===== SIDA 1 ===== — ZURICH, SWITZERLAND, APRIL 17, 2025 Q1 2025 results Strong start to the year; optimizing value creation with portfolio management • Orders $9,213 million, +3%; comparable1 +5% • Revenues $7,935 million, +1%; comparable1 +3% • Income from operations $1,567 million; margin 19.7% • Operational EBITA1 $1,597 million; margin1 20.2% • Basic EPS $0.60; +22%3 • Cash flow from operating activities $684 million; -6% — “ABB had a strong start to the year with progress on most lines of the income statement and solid cash flow. We confirm our 2025 outlook, but acknowledge that uncertainty for the business environment has increased. At the same time, we expect to create further value by actively managing our portfolio and spinning off our Robotics business.” Morten Wierod, CEO KEY FIGURES CHANGE ($ millions, unless otherwise indicated) Q1 2025 Q1 2024 US$ Comparable1 Orders 9,213 8,974 3% 5% Revenues 7,935 7,870 1% 3% Gross Profit2 3,311 3,064 8% as % of revenues2 41.7% 38.9% +2.8 pts Income from operations 1,567 1,217 29% Operational EBITA1 1,597 1,417 13% 16% 4 as % of operational revenues1 20.2% 17.9% +2.3 pts Income from continuing operations, net of tax 1,119 914 22% Net income attributable to ABB 1,102 905 22% Basic earnings per share ($) 0.60 0.49 22%3 Cash flow from operating activities 684 726 -6% Free cash flow1 652 551 18% 1 For a reconciliation of alternative performance measures, see “supplemental reconciliations and definitions” in the attached Q1 2025 Financial Information. 2 Prior period amounts have been restated to reflect a change in accounting policy for IS expenses, see “Note 1 - The Company and Basis of Presentation” in the attached Q1 2025 Financial Information for details. 3 EPS growth rates are computed using unrounded amounts. 4 Constant currency (not adjusted for portfolio changes). Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange Q1 2025 FIRST THREE MONTHS PRESS RELEASE ===== SIDA 2 ===== AB B IN TE RIM RE P ORT I Q1 2 02 5 2 A robust business environment in the first quarter of 2025 supported the order increase of 3% (5% comparable). Despite the slightly slower than expected revenue growth of 1% (3% comparable) we delivered an Operational EBITA margin of 20.2%. All our business areas outpaced our original expectations with a strong finish in the quarter. Additional margin support stemmed from a capital gain linked to a real estate sale which lifted profitability by approximately 170 basis points. Free cash flow1 of $652 million is a good start to us improving our full year 2025 free cash flow from last year’s $3.9 billion. Overall, I am pleased with the outcome. We built order backlog as we again achieved another quarter with a positive book-to-bill, reaching 1.16. Order intake increased in three out of four business areas, with only Motion declining from last year’s record high level. Customer inventories in the Machine Automation division are seemingly approaching normalized levels, with some final adjustments spilling over into the second quarter. Sequentially, the general business activity remained largely stable, but with some signs of longer investment decision lead times towards the end of the quarter, linked to unclarity regarding trade tariffs. As part of the annual reporting suite, we published our annual sustainability statement, and I am pleased about the progress we have made. Some highlights include that we are already close to fulfilling our 2030 target of 80% CO2e emissions reduction as we ended 2024 at 78% below the 2019 base level. It makes me proud to see that our leading technology helped customers avoid another 66 megatons of emissions throughout the lifetime of products sold, and importantly our diligent focus on zero harm to our people resulted in another low score for Lost Time Injury Frequency Rate (LTIFR) of 0.15. We acknowledge the increased uncertainty for the global business environment on the back of trade tariffs. We focus on what we can control and take action to defend our market position and profitability. Our legacy of a local-for- local footprint serves us well and in the United States we cover as much as 75%-80% of our sales with domestic production, with additional support from certain tariff exemptions. In Europe and China we have reached an even higher local footprint. The energy transition and expansion means increasing demand for advanced electrification technologies and we incrementally invest in the United States to support the anticipated long-term market development. We announced investments of $120 million in two of our manufacturing sites to expand local production of low voltage electrification products. This is in addition to the more than $500 million of US investments over the past three years. We continue to be active with portfolio management and the Smart Building division completed the acquisition of Siemens’ Wiring Accessories business in China. This adds a comprehensive product portfolio and a robust distribution network across 230 cities. It generated more than $150 million in revenues in 2024 and will be margin accretive. We have also decided to initiate the preparations to spin off our Robotics division as a separately listed pure play robotics company, planned for the second quarter of 2026. ABB Robotics holds a global number two market position with revenues of $2.3 billion in 2024 and as a strong performer in its industry it would benefit from being measured more directly against its peers. In addition, there are limited synergies between the ABB Robotics business and the remainder of the ABB divisions with different demand and market characteristics. We believe this change will support value creation in both units and now is a good time for both ABB and for the Robotics business. When it comes to ABB, the period of major operational change is behind us as we are on the final stretch of pushing the ABB Way operating model further down in the organization. For the Robotics business, it has proven its double-digit margin resilience and solid cash flow profile over the past few years in our decentralized operating model. It is well invested in their state-of-the-art main hubs in China and US and are just now starting the construction work for a major upgrade of the European hub in Sweden. It has the broadest customer offering and R&D efforts resulted in the unique Omnicore platform being launched last year. They have also made important acquisitions adding Autonomous Mobile Robots (AMRs) and Visual Simultaneous Localization and Mapping (VSLAM) technology. It is our view that a spin-off will optimize both companies’ abilities to create customer value, grow and attract talent and both will benefit from a more focused governance and capital allocation. Upon completion of the spin-off ABB will consist of three business areas with clear sales and technology synergies. The Machine Automation division, which together with Robotics currently forms the Robotics & Discrete Automation business area, will become part of the Process Automation business area where customer value creation will benefit from synergies for software and control technologies, for example towards hybrid industries. As part of our capital allocation strategy we launched a share buy-back program of up to $1.5 billion, which is in addition to the dividend of CHF 0.90 per share approved by shareholders at the annual general meeting. Morten Wierod CEO In the second quarter of 2025, we anticipate comparable revenue growth in the mid-single digit range, and the Operational EBITA margin to remain broadly stable with last year’s 19.0%; however acknowledging the increased uncertainty for the global business environment. We expect improved business results in 2025 to offset the year-on- year headwind from favorable net non-repeats of 30 basis points in Corporate & Other in the second quarter of 2024. In full-year 2025, we expect a positive book-to-bill, comparable revenue growth in the mid-single digit range and the Operational EBITA margin to improve year-on-year, however acknowledging the increased uncertainty for the global business environment. CEO summary Outlook ===== SIDA 3 ===== AB B IN TE RIM RE P ORT I Q1 2 02 5 3 Orders increased by 3% (5% comparable) to $9,213 million, supporting the book-to-bill of 1.16. There was positive momentum for both short-cycle and project and systems orders in three out of four business areas. Short-cycle orders improved also in Motion, however total orders declined from last year’s record-high level due mainly to lower project orders in the Traction division. Order backlog at the end of the first quarter reached $23 billion. Comparable orders increased in all geographical regions. The market environment in the Americas was strong and orders were up by 8% (11% comparable), supported by the United States which improved by 9% (9% comparable). In Europe, the positive comparable development was more than offset by the impact of changes in exchange rates, resulting in total orders declining by 2% (up 1% comparable). Asia, Middle East and Africa improved by 2% (4% comparable) mainly driven by strong growth in China which was up by 13% (13% comparable). In transport & infrastructure, the trading environment was strong in marine and ports as well as in rail, for which however quarterly orders declined from last year’s challenging comparable, which included some larger orders. Land transport infrastructure benefited from upgrades of electrical equipment. In the industrial areas a particularly strong development was seen in utilities. The general sentiment in the data center segment remains very strong, although quarterly orders declined slightly. Orders in the buildings segment improved as weakness in China was more than offset by favorable developments in other regions driven by commercial areas while the residential segment remained overall stable. In the robotics-related segments, the general trading environment in the automotive segment remains challenging, but orders increased on the back of certain customers broadening their geographical exposure, similar to the consumer electronics segment. Orders increased in food & beverage and the general industry segment benefited from increased orders related to industrial machinery and the fashion industry. Orders in the machine builder segment increased sharply from a low level. In the process-related areas, orders were stable or improved in most customer segments, with a muted environment mainly in chemicals and pulp & paper. Revenues improved by 1% (3% comparable) to $7,935 million, with the increase on a comparable basis offset mainly by the adverse impacts from changes in exchange rates. The higher revenues year-on-year was supported by execution of the order backlog and an increase in service. Higher volumes was the main driver to the revenue growth, with some added support from slightly positive pricing. Growth Q1 Q1 Change year-on-year Orders Revenues Comparable 5% 3% FX -2% -2% Portfolio changes 0% 0% Total 3% 1% Orders by region ($ in millions, unless otherwise indicated) CHANGE Q1 2025 Q1 2024 US$ Comparable Europe 3,234 3,298 -2% 1% The Americas 3,139 2,904 8% 11% Asia, Middle East and Africa 2,840 2,772 2% 4% ABB Group 9,213 8,974 3% 5% Revenues by region ($ in millions, unless otherwise indicated) CHANGE Q1 2025 Q1 2024 US$ Comparable Europe 2,773 2,748 1% 4% The Americas 2,918 2,789 5% 8% Asia, Middle East and Africa 2,244 2,333 -4% -2% ABB Group 7,935 7,870 1% 3% Orders and revenues ===== SIDA 4 ===== AB B IN TE RIM RE P ORT I Q1 2 02 5 4 Gross profit Gross profit increased by 8% (11% constant currency) year-on- year to $3,311 million, reflecting a gross margin of 41.7%, up 280 basis points year-on-year, with approximately 110 basis points support from foreign exchange/commodity timing differences. Gross margin improved in three out of four business areas. Income from operations Income from operations amounted to $1,567 million and improved by 29% year-on-year. This improvement was driven mainly by a stronger business performance, an operational capital gain linked to a real estate sale, favorable impacts from exchange rate and commodity timing differences. In total, the Income from operations margin was 19.7%, up by 420 basis points. Operational EBITA Operational EBITA improved by 13% year-on-year to $1,597 million and the margin increased by 230 basis points to 20.2%. The increases were supported both by improved operational results driven by leverage on higher volumes as well as slightly positive pricing. In addition, the net gain of approximately $140 million related to a real estate sale had positive margin impact of around 170 basis points. These combined benefits more than offset the higher expenses related to Sales, General & Administrative. Earnings improved in three business areas reflecting the higher margin run rate compared with last year. This more than offset a significant decline in Robotics & Discrete Automation which was impacted by lower revenues in a weak, but sequentially stabilizing, market environment. Operational EBITA in Corporate and Other amounted to $22 million including the impact of the real estate capital gain. Underlying corporate costs were $68 million while the E- mobility business reported a loss of $47 million as the operational performance was hampered by low volumes and the ongoing reorganization to ensure a more focused portfolio. Finance net Net finance income contributed to results with a positive $7 million, lower than last year’s income of $20 million. The change was due to higher interest charges on income tax contingencies offset partially by lower interest charges on debt. Income tax Income tax expense was $469 million, and the effective tax rate was 29.5%. Net income and earnings per share Net income attributable to ABB was $1,102 million, representing an increase of 22% from last year, mainly helped by the impacts of improved business performance and the gain, net of tax for a real estate divestment, which more than offset the adverse impact from higher tax rate year-on-year. This resulted in an increase of 22% in basic earnings per share to $0.60, up from $0.49 in the last year period. Earnings Corporate and Other Operational EBITA ($ in millions) Q1 2025 Q1 2024 Corporate and Other E-mobility (47) (54) Corporate costs, intersegment eliminations and other1 69 (64) Total 22 (118) 1 Majority of which relates to underlying corporate ===== SIDA 5 ===== AB B IN TE RIM RE P ORT I Q1 2 02 5 5 Trade net working capital1 Trade net working capital amounted to $4,664 million, decreasing year-on-year from $4,818 million as an increase in trade receivables and contract assets were more than offset by higher customer advances. The average trade net working capital as a percentage of revenues1 was 14.4% which declined from 16.1% one year ago. Capital expenditures Purchases of property, plant and equipment and intangible assets amounted to $195 million. Net debt Net debt1 amounted to $1,460 million at the end of the quarter and decreased from $2,086 million year-on-year. The sequential increase from $1,285 million in the fourth quarter was mainly due to share buyback activity and the completed acquisitions of businesses, which was partly offset by a solid free cash flow during the quarter. Cash flows Cash flow from operating activities was $684 million, representing a decline from last year’s $726 million as the impact of stronger earnings was offset by higher taxes and interest, while the buildup of Net working capital was broadly stable. Free cash flow amounted to $652 million and improved from last year’s $551 million mainly supported by the proceeds from the real estate sale with a cash impact of about $100 million. Share buyback program A share buyback program of up to $1.5 billion was launched on February 10, 2025, after the previous program of up to $1 billion as completed on January 31, 2025. During the first quarter, under the new program ABB repurchased a total of 3,886,309 shares for a total amount of approximately $216 million. As of March 31, 2025, ABB’s total number of issued shares, including shares held in treasury, amounts to 1,860,614,888. Balance sheet & Cash flow ($ in millions, unless otherwise indicated) Mar. 31 2025 Mar. 31 2024 Dec. 31 2024 Short-term debt and current maturities of long-term debt 805 1,957 293 Long-term debt 7,015 6,346 6,652 Total debt 7,820 8,303 6,945 Cash & equivalents 4,494 4,120 4,326 Marketable securities and short-term investments 1,866 2,097 1,334 Cash and marketable securities 6,360 6,217 5,660 Net debt (cash)* 1,460 2,086 1,285 Net debt (cash)* to EBITDA ratio 0.2 0.4 0.2 Net debt (cash)* to Equity ratio 0.10 0.16 0.09 * March 31, 2025, March, 31, 2024 and Dec. 31, 2024, net debt(cash) excludes net pension (assets)/liabilities of $(266) million, $(189) million and $(227) million, respectively. ===== SIDA 6 ===== AB B IN TE RIM RE P ORT I Q1 2 02 5 6 Orders and revenues The overall business environment was healthy in the first quarter and total order intake remained on par with last year’s record level. Orders increased in most customer segments, however the comparable positive development was offset by the impact from changes in exchange rates. In total, orders amounted to $4,394 million, stable year-on-year (up 2% comparable). Book-to-bill was strong at 1.15, and the order backlog increased to all-time-high level of $8.2 billion. • Customer activity was stable to positive in most of the customer segments, including the two largest of utilities as well as buildings where commercial demand improved and residential remained overall stable. The general sentiment in the data center segment remains very strong, although quarterly orders declined slightly due to slower activity noted for a specific customer within the hyperscale field. • Orders improved in two out of three regions, from last year’s record order level. The Americas increased by 4% (6% comparable) supported by the United States at 7% (6% comparable). Europe declined by 7% (4% comparable) with a mixed picture between the largest countries. Asia, Middle East and Africa improved by 3% (4% comparable) driven by China which was up by 8% (6% comparable). • Revenues of $3,825 million increased by 4% (6% comparable) from last year, improving in virtually all divisions. Higher volumes was the main driver to comparable growth with solid execution of the order backlog mainly linked to the medium voltage and power protection businesses as well as good customer activity in the short-cycle business. Profit Operational EBITA increased by 7% year-on-year to $886 million, resulting in a margin improvement of 80 basis points to 23.2%. • A strong improvement in gross margin was the main driver to the profitability increase, supported primarily by operational leverage on higher volumes and improved operational efficiency which combined more than offset a slight increase in SG&A expenses. — Electrification CHANGE ($ millions, unless otherwise indicated) Q1 2025 Q1 2024 US$ Comparable Orders 4,394 4,392 0% 2% Order backlog 8,173 7,389 11% 11% Revenues 3,825 3,680 4% 6% Gross Profit 1,638 1,498 9% as % of revenues 42.8% 40.7% +2.1 pts Operational EBITA 886 826 7% as % of operational revenues 23.2% 22.4% +0.8 pts Cash flow from operating activities 521 547 -5% No. of employees (FTE equiv.) 53,100 50,700 Growth Q1 Q1 Change year-on-year Orders Revenues Comparable 2% 6% FX -3% -2% Portfolio changes 1% 0% Total 0% 4% ===== SIDA 7 ===== AB B IN TE RIM RE P ORT I Q1 2 02 5 7 Orders and revenues Book-to-bill was strong at 1.17 as Motion delivered yet another quarter with order intake at the +$2 billion level. The decline from last year’s all-time-high by 6% (4% comparable) to $2,156 million was mainly due to the high large order comparable. • Strong growth was recorded in the service business, and short-cycle orders were up slightly. This was however offset by lower large order bookings as last year’s high level included one specific order of $150 million in the Traction division. • A stable to favorable order development was recorded in the segments of HVAC for commercial buildings, water & wastewater and power generation. Orders declined in the process related areas of oil & gas, chemicals and food & beverage; but also in rail due to the challenging large order comparable. • Orders improved in the Americas by 6% (8% comparable), supported by a strong improvement of 9% (10% comparable) in the United States. Comparable orders were stable in Europe while the total declined by 3% (0% comparable) primarily reflecting changes in exchange rates. Asia, Middle East and Africa declined sharply by 19% (18% comparable) impacted by the large order comparable although orders in China increased by 7% (9% comparable). • Revenues of $1,840 million improved by 1% (3% comparable). Strong growth in the long-cycle divisions through backlog execution was partially offset by declines in service, while short-cycle was broadly stable. Further support was derived from a positive price component. Profit Operational EBITA increased by 5% from last year, representing a 110 basis point improvement in the Operational EBITA margin. • The largest driver for the higher profitability level was the increase in gross margin. This was mainly supported by the impact from positive pricing as well as improved operational efficiency. — Motion CHANGE ($ millions, unless otherwise indicated) Q1 2025 Q1 2024 US$ Comparable Orders 2,156 2,303 -6% -4% Order backlog 5,716 5,612 2% 2% Revenues 1,840 1,829 1% 3% Gross Profit 733 646 13% as % of revenues 39.8% 35.3% +4.5 pts Operational EBITA 360 343 5% as % of operational revenues 19.6% 18.5% +1.1 pts Cash flow from operating activities 310 352 -12% No. of employees (FTE equiv.) 22,330 22,380 Growth Q1 Q1 Change year-on-year Orders Revenues Comparable -4% 3% FX -2% -2% Portfolio changes 0% 0% Total -6% 1% ===== SIDA 8 ===== AB B IN TE RIM RE P ORT I Q1 2 02 5 8 Orders and revenues Orders exceeding $2 billion signal a healthy business environment. Order intake increased by 19% (23% comparable) and amounted to $2,024 million with a positive development across the divisions. Book-to-bill was strong at 1.24, making it another quarter adding to the order backlog which amounted to $8.1 billion, up by 10% from last year. • Customer activity remained very strong in the marine and ports segment, where the main exposure is passenger and specialized vessels, as well as port automation. A stable to positive order development was noted in most of the energy and process industry-related segments. • Towards the end of the quarter there were some emerging signs of delayed investment decisions linked to uncertainty surrounding tariff impacts. On the other hand, customer activity remains strong for security of energy supply and geopolitical self- sufficiency. • Revenues were mainly supported by execution of the project order backlog. The volume increase was the key driver to the year-on-year growth of 2% (5% comparable) with some additional support from positive pricing, for total revenues of $1,633 million. Profit Operational EBITA of $255 million was up by 1% representing an Operational EBITA margin of 15.8%. • Operational EBITA margin improved in the project and systems related divisions which executed the order backlog with high gross margin. This was partially offset by the product division where weaker revenues weighed on profitability year-on-year. — Process Automation CHANGE ($ millions, unless otherwise indicated) Q1 2025 Q1 2024 US$ Comparable Orders 2,024 1,697 19% 23% Order backlog 8,076 7,343 10% 10% Revenues 1,633 1,601 2% 5% Gross Profit 647 594 9% as % of revenues 39.6% 37.1% +2.5 pts Operational EBITA 255 253 1% as % of operational revenues 15.8% 15.6% +0.2 pts Cash flow from operating activities 264 229 15% No. of employees (FTE equiv.) 22,760 21,340 Growth Q1 Q1 Change year-on-year Orders Revenues Comparable 23% 5% FX -4% -3% Portfolio changes 0% 0% Total 19% 2% ===== SIDA 9 ===== AB B IN TE RIM RE P ORT I Q1 2 02 5 9 Orders and revenues The business area turned a corner in the first quarter with both divisions recording strong order growth year-on-year, and improving also sequentially. Order intake was up by 14% (17% comparable) to $799 million and book-to-bill was positive at 1.07. • Orders in the Robotics division improved from last year at a double-digit pace. The general trading environment in the automotive segment remains challenging, but orders increased as certain customers stick with our leading technology, particularly for paint solutions, as they expand their geographical exposure. A similar pattern supported orders also in the consumer electronics segment. Other positive drivers were food & beverage, the fashion industry and industrial machinery. Orders increased sharply in the Americas and the Asia, Middle East & Africa regions, while a low single digit decline was recorded in Europe. • Orders in the Machine Automation division increased sharply from last year’s low level and customers’ inventory levels are seemingly approaching normalized inventory levels, with some final adjustments spilling over into the second quarter. We expect a slight sequential improvement in absolute order intake also going into the second quarter of 2025. • Revenues for the business area declined sharply by 14% (11% comparable) to $744 million. The two divisions show diverging patterns, with increased volumes in Robotics, while it declined sharply in Machine Automation. Profit Sequentially the Operational EBITA margin improved more than expected. However, year-on-year the impact from operational leverage on significantly lower volumes in the Machine Automation division put pressure on the Operational EBITA which declined by 35% to $74 million. The Operational EBITA margin dropped by 330 basis points year-on-year to 9.9%. • The Robotics division continued to deliver a double-digit profitability level. • Machine Automation improved to a break-even level as savings from cost measures were increasingly realized to offset the adverse impacts from still low utilization rates in production. — Robotics & Discrete Automation CHANGE ($ millions, unless otherwise indicated) Q1 2025 Q1 2024 US$ Comparable Orders 799 701 14% 17% Order backlog 1,518 1,918 -21% -21% Revenues 744 864 -14% -11% Gross Profit 256 320 -20% as % of revenues 34.4% 37.0% -2.6 pts Operational EBITA 74 113 -35% as % of operational revenues 9.9% 13.2% -3.3 pts Cash flow from operating activities 65 95 -32% No. of employees (FTE equiv.) 10,280 11,380 Growth Q1 Q1 Change year-on-year Orders Revenues Comparable 17% -11% FX -3% -3% Portfolio changes 0% 0% Total 14% -14% ===== SIDA 10 ===== AB B IN TE RIM RE P ORT I Q1 2 02 5 10 Events from the Quarter • ABB has launched an innovative collaboration with Stena Recycling AB, to streamline and improve the recycling of wood waste from its robotics factory in Västerås, Sweden. Stena Recycling processes the waste into wood chips that will eventually be utilized to produce particle boards for new furniture production. This partnership has contributed to ABB Robotics increasing its material recycling rate in our factory in Västerås, Sweden, from 36 percent to over 90 percent annually. • ABB has been selected by GreenIron, an innovative Swedish company working in the mining and metals industries with its patented materials reduction technology, to provide automation and control system solutions for a first commercial facility in Sweden. GreenIron is a pioneer for fossil-free metal production and has chosen ABB’s distributed control system to manage and automate its process supporting its ambition of leading the industries’ transformation to a circular economy and reducing CO₂ emissions. The latest version of ABB technology will create optimizations and efficiencies and is key to GreenIron’s scale up and commercialization. • ABB's high-efficiency motors and drives have enabled Aurubis, Europe's leading copper producer, to save 25 GWh of electricity annually at its Pirdop plant in Bulgaria. The upgrade involved replacing 460 outdated motors with IE4 and IE5 models, significantly reducing energy consumption and carbon emissions. The upgrade is expected to save so much energy that the project will pay for itself in only 3.5 years. Other benefits include reduced carbon emissions, increased process flexibility and improved performance. • ABB invested in two energy efficiency start-ups in North America to accelerate innovation and sustainability for its Electrification business. In March, ABB has acquired a minority stake in US company DG Matrix to support the commercialization of solid-state power electronics for generative AI data centers and renewable microgrids. The company’s Power Router platform replaces conventional systems with an all-in-one solution that is up to five times smaller and has best-in- class energy efficiency of 98 percent. In January, ABB also invested in Edgecom Energy, a Canadian energy management startup. The company’s unique energy management platform uses artificial intelligence to help industrial and commercial users manage and reduce peaks in their power demand. • One of ABB’s largest sites in the United States, in South Carolina, has launched a major sustainability initiative aimed at reducing its environmental impact and boosting energy efficiency. Key upgrades include transitioning to LED lighting, implementing water- saving measures, and deploying advanced energy monitoring software. The site is also planning to install a solar farm and battery energy storage system, supporting its goal of energy self-sufficiency. These efforts are expected to significantly cut carbon emissions and save over $150,000 in annual energy costs. — Sustainability Q1 2025 Q1 2024 CHANGE 12M ROLLING CO₂e own operations emissions, Ktons scope 1 and 21 35 35 0% 129 Total recordable incident frequency rate (TRIFR), frequency / 1,000,000 working hours 2 1.31 1.44 -9% 1.43 Proportion of women in senior management roles in % 21.8 21.5 +0.3 pts 21.5 1 CO₂ equivalent emissions from site, energy use, SF₆ and fleet, previous quarter 2 To align with CSRD reporting requirements, we have replaced our primary safety KPI, Lost Time Injury Frequency Rate (LTIFR), with Total Recordable Incident Frequency Rate (TRIFR). This new measure includes all incidents and injuries except first aid cases and near misses, promoting improved system learning, enhanced transparency, and greater openness in reporting. Current quarter Includes all incidents reported by April 7, 2025 ===== SIDA 11 ===== AB B IN TE RIM RE P ORT I Q1 2 02 5 11 During Q1 2025 • On February 10, ABB launched its previously announced new share buyback program of up to $1.5 billion. Based on the ABB share price at that time this represents a maximum of approximately 27.6 million shares. The maximum number of shares that may be repurchased under this new program on any given trading day is 663,417. The new share buyback program is for capital reduction purposes and will be executed on a second trading line on the SIX Swiss Exchange. It is planned to run from February 10, 2025, until January 28, 2026. The total number of ABB’s issued shares is 1,860,614,888. This includes 16,715,684 shares that were repurchased under the 2024 share buyback program and are expected to be cancelled in Q2 2025. ABB will use the capital band authorized at its Annual General Meeting 2023 for cancellation of these shares. On 7 February, 2025, ABB owned approximately 24 million treasury shares. • On March 27, ABB held its Annual General Meeting in Zurich, Switzerland where shareholders approved all proposals. This included the dividend of CHF 0.90 and the election of Claudia Nemat as a new Board Director, replacing Lars Förberg who did not stand for re-election. • On March 3, ABB announced the completion of the acquisition of Siemens’ Wiring Accessories business in China which generated over $150 million in revenue in 2024. The acquisition enhances ABB’s portfolio to address the growing demand for safe, reliable and energy-efficient building solutions as it provides access to expansive distributor network, extending ABB’s reach across China and Southeast Asia, and further into the retail market. After Q1 2025 • On April 17, ABB announced that it will launch a process to propose to its Annual General Meeting 2026 to decide on a 100 percent spin-off of its Robotics division. The intention is for the business to start trading as a separately listed company during the second quarter of 2026. Significant events ===== SIDA 12 ===== AB B IN TE RIM RE P ORT I Q1 2 02 5 12 Acquisitions Company/unit Closing date Revenues, $ in millions1 No. of employees 2025 Electrification Siemens Wiring Accessories 3-Mar ∼150 360 Electrification Sensorfact 3-Feb ∼15 260 Electrification Coulomb Inc. 13-Jan ∼2 30 2024 Electrification Solutions Industry & Building (SIB) 2-Dec ∼27 100 Process Automation Dr. Födisch Umweltmesstechnik AG 1-Oct ∼53 250 Electrification SEAM Group 31-Jul ∼90 250 Process Automation DTN Europe 3-Jun ∼14 84 Acquisitions and divestments, last twelve months ABB Group Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 EBITDA, $ in million 1,418 1,578 1,503 1,374 5,873 1,763 Return on Capital Employed, % 20.5 21.3 22.0 22.4 22.4 23.0 Net debt/Equity 0.16 0.18 0.15 0.09 0.09 0.10 Net debt/ EBITDA 12M rolling 0.4 0.4 0.4 0.2 0.2 0.2 Net working capital 3,497 3,516 3,512 2,739 2,739 3,371 Trade net working capital 4,818 4,825 4,931 4,428 4,428 4,664 Average trade net working capital as a % of revenues 16.1% 15.6% 15.1% 14.6% 14.6% 14.4% Earnings per share, basic, $ 0.49 0.59 0.51 0.54 2.13 0.60 Earnings per share, diluted, $ 0.49 0.59 0.51 0.53 2.13 0.60 Dividend per share, CHF n.a. n.a. n.a. n.a. 0.90 n.a. Share price at the end of period, CHF 41.89 49.92 48.99 49.07 49.07 45.22 Number of employees (FTE equivalents) 108,700 109,390 109,970 109,930 109,930 110,970 No. of shares outstanding at end of period (in millions) 1,851 1,849 1,843 1,838 1,838 1,833 Additional figures Divestments Company/unit Closing date Revenues, $ in millions1 No. of employees 2024 E-mobility InCharge Energy Inc (share transfer) 30-Nov ∼100 n.a. Electrification Part of ELIP cable tray business to JV 1-Nov ∼65 110 Electrification Service repair shops in US/CA 30-Aug ∼35 115 E-mobility Numocity 30-Jun <5 56 Note: comparable growth calculation includes acquisitions and divestments with revenues of greater than $50 million. 1 Represents the estimated revenues for the last fiscal year prior to the announcement of the respective acquisition/divestment unless otherwise stated. Additional 2025 guidance ($ in millions, unless otherwise stated) FY 20251 Q2 2025 Corporate and Other Operational EBITA2 ~(200) ~(75) from ~(300) Non-operating items Acquisition-related amortization ~(180) ~(55) Restructuring and related3 ~(250) ~(60) ABB Way transformation ~(150) ~(50) ($ in millions, unless otherwise stated) FY 2025 Finance net ~40 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 5 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,” “Sustainability” and “Additional 2025 guidance”. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions and 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,” “intends,” “plans,” “targets,” “guidance,” 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. These include, among others, business risks associated with the volatile global economic environment and political conditions, market acceptance of new products and services, changes in governmental regulations and currency exchange rates. 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 2025 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. Media will be able to join a conference call at 9:00 a.m. CET. 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 17, 2025 ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while becoming more efficient, productive and sustainable so they outperform. At ABB, we call this ‘Engineered to Outrun’. The company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com Financial calendar 2025 July 17 Q2 2025 results October 16 Q3 2025 results November 18 Capital Markets Day in New Berlin, United States ===== SIDA 14 ===== 1 Q1 2025 FINANCIAL INFORMATION April 17, 2025 Q1 2025 Financial Information ===== SIDA 15 ===== 2 Q1 2025 FINANCIAL INFORMATION FINANCIAL INFORMATION Contents 03 ─ 05 Key Figures 06 ─ 27 Consolidated Financial Information (unaudited) 28 ─ 41 Supplemental Reconciliations and Definitions ===== SIDA 16 ===== 3 Q1 2025 FINANCIAL INFORMATION — Key Figures CHANGE ($ in millions, unless otherwise indicated) Q1 2025 Q1 2024 US$ Comparable(1) Orders 9,213 8,974 3% 5% Order backlog (end March) 23,036 22,015 5% 5% Revenues 7,935 7,870 1% 3% Gross Profit(2) 3,311 3,064 8% as % of revenues(2) 41.7% 38.9% +2.8 pts Income from operations 1,567 1,217 29% Operational EBITA(1) 1,597 1,417 13% 16%(3) as % of operational revenues(1) 20.2% 17.9% +2.3 pts Income from continuing operations, net of tax 1,119 914 22% Net income attributable to ABB 1,102 905 22% Basic earnings per share ($) 0.60 0.49 22%(4) Cash flow from operating activities 684 726 -6% Free cash flow(1) 652 551 18% (1) For a reconciliation of alternative performance measures see “ Supplemental Reconciliations and Definitions ” on page 28. (2) Prior period amounts have been restated to reflect a change in accounting policy for IS expenses , see “Note 1 - The Company and basis of presentation” for details. (3) Constant currency (not adjusted for portfolio changes). (4) EPS growth rates are computed using unrounded amounts. ===== SIDA 17 ===== 4 Q1 2025 FINANCIAL INFORMATION CHANGE ($ in millions, unless otherwise indicated) Q1 2025 Q1 2024 US$ Local Comparable Orders ABB Group 9,213 8,974 3% 5% 5% Electrification 4,394 4,392 0% 3% 2% Motion 2,156 2,303 -6% -4% -4% Process Automation 2,024 1,697 19% 23% 23% Robotics & Discrete Automation 799 701 14% 17% 17% Corporate and Other 128 142 Intersegment eliminations (288) (261) Order backlog (end March) ABB Group 23,036 22,015 5% 5% 5% Electrification 8,173 7,389 11% 11% 11% Motion 5,716 5,612 2% 2% 2% Process Automation 8,076 7,343 10% 10% 10% Robotics & Discrete Automation 1,518 1,918 -21% -21% -21% Corporate and Other (incl. intersegment eliminations) (447) (247) Revenues ABB Group 7,935 7,870 1% 3% 3% Electrification 3,825 3,680 4% 6% 6% Motion 1,840 1,829 1% 3% 3% Process Automation 1,633 1,601 2% 5% 5% Robotics & Discrete Automation 744 864 -14% -11% -11% Corporate and Other 96 125 Intersegment eliminations (203) (229) Income from operations ABB Group 1,567 1,217 Electrification 922 769 Motion 361 301 Process Automation 263 234 Robotics & Discrete Automation 56 91 Corporate and Other (incl. intersegment eliminations) (35) (178) Income from operations % ABB Group 19.7% 15.5% Electrification 24.1% 20.9% Motion 19.6% 16.5% Process Automation 16.1% 14.6% Robotics & Discrete Automation 7.5% 10.5% Operational EBITA ABB Group 1,597 1,417 13% 16% Electrification 886 826 7% 11% Motion 360 343 5% 8% Process Automation 255 253 1% 5% Robotics & Discrete Automation 74 113 -35% -32% Corporate and Other (incl. intersegment eliminations) 22 (118) Operational EBITA % ABB Group 20.2% 17.9% Electrification 23.2% 22.4% Motion 19.6% 18.5% Process Automation 15.8% 15.6% Robotics & Discrete Automation 9.9% 13.2% Cash flow from operating activities ABB Group 684 726 Electrification 521 547 Motion 310 352 Process Automation 264 229 Robotics & Discrete Automation 65 95 Corporate and Other (incl. intersegment eliminations) (476) (497) ===== SIDA 18 ===== 5 Q1 2025 FINANCIAL INFORMATION Operational EBITA Process Robotics & Discrete ABB Electrification Motion Automation Automation ($ in millions, unless otherwise indicated) Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Revenues 7,935 7,870 3,825 3,680 1,840 1,829 1,633 1,601 744 864 Foreign exchange/commodity timing differences in total revenues (21) 65 (5) 13 (3) 29 (19) 25 6 (5) Operational revenues 7,914 7,935 3,820 3,693 1,837 1,858 1,614 1,626 750 859 Income from operations 1,567 1,217 922 769 361 301 263 234 56 91 Acquisition-related amortization 45 56 26 23 9 9 4 1 7 21 Restructuring, related and implementation costs(1) 16 26 6 10 2 8 2 7 5 – Changes in obligations related to divested businesses (1) – – – – – – – – – Gains and losses from sale of businesses (11) 2 (11) – – – – – – – Acquisition- and divestment-related expenses and integration costs 9 19 10 10 1 – 1 – 2 2 Certain other non-operational items 21 63 (31) 3 6 3 (2) – – 1 Foreign exchange/commodity timing differences in income from operations (49) 34 (36) 11 (19) 22 (13) 11 4 (2) Operational EBITA 1,597 1,417 886 826 360 343 255 253 74 113 Operational EBITA margin (%) 20.2% 17.9% 23.2% 22.4% 19.6% 18.5% 15.8% 15.6% 9.9% 13.2% (1) Includes impairment of certain assets. Depreciation and Amortization Process Robotics & Discrete ABB Electrification Motion Automation Automation ($ in millions) Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Depreciation 139 133 71 66 31 28 12 12 14 15 Amortization 57 68 32 28 11 10 5 2 8 22 including total acquisition-related amortization of: 45 56 26 23 9 9 4 1 7 21 Orders received and revenues by region Orders received CHANGE Revenues CHANGE ($ in millions, unless otherwise indicated) Com- Com- Q1 25 Q1 24 US$ Local parable Q1 25 Q1 24 US$ Local parable Europe 3,234 3,298 -2% 1% 1% 2,773 2,748 1% 4% 4% The Americas 3,139 2,904 8% 10% 11% 2,918 2,789 5% 7% 8% of which United States 2,321 2,139 9% 9% 9% 2,257 2,110 7% 7% 8% Asia, Middle East and Africa 2,840 2,772 2% 5% 4% 2,244 2,333 -4% -1% -2% of which China 1,191 1,050 13% 15% 13% 958 998 -4% -3% -4% ABB Group 9,213 8,974 3% 5% 5% 7,935 7,870 1% 3% 3% ===== SIDA 19 ===== 6 Q1 2025 FINANCIAL INFORMATION — Consolidated Financial Information ABB Ltd Consolidated Income Statements (unaudited) Three months ended ($ in millions, except per share data in $) Mar. 31, 2025 Mar. 31, 2024 Sales of products 6,567 6,503 Sales of services and other 1,368 1,367 Total revenues 7,935 7,870 Cost of sales of products (3,883) (4,041) Cost of services and other (741) (765) Total cost of sales (4,624) (4,806) Gross profit 3,311 3,064 Selling, general and administrative expenses (1,604) (1,528) Non-order related research and development expenses (329) (345) Other income (expense), net 189 26 Income from operations 1,567 1,217 Interest and dividend income 54 57 Interest and other finance expense (47) (37) Non-operational pension (cost) credit 14 16 Income from continuing operations before taxes 1,588 1,253 Income tax expense (469) (339) Income from continuing operations, net of tax 1,119 914 Loss from discontinued operations, net of tax (1) (1) Net income 1,118 913 Net income attributable to noncontrolling interests and redeemable noncontrolling interests (16) (8) Net income attributable to ABB 1,102 905 Amounts attributable to ABB shareholders: Income from continuing operations, net of tax 1,103 906 Loss from discontinued operations, net of tax (1) (1) Net income 1,102 905 Basic earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax 0.60 0.49 Loss from discontinued operations, net of tax – – Net income 0.60 0.49 Diluted earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax 0.60 0.49 Loss from discontinued operations, net of tax – – Net income 0.60 0.49 Weighted-average number of shares outstanding (in millions) used to compute: Basic earnings per share attributable to ABB shareholders 1,836 1,839 Diluted earnings per share attributable to ABB shareholders 1,841 1,852 Due to rounding, numbers presented may not add to the totals provided. See Notes to the Consolidated Financial Information ===== SIDA 20 ===== 7 Q1 2025 FINANCIAL INFORMATION — ABB Ltd Condensed Consolidated Statements of Comprehensive Income (unaudited) Three months ended ($ in millions) Mar. 31, 2025 Mar. 31, 2024 Total comprehensive income, net of tax 1,293 1,063 Total comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests, net of tax (22) 8 Total comprehensive income attributable to ABB shareholders, net of tax 1,271 1,071 Due to rounding, numbers presented may not add to the totals provided. See Notes to the Consolidated Financial Information ===== SIDA 21 ===== 8 Q1 2025 FINANCIAL INFORMATION — ABB Ltd Consolidated Balance Sheets (unaudited) ($ in millions) Mar. 31, 2025 Dec. 31, 2024 Cash and equivalents 4,494 4,326 Marketable securities and short-term investments 1,866 1,334 Receivables, net 7,560 7,388 Contract assets 1,210 1,115 Inventories, net 6,070 5,768 Prepaid expenses 354 287 Other current assets 521 541 Total current assets 22,075 20,759 Property, plant and equipment, net 4,301 4,177 Operating lease right-of-use assets 861 840 Investments in equity-accounted companies 377 368 Prepaid pension and other employee benefits 735 689 Intangible assets, net 1,183 1,048 Goodwill 11,088 10,555 Deferred taxes 1,364 1,363 Other non-current assets 480 489 Total assets 42,464 40,288 Accounts payable, trade 5,032 5,036 Contract liabilities 3,248 2,969 Short-term debt and current maturities of long-term debt 805 293 Current operating leases 260 235 Provisions 1,536 1,539 Dividends payable to shareholders 1,872 – Other current liabilities 4,495 4,582 Total current liabilities 17,248 14,654 Long-term debt 7,015 6,652 Non-current operating leases 625 631 Pension and other employee benefits 579 569 Deferred taxes 727 675 Other non-current liabilities 2,159 2,116 Total liabilities 28,353 25,297 Commitments and contingencies Stockholders’ equity: Common stock, CHF 0.12 par value (1,861 million shares issued at March 31, 2025, and December 31, 2024) 162 162 Additional paid-in capital 38 50 Retained earnings 19,883 20,648 Accumulated other comprehensive loss (5,181) (5,350) Treasury stock, at cost (28 million and 22 million shares at March 31, 2025, and December 31, 2024, respectively) (1,387) (1,091) Total ABB stockholders’ equity 13,515 14,419 Noncontrolling interests 596 572 Total stockholders’ equity 14,111 14,991 Total liabilities and stockholders’ equity 42,464 40,288 Due to rounding, numbers presented may not add to the totals provided. See Notes to the Consolidated Financial Information ===== SIDA 22 ===== 9 Q1 2025 FINANCIAL INFORMATION — ABB Ltd Consolidated Statements of Cash Flows (unaudited) Three months ended ($ in millions) Mar. 31, 2025 Mar. 31, 2024 Operating activities: Net income 1,118 913 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 196 201 Changes in fair values of investments (12) (13) Pension and other employee benefits (21) (13) Deferred taxes 27 (6) Net gain from derivatives and foreign exchange (59) (8) Net gain from sale of property, plant and equipment (133) (5) Net loss (gain) from sale of businesses (11) 2 Other (7) 32 Changes in operating assets and liabilities: Trade receivables, net 4 (33) Contract assets and liabilities 141 38 Inventories, net (103) (205) Accounts payable, trade (112) 82 Accrued liabilities (511) (473) Provisions, net (55) 37 Income taxes payable and receivable 212 122 Other assets and liabilities, net 10 55 Net cash provided by operating activities 684 726 Investing activities: Purchases of investments (846) (877) Purchases of property, plant and equipment and intangible assets (195) (181) Acquisition of businesses (net of cash acquired) and increases in cost - and equity-accounted companies (552) (30) Proceeds from sales of investments 329 727 Proceeds from sales of property, plant and equipment 163 6 Proceeds from sales of businesses (net of transaction costs and cash disposed) and cost - and equity-accounted companies 43 (8) Net cash from settlement of foreign currency derivatives 110 31 Other investing activities 2 1 Net cash used in investing activities (946) (331) Financing activities: Net changes in debt with original maturities of 90 days or less 400 (20) Increase in debt 295 1,358 Repayment of debt (7) (565) Delivery of shares – 390 Purchase of treasury stock (289) (291) Dividends paid – (919) Other financing activities 1 (3) Net cash provided by (used in) financing activities 400 (50) Effects of exchange rate changes on cash and equivalents 30 (134) Net change in cash and equivalents 168 211 Cash and equivalents, beginning of period 4,326 3,909 Cash and equivalents, end of period 4,494 4,120 Supplementary disclosure of cash flow information: Interest paid 118 94 Income taxes paid 258 228 Due to rounding, numbers presented may not add to the totals provided. See Notes to the Consolidated Financial Information ===== SIDA 23 ===== 10 Q1 2025 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, 2024 163 7 19,655 (5,070) (1,414) 13,341 647 13,988 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 18,553 (4,904) (1,150) 12,671 642 13,313 Balance at January 1, 2025 162 50 20,648 (5,350) (1,091) 14,419 572 14,991 Net income 1,102 1,102 16 1,118 Foreign currency translation adjustments, net of tax of $0 182 182 6 188 Effect of change in fair value of available-for-sale securities, net of tax of $0 3 3 3 Unrecognized income (expense) related to pensions and other postretirement plans, net of tax of $(8) (18) (18) (18) Change in derivative instruments and hedges, net of tax of $0 2 2 2 Changes in noncontrolling interests – 1 1 Dividends to shareholders (1,867) (1,867) (1,867) Share-based payment arrangements 17 17 1 18 Purchase of treasury stock (326) (326) (326) Delivery of shares (31) 31 – – Balance at March 31, 2025 162 38 19,883 (5,181) (1,387) 13,515 596 14,111 (1) Amount attributable to noncontrolling interests for the three months ended March 31, 2024, excludes the net loss of $1 million, related to redeemable noncontrolling interests. Due to rounding, numbers presented may not add to the totals provided. See Notes to the Consolidated Financial Information ===== SIDA 24 ===== 11 Q1 2025 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 global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while becoming more efficient, productive and sustainable so they outperform . 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, 2024. 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 rece ivables, 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. For classification of certain current assets and liabilities, the Company has elected to use the duration of individual contracts as its operating cycle. Accordingly, there are contract assets and liabilities, accounts receivable, inventories and provisions related to these cont racts which will not be realized within one year that have been classified as current. Long -term system integration activities comprise the majority of the Company’s activities which have an operating cycle in excess of 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, as mentioned below in this Note. Change in accounting policy Effective January 1, 2025, the Company changed its accounting policy related to the functional classification of information system expenses in the income statement. Previously, the Company allocated information system expenses in the income statement to the functional area based on a headcount approach while, in connection with this change, information systems expenses are allocated to the relevant income statement caption based on the nature of the underlying system. The Company’s consolidated financial statements have been retroactively restated to reflect this accounting policy change. In connection with this change, the Company recorded a cumulative-effect reduction of $69 million to the balance of Retained earnings on January 1, 2023, representing the impact of the policy change on Inventories and the related deferred tax balance. The effect on Net income for the years 2023 and 2024 was not considered significant and therefore no changes have been recorded. As a result, the Company’s Consolidated Balance Sheet amounts at December 31, 2024, for Inventories, Deferred taxes (asset), and Retained earnings have changed from $5,859 million, $1,341 million and $20,717 million, respectively, to $5,768 million, $1,363 million and $20,648 million, respectively. ===== SIDA 25 ===== 12 Q1 2025 FINANCIAL INFORMATION The following table details the reclassification of information systems expenses within the Consolidated Income Statement: Three months ended March 31, 2024 ($ in millions) Before After Cost of sales of products 4,145 4,041 Cost of services and other 790 765 Selling, general and administrative expenses 1,381 1,528 Non-order related research and development expenses 363 345 Warranty provision split In 2025, the Company split the amount previously reported in Provision for warranties into current and non-current components and retroactively recast the amounts for all periods presented. The balance at December 31, 2024, which was previously recorded on a combined basis, of $1,248 million has been reclassified into Provisions ($686 million) and Other non-current liabilities ($562 million). See Note 10 - Commitments and contingencies for additional information. ─ Note 2 Recent accounting pronouncements Applicable for current periods Improvements to Income tax disclosures In January 2025, the Company adopted an accounting standard update which requires the Company to disclose additional information related to income taxes. Under the update, the Company is required to annually disclose by jurisdiction (i) additional disaggregated information within the tax rate reconciliation and (ii) income taxes paid. The Company is currently evaluating the impact of adopting this update prospectively or retrospectively on its consolidated financial statements. Apart from the additional disclosure requirements, this update does not have a significant impact on the Company’s consolidated financial statements. Applicable for future periods Disaggregation of Income Statement Expenses In November 2024, an accounting standard update was issued which requires the Company to disclose additional information for certain types of expenses, including purchases of inventory, employee compensation, depreciation, and amortization, presented in each relevant income statement expense caption (such as cost of sales, selling, general and administrative expenses). This update is effective for the Compa ny prospectively, with retrospective adoption permitted, for annual periods beginning January 1, 2027, and interim periods beginning January 1, 2028. The Company is currently evaluating the impact of adopting this update on its consolidated financial statements. ─ Note 3 Acquisitions and divestments Acquisition of controlling interests Acquisitions of controlling interests were as follows: Three months ended March 31, ($ in millions, except number of acquired businesses) 2025 2024 Purchase price for acquisitions (net of cash acquired) (1) 546 29 Aggregate excess of purchase price over fair value of net assets acquired(2) 426 29 Number of acquired businesses 3 2 (1) Excluding changes in cost - and equity -accounted companies. (2) Recorded as goodwill. In the table above, the “Purchase price for acquisitions” and “Aggregate excess of purchase price over fair value of net assets acquired ” in the three months ended March 31, 2025, relate primarily to the acquisitions of Sensorfact BV and the Siemens Wiring Accessories Business in China. Acquisitions of controlling interests have been accounted for under the acquisition method and have been included in the Comp any’s consolidated financial statements since the date of acquisition. On February 3, 2025, the Company acquired all of the shares of Sensorfact BV. Sensorfact BV , headquartered in Utrecht, Netherlands, offers a scalable software as a service (SaaS) solution that helps small and medium sized enterprises use AI in their operations and energy man agement to lower costs and increase efficiency. The cash outflows to complete the transaction amounted to $1 48 million (net of cash acquired). This acquisition will expand the Company’s portfolio of energy management solutions that use big data and AI within its Electrification segment. On March 3, 2025, the Company acquired through numerous share and asset purchases all of the assets, liabilities and business activities of the Siemens Wiring Accessories Business in China. The Siemens Wiring Accessories Business offering, which distributes throughout China, includes wiring accessories, smart home systems, smart door locks and further peripheral home automation products . The cash outflows to complete the transaction amounted to $380 million (net of cash acquired). This acquisition will broaden the market reach of the Company’s Electrification segment and complement the segments’ regional customer offering within smart buildings . While the Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets ac quired and liabilities assumed at the acquisition date, the purchase price allocation for acquisitions is preliminary for up to 12 months after the acquisition date and is subject to refinement as more detailed analyses are completed and additional information about the fair values of the assets and liabilities becomes available. ===== SIDA 26 ===== 13 Q1 2025 FINANCIAL INFORMATION ─ Note 4 Cash and equivalents, marketable securities and short-term investments Cash and equivalents, marketable securities and short -term investments consisted of the following: March 31, 2025 Marketable Gross Gross securities unrealized unrealized Cash and and short-term ($ in millions) Cost basis gains losses Fair value equivalents investments Changes in fair value recorded in net income Cash 1,329 1,329 1,329 Time deposits 3,686 3,686 3,165 521 Equity securities 1,300 34 (1) 1,333 1,333 6,315 34 (1) 6,348 4,494 1,854 Changes in fair value recorded in other comprehensive income Debt securities available-for-sale: Other government obligations 12 12 12 12 – – 12 – 12 Total 6,327 34 (1) 6,360 4,494 1,866 December 31, 2024 Marketable Gross Gross securities unrealized unrealized Cash and and short-term ($ in millions) Cost basis gains losses Fair value equivalents investments Changes in fair value recorded in net income Cash 1,328 1,328 1,328 Time deposits 3,518 3,518 2,998 520 Equity securities 794 22 (2) 814 814 Total 5,640 22 (2) 5,660 4,326 1,334 ===== SIDA 27 ===== 14 Q1 2025 FINANCIAL INFORMATION ─ Note 5 Derivative financial instruments The Company is exposed to certain currency, commodity and interest rate risks arising from its global operating, financing and investing activities. The Company uses derivative instruments to reduce and manage the economic impact of these exposures. Currency risk Due to the global nature of the Company’s operations, many of its subsidiaries are exposed to currency risk in their 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 future 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 tim e, 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 busines s, 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, 2025 December 31, 2024 March 31, 2024 Foreign exchange contracts 14,970 12,800 14,331 Embedded foreign exchange derivatives 1,409 1,159 1,106 Cross-currency interest rate swaps 865 833 863 Interest rate contracts 1,625 1,510 3,075 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, 2025 December 31, 2024 March 31, 2024 Copper swaps metric tonnes 37,364 40,699 38,116 Silver swaps ounces 2,138,318 2,648,681 2,689,981 Steel swaps metric tonnes 18,144 20,185 10,251 Aluminum swaps metric tonnes 4,300 4,525 5,875 Cash flow hedges As noted above, the Company mainly uses forward foreign exchange contracts to manage the foreign exchange risk of its operations and commodity swaps to manage its commodity risks. The Company applies cash flow hedge accounting in only limited cases. In these cases, 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, 2025 and 2024, 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 28 ===== 15 Q1 2025 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) 2025 2024 Gains (losses) recognized in Interest and other finance expense: Interest rate contracts Designated as fair value hedges (5) 13 Hedged item 5 (14) Cross-currency interest rate swaps Designated as fair value hedges (1) (3) Hedged item 2 3 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 2025 2024 Foreign exchange contracts Total revenues 80 (168) Total cost of sales (17) 47 SG&A expenses(1) (19) 13 Non-order related research and development – (2) Interest and other finance expense 50 247 Embedded foreign exchange contracts Total revenues (2) 18 Total cost of sales 3 (4) Commodity contracts Total cost of sales 41 9 Other Interest and other finance expense – (2) Total 136 158 (1) SG&A expenses represent “Selling, general and administrative expenses”. The fair values of derivatives included in the Consolidated Balance Sheets were as follows: March 31, 2025 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 – – – – Interest rate contracts – 3 – – Cross-currency interest rate swaps – – – 223 Other 3 – – – Total 3 3 – 223 Derivatives not designated as hedging instruments: Foreign exchange contracts 102 19 103 8 Commodity contracts 25 – 3 – Embedded foreign exchange derivatives 18 7 12 3 Other 1 1 1 – Total 146 27 119 11 Total fair value 149 30 119 234 ===== SIDA 29 ===== 16 Q1 2025 FINANCIAL INFORMATION December 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 – – 1 – Interest rate contracts – 7 – – Cross-currency interest rate swaps – – – 256 Other 4 – – – Total 4 7 1 256 Derivatives not designated as hedging instruments: Foreign exchange contracts 151 17 111 15 Commodity contracts 4 – 20 – Embedded foreign exchange derivatives 22 6 11 5 Other – 5 – – Total 177 28 142 20 Total fair value 181 35 143 276 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, 2025, and December 31, 2024, 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, 2025, and December 31, 2024, information related to these offsetting arrangements was as follows: ($ in millions) March 31, 2025 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 154 (80) – – 74 Total 154 (80) – – 74 ($ in millions) March 31, 2025 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 338 (80) – – 258 Total 338 (80) – – 258 ($ in millions) December 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 188 (90) – – 98 Total 188 (90) – – 98 ($ in millions) December 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 403 (90) – – 313 Total 403 (90) – – 313 ===== SIDA 30 ===== 17 Q1 2025 FINANCIAL INFORMATION ─ Note 6 Fair values The Company uses fair value measurement principles to record certain financial assets and liabilities on a recurring basis and, when necessary, to record certain non-financial assets at fair value on a non-recurring basis, as well as to determine fair value disclosures for certain financial instruments carried at amortized cost in the financial statements. Financial assets and liabilities recorded at fair value on a recurring basis 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, 2025 ($ in millions) Level 1 Level 2 Level 3 Total fair value Assets Securities in “Marketable securities and short-term investments”: Equity securities – 1,333 – 1,333 Debt securities—Other government obligations 12 – – 12 Derivative assets—current in “Other current assets” – 149 – 149 Derivative assets—non-current in “Other non-current assets” – 30 – 30 Total 12 1,512 – 1,524 Liabilities Derivative liabilities—current in “Other current liabilities” – 119 – 119 Derivative liabilities—non-current in “Other non-current liabilities” – 234 – 234 Total – 353 – 353 December 31, 2024 ($ in millions) Level 1 Level 2 Level 3 Total fair value Assets Securities in “Marketable securities and short-term investments”: Equity securities – 814 – 814 Derivative assets—current in “Other current assets” – 181 – 181 Derivative assets—non-current in “Other non-current assets” – 35 – 35 Total – 1,030 – 1,030 Liabilities Derivative liabilities—current in “Other current liabilities” – 143 – 143 Derivative liabilities—non-current in “Other non-current liabilities” – 276 – 276 Total – 419 – 419 ===== SIDA 31 ===== 18 Q1 2025 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, 2025 and 2024. 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, 2025 ($ 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 1,329 1,329 – – 1,329 Time deposits 3,165 – 3,165 – 3,165 Marketable securities and short-term investments (excluding securities): Time deposits 521 – 521 – 521 Liabilities Short-term debt and current maturities of long -term debt (excluding finance lease obligations) 780 199 581 – 780 Long-term debt (excluding finance lease obligations) 6,843 6,155 734 – 6,889 December 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 1,328 1,328 – – 1,328 Time deposits 2,998 – 2,998 – 2,998 Marketable securities and short-term investments (excluding securities): Time deposits 520 – 520 – 520 Liabilities Short-term debt and current maturities of long -term debt (excluding finance lease obligations) 265 188 77 – 265 Long-term debt (excluding finance lease obligations) 6,486 6,012 551 – 6,563 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) 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 32 ===== 19 Q1 2025 FINANCIAL INFORMATION ─ Note 7 Contract assets and liabilities The following table provides information about Contract assets and Contract liabilities: ($ in millions) March 31, 2025 December 31, 2024 March 31, 2024 Contract assets 1,210 1,115 1,135 Contract liabilities 3,248 2,969 2,866 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, 2025 2024 Contract Contract Contract Contract ($ in millions) assets liabilities assets liabilities Revenue recognized, which was included in the Contract liabilities balance at Jan 1, 2025/2024 (673) (724) Additions to Contract liabilities - excluding amounts recognized as revenue during the period 877 819 Receivables recognized that were included in the Contract assets balance at Jan 1, 2025/2024 (392) (408) The Company considers its order backlog to represent its unsatisfied performance obligations. At March 31, 2025, the Company had unsatisfied performance obligations totaling $23,036 million and, of this amount, the Company expects to fulfill approximately 60 percent of the obligations in 2025, approximately 24 percent of the obligations in 2026 and the balance thereafter. ─ Note 8 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 Consolid ated Balance Sheets and are reported as operating or investing (if capitalized) activities in the Consolidated Statement of Cash Flows when paid. At Marc h 31, 2025, and December 31, 2024, the total obligation outstanding under supplier finance programs amounted to $439 million and $435 million, respectively. ─ Note 9 Debt The Company’s total debt at March 31, 2025, and December 31, 2024, amounted to $7,820 million and $6,945 million, respectively. Short-term debt and current maturities of long-term debt The Company’s “Short-term debt and current maturities of long-term debt” consisted of the following: ($ in millions) March 31, 2025 December 31, 2024 Short-term debt 588 83 Current maturities of long-term debt 217 210 Total 805 293 Short-term debt primarily represented issued commercial paper and short-term bank borrowings from various banks. At March 31, 2025, $508 million was outstanding under the $2 billion Euro-commercial paper program, no amount was outstanding under this program at December 31, 2024. ===== SIDA 33 ===== 20 Q1 2025 FINANCIAL INFORMATION Long-term debt The Company’s long-term debt at March 31, 2025, and December 31, 2024, amounted to $7,015 million and $6,652 million, respectively. Significant long-term borrowings (including maturities within the next 12 months) were as follows: March 31, 2025 December 31, 2024 (in millions) Nominal outstanding Carrying value(1) Nominal outstanding Carrying value(1) Bonds: 2.1% CHF Bonds, due 2025 CHF 150 $ 170 CHF 150 $ 166 1.965% CHF Bonds, due 2026 CHF 325 $ 368 CHF 325 $ 359 3.25% EUR Instruments, due 2027 EUR 500 $ 539 EUR 500 $ 518 0.75% CHF Bonds, due 2027 CHF 425 $ 481 CHF 425 $ 468 3.8% USD Notes, due 2028(2) USD 383 $ 382 USD 383 $ 382 1.9775% CHF Bonds, due 2028 CHF 150 $ 170 CHF 150 $ 165 3.125% EUR Instruments, due 2029 EUR 500 $ 543 EUR 500 $ 523 1.0% CHF Bonds, due 2029 CHF 170 $ 192 CHF 170 $ 188 0% EUR Instruments, due 2030 EUR 800 $ 759 EUR 800 $ 727 2.375% CHF Bonds, due 2030 CHF 150 $ 170 CHF 150 $ 165 3.375% EUR Instruments, due 2031 EUR 750 $ 801 EUR 750 $ 770 Floating rate EIB R&D Loan, due 2031 USD 539 $ 539 USD 539 $ 539 2.1125% CHF Bonds, due 2033 CHF 275 $ 311 CHF 275 $ 303 3.375% EUR Instruments, due 2034 EUR 750 $ 807 EUR 750 $ 780 4.375% USD Notes, due 2042(2) USD 609 $ 591 USD 609 $ 591 Total $ 6,823 $ 6,644 (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. ─ Note 10 Commitments and contingencies Contingencies—Regulatory, Compliance and Legal General The Company is subject to proceedings, litigation or threatened litigation and other claims and inquiries related to various regulatory, commercial and other matters. The Company assesses the likelihood of any adverse judgments or outcomes to these matters, as well as potentia l ranges of probable losses. A determination of the provision required, if any, for these contingencies is made after analysis of each individual issue, with assistance, when necessary, from internal and external legal counsel and technical experts. At March 31, 2025, and December 31, 2024, the Company had aggregate liabilities of $45 million and $83 million, respectively, included in Provisions and Other non‑current liabilities, for the regulatory, compliance and legal contingencies, and none of the individual liabilities recognize d was significant. As it is not possible to make an informed judgment on, or reasonably predict, the outcome of certain matters and as it is not possi ble, based on information currently available to management, to estimate the maximum potential liability on other matters, there could be adverse outco mes beyond the amounts accrued. Guarantees General The following table provides quantitative data regarding the Company’s third -party guarantees. The maximum potential payments represent a “worst-case scenario”, and do not reflect management’s expected outcomes. Maximum potential payments ($ in millions) March 31, 2025 December 31, 2024 Performance guarantees 2,043 2,299 Financial guarantees 20 22 Total(1) 2,063 2,321 (1) Maximum potential payments include amounts in both continuing and discontinued operations. The carrying amount of liabilities recorded in the Consolidated Balance Sheets reflects the Company’s best estimate of future payments, which it may incur as part of fulfilling its guarantee obligations. In respect of the above guarantees, the carrying amounts of liabilities at March 31, 2025, and December 31, 2024, 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 2034, mainly consist of performance guarantees whereby (i) the Company guarantees the performance of a third party’s product or service according to the terms of a contract and (ii) as member of a consortium/joint-venture that includes third parties, the Company guarantees not only its own performance but also the work of third parties. Such guarantees may include guarantees that a 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 in 2017, the Company has entered into various performance guarantees with other parties with respect to certain liabilities of the divested business. At March 31, 2025, and December 31, 2024, the maximum potential payable under these guarantees amounts to $784 million and $747 million, respectively, and these guarantees have various original maturities up to ten years. ===== SIDA 34 ===== 21 Q1 2025 FINANCIAL INFORMATION 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, 2025, and December 31, 2024, have been fully indemnified by Hitachi Ltd. These guarantees, having various maturities up to 203 4, primarily consist of bank guarantees, standby letters of credit, business performance guarantees and other trade-related guarantees, the majority of which have original maturity dates ranging from one to ten years. The maximum amount payable under these guarantees at March 31, 2025, and December 31, 2024, is approximately $0.9 billion and $1.1 billion, respectively. Commercial commitments In addition, in the normal course of bidding for and executing certain projects, the Company has entered into standby letters of credit, bid/performance bonds and surety bonds (collectively “performance bonds”) with various financial institutions. Customers can draw on such 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, 2025, and December 31, 2024, the total outstanding performance bonds aggregated to $3.3 billion and $3.2 billion, respectively. There have been no significant amounts reimbursed to financial institutions under these types of arrangements in the three months ended March 31, 2025 and 2024. Product and order-related contingencies The Company calculates its provision for product warranties based on historical claims experience and specific review of certain contracts. The reconciliation of the Provisions for warranties, including guarantees of product performance, was as follows: ($ in millions) 2025 2024 Balance at January 1, 1,248 1,210 Claims paid in cash or in kind (43) (37) Net increase in provision for changes in estimates, warranties issued and warranties expired 59 55 Exchange rate differences 29 (37) Balance at March 31, 1,293 1,191 Included in: ”Provisions” — current liabilities 693 621 ”Other non-current liabilities” — non-current liabilities 600 570 Provisions for warranties - Total 1,293 1,191 ─ 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, 2025, 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 consist s of the following: ($ in millions) Defined pension benefits Switzerland International Three months ended March 31, 2025 2024 2025 2024 Operational pension cost: Service cost 13 11 6 8 Operational pension cost 13 11 6 8 Non-operational pension cost (credit): Interest cost 5 9 38 39 Expected return on plan assets (27) (31) (41) (43) Amortization of prior service cost (credit) – (2) (1) (1) Amortization of net actuarial loss – – 12 13 Non-operational pension cost (credit) (22) (24) 8 8 Net periodic benefit cost (credit) (9) (13) 14 16 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, 2025 2024 2025 2024 Total contributions to defined benefit pension plans 15 13 9 11 The Company expects to make contributions totaling approximately $87 million to its defined benefit pension plans for the full year 2025. ===== SIDA 35 ===== 22 Q1 2025 FINANCIAL INFORMATION ─ Note 12 Stockholder's equity At the Annual General Meeting of Shareholders on March 27, 2025, shareholders approved the proposal of the Board of Directors to distribute 0. 90 Swiss francs per share to shareholders. The declared dividend , scheduled for payment in the second quarter of 2025, amounted to $1,867 million. In February 2025, the Company announced the completion of its $1 billion share buyback program that was launched in April 2024. This program was executed on a second trading line on the SIX Swiss Exchange. Also in February 2025, the Company launched a new share buyback program of up to $1.5 billion, as announced in late January 2025. This program, which is being executed on a second trading line on the SIX Swiss Exchange , is planned to run until January 2026. Under these buyback programs, the Company purchased approximately 6 million shares in the three months ended March 31, 2025, resulting in an increase in Treasury stock of $314 million. ─ Note 13 Earnings per share Basic earnings per share is calculated by dividing income by the weighted -average number of shares outstanding during the period. Diluted earnings per share is calculated by dividing income by the weighted -average number of shares outstanding during the period, assuming that all potentially dilutive securities were exercised, if dilutive. Potentially dilutive securities comprise outstanding written call options, and outsta nding options and shares granted subject to certain conditions under the Company’s share -based payment arrangements. Basic earnings per share Three months ended March 31, ($ in millions, except per share data in $) 2025 2024 Amounts attributable to ABB shareholders: Income from continuing operations, net of tax 1,103 906 Loss from discontinued operations, net of tax (1) (1) Net income 1,102 905 Weighted-average number of shares outstanding (in millions) 1,836 1,839 Basic earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax 0.60 0.49 Loss from discontinued operations, net of tax – – Net income 0.60 0.49 Diluted earnings per share Three months ended March 31, ($ in millions, except per share data in $) 2025 2024 Amounts attributable to ABB shareholders: Income from continuing operations, net of tax 1,103 906 Loss from discontinued operations, net of tax (1) (1) Net income 1,102 905 Weighted-average number of shares outstanding (in millions) 1,836 1,839 Effect of dilutive securities: Call options and shares 5 13 Adjusted weighted-average number of shares outstanding (in millions) 1,841 1,852 Diluted earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax 0.60 0.49 Loss from discontinued operations, net of tax – – Net income 0.60 0.49 ===== SIDA 36 ===== 23 Q1 2025 FINANCIAL INFORMATION ─ Note 14 Reclassifications out of accumulated other comprehensive loss The following table shows changes in “Accumulated other comprehensive loss” (OCI) attributable to ABB, by component, net of t ax: Unrealized gains Pension and Foreign currency (losses) on other Derivative translation available-for-sale postretirement instruments ($ in millions) adjustments securities plan adjustments and hedges Total OCI Balance at January 1, 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) 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, 2025 (4,248) (3) (1,091) (8) (5,350) Other comprehensive (loss) income: Other comprehensive (loss) income before reclassifications 188 3 (26) (1) 164 Amounts reclassified from OCI – – 8 3 11 Total other comprehensive (loss) income 188 3 (18) 2 175 Less: Amounts attributable to noncontrolling interests and redeemable noncontrolling interests 6 – – – 6 Balance at March 31, 2025 (4,066) – (1,109) (6) (5,181) The amounts reclassified out of OCI for the three months ended March 31, 2025 and 2024, were not significant. ─ Note 15 Operating segment data The Chief Operating Decision Maker (CODM) is the Chief Executive Officer. The CODM allocates resources to and assesses the performance of each operating segment using the information outlined below. The Company is organized into the following segments, based on products and services: Electrification, Motion, Process Automation and Robotics & Discrete Automation. The remaining operations of the Company are i ncluded in Corporate and Other. Effective January 1, 2025, the Company changed its accounting policy related to the functional classification of information system expenses in the income statement. Under the new policy, information systems expenses are now allocated to the relevant income statement caption based on the nature of the underlying system and the Total segment assets of each individual operating segment have been retroactively restated for the impact of the policy change on Inventories and the related deferred tax balance (see Note 1). The segment information for the three months ended March 31, 2024, and at December 31, 2024, has been recast to reflect this change. 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 the efficient and reliable distribution of electricity from source to socket. The portfolio of increasingly digital and connected solutions includes renewable power solutions, modular substation packages, distribution automation products, switchboards and panelboards, switchgear, UPS solutions, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems and intelligent home and building solutions, designed to integrate and automate lighting, heating, ventilation, security and data communication networks. The products and services are delivered through five operating Divisions: Distribution Solutions, Smart Power, Smart Buildings, Installation Products and Service. ===== SIDA 37 ===== 24 Q1 2025 FINANCIAL INFORMATION • 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), industrial PCs (IPC), servo motion, transport systems and machine vision. Both divisions offer software across the entire life cycle, including engineering and simulation software as well as a comprehensive range of digital solutions. Corporate and Other: Corporate includes headquarter costs, the Company’s corporate real estate activities and Corporate Treasury while Other inclu des the E-mobility operating segment and 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. For all operating segments, the primary performance measure the CODM uses to allocate resources (including capital expenditur e and financial resources) and assess performance as part of the monthly business review process is Operational EBITA. As part of this review process, current year-to-date budget-to-actual variances are provided (inclusive of key deviations) along with forecasted annual expectations and plans to address an y negative variances. Operational EBITA is also used to assess segment performance against targets set in the annual incentive plans as part of the compensation of the Company’s employees. 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. For a category of expense to be classified as a significant segment expense, it must be significant to the segment, regularly provided to or easily computed from information regularly provided to the CODM and included in the primary measure of profitability. Significant se gment expenses include Operational cost of sales, Operational selling, general and administrative expenses, and Operational non -order related research and development costs, which respectively are comprised of Cost of sales, Selling, general and administrative expenses (excluding bad debt expense), and Non-order related research and development costs, with each of these expense categories being adjusted to exclude any costs incurred on behalf of other segments and any relevant non-operational items (as defined above). Other segment items represent Other income (expense) excluding its respective components of non -operational items (as defined above), bad debt expense, and foreign exchange/commodity timing differences in total revenues. ===== SIDA 38 ===== 25 Q1 2025 FINANCIAL INFORMATION The following tables present disaggregated segment revenues from contracts with customers, significant segment expenses, and Operational EBITA for the three months ended March 31, 2025 and 2024. Three months ended March 31, 2025 Robotics & Process Discrete Corporate ($ in millions) Electrification Motion Automation Automation and Other Total Geographical markets Europe 1,154 540 684 356 39 2,773 The Americas 1,692 635 437 124 30 2,918 of which: United States 1,357 524 284 72 20 2,257 Asia, Middle East and Africa 935 536 502 259 12 2,244 of which: China 408 243 131 172 4 958 3,781 1,711 1,623 739 81 7,935 Product type Products 3,522 1,456 922 597 70 6,567 Services and other 259 255 701 142 11 1,368 3,781 1,711 1,623 739 81 7,935 Third-party revenues 3,781 1,711 1,623 739 81 7,935 Intersegment revenues 44 129 10 5 (188) – Total revenues(1) 3,825 1,840 1,633 744 (107) 7,935 Operational cost of sales (2,189) (1,113) (975) (480) Operational selling, general and administrative expenses (650) (289) (306) (149) Operational non-order related research and development expenses (105) (73) (78) (46) Other segment items 5 (5) (19) 5 Operational EBITA 886 360 255 74 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 Operational cost of sales (2,163) (1,179) (1,013) (527) Operational selling, general and administrative expenses (600) (263) (281) (166) Operational non-order related research and development expenses (106) (79) (75) (56) Other segment items 15 35 21 (2) Operational EBITA 826 343 253 113 ===== SIDA 39 ===== 26 Q1 2025 FINANCIAL INFORMATION The following tables present Operational EBITA, the reconciliations of consolidated Operational EBITA to Income from continuing operations before taxes, as well as Depreciation and amortization, and Capital expenditures for the three months ended March 31, 2025 and 2024, and Total assets at March 31, 2025, and December 31, 2024: Three months ended March 31, ($ in millions) 2025 2024 Operational EBITA: Electrification 886 826 Motion 360 343 Process Automation 255 253 Robotics & Discrete Automation 74 113 Corporate and Other ‒ E-mobility (47) (54) ‒ Corporate costs, intersegment eliminations and other 69 (64) Total 1,597 1,417 Acquisition-related amortization (45) (56) Restructuring, related and implementation costs (1) (16) (26) Changes in obligations related to divested businesses 1 – Gains and losses from sale of businesses 11 (2) Acquisition- and divestment-related expenses and integration costs (9) (19) Foreign exchange/commodity timing differences in income from operations: Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives) 78 (77) Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized – 1 Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities) (29) 42 Certain other non-operational items: Other income/expense relating to the Power Grids joint venture 3 8 Business transformation costs(2) (44) (50) Certain other fair value changes, including asset impairments 16 (14) Other non-operational items 4 (7) Income from operations 1,567 1,217 Interest and dividend income 54 57 Interest and other finance expense (47) (37) Non-operational pension (cost) credit 14 16 Income from continuing operations before taxes 1,588 1,253 (1) Includes impairment of certain assets. (2) Amount includes ABB Way process transformation costs of $43 million and $46 million for the three months ended March 31, 2025 and 2024, respectively. ($ in millions) Depreciation and amortization Capital expenditures(1) Three months ended March 31, 2025 2024 2025 2024 Electrification 103 94 79 84 Motion 42 38 46 44 Process Automation 17 14 14 15 Robotics & Discrete Automation 22 37 19 21 Corporate and Other 12 18 37 17 Consolidated 196 201 195 181 (1) Capital expenditures are after intersegment eliminations and therefore reflect third -party assets only. Total assets(1) ($ in millions) March 31, 2025 December 31, 2024 Electrification 14,387 13,089 Motion 6,960 6,870 Process Automation 5,383 5,308 Robotics & Discrete Automation 4,777 4,753 Corporate and Other 10,957 10,268 Consolidated 42,464 40,288 (1) Total assets are after intersegment eliminations and therefore reflect third-party assets only. ===== SIDA 40 ===== 27 Q1 2025 FINANCIAL INFORMATION ===== SIDA 41 ===== 28 Q1 2025 FINANCIAL INFORMATION — Supplemental Reconciliations and Definitions The following reconciliations and definitions include alternative performance measures which ABB uses to supplement its Consolidated Financial Information (unaudited) which is prepared in accordance with United States generally accepted accounting principles (U.S. GAAP). Certain of these financial measures are not defined under U.S. GAAP. While ABB’s management believes that the measures herein are useful in evaluating ABB’s operating results, this information s hould be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance wit h U.S. GAAP. Therefore these measures should not be viewed in isolation but considered together with the Consolidated Financial Informatio n (unaudited) prepared in accordance with U.S. GAAP as of and for the three months ended March 31, 2025. Effective January 1, 2025, ABB changed its accounting policy related to the functional classification of its information system expenses in the income statement . As a result, the consolidated financial statements for 2024 and 2023 have been retroactively restated to reflect this accounting policy change. See Note 1 - The Company and basis of presentation for details . Comparable growth rates Growth rates for certain key figures may be presented and discussed on a “comparable” basis. The comparable growth rate measures growth on a constant currency basis. Since we are a global company, the comparability of our operating results reported in U.S. dollars 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 calculated as follows: where the results of any business acquired or divested have not been consolidated and reported for the entire duration of both the 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 $50 million. The following tables provide reconciliations of reported growth rates of certain key figures to their respective comparable g rowth rate. Comparable growth rate reconciliation by Business Area Q1 2025 compared to Q1 2024 Order growth rate Revenue growth rate US$ Foreign US$ Foreign (as exchange Portfolio (as exchange Portfolio Business Area reported) impact changes Comparable reported) impact changes Comparable Electrification 0% 3% -1% 2% 4% 2% 0% 6% Motion -6% 2% 0% -4% 1% 2% 0% 3% Process Automation 19% 4% 0% 23% 2% 3% 0% 5% Robotics & Discrete Automation 14% 3% 0% 17% -14% 3% 0% -11% ABB Group 3% 2% 0% 5% 1% 2% 0% 3% ===== SIDA 42 ===== 29 Q1 2025 FINANCIAL INFORMATION Regional comparable growth rate reconciliation Regional comparable growth rate reconciliation for ABB Group - Quarter Q1 2025 compared to Q1 2024 Order growth rate Revenue growth rate US$ Foreign US$ Foreign (as exchange Portfolio (as exchange Portfolio Region reported) impact changes Comparable reported) impact changes Comparable Europe -2% 3% 0% 1% 1% 3% 0% 4% The Americas 8% 2% 1% 11% 5% 2% 1% 8% of which: United States 9% 0% 0% 9% 7% 0% 1% 8% Asia, Middle East and Africa 2% 3% -1% 4% -4% 3% -1% -2% of which: China 13% 2% -2% 13% -4% 1% -1% -4% ABB Group 3% 2% 0% 5% 1% 2% 0% 3% Regional comparable growth rate reconciliation by Business Area - Quarter Q1 2025 compared to Q1 2024 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 -7% 3% 0% -4% 0% 3% 0% 3% The Americas 4% 2% 0% 6% 11% 2% 0% 13% of which: United States 7% 1% -2% 6% 14% 1% -1% 14% Asia, Middle East and Africa 3% 2% -1% 4% -2% 3% -1% 0% of which: China 8% 1% -3% 6% -2% 1% -2% -3% Electrification 0% 3% -1% 2% 4% 2% 0% 6% Q1 2025 compared to Q1 2024 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% 3% 0% 0% 9% 3% 0% 12% The Americas 6% 2% 0% 8% 0% 2% 0% 2% of which: United States 9% 1% 0% 10% 1% 0% 0% 1% Asia, Middle East and Africa -19% 1% 0% -18% -7% 3% 0% -4% of which: China 7% 2% 0% 9% -6% 2% 0% -4% Motion -6% 2% 0% -4% 1% 2% 0% 3% Q1 2025 compared to Q1 2024 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 6% 4% 0% 10% 24% 4% 0% 28% The Americas 22% 5% 0% 27% -2% 2% 0% 0% of which: United States 14% 0% 0% 14% -1% 1% 0% 0% Asia, Middle East and Africa 36% 2% 0% 38% -16% 2% 0% -14% of which: China 56% 0% 0% 56% -20% 0% 0% -20% Process Automation 19% 4% 0% 23% 2% 3% 0% 5% Q1 2025 compared to Q1 2024 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% 3% 0% 13% -27% 3% 0% -24% The Americas 21% 7% 0% 28% -11% 4% 0% -7% of which: United States 1% 0% 0% 1% -15% 0% 0% -15% Asia, Middle East and Africa 16% 3% 0% 19% 12% 2% 0% 14% of which: China 4% 2% 0% 6% 10% 1% 0% 11% Robotics & Discrete Automation 14% 3% 0% 17% -14% 3% 0% -11% ===== SIDA 43 ===== 30 Q1 2025 FINANCIAL INFORMATION Order backlog growth rate reconciliation March 31, 2025 compared to March 31, 2024 US$ Foreign (as exchange Portfolio Business Area reported) impact changes Comparable Electrification 11% 0% 0% 11% Motion 2% 0% 0% 2% Process Automation 10% 0% 0% 10% Robotics & Discrete Automation -21% 0% 0% -21% ABB Group 5% 0% 0% 5% Other growth rate reconciliations Q1 2025 compared to Q1 2024 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 19% 3% -8% 14% 8% 3% -6% 5% Motion 13% 4% 0% 17% -9% 3% 0% -6% Process Automation 5% 3% 0% 8% 3% 2% 0% 5% Robotics & Discrete Automation -5% 3% 0% -2% -5% 2% 0% -3% ABB Group 9% 4% -2% 11% 0% 3% -1% 2% ===== SIDA 44 ===== 31 Q1 2025 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) 2025 2024 Operational EBITA 1,597 1,417 Acquisition-related amortization (45) (56) Restructuring, related and implementation costs (1) (16) (26) Changes in obligations related to divested businesses 1 – Gains and losses from sale of businesses 11 (2) Acquisition- and divestment-related expenses and integration costs (9) (19) Certain other non-operational items (21) (63) Foreign exchange/commodity timing differences in income from operations 49 (34) Income from operations 1,567 1,217 Interest and dividend income 54 57 Interest and other finance expense (47) (37) Non-operational pension (cost) credit 14 16 Income from continuing operations before taxes 1,588 1,253 Income tax expense (469) (339) Income from continuing operations, net of tax 1,119 914 Loss from discontinued operations, net of tax (1) (1) Net income 1,118 913 (1) Includes impairment of certain assets. ===== SIDA 45 ===== 32 Q1 2025 FINANCIAL INFORMATION Reconciliation of Operational EBITA margin by business Three months ended March 31, 2025 Corporate and Robotics & Other and Process Discrete Intersegment ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated Total revenues 3,825 1,840 1,633 744 (107) 7,935 Foreign exchange/commodity timing differences in total revenues: Unrealized gains and losses on derivatives (34) (9) (23) (2) (3) (71) Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized (1) 1 (5) – – (5) Unrealized foreign exchange movements on receivables (and related assets) 30 5 9 8 3 55 Operational revenues 3,820 1,837 1,614 750 (107) 7,914 Income (loss) from operations 922 361 263 56 (35) 1,567 Acquisition-related amortization 26 9 4 7 (1) 45 Restructuring, related and implementation costs(1) 6 2 2 5 1 16 Changes in obligations related to divested businesses – – – – (1) (1) Gains and losses from sale of businesses (11) – – – – (11) Acquisition- and divestment-related expenses and integration costs 10 1 1 2 (5) 9 Certain other non-operational items (31) 6 (2) – 48 21 Foreign exchange/commodity timing differences in income from operations: Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives) (57) (23) (19) – 21 (78) Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized 1 1 (2) – – – Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities) 20 3 8 4 (6) 29 Operational EBITA 886 360 255 74 22 1,597 Operational EBITA margin (%) 23.2% 19.6% 15.8% 9.9% n.a. 20.2% (1) Includes impairment of certain assets. In the three months ended March 31, 2025, Certain other non-operational items in the table above includes the following: Three months ended March 31, 2025 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 – – – – (3) (3) Business transformation costs(1) 1 2 – – 41 44 Certain other fair values changes, including asset impairments (25) 3 (2) – 8 (16) Other non-operational items (7) 1 – – 2 (4) Total (31) 6 (2) – 48 21 (1) Amounts include ABB Way process transformation costs of $43 million for the three months ended March 31, 2025. ===== SIDA 46 ===== 33 Q1 2025 FINANCIAL INFORMATION Three months ended March 31, 2024 Corporate and Robotics & Other and Process Discrete Intersegment ($ 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) 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 – – – – 7 7 Total 3 3 – 1 56 63 (1) Amounts include ABB Way process transformation costs of $46 million for the three months ended March 31, 2024. ===== SIDA 47 ===== 34 Q1 2025 FINANCIAL INFORMATION Net debt Definition Net debt Net debt is defined as Total debt less Cash and marketable securities. Total debt Total debt is the sum of Short-term debt and current maturities of long-term debt, and Long-term debt. Cash and marketable securities Cash and marketable securities is the sum of Cash and equivalents and Marketable securities and short -term investments. Reconciliation ($ in millions) March 31, 2025 December 31, 2024 Short-term debt and current maturities of long -term debt 805 293 Long-term debt 7,015 6,652 Total debt 7,820 6,945 Cash and equivalents 4,494 4,326 Marketable securities and short-term investments 1,866 1,334 Cash and marketable securities 6,360 5,660 Net debt 1,460 1,285 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, 2025 December 31, 2024 Total stockholders' equity 14,111 15,060 Net debt (as defined above) 1,460 1,285 Net debt / Equity ratio 0.10 0.09 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, 2025 March 31, 2024 Income from operations for the three months ended: June 30, 2024 / 2023 1,376 1,298 September 30, 2024 / 2023 1,309 1,259 December 31, 2024 / 2023 1,169 1,116 March 31, 2025 / 2024 1,567 1,217 Depreciation and Amortization for the three months ended: June 30, 2024 / 2023 202 196 September 30, 2024 / 2023 194 194 December 31, 2024 / 2023 205 199 March 31, 2025 / 2024 196 201 EBITDA 6,218 5,680 Net debt (as defined above) 1,460 2,086 Net debt / EBITDA 0.2 0.4 ===== SIDA 48 ===== 35 Q1 2025 FINANCIAL INFORMATION Net working capital Definition Net working capital Net working capital is the sum of (i) receivables, net, (ii) contract assets, (iii) inventories, net, and (iv) prepaid expenses; less (v) accounts payable, trade, (vi) contract liabilities and (vii) other current liabilities (excluding primarily: (a) income taxes payable, (b) current derivative liabilities, (c) pension and other employee benefits, (d) payables under the share buyback program and (e) liabilities related to certain other restructuring -related activities); and including the amounts related to these accounts which have been presented as either assets or liabilities held for sale. Reconciliation ($ in millions, unless otherwise indicated) March 31, 2025 March 31, 2024 Net working capital: Receivables, net 7,560 7,385 Contract assets 1,210 1,135 Inventories, net 6,070 6,079 Prepaid expenses 354 314 Accounts payable, trade (5,032) (5,018) Contract liabilities (3,248) (2,866) Other current liabilities(1) (3,543) (3,532) Net working capital 3,371 3,497 (1) Amounts exclude $952 million and $1,063 million at March 31, 2025 and 2024, respectively, related primarily to (a) income taxes payable, (b) current derivative liabilities, (c) pension and other employee benefits, (d) payables under the share buyback program and (e) liabilities related to certain restructuring -related activitie s. ===== SIDA 49 ===== 36 Q1 2025 FINANCIAL INFORMATION Average trade net working capital as a percentage of revenues Definition Average trade net working capital as a percentage of revenues Average trade net working capital as a percentage of revenues is calculated as Average trade net working capital divided by T otal revenues for the trailing twelve months (being the total revenues recorded by ABB in the twelve months preceding the relevant balance sheet date). Average trade net working capital Average trade net working capital is calculated as the average of the opening and closing Trade net working capital for each of the four quarters during the trailing twelve-month period (4-quarter average) Trade net working capital Trade net working capital is the sum of (i) trade receivables (comprised of trade accounts receivable net of related allowance, presented within Receivables, net, on the Consolidated Balance Sheets), (ii) contract assets, and (iii) inventories, net; less (iv) accounts payable, trade, (v) contract liabilities and (vi) accrued expenses, operating (comprised of accruals related to customer rebates, unpaid interest and other general operating expenses; all of which are presented within Other current liabilities on the Consolidated Balance Sheets); and including the amounts related to these accounts which have been presented as either assets or liabilities held for sale. Reconciliation March 31, December 31, September 30, June 30, March 31, ($ in millions, unless otherwise indicated) 2025 2024 2024 2024 2024 Trade net working capital: Trade receivables 6,887 6,816 6,821 6,898 6,790 Contract assets 1,210 1,115 1,236 1,118 1,135 Inventories, net 6,070 5,768 6,465 6,166 6,079 Accounts payable, trade (5,032) (5,036) (5,167) (5,118) (5,018) Contract liabilities (3,248) (2,969) (3,081) (2,973) (2,866) Accrued expenses, operating (1,223) (1,266) (1,363) (1,266) (1,302) Trade net working capital in assets and liabilities held for sale – – 20 – – Trade net working capital 4,664 4,428 4,931 4,825 4,818 Average of opening and closing Trade net working capital 4,546 4,680 4,878 4,822 Average trade net working capital 4,732 Total revenues for the three months ended: June 30, 2024 8,239 September 30, 2024 8,151 December 31, 2024 8,590 March 31, 2025 7,935 Total revenues for the trailing twelve months 32,915 Average trade net working capital as a percentage of revenues (%) 14.4% March 31, December 31, September 30, June 30, March 31, ($ in millions, unless otherwise indicated) 2024 2023 2023 2023 2023 Trade net working capital: Trade receivables 6,790 6,822 6,863 6,786 6,532 Contract assets 1,135 1,090 1,073 1,010 1,009 Inventories, net 6,079 6,058 6,241 6,357 6,178 Accounts payable, trade (5,018) (4,847) (4,777) (4,881) (4,945) Contract liabilities (2,866) (2,844) (2,610) (2,394) (2,339) Accrued expenses, operating (1,302) (1,445) (1,524) (1,341) (1,354) Trade net working capital in assets and liabilities held for sale – – – 143 138 Trade net working capital 4,818 4,834 5,266 5,680 5,219 Average of opening and closing Trade net working capital 4,826 5,050 5,473 5,450 Average trade net working capital 5,200 Total revenues for the three months ended: June 30, 2023 8,163 September 30, 2023 7,968 December 31, 2023 8,245 March 31, 2024 7,870 Total revenues for the trailing twelve months 32,246 Average trade net working capital as a percentage of revenues (%) 16.1% ===== SIDA 50 ===== 37 Q1 2025 FINANCIAL INFORMATION Return on Capital employed (ROCE) In the first quarter of 2025, the Company modified its definition of Return on Capital employed (ROCE) to utilize a four -quarter average of Capital employed in place of a simple average of the annual period’s opening and closing Capital employed . The change in averaging method allows a comparable ratio that can be presented quarterly compared to our previous annual disclosure. In addition, a fixed notional tax rate (subject to review for significant changes) is used. The new definition is provided below. Definition Return on Capital employed (ROCE) Return on Capital employed (ROCE) is calculated as Operational EBITA after tax for the trailing twelve months divided by the average of the ope ning and closing Capital employed for each of the four quarters during the trailing twelve -month period (4-quarter average). Capital employed Capital employed is calculated as the sum of Adjusted total fixed assets and Net working capital (as defined above). Adjusted total fixed assets Adjusted total fixed assets is the sum of (i) property, plant and equipment, net, (ii) goodwill, (iii) other intangible assets, net, (iv) investments in equity-accounted companies, (v) operating lease right-of-use assets, and (vi) fixed assets included in assets held for sale, less (vii) deferred tax liabilities recognized in certain acquisitions. Notional tax on Operational EBITA The Notional tax on Operational EBITA is computed using a consistent notional tax rate, approximately representative of the Company’s weighted - average global tax rate, multiplied by Operational EBITA. The notional tax rate is subject to adjustment for significant changes in the Company’s weighted-average global tax rate. Reconciliation March 31, December 31, September 30, June 30, March 31, ($ in millions, unless otherwise indicated) 2025 2024 2024 2024 2024 Adjusted total fixed assets: Property, plant and equipment, net 4,301 4,177 4,248 4,095 4,047 Goodwill 11,088 10,555 10,582 10,525 10,494 Other intangible assets, net 1,183 1,048 1,036 1,089 1,128 Investments in equity-accounted companies 377 368 185 189 178 Operating lease right-of-use assets 861 840 873 861 863 Fixed assets included in assets held for sale – – 176 – – Total fixed assets 17,810 16,988 17,100 16,759 16,710 Less: Deferred taxes recognized in certain acquisitions (1) (231) (242) (253) (265) (281) Adjusted total fixed assets 17,579 16,746 16,847 16,494 16,429 Net working capital - (as defined above) 3,371 2,739 3,512 3,516 3,497 Capital employed 20,950 19,485 20,359 20,010 19,926 Average of opening and closing Capital employed 20,218 19,922 20,185 19,968 Operational EBITA for the three months ended 1,597 1,434 1,553 1,564 Operational EBITA for the trailing twelve months 6,148 Notional tax on Operational EBITA (1,537) Operational EBITA after tax for the trailing twelve months 4,611 Average Capital employed (4 quarters) 20,073 Return on Capital Employed (ROCE) 23.0% (1) Amount relates to GEIS acquired in 2018, B&R acquired in 2017, Thomas & Betts acquired in 2012 and Baldor acquired in 2011. ===== SIDA 51 ===== 38 Q1 2025 FINANCIAL INFORMATION March 31, December 31, September 30, June 30, March 31, ($ in millions, unless otherwise indicated) 2024 2023 2023 2023 2023 Adjusted total fixed assets: Property, plant and equipment, net 4,047 4,142 3,891 3,923 3,888 Goodwill 10,494 10,561 10,356 10,420 10,381 Other intangible assets, net 1,128 1,223 1,181 1,257 1,285 Investments in equity-accounted companies 178 187 186 154 153 Operating lease right-of-use assets 863 893 850 852 870 Fixed assets included in assets held for sale – – – 293 290 Total fixed assets 16,710 17,006 16,464 16,899 16,867 Less: Deferred taxes recognized in certain acquisitions (1) (281) (297) (312) (328) (343) Adjusted total fixed assets 16,429 16,709 16,152 16,571 16,524 Net working capital - (as defined above) 3,497 3,166 3,950 4,494 4,073 Capital employed 19,926 19,875 20,102 21,065 20,597 Average of opening and closing Capital employed 19,901 19,989 20,584 20,831 Operational EBITA for the three months ended 1,417 1,333 1,392 1,425 Operational EBITA for the trailing twelve months 5,567 Notional tax on Operational EBITA (1,392) Operational EBITA after tax for the trailing twelve months 4,175 Average Capital employed (4 quarters) 20,326 Return on Capital Employed (ROCE) 20.5% (1) Amount relates to GEIS acquired in 2018, B&R acquired in 2017, Thomas & Betts acquired in 2012 and Baldor acquired in 2011. ===== SIDA 52 ===== 39 Q1 2025 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) 2025 2024 Net cash provided by operating activities 684 726 Adjusted for the effects of operations: Purchases of property, plant and equipment and intangible assets (195) (181) Proceeds from sale of property, plant and equipment 163 6 Free cash flow 652 551 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, 2025 December 31, 2024 Net cash provided by operating activities 4,633 4,675 Adjusted for the effects of operations: Purchases of property, plant and equipment and intangible assets (859) (845) Proceeds from sale of property, plant and equipment 264 107 Free cash flow 4,038 3,937 Adjusted net income attributable to ABB (1) 4,109 3,949 Free cash flow conversion to net income 98% 100% (1) Adjusted net income attributable to ABB for the year ended December 31, 2024, is adjusted to exclude the fair value adjustment of $88 million on assets and liabilities held for sale related to In-Charge, the net gain on the sale of a business within the Electrification Business Area of $64 million and adjustments to the gain on sale of Power Grids of $10 million. Reconciliation of the trailing twelve months to March 31, 2025 ($ 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 2024 1,067 (185) 36 1,096 Q3 2024 1,345 (196) 24 1,026 Q4 2024 1,537 (283) 41 922 Q1 2025 684 (195) 163 1,065 Total for the trailing twelve months to March 31, 2025 4,633 (859) 264 4,109 (1) Adjusted net income attributable to ABB for Q4 2024 is adjusted to exclude an increase in the gain on sale of the Power Conversion Division of $6 million; Q3 2024 is adjusted to exclude the fair value adjustment of $89 million on assets and liabilities held for sale related to In -Charge and adjustments to the gain on sale of Power Grids of $10 million ; and Q1 2025 is adjusted to exclude $37 million of gains arising on sale of certain investments and intangibles assets. ===== SIDA 53 ===== 40 Q1 2025 FINANCIAL INFORMATION Free cash flow margin Definition Free cash flow margin Free cash flow margin is calculated as Free cash flow divided by total revenue s. Reconciliation Three months ended March 31, ($ in millions, unless otherwise indicated) 2025 2024 Free cash flow (as defined above) 652 551 Total revenues 7,935 7,870 Free cash flow margin 8.2% 7.0% ===== SIDA 54 ===== 41 Q1 2025 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) 2025 2024 Interest and dividend income 54 57 Interest and other finance expense (47) (37) Net finance income (expense) 7 20 Book-to-bill ratio Definition Book-to-bill ratio is calculated as Orders received divided by Total revenues. Reconciliation Three months ended March 31, 2025 2024 ($ in millions, except Book-to-bill presented as a ratio) Orders Revenues Book-to-bill Orders Revenues Book-to-bill Electrification 4,394 3,825 1.15 4,392 3,680 1.19 Motion 2,156 1,840 1.17 2,303 1,829 1.26 Process Automation 2,024 1,633 1.24 1,697 1,601 1.06 Robotics & Discrete Automation 799 744 1.07 701 864 0.81 Corporate and Other (incl. intersegment eliminations) (160) (107) n.a. (119) (104) n.a. ABB Group 9,213 7,935 1.16 8,974 7,870 1.14 ===== SIDA 55 ===== ABB Ltd Corporate Communications P.O. Box 8131 8050 Zurich Switzerland Tel: +41 (0)43 317 71 11 www.abb.com