===== SIDA 1 ===== — ZURICH, SWITZERLAND, APRIL 18, 2024 Q1 2024 results Positive book-to-bill, record-high margin and strong cash flow • Orders $8,974 million, -5%; comparable1 -4% • Revenues $7,870 million, 0%; comparable1 +2% • Income from operations $1,217 million; margin 15.5% • Operational EBITA1 $1,417 million; margin1 17.9% • Basic EPS $0.49; -12%2 • Cash flow from operating activities $726 million; +157% — “Against high comparables, our Q1 performance shows the year has started off well with stronger than expected order momentum, record-high margin and strong cash delivery. This makes us confident to nudge up our margin expectation for 2024.” Björn Rosengren, CEO KEY FIGURES CHANGE ($ millions, unless otherwise indicated) Q1 2024 Q1 2023 US$ Comparable1 Orders 8,974 9,450 -5% -4% Revenues 7,870 7,859 0% 2% Gross Profit 2,935 2,716 8% as % of revenues 37.3% 34.6% +2.7 pts Income from operations 1,217 1,198 2% Operational EBITA1 1,417 1,277 11% 11% 3 as % of operational revenues1 17.9% 16.3% +1.6 pts Income from continuing operations, net of tax 914 1,065 -14% Net income attributable to ABB 905 1,036 -13% Basic earnings per share ($) 0.49 0.56 -12%2 Cash flow from operating activities 726 282 157% Free cash flow1 551 162 240% 1 For a reconciliation of non-GAAP measures, see “supplemental reconciliations and definitions” in the attached Q1 2024 Financial Information. 2 EPS growth rates are computed using unrounded amounts. 3 Constant currency (not adjusted for portfolio changes). Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange — Q1 2024 First three months Press Release ===== SIDA 2 ===== AB B IN TE RIM RE P ORT I Q1 2 02 4 2 My key take-aways from the first quarter of 2024 are the better than expected order intake of $9 billion, positive book-to-bill of 1.14 and record-high Operational EBITA margin as well as the free cash flow of $551 million representing a strong delivery for a first quarter. We published our sustainability report, where a highlight was the proof point of one of our core customer value propositions - reduced greenhouse gas (GHG) emissions. From products sold in 2023, and through their lifecycle, we enabled our customers to avoid 74 megatons of GHG emissions. At the current total of 139 megatons, we are on a good path towards our ambition of helping customers avoid 600 megatons of CO₂e emissions throughout the lifetime of products sold from 2022 to 2030. As expected, orders declined from last year’s record-high comparable, however the drop was limited at 5% (4% comparable). To summarize the quarter, we see a continued high level of customer activity in the project and systems areas, and I am encouraged by the positive order development in Electrification’s short-cycle businesses. So, while ABB’s total orders declined in the first quarter, I feel even more confident about 2024 than I did coming into the year. It was impressive to see new record-high order intake in both Electrification and Motion business areas. Process Automation orders declined from the all-time-high comparable, but remained fairly consistent with strong recent quarterly levels. At the start of this year, we called the fourth quarter the trough for Robotics & Discrete Automation order level. This realized, and as expected order intake increased sequentially. However, it declined sharply year-on-year on the back of customers normalizing order patterns after a pre-buy period. Revenues remained stable (up 2% comparable), with comparable growth supported in equal parts by price and volumes. I was pleased to see the positive gross margin improvement of 270 basis points to 37.3%, supported by a positive development in all business areas. A more efficient execution of slightly higher volumes and price contributed to the 160 basis points increase in Operational EBITA margin to the new record-high of 17.9%. In my view this is a good sign that there is still upside potential in ABB and we can make mid-term improvements within the new higher margin target range announced in November. The strong cash flow start to the year positions us for what we anticipate to be another good annual free cash flow delivery of at least similar to last year’s level. Using the cash to expand know-how and footprint through acquisitions is an important path to creating long-term shareholder value. It was nice to see the announced acquisition of SEAM, which would add energy asset management and advisory services to clients across industrial and commercial building markets to the Electrification Service division. We have a good target pipeline, including some deals which are slightly more sizeable than most of the recent announcements. The share buyback program is a tool we use to distribute residual excess cash, and we announced another annual program of up to $1 billion which launched on April 1. The size of the program is consistent with last year’s, although the time frame for execution is shorter as it runs until the end of January 2025, to align with the announcement of Q4 2024 results and 2024 dividend proposal. During the quarter we announced my decision to retire as CEO from ABB. I remain fully committed until the end of July when Morten Wierod takes the reins, and thereafter I will support the transition in an advisory role until the end of the year. I am happy to see Morten take this step and I am confident that the ABB Way operating model will be even further engrained in our ways of working under his already proven leadership. While we regret to see him go, I want to congratulate Tarak Mehta on his new opportunity outside of ABB. Tarak has made an outstanding contribution to the success of our company and I wish him all the best for this next step on his journey. The process to find new leaders to the business areas Electrification and Motion is ongoing and Morten looks to have a full team in place when he takes office in August. Björn Rosengren CEO In the second quarter of 2024, we anticipate a mid-single- digit comparable revenue growth year-on-year and the Operational EBITA margin to be slightly higher than in the first quarter 2024. In full-year 2024, we expect a positive book-to-bill, comparable revenue growth to be about 5% and the Operational EBITA margin to be about 18%. Outlook CEO summary ===== SIDA 3 ===== AB B IN TE RIM RE P ORT I Q1 2 02 4 3 The first quarter order intake of $8,974 million represents one of the strongest quarterly levels for ABB Group, yet orders declined by 5% (4% comparable) from last year’s record-high. Two business areas even improved from last year’s all-time-highs with Motion’s order growth at 2% (1% comparable) and Electrification at a strong 6% (8% comparable). In Electrification, the year-on-year improvement was supported by a positive development in both the long- and short-cycle businesses. In Process Automation the underlying market activity remained robust, but year-on-year orders declined by 20% (20% comparable) with growth challenged by the record-high comparable and the timing of orders in the current quarter. In Robotics & Discrete Automation, orders declined sharply by 30% (30% comparable) due to the still on-going normalization of order patterns in discrete automation and a softer robotics market. Orders in the Americas dropped by 3% (3% comparable) as a positive comparable development in the United States was offset by declines elsewhere and mainly due to the timing of large orders. Europe declined by 8% (9% comparable) weighed down by important markets like Germany and Italy. Asia, Middle East and Africa declined by 4% (0% comparable) where the strong comparable development in countries like India, Japan and Australia offset a sharp decline in China. In transport & infrastructure, there were positive developments in marine, ports and rail. Industrial areas with particularly strong development in all regions were utilities and datacenters. Orders in the buildings segment improved overall, due to the combined impact from a positive development in the commercial area driven by the United States, while the residential segment remained stable in the US and softened slightly in other regions. In the robotics-related segments, orders declined in the automotive, general industry and consumer-related segments. The machine builder segment declined as customers normalized order patterns after earlier pre- buys. On a very challenging comparable, orders declined in the large process-related segments of oil & gas, pulp & paper and mining. However, a positive development was recorded in the still less sizeable low carbon-related areas such as nuclear, carbon capture, hydrogen etc. The underlying market sentiment remained robust across the board. Revenues remained stable (up 2% comparable) and amounted to $7,870 million. On a business area level there were variances, with strong growth in Electrification and Process Automation, while Motion and Robotics & Discrete Automation declined. Group revenues were supported by execution of the strong order backlog which more than offset weakness in parts of the short-cycle businesses. In total, price and volume contributed in equal parts to comparable growth. Growth Q1 Q1 Change year-on-year Orders Revenues Comparable -4% 2% FX 0% -1% Portfolio changes -1% -1% Total -5% 0% Orders by region ($ in millions, unless otherwise indicated) CHANGE Q1 2024 Q1 2023 US$ Comparable Europe 3,298 3,582 -8% -9% The Americas 2,904 2,985 -3% -3% Asia, Middle East and Africa 2,772 2,883 -4% 0% ABB Group 8,974 9,450 -5% -4% Revenues by region ($ in millions, unless otherwise indicated) CHANGE Q1 2024 Q1 2023 US$ Comparable Europe 2,748 2,872 -4% -5% The Americas 2,789 2,653 5% 7% Asia, Middle East and Africa 2,333 2,334 0% 5% ABB Group 7,870 7,859 0% 2% Orders and revenues ===== SIDA 4 ===== AB B IN TE RIM RE P ORT I Q1 2 02 4 4 Gross profit Gross profit increased by 8% (9% constant currency) to $2,935 million, reflecting a gross margin improvement of 270 basis points to 37.3%. Gross margin improved in all four business areas. Income from operations Income from operations amounted to $1,217 million and improved by 2% year-on-year. Compared with the last year period, the earnings improvement was supported by a stronger 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 -$118 million, of which -$64 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 $0.56 in the last year period. Earnings Operational EBITA ($ in millions) Q1 2024 Q1 2023 Corporate and Other E-mobility (54) (28) Corporate costs, intersegment eliminations and other1 (64) (83) Total (118) (111) 1 Majority of which relates to underlying corporate ===== SIDA 5 ===== AB B IN TE RIM RE P ORT I Q1 2 02 4 5 Net working capital Net working capital amounted to $3,588 million, decreasing year-on-year from $4,164 million as higher receivables and contract assets were more than offset by higher customer advances, and accounts payables. Net working capital as a percentage of revenues1 was 11.2% which declined from 13.9% one year ago. Capital expenditures Purchases of property, plant and equipment and intangible assets amounted to $181 million. Net debt Net debt1 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 $1 billion was launched on April 1, 2024, and will run to 31 January, 2025. ABB’s total number of issued shares, including shares held in treasury, amounts to 1,882,002,575. Balance sheet & Cash flow ($ in millions, unless otherwise indicated) Mar. 31 2024 Mar. 31 2023 Dec. 31 2023 Short term debt and current maturities of long-term debt 1,957 3,433 2,607 Long-term debt 6,346 5,230 5,221 Total debt 8,303 8,663 7,828 Cash & equivalents 4,102 3,438 3,891 Restricted cash - current 18 19 18 Marketable securities and short-term investments 2,097 1,380 1,928 Cash and marketable securities 6,217 4,837 5,837 Net debt (cash)* 2,086 3,826 1,991 Net debt (cash)* to EBITDA ratio 0.4 0.9 0.4 Net debt (cash)* to Equity ratio 0.16 0.30 0.14 * At March 31, 2024, March, 31, 2023 and Dec. 31, 2023, net debt(cash) excludes net pension (assets)/liabilities of $(189) million, $(301) million and $(191) million, respectively. ===== SIDA 6 ===== AB B IN TE RIM RE P ORT I Q1 2 02 4 6 Orders and revenues The first quarter order intake of $4,392 million represents a new record level, and increased by 6% (8% comparable) from last year. Continued robust demand for the project and systems businesses which this quarter was coupled with strong year-on-year growth in the short-cycle businesses. The book-to-bill ratio was 1.19. • Orders remained stable or increased in most customer segments with particular strength in datacenters and utilities. The overall buildings segment improved, as a positive development in the commercial area driven by the United States more than offset a slight weakness in the residential segment, which was stable in the US, and softened slightly in other regions. • From a geographical perspective order intake improved in all three regions. Europe was up by 3% (2% comparable). Growth in the Americas was 9% (11% comparable) with the United States outpacing the region at 13% (17% comparable). In Asia, Middle East and Africa orders improved by 6% (11% comparable) with strong growth in countries like India offsetting a slight drop in China of 7% (2% comparable). • Revenues increased by 3% (6% comparable) to $3,680 million with a positive development in most divisions. Higher volumes were the main driver to comparable growth, with the added support from slightly increased pricing. Execution of the order backlog combined with higher demand in the short-cycle businesses supported the quarterly revenue generation. Profit Record-high Operational EBITA of $826 million and all- time-high Operational EBITA margin of 22.4%, up by 340 basis points year-on-year. • Operational leverage on higher volumes and impact from continuous improvement measures were the key drivers to the higher margin, year-on-year. • A positive price impact more than offset higher salary-related costs as well as an increase in R&D and SG&A spend. • Margins improved or remained stable in all divisions. — Electrification CHANGE ($ millions, unless otherwise indicated) Q1 2024 Q1 2023 US$ Comparable Orders 4,392 4,141 6% 8% Order backlog 7,389 7,101 4% 12% Revenues 3,680 3,590 3% 6% Operational EBITA 826 677 22% as % of operational revenues 22.4% 19.0% +3.4 pts Cash flow from operating activities 547 395 38% No. of employees (FTE equiv.) 50,700 51,130 Growth Q1 Q1 Change year-on-year Orders Revenues Comparable 8% 6% FX 0% 0% Portfolio changes -2% -3% Total 6% 3% ===== SIDA 7 ===== AB B IN TE RIM RE P ORT I Q1 2 02 4 7 Orders and revenues Robust customer activity in the projects- and systems- related businesses offset some weakness in the short-cycle areas. In total, a new all-time-high order level of $2,303 million was achieved, representing an improvement of 2% (1% comparable) from last year. Book-to-bill was 1.26. Some initial encouraging sequential trading signs in the short-cycle businesses were noted. • The Traction division was the engine for order growth, including a large order of $150 million to supply complete traction packages for 65 new six-car passenger trains for the Queensland Train Manufacturing Program. The new trains are to be operational in time for the Brisbane 2032 Olympics. • Besides the rail segment, a stronger order momentum was noted in the process-related segments of oil & gas and power generation including grid stabilization equipment. Some slowness from last year’s high level was noted in food & beverage, pulp & paper, metals and chemicals. HVAC remained muted. • Orders in Asia, Middle East and Africa were up by 16% (21% comparable), supported by the large order in Australia, while China declined by 12% (8% comparable). The Americas softened by 1% (4% comparable) including the decline of 4% (6% comparable) in the United States. Europe declined by 8% (11% comparable). • Revenues amounted to $1,829 million and declined by 6% (6% comparable) due to weakness in the short-cycle businesses and parts of the backlog execution impacted by some delivery timing changes. Profit Operational EBITA of $343 million declined by 6% and the Operational EBITA margin softened by 40 basis points to 18.5%. • Operational leverage on the lower production volumes in the short-cycle businesses weighed on results. • The positive price impact and the stringent cost focus more than offset the adverse impacts from the higher expenses related to salaries, R&D and SG&A, year-on-year. — Motion CHANGE ($ millions, unless otherwise indicated) Q1 2024 Q1 2023 US$ Comparable Orders 2,303 2,262 2% 1% Order backlog 5,612 5,102 10% 11% Revenues 1,829 1,940 -6% -6% Operational EBITA 343 366 -6% as % of operational revenues 18.5% 18.9% -0.4 pts Cash flow from operating activities 352 149 136% No. of employees (FTE equiv.) 22,380 21,000 Growth Q1 Q1 Change year-on-year Orders Revenues Comparable 1% -6% FX 0% -1% Portfolio changes 1% 1% Total 2% -6% ===== SIDA 8 ===== AB B IN TE RIM RE P ORT I Q1 2 02 4 8 Orders and revenues The underlying markets remained buoyant. However, last year’s record high comparable was strongly supported by the timing of large orders received, and in contrast some timing delay in orders in the current quarter were noted. Order intake declined by 20% (20% comparable) and amounted to $1,697 million, a level broadly similar to recent quarters. Book-to-bill was positive at 1.06. • On a very challenging comparable, orders declined in the large process-related segments oil & gas, pulp & paper and mining. However, a positive development was recorded for ports and in the less sizeable low carbon-related areas such as nuclear, carbon capture, hydrogen etc. The underlying market sentiment remained robust across the board. • On execution of the high order backlog, revenues increased strongly at 11% (12% comparable) and amounted to $1,601 million with a positive contribution from all divisions, supported by strong contribution from the service business. Profit With support from all divisions, the Operational EBITA margin improved by 140 basis points to the new record- high level of 15.6% and the Operational EBITA improved by 23% to $253 million. • Profitability was supported by the mix in execution of the order backlog which hosts a higher gross margin, whilst keeping SG&A expenses on a stable percentage of revenues. • A slight positive price impact offset increased salary- related expenses, year-on-year. • Operational EBITA margin improved in all divisions with all now in the “teens” margin range. — Process Automation CHANGE ($ millions, unless otherwise indicated) Q1 2024 Q1 2023 US$ Comparable Orders 1,697 2,113 -20% -20% Order backlog 7,343 6,893 7% 9% Revenues 1,601 1,436 11% 12% Operational EBITA 253 205 23% as % of operational revenues 15.6% 14.2% +1.4 pts Cash flow from operating activities 229 112 104% No. of employees (FTE equiv.) 21,340 20,500 Growth Q1 Q1 Change year-on-year Orders Revenues Comparable -20% 12% FX 0% -1% Portfolio changes 0% 0% Total -20% 11% ===== SIDA 9 ===== AB B IN TE RIM RE P ORT I Q1 2 02 4 9 Orders and revenues As anticipated, order intake improved from the fourth quarter, with the strongest increase recorded in the Robotics division. However, total orders declined by 30% (30% comparable) from last year’s high comparable and amounted to $701 million. • Orders declined at a double-digit rate in both divisions, although more pronounced in Machine Automation. • The Robotics demand declined in all customer segments year-on-year. The sequential pattern was encouraging and inventory levels in the channels did seemingly align with the current market situation towards the end of quarter. • Machine Automation customers held off placing orders while awaiting deliveries from the recent pre-buy period. Order backlog remains high and supports deliveries into the latter part of the summer. • From a geographical perspective, orders in the Americas declined by 24% (26% comparable). The decline in Europe was 31% (32% comparable). In Asia, Middle East and Africa orders declined by 32% (28% comparable), hampered by China being down by 46% (43% comparable). • Revenues of $864 million represented a decline of 8% (7% comparable) from last year, including a positive price impact. This is the combined effect of a strong increase in the Machine Automation division executing the order backlog; and a decline in the larger robotics division where the order backlog has normalized and the short-cycle business was under pressure. Profit Operational leverage on lower volumes put pressure on the Operational EBITA which declined by 19% to $113 million and the Operational EBITA margin which dropped by 170 basis points year-on-year to 13.2%. • A solid execution of higher volumes resulted in improved profitability in the Machine Automation business. This was however more than offset by lower production volumes triggering underabsorption of fixed costs in the short-cycle Robotics business. • A positive price contribution from order backlog deliveries and the efficiency measures activated as a response to the soft market climate broadly offset adverse impacts from increased labor, SG&A and R&D expenses. — Robotics & Discrete Automation CHANGE ($ millions, unless otherwise indicated) Q1 2024 Q1 2023 US$ Comparable Orders 701 1,001 -30% -30% Order backlog 1,918 2,782 -31% -29% Revenues 864 937 -8% -7% Operational EBITA 113 140 -19% as % of operational revenues 13.2% 14.9% -1.7 pts Cash flow from operating activities 95 130 -27% No. of employees (FTE equiv.) 11,380 10,850 Growth Q1 Q1 Change year-on-year Orders Revenues Comparable -30% -7% FX 0% -1% Portfolio changes 0% 0% Total -30% -8% ===== SIDA 10 ===== AB B IN TE RIM RE P ORT I Q1 2 02 4 10 Events from the Quarter • ABB and CERN, the European Laboratory for Particle Physics, have collaborated on a strategic research partnership to enhance energy efficiency in cooling and ventilation systems at CERN’s particle physics institute in Geneva, Switzerland. Through energy efficiency audits, they identified a 17.4% energy- saving potential across a fleet of 800 motors. This translates to annual energy savings of up to 31 gigawatt-hours (GWh) - enough to power over 18,000 European households and avoid 4 kilotonnes of CO₂ emissions. The initiative surpassed CERN’s goal of reducing cooling and ventilation energy use by 10-15%. • SEV, the main electricity supplier in the Faroe Islands, contracted ABB to enhance grid stability during the transition to green energy. ABB is providing synchronous condenser (SC) technology to stabilize the power grid as fossil-fueled plants are phased out in favor of renewable generation. The latest SC will be deployed on the island of Borðoy where it will reinforce the local electricity supply for around 5,000 people. • ABB will deliver a shore-to-ship power supply solution allowing DEME’s diverse fleet to avoid emissions when berthed in the port of Vlissingen, the Netherlands. The technology supports DEME’s long- term decarbonization strategy, providing flexibility to adapt to changing grid capabilities. ABB will install shore power for suitably equipped vessels calling at Vlissingen’s DEME base by the end of 2024, as part of a government-supported initiative stimulating the use of shore power facilities in Dutch seaports. Connecting to shore power while at berth is expected to become mandatory at main EU ports from 2030 under FuelEU Maritime regulations. • ABB Electrification’s facility in Vaasa has achieved a 1,400t CO2e 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. — Sustainability Q1 outcome • 28% reduction year-on-year of CO₂e 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. Q1 2024 Q1 2023 CHANGE 12M ROLLING CO₂e own operations emissions, Ktons scope 1 and 21 35 49 -28% 143 Lost Time Injury Frequency Rate (LTIFR), frequency / 200,000 working hours 2 0.14 0.15 -7% 0.13 Proportion of women in senior management roles in % 21.5 19.0 +2.5 pts 20.8 1 CO₂ equivalent emissions from site, energy use, SF₆ and fleet, previous quarter 2 Current quarter Includes all incidents reported until April 5, 2024 ===== SIDA 11 ===== AB B IN TE RIM RE P ORT I Q1 2 02 4 11 During Q1 2024 • On February 23, ABB announced that Morten Wierod will succeed Björn Rosengren as CEO on August 1, 2024. From August 1, 2024, until his retirement at the end of the year, Björn Rosengren will advise and assist Morten Wierod and the Executive Committee to ensure a seamless transition. Morten Wierod joined ABB in 1998 and has been serving as a member of ABB's Executive Committee since 2019, currently as President of the Electrification Business Area and previously as President of the Motion Business Area. The search process for the position of President, Electrification Business Area has been launched. • On March 21, the Annual General Meeting elected two new Board members, namely Johan Forssell and Mats Rahmström. They replace Jacob Wallenberg and Gunnar Brock who decided not to stand for re- election. • On March 21, ABB announced that the Board of Directors has approved a new share buyback program for capital reduction purposes of up to $1 billion. This new program launched on April 1. It will be executed on a second trading line on the SIX Swiss Exchange and is planned to run until January 31, 2025, to adjust the timing of its share buyback cycle to align with the announcement of its Q4 2024 results and 2024 dividend proposal. • On March 27, ABB announced that Tarak Mehta, President Motion Business Area and Member of the Executive Committee, has decided to leave ABB to accept the role as CEO of another company. Tarak will leave ABB at the end of July this year. The search process for the position of President, Motion Business Area has been launched. Significant events ===== SIDA 12 ===== AB B IN TE RIM RE P ORT I Q1 2 02 4 12 Acquisitions Company/unit Closing date Revenues, $ in millions1 No. of employees 2024 Process Automation Real Tech Water 1-Feb 6 38 Robotics & Discrete Automation Meshmind 1-Feb <5 50 2023 Robotics & Discrete Automation Sevensense 21-Dec <5 35 E-mobility Imagen Energy Inc 13-Nov <5 4 Motion Spring Point Solutions Llc 1-Nov <5 13 E-mobility Vourity AB 25-Oct <5 9 Electrification Eve Systems 1-Jun ~20 50 Motion Siemens low voltage NEMA Motors 2-May ~60 600 Acquisitions and divestments, last twelve months ABB Group Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 EBITDA, $ in million 1,389 1,494 1,453 1,315 5,651 1,418 Return on Capital Employed, % n.a. n.a. n.a. n.a. 21.10 n.a. Net debt/Equity 0.30 0.31 0.21 0.14 0.14 0.16 Net debt/ EBITDA 12M rolling 0.9 0.8 0.5 0.4 0.4 0.4 Net working capital, % of 12M rolling revenues 13.9% 14.7% 12.8% 10.2% 10.2% 11.2% Earnings per share, basic, $ 0.56 0.49 0.48 0.50 2.02 0.49 Earnings per share, diluted, $ 0.55 0.48 0.47 0.50 2.01 0.49 Dividend per share, CHF n.a. n.a. n.a. n.a. 0.87 n.a. Share price at the end of period, CHF 31.37 35.18 32.80 37.30 37.30 41.89 Number of employees (FTE equivalents) 106,170 108,320 107,430 107,870 107,870 108,700 No. of shares outstanding at end of period (in millions) 1,862 1,860 1,849 1,842 1,842 1,851 Additional figures Divestments Company/unit Closing date Revenues, $ in millions1 No. of employees 2023 Electrification Power Conversion division 3-Jul ~440 1,500 Electrification Industrial Plugs & Sockets business 3-Jul ~12 2 Process Automation UK technical engineering consultancy business 1-May ~20 160 Note: comparable growth calculation includes acquisitions and divestments with revenues of greater than $50 million. 1 Represents the estimated revenues for the last fiscal year prior to the announcement of the respective acquisition/divestment unless otherwise stated. Additional 2024 guidance ($ in millions, unless otherwise stated) FY 20241 Q2 2024 Corporate and Other Operational EBITA2 ~(300) ~(75) Non-operating items Acquisition-related amortization ~(210) ~(60) Restructuring and related3 ~(200) ~(60) ABB Way transformation ↑~(200) ~(50) from ~(180) ($ in millions, unless otherwise stated) FY 2024 Net finance expenses ↓~(50) from ~(120) Effective tax rate ~25% 4 Capital Expenditures ~(900) 1 Excludes one project estimated to a total of ~$100 million, that is ongoing in the non-core business. Exact exit timing is difficult to assess due to legal proceedings etc. 2 Excludes Operational EBITA from E-mobility business. 3 Includes restructuring and restructuring-related as well as separation and integration costs. 4 Excludes the impact of acquisitions or divestments or any significant non-operational items. ===== SIDA 13 ===== AB B IN TE RIM RE P ORT I Q1 2 02 4 13 This press release includes forward-looking information and statements as well as other statements concerning the outlook for our business, including those in the sections of this release titled “CEO summary,” “Outlook,” and “Sustainability”. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions, the economic conditions of the regions and industries that are major markets for ABB. These expectations, estimates and projections are generally identifiable by statements containing words such as “anticipates,” “expects,” “estimates,” “plans,” “targets,” “guidance,” “likely” or similar expressions. However, there are many risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking information and statements made in this press release and which could affect our ability to achieve any or all of our stated targets. Some important factors that could cause such differences include, among others, business risks associated with the volatile global economic environment and political conditions, costs associated with compliance activities, market acceptance of new products and services, changes in governmental regulations and currency exchange rates and such other factors as may be discussed from time to time in ABB Ltd’s filings with the U.S. Securities and Exchange Commission, including its Annual Reports on Form 20-F. Although ABB Ltd believes that its expectations reflected in any such forward looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved. The Q1 2024 results press release and presentation slides are available on the ABB News Center at www.abb.com/news and on the Investor Relations homepage at www.abb.com/investorrelations. A conference call and webcast for analysts and investors is scheduled to begin at 10:00 a.m. CET. To pre-register for the conference call or to join the webcast, please refer to the ABB website: www.abb.com/investorrelations. The recorded session will be available after the event on ABB’s website. Important notice about forward-looking information For additional information please contact: Media Relations Phone: +41 43 317 71 11 Email: media.relations@ch.abb.com Investor Relations Phone: +41 43 317 71 11 Email: investor.relations@ch.abb.com ABB Ltd Affolternstrasse 44 8050 Zurich Switzerland 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. Financial calendar 2024 July 18 Q2 2024 results October 17 Q3 2024 results ===== SIDA 14 ===== 1 Q1 2024 FINANCIAL INFORMATION April 18, 2024 Q1 2024 Financial information ===== SIDA 15 ===== 2 Q1 2024 FINANCIAL INFORMATION — Financial Information Contents 03 ─ 05 Key Figures 06 ─ 27 Consolidated Financial Information (unaudited) 28 ─ 38 Supplemental Reconciliations and Definitions ===== SIDA 16 ===== 3 Q1 2024 FINANCIAL INFORMATION — Key Figures CHANGE ($ in millions, unless otherwise indicated) Q1 2024 Q1 2023 US$ Comparable(1) Orders 8,974 9,450 -5% -4% Order backlog (end March) 22,015 21,607 2% 6% Revenues 7,870 7,859 0% 2% Gross Profit 2,935 2,716 8% as % of revenues 37.3% 34.6% +2.7 pts Income from operations 1,217 1,198 2% Operational EBITA(1) 1,417 1,277 11% 11%(2) as % of operational revenues(1) 17.9% 16.3% +1.6 pts Income from continuing operations, net of tax 914 1,065 -14% Net income attributable to ABB 905 1,036 -13% Basic earnings per share ($) 0.49 0.56 -12%(3) Cash flow from operating activities 726 282 157% Free cash flow(1) 551 162 240% (1) For a reconciliation of non -GAAP measures see “ Supplemental Reconciliations and Definitions ” on page 28. (2) Constant currency (not adjusted for portfolio changes). (3) EPS growth rates are computed using unrounded amounts. ===== SIDA 17 ===== 4 Q1 2024 FINANCIAL INFORMATION CHANGE ($ in millions, unless otherwise indicated) Q1 2024 Q1 2023 US$ Local Comparable Orders ABB Group 8,974 9,450 -5% -5% -4% Electrification 4,392 4,141 6% 6% 8% Motion 2,303 2,262 2% 2% 1% Process Automation 1,697 2,113 -20% -20% -20% Robotics & Discrete Automation 701 1,001 -30% -30% -30% Corporate and Other 142 196 Intersegment eliminations (261) (263) Order backlog (end March) ABB Group 22,015 21,607 2% 4% 6% Electrification 7,389 7,101 4% 6% 12% Motion 5,612 5,102 10% 11% 11% Process Automation 7,343 6,893 7% 9% 9% Robotics & Discrete Automation 1,918 2,782 -31% -29% -29% Corporate and Other (incl. intersegment eliminations) (247) (271) Revenues ABB Group 7,870 7,859 0% 1% 2% Electrification 3,680 3,590 3% 3% 6% Motion 1,829 1,940 -6% -5% -6% Process Automation 1,601 1,436 11% 12% 12% Robotics & Discrete Automation 864 937 -8% -7% -7% Corporate and Other 125 169 Intersegment eliminations (229) (213) Income from operations ABB Group 1,217 1,198 Electrification 769 655 Motion 301 353 Process Automation 234 200 Robotics & Discrete Automation 91 115 Corporate and Other (incl. intersegment eliminations) (178) (125) Income from operations % ABB Group 15.5% 15.2% Electrification 20.9% 18.2% Motion 16.5% 18.2% Process Automation 14.6% 13.9% Robotics & Discrete Automation 10.5% 12.3% Operational EBITA ABB Group 1,417 1,277 11% 11% Electrification 826 677 22% 23% Motion 343 366 -6% -6% Process Automation 253 205 23% 23% Robotics & Discrete Automation 113 140 -19% -18% Corporate and Other (incl. intersegment eliminations) (118) (111) Operational EBITA % ABB Group 17.9% 16.3% Electrification 22.4% 19.0% Motion 18.5% 18.9% Process Automation 15.6% 14.2% Robotics & Discrete Automation 13.2% 14.9% Cash flow from operating activities ABB Group 726 282 Electrification 547 395 Motion 352 149 Process Automation 229 112 Robotics & Discrete Automation 95 130 Corporate and Other (incl. intersegment eliminations) (497) (504) ===== SIDA 18 ===== 5 Q1 2024 FINANCIAL INFORMATION Operational EBITA Process Robotics & Discrete ABB Electrification Motion Automation Automation ($ in millions, unless otherwise indicated) Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Revenues 7,870 7,859 3,680 3,590 1,829 1,940 1,601 1,436 864 937 Foreign exchange/commodity timing differences in total revenues 65 (16) 13 (22) 29 – 25 10 (5) 1 Operational revenues 7,935 7,843 3,693 3,568 1,858 1,940 1,626 1,446 859 938 Income from operations 1,217 1,198 769 655 301 353 234 200 91 115 Acquisition-related amortization 56 54 23 22 9 8 1 1 21 20 Restructuring, related and implementation costs(1) 26 28 10 8 8 1 7 2 – – Changes in obligations related to divested businesses – 3 – – – – – – – – Gains and losses from sale of businesses 2 – – – – – – – – – Acquisition- and divestment-related expenses and integration costs 19 19 10 7 – 4 – 3 2 2 Certain other non-operational items 63 (1) 3 3 3 2 – – 1 2 Foreign exchange/commodity timing differences in income from operations 34 (24) 11 (18) 22 (2) 11 (1) (2) 1 Operational EBITA 1,417 1,277 826 677 343 366 253 205 113 140 Operational EBITA margin (%) 17.9% 16.3% 22.4% 19.0% 18.5% 18.9% 15.6% 14.2% 13.2% 14.9% (1) Includes impairment of certain assets. Depreciation and Amortization Process Robotics & Discrete ABB Electrification Motion Automation Automation ($ in millions) Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Depreciation 133 125 66 62 28 26 12 11 15 14 Amortization 68 66 28 27 10 10 2 2 22 20 including total acquisition-related amortization of: 56 54 23 22 9 8 1 1 21 20 Orders received and revenues by region ($ in millions, unless otherwise indicated) Orders received CHANGE Revenues CHANGE Com- Com- Q1 24 Q1 23 US$ Local parable Q1 24 Q1 23 US$ Local parable Europe 3,298 3,582 -8% -9% -9% 2,748 2,872 -4% -6% -5% The Americas 2,904 2,985 -3% -3% -3% 2,789 2,653 5% 5% 7% of which United States 2,139 2,130 0% 0% 2% 2,110 1,984 6% 6% 10% Asia, Middle East and Africa 2,772 2,883 -4% 0% 0% 2,333 2,334 0% 5% 5% of which China 1,050 1,355 -23% -19% -18% 998 1,155 -14% -9% -9% ABB Group 8,974 9,450 -5% -5% -4% 7,870 7,859 0% 1% 2% ===== SIDA 19 ===== 6 Q1 2024 FINANCIAL INFORMATION — Consolidated Financial Information ABB Ltd Consolidated Income Statements (unaudited) Three months ended ($ in millions, except per share data in $) Mar. 31, 2024 Mar. 31, 2023 Sales of products 6,503 6,644 Sales of services and other 1,367 1,215 Total revenues 7,870 7,859 Cost of sales of products (4,145) (4,418) Cost of services and other (790) (725) Total cost of sales (4,935) (5,143) Gross profit 2,935 2,716 Selling, general and administrative expenses (1,381) (1,339) Non-order related research and development expenses (363) (304) Other income (expense), net 26 125 Income from operations 1,217 1,198 Interest and dividend income 57 40 Interest and other finance expense (37) (61) Non-operational pension (cost) credit 16 7 Income from continuing operations before taxes 1,253 1,184 Income tax expense (339) (119) Income from continuing operations, net of tax 914 1,065 Loss from discontinued operations, net of tax (1) (5) Net income 913 1,060 Net income attributable to noncontrolling interests and redeemable noncontrolling interests (8) (24) Net income attributable to ABB 905 1,036 Amounts attributable to ABB shareholders: Income from continuing operations, net of tax 906 1,041 Loss from discontinued operations, net of tax (1) (5) Net income 905 1,036 Basic earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax 0.49 0.56 Loss from discontinued operations, net of tax – – Net income 0.49 0.56 Diluted earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax 0.49 0.56 Loss from discontinued operations, net of tax – – Net income 0.49 0.55 Weighted-average number of shares outstanding (in millions) used to compute: Basic earnings per share attributable to ABB shareholders 1,839 1,861 Diluted earnings per share attributable to ABB shareholders 1,852 1,874 Due to rounding, numbers presented may not add to the totals provided. See Notes to the Consolidated Financial Information ===== SIDA 20 ===== 7 Q1 2024 FINANCIAL INFORMATION — ABB Ltd Condensed Consolidated Statements of Comprehensive Income (unaudited) Three months ended ($ in millions) Mar. 31, 2024 Mar. 31, 2023 Total comprehensive income, net of tax 1,063 1,153 Total comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests, net of tax 8 (30) Total comprehensive income attributable to ABB shareholders, net of tax 1,071 1,123 Due to rounding, numbers presented may not add to the totals provided. See Notes to the Consolidated Financial Information ===== SIDA 21 ===== 8 Q1 2024 FINANCIAL INFORMATION — ABB Ltd Consolidated Balance Sheets (unaudited) ($ in millions) Mar. 31, 2024 Dec. 31, 2023 Cash and equivalents 4,102 3,891 Restricted cash 18 18 Marketable securities and short-term investments 2,097 1,928 Receivables, net 7,385 7,446 Contract assets 1,135 1,090 Inventories, net 6,170 6,149 Prepaid expenses 314 235 Other current assets 563 520 Total current assets 21,784 21,277 Property, plant and equipment, net 4,047 4,142 Operating lease right-of-use assets 863 893 Investments in equity-accounted companies 178 187 Prepaid pension and other employee benefits 755 780 Intangible assets, net 1,128 1,223 Goodwill 10,494 10,561 Deferred taxes 1,375 1,381 Other non-current assets 488 496 Total assets 41,112 40,940 Accounts payable, trade 5,018 4,847 Contract liabilities 2,866 2,844 Short-term debt and current maturities of long-term debt 1,957 2,607 Current operating leases 242 249 Provisions for warranties 1,191 1,210 Dividends payable to shareholders 857 – Other provisions 1,056 1,201 Other current liabilities 4,595 5,046 Total current liabilities 17,782 18,004 Long-term debt 6,346 5,221 Non-current operating leases 642 666 Pension and other employee benefits 668 686 Deferred taxes 664 669 Other non-current liabilities 1,539 1,548 Total liabilities 27,641 26,794 Commitments and contingencies Redeemable noncontrolling interest 89 89 Stockholders’ equity: Common stock, CHF 0.12 par value (1,882 million shares issued at March 31, 2024, and December 31, 2023) 163 163 Additional paid-in capital 9 7 Retained earnings 18,622 19,724 Accumulated other comprehensive loss (4,904) (5,070) Treasury stock, at cost (31 million and 40 million shares at March 31, 2024, and December 31, 2023, respectively) (1,150) (1,414) Total ABB stockholders’ equity 12,740 13,410 Noncontrolling interests 642 647 Total stockholders’ equity 13,382 14,057 Total liabilities and stockholders’ equity 41,112 40,940 Due to rounding, numbers presented may not add to the totals provided. See Notes to the Consolidated Financial Information ===== SIDA 22 ===== 9 Q1 2024 FINANCIAL INFORMATION — ABB Ltd Consolidated Statements of Cash Flows (unaudited) Three months ended ($ in millions) Mar. 31, 2024 Mar. 31, 2023 Operating activities: Net income 913 1,060 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 201 191 Changes in fair values of investments (13) (13) Pension and other employee benefits (13) 1 Deferred taxes (6) 25 Loss from equity-accounted companies 5 7 Net gain from derivatives and foreign exchange (8) (37) Net gain from sale of property, plant and equipment (5) (26) Net loss (gain) from sale of businesses 2 – Other 27 27 Changes in operating assets and liabilities: Trade receivables, net (33) (362) Contract assets and liabilities 38 10 Inventories, net (205) (264) Accounts payable, trade 82 22 Accrued liabilities (473) (324) Provisions, net 37 42 Income taxes payable and receivable 122 (115) Other assets and liabilities, net 55 38 Net cash provided by operating activities 726 282 Investing activities: Purchases of investments (877) (660) Purchases of property, plant and equipment and intangible assets (181) (151) Acquisition of businesses (net of cash acquired) and increases in cost - and equity-accounted companies (30) (19) Proceeds from sales of investments 727 20 Proceeds from sales of property, plant and equipment 6 31 Proceeds from sales of businesses (net of transaction costs and cash disposed) and cost - and equity-accounted companies (8) (5) Net cash from settlement of foreign currency derivatives 31 36 Changes in loans receivable, net 1 8 Other investing activities – (1) Net cash used in investing activities (331) (741) Financing activities: Net changes in debt with original maturities of 90 days or less (20) (714) Increase in debt 1,358 1,633 Repayment of debt (565) (36) Delivery of shares 390 95 Purchase of treasury stock (291) (274) Dividends paid (919) (1,294) Dividends paid to noncontrolling shareholders – (3) Proceeds from issuance of subsidiary shares – 341 Other financing activities (3) 12 Net cash used in financing activities (50) (240) Effects of exchange rate changes on cash and equivalents and restricted cash (134) (5) Adjustment for the net change in cash and equivalents and restricted cash in Assets held for sale – (13) Net change in cash and equivalents and restricted cash 211 (717) Cash and equivalents and restricted cash, beginning of period 3,909 4,174 Cash and equivalents and restricted cash, end of period 4,120 3,457 Supplementary disclosure of cash flow information: Interest paid 94 48 Income taxes paid 228 207 Due to rounding, numbers presented may not add to the totals provided. See Notes to the Consolidated Financial Information ===== SIDA 23 ===== 10 Q1 2024 FINANCIAL INFORMATION — ABB Ltd Consolidated Statements of Changes in Stockholders’ Equity (unaudited) ($ in millions) Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total ABB stockholders’ equity Non- controlling interests Total stockholders’ equity Balance at January 1, 2023 171 141 20,082 (4,556) (3,061) 12,777 410 13,187 Net income(1) 1,036 1,036 25 1,061 Foreign currency translation adjustments, net of tax of $(1) 79 79 6 85 Effect of change in fair value of available-for-sale securities, net of tax of $1 5 5 5 Unrecognized income (expense) related to pensions and other postretirement plans, net of tax of $1 – – – Change in derivative instruments and hedges, net of tax of $0 3 3 3 Issuance of subsidiary shares 170 170 168 338 Other changes in noncontrolling interests – (1) (1) Dividends to noncontrolling shareholders – (5) (5) Dividends to shareholders (1,706) (1,706) (1,706) Share-based payment arrangements 22 22 1 23 Purchase of treasury stock (253) (253) (253) Delivery of shares (53) 148 95 95 Other (2) (2) (2) Balance at March 31, 2023 171 279 19,411 (4,469) (3,165) 12,227 604 12,831 Balance at January 1, 2024 163 7 19,724 (5,070) (1,414) 13,410 647 14,057 Net income(1) 905 905 9 914 Foreign currency translation adjustments, net of tax of $3 131 131 (16) 115 Effect of change in fair value of available-for-sale securities, net of tax of $0 (1) (1) (1) Unrecognized income (expense) related to pensions and other postretirement plans, net of tax of $16 33 33 33 Change in derivative instruments and hedges, net of tax of $0 3 3 3 Changes in noncontrolling interests (1) (30) (31) 1 (30) Dividends to noncontrolling shareholders – (1) (1) Dividends to shareholders (1,804) (1,804) (1,804) Share-based payment arrangements 20 20 1 21 Purchase of treasury stock (314) (314) (314) Delivery of shares (14) (174) 578 390 390 Other (3) (3) 2 (1) Balance at March 31, 2024 163 9 18,622 (4,904) (1,150) 12,740 642 13,382 (1) Amounts attributable to noncontrolling interests for the three months ended March 31, 2024 and 2023, exclude net losses of $1 million and $1 million, respectively, related to redeemable noncontrolling interests, which are reported in the mezzanine equity section on the Consolidated Balance Sheets. Due to rounding, numbers presented may not add to the totals provided. See Notes to the Consolidated Financial Information ===== SIDA 24 ===== 11 Q1 2024 FINANCIAL INFORMATION — Notes to the Consolidated Financial Information (unaudited) ─ Note 1 The Company and basis of presentation ABB Ltd and its subsidiaries (collectively, the Company) together form a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The Company’s solutions connect engineering know -how and software to optimize how things are manufactured, moved, powered, and operated. The Company’s Consolidated Financial Information is prepared in accordance with United States of America generally accepted a ccounting principles (U.S. GAAP) for interim financial reporting. As such, the Consolidated Financial Information does not include all the informa tion and notes required under U.S. GAAP for annual consolidated financial statements. Therefore, such financial information should be read in conjunction w ith 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 t hat 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, environme ntal 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 interest s 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 contract s 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, nu mbers 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 cash flows to an alternate allowable policy. As a result, the total cash flows for operating, investing and financing activities from discontinued operations are no longer show n separately but instead all cash flows in discontinued operations are present ed within each line item as appropriate in the statement of cash flow s. As this presentation c hange represents a chang e in accounting policy, all prior periods presented have been rec lassified to conform to the current period presentation and there was no material impact for the three months ended March 31, 2023 . ===== SIDA 25 ===== 12 Q1 2024 FINANCIAL INFORMATION ─ Note 2 Recent accounting pronouncements Applicable for current periods Improvements to reportable segment disclosures In January 2024, the Company adopted an accounting standard update which requires the Company to disclose additional reportable segment information primarily through enhanced disclosures about significant segment expenses and extending certain annual disclosure requirements to a quarterly frequency. The update will be applied retrospectively for all periods presented in the Company’s annual consolidated financial statements and then commencing from the first quarter of 2025, in its interim consolidated financial information. Other than these additional disclosures, this update does not have a significant impact on the Company’s consolidated financial statements . Applicable for future periods Improvements to Income tax disclosures In December 2023, an accounting standard update was issued which requires the Company to disclose additional information rela ted 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 begin ning January 1, 2025. The Company is currently evaluating the impact of adopting this update on its consolidated financial statements. ─ Note 3 Cash and equivalents, marketable securities and short-term investments Cash and equivalents, marketable securities and short -term investments consisted of the following: March 31, 2024 Cash and Marketable Gross Gross equivalents securities unrealized unrealized and restricted and short-term ($ in millions) Cost basis gains losses Fair value cash investments Changes in fair value recorded in net income Cash 1,789 1,789 1,789 Time deposits 2,817 2,817 2,331 486 Equity securities 1,391 37 1,428 1,428 5,997 37 – 6,034 4,120 1,914 Changes in fair value recorded in other comprehensive income Debt securities available-for-sale: U.S. government obligations 190 2 (9) 183 183 190 2 (9) 183 – 183 Total 6,187 39 (9) 6,217 4,120 2,097 Of which: Restricted cash, current 18 December 31, 2023 Cash and Marketable Gross Gross equivalents securities unrealized unrealized and restricted and short-term ($ in millions) Cost basis gains losses Fair value cash investments Changes in fair value recorded in net income Cash 1,449 1,449 1,449 Time deposits 2,923 2,923 2,460 463 Equity securities 1,250 32 1,282 1,282 5,622 32 – 5,654 3,909 1,745 Changes in fair value recorded in other comprehensive income Debt securities available-for-sale: U.S. government obligations 189 2 (8) 183 183 189 2 (8) 183 – 183 Total 5,811 34 (8) 5,837 3,909 1,928 Of which: Restricted cash, current 18 ===== SIDA 26 ===== 13 Q1 2024 FINANCIAL INFORMATION ─ Note 4 Derivative financial instruments The Company is exposed to certain currency, commodity and interest rate risks arising from its global operating, financing and investing activities. The Company uses derivative instruments to reduce and manage the economic impact of these exposures. Currency risk Due to the global nature of the Company’s operations, many of its subsidiaries are exposed to currency risk in their operatin g activities from entering into transactions in currencies other than their functional currency. To manage such currency risks, the Company’s policies r equire its subsidiaries to hedge their foreign currency exposures from binding sales and purchase contracts denominated in foreign currencies. For forec asted foreign currency denominated sales of standard products and the related foreign currency denominated purchases, the Company’s policy is to hed ge up to a maximum of 100 percent of the forecasted foreign currency denominated exposures, depending on the length of the forecasted exposures. Foreca sted exposures greater than 12 months are not hedged. Forward foreign exchange contracts are the main instrument used to protect the Company against the vol atility of future cash flows (caused by changes in exchange rates) of contracted and forecasted sales and purchases denominated in fo reign currencies. In addition, within its treasury operations, the Company primarily uses foreign exchange swaps and forward foreign exchange cont racts 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 fu ture cash flows arising from changes in commodity prices. To manage the price risk of commodities, the Com pany’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 manag e 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 acco unting. Foreign exchange and interest rate derivatives The gross notional amounts of outstanding foreign exchange and interest rate derivatives (whether designated as hedges or not ) were as follows: Type of derivative Total notional amounts at ($ in millions) March 31, 2024 December 31, 2023 March 31, 2023 Foreign exchange contracts 14,331 12,335 13,273 Embedded foreign exchange derivatives 1,106 1,137 1,104 Cross-currency interest rate swaps 863 886 870 Interest rate contracts 3,075 1,606 2,963 Derivative commodity contracts The Company uses derivatives to hedge its direct or indirect exposure to the movement in the prices of commodities which are primarily copper, silver, steel and aluminum. The following table shows the notional amounts of outstanding derivatives (whether designated as hedges or not), on a net bas is, to reflect the Company’s requirements for these commodities: Type of derivative Unit Total notional amounts at March 31, 2024 December 31, 2023 March 31, 2023 Copper swaps metric tonnes 38,116 35,015 27,920 Silver swaps ounces 2,689,981 2,359,363 2,392,353 Steel swaps metric tonnes 10,251 10,206 6,804 Aluminum swaps metric tonnes 5,875 5,900 6,750 Cash flow hedges As noted above, the Company mainly uses forward foreign exchange contracts to manage the foreign exchange risk of its operati ons and commodity swaps to manage its commodity risks. The Company applies cash flow hedge accounting in only limited cases. In these cases, th e effective portion of the changes in their fair value is recorded in Accumulated other comprehensive loss and subsequently reclassified into earnin gs 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 swap s 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. ===== SIDA 27 ===== 14 Q1 2024 FINANCIAL INFORMATION The effect of derivative instruments, designated and qualifying as fair value hedges, on the Consolidated Income Statements w as as follows: Three months ended March 31, ($ in millions) 2024 2023 Gains (losses) recognized in Interest and other finance expense: Interest rate contracts Designated as fair value hedges 13 10 Hedged item (14) (10) Cross-currency interest rate swaps Designated as fair value hedges (3) (11) Hedged item 3 2 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 deriva tives that are embedded within certain binding sales or purchase contracts denominated in a currency other than the functional currency of the subsid iary and the counterparty. The gains (losses) recognized in the Consolidated Income Statements on derivatives not designated in hedging relationships we re as follows: Type of derivative not Gains (losses) recognized in income designated as a hedge Three months ended March 31, ($ in millions) Location 2024 2023 Foreign exchange contracts Total revenues (168) 11 Total cost of sales 47 (1) SG&A expenses(1) 13 6 Non-order related research and development (2) – Interest and other finance expense 247 42 Embedded foreign exchange contracts Total revenues 18 7 Total cost of sales (4) (1) Commodity contracts Total cost of sales 9 11 Other Interest and other finance expense (2) – Total 158 75 (1) SG&A expenses represent “Selling, general and administrative expenses”. The fair values of derivatives included in the Consolidated Balance Sheets were as follows: March 31, 2024 Derivative assets Derivative liabilities Current in Non-current in Current in Non-current in “Other current “Other non-current “Other current “Other non-current ($ in millions) assets” assets” liabilities” liabilities” Derivatives designated as hedging instruments: Foreign exchange contracts – – 2 – Interest rate contracts – – 4 3 Cross-currency interest rate swaps – – – 256 Other 7 – – – Total 7 – 6 259 Derivatives not designated as hedging instruments: Foreign exchange contracts 179 19 97 13 Commodity contracts 17 – 1 – Interest rate contracts – – – – Embedded foreign exchange derivatives 24 5 11 1 Other – 3 – – Total 220 27 109 14 Total fair value 227 27 115 273 ===== SIDA 28 ===== 15 Q1 2024 FINANCIAL INFORMATION December 31, 2023 Derivative assets Derivative liabilities Current in Non-current in Current in Non-current in “Other current “Other non-current “Other current “Other non-current ($ in millions) assets” assets” liabilities” liabilities” Derivatives designated as hedging instruments: Foreign exchange contracts – – 5 2 Interest rate contracts – – 18 – Cross-currency interest rate swaps – – – 230 Other 10 – – – Total 10 – 23 232 Derivatives not designated as hedging instruments: Foreign exchange contracts 123 30 177 9 Commodity contracts 8 – 3 – Interest rate contracts 1 – 1 – Other equity contracts 4 – – – Embedded foreign exchange derivatives 23 5 26 5 Total 159 35 207 14 Total fair value 169 35 230 246 Close-out netting agreements provide for the termination, valuation and net settlement of some or all outstanding transactions betw een two counterparties on the occurrence of one or more pre-defined trigger events. Although the Company is party to close-out netting agreements with most derivative counterparties, the fair values in the tables above and in the Consolidated Balance Sheets at March 31, 2024, and December 31, 2023, have been presented on a gross basis. The Company’s netting agreements and other similar arrangements allow net settlements under certain conditions. At March 31, 2024, and December 31, 2023, information related to these offsetting arrangements was as follows: ($ in millions) March 31, 2024 Gross amount Derivative liabilities Cash Non-cash Type of agreement or of recognized eligible for set-off collateral collateral Net asset similar arrangement assets in case of default received received exposure Derivatives 225 (71) – – 154 Total 225 (71) – – 154 ($ in millions) March 31, 2024 Gross amount Derivative liabilities Cash Non-cash Type of agreement or of recognized eligible for set-off collateral collateral Net liability similar arrangement liabilities in case of default pledged pledged exposure Derivatives 376 (71) – – 305 Total 376 (71) – – 305 ($ in millions) December 31, 2023 Gross amount Derivative liabilities Cash Non-cash Type of agreement or of recognized eligible for set-off collateral collateral Net asset similar arrangement assets in case of default received received exposure Derivatives 176 (111) – – 65 Total 176 (111) – – 65 ($ in millions) December 31, 2023 Gross amount Derivative liabilities Cash Non-cash Type of agreement or of recognized eligible for set-off collateral collateral Net liability similar arrangement liabilities in case of default pledged pledged exposure Derivatives 445 (111) – – 334 Total 445 (111) – – 334 ===== SIDA 29 ===== 16 Q1 2024 FINANCIAL INFORMATION ─ Note 5 Fair values The Company uses fair value measurement principles to record certain financial assets and liabilities on a recurring basis and, w hen 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 i nclude 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 transactio n 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 liabilit ies 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 unobser vable. An observable input is based on market data obtained from independent sources, while an unobservable input reflects the Company’s assumptions abo ut 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 fr om 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 unobs ervable portion of the adjustment or the unobservable input to the valuation model is significant, in which case the fair value measurement woul d be classified as Level 3. Assets and liabilities valued or disclosed using Level 2 inputs include investments in certain funds, certain debt s ecurities 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 financi al instrument has significantly decreased or would not be considered orderly. In such cases, the resulting changes in valuation techniques would be disclosed . If the market is considered disorderly or if quoted prices are not available, the Company is required to use another valuation technique, such as an income approach. Recurring fair value measures The fair values of financial assets and liabilities measured at fair value on a recurring basis were as follows: March 31, 2024 ($ in millions) Level 1 Level 2 Level 3 Total fair value Assets Securities in “Marketable securities and short-term investments”: Equity securities – 1,428 – 1,428 Debt securities—U.S. government obligations 183 – – 183 Derivative assets—current in “Other current assets” – 227 – 227 Derivative assets—non-current in “Other non-current assets” – 27 – 27 Total 183 1,682 – 1,865 Liabilities Derivative liabilities—current in “Other current liabilities” – 115 – 115 Derivative liabilities—non-current in “Other non-current liabilities” – 273 – 273 Total – 388 – 388 December 31, 2023 ($ in millions) Level 1 Level 2 Level 3 Total fair value Assets Securities in “Marketable securities and short-term investments”: Equity securities – 1,282 – 1,282 Debt securities—U.S. government obligations 183 – – 183 Derivative assets—current in “Other current assets” – 169 – 169 Derivative assets—non-current in “Other non-current assets” – 35 – 35 Total 183 1,486 – 1,669 Liabilities Derivative liabilities—current in “Other current liabilities” – 230 – 230 Derivative liabilities—non-current in “Other non-current liabilities” – 246 – 246 Total – 476 – 476 ===== SIDA 30 ===== 17 Q1 2024 FINANCIAL INFORMATION The Company uses the following methods and assumptions in estimating fair values of financial assets and liabilities measured at fair value on a recurring basis: • Securities in “Marketable securities and short-term investments”: If quoted market prices in active markets for identical assets are available, these are considered Level 1 inputs; however, when markets are not active, these inputs are considered Level 2. If such quoted market prices are not available, fair value is determined using market prices for similar assets or present value techniques, applying an a ppropriate 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 fo r similar instruments or valuation techniques represent a Level 2 input unless significant unobservable inputs are used. Non-recurring fair value measures There were no significant non-recurring fair value measurements during the three months ended March 31, 2024 and 2023. Disclosure about financial instruments carried on a cost basis The fair values of financial instruments carried on a cost basis were as follows: March 31, 2024 ($ in millions) Carrying value Level 1 Level 2 Level 3 Total fair value Assets Cash and equivalents (excluding securities with original maturities up to 3 months): Cash 1,771 1,771 – – 1,771 Time deposits 2,331 – 2,331 – 2,331 Restricted cash 18 18 – – 18 Marketable securities and short-term investments (excluding securities): Time deposits 486 – 486 – 486 Liabilities Short-term debt and current maturities of long-term debt (excluding finance lease obligations) 1,927 1,890 37 – 1,927 Long-term debt (excluding finance lease obligations) 6,192 6,211 8 – 6,219 December 31, 2023 ($ in millions) Carrying value Level 1 Level 2 Level 3 Total fair value Assets Cash and equivalents (excluding securities with original maturities up to 3 months): Cash 1,431 1,431 – – 1,431 Time deposits 2,460 – 2,460 – 2,460 Restricted cash 18 18 – – 18 Marketable securities and short-term investments (excluding securities): Time deposits 463 – 463 – 463 Liabilities Short-term debt and current maturities of long-term debt (excluding finance lease obligations) 2,576 2,521 55 – 2,576 Long-term debt (excluding finance lease obligations) 5,060 5,096 5 – 5,101 The Company uses the following methods and assumptions in estimating fair values of financial instruments carried on a cost b asis: • 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). ===== SIDA 31 ===== 18 Q1 2024 FINANCIAL INFORMATION ─ Note 6 Contract assets and liabilities The following table provides information about Contract assets and Contract liabilities: ($ in millions) March 31, 2024 December 31, 2023 March 31, 2023 Contract assets 1,135 1,090 1,009 Contract liabilities 2,866 2,844 2,339 Contract assets primarily relate to the Company’s right to receive consideration for work completed but for which no invoice has been issued at the reporting date. Contract assets are transferred to receivables when rights to receive payment become unconditional. Management expects that the majority of the amounts will be collected within one year of the respective balance sheet date. Contract liabilities primarily relate to up-front advances received on orders from customers as well as amounts invoiced to customers in excess of revenues recognized predominantly on long-term projects. Contract liabilities are reduced as work is performed and as revenues are recognized . The significant changes in the Contract assets and Contract liabilities balances were as follows: Three months ended March 31, 2024 2023 Contract Contract Contract Contract ($ in millions) assets liabilities assets liabilities Revenue recognized, which was included in the Contract liabilities balance at Jan 1, 2024/2023 (724) (651) Additions to Contract liabilities - excluding amounts recognized as revenue during the period 819 707 Receivables recognized that were included in the Contract assets balance at Jan 1, 2024/2023 (408) (325) The Company considers its order backlog to represent its unsatisfied performance obligations. At March 31, 2024, the Company had unsatisfied performance obligations totaling $22,015 million and, of this amount, the Company expects to fulfill approximately 61 percent of the obligations in 2024, approximately 23 percent of the obligations in 2025 and the balance thereafter. ─ Note 7 Supplier finance programs The Company has several supplier finance programs, all with similar characteristics, with various financial institutions acti ng 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 an d are typically consistent with local market practices. Outstanding supplier finance obligations are included in “Accounts payable, trade” in the Consol idated 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. ===== SIDA 32 ===== 19 Q1 2024 FINANCIAL INFORMATION ─ Note 8 Debt The Company’s total debt at March 31, 2024, and December 31, 2023, amounted to $8,303 million and $7,828 million, respectively. Short-term debt and current maturities of long-term debt The Company’s “Short-term debt and current maturities of long-term debt” consisted of the following: ($ in millions) March 31, 2024 December 31, 2023 Short-term debt 50 87 Current maturities of long-term debt 1,907 2,520 Total 1,957 2,607 Short-term debt primarily represented short-term bank borrowings from various banks. In March 2024, the Company repaid at maturity its EUR 500 million Floating Rate Instruments, equivalent to $539 million on date of repayment. Long-term debt The Company’s long-term debt at March 31, 2024, and December 31, 2023, amounted to $6,346 million and $5,221 million, respectively. Outstanding bonds (including maturities within the next 12 months) were as follows: March 31, 2024 December 31, 2023 (in millions) Nominal outstanding Carrying value(1) Nominal outstanding Carrying value(1) Bonds: Floating Rate EUR Instruments, due 2024 EUR 500 $ 554 0.625% EUR Instruments, due 2024 EUR 700 $ 755 EUR 700 $ 768 0.75% EUR Instruments, due 2024 EUR 750 $ 805 EUR 750 $ 819 0.3% CHF Bonds, due 2024 CHF 280 $ 309 CHF 280 $ 335 2.1% CHF Bonds, due 2025 CHF 150 $ 165 CHF 150 $ 179 1.965% CHF Bonds, due 2026 CHF 325 $ 358 CHF 325 $ 387 3.25% EUR Instruments, due 2027 EUR 500 $ 536 EUR 500 $ 551 0.75% CHF Bonds, due 2027 CHF 425 $ 468 CHF 425 $ 507 3.8% USD Notes, due 2028(2) USD 383 $ 382 USD 383 $ 382 1.9775% CHF Bonds, due 2028 CHF 150 $ 165 CHF 150 $ 179 3.125% EUR Instruments, due 2029 EUR 500 $ 536 1.0% CHF Bonds, due 2029 CHF 170 $ 188 CHF 170 $ 203 0% EUR Instruments, due 2030 EUR 800 $ 723 EUR 800 $ 749 2.375% CHF Bonds, due 2030 CHF 150 $ 165 CHF 150 $ 178 3.375% EUR Instruments, due 2031 EUR 750 $ 797 EUR 750 $ 818 2.1125% CHF Bonds, due 2033 CHF 275 $ 303 CHF 275 $ 327 3.375% EUR Instruments, due 2034 EUR 750 $ 802 4.375% USD Notes, due 2042(2) USD 609 $ 591 USD 609 $ 591 Total $ 8,048 $ 7,527 (1) USD carrying values include unamortized debt issuance costs, bond discounts or premiums, as well as adjustments for fair value hedge accounting, where appropriate. (2) Prior to completing a cash tender offer in November 2020, the original principal amount outstanding, on each of the 3.8% USD Notes, due 2028, and the 4.375% USD Notes, due 2042, was USD 750 million. In January 2024, the Company issued the following EUR Instruments: (i) EUR 500 million of 3.125 percent Instruments, due 2029, and (ii) EUR 750 million of 3.375 percent Instruments, due 2034, both paying interest annually in arrears. The aggregate net proceeds of these EUR Instruments, after discount and fees, amounted to EUR 1,243 million (equivalent to approximately $1,360 million on date of issuance). Subsequent events On April 2, 2024, the Company repaid at maturity its EUR 700 million 0.625% EUR Instruments, equivalent to $752 million on date of repayment. ===== SIDA 33 ===== 20 Q1 2024 FINANCIAL INFORMATION ─ Note 9 Commitments and contingencies Contingencies—Regulatory, Compliance and Legal Regulatory Based on findings during an internal investigation, the Company self -reported to the Securities Exchange Commission (SEC) and the Department of Justice (DoJ), in the United States, to the Special Investigating Unit (SIU) and the National Prosecuting Authority (NPA) in South Africa as well as to various authorities in other countries potential suspect payments and other compliance concerns in connection with some of th e Company’s dealings with Eskom and related persons. Many of those parties have expressed an interest in, or commenced an investigation into, thes e 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 Contra ct, and its Variation Orders for Units 1 and 2 at Kusile. The Company made a provision of approximately $325 million which was recorded in Other income (expense), net, during the third quarter of 2022. In December 2022, the Company settled with the SEC and D oJ 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 tha t 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 cust omers 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 $101 million, respectively, included in Other provisions and Other non‑current liabilities, for the above regulatory, compliance and legal contingencies, and none of the individual liabilities recognized was significant. As it is not possible to make an informed judgment on, or reasonably predict, the outcome of cert ain matters and as it is not possible, based on information currently available to management, to estimate the maximum potential liability on other matter s, there could be adverse outcomes beyond the amounts accrued. Guarantees General The following table provides quantitative data regarding the Company’s third-party guarantees. The maximum potential payments represent a “worst-case scenario”, and do not reflect management’s expected outcomes. Maximum potential payments ($ in millions) March 31, 2024 December 31, 2023 Performance guarantees 3,370 3,451 Financial guarantees 93 94 Total(1) 3,463 3,545 (1) Maximum potential payments include amounts in both continuing and discontinued operations. The carrying amount of liabilities recorded in the Consolidated Balance Sheets reflects the Company’s best estimate of future payments, which it may incur as part of fulfilling its guarantee obligations. In respect of the above guarantees, the carrying amounts of liabilitie s 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 guar antees, 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 pro ject 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 (reporte d 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, busi ness performance guarantees and other trade-related guarantees, the majority of which have original maturity dates ranging from one to ten years. The maximum amount payable under these guarantees at 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 per formance bonds in the event that the Company does not fulfill its contractual obligations. The Company would then have an obligation to reimburse t he 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 $3.1 billion, respectively. There have been no significant amounts reimbursed to financial institutions under these types of arran gements in the three months ended March 31, 2024 and 2023. ===== SIDA 34 ===== 21 Q1 2024 FINANCIAL INFORMATION Product and order-related contingencies The Company calculates its provision for product warranties based on historical claims experience and specific review of cert ain contracts. The reconciliation of the Provisions for warranties, including guarantees of product performance, was as follows: ($ in millions) 2024 2023 Balance at January 1, 1,210 1,028 Claims paid in cash or in kind (37) (40) Net increase in provision for changes in estimates, warranties issued and warranties expired 55 65 Exchange rate differences (37) 7 Balance at March 31, 1,191 1,060 ─ Note 10 Income taxes In calculating income tax expense, the Company uses an estimate of the annual effective tax rate based upon the facts and cir cumstances 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 $0.11 in earnings per share (basic and diluted) for the three months ended March 31, 2023. ─ Note 11 Employee benefits The Company operates defined benefit pension plans, defined contribution pension plans, and termination indemnity plans, in a ccordance with local regulations and practices. At March 31, 2024, the Company’s most significant defined benefit pension plans are in Switzerland as well as in Germany, the United Kingdom, and the United States. These plans cover a large portion of the Company’s employees and provide benefits to employees in the event of death, disability, retirement, or termination of employment. Certain of these plans are multi -employer plans. The Company also operates other postretirement benefit plans including postretirement health care benefits and other employee -related benefits for active employees including long-service award plans. The postretirement benefit plans are not significant. The measurement date used for the Company’s employ ee benefit plans is December 31. The funding policies of the Company’s plans are consistent with the local government and tax requirements. Net periodic benefit cost of the Company’s defined benefit pension plans consisted of the following: ($ in millions) Defined pension benefits Switzerland International Three months ended March 31, 2024 2023 2024 2023 Operational pension cost: Service cost 11 9 8 8 Operational pension cost 11 9 8 8 Non-operational pension cost (credit): Interest cost 9 12 39 40 Expected return on plan assets (31) (33) (43) (39) Amortization of prior service cost (credit) (2) – (1) – Amortization of net actuarial loss – – 13 13 Non-operational pension cost (credit) (24) (21) 8 14 Net periodic benefit cost (credit) (13) (12) 16 22 The components of net periodic benefit cost other than the service cost component are included in the line Non -operational pension cost (credit) in the Consolidated Income Statements. Employer contributions were as follows: ($ in millions) Defined pension benefits Switzerland International Three months ended March 31, 2024 2023 2024 2023 Total contributions to defined benefit pension plans 13 2 11 11 The Company expects to make contributions totaling approximately $87 million to its defined pension plans for the full year 202 4. ===== SIDA 35 ===== 22 Q1 2024 FINANCIAL INFORMATION ─ Note 12 Stockholder's equity At the Annual General Meeting of Shareholders (AGM) on March 21, 2024, shareholders approved the proposal of the Board of Directors to distribute 0.87 Swiss francs per share to shareholders. The declared dividend amounted to $ 1,804 million, with the Company disbursing 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 outsta nding options and shares granted subject to certain conditions under the Company’s share -based payment arrangements. Basic earnings per share Three months ended March 31, ($ in millions, except per share data in $) 2024 2023 Amounts attributable to ABB shareholders: Income from continuing operations, net of tax 906 1,041 Loss from discontinued operations, net of tax (1) (5) Net income 905 1,036 Weighted-average number of shares outstanding (in millions) 1,839 1,861 Basic earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax 0.49 0.56 Loss from discontinued operations, net of tax – – Net income 0.49 0.56 Diluted earnings per share Three months ended March 31, ($ in millions, except per share data in $) 2024 2023 Amounts attributable to ABB shareholders: Income from continuing operations, net of tax 906 1,041 Loss from discontinued operations, net of tax (1) (5) Net income 905 1,036 Weighted-average number of shares outstanding (in millions) 1,839 1,861 Effect of dilutive securities: Call options and shares 13 13 Adjusted weighted-average number of shares outstanding (in millions) 1,852 1,874 Diluted earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax 0.49 0.56 Loss from discontinued operations, net of tax – – Net income 0.49 0.55 ===== SIDA 36 ===== 23 Q1 2024 FINANCIAL INFORMATION ─ Note 14 Reclassifications out of accumulated other comprehensive loss The following table shows changes in “Accumulated other comprehensive loss” (OCI) attributable to ABB, by component, net of t ax: Unrealized gains Pension and Foreign currency (losses) on other Derivative translation available-for-sale postretirement instruments ($ in millions) adjustments securities plan adjustments and hedges Total OCI Balance at January 1, 2023 (3,691) (19) (838) (8) (4,556) Other comprehensive (loss) income: Other comprehensive (loss) income before reclassifications 85 4 (8) 2 83 Amounts reclassified from OCI – 1 8 1 10 Total other comprehensive (loss) income 85 5 – 3 93 Less: Amounts attributable to noncontrolling interests and redeemable noncontrolling interests 6 – – – 6 Balance at March 31, 2023 (3,612) (14) (838) (5) (4,469) Unrealized gains Pension and Foreign currency (losses) on other Derivative translation available-for-sale postretirement instruments ($ in millions) adjustments securities plan adjustments and hedges Total OCI Balance at January 1, 2024 (3,977) (8) (1,075) (10) (5,070) Other comprehensive (loss) income: Other comprehensive (loss) income before reclassifications 115 (1) 27 – 141 Amounts reclassified from OCI – – 6 3 9 Total other comprehensive (loss) income 115 (1) 33 3 150 Less: Amounts attributable to noncontrolling interests and redeemable noncontrolling interests (16) – – – (16) Balance at March 31, 2024 (3,846) (9) (1,042) (7) (4,904) The amounts reclassified out of OCI for the three months ended March 31, 2024 and 2023, were not significant. ===== SIDA 37 ===== 24 Q1 2024 FINANCIAL INFORMATION ─ Note 15 Operating segment data The Chief Operating Decision Maker (CODM) is the Chief Executive Officer. The CODM allocates resources to and assesses the pe rformance 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 i ncluded 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, switchboard s 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 networ ks. 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 industr ial 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), i ndustrial PCs (IPC), servo motion, transport systems and machine vision. Both divisions offer software across the entire life cycle, includ ing 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 inclu des 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 inc ome 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 t he 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. ===== SIDA 38 ===== 25 Q1 2024 FINANCIAL INFORMATION Three months ended March 31, 2024 Robotics & Process Discrete Corporate ($ in millions) Electrification Motion Automation Automation and Other Total Geographical markets Europe 1,154 488 555 490 61 2,748 The Americas 1,529 630 447 140 43 2,789 of which: United States 1,186 516 285 85 38 2,110 Asia, Middle East and Africa 936 558 593 231 15 2,333 of which: China 415 256 165 157 5 998 3,619 1,676 1,595 861 119 7,870 Product type Products 3,380 1,395 911 711 106 6,503 Services and other 239 281 684 150 13 1,367 3,619 1,676 1,595 861 119 7,870 Third-party revenues 3,619 1,676 1,595 861 119 7,870 Intersegment revenues 61 153 6 3 (223) – Total revenues(1) 3,680 1,829 1,601 864 (104) 7,870 Three months ended March 31, 2023 Robotics & Process Discrete Corporate ($ in millions) Electrification Motion Automation Automation and Other Total Geographical markets Europe 1,162 638 519 474 79 2,872 The Americas 1,407 632 421 136 57 2,653 of which: United States 1,043 533 264 91 53 1,984 Asia, Middle East and Africa 957 549 489 324 15 2,334 of which: China 457 281 162 248 7 1,155 3,526 1,819 1,429 934 151 7,859 Product type Products 3,306 1,583 827 791 137 6,644 Services and other 220 236 602 143 14 1,215 3,526 1,819 1,429 934 151 7,859 Third-party revenues 3,526 1,819 1,429 934 151 7,859 Intersegment revenues 64 121 7 3 (195) – Total revenues(1) 3,590 1,940 1,436 937 (44) 7,859 (1) Due to rounding, numbers presented may not add to the totals provided. ===== SIDA 39 ===== 26 Q1 2024 FINANCIAL INFORMATION Three months ended March 31, ($ in millions) 2024 2023 Operational EBITA: Electrification 826 677 Motion 343 366 Process Automation 253 205 Robotics & Discrete Automation 113 140 Corporate and Other ‒ E-mobility (54) (28) ‒ Corporate costs, intersegment eliminations and other (64) (83) Total 1,417 1,277 Acquisition-related amortization (56) (54) Restructuring, related and implementation costs (1) (26) (28) Changes in obligations related to divested businesses – (3) Gains and losses from sale of businesses (2) – Acquisition- and divestment-related expenses and integration costs (19) (19) Foreign exchange/commodity timing differences in income from operations: Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives) (77) 22 Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized 1 (5) Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities) 42 7 Certain other non-operational items: Other income/expense relating to the Power Grids joint venture 8 13 Regulatory, compliance and legal costs (3) – Business transformation costs(2) (50) (34) Certain other fair value changes, including asset impairments (14) (1) Other non-operational items (4) 23 Income from operations 1,217 1,198 Interest and dividend income 57 40 Interest and other finance expense (37) (61) Non-operational pension (cost) credit 16 7 Income from continuing operations before taxes 1,253 1,184 (1) Includes impairment of certain assets. (2) Amount includes ABB Way process transformation costs of $46 million and $ 30 million for the three months ended March 31, 2024 and 2023 , respectively. Total assets(1) ($ in millions) March 31, 2024 December 31, 2023 Electrification 12,837 12,668 Motion 6,947 7,016 Process Automation 4,952 4,971 Robotics & Discrete Automation 4,982 5,047 Corporate and Other 11,394 11,238 Consolidated 41,112 40,940 (1) Total assets are after intersegment eliminations and therefore reflect third -party assets only. ===== SIDA 40 ===== 27 Q1 2024 FINANCIAL INFORMATION ===== SIDA 41 ===== 28 Q1 2024 FINANCIAL INFORMATION — Supplemental Reconciliations and Definitions The following reconciliations and definitions include measures which ABB uses to supplement its Consolidated Financial Inform ation (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 acco rdance 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 gro wth on a constant currency basis. Since we are a global company, the comparability of our operating results reported in U.S. dollars i s affected by foreign currency exchange rate fluctuations. We calculate the impacts from foreign currency fluctuations by translating the current -year periods’ reported key figures into U.S. dollar amounts using the exchange rates in effect for the comparable periods in the previous year. Comparable growth rates are also adjusted for changes in our business portfolio. Adjustments to our business portfolio occur due to acquisitions, divestments, or by exiting specific business activities or customer markets. The adjustment for portfolio changes is calculat ed as follows: where the results of any business acquired or divested have not been consolidated and reported for the entire duration of both the curr ent and comparable periods, the reported key figures of such business are adjusted to exclude the relevant key figures of any corresponding quar ters 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 cust omer 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 ad just for portfolio changes where the relevant business has annualized revenues of less than $50 million. The following tables provide reconciliations of reported growth rates of certain key figures to their respective comparable g rowth rate. Comparable growth rate reconciliation by Business Area Q1 2024 compared to Q1 2023 Order growth rate Revenue growth rate US$ Foreign US$ Foreign (as exchange Portfolio (as exchange Portfolio Business Area reported) impact changes Comparable reported) impact changes Comparable Electrification 6% 0% 2% 8% 3% 0% 3% 6% Motion 2% 0% -1% 1% -6% 1% -1% -6% Process Automation -20% 0% 0% -20% 11% 1% 0% 12% Robotics & Discrete Automation -30% 0% 0% -30% -8% 1% 0% -7% ABB Group -5% 0% 1% -4% 0% 1% 1% 2% ===== SIDA 42 ===== 29 Q1 2024 FINANCIAL INFORMATION Regional comparable growth rate reconciliation Regional comparable growth rate reconciliation for ABB Group - Quarter Q1 2024 compared to Q1 2023 Order growth rate Revenue growth rate US$ Foreign US$ Foreign (as exchange Portfolio (as exchange Portfolio Region reported) impact changes Comparable reported) impact changes Comparable Europe -8% -1% 0% -9% -4% -2% 1% -5% The Americas -3% 0% 0% -3% 5% 0% 2% 7% of which: United States 0% 0% 2% 2% 6% 0% 4% 10% Asia, Middle East and Africa -4% 4% 0% 0% 0% 5% 0% 5% of which: China -23% 4% 1% -18% -14% 5% 0% -9% ABB Group -5% 0% 1% -4% 0% 1% 1% 2% Regional comparable growth rate reconciliation by Business Area - Quarter Q1 2024 compared to Q1 2023 Order growth rate Revenue growth rate US$ Foreign US$ Foreign (as exchange Portfolio (as exchange Portfolio Region reported) impact changes Comparable reported) impact changes Comparable Europe 3% -1% 0% 2% -2% -1% 1% -2% The Americas 9% -1% 3% 11% 9% -1% 7% 15% of which: United States 13% 0% 4% 17% 14% 0% 9% 23% Asia, Middle East and Africa 6% 4% 1% 11% -1% 5% 1% 5% of which: China -7% 4% 1% -2% -9% 4% 1% -4% Electrification 6% 0% 2% 8% 3% 0% 3% 6% Q1 2024 compared to Q1 2023 Order growth rate Revenue growth rate US$ Foreign US$ Foreign (as exchange Portfolio (as exchange Portfolio Region reported) impact changes Comparable reported) impact changes Comparable Europe -8% -3% 0% -11% -20% -2% 0% -22% The Americas -1% 0% -3% -4% 0% 0% -4% -4% of which: United States -4% 1% -3% -6% -3% 0% -3% -6% Asia, Middle East and Africa 16% 5% 0% 21% 5% 6% 0% 11% of which: China -12% 4% 0% -8% -9% 4% 0% -5% Motion 2% 0% -1% 1% -6% 1% -1% -6% Q1 2024 compared to Q1 2023 Order growth rate Revenue growth rate US$ Foreign US$ Foreign (as exchange Portfolio (as exchange Portfolio Region reported) impact changes Comparable reported) impact changes Comparable Europe -10% 0% 0% -10% 7% -1% 0% 6% The Americas -26% 0% 0% -26% 6% 0% 0% 6% of which: United States -13% 0% 0% -13% 8% 0% 0% 8% Asia, Middle East and Africa -27% 2% 0% -25% 21% 5% 0% 26% of which: China -37% 3% 0% -34% 2% 5% 0% 7% Process Automation -20% 0% 0% -20% 11% 1% 0% 12% Q1 2024 compared to Q1 2023 Order growth rate Revenue growth rate US$ Foreign US$ Foreign (as exchange Portfolio (as exchange Portfolio Region reported) impact changes Comparable reported) impact changes Comparable Europe -31% -1% 0% -32% 4% -2% 0% 2% The Americas -24% -2% 0% -26% 2% -1% 0% 1% of which: United States -34% 0% 0% -34% -7% 0% 0% -7% Asia, Middle East and Africa -32% 4% 0% -28% -29% 4% 0% -25% of which: China -46% 3% 0% -43% -37% 3% 0% -34% Robotics & Discrete Automation -30% 0% 0% -30% -8% 1% 0% -7% ===== SIDA 43 ===== 30 Q1 2024 FINANCIAL INFORMATION Order backlog growth rate reconciliation March 31, 2024 compared to March 31, 2023 US$ Foreign (as exchange Portfolio Business Area reported) impact changes Comparable Electrification 4% 2% 6% 12% Motion 10% 1% 0% 11% Process Automation 7% 2% 0% 9% Robotics & Discrete Automation -31% 2% 0% -29% ABB Group 2% 2% 2% 6% Other growth rate reconciliations Q1 2024 compared to Q1 2023 Service orders growth rate Services revenues growth rate US$ Foreign US$ Foreign (as exchange Portfolio (as exchange Portfolio Business Area reported) impact changes Comparable reported) impact changes Comparable Electrification 17% 1% 0% 18% 9% 0% 0% 9% Motion 4% 1% 0% 5% 19% 4% 0% 23% Process Automation 3% 0% 0% 3% 14% 0% 0% 14% Robotics & Discrete Automation 1% -1% 0% 0% 4% 1% 0% 5% ABB Group 6% 0% 0% 6% 12% 2% 0% 14% ===== SIDA 44 ===== 31 Q1 2024 FINANCIAL INFORMATION Operational EBITA as % of operational revenues (Operational EBITA margin) Definition Operational EBITA margin Operational EBITA margin is Operational EBITA as a percentage of operational revenues. Operational EBITA Operational earnings before interest, taxes and acquisition -related amortization (Operational EBITA) represents Income from operations excluding: • acquisition-related amortization (as defined below), • restructuring, related and implementation costs, • changes in the amount recorded for obligations related to divested businesses occurring after the divestment date (changes in obligations related to divested businesses), • gains and losses from sale of businesses (including fair value adjustment on assets and liabilities held for sale , if any), • acquisition- and divestment-related expenses and integration costs, • certain other non-operational items, as well as • foreign exchange/commodity timing differences in income from operations consisting of: (a) unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives), (b) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, and (c) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities). Certain other non-operational items generally includes certain regulatory, compliance and legal costs, certain asset write downs/impairments and certain other fair value changes, as well as other items which are determined by management on a case -by-case basis. Operational EBITA is our measure of segment profit but is also used by management to evaluate the profitability of the Compan y as a whole. Acquisition-related amortization Amortization expense on intangibles arising upon acquisitions. Restructuring, related and implementation costs Restructuring, related and implementation costs consists of restructuring and other related expenses, as well as internal and external costs relating to the implementation of group-wide restructuring programs. Operational revenues The Company presents operational revenues solely for the purpose of allowing the computation of Operational EBITA margin. Operational revenues are Total revenues adjusted for foreign exchange/commodity timing differences in total revenues of: (i) unrealized gains and losses on derivatives, (ii) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, and (iii) unrealized foreign exchange movements on receivables (and related assets). Operational revenues are not intended to be an alternative measure to Total revenues, which represent our revenues measured in accordance with U.S. GAAP. Reconciliation The following tables provide reconciliations of consolidated Operational EBITA to Net Income and Operational EBITA margin by business. Reconciliation of consolidated Operational EBITA to Net Income Three months ended March 31, ($ in millions) 2024 2023 Operational EBITA 1,417 1,277 Acquisition-related amortization (56) (54) Restructuring, related and implementation costs (1) (26) (28) Changes in obligations related to divested businesses – (3) Gains and losses from sale of businesses (2) – Acquisition- and divestment-related expenses and integration costs (19) (19) Certain other non-operational items (63) 1 Foreign exchange/commodity timing differences in income from operations (34) 24 Income from operations 1,217 1,198 Interest and dividend income 57 40 Interest and other finance expense (37) (61) Non-operational pension (cost) credit 16 7 Income from continuing operations before taxes 1,253 1,184 Income tax expense (339) (119) Income from continuing operations, net of tax 914 1,065 Loss from discontinued operations, net of tax (1) (5) Net income 913 1,060 (1) Includes impairment of certain assets. ===== SIDA 45 ===== 32 Q1 2024 FINANCIAL INFORMATION Reconciliation of Operational EBITA margin by business Three months ended March 31, 2024 Corporate and Robotics & Other and Process Discrete Intersegment ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated Total revenues 3,680 1,829 1,601 864 (104) 7,870 Foreign exchange/commodity timing differences in total revenues: Unrealized gains and losses on derivatives 47 46 44 6 5 148 Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized (3) – 2 – – (1) Unrealized foreign exchange movements on receivables (and related assets) (31) (17) (21) (11) (2) (82) Operational revenues 3,693 1,858 1,626 859 (101) 7,935 Income (loss) from operations 769 301 234 91 (178) 1,217 Acquisition-related amortization 23 9 1 21 2 56 Restructuring, related and implementation costs(1) 10 8 7 – 1 26 Gains and losses from sale of businesses – – – – 2 2 Acquisition- and divestment-related expenses and integration costs 10 – – 2 7 19 Certain other non-operational items 3 3 – 1 56 63 Foreign exchange/commodity timing differences in income from operations: Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives) 22 33 22 4 (4) 77 Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized (1) – 1 – (1) (1) Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities) (10) (11) (12) (6) (3) (42) Operational EBITA 826 343 253 113 (118) 1,417 Operational EBITA margin (%) 22.4% 18.5% 15.6% 13.2% n.a. 17.9% (1) Includes impairment of certain assets. In the three months ended March 31, 2024, Certain other non-operational items in the table above includes the following: Three months ended March 31, 2024 Robotics & Process Discrete Corporate ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated Certain other non-operational items: Other income/expense relating to the Power Grids joint venture – – – – (8) (8) Regulatory, compliance and legal costs – – – – 3 3 Business transformation costs(1) 2 1 – 1 46 50 Certain other fair values changes, including asset impairments 1 2 – – 11 14 Other non-operational items – – – – 4 4 Total 3 3 – 1 56 63 (1) Amounts include ABB Way process transformation costs of $46 million for the three months ended March 31, 2024. ===== SIDA 46 ===== 33 Q1 2024 FINANCIAL INFORMATION Three months ended March 31, 2023 Corporate and Robotics & Other and Process Discrete Intersegment ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated Total revenues 3,590 1,940 1,436 937 (44) 7,859 Foreign exchange/commodity timing differences in total revenues: Unrealized gains and losses on derivatives (14) 4 13 2 (4) 1 Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized (1) – 1 – 2 2 Unrealized foreign exchange movements on receivables (and related assets) (7) (4) (4) (1) (3) (19) Operational revenues 3,568 1,940 1,446 938 (49) 7,843 Income (loss) from operations 655 353 200 115 (125) 1,198 Acquisition-related amortization 22 8 1 20 3 54 Restructuring, related and implementation costs(1) 8 1 2 – 17 28 Changes in obligations related to divested businesses – – – – 3 3 Acquisition- and divestment-related expenses and integration costs 7 4 3 2 3 19 Certain other non-operational items 3 2 – 2 (8) (1) Foreign exchange/commodity timing differences in income from operations: Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives) (15) – (2) 2 (7) (22) Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized – – 2 – 3 5 Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities) (3) (2) (1) (1) – (7) Operational EBITA 677 366 205 140 (111) 1,277 Operational EBITA margin (%) 19.0% 18.9% 14.2% 14.9% n.a. 16.3% (1) Includes impairment of certain assets. In the three months ended March 31, 2023, Certain other non-operational items in the table above includes the following: Three months ended March 31, 2023 Robotics & Process Discrete Corporate ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated Certain other non-operational items: Other income/expense relating to the Power Grids joint venture – – – – (13) (13) Certain other fair values changes, including asset impairments 1 1 – 1 (2) 1 Business transformation costs(1) 4 – – 1 29 34 Other non-operational items (2) 1 – – (22) (23) Total 3 2 – 2 (8) (1) (1) Amounts include ABB Way process transformation costs of $30 million for the three months ended March 31, 2023. ===== SIDA 47 ===== 34 Q1 2024 FINANCIAL INFORMATION Net debt Definition Net debt Net debt is defined as Total debt less Cash and marketable securities. Total debt Total debt is the sum of Short-term debt and current maturities of long-term debt, and Long-term debt. Cash and marketable securities Cash and marketable securities is the sum of Cash and equivalents, Restricted cash and Marketable securities and short -term investments. Reconciliation ($ in millions) March 31, 2024 December 31, 2023 Short-term debt and current maturities of long-term debt 1,957 2,607 Long-term debt 6,346 5,221 Total debt 8,303 7,828 Cash and equivalents 4,102 3,891 Restricted cash 18 18 Marketable securities and short-term investments 2,097 1,928 Cash and marketable securities 6,217 5,837 Net debt 2,086 1,991 Net debt/Equity ratio Definition Net debt/Equity ratio Net debt/Equity ratio is defined as Net debt divided by Equity. Equity Equity is defined as Total stockholders’ equity. Reconciliation ($ in millions, unless otherwise indicated) March 31, 2024 December 31, 2023 Total stockholders' equity 13,382 14,057 Net debt (as defined above) 2,086 1,991 Net debt / Equity ratio 0.16 0.14 Net debt/EBITDA ratio Definition Net debt/EBITDA ratio Net debt/EBITDA ratio is defined as Net debt divided by EBITDA. EBITDA EBITDA is defined as Income from operations for the trailing twelve months preceding the balance sheet date before depreciati on and amortization for the same trailing twelve-month period. Reconciliation ($ in millions, unless otherwise indicated) March 31, 2024 March 31, 2023 Income from operations for the three months ended: June 30, 2023 / 2022 1,298 587 September 30, 2023 / 2022 1,259 708 December 31, 2023 / 2022 1,116 1,185 March 31, 2024 / 2023 1,217 1,198 Depreciation and Amortization for the three months ended: June 30, 2023 / 2022 196 207 September 30, 2023 / 2022 194 198 December 31, 2023 / 2022 199 199 March 31, 2024 / 2023 201 191 EBITDA 5,680 4,473 Net debt (as defined above) 2,086 3,826 Net debt / EBITDA 0.4 0.9 ===== SIDA 48 ===== 35 Q1 2024 FINANCIAL INFORMATION Net working capital as a percentage of revenues Definition Net working capital as a percentage of revenues Net working capital as a percentage of revenues is calculated as Net working capital divided by Adjusted revenues for the tra iling 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) pens ion 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 r elevant balance sheet date adjusted to eliminate revenues of divested businesses and the estimated impact of annualizing revenues of certain acquis itions which were completed in the same trailing twelve-month period. Reconciliation ($ in millions, unless otherwise indicated) March 31, 2024 March 31, 2023 Net working capital: Receivables, net 7,385 7,174 Contract assets 1,135 1,009 Inventories, net 6,170 6,269 Prepaid expenses 314 304 Accounts payable, trade (5,018) (4,945) Contract liabilities (2,866) (2,339) Other current liabilities(1) (3,532) (3,444) Net working capital in assets and liabilities held for sale – 136 Net working capital 3,588 4,164 Total revenues for the three months ended: June 30, 2023 / 2022 8,163 7,251 September 30, 2023 / 2022 7,968 7,406 December 31, 2023 / 2022 8,245 7,824 March 31, 2024 / 2023 7,870 7,859 Adjustment to annualize/eliminate revenues of certain acquisitions/divestments (106) (340) Adjusted revenues for the trailing twelve months 32,140 30,000 Net working capital as a percentage of revenues (%) 11.2% 13.9% (1) Amounts exclude $1,063 million and $668 million at March 31, 2024 and 2023, respectively, related primarily to (a) income taxes payable, (b) current derivative liabilities, (c) pension and other employee benefits, (d) payables under the share buyback program and (e) liabilities related to certain restructuring -related activitie s. ===== SIDA 49 ===== 36 Q1 2024 FINANCIAL INFORMATION Free cash flow Definition Free cash flow Free cash flow is calculated as net cash provided by operating activities adjusted for: (i) purchases of property, plant and equipment and intangible assets, and (ii) proceeds from sales of property, plant and equipment . Reconciliation Three months ended March 31, ($ in millions, unless otherwise indicated) 2024 2023 Net cash provided by operating activities 726 282 Adjusted for the effects of operations: Purchases of property, plant and equipment and intangible assets (181) (151) Proceeds from sale of property, plant and equipment 6 31 Free cash flow 551 162 Free cash flow conversion to net income Definition Free cash flow conversion to net income Free cash flow conversion to net income is calculated as free cash flow divided by Adjusted net income attributable to ABB. Adjusted net income attributable to ABB Adjusted net income attributable to ABB is calculated as net income attributable to ABB adjusted for gains or losses arising on sale of certain businesses and certain other significant items within net income which are also excluded / adjusted for when calculating operating cashflows. Free cash flow for the trailing twelve months Free cash flow for the trailing twelve months includes free cash flow recorded by ABB in the twelve months preceding the rele vant 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 th e relevant balance sheet date. Reconciliation Trailing twelve months to ($ in millions, unless otherwise indicated) March 31, 2024 December 31, 2023 Net cash provided by operating activities 4,734 4,290 Adjusted for the effects of operations: Purchases of property, plant and equipment and intangible assets (800) (770) Proceeds from sale of property, plant and equipment 122 147 Free cash flow 4,056 3,667 Adjusted net income attributable to ABB (1) 3,555 3,686 Free cash flow conversion to net income 114% 99% (1) Adjusted net income attributable to ABB for the year ended December 31, 2023, is adjusted to exclude the gain on sale of the Power Conversion Division of $59 million. Reconciliation of the trailing twelve months to March 31, 2024 ($ in millions) Net cash provided by operating activities Purchases of property, plant and equipment and intangible assets Proceeds from sale of property, plant and equipment Adjusted net income attributable to ABB(1) Q2 2023 760 (180) 26 906 Q3 2023 1,351 (175) 10 829 Q4 2023 1,897 (264) 80 915 Q1 2024 726 (181) 6 905 Total for the trailing twelve months to March 31, 2024 4,734 (800) 122 3,555 (1) Adjusted net income attributable to ABB for Q3 2023, is adjusted to exclude the gain on sale of the Power Conversion Division of $53 million . In Q4 2023, an additional $6 million was adjusted for the gain on sale of the Power Conversion Division. ===== SIDA 50 ===== 37 Q1 2024 FINANCIAL INFORMATION Net finance income (expense) Definition Net finance income (expense) is calculated as Interest and dividend income less Interest and other finance expense. Reconciliation Three months ended March 31, ($ in millions) 2024 2023 Interest and dividend income 57 40 Interest and other finance expense (37) (61) Net finance income (expense) 20 (21) Book-to-bill ratio Definition Book-to-bill ratio is calculated as Orders received divided by Total revenues. Reconciliation Three months ended March 31, 2024 2023 ($ in millions, except Book-to-bill presented as a ratio) Orders Revenues Book-to-bill Orders Revenues Book-to-bill Electrification 4,392 3,680 1.19 4,141 3,590 1.15 Motion 2,303 1,829 1.26 2,262 1,940 1.17 Process Automation 1,697 1,601 1.06 2,113 1,436 1.47 Robotics & Discrete Automation 701 864 0.81 1,001 937 1.07 Corporate and Other (incl. intersegment eliminations) (119) (104) n.a. (67) (44) n.a. ABB Group 8,974 7,870 1.14 9,450 7,859 1.20 ===== SIDA 51 ===== 38 Q1 2024 FINANCIAL INFORMATION Free cash flow for past periods Effective January 1, 2024, the Company changed the presentation of discontinued operations in its statement of cash flows to an alternate allowable policy. As a result, the total cash flows for operating, investing and financing activities within discontinued operations are no longer shown separately but instead all cash flows in discontinued operations are presented within each line item as appropriate in the statement of cash flows. As this presentation change represents a change in accounting policy, all prior periods presented have been reclassified to conform t o the current period presentation. The table below presents the reconciliation of Free cash flow as defined on page 36 for 2023 and 2022 by quarter, restated to reflect this change in presentation. Reconciliation: ($ in millions) Net cash provided by (used in) operating activities Purchases of property, plant and equipment and intangible assets Proceeds from sale of property, plant and equipment Free cash flow For the three months ended: March 31, 2022 (573) (187) 35 (725) June 30, 2022 382 (151) 31 262 September 30, 2022 791 (165) 19 645 December 31, 2022 687 (259) 42 470 March 31, 2023 282 (151) 31 162 June 30, 2023 760 (180) 26 606 September 30, 2023 1,351 (175) 10 1,186 December 31, 2023 1,897 (264) 80 1,713 ===== SIDA 52 ===== — ABB Ltd Corporate Communications P.O. Box 8131 805 0 Zurich Switzerland Tel: +41 (0)43 317 71 11 www.abb.com