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 ~~March~~April 2024

Commission File Number 001-16429

ABB Ltd

(Translation of registrant’s name into English)

Affolternstrasse 44, CH-8050, Zurich, Switzerland

(Address of principal executive office)

Indicate by check mark whether

the registrant files or will file

annual reports under cover of Form

20-F or Form 40-F.

Form 20-F

☒

Form 40-F

⬜

Indicate by check mark if the registrant

is submitting the Form 6-K in paper

as permitted by Regulation S-T Rule

101(b)(1):

⬜

Note:

Regulation S-T Rule 101(b)(1) only

permits the submission in paper of

a Form 6-K if submitted solely to provide

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):

annual report to security holders.

⬜

Note:

Regulation S-T Rule 101(b)(7) only

permits the submission in paper of

a Form 6-K if submitted to furnish a

report or

other document that the registrant foreign

private issuer must furnish

and make public under the laws of the

jurisdiction in

which the registrant is incorporated, domiciled

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

or under the rules of the

home country exchange on which

the registrant’s securities are traded, as long as the report

or other document is not a press

release, is not required to be and has

not been distributed to the registrant’s security holders,

and, if discussing a material

event,

has already been the subject of a Form

6-K submission or other Commission

filing on EDGAR.

Indicate by check mark whether

the registrant by furnishing the

information contained in this Form

is also thereby furnishing

the information to the Commission

pursuant to Rule 12g3-2(b) under

the Securities Exchange Act of 1934.

Yes

⬜

☒

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

registrant in connection with Rule 12g3-2(b):

82-

This Form 6-K consists of the following:

Press release issued by ABB Ltd dated

April 18, 2024 titled “Q1 2024 results”.

$1 billion”.

Q1 2024 Financial Information.

Announcements regarding transactions

in ABB Ltd’s Securities made by the directors or the

members of the

Executive Committee.

The information provided by Item

2 above is hereby incorporated by reference

into the Registration Statements

on Form F-3 of

ABB Ltd and ABB Finance (USA) Inc.

(File Nos. 333-223907 and 333-223907-01)

and registration statements on Form

S-8

(File Nos. 333-190180, 333-181583,

333-179472, 333-171971 and

333-129271) each of which was

previously filed with the

Securities and Exchange Commission.

—

~~ABB~~“Against high ~~launches~~comparables, ~~new~~our ~~share~~Q1 ~~buyback~~performance shows the year has started off well with

~~program~~stronger than ofexpected uporder tomomentum, $1record-high ~~billion~~margin and strong cash delivery. This

ismakes us ~~692,486~~confident to nudge up our margin expectation for 2024.”

~~possession of any inside information.~~ Björn Rosengren

~~for~~, CEO ~~the shares will be made in cash.~~

press release.

ABB

transformation. www.abb.com

1/2

—

ZURICH, SWITZERLAND, APRIL

18, 2024

Q1 2024 results

Positive book-to-bill, record-high

margin and

strong cash flow

●

Orders $8,974 million

-5%; comparable

-4%

●

Revenues $7,870 million,

0%; comparable

+2%

●

Income from operations

$1,217 million; margin

15.5%

●

Operational EBITA

$1,417 million;

margin

17.9%

●

Basic EPS $0.49;

-12%

●

Cash flow from operating

activities $726 million;

+157%

—

Q1 2024

First three months

Press Release

Ad hoc Announcement pursuant to Art.

53 Listing Rules of SIX Swiss Exchange

KEY FIGURES

CHANGE

($ millions, unless otherwise indicated)

Q1 2024

Q1 2023

US$

Comparable

Orders

8,974

9,450

-5%

-4%

Revenues

7,870

7,859

Gross Profit

2,935

2,716

as % of revenues

37.3%

34.6%

+2.7 pts

Income from operations

1,217

1,198

Operational EBITA

1,417

1,277

11%

as % of operational revenues

17.9%

16.3%

+1.6 pts

Income from continuing operations, net of tax

914

1,065

-14%

Net income attributable to ABB

905

1,036

-13%

Basic earnings per share ($)

0.49

0.56

-12%

Cash flow from operating activities

726

282

157%

Free cash flow

551

162

240%

For a reconciliation of non-GAAP measures, see “supplemental

reconciliations and definitions” in the attached

Q1 2024 Financial Information.

EPS growth rates are computed using unrounded amounts.

Constant currency (not adjusted for portfolio

changes).

ABB

INTERIM

REPORT

2024

My key take-aways

from the first quarter of

2024 are the better

than expected order

intake of $9 billion, positive

book-to-bill of

1.14 and record-high Operational

EBITA margin as

well as the

free cash flow of $551

million representing a strong

delivery for

a first quarter.

We published our sustainability

report,

where a

highlight was the proof

point of one of our core

customer value

propositions

- reduced greenhouse gas

(GHG) emissions. From

products sold in 2023,

and through their lifecycle,

we enabled

our customers to avoid

74 megatons of GHG emissions.

At the

current total of 139

megatons, we are on a

good path towards

our ambition of helping

customers avoid 600

megatons of CO

₂

emissions throughout

the lifetime of products sold

from 2022 to

2030.

As expected, orders declined

from last year’s record-high

comparable,

however the drop was

limited at 5% (4%

comparable). To

summarize the quarter,

we see a continued

high level of customer

activity in the project

and systems areas,

and I am encouraged

by the positive order development

Electrification’s

short-cycle businesses.

So, while ABB’s total

orders declined in the

first quarter,

I feel even more confident

about 2024 than

I did coming into the year.

It was impressive to see

new record-high order

intake in both

Electrification and Motion

business areas. Process

Automation

orders declined from

the all-time-high comparable,

but

remained fairly consistent

with strong recent quarterly

levels.

the start of this year,

we called the fourth quarter the

trough for

Robotics & Discrete

Automation order level.

This realized,

and

as expected order

intake increased sequentially

However, it

declined sharply year

-on-year on the back of customers

normalizing order patterns

after a pre-buy period.

Revenues remained stable

(up 2% comparable),

with

comparable growth

supported in equal parts by

price and

volumes. I was pleased

to see the positive gross

margin

improvement of

270 basis points to 37.3

%, supported by a

positive development

in all business areas.

A more efficient

execution of slightly

higher volumes and price

contributed to the

160 basis points

increase in Operational

EBITA margin to

the

new record-high of 17.9%.

In my view this is a good

sign that

there is still upside

potential in ABB and we can

make mid-term

improvements within

the new higher margin

target range

announced in November.

The strong cash

flow start to the year positions

us for what we

anticipate to be another

good annual free cash flow

delivery of

at least similar to last

year’s level. Using the cash

to expand

know-how and footprint

through acquisitions is

an important

path to creating long

-term shareholder value.

It was nice to see

the announced acquisition

of SEAM, which would add

energy

asset management

and advisory services to clients

across

industrial and commercial

building markets to the Electrification

Service division.

We have a good target pipeline,

including

some deals which are

slightly more sizeable

than most of the

recent announcements.

The share buyback program

is a tool

we use to distribute

residual excess cash, and

we announced

another annual program

of up to $1 billion which

launched on

April 1. The size of

the program is consistent

with last year’s,

although the time frame

for execution is shorter

as it runs until

the end of January

2025,

to align with the announcement

of Q4

2024 results and 2024

dividend proposal.

During the quarter

we announced my decision

to retire as CEO

from ABB. I remain

fully committed until the end

of July when

Morten Wierod takes

the reins, and thereafter

I will support the

transition in an advisory

role until the end of the

year. I am

happy to see Morten

take this step and I am confident

that the

ABB Way operating

model will be even

further engrained in our

ways of working under

his already proven leadership.

While we

regret to see him go,

I want to congratulate

Tarak

Mehta on his

new opportunity

outside of ABB. Tarak

has made an

outstanding contribution

to the success of our company

and I

wish him all the best

for this next step on his

journey. The

process to find new

leaders to the business

areas Electrification

and Motion is ongoing

and Morten looks to have

a full team in

place when he takes

office in August.

Björn Rosengren

CEO

In the

second quarter of 2024

, we anticipate a mid-single

-digit

comparable revenue

growth year-on-year and the

Operational

EBITA margin

to be slightly higher

than in the first quarter 2024.

In full-year 2024

, we expect a positive book

-to-bill, comparable

revenue growth to be

about 5% and the Operational

EBITA

margin to be about

18%.

CEO summary

Outlook

ABB

INTERIM

REPORT

2024

The first quarter order

intake of $8,974

million represents one of

the strongest quarterly

levels for ABB Group, yet

orders declined

by 5% (4% comparable)

from last year’s record-high. Two

business areas even

improved from last year’s all-time-highs

with Motion’s order

growth at 2% (1% comparable)

and

Electrification at a strong

6% (8% comparable).

In Electrification,

the year-on-year

improvement was supported

by a positive

development in both

the long- and short-cycle businesses.

Process Automation

the underlying market activity

remained

robust,

but year-on-year orders declined

by 20%

(20%

comparable) with growth

challenged by the record-high

comparable and

the timing of orders in the

current quarter.

Robotics & Discrete

Automation, orders declined

sharply by 30%

(30%

comparable) due to the

still on-going normalization

order patterns in discrete

automation and a softer

robotics

market.

Orders in the Americas

dropped by 3% (3% comparable)

as a

positive comparable development

in the United States was

offset by declines

elsewhere and mainly due

to the timing of

large orders. Europe

declined by 8% (9% comparable)

weighed

down by important

markets like Germany and

Italy.

Asia, Middle

East and Africa declined

by 4% (0% comparable)

where the

strong comparable

development in countries

like India, Japan

and Australia offset

a sharp decline in China.

In transport & infrastructure,

there were positive developments

marine, ports and rail

Industrial areas with particularly

strong development in

all regions

were utilities and datacenters.

Orders in the buildings

segment improved overall,

due to the

combined impact from

a positive development

in the commercial

area driven by the United

States, while the residential

segment

remained stable

in the US and softened

slightly in other regions.

In the robotics-related

segments, orders declined

in the

automotive,

general industry and consumer

-related segments.

The machine builder segment

declined as customers normalized

order patterns after

earlier pre-buys.

On a very challenging

comparable, orders declined

in the large

process-related segments

of oil & gas, pulp & paper

and mining.

However,

a positive development

was recorded in the still

less

sizeable low carbon-related

areas such as nuclear,

carbon capture,

hydrogen etc. The underlying

market sentiment remained

robust

across the board.

Revenues remained stable

(up 2% comparable) and amounted

$7,870

million. On a business area

level there were variances,

with

strong growth in

Electrification and Process

Automation, while

Motion and Robotics

& Discrete Automation declined.

Group

revenues were supported

by execution of the strong

order backlog

which more than offset

weakness in parts of

the short-cycle

businesses. In total,

price and volume contributed

in equal parts to

comparable growth.

Revenues by region

($ in millions,

unless otherwise

indicated)

CHANGE

Q1 2024

Q1 2023

US$

Comparable

Europe

2,748

2,872

-4%

-5%

The Americas

2,789

2,653

Asia, Middle East

and Africa

2,333

2,334

ABB Group

7,870

7,859

Orders by region

($ in millions,

unless otherwise

indicated)

CHANGE

Q1 2024

Q1 2023

US$

Comparable

Europe

3,298

3,582

-8%

-9%

The Americas

2,904

2,985

-3%

Asia, Middle East

and Africa

2,772

2,883

-4%

ABB Group

8,974

9,450

-5%

-4%

Growth

Change year-on-year

Orders

Revenues

Comparable

-4%

-1%

Portfolio changes

-1%

Total

-5%

Orders and revenues

ABB

INTERIM

REPORT

2024

Gross profit

Gross profit increased

by 8% (9% constant currency)

$2,935

million, reflecting a gross

margin improvement of 270

basis

points to 37.3%. Gross margin

improved in all four business

areas.

Income from operations

amounted to $1,217 million

and improved

by 2% year-on-year.

Compared with the last year

period,

the

earnings improvement

was supported by a strong

er operational

performance partially

offset by higher expenses

related to the ABB

Way transformation

program and adverse currency

hedging

impacts. Margin on

Income from operations

was 15.5%, up by

30 basis points year

-on-year.

Operational EBITA

Despite limited revenue

growth, the Operational

EBITA improved

by 11%

year-on-year to $1,417

million and the margin increased

by 160 basis points

to a new all-time-high of 17.

9%. Contribution

from operational

leverage on slightly higher

volumes, a positive

price impact and effects

from continuous efficiency

measures more

than offset the higher

expenses related to labor

costs, Research &

development (R&D) and

Selling, general and administrative

(SG&A) expenses.

Operational EBITA in

Corporate and

Other

amounted to -$1

18 million, of which -$6

million related to the

underlying Corporate

costs. The remaining

-$54

million related to

the E-mobility business

where operational performance

was

hampered by the ongoing

reorganization to ensure

a more focused

portfolio, and some

inventory-related provisions.

While E-mobility

is on track towards

the improved portfolio, the

financial benefits will

not be visible until towards

the end of 2024.

Finance net

Net finance income

contributed with a positive

$20 million, an

improvement from

last year’s expense of $21

million.

The year-on-

year improvement

is due to a combination

of a lower net debt

position and favorable

mix of interest rates between

borrowings and

cash deposits.

Income tax

Income tax expense

was $339 million with an

effective tax rate of

27%. This is higher than

last year’s rate of 10%, which

was low due

to favorable resolution

of a prior year tax matter

relating to the

divestment of the

Power Grids business.

Net income and earnings

per share

Net income attributable

to ABB was $905 million,

representing a

reduction of 13% from

last year, as

the improved operational

performance this year

did not offset last

year’s positive benefits from

the low tax rate.

This resulted in basic earnings

per share of $0.49,

down from $0.56 in the

last year period.

Operational EBITA

($ in millions)

Q1 2024

Q1 2023

Corporate and Other

E-mobility

(54)

(28)

Corporate costs, intersegment

eliminations and other

(64)

(83)

Total

(118)

(111)

Majority of which relates to underlying corporate

Earnings

ABB

INTERIM

REPORT

2024

Net working capital

amounted to $3,588 million,

decreasing

year-on-year from $4,164

million as higher receivables

and

contract assets were

more than offset by higher

customer

advances,

and accounts payables.

Net working capital as a

percentage of revenues

was 11.2%

which declined from

13.9% one year ago.

Capital expenditures

Purchases of property,

plant and equipment and

intangible

assets amounted to

$181 million.

Net debt

amounted to $2,086 million

at the end of the quarter

and decreased from $3,826

million year-on-year.

The

sequential increase

from $1,991 million was

mainly due to the

initial dividend payment.

Cash flows

Cash flow from operating

activities was $726

million,

representing a steep

year-on-year increase

from

$282 million. Three

out of four business areas

increased cash

flow from operating activities.

The increase was driven

by better

operational performance

and a lower build-up of

net working

capital year-on-year mostly

linked to trade receivables

and

inventories.

Share buyback program

ABB has completed

its share buyback program that

was

launched in April 2023.

Through this buyback program,

ABB

repurchased a total

of 21,387,687 shares –

equivalent to 1.09%

of its issued share

capital at launch of the buyback

program –

for a total amount of approximately

$0.83 billion. A new share

buyback program of up

to $1 billion was launched

on April 1,

2024, and will run to 31

January,

2025. ABB’s total

number of

issued shares, including

shares held in treasury,

amounts to

1,882,002,575.

($ in millions,

unless otherwise indicated)

Mar. 31

2024

Mar. 31

2023

Dec. 31

2023

Short term debt and current

maturities of long-term debt

1,957

3,433

2,607

Long-term debt

6,346

5,230

5,221

Total debt

8,303

8,663

7,828

Cash & equivalents

4,102

3,438

3,891

Restricted cash - current

Marketable securities and

short-term investments

2,097

1,380

1,928

Cash and marketable securities

6,217

4,837

5,837

Net debt (cash)*

2,086

3,826

1,991

Net debt (cash)* to EBITDA ratio

0.4

0.9

0.4

Net debt (cash)* to Equity ratio

0.16

0.30

0.14

At March 31, 2024, March, 31, 2023 and Dec. 31, 2023,

net debt(cash) excludes net pension

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

$(191) million, respectively.

Balance sheet & Cash flow

ABB

INTERIM

REPORT

2024

Orders and revenues

The first quarter order

intake of $4,392

million represents a

new record level, and

increased by 6% (8%

comparable)

from last year.

Continued robust demand

for the project and

systems businesses

which this quarter was coupled

with

strong year-on-year growth

in the short-cycle businesses.

The book-to-bill ratio

was 1.19.

●

Orders remained stable

or increased in most customer

segments with particular

strength in datacenters

and

utilities. The overall

buildings segment improved,

as a

positive development

in the commercial area

driven by

the United States more

than offset a slight weakness

the residential segment

which was stable in the

US, and

softened slightly

in other regions.

●

From a geographical

perspective order intake

improved in

all three regions.

Europe was up by 3% (2% comparable).

Growth in the Americas

was 9% (11%

comparable) with

the United States outpacing

the region at 13% (17%

comparable). In Asia,

Middle East and Africa orders

improved by 6% (11%

comparable) with strong growth

countries like India

offsetting a slight drop

in China of 7%

(2% comparable).

●

Revenues increased

by 3% (6% comparable)

$3,680 million with a positive

development in most

divisions. Higher volumes

were the main driver

comparable growth,

with the added support from

slightly

increased pricing. Execution

of the order backlog

combined with higher

demand in the short-cycle

businesses supported

the quarterly revenue

generation.

Profit

Record-high Operational

EBITA of $826

million and all-

time-high Operational

EBITA margin of

22.4%, up by 340

basis points year-on

-year.

●

Operational leverage

on higher volumes and

impact from

continuous improvement

measures were the key drivers

to the higher margin

year-on-year.

●

A positive price impact

more than offset

higher salary-

related costs as well as

an increase in R&D and SG&A

spend.

●

Margins improved

or remained stable in all

divisions.

CHANGE

($ millions, unless otherwise indicated)

Q1 2024

Q1 2023

US$

Comparable

Orders

4,392

4,141

Order backlog

7,389

7,101

12%

Revenues

3,680

3,590

Operational EBITA

826

677

22%

as % of operational revenues

22.4%

19.0%

+3.4 pts

Cash flow from operating activities

547

395

38%

No. of employees (FTE equiv.)

50,700

51,130

Growth

Change year-on-year

Orders

Revenues

Comparable

Portfolio changes

-2%

-3%

Total

—

Electrification

ABB

INTERIM

REPORT

2024

Orders and revenues

Robust customer activity

in the projects-

and systems-related

businesses offset

some weakness in the short

-cycle areas. In

total, a new all-time-high

order level of $2,303

million was

achieved, representing

an improvement of 2% (1%

comparable) from last

year. Book-to-bill

was 1.26. Some initial

encouraging sequential

trading signs in the short

-cycle

businesses were noted.

●

The Traction division

was the engine for order growth,

including a large order

of $150 million to supply

complete

traction packages for

65 new six-car passenger

trains for

the Queensland Train

Manufacturing Program. The

new

trains are to be operational

in time for the Brisbane

2032

Olympics.

●

Besides the rail segment,

a stronger order momentum

was

noted in the process

-related segments of oil

& gas and

power generation including

grid stabilization equipment.

Some slowness

from last year’s high level was

noted in

food & beverage, pulp

& paper,

metals and chemicals.

HVAC remained

muted.

●

Orders in Asia, Middle

East and Africa were up

by 16% (21%

comparable), supported

by the large order in

Australia, while

China declined by 12%

(8% comparable). The Americas

softened by 1% (4% comparable)

including the decline of

(6% comparable) in

the United States. Europe

declined by

8% (11%

comparable).

●

Revenues amounted to

$1,829

million and declined by

(6% comparable) due

to weakness in the short

-cycle

businesses and parts

of the backlog execution

impacted by

some delivery timing

changes.

Profit

Operational EBITA

of $343

million declined by 6% and

the

Operational EBITA

margin softened

by 40 basis points to 18.5%.

●

Operational leverage

on the lower production

volumes in the

short-cycle businesses

weighed on results.

●

The positive price impact

and the stringent cost

focus more

than offset the adverse

impacts from the higher

expenses

related to salaries,

R&D and SG&A, year-on-year.

Growth

Change year-on-year

Orders

Revenues

Comparable

-6%

-1%

Portfolio changes

Total

-6%

—

Motion

CHANGE

($ millions, unless otherwise indicated)

Q1 2024

Q1 2023

US$

Comparable

Orders

2,303

2,262

Order backlog

5,612

5,102

10%

11%

Revenues

1,829

1,940

-6%

Operational EBITA

343

366

-6%

as % of operational revenues

18.5%

18.9%

-0.4 pts

Cash flow from operating activities

352

149

136%

No. of employees (FTE equiv.)

22,380

21,000

ABB

INTERIM

REPORT

2024

Orders and revenues

The underlying markets

remained buoyant. However,

last

year’s record high comparable

was strongly supported

the timing of large orders

received, and in contrast

some

timing delay in orders

in the current quarter

were noted.

Order intake declined

by 20% (20% comparable)

and

amounted to $1,697

million, a level broadly similar

to recent

quarters. Book-to-bill

was positive at 1.06.

●

On a very challenging

comparable, orders declined

in the

large process-related

segments oil & gas, pulp

& paper

and mining. However,

a positive development

was

recorded for ports and

in the less sizeable low

carbon-

related areas such

as nuclear, carbon

capture, hydrogen

etc. The underlying market

sentiment remained robust

across the board.

●

On execution of the

high order backlog, revenues

increased strongly

at 11% (12%

comparable) and

amounted to $1,601

million with a positive contribution

from all divisions,

supported by strong contribution

from

the service business

Profit

With support from all

divisions, the Operational

EBITA

margin improved by 140

basis points to the

new record-

high level of 15.6%

and the Operational EBITA

improved by

23% to $253

million.

●

Profitability was supported

by the mix in execution

of the

order backlog which host

a higher gross margin, whilst

keeping SG&A expenses

on a stable percentage

revenues.

●

A slight positive price

impact offset increased

salary-

related expenses, year

-on-year.

●

Operational EBITA

margin improved in

all divisions with

all now in the “teens”

margin range.

CHANGE

($ millions, unless otherwise indicated)

Q1 2024

Q1 2023

US$

Comparable

Orders

1,697

2,113

-20%

Order backlog

7,343

6,893

Revenues

1,601

1,436

11%

12%

Operational EBITA

253

205

23%

as % of operational revenues

15.6%

14.2%

+1.4 pts

Cash flow from operating activities

229

112

104%

No. of employees (FTE equiv.)

21,340

20,500

Growth

Change year-on-year

Orders

Revenues

Comparable

-20%

12%

-1%

Portfolio changes

Total

-20%

11%

—

Process Automation

ABB

INTERIM

REPORT

2024

Orders and revenues

As anticipated, order

intake improved from

the fourth quarter,

with the strongest increase

recorded in the Robotics division.

However,

total orders declined

by 30% (30% comparable)

from last year’s high comparable

and amounted to $701

million.

●

Orders declined

at a double-digit rate in both divisions,

although more pronounced

in Machine Automation.

●

The

Robotics

demand declined

in all customer segments

year-on-year.

The sequential pattern

was encouraging and

inventory levels in the

channels did seemingly

align with the

current market situation

towards the end of quarter.

●

Machine Automation

customers held

off placing orders

while awaiting deliveries

from the recent pre-buy period.

Order backlog remains

high and supports

deliveries into the

latter part of the summer.

●

From a geographical

perspective, orders in

the Americas

declined by 24%

(26% comparable).

The decline in Europe

was 31% (32% comparable).

In Asia, Middle East and

Africa

orders

declined by 32% (28%

comparable), hampered

China being down

by 46%

(43% comparable).

●

Revenues of $864

million represented a decline

of 8% (7%

comparable) from last

year, including

a positive price impact.

This is the combined

effect of a strong

increase in the Machine

Automation division

executing the order backlog;

and a decline in

the larger robotics division

where the order backlog has

normalized and the

short-cycle business was under

pressure.

Profit

Operational leverage

on lower volumes put

pressure on the

Operational EBITA

which declined by

19%

to $113

million and the

Operational EBITA

margin which dropped

by 170 basis points year-

on-year to 13.2%.

●

A solid execution of

higher volumes resulted

in improved

profitability in the

Machine Automation business.

This was

however more than

offset by lower production

volumes

triggering underabsorption

of fixed costs in the short

-cycle

Robotics business.

●

positive price contribution

from order backlog deliveries

and

the efficiency

measures activated as a response

to the soft

market climate broadly

offset adverse impacts

from increased

labor,

SG&A and R&D expenses

CHANGE

($ millions, unless otherwise indicated)

Q1 2024

Q1 2023

US$

Comparable

Orders

701

1,001

-30%

Order backlog

1,918

2,782

-31%

-29%

Revenues

864

937

-8%

-7%

Operational EBITA

113

140

-19%

as % of operational revenues

13.2%

14.9%

-1.7 pts

Cash flow from operating activities

130

-27%

No. of employees (FTE equiv.)

11,380

10,850

Growth

Change year-on-year

Orders

Revenues

Comparable

-30%

-7%

-1%

Portfolio changes

Total

-30%

-8%

—

Robotics & Discrete Automation

ABB

INTERIM

REPORT

2024

Events from the Quarter

●

ABB and CERN, the

European Laboratory

for Particle

Physics, have collaborated

on a strategic research

partnership to enhance

energy efficiency

in cooling and

ventilation systems

at CERN’s particle physics

institute in

Geneva, Switzerland.

Through energy efficiency

audits,

they identified a 17.4%

energy-saving potential across

fleet of 800 motors.

This translates to annual energy

savings of up to 31 gigawatt

-hours (GWh) - enough

power over 18,000

European households and

avoid 4

kilotonnes of CO

₂

emissions. The initiative

surpassed

CERN’s goal of reducing

cooling and ventilation

energy

use by 10-15%.

●

SEV, the

main electricity supplier

in the Faroe Islands,

contracted ABB to enhance

grid stability during the

transition to green energy.

ABB is providing synchronous

condenser (SC) technology

to stabilize the power grid

fossil-fueled plants

are phased out in favor

of renewable

generation. The latest

SC will be deployed on

the island

of Borðoy where

it will reinforce the local electricity

supply

for around 5,000 people.

●

ABB will deliver

a shore-to-ship power supply solution

allowing DEME’s diverse

fleet to avoid emissions

when

berthed in the port

of Vlissingen, the Netherlands.

The

technology supports

DEME’s long-term decarbonization

strategy,

providing flexibility

to adapt to changing grid

capabilities. ABB will install

shore power for suitably

equipped vessels calling

at Vlissingen’s

DEME base by

the end of 2024,

as part of a government-supported

initiative stimulating the

use of shore power facilities

Dutch seaports. Connecting

to shore power while

at berth

is expected to become

mandatory at main EU ports

from

2030 under FuelEU Maritime

regulations.

●

ABB Electrification’s

facility in Vaasa

has achieved a 1,400t

e reduction in Scope

1 & 2 emissions since

2019. This

progress is driven by

a company-wide culture of

sustainability,

employee-led energy savings,

and

investment in renewable

energy sourcing. The

teams at

ABB Vaasa

have contributed over

100 energy-saving ideas,

resulting in a 20

percent reduction in consumption

(equivalent to 1,082

MWh) since 2019. Automation,

smart

energy solutions, and

a commitment to net

zero have

played pivotal roles.

ABB Vaasa, a

global center for

electrical low-voltage

switches and protection

relays,

exemplifies empowered

employees leading the way

toward

sustainability.

●

In March,

ABB teams across the

world celebrated

International Women’s

Day and Women’s

History Month

with numerous events,

mentor programs, panel

discussions, networking

sessions and campaigns

that

highlighted the importance

of gender equality,

whilst

promoting initiatives

to foster inclusion in the

workplace and

society at large.

Q1 outcome

●

28%

reduction year-on-year

of CO

₂

e emissions due to a

shift to green electricity and a lower

use of fossil fuels in

our operations.

●

7% decrease year-on-year in

LTIFR,

continuing to remain

at a low level.

●

2.5%-points increase year-on-year in

the proportion of

women in senior management

roles, demonstrating

strong progress towards our target

—

Sustainability

Q1 2024

Q1 2023

CHANGE

12M ROLLING

₂

e own operations emissions,

Ktons scope 1 and 2

-28%

143

Lost Time Injury Frequency Rate (LTIFR),

frequency / 200,000 working hours

0.14

0.15

-7%

0.13

Proportion of women in senior management

roles in %

21.5

19.0

+2.5 pts

20.8

₂

equivalent emissions from site, energy use, SF

₆

and fleet, previous quarter

Current quarter Includes all incidents reported until

April 5, 2024

ABB

INTERIM

REPORT

2024

During Q1 2024

●

On February 23,

ABB announced that Morten

Wierod will

succeed Björn Rosengren

as CEO on August 1, 2024.

From August 1, 2024,

until his retirement at

the end of

the year,

Björn Rosengren will advise

and assist Morten

Wierod and the Executive

Committee to ensure

seamless transition.

Morten Wierod joined ABB in 1998

and has been serving

as a member of ABB's Executive

Committee since 2019,

currently as President of the

Electrification Business

Area and previously as

President

of the Motion Business

Area. The search process

for the

position of President,

Electrification Business Area

has

been launched.

●

On March 21, the Annual

General Meeting elected two

new Board members,

namely Johan Forssell and

Mats

Rahmström. They replace

Jacob Wallenberg

and Gunnar

Brock who decided

not to stand for re-election.

●

On March 21, ABB announced

that the Board of

Directors has approved

a new share buyback program

for capital reduction

purposes of up to

$1 billion. This new

program launched on April

1. It will

be executed on a second

trading line on the SIX Swiss

Exchange and is planned

to run until January 31,

2025,

to adjust the timing of

its share buyback cycle

to align

with the announcement

of its Q4 2024 results and

2024

dividend proposal.

●

On March 27, ABB announced

that Tarak

Mehta,

President Motion

Business Area and Member

of the

Executive Committee,

has decided to leave

ABB to

accept the role as CEO of

another company.

Tarak

will

leave ABB at the end

of July this year.

The search

process for the position

of President, Motion Business

Area has been launched.

Significant events

ABB

INTERIM

REPORT

2024

Divestments

Company/unit

Closing date

Revenues, $ in

millions

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

Note: comparable growth calculation includes acquisitions

and divestments with revenues of greater than

$50 million.

Represents the estimated revenues for the last fiscal

year prior to the announcement of the respective

acquisition/divestment unless otherwise stated.

Additional 2024 guidance

($ in millions, unless otherwise stated)

FY 2024

Net finance expenses

↓

~(50)

from ~(120)

Effective tax rate

~25%

Capital Expenditures

~(900)

($ in millions, unless otherwise stated)

FY 2024

Q2 2024

Corporate and Other Operational EBITA

~(300)

~(75)

Non-operating items

Acquisition-related amortization

~(210)

~(60)

Restructuring and related

~(200)

~(60)

ABB Way transformation

↑

~(200)

~(50)

from ~(180)

Additional figures

ABB Group

Q1 2023

Q2 2023

Q3 2023

Q4 2023

FY 2023

Q1 2024

EBITDA, $ in million

1,389

1,494

1,453

1,315

5,651

1,418

Return on Capital Employed, %

n.a.

21.10

n.a.

Net debt/Equity

0.30

0.31

0.21

0.14

0.16

Net debt/ EBITDA 12M rolling

0.9

0.8

0.5

0.4

Net working capital, % of 12M rolling revenues

13.9%

14.7%

12.8%

10.2%

11.2%

Earnings per share, basic, $

0.56

0.49

0.48

0.50

2.02

0.49

Earnings per share, diluted, $

0.55

0.48

0.47

0.50

2.01

0.49

Dividend per share, CHF

n.a.

0.87

n.a.

Share price at the end of period, CHF

31.37

35.18

32.80

37.30

41.89

Number of employees (FTE equivalents)

106,170

108,320

107,430

107,870

108,700

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

1,862

1,860

1,849

1,842

1,851

Excludes one project estimated to a total of ~$100

million, that is ongoing in the non-core business. Exact

exit timing is difficult to assess due to legal proceedings

etc.

Excludes Operational EBITA from E-mobility business.

Includes restructuring and restructuring-related as

well as separation and integration costs.

Excludes the impact of acquisitions or divestments

or any significant non-operational items.

Acquisitions

Company/unit

Closing date

Revenues, $ in

millions

No. of employees

2024

Process Automation

Real Tech Water

1-Feb

Robotics & Discrete Automation

Meshmind

1-Feb

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

Acquisitions and divestments, last twelve months

ABB

INTERIM

REPORT

2024

For additional information please contact:

Media Relations

Phone: +41 43 317

71 11

~~Phone~~Email: ~~+41 43 317 71 11~~

~~Email:~~ media.relations@ch.abb.com

Investor Relations

Phone: +41 43 317

71 11

~~Phone~~Email: ~~+41 43 317 71 11~~

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

ABB Ltd

Affolternstrasse

Affolternstrasse 44

8050 Zurich

Switzerland

~~2/2~~Financial calendar

2024

July 18

Q2 2024 results

October 17

Q3 2024 results

This press release

includes forward-looking information

and

statements as well

as other statements concerning

the

outlook for our business,

including those in the sections

this release titled “CEO summary,”

“Outlook,” and

“Sustainability”. These

statements are based on current

expectations, estimates

and projections about the

factors

that may affect

our future performance,

including global

economic conditions,

the economic conditions

of the

regions and industries

that are major markets

for ABB.

These expectations, estimates

and projections are generally

identifiable by statements

containing words such as

“anticipates,” “expects,”

“estimates,” “plans,” “targets

,”

“guidance,”

“likely” or similar expressions.

However, there

are many risks and

uncertainties, many of which

are beyond

our control, that could

cause our actual results

to differ

materially from the

forward-looking information

and

statements

made in this press

release and which could

affect our ability

to achieve any or all of

our stated targets. Some important

factors that could cause

such differences include,

among

others, business risks

associated with the volatile

global

economic environment

and political conditions,

costs

associated with compliance

activities, market acceptance

new products and services,

changes in governmental

regulations and currency

exchange rates and such

other

factors as may be discussed

from time to time in

ABB Ltd’s

filings with the U.S. Securities

and Exchange Commission,

including its Annual

Reports on Form 20-F.

Although ABB

Ltd believes that

its expectations reflected in any

such

forward looking statement

are based upon reasonable

assumptions, it can

give no assurance that those

expectations will be

achieved.

The Q1 2024

results press release

and presentation slides

are available on the

ABB News Center at

www.abb.com/news

and on the Investor

Relations

homepage at www.abb.com/investorrelations.

A conference call and

webcast for analysts

and investors is

scheduled to begin

at 10:00 a.m. CET.

pre-register for the conference

call or to join the

webcast, please

refer to the ABB website:

www.abb.com/investorrelations.

The recorded session

will be available after

the event on

ABB’s website.

Important notice about forward-looking information

Q1 results presentation on April 18, 2024

ABB

is a technology leader

in electrification and automation,

enabling a more sustainable

and resource-efficient

future. The

company’s solutions

connect engineering know

-how and software to

optimize how things are

manufactured, moved, powered

and

operated. Building on

over 140 years of excellence,

ABB’s more than

105,000 employees are

committed to driving innovations

that

accelerate industrial

transformation.

Q1 2024 FINANCIAL INFORMATION

April 18, 2024

Q1 2024

Financial information

Q1 2024 FINANCIAL INFORMATION

—

Financial

Information

Contents

─ 05

Key Figures

06 ─

Consolidated Financial Information

(unaudited)

28 ─

Supplemental Reconciliations and Definitions

Q1 2024 FINANCIAL INFORMATION

—

Key Figures

CHANGE

($ in millions, unless otherwise indicated)

Q1 2024

Q1 2023

US$

Comparable

(1)

Orders

8,974

9,450

-5%

-4%

Order backlog (end March)

22,015

21,607

Revenues

7,870

7,859

Gross Profit

2,935

2,716

as % of revenues

37.3%

34.6%

+2.7 pts

Income from operations

1,217

1,198

Operational EBITA

(1)

1,417

1,277

11%

(2)

as % of operational revenues

(1)

17.9%

16.3%

+1.6 pts

Income from continuing operations, net of tax

914

1,065

-14%

Net income attributable to ABB

905

1,036

-13%

Basic earnings per share ($)

0.49

0.56

-12%

(3)

Cash flow from operating activities

726

282

157%

Free cash flow

(1)

551

162

240%

(1)

For a reconciliation

of non-GAAP measures

see “

Supplemental

Reconciliations

and Definitions

” on page 28.

(2)

Constant currency

(not adjusted

for portfolio

changes).

(3)

EPS growth rates

are computed

using unrounded

amounts.

Q1 2024 FINANCIAL INFORMATION

CHANGE

($ in millions, unless otherwise indicated)

Q1 2024

Q1 2023

US$

Local

Comparable

Orders

ABB Group

8,974

9,450

-5%

-4%

Electrification

4,392

4,141

Motion

2,303

2,262

Process Automation

1,697

2,113

-20%

Robotics & Discrete Automation

701

1,001

-30%

Corporate and Other

142

196

Intersegment eliminations

(261)

(263)

Order backlog (end March)

ABB Group

22,015

21,607

Electrification

7,389

7,101

12%

Motion

5,612

5,102

10%

11%

Process Automation

7,343

6,893

Robotics & Discrete Automation

1,918

2,782

-31%

-29%

Corporate and Other

(incl. intersegment eliminations)

(247)

(271)

Revenues

ABB Group

7,870

7,859

Electrification

3,680

3,590

Motion

1,829

1,940

-6%

-5%

-6%

Process Automation

1,601

1,436

11%

12%

Robotics & Discrete Automation

864

937

-8%

-7%

Corporate and Other

125

169

Intersegment eliminations

(229)

(213)

Income from operations

ABB Group

1,217

1,198

Electrification

769

655

Motion

301

353

Process Automation

234

200

Robotics & Discrete Automation

115

Corporate and Other

(incl. intersegment eliminations)

(178)

(125)

Income from operations %

ABB Group

15.5%

15.2%

Electrification

20.9%

18.2%

Motion

16.5%

18.2%

Process Automation

14.6%

13.9%

Robotics & Discrete Automation

10.5%

12.3%

Operational EBITA

ABB Group

1,417

1,277

11%

Electrification

826

677

22%

23%

Motion

343

366

-6%

Process Automation

253

205

23%

Robotics & Discrete Automation

113

140

-19%

-18%

Corporate and Other

(incl. intersegment eliminations)

(118)

(111)

Operational EBITA %

ABB Group

17.9%

16.3%

Electrification

22.4%

19.0%

Motion

18.5%

18.9%

Process Automation

15.6%

14.2%

Robotics & Discrete Automation

13.2%

14.9%

Cash flow from operating activities

ABB Group

726

282

Electrification

547

395

Motion

352

149

Process Automation

229

112

Robotics & Discrete Automation

130

Corporate and Other

(incl. intersegment eliminations)

(497)

(504)

Q1 2024 FINANCIAL INFORMATION

Operational EBITA

Process

Robotics & Discrete

ABB

~~transformation. www.abb.com~~ Electrification

Motion

Automation

($ in millions, unless otherwise indicated)

Q1 24

Q1 23

Q1 24

Q1 23

Q1 24

Q1 23

Q1 24

Q1 23

Q1 24

Q1 23

Revenues

7,870

7,859

3,680

3,590

1,829

1,940

1,601

1,436

864

937

Foreign exchange/commodity timing

differences in total revenues

(16)

(22)

–

(5)

Operational revenues

7,935

7,843

3,693

3,568

1,858

1,940

1,626

1,446

859

938

Income from operations

1,217

1,198

769

655

301

353

234

200

115

Acquisition-related amortization

Restructuring, related and

implementation costs

(1)

–

Changes in obligations related to

divested businesses

–

Gains and losses from sale of businesses

–

Acquisition- and divestment-related

expenses and integration costs

–

Certain other non-operational items

(1)

–

Foreign exchange/commodity timing

differences in income from operations

(24)

(18)

(2)

(1)

(2)

Operational EBITA

1,417

1,277

826

677

343

366

253

205

113

140

Operational EBITA margin (%)

17.9%

16.3%

22.4%

19.0%

18.5%

18.9%

15.6%

14.2%

13.2%

14.9%

(1)

Includes impairment of certain assets.

Depreciation and Amortization

Process

Robotics & Discrete

ABB

Electrification

Motion

Automation

($ in millions)

Q1 24

Q1 23

Q1 24

Q1 23

Q1 24

Q1 23

Q1 24

Q1 23

Q1 24

Q1 23

Depreciation

133

125

Amortization

including total acquisition-related amortization of:

Orders received and revenues by region

($ in millions, unless otherwise indicated)

Orders received

CHANGE

Revenues

CHANGE

Com-

Q1 24

Q1 23

US$

Local

parable

Q1 24

Q1 23

US$

Local

parable

Europe

3,298

3,582

-8%

-9%

2,748

2,872

-4%

-6%

-5%

The Americas

2,904

2,985

-3%

2,789

2,653

of which United States

2,139

2,130

2,110

1,984

10%

Asia, Middle East and Africa

2,772

2,883

-4%

2,333

2,334

of which China

1,050

1,355

-23%

-19%

-18%

998

1,155

-14%

-9%

ABB Group

8,974

9,450

-5%

-4%

7,870

7,859

Q1 2024 FINANCIAL INFORMATION

—

~~Media~~Consolidated Financial ~~Relations~~Information

~~Phone:~~ABB ~~+41~~Ltd 43Consolidated Income ~~317~~Statements 71(unaudited) 11

~~Email:~~Three ~~media.relations@ch.abb.com~~months ended

~~Investor~~($ ~~Relations~~in millions, except per share data in $)

~~Phone:~~Mar. ~~+41~~31, 432024 ~~317 71 11~~

~~Email: investor~~Mar.~~relations@ch.abb.com~~ 31, 2023

Sales of products

6,503

6,644

Sales of services and other

1,367

1,215

Total revenues

7,870

7,859

Cost of sales of products

(4,145)

(4,418)

Cost of services and other

(790)

(725)

Total cost of sales

(4,935)

(5,143)

Gross profit

2,935

2,716

Selling, general and administrative expenses

(1,381)

(1,339)

Non-order related research and development expenses

(363)

(304)

Other income (expense), net

125

Income from operations

1,217

1,198

Interest and dividend income

Interest and other finance expense

(37)

(61)

Non-operational pension (cost) credit

Income from continuing operations before taxes

1,253

1,184

Income tax expense

(339)

(119)

Income from continuing operations, net of

tax

914

1,065

Loss from discontinued operations, net of tax

(1)

(5)

Net income

913

1,060

Net income attributable to noncontrolling interests and redeemable noncontrolling

interests

(8)

(24)

Net income attributable to ABB

905

1,036

Amounts attributable to ABB shareholders:

Income from continuing operations, net of tax

906

1,041

Loss from discontinued operations, net of tax

(1)

(5)

Net income

905

1,036

Basic earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax

0.49

0.56

Loss from discontinued operations, net of tax

–

Net income

0.49

0.56

Diluted earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax

0.49

0.56

Loss from discontinued operations, net of tax

–

Net income

0.49

0.55

Weighted-average number of shares outstanding

(in millions) used to compute:

Basic earnings per share attributable to ABB shareholders

1,839

1,861

Diluted earnings per share attributable to ABB shareholders

1,852

1,874

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

See Notes to the Consolidated Financial Information

Q1 2024 FINANCIAL INFORMATION

—

ABB Ltd Condensed Consolidated Statements of Comprehensive

Income (unaudited)

Three months ended

($ in millions)

Mar. 31, 2024

Mar. 31, 2023

Total comprehensive income, net of

tax

1,063

1,153

Total comprehensive (income)

loss attributable to noncontrolling interests and

redeemable noncontrolling interests, net of tax

(30)

Total comprehensive income attributable

to ABB shareholders, net of tax

1,071

1,123

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

See Notes to the Consolidated Financial Information

Q1 2024 FINANCIAL INFORMATION

—

ABB Ltd Consolidated Balance Sheets (unaudited)

($ in millions)

Mar. 31, 2024

Dec. 31, 2023

Cash and equivalents

4,102

3,891

Restricted cash

Marketable securities and short-term investments

2,097

1,928

Receivables, net

7,385

7,446

Contract assets

1,135

1,090

Inventories, net

6,170

6,149

Prepaid expenses

314

235

Other current assets

563

520

Total current assets

21,784

21,277

Property, plant and equipment, net

4,047

4,142

Operating lease right-of-use assets

863

893

Investments in equity-accounted companies

178

187

Prepaid pension and other employee benefits

755

780

Intangible assets, net

1,128

1,223

Goodwill

10,494

10,561

Deferred taxes

1,375

1,381

Other non-current assets

488

496

Total assets

41,112

40,940

Accounts payable, trade

5,018

4,847

Contract liabilities

2,866

2,844

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

1,957

2,607

Current operating leases

242

249

Provisions for warranties

1,191

1,210

Dividends payable to shareholders

857

–

Other provisions

1,056

1,201

Other current liabilities

4,595

5,046

Total current liabilities

17,782

18,004

Long-term debt

6,346

5,221

Non-current operating leases

642

666

Pension and other employee benefits

668

686

Deferred taxes

664

669

Other non-current liabilities

1,539

1,548

Total liabilities

27,641

26,794

Commitments and contingencies

Redeemable noncontrolling interest

Stockholders’ equity:

Common stock, CHF 0.12 par value

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

31, 2023)

163

Additional paid-in capital

Retained earnings

18,622

19,724

Accumulated other comprehensive loss

(4,904)

(5,070)

Treasury stock, at cost

(31 million and 40 million shares at March 31, 2024, and December

31, 2023, respectively)

(1,150)

(1,414)

Total ABB stockholders’ equity

12,740

13,410

Noncontrolling interests

642

647

Total stockholders’ equity

13,382

14,057

Total liabilities and stockholders’

equity

41,112

40,940

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

See Notes to the Consolidated Financial Information

Q1 2024 FINANCIAL INFORMATION

—

ABB Ltd Consolidated Statements of Cash Flows (unaudited)

Three months ended

($ in millions)

Mar. 31, 2024

Mar. 31, 2023

Operating activities:

Net income

913

1,060

Adjustments to reconcile net income to net cash provided

by operating activities:

Depreciation and amortization

201

191

Changes in fair values of investments

(13)

Pension and other employee benefits

(13)

Deferred taxes

(6)

Loss from equity-accounted companies

Net gain from derivatives and foreign exchange

(8)

(37)

Net gain from sale of property,

plant and equipment

(5)

(26)

Net loss (gain) from sale of businesses

–

Other

Changes in operating assets and liabilities:

Trade receivables, net

(33)

(362)

Contract assets and liabilities

Inventories, net

(205)

(264)

Accounts payable, trade

Accrued liabilities

(473)

(324)

Provisions, net

Income taxes payable and receivable

122

(115)

Other assets and liabilities, net

Net cash provided by operating activities

726

282

Investing activities:

Purchases of investments

(877)

(660)

Purchases of property, plant and

equipment and intangible assets

(181)

(151)

Acquisition of businesses (net of cash acquired) and increases

in cost-

and equity-accounted companies

(30)

(19)

Proceeds from sales of investments

727

Proceeds from sales of property,

plant and equipment

Proceeds from sales of businesses (net of transaction costs

and cash disposed) and cost-

and

equity-accounted companies

(8)

(5)

Net cash from settlement of foreign currency derivatives

Changes in loans receivable, net

Other investing activities

–

(1)

Net cash used in investing activities

(331)

(741)

Financing activities:

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

(20)

(714)

Increase in debt

1,358

1,633

Repayment of debt

(565)

(36)

Delivery of shares

390

Purchase of treasury stock

(291)

(274)

Dividends paid

(919)

(1,294)

Dividends paid to noncontrolling shareholders

–

(3)

Proceeds from issuance of subsidiary shares

–

341

Other financing activities

(3)

Net cash used in financing activities

(50)

(240)

Effects of exchange rate changes on cash and equivalents

and restricted cash

(134)

(5)

Adjustment for the net change in cash and equivalents and restricted

cash in Assets held for sale

–

(13)

Net change in cash and equivalents and restricted cash

211

(717)

Cash and equivalents and restricted cash, beginning of period

3,909

4,174

Cash and equivalents and restricted cash, end of period

4,120

3,457

Supplementary disclosure of cash flow information:

Interest paid

Income taxes paid

228

207

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

See Notes to the Consolidated Financial Information

Q1 2024 FINANCIAL INFORMATION

—

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

($ in millions)

Common

stock

Additional

paid-in

capital

Retained

earnings

Accumulated

other

comprehensive

loss

Treasury

stock

Total ABB

stockholders’

equity

Non-

controlling

interests

Total

stockholders’

equity

Balance at January 1, 2023

171

141

20,082

(4,556)

(3,061)

12,777

410

13,187

Net income

(1)

1,036

1,061

Foreign currency translation

adjustments, net of tax of $(1)

Effect of change in fair value of

available-for-sale securities,

net of tax of $1

Unrecognized income (expense)

related to pensions and other

postretirement plans,

net of tax of $1

–

Change in derivative instruments

and hedges, net of tax of $0

Issuance of subsidiary shares

170

168

338

Other changes in

noncontrolling interests

–

(1)

Dividends to

noncontrolling shareholders

–

(5)

Dividends to shareholders

(1,706)

Share-based payment arrangements

Purchase of treasury stock

(253)

Delivery of shares

(53)

148

Other

(2)

Balance at March 31, 2023

171

279

19,411

(4,469)

(3,165)

12,227

604

12,831

Balance at January 1, 2024

163

19,724

(5,070)

(1,414)

13,410

647

14,057

Net income

(1)

905

914

Foreign currency translation

adjustments, net of tax of $3

131

(16)

115

Effect of change in fair value of

available-for-sale securities,

net of tax of $0

(1)

Unrecognized income (expense)

related to pensions and other

postretirement plans,

net of tax of $16

Change in derivative instruments

and hedges, net of tax of $0

Changes in noncontrolling interests

(1)

(30)

(31)

(30)

Dividends to

noncontrolling shareholders

–

(1)

Dividends to shareholders

(1,804)

Share-based payment arrangements

Purchase of treasury stock

(314)

Delivery of shares

(14)

(174)

578

390

Other

(3)

(1)

Balance at March 31, 2024

163

18,622

(4,904)

(1,150)

12,740

642

13,382

(1)

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

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

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

See Notes to the Consolidated Financial Information

Q1 2024 FINANCIAL INFORMATION

—

Notes to the Consolidated Financial Information (unaudited)

─

Note 1

The Company and basis of presentation

ABB Ltd and its subsidiaries (collectively,

the Company) together form a technology

leader in electrification and automation, enabling a more sustainable

and

resource-efficient future. The Company’s solutions connect

engineering know-how and software to optimize how things

are manufactured, moved, powered, and

operated.

The Company’s Consolidated Financial Information is prepared

in accordance with United States of America generally accepted

accounting principles (U.S.

GAAP) for interim financial reporting. As such, the Consolidated

Financial Information does not include all the

information and notes required under U.S. GAAP for

annual consolidated financial statements. Therefore, such financial

information should be read in conjunction with the audited

consolidated financial statements in

the Company’s Annual Report for the year ended December

31, 2023.

The preparation of financial information in conformity with U.S. GAAP

requires management to make assumptions

and estimates that directly affect the amounts

reported in the Consolidated Financial Information. These accounting

assumptions and estimates include:

●

estimates to determine valuation allowances for deferred tax assets

and amounts recorded for unrecognized tax benefits,

●

estimates related to credit losses expected to occur over

the remaining life of financial assets such as trade and other

receivables, loans and other

instruments,

●

estimates of loss contingencies associated with litigation or

threatened litigation and other claims and inquiries, environmental

damages, product

warranties, self-insurance reserves, regulatory and other proceedings,

●

assumptions and projections, principally related to future material,

labor and project-related overhead costs, used in determining the

percentage-of-

completion on projects where revenue is recognized over time,

as well as the amount of variable consideration the

Company expects to be entitled to,

●

assumptions used in the calculation of pension and postretirement

benefits and the fair value of pension plan assets,

●

estimates used to record expected costs for employee severance

in connection with restructuring programs,

●

assumptions used in determining inventory obsolescence and net

realizable value,

●

growth rates, discount rates and other assumptions used to determine

impairment of long-lived assets and in testing goodwill

for impairment,

●

estimates and assumptions used in determining the fair values

of assets and liabilities assumed in business

combinations, and

●

estimates and assumptions used in determining the initial fair value

of retained noncontrolling interests

and certain obligations in connection with

divestments.

The actual results and outcomes may differ from the Company’s

estimates and assumptions.

A portion of the Company’s activities (primarily long-term

construction activities) has an operating cycle that

exceeds one year. For classification of

current assets

and liabilities related to such activities, the Company elected to

use the duration of the individual contracts

as its operating cycle. Accordingly,

there are accounts

receivable, contract assets, inventories and provisions related to

these contracts which will not be realized within one

year that have been classified as current.

Basis of presentation

In the opinion of management, the unaudited Consolidated Financial

Information contains all necessary

adjustments to present fairly the financial position, results

of operations and cash flows for the reported periods. Management considers

all such adjustments to be of a normal recurring nature. The

Consolidated Financial

Information is presented in United States dollars ($)

unless otherwise stated. Due to rounding, numbers presented

in the Consolidated Financial Information may

not add to the totals provided.

Certain amounts reported in the Consolidated Financial Information for

prior periods have been reclassified to conform to the

current year’s presentation.

Change in accounting policy

Effective January 1, 2024, the Company changed

the presentation of discontinued operations

in its statement of cas

flows to an alternate allowable

policy. As a result, the

total cash flows for operating, investing

and financing activities from discontinued

operations are no longer shown separately but

instead all cash flows in discontinued operations

are presented within each line item as appropriate

in the statement of cash flows. As

this presentation

change represents a change in accounting

policy, all prior periods presented

have been reclassified to conform to the

current period presentation and

there was no material impact

for the three months ended March 31,

2023.

Q1 2024 FINANCIAL INFORMATION

─

Note 2

Recent accounting pronouncements

Applicable for current periods

Improvements to reportable segment disclosures

In January 2024, the Company adopted an accounting standard

update which requires the Company to disclose additional reportable

segment information

primarily through enhanced disclosures about significant segment expenses

and extending certain annual disclosure requirements

to a quarterly frequency.

The

update will be applied retrospectively for all periods presented

in the Company’s annual consolidated financial statements

and then commencing from the first

quarter of 2025, in its interim consolidated financial information.

Other than these additional disclosures,

this update does not have a significant impact on the

Company’s consolidated financial statements.

Applicable for future periods

Improvements to Income tax disclosures

In December 2023, an accounting standard update was issued which

requires the Company to disclose additional information

related to income taxes. Under the

update, the Company is required to annually disclose by jurisdiction

(i) additional disaggregated information within the

tax rate reconciliation and (ii) income taxes

paid. This update is effective for the Company prospectively,

with retrospective adoption permitted, for annual

periods beginning January 1, 2025. The Company

currently evaluating the impact of adopting this update on

its consolidated financial statements.

─

Note 3

Cash and equivalents, marketable securities and short-term investments

Cash and equivalents, marketable securities and short-term

investments consisted of the following:

March 31, 2024

Cash and

Marketable

Gross

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

1,789

Time deposits

2,817

2,331

486

Equity securities

1,391

1,428

5,997

–

6,034

4,120

1,914

Changes in fair value recorded

in other comprehensive income

Debt securities available-for-sale:

U.S. government obligations

190

(9)

183

190

(9)

183

–

183

Total

6,187

(9)

6,217

4,120

2,097

Of which:

Restricted cash, current

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

Changes in fair value

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

Of which:

Restricted cash, current

Q1 2024 FINANCIAL INFORMATION

─

Note 4

Derivative financial instruments

The Company is exposed to certain currency,

commodity and interest rate risks arising from its global

operating, financing and investing activities. The Company

uses derivative instruments to reduce and manage the economic

impact of these exposures.

Currency risk

Due to the global nature of the Company’s operations, many

of its subsidiaries are exposed to currency risk

in their operating activities from entering into

transactions in currencies other than their functional currency.

To manage such

currency risks, the Company’s policies require its

subsidiaries to hedge their

foreign currency exposures from binding sales and purchase

contracts denominated in foreign currencies. For forecasted foreign

currency denominated sales of

standard products and the related foreign currency denominated purchas

es, the Company’s policy is to hedge up to a maximum

of 100 percent of the forecasted

foreign currency denominated exposures, depending on the

length of the forecasted exposures. Forecasted exposures

greater than 12 months are not hedged.

Forward foreign exchange contracts are the main instrument used to

protect the Company against the volatility of future cash

flows (caused by changes in

exchange rates) of contracted and forecasted sales and purchases

denominated in foreign currencies. In addition, within

its treasury operations, the Company

primarily uses foreign exchange swaps and forward foreign exchange

contracts to manage the currency and timing mismatches

arising in its liquidity management

activities.

Commodity risk

Various commodity products

are used in the Company’s manufacturing activities.

Consequently it is exposed to volatility in future cash flows

arising from changes

in commodity prices. To

manage the price risk of commodities, the Company’s

policies require that its subsidiaries hedge the commodity

price risk exposures from

binding contracts, as well as at least 50 percent (up to a maximum

of 100 percent) of the forecasted commodity exposure over

the next 12 months or longer (up to

a maximum of 18 months). Primarily swap contracts are used to

manage the associated price risks of commodities.

Interest rate risk

The Company has issued bonds at fixed rates. Interest rate swaps

and cross-currency interest rate swaps are used to manage

the interest rate and foreign

currency risk associated with certain debt and generally such

swaps are designated as fair value hedges. In addition, from time

to time, the Company uses

instruments such as interest rate swaps, interest rate futures, bond

futures or forward rate agreements to manage

interest rate risk arising from the Company’s

balance sheet structure but does not designate such instruments

as hedges.

Volume of derivative activity

In general, while the Company’s primary objective in

its use of derivatives is to minimize exposures arising from

its business, certain derivatives are designated

and qualify for hedge accounting treatment while others either are

not designated or do not qualify for hedge accou

nting.

Foreign exchange and interest rate derivatives

The gross notional amounts of outstanding foreign exchange and

interest rate derivatives (whether designated as hedges

or not) were as follows:

Type of derivative

Total notional amounts

($ in millions)

March 31, 2024

December 31, 2023

March 31, 2023

Foreign exchange contracts

14,331

12,335

13,273

Embedded foreign exchange derivatives

1,106

1,137

1,104

Cross-currency interest rate swaps

863

886

870

Interest rate contracts

3,075

1,606

2,963

Derivative commodity contracts

The Company uses derivatives to hedge its direct or indirect exposure

to the movement in the prices of commodities which are

primarily copper, silver,

steel and

aluminum. The following table shows the notional amounts of outstanding

derivatives (whether designated as hedges or not), on

a net basis, to reflect the

Company’s requirements for these commodities:

Type of derivative

Unit

Total notional amounts

March 31, 2024

December 31, 2023

March 31, 2023

Copper swaps

metric tonnes

38,116

35,015

27,920

Silver swaps

ounces

2,689,981

2,359,363

2,392,353

Steel swaps

metric tonnes

10,251

10,206

6,804

Aluminum swaps

metric tonnes

5,875

5,900

6,750

Cash flow hedges

As noted above, the Company mainly uses forward foreign exchange

contracts to manage the foreign exchange risk

of its operations and commodity swaps to

manage its commodity risks. The Company applies cash flow

hedge accounting in only limited cases. In these cases, the

effective portion of the changes in their

fair value is recorded in Accumulated other comprehensive loss

and subsequently reclassified into earnings in the same

line item and in the same period as the

underlying hedged transaction affects earnings. For the three

months ended March 31, 2024 and 2023, there were

no significant amounts recorded for cash flow

hedge accounting activities.

Fair value hedges

To reduce its interest

rate exposure arising primarily from its debt issuance activities,

the Company uses interest rate swaps and cross

-currency interest rate

swaps. Where such instruments are designated as fair value hedges,

the changes in the fair value of these instruments,

as well as the changes in the fair value of

the risk component of the underlying debt being hedged, are recorded

as offsetting gains and losses

in Interest and other finance expense.

The effect of derivative instruments, designated and qualifying

as fair value hedges, on the Consolidated Income

Statements was as follows:

Three months ended March 31,

($ in millions)

2024

2023

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

Interest rate contracts

Designated as fair value hedges

Hedged item

(14)

(10)

Cross-currency interest rate swaps

Designated as fair value hedges

(3)

(11)

Hedged item

Q1 2024 FINANCIAL INFORMATION

Derivatives not designated in hedge relationships

Derivative instruments that are not designated as hedges or do not

qualify as either cash flow or fair value hedges

are economic hedges used for risk management

purposes. Gains and losses from changes in the fair values

of such derivatives are recognized in the same line in the

income statement as the economically

hedged transaction.

Furthermore, under certain circumstances, the Company

is required to split and account separately for foreign currency

derivatives that are embedded within

certain binding sales or purchase contracts denominated

in a currency other than the functional currency of the subsidiary

and the counterparty.

The gains (losses) recognized in the Consolidated Income Statements

on derivatives not designated in hedging relationships

were as follows:

Type of derivative not

Gains (losses) recognized in income

designated as a hedge

Three months ended March 31,

($ in millions)

Location

2024

2023

Foreign exchange contracts

Total revenues

(168)

Total cost of sales

(1)

SG&A expenses

(1)

Non-order related research and development

(2)

–

Interest and other finance expense

247

Embedded foreign exchange contracts

Total revenues

Total cost of sales

(4)

(1)

Commodity contracts

Total cost of sales

Other

Interest and other finance expense

(2)

–

Total

158

(1)

SG&A expenses represent

“Selling, general and

administrative expenses”.

The fair values of derivatives included in the Consolidated Balance

Sheets were as follows:

March 31, 2024

Derivative assets

Derivative liabilities

Current in

Non-current in

Current in

Non-current in

“Other current

“Other non-current

“Other current

“Other non-current

($ in millions)

assets”

liabilities”

Derivatives designated as hedging instruments:

Foreign exchange contracts

–

Interest rate contracts

–

Cross-currency interest rate swaps

–

256

Other

–

Total

–

259

Derivatives not designated as hedging instruments:

Foreign exchange contracts

179

Commodity contracts

–

Interest rate contracts

–

Embedded foreign exchange derivatives

Other

–

Total

220

109

Total fair value

227

115

273

December 31, 2023

Derivative assets

Derivative liabilities

Current in

Non-current in

Current in

Non-current in

“Other current

“Other non-current

“Other current

“Other non-current

($ in millions)

assets”

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

Close-out netting agreements provide for the termination, valuation

and net settlement of some or all outstanding transactions

between two counterparties on the

occurrence of one or more pre-defined trigger events.

Q1 2024 FINANCIAL INFORMATION

Although the Company is party to close-out netting agreements

with most derivative counterparties, the fair values in the

tables above and in the Consolidated

Balance Sheets at March 31, 2024, and December 31, 2023,

have been presented on a gross basis.

The Company’s netting agreements and other similar arrangements

allow net settlements under certain conditions.

At March 31, 2024, and December 31, 2023,

information related to these offsetting arrangements was as

follows:

($ in millions)

March 31, 2024

Gross amount

Derivative liabilities

Cash

Non-cash

Type of agreement or

of recognized

eligible for set-off

collateral

Net asset

similar arrangement

assets

in case of default

received

exposure

Derivatives

225

(71)

–

154

Total

225

(71)

–

154

($ in millions)

March 31, 2024

Gross amount

Derivative liabilities

Cash

Non-cash

Type of agreement or

of recognized

eligible for set-off

collateral

Net liability

similar arrangement

liabilities

in case of default

pledged

exposure

Derivatives

376

(71)

–

305

Total

376

(71)

–

305

($ in millions)

December 31, 2023

Gross amount

Derivative liabilities

Cash

Non-cash

Type of agreement or

of recognized

eligible for set-off

collateral

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

Type of agreement or

of recognized

eligible for set-off

collateral

Net liability

similar arrangement

liabilities

in case of default

pledged

exposure

Derivatives

445

(111)

–

334

Total

445

(111)

–

334

Q1 2024 FINANCIAL INFORMATION

─

Note 5

Fair values

The Company uses fair value measurement principles to record certain

financial assets and liabilities on a recurring basis

and, when necessary,

to record certain

non-financial assets at fair value on a non-recurring basis,

as well as to determine fair value disclosures for certain financial

instruments carried at amortized cost

in the financial statements. Financial assets and liabilities recorded

at fair value on a recurring basis include foreign currency,

commodity and interest rate

derivatives, as well as available-for-sale securities. Non-financial

assets recorded at fair value on a non-recurring basis

include long-lived assets that are reduced

to their estimated fair value due to impairments.

Fair value is the price that would be received when selling an

asset or paid to transfer a liability in an orderly transaction

between market participants at the

measurement date. In determining fair value, the Company

uses various valuation techniques including the market

approach (using observable market data for

identical or similar assets and liabilities), the income approach (discounted

cash flow models) and the cost approach (using costs

a market participant would incur

to develop a comparable asset). Inputs used to determine the

fair value of assets and liabilities are defined by a three

-level hierarchy, depending on the

nature of

those inputs. The Company has categorized its financial assets

and liabilities and non-financial assets measured at

fair value within this hierarchy based on

whether the inputs to the valuation technique are observable or unobservable.

An observable input is based on market data obtained from

independent sources,

while an unobservable input reflects the Company’s

assumptions about market data.

The levels of the fair value hierarchy are as follows:

Level 1:

Valuation inputs consist

of quoted prices in an active market for identical

assets or liabilities (observable quoted prices). Assets

and liabilities valued

using Level 1 inputs include exchange

‑

traded equity securities, listed derivatives

which are actively traded such as commodity futures, interest rate

futures and certain actively traded debt securities.

Level 2:

Valuation inputs consist

of observable inputs (other than Level 1 inputs)

such as actively quoted prices for similar assets, quoted prices

in inactive

markets and inputs other than quoted prices such

as interest rate yield curves, credit spreads, or inputs

derived from other observable data by

interpolation, correlation, regression or other means. The adjustments

applied to quoted prices or the inputs used in valuation

models may be both

observable and unobservable. In these cases, the fair value measurement

is classified as Level 2 unless the unobservable portion

of the adjustment or

the unobservable input to the valuation model is significant, in

which case the fair value measurement would be

classified as Level 3. Assets and

liabilities valued or disclosed using Level 2 inputs include

investments in certain funds, certain debt securities that are

not actively traded, interest rate

swaps, cross-currency interest rate swaps, commodity

swaps, forward foreign exchange contracts, foreign exchange

swaps and forward rate

agreements, time deposits, as well as financing receivables and

debt.

Level 3:

Valuation inputs are based on

the Company’s assumptions of relevant market

data (unobservable input).

Whenever quoted prices involve bid-ask spreads, the Company

ordinarily determines fair values based on mid-market

quotes. When determining fair values based

on quoted prices in an active market, the Company considers

if the level of transaction activity for the financial instrument

has significantly decreased or would not

be considered orderly. In such cases,

the resulting changes in valuation techniques would be disclosed.

If the market is considered disorderly or if quoted

prices

are not available, the Company is required to use another valuation

technique, such as an income approach.

Recurring fair value measures

The fair values of financial assets and liabilities measured at

fair value on a recurring basis were as follows:

March 31, 2024

($ in millions)

Level 1

Level 2

Level 3

Total fair value

Assets

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

Equity securities

–

1,428

–

1,428

Debt securities—U.S. government obligations

183

–

183

Derivative assets—current in “Other current assets”

–

227

–

227

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

–

Total

183

1,682

–

1,865

Liabilities

Derivative liabilities—current in “Other current liabilities”

–

115

–

115

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

–

273

–

273

Total

–

388

–

388

December 31, 2023

($ in millions)

Level 1

Level 2

Level 3

Total fair value

Assets

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

Equity securities

–

1,282

–

1,282

Debt securities—U.S. government obligations

183

–

183

Derivative assets—current in “Other current assets”

–

169

–

169

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

–

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

Q1 2024 FINANCIAL INFORMATION

The Company uses the following methods and assumptions in

estimating fair values of financial assets

and liabilities measured at fair value on a recurring basis:

●

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

If quoted market prices in active markets for identical assets

are available, these are

considered Level 1 inputs; however,

when markets are not active, these inputs are

considered Level 2. If such quoted market prices are not

available,

fair value is determined using market prices for similar assets

or present value techniques, applying an appropriate risk-free

interest rate adjusted for

non-performance risk. The inputs used in present value techniques

are observable and fall into the Level 2 category.

●

Derivatives

: The fair values of derivative instruments are determined using

quoted prices of identical instruments from an

active market, if available

(Level 1 inputs). If quoted prices are not available, price quotes

for similar instruments, appropriately adjusted, or present value

techniques, based on

available market data, or option pricing models are used. The fair

values obtained using price quotes for similar

instruments or valuation techniques

represent a Level 2 input unless significant unobservable inputs

are used.

Non-recurring fair value measures

There were no significant non-recurring fair value measurements

during the three months ended March 31, 2024 and

2023.

Disclosure about financial instruments carried on a cost

basis

The fair values of financial instruments carried on a cost

basis were as follows:

March 31, 2024

($ in millions)

Carrying value

Level 1

Level 2

Level 3

Total fair value

Assets

Cash and equivalents (excluding securities with original

maturities up to 3 months):

Cash

1,771

–

1,771

Time deposits

2,331

–

2,331

–

2,331

Restricted cash

–

Marketable securities and short-term investments

(excluding securities):

Time deposits

486

–

486

–

486

Liabilities

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

(excluding finance lease obligations)

1,927

1,890

–

1,927

Long-term debt (excluding finance lease obligations)

6,192

6,211

–

6,219

December 31, 2023

($ in millions)

Carrying value

Level 1

Level 2

Level 3

Total fair value

Assets

Cash and equivalents (excluding securities with original

maturities up to 3 months):

Cash

1,431

–

1,431

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

The Company uses the following methods and assumptions in

estimating fair values of financial instruments carried

on a cost basis:

●

Cash and equivalents (excluding securities with original maturities

up to 3 months), Restricted cash, and Marketable

securities and short-term

investments (excluding securities):

The carrying amounts approximate the fair

values as the items are short-term in nature or,

for cash held in banks,

are equal to the deposit amount.

●

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

finance lease obligations):

Short-term debt includes commercial paper,

bank

borrowings and overdrafts. The carrying amounts of short-term debt

and current maturities of long-term debt, excluding finance

lease obligations,

approximate their fair values.

●

Long-term debt (excluding finance lease obligations):

Fair values of bonds are determined using quoted market

prices (Level 1 inputs), if available. For

bonds without available quoted market prices and other long-term

debt, the fair values are determined using a discounted cash flow

methodology

based upon borrowing rates of similar debt instruments and reflecting

appropriate adjustments for non-performance risk

(Level 2 inputs).

Q1 2024 FINANCIAL INFORMATION

─

Note 6

Contract assets and liabilities

The following table provides information about Contract assets

and Contract liabilities:

($ in millions)

March 31, 2024

December 31, 2023

March 31, 2023

Contract assets

1,135

1,090

1,009

Contract liabilities

2,866

2,844

2,339

Contract assets primarily relate to the Company’s right to receive

consideration for work completed but for which no invoice

has been issued at the reporting date.

Contract assets are transferred to receivables when rights

to receive payment become unconditional. Management expects

that the majority of the amounts will be

collected within one year of the respective balance sheet date.

Contract liabilities primarily relate to up-front advances received on

orders from customers as well as amounts invoiced

to customers in excess of revenues

recognized predominantly on long-term projects. Contract liabilities

are reduced as work is performed and as revenues are recognized

The significant changes in the Contract assets and Contract liabilities

balances were as follows:

Three months ended March 31,

2024

2023

Contract

($ in millions)

assets

liabilities

assets

liabilities

Revenue recognized, which was included in the Contract liabilities balance

at Jan 1, 2024/2023

(724)

(651)

Additions to Contract liabilities - excluding amounts recognized as

revenue during the period

819

707

Receivables recognized that were included in the Contract

assets balance at Jan 1, 2024/2023

(408)

(325)

The Company considers its order backlog to represent its

unsatisfied performance obligations. At March 31, 2024, the Company

had unsatisfied performance

obligations totaling $22,015 million and, of this amount, the Company

expects to fulfill approximately 61 percent of the obligations

in 2024, approximately

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

─

Note 7

Supplier finance programs

The Company has several supplier finance programs, all with similar

characteristics, with various financial institutions acting

as paying agent. These programs

allow qualifying suppliers access to bank facilities which permit earlier

payment at a cost to the supplier.

The Company’s payment terms related to suppliers’

finance programs are not impacted by the suppliers’ decisions

to sell amounts under the arrangements and are typically consistent

with local market practices.

Outstanding supplier finance obligations are included in “Accounts

payable, trade” in the Consolidated Balance Sheets

and are reported as operating or investing

(if capitalized) activities in the Consolidated Statement of Cash Flows

when paid. At March 31, 2024, and December

31, 2023, the total obligation outstanding

under supplier finance programs amounted to $442 million and

$415 million, respectively.

Q1 2024 FINANCIAL INFORMATION

─

Note 8

Debt

The Company’s total debt at March 31, 2024, and December

31, 2023, amounted to $8,303

million and $7,828 million, respectively.

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

The Company’s “Short-term debt and current maturities of

long-term debt” consisted of the following:

($ in millions)

March 31, 2024

December 31, 2023

Short-term debt

Current maturities of long-term debt

1,907

2,520

Total

1,957

2,607

Short-term debt primarily represented short-term bank borrowings

from various banks.

In March 2024, the Company repaid at maturity its EUR

500 million Floating Rate Instruments, equivalent to $539

million on date of repayment.

Long-term debt

The Company’s long-term debt at March 31, 2024, and

December 31, 2023, amounted to $6,346 million and

$5,221 million, respectively.

Outstanding bonds (including maturities within the next 12 months)

were as follows:

March 31, 2024

December 31, 2023

(in millions)

Nominal outstanding

Carrying value

(1)

Nominal outstanding

Carrying value

(1)

Bonds:

Floating Rate EUR Instruments, due 2024

EUR

500

554

0.625% EUR Instruments, due 2024

EUR

700

755

EUR

700

768

0.75% EUR Instruments, due 2024

EUR

750

805

EUR

750

819

0.3% CHF Bonds, due 2024

CHF

280

309

CHF

280

335

2.1% CHF Bonds, due 2025

CHF

150

165

CHF

150

179

1.965% CHF Bonds, due 2026

CHF

325

358

CHF

325

387

3.25% EUR Instruments, due 2027

EUR

500

536

EUR

500

551

0.75% CHF Bonds, due 2027

CHF

425

468

CHF

425

507

3.8% USD Notes, due 2028

(2)

USD

383

382

USD

383

382

1.9775% CHF Bonds, due 2028

CHF

150

165

CHF

150

179

3.125% EUR Instruments, due 2029

EUR

500

536

1.0% CHF Bonds, due 2029

CHF

170

188

CHF

170

203

0% EUR Instruments, due 2030

EUR

800

723

EUR

800

749

2.375% CHF Bonds, due 2030

CHF

150

165

CHF

150

178

3.375% EUR Instruments, due 2031

EUR

750

797

EUR

750

818

2.1125% CHF Bonds, due 2033

CHF

275

303

CHF

275

327

3.375% EUR Instruments, due 2034

EUR

750

802

4.375% USD Notes, due 2042

(2)

USD

609

591

USD

609

591

Total

8,048

7,527

(1)

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

(2)

Prior to completing a cash tender offer in November 2020, the original principal amount outstanding,

on each of the 3.8% USD Notes,

due 2028,

and the 4.375% USD Notes,

due

2042, was USD 750 million.

In January 2024, the Company issued the following EUR Instruments:

(i) EUR 500 million of 3.125 percent Instruments, due

2029, and (ii) EUR 750 million of

3.375 percent Instruments, due 2034, both paying interest

annually in arrears. The aggregate net proceeds

of these EUR Instruments, after discount and fees,

amounted to EUR 1,243 million (equivalent to approximately

$1,360 million on date of issuance).

Subsequent events

On April 2, 2024, the Company repaid at maturity its EUR 700

million 0.625% EUR Instruments, equivalent to $752

million on date of repayment.

Q1 2024 FINANCIAL INFORMATION

─

Note 9

Commitments and contingencies

Contingencies—Regulatory, Compliance

and Legal

Regulatory

Based on findings during an internal investigation, the Company

self-reported to the Securities Exchange Commission (SEC)

and the Department of Justice (DoJ),

in the United States, to the Special Investigating Unit (SIU)

and the National Prosecuting Authority (NPA)

in South Africa as well as to various authorities

in other

countries potential suspect payments and other compliance concerns

in connection with some of the Company’s dealings

with Eskom and related persons. Many

of those parties have expressed an interest in, or commenced

an investigation into, these matters and the Company is

cooperating fully with them. The Company

paid $104 million to Eskom in December 2020 as part of a full

and final settlement with Eskom and the SIU relating

to improper payments and other compliance

issues associated with the Controls and Instrumentation Contract,

and its Variation Orders

for Units 1 and 2 at Kusile. The Company made a provision

approximately $325 million which was recorded in Other income (expense),

net, during the third quarter of 2022. In December

2022, the Company settled with the

SEC and DoJ as well as the authorities in South Africa and Switzerland.

In March 2024, the Company settled its final pending

matter with the authorities in

Germany. The Company does not

believe that it will need to record any additional provisions

for this matter.

General

The Company is aware of proceedings, or the threat of proceedings,

against it and others in respect of private claims by

customers and other third parties with

regard to certain actual or alleged anticompetitive practices.

Also, the Company is subject to other claims and legal

proceedings, as well as investigations carried

out by various law enforcement authorities. With respect to the

above-mentioned claims, regulatory matters,

and any related proceedings, the Company will bear

the related costs, including costs necessary to resolve

them.

Liabilities recognized

At March 31, 2024, and December 31, 2023, the Company had

aggregate liabilities of $92 million and $101

million, respectively, included

in Other provisions and

Other non

‑

current liabilities, for the above regulatory,

compliance and legal contingencies, and none of the

individual liabilities recognized was significant. As

it is

not possible to make an informed judgment on, or reasonably predict,

the outcome of certain matters and as it

is not possible, based on information currently

available to management, to estimate the maximum potential

liability on other matters, there could be adverse outcomes beyond

the amounts accrued.

Guarantees

General

The following table provides quantitative data regarding the Company’s

third-party guarantees. The maximum potential payments

represent a “worst-case

scenario”, and do not reflect management’s expected

outcomes.

Maximum potential payments

($ in millions)

March 31, 2024

December 31, 2023

Performance guarantees

3,370

3,451

Financial guarantees

Total

(1)

3,463

3,545

(1)

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

The carrying amount of liabilities recorded in the Consolidated

Balance Sheets reflects the Company’s best estimate of

future payments, which it may incur as

part

of fulfilling its guarantee obligations. In respect of the above guarantees,

the carrying amounts of liabilities at March

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

significant.

The Company is party to various guarantees providing financial

or performance assurances to certain third parties. These guarantees,

which have various

maturities up to 2032, mainly consist of performance guarantees

whereby (i) the Company guarantees

the performance of a third party’s product or service

according to the terms of a contract and (ii) as member

of a consortium/joint-venture that includes third parties, the

Company guarantees not only its own

performance but also the work of third parties. Such guarantees

may include guarantees that a project will be

completed within a specified time. If the third party

does not fulfill the obligation, the Company will compensate the

guaranteed party in cash or in kind. The original

maturity dates for the majority of these

performance guarantees range from one to ten years.

In conjunction with the divestment of the high-voltage cable

and cables accessories businesses, the Company has

entered into various performance guarantees

with other parties with respect to certain liabilities of the

divested business. At March 31, 2024, and December 31,

2023, the maximum potential payable under

these guarantees amounts to $843 million and $874 million, respectively,

and these guarantees have various original maturities

ranging from five to ten years.

The Company retained obligations for financial and performance guarantees

related to its former Power Grids business

(reported as discontinued operations prior

to its sale to Hitachi Ltd in 2020), which at both March

31, 2024, and December 31, 2023, have been fully

indemnified by Hitachi Ltd. These guarantees, having

various maturities up to 2032, primarily consist of bank guarantees,

standby letters of credit, business performance guarante

es and other trade-related guarantees,

the majority of which have original maturity dates ranging from

one to ten years. The maximum amount payable under

these guarantees at both March 31, 2024,

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

Commercial commitments

In addition, in the normal course of bidding for and executing certain

projects, the Company has entered into standby

letters of credit, bid/performance bonds

and

surety bonds (collectively “performance bonds”) with various

financial institutions. Customers can draw on such

performance bonds in the event that the Company

does not fulfill its contractual obligations. The Company would

then have an obligation to reimburse the financial institution

for amounts paid under the performance

bonds. At March 31, 2024, and December 31, 2023, the total outstanding

performance bonds aggregated to $3.2 billion and $3

.1 billion, respectively. There

have

been no significant amounts reimbursed to financial institutions

under these types of arrangements in the three

months ended March 31, 2024 and 2023.

Q1 2024 FINANCIAL INFORMATION

Product and order-related contingencies

The Company calculates its provision for product warranties

based on historical claims experience and specific review

of certain contracts. The reconciliation

of the

Provisions for warranties, including guarantees of product performance,

was as follows:

($ in millions)

2024

2023

Balance at January 1,

1,210

1,028

Claims paid in cash or in kind

(37)

(40)

Net increase in provision for changes in estimates, warranties

issued and warranties expired

Exchange rate differences

(37)

Balance at March 31,

1,191

1,060

─

Note 10

Income taxes

In calculating income tax expense, the Company uses an estimate

of the annual effective tax rate based

upon the facts and circumstances known at each

interim

period. On a quarterly basis, the actual effective tax rate

is adjusted, as appropriate, based upon changed facts and circumstances,

if any, as compared to those

forecasted at the beginning of the year and each interim period

thereafter.

The effective tax rate of 27.1 percent in the three months

ended March 31, 2024, was higher than the effective

tax rate of 10.1 percent in the three months ended

March 31, 2023,

primarily due to a net benefit of $206 million realized

on a favorable resolution of an uncertain tax position

in the three months ended March 31,

2023. The release of the corresponding provision resulted in

an increase of $0.11 in earnings

per share (basic and diluted) for the three months ended

March 31,

2023.

─

Note 11

Employee benefits

The Company operates defined benefit pension plans, defined contribution

pension plans, and termination indemnity plans,

in accordance with local regulations

and practices. At March 31, 2024, the Company’s most significant

defined benefit pension plans are in Switzerland as well as

in Germany, the United Kingdom,

and the United States. These plans cover a large portion of the

Company’s employees and provide benefits to employees

in the event of death, disability,

retirement, or termination of employment. Certain of these plans are

multi-employer plans. The Company also operates

other postretirement benefit plans including

postretirement health care benefits and other employee-related

benefits for active employees including long-service

award plans. The postretirement benefit plans

are not significant. The measurement date used for the Company’s

employee benefit plans is December 31. The funding policies

of the Company’s plans are

consistent with the local government and tax requirements.

Net periodic benefit cost of the Company’s defined benefit

pension plans consisted of the following:

($ in millions)

Defined pension benefits

Switzerland

International

Three months ended March 31,

2024

2023

2024

2023

Operational pension cost:

Service cost

Operational pension cost

Non-operational pension cost (credit):

Interest cost

Expected return on plan assets

(31)

(33)

(43)

(39)

Amortization of prior service cost (credit)

(2)

–

(1)

–

Amortization of net actuarial loss

–

Non-operational pension cost (credit)

(24)

(21)

Net periodic benefit cost (credit)

(13)

(12)

The components of net periodic benefit cost other than the service

cost component are included in the line Non-operational

pension cost (credit) in the

Consolidated Income Statements.

Employer contributions were as follows:

($ in millions)

Defined pension benefits

Switzerland

International

Three months ended March 31,

2024

2023

2024

2023

Total contributions

to defined benefit pension plans

The Company expects to make contributions totaling approximately

$87 million to its defined pension plans for the full year

2024.

Q1 2024 FINANCIAL INFORMATION

─

Note 12

Stockholder's equity

At the Annual General Meeting of Shareholders (AGM) on March

21, 2024, shareholders approved the proposal of the

Board of Directors to distribute 0.87

Swiss

francs per share to shareholders. The declared dividend amounted

to $1,804 million, with the Company disburs

ing a portion in March and the remaining amounts

scheduled to be paid in the second quarter of 2024.

In March 2024, the Company completed the share buyback

program that was launched in April 2023. This program was executed

on a second trading line on the

SIX Swiss Exchange. Through this program, the Company purchased

a total of 21 million shares for approximately

$0.8 billion, of which 4 million shares were

purchased in the first quarter of 2024 (resulting in an

increase in Treasury stock of $187 million

Also in March 2024, the Company announced a new share buyback

program of up to $1 billion. This program, which was

launched in April 2024, is being executed

on a second trading line on the SIX Swiss Exchange and is planned

to run until January 2025.

During the first quarter of 2024,

the Company delivered, out of treasury stock,

approximately 16 million shares in connection with its Management

Incentive Plan.

─

Note 13

Earnings per share

Basic earnings per share is calculated by dividing income by the

weighted-average number of shares outstanding during

the period. Diluted earnings per share is

calculated by dividing income by the weighted-average number of shares

outstanding during the period, assuming that all potentially

dilutive securities were

exercised, if dilutive. Potentially dilutive securities comprise outstanding

written call options, and outstanding options and

shares granted subject to certain

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

Basic earnings per share

Three months ended March 31,

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

2024

2023

Amounts attributable to ABB shareholders:

Income from continuing operations, net of tax

906

1,041

Loss from discontinued operations, net of tax

(1)

(5)

Net income

905

1,036

Weighted-average number of shares outstanding

(in millions)

1,839

1,861

Basic earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax

0.49

0.56

Loss from discontinued operations, net of tax

–

Net income

0.49

0.56

Diluted earnings per share

Three months ended March 31,

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

2024

2023

Amounts attributable to ABB shareholders:

Income from continuing operations, net of tax

906

1,041

Loss from discontinued operations, net of tax

(1)

(5)

Net income

905

1,036

Weighted-average number of shares outstanding (in millions)

1,839

1,861

Effect of dilutive securities:

Call options and shares

Adjusted weighted-average number of shares outstanding

(in millions)

1,852

1,874

Diluted earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax

0.49

0.56

Loss from discontinued operations, net of tax

–

Net income

0.49

0.55

Q1 2024 FINANCIAL INFORMATION

─

Note 14

Reclassifications out of accumulated other comprehensive loss

The following table shows changes in “Accumulated other comprehensive

loss” (OCI) attributable to ABB, by component, net

of tax:

Unrealized gains

Pension and

Foreign currency

(losses) on

other

Derivative

translation

available-for-sale

postretirement

instruments

($ in millions)

adjustments

securities

plan adjustments

and hedges

Total OCI

Balance at January 1, 2023

(3,691)

(19)

(838)

(8)

(4,556)

Other comprehensive (loss) income:

Other comprehensive (loss) income

before reclassifications

(8)

Amounts reclassified from OCI

–

Total other comprehensive (loss)

income

–

Less:

Amounts attributable to

noncontrolling interests and

redeemable noncontrolling interests

–

Balance at March 31, 2023

(3,612)

(14)

(838)

(5)

(4,469)

Unrealized gains

Pension and

Foreign currency

(losses) on

other

Derivative

translation

available-for-sale

postretirement

instruments

($ in millions)

adjustments

securities

plan adjustments

and hedges

Total OCI

Balance at January 1, 2024

(3,977)

(8)

(1,075)

(10)

(5,070)

Other comprehensive (loss) income:

Other comprehensive (loss) income

before reclassifications

115

(1)

–

141

Amounts reclassified from OCI

–

Total other comprehensive (loss)

income

115

(1)

150

Less:

Amounts attributable to

noncontrolling interests and

redeemable noncontrolling interests

(16)

–

(16)

Balance at March 31, 2024

(3,846)

(9)

(1,042)

(7)

(4,904)

The amounts reclassified out of OCI for the three months

ended March 31, 2024 and 2023, were not significant.

Q1 2024 FINANCIAL INFORMATION

─

Note 15

Operating segment data

The Chief Operating Decision Maker (CODM) is the Chief

Executive Officer. The CODM

allocates resources to and assesses the performance

of each operating

segment using the information outlined below. The

Company is organized into the following segments, based

on products and services: Electrification, Motion,

Process Automation and Robotics & Discrete Automation. The remaining

operations of the Company are included in

Corporate and Other.

A description of the types of products and services

provided by each reportable segment is as follows:

●

Electrification:

manufactures and sells electrical products and solutions

which are designed to provide safe, smart and

sustainable electrical flow from

the substation to the socket. The portfolio of increasingly digital and

connected solutions includes renewable power

solutions, modular substation

packages, distribution automation products, switchboards and

panelboards, switchgear, UPS solutions,

circuit breakers, measuring and sensing

devices, control products, wiring accessories, enclosures and cabling

systems and intelligent home and building solutions,

designed to integrate and

automate lighting, heating, ventilation, security and data communication

networks.

The products and services are currently delivered through five

operating Divisions: Distribution Solutions, Smart Power,

Smart Buildings, Installation Products and Service, as

well as, prior to its sale in July 2023, the

Power Conversion Division.

●

Motion:

designs, manufactures, and sells drives, motors, generators

and traction converters that are driving the low-carbon future

for industries, cities,

infrastructure and transportation. These products, digital technology

and related services enable industrial customers

to increase energy efficiency,

improve safety and reliability, and achieve

precise control of their processes. Building on over 140

years of cumulative experience in electric

powertrains, Motion combines domain expertise and technology

to deliver the optimum solution for a wide range of applications

in all industrial

segments. In addition, Motion, along with its partners,

has a leading global service presence. These products and services

are delivered through seven

operating Divisions: Large Motors and Generators, IEC LV

Motors, NEMA Motors, Drive Products, System Drives,

Service and Traction.

●

Process Automation:

offers a broad range of industry-specific,

integrated automation, electrification and digital solutions,

as well as lifecycle services for

the process,

hybrid and marine industries. The product portfolio includes

control technologies, industrial software, advanced

analytics, sensing and

measurement technology, and marine

propulsion systems. In addition,

Process Automation offers a comprehensive range

of services,

from repair to

advanced digital capabilities such as remote monitoring, preventive

maintenance, asset performance management, emission

monitoring and

cybersecurity.

The products, systems and services are delivered through four operating

Divisions: Energy Industries, Process Industries, Marine &

Ports and Measurement & Analytics.

●

Robotics & Discrete Automation:

delivers its products, solutions and services

through two operating Divisions. Robotics provides industrial and

collaborative robots, autonomous mobile robotics, mapping and

navigation solutions, robotic solutions, field services,

spare parts and digital services.

Machine Automation specializes in automation solutions based

on its programmable logic controllers (PLC), industrial

PCs (IPC), servo motion,

transport systems and machine vision. Both divisions offer

software across the entire life cycle, including

engineering and simulation software as well as

a comprehensive range of digital solutions.

Corporate and Other:

Corporate includes headquarter costs, the Company’s

corporate real estate activities and Corporate Treasury

while Other includes the E-

mobility operating segment, other non-core operating activities as

well as the operating activities of certain divested businesses.

The primary measure of profitability on which the operating segments

are evaluated is Operational EBITA, which

represents income from operations excluding:

●

amortization expense on intangibles arising upon acquisition (acquisition

-related amortization),

●

restructuring, related and implementation costs,

●

changes in the amount recorded for obligations related to divested

businesses occurring after the divestment date (changes

in obligations related to

divested businesses),

●

gains and losses from sale of businesses (including fair value adjustment

on assets and liabilities held for sale,

if any),

●

acquisition- and divestment-related expenses and integration costs,

●

certain other non-operational items, as well as

●

foreign exchange/commodity timing differences in income

from operations consisting of: (a) unrealized gains

and losses on derivatives (foreign

exchange, commodities, embedded derivatives), (b) realized

gains and losses on derivatives where the underlying hedged

transaction has not yet been

realized, and (c) unrealized foreign exchange movements on receivables/payables

(and related assets/liabilities).

Certain other non-operational items generally includes certain regulatory,

compliance and legal costs, certain asset write downs/impairments

and certain other fair

value changes, as well as other items which are determined

by management on a case-by-case

basis.

The CODM primarily reviews the results of each segment on

a basis that is before the elimination of profits

made on inventory sales between segments. Segment

results below are presented before these eliminations, with a total deduction

for intersegment profits to arrive at the Company’s

consolidated Operational EBITA.

Intersegment sales and transfers are accounted for as if the sales

and transfers were to third parties, at current market prices.

The following tables present disaggregated segment revenues from

contracts with customers, Operational EBITA,

and the reconciliations of consolidated

Operational EBITA to Income from continuing

operations before taxes for the three months ended March

31, 2024 and 2023, as well as total assets at March 31,

2024, and December 31, 2023.

Q1 2024 FINANCIAL INFORMATION

Three months ended March 31, 2024

Robotics &

Process

Discrete

Corporate

($ in millions)

Electrification

Motion

Automation

and Other

Total

Geographical markets

Europe

1,154

488

555

490

2,748

The Americas

1,529

630

447

140

2,789

of which: United States

1,186

516

285

2,110

Asia, Middle East and Africa

936

558

593

231

2,333

of which: China

415

256

165

157

998

3,619

1,676

1,595

861

119

7,870

Product type

Products

3,380

1,395

911

711

106

6,503

Services and other

239

281

684

150

1,367

3,619

1,676

1,595

861

119

7,870

Third-party revenues

3,619

1,676

1,595

861

119

7,870

Intersegment revenues

153

(223)

–

Total revenues

(1)

3,680

1,829

1,601

864

(104)

7,870

Three months ended March 31, 2023

Robotics &

Process

Discrete

Corporate

($ in millions)

Electrification

Motion

Automation

and Other

Total

Geographical markets

Europe

1,162

638

519

474

2,872

The Americas

1,407

632

421

136

2,653

of which: United States

1,043

533

264

1,984

Asia, Middle East and Africa

957

549

489

324

2,334

of which: China

457

281

162

248

1,155

3,526

1,819

1,429

934

151

7,859

Product type

Products

3,306

1,583

827

791

137

6,644

Services and other

220

236

602

143

1,215

3,526

1,819

1,429

934

151

7,859

Third-party revenues

3,526

1,819

1,429

934

151

7,859

Intersegment revenues

121

(195)

–

Total revenues

(1)

3,590

1,940

1,436

937

(44)

7,859

(1)

Due to rounding,

numbers presented

may not add

to the totals

provided.

Q1 2024 FINANCIAL INFORMATION

Three months ended

March 31,

($ in millions)

2024

2023

Operational EBITA:

Electrification

826

677

Motion

343

366

Process Automation

253

205

Robotics & Discrete Automation

113

140

Corporate and Other

‒

E-mobility

(54)

(28)

‒ Corporate costs, intersegment eliminations and other

(64)

(83)

Total

1,417

1,277

Acquisition-related amortization

(56)

(54)

Restructuring, related and implementation costs

(1)

(26)

(28)

Changes in obligations related to divested businesses

–

(3)

Gains and losses from sale of businesses

(2)

–

Acquisition- and divestment-related expenses and integration

costs

(19)

Foreign exchange/commodity timing differences in

income from operations:

Unrealized gains and losses on derivatives (foreign exchange,

commodities, embedded derivatives)

(77)

Realized gains and losses on derivatives where the underlying hedged

transaction has not yet been realized

(5)

Unrealized foreign exchange movements on receivables/payables (and

related assets/liabilities)

Certain other non-operational items:

Other income/expense relating to the Power Grids joint venture

Regulatory, compliance and legal costs

(3)

–

Business transformation costs

(2)

(50)

(34)

Certain other fair value changes, including asset impairments

(14)

(1)

Other non-operational items

(4)

Income from operations

1,217

1,198

Interest and dividend income

Interest and other finance expense

(37)

(61)

Non-operational pension (cost) credit

Income from continuing operations before taxes

1,253

1,184

(1)

Includes impairment

of certain

assets.

(2)

Amount includes

ABB Way process

transformation

costs of

$46 million

and $30 million

for the three

months ended

March 31, 2024

and 2023,

respectively.

Total assets

(1)

($ in millions)

March 31, 2024

December 31, 2023

Electrification

12,837

12,668

Motion

6,947

7,016

Process Automation

4,952

4,971

Robotics & Discrete Automation

4,982

5,047

Corporate and Other

11,394

11,238

Consolidated

41,112

40,940

(1)

Total assets are after intersegment eliminations and therefore reflect third

-party assets only.

Q1 2024 FINANCIAL INFORMATION

—

Supplemental Reconciliations

and Definitions

The following reconciliations and definitions include measures

which ABB uses to supplement its Consolidated

Financial Information (unaudited) which is

prepared in accordance with United

States generally accepted accounting principles (U.S. GAAP). Certain

of these financial measures are, or may

be,

considered non-GAAP financial measures as defined in the

rules of the U.S. Securities and Exchange

Commission (SEC).

While ABB’s management believes that

the non-GAAP financial measures herein are useful

in evaluating ABB’s operating results,

this information should

be considered as supplemental in nature

and not as a substitute for the related financial information

prepared in accordance with U.S.

GAAP. Therefore

these measures should not be viewed in

isolation but considered together with the

Consolidated Financial Information (unaudited) prepared in accordance

with U.S. GAAP as of and for

the three months ended March 31,

2024.

Comparable growth rates

Growth rates for certain key figures may be presented and discussed

on a “comparable” basis. The comparable growth rate measures growth on

a constant

currency basis. Since we are a global company,

the comparability of our operating results reported

in U.S. dollars is affected by foreign

currency exchange rate

fluctuations. We calculate the impacts from foreign currency

fluctuations by translating the current-year periods’ reported key

figures into U.S. dollar amounts using

the exchange rates in effect for the comparable periods

in the previous year.

Comparable growth rates are also adjusted for changes

in our business portfolio. Adjustments to our business

portfolio occur due to acquisitions, divestments,

by exiting specific business activities or customer markets. The adjustment

for portfolio changes is calculated as follows: where

the results of any business

acquired or divested have not been consolidated and reported for the

entire duration of both the current and comparable

periods, the reported key figures of such

business are adjusted to exclude the relevant key figures of any corresponding

quarters which are not comparable when computing the comparable

growth rate.

Certain portfolio changes which do not qualify as divestments under

U.S. GAAP have been treated in a similar manner to

divestments. Changes in our portfolio

where we have exited certain business activities or customer markets

are adjusted as if the relevant business

was divested in the period when the decision to

cease business activities was taken. We do not adjust

for portfolio changes where the relevant business

has annualized revenues of less than $50 million.

The following tables provide reconciliations of reported growth rates

of certain key figures to their respective comparable growth

rate.

Comparable growth rate reconciliation by Business Area

Q1 2024 compared to Q1 2023

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Business Area

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Electrification

Motion

-1%

-6%

-1%

-6%

Process Automation

-20%

11%

12%

Robotics & Discrete Automation

-30%

-8%

-7%

ABB Group

-5%

-4%

Q1 2024 FINANCIAL INFORMATION

Regional comparable growth rate reconciliation

Regional comparable growth rate reconciliation for ABB Group

- Quarter

Q1 2024 compared to Q1 2023

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-8%

-1%

-9%

-4%

-2%

-5%

The Americas

-3%

of which: United States

10%

Asia, Middle East and Africa

-4%

of which: China

-23%

-18%

-14%

-9%

ABB Group

-5%

-4%

Regional comparable growth rate reconciliation by Business

Area - Quarter

Q1 2024 compared to Q1 2023

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-1%

-2%

-1%

-2%

The Americas

-1%

11%

-1%

15%

of which: United States

13%

17%

14%

23%

Asia, Middle East and Africa

11%

-1%

of which: China

-7%

-2%

-9%

-4%

Electrification

Q1 2024 compared to Q1 2023

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-8%

-3%

-11%

-20%

-2%

-22%

The Americas

-1%

-3%

-4%

of which: United States

-4%

-3%

-6%

-3%

-6%

Asia, Middle East and Africa

16%

21%

11%

of which: China

-12%

-8%

-9%

-5%

Motion

-1%

-6%

-1%

-6%

Q1 2024 compared to Q1 2023

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-10%

-1%

The Americas

-26%

of which: United States

-13%

Asia, Middle East and Africa

-27%

-25%

21%

26%

of which: China

-37%

-34%

Process Automation

-20%

11%

12%

Q1 2024 compared to Q1 2023

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-31%

-1%

-32%

-2%

The Americas

-24%

-2%

-26%

-1%

of which: United States

-34%

-7%

Asia, Middle East and Africa

-32%

-28%

-29%

-25%

of which: China

-46%

-43%

-37%

-34%

Robotics & Discrete Automation

-30%

-8%

-7%

Q1 2024 FINANCIAL INFORMATION

Order backlog growth rate reconciliation

March 31, 2024 compared to March 31, 2023

US$

Foreign

(as

exchange

Portfolio

Business Area

reported)

impact

changes

Comparable

Electrification

12%

Motion

10%

11%

Process Automation

Robotics & Discrete Automation

-31%

-29%

ABB Group

Other growth rate reconciliations

Q1 2024 compared to Q1 2023

Service orders growth rate

Services revenues growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Business Area

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Electrification

17%

18%

Motion

19%

23%

Process Automation

14%

Robotics & Discrete Automation

-1%

ABB Group

12%

14%

Q1 2024 FINANCIAL INFORMATION

Operational EBITA as

% of operational revenues (Operational EBITA margin)

Definition

Operational EBITA margin

Operational EBITA margin is Operational

EBITA as a percentage of

operational revenues.

Operational EBITA

Operational earnings before interest, taxes and acquisition-related

amortization (Operational EBITA)

represents Income from operations excluding:

●

acquisition-related amortization (as defined below),

●

restructuring, related and implementation costs,

●

changes in the amount recorded for obligations related to divested

businesses occurring after the divestment date (changes

in obligations related to

divested businesses),

●

gains and losses from sale of businesses (including fair value adjustment

on assets and liabilities held for sale,

if any),

●

acquisition- and divestment-related expenses and integration costs,

●

certain other non-operational items, as well as

●

foreign exchange/commodity timing differences in income

from operations consisting of: (a) unrealized gains

and losses on derivatives (foreign

exchange, commodities, embedded derivatives), (b) realized

gains and losses on derivatives where the underlying hedged

transaction has not yet been

realized, and (c) unrealized foreign exchange movements on receivables/payables

(and related assets/liabilities).

Certain other non-operational items generally includes certain regulatory,

compliance and legal costs, certain asset write downs/

impairments and certain other fair

value changes, as well as other items which are determined

by management on a case-by-case

basis.

Operational EBITA is our measure of

segment profit but is also used by management to evaluate

the profitability of the Company

as a whole.

Acquisition-related amortization

Amortization expense on intangibles arising upon acquisitions.

Restructuring, related and implementation costs

Restructuring, related and implementation costs consists

of restructuring and other related expenses, as well as internal and external

costs relating to the

implementation of group-wide restructuring programs.

Operational revenues

The Company presents operational revenues solely for the purpose

of allowing the computation of Operational EBITA

margin. Operational revenues are Total

revenues adjusted for foreign exchange/commodity timing differences

in total revenues of: (i) unrealized gains and losses

on derivatives, (ii) realized gains and

losses on derivatives where the underlying hedged transaction

has not yet been realized, and (iii) unrealized foreign

exchange movements on receivables (and

related assets). Operational revenues are not intended to be an

alternative measure to Total

revenues, which represent our revenues measured

in accordance

with U.S. GAAP.

Reconciliation

The following tables provide reconciliations of consolidated Operational

EBITA to Net Income and Operational

EBITA margin by business.

Reconciliation of consolidated Operational EBITA

to Net Income

Three months ended March 31,

($ in millions)

2024

2023

Operational EBITA

1,417

1,277

Acquisition-related amortization

(56)

(54)

Restructuring, related and implementation costs

(1)

(26)

(28)

Changes in obligations related to divested businesses

–

(3)

Gains and losses from sale of businesses

(2)

–

Acquisition- and divestment-related expenses and integration

costs

(19)

Certain other non-operational items

(63)

Foreign exchange/commodity timing differences in

income from operations

(34)

Income from operations

1,217

1,198

Interest and dividend income

Interest and other finance expense

(37)

(61)

Non-operational pension (cost) credit

Income from continuing operations before taxes

1,253

1,184

Income tax expense

(339)

(119)

Income from continuing operations, net of

tax

914

1,065

Loss from discontinued operations, net of tax

(1)

(5)

Net income

913

1,060

(1)

Includes impairment of certain assets.

Q1 2024 FINANCIAL INFORMATION

Reconciliation of Operational EBITA

margin by business

Three months ended March 31, 2024

Corporate and

Robotics &

Other and

Process

Discrete

Intersegment

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

elimination

Consolidated

Total revenues

3,680

1,829

1,601

864

(104)

7,870

Foreign exchange/commodity timing

differences in total revenues:

Unrealized gains and losses

on derivatives

148

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

(3)

–

(1)

Unrealized foreign exchange movements

on receivables (and related assets)

(31)

(17)

(21)

(11)

(2)

(82)

Operational revenues

3,693

1,858

1,626

859

(101)

7,935

Income (loss) from operations

769

301

234

(178)

1,217

Acquisition-related amortization

Restructuring, related and

implementation costs

(1)

–

Gains and losses from sale of businesses

–

Acquisition- and divestment-related expenses

and integration costs

–

Certain other non-operational items

–

Foreign exchange/commodity timing

differences in income from operations:

Unrealized gains and losses on derivatives

(foreign exchange, commodities,

embedded derivatives)

(4)

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

(1)

–

(1)

Unrealized foreign exchange movements

on receivables/payables

(and related assets/liabilities)

(10)

(11)

(12)

(6)

(3)

(42)

Operational EBITA

826

343

253

113

(118)

1,417

Operational EBITA margin (%)

22.4%

18.5%

15.6%

13.2%

n.a.

17.9%

(1)

Includes impairment

of certain

assets.

In the three months ended March 31, 2024, Certain other non

-operational items in the table above includes the following:

Three months ended March 31, 2024

Robotics &

Process

Discrete

Corporate

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

and Other

Consolidated

Certain other non-operational items:

Other income/expense relating to the

Power Grids joint venture

–

(8)

Regulatory, compliance and legal costs

–

Business transformation costs

(1)

–

Certain other fair values changes,

including asset impairments

–

Other non-operational items

–

Total

–

(1)

Amounts include

ABB Way process

transformation

costs of

$46 million

for the three

months ended

March 31, 2024.

Q1 2024 FINANCIAL INFORMATION

Three months ended March 31, 2023

Corporate and

Robotics &

Other and

Process

Discrete

Intersegment

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

elimination

Consolidated

Total revenues

3,590

1,940

1,436

937

(44)

7,859

Foreign exchange/commodity timing

differences in total revenues:

Unrealized gains and losses

on derivatives

(14)

(4)

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

(1)

–

Unrealized foreign exchange movements

on receivables (and related assets)

(7)

(4)

(1)

(3)

(19)

Operational revenues

3,568

1,940

1,446

938

(49)

7,843

Income (loss) from operations

655

353

200

115

(125)

1,198

Acquisition-related amortization

Restructuring, related and

implementation costs

(1)

–

Changes in obligations related to

divested businesses

–

Acquisition- and divestment-related expenses

and integration costs

Certain other non-operational items

–

(8)

(1)

Foreign exchange/commodity timing

differences in income from operations:

Unrealized gains and losses on derivatives

(foreign exchange, commodities,

embedded derivatives)

(15)

–

(2)

(7)

(22)

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

–

Unrealized foreign exchange movements

on receivables/payables

(and related assets/liabilities)

(3)

(2)

(1)

–

(7)

Operational EBITA

677

366

205

140

(111)

1,277

Operational EBITA margin (%)

19.0%

18.9%

14.2%

14.9%

n.a.

16.3%

(1)

Includes impairment

of certain

assets.

In the three months ended March 31, 2023, Certain other non

-operational items in the table above includes the following:

Three months ended March 31, 2023

Robotics &

Process

Discrete

Corporate

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

and Other

Consolidated

Certain other non-operational items:

Other income/expense relating to the

Power Grids joint venture

–

(13)

Certain other fair values changes,

including asset impairments

–

(2)

Business transformation costs

(1)

–

Other non-operational items

(2)

–

(22)

(23)

Total

–

(8)

(1)

Amounts include

ABB Way process

transformation

costs of

$30 million

for the three

months ended

March 31, 2023.

Q1 2024 FINANCIAL INFORMATION

Net debt

Definition

Net debt

Net debt is defined as Total

debt less Cash and marketable securities.

Total debt

Total debt is the sum

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

debt, and Long-term debt.

Cash and marketable securities

Cash and marketable securities is the sum of Cash and equivalents,

Restricted cash and Marketable securities and short-term

investments.

Reconciliation

($ in millions)

March 31, 2024

December 31, 2023

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

1,957

2,607

Long-term debt

6,346

5,221

Total debt

8,303

7,828

Cash and equivalents

4,102

3,891

Restricted cash

Marketable securities and short-term investments

2,097

1,928

Cash and marketable securities

6,217

5,837

Net debt

2,086

1,991

Net debt/Equity ratio

Definition

Net debt/Equity ratio

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

Equity

Equity is defined as Total

stockholders’ equity.

Reconciliation

($ in millions, unless otherwise indicated)

March 31, 2024

December 31, 2023

Total stockholders'

equity

13,382

14,057

Net debt (as defined above)

2,086

1,991

Net debt / Equity ratio

0.16

0.14

Net debt/EBITDA ratio

Definition

Net debt/EBITDA ratio

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

EBITDA.

EBITDA

EBITDA is defined as Income from operations for the trailing

twelve months preceding the balance sheet date before depreciation

and amortization for the same

trailing twelve-month period.

Reconciliation

($ in millions, unless otherwise indicated)

March 31, 2024

March 31, 2023

Income from operations for the three months ended:

June 30, 2023 / 2022

1,298

587

September 30, 2023 / 2022

1,259

708

December 31, 2023 / 2022

1,116

1,185

March 31, 2024 / 2023

1,217

1,198

Depreciation and Amortization for the three months

ended:

June 30, 2023 / 2022

196

207

September 30, 2023 / 2022

194

198

December 31, 2023 / 2022

199

March 31, 2024 / 2023

201

191

EBITDA

5,680

4,473

Net debt (as defined above)

2,086

3,826

Net debt / EBITDA

0.4

0.9

Q1 2024 FINANCIAL INFORMATION

Net working capital as a percentage of revenues

Definition

Net working capital as a percentage of revenues

Net working capital as a percentage of revenues is calculated

as Net working capital divided by Adjusted revenues for the

trailing twelve months.

Net working capital

Net working capital is the sum of (i) receivables, net, (ii) contract

assets, (iii) inventories, net, and (iv) prepaid expenses; less

(v) accounts payable, trade, (vi)

contract liabilities and (vii) other current liabilities (excluding primarily:

(a) income taxes payable, (b) current derivative

liabilities, (c) pension and other employee

benefits, (d) payables under the share buyback program and (e)

liabilities related to certain other restructuring-related activities);

and including the amounts related

to these accounts which have been presented as either assets

or liabilities held for sale.

Adjusted revenues for the trailing twelve months

Adjusted revenues for the trailing twelve months includes total revenues

recorded by ABB in the twelve months preceding the relevant

balance sheet date adjusted

to eliminate revenues of divested businesses and the estimated

impact of annualizing revenues of certain acquisitions

which were completed in the same trailing

twelve-month period.

Reconciliation

($ in millions, unless otherwise indicated)

March 31, 2024

March 31, 2023

Net working capital:

Receivables, net

7,385

7,174

Contract assets

1,135

1,009

Inventories, net

6,170

6,269

Prepaid expenses

314

304

Accounts payable, trade

(5,018)

(4,945)

Contract liabilities

(2,866)

(2,339)

Other current liabilities

(1)

(3,532)

(3,444)

Net working capital in assets and liabilities held for sale

–

136

Net working capital

3,588

4,164

Total revenues for the three months

ended:

June 30, 2023 / 2022

8,163

7,251

September 30, 2023 / 2022

7,968

7,406

December 31, 2023 / 2022

8,245

7,824

March 31, 2024 / 2023

7,870

7,859

Adjustment to annualize/eliminate revenues of certain acquisitions/divestments

(106)

(340)

Adjusted revenues for the trailing twelve months

32,140

30,000

Net working capital as a percentage of revenues (%)

11.2%

13.9%

(1)

Amounts exclude

$1,063 million

and $668 million

at March 31,

2024 and 2023,

respectively,

related primarily

to (a) income

taxes payable,

(b) current

derivative liabilities,

and other

employee benefits,

(d) payables

under the

share buyback

program

and (e) liabilities

related to certain

restructuring-related

activities.

Q1 2024 FINANCIAL INFORMATION

Free cash flow

Definition

Free cash flow

Free cash flow is calculated as net cash provided by operating activities

adjusted for: (i) purchases of property,

plant and equipment and intangible assets,

and (ii)

proceeds from sales of property,

plant and equipment.

Reconciliation

Three months ended March 31,

($ in millions, unless otherwise indicated)

2024

2023

Net cash provided by operating activities

726

282

Adjusted for the effects of operations:

Purchases of property, plant and

equipment and intangible assets

(181)

(151)

Proceeds from sale of property, plant and

equipment

Free cash flow

551

162

Free cash flow conversion to net income

Definition

Free cash flow conversion to net income

Free cash flow conversion to net income is calculated as free cash

flow divided by Adjusted net income attributable to

ABB.

Adjusted net income attributable to ABB

Adjusted net income attributable to ABB is calculated as net income

attributable to ABB adjusted for gains or

losses arising on sale of certain businesses and

certain other significant items within net income which are also

excluded / adjusted for when calculating operating

cashflows.

Free cash flow for the trailing twelve months

Free cash flow for the trailing twelve months includes free cash flow

recorded by ABB in the twelve months preceding the

relevant balance sheet date.

Net income for the trailing twelve months

Net income for the trailing twelve months includes net income

recorded by ABB (as adjusted) in the twelve months preceding

the relevant balance sheet date.

Reconciliation

Trailing twelve months to

($ in millions, unless otherwise indicated)

March 31, 2024

December 31, 2023

Net cash provided by operating activities

4,734

4,290

Adjusted for the effects of operations:

Purchases of property, plant and

equipment and intangible assets

(800)

(770)

Proceeds from sale of property, plant and

equipment

122

147

Free cash flow

4,056

3,667

Adjusted net income attributable to ABB

(1)

3,555

3,686

Free cash flow conversion to net income

114%

99%

(1)

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

Reconciliation of the trailing twelve months to

March 31, 2024

($ in millions)

Net cash provided by

operating activities

Purchases of

property, plant and

equipment and

intangible assets

Proceeds

from sale of property,

plant and equipment

Adjusted net income

attributable to ABB

(1)

Q2 2023

760

(180)

906

Q3 2023

1,351

(175)

829

Q4 2023

1,897

(264)

915

Q1 2024

726

(181)

905

Total for the trailing twelve

months to March 31, 2024

4,734

(800)

122

3,555

(1)

Adjusted net income

attributable

to ABB for

Q3 2023, is adjusted

to exclude the

gain on sale

of the Power

Conversion

Division of

$53 million.

In Q4 2023,

an additional

$6 million

was adjusted

for the gain

on sale of

the Power

Conversion

Division.

Q1 2024 FINANCIAL INFORMATION

Net finance income (expense)

Definition

Net finance income (expense)

is calculated as Interest and dividend income less

Interest and other finance expense.

Reconciliation

Three months ended March 31,

($ in millions)

2024

2023

Interest and dividend income

Interest and other finance expense

(37)

(61)

Net finance income (expense)

(21)

Book-to-bill ratio

Definition

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

revenues.

Reconciliation

Three months ended March 31,

2024

2023

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

Orders

Revenues

Book-to-bill

Orders

Revenues

Book-to-bill

Electrification

4,392

3,680

1.19

4,141

3,590

1.15

Motion

2,303

1,829

1.26

2,262

1,940

1.17

Process Automation

1,697

1,601

1.06

2,113

1,436

1.47

Robotics & Discrete Automation

701

864

0.81

1,001

937

1.07

Corporate and Other

(incl. intersegment eliminations)

(119)

(104)

n.a.

(67)

(44)

n.a.

ABB Group

8,974

7,870

1.14

9,450

7,859

1.20

Q1 2024 FINANCIAL INFORMATION

Free cash flow for past periods

Effective January 1, 2024, the Company changed the

presentation of discontinued operations in its statement of

cash flows to an alternate allowable policy.

As a

result, the total cash flows for operating, investing and financing

activities within discontinued operations are no longer shown

separately but instead all cash flows

in discontinued operations are presented within each line item

as appropriate in the statement of cash flows. As this

presentation change represents a change

accounting policy, all prior periods

presented have been reclassified to conform to the current period

presentation.

The table below presents the reconciliation of Free cash flow as

defined on page 36 for 2023 and 2022 by quarter,

restated to reflect this change in presentation.

Reconciliation:

($ in millions)

Net cash provided by

(used in) operating

activities

Purchases of

property, plant and

equipment and

intangible assets

Proceeds

from sale of property,

plant and equipment

Free cash flow

For the three months ended:

March 31, 2022

(573)

(187)

(725)

June 30, 2022

382

(151)

262

September 30, 2022

791

(165)

645

December 31, 2022

687

(259)

470

March 31, 2023

282

(151)

162

June 30, 2023

760

(180)

606

September 30, 2023

1,351

(175)

1,186

December 31, 2023

1,897

(264)

1,713

Q1 2024 FINANCIAL INFORMATION

—

ABB Ltd

~~Affolternstrasse 44~~ Corporate Communications

P.O. Box

8131

8050

Zurich

8050 Zurich

Switzerland

Tel:

+41 (0)43

317 71

~~1/1~~ 11

www.abb.com

January 1 — March 31, 2024

ABB Ltd announces that the following

members of the Executive Committee

or Board of Directors of ABB

have purchased,

sold or been granted ABB’s registered shares, call options

and warrant appreciation rights (“WARs”), in the following amounts:

Name

Date

Type of Instrument

Received*

Purchased

Sold

Price / Instrument

Timo Ihamuotila

February 05, 2024

27,000

CHF

37.37

Key:

* Received instruments were delivered

as part of the ABB Ltd Director’s or

Executive Committee Member’s

compensation or as compensation

for foregone

benefits

SIGNATURES

Pursuant to the requirements of the Securities

Exchange Act of 1934, the registrant

has duly caused this report to be signed

its behalf by the undersigned, thereunto

duly authorized.

ABB LTD

Date: April ~~March 28~~18, 2024.

By:

/s/ Ann-Sofie Nordh

Name:

Ann-Sofie Nordh

Title:

Group Senior Vice President and

Head of Investor Relations

Date: April ~~March 28~~18, 2024.

By:

/s/ ~~Richard A. Brown~~Natalia Shehadeh

Name:

~~Richard A. Brown~~Natalia Shehadeh

Title:

~~Group~~Chief Integrity ~~Senior~~Officer, ~~Vice~~Interim ~~President~~General ~~and~~

~~Chief~~ Counsel and Corporate ~~& Finance~~Secretary

Filing Compare · ABB LTD