UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of April 2024

Commission File Number 001-16429

ABB Ltd

(Translation of registrant’s name into English)

Affolternstrasse 44, CH-8050, Zurich, Switzerland

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 Form 20-F

☒

 Form 40-F

⬜

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

⬜

Note:

 Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an

attached annual report to security holders.

Indication by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

⬜

Note:

 Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or

other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in

which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the

home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press

release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event,

has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing

the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 Yes

⬜

 No

☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-

This Form 6-K consists of the following:

1.

Press release issued by ABB Ltd dated April 18, 2024 titled “Q1 2024 results”.

2.

Q1 2024 Financial Information.

3.

Announcements regarding transactions in ABB Ltd’s Securities made by the directors or the members of the

Executive Committee.

The information provided by Item 2 above is hereby incorporated by reference into the Registration Statements on Form F-3 of

ABB Ltd and ABB Finance (USA) Inc. (File Nos. 333-223907 and 333-223907-01) and registration statements on Form S-8

(File Nos. 333-190180, 333-181583, 333-179472, 333-171971 and 333-129271) each of which was previously filed with the

Securities and Exchange Commission.

2

—

“Against high comparables, our Q1 performance shows the year has started off well with

stronger than expected order momentum, record-high margin and strong cash delivery. This

makes us confident to nudge up our margin expectation for 2024.”

Björn Rosengren

, CEO

—

ZURICH, SWITZERLAND, APRIL 18, 2024

Q1 2024 results

Positive book-to-bill, record-high margin and

strong cash flow

●

 Orders $8,974 million , -5%; comparable

1

 -4% 

●

 Revenues $7,870 million, 0%; comparable

1

 +2% 

●

 Income from operations $1,217 million; margin 15.5% 

●

 Operational EBITA

1

 $1,417 million; margin

1

 17.9%

●

 Basic EPS $0.49; -12%

2

●

 Cash flow from operating activities $726 million; +157%

—

Q1 2024

First three months

Press Release

Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange

KEY FIGURES

CHANGE

($ millions, unless otherwise indicated)

Q1 2024

Q1 2023

US$

Comparable

1

Orders

8,974

9,450

-5%

-4%

Revenues

7,870

7,859

0%

2%

Gross Profit

2,935

2,716

8%

as % of revenues

37.3%

34.6%

+2.7 pts

Income from operations

1,217

1,198

2%

Operational EBITA

1

1,417

1,277

11%

11%

 3

as % of operational revenues

1

17.9%

16.3%

+1.6 pts

Income from continuing operations, net of tax

914

1,065

-14%

Net income attributable to ABB

905

1,036

-13%

Basic earnings per share ($) 

0.49

0.56

-12%

2

Cash flow from operating activities

726

282

157%

Free cash flow

1

551

162

240%

1

For a reconciliation of non-GAAP measures, see “supplemental reconciliations and definitions” in the attached Q1 2024 Financial Information.

2

EPS growth rates are computed using unrounded amounts.

3

Constant currency (not adjusted for portfolio changes).

ABB INTERIM REPORT

I

Q1 2024

 2

My key take-aways from the first quarter of 2024 are the better

than expected order intake of $9 billion, positive book-to-bill of

1.14 and record-high Operational EBITA margin as well as the

free cash flow of $551 million representing a strong delivery for

a first quarter. We published our sustainability report, where a

highlight was the proof point of one of our core customer value

propositions - reduced greenhouse gas (GHG) emissions. From

products sold in 2023, and through their lifecycle, we enabled

our customers to avoid 74 megatons of GHG emissions. At the

current total of 139 megatons, we are on a good path towards

our ambition of helping customers avoid 600 megatons of CO

₂

e

emissions throughout the lifetime of products sold from 2022 to

2030.

As expected, orders declined from last year’s record-high

comparable, however the drop was limited at 5% (4%

comparable). To summarize the quarter, we see a continued

high level of customer activity in the project and systems areas,

and I am encouraged by the positive order development in

Electrification’s short-cycle businesses. So, while ABB’s total

orders declined in the first quarter, I feel even more confident

about 2024 than I did coming into the year.

It was impressive to see new record-high order intake in both

Electrification and Motion business areas. Process Automation

orders declined from the all-time-high comparable, but

remained fairly consistent with strong recent quarterly levels. At

the start of this year, we called the fourth quarter the trough for

Robotics & Discrete Automation order level. This realized, and

as expected order intake increased sequentially . However, it

declined sharply year -on-year on the back of customers

normalizing order patterns after a pre-buy period.

Revenues remained stable (up 2% comparable), with

comparable growth supported in equal parts by price and

volumes. I was pleased to see the positive gross margin

improvement of 270 basis points to 37.3 %, supported by a

positive development in all business areas. A more efficient

execution of slightly higher volumes and price contributed to the

160 basis points increase in Operational EBITA margin to the

new record-high of 17.9%. In my view this is a good sign that

there is still upside potential in ABB and we can make mid-term

improvements within the new higher margin target range

announced in November.

The strong cash flow start to the year positions us for what we

anticipate to be another good annual free cash flow delivery of

at least similar to last year’s level. Using the cash to expand

know-how and footprint through acquisitions is an important

path to creating long -term shareholder value. It was nice to see

the announced acquisition of SEAM, which would add energy

asset management and advisory services to clients across

industrial and commercial building markets to the Electrification

Service division. We have a good target pipeline, including

some deals which are slightly more sizeable than most of the

recent announcements. The share buyback program is a tool

we use to distribute residual excess cash, and we announced

another annual program of up to $1 billion which launched on

April 1. The size of the program is consistent with last year’s,

although the time frame for execution is shorter as it runs until

the end of January 2025, to align with the announcement of Q4

2024 results and 2024 dividend proposal.

During the quarter we announced my decision to retire as CEO

from ABB. I remain fully committed until the end of July when

Morten Wierod takes the reins, and thereafter I will support the

transition in an advisory role until the end of the year. I am

happy to see Morten take this step and I am confident that the

ABB Way operating model will be even further engrained in our

ways of working under his already proven leadership. While we

regret to see him go, I want to congratulate Tarak Mehta on his

new opportunity outside of ABB. Tarak has made an

outstanding contribution to the success of our company and I

wish him all the best for this next step on his journey. The

process to find new leaders to the business areas Electrification

and Motion is ongoing and Morten looks to have a full team in

place when he takes office in August.

Björn Rosengren

CEO

In the

second quarter of 2024

, we anticipate a mid-single -digit

comparable revenue growth year-on-year and the Operational

EBITA margin to be slightly higher than in the first quarter 2024.

In full-year 2024

, we expect a positive book -to-bill, comparable

revenue growth to be about 5% and the Operational EBITA

margin to be about 18%.

CEO summary

Outlook

ABB INTERIM REPORT

I

Q1 2024

 3

The first quarter order intake of $8,974 million represents one of

the strongest quarterly levels for ABB Group, yet orders declined

by 5% (4% comparable) from last year’s record-high. Two

business areas even improved from last year’s all-time-highs

with Motion’s order growth at 2% (1% comparable) and

Electrification at a strong 6% (8% comparable). In Electrification,

the year-on-year improvement was supported by a positive

development in both the long- and short-cycle businesses. In

Process Automation the underlying market activity remained

robust, but year-on-year orders declined by 20% (20%

comparable) with growth challenged by the record-high

comparable and the timing of orders in the current quarter. In

Robotics & Discrete Automation, orders declined sharply by 30%

(30% comparable) due to the still on-going normalization of

order patterns in discrete automation and a softer robotics

market.

Orders in the Americas dropped by 3% (3% comparable) as a

positive comparable development in the United States was

offset by declines elsewhere and mainly due to the timing of

large orders. Europe declined by 8% (9% comparable) weighed

down by important markets like Germany and Italy. Asia, Middle

East and Africa declined by 4% (0% comparable) where the

strong comparable development in countries like India, Japan

and Australia offset a sharp decline in China.

In transport & infrastructure, there were positive developments in

marine, ports and rail . 

Industrial areas with particularly strong development in all regions

were utilities and datacenters.

Orders in the buildings segment improved overall, due to the

combined impact from a positive development in the commercial

area driven by the United States, while the residential segment

remained stable in the US and softened slightly in other regions. 

In the robotics-related segments, orders declined in the 

automotive, general industry and consumer -related segments.

The machine builder segment declined as customers normalized

order patterns after earlier pre-buys.

On a very challenging comparable, orders declined in the large

process-related segments of oil & gas, pulp & paper and mining.

However, a positive development was recorded in the still less

sizeable low carbon-related areas such as nuclear, carbon capture,

hydrogen etc. The underlying market sentiment remained robust

across the board. 

Revenues remained stable (up 2% comparable) and amounted to

$7,870 million. On a business area level there were variances, with

strong growth in Electrification and Process Automation, while

Motion and Robotics & Discrete Automation declined. Group

revenues were supported by execution of the strong order backlog

which more than offset weakness in parts of the short-cycle

businesses. In total, price and volume contributed in equal parts to

comparable growth.

Revenues by region

($ in millions,

unless otherwise

indicated)

CHANGE

Q1 2024

Q1 2023

US$

Comparable

Europe

2,748

2,872

-4%

-5%

The Americas

2,789

2,653

5%

7%

Asia, Middle East

and Africa

2,333

2,334

0%

5%

ABB Group

7,870

7,859

0%

2%

Orders by region

($ in millions,

unless otherwise

indicated)

CHANGE

Q1 2024

Q1 2023

US$

Comparable

Europe

3,298

3,582

-8%

-9%

The Americas

2,904

2,985

-3%

-3%

Asia, Middle East

and Africa

2,772

2,883

-4%

0%

ABB Group

8,974

9,450

-5%

-4%

Growth

Q1

Q1

Change year-on-year

Orders

Revenues

Comparable

-4%

2%

FX

0%

-1%

Portfolio changes

-1%

-1%

Total

-5%

0%

Orders and revenues 

ABB INTERIM REPORT

I

Q1 2024

 4

Gross profit

Gross profit increased by 8% (9% constant currency) to

$2,935 million, reflecting a gross margin improvement of 270 basis

points to 37.3%. Gross margin improved in all four business areas.

Income from operations

Income from operations amounted to $1,217 million and improved

by 2% year-on-year. Compared with the last year period, the

earnings improvement was supported by a strong er operational

performance partially offset by higher expenses related to the ABB

Way transformation program and adverse currency hedging

impacts. Margin on Income from operations was 15.5%, up by

30 basis points year -on-year.

Operational EBITA 

Despite limited revenue growth, the Operational EBITA improved

by 11% year-on-year to $1,417 million and the margin increased

by 160 basis points to a new all-time-high of 17. 9%. Contribution

from operational leverage on slightly higher volumes, a positive

price impact and effects from continuous efficiency measures more

than offset the higher expenses related to labor costs, Research &

development (R&D) and Selling, general and administrative

(SG&A) expenses. Operational EBITA in Corporate and Other

amounted to -$1 18 million, of which -$6 4 million related to the

underlying Corporate costs. The remaining -$54 million related to

the E-mobility business where operational performance was

hampered by the ongoing reorganization to ensure a more focused

portfolio, and some inventory-related provisions. While E-mobility

is on track towards the improved portfolio, the financial benefits will

not be visible until towards the end of 2024.

Finance net

Net finance income contributed with a positive $20 million, an

improvement from last year’s expense of $21 million. The year-on-

year improvement is due to a combination of a lower net debt

position and favorable mix of interest rates between borrowings and

cash deposits.

Income tax

Income tax expense was $339 million with an effective tax rate of

27%. This is higher than last year’s rate of 10%, which was low due

to favorable resolution of a prior year tax matter relating to the

divestment of the Power Grids business.

Net income and earnings per share

Net income attributable to ABB was $905 million, representing a

reduction of 13% from last year, as the improved operational

performance this year did not offset last year’s positive benefits from

the low tax rate. This resulted in basic earnings per share of $0.49,

down from $0.56 in the last year period.

Operational EBITA

($ in millions)

Q1 2024

Q1 2023

Corporate and Other

E-mobility

(54)

(28)

Corporate costs, intersegment

eliminations and other

1

(64)

(83)

Total

(118)

(111)

1

Majority of which relates to underlying corporate

Earnings

ABB INTERIM REPORT

I

Q1 2024

 5

Net working capital

Net working capital amounted to $3,588 million, decreasing

year-on-year from $4,164 million as higher receivables and

contract assets were more than offset by higher customer

advances, and accounts payables. Net working capital as a

percentage of revenues

1

 was 11.2% which declined from

13.9% one year ago.

Capital expenditures

Purchases of property, plant and equipment and intangible

assets amounted to $181 million.

Net debt

Net debt

1

 amounted to $2,086 million at the end of the quarter

and decreased from $3,826 million year-on-year. The

sequential increase from $1,991 million was mainly due to the

initial dividend payment.

Cash flows

Cash flow from operating activities was $726 million,

representing a steep year-on-year increase from 

$282 million. Three out of four business areas increased cash

flow from operating activities. The increase was driven by better

operational performance and a lower build-up of net working

capital year-on-year mostly linked to trade receivables and

inventories.

Share buyback program

ABB has completed its share buyback program that was

launched in April 2023. Through this buyback program, ABB

repurchased a total of 21,387,687 shares – equivalent to 1.09%

of its issued share capital at launch of the buyback program –

for a total amount of approximately $0.83 billion. A new share

buyback program of up to $1 billion was launched on April 1,

2024, and will run to 31 January, 2025. ABB’s total number of

issued shares, including shares held in treasury, amounts to

1,882,002,575.

($ in millions, 

unless otherwise indicated)

Mar. 31

2024

Mar. 31

2023

Dec. 31

2023

Short term debt and current

maturities of long-term debt

1,957 

3,433 

2,607 

Long-term debt

6,346 

5,230 

5,221 

Total debt

8,303 

8,663 

7,828 

Cash & equivalents

4,102 

3,438 

3,891 

Restricted cash - current

18 

19 

18 

Marketable securities and 

short-term investments

2,097 

1,380 

1,928 

Cash and marketable securities

6,217 

4,837 

5,837 

Net debt (cash)*

2,086 

3,826 

1,991 

Net debt (cash)* to EBITDA ratio

0.4 

0.9 

0.4 

Net debt (cash)* to Equity ratio

0.16 

0.30 

0.14 

*

At March 31, 2024, March, 31, 2023 and Dec. 31, 2023, net debt(cash) excludes net pension

(assets)/liabilities of $(189) million, $(301) million and $(191) million, respectively.

Balance sheet & Cash flow

ABB INTERIM REPORT

I

Q1 2024

 6

Orders and revenues

The first quarter order intake of $4,392 million represents a

new record level, and increased by 6% (8% comparable)

from last year. Continued robust demand for the project and

systems businesses which this quarter was coupled with

strong year-on-year growth in the short-cycle businesses.

The book-to-bill ratio was 1.19.

●

Orders remained stable or increased in most customer

segments with particular strength in datacenters and

utilities. The overall buildings segment improved, as a

positive development in the commercial area driven by

the United States more than offset a slight weakness in

the residential segment , which was stable in the US, and

softened slightly in other regions. 

●

From a geographical perspective order intake improved in

all three regions. Europe was up by 3% (2% comparable).

Growth in the Americas was 9% (11% comparable) with

the United States outpacing the region at 13% (17%

comparable). In Asia, Middle East and Africa orders

improved by 6% (11% comparable) with strong growth in

countries like India offsetting a slight drop in China of 7%

(2% comparable).

●

Revenues increased by 3% (6% comparable) to

$3,680 million with a positive development in most

divisions. Higher volumes were the main driver to

comparable growth, with the added support from slightly

increased pricing. Execution of the order backlog

combined with higher demand in the short-cycle

businesses supported the quarterly revenue generation.

Profit

Record-high Operational EBITA of $826 million and all-

time-high Operational EBITA margin of 22.4%, up by 340

basis points year-on -year.

●

Operational leverage on higher volumes and impact from

continuous improvement measures were the key drivers

to the higher margin , year-on-year. 

●

A positive price impact more than offset higher salary-

related costs as well as an increase in R&D and SG&A

spend.

●

Margins improved or remained stable in all divisions.

CHANGE

($ millions, unless otherwise indicated)

Q1 2024

Q1 2023

US$

Comparable

Orders

4,392

4,141

6%

8%

Order backlog

7,389

7,101

4%

12%

Revenues

3,680

3,590

3%

6%

Operational EBITA

826

677

22%

as % of operational revenues

22.4%

19.0%

+3.4 pts

Cash flow from operating activities

547

395

38%

No. of employees (FTE equiv.)

50,700

51,130

Growth

Q1

Q1

Change year-on-year

Orders

Revenues

Comparable

8%

6%

FX

0%

0%

Portfolio changes

-2%

-3%

Total

6%

3%

—

Electrification

ABB INTERIM REPORT

I

Q1 2024

 7

Orders and revenues

Robust customer activity in the projects- and systems-related

businesses offset some weakness in the short -cycle areas. In

total, a new all-time-high order level of $2,303 million was

achieved, representing an improvement of 2% (1%

comparable) from last year. Book-to-bill was 1.26. Some initial

encouraging sequential trading signs in the short -cycle

businesses were noted.

●

The Traction division was the engine for order growth,

including a large order of $150 million to supply complete

traction packages for 65 new six-car passenger trains for

the Queensland Train Manufacturing Program. The new

trains are to be operational in time for the Brisbane 2032

Olympics.

●

Besides the rail segment, a stronger order momentum was

noted in the process -related segments of oil & gas and

power generation including grid stabilization equipment.

Some slowness from last year’s high level was noted in

food & beverage, pulp & paper, metals and chemicals.

HVAC remained muted. 

●

Orders in Asia, Middle East and Africa were up by 16% (21%

comparable), supported by the large order in Australia, while

China declined by 12% (8% comparable). The Americas

softened by 1% (4% comparable) including the decline of 4%

(6% comparable) in the United States. Europe declined by

8% (11% comparable). 

●

Revenues amounted to $1,829 million and declined by 6%

(6% comparable) due to weakness in the short -cycle

businesses and parts of the backlog execution impacted by

some delivery timing changes.

Profit 

Operational EBITA of $343 million declined by 6% and the

Operational EBITA margin softened by 40 basis points to 18.5%.

●

Operational leverage on the lower production volumes in the

short-cycle businesses weighed on results.

●

The positive price impact and the stringent cost focus more

than offset the adverse impacts from the higher expenses

related to salaries, R&D and SG&A, year-on-year. 

Growth

Q1

Q1

Change year-on-year

Orders

Revenues

Comparable

1%

-6%

FX

0%

-1%

Portfolio changes

1%

1%

Total

2%

-6%

—

Motion

CHANGE

($ millions, unless otherwise indicated)

Q1 2024

Q1 2023

US$

Comparable

Orders

2,303

2,262

2%

1%

Order backlog

5,612

5,102

10%

11%

Revenues

1,829

1,940

-6%

-6%

Operational EBITA

343

366

-6%

as % of operational revenues

18.5%

18.9%

-0.4 pts

Cash flow from operating activities

352

149

136%

No. of employees (FTE equiv.)

22,380

21,000

ABB INTERIM REPORT

I

Q1 2024

 8

Orders and revenues

The underlying markets remained buoyant. However, last

year’s record high comparable was strongly supported by

the timing of large orders received, and in contrast some

timing delay in orders in the current quarter were noted.

Order intake declined by 20% (20% comparable) and

amounted to $1,697 million, a level broadly similar to recent

quarters. Book-to-bill was positive at 1.06. 

●

On a very challenging comparable, orders declined in the

large process-related segments oil & gas, pulp & paper

and mining. However, a positive development was

recorded for ports and in the less sizeable low carbon-

related areas such as nuclear, carbon capture, hydrogen

etc. The underlying market sentiment remained robust

across the board. 

●

On execution of the high order backlog, revenues

increased strongly at 11% (12% comparable) and

amounted to $1,601 million with a positive contribution

from all divisions, supported by strong contribution from

the service business .

Profit

With support from all divisions, the Operational EBITA

margin improved by 140 basis points to the new record-

high level of 15.6% and the Operational EBITA improved by

23% to $253 million.

●

Profitability was supported by the mix in execution of the

order backlog which host s a higher gross margin, whilst

keeping SG&A expenses on a stable percentage of

revenues.

●

A slight positive price impact offset increased salary-

related expenses, year -on-year.

●

Operational EBITA margin improved in all divisions with

all now in the “teens” margin range.

CHANGE

($ millions, unless otherwise indicated)

Q1 2024

Q1 2023

US$

Comparable

Orders

1,697

2,113

-20%

-20%

Order backlog

7,343

6,893

7%

9%

Revenues

1,601

1,436

11%

12%

Operational EBITA

253

205

23%

as % of operational revenues

15.6%

14.2%

+1.4 pts

Cash flow from operating activities

229

112

104%

No. of employees (FTE equiv.)

21,340

20,500

Growth

Q1

Q1

Change year-on-year

Orders

Revenues

Comparable

-20%

12%

FX

0%

-1%

Portfolio changes

0%

0%

Total

-20%

11%

—

Process Automation

ABB INTERIM REPORT

I

Q1 2024

 9

Orders and revenues

As anticipated, order intake improved from the fourth quarter,

with the strongest increase recorded in the Robotics division.

However, total orders declined by 30% (30% comparable)

from last year’s high comparable and amounted to $701

million. 

●

Orders declined at a double-digit rate in both divisions,

although more pronounced in Machine Automation.

●

The

 Robotics

demand declined in all customer segments

year-on-year. The sequential pattern was encouraging and

inventory levels in the channels did seemingly align with the

current market situation towards the end of quarter.

●

Machine Automation

customers held off placing orders

while awaiting deliveries from the recent pre-buy period.

Order backlog remains high and supports deliveries into the

latter part of the summer.

●

From a geographical perspective, orders in the Americas

declined by 24% (26% comparable). The decline in Europe

was 31% (32% comparable). In Asia, Middle East and Africa

orders declined by 32% (28% comparable), hampered by

China being down by 46% (43% comparable).

●

Revenues of $864 million represented a decline of 8% (7%

comparable) from last year, including a positive price impact.

This is the combined effect of a strong increase in the Machine

Automation division executing the order backlog; and a decline in

the larger robotics division where the order backlog has 

normalized and the short-cycle business was under pressure.

Profit

Operational leverage on lower volumes put pressure on the

Operational EBITA which declined by 19% to $113 million and the

Operational EBITA margin which dropped by 170 basis points year-

on-year to 13.2%.

●

A solid execution of higher volumes resulted in improved

profitability in the Machine Automation business. This was

however more than offset by lower production volumes

triggering underabsorption of fixed costs in the short -cycle

Robotics business.

●

A

positive price contribution from order backlog deliveries and

the efficiency measures activated as a response to the soft

market climate broadly offset adverse impacts from increased

labor, SG&A and R&D expenses . 

CHANGE

($ millions, unless otherwise indicated)

Q1 2024

Q1 2023

US$

Comparable

Orders

701

1,001

-30%

-30%

Order backlog

1,918

2,782

-31%

-29%

Revenues

864

937

-8%

-7%

Operational EBITA

113

140

-19%

as % of operational revenues

13.2%

14.9%

-1.7 pts

Cash flow from operating activities

95

130

-27%

No. of employees (FTE equiv.)

11,380

10,850

Growth

Q1

Q1

Change year-on-year

Orders

Revenues

Comparable

-30%

-7%

FX

0%

-1%

Portfolio changes

0%

0%

Total

-30%

-8%

—

Robotics & Discrete Automation

ABB INTERIM REPORT

I

Q1 2024

10

Events from the Quarter

●

ABB and CERN, the European Laboratory for Particle

Physics, have collaborated on a strategic research

partnership to enhance energy efficiency in cooling and

ventilation systems at CERN’s particle physics institute in

Geneva, Switzerland. Through energy efficiency audits,

they identified a 17.4% energy-saving potential across a

fleet of 800 motors. This translates to annual energy

savings of up to 31 gigawatt -hours (GWh) - enough to

power over 18,000 European households and avoid 4

kilotonnes of CO

₂

 emissions. The initiative surpassed

CERN’s goal of reducing cooling and ventilation energy

use by 10-15%.

●

SEV, the main electricity supplier in the Faroe Islands,

contracted ABB to enhance grid stability during the

transition to green energy. ABB is providing synchronous

condenser (SC) technology to stabilize the power grid as

fossil-fueled plants are phased out in favor of renewable

generation. The latest SC will be deployed on the island

of Borðoy where it will reinforce the local electricity supply

for around 5,000 people.

●

ABB will deliver a shore-to-ship power supply solution

allowing DEME’s diverse fleet to avoid emissions when

berthed in the port of Vlissingen, the Netherlands. The

technology supports DEME’s long-term decarbonization

strategy, providing flexibility to adapt to changing grid

capabilities. ABB will install shore power for suitably

equipped vessels calling at Vlissingen’s DEME base by

the end of 2024, as part of a government-supported

initiative stimulating the use of shore power facilities in

Dutch seaports. Connecting to shore power while at berth

is expected to become mandatory at main EU ports from

2030 under FuelEU Maritime regulations.

●

ABB Electrification’s facility in Vaasa has achieved a 1,400t

CO

2

e reduction in Scope 1 & 2 emissions since 2019. This

progress is driven by a company-wide culture of

sustainability, employee-led energy savings, and

investment in renewable energy sourcing. The teams at

ABB Vaasa have contributed over 100 energy-saving ideas,

resulting in a 20 percent reduction in consumption

(equivalent to 1,082 MWh) since 2019. Automation, smart

energy solutions, and a commitment to net zero have

played pivotal roles. ABB Vaasa, a global center for

electrical low-voltage switches and protection relays,

exemplifies empowered employees leading the way toward

sustainability.

●

In March, ABB teams across the world celebrated

International Women’s Day and Women’s History Month

with numerous events, mentor programs, panel

discussions, networking sessions and campaigns that

highlighted the importance of gender equality, whilst

promoting initiatives to foster inclusion in the workplace and

society at large.

Q1 outcome

●

28%

reduction year-on-year of CO

₂

e emissions due to a

shift to green electricity and a lower use of fossil fuels in

our operations.

●

7% decrease year-on-year in LTIFR, continuing to remain

at a low level.

●

2.5%-points increase year-on-year in the proportion of

women in senior management roles, demonstrating

strong progress towards our target .

—

Sustainability

Q1 2024

Q1 2023

CHANGE

12M ROLLING

CO

₂

e own operations emissions, 

Ktons scope 1 and 2

1

35

49

-28%

143

Lost Time Injury Frequency Rate (LTIFR), 

frequency / 200,000 working hours

2

0.14

0.15

-7%

0.13

Proportion of women in senior management

roles in %

21.5

19.0

+2.5 pts

20.8

1

CO

₂

 equivalent emissions from site, energy use, SF

₆

 and fleet, previous quarter

2

Current quarter Includes all incidents reported until April 5, 2024

ABB INTERIM REPORT

I

Q1 2024

11

During Q1 2024

●

On February 23, ABB announced that Morten Wierod will

succeed Björn Rosengren as CEO on August 1, 2024.

From August 1, 2024, until his retirement at the end of

the year, Björn Rosengren will advise and assist Morten

Wierod and the Executive Committee to ensure a

seamless transition. Morten Wierod joined ABB in 1998

and has been serving as a member of ABB's Executive

Committee since 2019, currently as President of the

Electrification Business Area and previously as President

of the Motion Business Area. The search process for the

position of President, Electrification Business Area has

been launched. 

●

On March 21, the Annual General Meeting elected two

new Board members, namely Johan Forssell and Mats

Rahmström. They replace Jacob Wallenberg and Gunnar

Brock who decided not to stand for re-election.

●

On March 21, ABB announced that the Board of

Directors has approved a new share buyback program

for capital reduction purposes of up to

$1 billion. This new program launched on April 1. It will

be executed on a second trading line on the SIX Swiss

Exchange and is planned to run until January 31, 2025,

to adjust the timing of its share buyback cycle to align

with the announcement of its Q4 2024 results and 2024

dividend proposal.

●

On March 27, ABB announced that Tarak Mehta,

President Motion Business Area and Member of the

Executive Committee, has decided to leave ABB to

accept the role as CEO of another company. Tarak will

leave ABB at the end of July this year. The search

process for the position of President, Motion Business

Area has been launched. 

Significant events

ABB INTERIM REPORT

I

Q1 2024

12

Divestments

Company/unit

Closing date

Revenues, $ in

millions

1

No. of employees

2023

Electrification

Power Conversion division

3-Jul

~440

1,500

Electrification

Industrial Plugs & Sockets business

3-Jul

~12

2

Process Automation

UK technical engineering consultancy

business

1-May

~20

160

Note: comparable growth calculation includes acquisitions and divestments with revenues of greater than $50 million.

1

Represents the estimated revenues for the last fiscal year prior to the announcement of the respective acquisition/divestment unless otherwise stated.

Additional 2024 guidance

($ in millions, unless otherwise stated)

FY 2024

Net finance expenses

↓

~(50)

from ~(120)

Effective tax rate

~25%

 4

Capital Expenditures

~(900)

($ in millions, unless otherwise stated)

FY 2024

1

Q2 2024

Corporate and Other Operational EBITA

2

~(300)

~(75)

Non-operating items

Acquisition-related amortization

~(210)

~(60)

Restructuring and related

3

~(200)

~(60)

ABB Way transformation

↑

~(200)

~(50)

from ~(180)

Additional figures

ABB Group

Q1 2023

Q2 2023

Q3 2023

Q4 2023

FY 2023

Q1 2024

EBITDA, $ in million

1,389

1,494

1,453

1,315

5,651

1,418

Return on Capital Employed, %

n.a.

n.a.

n.a.

n.a.

21.10

n.a.

Net debt/Equity

0.30

0.31

0.21

0.14

0.14

0.16

Net debt/ EBITDA 12M rolling

0.9

0.8

0.5

0.4

0.4

0.4

Net working capital, % of 12M rolling revenues

13.9%

14.7%

12.8%

10.2%

10.2%

11.2%

Earnings per share, basic, $

0.56

0.49

0.48

0.50

2.02

0.49

Earnings per share, diluted, $

0.55

0.48

0.47

0.50

2.01

0.49

Dividend per share, CHF

n.a.

n.a.

n.a.

n.a.

0.87

n.a.

Share price at the end of period, CHF

31.37

35.18

32.80

37.30

37.30

41.89

Number of employees (FTE equivalents)

106,170

108,320

107,430

107,870

107,870

108,700

No. of shares outstanding at end of period (in millions)

1,862

1,860

1,849

1,842

1,842

1,851

1

Excludes one project estimated to a total of ~$100 million, that is ongoing in the non-core business. Exact exit timing is difficult to assess due to legal proceedings etc.

2

Excludes Operational EBITA from E-mobility business.

3

Includes restructuring and restructuring-related as well as separation and integration costs.

4

Excludes the impact of acquisitions or divestments or any significant non-operational items.

Acquisitions

Company/unit

Closing date

Revenues, $ in

millions

1

No. of employees

2024

Process Automation

Real Tech Water

1-Feb

6

38

Robotics & Discrete Automation

Meshmind

1-Feb

<5

50

2023

Robotics & Discrete Automation

Sevensense

21-Dec

<5

35

E-mobility

Imagen Energy Inc

13-Nov

<5

4

Motion

Spring Point Solutions Llc

1-Nov

<5

13

E-mobility

Vourity AB

25-Oct

<5

9

Electrification

Eve Systems

1-Jun

~20

50

Motion

Siemens low voltage NEMA Motors

2-May

~60

600

Acquisitions and divestments, last twelve months

ABB INTERIM REPORT

I

Q1 2024

13

For additional information please contact:

Media Relations

Phone: +41 43 317 71 11

Email:

media.relations@ch.abb.com

Investor Relations

Phone: +41 43 317 71 11

Email:

investor.relations@ch.abb.com

ABB Ltd

Affolternstrasse 44

8050 Zurich

Switzerland

Financial calendar

2024

July 18

Q2 2024 results

October 17

Q3 2024 results

This press release includes forward-looking information and

statements as well as other statements concerning the

outlook for our business, including those in the sections of

this release titled “CEO summary,” “Outlook,” and

“Sustainability”. These statements are based on current

expectations, estimates and projections about the factors

that may affect our future performance, including global

economic conditions, the economic conditions of the

regions and industries that are major markets for ABB.

These expectations, estimates and projections are generally

identifiable by statements containing words such as

“anticipates,” “expects,” “estimates,” “plans,” “targets ,”

“guidance,” “likely” or similar expressions. However, there

are many risks and uncertainties, many of which are beyond

our control, that could cause our actual results to differ

materially from the forward-looking information and

statements

made in this press release and which could affect our ability

to achieve any or all of our stated targets. Some important

factors that could cause such differences include, among

others, business risks associated with the volatile global

economic environment and political conditions, costs

associated with compliance activities, market acceptance of

new products and services, changes in governmental

regulations and currency exchange rates and such other

factors as may be discussed from time to time in ABB Ltd’s

filings with the U.S. Securities and Exchange Commission,

including its Annual Reports on Form 20-F. Although ABB

Ltd believes that its expectations reflected in any such

forward looking statement are based upon reasonable

assumptions, it can give no assurance that those

expectations will be achieved.

The Q1 2024 results press release and presentation slides

are available on the ABB News Center at

www.abb.com/news and on the Investor Relations

homepage at www.abb.com/investorrelations. 

A conference call and webcast for analysts and investors is

scheduled to begin at 10:00 a.m. CET.

To pre-register for the conference call or to join the

webcast, please refer to the ABB website:

www.abb.com/investorrelations. 

The recorded session will be available after the event on

ABB’s website.

Important notice about forward-looking information

Q1 results presentation on April 18, 2024

ABB

 is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The

company’s solutions connect engineering know -how and software to optimize how things are manufactured, moved, powered and

operated. Building on over 140 years of excellence, ABB’s more than 105,000 employees are committed to driving innovations that

accelerate industrial transformation. 

1 Q1 2024 FINANCIAL INFORMATION

April 18, 2024

Q1 2024

Financial information

2 Q1 2024 FINANCIAL INFORMATION

—

Financial Information

Contents

03

─ 05 Key Figures

06 ─

27 Consolidated Financial Information (unaudited)

28 ─

38 Supplemental Reconciliations and Definitions

3 Q1 2024 FINANCIAL INFORMATION

—

Key Figures

CHANGE

($ in millions, unless otherwise indicated)

Q1 2024

Q1 2023

US$

Comparable

(1)

Orders

8,974

9,450

-5%

-4%

Order backlog (end March)

22,015

21,607

2%

6%

Revenues

7,870

7,859

0%

2%

Gross Profit

2,935

2,716

8%

as % of revenues

37.3%

34.6%

+2.7 pts

Income from operations

1,217

1,198

2%

Operational EBITA

(1)

1,417

1,277

11%

11%

(2)

as % of operational revenues

(1)

17.9%

16.3%

+1.6 pts

Income from continuing operations, net of tax

914

1,065

-14%

Net income attributable to ABB

905

1,036

-13%

Basic earnings per share ($)

0.49

0.56

-12%

(3)

Cash flow from operating activities

726

282

157%

Free cash flow

(1)

551

162

240%

(1) For a reconciliation of non-GAAP measures see “

” on page 28.

(2) Constant currency (not adjusted for portfolio changes).

(3) EPS growth rates are computed using unrounded amounts.

4 Q1 2024 FINANCIAL INFORMATION

CHANGE

($ in millions, unless otherwise indicated)

Q1 2024

Q1 2023

US$

Local

Comparable

Orders 

ABB Group

8,974

9,450

-5%

-5%

-4%

Electrification

4,392

4,141

6%

6%

8%

Motion

2,303

2,262

2%

2%

1%

Process Automation

1,697

2,113

-20%

-20%

-20%

Robotics & Discrete Automation

701

1,001

-30%

-30%

-30%

Corporate and Other 

142

196

Intersegment eliminations

(261)

(263)

Order backlog (end March)

ABB Group

22,015

21,607

2%

4%

6%

Electrification

7,389

7,101

4%

6%

12%

Motion

5,612

5,102

10%

11%

11%

Process Automation

7,343

6,893

7%

9%

9%

Robotics & Discrete Automation

1,918

2,782

-31%

-29%

-29%

Corporate and Other 

(incl. intersegment eliminations)

(247)

(271)

Revenues 

ABB Group

7,870

7,859

0%

1%

2%

Electrification

3,680

3,590

3%

3%

6%

Motion

1,829

1,940

-6%

-5%

-6%

Process Automation

1,601

1,436

11%

12%

12%

Robotics & Discrete Automation

864

937

-8%

-7%

-7%

Corporate and Other 

125

169

Intersegment eliminations

(229)

(213)

Income from operations

ABB Group

1,217

1,198

Electrification

769

655

Motion

301

353

Process Automation

234

200

Robotics & Discrete Automation

91

115

Corporate and Other

(incl. intersegment eliminations)

(178)

(125)

Income from operations %

ABB Group

15.5%

15.2%

Electrification

20.9%

18.2%

Motion

16.5%

18.2%

Process Automation

14.6%

13.9%

Robotics & Discrete Automation

10.5%

12.3%

Operational EBITA

ABB Group

1,417

1,277

11%

11%

Electrification

826

677

22%

23%

Motion

343

366

-6%

-6%

Process Automation

253

205

23%

23%

Robotics & Discrete Automation

113

140

-19%

-18%

Corporate and Other

(incl. intersegment eliminations)

(118)

(111)

Operational EBITA % 

ABB Group

17.9%

16.3%

Electrification

22.4%

19.0%

Motion

18.5%

18.9%

Process Automation

15.6%

14.2%

Robotics & Discrete Automation

13.2%

14.9%

Cash flow from operating activities

ABB Group

726

282

Electrification

547

395

Motion

352

149

Process Automation

229

112

Robotics & Discrete Automation

95

130

Corporate and Other 

(incl. intersegment eliminations)

(497)

(504)

5 Q1 2024 FINANCIAL INFORMATION

Operational EBITA

Process

Robotics & Discrete

ABB

Electrification

Motion

Automation

Automation

($ in millions, unless otherwise indicated)

Q1 24

Q1 23

Q1 24

Q1 23

Q1 24

Q1 23

Q1 24

Q1 23

Q1 24

Q1 23

Revenues

7,870

7,859

3,680

3,590

1,829

1,940

1,601

1,436

864

937

Foreign exchange/commodity timing

differences in total revenues

65

(16)

13

(22)

29

–

25

10

(5)

1

Operational revenues

7,935

7,843

3,693

3,568

1,858

1,940

1,626

1,446

859

938

Income from operations

1,217

1,198

769

655

301

353

234

200

91

115

Acquisition-related amortization

56

54

23

22

9

8

1

1

21

20

Restructuring, related and 

implementation costs

(1)

26

28

10

8

8

1

7

2

–

–

Changes in obligations related to 

divested businesses

–

3

–

–

–

–

–

–

–

–

Gains and losses from sale of businesses

2

–

–

–

–

–

–

–

–

–

Acquisition- and divestment-related 

expenses and integration costs

19

19

10

7

–

4

–

3

2

2

Certain other non-operational items

63

(1)

3

3

3

2

–

–

1

2

Foreign exchange/commodity timing

differences in income from operations

34

(24)

11

(18)

22

(2)

11

(1)

(2)

1

Operational EBITA

1,417

1,277

826

677

343

366

253

205

113

140

Operational EBITA margin (%)

17.9%

16.3%

22.4%

19.0%

18.5%

18.9%

15.6%

14.2%

13.2%

14.9%

(1) Includes impairment of certain assets.

Depreciation and Amortization

Process

Robotics & Discrete

ABB

Electrification

Motion

Automation

Automation

($ in millions)

Q1 24

Q1 23

Q1 24

Q1 23

Q1 24

Q1 23

Q1 24

Q1 23

Q1 24

Q1 23

Depreciation

133

125

66

62

28

26

12

11

15

14

Amortization

68

66

28

27

10

10

2

2

22

20

including total acquisition-related amortization of:

56

54

23

22

9

8

1

1

21

20

Orders received and revenues by region

($ in millions, unless otherwise indicated)

Orders received

CHANGE

Revenues

CHANGE

Com-

Com-

Q1 24

Q1 23

US$

Local

parable

Q1 24

Q1 23

US$

Local

parable

Europe

3,298

3,582

-8%

-9%

-9%

2,748

2,872

-4%

-6%

-5%

The Americas

2,904

2,985

-3%

-3%

-3%

2,789

2,653

5%

5%

7%

of which United States

2,139

2,130

0%

0%

2%

2,110

1,984

6%

6%

10%

Asia, Middle East and Africa

2,772

2,883

-4%

0%

0%

2,333

2,334

0%

5%

5%

of which China

1,050

1,355

-23%

-19%

-18%

998

1,155

-14%

-9%

-9%

ABB Group

8,974

9,450

-5%

-5%

-4%

7,870

7,859

0%

1%

2%

6 Q1 2024 FINANCIAL INFORMATION

—

Consolidated Financial Information

ABB Ltd Consolidated Income Statements (unaudited)

Three months ended

($ in millions, except per share data in $)

Mar. 31, 2024

Mar. 31, 2023

Sales of products

6,503

6,644

Sales of services and other

1,367

1,215

Total revenues

7,870

7,859

Cost of sales of products

(4,145)

(4,418)

Cost of services and other

(790)

(725)

Total cost of sales

(4,935)

(5,143)

Gross profit

2,935

2,716

Selling, general and administrative expenses

(1,381)

(1,339)

Non-order related research and development expenses

(363)

(304)

Other income (expense), net

26

125

Income from operations

1,217

1,198

Interest and dividend income

57

40

Interest and other finance expense

(37)

(61)

Non-operational pension (cost) credit

16

7

Income from continuing operations before taxes

1,253

1,184

Income tax expense

(339)

(119)

Income from continuing operations, net of tax

914

1,065

Loss from discontinued operations, net of tax

(1)

(5)

Net income

913

1,060

Net income attributable to noncontrolling interests and redeemable noncontrolling interests

(8)

(24)

Net income attributable to ABB

905

1,036

Amounts attributable to ABB shareholders:

Income from continuing operations, net of tax

906

1,041

Loss from discontinued operations, net of tax

(1)

(5)

Net income

905

1,036

Basic earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax

0.49

0.56

Loss from discontinued operations, net of tax

–

–

Net income

0.49

0.56

Diluted earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax

0.49

0.56

Loss from discontinued operations, net of tax

–

–

Net income

0.49

0.55

Weighted-average number of shares outstanding (in millions) used to compute:

Basic earnings per share attributable to ABB shareholders

1,839

1,861

Diluted earnings per share attributable to ABB shareholders

1,852

1,874

Due to rounding, numbers presented may not add to the totals provided.

See Notes to the Consolidated Financial Information

7 Q1 2024 FINANCIAL INFORMATION

—

ABB Ltd Condensed Consolidated Statements of Comprehensive

Income (unaudited)

Three months ended

($ in millions)

Mar. 31, 2024

Mar. 31, 2023

Total comprehensive income, net of tax

1,063

1,153

Total comprehensive (income) loss attributable to noncontrolling interests and 

redeemable noncontrolling interests, net of tax

8

(30)

Total comprehensive income attributable to ABB shareholders, net of tax

1,071

1,123

Due to rounding, numbers presented may not add to the totals provided.

See Notes to the Consolidated Financial Information

8 Q1 2024 FINANCIAL INFORMATION

—

ABB Ltd Consolidated Balance Sheets (unaudited)

($ in millions)

Mar. 31, 2024

Dec. 31, 2023

Cash and equivalents

4,102

3,891

Restricted cash

18

18

Marketable securities and short-term investments

2,097

1,928

Receivables, net

7,385

7,446

Contract assets

1,135

1,090

Inventories, net

6,170

6,149

Prepaid expenses

314

235

Other current assets

563

520

Total current assets

21,784

21,277

Property, plant and equipment, net

4,047

4,142

Operating lease right-of-use assets

863

893

Investments in equity-accounted companies

178

187

Prepaid pension and other employee benefits

755

780

Intangible assets, net

1,128

1,223

Goodwill

10,494

10,561

Deferred taxes

1,375

1,381

Other non-current assets

488

496

Total assets

41,112

40,940

Accounts payable, trade

5,018

4,847

Contract liabilities

2,866

2,844

Short-term debt and current maturities of long-term debt

1,957

2,607

Current operating leases

242

249

Provisions for warranties

1,191

1,210

Dividends payable to shareholders

857

–

Other provisions

1,056

1,201

Other current liabilities

4,595

5,046

Total current liabilities

17,782

18,004

Long-term debt

6,346

5,221

Non-current operating leases

642

666

Pension and other employee benefits

668

686

Deferred taxes

664

669

Other non-current liabilities

1,539

1,548

Total liabilities

27,641

26,794

Commitments and contingencies

Redeemable noncontrolling interest

89

89

Stockholders’ equity:

Common stock, CHF 0.12 par value

(1,882 million shares issued at March 31, 2024, and December 31, 2023)

163

163

Additional paid-in capital

9

7

Retained earnings

18,622

19,724

Accumulated other comprehensive loss

(4,904)

(5,070)

Treasury stock, at cost

(31 million and 40 million shares at March 31, 2024, and December 31, 2023, respectively)

(1,150)

(1,414)

Total ABB stockholders’ equity

12,740

13,410

Noncontrolling interests

642

647

Total stockholders’ equity

13,382

14,057

Total liabilities and stockholders’ equity

41,112

40,940

Due to rounding, numbers presented may not add to the totals provided.

See Notes to the Consolidated Financial Information

9 Q1 2024 FINANCIAL INFORMATION

—

ABB Ltd Consolidated Statements of Cash Flows (unaudited)

Three months ended

($ in millions)

Mar. 31, 2024

Mar. 31, 2023

Operating activities:

Net income

913

1,060

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

201

191

Changes in fair values of investments

(13)

(13)

Pension and other employee benefits

(13)

1

Deferred taxes

(6)

25

Loss from equity-accounted companies

5

7

Net gain from derivatives and foreign exchange

(8)

(37)

Net gain from sale of property, plant and equipment

(5)

(26)

Net loss (gain) from sale of businesses

2

–

Other

27

27

Changes in operating assets and liabilities:

Trade receivables, net

(33)

(362)

Contract assets and liabilities

38

10

Inventories, net

(205)

(264)

Accounts payable, trade

82

22

Accrued liabilities

(473)

(324)

Provisions, net

37

42

Income taxes payable and receivable

122

(115)

Other assets and liabilities, net

55

38

Net cash provided by operating activities

726

282

Investing activities:

Purchases of investments

(877)

(660)

Purchases of property, plant and equipment and intangible assets

(181)

(151)

Acquisition of businesses (net of cash acquired) and increases in cost- and equity-accounted companies

(30)

(19)

Proceeds from sales of investments

727

20

Proceeds from sales of property, plant and equipment

6

31

Proceeds from sales of businesses (net of transaction costs and cash disposed) and cost- and

equity-accounted companies

(8)

(5)

Net cash from settlement of foreign currency derivatives

31

36

Changes in loans receivable, net

1

8

Other investing activities

–

(1)

Net cash used in investing activities

(331)

(741)

Financing activities:

Net changes in debt with original maturities of 90 days or less

(20)

(714)

Increase in debt

1,358

1,633

Repayment of debt

(565)

(36)

Delivery of shares

390

95

Purchase of treasury stock

(291)

(274)

Dividends paid

(919)

(1,294)

Dividends paid to noncontrolling shareholders

–

(3)

Proceeds from issuance of subsidiary shares

–

341

Other financing activities

(3)

12

Net cash used in financing activities

(50)

(240)

Effects of exchange rate changes on cash and equivalents and restricted cash

(134)

(5)

Adjustment for the net change in cash and equivalents and restricted cash in Assets held for sale

–

(13)

Net change in cash and equivalents and restricted cash

211

(717)

Cash and equivalents and restricted cash, beginning of period

3,909

4,174

Cash and equivalents and restricted cash, end of period

4,120

3,457

Supplementary disclosure of cash flow information:

Interest paid

94

48

Income taxes paid

228

207

Due to rounding, numbers presented may not add to the totals provided.

See Notes to the Consolidated Financial Information

10 Q1 2024 FINANCIAL INFORMATION

—

ABB Ltd Consolidated Statements of Changes in Stockholders’ Equity (unaudited)

($ in millions)

Common

stock

Additional

paid-in

capital

Retained

earnings

Accumulated

other

comprehensive

loss

Treasury

stock

Total ABB 

stockholders’

equity

Non-

controlling

interests

Total

stockholders’

equity

Balance at January 1, 2023

171

141

20,082

(4,556)

(3,061)

12,777

410

13,187

Net income

(1)

1,036

1,036

25

1,061

Foreign currency translation

adjustments, net of tax of $(1)

79

79

6

85

Effect of change in fair value of

available-for-sale securities,

net of tax of $1

5

5

5

Unrecognized income (expense)

related to pensions and other

postretirement plans,

net of tax of $1

–

–

–

Change in derivative instruments

and hedges, net of tax of $0

3

3

3

Issuance of subsidiary shares

170

170

168

338

Other changes in

noncontrolling interests

–

(1)

(1)

Dividends to

noncontrolling shareholders

–

(5)

(5)

Dividends to shareholders

(1,706)

(1,706)

(1,706)

Share-based payment arrangements

22

22

1

23

Purchase of treasury stock

(253)

(253)

(253)

Delivery of shares

(53)

148

95

95

Other

(2)

(2)

(2)

Balance at March 31, 2023

171

279

19,411

(4,469)

(3,165)

12,227

604

12,831

Balance at January 1, 2024

163

7

19,724

(5,070)

(1,414)

13,410

647

14,057

Net income

(1)

905

905

9

914

Foreign currency translation

adjustments, net of tax of $3

131

131

(16)

115

Effect of change in fair value of

available-for-sale securities,

net of tax of $0

(1)

(1)

(1)

Unrecognized income (expense)

related to pensions and other

postretirement plans,

net of tax of $16

33

33

33

Change in derivative instruments

and hedges, net of tax of $0

3

3

3

Changes in noncontrolling interests

(1)

(30)

(31)

1

(30)

Dividends to

noncontrolling shareholders

–

(1)

(1)

Dividends to shareholders

(1,804)

(1,804)

(1,804)

Share-based payment arrangements

20

20

1

21

Purchase of treasury stock

(314)

(314)

(314)

Delivery of shares

(14)

(174)

578

390

390

Other

(3)

(3)

2

(1)

Balance at March 31, 2024

163

9

18,622

(4,904)

(1,150)

12,740

642

13,382

(1)

Amounts attributable to noncontrolling interests for the three months ended March 31, 2024 and 2023, exclude net losses of $1 million and $1 million, respectively, related to

redeemable noncontrolling interests, which are reported in the mezzanine equity section on the Consolidated Balance Sheets.

Due to rounding, numbers presented may not add to the totals provided.

See Notes to the Consolidated Financial Information

11 Q1 2024 FINANCIAL INFORMATION

—

Notes to the Consolidated Financial Information (unaudited)

─

Note 1

The Company and basis of presentation

ABB Ltd and its subsidiaries (collectively, the Company) together form a technology leader in electrification and automation, enabling a more sustainable and

resource-efficient future. The Company’s solutions connect engineering know-how and software to optimize how things are manufactured, moved, powered, and

operated.

The Company’s 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 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, 2023.

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 Consolidated Financial Information. These accounting assumptions and estimates include:

●

estimates to determine valuation allowances for deferred tax assets and amounts recorded for unrecognized tax benefits,

●

estimates related to credit losses expected to occur over the remaining life of financial assets such as trade and other receivables, loans and other

instruments,

●

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 and projections, principally related to future material, labor and project-related overhead costs, used in determining the percentage-of-

completion on projects where revenue is recognized over time, as well as the amount of variable consideration the Company expects to be entitled to,

●

assumptions used in the calculation of pension and postretirement benefits and the fair value of pension plan assets,

●

estimates used to record expected costs for employee severance in connection with restructuring programs,

●

assumptions used in determining inventory obsolescence and net realizable value,

●

growth rates, discount rates and other assumptions used to determine impairment of long-lived assets and in testing goodwill for impairment,

●

estimates and assumptions used in determining the fair values of assets and liabilities assumed in business combinations, and

●

estimates and assumptions used in determining the initial fair value of retained noncontrolling interests and certain obligations in connection with

divestments.

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, contract assets, inventories and provisions related to these contracts which will not be realized within one year that have been classified as current.

Basis of presentation

In the opinion of management, the unaudited Consolidated Financial Information contains all necessary adjustments to present fairly the financial position, results

of operations and cash flows for the reported periods. Management considers all such adjustments to be of a normal recurring nature. The Consolidated Financial

Information is presented in United States dollars ($) unless otherwise stated. Due to rounding, numbers presented in the Consolidated Financial Information may

not add to the totals provided.

Certain amounts reported in the Consolidated Financial Information for prior periods have been reclassified to conform to the current year’s presentation.

Change in accounting policy

Effective January 1, 2024, the Company changed the presentation of discontinued operations in its statement of cas h flows to an alternate allowable

policy. As a result, the total cash flows for operating, investing and financing activities from discontinued operations are no longer shown separately but

instead all cash flows in discontinued operations are presented within each line item as appropriate in the statement of cash flows. As this presentation

change represents a change in accounting policy, all prior periods presented have been reclassified to conform to the current period presentation and

there was no material impact for the three months ended March 31, 2023.

12 Q1 2024 FINANCIAL INFORMATION

─

Note 2

Recent accounting pronouncements

Applicable for current periods

Improvements to reportable segment disclosures

In January 2024, the Company adopted an accounting standard update which requires the Company to disclose additional reportable segment information

primarily through enhanced disclosures about significant segment expenses and extending certain annual disclosure requirements to a quarterly frequency. The

update will be applied retrospectively for all periods presented in the Company’s annual consolidated financial statements and then commencing from the first

quarter of 2025, in its interim consolidated financial information. Other than these additional disclosures, this update does not have a significant impact on the

Company’s consolidated financial statements.

Applicable for future periods

Improvements to Income tax disclosures

In December 2023, an accounting standard update was issued which requires the Company to disclose additional information related to income taxes. Under the

update, the Company is required to annually disclose by jurisdiction (i) additional disaggregated information within the tax rate reconciliation and (ii) income taxes

paid. This update is effective for the Company prospectively, with retrospective adoption permitted, for annual periods beginning January 1, 2025. The Company is

currently evaluating the impact of adopting this update on its consolidated financial statements.

─

Note 3

Cash and equivalents, marketable securities and short-term investments

Cash and equivalents, marketable securities and short-term investments consisted of the following:

March 31, 2024

Cash and

Marketable

Gross

Gross

equivalents

securities

unrealized

unrealized

and restricted

and short-term

($ in millions)

Cost basis

gains

losses

Fair value

cash

investments

Changes in fair value 

recorded in net income

Cash

1,789

1,789

1,789

Time deposits

2,817

2,817

2,331

486

Equity securities

1,391

37

1,428

1,428

5,997

37

–

6,034

4,120

1,914

Changes in fair value recorded

in other comprehensive income

Debt securities available-for-sale:

U.S. government obligations

190

2

(9)

183

183

190

2

(9)

183

–

183

Total

6,187

39

(9)

6,217

4,120

2,097

Of which: 

Restricted cash, current

18

December 31, 2023

Cash and

Marketable

Gross

Gross

equivalents

securities

unrealized

unrealized

and restricted

and short-term

($ in millions)

Cost basis

gains

losses

Fair value

cash

investments

Changes in fair value

recorded in net income

Cash

1,449

1,449

1,449

Time deposits

2,923

2,923

2,460

463

Equity securities

1,250

32

1,282

1,282

5,622

32

–

5,654

3,909

1,745

Changes in fair value recorded

in other comprehensive income

Debt securities available-for-sale:

U.S. government obligations

189

2

(8)

183

183

189

2

(8)

183

–

183

Total

5,811

34

(8)

5,837

3,909

1,928

Of which:

Restricted cash, current

18

13 Q1 2024 FINANCIAL INFORMATION

─

Note 4

Derivative financial instruments

The Company is exposed to certain currency, commodity and interest rate 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 its subsidiaries to hedge their

foreign currency exposures from binding sales and purchase contracts denominated in foreign currencies. For forecasted foreign currency denominated sales of

standard products and the related foreign currency denominated purchas es, 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 contracted 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 its 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.

Interest rate risk 

The Company has issued bonds at fixed rates. Interest rate swaps and cross-currency interest rate swaps are used to manage the interest rate and foreign

currency 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.

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 accou nting.

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 at

($ in millions)

March 31, 2024

December 31, 2023

March 31, 2023

Foreign exchange contracts

14,331

12,335

13,273

Embedded foreign exchange derivatives

1,106

1,137

1,104

Cross-currency interest rate swaps

863

886

870

Interest rate contracts

3,075

1,606

2,963

Derivative commodity contracts

The Company uses derivatives to hedge its direct or indirect exposure to the movement in the prices of commodities which are primarily copper, silver, steel and

aluminum. The following table shows the notional amounts of outstanding derivatives (whether designated as hedges or not), on a net basis, to reflect the

Company’s requirements for these commodities:

Type of derivative

Unit

Total notional amounts at

March 31, 2024

December 31, 2023

March 31, 2023

Copper swaps

metric tonnes

38,116

35,015

27,920

Silver swaps

ounces

2,689,981

2,359,363

2,392,353

Steel swaps

metric tonnes

10,251

10,206

6,804

Aluminum swaps

metric tonnes

5,875

5,900

6,750

Cash flow hedges

As noted above, the Company mainly uses forward foreign exchange contracts to manage the foreign exchange risk of its operations and commodity swaps to

manage its commodity risks. The Company applies cash flow hedge accounting in only limited cases. In these cases, 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. For the three months ended March 31, 2024 and 2023, there were no significant amounts recorded for cash flow

hedge accounting activities.

Fair value hedges

To reduce its interest rate exposure arising primarily from its debt issuance activities, the Company uses interest rate swaps and cross -currency 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.

The effect of derivative instruments, designated and qualifying as fair value hedges, on the Consolidated Income Statements was as follows:

Three months ended March 31,

($ in millions)

2024

2023

Gains (losses) recognized in Interest and other finance expense: 

Interest rate contracts

Designated as fair value hedges

13

10

Hedged item

(14)

(10)

Cross-currency interest rate swaps

Designated as fair value hedges

(3)

(11)

Hedged item

3

2

14 Q1 2024 FINANCIAL INFORMATION

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:

Type of derivative not 

Gains (losses) recognized in income

designated as a hedge

Three months ended March 31,

($ in millions)

Location

2024

2023

Foreign exchange contracts

Total revenues

(168)

11

Total cost of sales

47

(1)

SG&A expenses

(1)

13

6

Non-order related research and development

(2)

–

Interest and other finance expense

247

42

Embedded foreign exchange contracts

Total revenues

18

7

Total cost of sales

(4)

(1)

Commodity contracts

Total cost of sales

9

11

Other

Interest and other finance expense

(2)

–

Total

158

75

(1) SG&A expenses represent “Selling, general and administrative expenses”.

The fair values of derivatives included in the Consolidated Balance Sheets were as follows:

March 31, 2024

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

–

–

2

–

Interest rate contracts

–

–

4

3

Cross-currency interest rate swaps

–

–

–

256

Other

7

–

–

–

Total

7

–

6

259

Derivatives not designated as hedging instruments:

Foreign exchange contracts

179

19

97

13

Commodity contracts

17

–

1

–

Interest rate contracts

–

–

–

–

Embedded foreign exchange derivatives

24

5

11

1

Other

–

3

–

–

Total

220

27

109

14

Total fair value

227

27

115

273

December 31, 2023

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

–

–

5

2

Interest rate contracts

–

–

18

–

Cross-currency interest rate swaps

–

–

–

230

Other

10

–

–

–

Total

10

–

23

232

Derivatives not designated as hedging instruments:

Foreign exchange contracts

123

30

177

9

Commodity contracts

8

–

3

–

Interest rate contracts

1

–

1

–

Other equity contracts

4

–

–

–

Embedded foreign exchange derivatives

23

5

26

5

Total

159

35

207

14

Total fair value

169

35

230

246

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.

15 Q1 2024 FINANCIAL INFORMATION

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 March 31, 2024, and December 31, 2023, have been presented on a gross basis.

The Company’s netting agreements and other similar arrangements allow net settlements under certain conditions. At March 31, 2024, and December 31, 2023,

information related to these offsetting arrangements was as follows:

($ in millions)

March 31, 2024

Gross amount

Derivative liabilities

Cash

Non-cash

Type of agreement or

of recognized

eligible for set-off

collateral

collateral

Net asset

similar arrangement

assets

in case of default

received

received

exposure

Derivatives

225

(71)

–

–

154

Total

225

(71)

–

–

154

($ in millions)

March 31, 2024

Gross amount

Derivative liabilities

Cash

Non-cash

Type of agreement or 

 of recognized

eligible for set-off

collateral

collateral

Net liability

similar arrangement

liabilities

in case of default

pledged

pledged

exposure

Derivatives

376

(71)

–

–

305

Total

376

(71)

–

–

305

($ in millions)

December 31, 2023

Gross amount

Derivative liabilities

Cash

Non-cash

Type of agreement or 

 of recognized

eligible for set-off

collateral

collateral

Net asset

similar arrangement

 assets

in case of default

received

received

exposure

Derivatives

176

(111)

–

–

65

Total

176

(111)

–

–

65

($ in millions)

December 31, 2023

Gross amount

Derivative liabilities

Cash

Non-cash

Type of agreement or

 of recognized

eligible for set-off

collateral

 collateral

Net liability

similar arrangement

liabilities

 in case of default

pledged

pledged

exposure

Derivatives

445

(111)

–

–

334

Total

445

(111)

–

–

334

16 Q1 2024 FINANCIAL INFORMATION

─

Note 5

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 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 determining 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 nature 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 (observable quoted prices). Assets and liabilities valued

using Level 1 inputs include exchange

‑

traded equity securities, 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 observable 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, certain debt securities that are not actively traded, interest rate

swaps, cross-currency interest rate swaps, commodity swaps, forward foreign exchange contracts, foreign exchange swaps and forward 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. 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.

Recurring fair value measures

The fair values of financial assets and liabilities measured at fair value on a recurring basis were as follows:

March 31, 2024

($ in millions)

Level 1

Level 2

Level 3

Total fair value

Assets

Securities in “Marketable securities and short-term investments”:

Equity securities

–

1,428

–

1,428

Debt securities—U.S. government obligations

183

–

–

183

Derivative assets—current in “Other current assets”

–

227

–

227

Derivative assets—non-current in “Other non-current assets”

–

27

–

27

Total

183

1,682

–

1,865

Liabilities

Derivative liabilities—current in “Other current liabilities”

–

115

–

115

Derivative liabilities—non-current in “Other non-current liabilities”

–

273

–

273

Total

–

388

–

388

December 31, 2023

($ in millions)

Level 1

Level 2

Level 3

Total fair value

Assets

Securities in “Marketable securities and short-term investments”:

Equity securities

–

1,282

–

1,282

Debt securities—U.S. government obligations

183

–

–

183

Derivative assets—current in “Other current assets”

–

169

–

169

Derivative assets—non-current in “Other non-current assets”

–

35

–

35

Total

183

1,486

–

1,669

Liabilities

Derivative liabilities—current in “Other current liabilities”

–

230

–

230

Derivative liabilities—non-current in “Other non-current liabilities”

–

246

–

246

Total

–

476

–

476

17 Q1 2024 FINANCIAL INFORMATION

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:

●

 Securities in “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

non-performance 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 inputs). 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. 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 three months ended March 31, 2024 and 2023.

Disclosure about financial instruments carried on a cost basis

The fair values of financial instruments carried on a cost basis were as follows:

March 31, 2024

($ in millions)

Carrying value

Level 1

Level 2

Level 3

Total fair value

Assets

Cash and equivalents (excluding securities with original 

maturities up to 3 months):

Cash

1,771

1,771

–

–

1,771

Time deposits

2,331

–

2,331

–

2,331

Restricted cash

18

18

–

–

18

Marketable securities and short-term investments

(excluding securities):

Time deposits

486

–

486

–

486

Liabilities

Short-term debt and current maturities of long-term debt

(excluding finance lease obligations)

1,927

1,890

37

–

1,927

Long-term debt (excluding finance lease obligations)

6,192

6,211

8

–

6,219

December 31, 2023

($ in millions)

Carrying value

Level 1

Level 2

Level 3

Total fair value

Assets

Cash and equivalents (excluding securities with original 

maturities up to 3 months):

Cash

1,431

1,431

–

–

1,431

Time deposits

2,460

–

2,460

–

2,460

Restricted cash

18

18

–

–

18

Marketable securities and short-term investments

(excluding securities):

Time deposits

463

–

463

–

463

Liabilities

Short-term debt and current maturities of long-term debt

(excluding finance lease obligations)

2,576

2,521

55

–

2,576

Long-term debt (excluding finance lease obligations)

5,060

5,096

5

–

5,101

The Company uses the following methods and assumptions in estimating fair values of financial instruments carried on a cost basis:

●

 Cash and equivalents (excluding securities with original maturities up to 3 months), Restricted cash, and Marketable securities and short-term

investments (excluding securities):

The carrying amounts approximate the fair values as the items are short-term in nature or, for cash held in banks,

are equal to the deposit amount.

●

 Short-term debt and current maturities of long-term debt (excluding finance 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 finance lease obligations,

approximate their fair values.

●

 Long-term debt (excluding finance lease obligations):

Fair values of bonds are determined using quoted market prices (Level 1 inputs), if available. For

bonds without available quoted market prices 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).

18 Q1 2024 FINANCIAL INFORMATION

─

Note 6

Contract assets and liabilities

The following table provides information about Contract assets and Contract liabilities:

($ in millions)

March 31, 2024

December 31, 2023

March 31, 2023

Contract assets

1,135

1,090

1,009

Contract liabilities

2,866

2,844

2,339

Contract assets primarily relate to the Company’s right to receive consideration for work completed but for which no invoice has been issued at the reporting date.

Contract assets are transferred to receivables when rights to receive payment become unconditional. Management expects that the majority of the amounts will be

collected within one year of the respective balance sheet date.

Contract liabilities primarily relate to up-front advances received on orders from customers as well as amounts invoiced to customers in excess of revenues

recognized predominantly on long-term projects. Contract liabilities are reduced as work is performed and as revenues are recognized .

The significant changes in the Contract assets and Contract liabilities balances were as follows:

Three months ended March 31,

2024

2023

Contract

Contract

Contract

Contract

($ in millions)

assets

liabilities

assets

liabilities

Revenue recognized, which was included in the Contract liabilities balance at Jan 1, 2024/2023

(724)

(651)

Additions to Contract liabilities - excluding amounts recognized as revenue during the period

819

707

Receivables recognized that were included in the Contract assets balance at Jan 1, 2024/2023

(408)

(325)

The Company considers its order backlog to represent its unsatisfied performance obligations. At March 31, 2024, the Company had unsatisfied performance

obligations totaling $22,015 million and, of this amount, the Company expects to fulfill approximately 61 percent of the obligations in 2024, approximately

23 percent of the obligations in 2025 and the balance thereafter.

─

Note 7

Supplier finance programs

The Company has several supplier finance programs, all with similar characteristics, with various financial institutions acting as paying agent. These programs

allow qualifying suppliers access to bank facilities which permit earlier payment at a cost to the supplier. The Company’s payment terms related to suppliers’

finance programs are not impacted by the suppliers’ decisions to sell amounts under the arrangements and are typically consistent with local market practices.

Outstanding supplier finance obligations are included in “Accounts payable, trade” in the Consolidated Balance Sheets and are reported as operating or investing

(if capitalized) activities in the Consolidated Statement of Cash Flows when paid. At March 31, 2024, and December 31, 2023, the total obligation outstanding

under supplier finance programs amounted to $442 million and $415 million, respectively.

19 Q1 2024 FINANCIAL INFORMATION

─

Note 8

Debt

The Company’s total debt at March 31, 2024, and December 31, 2023, amounted to $8,303 million and $7,828 million, respectively.

Short-term debt and current maturities of long-term debt 

The Company’s “Short-term debt and current maturities of long-term debt” consisted of the following:

($ in millions)

March 31, 2024

December 31, 2023

Short-term debt

50

87

Current maturities of long-term debt

1,907

2,520

Total

1,957

2,607

Short-term debt primarily represented short-term bank borrowings from various banks.

In March 2024, the Company repaid at maturity its EUR 500 million Floating Rate Instruments, equivalent to $539 million on date of repayment.

Long-term debt

The Company’s long-term debt at March 31, 2024, and December 31, 2023, amounted to $6,346 million and $5,221 million, respectively. 

Outstanding bonds (including maturities within the next 12 months) were as follows: 

March 31, 2024

December 31, 2023

(in millions)

Nominal outstanding

 Carrying value

(1)

Nominal outstanding

 Carrying value

(1)

Bonds:

Floating Rate EUR Instruments, due 2024

EUR

500

$

554

0.625% EUR Instruments, due 2024

EUR

700

$

755

EUR

700

$

768

0.75% EUR Instruments, due 2024

EUR

750

$

805

EUR

750

$

819

0.3% CHF Bonds, due 2024

CHF

280

$

309

CHF

280

$

335

2.1% CHF Bonds, due 2025

CHF

150

$

165

CHF

150

$

179

1.965% CHF Bonds, due 2026

CHF

325

$

358

CHF

325

$

387

3.25% EUR Instruments, due 2027

EUR

500

$

536

EUR

500

$

551

0.75% CHF Bonds, due 2027

CHF

425

$

468

CHF

425

$

507

3.8% USD Notes, due 2028

(2)

USD

383

$

382

USD

383

$

382

1.9775% CHF Bonds, due 2028

CHF

150

$

165

CHF

150

$

179

3.125% EUR Instruments, due 2029

EUR

500

$

536

1.0% CHF Bonds, due 2029

CHF

170

$

188

CHF

170

$

203

0% EUR Instruments, due 2030

EUR

800

$

723

EUR

800

$

749

2.375% CHF Bonds, due 2030

CHF

150

$

165

CHF

150

$

178

3.375% EUR Instruments, due 2031

EUR

750

$

797

EUR

750

$

818

2.1125% CHF Bonds, due 2033

CHF

275

$

303

CHF

275

$

327

3.375% EUR Instruments, due 2034

EUR

750

$

802

4.375% USD Notes, due 2042

(2)

USD

609

$

591

USD

609

$

591

Total

$

8,048

$

7,527

(1) USD carrying values include unamortized debt issuance costs, bond discounts or premiums, as well as adjustments for fair value hedge accounting, where appropriate.

(2) Prior to completing a cash tender offer in November 2020, the original principal amount outstanding, on each of the 3.8% USD Notes, due 2028, and the 4.375% USD Notes, due

2042, was USD 750 million.

In January 2024, the Company issued the following EUR Instruments: (i) EUR 500 million of 3.125 percent Instruments, due 2029, and (ii) EUR 750 million of

3.375 percent Instruments, due 2034, both paying interest annually in arrears. The aggregate net proceeds of these EUR Instruments, after discount and fees,

amounted to EUR 1,243 million (equivalent to approximately $1,360 million on date of issuance).

Subsequent events

On April 2, 2024, the Company repaid at maturity its EUR 700 million 0.625% EUR Instruments, equivalent to $752 million on date of repayment.

20 Q1 2024 FINANCIAL INFORMATION

─

Note 9

Commitments and contingencies

Contingencies—Regulatory, Compliance and Legal

Regulatory

Based on findings during an internal investigation, the Company self-reported to the Securities Exchange Commission (SEC) and the Department of Justice (DoJ),

in the United States, to the Special Investigating Unit (SIU) and the National Prosecuting Authority (NPA) in South Africa as well as to various authorities in other

countries potential suspect payments and other compliance concerns in connection with some of the Company’s dealings with Eskom and related persons. Many

of those parties have expressed an interest in, or commenced an investigation into, these matters and the Company is cooperating fully with them. The Company

paid $104 million to Eskom in December 2020 as part of a full and final settlement with Eskom and the SIU relating to improper payments and other compliance

issues associated with the Controls and Instrumentation Contract, and its Variation Orders for Units 1 and 2 at Kusile. The Company made a provision of

approximately $325 million which was recorded in Other income (expense), net, during the third quarter of 2022. In December 2022, the Company settled with the

SEC and DoJ as well as the authorities in South Africa and Switzerland. In March 2024, the Company settled its final pending matter with the authorities in

Germany. The Company does not believe that it will need to record any additional provisions for this matter.

General

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 claims and legal proceedings, as well as investigations carried

out by various law enforcement authorities. With respect to the above-mentioned claims, regulatory matters, and any related proceedings, the Company will bear

the related costs, including costs necessary to resolve them.

Liabilities recognized

At March 31, 2024, and December 31, 2023, the Company had aggregate liabilities of $92 million and $101 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, or reasonably predict, 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 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)

March 31, 2024

December 31, 2023

Performance guarantees

3,370

3,451

Financial guarantees

93

94

Total

(1)

3,463

3,545

(1)

 Maximum potential payments include amounts in both continuing and discontinued operations.

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 March 31, 2024, and December 31, 2023, were not

significant.

The Company is party to various guarantees providing financial or performance assurances to certain third parties. These guarantees, which have various

maturities up to 2032, mainly consist of performance guarantees whereby (i) the Company guarantees the performance of a third party’s product or service

according to the terms of a contract and (ii) as member of a consortium/joint-venture that includes third parties, the Company guarantees not only its own

performance but also the work of third parties. 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. The original maturity dates for the majority of these

performance guarantees range from one to ten years.

In conjunction with the divestment of the high-voltage cable and cables accessories businesses, the Company has entered into various performance guarantees

with other parties with respect to certain liabilities of the divested business. At March 31, 2024, and December 31, 2023, the maximum potential payable under

these guarantees amounts to $843 million and $874 million, respectively, and these guarantees have various original maturities ranging from five to ten years.

The Company retained obligations for financial and performance guarantees related to its former Power Grids business (reported as discontinued operations prior

to its sale to Hitachi Ltd in 2020), which at both March 31, 2024, and December 31, 2023, have been fully indemnified by Hitachi Ltd. These guarantees, having

various maturities up to 2032, primarily consist of bank guarantees, standby letters of credit, business performance guarante es and other trade-related guarantees,

the majority of which have original maturity dates ranging from one to ten years. The maximum amount payable under these guarantees at both March 31, 2024,

and December 31, 2023, was approximately $2.2 billion.

Commercial commitments

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. At March 31, 2024, and December 31, 2023, the total outstanding performance bonds aggregated to $3.2 billion and $3 .1 billion, respectively. There have

been no significant amounts reimbursed to financial institutions under these types of arrangements in the three months ended March 31, 2024 and 2023.

21 Q1 2024 FINANCIAL INFORMATION

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)

2024

2023

Balance at January 1,

1,210

1,028

Claims paid in cash or in kind

(37)

(40)

Net increase in provision for changes in estimates, warranties issued and warranties expired

55

65

Exchange rate differences

(37)

7

Balance at March 31,

1,191

1,060

─

Note 10

Income taxes

In calculating income tax expense, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances known at each interim

period. On a quarterly basis, the actual effective tax rate is adjusted, as appropriate, based upon changed facts and circumstances, if any, as compared to those

forecasted at the beginning of the year and each interim period thereafter.

The effective tax rate of 27.1 percent in the three months ended March 31, 2024, was higher than the effective tax rate of 10.1 percent in the three months ended

March 31, 2023, primarily due to a net benefit of $206 million realized on a favorable resolution of an uncertain tax position in the three months ended March 31,

2023. The release of the corresponding provision resulted in an increase of $0.11 in earnings per share (basic and diluted) for the three months ended March 31,

2023.

─

Note 11

Employee benefits

The Company operates defined benefit pension plans, defined contribution pension plans, and termination indemnity plans, in accordance with local regulations

and practices. At March 31, 2024, the Company’s most significant defined benefit pension plans are in Switzerland as well as in Germany, the United Kingdom,

and the United States. 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 postretirement benefit plans

are not significant. 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 plans consisted of the following:

($ in millions)

Defined pension benefits

Switzerland

International

Three months ended March 31,

2024

2023

2024

2023

Operational pension cost:

Service cost

11

9

8

8

Operational pension cost

11

9

8

8

Non-operational pension cost (credit):

Interest cost

9

12

39

40

Expected return on plan assets

(31)

(33)

(43)

(39)

Amortization of prior service cost (credit)

(2)

–

(1)

–

Amortization of net actuarial loss

–

–

13

13

Non-operational pension cost (credit)

(24)

(21)

8 

14

Net periodic benefit cost (credit)

(13)

(12)

16

22

The components of net periodic benefit cost other than the service cost component are included in the line Non-operational pension cost (credit) in the

Consolidated Income Statements.

Employer contributions were as follows:

($ in millions)

Defined pension benefits

Switzerland

International

Three months ended March 31,

2024

2023

2024

2023

Total contributions to defined benefit pension plans

13

2

11

11

The Company expects to make contributions totaling approximately $87 million to its defined pension plans for the full year 2024.

22 Q1 2024 FINANCIAL INFORMATION

─

Note 12

Stockholder's equity

At the Annual General Meeting of Shareholders (AGM) on March 21, 2024, shareholders approved the proposal of the Board of Directors to distribute 0.87 Swiss

francs per share to shareholders. The declared dividend amounted to $1,804 million, with the Company disburs ing a portion in March and the remaining amounts

scheduled to be paid in the second quarter of 2024.

In March 2024, the Company completed the share buyback program that was launched in April 2023. This program was executed on a second trading line on the

SIX Swiss Exchange. Through this program, the Company purchased a total of 21 million shares for approximately $0.8 billion, of which 4 million shares were

purchased in the first quarter of 2024 (resulting in an increase in Treasury stock of $187 million ).

Also in March 2024, the Company announced a new share buyback program of up to $1 billion. This program, which was launched in April 2024, is being executed

on a second trading line on the SIX Swiss Exchange and is planned to run until January 2025.

During the first quarter of 2024, the Company delivered, out of treasury stock, approximately 16 million shares in connection with its Management Incentive Plan.

─

Note 13

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

Three months ended March 31,

($ in millions, except per share data in $)

2024

2023

Amounts attributable to ABB shareholders:

Income from continuing operations, net of tax

906

1,041

Loss from discontinued operations, net of tax

(1)

(5)

Net income

905

1,036

Weighted-average number of shares outstanding (in millions)

1,839

1,861

Basic earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax

0.49

0.56

Loss from discontinued operations, net of tax

–

–

Net income

0.49

0.56

Diluted earnings per share

Three months ended March 31,

($ in millions, except per share data in $)

2024

2023

Amounts attributable to ABB shareholders:

Income from continuing operations, net of tax

906

1,041

Loss from discontinued operations, net of tax

(1)

(5)

Net income

905

1,036

Weighted-average number of shares outstanding (in millions)

1,839

1,861

Effect of dilutive securities:

Call options and shares

13

13

Adjusted weighted-average number of shares outstanding (in millions)

1,852

1,874

Diluted earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax

0.49

0.56

Loss from discontinued operations, net of tax

–

–

Net income

0.49

0.55

23 Q1 2024 FINANCIAL INFORMATION

─

Note 14

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

Foreign currency

(losses) on

other

Derivative

translation

available-for-sale

postretirement

instruments

($ in millions)

adjustments

securities

plan adjustments

and hedges

Total OCI

Balance at January 1, 2023

(3,691)

(19)

(838)

(8)

(4,556)

Other comprehensive (loss) income:

Other comprehensive (loss) income

before reclassifications

85

4

(8)

2

83

Amounts reclassified from OCI

–

1

8

1

10

Total other comprehensive (loss) income

85

5

–

3

93

Less:

Amounts attributable to

noncontrolling interests and

redeemable noncontrolling interests

6

–

–

–

6

Balance at March 31, 2023

(3,612)

(14)

(838)

(5)

(4,469)

Unrealized gains

Pension and

Foreign currency

(losses) on

other

Derivative

translation

available-for-sale

postretirement

instruments

($ in millions)

adjustments

securities

plan adjustments

and hedges

Total OCI

Balance at January 1, 2024

(3,977)

(8)

(1,075)

(10)

(5,070)

Other comprehensive (loss) income:

Other comprehensive (loss) income

before reclassifications

115

(1)

27

–

141

Amounts reclassified from OCI

–

–

6

3

9

Total other comprehensive (loss) income

115

(1)

33

3

150

Less:

Amounts attributable to

noncontrolling interests and

redeemable noncontrolling interests

(16)

–

–

–

(16)

Balance at March 31, 2024

(3,846)

(9)

(1,042)

(7)

(4,904)

The amounts reclassified out of OCI for the three months ended March 31, 2024 and 2023, were not significant.

24 Q1 2024 FINANCIAL INFORMATION

─

Note 15

Operating segment data

The Chief Operating Decision Maker (CODM) is the Chief Executive Officer. The CODM allocates resources to and assesses the performance of each operating

segment using the information outlined below. The Company is organized into the following segments, based on products and services: Electrification, Motion,

Process Automation and Robotics & Discrete Automation. 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:

●

 Electrification:

manufactures and sells electrical products and solutions which are designed to provide safe, smart and sustainable electrical flow from

the substation to the socket. The portfolio of increasingly digital and connected solutions includes renewable power solutions, modular substation

packages, distribution automation products, switchboards and panelboards, switchgear, UPS solutions, circuit breakers, measuring and sensing

devices, control products, wiring accessories, enclosures and cabling systems and intelligent home and building solutions, designed to integrate and

automate lighting, heating, ventilation, security and data communication networks. The products and services are currently delivered through five

operating Divisions: Distribution Solutions, Smart Power, Smart Buildings, Installation Products and Service, as well as, prior to its sale in July 2023, the

Power Conversion Division.

●

 Motion:

 designs, manufactures, and sells drives, motors, generators and traction converters that are driving the low-carbon future for industries, cities,

infrastructure and transportation. These products, digital technology and related services enable industrial customers to increase energy efficiency,

improve safety and reliability, and achieve precise control of their processes. Building on over 140 years of cumulative experience in electric

powertrains, Motion combines domain expertise and technology to deliver the optimum solution for a wide range of applications in all industrial

segments. In addition, Motion, along with its partners, has a leading global service presence. These products and services are delivered through seven

operating Divisions: Large Motors and Generators, IEC LV Motors, NEMA Motors, Drive Products, System Drives, Service and Traction.

●

 Process Automation:

 offers a broad range of industry-specific, integrated automation, electrification and digital solutions, as well as lifecycle services for

the process, hybrid and marine industries. The product portfolio includes control technologies, industrial software, advanced analytics, sensing and

measurement technology, and marine propulsion systems. In addition, Process Automation offers a comprehensive range of services, from repair to

advanced digital capabilities such as remote monitoring, preventive maintenance, asset performance management, emission monitoring and

cybersecurity. The products, systems and services are delivered through four operating Divisions: Energy Industries, Process Industries, Marine &

Ports and Measurement & Analytics.

●

 Robotics & Discrete Automation:

 delivers its products, solutions and services through two operating Divisions. Robotics provides industrial and

collaborative robots, autonomous mobile robotics, mapping and navigation solutions, robotic solutions, field services, spare parts and digital services.

Machine Automation specializes in automation solutions based on its programmable logic controllers (PLC), industrial PCs (IPC), servo motion,

transport systems and machine vision. Both divisions offer software across the entire life cycle, including engineering and simulation software as well as

a comprehensive range of digital solutions.

Corporate and Other:

 Corporate includes headquarter costs, the Company’s corporate real estate activities and Corporate Treasury while Other includes the E-

mobility operating segment, other non-core operating activities as well as the operating activities of certain divested businesses.

The primary measure of profitability on which the operating segments are evaluated is Operational EBITA, which represents income from operations excluding:

●

 amortization expense on intangibles arising upon acquisition (acquisition -related amortization), 

●

 restructuring, related and implementation costs,

●

 changes in the amount recorded for obligations related to divested businesses occurring after the divestment date (changes in obligations related to

divested businesses),

●

 gains and losses from sale of businesses (including fair value adjustment on assets and liabilities held for sale, if any), 

●

 acquisition- and divestment-related expenses and integration costs,

●

 certain other non-operational items, as well as 

●

 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).

Certain other non-operational items generally includes certain regulatory, compliance and legal costs, certain asset write downs/impairments and certain other fair

value changes, as well as other items which are determined by management on a case-by-case basis.

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.

The following tables present disaggregated segment revenues from contracts with customers, Operational EBITA, and the reconciliations of consolidated

Operational EBITA to Income from continuing operations before taxes for the three months ended March 31, 2024 and 2023, as well as total assets at March 31,

2024, and December 31, 2023.

25 Q1 2024 FINANCIAL INFORMATION

Three months ended March 31, 2024

Robotics &

Process

Discrete

Corporate

($ in millions)

Electrification

Motion

Automation

Automation

and Other

Total

Geographical markets 

Europe 

1,154

488

555

490

61

2,748

The Americas 

1,529

630

447

140

43

2,789

of which: United States

1,186

516

285

85

38

2,110

Asia, Middle East and Africa 

936

558

593

231

15

2,333

of which: China

415

256

165

157

5

998

3,619

1,676

1,595

861

119

7,870

Product type 

Products

3,380

1,395

911

711

106

6,503

Services and other

239

281

684

150

13

1,367

3,619

1,676

1,595

861

119

7,870

Third-party revenues

3,619

1,676

1,595

861

119

7,870

Intersegment revenues

61

153

6

3

(223)

–

Total revenues

(1)

3,680

1,829

1,601

864

(104)

7,870

Three months ended March 31, 2023

Robotics &

Process

Discrete

Corporate

($ in millions)

Electrification

Motion

Automation

Automation

and Other

Total

Geographical markets 

Europe 

1,162

638

519

474

79

2,872

The Americas 

1,407

632

421

136

57

2,653

of which: United States

1,043

533

264

91

53

1,984

Asia, Middle East and Africa 

957

549

489

324

15

2,334

of which: China

457

281

162

248

7

1,155

3,526

1,819

1,429

934

151

7,859

Product type 

Products

3,306

1,583

827

791

137

6,644

Services and other

220

236

602

143

14

1,215

3,526

1,819

1,429

934

151

7,859

Third-party revenues

3,526

1,819

1,429

934

151

7,859

Intersegment revenues

64

121

7

3

(195)

–

Total revenues

(1)

3,590

1,940

1,436

937

(44)

7,859

(1) Due to rounding, numbers presented may not add to the totals provided.

26 Q1 2024 FINANCIAL INFORMATION

Three months ended

March 31,

($ in millions)

2024

2023

Operational EBITA:

Electrification

826

677

Motion

343

366

Process Automation

253

205

Robotics & Discrete Automation

113

140

Corporate and Other

‒

E-mobility

(54)

(28)

‒ Corporate costs, intersegment eliminations and other

(64)

(83)

Total

1,417

1,277

Acquisition-related amortization

(56)

(54)

Restructuring, related and implementation costs

(1)

(26)

(28)

Changes in obligations related to divested businesses

–

(3)

Gains and losses from sale of businesses

(2)

–

Acquisition- and divestment-related expenses and integration costs

(19)

(19)

Foreign exchange/commodity timing differences in income from operations:

Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives)

(77)

22

Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized

1

(5)

Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities)

42

7

Certain other non-operational items:

Other income/expense relating to the Power Grids joint venture

8

13

Regulatory, compliance and legal costs

(3)

–

Business transformation costs

(2)

(50)

(34)

Certain other fair value changes, including asset impairments

(14)

(1)

Other non-operational items

(4)

23

Income from operations

1,217

1,198

Interest and dividend income

57

40

Interest and other finance expense

(37)

(61)

Non-operational pension (cost) credit

16

7

Income from continuing operations before taxes

1,253

1,184

(1) Includes impairment of certain assets.

(2) Amount includes ABB Way process transformation costs of $46 million and $30 million for the three months ended March 31, 2024 and 2023, respectively.

Total assets

(1)

($ in millions)

March 31, 2024

December 31, 2023

Electrification

12,837

12,668

Motion

6,947

7,016

Process Automation

4,952

4,971

Robotics & Discrete Automation

4,982

5,047

Corporate and Other

11,394

11,238

Consolidated

41,112

40,940

(1) Total assets are after intersegment eliminations and therefore reflect third -party assets only.

27 Q1 2024 FINANCIAL INFORMATION

28 Q1 2024 FINANCIAL INFORMATION

—

Supplemental Reconciliations and Definitions

The following reconciliations and definitions include measures which ABB uses to supplement its 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 Consolidated Financial Information (unaudited) prepared in accordance

with U.S. GAAP as of and for the three months ended March 31, 2024.

Comparable 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 are also adjusted for changes in our business portfolio. Adjustments to our business portfolio occur due to acquisitions, divestments, or

by exiting specific business activities or customer markets. 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.

Certain portfolio changes which do not qualify as divestments under U.S. GAAP have been treated in a similar manner to divestments. Changes in our portfolio

where we have exited certain business activities or customer markets are adjusted as if the relevant business was divested in the period when the decision to

cease business activities was taken. We do not adjust for portfolio changes where the relevant business has annualized 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.

Comparable growth rate reconciliation by Business Area

Q1 2024 compared to Q1 2023

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Business Area

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Electrification 

6%

0%

2%

8%

3%

0%

3%

6%

Motion

2%

0%

-1%

1%

-6%

1%

-1%

-6%

Process Automation

-20%

0%

0%

-20%

11%

1%

0%

12%

Robotics & Discrete Automation

-30%

0%

0%

-30%

-8%

1%

0%

-7%

ABB Group

-5%

0%

1%

-4%

0%

1%

1%

2%

29 Q1 2024 FINANCIAL INFORMATION

Regional comparable growth rate reconciliation

Regional comparable growth rate reconciliation for ABB Group - Quarter

Q1 2024 compared to Q1 2023

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-8%

-1%

0%

-9%

-4%

-2%

1%

-5%

The Americas

-3%

0%

0%

-3%

5%

0%

2%

7%

of which: United States

0%

0%

2%

2%

6%

0%

4%

10%

Asia, Middle East and Africa

-4%

4%

0%

0%

0%

5%

0%

5%

of which: China

-23%

4%

1%

-18%

-14%

5%

0%

-9%

ABB Group

-5%

0%

1%

-4%

0%

1%

1%

2%

Regional comparable growth rate reconciliation by Business Area - Quarter

Q1 2024 compared to Q1 2023

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

3%

-1%

0%

2%

-2%

-1%

1%

-2%

The Americas

9%

-1%

3%

11%

9%

-1%

7%

15%

of which: United States

13%

0%

4%

17%

14%

0%

9%

23%

Asia, Middle East and Africa

6%

4%

1%

11%

-1%

5%

1%

5%

of which: China

-7%

4%

1%

-2%

-9%

4%

1%

-4%

Electrification

6%

0%

2%

8%

3%

0%

3%

6%

Q1 2024 compared to Q1 2023

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-8%

-3%

0%

-11%

-20%

-2%

0%

-22%

The Americas

-1%

0%

-3%

-4%

0%

0%

-4%

-4%

of which: United States

-4%

1%

-3%

-6%

-3%

0%

-3%

-6%

Asia, Middle East and Africa

16%

5%

0%

21%

5%

6%

0%

11%

of which: China

-12%

4%

0%

-8%

-9%

4%

0%

-5%

Motion

2%

0%

-1%

1%

-6%

1%

-1%

-6%

Q1 2024 compared to Q1 2023

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-10%

0%

0%

-10%

7%

-1%

0%

6%

The Americas

-26%

0%

0%

-26%

6%

0%

0%

6%

of which: United States

-13%

0%

0%

-13%

8%

0%

0%

8%

Asia, Middle East and Africa

-27%

2%

0%

-25%

21%

5%

0%

26%

of which: China

-37%

3%

0%

-34%

2%

5%

0%

7%

Process Automation

-20%

0%

0%

-20%

11%

1%

0%

12%

Q1 2024 compared to Q1 2023

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-31%

-1%

0%

-32%

4%

-2%

0%

2%

The Americas

-24%

-2%

0%

-26%

2%

-1%

0%

1%

of which: United States

-34%

0%

0%

-34%

-7%

0%

0%

-7%

Asia, Middle East and Africa

-32%

4%

0%

-28%

-29%

4%

0%

-25%

of which: China

-46%

3%

0%

-43%

-37%

3%

0%

-34%

Robotics & Discrete Automation

-30%

0%

0%

-30%

-8%

1%

0%

-7%

30 Q1 2024 FINANCIAL INFORMATION

Order backlog growth rate reconciliation

March 31, 2024 compared to March 31, 2023

US$

Foreign

(as

exchange

Portfolio

Business Area

reported)

impact

changes

Comparable

Electrification 

4%

2%

6%

12%

Motion

10%

1%

0%

11%

Process Automation

7%

2%

0%

9%

Robotics & Discrete Automation

-31%

2%

0%

-29%

ABB Group

2%

2%

2%

6%

Other growth rate reconciliations

Q1 2024 compared to Q1 2023

Service orders growth rate

Services revenues growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Business Area

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Electrification 

17%

1%

0%

18%

9%

0%

0%

9%

Motion

4%

1%

0%

5%

19%

4%

0%

23%

Process Automation

3%

0%

0%

3%

14%

0%

0%

14%

Robotics & Discrete Automation

1%

-1%

0%

0%

4%

1%

0%

5%

ABB Group

6%

0%

0%

6%

12%

2%

0%

14%

31 Q1 2024 FINANCIAL INFORMATION

Operational EBITA as % of operational revenues (Operational EBITA margin)

Definition

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, related and implementation costs,

●

 changes in the amount recorded for obligations related to divested businesses occurring after the divestment date (changes in obligations related to

divested businesses), 

●

 gains and losses from sale of businesses (including fair value adjustment on assets and liabilities held for sale, if any), 

●

 acquisition- and divestment-related expenses and integration costs,

●

 certain other non-operational items, as well as 

●

 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). 

Certain other non-operational items generally includes certain regulatory, compliance and legal costs, certain asset write downs/ impairments and certain other fair

value changes, as well as other items which are determined by management on a case-by-case basis.

Operational EBITA is our measure of segment profit but is also used by management to evaluate the profitability of the Company as a whole.

Acquisition-related amortization

Amortization expense on intangibles arising upon acquisitions.

Restructuring, related and implementation costs

Restructuring, related and implementation costs consists of restructuring and other related expenses, as well as internal and external costs relating to the

implementation of group-wide restructuring programs.

Operational revenues

The Company presents operational revenues solely for the purpose of allowing the computation of Operational EBITA margin. 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). Operational revenues are not intended to be an alternative measure to Total revenues, which represent our revenues measured in accordance

with U.S. GAAP.

Reconciliation

The following tables provide reconciliations of consolidated Operational EBITA to Net Income and Operational EBITA margin by business.

Reconciliation of consolidated Operational EBITA to Net Income

Three months ended March 31,

($ in millions)

2024

2023

Operational EBITA

1,417

1,277

Acquisition-related amortization

(56)

(54)

Restructuring, related and implementation costs

(1)

(26)

(28)

Changes in obligations related to divested businesses

–

(3)

Gains and losses from sale of businesses

(2)

–

Acquisition- and divestment-related expenses and integration costs

(19)

(19)

Certain other non-operational items

(63)

1

Foreign exchange/commodity timing differences in income from operations

(34)

24

Income from operations

1,217

1,198

Interest and dividend income

57

40

Interest and other finance expense

(37)

(61)

Non-operational pension (cost) credit

16

7

Income from continuing operations before taxes

1,253

1,184

Income tax expense

(339)

(119)

Income from continuing operations, net of tax

914

1,065

Loss from discontinued operations, net of tax

(1)

(5)

Net income

913

1,060

(1) Includes impairment of certain assets.

32 Q1 2024 FINANCIAL INFORMATION

Reconciliation of Operational EBITA margin by business

Three months ended March 31, 2024

Corporate and

Robotics &

Other and

Process

Discrete

Intersegment

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

Automation

elimination

Consolidated

Total revenues

3,680

1,829

1,601

864

(104)

7,870

Foreign exchange/commodity timing

differences in total revenues:

Unrealized gains and losses

on derivatives

47

46

44

6

5

148

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

(3)

–

2

–

–

(1)

Unrealized foreign exchange movements

on receivables (and related assets)

(31)

(17)

(21)

(11)

(2)

(82)

Operational revenues

3,693

1,858

1,626

859

(101)

7,935

Income (loss) from operations

769

301

234

91

(178)

1,217

Acquisition-related amortization

23

9

1

21

2

56

Restructuring, related and

implementation costs

(1)

10

8

7

–

1

26

Gains and losses from sale of businesses

–

–

–

–

2

2

Acquisition- and divestment-related expenses

and integration costs

10

–

–

2

7

19

Certain other non-operational items

3

3

–

1

56

63

Foreign exchange/commodity timing 

differences in income from operations:

Unrealized gains and losses on derivatives

(foreign exchange, commodities, 

embedded derivatives)

22

33

22

4

(4)

77

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

(1)

–

1

–

(1)

(1)

Unrealized foreign exchange movements 

on receivables/payables

(and related assets/liabilities)

(10)

(11)

(12)

(6)

(3)

(42)

Operational EBITA

826

343

253

113

(118)

1,417

Operational EBITA margin (%)

22.4%

18.5%

15.6%

13.2%

n.a.

17.9%

(1) Includes impairment of certain assets.

In the three months ended March 31, 2024, Certain other non -operational items in the table above includes the following:

Three months ended March 31, 2024

Robotics &

Process

Discrete

Corporate

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

Automation

and Other

Consolidated

Certain other non-operational items:

Other income/expense relating to the 

Power Grids joint venture

–

–

–

–

(8)

(8)

Regulatory, compliance and legal costs

–

–

–

–

3

3

Business transformation costs

(1)

2

1

–

1

46

50

Certain other fair values changes,

including asset impairments

1

2

–

–

11

14

Other non-operational items

–

–

–

–

4

4

Total

3

3

–

1

56

63

(1) Amounts include ABB Way process transformation costs of $46 million for the three months ended March 31, 2024.

33 Q1 2024 FINANCIAL INFORMATION

Three months ended March 31, 2023

Corporate and

Robotics &

Other and

Process

Discrete

Intersegment

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

Automation

elimination

Consolidated

Total revenues

3,590

1,940

1,436

937

(44)

7,859

Foreign exchange/commodity timing 

differences in total revenues:

Unrealized gains and losses

on derivatives

(14)

4

13

2

(4)

1

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

(1)

–

1

–

2

2

Unrealized foreign exchange movements

on receivables (and related assets)

(7)

(4)

(4)

(1)

(3)

(19)

Operational revenues

3,568

1,940

1,446

938

(49)

7,843

Income (loss) from operations

655

353

200

115

(125)

1,198

Acquisition-related amortization

22

8

1

20

3

54

Restructuring, related and

implementation costs

(1)

8

1

2

–

17

28

Changes in obligations related to

divested businesses

–

–

–

–

3

3

Acquisition- and divestment-related expenses

and integration costs

7

4

3

2

3

19

Certain other non-operational items

3

2

–

2

(8)

(1)

Foreign exchange/commodity timing 

differences in income from operations:

Unrealized gains and losses on derivatives

(foreign exchange, commodities, 

embedded derivatives)

(15)

–

(2)

2

(7)

(22)

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

–

–

2

–

3

5

Unrealized foreign exchange movements 

on receivables/payables

(and related assets/liabilities)

(3)

(2)

(1)

(1)

–

(7)

Operational EBITA

677

366

205

140

(111)

1,277

Operational EBITA margin (%)

19.0%

18.9%

14.2%

14.9%

n.a.

16.3%

(1) Includes impairment of certain assets.

In the three months ended March 31, 2023, Certain other non -operational items in the table above includes the following:

Three months ended March 31, 2023

Robotics &

Process

Discrete

Corporate

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

Automation

and Other

Consolidated

Certain other non-operational items:

Other income/expense relating to the 

Power Grids joint venture

–

–

–

–

(13)

(13)

Certain other fair values changes,

including asset impairments

1

1

–

1

(2)

1

Business transformation costs

(1)

4

–

–

1

29

34

Other non-operational items

(2)

1

–

–

(22)

(23)

Total

3

2

–

2

(8)

(1)

(1) Amounts include ABB Way process transformation costs of $30 million for the three months ended March 31, 2023.

34 Q1 2024 FINANCIAL INFORMATION

Net debt

Definition 

Net debt

Net debt 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, Restricted cash and Marketable securities and short-term investments.

Reconciliation

($ in millions)

March 31, 2024

December 31, 2023

Short-term debt and current maturities of long-term debt

1,957

2,607

Long-term debt

6,346

5,221

Total debt

8,303

7,828

Cash and equivalents

4,102

3,891

Restricted cash

18

18

Marketable securities and short-term investments

2,097

1,928

Cash and marketable securities

6,217

5,837

Net debt

2,086

1,991

Net debt/Equity ratio

Definition 

Net debt/Equity ratio

Net debt/Equity ratio is defined as Net debt divided by Equity.

Equity

Equity is defined as Total stockholders’ equity. 

Reconciliation

($ in millions, unless otherwise indicated)

March 31, 2024

December 31, 2023

Total stockholders' equity

13,382

14,057

Net debt (as defined above)

2,086

1,991

Net debt / Equity ratio

0.16

0.14

Net debt/EBITDA ratio

Definition 

Net debt/EBITDA ratio

Net debt/EBITDA ratio is defined as Net debt divided by EBITDA.

EBITDA

EBITDA is defined as Income from operations for the trailing twelve months preceding the balance sheet date before depreciation and amortization for the same

trailing twelve-month period. 

Reconciliation

($ in millions, unless otherwise indicated)

March 31, 2024

March 31, 2023

Income from operations for the three months ended:

June 30, 2023 / 2022

1,298

587

September 30, 2023 / 2022

1,259

708

December 31, 2023 / 2022

1,116

1,185

March 31, 2024 / 2023

1,217

1,198

Depreciation and Amortization for the three months ended:

June 30, 2023 / 2022

196

207

September 30, 2023 / 2022

194

198

December 31, 2023 / 2022

199

199

March 31, 2024 / 2023

201

191

EBITDA 

5,680

4,473

Net debt (as defined above)

2,086

3,826

Net debt / EBITDA

0.4

0.9

35 Q1 2024 FINANCIAL INFORMATION

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) contract assets, (iii) inventories, net, and (iv) prepaid expenses; less (v) accounts payable, trade, (vi)

contract liabilities and (vii) other current liabilities (excluding primarily: (a) income taxes payable, (b) current derivative liabilities, (c) pension and other employee

benefits, (d) payables under the share buyback program and (e) liabilities related to certain other restructuring-related activities); 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

($ in millions, unless otherwise indicated)

March 31, 2024

March 31, 2023

Net working capital:

Receivables, net

7,385

7,174

Contract assets

1,135

1,009

Inventories, net

6,170

6,269

Prepaid expenses

314

304

Accounts payable, trade

(5,018)

(4,945)

Contract liabilities

(2,866)

(2,339)

Other current liabilities

(1)

(3,532)

(3,444)

Net working capital in assets and liabilities held for sale

–

136

Net working capital

3,588

4,164

Total revenues for the three months ended:

June 30, 2023 / 2022

8,163

7,251

September 30, 2023 / 2022

7,968

7,406

December 31, 2023 / 2022

8,245

7,824

March 31, 2024 / 2023

7,870

7,859

Adjustment to annualize/eliminate revenues of certain acquisitions/divestments

(106)

(340)

Adjusted revenues for the trailing twelve months

32,140

30,000

Net working capital as a percentage of revenues (%)

11.2%

13.9%

(1)

 Amounts exclude $1,063 million and $668 million at March 31, 2024 and 2023, respectively, related primarily to (a) income taxes payable, (b) current derivative liabilities,

(c) pension and other employee benefits, (d) payables under the share buyback program and (e) liabilities related to certain restructuring-related activities. 

36 Q1 2024 FINANCIAL INFORMATION

Free cash flow

Definition

Free cash flow

Free cash flow is calculated as net cash provided by operating activities adjusted for: (i) purchases of property, plant and equipment and intangible assets, and (ii)

proceeds from sales of property, plant and equipment.

Reconciliation

Three months ended March 31,

($ in millions, unless otherwise indicated)

2024

2023

Net cash provided by operating activities

726

282

Adjusted for the effects of operations:

Purchases of property, plant and equipment and intangible assets

(181)

(151)

Proceeds from sale of property, plant and equipment

6

31

Free cash flow

551

162

Free cash flow 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 Adjusted net income attributable to ABB.

Adjusted net income attributable to ABB

Adjusted net income attributable to ABB is calculated as net income attributable to ABB adjusted for gains or losses arising on sale of certain businesses and

certain other significant items within net income which are also excluded / adjusted for when calculating operating cashflows.

Free cash flow for the trailing twelve months

Free cash flow for the trailing twelve months includes free cash flow recorded by ABB in the twelve months preceding the relevant balance sheet date.

Net income for the trailing twelve months

Net income for the trailing twelve months includes net income recorded by ABB (as adjusted) in the twelve months preceding the relevant balance sheet date.

Reconciliation

Trailing twelve months to

($ in millions, unless otherwise indicated)

March 31, 2024

December 31, 2023

Net cash provided by operating activities

4,734

4,290

Adjusted for the effects of operations:

Purchases of property, plant and equipment and intangible assets

(800)

(770)

Proceeds from sale of property, plant and equipment

122

147

Free cash flow

4,056

3,667

Adjusted net income attributable to ABB

(1)

3,555

3,686

Free cash flow conversion to net income

114%

99%

(1) Adjusted net income attributable to ABB for the year ended December 31, 2023, is adjusted to exclude the gain on sale of the Power Conversion Division of $59 million. 

Reconciliation of the trailing twelve months to March 31, 2024

($ in millions)

Net cash provided by

operating activities

Purchases of

property, plant and

equipment and

intangible assets

Proceeds 

from sale of property,

plant and equipment

Adjusted net income

attributable to ABB

(1)

Q2 2023

760

(180)

26

906

Q3 2023

1,351

(175)

10

829

Q4 2023

1,897

(264)

80

915

Q1 2024

726

(181)

6

905

Total for the trailing twelve

months to March 31, 2024

4,734

(800)

122

3,555

(1) Adjusted net income attributable to ABB for Q3 2023, is adjusted to exclude the gain on sale of the Power Conversion Division of $53 million. In Q4 2023, an additional

$6 million was adjusted for the gain on sale of the Power Conversion Division.

37 Q1 2024 FINANCIAL INFORMATION

Net finance income (expense)

Definition 

Net finance income (expense) is calculated as Interest and dividend income less Interest and other finance expense.

Reconciliation

Three months ended March 31,

($ in millions)

2024

2023

Interest and dividend income

57

40

Interest and other finance expense

(37)

(61)

Net finance income (expense)

20

(21)

Book-to-bill ratio

Definition 

Book-to-bill ratio is calculated as Orders received divided by Total revenues.

Reconciliation

Three months ended March 31,

2024

2023

($ in millions, except Book-to-bill presented as a ratio)

Orders

Revenues

Book-to-bill

Orders

Revenues

Book-to-bill

Electrification

4,392

3,680

1.19

4,141

3,590

1.15

Motion

2,303

1,829

1.26

2,262

1,940

1.17

Process Automation

1,697

1,601

1.06

2,113

1,436

1.47

Robotics & Discrete Automation

701

864

0.81

1,001

937

1.07

Corporate and Other

 (incl. intersegment eliminations)

(119)

(104)

n.a.

(67)

(44)

n.a.

ABB Group

8,974

7,870

1.14

9,450

7,859

1.20

38 Q1 2024 FINANCIAL INFORMATION

Free cash flow for past periods

Effective January 1, 2024, the Company changed the presentation of discontinued operations in its statement of cash flows to an alternate allowable policy. As a

result, the total cash flows for operating, investing and financing activities within discontinued operations are no longer shown separately but instead all cash flows

in discontinued operations are presented within each line item as appropriate in the statement of cash flows. As this presentation change represents a change in

accounting policy, all prior periods presented have been reclassified to conform to the current period presentation. 

The table below presents the reconciliation of Free cash flow as defined on page 36 for 2023 and 2022 by quarter, restated to reflect this change in presentation.

Reconciliation:

($ in millions)

Net cash provided by

(used in) operating

activities

Purchases of

property, plant and

equipment and

intangible assets

Proceeds 

from sale of property,

plant and equipment

Free cash flow

For the three months ended:

March 31, 2022

(573)

(187)

35

(725)

June 30, 2022

382

(151)

31

262

September 30, 2022

791

(165)

19

645

December 31, 2022

687

(259)

42

470

March 31, 2023

282

(151)

31

162

June 30, 2023

760

(180)

26

606

September 30, 2023

1,351

(175)

10

1,186

December 31, 2023

1,897

(264)

80

1,713

39 Q1 2024 FINANCIAL INFORMATION

—

ABB Ltd

Corporate Communications

P.O. Box 8131

8050 Zurich

Switzerland

Tel: +41 (0)43 317 71

11

www.abb.com

January 1 — March 31, 2024

ABB Ltd announces that the following members of the Executive Committee or Board of Directors of ABB have purchased,

sold or been granted ABB’s registered shares, call options and warrant appreciation rights (“WARs”), in the following amounts:

Name

Date

Type of Instrument

Received*

Purchased

Sold

Price / Instrument

Timo Ihamuotila

February 05, 2024

Share

27,000

CHF

37.37

Key:

* Received instruments were delivered as part of the ABB Ltd Director’s or Executive Committee Member’s compensation or as compensation for foregone

benefits

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on

its behalf by the undersigned, thereunto duly authorized.

ABB LTD

Date: April 18, 2024.

By:

/s/ Ann-Sofie Nordh

Name:

Ann-Sofie Nordh

Title:

Group Senior Vice President and 

Head of Investor Relations

Date: April 18, 2024.

By:

/s/ Natalia Shehadeh

Name:

Natalia Shehadeh

Title:

Chief Integrity Officer, Interim General

Counsel and Corporate Secretary