative losses of $30 million and $9 million, both net of tax, respectively, were reclassified from “Accumulated other comprehensive loss” to earnings during the year ended December 31, 2015 and 2014, respectively. During the three months ended December 31, 2015 and 2014, net derivative loss es of $2 million and $6 million, both net of tax, respectively, were reclassified from “Accumulated other comprehensive loss” to earnings. Fair value hed ges To reduce its interest rate exposure arising primarily from its debt issuance activities, the Company uses interest rate swaps. Where such instruments are designated as fair value hedges, the changes in the fair value of these instruments, as well as the changes in the fair value of the risk component of the underlying debt being hedged, are recorded as offsetting gains and losses in “Interest and other finance expense”. Hedge ineffectiveness of instruments designated as fair value hedges for the year and three months ended December 31, 2015 and 2014, was not significant. Q4 2015 Financial Information 17 Type of derivative designated as a cash flow hedge Three months ended December 31, 2014 Gains (losses) recognized in OCI on derivatives (effective portion) Gains (losses) reclassified from OCI into income (effective portion) Gains (losses) recognized in income (ineffective portion and amount excluded from effectiveness testing) ($ in millions) Location ($ in millions) Location ($ in millions) Foreign exchange contracts 4 Total revenues (6) Total cost of sales 1 Total revenues– Total cost of sales– Commodity contracts (3) Total cost of sales (1) Total cost of sales– Cash-settled call options (3) SG&A expenses (1)(1) SG&A expenses(1)– Total (2) (7) – Type of derivative designated as a cash flow hedge Three months ended December 31, 2015 Gains (losses) recognized in OCI on derivatives (effective portion) Gains (losses) reclassified from OCI into income (effective portion) Gains (losses) recognized in income (ineffective portion and amount excluded from effectiveness testing) ($ in millions) Location ($ in millions) Location ($ in millions) Foreign exchange contracts (4) Total revenues (5) Total cost of sales 3 Total revenues– Total cost of sales– Commodity contracts (3) Total cost of sales (3) Total cost of sales– Cash-settled call options 4 SG&A expenses (1) 2 SG&A expenses(1)– Total (3) (3) – Type of derivative designated as a cash flow hedge Year ended December 31, 2014 Gains (losses) recognized in OCI on derivatives (effective portion) Gains (losses) reclassified from OCI into income (effective portion) Gains (losses) recognized in income (ineffective portion and amount excluded from effectiveness testing) ($ in millions) Location ($ in millions) Location ($ in millions) Foreign exchange contracts (42) Total revenues (9) Total cost of sales 8 Total revenues– Total cost of sales– Commodity contracts (7) Total cost of sales (3) Total cost of sales– Cash-settled call options (16) SG&A expenses (1)(6) SG&A expenses(1)– Total (65) (10) – Type of derivative designated as a cash flow hedge Year ended December 31, 2015 Gains (losses) recognized in OCI on derivatives (effective portion) Gains (losses) reclassified from OCI into income (effective portion) Gains (losses) recognized in income (ineffective portion and amount excluded from effectiveness testing) ($ in millions) Location ($ in millions) Location ($ in millions) Foreign exchange contracts (11) Total revenues (36) Total cost of sales11 Total revenues– Total cost of sales– Commodity contracts (9) Total cost of sales (10) Total cost of sales– Cash-settled call options (6) SG&A expenses (1)(4) SG&A expenses (1)– Total (26) (39) –

The effect of derivative instruments, designated and qualifying as fair value hedges, on the Consolidated Income Statements was as follows: Derivatives not designated in hedge relationships Derivative instruments that are not designated as hedges or do not qualify as either cash flow or fair value hedges are economic hedges used for risk management purposes. Gains and losses from changes in the fair values of such derivatives are recognized in the same line in the income statement as the economically hedged transaction. Furthermore, under certain circumstances, the Company is required to split and account separately for foreign currency derivatives that are embedded within certain binding sales or purchase contracts denominated in a currency other than the functional currency of the subsidiary and the counterparty. The gains (losses) recognized in the Consolidated Income Statements on derivatives not designated in hedging relationships were as follows: (1) SG&A expenses represent “Selling, general and administrative expenses”. Q4 2015 F inan cial Informat ion 18 Type of derivative not designated as a hedge ($ in millions) Gains (losses) recognized in income Location Year ended December 31, Three months ended December 31, 2015 2014 2015 2014 Foreign exchange contracts Total revenues (216) (533) 10 (253) Total cost of sales 16 19 (40) 61 SG&A expenses(1) 13 2 4 3 Non-order related research and development – – (1) – Interest and other finance expense 287 (260) 39 (67) Embedded foreign exchange contracts Total revenues 127 149 (11) 111 Total cost of sales (25) (27) (1) (20) SG&A expenses(1) (5) – (3) – Commodity contracts Total cost of sales (61) (28) (14) (14) Interest and other finance expense 1 1 – – Interest rate contracts Interest and other finance expense (1) (1) 2 – Cash-settled call options Interest and other finance expense – (1) – – Cross-currency interest rate swaps Interest and other finance expense (1) – (1) – Total 134 (679) (15) (179) Type of derivative designated as a fair value hedge Three months ended December 31, 2014 Gains (losses) recognized in income on derivatives designated as fair value hedges Gains (losses) recognized in income on hedged item Location ($ in millions) Location ($ in millions) Interest rate contracts Interest and other finance expense 34 Interest and other finance expense (34) Type of derivative designated as a fair value hedge Three months ended December 31, 2015 Gains (losses) recognized in income on derivatives designated as fair value hedges Gains (losses) recognized in income on hedged item Location ($ in millions) Location ($ in millions) Interest rate contracts Interest and other finance expense (22) Interest and other finance expense 23 Type of derivative designated as a fair value hedge Year ended December 31, 2014 Gains (losses) recognized in income on derivatives designated as fair value hedges Gains (losses) recognized in income on hedged item Location ($ in millions) Location ($ in millions) Interest rate contracts Interest and other finance expense 84 Interest and other finance expense (83) Type of derivative designated as a fair value hedge Year ended December 31, 2015 Gains (losses) recognized in income on derivatives designated as fair value hedges Gains (losses) recognized in income on hedged item Location ($ in millions) Location ($ in millions) Interest rate contracts Interest and other finance expense 8 Interest and other finance expense (4)

The fair values of derivatives included in the Consolidated Balance Sheets were as follows: December 31, 2015 Derivative assets Derivative liabilities Current in Non-current in Current in Non-current in “Other current “Other non-current “Other current “Other non-current ($ in millions) assets” assets” liabilities” liabilities” Derivatives designated as hedging instruments: Foreign exchange contracts 15 10 8 16 Commodity contracts – – 3 – Interest rate contracts 6 86 – – Cash-settled call options 8 5 – – Total 29 101 11 16 Derivatives not designated as hedging instruments: Foreign exchange contracts 172 32 237 81 Commodity contracts 2 – 29 9 Cross-currency interest rate swaps – – – 1 Embedded foreign exchange derivatives 94 53 41 27 Total 268 85 307 118 Total fair value 297 186 318 134 December 31, 2014 Derivative assets Derivative liabilities Current in Non-current in Current in Non-current in “Other current “Other non-current “Other current “Other non-current ($ in millions) assets” assets” liabilities” liabilities” Derivatives designated as hedging instruments: Foreign exchange contracts 9 9 20 16 Commodity contracts – – 3 – Interest rate contracts – 85 – – Cash-settled call options 21 11 – – Total 30 105 23 16 Derivatives not designated as hedging instruments: Foreign exchange contracts 156 25 369 72 Commodity contracts 4 – 19 3 Cash-settled call options 1 1 – – Embedded foreign exchange derivatives 98 58 27 17 Total 259 84 415 92 Total fair value 289 189 438 108 Close-out netting agreements provide for the termination, valuation and net settlement of some or all outstanding transactions between two counterparties on the occurrence of one or more pre-defined trigger events. Although the Company is party to close-out netting agreements with most derivative counterparties, the fair values in the tables above and in the Consolidated Balance Sheets at December 31, 2015 and 2014, have been presented on a gross basis. The Company’s netting agreements and other similar arrangements allow net settlements under certain conditions. At December 31, 2015 and 2014, information related to these offsetting arrangements was as follows: ($ in millions) December 31, 2015 Derivative liabilities Type of agreement or Gross amount of eligible for set-off in Cash collateral Non-cash collateral similar arrangement recognized assets case of default received received Net asset exposure Derivatives 336 (215) – – 121 Reverse repurchase agreements 224 – – (224) – Total 560 (215) – (224) 121

Note 6 Fair values The Company uses fair value measurement principles to record certain financial assets and liabilities on a recurring basis and, when necessary, to record certain non-financial assets at fair value on a non-recurring basis, as well as to determine fair value disclosures for certain financial instruments carried at amortized cost in the financial statements. Financial assets and liabilities recorded at fair value on a recurring basis include foreign currency, commodity and interest rate derivatives, as well as cash -settled call options and available-for-sale securities. Non-financial assets recorded at fair value on a non-recurring basis include long-lived assets that are reduced to their estimated fair value due to impairments. Fair value is the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determini ng fair value, the Company uses various valuation techniques including the market approach (using observable market data for identical or similar assets and liabilities), the income approach (discounted cash flow models) and the cost approach (using costs a market participant would incur to develop a comparable asset). Inputs used to determine the fair value of assets and liabilities are defined by a three-level hierarchy, depending on the reliability of those inputs. The Company has categorized its financial assets and liabilities and non -financial assets measured at fair value within this hierarchy based on whether the inputs to the valuation technique are observable or unobservable. An observable input is based on market data obtained from independent sources, while an unobservable input reflects the Company’s assumptions about market data. The levels of the fair value hierarchy are as follows: Level 1: Valuation inputs consist of quoted prices in an active market for identical assets or liabilities (obs ervable quoted prices). Assets and liabilities valued using Level 1 inputs include listed derivatives which are actively traded such as commodity futures, interest rate futures and certain actively -traded debt securities. Level 2: Valuation inputs consist of observable inputs (other than Level 1 inputs) such as actively-quoted prices for similar assets, quoted prices in inactive markets and inputs other than quoted prices such as interest rate yield curves, credit spreads, or inputs derived from other obse rvable data by interpolation, correlation, regression or other means. The adjustments applied to quoted prices or the inputs used in valuation models may be both observable and unobservable. In these cases, the fair value measurement is classified as Level 2 unless the unobservable portion of the adjustment or the unobservable input to the valuation model is significant, in which case the fair value measurement would be classified as Level 3. Assets and liabilities valued or disclosed using Level 2 inputs include investments in certain funds, reverse repurchase agreements, certain debt securities that are not actively traded, interest rate swaps, commodity swaps, cash-settled call options, forward foreign exchange contracts, foreign exchange swaps and forwa rd rate agreements, time deposits, as well as financing receivables and debt. Level 3: Valuation inputs are based on the Company’s assumptions of relevant market data (unobservable input). Whenever quoted prices involve bid-ask spreads, the Company ordinarily determines fair values based on mid-market quotes. However, for the purpose of determining the fair value of cash -settled call options serving as hedges of the Company’s management incentive plan, bid prices are used. When determining fair values based on quoted prices in an active market, the Company considers if the level of transaction activity for the financial instrument has significantly decreased, or would not be considered orderly. In such cases, the resulting changes in valuation techniques would be disclosed. If the market is considered disorderly or if quoted prices are not available, the Company is required to use another valuation technique, such as an income approach. Q4 2015 F inan cial Informat ion 20 ($ in millions) December 31, 2014 Type of agreement or similar arrangement Gross amount of recognized liabilities Derivative liabilities eligible for set-off in case of default Cash collateral pledged Non-cash collateral pledged Net liability exposure Derivatives 502 (216) (3) – 283 Total 502 (216) (3) – 283 ($ in millions) December 31, 2014 Type of agreement or similar arrangement Gross amount of recognized assets Derivative liabilities eligible for set-off in case of default Cash collateral received Non-cash collateral received Net asset exposure Derivatives 322 (216) – – 106 Reverse repurchase agreements 219 – – (219) – Total 541 (216) – (219) 106 ($ in millions) December 31, 2015 Type of agreement or similar arrangement Gross amount of recognized liabilities Derivative liabilities eligible for set-off in case of default Cash collateral pledged Non-cash collateral pledged Net liability exposure Derivatives 384 (215) (3) – 166 Total 384 (215) (3) – 166

Recurring fair value measures The fair values of financial assets and liabilities measured at fair value on a recurring basis were as follows: December 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Total fair value Assets Available-for-sale securities in “Cash and equivalents”: Debt securities—Corporate – 11 – 11 Available-for-sale securities in “Marketable securities and short-term investments”: Equity securities – 667 – 667 Debt securities—U.S. government obligations 121 – – 121 Debt securities—Other government obligations – 2 – 2 Debt securities—Corporate – 508 – 508 Derivative assets—current in “Other current assets” 1 296 – 297 Derivative assets—non-current in “Other non-current assets” – 186 – 186 Total 122 1,670 – 1,792 Liabilities Derivative liabilities—current in “Other current liabilities” 3 315 – 318 Derivative liabilities—non-current in “Other non-current liabilities” – 134 – 134 Total 3 449 – 452 December 31, 2014 ($ in millions) Level 1 Level 2 Level 3 Total fair value Assets Available-for-sale securities in “Cash and equivalents”: Debt securities—Corporate – 85 – 85 Available-for-sale securities in “Marketable securities and short-term investments”: Equity securities – 110 – 110 Debt securities—U.S. government obligations 136 – – 136 Debt securities—Other government obligations – 2 – 2 Debt securities—Corporate – 652 – 652 Derivative assets—current in “Other current assets” – 289 – 289 Derivative assets—non-current in “Other non-current assets” – 189 – 189 Total 136 1,327 – 1,463 Liabilities Derivative liabilities—current in “Other current liabilities” – 438 – 438 Derivative liabilities—non-current in “Other non-current liabilities” – 108 – 108 Total – 546 – 546 The Company uses the following methods and assumptions in estimating fair values of financial assets and liabilities measured at fair value on a recurring basis: - Available-for-sale securities in “Cash and equivalents” and “Marketable securities and short-term investments”: If quoted market prices in active markets for identical assets are available, these are considered Level 1 inputs; however, when markets are not active, these inputs are considered Level 2. If such quoted market prices are not available, fair value is determined using market prices for similar assets or present value techniques, applying an appropriate risk-free interest rate adjusted for nonperformance risk. The inputs used in present value techniques are observable and fall into the Level 2 category. - Derivatives: The fair values of derivative instruments are determined using quoted prices of identical instruments from an active market, if available (Level 1). If quoted prices are not available, price quotes for similar instruments, appropriately adjusted, or present value techniques, based on available market data, or option pricing models are used. Cash-settled call options hedging the Company’s WAR liability are valued based on bid prices of the equivalent listed warrant. The fair values obtained using price quotes for similar instruments or valuation techniques represent a Level 2 input unless significant unobservable inputs are used. Non-recurring fair value measures There were no significant non-recurring fair value measurements during the year and three months ended December 31, 2015 and 2014.

Disclosure about financial instruments carried on a cost basis The fair values of financial instruments carried on a cost basis were as follows: December 31, 2015 ($ in millions) Carrying value Level 1 Level 2 Level 3 Total fair value Assets Cash and equivalents (excluding available-for-sale securities with original maturities up to 3 months): Cash 1,837 1,837 – – 1,837 Time deposits 2,717 – 2,717 – 2,717 Marketable securities and short-term investments (excluding available-for-sale securities): Time deposits 104 – 104 – 104 Receivables under reverse repurchase agreements 224 – 224 – 224 Other short-term investments 7 7 – – 7 Other non-current assets: Loans granted 29 – 30 – 30 Held-to-maturity securities 99 – 110 – 110 Restricted cash deposits 176 55 138 – 193 Liabilities Short-term debt and current maturities of long-term debt (excluding capital lease obligations) 1,427 614 817 – 1,431 Long-term debt (excluding capital lease obligations) 5,899 5,307 751 – 6,058 Non-current deposit liabilities in “Other non-current liabilities” 215 – 244 – 244 December 31, 2014 ($ in millions) Carrying value Level 1 Level 2 Level 3 Total fair value Assets Cash and equivalents (excluding available-for-sale securities with original maturities up to 3 months): Cash 2,218 2,218 – – 2,218 Time deposits 3,140 – 3,140 – 3,140 Marketable securities and short-term investments (excluding available-for-sale securities): Time deposits 200 – 200 – 200 Receivables under reverse repurchase agreements 219 – 219 – 219 Other short-term investments 6 6 – – 6 Other non-current assets: Loans granted 41 – 44 – 44 Held-to-maturity securities 95 – 109 – 109 Restricted cash deposits 198 64 161 – 225 Liabilities Short-term debt and current maturities of long-term debt (excluding capital lease obligations) 324 115 209 – 324 Long-term debt (excluding capital lease obligations) 7,198 6,148 1,404 – 7,552 Non-current deposit liabilities in “Other non-current liabilities” 222 – 267 – 267 The Company uses the following methods and assumptions in estimating fair values of financial instruments carried on a cost basis: - Cash and equivalents (excluding available-for-sale securities with original maturities up to 3 months), and Marketable securities and short-term investments (excluding available-for-sale securities): The carrying amounts approximate the fair values as the items are short-term in nature. - Other non-current assets: Includes (i) loans granted whose fair values are based on the carrying amount adjusted using a present value technique to reflect a premium or discount based on current market interest rates (Level 2 inputs), (ii) held-to-maturity securities (see Note 4) whose fair values are based on quoted market prices in inactive markets (Level 2 inputs), (iii) restricted cash whose fair values approximate the carrying amounts (Level 1 inputs) and restricted cash deposits pledged in respect of certain non-current deposit liabilities whose fair values are determined using a discounted cash flow methodology based on current market interest rates (Level 2 inputs). - Short-term debt and current maturities of long-term debt (excluding capital lease obligations): Short-term debt includes commercial paper, bank borrowings and overdrafts. The carrying amounts of short-term debt and current maturities of long-term debt, excluding capital lease obligations, approximate their fair values. - Long-term debt (excluding capital lease obligations): Fair values of outstanding bonds are determined using quoted market prices (Level 1 inputs), if available. For other bonds and other long-term debt, the fair values are determined using a discounted cash flow methodology based upon borrowing rates of similar debt instruments and reflecting appropriate adjustments for non-performance risk (Level 2 inputs). - Non-current deposit liabilities in “Other non-current liabilities”: The fair values of non-current deposit liabilities are determined using a discounted cash flow methodology based on risk-adjusted interest rates (Level 2 inputs).

Note 7 Commitments and contingencies Contingencies—Environmental The Company is engaged in environmental clean-up activities at certain sites arising under various United States and other environmental protection laws and under certain agreements with third parties. In some cases, these environmental remediation actions are subject to legal proceedings, investigations or claims, and it is uncertain to what extent the Company is actually obligated to perform. Provisions for these unresolved matters have been set up if it is probable that the Company has incurred a liability and the amount of loss can be reasonably estimated. The lower end of an estimated range is accrued when a single best estimate is not determinable. The required amounts of the provisions may change in the future as developments occur. If a provision has been recognized for any of these matters, the Company records an asset when it is probable that it will recover a portion of the costs expected to be incurred to settle them. Management is of the opinion, based upon information presently available, that the resolution of any such obligation and non-collection of recoverable costs would not have a further material adverse effect on the Company’s consolidated financial statements. The Company is involved in the remediation of environmental contamination at present or former facilities, primarily in the United States. The clean-up of these sites involves primarily soil and groundwater contamination. A significant portion of the provisions in respect of these contingencies reflects the provisions of acquired companies. Environmental provisions included in the Company’s Consolidated Balance Sheets were as follows: ($ in millions) December 31, 2015 December 31, 2014 Other provisions 30 37 Other non-current liabilities 86 109 Total 116 146 Provisions for the above estimated losses have not been discounted as the timing of payments cannot be reasonably estimated. Contingencies—Regulatory, Compliance and Legal Antitrust In April 2014, the European Commission announced its decision regarding its investigation of anticompetitive practices in the cables industry and granted the Company full immunity from fines under the European Commission’s leniency program. In December 2013, the Company agreed with the Brazilian Antitrust Authority (CADE) to settle its ongoing investigation into the Company’s involvement in anticompetitive practices in the cables industry and the Company agreed to pay a fine of approximately 1.5 million Brazilian reals (equivalent to approximately $1 million on date of payment). The Company’s cables business remains under investigation for alleged anticompetitive practices in certain other jurisdictions. An informed judgment about the outcome of these remaining investigations or the amount of potential loss or range of loss for the Company, if any, relating to these remaining investigations cannot be made at this stage. In Brazil, the Company’s Gas Insulated Switchgear business is under investigation by the CADE for alleged anticompetitive practices. In addition, the CADE has opened an investigation into certain other power businesses of the Company, including flexible alternating current transmission systems (FACTS) and power transformers. An informed judgment about the outcome of these investigations or the amount of potential loss or range of loss for the Company, if any, relating to these investigations cannot be made at this stage. With respect to those aforementioned matters which are still ongoing, management is cooperating fully with the antitrust authorities. General In addition, the Company is aware of proceedings, or the threat of proceedings, against it and others in respect of private claims by customers and other third parties with regard to certain actual or alleged anticompetitive practices. Also, the Company is subject to other various legal proceedings, investigations, and claims that have not yet been resolved. With respect to the above mentioned regulatory matters and commercial litigation contingencies, the Company will bear the costs of the continuing investigations and any related legal proceedings. Liabilities recognized At December 31, 2015 and 2014, the Company had aggregate liabilities of $160 million and $147 million, respectively, included in “Other provisions” and “Other non-current liabilities”, for the above regulatory, compliance and legal contingencies, and none of the individual liabilities recognized was significant. As it is not possible to make an informed judgment on the outcome of certain matters and as it is not possible, based on information currently available to management, to estimate the maximum potential liability on other matters, there could be material adverse outcomes beyond the amounts accrued. Guarantees General The following table provides quantitative data regarding the Company’s third-party guarantees. The maximum potential payments represent a “worst-case scenario”, and do not reflect management’s expected outcomes. Maximum potential payments ($ in millions) December 31, 2015 December 31, 2014 Performance guarantees 209 232 Financial guarantees 77 72 Indemnification guarantees 50 50 Total 336 354 The carrying amount of liabilities recorded in the Consolidated Balance Sheets reflects the Company’s best estimate of future payments, which it may incur as part of fulfilling its guarantee obligations. In respect of the above guarantees, the carrying amounts of liabilities at December 31, 2015 and 2014, were not significant.

Performance guarantees Performance guarantees represent obligations where the Company guarantees the performance of a third party’s product or service according to the terms of a contract. Such guarantees may include guarantees that a project will be completed within a specified time. If the third party does not fulfill the obligation, the Company will compensate the guaranteed party in cash or in kind. Performance guarantees include surety bonds, advance payment guarantees and standby letters of credit. There were no significant performance guarantees at December 31, 2015 and 2014. The Company is engaged in executing a number of projects as a member of consortia that include third parties. In certain of these cases, the Company guarantees not only its own performance but also the work of third parties. The original maturity dates of these guarantees range from one to six years. At December 31, 2015 and 2014, the maximum potential amount payable under these guarantees as a result of third-party non-performance was $136 million and $156 million, respectively. Financial guarantees and commercial commitments Financial guarantees represent irrevocable assurances that the Company will make payment to a beneficiary in the event that a third party fails to fulfill its financial obligations and the beneficiary under the guarantee incurs a loss due to that failure. At December 31, 2015 and 2014, the Company had a maximum potential amount payable of $77 million and $72 million, respectively, under financial guarantees outstanding. Of these amounts, $17 million and $12 million at December 31, 2015 and 2014, respectively, was in respect of guarantees issued on behalf of companies in which the Company formerly had or has an equity interest. The guarantees outstanding have various maturity dates up to 2020. In addition, in the normal course of bidding for and executing certain projects, the Company has entered into standby letters of credit, bid/performance bonds and surety bonds (collectively “performance bonds”) with various financial institutions. Customers can draw on such performance bonds in the event that the Company does not fulfill its contractual obligations. The Company would then have an obligation to reimburse the financial institution for amounts paid under the performance bonds. There have been no significant amounts reimbursed to financial institutions under these types of arrangements in the year and three months ended December 31, 2015 and 2014. Indemnification guarantees The Company has indemnified certain purchasers of divested businesses for potential claims arising from the operations of the divested businesses. To the extent the maximum potential loss related to such indemnifications could not be calculated, no amounts have been included under maximum potential payments in the table above. Indemnifications for which maximum potential losses could not be calculated include indemnifications for legal claims. There were no significant indemnification guarantees at December 31, 2015 and 2014. Product and order-related contingencies The Company calculates its provision for product warranties based on historical claims experience and specific review of certain contracts. The reconciliation of the “Provisions for warranties”, including guarantees of product performance, was as follows: ($ in millions) 2015 2014 Balance at January 1, 1,148 1,362 Net change in warranties due to acquisitions and divestments – 11 Claims paid in cash or in kind (281) (319) Net increase in provision for changes in estimates, warranties issued and warranties expired 301 224 Exchange rate differences (79) (130) Balance at December 31, 1,089 1,148 Note 8 Employee benefits The Company operates defined benefit pension plans, defined contribution pension plans, and termination indemnity plans, in accordance with local regulations and practices. These plans cover a large portion of the Company’s employees and provide benefits to employees in the event of death, disability, retirement, or termination of employment. Certain of these plans are multi-employer plans. The Company also operates other postretirement benefit plans including postretirement health care benefits, and other employee-related benefits for active employees including long-service award plans. The measurement date used for the Company’s employee benefit plans is December 31. The funding policies of the Company’s plans are consistent with the local government and tax requirements. Net periodic benefit cost of the Company’s defined benefit pension and other postretirement benefit plans consisted of the following: Defined pension Other postretirement ($ in millions) benefits benefits Year ended December 31, 2015 2014 2015 2014 Service cost 267 243 1 1 Interest cost 305 409 8 10 Expected return on plan assets (456) (481) – – Amortization of prior service cost (credit) 38 27 (9) (9) Amortization of net actuarial loss 127 99 1 – Curtailments, settlements and special termination benefits 5 4 – – Net periodic benefit cost 286 301 1 2

Defined pension benefits Other postretirement benefits ($ in millions) Employer contributions were as follows: Defined pension benefits Other postretirement benefits ($ in millions) Defined pension benefits Other postretirement benefits ($ in millions) During the year and three months ended December 31, 2015, discretionary contributions included available-for-sale debt securities, having a fair value at the contribution date of $22 million, contributed to certain of the Company’s pension plans in the United Kingdom. During the year ended December 31, 2014, discretionary contributions included available -for-sale debt securities, having a fair value at the contribution date of $25 million, contributed to certain of the Company’s pension plans in the United Kingdom. The Company expects to make contributions totaling approximately $252 million and $15 million to its defined benefit pension plans and other postretirement benefit plans, respectively, for the full year 2016. Note 9 Stockholders’ equity In September 2014, the Company announced a share buyback program for the purchase of up to $4 billion of its own shares over a period ending no later than September 2016. The Company intends that approximately three quarters of the shares to be purchased will be held for cancellation (after approval from shareholders) and the remainder will be purchased to be available for delivery to employees under its employee share programs. Shares acquired for cancellation are acquired through a separate trading line on the SIX Swiss Exchange (on which only the Company can purchase shares), while shares acquired for delivery under employee share programs are acquired through the ordinary trading line. In the year ended December 31, 2015, under the announced share buyback program, the Company purchased 60.245 million shares for cancellation and 13.050 million shares to support its employee share programs, of which 19.955 million shares were purchased for cancellation and 4.350 million shares were purchased to support employee share programs in the three months ended December 31, 2015. In the year and three months ended December 31, 2015, these transactions resulted in an increase in Treasury stock of $ 1,501 million and $454 million, respectively. As of December 31, 2015, under this program, the Company has purchased a total of 86.225 million shares for cancellation and 19.800 million shares to support its employee share programs. At the Annual General Meeting of Shareholders on April 30, 2015, shareholders approved the proposals of the Board of Directors to distribute a total of 0.72 Swiss francs per share to shareholders, comprising of a dividend of 0.55 Swiss francs paid out of ABB Ltd’s capital contribution reserves and a distribution of 0.17 Swiss francs by way of a nominal value reduction (reduction in the par value of each share) from 1.03 Swiss francs to 0.86 Swiss francs. The approved dividend distribution amounted to $1,317 million and was paid in May 2015. The nominal value reduction was registered in July 2015 in the commercial register of the canton of Zurich, Switzerland, and was paid in the third quarter of 2015. The approved nominal value reduction was recorded in the second quarter of 2015 as a reduction to Capital stock and additional paid-in capital of $349 million and a reduction in Retained earnings of $54 million. Q4 2015 Financial Information 25 Three months ended December 31, 2015 2014 2015 2014 Total contributions to defined benefit pension and other postretirement benefit plans 88 65 4 4 Of which, discretionary contributions to defined benefit pension plans 21 – – – Year ended December 31, 2015 2014 2015 2014 Total contributions to defined benefit pension and other postretirement benefit plans 243 308 15 14 Of which, discretionary contributions to defined benefit pension plans 31 75 – – Three months ended December 31, 2015 2014 2015 2014 Service cost 64 64 – – Interest cost 74 110 2 3 Expected return on plan assets (111) (125) – – Amortization of prior service cost (credit) 10 7 (3) (3) Amortization of net actuarial loss 32 26 – – Curtailments, settlements and special termination benefits 4 3 – – Net periodic benefit cost 73 85 (1) –

Note 10 Earnings per share Basic earnings per share is calculated by dividing income by the weighted -average number of shares outstanding during the period. Diluted earnings per share is calculated by dividing income by the weighted -average number of shares outstanding during the period, assuming that all potentially dilutive securities were exercised, if dilutive. Potentially dilutive securities comprise outstanding written call options and outstanding options and shares granted subject to certain conditions under the Company’s share -based payment arrangements. Basic earnings per share Diluted earnings per share Q4 2015 Financial Information 26 ($ in millions, except per share data in $) Year ended December 31, Three months ended December 31, 2015 2014 2015 2014 Amounts attributable to ABB shareholders: Income from continuing operations, net of tax 1,930 2,570 203 666 Income from discontinued operations, net of tax 3 24 1 14 Net income 1,933 2,594 204 680 Weighted-average number of shares outstanding (in millions) 2,226 2,288 2,203 2,266 Effect of dilutive securities: Call options and shares 4 7 3 6 Adjusted weighted-average number of shares outstanding (in millions) 2,230 2,295 2,206 2,272 Diluted earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax 0.87 1.12 0.09 0.29 Income from discontinued operations, net of tax – 0.01 – 0.01 Net income 0.87 1.13 0.09 0.30 ($ in millions, except per share data in $) Year ended December 31, Three months ended December 31, 2015 2014 2015 2014 Amounts attributable to ABB shareholders: Income from continuing operations, net of tax 1,930 2,570 203 666 Income from discontinued operations, net of tax 3 24 1 14 Net income 1,933 2,594 204 680 Weighted-average number of shares outstanding (in millions) 2,226 2,288 2,203 2,266 Basic earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax 0.87 1.12 0.09 0.29 Income from discontinued operations, net of tax – 0.01 – 0.01 Net income 0.87 1.13 0.09 0.30

Note 11 Reclassifications out of accumulated other comprehensive loss The following table shows changes in “Accumulated other comprehensive loss” (OCI) attributable to ABB, by component, net of tax: Unrealized gains Pension and Unrealized gains Foreign currency (losses) on other (losses) of cash translation available-for-sale postretirement flow hedge ($ in millions) adjustments securities plan adjustments derivatives Total OCI Balance at January 1, 2014 (431) 7 (1,610) 22 (2,012) Other comprehensive (loss) income before reclassifications (1,680) (9) (617) (52) (2,358) Amounts reclassified from OCI – 15 96 9 120 Total other comprehensive (loss) income (1,680) 6 (521) (43) (2,238) Less: Amounts attributable to noncontrolling interests (9) – – – (9) Balance at December 31, 2014 (2,102) 13 (2,131) (21) (4,241) Other comprehensive (loss) income before reclassifications (1,058) (7) 298 (20) (787) Amounts reclassified from OCI – 1 117 30 148 Total other comprehensive (loss) income (1,058) (6) 415 10 (639) Less: Amounts attributable to noncontrolling interests (25) – 3 – (22) Balance at December 31, 2015 (3,135) 7 (1,719) (11) (4,858) The following table reflects amounts reclassified out of OCI in respect of pension and other postretirement plan adjustments and unrealized gains (losses) of cash flow hedge derivatives: Year ended Three months ended ($ in millions) Location of (gains) losses December 31, December 31, Details about OCI components reclassified from OCI 2015 2014 2015 2014 Pension and other postretirement plan adjustments: Amortization of prior service cost Net periodic benefit cost(1) 29 18 7 4 Amortization of net actuarial loss Net periodic benefit cost(1) 128 99 32 26 Total before tax 157 117 39 30 Tax Provision for taxes (40) (21) (10) (3) Amounts reclassified from OCI 117 96 29 27 Unrealized gains (losses) of cash flow hedge derivatives: Foreign exchange contracts Total revenues 36 9 5 6 Total cost of sales (11) (8) (3) (1) Commodity contracts Total cost of sales 10 3 3 1 Cash-settled call options SG&A expenses(2) 4 6 (2) 1 Total before tax 39 10 3 7 Tax Provision for taxes (9) (1) (1) (1) Amounts reclassified from OCI 30 9 2 6 (1) These components are included in the computation of net periodic benefit cost (see Note 8). (2) SG&A expenses represent “Selling, general and administrative expenses”. The amounts in respect of Unrealized gains (losses) on available-for-sale securities were not significant for the year and three months ended December 31, 2015 and 2014.

Note 12 Restructuring and related expenses White Collar Productivity p rogram In September 2015, the Company announced a two-year program aimed at making the Company leaner, faster and more customer-focused. Planned productivity improvements include the rapid expansion and use of regional shared service centers as well as the streamlining of global operations and head office functions, with business units moving closer to their respective key markets. In the course of this program, the Company will implement and execute various restructuring initiatives across all operating segments and regions. The following table outlines the costs incurred in 2015, the cumulative costs incurred to date and the total amount of costs expected to be incurred under the program per operating segment: Costs incurred in the three months ended December 31, 2015 Cumulative costs incurred up to December 31, 2015 ($ in millions) Total expected costs Discrete Automation and Motion 42 45 169 Low Voltage Products 58 60 126 Process Automation 82 91 137 Power Products 41 42 155 Power Systems 44 46 82 Corporate and Other 85 86 183 Total 352 370 852 Of the total expected costs of $852 million the majority is related to employee severance costs. The Company recorded the following expenses under this program: Expenses associated with this program are recorded in the following line items in the Consolidated Income Statements: Liabilities associated with the White Collar Productivity (WCP) program are primarily included in “Other provisions”. The following tables show the activity during the year and three months ended December 31, 2015, by expense type. Employee severance costs Contract settlement, loss order and other costs ($ in millions) Total Liability at January 1, 2015 – – – Expenses 364 5 369 Cash payments (34) (1) (35) Liability at December 31, 2015 330 4 334 Employee severance costs Contract settlement, loss order and other costs ($ in millions) Total Liability at October 1, 2015 13 – 13 Expenses 346 5 351 Cash payments (29) (1) (30) Liability at December 31, 2015 330 4 334 Q4 2015 Financial Information 28 ($ in millions) Year ended Three months ended December 31, 2015 December 31, 2015 Total cost of sales 122 113 Selling, general and administrative expenses 187 183 Non-order related research and development expenses 38 34 Other income (expense), net 23 22 Total 370 352 ($ in millions) Year ended Three months ended December 31, 2015 December 31, 2015 Employee severance costs 364 346 Estimated contract settlement, loss order and other costs 5 5 Inventory and long-lived asset impairments 1 1 Total 370 352

Other restructuring-related activities In addition, during the year ended December 31, 2015 and 2014, the Company executed various other minor restructuring-related activities and incurred expenses of $256 million and $235 million, respectively, which were mainly recorded in “Total cost of sales”. Expenses for the three months ended December 31, 2015 and 2014, amounted to $144 million and $93 million, respectively. At December 31, 2015 and 2014, the balance of other restructuring-related liabilities is primarily included in “Other provisions”. Note 13 Operating segment data The Chief Operating Decision Maker (CODM) is the Company’s Executive Committee. The CODM allocates resources to and assesses the performance of each operating segment using the information outlined below. The Company’s operating segments consist of Discrete Automation and Motion, Low Voltage Products, Process Automation, Power Products and Power Systems. The remaining operations of the Company are included in Corporate and Other. A description of the types of products and services provided by each reportable segment is as follows: - Discrete Automation and Motion: manufactures and sells motors, generators, variable speed drives, programmable logic controllers, robots and robotics, solar inverters, wind converters, rectifiers, excitation systems, power quality and protection solutions, electric vehicle fast charging infrastructure, components and subsystems for railways, and related services for a wide range of applications in discrete automation, process industries, transportation and utilities. - Low Voltage Products: manufactures and sells products and systems that provide protection, control and measurement for electrical installations, as well as enclosures, switchboards, electronics and electromechanical devices for industrial machines, plants and related service. In addition, the segment manufactures products for wiring and cable management, cable protection systems, power connection and safety. The segment also makes intelligent building control systems for home and building automation. - Process Automation: develops and sells control and plant optimization systems, automation products and solutions, including instrumentation, as well as industry-specific application knowledge and services for the oil, gas and petrochemicals, metals and minerals, marine and turbocharging, pulp and paper, chemical and pharmaceuticals, and power industries. - Power Products: manufactures and sells a wide range of products across voltage levels, including circuit breakers, switchgear, capacitors, instrument transformers, power, distribution and traction transformers for electrical and other infrastructure utilities, as well as industrial and commercial customers. - Power Systems: designs, installs and upgrades high-efficiency transmission and distribution systems and power plant automation and electrification solutions, including monitoring and control products, software and services and incorporating components manufactured by both the Company and by third parties, for power generation, transmission and distribution utilities, other infrastructure utilities, as well as other industrial and commercial enterprises. - Corporate and Other: includes headquarters, central research and development, the Company’s real estate activities, Group Treasury Operations and other minor business activities. Effective January 1, 2015, the Company changed its primary measure of segment performance from Operational EBITDA to Operational EBITA, which represents income from operations excluding amortization expense on intangibles arising upon acquisitions (acquisition -related amortization), restructuring and restructuring-related expenses, gains and losses from sale of businesses, acquisition -related expenses and certain non-operational items, as well as foreign exchange/commodity timing differences in income from operations consisting of: (i) unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives), (ii) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, and (iii) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities). The segment performance for the year and three months ended December 31, 2014 , has been restated to reflect this change. The CODM primarily reviews the results of each segment on a basis that is before the elimination of profits made on inventory sales between segments. Segment results below are presented before these eliminations, with a total deduction for intersegment profits to arrive at the Company’s consolidated Operational EBITA. Intersegment sales and transfers are accounted for as if the sales and transfers were to third parties, at current market prices. Q4 2015 Financial Information 29 ($ in millions) Year ended December 31, Three months ended December 31, 2015 2014 2015 2014 Employee severance costs 207 177 130 75 Estimated contract settlement, loss order and other costs 27 31 11 9 Inventory and long-lived asset impairments 22 27 3 9 Total 256 235 144 93

30 Q4 2015 Financial Information The following tables present segment revenues, Operational EBITA, and the reconciliations of consolidated Operational EBITA to Income from continuing operations before taxes for the year and three months ended December 31, 2015 and 2014, as well as total assets at December 31, 2015 and 2014. Year ended December 31, 2015 Year ended December 31, 2014 Third-party Intersegment Total Third-party Intersegment Total ($ in millions) revenues revenues revenues revenues revenues revenues Discrete Automation and Motion 8,492 635 9,127 9,296 846 10,142 Low Voltage Products 6,210 337 6,547 7,117 415 7,532 Process Automation 6,235 139 6,374 7,745 203 7,948 Power Products 8,352 1,198 9,550 8,782 1,551 10,333 Power Systems 6,132 210 6,342 6,686 334 7,020 Corporate and Other 60 1,459 1,519 204 1,592 1,796 Intersegment elimination – (3,978) (3,978) – (4,941) (4,941) Consolidated 35,481 – 35,481 39,830 – 39,830 Three months ended December 31, 2015 Three months ended December 31, 2014 Third-party Intersegment Total Third-party Intersegment Total ($ in millions) revenues revenues revenues revenues revenues revenues Discrete Automation and Motion 2,109 179 2,288 2,353 230 2,583 Low Voltage Products 1,538 86 1,624 1,689 104 1,793 Process Automation 1,635 39 1,674 2,040 54 2,094 Power Products 2,232 312 2,544 2,389 436 2,825 Power Systems 1,708 47 1,755 1,883 82 1,965 Corporate and Other 20 347 367 (8) 372 364 Intersegment elimination – (1,010) (1,010) – (1,278) (1,278) Consolidated 9,242 – 9,242 10,346 – 10,346 Year ended December 31, Three months ended December 31, ($ in millions) 2015 2014 2015 2014 Operational EBITA: Discrete Automation and Motion 1,271 1,589 279 403 Low Voltage Products 1,096 1,241 268 307 Process Automation 755 958 201 263 Power Products 1,178 1,319 329 360 Power Systems 274 (96) 130 26 Corporate and Other and Intersegment elimination (405) (536) (126) (206) Consolidated Operational EBITA 4,169 4,475 1,081 1,153 Acquisition-related amortization (310) (380) (73) (90) Restructuring and restructuring-related expenses(1) (674) (235) (531) (93) Gains and losses from sale of businesses, acquisition-related expenses and certain non-operational items (120) 482 (76) 122 Foreign exchange/commodity timing differences in income from operations: Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives) 67 (223) (13) (22) Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized (68) (42) (18) (22) Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities) (15) 101 (23) 1 Income from operations 3,049 4,178 347 1,049 Interest and dividend income 77 80 21 23 Interest and other finance expense (286) (362) (63) (107) Income from continuing operations before taxes 2,840 3,896 305 965 (1) Amounts also include the incremental implementation costs in relation to the White Collar Productivity program. Total assets(1) ($ in millions) December 31, 2015 December 31, 2014 Discrete Automation and Motion 9,452 10,123 Low Voltage Products 7,481 7,978 Process Automation 3,851 4,268 Power Products 6,869 7,396 Power Systems 6,120 6,855 Corporate and Other 7,583 8,232 Consolidated 41,356 44,852 (1) Total assets are after intersegment eliminations and therefore reflect third-party assets only.

Realignment of segments On September 9, 2015, the Company announced a reorganization of its operating segments aimed at delivering more customer value in a better, more focused way from its combined power and automation offering. Effective January 1, 2016, ABB commenced operating with four segments, namely Discrete Automation and Motion, Electrification Products, Process Automation and Power Grids. The Discrete Automation and Motion segment remains unchanged except that it now excludes the Programmable Logic Controller business which was transferred to the Process Automation segment. The new Electrification Products segment includes the combined businesses of the previous Low Voltage Products segment and the Medium Voltage Products business, previously included in the former Power Products segment. The scope of businesses in the Process Automation segment has been expanded to include both the Distributed Control Systems business from the former Power Systems segment and the Programmable Logic Controller business transferred from the Discrete Automation and Motion segment described above. The new Power Grids segment includes the remaining businesses of the former Power Products and Power Systems segments, excluding the businesses transferred to other segments as described above. Q4 2015 Financial Information 31

Q4 2015 Financial Information 32

Supplemental Reconciliations and Definitions The following reconciliations and definitions include measures which ABB uses to supplement its Interim Consolidated Financial Information (unaudited) which is prepared in accordance with United States generally accepted accounting principles (U.S. GAAP). Certain of these financial measures are, or may be, considered non-GAAP financial measures as defined in the rules of the U.S. Securities and Exchange Commission (SEC). While ABB’s management believes that the non-GAAP financial 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 accordance with U.S. GAAP. Therefore these measures should not be viewed in isolation but considered together with the Interim Consolidated Financial Information (unaudited) prepared in accordance with U.S. GAAP as of and for the year and three months ended December 31, 2015. Comparable growth rates (previously ‘Like-for-like growth rates’) Growth rates for certain key figures may be presented and discussed on a “comparable” basis. The comparable growth rate measures growth on a constant currency basis. Since we are a global company, the comparability of our operating results reported in U.S. dollars is affected by foreign currency exchange rate fluctuations. We calculate the impacts from foreign currency fluctuations by translating the current-year periods’ reported key figures into U.S. dollar amounts using the exchange rates in effect for the comparable periods in the previous year. Comparable growth rates also adjust for changes in our business portfolio. The adjustment for portfolio changes is calculated as follows: where the results of any business acquired or divested have not been consolidated and reported for the entire duration of both the current and comparable periods, the reported key figures of such business are adjusted to exclude the relevant key figures of any corresponding quarters which are not comparable when computing the comparable growth rate. In addition, certain other portfolio changes which do not qualify as divestments are treated in a similar manner to divestments. We do not adjust for portfolio changes where the business acquired or divested has annual revenues of less than $50 million. The following tables provide reconciliations of reported growth rates of certain key figures to their respective comparable growth rate. Divisional comparable growth rate reconciliation Q4 2015 compared to Q4 2014 Order growth rate Revenue growth rate US$ Foreign Acquisitions US$ Foreign Acquisitions (as exchange and (as exchange and Division reported) impact divestments Comparable reported) impact divestments Comparable Discrete Automation and Motion -17% 8% 0% -9% -11% 7% 0% -4% Low Voltage Products -11% 9% 0% -2% -9% 9% 0% 0% Process Automation -17% 11% 5% -1% -20% 9% 3% -8% Power Products -6% 9% 0% 3% -10% 8% 0% -2% Power Systems -7% 10% 0% 3% -11% 10% 0% -1% ABB Group -12% 9% 1% -2% -11% 9% 1% -1% FY 2015 compared to FY 2014 Order growth rate Revenue growth rate US$ Foreign Acquisitions US$ Foreign Acquisitions (as exchange and (as exchange and Division reported) impact divestments Comparable reported) impact divestments Comparable Discrete Automation and Motion -13% 8% 0% -5% -10% 8% 0% -2% Low Voltage Products -13% 10% 4% 1% -13% 10% 3% 0% Process Automation -25% 11% 3% -11% -20% 11% 4% -5% Power Products -7% 9% 0% 2% -8% 10% 0% 2% Power Systems -1% 14% 0% 13% -10% 12% 0% 2% ABB Group -12% 10% 1% -1% -11% 10% 1% 0%

Regional comparable growth rate reconciliation Q4 2015 compared to Q4 2014 Order growth rate Revenue growth rate US$ Foreign Acquisitions US$ Foreign Acquisitions (as exchange and (as exchange and Region reported) impact divestments Comparable reported) impact divestments Comparable Europe -8% 15% 0% 7% -12% 12% 1% 1% The Americas -8% 8% 1% 1% -11% 7% 1% -3% Asia, Middle East and Africa -19% 5% 1% -13% -9% 6% 1% -2% ABB Group -12% 9% 1% -2% -11% 9% 1% -1% FY 2015 compared to FY 2014 Order growth rate Revenue growth rate US$ Foreign Acquisitions US$ Foreign Acquisitions (as exchange and (as exchange and Region reported) impact divestments Comparable reported) impact divestments Comparable Europe -12% 17% 2% 7% -16% 17% 1% 2% The Americas -12% 6% 2% -4% -8% 6% 3% 1% Asia, Middle East and Africa -12% 5% 1% -6% -9% 7% 1% -1% ABB Group -12% 10% 1% -1% -11% 10% 1% 0% Order backlog growth rate reconciliation December 31, 2015 compared to December 31, 2014 US$ Foreign Acquisitions (as exchange and Division reported) impact divestments Comparable Discrete Automation and Motion -3% 6% 0% 3% Low Voltage Products -4% 10% 0% 6% Process Automation -8% 10% 1% 3% Power Products -1% 8% 0% 7% Power Systems 0% 8% 0% 8% ABB Group -3% 8% 0% 5% Operational EBITA growth rate reconciliation Q4 2015 compared to Q4 2014 FY 2015 compared to FY 2014 US$ Foreign Acquisitions US$ Foreign Acquisitions (as exchange and (as exchange and Division reported) impact divestments Comparable reported) impact divestments Comparable Discrete Automation and Motion -31% 5% 0% -26% -20% 7% 0% -13% Low Voltage Products -13% 9% 0% -4% -12% 11% 3% 2% Process Automation -24% 7% 3% -14% -21% 8% 2% -11% Power Products -9% 7% 0% -2% -11% 8% 0% -3% Power Systems n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. ABB Group -6% 7% 0% 1% -7% 9% 1% 3% Other growth rate reconciliations Q4 2015 compared to Q4 2014 FY 2015 compared to FY 2014 US$ Foreign Acquisitions US$ Foreign Acquisitions (as exchange and (as exchange and reported) impact divestments Comparable reported) impact divestments Comparable Large orders 15% 12% 0% 27% -5% 15% 0% 10% Base orders -15% 8% 1% -6% -14% 9% 2% -3% Service orders -4% 9% 5% 10% -11% 10% 3% 2% Service revenues -9% 9% 4% 4% -8% 11% 3% 6%

Adju sted service revenues as a percentage of total revenues Adjusted service revenues as a percentage of total revenues is calculated as Sales of services divided by Total revenues, after reducing both amounts by the amount of revenues recorded for businesses which have subsequently been divested. December 31, Operation al EBITA margin In line with the updated financial targets of ABB’s Next Level strategy, ABB changed its measure of segment profit from Operational EBITDA to Operational EBITA, effective January 1, 2015. Defin ition Operational EBITA margin Operational EBITA margin is Operational EBITA as a percentage of Operational revenues. Operational EBITA Operational earnings before interest, taxes and acquisition-related amortization (Operational EBITA) represents Income from operations excluding acquisition -related amortization (as defined below), restructuring and restructuring-related expenses, gains and losses from sale of businesses, acquisition -related expenses and certain non-operational items, as well as foreign exchange/commodity timing differences in income from operations consisting of: (i) unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives), (ii) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, and (iii) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities). Acquisition-related amortization Amortization expense on intangibles arising upon acquisitions. Operational revenues Operational revenues are total revenues adjusted for foreign exchange/commodity timing differences in total revenues of: (i) unrealized gains and losses on derivatives, (ii) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, and (iii) unrealized foreign exchange movements on receivables (and related assets). Q4 2015 Financial Information 35 ($ in millions, unless otherwise indicated) 2015 2014 Adjusted service revenues as a percentage of total revenues Sales of services 6,004 6,551 Sales of services in divested businesses – (225) Adjusted service revenues 6,004 6,326 Total revenues 35,481 39,830 Total revenues in divested businesses – (613) Adjusted total revenues 35,481 39,217 Adjusted service revenues as a percentage of total revenues 16.9% 16.1%

Reconciliation Year ended December 31, 2015 Corporate and Other and Intersegment elimination Discrete Automation and Motion Low Voltage Products Process Automation Power Products Power Systems ($ in millions, unless otherwise indicated) Consolidated Total revenues 9,127 6,547 6,374 9,550 6,342 (2,459) 35,481 Foreign exchange/commodity timing differences in total revenues: Unrealized gains and losses on derivatives 23 (14) 10 (28) (83) 1 (91) Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized (27) 1 26 36 40 – 76 Unrealized foreign exchange movements on receivables (and related assets) 8 2 (13) 1 (11) – (13) Operational revenues 9,131 6,536 6,397 9,559 6,288 (2,458) 35,453 Income (loss) from operations 991 909 593 1,051 110 (605) 3,049 Acquisition-related amortization 128 100 12 10 43 17 310 Restructuring and restructuring-related expenses(1) 125 101 112 105 96 135 674 Gains and losses from sale of businesses, acquisition-related expenses and certain non-operational items 26 3 11 4 35 41 120 Foreign exchange/commodity timing differences in income from operations: Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives) 17 (18) 9 (30) (49) 4 (67) Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized (27) – 21 35 39 – 68 Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities) 11 1 (3) 3 – 3 15 Operational EBITA 1,271 1,096 755 1,178 274 (405) 4,169 Operational EBITA margin (%) 13.9% 16.8% 11.8% 12.3% 4.4% n.a. 11.8% (1) Amounts also include the incremental implementation costs in relation to the White Collar Productivity program. Q4 2015 Financial Informat ion 36

Year ended December 31, 2014 Corporate and Other and Intersegment elimination Discrete Automation and Motion Low Voltage Products Process Automation Power Products Power Systems ($ in millions, unless otherwise indicated) Consolidated Total revenues 10,142 7,532 7,948 10,333 7,020 (3,145) 39,830 Foreign exchange/commodity timing differences in total revenues: Unrealized gains and losses on derivatives 10 19 9 33 168 – 239 Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized (2) – 12 4 48 1 63 Unrealized foreign exchange movements on receivables (and related assets) (13) (5) (11) (13) (47) – (89) Operational revenues 10,137 7,546 7,958 10,357 7,189 (3,144) 40,043 Income (loss) from operations 1,422 1,475 1,003 1,204 (360) (566) 4,178 Acquisition-related amortization 138 113 17 17 74 21 380 Restructuring and restructuring-related expenses(1) 25 45 43 51 63 8 235 Gains and losses from sale of businesses, acquisition-related expenses and certain non-operational items – (407) (113) 16 12 10 (482) Foreign exchange/commodity timing differences in income from operations: Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives) 16 13 17 46 137 (6) 223 Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized (2) – 9 7 28 – 42 Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities) (10) 2 (18) (22) (50) (3) (101) Operational EBITA 1,589 1,241 958 1,319 (96) (536) 4,475 Operational EBITA margin (%) 15.7% 16.4% 12.0% 12.7% -1.3% n.a. 11.2% (1) Amounts also include the incremental implementation costs in relation to the White Collar Productivity program. Q4 2015 Financial Information 37

Three months ended December 31, 2015 Corporate and Other and Intersegment elimination Discrete Automation and Motion Low Voltage Products Process Automation Power Products Power Systems ($ in millions, unless otherwise indicated) Consolidated Total revenues 2,288 1,624 1,674 2,544 1,755 (643) 9,242 Foreign exchange/commodity timing differences in total revenues: Unrealized gains and losses on derivatives 3 (2) 4 (8) (36) 2 (37) Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized 1 (1) 2 6 5 – 13 Unrealized foreign exchange movements on receivables (and related assets) – (1) 8 9 4 – 20 Operational revenues 2,292 1,620 1,688 2,551 1,728 (641) 9,238 Income (loss) from operations 134 153 85 227 45 (297) 347 Acquisition-related amortization 32 24 3 3 8 3 73 Restructuring and restructuring-related expenses(1) 81 88 88 75 80 119 531 Gains and losses from sale of businesses, acquisition-related expenses and certain non-operational items 26 3 – 1 1 45 76 Foreign exchange/commodity timing differences in income from operations: Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives) 8 1 10 10 (17) 1 13 Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized (1) (2) 8 4 9 – 18 Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities) (1) 1 7 9 4 3 23 Operational EBITA 279 268 201 329 130 (126) 1,081 Operational EBITA margin (%) 12.2% 16.5% 11.9% 12.9% 7.5% n.a. 11.7% (1) Amounts also include the incremental implementation costs in relation to the White Collar Productivity program. Q4 2015 Financial Information 38

Three months ended December 31, 2014 Corporate and Other and Intersegment elimination Discrete Automation and Motion Low Voltage Products Process Automation Power Products Power Systems ($ in millions, unless otherwise indicated) Consolidated Total revenues 2,583 1,793 2,094 2,825 1,965 (914) 10,346 Foreign exchange/commodity timing differences in total revenues: Unrealized gains and losses on derivatives 9 2 12 5 29 – 57 Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized – – 10 2 22 1 35 Unrealized foreign exchange movements on receivables (and related assets) (6) 1 (6) (2) (13) – (26) Operational revenues 2,586 1,796 2,110 2,830 2,003 (913) 10,412 Income (loss) from operations 357 267 353 330 (47) (211) 1,049 Acquisition-related amortization 34 26 6 3 16 5 90 Restructuring and restructuring-related expenses(1) 11 16 17 16 29 4 93 Gains and losses from sale of businesses, acquisition-related expenses and certain non-operational items – (12) (122) 6 2 4 (122) Foreign exchange/commodity timing differences in income from operations: Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives) 2 1 9 (2) 21 (9) 22 Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized – – 6 2 14 – 22 Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities) (1) 9 (6) 5 (9) 1 (1) Operational EBITA 403 307 263 360 26 (206) 1,153 Operational EBITA margin (%) 15.6% 17.1% 12.5% 12.7% 1.3% n.a. 11.1% (1) Amounts also include the incremental implementation costs in relation to the White Collar Productivity program. Q4 2015 Financial Information 39

Operation al EPS Definition Operational EPS Operational EPS is calculated as Operational net income divided by the weighted-average number of shares used in determining basic earnings per share. Operational net income Operational net income is calculated as Net income attributable to ABB adjusted for the net -of-tax impact of: (i) (ii) (iii) restructuring and restructuring-related expenses, gains and losses from sale of businesses, acquisition-related expenses and certain non-operational items, foreign exchange/commodity timing differences in income from operations consisting of: (a) unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives), (b) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, and (c) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities), and acquisition-related amortization. (iv) Acquisition-related amortization Amortization expense on intangibles arising upon acquisitions. Adjusted Group effective tax rate The Adjusted Group effective tax rate is computed by dividing an adjusted provision for taxes by an adjusted income from continuing operations before taxes. Certain amounts recorded in income from continuing operations before taxes and the related provision for taxes (primarily gains and losses from sale of businesses), as well as certain other amounts included solely in provision for taxes, are excluded from the computation. Constant currency Operational EPS adjustment In connection with ABB’s 2015-2020 targets, Operational EPS growth is measured assuming 2014 as the base year and uses constant exchange rates. We compute the constant currency operational net income for all periods using the relevant monthly exchange rates which were in effect during 2014 and any difference in computed Operational net income is divided by the relevant weighted-average number of shares outstanding to identify the constant currency Operational EPS adjustment. Reconciliation Year ended December 31, Three months ended December 31, (1) EPS amounts are computed individually, therefore the sum of the per share amounts shown may not equal to the total. (2) Net of tax at the Adjusted Group effective tax rate. (3) Amounts also include the incremental implementation costs in relation to the White Collar Productivity program. (4) Net of tax at the Adjusted Group effective tax rate, except for gains and losses from sale of businesses and certain other non-operational items, which are net of the actual related provision for taxes. Q4 2015 Financial Information 40 ($ in millions, except per share data in $) 2015 2014 EPS(1) EPS(1) Net income (attributable to ABB) 204 0.09 680 0.30 Restructuring and restructuring-related expenses(2), (3) 389 0.18 69 0.03 Gains and losses from sale of businesses, acquisition-related expenses and certain non-operational items(4) 66 0.03 (76) (0.03) FX/commodity timing differences in income from operations(2) 40 0.02 32 0.01 Acquisition-related amortization(2) 54 0.02 67 0.03 Operational net income 75 30.34 77 20.34 Constant currency Operational EPS adjustment 0.01 – 0.34 Operational EPS (constant currency basis) 0.35 ($ in millions, except per share data in $) 2015 2014 EPS(1) EPS(1) Net income (attributable to ABB) 1,933 0.87 2,594 1.13 Restructuring and restructuring-related expenses(2), (3) 492 0.22 171 0.07 Gains and losses from sale of businesses, acquisition-related expenses and certain non-operational items(4) (221) (0.10) 107 0.05 FX/commodity timing differences in income from operations(2) 13 0.01 120 0.05 Acquisition-related amortization(2) 224 0.10 275 0.12 Operational net income 2,769 1.24 2,939 1.28 Constant currency Operational EPS adjustment 0.11 – 1.28 Operational EPS (constant currency basis) 1.35

Net debt / (Net cash) Definition Net debt / (Net cash) Net debt / (Net cash) is defined as Total debt less Cash and marketable securities. Total debt Total debt is the sum of Short-term debt and current maturities of long-term debt, and Long-term debt. Cash and marketable securities Cash and marketable securities is the sum of Cash and equivalents, and Marketable securities and short-term investments. Reconciliation December 31, ($ in millions) 2015 2014 2013 2012 2011 Short-term debt and current maturities of long-term debt 1,454 353 453 2,537 765 Long-term debt 5,985 7,312 7,538 7,497 3,215 Total debt 7,439 7,665 7,991 10,034 3,980 Cash and equivalents 4,565 5,443 6,021 6,875 4,819 Marketable securities and short-term investments 1,633 1,325 464 1,606 948 Cash and marketable securities 6,198 6,768 6,485 8,481 5,767 Net debt / (Net cash) 1,241 897 1,506 1,553 (1,787) Net working capital as a percentage of revenues Definition Net working capital as a percentage of revenues Net working capital as a percentage of revenues is calculated as Net working capital divided by Adjusted revenues for the trailing twelve months. Net working capital Net working capital is the sum of (i) receivables, net, (ii) inventories, net, and (iii) prepaid expenses; less (iv) accounts payable, trade, (v) billings in excess of sales, (vi) advances from customers, and (vii) other current liabilities (excluding primarily: (a) income taxes payable, (b) current derivative liabilities, (c) pension and other employee benefits, and (d) payables under the share buyback program); and including the amounts related to these accounts which have been presented as either assets or liabilities held for sale. Adjusted revenues for the trailing twelve months Adjusted revenues for the trailing twelve months includes total revenues recorded by ABB in the twelve months preceding the relevant balance sheet date adjusted to eliminate revenues of divested businesses and the estimated impact of annualizing revenues of certain acquisitions which were completed in the same trailing twelve-month period. Reconciliation December 31, ($ in millions, unless otherwise indicated) 2015 2014 2013 Net working capital: Receivables, net(1) 10,061 11,078 12,146 Inventories, net 4,757 5,376 6,004 Prepaid expenses 225 218 252 Accounts payable, trade (4,342) (4,765) (5,112) Billings in excess of sales (1,375) (1,455) (1,714) Advances from customers (1,598) (1,624) (1,726) Other current liabilities(2) (3,127) (3,286) (3,541) Net working capital 4,601 5,542 6,309 Total revenues for the twelve months ended 35,481 39,830 41,848 Adjustment to annualize/eliminate revenues of certain acquisitions/divestments – (613) 460 Adjusted revenues for the trailing twelve months 35,481 39,217 42,308 Net working capital as a percentage of revenues (%) 13.0% 14.1% 14.9% (1) At December 31, 2015, 2014 and 2013 Receivables, net, included $2,457 million, $2,941 million and $3,301 million, respectively, of unbilled receivables. (2) Amounts exclude $690 million, $971 million and $701 million at December 31, 2015, 2014 and 2013, respectively, related primarily to (a) income taxes payable, (b) current derivative liabilities, (c) pension and other employee benefits, and (d) payables under the share buyback program.

Free cash f low conversion to net income Definition Free cash flow conversion to net income Free cash flow conversion to net income is calculated as Free cash flow divided by Net income attributable to ABB. Free cash flow (FCF) Free cash flow is calculated as net cash provided by operating activities adjusted for: (i) purchases of property, plant and equipment and intangible assets, (ii) proceeds from sales of property, plant and equipment, and (iii) changes in financing and other non-current receivables, net (included in other investing activities). Reconciliation Year ended December 31, ($ in millions, unless otherwise indicated) 2015 2014 2013 2012 2011 Net cash provided by operating activities 3,818 3,845 3,653 3,779 3,612 Adjusted for the effects of: Purchases of property, plant and equipment and intangible assets (876) (1,026) (1,106) (1,293) (1,021) Proceeds from sale of property, plant and equipment 68 33 80 40 57 Changes in financing receivables and other non-current receivables 9 5 5 29 (55) Free cash flow 3,019 2,857 2,632 2,555 2,593 Net income attributable to ABB 1,933 2,594 2,787 2,704 3,168 Free cash flow conversion to net income 156% 110% 94% 94% 82% Finance net Definition Finance net is calculated as Interest and dividend income less Interest and other finance expense. Reconciliation Year ended December 31, Three months ended December 31, ($ in millions) 2015 2014 2015 2014 Interest and dividend income 77 80 21 23 Interest and other finance expense (286) (362) (63) (107) Finance net (209) (282) (42) (84) Book-to-bill ratio Definition Book-to-bill ratio is calculated as Orders received divided by Total revenues. Reconciliation Three months ended December 31, ($ in millions, unless otherwise indicated) 2015 2014 Orders received 8,262 9,365 Total revenues 9,242 10,346 Book-to-bill ratio 0.89 0.91 Year ended December 31, ($ in millions, unless otherwise indicated) 2015 2014 2013 2012 2011 Orders received 36,429 41,515 38,896 40,232 40,210 Total revenues 35,481 39,830 41,848 39,336 37,990 Book-to-bill ratio 1.03 1.04 0.93 1.02 1.06

Cash return on in vested capital (CROI) Definition Cash return on invested capital (CROI) Cash return on invested capital is calculated as Adjusted cash return divided by Capital invested. Adjusted cash return Adjusted cash return is calculated as the sum of (i) net cash provided by operating activities, (ii) interest paid and (iii) estimate to annualize/eliminate the net cash provided by operating activities of certain acquisitions / (divestments). Adjusted total fixed assets Adjusted total fixed assets is the sum of (i) property, plant and equipment, net, (ii) goodwill, (iii) other intangible assets, net, and iv) investments in equity-accounted companies less v) deferred tax liabilities recognized in certain acquisitions. Net working capital Net working capital is the sum of (i) receivables, net, (ii) inventories, net, and (iii) prepaid expenses; less (iv) accounts payable, trade, (v) billings in excess of sales, (vi) advances from customers, and (vii) other current liabilities (excluding primarily: (a) income taxes payable, (b) current derivative liabilities, (c) pension and other employee benefits, and (d) payables under the share buyback program); and including the amounts related to these accounts which have been presented as either assets or liabilities held for sale. Capital invested Capital invested is the sum of (i) Adjusted total fixed assets, (ii) Net working capital and (iii) Accumulated depreciation and amortization. Reconciliation Year ended December 31, December 31, (1) Divestments: In 2014 HVAC, Power Solutions, Steel Structures and Full Service. Acquisitions: In 2013 Power-One. (2) Power-One acquired in 2013, Thomas & Betts acquired in 2012 and Baldor acquired in 2011. (3) Includes accumulated goodwill amortization up to December 31, 2001. Thereafter goodwill is not amortized (under U.S. GAAP) but subject to annual testing for impairment. Q4 2015 Financial Information 43 ($ in millions, unless otherwise indicated) 2015 2014 2013 Adjusted total fixed assets: Property, plant and equipment, net 5,276 5,652 6,254 Goodwill 9,671 10,053 10,670 Other intangible assets, net 2,337 2,702 3,297 Investments in equity-accounted companies 178 177 197 Total fixed assets 17,462 18,584 20,418 Less: deferred taxes recognized in certain acquisitions(2) (1,901) (1,928) (1,959) Adjusted total fixed assets 15,561 16,656 18,459 Net working capital (as defined above) 4,601 5,542 6,309 Accumulated depreciation and amortization: Accumulated depreciation of property, plant and equipment 6,840 6,905 7,127 Accumulated amortization of intangible assets including goodwill(3) 3,175 2,767 2,793 Accumulated depreciation and amortization 10,015 9,672 9,920 Capital invested 30,177 31,870 34,688 Cash return on invested capital (CROI) 13.4% 12.7% 11.6% ($ in millions, unless otherwise indicated) 2015 2014 2013 Adjusted cash return: Net cash provided by operating activities 3,818 3,845 3,653 Interest paid 221 259 287 Estimate to annualize/eliminate the net cash provided by operating activities of certain acquisitions / (divestments)(1) (58)86 – Adjusted cash return 4,039 4,046 4,026

ABB Ltd Corporate Communications P.O. Box 8131 8050 Zurich Switzerland Tel: Fax: +41 (0)43 317 71 11 +41 (0)43 317 79 58 www.abb.com

ABB nominates four new Board members Zurich, Switzerland, February 3, 2016 – Nominees complement expertise of current Board in areas related to priorities of ABB’s Next Level strategy; Agnelli not standing for reelection ABB has nominated four new members for election to its Board of Directors. With this move, the Board of Directors will strengthen its expertise in areas related to the shift in the center of gravity of the company’s activities. The nominees all have leadership roles in global companies and collectively bring extensive international experience in a broad range of industries. The shareholders will vote on all nominations at the company’s next annual general meeting (AGM) on April 21, 2016. “I am delighted to present our shareholders with such high-caliber candidates for election to the Board,” said Peter Voser, Chairman of ABB’s Board of Directors. “Our four nominees have a tremendous range of experience, including in areas we are strengthening under our Next Level strategy, such as software, service and project management, and in emerging markets where we continue to see prospects for profitable growth.” The nominees are: • Frederico Fleury Curado, Chief Executive Officer (CEO) of Brazilian aircraft manufacturer Embraer since 2007. Curado has been instrumental in the international expansion of Embraer, shaping the company’s global footprint and product portfolio. He has broad functional experience ranging from manufacturing, quality management, operational excellence, to technology and commercial. He is a board member of Iochpe-Maxion in Brazil and Transocean in Switzerland. Robyn Denholm, Chief Financial Officer (CFO) of Silicon Valley-based Juniper Networks since 2007 and Chief Operating Officer since 2013. Denholm has also worked at Sun Microsystems, Toyota and Arthur Andersen, giving her broad industry background with experience in the audit, automotive, computer systems/software and networking equipment industries. She is a board member of Tesla Motors and previously served on the board of Echelon in the US. David Meline, CFO of the California-based global biotechnology company Amgen since 2014. Prior to joining Amgen, Meline was CFO at 3M from 2008 to 2014. With degrees in both Mechanical Engineering and Economics, he began his career as an engineer at AT&T and worked for more than 20 years at General Motors in finance and engineering roles in Brazil, Kenya, Korea, Singapore, Switzerland and the US. He is a board member of TRW Automotive in the US. Satish Pai, Deputy Managing Director, Hindalco Industries Ltd., an industry leader in aluminium and copper, and the metals company of the $41 billion Aditya Birla Group. Pai joined Hindalco in 2013 from Schlumberger, the oil and gas services company, where he acquired broad experience in operations and technology management. During his 28 years with Schlumberger, Pai held roles in engineering, R&D, services and project management in France, Russia, Thailand, the UK, US and United Arab Emirates. Pai is currently in charge of Hindalco’s operations in India and is a board member of Novelis Inc. in the US. • • • Long-time Board member Roger Agnelli has decided not to stand for reelection. Agnelli, who is the former President and CEO of Vale and founding partner and CEO of AGN Holding in Brazil, joined the Board in 2002 and is a member of its Finance, Audit and Compliance Committee. “Roger joined ABB’s Board at a critical time for the company and has been instrumental in the Board’s drive to strengthen ABB’s foundations and create the conditions for renewed growth,” said Voser. “He has been a great advocate of our Next Level strategy, and I am honored to have had the opportunity to work with him.” The election of ABB’s nominees would bring the number of Board members from eight today to 11.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility, industry, and transport and infrastructure customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in roughly 100 countries and employs about 135,000 people. For more information please contact: ABB Group Media Relations Antonio Ligi, Sandra Wiesner Tel: +41 43 317 7111 media.relations@ch.abb.com ABB Ltd Affolternstrasse 44 8050 Zurich Switzerland