ABB Q2 202 Financial Information

July 18, 2024
Q2 2024
Financial information
1 Q2 2024 FINANCIAL INFORMATION

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Financial Information
Contents
03 ─ 07 Key Figures
08 ─ 31 Consolidated Financial Information (unaudited)
32 ─ 44 Supplemental Reconciliations and Definitions

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Key Figures
CHANGE
($ in millions, unless otherwise indicated) Q2 2024 Q2 2023 US$ Comparable(1)
Orders 8,435 8,667 -3% 0%
Order backlog (end June) 22,047 21,938 0% 4%
Revenues 8,239 8,163 1% 4%
Gross Profit 3,174 2,888 10%
as % of revenues 38.5% 35.4% +3.1 pts
Income from operations 1,376 1,298 6%
Operational EBITA(1) 1,564 1,425 10% 12%(2)
(1)
as % of operational revenues 19.0% 17.5% +1.5 pts
Income from continuing operations, net of tax 1,104 932 18%
Net income attributable to ABB 1,096 906 21%
Basic earnings per share ($) 0.59 0.49 22%(3)
Cash flow from operating activities 1,067 760 40%
Free cash flow(1) 918 606 51%
CHANGE
($ in millions, unless otherwise indicated) H1 2024 H1 2023 US$ Comparable(1)
Orders 17,409 18,117 -4% -2%
Revenues 16,109 16,022 1% 3%
Gross Profit 6,109 5,604 9%
as % of revenues 37.9% 35.0% +2.9 pts
Income from operations 2,593 2,496 4%
Operational EBITA(1) 2,981 2,702 10% 11%(2)
as % of operational revenues(1) 18.4% 16.9% +1.5 pts
Income from continuing operations, net of tax 2,018 1,997 1%
Net income attributable to ABB 2,001 1,942 3%
Basic earnings per share ($) 1.09 1.04 4%(3)
Cash flow from operating activities 1,793 1,042 72%
Free cash flow(1) 1,469 768 91%
(1) For a reconciliation of alternative performance measures see “Supplemental Reconciliations and Definitions” on page 32.
(2) Constant currency (not adjusted for portfolio changes).
(3) EPS growth rates are computed using unrounded amounts.

CHANGE
($ in millions, unless otherwise indicated) Q2 2024 Q2 2023 US$ Local Comparable
Orders ABB Group 8,435 8,667 -3% -1% 0%
Electrification 4,073 3,960 3% 5% 7%
Motion 2,014 2,137 -6% -4% -4%
Process Automation 1,802 1,669 8% 10% 10%
Robotics & Discrete Automation 688 850 -19% -17% -17%
Corporate and Other 112 264
Intersegment eliminations (254) (213)
Order backlog (end June) ABB Group 22,047 21,938 0% 2% 4%
Motion 5,669 5,322 7% 8% 8%
Robotics & Discrete Automation 1,758 2,657 -34% -33% -33%
Corporate and Other
(incl. intersegment eliminations) (337) (160)
Revenues ABB Group 8,239 8,163 1% 3% 4%
Motion 1,951 1,981 -2% 0% -1%
Robotics & Discrete Automation 833 922 -10% -8% -8%
Income from operations ABB Group 1,376 1,298
Electrification 837 713
Motion 369 380
Process Automation 274 270
Robotics & Discrete Automation 46 119
Corporate and Other
Income from operations % ABB Group 16.7% 15.9%
Electrification 22.0% 19.1%
Motion 18.9% 19.2%
Process Automation 16.0% 17.4%
Robotics & Discrete Automation 5.5% 12.9%
Operational EBITA ABB Group 1,564 1,425 10% 12%
Electrification 887 787 13% 15%
Motion 388 401 -3% -2%
Process Automation 263 239 10% 13%
Robotics & Discrete Automation 93 141 -34% -32%
Corporate and Other
Operational EBITA % ABB Group 19.0% 17.5%
Motion 19.9% 20.4%
Cash flow from operating activities ABB Group 1,067 760
Electrification 850 697
Motion 509 320
Corporate and Other

CHANGE
($ in millions, unless otherwise indicated) H1 2024 H1 2023 US$ Local Comparable
Orders ABB Group 17,409 18,117 -4% -3% -2%
Motion 4,317 4,399 -2% -1% -1%
Process Automation 3,499 3,782 -7% -6% -6%
Order backlog (end June) ABB Group 22,047 21,938 0% 2% 4%
Motion 5,669 5,322 7% 8% 8%
Corporate and Other
Revenues ABB Group 16,109 16,022 1% 2% 3%
Motion 3,780 3,921 -4% -2% -3%
Income from operations ABB Group 2,593 2,496
Electrification 1,606 1,368
Motion 670 733
Corporate and Other
Income from operations % ABB Group 16.1% 15.6%
Motion 17.7% 18.7%
Operational EBITA ABB Group 2,981 2,702 10% 11%
Electrification 1,713 1,464 17% 19%
Motion 731 767 -5% -4%
Process Automation 516 444 16% 17%
Robotics & Discrete Automation 206 281 -27% -25%
Corporate and Other
Operational EBITA % ABB Group 18.4% 16.9%
Motion 19.2% 19.6%
Cash flow from operating activities ABB Group 1,793 1,042
Motion 861 469
Corporate and Other
(incl. intersegment eliminations) (1,144) (993)

Operational EBITA
Process Robotics & Discrete
ABB Electrification Motion Automation Automation
($ in millions, unless otherwise indicated) Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23
Revenues 8,239 8,163 3,809 3,735 1,951 1,981 1,717 1,553 833 922
Foreign exchange/commodity timing
differences in total revenues (4) (10) 10 2 – (11) (19) – 3 (1)
Operational revenues 8,235 8,153 3,819 3,737 1,951 1,970 1,698 1,553 836 921
Income from operations 1,376 1,298 837 713 369 380 274 270 46 119
Acquisition-related amortization 57 55 23 22 8 9 2 2 20 19
Restructuring, related and
implementation costs(1) 50 13 8 4 14 1 – 2 20 –
Changes in obligations related to
divested businesses (11) (8) – 1 – – – – – –
Gains and losses from sale of businesses 55 (26) 24 – – – – (26) – –
Acquisition- and divestment-related
expenses and integration costs 18 26 19 12 2 8 1 (2) 5 2
Certain other non-operational items 50 41 (1) 6 – 1 (5) – (2) 1
differences in income from operations (31) 26 (23) 29 (5) 2 (9) (7) 4 –
Operational EBITA 1,564 1,425 887 787 388 401 263 239 93 141
Operational EBITA margin (%) 19.0% 17.5% 23.2% 21.1% 19.9% 20.4% 15.5% 15.4% 11.1% 15.3%

($ in millions, unless otherwise indicated) H1 24 H1 23 H1 24 H1 23 H1 24 H1 23 H1 24 H1 23 H1 24 H1 23
Revenues 16,109 16,022 7,489 7,325 3,780 3,921 3,318 2,989 1,697 1,859
differences in total revenues 61 (26) 23 (20) 29 (11) 6 10 (2) –
Operational revenues 16,170 15,996 7,512 7,305 3,809 3,910 3,324 2,999 1,695 1,859
Income from operations 2,593 2,496 1,606 1,368 670 733 508 470 137 234
Acquisition-related amortization 113 109 46 44 17 17 3 3 41 39
implementation costs(1) 76 41 18 12 22 2 7 4 20 –
divested businesses (11) (5) – 1 – – – – – –
Gains and losses from sale of businesses 57 (26) 24 – – – – (26) – –
Acquisition- and divestment-related
expenses and integration costs 37 45 29 19 2 12 1 1 7 4
Certain other non-operational items 113 40 2 9 3 3 (5) – (1) 3
differences in income from operations 3 2 (12) 11 17 – 2 (8) 2 1
Operational EBITA 2,981 2,702 1,713 1,464 731 767 516 444 206 281
Operational EBITA margin (%) 18.4% 16.9% 22.8% 20.0% 19.2% 19.6% 15.5% 14.8% 12.2% 15.1%
(1) Includes impairment of certain assets.

Depreciation and Amortization
($ in millions) Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23
Depreciation 135 129 66 64 30 27 12 12 15 14
Amortization 67 67 28 27 10 10 3 3 21 20
including total acquisition-related amortization of: 57 55 23 22 8 9 2 2 20 19

($ in millions) H1 24 H1 23 H1 24 H1 23 H1 24 H1 23 H1 24 H1 23 H1 24 H1 23
Depreciation 268 254 132 126 58 53 23 23 29 29
Amortization 135 133 56 54 20 20 5 5 43 40
including total acquisition-related amortization of: 113 109 46 44 17 17 3 3 41 39
Orders received and revenues by region

($ in millions, unless otherwise indicated) Orders received CHANGE Revenues CHANGE
Com- Com-
Q2 24 Q2 23 US$ Local parable Q2 24 Q2 23 US$ Local parable
Europe 2,786 2,931 -5% -4% -4% 2,831 2,935 -4% -2% -2%
The Americas 3,031 3,209 -6% -5% -4% 2,960 2,815 5% 6% 8%
of which United States 2,241 2,319 -3% -3% -1% 2,221 2,092 6% 6% 10%
Asia, Middle East and Africa 2,618 2,527 4% 8% 9% 2,448 2,413 1% 5% 5%
of which China 1,066 1,194 -11% -8% -7% 1,134 1,174 -3% 0% 0%
ABB Group 8,435 8,667 -3% -1% 0% 8,239 8,163 1% 3% 4%
($ in millions, unless otherwise indicated) Orders received CHANGE Revenues CHANGE

Com- Com-
H1 24 H1 23 US$ Local parable H1 24 H1 23 US$ Local parable
Europe 6,084 6,513 -7% -7% -7% 5,579 5,807 -4% -4% -4%
The Americas 5,935 6,194 -4% -4% -3% 5,749 5,468 5% 5% 8%
of which United States 4,380 4,449 -2% -1% 0% 4,331 4,076 6% 6% 10%
Asia, Middle East and Africa 5,390 5,410 0% 4% 4% 4,781 4,747 1% 5% 5%
of which China 2,116 2,549 -17% -14% -13% 2,132 2,328 -8% -5% -4%
ABB Group 17,409 18,117 -4% -3% -2% 16,109 16,022 1% 2% 3%

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Consolidated Financial Information
ABB Ltd Consolidated Income Statements (unaudited)
Six months ended Three months ended

($ in millions, except per share data in $) Jun. 30, 2024 Jun. 30, 2023 Jun. 30, 2024 Jun. 30, 2023
Sales of products 13,355 13,530 6,852 6,886
Sales of services and other 2,754 2,492 1,387 1,277
Total revenues 16,109 16,022 8,239 8,163
Cost of sales of products (8,415) (8,946) (4,270) (4,528)
Cost of services and other (1,585) (1,472) (795) (747)
Total cost of sales (10,000) (10,418) (5,065) (5,275)
Gross profit 6,109 5,604 3,174 2,888
Selling, general and administrative expenses (2,806) (2,727) (1,425) (1,388)
Non-order related research and development expenses (727) (637) (364) (333)
Other income (expense), net 17 256 (9) 131
Income from operations 2,593 2,496 1,376 1,298
Interest and dividend income 103 78 46 38
Interest and other finance expense (50) (124) (13) (63)
Non-operational pension (cost) credit 26 15 10 8
Income from continuing operations before taxes 2,672 2,465 1,419 1,281
Income tax expense (654) (468) (315) (349)
Income from continuing operations, net of tax 2,018 1,997 1,104 932
Loss from discontinued operations, net of tax (3) (9) (2) (4)
Net income 2,015 1,988 1,102 928
Net income attributable to noncontrolling
interests and redeemable noncontrolling interests (14) (46) (6) (22)
Net income attributable to ABB 2,001 1,942 1,096 906
Amounts attributable to ABB shareholders:

Net income 2,001 1,942 1,096 906
Basic earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax 1.09 1.05 0.59 0.49
Loss from discontinued operations, net of tax 0.00 0.00 0.00 0.00
Net income 1.09 1.04 0.59 0.49
Diluted earnings per share attributable to ABB shareholders:

Net income 1.08 1.04 0.59 0.48
Weighted-average number of shares outstanding (in millions) used to compute:

Basic earnings per share attributable to ABB shareholders 1,844 1,861 1,849 1,862
Diluted earnings per share attributable to ABB shareholders 1,853 1,873 1,855 1,873
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information

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ABB Ltd Condensed Consolidated Statements of Comprehensive
Income (unaudited)

($ in millions) Jun. 30, 2024 Jun. 30, 2023 Jun. 30, 2024 Jun. 30, 2023
Total comprehensive income, net of tax 2,053 1,914 990 761
Total comprehensive (income) loss attributable to noncontrolling interests and
redeemable noncontrolling interests, net of tax 2 (43) (6) (13)
Total comprehensive income attributable to ABB shareholders, net of tax 2,055 1,871 984 748

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ABB Ltd Consolidated Balance Sheets (unaudited)
($ in millions) Jun. 30, 2024 Dec. 31, 2023

Cash and equivalents 2,961 3,891
Restricted cash 18 18
Marketable securities and short-term investments 1,289 1,928
Receivables, net 7,492 7,446
Contract assets 1,118 1,090
Inventories, net 6,257 6,149
Prepaid expenses 294 235
Other current assets 412 520
Total current assets 19,841 21,277
Property, plant and equipment, net 4,095 4,142

Operating lease right-of-use assets 861 893
Investments in equity-accounted companies 189 187
Prepaid pension and other employee benefits 791 780
Intangible assets, net 1,089 1,223
Goodwill 10,525 10,561
Deferred taxes 1,376 1,381
Other non-current assets 514 496
Total assets 39,281 40,940
Accounts payable, trade 5,118 4,847

Contract liabilities 2,973 2,844
Short-term debt and current maturities of long-term debt 410 2,607
Current operating leases 255 249
Provisions for warranties 1,212 1,210
Other provisions 963 1,201
Other current liabilities 4,123 5,046
Total current liabilities 15,054 18,004
Long-term debt 6,338 5,221

Non-current operating leases 631 666
Pension and other employee benefits 657 686
Deferred taxes 712 669
Other non-current liabilities 1,743 1,548
Total liabilities 25,135 26,794
Commitments and contingencies
Redeemable noncontrolling interest 80 89
Stockholders’ equity:
Common stock, CHF 0.12 par value
(1,861 million and 1,882 million shares issued at June 30, 2024, and December 31, 2023, respectively) 162 163
Additional paid-in capital 9 7
Retained earnings 18,783 19,724
Accumulated other comprehensive loss (5,016) (5,070)
Treasury stock, at cost
(12 million and 40 million shares at June 30, 2024, and December 31, 2023, respectively) (469) (1,414)
Total ABB stockholders’ equity 13,469 13,410
Noncontrolling interests 597 647
Total stockholders’ equity 14,066 14,057
Total liabilities and stockholders’ equity 39,281 40,940

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ABB Ltd Consolidated Statements of Cash Flows (unaudited)

($ in millions) Jun. 30, 2024 Jun. 30, 2023 Jun. 30, 2024 Jun. 30, 2023
Operating activities:
Net income 2,015 1,988 1,102 928
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 403 387 202 196
Changes in fair values of investments (20) (24) (7) (11)
Pension and other employee benefits (35) (12) (22) (13)
Deferred taxes 22 36 28 11
Loss (income) from equity-accounted companies 9 7 4 –
Net gain from derivatives and foreign exchange (39) (53) (31) (16)
Net gain from sale of property, plant and equipment (26) (33) (21) (7)
Net loss (gain) from sale of businesses 57 (26) 55 (26)
Other 64 92 37 65
Changes in operating assets and liabilities:
Trade receivables, net (179) (659) (146) (297)
Contract assets and liabilities 162 79 124 69
Inventories, net (311) (450) (106) (186)
Accounts payable, trade 198 (8) 116 (30)
Accrued liabilities (424) (204) 49 120
Provisions, net (14) 51 (51) 9
Income taxes payable and receivable (6) (86) (128) 29
Other assets and liabilities, net (83) (43) (138) (81)
Net cash provided by operating activities 1,793 1,042 1,067 760
Investing activities:
Purchases of investments (916) (760) (39) (100)
Purchases of property, plant and equipment and intangible assets (366) (331) (185) (180)
Acquisition of businesses (net of cash acquired)
and increases in cost- and equity-accounted companies (134) (135) (104) (116)
Proceeds from sales of investments 1,584 176 857 156
Proceeds from maturity of investments – 138 – 138
Proceeds from sales of property, plant and equipment 42 57 36 26
Proceeds from sales of businesses (net of transaction costs
and cash disposed) and cost- and equity-accounted companies (8) 22 – 27
Net cash from settlement of foreign currency derivatives 124 (18) 93 (54)
Changes in loans receivable, net (6) 1 (7) (7)
Other investing activities – 9 – 10
Net cash provided by (used in) investing activities 320 (841) 651 (100)
Financing activities:
Net changes in debt with original maturities of 90 days or less (7) (35) 13 679
Increase in debt 1,364 1,648 6 15
Repayment of debt (2,151) (1,128) (1,586) (1,092)
Delivery of shares 390 96 – 1
Purchase of treasury stock (563) (476) (272) (202)
Dividends paid (1,769) (1,713) (850) (419)
Dividends paid to noncontrolling shareholders (94) (83) (94) (80)
Proceeds from issuance of subsidiary shares – 328 – (13)
Other financing activities (55) – (52) (12)
Net cash used in financing activities (2,885) (1,363) (2,835) (1,123)
Effects of exchange rate changes on cash and equivalents and restricted cash (158) (42) (24) (37)
Adjustment for the net change in cash and equivalents and restricted cash
in Assets held for sale – (28) – (15)
Net change in cash and equivalents and restricted cash (930) (1,232) (1,141) (515)
Cash and equivalents and restricted cash, beginning of period 3,909 4,174 4,120 3,457
Cash and equivalents and restricted cash, end of period 2,979 2,942 2,979 2,942
Supplementary disclosure of cash flow information:
Interest paid 148 108 54 60
Income taxes paid 643 527 415 320

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

Accumulated
Additional other Total ABB Non- Total
Common paid-in Retained comprehensive Treasury stockholders’ controlling stockholders’
($ in millions) stock capital earnings loss stock equity interests equity
Balance at January 1, 2023 171 141 20,082 (4,556) (3,061) 12,777 410 13,187
Net income(1) 1,942 1,942 47 1,989
Foreign currency translation
adjustments, net of tax of $(2) (76) (76) (3) (79)
Effect of change in fair value of
available-for-sale securities,
net of tax of $2 7 7 7
Unrecognized income (expense)
related to pensions and other
postretirement plans,
net of tax of $4 (5) (5) (5)
Change in derivative instruments
and hedges, net of tax of $1 3 3 3
Issuance of subsidiary shares 170 170 168 338
Other changes in
noncontrolling interests (6) (6) 4 (2)
Dividends to
noncontrolling shareholders – (84) (84)
Dividends to shareholders (1,706) (1,706) (1,706)
Cancellation of treasury shares (7) (201) (2,359) 2,567 – –
Share-based payment arrangements 62 62 1 63
Purchase of treasury stock (464) (464) (464)
Delivery of shares (153) 249 96 96
Other (3) (3) (3)
Balance at June 30, 2023 163 11 17,958 (4,627) (709) 12,796 544 13,340
Balance at January 1, 2024 163 7 19,724 (5,070) (1,414) 13,410 647 14,057
Net income(1) 2,001 2,001 15 2,016
Foreign currency translation
adjustments, net of tax of $2 1 1 (16) (15)
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 $20 50 50 50
Change in derivative instruments
and hedges, net of tax of $0 4 4 4
Changes in noncontrolling interests (10) (62) (72) 44 (28)
Dividends to
noncontrolling shareholders – (95) (95)
Dividends to shareholders (1,804) (1,804) (1,804)
Cancellation of treasury shares (2) (2) (828) 832 – –
Share-based payment arrangements 44 44 2 46
Purchase of treasury stock (552) (552) (552)
Delivery of shares (25) (249) 664 390 390
Other (5) (5) 2 (3)
Balance at June 30, 2024 162 9 18,783 (5,016) (469) 13,469 597 14,066
(1) Amounts attributable to noncontrolling interests for the six months ended June 30, 2024 and 2023, exclude net losses of $1 million and $2 million, respectively, related to
redeemable noncontrolling interests, which are reported in the mezzanine equity section on the Consolidated Balance Sheets.

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Notes to the Consolidated Financial Information (unaudited)
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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.
Adjustment related to prior periods

In the three months ended June 30, 2024, the Company recorded a cumulative correction to certain reserves for self-insurance. The correction in this
liability resulted in a $58 million reduction in Total cost of sales in the Interim Consolidated Income Statement for the three months ended June 30, 2024,
and is included in Corporate and Other Operational EBITA. The Company evaluated the impact of the correction on both a quantitative and qualitative
basis under the guidance of ASC 250, Accounting Changes and Error Corrections, and determined that there were no material impacts on the trend of
net income, cash flows or liquidity for previously issued annual financial statements.
Change in accounting policy

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 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 rec lassified to conform
to the current period presentation and there was no material impact for the six and three months ended June 30, 2023.

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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 2024 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.
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Note 3
Acquisitions and equity-accounted companies
Acquisition of controlling interests
Acquisitions of controlling interests were as follows:
Six months ended June 30, Three months ended June 30,
($ in millions, except number of acquired businesses) 2024 2023 2024 2023
Purchase price for acquisitions (net of cash acquired)(1) 104 114 75 113
Aggregate excess of purchase price over
fair value of net assets acquired(2) 89 54 60 50
Number of acquired businesses 3 2 1 2
(1) Excluding changes in cost- and equity-accounted companies.
(2) Recorded as goodwill.
In the table above, the “Purchase price for acquisitions” and “Aggregate excess of purchase price over fair value of net assets acquired” amounts in the
six months ended June 30, 2024, relate primarily to the acquisition of DTN Europe B.V.
Acquisitions of controlling interests have been accounted for under the acquisition method and have been included in the Company’s consolidated
financial statements since the date of acquisition.
While the Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets acquired and liabilities
assumed at the acquisition date, the purchase price allocation for acquisitions is preliminary for up to 12 months after the acquisition date and is
subject to refinement as more detailed analyses are completed and additional information about the fair values of the assets and liabilities becomes
available.

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Note 4
Cash and equivalents, marketable securities and short-term investments
Cash and equivalents, marketable securities and short-term investments consisted of the following:
June 30, 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 1,617 1,617 1,617
Time deposits 1,854 1,854 1,362 492
Equity securities 590 22 612 612
4,061 22 – 4,083 2,979 1,104
Changes in fair value recorded
in other comprehensive income
Debt securities available-for-sale:
U.S. government obligations 192 2 (9) 185 185
192 2 (9) 185 – 185
Total 4,253 24 (9) 4,268 2,979 1,289
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

─
Note 5
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 purchases, the Company’s policy is to hedge up to a maximum
of 100 percent of the forecasted foreign currency denominated exposures, depending on the length of the forecasted exposures. Forecasted exposures
greater than 12 months are not hedged. Forward foreign exchange contracts are the main instrument used to protect the Company against the volatility
of future cash flows (caused by changes in exchange rates) of 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 accounting.
Foreign exchange and interest rate derivatives

The gross notional amounts of outstanding foreign exchange and interest rate derivatives (whether designated as hedges or not) were as follows:
Type of derivative Total notional amounts at

($ in millions) June 30, 2024 December 31, 2023 June 30, 2023
Foreign exchange contracts 13,924 12,335 14,256
Embedded foreign exchange derivatives 1,131 1,137 1,374
Cross-currency interest rate swaps 857 886 868
Interest rate contracts 1,071 1,606 2,198
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

June 30, 2024 December 31, 2023 June 30, 2023
Copper swaps metric tonnes 29,453 35,015 32,894
Silver swaps ounces 1,754,340 2,359,363 1,726,172
Steel swaps metric tonnes 16,738 10,206 11,158
Aluminum swaps metric tonnes 5,125 5,900 5,950
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 six and three months ended June 30, 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:
($ in millions) 2024 2023 2024 2023
Gains (losses) recognized in Interest and other finance expense:
Interest rate contracts Designated as fair value hedges 10 18 (3) 8
Hedged item (10) (18) 4 (8)
Cross-currency interest rate swaps Designated as fair value hedges (5) (10) (2) 1
Hedged item 6 – 3 (2)
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 Six months ended June 30, Three months ended June 30,
($ in millions) Location 2024 2023 2024 2023
Foreign exchange contracts Total revenues (186) 5 (18) (6)
Total cost of sales 52 (12) 5 (11)
SG&A expenses(1) 21 14 8 8
Non-order related research
and development (1) (1) 1 (1)
Interest and other finance expense 194 (62) (53) (104)
Embedded foreign exchange Total revenues 16 45 (2) 38
contracts Total cost of sales (4) (1) – –
Commodity contracts Total cost of sales 45 (15) 36 (26)
Other Interest and other finance expense (2) 1 – 1
Total 135 (26) (23) (101)
(1) SG&A expenses represent “Selling, general and administrative expenses”.
The fair values of derivatives included in the Consolidated Balance Sheets were as follows:
June 30, 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 – – 3 –
Interest rate contracts – – – 10
Cross-currency interest rate swaps – – – 265
Other 8 – – –
Total 8 – 3 275
Derivatives not designated as hedging instruments:

Foreign exchange contracts 74 22 101 8
Commodity contracts 35 – 3 –
Interest rate contracts 1 – 2 –
Embedded foreign exchange derivatives 23 5 10 2
Other – 3 – –
Total 133 30 116 10
Total fair value 141 30 119 285

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.
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 June 30, 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 June 30, 2024, and December 31,
2023, information related to these offsetting arrangements was as follows:
($ in millions) June 30, 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 143 (61) – – 82
Total 143 (61) – – 82
($ in millions) June 30, 2024

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 392 (61) – – 331
Total 392 (61) – – 331
($ in millions) December 31, 2023

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

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

─
Note 6
Fair values
The Company uses fair value measurement principles to record certain financial assets and liabilities on a recurring basis and, when necessary, to record
certain non-financial assets at fair value on a non-recurring basis, as well as to determine fair value disclosures for certain financial instruments carried
at amortized cost in the financial statements. Financial assets and liabilities recorded at fair value on a recurring basis include foreign currency,
commodity and interest rate derivatives, as well as 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:
June 30, 2024

($ in millions) Level 1 Level 2 Level 3 Total fair value
Assets
Securities in “Marketable securities and short-term investments”:
Equity securities – 612 – 612
Debt securities—U.S. government obligations 185 – – 185
Derivative assets—current in “Other current assets” – 141 – 141
Derivative assets—non-current in “Other non-current assets” – 30 – 30
Total 185 783 – 968
Liabilities
Derivative liabilities—current in “Other current liabilities” – 119 – 119
Derivative liabilities—non-current in “Other non-current liabilities” – 285 – 285
Total – 404 – 404
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

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 six and three months ended June 30, 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:
June 30, 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 1,599 1,599 – – 1,599
Time deposits 1,362 – 1,362 – 1,362
Restricted cash 18 18 – – 18
Marketable securities and short-term investments
(excluding securities):
Time deposits 492 – 492 – 492
Liabilities
Short-term debt and current maturities of long-term debt
(excluding finance lease obligations) 379 335 44 – 379
Long-term debt (excluding finance lease obligations) 6,166 6,163 8 – 6,171
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
(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).

─
Note 7
Contract assets and liabilities
The following table provides information about Contract assets and Contract liabilities:
($ in millions) June 30, 2024 December 31, 2023 June 30, 2023
Contract assets 1,118 1,090 1,010
Contract liabilities 2,973 2,844 2,394
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:
Six months ended June 30,

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 (1,084) (966)
Additions to Contract liabilities - excluding amounts recognized as revenue during the period 1,301 1,102
Receivables recognized that were included in the Contract assets balance at Jan 1, 2024/2023 (516) (465)
The Company considers its order backlog to represent its unsatisfied performance obligations. At June 30, 2024, the Company had unsatisfied
performance obligations totaling $22,047 million and, of this amount, the Company expects to fulfill approximately 49% percent of the obligations in
2024, approximately 33% percent of the obligations in 2025 and the balance thereafter.
─
Note 8
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 June 30, 2024, and
December 31, 2023, the total obligation outstanding under supplier finance programs amounted to $485 million and $415 million, respectively.

─
Note 9
Debt
The Company’s total debt at June 30, 2024, and December 31, 2023, amounted to $6,748 million and $7,828 million, respectively.

The Company’s “Short-term debt and current maturities of long-term debt” consisted of the following:
($ in millions) June 30, 2024 December 31, 2023

Short-term debt 62 87
Current maturities of long-term debt 348 2,520
Total 410 2,607
Short-term debt primarily represented short-term bank borrowings from various banks.
In May 2024, the Company repaid at maturity its EUR 750 million 0.75% EUR Instruments, equivalent to $816 million on date of repayment. In April 2024,
the Company repaid at maturity its EUR 700 million 0.625% EUR Instruments, equivalent to $752 million on date of repayment and 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 June 30, 2024, and December 31, 2023, amounted to $6,338 million and $5,221 million, respectively.
Outstanding bonds (including maturities within the next 12 months) were as follows:
June 30, 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 $ 768
0.3% CHF Bonds, due 2024 CHF 280 $ 311 CHF 280 $ 335
3.25% EUR Instruments, due 2027 EUR 500 $ 533 EUR 500 $ 551
3.8% USD Notes, due 2028(2) USD 383 $ 382 USD 383 $ 382
0% EUR Instruments, due 2030 EUR 800 $ 714 EUR 800 $ 749
3.375% EUR Instruments, due 2031 EUR 750 $ 792 EUR 750 $ 818
4.375% USD Notes, due 2042 (2) USD 609 $ 591 USD 609 $ 591
Total $ 6,470 $ 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).

─
Note 10
Commitments and contingencies
Contingencies—Regulatory, Compliance and Legal
Regulatory
Based on findings during an internal investigation, the Company self-reported to the Securities and 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 June 30, 2024, and December 31, 2023, the Company had aggregate liabilities of $80 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) June 30, 2024 December 31, 2023
Performance guarantees 3,342 3,451
Financial guarantees 22 94
Total(1) 3,364 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 June 30, 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 2034, 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 June 30, 2024, and December 31, 2023, the maximum
potential payable under these guarantees amounts to $840 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 June 30, 2024, and December 31, 2023, have been fully indemnified by Hitachi Ltd. These
guarantees, having various maturities up to 2034, primarily consist of bank guarantees, standby letters of credit, business performance guarantees 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 June 30, 2024, and December 31, 2023, is approximately $2.1 billion and $2.2 billion, respectively.
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 June 30, 2024, and December 31, 2023, the total outstanding performance bonds aggregated to
$3.3 billion and $3.1 billion, respectively. There have been no significant amounts reimbursed to financial institutions under these types of arrangements
in the six and three months ended June 30, 2024 and 2023.

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 (78) (85)
Net increase in provision for changes in estimates, warranties issued and warranties expired 120 136
Exchange rate differences (40) (3)
Balance at June 30, 1,212 1,076
─
Note 11
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 24.5 percent in the six months ended June 30, 2024, was higher than the effective tax rate of 19.0 percent in the six months
ended June 30, 2023, primarily due to a net benefit of $206 million realized on a favorable resolution of an uncertain tax position in the six months ended
June 30, 2023, partially offset by a net benefit of $72 million from a partial reversal of an uncertain tax position related to the reassessment of certain tax
risks in the six months ended June 30, 2024. The former resulted in an increase of $0.11 in earnings per share (basic and diluted) for the six months
ended June 30, 2023, while the latter resulted in an increase of $0.04 in earnings per share (basic and diluted) for the six and three months ended
June 30, 2024.
─
Note 12
Employee benefits
The Company operates defined benefit pension plans, defined contribution pension plans, and termination indemnity plans, in accordance with local
regulations and practices. At June 30, 2024, the Company’s most significant defined benefit pension plans are in Switzerland as well as in Germany, the
United Kingdom, and the United States. These plans cover a large portion of the Company’s employees and provide benefits to employees in the event
of death, disability, retirement, or termination of employment. Certain of these plans are multi-employer plans. The Company also operates other
postretirement benefit plans including postretirement health care benefits and other employee-related benefits for active employees including
long-service award plans. The postretirement benefit plans are not significant. The measurement date used for the Company’s employee benefit plans is
December 31. The funding policies of the Company’s plans are consistent with the local government and tax requirements.
Net periodic benefit cost of the Company’s defined benefit pension plans consists of the following:
($ in millions) Defined pension benefits

Switzerland International
Six months ended June 30, 2024 2023 2024 2023
Operational pension cost:
Service cost 23 19 13 14
Operational pension cost 23 19 13 14
Non-operational pension cost (credit):
Interest cost 17 24 78 82
Expected return on plan assets (62) (63) (85) (74)
Amortization of prior service cost (credit) (4) (4) (1) (1)
Amortization of net actuarial loss – – 26 23
Curtailments, settlements and special termination benefits 2 – 4 –
Non-operational pension cost (credit)(1) (47) (43) 22 30
Net periodic benefit cost (credit) (24) (24) 35 44

Three months ended June 30, 2024 2023 2024 2023
Operational pension cost:
Service cost 12 10 5 6
Operational pension cost 12 10 5 6
Non-operational pension cost (credit):
Interest cost 8 12 39 42
Expected return on plan assets (31) (30) (42) (35)
Amortization of prior service cost (credit) (2) (4) – (1)
Amortization of net actuarial loss – – 13 10
Curtailments, settlements and special termination benefits 2 – 4 –
Non-operational pension cost (credit)(1) (23) (22) 14 16
Net periodic benefit cost (credit) (11) (12) 19 22
(1) Total Non-operational pension cost (credit) includes additional credits of $(1) million and $(2) million for the six months ended June 30, 2024 and 2023, respectively, and
additional credits of $(1) million and $(2) million for the three months ended June 30, 2024 and 2023, respectively, related to other postretirement benefits.
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:

Six months ended June 30, 2024 2023 2024 2023
Total contributions to defined benefit pension plans 28 5 26 21

Three months ended June 30, 2024 2023 2024 2023
Total contributions to defined benefit pension plans 15 3 15 10
The Company expects to make contributions totaling approximately $92 million to its defined benefit pension plans for the full year 2024.
─
Note 13
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 disbursing a portion in March and the
remaining amounts in April.
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. Through this program, the Company purchased,
from the program’s launch in April 2024 to June 30, 2024, 4 million shares, resulting in an increase in Treasury stock of $190 million.
In the second quarter of 2024, the Company cancelled 21 million shares which had been purchased under its share buyback program. This resulted in a
decrease in Treasury stock of $832 million and a corresponding total decrease in Capital stock, Additional paid-in capital and Retained earnings.
During the first half of 2024, the Company delivered, out of treasury stock, approximately 16 million shares in connection with its Management Incentive
Plan.

─
Note 14
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

($ in millions, except per share data in $) 2024 2023 2024 2023
Net income 2,001 1,942 1,096 906
Weighted-average number of shares outstanding (in millions) 1,844 1,861 1,849 1,862
Basic earnings per share attributable to ABB shareholders:

Net income 1.09 1.04 0.59 0.49
Diluted earnings per share

($ in millions, except per share data in $) 2024 2023 2024 2023
Net income 2,001 1,942 1,096 906
Weighted-average number of shares outstanding (in millions) 1,844 1,861 1,849 1,862
Effect of dilutive securities:
Call options and shares 9 12 6 11
Adjusted weighted-average number of shares outstanding (in millions) 1,853 1,873 1,855 1,873
Diluted earnings per share attributable to ABB shareholders:

Net income 1.08 1.04 0.59 0.48

─
Note 15
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 (79) 2 (13) (1) (91)
Amounts reclassified from OCI – 5 8 4 17
Total other comprehensive (loss) income (79) 7 (5) 3 (74)
Less:
Amounts attributable to
noncontrolling interests and
redeemable noncontrolling interests (3) – – – (3)
Balance at June 30, 2023 (3,767) (12) (843) (5) (4,627)
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 (16) (1) 31 1 15
Amounts reclassified from OCI – – 19 3 22
Changes attributable to divestments 1 – – – 1
Total other comprehensive (loss) income (15) (1) 50 4 38
Less:
Amounts attributable to
noncontrolling interests and
redeemable noncontrolling interests (16) – – – (16)
Balance at June 30, 2024 (3,976) (9) (1,025) (6) (5,016)
The amounts reclassified out of OCI for the six and three months ended June 30, 2024 and 2023, were not significant.
─
Note 16
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 six and three months ended June 30, 2024 and 2023, as well
as total assets at June 30, 2024, and December 31, 2023.
Six months ended June 30, 2024

Robotics &
Process Discrete Corporate
($ in millions) Electrification Motion Automation Automation and Other Total
Geographical markets
Europe 2,296 1,062 1,181 924 116 5,579
The Americas 3,172 1,293 920 273 91 5,749
of which: United States 2,457 1,056 579 170 69 4,331
Asia, Middle East and Africa 1,893 1,142 1,200 495 51 4,781
of which: China 871 546 361 343 11 2,132
7,361 3,497 3,301 1,692 258 16,109
Product type
Products 6,862 2,926 1,938 1,398 231 13,355
Services and other 499 571 1,363 294 27 2,754
7,361 3,497 3,301 1,692 258 16,109
Third-party revenues 7,361 3,497 3,301 1,692 258 16,109

Intersegment revenues 128 283 17 5 (433) –
Total revenues (1) 7,489 3,780 3,318 1,697 (175) 16,109

Robotics &
Europe 2,328 1,289 1,081 956 153 5,807
The Americas 2,932 1,267 868 272 129 5,468
of which: United States 2,179 1,061 550 175 111 4,076
Asia, Middle East and Africa 1,948 1,117 1,027 623 32 4,747
of which: China 917 581 339 475 17 2,329
7,208 3,673 2,976 1,851 314 16,022
Product type
Products 6,762 3,169 1,743 1,576 280 13,530
Services and other 446 504 1,233 275 34 2,492
7,208 3,673 2,976 1,851 314 16,022
Third-party revenues 7,208 3,673 2,976 1,851 314 16,022

Total revenues (1) 7,325 3,921 2,989 1,859 (72) 16,022
Three months ended June 30, 2024

Robotics &
Europe 1,142 574 626 434 55 2,831
The Americas 1,643 663 473 133 48 2,960
of which: United States 1,271 540 294 85 31 2,221
Asia, Middle East and Africa 957 584 607 264 36 2,448
of which: China 456 290 196 186 6 1,134
3,742 1,821 1,706 831 139 8,239
Product type
Products 3,482 1,531 1,027 687 125 6,852
Services and other 260 290 679 144 14 1,387
3,742 1,821 1,706 831 139 8,239
Third-party revenues 3,742 1,821 1,706 831 139 8,239

Total revenues (1) 3,809 1,951 1,717 833 (71) 8,239

Robotics &
Europe 1,166 651 562 482 74 2,935
The Americas 1,525 635 447 136 72 2,815
of which: United States 1,136 528 286 84 58 2,092
Asia, Middle East and Africa 991 568 538 299 17 2,413
of which: China 460 300 177 227 10 1,174
3,682 1,854 1,547 917 163 8,163
Product type
Products 3,456 1,586 916 785 143 6,886
Services and other 226 268 631 132 20 1,277
3,682 1,854 1,547 917 163 8,163
Third-party revenues 3,682 1,854 1,547 917 163 8,163

Total revenues (1) 3,735 1,981 1,553 922 (28) 8,163
(1) Due to rounding, numbers presented may not add to the totals provided.

June 30, June 30,
($ in millions) 2024 2023 2024 2023
Operational EBITA:
Electrification 1,713 1,464 887 787
Motion 731 767 388 401
Process Automation 516 444 263 239
Robotics & Discrete Automation 206 281 93 141
Corporate and Other
‒ E-mobility (141) (95) (87) (67)
‒ Corporate costs, Intersegment elimination and other (44) (159) 20 (76)
Total 2,981 2,702 1,564 1,425
Acquisition-related amortization (113) (109) (57) (55)
Restructuring, related and implementation costs(1) (76) (41) (50) (13)
Changes in obligations related to divested businesses 11 5 11 8
Gains and losses from sale of businesses (57) 26 (55) 26
Acquisition- and divestment-related expenses and integration costs (37) (45) (18) (26)
Foreign exchange/commodity timing differences in income from operations:
Unrealized gains and losses on derivatives (foreign exchange,
commodities, embedded derivatives) (44) (10) 33 (32)
Realized gains and losses on derivatives where the underlying hedged
transaction has not yet been realized (1) (6) (2) (1)
Unrealized foreign exchange movements on receivables/payables (and
related assets/liabilities) 42 14 – 7
Certain other non-operational items:
Other income/expense relating to the Power Grids joint venture 11 20 3 7
Regulatory, compliance and legal costs (4) – (1) –
Business transformation costs(2) (101) (82) (51) (48)
Certain other fair value changes, including asset impairments (19) 6 (5) 7
Other non-operational items – 16 4 (7)

(2) Amount includes ABB Way process transformation costs of $99 million and $71 million for the six months ended June 30, 2024 and 2023, respectively, and $53 million
and $41 million for the three months ended June 30, 2024 and 2023, respectively.
Total assets(1)
Motion 6,991 7,016
Process Automation 5,021 4,971
Robotics & Discrete Automation 4,921 5,047
Corporate and Other 9,369 11,238
Consolidated 39,281 40,940
(1) Total assets are after intersegment eliminations and therefore reflect third -party assets only.

—
Supplemental Reconciliations and Definitions
The following reconciliations and definitions include alternative performance 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 not defined under U.S. GAAP.
While ABB’s management believes that the measures herein are useful in evaluating ABB’s operating results, this information s hould be
considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance wit h U.S. GAAP.
Therefore these measures should not be viewed in isolation but considered together with the Consolidated Financial Informatio n (unaudited)
prepared in accordance with U.S. GAAP as of and for the six and three months ended June 30, 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

Q2 2024 compared to Q2 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 3% 2% 2% 7% 2% 2% 3% 7%
Motion -6% 2% 0% -4% -2% 2% -1% -1%
Process Automation 8% 2% 0% 10% 11% 1% 0% 12%
Robotics & Discrete Automation -19% 2% 0% -17% -10% 2% 0% -8%
ABB Group -3% 2% 1% 0% 1% 2% 1% 4%
H1 2024 compared to H1 2023

Motion -2% 1% 0% -1% -4% 2% -1% -3%
Process Automation -7% 1% 0% -6% 11% 1% 0% 12%
ABB Group -4% 1% 1% -2% 1% 1% 1% 3%

Regional comparable growth rate reconciliation
Regional comparable growth rate reconciliation for ABB Group - Quarter

Region reported) impact changes Comparable reported) impact changes Comparable
Europe -5% 1% 0% -4% -4% 2% 0% -2%
The Americas -6% 1% 1% -4% 5% 1% 2% 8%
of which: United States -3% 0% 2% -1% 6% 0% 4% 10%
Asia, Middle East and Africa 4% 4% 1% 9% 1% 4% 0% 5%
of which: China -11% 3% 1% -7% -3% 3% 0% 0%
ABB Group -3% 2% 1% 0% 1% 2% 1% 4%
Regional comparable growth rate reconciliation by Business Area - Quarter

Europe 5% 1% 1% 7% -2% 1% 2% 1%
The Americas 0% 0% 4% 4% 8% 0% 6% 14%
of which: United States 4% 0% 4% 8% 12% 0% 8% 20%
Asia, Middle East and Africa 5% 6% 1% 12% -2% 4% 2% 4%
of which: China -7% 3% 1% -3% -1% 3% 2% 4%

Europe -5% 1% 0% -4% -11% 1% 0% -10%
The Americas -13% 0% -1% -14% 3% 1% -2% 2%
of which: United States -18% 0% -1% -19% 2% 0% -2% 0%
of which: China -4% 3% 0% -1% 2% 3% 0% 5%
Motion -6% 2% 0% -4% -2% 2% -1% -1%

Europe 22% 0% 0% 22% 12% 1% 0% 13%
The Americas -10% 1% 0% -9% 6% 1% 0% 7%
of which: China -23% 2% 0% -21% 11% 4% 0% 15%

Europe -32% 1% 0% -31% -10% 1% 0% -9%
The Americas 17% 1% 0% 18% -3% 1% 0% -2%
of which: United States 40% 0% 0% 40% -2% 0% 0% -2%
Asia, Middle East and Africa -18% 3% 0% -15% -12% 3% 0% -9%
of which: China -20% 3% 0% -17% -18% 3% 0% -15%

Regional comparable growth rate reconciliation for ABB Group – Year to date

Europe -7% 0% 0% -7% -4% 0% 0% -4%
The Americas -4% 0% 1% -3% 5% 0% 3% 8%
of which: United States -2% 1% 1% 0% 6% 0% 4% 10%
of which: China -17% 3% 1% -13% -8% 3% 1% -4%
ABB Group -4% 1% 1% -2% 1% 1% 1% 3%
Regional comparable growth rate reconciliation by Business Area – Year to date

Europe 4% 0% 0% 4% -2% 0% 1% -1%
The Americas 4% 0% 3% 7% 8% 0% 6% 14%
of which: United States 8% 0% 4% 12% 13% 0% 8% 21%
Asia, Middle East and Africa 5% 5% 1% 11% -2% 5% 1% 4%
of which: China -7% 4% 1% -2% -5% 4% 1% 0%

Europe -7% -1% 0% -8% -16% 0% 0% -16%
The Americas -7% 0% -2% -9% 2% 0% -3% -1%
of which: United States -11% 0% -2% -13% -1% 0% -2% -3%
of which: China -8% 4% 0% -4% -4% 4% 0% 0%
Motion -2% 1% 0% -1% -4% 2% -1% -3%

Europe 3% 0% 0% 3% 9% 0% 0% 9%
The Americas -18% 0% 0% -18% 6% 0% 0% 6%
Asia, Middle East and Africa -11% 3% 0% -8% 17% 4% 0% 21%
of which: China -31% 3% 0% -28% 7% 4% 0% 11%
Process Automation -7% 1% 0% -6% 11% 1% 0% 12%

Europe -31% -1% 0% -32% -3% 0% 0% -3%
The Americas -5% 0% 0% -5% 0% 0% 0% 0%
of which: United States -2% 0% 0% -2% -4% 0% 0% -4%
Asia, Middle East and Africa -26% 4% 0% -22% -21% 4% 0% -17%
of which: China -35% 3% 0% -32% -28% 3% 0% -25%

Order backlog growth rate reconciliation
June 30, 2024 compared to June 30, 2023
US$ Foreign
(as exchange Portfolio
Business Area reported) impact changes Comparable
Electrification 3% 2% 6% 11%
Motion 7% 1% 0% 8%
Process Automation 9% 1% 0% 10%
Robotics & Discrete Automation -34% 1% 0% -33%
ABB Group 0% 2% 2% 4%
Other growth rate reconciliations

Service orders growth rate Services revenues growth rate
Motion -5% 3% 0% -2% 8% 3% 0% 11%
Robotics & Discrete Automation 3% 2% 0% 5% 10% 2% 0% 12%
ABB Group 6% 3% 0% 9% 9% 2% 0% 11%

Service orders growth rate Services revenues growth rate
Motion 0% 2% 0% 2% 13% 4% 0% 17%
Robotics & Discrete Automation 2% 1% 0% 3% 7% 1% 0% 8%
ABB Group 6% 1% 0% 7% 11% 1% 0% 12%

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

($ in millions) 2024 2023 2024 2023
Operational EBITA 2,981 2,702 1,564 1,425
Acquisition-related amortization (113) (109) (57) (55)
Restructuring, related and implementation costs(1) (76) (41) (50) (13)
Changes in obligations related to divested businesses 11 5 11 8
Gains and losses from sale of businesses (57) 26 (55) 26
Acquisition- and divestment-related expenses and integration costs (37) (45) (18) (26)
Certain other non-operational items (113) (40) (50) (41)
Foreign exchange/commodity timing differences in income from operations (3) (2) 31 (26)
Income tax expense (654) (468) (315) (349)
Net income 2,015 1,988 1,102 928

Reconciliation of Operational EBITA margin by business
Corporate and
Robotics & Other and
Process Discrete Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated
Total revenues 3,809 1,951 1,717 833 (71) 8,239
differences in total revenues:
Unrealized gains and losses
on derivatives 4 (3) (21) – 3 (17)
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized 1 2 (1) – 2 4
Unrealized foreign exchange movements
on receivables (and related assets) 5 1 3 3 (3) 9
Operational revenues 3,819 1,951 1,698 836 (69) 8,235
Income (loss) from operations 837 369 274 46 (150) 1,376

Acquisition-related amortization 23 8 2 20 4 57
implementation costs(1) 8 14 – 20 8 50
divested businesses – – – – (11) (11)
Gains and losses from sale of businesses 24 – – – 31 55
Acquisition- and divestment-related expenses
and integration costs 19 2 1 5 (9) 18
Certain other non-operational items (1) – (5) (2) 58 50
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) (23) (6) (12) 2 6 (33)
transaction has not yet been realized (2) 1 – – 3 2
on receivables/payables
(and related assets/liabilities) 2 – 3 2 (7) –
Operational EBITA 887 388 263 93 (67) 1,564
Operational EBITA margin (%) 23.2% 19.9% 15.5% 11.1% n.a. 19.0%
In the three months ended June 30, 2024, Certain other non-operational items in the table above includes the following:

Robotics &
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated
Other income/expense relating to the
Power Grids joint venture – – – – (3) (3)
Regulatory, compliance and legal costs – – – – 1 1
Business transformation costs(1) (1) – – (1) 53 51
Certain other fair values changes,
including asset impairments (1) – (4) – 10 5
Other non-operational items 1 – (1) (1) (3) (4)
Total (1) – (5) (2) 58 50
(1) Amounts include ABB Way process transformation costs of $53 million for the three months ended June 30, 2024.

Corporate and
Total revenues 3,735 1,981 1,553 922 (28) 8,163
on derivatives 6 (9) 3 6 8 14
transaction has not yet been realized (4) – 5 – (2) (1)
on receivables (and related assets) – (2) (8) (7) (6) (23)
Operational revenues 3,737 1,970 1,553 921 (28) 8,153
Income (loss) from operations 713 380 270 119 (184) 1,298
implementation costs(1) 4 1 2 – 6 13
divested businesses 1 – – – (9) (8)
Gains and losses from sale of businesses – – (26) – – (26)
and integration costs 12 8 (2) 2 6 26
Certain other non-operational items 6 1 – 1 33 41
embedded derivatives) 31 5 (8) 4 – 32
transaction has not yet been realized (2) – 5 – (2) 1
(and related assets/liabilities) – (3) (4) (4) 4 (7)
Operational EBITA 787 401 239 141 (143) 1,425
In the three months ended June 30, 2023, Certain other non-operational items in the table above includes the following:

Robotics &
Business transformation costs(1) 5 – – 1 42 48
including asset impairments – – – – (7) (7)
Other non-operational items 1 1 – – 5 7
Total 6 1 – 1 33 41
(1) Amounts include ABB Way process transformation costs of $41 million for the three months ended June 30, 2023.

Corporate and
Total revenues 7,489 3,780 3,318 1,697 (175) 16,109
on derivatives 51 43 23 6 8 131
transaction has not yet been realized (2) 2 1 – 2 3
on receivables (and related assets) (26) (16) (18) (8) (5) (73)
Operational revenues 7,512 3,809 3,324 1,695 (170) 16,170
Income (loss) from operations 1,606 670 508 137 (328) 2,593
implementation costs(1) 18 22 7 20 9 76
divested businesses – – – – (11) (11)
Gains and losses from sale of businesses 24 – – – 33 57
and integration costs 29 2 1 7 (2) 37
Certain other non-operational items 2 3 (5) (1) 114 113
embedded derivatives) (1) 27 10 6 2 44
transaction has not yet been realized (3) 1 1 – 2 1
(and related assets/liabilities) (8) (11) (9) (4) (10) (42)
Operational EBITA 1,713 731 516 206 (185) 2,981
In the six months ended June 30, 2024, Certain other non-operational items in the table above includes the following:

Robotics &
Regulatory, compliance and legal costs – – – – 4 4
Business transformation costs(1) 1 1 – – 99 101
including asset impairments – 2 (4) – 21 19
Other non-operational items 1 – (1) (1) 1 –
Total 2 3 (5) (1) 114 113
(1) Amounts include ABB Way process transformation costs of $99 million for the six months ended June 30, 2024.

Corporate and
Total revenues 7,325 3,921 2,989 1,859 (72) 16,022
on derivatives (8) (5) 16 8 4 15
transaction has not yet been realized (5) – 6 – – 1
on receivables (and related assets) (7) (6) (12) (8) (9) (42)
Operational revenues 7,305 3,910 2,999 1,859 (77) 15,996
Income (loss) from operations 1,368 733 470 234 (309) 2,496
implementation costs(1) 12 2 4 – 23 41
divested businesses 1 – – – (6) (5)
Gains and losses from sale of businesses – – (26) – – (26)
and integration costs 19 12 1 4 9 45
Certain other non-operational items 9 3 – 3 25 40
embedded derivatives) 16 5 (10) 6 (7) 10
transaction has not yet been realized (2) – 7 – 1 6
(and related assets/liabilities) (3) (5) (5) (5) 4 (14)
Operational EBITA 1,464 767 444 281 (254) 2,702
In the six months ended June 30, 2023, certain other non-operational items in the table above includes the following:

Robotics &
Other income/expense related to the
Business transformation costs 9 – – 2 71 82
including asset impairments 1 1 – 1 (9) (6)
Other non-operational items (1) 2 – – (17) (16)
Total 9 3 – 3 25 40
(1) Amounts include ABB Way process transformation costs of $71 million for the six months ended June 30, 2023.

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
Short-term debt and current maturities of long-term debt 410 2,607
Long-term debt 6,338 5,221
Total debt 6,748 7,828
Cash and equivalents 2,961 3,891
Restricted cash 18 18
Marketable securities and short-term investments 1,289 1,928
Cash and marketable securities 4,268 5,837
Net debt 2,480 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) June 30, 2024 December 31, 2023
Total stockholders' equity 14,066 14,057
Net debt (as defined above) 2,480 1,991
Net debt / Equity ratio 0.18 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) June 30, 2024 June 30, 2023
Income from operations for the three months ended:
September 30, 2023 / 2022 1,259 708
December 31, 2023 / 2022 1,116 1,185
March 31, 2024 / 2023 1,217 1,198
June 30, 2024 / 2023 1,376 1,298
Depreciation and Amortization for the three months ended:
September 30, 2023 / 2022 194 198
December 31, 2023 / 2022 199 199
March 31, 2024 / 2023 201 191
June 30, 2024 / 2023 202 196
EBITDA 5,764 5,173
Net debt (as defined above) 2,480 4,165
Net debt / EBITDA 0.4 0.8

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) June 30, 2024 June 30, 2023
Net working capital:
Receivables, net 7,492 7,481
Contract assets 1,118 1,010
Inventories, net 6,257 6,448
Prepaid expenses 294 290
Accounts payable, trade (5,118) (4,881)
Contract liabilities (2,973) (2,394)
Other current liabilities(1) (3,463) (3,506)
Net working capital in assets and liabilities held for sale – 137
Net working capital 3,607 4,585
Total revenues for the three months ended:
September 30, 2023 / 2022 7,968 7,406
December 31, 2023 / 2022 8,245 7,824
March 31, 2024 / 2023 7,870 7,859
June 30, 2024 / 2023 8,239 8,163
Adjustment to annualize/eliminate revenues of certain acquisitions/divestments – (162)
Adjusted revenues for the trailing twelve months 32,322 31,090
Net working capital as a percentage of revenues (%) 11.2% 14.7%
(1) Amounts exclude $660 million and $771 million at June 30, 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.

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
($ in millions, unless otherwise indicated) 2024 2023 2024 2023
Net cash provided by operating activities 1,793 1,042 1,067 760
Adjusted for the effects of operations:
Purchases of property, plant and equipment and intangible assets (366) (331) (185) (180)
Proceeds from sale of property, plant and equipment 42 57 36 26
Free cash flow 1,469 768 918 606
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) June 30, 2024 December 31, 2023
Net cash provided by operating activities 5,041 4,290
Adjusted for the effects of operations:
Purchases of property, plant and equipment and intangible assets (805) (770)
Proceeds from sale of property, plant and equipment 132 147
Free cash flow 4,368 3,667
Adjusted net income attributable to ABB(1) 3,745 3,686
Free cash flow conversion to net income 117% 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 June 30, 2024

Purchases of Proceeds
property, plant and from sale of
Net cash provided by equipment and property, plant and Adjusted net income
($ in millions) operating activities intangible assets equipment attributable to ABB(1)
Q3 2023 1,351 (175) 10 829
Q4 2023 1,897 (264) 80 915
Q1 2024 726 (181) 6 905
Q2 2024 1,067 (185) 36 1,096
Total for the trailing twelve
months to June 30, 2024 5,041 (805) 132 3,745
(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.

Net finance income (expense)
Definition
Net finance income (expense) is calculated as Interest and dividend income less Interest and other finance expense.
Reconciliation
($ in millions) 2024 2023 2024 2023
Net finance income (expense) 53 (46) 33 (25)
Book-to-bill ratio
Definition
Book-to-bill ratio is calculated as Orders received divided by Total revenues.
Reconciliation
Six months ended June 30,
2024 2023
($ in millions, except Book-to-bill presented as a ratio) Orders Revenues Book-to-bill Orders Revenues Book-to-bill
Electrification 8,465 7,489 1.13 8,101 7,325 1.11
Motion 4,317 3,780 1.14 4,399 3,921 1.12
Process Automation 3,499 3,318 1.05 3,782 2,989 1.27
Robotics & Discrete Automation 1,389 1,697 0.82 1,851 1,859 1.00
Corporate and Other (incl. intersegment eliminations) (261) (175) n.a. (16) (72) n.a.
ABB Group 17,409 16,109 1.08 18,117 16,022 1.13
Three months ended June 30,

2024 2023
($ in millions, except Book-to-bill presented as a ratio) Orders Revenues Book-to-bill Orders Revenues Book-to-bill
Electrification 4,073 3,809 1.07 3,960 3,735 1.06
Motion 2,014 1,951 1.03 2,137 1,981 1.08
Process Automation 1,802 1,717 1.05 1,669 1,553 1.07
Robotics & Discrete Automation 688 833 0.83 850 922 0.92
Corporate and Other (incl. intersegment eliminations) (142) (71) n.a. 51 (28) n.a.
ABB Group 8,435 8,239 1.02 8,667 8,163 1.06

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

ABB Q2 202 Financial Information

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July 18, 2024

1 Q2 2024 FINANCIAL INFORMATION

08 ─ 31 Consolidated Financial Information (unaudited)

32 ─ 44 Supplemental Reconciliations and Definitions

2 Q2 2024 FINANCIAL INFORMATION

3 Q2 2024 FINANCIAL INFORMATION

4 Q2 2024 FINANCIAL INFORMATION

5 Q2 2024 FINANCIAL INFORMATION

Process Robotics & Discrete

(1) Includes impairment of certain assets.

6 Q2 2024 FINANCIAL INFORMATION

Process Robotics & Discrete

Orders received and revenues by region

($ in millions, unless otherwise indicated) Orders received CHANGE Revenues CHANGE

7 Q2 2024 FINANCIAL INFORMATION

ABB Ltd Consolidated Income Statements (unaudited)

Six months ended Three months ended

Amounts attributable to ABB shareholders:

Basic earnings per share attributable to ABB shareholders:

Diluted earnings per share attributable to ABB shareholders:

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

See Notes to the Consolidated Financial Information

8 Q2 2024 FINANCIAL INFORMATION

Six months ended Three months ended

See Notes to the Consolidated Financial Information

9 Q2 2024 FINANCIAL INFORMATION

($ in millions) Jun. 30, 2024 Dec. 31, 2023

Property, plant and equipment, net 4,095 4,142

Accounts payable, trade 5,118 4,847

Long-term debt 6,338 5,221

Commitments and contingencies

Redeemable noncontrolling interest 80 89

See Notes to the Consolidated Financial Information

10 Q2 2024 FINANCIAL INFORMATION

Six months ended Three months ended

11 Q2 2024 FINANCIAL INFORMATION

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

See Notes to the Consolidated Financial Information

12 Q2 2024 FINANCIAL INFORMATION

Adjustment related to prior periods

Change in accounting policy

13 Q2 2024 FINANCIAL INFORMATION

Applicable for future periods

14 Q2 2024 FINANCIAL INFORMATION

June 30, 2024

December 31, 2023

15 Q2 2024 FINANCIAL INFORMATION

Interest rate risk

Volume of derivative activity

Foreign exchange and interest rate derivatives

Type of derivative Total notional amounts at

Derivative commodity contracts

Type of derivative Unit Total notional amounts at

Cash flow hedges

Fair value hedges

16 Q2 2024 FINANCIAL INFORMATION

Derivatives not designated in hedge relationships

Type of derivative not Gains (losses) recognized in income

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

June 30, 2024