UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE

ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2024

Commission File Number 001-16429

ABB Ltd

(Translation of registrant’s name into English)

Affolternstrasse 44, CH-8050, Zurich, Switzerland

(Address of principal executive office)

Indicate by check mark whether

the registrant files or will file

annual reports under cover of Form 20-F

or Form 40-F.

Form 20-F

☒

Form 40-F

⬜

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is submitting the Form 6-K in paper

as permitted by Regulation S-T Rule

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⬜

Note:

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a Form 6-K if submitted solely to provide

an attached

annual report to security holders.

Indication by check mark if the registrant

is submitting the Form 6-K in paper

as permitted by Regulation S-T Rule

101(b)(7):

⬜

Note:

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permits the submission in paper of

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registrant is incorporated, domiciled

or legally organized (the registrant’s “home country”), or

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exchange on which the registrant’s securities are traded,

as long as the report or other document

is not a press release, is not required

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Indicate by check mark whether

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If “Yes” is marked, indicate below the file number assigned to the

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82-

This Form 6-K consists of the following:

Press release issued by ABB Ltd dated

February 23, 2024, titled “ABB

appoints Morten Wierod to succeed Björn

Rosengren as CEO”.

Press release issued by ABB Ltd dated February

23, 2024, titled “ABB publishes

2023 Integrated Report”.

Q4 2023 Financial Information.

Press release issued by ABB Ltd dated February

23, 2024, titled “Notice of

ABB’s Annual General Meeting on

~~Directors~~March 21, 2024”.

The Press release contained in Item

3 above of this Form 6-K makes reference

to the inclusion of the AGM invitation,

however the

invitation is not included in this Form 6-K

but can be found at www.abb.com/agm

Executive Committee.

Securities and Exchange Commission.

—

ZURICH, SWITZERLAND,

FEBRUARY 23,

2024

ABB appoints Morten Wierod

succeed Björn Rosengren

as CEO

Q4Ad ~~2023~~hoc ~~results~~Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange

~~Solid~~The ~~finish~~ABB toBoard aof ~~record~~Directors ~~year~~has appointed Morten Wierod as Chief Executive Officer. He will take office

on August 1, 2024, and succeed Björn Rosengren, who will step down from his position

as Chief Executive

Q4Officer ~~2023~~effective July 31, 2024, and retire as of December 31, 2024.

●From August 1, 2024, until the end of the year, Björn Rosengren will advise and assist Morten Wierod and

1the Executive Committee to ensure a seamless transition.

Morten Wierod (52), a Norwegian citizen, has been appointed by the Board following a thorough

selection

process. He joined ABB in 1998 and has been serving as a member of

ABB's Executive Committee since

2019, currently as President of the Electrification Business Area and previously

as President of the Motion

●Business Area. Morten Wierod holds a Master's Degree in Electrical Engineering from the Norwegian

●University of Science and Technology.

ABB Chairman Peter Voser

said: “I am pleased that after a competitive selection process we are

able to

name an outstanding internal candidate to lead ABB. Morten is a strong

successor to Björn with his deep

understanding of ABB and our decentralized operating model in addition

to his extensive expertise across

our key customer segments and strong performance track record. Under

Morten’s leadership, ABB will

continue to focus on our key priorities while our new financial

and sustainability targets remain firmly in

●place.

“At the same time, the Board is extremely grateful to Björn for his outstanding

leadership over the past four

1years. He was instrumental in aligning ABB’s business portfolio to our purpose and significantly improving

1our financial and sustainability performance thanks to our ABB Way operating model. Björn will hand over

●an efficient, more profitable and faster growing ABB.”

Morten Wierod commented: “I am grateful that the Board has given me the opportunity to

lead this great

company with its people and technologies that are at the heart

of building a low-carbon ociety. It has been a

privilege to work alongside Björn over the past years. After

we have set more ambitious financial and

sustainability standards not long ago, I will continue building on our decentralized

operating model to

2capture the full potential of our market leading positions in electrification and automation.”

Björn Rosengren commented: “It has been an honor to lead ABB over the past

years and I am convinced that

●the company will be in good hands with Morten. Together with our more than 105,000 people, we have

transformed ABB into an agile and purpose-driven leader in electrification

and automation that has an

important role in helping to accelerate the energy transition. I am convinced that

ABB is in a unique position

FYto ~~2023~~seize the opportunities ahead.”

●A search process for Morten Wierod’s existing position as Business Area President Electrification will be

1launched shortly.

●1/2

●A full biography of Morten Wierod is available on ABB’s website. High-resolution images can be accessed

here and here.

●ABB

is a technology leader in electrification and automation, enabling a

more sustainable and

1resource-efficient future. The company’s solutions connect engineering know-how and software to optimize

how things are manufactured, moved, powered and operated. Building on over

140 years of excellence,

ABB’s more than 105,000 employees are committed to driving innovations that accelerate

industrial

1transformation. www.abb.com

●

—

For more information please

contact:

Q4 2023

Full year

Press Release

—

Björn Rosengren,

KEY FIGURES

CHANGE

($ millions, unless otherwise indicated)

Q4 2023

Q4 2022

US$

Comparable

FY 2023

FY 2022

US$

Comparable

Orders

7,649

7,620

33,818

33,988

-1%

Revenues

8,245

7,824

32,235

29,446

14%

Gross Profit

2,848

2,658

11,214

9,710

15%

as % of revenues

34.5%

34.0%

+0.5 pts

34.8%

33.0%

+1.8 pts

Income from operations

1,116

1,185

-6%

4,871

3,337

46%

Operational EBITA

1,333

1,146

16%

13%

5,427

4,510

20%

as % of operational revenues

16.3%

14.8%

+1.5 pts

16.9%

15.3%

+1.6 pts

Income from continuing operations, net of tax

946

1,168

-19%

3,848

2,637

46%

Net income attributable to ABB

921

1,132

-19%

3,745

2,475

51%

0.50

0.61

-18%

2.02

1.30

55%

Cash flow from operating activities

1,897

687

176%

4,290

1,287

233%

EPS growth rates are computed using unrounded amounts.

efficiency.

during 2024.

Björn Rosengren

CEO

In the

first quarter of 2024

In full-year 2024

CEO summary

Outlook

Germany.

lead times.

Growth

Change year-on-year

Orders

Revenues

Comparable

Portfolio changes

-1%

-2%

Total

Revenues by region

($ in millions,

unless otherwise

indicated)

CHANGE

Q4 2023

Q4 2022

US$

Comparable

Europe

2,951

2,765

The Americas

2,847

2,555

11%

14%

Asia, Middle East

and Africa

2,447

2,504

-2%

ABB Group

8,245

7,824

Orders by region

($ in millions,

unless otherwise

indicated)

CHANGE

Q4 2023

Q4 2022

US$

Comparable

Europe

2,554

2,604

-2%

-5%

The Americas

2,985

2,898

Asia, Middle East

and Africa

2,110

2,118

ABB Group

7,649

7,620

Gross profit

Income from operations

Net finance expenses

Income tax

Operational EBITA

($ millions)

Q4 2023

Q4 2022

Corporate and Other

E-mobility

(33)

(3)

Corporate costs, intersegment

eliminations and other

(34)

(72)

Total

(67)

(75)

Majority of which relates to underlying corporate

Earnings

Net working capital

11.1%.

Capital expenditures

Net debt

quarter.

Cash flows

Share buyback program

unless otherwise indicated)

Dec. 31

2023

Dec. 31

2022

Short term debt and current

maturities of long-term debt

Long-term debt

Total debt

Cash & equivalents

Restricted cash - current

short-term investments

Cash and marketable securities

Net debt (cash)*

Net debt (cash)* to EBITDA ratio

Net debt (cash)* to Equity ratio

$(191) million and $(276) million, respectively.

Balance sheet & Cash flow

Orders and revenues

●

customer segments.

●

Profit

●

CHANGE

($ millions, unless otherwise indicated)

Q4 2023

Q4 2022

US$

Comparable

FY 2023

FY 2022

US$

Comparable

Orders

3,395

3,385

15,189

15,182

Order backlog

6,808

6,404

14%

6,808

6,404

14%

Revenues

3,698

3,498

14,584

13,619

10%

Operational EBITA

725

575

26%

2,937

2,343

25%

as % of operational revenues

19.7%

16.6%

+3.1 pts

20.1%

17.2%

+2.9 pts

Cash flow from operating activities

1,068

857

25%

3,211

2,115

52%

No. of employees (FTE equiv.)

50,300

50,600

-1%

Growth

Change year-on-year

Orders

Revenues

Comparable

Portfolio changes

-3%

Total

—

Electrification

Orders and revenues

●

80 basis points to 16.6%.

●

Growth

Change year-on-year

Orders

Revenues

Comparable

13%

Portfolio changes

Total

17%

—

Motion

CHANGE

($ millions, unless otherwise indicated)

Q4 2023

Q4 2022

US$

Comparable

FY 2023

FY 2022

US$

Comparable

Orders

1,937

1,649

17%

13%

8,222

7,896

Order backlog

5,343

4,726

13%

5,343

4,726

13%

Revenues

1,946

1,845

7,814

6,745

16%

15%

Operational EBITA

318

1,475

1,163

27%

as % of operational revenues

16.6%

17.4%

-0.8 pts

18.9%

17.3%

+1.6 pts

Cash flow from operating activities

597

346

73%

1,532

853

80%

No. of employees (FTE equiv.)

22,300

21,100

Orders and revenues

●

in pulp & paper.

●

at 1.08.

Profit

●

from price increases.

●

CHANGE

($ millions, unless otherwise indicated)

Q4 2023

Q4 2022

US$

Comparable

FY 2023

FY 2022

US$

Comparable

Orders

1,870

1,746

7,535

6,825

10%

24%

Order backlog

7,519

6,229

21%

19%

7,519

6,229

21%

19%

Revenues

1,727

1,551

11%

10%

6,270

6,044

16%

Operational EBITA

239

203

18%

909

848

as % of operational revenues

14.0%

13.2%

+0.8 pts

14.5%

14.0%

+0.5 pts

Cash flow from operating activities

444

205

117%

1,002

675

48%

No. of employees (FTE equiv.)

21,100

20,100

Growth

Change year-on-year

Orders

Revenues

Comparable

10%

Portfolio changes

Total

11%

—

Process Automation

Orders and revenues

intake.

●

Machine Automation

●

Robotics

●

34%).

●

Profit

points from last year.

●

CHANGE

($ millions, unless otherwise indicated)

Q4 2023

Q4 2022

US$

Comparable

FY 2023

FY 2022

US$

Comparable

Orders

550

798

-31%

-33%

3,066

4,116

-26%

-25%

Order backlog

2,141

2,679

-20%

2,141

2,679

-20%

Revenues

852

891

-4%

-7%

3,640

3,181

14%

Operational EBITA

118

125

-6%

536

340

58%

as % of operational revenues

13.8%

14.0%

-0.2 pts

14.7%

10.7%

+4 pts

Cash flow from operating activities

170

105

62%

436

214

104%

No. of employees (FTE equiv.)

11,300

10,700

Growth

Change year-on-year

Orders

Revenues

Comparable

-33%

-7%

Portfolio changes

Total

-31%

-4%

—

Robotics & Discrete Automation

Events from the Quarter

●

again.

●

technology.

●

Q4 outcome

●

₂

e emissions in own

●

downward trend

●

towards our target.

—

Sustainability

Q4 2023

Q4 2022

CHANGE

12M ROLLING

₂

Ktons scope 1 and 2

-40%

160

frequency / 200,000 working hours

0.09

0.10

-10%

0.13

Share of females in senior management

positions, %

21.0

17.8

+3.2 pts

20.2

₂

₆

During Q4 2023

●

economic cycle

2050

●

pursue other opportunities.

After Q4 2023

●

2024.

prior year.

Significant events

Full year 2023

ABB Group

Q1 2022

Q2 2022

Q3 2022

Q4 2022

FY 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

FY 2023

EBITDA, $ in million

1,067

794

906

1,384

4,151

1,389

1,494

1,453

1,315

5,651

Return on Capital Employed, %

n.a.

16.50

n.a.

21.10

Net debt/Equity

0.20

0.34

0.21

0.30

0.31

0.21

0.14

Net debt/ EBITDA 12M rolling

0.4

0.7

0.9

0.8

0.5

0.4

Net working capital, % of 12M rolling

revenues

12.1%

12.8%

11.7%

11.1%

13.9%

14.7%

12.8%

10.2%

Earnings per share, basic, $

0.31

0.20

0.19

0.61

1.30

0.56

0.49

0.48

0.50

2.02

Earnings per share, diluted, $

0.31

0.20

0.19

0.60

1.30

0.55

0.48

0.47

0.50

2.01

Dividend per share, CHF

n.a.

0.84

n.a.

Share price at the end of period, CHF

29.12

24.57

24.90

28.06

31.37

35.18

32.80

37.30

Share price at the end of period, $

30.76

25.43

24.41

30.46

34.30

39.32

35.86

44.32

Number of employees (FTE equivalents)

104,720

106,380

106,830

105,130

106,170

108,320

107,430

107,870

No. of shares outstanding at end of period

(in millions)

1,929

1,892

1,875

1,865

1,862

1,860

1,849

1,842

Additional figures

Additional 2024 guidance

($ in millions, unless otherwise stated)

FY 2024

Net finance expenses

~(120)

Effective tax rate

~25%

Capital Expenditures

~(900)

($ in millions, unless otherwise stated)

FY 2024

Q1 2024

Corporate and Other Operational EBITA

~(300)

~(75)

Non-operating items

Acquisition-related amortization

~(210)

~(55)

Restructuring and related

~(200)

~(50)

ABB Way transformation

~(180)

~(55)

Divestments

Company/unit

Closing date

Revenues, $ million

No. of employees

2023

Electrification

Power Conversion division

3-Jul

~440

1,500

Electrification

Industrial Plugs & Sockets business

3-Jul

~12

Process Automation

UK technical engineering consultancy

business

1-May

~20

160

Acquisitions

Company/unit

Closing date

Revenues, $ million

No. of employees

2023

Robotics & Discrete Automation

Sevensense

21-Dec

E-mobility

Imagen Energy Inc

13-Nov

Motion

Spring Point Solutions Llc

1-Nov

E-mobility

Vourity AB

25-Oct

Electrification

Eve Systems

1-Jun

~20

Motion

Siemens low voltage NEMA Motors

2-May

~60

600

Excludes Operational EBITA from E-mobility business.

Acquisitions and divestments, last twelve months

For additional information please contact:

Media Relations

Phone: +41 43 317 71 11

Email: media.relations@ch.abb.com

Investor Relations

Phone: +41 43 317 71 11

Email: investor.relations@ch.abb.com

ABB Ltd

Affolternstrasse 44

8050 Zurich

Switzerland

ABB APPOINTS MORTEN WIEROD

TO SUCCEED BJÖRN ROSENGREN

AS CEO

~~Financial~~2/2 ~~calendar~~

2024

March 21

Annual General Meeting, Zurich

April 18

Q1 2024 results

ABB’s website.

Important notice about forward-looking information

Q4 results presentation on February 1, 2024

ABB

February 1, 2024

Q4 2023

Financial information

—

~~Contents~~ZURICH, SWITZERLAND, FEBRUARY 23, 2024

03ABB publishes 2023 Integrated Report

08Ad ─hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange

34 ─

—

Key Figures

CHANGE

($ in millions, unless otherwise indicated)

Q4 2023

Q4 2022

US$

Comparable

(1)

Orders

7,649

7,620

Order backlog (end December)

21,567

19,867

Revenues

8,245

7,824

Gross Profit

2,848

2,658

as % of revenues

34.5%

34.0%

+0.5 pts

Income from operations

1,116

1,185

-6%

Operational EBITA

(1)

1,333

1,146

16%

13%

(2)

as % of operational revenues

(1)

16.3%

14.8%

+1.5 pts

Income from continuing operations, net of tax

946

1,168

-19%

Net income attributable to ABB

921

1,132

-19%

Basic earnings per share ($)

0.50

0.61

-18%

(3)

Cash flow from operating activities

(4)

1,897

687

176%

Cash flow from operating activities in continuing operations

1,897

720

163%

CHANGE

($ in millions, unless otherwise indicated)

FY 2023

FY 2022

US$

Comparable

(1)

Orders

33,818

33,988

-1%

Revenues

32,235

29,446

14%

Gross Profit

11,214

9,710

15%

as % of revenues

34.8%

33.0%

+1.8 pts

Income from operations

4,871

3,337

46%

Operational EBITA

(1)

5,427

4,510

20%

(2)

as % of operational revenues

(1)

16.9%

15.3%

+1.6 pts

Income from continuing operations, net of tax

3,848

2,637

46%

Net income attributable to ABB

3,745

2,475

51%

Basic earnings per share ($)

2.02

1.30

55%

(3)

Cash flow from operating activities

(4)

4,290

1,287

233%

Cash flow from operating activities in continuing operations

4,301

1,334

222%

Supplemental Reconciliations and Definitions

” on page 34.

CHANGE

($ in millions, unless otherwise indicated)

Q4 2023

Q4 2022

US$

Local

Comparable

ABB Group

7,649

7,620

-1%

Electrification

3,395

3,385

-1%

Motion

1,937

1,649

17%

15%

13%

Process Automation

1,870

1,746

Robotics & Discrete Automation

550

798

-31%

-33%

125

257

Intersegment eliminations

(228)

(215)

Order backlog (end December)

ABB Group

21,567

19,867

Electrification

6,808

6,404

14%

Motion

5,343

4,726

13%

Process Automation

7,519

6,229

21%

19%

Robotics & Discrete Automation

2,141

2,679

-20%

(incl. intersegment eliminations)

(244)

(171)

ABB Group

8,245

7,824

Electrification

3,698

3,498

Motion

1,946

1,845

Process Automation

1,727

1,551

11%

10%

Robotics & Discrete Automation

852

891

-4%

-7%

229

258

Intersegment eliminations

(207)

(219)

Income from operations

ABB Group

1,116

1,185

Electrification

670

569

Motion

292

316

Process Automation

259

183

Robotics & Discrete Automation

101

Corporate and Other

(incl. intersegment eliminations)

(204)

Income from operations %

ABB Group

13.5%

15.1%

Electrification

18.1%

16.3%

Motion

15.0%

17.1%

Process Automation

15.0%

11.8%

Robotics & Discrete Automation

11.6%

11.3%

Operational EBITA

ABB Group

1,333

1,146

16%

13%

Electrification

725

575

26%

24%

Motion

318

-1%

Process Automation

239

203

18%

19%

Robotics & Discrete Automation

118

125

-6%

Corporate and Other

(1)

(incl. intersegment eliminations)

(67)

(75)

ABB Group

16.3%

14.8%

Electrification

19.7%

16.6%

Motion

16.6%

17.4%

Process Automation

14.0%

13.2%

Robotics & Discrete Automation

13.8%

14.0%

Cash flow from operating activities

ABB Group

1,897

687

Electrification

1,068

857

Motion

597

346

Process Automation

444

205

Robotics & Discrete Automation

170

105

(incl. intersegment eliminations)

(382)

(793)

Discontinued operations

–

(33)

(1)

Corporate and Other at Q4 2023 and Q4 2022 includes losses of $33 million and $3 million, respectively, relating to E-mobility.

CHANGE

($ in millions, unless otherwise indicated)

FY 2023

FY 2022

US$

Local

Comparable

ABB Group

33,818

33,988

-1%

Electrification

15,189

15,182

Motion

8,222

7,896

Process Automation

7,535

6,825

10%

12%

24%

Robotics & Discrete Automation

3,066

4,116

-26%

-25%

Corporate and Other

720

787

Intersegment eliminations

(914)

(818)

Order backlog (end December)

ABB Group

21,567

19,867

Electrification

6,808

6,404

14%

Motion

5,343

4,726

13%

Process Automation

7,519

6,229

21%

19%

Robotics & Discrete Automation

2,141

2,679

-20%

Corporate and Other

(incl. intersegment eliminations)

(244)

(171)

ABB Group

32,235

29,446

11%

14%

Electrification

14,584

13,619

10%

Motion

7,814

6,745

16%

17%

15%

Process Automation

6,270

6,044

16%

Robotics & Discrete Automation

3,640

3,181

14%

Corporate and Other

769

653

Intersegment eliminations

(842)

(796)

Income from operations

ABB Group

4,871

3,337

Electrification

2,800

2,140

Motion

1,390

1,092

Process Automation

947

663

Robotics & Discrete Automation

446

247

Corporate and Other

(incl. intersegment eliminations)

(712)

(805)

Income from operations %

ABB Group

15.1%

11.3%

Electrification

19.2%

15.7%

Motion

17.8%

16.2%

Process Automation

15.1%

11.0%

Robotics & Discrete Automation

12.3%

7.8%

Operational EBITA

ABB Group

5,427

4,510

20%

Electrification

2,937

2,343

25%

27%

Motion

1,475

1,163

27%

Process Automation

909

848

10%

Robotics & Discrete Automation

536

340

58%

Corporate and Other

(1)

(incl. intersegment eliminations)

(430)

(184)

ABB Group

16.9%

15.3%

Electrification

20.1%

17.2%

Motion

18.9%

17.3%

Process Automation

14.5%

14.0%

Robotics & Discrete Automation

14.7%

10.7%

Cash flow from operating activities

ABB Group

4,290

1,287

Electrification

3,211

2,115

Motion

1,532

853

Process Automation

1,002

675

Robotics & Discrete Automation

436

214

Corporate and Other

(incl. intersegment eliminations)

(1,880)

(2,523)

Discontinued operations

(11)

(47)

(1)

Corporate and Other at FY 2023 and FY 2022 includes losses of $167 million and $15 million, respectively, relating to E-mobility.

Operational EBITA

Process

Robotics & Discrete

ABB

Electrification

Motion

Automation

($ in millions, unless otherwise indicated)

Q4 23

Q4 22

Q4 23

Q4 22

Q4 23

Q4 22

Q4 23

Q4 22

Q4 23

Q4 22

Revenues

8,245

7,824

3,698

3,498

1,946

1,845

1,727

1,551

852

891

Foreign exchange/commodity timing

differences in total revenues

(66)

(62)

(15)

(31)

(35)

(22)

(21)

(12)

Operational revenues

8,179

7,762

3,683

3,467

1,911

1,823

1,706

1,539

854

892

Income from operations

1,116

1,185

670

569

292

316

259

183

101

Acquisition-related amortization

implementation costs

(1)

127

(4)

divested businesses

(71)

–

Gains and losses from sale of businesses

(4)

–

expenses and integration costs

(4)

Certain other non-operational items

(28)

–

(14)

(8)

Foreign exchange/commodity timing

differences in income from operations

(59)

(69)

(25)

(45)

(28)

(17)

(13)

(16)

–

Operational EBITA

1,333

1,146

725

575

318

239

203

118

125

Operational EBITA margin (%)

16.3%

14.8%

19.7%

16.6%

17.4%

14.0%

13.2%

13.8%

14.0%

Process

Robotics & Discrete

ABB

Electrification

Motion

Automation

($ in millions, unless otherwise indicated)

FY 23

FY 22

FY 23

FY 22

FY 23

FY 22

FY 23

FY 22

FY 23

FY 22

Revenues

32,235

29,446

14,584

13,619

7,814

6,745

6,270

6,044

3,640

3,181

Foreign exchange/commodity timing

differences in total revenues

(41)

(3)

(20)

(23)

(14)

(18)

Operational revenues

32,194

29,474

14,581

13,599

7,791

6,731

6,252

6,077

3,644

3,187

Income from operations

4,871

3,337

2,800

2,140

1,390

1,092

947

663

446

247

Acquisition-related amortization

220

229

104

Restructuring, related and

implementation costs

(1)

219

347

divested businesses

(3)

(88)

–

Gains and losses from sale of businesses

(101)

(75)

(1)

–

(26)

–

expenses and integration costs

195

(7)

134

Certain other non-operational items

165

452

–

(10)

(8)

Foreign exchange/commodity timing

differences in income from operations

(18)

(6)

(19)

(13)

Operational EBITA

5,427

4,510

2,937

2,343

1,475

1,163

909

848

536

340

Operational EBITA margin (%)

16.9%

15.3%

20.1%

17.2%

18.9%

17.3%

14.5%

14.0%

14.7%

10.7%

Depreciation and Amortization

Process

Robotics & Discrete

ABB

Electrification

Motion

Automation

($ in millions)

Q4 23

Q4 22

Q4 23

Q4 22

Q4 23

Q4 22

Q4 23

Q4 22

Q4 23

Q4 22

Depreciation

133

130

Amortization

including total acquisition-related amortization of:

Process

ABB

Electrification

Motion

Automation

($ in millions)

FY 23

FY 22

FY 23

FY 22

FY 23

FY 22

FY 23

FY 22

FY 23

FY 22

Depreciation

517

531

256

253

108

105

Amortization

263

283

109

129

including total acquisition-related amortization of:

220

229

104

Orders received and revenues by region

($ in millions, unless otherwise indicated)

Orders received

CHANGE

Revenues

CHANGE

Com-

Q4 23

Q4 22

US$

Local

parable

Q4 23

Q4 22

US$

Local

parable

Europe

2,554

2,604

-2%

-7%

-5%

2,951

2,765

The Americas

2,985

2,898

2,847

2,555

11%

10%

14%

of which United States

2,277

2,167

2,105

1,898

11%

15%

Asia, Middle East and Africa

2,110

2,118

2,447

2,504

-2%

of which China

895

976

-8%

-7%

1,064

1,133

-6%

-5%

ABB Group

7,649

7,620

-1%

8,245

7,824

($ in millions, unless otherwise indicated)

Orders received

CHANGE

Revenues

CHANGE

Com-

FY 23

FY 22

US$

Local

parable

FY 23

FY 22

US$

Local

parable

Europe

11,458

11,778

-3%

-4%

-1%

11,568

10,285

12%

11%

14%

The Americas

12,437

11,825

11,090

9,573

16%

15%

18%

of which United States

9,204

8,920

8,248

7,023

17%

21%

Asia, Middle East and Africa

9,923

10,385

-4%

9,577

9,588

of which China

4,488

5,087

-12%

-7%

-5%

4,468

4,696

-5%

-1%

ABB Group

33,818

33,988

-1%

32,235

29,446

11%

14%

—

Consolidated Financial Information

ABB Ltd Consolidated Income Statements (unaudited)

Year ended

Three months ended

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

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2023

Dec. 31, 2022

Sales of products

27,010

24,471

6,800

6,525

Sales of services and other

5,225

4,975

1,445

1,299

Total revenues

32,235

29,446

8,245

7,824

Cost of sales of products

(17,938)

(16,804)

(4,545)

(4,365)

Cost of services and other

(3,083)

(2,932)

(852)

(801)

Total cost of sales

(21,021)

(19,736)

(5,397)

(5,166)

Gross profit

11,214

9,710

2,848

2,658

Selling, general and administrative expenses

(5,543)

(5,132)

(1,485)

(1,299)

Non-order related research and development expenses

(1,317)

(1,166)

(366)

(322)

Other income (expense), net

517

(75)

119

148

Income from operations

4,871

3,337

1,116

1,185

Interest and dividend income

165

Interest and other finance expense

(275)

(130)

(78)

(23)

Non-operational pension (cost) credit

115

(6)

Income from continuing operations before taxes

4,778

3,394

1,082

1,197

Income tax expense

(930)

(757)

(136)

(29)

3,848

2,637

946

1,168

Loss from discontinued operations, net of tax

(24)

(43)

(8)

(7)

Net income

3,824

2,594

938

1,161

Net income attributable to noncontrolling

interests and redeemable noncontrolling interests

(79)

(119)

(17)

(29)

Net income attributable to ABB

3,745

2,475

921

1,132

Amounts attributable to ABB shareholders:

Income from continuing operations, net of tax

3,769

2,517

929

1,138

Loss from discontinued operations, net of tax

(24)

(42)

(8)

(6)

Net income

3,745

2,475

921

1,132

Basic earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax

2.03

1.33

0.50

0.61

Loss from discontinued operations, net of tax

(0.01)

(0.02)

0.00

Net income

2.02

1.30

0.50

0.61

Diluted earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax

2.02

1.32

0.50

0.60

Loss from discontinued operations, net of tax

(0.01)

(0.02)

0.00

Net income

2.01

1.30

0.50

0.60

Basic earnings per share attributable to ABB shareholders

1,855

1,899

1,845

1,870

Diluted earnings per share attributable to ABB shareholders

1,867

1,910

1,856

1,881

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

See Notes to the Consolidated Financial Information

—

ABB Ltd Condensed Consolidated Statements of Comprehensive

Income (unaudited)

Year ended

Three months ended

($ in millions)

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2023

Dec. 31, 2022

3,315

2,189

586

1,414

redeemable noncontrolling interests, net of tax

(84)

(87)

(30)

(29)

3,231

2,102

556

1,385

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

See Notes to the Consolidated Financial Information

—

ABB Ltd Consolidated Balance Sheets (unaudited)

($ in millions)

Dec. 31, 2023

Dec. 31, 2022

Cash and equivalents

3,891

4,156

Restricted cash

Marketable securities and short-term investments

1,928

725

Receivables, net

7,446

6,858

Contract assets

1,090

954

Inventories, net

6,149

6,028

Prepaid expenses

235

230

Other current assets

520

601

Total current assets

21,277

19,570

Property, plant and equipment, net

4,142

3,911

Operating lease right-of-use assets

893

841

Investments in equity-accounted companies

187

130

Prepaid pension and other employee benefits

780

916

Intangible assets, net

1,223

1,406

Goodwill

10,561

10,511

Deferred taxes

1,381

1,396

Other non-current assets

496

467

Total assets

40,940

39,148

Accounts payable, trade

4,847

4,904

Contract liabilities

2,844

2,216

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

2,607

2,535

Current operating leases

249

220

Provisions for warranties

1,210

1,028

Other provisions

1,201

1,171

Other current liabilities

5,046

4,455

Total current liabilities

18,004

16,529

Long-term debt

5,221

5,143

Non-current operating leases

666

651

Pension and other employee benefits

686

719

Deferred taxes

669

729

Other non-current liabilities

1,548

2,105

Total liabilities

26,794

25,876

Commitments and contingencies

Redeemable noncontrolling interest

Stockholders’ equity:

Common stock, CHF 0.12 par value

163

171

Additional paid-in capital

141

Retained earnings

19,724

20,082

Accumulated other comprehensive loss

(5,070)

(4,556)

Treasury stock, at cost

(1,414)

(3,061)

Total ABB stockholders’ equity

13,410

12,777

Noncontrolling interests

647

410

Total stockholders’ equity

14,057

13,187

40,940

39,148

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

See Notes to the Consolidated Financial Information

—

ABB Ltd Consolidated Statements of Cash Flows (unaudited)

Year ended

Three months ended

($ in millions)

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2023

Dec. 31, 2022

Operating activities:

Net income

3,824

2,594

938

1,161

Loss from discontinued operations, net of tax

net cash provided by operating activities:

Depreciation and amortization

780

814

199

Changes in fair values of investments

(29)

(33)

(1)

Pension and other employee benefits

(48)

(125)

(18)

Deferred taxes

(25)

(344)

(161)

Loss from equity-accounted companies

102

Net gain from derivatives and foreign exchange

(55)

(23)

(11)

(67)

(116)

(84)

(77)

(20)

Net loss (gain) from sale of businesses

(101)

(4)

Other

158

Changes in operating assets and liabilities:

Trade receivables, net

(661)

(831)

158

(174)

Contract assets and liabilities

412

416

169

Inventories, net

(3)

(1,599)

435

Accounts payable, trade

(106)

395

(69)

Accrued liabilities

254

136

114

Provisions, net

211

(70)

105

(382)

Income taxes payable and receivable

(190)

(94)

(181)

(113)

Other assets and liabilities, net

(44)

(36)

4,301

1,334

1,897

720

(11)

(47)

–

(33)

Net cash provided by operating activities

4,290

1,287

1,897

687

Investing activities:

Purchases of investments

(1,957)

(321)

(854)

(50)

(770)

(762)

(264)

(259)

Acquisition of businesses (net of cash acquired)

(225)

(288)

(65)

(62)

Proceeds from sales of investments

610

697

Proceeds from maturity of investments

149

147

127

Proceeds from sales of businesses (net of transaction costs

553

1,541

1,549

Net cash from settlement of foreign currency derivatives

(109)

(166)

(33)

(12)

Changes in loans receivable, net

320

(5)

309

Other investing activities

(14)

(2)

(4)

(1,592)

1,207

(1,119)

1,629

(23)

(226)

(1)

(135)

Net cash provided by (used in) investing activities

(1,615)

981

(1,120)

1,494

Financing activities:

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

(1,365)

1,366

(368)

(109)

Increase in debt

2,586

3,849

295

Repayment of debt

(1,567)

(2,703)

(130)

(678)

Delivery of shares

154

394

Purchase of treasury stock

(1,258)

(3,553)

(349)

(302)

Dividends paid

(1,713)

(1,698)

–

(172)

–

(172)

Dividends paid to noncontrolling shareholders

(93)

(99)

(4)

(16)

Proceeds from issuance of subsidiary shares

328

216

–

216

Other financing activities

(2,897)

(2,394)

(786)

(697)

–

Net cash used in financing activities

(2,897)

(2,394)

(786)

(697)

(43)

(189)

Net change in cash and equivalents and restricted cash

(265)

(315)

1,486

Cash and equivalents and restricted cash, beginning of period

4,174

4,489

3,887

2,688

Cash and equivalents and restricted cash, end of period

3,909

4,174

3,909

4,174

Supplementary disclosure of cash flow information:

Interest paid

250

Income taxes paid

1,147

1,188

282

281

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

See Notes to the Consolidated Financial Information

—

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

($ in millions)

Common

stock

Additional

paid-in

capital

Retained

earnings

Accumulated

other

comprehensive

loss

Treasury

stock

stockholders’

equity

Non-

controlling

interests

Total

stockholders’

equity

Balance at January 1, 2022

178

22,477

(4,088)

(3,010)

15,579

378

15,957

Net income

(1)

2,475

124

2,599

Foreign currency translation

adjustments, net of tax of $0

(608)

(31)

(639)

Effect of change in fair value of

available-for-sale securities,

net of tax of $(5)

(21)

Unrecognized income (expense)

related to pensions and other

postretirement plans,

net of tax of $86

256

(1)

255

Change in derivative instruments

and hedges, net of tax of $2

–

Issuance of subsidiary shares

120

206

Other changes in

noncontrolling interests

(34)

(24)

Dividends to

noncontrolling shareholders

–

(100)

Dividends to shareholders

(1,700)

Spin-off of the Turbocharging Division

(177)

(95)

(272)

(12)

(284)

Cancellation of treasury shares

(8)

(4)

(2,864)

2,876

–

Share-based payment arrangements

Purchase of treasury stock

(3,502)

Delivery of shares

(51)

(130)

575

394

Other

Balance at December 31, 2022

171

141

20,082

(4,556)

(3,061)

12,777

410

13,187

Balance at January 1, 2023

171

141

20,082

(4,556)

(3,061)

12,777

410

13,187

Net income

(1)

3,745

3,828

Foreign currency translation

adjustments, net of tax of $(2)

(286)

(281)

Effect of change in fair value of

available-for-sale securities,

net of tax of $3

Unrecognized income (expense)

related to pensions and other

postretirement plans,

net of tax of $(45)

(237)

Change in derivative instruments

and hedges, net of tax of $(1)

(2)

Issuance of subsidiary shares

170

168

338

Other changes in

noncontrolling interests

(31)

(37)

(68)

(1)

Dividends to

noncontrolling shareholders

–

(93)

Dividends to shareholders

(1,706)

Cancellation of treasury shares

(7)

(201)

(2,359)

2,567

–

Share-based payment arrangements

101

103

Purchase of treasury stock

(1,247)

Delivery of shares

(173)

327

154

Other

(2)

Balance at December 31, 2023

163

19,724

(5,070)

(1,414)

13,410

647

14,057

(1)

Amounts attributable to noncontrolling interests for the year ended December 31, 2023 and 2022, exclude net losses of $4 million and $5 million, respectively, related to redeemable

noncontrolling interests, which are reported in the mezzanine equity section on the Consolidated Balance Sheets. See Note 4 for details.

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

See Notes to the Consolidated Financial Information

—

Notes to the Consolidated Financial Information (unaudited)

─

Note 1

The Company and basis of presentation

operated.

●

Report covers ABB’s 2023 strategy, business, governance, financial and sustainability performance

●

76 percent reduction of scope 1 and 2 GHG emissions since 2019

instruments,

●

74 megatons CO2e emissions avoided throughout lifetime of products sold in

2023

ABB today published its Integrated Report, which is the company’s primary report at Group level. The

report

~~warranties,~~integrates ~~self-insurance~~the ~~reserves,~~most ~~regulatory~~important ~~and~~material ~~other~~information ~~proceedings~~about the company’s strategy, business, governance as

well as its financial and sustainability performance. In addition to

the Integrated Report, ABB’s 2023 Annual

Reporting Suite published today includes its Financial Report,

Corporate Governance Report, Compensation

Report, Sustainability Report as well as the Form 20-F that was filed with

the United States Securities and

Exchange Commission.

ABB Chairman Peter Voser

said: “By combining our technology leadership in electrification and

automation

●with our decentralized ABB Way operating model we create holistic value for our stakeholders while

enabling a more sustainable and resource-efficient future. In 2023, we took advantage

of the positive market

environment and strong secular demand drivers and our financial and sustainability

achievements show that

●we are heading in the right direction.”

●ABB’s value creation model provides a comprehensive summary of the holistic value the company generates

for all stakeholders across its entire value chain, including customers,

employees, investors and suppliers. It

outlines the inputs that ABB needs to create value and illustrates how

the Group transforms these inputs into

●outputs and outcomes through its decentralized operating model.

●Commenting on ABB’s achievements in 2023, CEO Björn Rosengren said: “2023 was a record year for

●ABB. We delivered strong performance and as a technology leader in electrification and automation, ABB

continued to play a key role in accelerating the energy transition for a net-zero

future. Our solutions helped

●to optimize, electrify and decarbonize industry, buildings, power and transport – sectors that together account

~~divestments~~for the lion’s share of global energy-related carbon emissions. By doing this, we made the ways we move,

produce, work and live more sustainable and we continued to make good

progress

~~Basis~~1/3 ~~of presentation~~

towards achieving our sustainability targets. I am proud of the ABB team for delivering such

good results

~~not~~and ~~add~~creating tovalue ~~the~~for ~~totals~~all ~~provided~~our stakeholders.”

─Good progress towards sustainability goals

As part of ABB’s efforts to enable a low-carbon society,

the company submitted updated CO

Note 2

Recent accounting pronouncements

Applicable for current periods

Disclosure about supplier finance program obligations

the Company’s consolidated financial statements.

impact on the Company’s consolidated financial statements.

Applicable for future periods

Improvements to reportable segment disclosures

Improvements to income tax disclosures

─

Note 3

Discontinued operations

of tax.

─

Note 4

Acquisitions and equity-accounted companies

Acquisition of controlling interests

Acquisitions of controlling interests were as follows:

Year ended December 31,

Three months ended December 31,

($ in millions, except number of acquired businesses)

2023

2022

2023

2022

Purchase price for acquisitions (net of cash acquired)

(1)

175

195

Aggregate excess of purchase price over

fair value of net assets acquired

(2)

142

229

~~recognized~~e atemissions ~~fair value.~~

~~Business~~reduction ~~divestments~~targets aligned with the Net-Zero Standard of the Science-Based Targets initiative (SBTi) for

~~Investments~~validation. inThese ~~equity-accounted~~targets ~~companies~~include ABB’s scope 1 and 2 emissions, which it aims to reduce by 80 percent by

2030 and 100 percent by 2050, compared to a 2019 baseline, as well as

its scope 3 emissions, covering the

rest of its value chain, which it aims to cut by 25 percent by 2030 and 90 percent

by 2050, compared to a

~~“Other~~2022 ~~income (expense), net”~~baseline.

In 2023, ABB achieved a reduction of 76 percent in its scope 1 and 2 emissions

compared to 2019 and

scope 3 emissions stayed flat compared to 2022, based on measured energy loss (representative

scenario).

When calculating based on energy input (strict scenario) the company reports an 11 percent increase

in scope

~~method~~3 ofemissions ~~accounting~~compared into ~~Other~~2022. ~~income (expense), net, as follows:~~

The company also reduced its energy consumption by 21 percent compared to 2019.

At the end of 2023,

~~Year~~64 ~~ended~~percent ~~December~~of ~~31,~~ABB’s energy consumption and 94 percent of its electricity came from renewable sources.

In 2023, the products ABB sold to customers will avoid 74 megatons of

emissions over their lifetime. This

~~Three~~contributes ~~months~~to ~~ended~~the ~~December~~company’s ~~31,~~ambition to support customers in avoiding 600 megatons of GHG emissions

from 2022 to 2030, based on all the products the company expects to sell

over that period.

As part of the preserving resources pillar of its Sustainability Agenda, ABB

further reduced the amount of

waste it sends to landfill to 6.3 percent in 2023, a 40 percent reduction since 2019, while

recycling 86 percent

of its waste. By the end of 2023, ABB had also assessed 31 percent of its product portfolio

as part of its goal

of covering at least 80 percent of its portfolio of products and solutions with

its Circularity Approach by

($2030. ~~in millions)~~

Finally, in line with its goal of promoting social progress, in 2023, ABB reduced its rate of lost time caused

~~2022~~by injuries (LTIFR) by 9 percent to industry-leading levels. And it increased the number of women in senior

management positions to 21 percent, up from 17.8 percent in 2022. The company

also expanded its programs

for community engagement to cover education, emergency and disaster relief, community

empowerment,

and environment and conservation, and supported more than 500 community

projects and charities in 2023.

~~2023~~ABB’s full annual reporting suite including the Integrated Report and Sustainability Report can be accessed

~~2022~~and downloaded here: go.abb/reports

~~Income~~ABB ~~(loss) from equity-accounted companies, net of taxes~~

is a technology leader in electrification and automation, enabling a

more sustainable and resource-

~~(16)~~efficient future. The company’s solutions connect engineering know-how and software to optimize how

things are manufactured, moved, powered and operated. Building on over 140 years

of excellence, ABB’s

more than 105,000 employees are committed to driving innovations

that accelerate industrial transformation.

~~(22)~~www.abb.com

ABB PUBLISHES 2023

INTEGRATED

REPORT

~~(5)~~2/3

Basis difference amortization (net of deferred income tax benefit)

–

(80)

–

(14)

Loss from equity-accounted companies

(16)

(102)

(5)

(2)

─

Note 5

Cash and equivalents, marketable securities and short-term investments

December 31, 2023

Cash and

Marketable

Gross

equivalents

securities

unrealized

and restricted

and short-term

($ in millions)

Cost basis

gains

losses

Fair value

cash

investments

recorded in net income

Cash

1,449

Time deposits

2,923

2,460

463

Equity securities

1,250

1,282

5,622

–

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

(8)

183

189

(8)

183

–

183

Total

5,811

(8)

5,837

3,909

1,928

Restricted cash, current

December 31, 2022

Cash and

Marketable

Gross

equivalents

securities

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

1,715

Time deposits

2,459

Equity securities

345

355

4,519

–

4,529

4,174

355

Changes in fair value recorded

in other comprehensive income

Debt securities available-for-sale:

U.S. government obligations

269

(15)

255

Other government obligations

Corporate

(7)

391

(22)

370

–

370

Total

4,910

(22)

4,899

4,174

725

Of which:

Restricted cash, current

─

Note 6

Derivative financial instruments

activities.

Commodity risk

Volume of derivative activity

Foreign exchange and interest rate derivatives

Type of derivative

($ in millions)

December 31, 2023

December 31, 2022

Foreign exchange contracts

12,335

13,509

Embedded foreign exchange derivatives

1,137

933

Cross-currency interest rate swaps

886

855

Interest rate contracts

1,606

2,830

Derivative commodity contracts

Company’s requirements for these commodities:

Type of derivative

Unit

December 31, 2023

December 31, 2022

Copper swaps

metric tonnes

35,015

29,281

Silver swaps

ounces

2,359,363

2,012,213

Steel swaps

metric tonnes

10,206

–

Aluminum swaps

metric tonnes

5,900

6,825

Cash flow hedges

for cash flow hedge accounting activities.

Fair value hedges

Year ended December 31,

Three months ended December 31,

($ in millions)

2023

2022

2023

2022

Interest rate contracts

Designated as fair value hedges

(91)

(8)

Hedged item

(45)

(14)

Cross-currency interest rate swaps

Designated as fair value hedges

(134)

(9)

Hedged item

(40)

135

(42)

Derivatives not designated in hedge relationships

hedged transaction.

Type of derivative not

Gains (losses) recognized in income

designated as a hedge

Year ended December 31,

Three months ended December 31,

($ in millions)

Location

2023

2022

2023

2022

Foreign exchange contracts

Total revenues

145

(56)

158

145

Total cost of sales

(71)

(51)

(36)

SG&A expenses

(1)

(8)

and development

(7)

–

(3)

(2)

Interest and other finance expense

(240)

(128)

(224)

Embedded foreign exchange

Total revenues

(3)

(21)

(15)

contracts

Total cost of sales

(11)

Commodity contracts

Total cost of sales

(3)

(47)

Other

Interest and other finance expense

–

Total

(129)

(193)

(133)

121

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”

liabilities”

Derivatives designated as hedging instruments:

Foreign exchange contracts

–

Interest rate contracts

–

Cross-currency interest rate swaps

–

230

Other

–

Total

–

232

Derivatives not designated as hedging instruments:

Foreign exchange contracts

123

177

Commodity contracts

–

Interest rate contracts

–

Other equity contracts

–

Embedded foreign exchange derivatives

Total

159

207

Total fair value

169

230

246

December 31, 2022

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”

liabilities”

Derivatives designated as hedging instruments:

Foreign exchange contracts

–

Interest rate contracts

–

Cross-currency interest rate swaps

–

288

Other

–

Total

–

349

Derivatives not designated as hedging instruments:

Foreign exchange contracts

140

Commodity contracts

–

Interest rate contracts

–

Embedded foreign exchange derivatives

Total

169

112

Total fair value

184

121

367

occurrence of one or more pre-defined trigger events.

related to these offsetting arrangements was as follows:

($ in millions)

December 31, 2023

Gross amount

Derivative liabilities

Cash

Non-cash

Type of agreement or

of recognized

eligible for set-off

collateral

Net asset

similar arrangement

assets

in case of default

received

exposure

Derivatives

176

(111)

–

Total

176

(111)

–

($ in millions)

December 31, 2023

Gross amount

Derivative liabilities

Cash

Non-cash

eligible for set-off

collateral

Net liability

similar arrangement

liabilities

in case of default

pledged

exposure

Derivatives

445

(111)

–

334

Total

445

(111)

–

334

($ in millions)

December 31, 2022

Gross amount

Derivative liabilities

Cash

Non-cash

eligible for set-off

collateral

Net asset

similar arrangement

in case of default

received

exposure

Derivatives

194

(96)

–

Total

194

(96)

–

($ in millions)

December 31, 2022

Gross amount

Derivative liabilities

Cash

Non-cash

Type of agreement or

eligible for set-off

collateral

Net liability

similar arrangement

liabilities

pledged

exposure

Derivatives

458

(96)

–

362

Total

458

(96)

–

362

─

Note 7

Fair values

to their estimated fair value due to impairments.

The levels of the fair value hierarchy are as follows:

Level 1:

using Level 1 inputs include exchange

‑

futures and certain actively traded debt securities.

Level 2:

Level 3:

Recurring fair value measures

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”

–

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

December 31, 2022

($ in millions)

Level 1

Level 2

Level 3

Total fair value

Assets

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

Equity securities

–

355

–

355

Debt securities—U.S. government obligations

255

–

255

Debt securities—European government obligations

–

Debt securities—Corporate

–

Derivative assets—current in “Other current assets”

–

184

–

184

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

–

Total

255

681

–

936

Liabilities

Derivative liabilities—current in “Other current liabilities”

–

121

–

121

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

–

367

–

367

Total

–

488

–

488

●

December 31, 2023

($ in millions)

Carrying value

Level 1

Level 2

Level 3

Total fair value

Assets

maturities up to 3 months):

Cash

1,431

–

1,431

Time deposits

2,460

–

2,460

–

2,460

Restricted cash

–

Marketable securities and short-term investments

(excluding securities):

Time deposits

463

–

463

–

463

Liabilities

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

(excluding finance lease obligations)

2,576

2,521

–

2,576

Long-term debt (excluding finance lease obligations)

5,060

5,096

–

5,101

December 31, 2022

($ in millions)

Carrying value

Level 1

Level 2

Level 3

Total fair value

Assets

maturities up to 3 months):

Cash

1,697

–

1,697

Time deposits

2,459

–

2,459

–

2,459

Restricted cash

–

Liabilities

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

(excluding finance lease obligations)

2,500

1,068

1,432

–

2,500

Long-term debt (excluding finance lease obligations)

4,976

4,813

–

4,843

●

investments (excluding securities):

are equal to the deposit amount.

●

approximate their fair values.

●

─

Note 8

Contract assets and liabilities

($ in millions)

December 31, 2023

December 31, 2022

December 31, 2021

Contract assets

1,090

954

990

Contract liabilities

2,844

2,216

1,894

collected within one year of the respective balance sheet date.

Year ended December 31,

2023

2022

Contract

($ in millions)

assets

liabilities

assets

liabilities

(1,311)

(1,043)

1,845

1,481

(622)

(591)

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

─

Note 9

Debt

($ in millions)

December 31, 2023

December 31, 2022

Short-term debt

1,448

Current maturities of long-term debt

2,520

1,087

Total

2,607

2,535

Long-term debt

December 31, 2023

December 31, 2022

(in millions)

Nominal outstanding

(1)

Nominal outstanding

(1)

Bonds:

0.625% EUR Instruments, due 2023

EUR

700

742

0% CHF Bonds, due 2023

CHF

275

298

0.625% EUR Instruments, due 2024

EUR

700

768

EUR

700

720

Floating Rate EUR Instruments, due 2024

EUR

500

554

EUR

500

536

0.75% EUR Instruments, due 2024

EUR

750

819

EUR

750

769

0.3% CHF Bonds, due 2024

CHF

280

335

CHF

280

303

2.1% CHF Bonds, due 2025

CHF

150

179

CHF

150

162

1.965% CHF Bonds, due 2026

CHF

325

387

3.25% EUR Instruments, due 2027

EUR

500

551

0.75% CHF Bonds, due 2027

CHF

425

507

CHF

425

460

3.8% USD Notes, due 2028

(2)

USD

383

382

USD

383

381

1.9775% CHF Bonds, due 2028

CHF

150

179

1.0% CHF Bonds, due 2029

CHF

170

203

CHF

170

184

0% EUR Instruments, due 2030

EUR

800

749

EUR

800

677

2.375% CHF Bonds, due 2030

CHF

150

178

CHF

150

162

3.375% EUR Instruments, due 2031

EUR

750

818

2.1125% CHF Bonds, due 2033

CHF

275

327

4.375% USD Notes, due 2042

(2)

USD

609

591

USD

609

590

Total

7,527

5,984

2042, was USD 750 million.

Subsequent events

─

Note 10

Commitments and contingencies

Regulatory

provisions for this matter.

General

Liabilities recognized

non

‑

General

Maximum potential payments

($ in millions)

December 31, 2023

December 31, 2022

Performance guarantees

3,451

4,300

Financial guarantees

Total

(1)

3,545

4,396

(1)

performance guarantees range from one to ten years.

Commercial commitments

Product and order-related contingencies

($ in millions)

2023

2022

Balance at January 1,

1,028

1,005

Net change in warranties due to acquisitions, divestments and spin-offs

–

(24)

Claims paid in cash or in kind

(171)

(157)

327

252

Exchange rate differences

(48)

Balance at December 31,

1,210

1,028

Provisions for contractual penalties

─

Note 11

Income taxes

─

Note 12

Employee benefits

government and tax requirements.

($ in millions)

Defined pension benefits

Other postretirement

Switzerland

International

benefits

Year ended December 31,

2023

2022

2023

2022

2023

2022

Operational pension cost:

Service cost

–

Operational pension cost

–

Non-operational pension cost (credit):

Interest cost

166

Expected return on plan assets

(129)

(116)

(157)

(153)

–

Amortization of prior service cost (credit)

(8)

(9)

(2)

(1)

(2)

Amortization of net actuarial loss

–

(4)

(3)

Curtailments, settlements and special termination benefits

(16)

–

Non-operational pension cost (credit)

(76)

(108)

(3)

(19)

(4)

Net periodic benefit cost (credit)

(36)

(58)

108

(19)

(4)

($ in millions)

Defined pension benefits

Other postretirement

Switzerland

International

benefits

Three months ended December 31,

2023

2022

2023

2022

2023

2022

Operational pension cost:

Service cost

–

Operational pension cost

–

Non-operational pension cost (credit):

Interest cost

–

Expected return on plan assets

(35)

(29)

(41)

(40)

–

Amortization of prior service cost (credit)

(2)

(4)

–

(1)

Amortization of net actuarial loss

–

(1)

Curtailments, settlements and special termination benefits

–

Non-operational pension cost (credit)

(11)

(18)

–

(2)

Net periodic benefit cost (credit)

–

(8)

–

(2)

statement.

Employer contributions were as follows:

($ in millions)

Defined pension benefits

Other postretirement

Switzerland

International

benefits

Year ended December 31,

2023

2022

2023

2022

2023

2022

Other postretirement

Switzerland

International

benefits

Three months ended December 31,

2023

2022

2023

2022

2023

2022

other postretirement benefit plans

Of which, discretionary contributions to defined benefit

pension plans

–

─

Note 13

Stockholder's equity

in April.

Plan.

─

Note 14

Earnings per share

conditions under the Company’s share-based payment arrangements.

Basic earnings per share

Year ended December 31,

Three months ended December 31,

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

2023

2022

2023

2022

Amounts attributable to ABB shareholders:

Income from continuing operations, net of tax

3,769

2,517

929

1,138

Loss from discontinued operations, net of tax

(24)

(42)

(8)

(6)

Net income

3,745

2,475

921

1,132

1,855

1,899

1,845

1,870

Basic earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax

2.03

1.33

0.50

0.61

Loss from discontinued operations, net of tax

(0.01)

(0.02)

0.00

Net income

2.02

1.30

0.50

0.61

Diluted earnings per share

Year ended December 31,

Three months ended December 31,

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

2023

2022

2023

2022

Amounts attributable to ABB shareholders:

Income from continuing operations, net of tax

3,769

2,517

929

1,138

Loss from discontinued operations, net of tax

(24)

(42)

(8)

(6)

Net income

3,745

2,475

921

1,132

Weighted-average number of shares outstanding (in millions)

1,855

1,899

1,845

1,870

Effect of dilutive securities:

Call options and shares

1,867

1,910

1,856

1,881

Diluted earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax

2.02

1.32

0.50

0.60

Loss from discontinued operations, net of tax

(0.01)

(0.02)

0.00

Net income

2.01

1.30

0.50

0.60

─

Note 15

Reclassifications out of accumulated other comprehensive loss

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, 2022

(2,993)

(1,089)

(8)

(4,088)

Other comprehensive (loss) income:

Other comprehensive (loss) income

before reclassifications

(685)

(23)

226

(12)

(494)

Amounts reclassified from OCI

(639)

(21)

255

–

(405)

Spin-off of the Turbocharging Division

(93)

–

(5)

–

(98)

Less:

Amounts attributable to

(34)

–

(1)

–

(35)

Balance at December 31, 2022

(3,691)

(19)

(838)

(8)

(4,556)

Other comprehensive (loss) income:

Other comprehensive (loss) income

before reclassifications

(290)

(283)

(10)

(578)

Amounts reclassified from OCI

(281)

(237)

(2)

(509)

Less:

Amounts attributable to

redeemable noncontrolling interests

–

Balance at December 31, 2023

(3,977)

(8)

(1,075)

(10)

(5,070)

adjustments:

Year ended

Three months ended

($ in millions)

Location of (gains) losses

December 31,

Details about OCI components

reclassified from OCI

2023

2022

2023

2022

Foreign currency translation adjustments:

Changes attributable to divestments

Other income (expense), net

–

Net loss on complete or substantially complete

liquidations of foreign subsidiaries

Other income (expense), net

–

Amounts reclassified from OCI

–

Pension and other postretirement plan adjustments:

Amortization of prior service cost (credit)

Non-operational pension (cost) credit

(11)

(13)

(2)

(5)

Amortization of net actuarial loss

Non-operational pension (cost) credit

Net gain (loss) from settlements and curtailments

Non-operational pension (cost) credit

Changes attributable to divestments

Other income (expense), net

(8)

Total before tax

Tax

Income tax expense

(10)

(16)

(9)

(6)

Amounts reclassified from OCI

three months ended December 31, 2023 and 2022.

─

Note 16

Restructuring and related expenses

Restructuring-related activities

Year ended December 31,

Three months ended December 31,

($ in millions)

2023

2022

2023

2022

Employee severance costs

120

Estimated contract settlement, loss order and other costs

209

Inventory and long-lived asset impairments

Total

176

297

116

Year ended December 31,

Three months ended December 31,

($ in millions)

2023

2022

2023

2022

Total cost of sales

Selling, general and administrative expenses

Non-order related research and development expenses

–

Other income (expense), net

231

Total

176

297

116

provisions.

─

Note 17

Operating segment data

●

Conversion Division.

●

a comprehensive range of digital solutions.

Corporate and Other:

●

divested businesses),

●

at December 31, 2023 and 2022.

Year ended December 31, 2023

Robotics &

Process

Discrete

Corporate

($ in millions)

Electrification

Motion

Automation

and Other

Total

4,547

2,455

2,294

1,932

340

11,568

5,926

2,562

1,738

573

291

11,090

of which: United States

4,456

2,123

1,076

358

235

8,248

3,899

2,276

2,212

1,119

9,577

of which: China

1,775

1,148

707

804

4,468

14,372

7,293

6,244

3,624

702

32,235

Products

13,437

6,219

3,661

3,063

630

27,010

Services and other

935

1,074

2,583

561

5,225

14,372

7,293

6,244

3,624

702

32,235

Third-party revenues

14,372

7,293

6,244

3,624

702

32,235

Intersegment revenues

212

521

(775)

–

Total revenues

(1)

14,584

7,814

6,270

3,640

(73)

32,235

Year ended December 31, 2022

Robotics &

Process

Discrete

Corporate

($ in millions)

Electrification

Motion

Automation

and Other

Total

4,199

2,031

2,248

1,494

313

10,285

5,140

2,148

1,566

524

195

9,573

of which: United States

3,769

1,787

943

373

151

7,023

4,053

2,101

2,199

1,155

9,588

of which: China

1,948

1,147

666

897

4,696

13,392

6,280

6,013

3,173

588

29,446

Products

12,535

5,380

3,311

2,695

550

24,471

Services and other

857

900

2,702

478

4,975

13,392

6,280

6,013

3,173

588

29,446

Third-party revenues

13,392

6,280

6,013

3,173

588

29,446

Intersegment revenues

227

465

(731)

–

Total revenues

(1)

13,619

6,745

6,044

3,181

(143)

29,446

Three months ended December 31, 2023

Robotics &

Process

Discrete

Corporate

($ in millions)

Electrification

Motion

Automation

and Other

Total

1,136

597

631

476

111

2,951

1,533

638

459

142

2,847

of which: United States

1,164

521

278

2,105

987

577

632

233

2,447

of which: China

419

282

205

147

1,064

3,656

1,812

1,722

851

204

8,245

Products

3,387

1,524

994

710

185

6,800

Services and other

269

288

728

141

1,445

3,656

1,812

1,722

851

204

8,245

Third-party revenues

3,656

1,812

1,722

851

204

8,245

Intersegment revenues

134

(182)

–

Total revenues

(1)

3,698

1,946

1,727

852

8,245

Three months ended December 31, 2022

Robotics &

Process

Discrete

Corporate

($ in millions)

Electrification

Motion

Automation

and Other

Total

1,074

601

522

424

144

2,765

1,341

574

431

147

2,555

of which: United States

992

480

262

106

1,898

1,033

537

592

317

2,504

of which: China

442

259

168

251

1,133

3,448

1,712

1,545

888

231

7,824

Products

3,207

1,449

891

760

218

6,525

Services and other

241

263

654

128

1,299

3,448

1,712

1,545

888

231

7,824

Third-party revenues

3,448

1,712

1,545

888

231

7,824

Intersegment revenues

133

(192)

–

Total revenues

(1)

3,498

1,845

1,551

891

7,824

Three months ended

December 31,

($ in millions)

2023

2022

2023

2022

Operational EBITA:

Electrification

2,937

2,343

725

575

Motion

1,475

1,163

318

Process Automation

909

848

239

203

Robotics & Discrete Automation

536

340

118

125

Corporate and Other

‒

E-mobility

(167)

(15)

(33)

(3)

(263)

(169)

(34)

(72)

Total

5,427

4,510

1,333

1,146

Acquisition-related amortization

(220)

(229)

(56)

(55)

Restructuring, related and implementation costs

(1)

(219)

(347)

(127)

(47)

Changes in obligations related to divested businesses

(2)

Gains and losses from sale of businesses

101

(7)

(3)

(74)

(195)

(19)

(24)

commodities, embedded derivatives)

139

transaction has not yet been realized

(48)

–

Unrealized foreign exchange movements on receivables/payables (and

related assets/liabilities)

(13)

(15)

(38)

(70)

Certain other non-operational items:

Other income/expense relating to the Power Grids joint venture

(57)

Regulatory, compliance and legal costs

–

(317)

–

Business transformation costs

(2)

(205)

(152)

(66)

(38)

Changes in pre-acquisition estimates

(4)

(10)

–

(10)

Gains and losses from sale of investments in

equity-accounted companies

–

Certain other fair value changes, including asset impairments

(10)

(13)

Other non-operational items

(4)

(6)

Income from operations

4,871

3,337

1,116

1,185

Interest and dividend income

165

Interest and other finance expense

(275)

(130)

(78)

(23)

Non-operational pension (cost) credit

115

(6)

Income from continuing operations before taxes

4,778

3,394

1,082

1,197

Total assets

(1)

($ in millions)

December 31, 2023

December 31, 2022

Electrification

12,668

12,500

Motion

7,016

6,565

Process Automation

4,971

4,598

Robotics & Discrete Automation

5,047

4,901

Corporate and Other

(2)

11,238

10,584

Consolidated

40,940

39,148

—

For more information please

contact:

~~Comparable~~Media ~~growth~~Relations ~~rate reconciliation by Business Area~~

Q4Phone: ~~2023~~+41 ~~compared~~43 to317 Q471 ~~2022~~11

~~Order~~Email: ~~growth~~media.relations@ch.abb.com ~~rate~~

~~Revenue~~Investor ~~growth~~Relations ~~rate~~

~~US$~~Phone: +41 43 317 71 11

~~Foreign~~Email: investor.relations@ch.abb.com

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Business Area

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

-1%

Motion

17%

-2%

13%

-1%

-2%

Process Automation

-2%

11%

-1%

10%

Robotics & Discrete Automation

-31%

-2%

-33%

-4%

-3%

-7%

ABB Group

-1%

FY 2023 compared to FY 2022

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

10%

Motion

-1%

16%

-2%

15%

Process Automation

10%

12%

24%

11%

16%

Robotics & Discrete Automation

-26%

-25%

14%

ABB Group

-1%

14%

Regional comparable growth rate reconciliation

Q4 2023 compared to Q4 2022

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-2%

-5%

The Americas

-1%

11%

-1%

14%

of which: United States

-1%

11%

15%

Asia, Middle East and Africa

-2%

of which: China

-8%

-7%

-6%

-5%

ABB Group

-1%

Q4 2023 compared to Q4 2022

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-5%

The Americas

-1%

14%

-1%

21%

of which: United States

-3%

17%

11%

28%

Asia, Middle East and Africa

-5%

-4%

of which: China

-9%

-6%

-4%

-2%

Electrification

-1%

Q4 2023 compared to Q4 2022

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

30%

-8%

-4%

18%

-1%

-5%

-1%

-7%

The Americas

14%

-2%

-3%

12%

-1%

-4%

of which: United States

14%

-1%

-3%

10%

-1%

-3%

Asia, Middle East and Africa

10%

12%

of which: China

10%

11%

Motion

17%

-2%

13%

-1%

-2%

Q4 2023 compared to Q4 2022

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-4%

21%

-3%

18%

The Americas

13%

-3%

10%

-1%

of which: United States

30%

-5%

25%

-1%

Asia, Middle East and Africa

10%

11%

of which: China

-4%

-1%

-5%

14%

15%

Process Automation

-2%

11%

-1%

10%

Q4 2023 compared to Q4 2022

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-34%

-4%

-38%

12%

-5%

The Americas

-19%

-2%

-21%

-3%

-2%

-5%

of which: United States

-19%

-16%

Asia, Middle East and Africa

-33%

-31%

-28%

-27%

of which: China

-36%

-34%

-42%

-41%

Robotics & Discrete Automation

-31%

-2%

-33%

-4%

-3%

-7%

FY 2023 compared to FY 2022

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-3%

-1%

12%

-1%

14%

The Americas

16%

-1%

18%

of which: United States

17%

21%

Asia, Middle East and Africa

-4%

of which: China

-12%

-5%

ABB Group

-1%

14%

FY 2023 compared to FY 2022

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-2%

The Americas

15%

19%

of which: United States

-1%

18%

23%

Asia, Middle East and Africa

-2%

-4%

of which: China

-9%

-3%

-9%

-3%

Electrification

10%

FY 2023 compared to FY 2022

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-2%

-1%

19%

-3%

-1%

15%

The Americas

-1%

-2%

20%

-4%

16%

of which: United States

-1%

-2%

19%

-3%

16%

Asia, Middle East and Africa

10%

14%

of which: China

-1%

Motion

-1%

16%

-2%

15%

FY 2023 compared to FY 2022

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

13%

27%

12%

14%

The Americas

22%

-1%

30%

11%

-1%

10%

20%

of which: United States

25%

-3%

12%

34%

14%

12%

26%

Asia, Middle East and Africa

-2%

12%

14%

12%

17%

of which: China

-3%

14%

16%

13%

22%

Process Automation

10%

12%

24%

11%

16%

FY 2023 compared to FY 2022

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-28%

30%

-3%

27%

The Americas

-11%

-1%

-12%

10%

-2%

of which: United States

-17%

-3%

-1%

-4%

Asia, Middle East and Africa

-29%

-25%

-3%

of which: China

-35%

-31%

-10%

-7%

Robotics & Discrete Automation

-26%

-25%

14%

Order backlog growth rate reconciliation

December 31, 2023 compared to December 31, 2022

US$

Foreign

(as

exchange

Portfolio

Business Area

reported)

impact

changes

Comparable

14%

Motion

13%

-4%

-1%

Process Automation

21%

-2%

19%

Robotics & Discrete Automation

-20%

ABB Group

-2%

Other growth rate reconciliations

Q4 2023 compared to Q4 2022

Service orders growth rate

Services revenues growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Business Area

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

10%

-1%

11%

Motion

32%

-1%

31%

-1%

Process Automation

29%

-3%

26%

11%

-1%

10%

Robotics & Discrete Automation

10%

-2%

11%

-3%

ABB Group

22%

-2%

20%

11%

-1%

10%

FY 2023 compared to FY 2022

Service orders growth rate

Services revenues growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Business Area

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

10%

Motion

13%

15%

19%

21%

Process Automation

21%

25%

-4%

18%

15%

Robotics & Discrete Automation

10%

17%

ABB Group

10%

18%

10%

16%

Definition

Operational EBITA margin

Operational EBITA

●

Acquisition-related amortization

Amortization expense on intangibles arising upon acquisitions.

Restructuring, related and implementation costs

implementation of group-wide restructuring programs.

Operational revenues

with U.S. GAAP.

Reconciliation

Year ended December 31,

Three months ended December 31,

($ in millions)

2023

2022

2023

2022

Operational EBITA

5,427

4,510

1,333

1,146

Acquisition-related amortization

(220)

(229)

(56)

(55)

Restructuring, related and implementation costs

(1)

(219)

(347)

(127)

(47)

Changes in obligations related to divested businesses

(2)

Gains and losses from sale of businesses

101

(7)

(3)

(74)

(195)

(19)

(24)

Certain other non-operational items

(165)

(452)

(76)

(31)

Income from operations

4,871

3,337

1,116

1,185

Interest and dividend income

165

Interest and other finance expense

(275)

(130)

(78)

(23)

Non-operational pension (cost) credit

115

(6)

Income from continuing operations before taxes

4,778

3,394

1,082

1,197

Income tax expense

(930)

(757)

(136)

(29)

3,848

2,637

946

1,168

Loss from discontinued operations, net of tax

(24)

(43)

(8)

(7)

Net income

3,824

2,594

938

1,161

Three months ended December 31, 2023

Corporate and

Robotics &

Other and

Process

Discrete

Intersegment

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

elimination

Consolidated

Total revenues

3,698

1,946

1,727

852

8,245

Foreign exchange/commodity timing

differences in total revenues:

Unrealized gains and losses

on derivatives

(33)

(48)

(23)

(5)

(4)

(113)

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

(3)

(10)

(1)

(2)

(15)

Unrealized foreign exchange movements

on receivables (and related assets)

Operational revenues

3,683

1,911

1,706

854

8,179

Income (loss) from operations

670

292

259

(204)

1,116

Acquisition-related amortization

Restructuring, related and

implementation costs

(1)

(4)

127

Changes in obligations related to

divested businesses

–

Gains and losses from sale of businesses

(4)

–

(4)

Acquisition- and divestment-related expenses

and integration costs

(4)

Certain other non-operational items

–

(14)

differences in income from operations:

Unrealized gains and losses on derivatives

embedded derivatives)

(31)

(36)

(12)

(2)

(77)

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

(4)

(11)

(2)

(4)

(20)

on receivables/payables

(and related assets/liabilities)

Operational EBITA

725

318

239

118

(67)

1,333

Operational EBITA margin (%)

19.7%

16.6%

14.0%

13.8%

n.a.

16.3%

Three months ended December 31, 2023

Robotics &

Process

Discrete

Corporate

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

and Other

Consolidated

Certain other non-operational items:

Power Grids joint venture

–

(9)

Business transformation costs

(1)

–

(2)

Certain other fair values changes,

including asset impairments

–

(11)

Other non-operational items

–

(1)

Total

–

(14)

Three months ended December 31, 2022

Corporate and

Robotics &

Other and

Process

Discrete

Intersegment

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

elimination

Consolidated

Total revenues

3,498

1,845

1,551

891

7,824

differences in total revenues:

Unrealized gains and losses

on derivatives

(64)

(35)

(25)

(10)

(15)

(149)

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

–

(2)

(1)

Unrealized foreign exchange movements

on receivables (and related assets)

Operational revenues

3,467

1,823

1,539

892

7,762

Income (loss) from operations

569

316

183

101

1,185

Acquisition-related amortization

Restructuring, related and

implementation costs

(1)

Changes in obligations related to

divested businesses

–

(72)

(71)

Gains and losses from sale of businesses

–

Acquisition- and divestment-related expenses

and integration costs

Certain other non-operational items

–

(8)

(31)

(28)

differences in income from operations:

Unrealized gains and losses on derivatives

embedded derivatives)

(80)

(27)

(21)

(12)

(139)

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

(1)

(2)

–

on receivables/payables

(and related assets/liabilities)

Operational EBITA

575

318

203

125

(75)

1,146

Operational EBITA margin (%)

16.6%

17.4%

13.2%

14.0%

n.a.

14.8%

Three months ended December 31, 2022

Robotics &

Process

Discrete

Corporate

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

and Other

Consolidated

Certain other non-operational items:

Power Grids joint venture

–

(10)

Regulatory, compliance and legal costs

–

(16)

Business transformation costs

(1)

–

Changes in pre-acquisition estimates

–

Gains and losses from sale of investments

in equity-accounted companies

–

(43)

Certain other fair values changes,

including asset impairments

–

Other non-operational items

(2)

–

(17)

(1)

(20)

Total

–

(8)

(32)

(28)

Year ended December 31, 2023

Corporate and

Robotics &

Other and

Process

Discrete

Intersegment

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

elimination

Consolidated

Total revenues

14,584

7,814

6,270

3,640

(73)

32,235

Foreign exchange/commodity timing

differences in total revenues:

Unrealized gains and losses

on derivatives

(33)

(20)

(1)

(48)

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

(8)

–

(2)

–

(1)

(11)

Unrealized foreign exchange movements

on receivables (and related assets)

(2)

Operational revenues

14,581

7,791

6,252

3,644

(74)

32,194

Income (loss) from operations

2,800

1,390

947

446

(712)

4,871

Acquisition-related amortization

220

Restructuring, related and

implementation costs

(1)

219

Changes in obligations related to

divested businesses

–

(4)

(3)

Gains and losses from sale of businesses

(75)

–

(26)

–

(101)

and integration costs

(7)

Certain other non-operational items

–

(10)

153

165

differences in income from operations:

Unrealized gains and losses on derivatives

embedded derivatives)

(21)

(13)

(1)

(19)

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

(5)

–

(4)

–

(3)

(12)

on receivables/payables

(and related assets/liabilities)

(5)

Operational EBITA

2,937

1,475

909

536

(430)

5,427

Operational EBITA margin (%)

20.1%

18.9%

14.5%

14.7%

n.a.

16.9%

Year ended December 31, 2023

Robotics &

Process

Discrete

Corporate

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

and Other

Consolidated

Certain other non-operational items:

Other income/expense relating to the

Power Grids joint venture

–

(36)

Business transformation costs

(1)

–

188

205

Changes in pre-acquisition estimates

–

Certain other fair values changes,

including asset impairments

–

(10)

Other non-operational items

(2)

–

(1)

(17)

(18)

Total

–

(10)

153

165

Year ended December 31, 2022

Corporate and

Robotics &

Other and

Process

Discrete

Intersegment

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

elimination

Consolidated

Total revenues

13,619

6,745

6,044

3,181

(143)

29,446

differences in total revenues:

Unrealized gains and losses

on derivatives

(37)

(18)

(1)

(27)

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

–

Unrealized foreign exchange movements

on receivables (and related assets)

(2)

(9)

–

Operational revenues

13,599

6,731

6,077

3,187

(120)

29,474

Income (loss) from operations

2,140

1,092

663

247

(805)

3,337

Acquisition-related amortization

104

229

Restructuring, related and

implementation costs

(1)

263

347

Changes in obligations related to

divested businesses

–

(89)

(88)

Gains and losses from sale of businesses

(1)

–

Acquisition- and divestment-related expenses

and integration costs

134

195

Certain other non-operational items

–

(8)

419

452

differences in income from operations:

Unrealized gains and losses on derivatives

embedded derivatives)

(30)

(5)

(7)

(32)

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

–

on receivables/payables

(and related assets/liabilities)

(9)

Operational EBITA

2,343

1,163

848

340

(184)

4,510

Operational EBITA margin (%)

17.2%

17.3%

14.0%

10.7%

n.a.

15.3%

Year ended December 31, 2022

Robotics &

Process

Discrete

Corporate

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

and Other

Consolidated

Certain other non-operational items:

Other income/expense related to the

Power Grids joint venture

–

Regulatory, compliance and legal costs

–

317

Business transformation costs

–

132

152

Changes in pre-acquisition estimates

–

(1)

–

Gains and losses from sale of investments

in equity-accounted companies

–

(43)

Certain other fair values changes,

including asset impairments

(3)

–

(50)

(45)

Other non-operational items

–

(15)

Total

–

(8)

418

452

Net debt

Total debt

Cash and marketable securities

investments.

Reconciliation

December 31,

($ in millions)

2023

2022

2021

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

2,607

2,535

1,384

Long-term debt

5,221

5,143

4,177

Total debt

7,828

7,678

5,561

Cash and equivalents

3,891

4,156

4,159

Restricted cash - current

Marketable securities and short-term investments

1,928

725

1170

Restricted cash - non-current

–

300

Cash and marketable securities

5,837

4,899

5,659

Net debt (cash)

1,991

2,779

(98)

Net debt/Equity ratio

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

Equity

Reconciliation

($ in millions, unless otherwise indicated)

December 31, 2023

December 31, 2022

14,057

13,187

Net debt (as defined above)

1,991

2,779

Net debt / Equity ratio

0.14

0.21

Net debt/EBITDA Ratio

Net debt/EBITDA

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

EBITDA

Reconciliation

($ in millions, unless otherwise indicated)

December 31, 2023

December 31, 2022

Income from operations

4,871

3,337

Depreciation and Amortization

780

814

5,651

4,151

Net debt (as defined above)

1,991

2,779

Net debt / EBITDA

0.35

0.67

Net working capital as a percentage of revenues

Net working capital

Adjusted revenues for the trailing twelve months

twelve-month period.

Reconciliation

December 31,

($ in millions, unless otherwise indicated)

2023

2022

2021

Net working capital:

Receivables, net

7,446

6,858

6,551

Contract assets

1,090

954

990

Inventories, net

6,149

6,028

4,880

Prepaid expenses

235

230

206

Accounts payable, trade

(4,847)

(4,904)

(4,921)

Contract liabilities

(1)

(2,844)

(2,275)

(1,894)

Other current liabilities

(2)

(3,972)

(3,675)

(3,509)

Net working capital

3,257

3,216

2,303

32,235

29,446

28,945

Adjustment to annualize/eliminate revenues of certain acquisitions/divestments

(186)

(513)

(517)

Adjusted revenues for the trailing twelve months

32,049

28,933

28,428

Net working capital as a percentage of revenues (%)

10.2%

11.1%

8.1%

liabilities, (c) pension and other employee benefits, (d) payables under the share buyback program and (e) liabilities related to the divestment of the Power Grids business.

Free cash flow conversion to net income

Definition

Free cash flow conversion to net income

Adjusted net income attributable to ABB

in discontinued operations.

Free cash flow

Free cash flow conversion to net income

Twelve months to

($ in millions, unless otherwise indicated)

December 31, 2023

December 31, 2022

4,301

1,334

Adjusted for the effects of continuing operations:

(770)

(762)

147

127

Free cash flow from continuing operations

3,678

699

Net cash used in operating activities – discontinued operations

(11)

(47)

Free cash flow

3,667

652

Adjusted net income attributable to ABB

(1)

3,686

2,442

Free cash flow conversion to net income

99%

27%

Reconciliation

Year ended December 31,

Three months ended December 31,

($ in millions)

2023

2022

2023

2022

Interest and dividend income

165

Interest and other finance expense

(275)

(130)

(78)

(23)

Net finance expenses

(110)

(58)

(28)

(1)

Book-to-bill ratio

Reconciliation

Year ended December 31,

2023

2022

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

Orders

Revenues

Book-to-bill

Orders

Revenues

Book-to-bill

Electrification

15,189

14,584

1.04

15,182

13,619

1.11

Motion

8,222

7,814

1.05

7,896

6,745

1.17

Process Automation

7,535

6,270

1.20

6,825

6,044

1.13

Robotics & Discrete Automation

3,066

3,640

0.84

4,116

3,181

1.29

Corporate and Other

(194)

(73)

n.a.

(31)

(143)

n.a.

ABB Group

33,818

32,235

1.05

33,988

29,446

1.15

Three months ended December 31,

2023

2022

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

Orders

Revenues

Book-to-bill

Orders

Revenues

Book-to-bill

Electrification

3,395

3,698

0.92

3,385

3,498

0.97

Motion

1,937

1,946

1.00

1,649

1,845

0.89

Process Automation

1,870

1,727

1.08

1,746

1,551

1.13

Robotics & Discrete Automation

550

852

0.65

798

891

0.90

Corporate and Other

(103)

n.a.

ABB Group

7,649

8,245

0.93

7,620

7,824

0.97

Return on Capital employed (ROCE)

Definition

Return on Capital employed (ROCE)

Capital employed

Adjusted total fixed assets

Notional tax on Operational EBITA

Adjusted Group effective tax rate

Reconciliation

($ in millions, unless otherwise indicated)

2023

2022

2021

Adjusted total fixed assets:

Property, plant and equipment, net

4,142

3,911

4,045

Goodwill

10,561

10,511

10,482

Other intangible assets, net

1,223

1,406

1,561

Investments in equity-accounted companies

187

130

1,670

Operating lease right-of-use assets

893

841

895

Total fixed assets

17,006

16,799

18,653

Less: Deferred taxes recognized in certain acquisitions

(1)

(297)

(358)

(417)

Adjusted total fixed assets

16,709

16,441

18,236

Net working capital - (as defined above)

3,257

3,216

2,303

Capital employed

19,966

19,657

20,539

Average Capital employed:

Capital employed at the end of the previous year

19,657

20,539

21,976

Capital employed at the end of the current year

19,966

19,657

20,539

19,812

20,098

21,258

Adjusted for timing of acquisitions/divestments

–

948

224

Average Capital employed

19,812

21,046

21,482

Operational EBITA for the year ended

5,427

4,510

4,122

Notional tax on Operational EBITA

(1,248)

(1,037)

(929)

Operational EBITA after tax

4,179

3,473

3,193

Return on Capital employed (ROCE)

21.1%

16.5%

14.9%

—

ABB Ltd

~~Corporate~~Affolternstrasse ~~Communications~~44

8050 Zurich

Switzerland

ABB PUBLISHES 2023

INTEGRATED

REPORT

113/3

www.abb.com

—

~~Changes~~ZURICH, toSWITZERLAND, ~~composition~~FEBRUARY of23, ~~ABB~~2024 ~~Board~~

Notice of ABB’s

Annual General

Meeting on March

21, 2024

ABB today published the invitation to its Annual General Meeting (AGM),

which will be held on Thursday,

March 21, 2024, at 10:00 a.m. The invitation can be found attached and at go.abb/agm.

The Annual General

Meeting 2024 will be held at Halle 550, Birchstrasse 150, 8050 Zurich,

Switzerland, and will also be

ofbroadcast ~~Directors~~at go.abb/agm.

•Registration and admission cards

Shareholders entered in the share register with the right to vote on

March 13, 2024, 3:00 p.m. (CET), are

entitled to participate in the Annual General Meeting. These shareholders

will receive their admission cards

(by mail) on request, either using the reply form enclosed

to the invitation or electronically (e-voting). The

reply form or a corresponding notification must reach the Company not

later than March 15, 2024 (by mail

or e-voting). Reply forms or notifications arriving after that date will not be

taken into consideration.

~~members~~Proxy/Voting

If you cannot attend our Annual General Meeting in person, you may

be represented by proxy.

•Electronic authorizations/voting and instructions to the independent proxy (e-voting)

~~Annual~~Shareholders ~~General~~may ~~Meeting~~use the shareholder platform at www.gvote.ch to either request an admission card or issue

~~Chairman~~voting ~~Peter~~instructions ~~Voser~~to the independent proxy.

The requisite login details are enclosed in the reply form. Shareholders

may vote electronically, or change

~~citizen~~any instructions they may have communicated electronically, up to but no later than 11:59 p.m. (CET) on

March 15, 2024. For further information as well as instructions on

how to register and vote electronically,

~~1965~~please ~~and~~refer isto ~~a Swedish citizen~~go.abb/agm.

~~found~~Agenda ~~here (https://global.abb/group/en/about/corporate-governance/board-of-directors).~~

1. Approval of the management report, the consolidated financial

statements and the annual financial

~~1/2~~statements for 2023

2. Consultative vote on the Compensation Report 2023

3. Consultative vote on the Sustainability Report 2023

4. Discharge of the Board of Directors and the persons entrusted with management

5. Appropriation of earnings

6. Approval of the compensation of the Board of Directors and the Executive

Committee

6.1 Approval of the maximum aggregate amount of compensation of the

Board of Directors for

the next term of office, i. e. from the Annual General Meeting 2024 to the Annual

General

Meeting 2025

6.2 Approval of the maximum aggregate amount of compensation of the Executive

Committee

for the following financial year, i. e. 2025

7. Elections to the Board of Directors and election of the Chairman of

the Board of Directors

8. Elections to the Compensation Committee

9. Election of the independent proxy

10. Election of the auditors

ABB

is a technology leader in electrification and automation, enabling a

more sustainable and

~~www~~resource-efficient future.~~abb.com~~ The company’s solutions connect engineering know-how and software to optimize

how things are manufactured, moved, powered and operated. Building on over

140 years of excellence,

ABB’s more than 105,000 employees are committed to driving innovations that accelerate industrial

transformation. www.abb.com

—

For more information please

contact:

Media Relations

Phone: +41 43 317 71 11

Email: media.relations@ch.abb.com

Investor Relations

Phone: +41 43 317 71 11

Email: investor.relations@ch.abb.com

ABB Ltd

Affolternstrasse 44

8050 Zurich

Switzerland

NOTICE OF ABB’S ANNUAL

GENERAL MEETING

ON MARCH 21,

2024

2/2

October 1 — December 31, 2023

Name

Date

Type of Instrument

Received*

Purchased

Sold

Price / Instrument

Peter Voser

December 14, 2023

39’000

CHF

37.29

Peter Voser

December 14, 2023

11’000

CHF

37.23

Peter Terwiesch

December 11, 2023

30’360

CHF

36.71

Björn Rosengren

November 15, 2023

360

CHF

27.99

Karin Lepasoon

November 15, 2023

360

CHF

27.99

Morten Wierod

November 15, 2023

360

CHF

27.99

Peter Terwiesch

November 15, 2023

360

CHF

27.99

Tarak Mehta

November 15, 2023

360

CHF

27.99

Gunnar Brock

November 01, 2023

1’924

CHF

32.81

David Constable

November 01, 2023

1’866

CHF

32.81

Frederico Curado

November 01, 2023

3’876

CHF

32.81

Lars Förberg

November 01, 2023

4’628

CHF

32.81

Denise Johnson

November 01, 2023

3’929

CHF

32.81

Jennifer Xin-Zhe Li

November 01, 2023

1’890

CHF

32.81

Geraldine Matchett

November 01, 2023

2’376

CHF

32.81

David Meline

November 01, 2023

2’332

CHF

32.81

Peter Voser

November 01, 2023

17’462

CHF

32.81

Jacob Wallenberg

November 01, 2023

2’624

CHF

32.81

Key:

benefits

SIGNATURES

Pursuant to the requirements of the Securities

Exchange Act of 1934, the registrant

has duly caused this report to be

signed on its behalf by the undersigned,

thereunto duly authorized.

ABB LTD

Date: February 123, 2024.

By:

/s/ Ann-~~Sofie~~Sophie Nordh

Name:

Ann-Sofie Nordh

Title:

Group Senior Vice President and

Head of Investor Relations

Date: February 123, 2024.

By:

/s/ Richard A. Brown

Name:

Richard A. Brown

Title:

Group Senior Vice President and

Chief Counsel Corporate & Finance

Filing Compare · ABB LTD