Highlights 2016

Increased operational EBITA margin by 50 basis points

to 12.4 percent in a continued challenging market environment

Basic earnings per share increased 2 percent(1)

and operational earnings per share(2) was 4 percent(3) higher

Accelerating momentum in operational excellence

through successful savings programs and strong net working capital management

Delivered strong cash performance,

with free cash flow demonstrating ABB’s consistent cash generation throughout the year

Returned $2.9 billion in cash to shareholders

through dividend payment and share repurchase. Board proposes eighth consecutive dividend increase

Launched stage 3 of Next Level strategy

to build on successful transformation as well as strengthening position as pioneering technology leader and digital champion

Successful launch of ABB Ability™

combining ABB’s portfolio of digital solutions across all customer segments

Key Figures 2016

$ in millions unless otherwise indicated

FY 2016

FY 2015

(1)

Earnings per share growth rates are computed using unrounded amounts.

(2)

For definitions of non-GAAP measures, see Supplemental information section.

(3)

In constant currency using 2014 exchange rates.

Orders

33,379

36,429

Revenues

33,828

35,481

Operational EBITA(2)

4,191

4,209

as % of operational revenues

12.4%

11.9%

Net income

1,899

1,933

Basic EPS ($)

0.88

0.87

Operational EPS(2) ($)

1.29

1.26

Cash flow from operating activities

3,843

3,818

Free cash flow

3,065

3,019

Cash return on invested capital (CROI)

13.8%

13.4%

Revenues 2016 by division (pie chart)Revenues 2016 by division (pie chart)
Service and software revenues as % of total revenues 2016 (pie chart)Service and software revenues as % of total revenues 2016 (pie chart)
2016
Orders by region

Europe, 34%
Americas, 28%
AMEA(1), 38%

(1) Asia, Middle East and Africa

Employees by region 2016 (pie chart)Employees by region 2016 (pie chart)
2014-2016
Free cash flow and conversion rate

($ bn and %)

2014-2016 – Free cash flow and conversion rate (bar chart)2014-2016 – Free cash flow and conversion rate (bar chart)
2009-2016
Dividend payout

(CHF per share)

2009-2016 – Dividend payout (CHF per share) (bar chart)2009-2016 – Dividend payout (CHF per share) (bar chart)

* proposed