NOVEMBER 2019 ABB Our digital treasury technology transformation

— NOVEMBER 2019 ABB: Our digital treasury technology transformation 2020 AND BEYOND

— ABB: Our digital treasury technology transformation Background: ABB and Corporate Treasury at a glance Key pointers ABB: • Sectors –Electrification, industrial automation, Motion, Robotics+Discrete Automation, Power Grids • Revenues – 25 BUSD • Employees – roughly 140 k • Presence – global • History of expansion through organic growth and M&A • Sale of PG (Revenues 10 BUSD) division to Hitachi to be executed during 2020 Key pointers corporate treasury: • Groups-Corporate Finance, Export Trade Finance, Corporate Credit Risk, Corporate Treasury Operations, Pension Management, Treasury Governance and Control • Corporate Treasury is the in-house bank of ABB and responsible for managing the financial exposures of ABB group. As the main interface between ABB and the external financial world, Corporate Treasury is the central entry point for most financial activities of ABB companies. • Regionally organized with centers of expertise/hubs being built up as extended workbenches • 100 BUSD fx derivative trading volumes to the market; 600 MUSD commodity hedge trading volumes • Technical support through dedicated Treasury-IS organization (Krakow)

— ABB: Our digital treasury technology transformation Background: ABB and Technology HISTORICALLY DECENTRALIZED CORPORATE STRUCTURE - The Barnevic success model: act globally, sell locally - Many kingdoms with own pockets -> diverse technology landscape, multiple ERPs - Challenges at group level for consolidated overview TECHNOLOGY AND INNOVATIVE SPIRIT AT GROUP COMPANY LEVEL - 90 s - seeding ground for current WSS/Ion Suite solution: implemented STP TMS solution for various regional treasuries - Investment to build up core IT team as part of group corporate treasury - Technology race in treasury to keep up with business needs - 00 s - Filling the gaps with own developments in treasury automation (circa 2000 own internet trading platform); leveraging technological jump in developing web applications - Expansion of WSS-TMS solution to cover debt/equity/credit default trading - Euphoria strangled by World. Com/Enron/bubble bursting and the begin of the efforts around SOX 404

— ABB: Our digital treasury technology transformation Background: ABB and Corporate Treasury at a glance

— ABB: Our digital treasury technology transformation Digital push ABB ABILITY - 2016 - Group’s ABB digital project with goal to strengthen ABB’s position as a pioneering technology leader and global digital champion - Chief Digital Officer (LINK) TREASURY - Formalize the effort and work in parallel with ABB digital push to: - Establish group treasury digital strategy - Build awareness of future technologies with top ten tech banks - Review importance of digital technologies within Treasury and design roadmap around this - Treasury technology officer to undertake the effort to investigate and support this initiative - Translate the findings into execution: 2 cornerstone projects, many underlying high value potentials - Evaluate new trade and funding business models to support ABB Ability team Formalize a digital strategy and get buy-in from management to formalize how you want to address the challenges of automation, digitalization and new technologies.

— ABB: Our digital treasury technology transformation High Level Strategy: IS Delivery 2019 - 2023 Core Solutions: Continuous Development to support strategic initiatives (PG, CHCAL) Highly Strategic GCM: Global Rollout and Solution Deepening Core Solutions: Upgrade and Replacement Projects Technology Leverage: Move of existing solutions to Saa. S Treasury Automation: ITGC, User Mgmt, Cash Mgmt, Document Mgmt Less Strategic March 3, 2021 2019 2020 2021 2022 2023

— ABB: Our digital treasury technology transformation Interface to banks SWIFT Network GCM: High Level Architecture GCM solution Interface to ABB ERPs & business applications Slide 7 In House Banking Reporting Roles & Configuration Reference Data sources Active Directory (AD) User Access Management (GRC) Master Data ABB Integration Platform(s) March 3, 2021 Payments and Bank Comm. Liquidity Management Country Treasury Systems ABB Group Treasury Systems Bank Account Management Cash Ops & Elec. Bank Statements Bank Interfacing non – SAP ERPs Integration Interfacing 30+ SAP ERPs & Treasury Systems ABB Integration Platform(s) EP IS ERPs (SAP Torque, SAP 4. 7) User Interfaces / Fiori Apps SWIFT Service Bureau (FINASTRA) Deutsche Bank Citibank JPMorgan Banco de Chile Bo. A Barclays BBVA BNP Paribas China CB Danske ICBC K&H UBS Uni. Credit Westpac 150+ banks

— ABB: Our digital treasury technology transformation What temperature is our digital thermometer Robotrading WARM - Moving to Saa. S solutions (Coprocess – Netting) - Reduce local footprint when alternatives exist (Total. Messaging) - Driving projects that further integrate group needs but also support country treasuries (S 4/HANA Global Cash Management Project) - Constantly review digital offerings best of breed solutions (own or off the shelf) - Push projects that increase automation levels internally and externally Interfacing API Blockchain True In. House Bank Solution Enhanced Standards Big Data Analytics Cloud LESS WARM - Digital Noise (including API) - RPA / Big Data External Data Feeds Integration & Automation Cyber Security Maturity levels of innovation cover the full range. Be prepared also to ask questions! APIs

— ABB: Our digital treasury technology transformation Resulting in a highly complex/fairly automated environment Automation (as with digitalization) results in a risk and responsibility transfer which neither the receiving party and business are prepared for.

— ABB: Our digital treasury technology transformation Is digital really the only element that is transforming us? INTERNAL: - Material weakness in IT solutions supporting corporate treasury (article) - Cost cutting within IS organization/Outsourcing strategy - Transformation of the treasury organization (buildup of Co. E, slimming of offering) EXTERNAL: - Increase in opportunities due to Fintech/digital “revolution” (APIs, RPA, Instantaneous Payments. . )

— ABB: Our digital treasury technology transformation Our green bananas CASES - Off the shelf solutions with immature roles/security mechanisms – normal users can modify data that they should not be allowed to - Off the shelf solutions with immature logging capabilities – impossible to determine who actually has access to your solution at what type - Bot technologies move towards anonymity – who actually performed tasks (and therefore the responsibility) becomes blurred. How to tell the auditor that bot x actually executed the payment twice? - Various other cases… WHY ARE THE BANANAS GREEN? - Fintech stresses prototyping and MVP to deliver a product of value without stressing fundamental components/stability (cybercompatible? Audit compatible? ), perhaps driven by short term vision - Wrong mix of specialists developing, implementing or maintaining solutions - Other…

— ABB: Our digital treasury technology transformation Lessons learned • Formalize a digital strategy and actively engage in discussions with peers, suppliers and banks on where technology is going and determine what might be best for you • Ensure that all parties involved have an understanding of what is being implemented and have the resources to maintain such solutions. • Product Ownership Mindset: Drive prioritization of technology implementation based on value not based on hype. [Success is measured not only in the talk, but by implementing sustainable solutions that deliver to the expectations] • Ensure that within your core banks you have several that are digitally savvy (and have proven this not only in good times) And finally: Be careful of the digital green bananas. .

March 3, 2021 Slide 13

— ABB: Our digital treasury technology transformation Medium level tech driven strategy 2020 Q 3 -Q 4 2019 2021 WSS / all systems Rework for PG Carve-Out Highly Strategic Payments / Confirmation CIT Migration to Saa. S RFP IGT+ Migration to Saa. S ICE integration WSS Replacement WSS / all systems Rework for CHCAL Payments / Confirmation Implementation TFL RFP WSS Replacement RFP Bellin Move to Saa. S ITGC Automation User Automation TFL GCM Country rollout Payments/Statements GCM Liq Forecasting GCM IHB ATRIM Bellin ERP/expansion of country coverage Java replacement GTO Automation / Lotus Notes Replacement Bank Station Automation RITA Rebuild Less Strategic CHCAL PG Carveout Technology / End of Life ITGC March 3, 2021 Slide 14 Continuous Development / Country Rollout

— ABB: Our digital treasury technology transformation Business Strategy IS Demands Other Drivers PG Carveout CHCAL Prioritization Platform Consolidation End of Life / Licensing* Technology Existing initiatives Strategy Regulatory - March 3, 2021 Cleaning/reconfiguring of existing systems in TSA/consolidation phase Stretched business resources Continued investment in existing initiatives Slide 15 Budgeting ITGC Project Planning, Execution and Delivery Continuous Development - RFP process for Finastra / next TMS Move to Saa. S (CIT, Bellin) Replacement LN solutions EOL-SQL SP 3: 7. 2024; Windows 2012 10. 2023