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ABB Ltd Consolidated Income Statements (unaudited)

Three months ended

($ in millions, except per share data in $) Mar. 31, 2024 Mar. 31, 2023
Sales of products 6,503 6,644
Sales of services and other 1,367 1,215
Total revenues 7,870 7,859
Cost of sales of products (4,145) (4,418)
Cost of services and other (790) (725)
Total cost of sales (4,935) (5,143)
Gross profit 2,935 2,716
Selling, general and administrative expenses (1,381) (1,339)
Non-order related research and development expenses (363) (304)
Other income (expense), net 26 125
Income from operations 1,217 1,198
Interest and dividend income 57 40
Interest and other finance expense (37) (61)
Non-operational pension (cost) credit 16 7
Income from continuing operations before taxes 1,253 1,184
Income tax expense (339) (119)
Income from continuing operations, net of tax 914 1,065
Loss from discontinued operations, net of tax (1) (5)
Net income 913 1,060
Net income attributable to noncontrolling interests and redeemable noncontrolling interests (8) (24)
Net income attributable to ABB 905 1,036

Amounts attributable to ABB shareholders:

Income from continuing operations, net of tax 906 1,041
Loss from discontinued operations, net of tax (1) (5)
Net income 905 1,036

Basic earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax 0.49 0.56
Loss from discontinued operations, net of tax – –
Net income 0.49 0.56

Diluted earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax 0.49 0.56
Loss from discontinued operations, net of tax – –
Net income 0.49 0.55

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

Basic earnings per share attributable to ABB shareholders 1,839 1,861
Diluted earnings per share attributable to ABB shareholders 1,852 1,874
Due to rounding, numbers presented may not add to the totals provided.

See Notes to the Interim Consolidated Financial Information

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ABB Ltd Condensed Consolidated Statements of Comprehensive
Income (unaudited)

Three months ended

($ in millions) Mar. 31, 2024 Mar. 31, 2023
Total comprehensive income, net of tax 1,063 1,153
Total comprehensive (income) loss attributable to noncontrolling interests and
redeemable noncontrolling interests, net of tax 8 (30)
Total comprehensive income attributable to ABB shareholders, net of tax 1,071 1,123
Due to rounding, numbers presented may not add to the totals provided.

See Notes to the Interim Consolidated Financial Information

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ABB Ltd Consolidated Balance Sheets (unaudited)

($ in millions) Mar. 31, 2024 Dec. 31, 2023

Cash and equivalents 4,102 3,891
Restricted cash 18 18
Marketable securities and short-term investments 2,097 1,928
Receivables, net 7,385 7,446
Contract assets 1,135 1,090
Inventories, net 6,170 6,149
Prepaid expenses 314 235
Other current assets 563 520
Total current assets 21,784 21,277

Property, plant and equipment, net 4,047 4,142

Operating lease right-of-use assets 863 893
Investments in equity-accounted companies 178 187
Prepaid pension and other employee benefits 755 780
Intangible assets, net 1,128 1,223
Goodwill 10,494 10,561
Deferred taxes 1,375 1,381
Other non-current assets 488 496
Total assets 41,112 40,940

Accounts payable, trade 5,018 4,847

Contract liabilities 2,866 2,844
Short-term debt and current maturities of long-term debt 1,957 2,607
Current operating leases 242 249
Provisions for warranties 1,191 1,210
Dividends payable to shareholders 857 –
Other provisions 1,056 1,201
Other current liabilities 4,595 5,046
Total current liabilities 17,782 18,004

Long-term debt 6,346 5,221

Non-current operating leases 642 666
Pension and other employee benefits 668 686
Deferred taxes 664 669
Other non-current liabilities 1,539 1,548
Total liabilities 27,641 26,794

Commitments and contingencies

Redeemable noncontrolling interest 89 89

Stockholders’ equity:
Common stock, CHF 0.12 par value
(1,882 million shares issued at March 31, 2024, and December 31, 2023) 163 163
Additional paid-in capital 9 7
Retained earnings 18,622 19,724
Accumulated other comprehensive loss (4,904) (5,070)
Treasury stock, at cost
(31 million and 40 million shares at March 31, 2024, and December 31, 2023, respectively) (1,150) (1,414)
Total ABB stockholders’ equity 12,740 13,410
Noncontrolling interests 642 647
Total stockholders’ equity 13,382 14,057
Total liabilities and stockholders’ equity 41,112 40,940
Due to rounding, numbers presented may not add to the totals provided.

See Notes to the Consolidated Financial Information

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ABB Ltd Consolidated Statements of Cash Flows (unaudited)
Three months ended
($ in millions) Mar. 31, 2024 Mar. 31, 2023
Operating activities:
Net income 913 1,060
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 201 191
Changes in fair values of investments (13) (13)
Pension and other employee benefits (13) 1
Deferred taxes (6) 25
Loss from equity-accounted companies 5 7
Net gain from derivatives and foreign exchange (8) (37)
Net gain from sale of property, plant and equipment (5) (26)
Net loss (gain) from sale of businesses 2 –
Other 27 27
Changes in operating assets and liabilities:
Trade receivables, net (33) (362)
Contract assets and liabilities 38 10
Inventories, net (205) (264)
Accounts payable, trade 82 22
Accrued liabilities (473) (324)
Provisions, net 37 42
Income taxes payable and receivable 122 (115)
Other assets and liabilities, net 55 38
Net cash provided by operating activities 726 282
Investing activities:
Purchases of investments (877) (660)
Purchases of property, plant and equipment and intangible assets (181) (151)
Acquisition of businesses (net of cash acquired) and increases in cost- and equity-accounted companies (30) (19)
Proceeds from sales of investments 727 20
Proceeds from sales of property, plant and equipment 6 31
Proceeds from sales of businesses (net of transaction costs and cash disposed) and cost- and
equity-accounted companies (8) (5)
Net cash from settlement of foreign currency derivatives 31 36
Changes in loans receivable, net 1 8
Other investing activities – (1)
Net cash used in investing activities (331) (741)
Financing activities:
Net changes in debt with original maturities of 90 days or less (20) (714)
Increase in debt 1,358 1,633
Repayment of debt (565) (36)
Delivery of shares 390 95
Purchase of treasury stock (291) (274)
Dividends paid (919) (1,294)
Dividends paid to noncontrolling shareholders – (3)
Proceeds from issuance of subsidiary shares – 341
Other financing activities (3) 12
Net cash used in financing activities (50) (240)

Effects of exchange rate changes on cash and equivalents and restricted cash (134) (5)
Adjustment for the net change in cash and equivalents and restricted cash in Assets held for sale – (13)
Net change in cash and equivalents and restricted cash 211 (717)

Cash and equivalents and restricted cash, beginning of period 3,909 4,174
Cash and equivalents and restricted cash, end of period 4,120 3,457

Supplementary disclosure of cash flow information:

Interest paid 94 48
Income taxes paid 228 207
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
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ABB Ltd Consolidated Statements of Changes in Stockholders’ Equity (unaudited)

Accumulated
other comprehensive Total ABB Non- Total stockholders’
($ in millions) Common stock Additional paid-in capital Retained earnings loss Treasury stock stockholders’ equity controlling interests equity

Balance at January 1, 2023 171 141 20,082 (4,556) (3,061) 12,777 410 13,187
Net income(1) 1,036 1,036 25 1,061
Foreign currency translation
adjustments, net of tax of $(1) 79 79 6 85
Effect of change in fair value of
available-for-sale securities,
net of tax of $1 5 5 5
Unrecognized income (expense)
related to pensions and other
postretirement plans,
net of tax of $1 – – –
Change in derivative instruments
and hedges, net of tax of $0 3 3 3
Issuance of subsidiary shares 170 170 168 338
Other changes in
noncontrolling interests – (1) (1)
Dividends to
noncontrolling shareholders – (5) (5)
Dividends to shareholders (1,706) (1,706) (1,706)
Share-based payment arrangements 22 22 1 23
Purchase of treasury stock (253) (253) (253)
Delivery of shares (53) 148 95 95
Other (2) (2) (2)
Balance at March 31, 2023 171 279 19,411 (4,469) (3,165) 12,227 604 12,831

Balance at January 1, 2024 163 7 19,724 (5,070) (1,414) 13,410 647 14,057
Net income(1) 905 905 9 914
Foreign currency translation
adjustments, net of tax of $3 131 131 (16) 115
Effect of change in fair value of
available-for-sale securities,
net of tax of $0 (1) (1) (1)
Unrecognized income (expense)
related to pensions and other
postretirement plans,
net of tax of $16 33 33 33
Change in derivative instruments
and hedges, net of tax of $0 3 3 3
Changes in noncontrolling interests (1) (30) (31) 1 (30)
Dividends to
noncontrolling shareholders – (1) (1)
Dividends to shareholders (1,804) (1,804) (1,804)
Share-based payment arrangements 20 20 1 21
Purchase of treasury stock (314) (314) (314)
Delivery of shares (14) (174) 578 390 390
Other (3) (3) 2 (1)
Balance at March 31, 2024 163 9 18,622 (4,904) (1,150) 12,740 642 13,382
(1) Amounts attributable to noncontrolling interests for the three months ended March 31, 2024 and 2023, exclude net losses of $1 million and $1 million, respectively, related to redeemable noncontrolling interests, which are reported in the mezzanine equity section
on the Consolidated Balance Sheets.

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

See Notes to the Consolidated Financial Information