Kvartalsrapport Q2 2023

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===== SIDA 1 =====

— 
ZURICH, SWITZERLAND, JULY 20, 2023 
Q2 2023 results 
Comparable order growth from a high base and 
record-high Operational EBITA margin1 
 
• Orders $8,667 million, -2%; comparable1 +2%  
• Revenues $8,163 million, +13%; comparable +17%  
• Income from operations $1,298 million; margin 15.9%  
• Operational EBITA1 $1,425 million; margin1 17.5% 
• Basic EPS $0.49; +145%2 
• Cash flow from operating activities4 $760 million
— 
“The positive book-to-bill ratio and new record-high Operational EBITA earnings and 
margin add to our confidence about ABB's 2023 outcome allowing us to  
sharpen our margin expectations.” 
 
Björn Rosengren, CEO 
KEY FIGURES         
   CHANGE   CHANGE 
($ millions, unless otherwise indicated) Q2 2023 Q2 2022 US$ Comparable1 H1 2023 H1 2022 US$ Comparable1 
Orders 8,667 8,807 -2% 2% 18,117 18,180 0% 6% 
Revenues 8,163 7,251 13% 17% 16,022 14,216 13% 19% 
Gross Profit 2,888 2,290 26%  5,604 4,571 23%  
as % of revenues 35.4% 31.6% +3.8 pts  35.0% 32.2% +2.8 pts  
Income from operations 1,298 587 121%  2,496 1,444 73%  
Operational EBITA1 1,425 1,136 25% 26% 3  2,702 2,133 27% 29% 3  
as % of operational revenues1 17.5% 15.5% +2 pts  16.9% 14.9% +2 pts  
Income from continuing operations, net of tax  932 406 130%  1,997 1,049 90%  
Net income attributable to ABB 906 379 139%  1,942 983 98%  
Basic earnings per share ($)  0.49 0.20 145%2  1.04 0.51 104%2  
Cash flow from operating activities4 760 382 99%  1,042 (191) n.a.  
          
1 For a reconciliation of non-GAAP measures, see “supplemental reconciliations and definitions” in the attached Q2 2023 Financial Information. 
2 EPS growth rates are computed using unrounded amounts. 
3 Constant currency (not adjusted for portfolio changes). 
4 Amount represents total for both continuing and discontinued operations. 
 
Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange 
 
 
— 
Q2 2023 
First six months 
Press Release

===== SIDA 2 =====

AB B  IN TE RIM RE P ORT  I Q2  20 23  2 
 
To summarize the outcome in the second quarter, I would 
first highlight the 2% comparable order growth which was 
up from last year's already high level, and the positive book-
to-bill. It was good to see that the customer activity 
remained robust throughout the period. Secondly, the high 
revenue growth of 13% (17% comparable) supported by 
backlog execution. Thirdly, the record-high achievements 
on both absolute Operational EBITA of $1.4 billion and 
Operational EBITA margin of 17.5%, up 200 basis points 
from last year, with all four business areas above 15%. This 
was supported by a strong price contribution which more 
than offset labor inflation as well as some limited cost 
inflation related to commodities, with additional support 
from operational leverage on increased volumes in 
production. And lastly, the solid cash flow from operating 
activities of $760 million. All the while we executed on 
portfolio optimization and continued to introduce leading 
new technology to help our customers become more 
sustainable and resource efficient. In my view, the quarter is 
an additional indication that we are establishing ABB's 
operational performance at a higher level. 
Order momentum was strongest in the systems- and 
project-related businesses, driven predominantly by the 
medium voltage segment and process-related industries. 
This offset some softening from last year's high order level 
in the short-cycle business, mainly evident in the residential 
construction segment and across the board in discrete 
manufacturing where customers normalize order patterns 
in the face of shortening delivery lead times. In total, the 
book-to-bill ratio was 1.06 driven by three out of four 
business areas, and we further increased order backlog. 
It was good to see our cash flow from operating activities 
improve by $378 million from last year and I expect us to 
improve cash conversion from here onwards. Over the first 
six months we have generated just over $1 billion in Cash 
flow from operating activities, which helps position us well 
for what I expect to be a good cash delivery this year.  
As announced earlier in the quarter, we experienced an IT 
security incident. I am grateful to our teams for the 
handling of the challenge and containment of the incident, 
and as a result we have had no consequential material 
financial impact in the quarter. 
Just after the end of the second quarter, we successfully 
closed the divestment of the Power Conversion division at 
around $500 million. As a result, we expect to record a non-
operational book gain estimated at approximately  
$50 million in Income from operations in the third quarter 
of 2023. With this transaction, we have completed all 
divisional portfolio divestments announced at the end of 
2020. That said, we continuously review the product groups 
within all divisions to optimize the portfolio.  
The small acquisition of Eve Systems is another example of 
our portfolio actions, this time by the Smart Buildings 
division in business area Electrification. With around 50 
employees, Eve generated approximately $20 million in 
revenues in 2022. It is a pioneer in the new Matter 
connectivity standard which enables smart home products 
to be fully interoperable, irrespective of the manufacturer 
and user operating system, via Thread wireless technology 
for consumer-facing products tailored to the retrofit 
market. 
I was pleased to see Process Automation unveil its new 
revolutionary propulsion concept initially aimed primarily at 
small- to medium-sized vessels, complementing its current 
market leading Azipod® offering for larger vessels. This 
industry-first electric propulsion concept ABB Dynafin™ 
mimics the movements of a whale tail for ultimate 
efficiency and emissions avoidance as it is set to reduce 
propulsion energy consumption by up to 22% compared to 
conventional shaftlines. The first commercial prototype is 
expected to be available in 2025. 
 
 
Björn Rosengren 
CEO 
 
 
 
 
 
 
In the third quarter of 2023, we anticipate a low double-
digit comparable revenue growth and the Operational 
EBITA margin to be slightly up from the 16.6% reported in 
the third quarter last year. 
In full-year 2023, despite current market uncertainty, we 
anticipate comparable revenue growth to be at least 10% 
and we expect Operational EBITA margin to be above 16%. 
 
 
 
CEO summary 
 
Outlook

===== SIDA 3 =====

AB B  IN TE RIM RE P ORT  I Q2  20 23  3 
 
Order intake declined by 2% (up 2% comparable) year-on-
year, hampered by changes in exchange rates and in the 
portfolio, while the comparable orders increased from last 
year's high base. 
The strongest order momentum was recorded in the 
systems- and project-related business, linked to the 
medium voltage customer offering. The short-cycle 
business softened somewhat from last year's high level, 
impacted by inventory adjustments and normalizing order 
patterns under the presumption of further shortening 
delivery lead times. Two out of four business areas 
recorded single digit order growth, with Process 
Automation declining due to portfolio changes and 
Robotics and Discrete Automation down from last year's 
level which benefited from pre-buys in a period of 
significant component shortages. 
Order intake increased in the Americas by 5% (6% 
comparable), supported by mid-single digit growth in the 
United States. Portfolio changes weighed on the year-on-
year development in Europe while a low comparable 
growth was recorded for a total decline of 1% (up 1% 
comparable) despite declines in key countries like 
Germany and Italy. Asia, Middle East and Africa declined 
by 10% (1% comparable) as the positive development in 
countries like India and Saudi Arabia did not quite offset 
declines in other countries such as China with a drop of 
15% (9% comparable).  
Automotive remained broadly stable while the general 
industry and consumer-related robotics segments 
declined. 
In transport & infrastructure, there were positive 
developments in marine & ports and renewables. 
In buildings there was weakness in all three regions in 
residential-related demand. In the commercial 
construction segment weakness was noted in China and 
Germany, while demand was solid in the US.  
Demand in the process-related business was strong 
across the board, with particular strength in oil & gas, and 
it held up well also for ports, refining, petrochemicals and 
the energy-related low carbon segments. 
Revenues increased by 13% (17% comparable) to 
$8,163 million and benefitted primarily from increased 
volumes through execution of the order backlog, 
combined with a robust price contribution in the mid-
single digit range. These benefits more than offset the 
adverse impacts from changes in exchange rates and 
portfolio changes. Revenues increased in all business 
areas, supported by comparable growth in virtually all 
divisions. 
 
 
Orders and revenues  
 
-16%
-8%
0%
8%
16%
24%
32%
5’500
6’500
7’500
8’500
9’500
2021 2022 2023
Orders Comparable growth %
Orders
$ in millions
 
0%
4%
8%
12%
16%
20%
24%
6’000
6’500
7’000
7’500
8’000
8’500
2021 2022 2023
Revenues Comparable growth %
Revenues
$ in millions
Growth 
  
 Q2 Q2 
Change year-on-year Orders Revenues 
Comparable 2% 17% 
FX -2% -1% 
Portfolio changes -2% -3% 
Total -2% 13% 
 
Orders by region 
($ in millions, 
unless otherwise 
indicated) 
  CHANGE 
Q2 2023 Q2 2022 US$ Comparable 
Europe 2,931 2,958 -1% 1% 
The Americas 3,209 3,050 5% 6% 
Asia, Middle East 
and Africa 2,527 2,799 -10% -1% 
ABB Group 8,667 8,807 -2% 2% 
 
Revenues by region 
($ in millions, 
unless otherwise 
indicated) 
  CHANGE 
Q2 2023 Q2 2022 US$ Comparable 
Europe 2,935 2,508 17% 20% 
The Americas 2,815 2,397 17% 19% 
Asia, Middle East 
and Africa 2,413 2,346 3% 13% 
ABB Group 8,163 7,251 13% 17%

===== SIDA 4 =====

AB B  IN TE RIM RE P ORT  I Q2  20 23  4 
 
Gross profit 
Gross profit increased strongly by 26% (28% constant 
currency) to $2,888 million, supported by a significant gross 
margin improvement of 380 basis points to 35.4%. Gross 
margin improved in all business areas, with three showing 
significant increases.    
Income from operations 
Income from operations amounted to $1,298 million and more 
than doubled year-on-year, and margin on Income from 
operations reached 15.9%. Earnings were mainly supported by 
the improved operational performance as well as by lower 
adverse impacts from commodity timing differences. Some 
additional tailwind to the strong year-on-year improvement 
was due to last year's period being weighed down by non-
operational items, including approximately $250 million 
triggered by the exits of a legacy project and the Russia 
business.  
Operational EBITA 
Operational EBITA increased by 25% (26% constant currency) 
year-on-year to $1,425 million and the margin was up by 200 
basis points to 17.5%. A key driver for the increased result was 
the positive price development in all business areas, which 
more than offset labor inflation as well as some limited cost 
inflation related to commodities. Additional support was 
provided by higher volume output triggered by execution of 
the order backlog. Selling, general and administrative expenses 
declined in relation to revenues to 17.0%, from 18.2% last year. 
Operational EBITA in Corporate and Other amounted to -$143 
million, of which -$67 million related to the E-mobility business, 
hampered by some inventory related provisions as well as 
technology investments triggered by a shift back to a more 
focused product strategy to secure a continued leading market 
position. 
Net finance expenses 
Net finance expense was $25 million and remained largely 
stable compared with last year. 
Income tax 
Income tax expense was $349 million with an effective tax rate 
of 27.2%. 
Net income and earnings per share 
Net income attributable to ABB was $906 million and more than 
doubled from last year driven by improved operational 
performance and lower non-operational items. This resulted in 
basic earnings per share of $0.49, up from $0.20 last year.
 
 
Earnings 
 
2021 2022 2023
Basic EPS
$ per share
1.40
1.30
0.50
0.40
0.30
0.20
0.00
‡
1.50
‡
0.60
0.70
0.10
 
0%
5%
10%
15%
20%
2021 2022 2023
Operational EBITA
Income from operations
Operational EBITA margin %
Income from operations & Operational EBITA
$ in millions
3,000 
1,500 
1,000 
500 
0 
‡ ‡
 
25%
27%
29%
31%
33%
35%
37%
0
500
1’000 
1’500 
2’000 
2’500 
3’000 
2021 2022 2023
Gross profit Gross margin (%)
Gross profit & Gross margin
$ in millions
 
 
 
Operational EBITA 
  
   
($ millions) Q2 2023 Q2 2022 
Corporate and Other   
E-mobility (67) (6) 
Corporate costs, intersegment 
eliminations and other1 (76) (13) 
Total (143) (19) 
1 Majority of which relates to underlying corporate

===== SIDA 5 =====

AB B  IN TE RIM RE P ORT  I Q2  20 23  5  
 
Net working capital 
Net working capital amounted to $4,585 million, 
increasing year-on-year from $3,663 million and 
sequentially from $4,164 million. The sequential increase 
was driven mainly by higher receivables triggered by 
high revenue growth and higher inventories to support a 
positive book-to-bill ratio. Net working capital as a 
percentage of revenues1 was 14.7%, up sequentially 
from 13.9%. 
Capital expenditures 
Purchases of property, plant and equipment and 
intangible assets amounted to $180 million.  
Net debt 
Net debt1 amounted to $4,165 million at the end of the 
quarter and decreased from $4,235 million year-on-year, 
and increased from $3,826 million sequentially. The 
sequential net increase was mainly driven by cash 
payments related to the dividend and the ongoing share 
buyback program. 
Cash flows 
Cash flow from operating activities was $760 million and 
increased year-on-year from $382 million. This was driven 
by improvements in the Electrification and Motion business 
areas on the back of higher earnings and a lower build-up of 
net working capital, year-on-year, mainly related to 
inventories.  
Share buyback program 
A share buyback program of up to $1 billion was launched 
on April 3, 2023. During the second quarter, 5,778,691 shares 
were repurchased on the second trading line for 
approximately $212 million. ABB’s total number of issued 
shares, including shares held in treasury, amounts to 
1,882,002,575. 
 
 
 
Balance sheet & Cash flow 
 
-8’500
-5’500
-2’500
500
2021 2022 2023
Net Cash (Net Debt) position
$ in millions
 
0%
100%
200%
300%
400%
2021 2022 2023
Free cash flow conversion to net income¹, R12M
($ millions,  
unless otherwise indicated) 
Jun. 30 
2023 
Jun. 30 
2022 
Dec. 31 
2022 
Short term debt and current 
maturities of long-term debt 3,849  2,830  2,535  
Long-term debt 4,451  5,086  5,143  
Total debt 8,300  7,916  7,678  
Cash & equivalents 2,923  2,412  4,156  
Restricted cash - current 19  23  18  
Marketable securities and  
short-term investments 1,193  945  725  
Restricted cash - non-current – 301  – 
Cash and marketable securities 4,135  3,681  4,899  
Net debt (cash)* 4,165  4,235  2,779  
     
Net debt (cash)* to EBITDA ratio 0.8  0.7  0.7  
Net debt (cash)* to Equity ratio 0.31  0.34  0.21  
* At Jun. 30, 2023, Jun. 30, 2022 and Dec. 31, 2022, net debt(cash) excludes net pension 
(assets)/liabilities of $(328) million $(71) million and $(276) million, respectively. 
 
 
-1’000
0
1’000
2’000
2021 2022 2023
Cash flow from operating activities
$ in millions

===== SIDA 6 =====

AB B  IN TE RIM RE P ORT  I Q2  20 23  6 
 
Orders and revenues 
Customer activity was yet again at a high level. At $3,960 
million, orders increased by 1% (3% comparable), up from 
the high base last year. 
• Order momentum was strongest in the systems-related 
offering often linked to the medium voltage segment 
which supported a strong order growth in the 
Distribution Solutions division. Overall demand 
remained firm in most segments and was particularly 
strong in segments like data centers and oil & gas. 
Weakness was noted in the buildings segment where 
residential construction declined in all regions. Some 
weakness was recorded in commercial construction in 
China and Germany, while the US remained broadly 
stable. 
 
• High order activity in the Americas resulted in regional 
growth of 8% (8% comparable), supported by a strong 
increase in the United States of 6% (6% comparable), 
resulting in one of the strongest quarters on record. 
Orders in Asia, Middle East and Africa declined by 3% 
(up 5% comparable) with the comparable demand 
decline in China more than offset by strength in 
markets such as India. Europe declined by 4% (6% 
comparable) hampered mainly by a weak residential 
construction market in Germany. 
 
 
• Revenues improved by 9% (11% comparable) to $3,735 
million with double-digit growth in all divisions except 
Smart Buildings and Installation Products due mainly to 
the adverse impact of residential construction. 
Increased volumes combined with strong price 
development, contributed more or less equally to 
comparable growth. 
 
Profit 
The second quarter was an all-time-high period for both 
absolute Operational EBITA of $787 million and the Operational 
EBITA margin of 21.1%, supported by a significant gross margin 
improvement. Profitability improved in all but one division, 
with the strongest improvement recorded in Distribution 
Solutions which is reaping the rewards of order backlog 
execution and structural profitability efforts. 
• Positive price impact more than offset labor inflation, and 
the margin was additionally supported by a reduction in raw 
materials and freight costs, year-on-year. 
• Higher volume output in production supported operational 
leverage for an improved Operational EBITA margin. 
 
— 
Electrification 
 
 
10’000
12’000
14’000
16’000
2’500 
3’000 
3’500 
4’000 
4’500 
2021 2022 2023
Orders
Revenues
Orders 12M rolling
Orders and Revenues
$ in millions
12M $ in 
millions
 
0%
5%
10%
15%
20%
25%
0
150
300
450
600
750
900
2021 2022 2023
Operational EBITA
Income from operations
Operational EBITA margin %
Income from operations & Operational EBITA
$ in millions
   CHANGE   CHANGE 
($ millions, unless otherwise indicated) Q2 2023 Q2 2022 US$ Comparable H1 2023 H1 2022 US$ Comparable 
Orders 3,960 3,913 1% 3% 8,101 8,025 1% 4% 
Order backlog 7,298 6,194 18% 19% 7,298 6,194 18% 19% 
Revenues 3,735 3,414 9% 11% 7,325 6,650 10% 14% 
Operational EBITA 787 605 30%  1,464 1,117 31%  
as % of operational revenues 21.1% 17.6% +3.5 pts  20.0% 16.8% +3.2 pts  
Cash flow from operating activities 697 456 53%  1,092 543 101%  
No. of employees (FTE equiv.) 51,800 50,200 3%      
 
Growth 
  
 Q2 Q2 
Change year-on-year Orders Revenues 
Comparable 3% 11% 
FX -2% -2% 
Portfolio changes 0% 0% 
Total 1% 9%

===== SIDA 7 =====

AB B  IN TE RIM RE P ORT  I Q2  20 23  7 
 
Orders and revenues 
Strong momentum in the systems-related operations 
supported the business area order increase of 3% (3% 
comparable) to $2,137 million, up from the high 
comparable level last year. 
• High customer activity in the medium voltage 
operations triggered a strong order growth in the 
System Drives and Large Motors and Generators 
divisions as well as in the tightly linked Service 
business. This successfully offset softness in the more 
short-cycle divisions. 
• Europe was up by 8% (4% comparable) and the 
Americas was up by 4% (1% comparable) despite a 
decline in the United States. Asia, Middle East and 
Africa decreased by 3% (up 3% comparable) as the 
slight comparable decline in China was more than 
offset by strength in markets such as India.  
• Execution of the order backlog led to very strong revenue 
growth of 22% (22% comparable) to $1,981 million. 
Higher volumes were the main driver, along with the 
robust price impact triggered by activities implemented 
last year. High double-digit comparable revenue growth 
was recorded in most divisions. 
Profit  
The 51% year-on-year increase in Operational EBITA to  
$401 million, resulted in the first ever quarter with margin 
surpassing 20% at 20.4%. 
• Earnings and margins improved from last year in most 
divisions, including Large Motors and Generators that 
benefitted from ongoing focused self-help measures. As a 
result, all divisions but one recorded double-digit margins 
in the quarter. 
• Strong price contribution more than offset cost inflation 
related to labor, commodities and freight and was the main 
driver of the profitability increase from last year. 
• The backlog execution increased volume output in 
production which improved the fixed cost coverage. 
• A positive divisional mix contributed to the margin 
improvement, supported by a higher share of 
revenues generated in the drives-related operations. 
 
6’000 
6’500 
7’000 
7’500 
8’000 
8’500 
500
1’000 
1’500 
2’000 
2’500 
2021 2022 2023
Orders
Revenues
Orders 12M rolling
Orders and Revenues
$ in millions
12M $ in 
millions
 
0%
5%
10%
15%
20%
25%
2021 2022 2023
Operational EBITA
Income from operations
Operational EBITA margin %
Income from operations & Operational EBITA
$ in millions
2,400 
400 
300 
200 
100 
0 
‡‡
2,500 
— 
Motion 
   CHANGE   CHANGE 
($ millions, unless otherwise indicated) Q2 2023 Q2 2022 US$ Comparable H1 2023 H1 2022 US$ Comparable 
Orders 2,137 2,079 3% 3% 4,399 4,281 3% 5% 
Order backlog 5,322 4,568 17% 14% 5,322 4,568 17% 14% 
Revenues 1,981 1,626 22% 22% 3,921 3,198 23% 25% 
Operational EBITA 401 266 51%  767 540 42%  
as % of operational revenues 20.4% 16.4% +4 pts  19.6% 16.9% +2.7 pts  
Cash flow from operating activities 320 241 33%  469 239 96%  
No. of employees (FTE equiv.) 22,200 20,800 7%      
 
 
Growth 
  
 Q2 Q2 
Change year-on-year Orders Revenues 
Comparable 3% 22% 
FX -1% -1% 
Portfolio changes 1% 1% 
Total 3% 22%

===== SIDA 8 =====

AB B  IN TE RIM RE P ORT  I Q2  20 23  8 
 
Orders and revenues 
Customer activity remained at a high level across the 
segments, although some hampering timing-related 
effects were noted. The project pipeline in the market 
remained robust. Primarily the spin-off of Accelleron 
weighed on total growth year-on-year, which declined by 
8% (up 6% comparable) to $1,669 million. 
• Market momentum was positive across customer 
segments and especially strong in the oil & gas segment 
where the United States stood out on the positive side. 
Good developments were also noted in the ports, 
refining, petrochemicals and the energy-related low 
carbon segments.  
• Both Europe and Asia, Middle East and Africa recorded a 
positive comparable order growth which more than 
offset a small decline in the Americas, while total growth 
was weighed down primarily by the portfolio change of 
Accelleron. 
• All divisions contributed strongly to the revenue growth 
of 2% (19% comparable) to $1,553 million, with increased 
volumes being the main contributor along with 
additional support from price.  
 
Profit 
Executing the order backlog with a higher gross margin 
supported earnings growth of 7% from the same quarter last 
year, to Operational EBITA of $239 million. The Operational EBITA 
margin improved by 110 basis points to 15.4%, just exceeding the 
previous recent high. 
• Improved operational performance in business area Process 
Automation helped to more than offset the impact of the 
divestment of the Accelleron business which supported last 
year’s margin by 190 basis points.  
• Profitability improved in all divisions except for Marine & Ports 
where the mix weighed on performance due to the absence of 
the arctic marine propulsion business. The Measurement & 
Analytics division recorded the strongest margin improvement 
to clearly above the business area average on the back of good 
mix, successful business segmentation for improved 
transparency and performance actions, including price. 
 
5’500 
6’000 
6’500 
7’000 
7’500 
500
1’000 
1’500 
2’000 
2’500 
2021 2022 2023
Orders
Revenues
Orders 12M rolling
Orders and Revenues
$ in millions
12M $ in 
millions
 
0%
5%
10%
15%
20%
0
75
150
225
300
2021 2022 2023
Operational EBITA
Income from operations
Operational EBITA margin %
Income from operations & Operational EBITA
$ in millions
— 
Process Automation 
   CHANGE   CHANGE 
($ millions, unless otherwise indicated) Q2 2023 Q2 2022 US$ Comparable H1 2023 H1 2022 US$ Comparable 
Orders 1,669 1,819 -8% 6% 3,782 3,511 8% 29% 
Order backlog 6,821 6,170 11% 17% 6,821 6,170 11% 17% 
Revenues 1,553 1,529 2% 19% 2,989 3,035 -2% 17% 
Operational EBITA 239 224 7%  444 420 6%  
as % of operational revenues 15.4% 14.3% +1.1 pts  14.8% 13.7% +1.1 pts  
Cash flow from operating activities 188 193 -3%  300 253 19%  
No. of employees (FTE equiv.) 20,600 22,200 -7%      
 
 
  
 
Growth 
  
 Q2 Q2 
Change year-on-year Orders Revenues 
Comparable 6% 19% 
FX -2% -2% 
Portfolio changes -12% -15% 
Total -8% 2%

===== SIDA 9 =====

AB B  IN TE RIM RE P ORT  I Q2  20 23  9 
 
Orders and revenues 
Orders declined by 23% (22% comparable) year-on-year, 
to $850 million. Consistent with the previous quarter, 
customers normalized order patterns, adjusting to an 
environment with shorter delivery lead times as supply 
chain constraints eased compared with last year. Some 
inventory adjustments among customers put additional 
sequential pressure on orders, mainly in China. These 
impacts are expected to persist into the third quarter. 
• Orders declined at a double-digit rate in both 
divisions on the back of stable development in the 
automotive segment against declines in the other 
segments, particularly in the machine automation and 
electronics segments.  
• Customer inventory adjustments were most 
prominent in Asia, Middle East and Africa where 
orders declined by 33% (29% comparable), weighed 
down by a significant decline in China. Europe also 
dropped by 23% (24% comparable) while the 
Americas recorded an increase of 4% (4% 
comparable), supported by good momentum in 
Canada and Mexico.  
 
• Execution of the high order backlog drove the strong 
revenue growth of 26% (27% comparable), with a 
similar pattern in both divisions. While higher volumes 
were the main driver for growth, pricing also 
contributed materially on the back of last year's 
implemented actions.  
Profit 
Operational EBITA more than doubled to $141 million from 
last year’s low level when earnings were impacted by 
Covid-related shut-downs and strained supply chains. 
Improved operational performance supported the 710 
basis points increase in Operational EBITA margin, to 
15.3%, the highest level in several years. 
• Operational leverage on higher volumes in production 
was the main driver for higher earnings and margin. 
• Positive impact from earlier implemented price actions 
significantly contributed to the improved profitability. 
Pricing more than offset inflation in labor with 
additional support from lower input and freight costs. 
• Both divisions recorded margins of above 15% in the 
period. 
 
2’500 
3’000 
3’500 
4’000 
4’500 
350
600
850
1’100 
1’350 
2021 2022 2023
Orders
Revenues
Orders 12M rolling
Orders and Revenues
$ in millions
12M $ in 
millions
— 
Robotics & Discrete Automation 
   CHANGE   CHANGE 
($ millions, unless otherwise indicated) Q2 2023 Q2 2022 US$ Comparable H1 2023 H1 2022 US$ Comparable 
Orders 850 1,109 -23% -22% 1,851 2,417 -23% -21% 
Order backlog 2,657 2,728 -3% -2% 2,657 2,728 -3% -2% 
Revenues 922 732 26% 27% 1,859 1,462 27% 31% 
Operational EBITA 141 60 135%  281 109 158%  
as % of operational revenues 15.3% 8.2% +7.1 pts  15.1% 7.4% +7.7 pts  
Cash flow from operating activities 44 56 -21%  174 27 544%  
No. of employees (FTE equiv.) 10,900 10,800 1%      
 
 
Growth 
  
 Q2 Q2 
Change year-on-year Orders Revenues 
Comparable -22% 27% 
FX -1% -1% 
Portfolio changes 0% 0% 
Total -23% 26% 
 
 
0%
5%
10%
15%
20%
0
40
80
120
160
2021 2022 2023
Operational EBITA
Income from operations
Operational EBITA margin %
Income from operations & Operational EBITA
$ in millions

===== SIDA 10 =====

AB B  IN TE RIM RE P ORT  I Q2  20 23  10  
 
Quarterly highlights 
 
• ABB is collaborating with Lhyfe, a world pioneer in the 
production of renewable hydrogen, and Skyborn, a 
global leader in renewable energy, to jointly realize 
and optimize one of Europe’s most ambitious 
renewable hydrogen projects ever, SoutH2Port. 
Powered by Skyborn’s planned offshore wind farm, 
the plant in Söderhamn, Sweden, will produce around 
240 tons of hydrogen per day, equivalent to around 
1.8 million barrels of oil per annum. ABB will apply 
critical expertise to optimize the integration of the 
hydrogen and electricity production across the entire 
ecosystem including automation, electrical and digital 
technologies. 
 
• From June 17 to 25, the Special Olympics World Games 
took place in Berlin and for the first time in Germany 
where 7,000 athletes with diverse abilities from more 
than 190 countries competed in 26 sports with the 
motto #Unbeatabletogether. Around 150 ABB 
employees volunteered to support the athletes during 
the exciting and inspiring competitions. ABB Germany 
has been a supporting partner of the Special Olympics 
at the local and state levels games for 23 years. 
 
• A pilot project between ABB Robotics and US non-
profit organization Junglekeepers demonstrated the 
role Cloud technology can play in making 
reforestation faster, more efficient and scalable. 
ABB’s cobot YuMi automated planting tasks in a 
jungle laboratory in the Amazon, speeding the process 
and allowing Junglekeepers’ volunteers to focus on 
more impactful work. Through ABB RobotStudio 
Cloud technology, ABB experts simulated, refined and 
deployed the programming required for YuMi’s tasks 
in the jungle from 12,000 kms away in Sweden – 
enabling the world’s most remote robot.  
 
• ABB has won a 2023 Global Water Award in the category 
“Smart Water Project of the Year” for its collaboration 
with Wellington Water, the water services provider for 
the Wellington region of New Zealand. ABB’s state-of-
the-art instrumentation technology and variable 
frequency drives enables Wellington Water to measure 
and store data about the water flow in real time and 
delivers up to 10% in energy savings per month. 
 
• In May 2023, ABB E-mobility and Scania successfully 
undertook a first test for the development of a 
megawatt charging system, representing the next 
milestone in the development of an efficient, high 
power charging solution for heavy duty vehicles. The 
technology will enable half the charging time for heavy 
duty vehicles. Developing a solution to fast charge 
these commercial electric vehicles, which will also 
deliver significant range, is a major step towards 
increasing sales of heavy-duty vehicles that can be 
driven fossil-free. 
 
0
150
300
450
600
750
0
50
100
150
200
2021 2022 2023
Ktons of CO₂ equivalent emissions (Scope 1&2)
Ktons of CO₂ equivalent emissions (Scope 1&2), R12M
Scope 1&2
Ktons Ktons, R12M
CO2e
 
0.00
0.05
0.10
0.15
0.20
2021 2022 2023
LTIFR,  frequency/200,000 working hours
LTIFR,  frequency/200,000 working hours, R12M
Lost Time Injury Frequency Rate
LTIFR
— 
Sustainability 
 Q2 2023 Q2 2022 CHANGE 12M ROLLING 
CO₂e own operations emissions,  
Ktons scope 1 and 21,3 52 73 -28% 201 
Lost Time Injury Frequency Rate (LTIFR),  
frequency / 200,000 working hours 2 0.12 0.17 -32% 0.13 
Share of females in senior management 
positions, % 20.2 16.8 +3.4 pts 18.6 
      
1 CO₂ equivalent emissions from site, energy use, SF₆ and fleet, previous quarter 
2 Current quarter Includes all incidents reported until July 10, 2023 
3 Q2 2022 emission data was restated from 88.8 to 72.6 Ktons of CO₂e to reflect the application of green energy certificates retrospectively. 
 
Q2 outcome 
• 28% reduction of CO₂e emissions in own operations 
mainly driven by shifting to green electricity in our 
operations. 
• 32% decrease in LTIFR due to a decrease in incidents 
in absolute numbers. 
• 3.4%-points increase in share of women in senior 
management, demonstrating strong progress 
towards our target.

===== SIDA 11 =====

AB B  IN TE RIM RE P ORT  I Q2  20 23  11  
 
During Q2 2023 
 
• On April 3, ABB launched its previously announced new 
share buyback program of up to $1 billion. The 
maximum number of shares that may be repurchased 
under this new program on any given trading day is 
762,196. 
• On April 25, ABB announced its plans to delist its 
American Depositary Receipts (ADRs) from the New 
York Stock Exchange (NYSE), and ultimately to seek to 
deregister its ADRs and the underlying shares under 
the US Securities Act of 1934 (The Securities Exchange 
Act). The delisting became effective on May 23 and the 
ADR program was converted into a sponsored Level I 
ADR program, trading on the US over-the-counter 
(OTC) market. 
• On June 7, ABB announced that following the 
completion of the cancellation of 82,742,500 of its 
shares, ABB held 20,845,438 of its own shares, which 
corresponds to 1.1 percent of total share capital and 
voting rights in the company. This includes 4,269,700 
shares purchased for capital reduction. ABB’s total 
number of issued shares, including shares held in 
treasury, amounts to 1,882,002,575. 
After Q2 2023 
 
• On July 3, ABB announced the closing of the 
divestment of Power Conversion division at around 
$500 million. As a result, ABB expects to record a non-
operational book gain estimated at approximately 
$50 million in Income from operations in the third 
quarter of 2023. With this transaction, ABB has 
completed all divisional portfolio divestments 
announced at the end of 2020. 
 
The demand for ABB’s offering remained strong in the 
first six months of 2023. Weakness in the residential 
construction market and some softening in the short-
cycle business from last year's high level was offset by 
strong momentum in the long-cycle business driven 
predominantly by the medium voltage segment and 
process related industries. Orders increased in three out 
of four business areas and remained stable (up 6% 
comparable) for ABB at $18,117 million. Revenues 
supported by strong backlog execution amounted to 
$16,022 million, up by 13% (19% comparable), overall 
implying a book-to-bill of 1.13. 
Income from operations amounted to $2,496 million, up 
from $1,444 million in the first half 2022, mostly reflecting 
improved operational performance. Additionally, the 
result in the same period last year included charges 
totalling approximately $250 million triggered by the exit 
of a legacy project in non-core and the decision to exit 
Russian operations. 
Operational EBITA improved by 27% year-on-year to 
$2,702 million and the Operational EBITA margin 
increased by 200 basis points to 16.9%, significantly 
higher in all business areas compared to the same 
period last year. Performance was driven by operating 
leverage from backlog execution as well as benefits 
from successful price management, which more than 
offset cost inflation mainly related to labor. Corporate 
and Other Operational EBITA amounted to -$254 million, 
out of which -$95 million related to the E-mobility 
business, which was hampered by some inventory 
related provisions as well as technology investments 
triggered by a shift back to a more focused product 
strategy to secure a continued leading market position. 
Net finance expenses increased $17 million to 
$46 million, while non-operational pension credits 
declined by $53 million to $15 million compared to the 
same period last year, mainly due to higher interest 
rates. Income tax expense was $468 million with a tax 
rate of 19.0%, including a net benefit from the favorable 
resolution of a prior year tax matter relating to the 
divestment of the Power Grids business. 
Net income attributable to ABB was $1,942 million, up 
from $983 million year-on-year. Basic earnings per share 
was $1.04 more than doubling from the same period 
last year.  
 
Significant events 
 
First six months 2023

===== SIDA 12 =====

AB B  IN TE RIM RE P ORT  I Q2  20 23  12  
 
 
Acquisitions Company/unit Closing date Revenues, $ million1 No. of employees 
2023     
Electrification Eve Systems 1-Jun ~20 50 
Motion Siemens low voltage NEMA Motors 2-May ~60 600 
2022     
Motion PowerTech Converter business 1-Dec ~60 300 
Electrification ASKI Industrie Elektronik GmbH 3-Oct ~2 16 
Electrification Numocity Technologies Private Ltd. (majority stake)  22-Jul <1 20 
 
 
Acquisitions and divestments, last twelve months 
ABB Group Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 
EBITDA, $ in million 1,067 794 906 1,384 4,151 1,389 1,494 
Return on Capital Employed, % n.a. n.a. n.a. n.a. 16.50 n.a. n.a. 
Net debt/Equity 0.20 0.34 0.34 0.21 0.21 0.30 0.31 
Net debt/ EBITDA 12M rolling 0.4 0.7 0.7 0.7 0.7 0.9 0.8 
Net working capital, % of 12M rolling revenues  12.1% 12.8% 11.7% 11.1% 11.1% 13.9% 14.7% 
Earnings per share, basic, $ 0.31 0.20 0.19 0.61 1.30 0.56 0.49 
Earnings per share, diluted, $ 0.31 0.20 0.19 0.60 1.30 0.55 0.48 
Dividend per share, CHF n.a. n.a. n.a. n.a. 0.84 n.a. n.a. 
Share price at the end of period, CHF 1 29.12 24.57 24.90 28.06 28.06 31.37 35.18 
Share price at the end of period, $ 1 30.76 25.43 24.41 30.46 30.46 34.30 39.32 
Number of employees (FTE equivalents) 104,720 106,380 106,830 105,130 105,130 106,170 108,320 
No. of shares outstanding at end of period (in millions)  1,929 1,892 1,875 1,865 1,865 1,862 1,860 
1 Data prior to October 3, 2022, has been adjusted for the Accelleron spin-off (Source: FactSet). 
 
 
Additional figures 
Divestments Company/unit Closing date Revenues, $ million1 No. of employees 
2023     
Process Automation UK technical engineering consultancy business  1-May ~20 160 
2022     
 Hitachi Energy JV (Power Grids, 19.9% stake)  28-Dec   
 
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 2023 guidance 
($ in millions, unless otherwise stated) FY 20231 Q3 2023 
Corporate and Other Operational 
EBITA2 
~(300) ~(75) 
unchanged  
Non-operating items   
  
Acquisition-related amortization ~(220) ~(55) 
unchanged  
Restructuring and related3 ~(150) ~(40) 
unchanged  
ABB Way transformation ~(180) ~(50) 
unchanged  
 
($ in millions, unless otherwise stated) FY 2023 
Net finance expenses ~(130) 
from ~(150) 
Effective tax rate ~21% 4  
unchanged 
Capital Expenditures ~(800) 
unchanged 
  
  
  
  
 
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 costs. 
4 Includes net positive tax impact of $206 million linked to a favorable resolution of certain prior year tax matters in Q1 2023 but excludes the impact of acquisitions or 
divestments or any significant non-operational items.

===== SIDA 13 =====

AB B  IN TE RIM RE P ORT  I Q2  20 23  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,” “Earnings,” “Balance sheet & cash flow,” 
“Sustainability” and “Significant events”. These 
statements are based on current expectations, 
estimates and projections about the factors that may 
affect our future performance, including global 
economic conditions, the economic conditions of the 
regions and industries that are major markets for ABB. 
These expectations, estimates and projections are 
generally identifiable by statements containing words 
such as “anticipates,” “expects,” “estimates,” “plans,” 
“targets,” “likely” or similar expressions. However, there 
are many risks and uncertainties, many of which are 
beyond our control, that could cause our actual results 
to differ materially from the forward-looking 
information and statements
made in this press release and which could affect our 
ability to achieve any or all of our stated targets. Some 
important factors that could cause such differences 
include, among others, business risks associated with 
the volatile global economic environment and political 
conditions, costs associated with compliance activities, 
market acceptance of new products and services, 
changes in governmental regulations and currency 
exchange rates and such other factors as may be 
discussed from time to time in ABB Ltd’s filings with the 
U.S. Securities and Exchange Commission, including its 
Annual Reports on Form 20-F. Although ABB Ltd believes 
that its expectations reflected in any such forward 
looking statement are based upon reasonable 
assumptions, it can give no assurance that those 
expectations will be achieved. 
 
 
The Q2 2023 results press release and presentation 
slides are available on the ABB News Center at 
www.abb.com/news and on the Investor Relations 
homepage at www.abb.com/investorrelations.  
A conference call and webcast for analysts and investors 
is scheduled to begin today 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 
 
 
Q2 results presentation on July 20, 2023 
ABB (ABBN: SIX Swiss Ex) is a technology leader in electrification and automation, enabling a more sustainable and 
resource-efficient future. The company’s solutions connect engineering know-how and software to optimize how 
things are manufactured, moved, powered and operated. Building on more than 130 years of excellence, 
ABB’s ~105,000 employees are committed to driving innovations that accelerate industrial transformation.  
 
Financial calendar 
2023  
October 18 Q3 2023 results 
November 30 Capital Markets Day in Frosinone, Italy

===== SIDA 14 =====

1 Q2 2023 FINANCIAL INFORMATION  
 
 
 
July 20, 2023 
Q2 2023  
Financial information

===== SIDA 15 =====

2 Q2 2023 FINANCIAL INFORMATION  
 
 
 
 
— 
Financial  Information 
Contents 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
03 ─ 07 Key Figures 
 
 
08 ─ 33 Consolidated  Financial  Information  (unaudited)  
  
 
34 ─ 46 Supplemental Reconciliations and Definitions

===== SIDA 16 =====

3 Q2 2023 FINANCIAL INFORMATION  
 
— 
Key Figures 
     CHANGE 
 ($ in millions, unless otherwise indicated) Q2 2023 Q2 2022 US$ Comparable(1) 
 Orders 8,667 8,807 -2% 2% 
 Order backlog (end June) 21,938 19,477 13% 14% 
 Revenues 8,163 7,251 13% 17% 
 Gross Profit 2,888 2,290 26%  
  as % of revenues 35.4% 31.6% +3.8 pts  
 Income from operations 1,298 587 121%  
 Operational EBITA(1) 1,425 1,136 25% 26%(2) 
  as % of operational revenues(1) 17.5% 15.5% +2 pts  
 Income from continuing operations, net of tax  932 406 130%  
 Net income attributable to ABB 906 379 139%  
 Basic earnings per share ($) 0.49 0.20 145%(3)  
 Cash flow from operating activities (4) 760 382 99%  
 Cash flow from operating activities in continuing operations  759 385 97%  
 
     CHANGE 
 ($ in millions, unless otherwise indicated) H1 2023 H1 2022 US$ Comparable(1) 
 Orders 18,117 18,180 0% 6% 
 Revenues 16,022 14,216 13% 19% 
 Gross Profit 5,604 4,571 23%  
  as % of revenues 35.0% 32.2% +2.8 pts  
 Income from operations 2,496 1,444 73%  
 Operational EBITA(1) 2,702 2,133 27% 29%(2) 
  as % of operational revenues(1) 16.9% 14.9% +2 pts  
 Income from continuing operations, net of tax  1,997 1,049 90%  
 Net income attributable to ABB 1,942 983 98%  
 Basic earnings per share ($) 1.04 0.51 104%(3)  
 Cash flow from operating activities (4) 1,042 (191) n.a.  
 Cash flow from operating activities in continuing operations  1,043 (179) n.a.  
(1) For a reconciliation of non-GAAP measures see “Supplemental Reconciliations and Definitions” on page 34. 
(2) Constant currency (not adjusted for portfolio changes). 
(3) EPS growth rates are computed using unrounded amounts. 
(4) Cash flow from operating activities includes both continuing and discontinued operations.

===== SIDA 17 =====

4 Q2 2023 FINANCIAL INFORMATION  
    CHANGE 
 ($ in millions, unless otherwise indicated) Q2 2023 Q2 2022 US$ Local Comparable 
 Orders  ABB Group 8,667 8,807 -2% 0% 2% 
  Electrification 3,960 3,913 1% 3% 3% 
  Motion 2,137 2,079 3% 4% 3% 
  Process Automation 1,669 1,819 -8% -6% 6% 
  Robotics & Discrete Automation 850 1,109 -23% -22% -22% 
  Corporate and Other  264 77 
   
  Intersegment eliminations (213) (190) 
 Order backlog (end June) ABB Group 21,938 19,477 13% 13% 14% 
  Electrification 7,298 6,194 18% 19% 19% 
  Motion 5,322 4,568 17% 16% 14% 
  Process Automation 6,821 6,170 11% 12% 17% 
  Robotics & Discrete Automation 2,657 2,728 -3% -2% -2% 
  Corporate and Other    
   
  (incl. intersegment eliminations) (160) (183) 
 Revenues  ABB Group 8,163 7,251 13% 14% 17% 
  Electrification 3,735 3,414 9% 11% 11% 
  Motion 1,981 1,626 22% 23% 22% 
  Process Automation 1,553 1,529 2% 4% 19% 
  Robotics & Discrete Automation 922 732 26% 27% 27% 
  Corporate and Other  177 140 
   
  Intersegment eliminations (205) (190) 
 Income from operations ABB Group 1,298 587    
  Electrification 713 474    
  Motion 380 231    
  Process Automation 270 175    
  Robotics & Discrete Automation 119 43    
  Corporate and Other   
   
  (incl. intersegment eliminations) (184) (336) 
 Income from operations % ABB Group 15.9% 8.1%    
  Electrification 19.1% 13.9%    
  Motion 19.2% 14.2%    
  Process Automation 17.4% 11.4%    
  Robotics & Discrete Automation 12.9% 5.9%    
 Operational EBITA ABB Group 1,425 1,136 25% 26%  
  Electrification 787 605 30% 33%  
  Motion 401 266 51% 51%  
  Process Automation 239 224 7% 9%  
  Robotics & Discrete Automation 141 60 135% 141%  
  Corporate and Other(1)      
  (incl. intersegment eliminations) (143) (19)    
 Operational EBITA %  ABB Group 17.5% 15.5%    
  Electrification 21.1% 17.6%    
  Motion 20.4% 16.4%    
  Process Automation 15.4% 14.3%    
  Robotics & Discrete Automation 15.3% 8.2%    
 Cash flow from operating activities ABB Group 760 382    
  Electrification 697 456    
  Motion 320 241    
  Process Automation 188 193    
  Robotics & Discrete Automation 44 56    
  Corporate and Other       
  (incl. intersegment eliminations) (490) (561)    
  Discontinued operations 1 (3)    
 
(1) Corporate and Other at Q2 2023 and Q2 2022 includes losses of $67 million and $6 million, respectively, relating to E-mobility.

===== SIDA 18 =====

5 Q2 2023 FINANCIAL INFORMATION  
    CHANGE 
 ($ in millions, unless otherwise indicated) H1 2023 H1 2022 US$ Local Comparable 
 Orders  ABB Group 18,117 18,180 0% 3% 6% 
  Electrification 8,101 8,025 1% 4% 4% 
  Motion 4,399 4,281 3% 6% 5% 
  Process Automation 3,782 3,511 8% 12% 29% 
  Robotics & Discrete Automation 1,851 2,417 -23% -21% -21% 
  Corporate and Other 460 382    
  Intersegment eliminations (476) (436)    
 Order backlog (end June) ABB Group 21,938 19,477 13% 13% 14% 
  Electrification 7,298 6,194 18% 19% 19% 
  Motion 5,322 4,568 17% 16% 14% 
  Process Automation 6,821 6,170 11% 12% 17% 
  Robotics & Discrete Automation 2,657 2,728 -3% -2% -2% 
  Corporate and Other   
   
  Intersegment eliminations (160) (183) 
 Revenues  ABB Group 16,022 14,216 13% 16% 19% 
  Electrification 7,325 6,650 10% 14% 14% 
  Motion 3,921 3,198 23% 26% 25% 
  Process Automation 2,989 3,035 -2% 2% 17% 
  Robotics & Discrete Automation 1,859 1,462 27% 31% 31% 
  Corporate and Other 346 254 
   
  Intersegment eliminations (418) (383) 
 Income from operations ABB Group 2,496 1,444    
  Electrification 1,368 955    
  Motion 733 485    
  Process Automation 470 326    
  Robotics & Discrete Automation 234 65    
  Corporate and Other   
 
  (incl. intersegment eliminations) (309) (387) 
 Income from operations % ABB Group 15.6% 10.2%    
  Electrification 18.7% 14.4%    
  Motion 18.7% 15.2%    
  Process Automation 15.7% 10.7%    
  Robotics & Discrete Automation 12.6% 4.4%    
 Operational EBITA ABB Group 2,702 2,133 27% 29%  
  Electrification 1,464 1,117 31% 35%  
  Motion 767 540 42% 46%  
  Process Automation 444 420 6% 10%  
  Robotics & Discrete Automation 281 109 158% 172%  
  Corporate and Other(1)    
  (incl. intersegment eliminations) (254) (53)    
 Operational EBITA %  ABB Group 16.9% 14.9%    
  Electrification 20.0% 16.8%    
  Motion 19.6% 16.9%    
  Process Automation 14.8% 13.7%    
  Robotics & Discrete Automation 15.1% 7.4%    
 Cash flow from operating activities ABB Group 1,042 (191)    
  Electrification 1,092 543    
  Motion 469 239    
  Process Automation 300 253    
  Robotics & Discrete Automation 174 27    
  Corporate and Other      
  (incl. intersegment eliminations) (992) (1,241)    
  Discontinued operations (1) (12)    
 
(1) Corporate and Other at H1 2023 and H1 2022 includes losses of $95 million and $8 million, respectively, relating to E-mobility.

===== SIDA 19 =====

6 Q2 2023 FINANCIAL INFORMATION  
Operational EBITA 
     Process Robotics & Discrete 
  ABB Electrification Motion Automation Automation 
 ($ in millions, unless otherwise indicated) Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 
 Revenues 8,163 7,251 3,735 3,414 1,981 1,626 1,553 1,529 922 732 
 Foreign exchange/commodity timing           
 differences in total revenues (10) 70 2 18 (11) (4) – 32 (1) 1 
 Operational revenues 8,153 7,321 3,737 3,432 1,970 1,622 1,553 1,561 921 733 
            
 Income from operations 1,298 587 713 474 380 231 270 175 119 43 
 Acquisition-related amortization 55 59 22 28 9 7 2 1 19 19 
 Restructuring, related and            
 implementation costs(1) 13 264 4 8 1 – 2 – – 2 
 Changes in obligations related to            
 divested businesses (8) (3) 1 – – – – – – – 
 Gains and losses from sale of businesses  (26) 4 – – – 4 (26) – – – 
 Acquisition- and divestment-related            
 expenses and integration costs 26 50 12 10 8 3 (2) 36 2 2 
 Certain other non-operational items 41 65 6 20 1 – – – 1 (1) 
 Foreign exchange/commodity timing           
 differences in income from operations 26 110 29 65 2 21 (7) 12 – (5) 
 Operational EBITA 1,425 1,136 787 605 401 266 239 224 141 60 
            
 Operational EBITA margin (%) 17.5% 15.5% 21.1% 17.6% 20.4% 16.4% 15.4% 14.3% 15.3% 8.2% 
 
 
     Process Robotics & Discrete 
  ABB Electrification Motion Automation Automation 
 ($ in millions, unless otherwise indicated) H1 23 H1 22 H1 23 H1 22 H1 23 H1 22 H1 23 H1 22 H1 23 H1 22 
 Revenues 16,022 14,216 7,325 6,650 3,921 3,198 2,989 3,035 1,859 1,462 
 Foreign exchange/commodity timing           
 differences in total revenues (26) 67 (20) 8 (11) (1) 10 31 – 6 
 Operational revenues 15,996 14,283 7,305 6,658 3,910 3,197 2,999 3,066 1,859 1,468 
            
 Income from operations 2,496 1,444 1,368 955 733 485 470 326 234 65 
 Acquisition-related amortization 109 119 44 56 17 15 3 2 39 40 
 Restructuring, related and           
 implementation costs(1) 41 280 12 10 2 8 4 5 – 3 
 Changes in obligations related to            
 divested businesses (5) (17) 1 – – – – – – – 
 Gains and losses from sale of businesses  (26) 4 – – – 4 (26) – – – 
 Acquisition- and divestment-related            
 expenses and integration costs 45 109 19 28 12 8 1 69 4 3 
 Certain other non-operational items 40 99 9 23 3 – – – 3 (1) 
 Foreign exchange/commodity timing           
 differences in income from operations 2 95 11 45 – 20 (8) 18 1 (1) 
 Operational EBITA 2,702 2,133 1,464 1,117 767 540 444 420 281 109 
            
 Operational EBITA margin (%) 16.9% 14.9% 20.0% 16.8% 19.6% 16.9% 14.8% 13.7% 15.1% 7.4% 
(1) Includes impairment of certain assets.

===== SIDA 20 =====

7 Q2 2023 FINANCIAL INFORMATION  
Depreciation and Amortization  
     Process Robotics & Discrete 
  ABB Electrification Motion Automation Automation 
 ($ in millions) Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 
 Depreciation 129 136 64 65 27 26 12 16 14 15 
 Amortization 67 71 27 34 10 9 3 3 20 20 
 including total acquisition-related amortization of: 55 59 22 28 9 7 2 1 19 19 
 
 
       Process Robotics & Discrete  
  ABB Electrification Motion Automation Automation 
 ($ in millions) H1 23 H1 22 H1 23 H1 22 H1 23 H1 22 H1 23 H1 22 H1 23 H1 22 
 Depreciation 254 272 126 129 53 53 23 34 29 30 
 Amortization 133 145 54 68 20 18 5 6 40 41 
 including total acquisition-related amortization of: 109 119 44 56 17 15 3 2 39 40 
 
 
Orders received and revenues by region  
 ($ in millions, unless otherwise indicated) Orders received CHANGE Revenues CHANGE 
  
    Com-     Com- 
 Q2 23 Q2 22 US$ Local parable Q2 23 Q2 22 US$ Local parable 
 Europe 2,931 2,958 -1% -1% 1% 2,935 2,508 17% 16% 20% 
 The Americas 3,209 3,050 5% 5% 6% 2,815 2,397 17% 17% 19% 
 of which United States 2,319 2,234 4% 4% 4% 2,092 1,746 20% 20% 21% 
 Asia, Middle East and Africa 2,527 2,799 -10% -4% -1% 2,413 2,346 3% 9% 13% 
 of which China 1,194 1,409 -15% -10% -9% 1,174 1,163 1% 6% 9% 
 ABB Group 8,667 8,807 -2% 0% 2% 8,163 7,251 13% 14% 17% 
 
 
 ($ in millions, unless otherwise indicated) Orders received CHANGE Revenues CHANGE 
  
    Com-     Com- 
 H1 23 H1 22 US$ Local parable H1 23 H1 22 US$ Local parable 
 Europe 6,513 6,492 0% 3% 6% 5,807 5,026 16% 18% 21% 
 The Americas 6,194 5,947 4% 4% 6% 5,468 4,566 20% 20% 22% 
 of which United States 4,449 4,459 0% 0% 1% 4,076 3,328 22% 23% 24% 
 Asia, Middle East and Africa 5,410 5,741 -6% 2% 5% 4,747 4,624 3% 11% 15% 
 of which China 2,549 2,946 -13% -8% -6% 2,328 2,263 3% 10% 12% 
 ABB Group 18,117 18,180 0% 3% 6% 16,022 14,216 13% 16% 19%

===== SIDA 21 =====

8 Q2 2023 FINANCIAL INFORMATION  
 
 
 
 
— 
Consolidated Financial Information 
 
 
 
 ABB Ltd Consolidated Income Statements (unaudited) 
      
      
  Six months ended Three months ended 
 ($ in millions, except per share data in $) Jun. 30, 2023 Jun. 30, 2022 Jun. 30, 2023 Jun. 30, 2022 
 Sales of products 13,530 11,762 6,886 6,013 
 Sales of services and other 2,492 2,454 1,277 1,238 
 Total revenues 16,022 14,216 8,163 7,251 
 Cost of sales of products (8,946) (8,222) (4,528) (4,254) 
 Cost of services and other (1,472) (1,423) (747) (707) 
 Total cost of sales (10,418) (9,645) (5,275) (4,961) 
 Gross profit 5,604 4,571 2,888 2,290 
 Selling, general and administrative expenses  (2,727) (2,556) (1,388) (1,317) 
 Non-order related research and development expenses  (637) (572) (333) (295) 
 Other income (expense), net 256 1 131 (91) 
 Income from operations 2,496 1,444 1,298 587 
 Interest and dividend income 78 33 38 20 
 Interest and other finance expense (124) (62) (63) (40) 
 Non-operational pension (cost) credit 15 68 8 32 
 Income from continuing operations before taxes  2,465 1,483 1,281 599 
 Income tax expense (468) (434) (349) (193) 
 Income from continuing operations, net of tax  1,997 1,049 932 406 
 Loss from discontinued operations, net of tax  (9) (20) (4) (9) 
 Net income 1,988 1,029 928 397 
 Net income attributable to noncontrolling interests and      
 redeemable noncontrolling interests (46) (46) (22) (18) 
 Net income attributable to ABB 1,942 983 906 379 
      
 Amounts attributable to ABB shareholders:      
 Income from continuing operations, net of tax  1,951 1,003 910 388 
 Loss from discontinued operations, net of tax  (9) (20) (4) (9) 
 Net income 1,942 983 906 379 
      
 Basic earnings per share attributable to ABB shareholders:      
 Income from continuing operations, net of tax 1.05 0.52 0.49 0.20 
 Loss from discontinued operations, net of tax  0.00 (0.01) 0.00 0.00 
 Net income 1.04 0.51 0.49 0.20 
      
 Diluted earnings per share attributable to ABB shareholders:      
 Income from continuing operations, net of tax 1.04 0.52 0.49 0.20 
 Loss from discontinued operations, net of tax  0.00 (0.01) 0.00 0.00 
 Net income 1.04 0.51 0.48 0.20 
      
 Weighted-average number of shares outstanding (in millions) used to compute:      
 Basic earnings per share attributable to ABB shareholders  1,861 1,922 1,862 1,909 
 Diluted earnings per share attributable to ABB shareholders  1,873 1,935 1,873 1,918 
 Due to rounding, numbers presented may not add to the totals provided.     
 
     
 See Notes to the Consolidated Financial Information

===== SIDA 22 =====

9 Q2 2023 FINANCIAL INFORMATION  
      
      
      
      
      
      
      
 —     
 ABB Ltd Condensed Consolidated Statements of Comprehensive 
 Income (unaudited) 
      
      
  Six months ended Three months ended 
 ($ in millions) Jun. 30, 2023 Jun. 30, 2022 Jun. 30, 2023 Jun. 30, 2022 
 Total comprehensive income, net of tax  1,914 708 761 131 
 Total comprehensive income attributable to noncontrolling interests and      
 redeemable noncontrolling interests, net of tax  (43) (26) (13) (3) 
 Total comprehensive income attributable to ABB shareholders, net of tax  1,871 682 748 128 
 Due to rounding, numbers presented may not add to the totals provided.     
       See Notes to the Consolidated Financial Information

===== SIDA 23 =====

10 Q2 2023 FINANCIAL INFORMATION  
 —   
 ABB Ltd Consolidated Balance Sheets (unaudited)   
    
    
 ($ in millions) Jun. 30, 2023 Dec. 31, 2022 
 Cash and equivalents 2,923 4,156 
 Restricted cash 19 18 
 Marketable securities and short-term investments 1,193 725 
 Receivables, net 7,481 6,858 
 Contract assets 1,010 954 
 Inventories, net 6,448 6,028 
 Prepaid expenses 290 230 
 Other current assets 500 505 
 Current assets held for sale and in discontinued operations  628 96 
 Total current assets 20,492 19,570 
    
 Property, plant and equipment, net 3,923 3,911 
 Operating lease right-of-use assets 852 841 
 Investments in equity-accounted companies 154 130 
 Prepaid pension and other employee benefits  964 916 
 Intangible assets, net 1,257 1,406 
 Goodwill 10,420 10,511 
 Deferred taxes 1,320 1,396 
 Other non-current assets 474 467 
 Total assets 39,856 39,148 
    
 Accounts payable, trade 4,881 4,904 
 Contract liabilities 2,394 2,216 
 Short-term debt and current maturities of long-term debt 3,849 2,535 
 Current operating leases 223 220 
 Provisions for warranties 1,076 1,028 
 Other provisions 1,124 1,171 
 Other current liabilities 4,277 4,323 
 Current liabilities held for sale and in discontinued operations  207 132 
 Total current liabilities 18,031 16,529 
    
 Long-term debt 4,451 5,143 
 Non-current operating leases 652 651 
 Pension and other employee benefits 721 719 
 Deferred taxes 699 729 
 Other non-current liabilities 1,853 2,085 
 Non-current liabilities held for sale and in discontinued operations  20 20 
 Total liabilities 26,427 25,876 
    
 Commitments and contingencies   
    
 Redeemable noncontrolling interest 89 85 
    
 Stockholders’ equity:   
 Common stock, CHF 0.12 par value   
 (1,882 million and 1,965 million shares issued at June 30, 2023, and December 31, 2022, respectively) 163 171 
 Additional paid-in capital 11 141 
 Retained earnings 17,958 20,082 
 Accumulated other comprehensive loss (4,627) (4,556) 
 Treasury stock, at cost   
 (22 million and 100 million shares at June 30, 2023, and December 31, 2022, respectively) (709) (3,061) 
 Total ABB stockholders’ equity 12,796 12,777 
 Noncontrolling interests 544 410 
 Total stockholders’ equity 13,340 13,187 
 Total liabilities and stockholders’ equity 39,856 39,148 
 Due to rounding, numbers presented may not add to the totals provided.   
    
 See Notes to the Consolidated Financial Information

===== SIDA 24 =====

11 Q2 2023 FINANCIAL INFORMATION  
 —     
 ABB Ltd Consolidated Statements of Cash Flows (unaudited) 
        Six months ended Three months ended 
 ($ in millions) Jun. 30, 2023 Jun. 30, 2022 Jun. 30, 2023 Jun. 30, 2022 
 Operating activities:     
 Net income 1,988 1,029 928 397 
 Loss from discontinued operations, net of tax  9 20 4 9 
 Adjustments to reconcile net income (loss) to      
 net cash provided by (used in) operating activities:      
 Depreciation and amortization 387 417 196 207 
 Changes in fair values of investments (24) (15) (11) 9 
 Pension and other employee benefits (12) (83) (13) (37) 
 Deferred taxes 37 (148) 11 (32) 
 Loss (income) from equity-accounted companies 7 62 – 14 
 Net loss (gain) from derivatives and foreign exchange  (54) 77 (17) 105 
 Net gain from sale of property, plant and equipment  (33) (55) (7) (23) 
 Net loss (gain) from sale of businesses (26) 4 (26) 4 
 Other 92 63 65 27 
 Changes in operating assets and liabilities:     
 Trade receivables, net (667) (621) (301) (304) 
 Contract assets and liabilities 79 252 69 145 
 Inventories, net (450) (1,083) (186) (541) 
 Accounts payable, trade (2) 213 (29) 206 
 Accrued liabilities (202) (255) 122 135 
 Provisions, net 56 126 16 179 
 Income taxes payable and receivable (86) (52) 29 (66) 
 Other assets and liabilities, net (56) (130) (91) (49) 
 Net cash provided by (used in) operating activities – continuing operations 1,043 (179) 759 385 
 Net cash provided by (used in) operating activities – discontinued operations (1) (12) 1 (3) 
 Net cash provided by (used in) operating activities  1,042 (191) 760 382 
       Investing activities:     
 Purchases of investments (760) (256) (100) (128) 
 Purchases of property, plant and equipment and intangible assets  (331) (338) (180) (151) 
 Acquisition of businesses (net of cash acquired)     
 and increases in cost- and equity-accounted companies (135) (179) (116) (34) 
 Proceeds from sales of investments 176 506 156 201 
 Proceeds from maturity of investments 138 – 138 – 
 Proceeds from sales of property, plant and equipment  57 66 26 31 
 Proceeds from sales of businesses (net of transaction costs      
 and cash disposed) and cost- and equity-accounted companies 43 (13) 43 (13) 
 Net cash from settlement of foreign currency derivatives  (18) 56 (54) (10) 
 Changes in loans receivable, net 1 9 (7) (2) 
 Other investing activities 9 (17) 10 (16) 
 Net cash used in investing activities – continuing operations (820) (166) (84) (122) 
 Net cash used in investing activities – discontinued operations (21) (91) (16) (70) 
 Net cash used in investing activities (841) (257) (100) (192) 
       Financing activities:     
 Net changes in debt with original maturities of 90 days or less  (35) 1,191 679 (114) 
 Increase in debt 1,648 3,181 15 639 
 Repayment of debt (1,128) (1,483) (1,092) (1,442) 
 Delivery of shares 96 370 1 – 
 Purchase of treasury stock (476) (2,661) (202) (1,100) 
 Dividends paid (1,713) (1,698) (419) (809) 
 Dividends paid to noncontrolling shareholders (83) (76) (80) (75) 
 Proceeds from issuance of subsidiary shares 328 – (13) – 
 Other financing activities – (53) (12) (19) 
 Net cash used in financing activities – continuing operations (1,363) (1,229) (1,123) (2,920) 
 Net cash provided by financing activities – discontinued operations – – – – 
 Net cash used in financing activities (1,363) (1,229) (1,123) (2,920) 
       Effects of exchange rate changes on cash and equivalents and restricted cash  (42) (76) (37) (80) 
 Adjustment for the net change in cash and equivalents and restricted cash      
 in Assets held for sale (28) – (15) – 
 Net change in cash and equivalents and restricted cash (1,232) (1,753) (515) (2,810) 
       Cash and equivalents and restricted cash, beginning of period  4,174 4,489 3,457 5,546 
 Cash and equivalents and restricted cash, end of period  2,942 2,736 2,942 2,736 
       Supplementary disclosure of cash flow information:      
 Interest paid 108 36 60 27 
 Income taxes paid 527 638 320 298 
 Due to rounding, numbers presented may not add to the totals provided.     
 See Notes to the Consolidated Financial Information

===== SIDA 25 =====

12 Q2 2023 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, 2022 178 22 22,477 (4,088) (3,010) 15,579 378 15,957 
 Net income(1)   983   983 48 1,031 
 Foreign currency translation         
 adjustments, net of tax of $1    (392)  (392) (22) (414) 
 Effect of change in fair value of         
 available-for-sale securities,         
 net of tax of $(4)    (17)  (17)  (17) 
 Unrecognized income (expense)         
 related to pensions and other         
 postretirement plans,         
 net of tax of $37    106  106  106 
 Change in derivative instruments         
 and hedges, net of tax of $2    2  2  2 
 Changes in noncontrolling interests  (2)    (2) (13) (15) 
 Dividends to         
 noncontrolling shareholders      – (74) (74) 
 Dividends to shareholders   (1,700)   (1,700)  (1,700) 
 Cancellation of treasury shares (8) (4) (2,864)  2,876 –  – 
 Share-based payment arrangements  28    28  28 
 Purchase of treasury stock     (2,693) (2,693)  (2,693) 
 Delivery of shares  (38) (130)  538 370  370 
 Other  6    6  6 
 Balance at June 30, 2022 171 12 18,767 (4,389) (2,290) 12,271 315 12,586 
          
          
 Balance at January 1, 2023 171 141 20,082 (4,556) (3,061) 12,777 410 13,187 
 Net income(1)   1,942   1,942 47 1,989 
 Foreign currency translation         
 adjustments, net of tax of $(2)    (76)  (76) (3) (79) 
 Effect of change in fair value of         
 available-for-sale securities,         
 net of tax of $2    7  7  7 
 Unrecognized income (expense)         
 related to pensions and other         
 postretirement plans,         
 net of tax of $4    (5)  (5)  (5) 
 Change in derivative instruments         
 and hedges, net of tax of $1    3  3  3 
 Issuance of subsidiary shares  170    170 168 338 
 Other changes in         
 noncontrolling interests  (6)    (6) 4 (2) 
 Dividends to         
 noncontrolling shareholders      – (84) (84) 
 Dividends to shareholders   (1,706)   (1,706)  (1,706) 
 Cancellation of treasury shares (7) (201) (2,359)  2,567 –  – 
 Share-based payment arrangements  62    62 1 63 
 Purchase of treasury stock     (464) (464)  (464) 
 Delivery of shares  (153)   249 96  96 
 Other  (3)    (3)  (3) 
 Balance at June 30, 2023 163 11 17,958 (4,627) (709) 12,796 544 13,340 
 
(1) Amounts attributable to noncontrolling interests for the six months ended June 30, 2023 and 2022, exclude net losses of $2 million and $2 million, respectively, related to 
redeemable noncontrolling interests, which are reported in the mezzanine equity section on the Consolidated Balance Sheets. See Note 4 for details. 
 Due to rounding, numbers presented may not add to the totals provided. 
           
 See Notes to the Consolidated Financial Information

===== SIDA 26 =====

13 Q2 2023 FINANCIAL INFORMATION  
— 
Notes to the Consolidated Financial Information (unaudited) 
 
 
─ 
Note 1 
The Company and basis of presentation 
ABB Ltd and its subsidiaries (collectively, the Company) together form a technology leader in electrification and automation, enabling a more 
sustainable and resource-efficient future. The Company’s solutions connect engineering know -how and software to optimize how things are 
manufactured, moved, powered and operated. 
The Company’s Consolidated Financial Information is prepared in accordance with United States of America generally accepted accounting principles 
(U.S. GAAP) for interim financial reporting. As such, the Consolidated Financial Information does not include all the 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, 2022. 
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 used to record expected costs for employee severance in connection with restructuring programs,  
• 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 p ension plan assets, 
• assumptions used in determining inventory obsolescence and net realizable value,  
• growth rates, discount rates and other assumptions used to determine impairment of long -lived assets and in testing goodwill for 
impairment, 
• estimates and assumptions used in determining the fair values of assets and liabilities assumed in business combinations,  and 
• estimates and assumptions used in determining the initial fair value of retained noncontrolling interest s and certain obligations in connection 
with divestments. 
The actual results and outcomes may differ from the Company’s estimates and assumptions.  
A portion of the Company’s activities (primarily long-term construction activities) has an operating cycle that exceeds one year. For classifi cation of 
current assets and liabilities related to such activities, the Company elected to use the duration of the individual contract s as its operating cycle. 
Accordingly, there are accounts receivable, contract assets, inventories and provisions related  to these contracts which will not be realized within one 
year that have been classified as current.  
Basis of presentation 
In the opinion of management, the unaudited Consolidated Financial Information contains all necessary adjustments to present fairly the financial 
position, results of operations and cash flows for the reported periods. Management consi ders 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. These changes relate primarily to the reorganization of the Company’s operating segments (see Note 17  for details).

===== SIDA 27 =====

14 Q2 2023 FINANCIAL INFORMATION  
─ 
Note 2 
Recent accounting pronouncements 
Applicable for current periods 
Disclosure about supplier finance program obligations  
In January 2023, the Company adopted an accounting standard update which requires entities to disclose information related to supplier finan ce 
programs. Under the update, the Company is required to disclose annually (i) the key terms of the program, (ii) the amount of the supplier finance 
obligations outstanding and where those obligations are presented in the balance sheet at the reporting date, and (iii)  a rollforward of the supplier 
finance obligation program within the reporting period. The Company  adopted this update retrospectively for all in-scope transactions, with the 
exception of the rollforward disclosures, which will be adopted prospectively for annual periods beginning January  1, 2024. Apart from the additional 
disclosure requirements, this update does not have a significant impact on the Company’s consolidated financial statements.  
The total outstanding supplier finance obligation included in “Accounts payable, trade” in the Consolidated Balance Sheets at June 30, 2023 and 
December 31, 2022, amounted to $457 million and $477 million, respectively. The Company’s payment terms related to suppliers’ finance programs are 
not impacted by the suppliers’ decisions to sell amounts under the arrangements and are typically consistent with local m arket practices. 
Facilitation of the effects of reference rate reform on financial reporting  
In January 2023, the Company adopted an accounting standard update which provides temporary optional expedients and exce ptions to the current 
guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected marke t transition from the 
London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The Company is applying this standard update 
as relevant contract and hedge accounting relationship modifications are m ade during the course of the transition period ending December  31, 2024. 
This update does not have a significant impact on the Company’s consolidated financial statements.  
 
 
─ 
Note 3 
Discontinued operations and assets held for sale 
Divestment of the Power Grids business 
In 2020, the Company completed the divestment of its Power Grids business to Hitachi Ltd (Hitachi). Upon closing of the sale, the Company entered into 
various transition services agreements (TSAs), some of which continue to have services performed . Pursuant to these TSAs, the Company and Hitachi 
Energy provide to each other, on a transitional basis, various services. The services provided by the Company primarily include finance, information 
technology, human resources and certain other administrative services. The TSAs were to be performed for up to 3 years with the possibility to agree on 
extensions on an exceptional basis for business-critical services which are reasonably necessary to avoid a material adverse impact on the business.  The 
TSA for information technology services was extended until mid -2025. In the six and three months ended June 30, 2023, the Company has recognized 
within its continuing operations, general and administrative expense s incurred to perform the TSAs, offset by $76 million and $39 million in TSA-related 
income for such services that is reported in Other income (expense), net. In the six and three months ended June 30, 2022, the Company has recognized 
within its continuing operations, general and administrative expenses incurred to perform the TSA s, offset by $76 million and $38 million in TSA-related 
income for such services that is reported in Other income  (expense), net. 
Discontinued operations 
As a result of the sale of the Power Grids business, substantially all Power Grids-related assets and liabilities have been sold. As this divestment 
represented a strategic shift that would have a major effect on the Company’s operations and financial results, th e results of operations for this 
business are presented as discontinued operations and the assets and liabilities are presented as held for sale and in discontinued operations.  Certain 
of the business contracts in the Power Grids business continue to be executed by subsidiaries of the Company for the benefit/ risk of Hitachi Energy. 
Assets and liabilities relating to, as well as the net financial results of, these contracts will continue to be included in discontinue d operations until they 
have been completed or otherwise transferred to Hitachi Energy. The remaining business activities of the Power Grids business being executed by the 
Company is not significant. 
In addition, the Company also has retained obligations (primarily for environmental and taxes) related to other businesses di sposed or otherwise exited 
that qualified as discontinued operations at the time of their disposal. Changes to these retained obligations are also included in Loss from 
discontinued operations, net of tax. 
At June 30, 2023, the balances reported as held for sale and in discontinued operations pertain ing to the activities of the Power Grids business and other 
obligations will remain with the Company until such time as the obligation s are settled or the activities are fully wound down . These balances amounted 
to $74 million of current assets, $97 million of current liabilities and $20 million of non-current liabilities. 
Planned business divestments classified as held for sale  
The Company classifies its long-lived assets or disposal groups to be sold as held for sale in the period in which all of the held for sale criteria are met.  
The Company initially measures a long-lived asset or disposal group that is classified as held for sale at the lower of its carrying value or fair value less 
any costs to sell. Any resulting loss is recognized in the period in which the held for sale criteria are met , while gains are not recognized on the sale of a 
long-lived asset or disposal group until the date of sale. The Company assesses the fair value of a long -lived asset or disposal group less any costs to sell 
at each reporting period and until the asset or disposal group is no longer classified as held for sale.  
In January 2023, the Company entered into an agreement to divest its Power Conversion Division to AcBel Polytech Inc . for cash proceeds of $505 million. 
The Power Conversion Division is part of the Company’s Electrification operating segment and the divestment, subject to regulatory approvals, is 
expected to be completed in the second half of 2023.

===== SIDA 28 =====

15 Q2 2023 FINANCIAL INFORMATION  
As this planned divestment does not qualify as a discontinued operation, the results of operations for this business are included in the Comp any’s 
continuing operations for all periods presented. The assets and liabilities of this business are shown as assets and liabilit ies held for sale in the 
Company’s Consolidated Balance Sheet at June 30, 2023. The carrying amounts of the major classes of assets and liabilities held for sale relating to this 
planned divestment are as follows: 
 ($ in millions)  June 30, 2023 
 Assets   
 Receivables, net  97 
 Inventories, net  104 
 Property, plant and equipment, net  44 
 Other intangible assets, net  74 
 Goodwill  175 
 Other assets  60 
 Current assets held for sale  554 
    
 Liabilities   
 Accounts payable, trade  48 
 Other liabilities  62 
 Current liabilities held for sale  110 
 
In the six and three months ended June 30, 2023, Income from continuing operations before taxes includes income of $ 30 million and $13 million, 
respectively, from the Power Conversion Division. In the six and three months ended June  30, 2022, Income from continuing operations before taxes 
includes income of $12 million and $11 million, respectively, from this Division.  
Subsequent events 
On July 3, 2023, the Company completed the divestment of its Power Conversion Division to AcBel Polytech Inc. 
 
 
─ 
Note 4 
Acquisitions and equity-accounted companies 
Acquisition of controlling interests 
Acquisitions of controlling interests were as follows: 
  Six months ended June 30, Three months ended June 30, 
 ($ in millions, except number of acquired businesses)  2023 2022 2023 2022 
 Purchase price for acquisitions (net of cash acquired) (1) 114 138 113 - 
 Aggregate excess of purchase price over     
 fair value of net assets acquired(2) 54 191 50 - 
 Number of acquired businesses  2 1 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” amounts  in the 
six months ended June 30, 2022, relate primarily to the acquisition of InCharge Energy, Inc. (In-Charge). 
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 January 26, 2022, the Company increased its ownership in In -Charge to a 60 percent controlling interest through a stock purchase agreement. 
In-Charge is headquartered in Santa Monica, USA, and is a provider of turn -key commercial electric vehicle charging hardware and software solutions. 
The resulting cash outflows for the Company amounted to $13 4 million (net of cash acquired of $4 million). The acquisition expands the market 
presence of the E-mobility operating segment, particularly in the North American market. In connection with the acquisition, the Company’s pre-existing 
13.2 percent ownership of In-Charge was revalued to fair value and a gain o f $32 million was recorded in “Other income (expense), net” in the six months 
ended June 30, 2022. The Company entered into an agreement with the remaining noncontr olling shareholders allowing either party to put or call the 
remaining 40 percent of the shares until 2027. The amount for which either party can exercise their option is dependent on a formula based on revenues 
and thus, the amount is subject to change. As a result of this agreement, the noncontrolling  interest is classified as Redeemable noncontrolling interest 
(i.e. mezzanine equity) in the Consolidated Balance Sheets and was initially recognized at fair value. 
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 acquisiti ons 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.  
Investments in equity-accounted companies 
In connection with the divestment of its Power Grids business to Hitachi  in 2020 (see Note 3), the Company initially retained a 19.9 percent interest in the 
business until December 2022, when the retained investment was sold to Hitachi. During the Company’s period of ownership of t he retained 
19.9 percent interest, based on its continuing involvement with the Power Grids business, including the membership in its governing board of directors, 
the Company concluded that it had significant influence over Hitachi Energy. As a result, the investment was accounted for using the equity method  
through to the date of its sale.

===== SIDA 29 =====

16 Q2 2023 FINANCIAL INFORMATION  
In the six and three months ended June 30, 2023 and 2022, the Company recorded its share of the earnings of investees accounted for under the equity 
method of accounting in Other income (expense), net, as follows:  
  Six months ended June 30, Three months ended June 30, 
 ($ in millions) 2023 2022 2023 2022 
 Income (loss) from equity-accounted companies, net of taxes  (7) (10) – 1 
 Basis difference amortization (net of deferred income tax benefit)  – (52) – (15) 
 Income (loss) from equity-accounted companies (7) (62) – (14) 
 
 
─ 
Note 5 
Cash and equivalents, marketable securities and short-term investments 
Cash and equivalents, marketable securities and short-term investments consisted of the following:  
   June 30, 2023 
       Cash and Marketable 
    Gross Gross  equivalents securities 
    unrealized unrealized  and restricted and short-term 
 ($ in millions) Cost basis gains losses Fair value cash investments 
 Changes in fair value        
 recorded in net income       
 Cash 1,743   1,743 1,743  
 Time deposits 1,541   1,541 1,199 342 
 Equity securities 622 16  638  638 
  3,906 16 – 3,922 2,942 980 
 Changes in fair value recorded       
 in other comprehensive income       
 Debt securities available-for-sale:       
  U.S. government obligations 225 1 (13) 213  213 
  225 1 (13) 213 – 213 
 Total 4,131 17 (13) 4,135 2,942 1,193 
 Of which:        
  Restricted cash, current     19  
         
 
   December 31, 2022 
       Cash and Marketable 
    Gross Gross  equivalents securities 
    unrealized unrealized  and restricted and short-term 
 ($ in millions) Cost basis gains losses Fair value cash investments 
 Changes in fair value       
 recorded in net income       
 Cash 1,715   1,715 1,715  
 Time deposits 2,459   2,459 2,459  
 Equity securities 345 10  355  355 
  4,519 10 – 4,529 4,174 355 
 Changes in fair value recorded       
 in other comprehensive income       
 Debt securities available-for-sale:       
  U.S. government obligations 269 1 (15) 255  255 
  Other government obligations 58   58  58 
  Corporate 64  (7) 57  57 
  391 1 (22) 370 – 370 
 Total 4,910 11 (22) 4,899 4,174 725 
 Of which:       
  Restricted cash, current     18

===== SIDA 30 =====

17 Q2 2023 FINANCIAL INFORMATION  
─ 
Note 6 
Derivative financial instruments 
The Company is exposed to certain currency, commodity, interest rate and equity risks arising fr om 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 require 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 hedge 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 foreign 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 a s fair value hedges. In addition, from time to time, the 
Company uses instruments such as interest rate swaps, interest rate futures, bond futures or forward rate agreements to manag e interest rate risk 
arising from the Company’s balance sheet structure but does not designate such instruments as hedges.  
Equity risk 
The Company is exposed to fluctuations in the fair value of its warrant appreciation rights (WARs) issued under its management incentive plan. A  WAR 
gives its holder the right to receive cash equal to the market price of an equivalent listed warrant on the date of exercise.  To eliminate such risk, the 
Company has purchased cash-settled call options, indexed to the shares of the Company, which entitle the Company to receive amounts equivalent to 
its obligations under the outstanding WARs. 
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 accounting.  
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) June 30, 2023 December 31, 2022 June 30, 2022 
 Foreign exchange contracts 14,256 13,509 14,470 
 Embedded foreign exchange derivatives 1,374 933 850 
 Cross-currency interest rate swaps 868 855 833 
 Interest rate contracts 2,198 2,830 3,049 
 
Derivative commodity contracts 
The Company uses derivatives to hedge its direct or indirect exposure to the movement in the prices of commodities which are primarily copper, silver, 
steel and aluminum. The following table shows the notional amounts of outstanding derivatives (whether designated as hedges or not), on a net basis, 
to reflect the Company’s requirements for these commodities: 
 Type of derivative Unit Total notional amounts at 
   June 30, 2023 December 31, 2022 June 30, 2022 
 Copper swaps metric tonnes 32,894 29,281 42,961 
 Silver swaps ounces 1,726,172 2,012,213 2,844,285 
 Steel swaps metric tonnes 11,158 – – 
 Aluminum swaps metric tonnes 5,950 6,825 7,350 
 
Equity derivatives 
At June 30, 2023, December 31, 2022, and June 30, 2022, the Company held 3 million, 8 million and 9 million cash-settled call options indexed to ABB Ltd 
shares (conversion ratio 5:1) with a total fair value of $ 12 million, $15 million and $12 million, respectively.  
Cash flow hedges  
As noted above, the Company mainly uses forward foreign exchange contracts to manage the foreign exchange risk of its operati ons, commodity swaps 
to manage its commodity risks and cash-settled call options to hedge its WAR liabilities. The Company applies cash flow hedge accounting in only 
limited cases. In these cases, the effective portion of the changes in their fair value is recorded in “Accumulated other comprehensive loss” and 
subsequently reclassified into earnings in the same line item and in the same period as the underlying  hedged transaction affects earnings. For the six 
and three months ended June 30, 2023 and 2022, 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 “Interes t and other finance 
expense”.

===== SIDA 31 =====

18 Q2 2023 FINANCIAL INFORMATION  
The effect of derivative instruments, designated and qualifying as fair value hedges, on the Consolidated Income Statements w as as follows: 
   Six months ended June 30, Three months ended June 30, 
 ($ in millions)  2023 2022 2023 2022 
 Gains (losses) recognized in Interest and other finance expense:      
 Interest rate contracts Designated as fair value hedges 18 (55) 8 (26) 
  Hedged item (18) 56 (8) 27 
 Cross-currency interest rate swaps Designated as fair value hedges (10) (94) 1 (49) 
  Hedged item – 90 (2) 46 
 
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 econo mic hedges used for risk 
management purposes. Gains and losses from changes in the fair values of such derivatives are recognized in the same line in the income statement as 
the economically hedged transaction. 
Furthermore, under certain circumstances, the Company is required to split and account separately for foreign currency derivatives that are embedd ed 
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  Six months ended June 30, Three months ended June 30, 
 ($ in millions) Location 2023 2022 2023 2022 
 Foreign exchange contracts Total revenues 5 (119) (6) (123) 
  Total cost of sales (12) 34 (11) 40 
  SG&A expenses(1) 14 23 8 15 
  Non-order related research      
  and development (1) 1 (1) – 
  Interest and other finance expense (62) (54) (104) (76) 
 Embedded foreign exchange Total revenues 45 5 38 7 
 contracts Total cost of sales (1) (2) – (3) 
 Commodity contracts Total cost of sales (15) (51) (26) (86) 
 Other Interest and other finance expense 1 3 1 2 
 Total  (26) (160) (101) (224) 
(1) SG&A expenses represent “Selling, general and  administrative expenses”.  
The fair values of derivatives included in the Consolidated Balance Sheets were as follows:  
  June 30, 2023 
  Derivative assets  Derivative liabilities 
  Current in Non-current in  Current in Non-current in 
  “Other current “Other non-current  “Other current “Other non-current 
 ($ in millions) assets” assets”  liabilities” liabilities” 
 Derivatives designated as hedging instruments:      
 Foreign exchange contracts – –  4 2 
 Interest rate contracts – –  45 – 
 Cross-currency interest rate swaps – –  – 282 
 Cash-settled call options 12 –  – – 
 Total 12 –  49 284 
       
 Derivatives not designated as hedging instruments:       
 Foreign exchange contracts 145 25  122 22 
 Commodity contracts 4 –  16 – 
 Interest rate contracts 2 –  2 – 
 Other equity contracts 10 –  – – 
 Embedded foreign exchange derivatives 36 10  15 3 
 Total 197 35  155 25 
 Total fair value 209 35  204 309

===== SIDA 32 =====

19 Q2 2023 FINANCIAL INFORMATION  
  December 31, 2022 
  Derivative assets  Derivative liabilities 
  Current in Non-current in  Current in Non-current in 
  “Other current “Other non-current  “Other current “Other non-current 
 ($ in millions) assets” assets”  liabilities” liabilities” 
 Derivatives designated as hedging instruments:      
 Foreign exchange contracts – –  4 4 
 Interest rate contracts – –  5 57 
 Cross-currency interest rate swaps – –  – 288 
 Cash-settled call options 15 –  – – 
 Total 15 –  9 349 
       
 Derivatives not designated as hedging instruments:       
 Foreign exchange contracts 140 21  80 5 
 Commodity contracts 13 –  12 – 
 Interest rate contracts 5 –  3 – 
 Embedded foreign exchange derivatives 11 6  17 13 
 Total 169 27  112 18 
 Total fair value 184 27  121 367 
 
Close-out netting agreements provide for the termination, valuation and net settlement of some or all outstanding transactions between two 
counterparties on the occurrence of one or more pre-defined trigger events. 
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 June 30, 2023, and December 31, 2022, have been presented on a gross basis.  
The Company’s netting agreements and other similar arrangements allow net settlements under ce rtain conditions. At June 30, 2023, and December 31, 
2022, information related to these offsetting arrang ements was as follows: 
 ($ in millions) June 30, 2023 
  Gross amount Derivative liabilities Cash Non-cash  
 Type of agreement or of recognized eligible for set-off collateral collateral Net asset 
 similar arrangement assets in case of default received received exposure 
 Derivatives 198 (103) – – 95 
 Total 198 (103) – – 95 
       
 ($ in millions) June 30, 2023 
  Gross amount Derivative liabilities Cash Non-cash  
 Type of agreement or   of recognized eligible for set-off collateral collateral Net liability 
 similar arrangement liabilities in case of default pledged pledged exposure 
 Derivatives 495 (103) – – 392 
 Total 495 (103) – – 392 
 
 ($ in millions) December 31, 2022 
  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 194 (96) – – 98 
 Total 194 (96) – – 98 
       
  
 ($ in millions) December 31, 2022 
  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 458 (96) – – 362 
 Total 458 (96) – – 362

===== SIDA 33 =====

20 Q2 2023 FINANCIAL INFORMATION  
─ 
Note 7 
Fair values 
The Company uses fair value measurement principles to record certain financial assets and liabilities on a recurring basis and, w hen necessary, to record 
certain non-financial assets at fair value on a non -recurring basis, as well as to determine fair value disclosures for certain financial instruments carried 
at amortized cost in the financial statements. Financial assets and liabilities recorded at fair value on a recurring basis i nclude foreign currency, 
commodity and interest rate derivatives, as well as cash-settled call options and 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 liabilities are d efined by a 
three-level hierarchy, depending on the nature of those inputs. The Company has categorized its financial assets and liabilities and non -financial assets 
measured at fair value within this hierarchy based on whether the inputs to the valuation technique are observable or unobservable. An observable inp ut 
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 signific ant, in which case the fair value measurement would be classified as 
Level 3. Assets and liabilities valued or disclosed using Level 2 inputs include investments in certain funds, certain debt s ecurities that are not 
actively traded, interest rate swaps, cross-currency interest rate swaps, commodity swaps, cash -settled call options, 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. However, for the purpose 
of determining the fair value of cash-settled call options serving as hedges of the Company’s management incentive plan, bid prices are used.  
When determining fair values based on quoted prices in an active market, the Company considers if the level of transaction activity for t he financial 
instrument has significantly decreased or would not be considered orderly. In such cases, the resulting changes in val uation techniques would be 
disclosed. If the market is considered disorderly or if quoted prices are not available, the Company is required to use anoth er 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:  
  June 30, 2023 
 ($ in millions) Level 1 Level 2 Level 3 Total fair value 
 Assets     
 Securities in “Marketable securities and short-term investments”:     
 Equity securities – 638 – 638 
 Debt securities—U.S. government obligations 213 – – 213 
 Derivative assets—current in “Other current assets”  – 209 – 209 
 Derivative assets—non-current in “Other non-current assets” – 35 – 35 
 Total 213 882 – 1,095 
      
 Liabilities     
 Derivative liabilities—current in “Other current liabilities”  – 204 – 204 
 Derivative liabilities—non-current in “Other non-current liabilities” – 309 – 309 
 Total – 513 – 513

===== SIDA 34 =====

21 Q2 2023 FINANCIAL INFORMATION  
  December 31, 2022 
 ($ in millions) Level 1 Level 2 Level 3 Total fair value 
 Assets     
 Securities in “Marketable securities and short-term investments”:     
 Equity securities – 355 – 355 
 Debt securities—U.S. government obligations 255 – – 255 
 Debt securities—European government obligations – 58 – 58 
 Debt securities—Corporate – 57 – 57 
 Derivative assets—current in “Other current assets”  – 184 – 184 
 Derivative assets—non-current in “Other non-current assets” – 27 – 27 
 Total 255 681 – 936 
      
 Liabilities     
 Derivative liabilities—current in “Other current liabilities”  – 121 – 121 
 Derivative liabilities—non-current in “Other non-current liabilities” – 367 – 367 
 Total – 488 – 488 
 
The Company uses the following methods and assumptions in estimating fair values of financial assets and liabilities measured at fair value on a 
recurring basis: 
• Securities in “Marketable securities and short-term investments”: If quoted market prices in active markets for identical assets are available, 
these are considered Level 1 inputs; however, when markets are not active, these inputs are considered Level 2. If such quoted market prices 
are not available, fair value is determined using market prices for similar assets or present value techniques, applying an appropriate risk -free 
interest rate adjusted for non-performance risk. The inputs used in present value techniques are observable and fall into the Level  2 category.  
 
• Derivatives: The fair values of derivative instruments are determined using quoted prices of identical instruments from an active market , if 
available (Level 1 inputs). If quoted prices are not available, price quotes for similar instruments, appropriately adjusted, or present value  
techniques, based on available market data, or option pricing models are used. Cash -settled call options hedging the Company’s WAR liability 
are valued based on bid prices of the equivalent listed warrant. The fair values obtained using price quotes for similar inst ruments 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 six and three months ended June 30, 2023 and 2022.  
Disclosure about financial instruments carried on a cost basis  
The fair values of financial instruments carried on a cost basis were as follows:  
  June 30, 2023 
 ($ in millions) Carrying value  Level 1 Level 2 Level 3 Total fair value 
 Assets       
 Cash and equivalents (excluding securities with original        
 maturities up to 3 months):       
 Cash 1,724  1,724 – – 1,724 
 Time deposits 1,199  – 1,199 – 1,199 
 Restricted cash 19  19 – – 19 
 Marketable securities and short-term investments       
 (excluding securities):       
 Time deposits 342  – 342 – 342 
        
 Liabilities       
 Short-term debt and current maturities of long-term debt       
 (excluding finance lease obligations) 3,821  2,412 1,409 – 3,821 
 Long-term debt (excluding finance lease obligations)  4,316  4,222 16 – 4,238 
 
 
  December 31, 2022 
 ($ 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 1,697  1,697 – – 1,697 
 Time deposits 2,459  – 2,459 – 2,459 
 Restricted cash 18  18 – – 18 
        
 Liabilities       
 Short-term debt and current maturities of long-term debt       
 (excluding finance lease obligations) 2,500  1,068 1,432 – 2,500 
 Long-term debt (excluding finance lease obligations)  4,976  4,813 30 – 4,843

===== SIDA 35 =====

22 Q2 2023 FINANCIAL INFORMATION  
The Company uses the following methods and assumptions in estimating fair values of financial instruments carried on a cost basis : 
• Cash and equivalents (excluding securities with orig inal maturities up to 3 months), Restricted cash, and Marketable securities and short -term 
investments (excluding securities): The carrying amounts approximate the fair values as the items are short -term in nature or, for cash held in 
banks, are equal to the deposit amount. 
• Short-term debt and current maturities of long-term debt (excluding finance lease obligations): Short-term debt includes commercial paper, 
bank borrowings and overdrafts. The carrying amounts of short -term debt and current maturities of long-term debt, excluding finance lease 
obligations, approximate their fair values. 
• Long-term debt (excluding finance lease obligations): Fair values of bonds are determined using qu oted market prices (Level 1 inputs), if 
available. For bonds without available quoted market prices and o ther 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). 
 
 
─ 
Note 8 
Contract assets and liabilities 
The following table provides information about Contract assets and Contr act liabilities: 
 ($ in millions) June 30, 2023 December 31, 2022 June 30, 2022 
 Contract assets 1,010 954 965 
 Contract liabilities 2,394 2,216 2,141 
 
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: 
  Six months ended June 30, 
  2023  2022 
  Contract  Contract  Contract  Contract 
 ($ in millions) assets  liabilities  assets  liabilities 
 Revenue recognized, which was included in the Contract liabilities balance at Jan 1, 2023/2022    (966)    (763) 
 Additions to Contract liabilities - excluding amounts recognized as revenue during the period    1,102    1,102 
 Receivables recognized that were included in the Contract assets balance at Jan 1, 2023/2022  (465)    (423)   
 
The Company considers its order backlog to represent its unsatisfied performance obligations. At June 30, 2023, the Company had unsatisfied 
performance obligations totaling $21,938 million and, of this amount, the Company expects to fulfill approximately 51 percent of the obligations in 202 3, 
approximately 36 percent of the obligations in 2024 and the balance thereafter.

===== SIDA 36 =====

23 Q2 2023 FINANCIAL INFORMATION  
─ 
Note 9 
Debt 
The Company’s total debt at June 30, 2023, and December 31, 2022, amounted to $8,300 million and $7,678 million, respectively. 
Short-term debt and current maturities of long-term debt  
The Company’s “Short-term debt and current maturities of long-term debt” consisted of the following:  
 ($ in millions) June 30, 2023 December 31, 2022 
 Short-term debt 1,434 1,448 
 Current maturities of long-term debt 2,415 1,087 
 Total 3,849 2,535 
 
Short-term debt primarily represented issued commercial paper and short -term bank borrowings from various banks. At June 30, 2023, and 
December 31, 2022, $1,352 million and $1,383 million, respectively, was outstanding under the $2 billion Euro-commercial paper program. No amount was 
outstanding under the $2 billion commercial paper program in the United States a t June 30, 2023, or at December 31, 2022. 
In May 2023, the Company repaid on maturity its EUR 700 million 0.625% Instruments, equivalent to $772 million on date of repayment. 
Long-term debt 
The Company’s long-term debt at June 30, 2023, and December 31, 2022, amounted to $4,451 million and $5,143 million, respectively.  
Outstanding bonds (including maturities within the next 12 months) were as follows:   
  June 30, 2023 December 31, 2022 
 (in millions) Nominal outstanding  Carrying value(1) Nominal outstanding  Carrying value(1) 
 Bonds:         
 0.625% EUR Instruments, due 2023     EUR 700 $ 742 
 0% CHF Bonds, due 2023 CHF 275 $ 305 CHF 275 $ 298 
 0.625% EUR Instruments, due 2024 EUR 700 $ 739 EUR 700 $ 720 
 Floating Rate EUR Instruments, due 2024 EUR 500 $ 544 EUR 500 $ 536 
 0.75% EUR Instruments, due 2024 EUR 750 $ 788 EUR 750 $ 769 
 0.3% CHF Bonds, due 2024 CHF 280 $ 310 CHF 280 $ 303 
 2.1% CHF Bonds, due 2025 CHF 150 $ 166 CHF 150 $ 162 
 3.25% EUR Instruments, due 2027 EUR 500 $ 539     
 0.75% CHF Bonds, due 2027 CHF 425 $ 470 CHF 425 $ 460 
 3.8% USD Notes, due 2028(2) USD 383 $ 382 USD 383 $ 381 
 1.0% CHF Bonds, due 2029 CHF 170 $ 188 CHF 170 $ 184 
 0% EUR Instruments, due 2030 EUR 800 $ 691 EUR 800 $ 677 
 2.375% CHF Bonds, due 2030 CHF 150 $ 166 CHF 150 $ 162 
 3.375% EUR Instruments, due 2031 EUR 750 $ 801     
 4.375% USD Notes, due 2042(2) USD 609 $ 590 USD 609 $ 590 
 Total    $ 6,679   $ 5,984 
(1)  USD carrying values include unamortized debt issuance costs, bond discounts or premiums, as well as adjustments for fair value hedge accounting, where appropriate. 
(2)  Prior to completing a cash tender offer in November 2020, the original principal amount outstanding, on each of the 3.8% USD Notes, due 2028, and the 4.375% USD 
Notes, due 2042, was USD 750 million. 
In January 2023, the Company issued the following EUR Instruments: (i)  EUR 500 million of 3.25 percent Instruments, due 2027, and (ii) EUR 750 million of 
3.375 percent Instruments, due 2031, both paying interest annually in arrears. The aggregate net proceeds of these EUR Instruments, after discount and 
fees, amounted to EUR 1,235 million (equivalent to approximately $1,338 million on date of issuance).

===== SIDA 37 =====

24 Q2 2023 FINANCIAL INFORMATION  
─ 
Note 10 
Commitments and contingencies 
Contingencies—Regulatory, Compliance and Legal 
Regulatory 
Based on findings during an internal investigation, the Company self -reported to the SEC and the DoJ, in the United States, to the Special Investigating 
Unit (SIU) and the National Prosecuting Authority (NPA) in South Africa as well as to various authorities in other countries potential suspect payment s 
and other compliance concerns in connection with some of the Company’s dealings with Eskom and related persons. Many of those  parties have 
expressed an interest in, or commenced an investigation into, these matters and the Company is cooperating fully with them. T he Company paid 
$104 million to Eskom in December 2020 as part of a full and final settlement with Eskom and the Special Investigating Unit relati ng to improper 
payments and other compliance issues associated with the Controls  and Instrumentation Contract, and its Variation Orders for Units  1 and 2 at Kusile. 
The Company made a provision of approximately $325 million which was recorded in Other income (expense), net, during the third quarter of 2022. In 
December 2022, the Company settled with the SEC and DOJ as well as the authorities in South Africa and Switzerland. The matter is s till pending with the 
authorities in Germany, but the Company does not believe that it will need to record any additional provisions for this matter. 
General 
The Company is aware of proceedings, or the threat of proceedings, against it and others in respect of pri vate claims by customers and other third 
parties with regard to certain actual or alleged anticompetitive practices. Also, the Company is subject to other claims and legal proceedings, as well as 
investigations carried out by various law enforcement author ities. With respect to the above-mentioned claims, regulatory matters, and any related 
proceedings, the Company will bear the related costs, including costs necessary to resolve them.  
Liabilities recognized 
At June 30, 2023, and December 31, 2022, the Company had aggregate liabilities of $95 million and $86 million, respectively, included in “Other 
provisions” and “Other non‑current liabilities”, for the above regulatory, compliance and legal contingencies, and none of the indi vidual liabilities 
recognized was significant. As it is not possible to make an informed judgment on, or reasonably predict, the outcome of cert ain matters and as it is not 
possible, based on information currently available to management, to estimate the m aximum potential liability on other matters, there could be adverse 
outcomes beyond the amounts accrued. 
Guarantees  
General 
The following table provides quantitative data regarding the Company’s third -party guarantees. The maximum potential payments represent a 
“worst-case scenario”, and do not reflect management’s expected outcomes.  
 Maximum potential payments ($ in millions) June 30, 2023 December 31, 2022 
 Performance guarantees 3,546 4,300 
 Financial guarantees 94 96 
 Total(1) 3,640 4,396 
(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 amo unts of liabilities at June 30, 2023, and 
December 31, 2022, 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 2035, mainly consist of performance guarantees whereby (i)  the Company guarantees the performance of a third party’s 
product or service according to the terms of a contract and (ii)  as member of a consortium/joint-venture that includes third parties, the Company 
guarantees not only its own performance but also the work of third parties. Such guarantees may include guarantees that a project will be completed 
within a specified time. If the third party does not fulfill the obligation, the Company will compensate the guaranteed party  in cash or in kind. The 
original maturity dates for the majority of these performance guarantees range from one to ten years. 
In conjunction with the divestment of the high-voltage cable and cables accessories businesses, the Company has entered into various performance 
guarantees with other parties with respect to certain liabilities of the divested business. At  both June 30, 2023, and December 31, 2022, the maximum 
potential payable under these guarantees amounts to $843  million, respectively, and these guarantees have various original maturities ranging from five 
to ten years. 
The Company retained obligations for financial, performance and indemnification guarantees related to the sale of the Power Grids business (see Note 3 
for details). The performance and financial guarantees have been indemnified by Hitachi  Ltd. These guarantees, which have various maturities up to 
2035, 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 June  30, 2023, and 
December 31, 2022, is approximately $2.3 billion and $3.0 billion, respectively.  
Commercial commitments 
In addition, in the normal course of bidding for and executing certain projects, the Company has entered into st andby 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 the financial institution for 
amounts paid under the performance bonds. At June 30, 2023, and December 31, 2022, respectively, the total outstanding performance bonds 
aggregated to $3.0 billion and $2.9 billion. There have been no significant amounts reimbursed to financial institutions under these types of 
arrangements in the six and three months ended June 30, 2023 and 2022.

===== SIDA 38 =====

25 Q2 2023 FINANCIAL INFORMATION  
Product and order-related contingencies 
The Company calculates its provision for product warranties based on historical claims experience and specific review of certain contracts.  The 
reconciliation of the “Provisions for warranties”, including guarantees of product performance, was as follows:  
 ($ in millions) 2023 2022 
 Balance at January 1, 1,028 1,005 
 Claims paid in cash or in kind (85) (82) 
 Net increase in provision for changes in estimates, warranties issued and warranties expired  136 103 
 Exchange rate differences (3) (54) 
 Balance at June 30, 1,076 972 
 
 
─ 
Note 11 
Income taxes 
In calculating income tax expense, the Company uses an estimate of the annual effective tax rate based upon the facts and cir cumstances known at each 
interim period. On a quarterly basis, the actual effective tax rate is adjusted, as appropriate, based upon changed facts and circums tances, if any, as 
compared to those forecasted at the beginning of the year and each interim period thereafter.  
The effective tax rate of 19.0 percent in the six months ended June 30, 2023, was lower than the effective tax rate of 29.3 percent in the six months ended 
June 30, 2022, primarily due to a net benefit realized on a favorable resolution of an uncertain tax position. In February 2023, on completion of a tax 
audit, the Company obtained resolution of the uncertain tax position for which an amount was recorded within Other non -current liabilities as of 
December 31, 2022. In the six months ended June 30, 2023, the Company released the provision of $206 million, due to the resolution of this matter , 
which resulted in an increase of $0.11 in earnings per share (basic and diluted)  for the six months ended June 30, 2023 . 
 
 
─ 
Note 12 
Employee benefits 
The Company operates defined benefit pension plans, defined contribution pension plans, and termination in demnity plans, in accordance with local 
regulations and practices. At June 30, 2023, 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 o f 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 measurement date used for the Company’s employee benefit plans is December  31. The funding policies of the Company’s 
plans are consistent with the local government and tax requirements.  
Net periodic benefit cost of the Company’s defined benefit pension and other postretirement benefit plans consisted of the following:  
 ($ in millions) Defined pension benefits  Other postretirement 
  Switzerland International  benefits 
 Six months ended June 30, 2023 2022 2023 2022  2023 2022 
 Operational pension cost:        
 Service cost 19 27 14 17  – – 
 Operational pension cost 19 27 14 17  – – 
 Non-operational pension cost (credit):        
 Interest cost 24 1 82 43  1 1 
 Expected return on plan assets (63) (58) (74) (77)  – – 
 Amortization of prior service cost (credit) (4) (4) (1) (1)  (1) (1) 
 Amortization of net actuarial loss – – 23 30  (2) (2) 
 Non-operational pension cost (credit) (43) (61) 30  (5)  (2) (2) 
 Net periodic benefit cost (credit) (24) (34) 44 12  (2) (2) 
 
 ($ in millions) Defined pension benefits  Other postretirement 
  Switzerland International  benefits 
 Three months ended June 30, 2023 2022 2023 2022  2023 2022 
 Operational pension cost:        
 Service cost 10 13 6 8  – – 
 Operational pension cost 10 13 6 8  – – 
 Non-operational pension cost (credit):        
 Interest cost 12 – 42 21  – 1 
 Expected return on plan assets (30) (28) (35) (36)  – – 
 Amortization of prior service cost (credit) (4) (2) (1) (1)  (1) – 
 Amortization of net actuarial loss – – 10 15  (1) (2) 
 Non-operational pension cost (credit) (22) (30) 16  (1)  (2) (1) 
 Net periodic benefit cost (credit) (12) (17) 22 7  (2) (1) 
 
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 income statement.

===== SIDA 39 =====

26 Q2 2023 FINANCIAL INFORMATION  
Employer contributions were as follows: 
 ($ in millions) Defined pension benefits  Other postretirement 
  Switzerland International  benefits 
 Six months ended June 30, 2023 2022 2023 2022  2023 2022 
 Total contributions to defined benefit pension and         
 other postretirement benefit plans 5 31 21 19  4 4 
 
 ($ in millions) Defined pension benefits  Other postretirement 
  Switzerland International  benefits 
 Three months ended June 30, 2023 2022 2023 2022  2023 2022 
 Total contributions to defined benefit pension and         
 other postretirement benefit plans 3 15 10 9  2 1 
 
The Company expects to make contributions totaling approximately $95 million and $34 million to its defined pension plans and other postretirement 
benefit plans, respectively, for the full year 2023. 
 
 
─ 
Note 13 
Stockholder's equity  
At the Annual General Meeting of Shareholders (AGM) on March 23, 2023, shareholders approved the proposal of the Board of Directors to distribute 
0.84 Swiss francs per share to shareholders. The declared dividend amounted to $ 1,706 million, with the Company disbursing a portion in March and the 
remaining amounts in April. 
In March 2023, the Company completed the share buyback program that was launched in April 2022. This program was executed on a second trading line 
on the SIX Swiss Exchange. Through this program, the Company purchased a total of 67 million shares for approximately $2.0 billion, of which 8 million 
shares were purchased in the first quarter of 2023 (resulting in an increase in Treasury stock of $253 million). 
Also in March 2023, the Company announced a new share buyback program of up to $ 1 billion. This program, which was launched in April  2023, is being 
executed on a second trading line on the SIX Swiss Exchange and is planned to run until the Company’s 2024 AGM. Through this program, the Company 
purchased, from the program’s launch in April 2023 to June 30, 2023, 6 million shares, resulting in an increase in Treasury stock of $212  million. 
In the second quarter of 2023, the Company cancelled 83 million shares which had been purchased under its share buyback program. This resulted in a 
decrease in Treasury stock of $2,567 million and a corresponding total decrease in Capital stock, Additional paid -in capital and Retained earnings. 
During the first quarter of 2023, the Company delivered, out of treasury stock, approximately 5 million shares in connection with its Management 
Incentive Plan. 
In February 2023, the Company obtained funding through a private placement of shares in its ABB E-Mobility subsidiary, ABB E-mobility Holding Ltd 
(ABB E-Mobility), receiving gross proceeds of 325 million Swiss francs (approximately $351 million) and reducing the Company’s ownership in  ABB 
E-Mobility from 92 percent to 81 percent. This resulted in an increase in Additional paid -in capital of $170 million.

===== SIDA 40 =====

27 Q2 2023 FINANCIAL INFORMATION  
─ 
Note 14 
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   
  Six months ended June 30, Three months ended June 30, 
 ($ in millions, except per share data in $) 2023 2022 2023 2022 
 Amounts attributable to ABB shareholders:      
 Income from continuing operations, net of tax  1,951 1,003 910 388 
 Loss from discontinued operations, net of tax  (9) (20) (4) (9) 
 Net income 1,942 983 906 379 
      
 Weighted-average number of shares outstanding (in millions)  1,861 1,922 1,862 1,909 
      
 Basic earnings per share attributable to ABB shareholders:      
 Income from continuing operations, net of tax 1.05 0.52 0.49 0.20 
 Loss from discontinued operations, net of tax  0.00 (0.01) 0.00 0.00 
 Net income 1.04 0.51 0.49 0.20 
      
 Diluted earnings per share   
  Six months ended June 30, Three months ended June 30, 
 ($ in millions, except per share data in $) 2023 2022 2023 2022 
 Amounts attributable to ABB shareholders:      
 Income from continuing operations, net of tax  1,951 1,003 910 388 
 Loss from discontinued operations, net of tax  (9) (20) (4) (9) 
 Net income 1,942 983 906 379 
      
 Weighted-average number of shares outstanding (in millions)  1,861 1,922 1,862 1,909 
 Effect of dilutive securities:     
 Call options and shares 12 13 11 9 
 Adjusted weighted-average number of shares outstanding (in millions) 1,873 1,935 1,873 1,918 
      
 Diluted earnings per share attributable to ABB shareholders:      
 Income from continuing operations, net of tax  1.04 0.52 0.49 0.20 
 Loss from discontinued operations, net of tax  0.00 (0.01) 0.00 0.00 
 Net income 1.04 0.51 0.48 0.20

===== SIDA 41 =====

28 Q2 2023 FINANCIAL INFORMATION  
─ 
Note 15 
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, 2022 (2,993) 2 (1,089) (8) (4,088) 
 Other comprehensive (loss) income:      
 Other comprehensive (loss) income      
 before reclassifications (419) (17) 91 (12) (357) 
 Amounts reclassified from OCI 5 – 15 14 34 
 Total other comprehensive (loss) income (414) (17) 106 2 (323) 
       
 Less:      
 Amounts attributable to      
 noncontrolling interests and      
 redeemable noncontrolling interests (22) – – – (22) 
 Balance at June 30, 2022 (3,385) (15) (983) (6) (4,389) 
 
 
   Unrealized gains Pension and   
  Foreign currency (losses) on other Derivative  
  translation available-for-sale postretirement instruments  
 ($ in millions) adjustments securities plan adjustments and hedges Total OCI 
 Balance at January 1, 2023 (3,691) (19) (838) (8) (4,556) 
 Other comprehensive (loss) income:      
 Other comprehensive (loss) income      
 before reclassifications (79) 2 (13) (1) (91) 
 Amounts reclassified from OCI – 5 8 4 17 
 Total other comprehensive (loss) income  (79) 7 (5) 3 (74) 
       
 Less:      
 Amounts attributable to      
 noncontrolling interests and      
 redeemable noncontrolling interests (3)    (3) 
 Balance at June 30, 2023 (3,767) (12) (843) (5) (4,627) 
 
The amounts reclassified out of OCI for the six and three months ended June  30, 2023 and 2022, were not significant.

===== SIDA 42 =====

29 Q2 2023 FINANCIAL INFORMATION  
─ 
Note 16 
Restructuring and related expenses 
Other restructuring-related activities 
In the six and three months ended June 30, 2023 and 2022, the Company executed various other restructuring -related activities and incurred the 
following expenses:  
  Six months ended June 30, Three months ended June 30, 
 ($ in millions) 2023 2022 2023 2022 
 Employee severance costs 26 43 7 35 
 Estimated contract settlement, loss order and other costs 2 202 1 195 
 Inventory and long-lived asset impairments – 5 – 1 
 Total 28 250 8 231 
 
Expenses associated with these activities are recorded in the following line items in the Consolidated Income Statements:  
  Six months ended June 30, Three months ended June 30, 
 ($ in millions) 2023 2022 2023 2022 
 Total cost of sales 10 8 3 4 
 Selling, general and administrative expenses  13 28 1 24 
 Non-order related research and development expenses  – 2 (1) 2 
 Other income (expense), net 5 212 5 201 
 Total 28 250 8 231 
 
During the second quarter of 2022, the Company completed a plan to fully exit its full train retrofit business by transferring the remaining contracts to a 
third party. The Company recorded $195 million of restructuring expenses in connection with this business exit primarily for  contract settlement costs. 
Prior to exiting this business, the business was reported as part of the Company’s non -core business activities within Corporate and Other. 
At June 30, 2023 and December 31, 2022, $193 million and $198 million, respectively, was recorded for other restructuring -related liabilities and is 
included primarily in Other provisions. 
 
 
─ 
Note 17 
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 remain ing operations of the Company are included in Corporate 
and Other. 
Effective January 1, 2023, the E-mobility Division is no longer managed within the Electrification segment and has become a separate operating 
segment. This new segment does not currently meet any of the size thresholds to be considered a reportable segment and as such is presented within 
Corporate and Other. The segment information for the six and three months ended June 30, 2023 and 2022, and at December 31, 2022, has been recast to 
reflect this change. 
A description of the types of products and services provided by each reportable segment is as follow s: 
• Electrification: manufactures and sells electrical products and solutions which are design ed to provide safe, smart and sustainable electrical 
flow from the substation to the socket. The portfolio of increasingly digital and connected solutions includes renewable power 
solutions, modular substation packages, distribution automation products, switchboard 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 network s. The 
products and services are delivered through six operating Divisions: Distribution Solutions, Smart Power, Smart Buildings, Installation 
Products, Power Conversion and Service. 
 
• 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 130 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.

===== SIDA 43 =====

30 Q2 2023 FINANCIAL INFORMATION  
• 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 currently delivered through four operating 
Divisions: Energy Industries, Process Industries, Marine & Ports and Measurement &  Analytics as well as, prior to its spin-off in October 2022, 
the Turbocharging Division (Accelleron). 
 
• Robotics & Discrete Automation: delivers its products, solutions and services through two operating Divisions: Robotics and Machine 
Automation. Robotics includes industrial robots, autonomous mobile robotics, software, robotic solutions, field services, spare parts, and 
digital services. Machine Automation specializes in  solutions based on its programmable logic controllers (PLC), industrial PCs (IPC), servo 
motion, transport systems and machine vision. Both Divisions offer engineering and simulation software as well as a comprehensive range of 
digital solutions. 
Corporate and Other: includes headquarter costs, the Company’s corporate real estate activities, Corporate Treasury Operations,  the E-mobility 
operating segment, historical operating activities of certain divested businesses , and other non-core operating activities. 
The primary measure of profitability on which the operating segments are evaluated is Operational EBITA, which represents income from operations 
excluding: 
• amortization expense on intangibles arising upon acquisition (acquisition-related amortization),  
• restructuring, related and implementation costs , 
• changes in the amount recorded for obligations related to divested businesses occurring after the divestment date (changes in  obligations 
related to divested businesses), 
• gains and losses from sale of businesses (including fair value adjustment on assets and liabilities held for sale) ,  
• 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 a nd legal costs, other income/expense relating to the Power Grids 
joint venture, certain asset write downs/impairments and certain other fair value changes, changes in estimates relating to opening balance sheets of 
acquired businesses (changes in pre-acquisition estimates), as well as other items which are determined by management on a case -by-case basis. 
The CODM primarily reviews the results of each segment on a basis that is before the elimination of profits made on inventory sales between segments. 
Segment results below are presented before these eliminations, with a total deduction for intersegment profits to arrive at t he Company’s consolidated 
Operational EBITA. Intersegment sales and transfers are accounted for as if the sales and transfers were to third parties, at c urrent market prices. 
The following tables present disaggregated segment revenues from contracts with customers , Operational EBITA, and the reconciliations of 
consolidated Operational EBITA to Income from continuing operations before taxes for the six and three months ended June  30, 2023 and 2022, as well 
as total assets at June 30, 2023, and December 31, 2022. 
  Six months ended June 30, 2023 
     Robotics &   
    Process Discrete Corporate  
 ($ in millions) Electrification Motion Automation Automation and Other Total 
 Geographical markets        
 Europe  2,328 1,289 1,081 956 153 5,807 
 The Americas  2,932 1,267 868 272 129 5,468 
 of which: United States 2,179 1,061 550 175 111 4,076 
 Asia, Middle East and Africa  1,948 1,117 1,027 623 32 4,747 
 of which: China 917 581 339 475 17 2,329 
  7,208 3,673 2,976 1,851 314 16,022 
 Product type        
 Products 6,762 3,169 1,743 1,576 280 13,530 
 Services and other 446 504 1,233 275 34 2,492 
  7,208 3,673 2,976 1,851 314 16,022 
        
 Third-party revenues 7,208 3,673 2,976 1,851 314 16,022 
 Intersegment revenues 117 248 13 8 (386) – 
 Total revenues(1) 7,325 3,921 2,989 1,859 (72) 16,022

===== SIDA 44 =====

31 Q2 2023 FINANCIAL INFORMATION  
  Six months ended June 30, 2022 
     Robotics &   
    Process Discrete Corporate  
 ($ in millions) Electrification Motion Automation Automation and Other Total 
 Geographical markets        
 Europe  2,120 953 1,131 712 110 5,026 
 The Americas  2,445 1,029 767 238 87 4,566 
 of which: United States 1,789 853 460 166 60 3,328 
 Asia, Middle East and Africa  1,967 995 1,119 509 34 4,624 
 of which: China 992 565 309 382 15 2,263 
  6,532 2,977 3,017 1,459 231 14,216 
 Product type        
 Products 6,124 2,552 1,642 1,230 214 11,762 
 Services and other 408 425 1,375 229 17 2,454 
  6,532 2,977 3,017 1,459 231 14,216 
        
 Third-party revenues 6,532 2,977 3,017 1,459 231 14,216 
 Intersegment revenues 118 221 18 3 (360) – 
 Total revenues(1) 6,650 3,198 3,035 1,462 (129) 14,216 
 
  Three months ended June 30, 2023 
     Robotics &   
    Process Discrete Corporate  
 ($ in millions) Electrification Motion Automation Automation and Other Total 
 Geographical markets        
 Europe  1,166 651 562 482 74 2,935 
 The Americas  1,525 635 447 136 72 2,815 
 of which: United States 1,136 528 286 84 58 2,092 
 Asia, Middle East and Africa  991 568 538 299 17 2,413 
 of which: China 460 300 177 227 10 1,174 
  3,682 1,854 1,547 917 163 8,163 
 Product type        
 Products 3,456 1,586 916 785 143 6,886 
 Services and other 226 268 631 132 20 1,277 
  3,682 1,854 1,547 917 163 8,163 
        
 Third-party revenues 3,682 1,854 1,547 917 163 8,163 
 Intersegment revenues 53 127 6 5 (191) – 
 Total revenues(1) 3,735 1,981 1,553 922 (28) 8,163 
 
  Three months ended June 30, 2022 
     Robotics &   
    Process Discrete Corporate  
 ($ in millions) Electrification Motion Automation Automation and Other Total 
 Geographical markets        
 Europe  1,058 487 546 358 59 2,508 
 The Americas  1,281 537 399 130 50 2,397 
 of which: United States 940 446 239 94 27 1,746 
 Asia, Middle East and Africa  1,016 496 573 242 19 2,346 
 of which: China 535 278 159 185 6 1,163 
  3,355 1,520 1,518 730 128 7,251 
 Product type        
 Products 3,143 1,304 829 618 119 6,013 
 Services and other 212 216 689 112 9 1,238 
  3,355 1,520 1,518 730 128 7,251 
        
 Third-party revenues 3,355 1,520 1,518 730 128 7,251 
 Intersegment revenues 59 106 11 2 (178) – 
 Total revenues(1) 3,414 1,626 1,529 732 (50) 7,251 
(1) Due to rounding, numbers presented may not add to the totals provided.

===== SIDA 45 =====

32 Q2 2023 FINANCIAL INFORMATION  
  Six months ended  Three months ended 
  June 30, June 30, 
 ($ in millions) 2023 2022 2023 2022 
 Operational EBITA:     
 Electrification 1,464 1,117 787 605 
 Motion 767 540 401 266 
 Process Automation 444 420 239 224 
 Robotics & Discrete Automation 281 109 141 60 
 Corporate and Other     
 ‒ E-mobility (95) (8) (67) (6) 
 ‒ Corporate costs, Intersegment elimination and other  (159) (45) (76) (13) 
 Total 2,702 2,133 1,425 1,136 
 Acquisition-related amortization (109) (119) (55) (59) 
 Restructuring, related and implementation costs (1) (41) (280) (13) (264) 
 Changes in obligations related to divested businesses  5 17 8 3 
 Gains and losses from sale of businesses  26 (4) 26 (4) 
 Acquisition- and divestment-related expenses and integration costs (45) (109) (26) (50) 
 Foreign exchange/commodity timing differences in income from operations:      
 Unrealized gains and losses on derivatives (foreign exchange,      
 commodities, embedded derivatives) (10) (100) (32) (118) 
 Realized gains and losses on derivatives where the underlying hedged      
 transaction has not yet been realized (6) (35) (1) (33) 
 Unrealized foreign exchange movements on receivables/payables (and      
 related assets/liabilities) 14 40 7 41 
 Certain other non-operational items:     
 Other income/expense relating to the Power Grids joint venture  20 (37) 7 (2) 
 Regulatory, compliance and legal costs – (4) – (5) 
 Business transformation costs(2) (82) (66) (48) (40) 
 Changes in pre-acquisition estimates (4) 1 (4) 2 
 Certain other fair value changes, including asset impairments  6 34 7 – 
 Other non-operational items 20 (27) (3) (20) 
 Income from operations 2,496 1,444 1,298 587 
 Interest and dividend income 78 33 38 20 
 Interest and other finance expense (124) (62) (63) (40) 
 Non-operational pension (cost) credit 15 68 8 32 
 Income from continuing operations before taxes  2,465 1,483 1,281 599 
(1) Includes impairment of certain assets. 
(2) Amount includes ABB Way process transformation costs of $71 million and $64 million for six months ended June 30, 2023 and 2022, respectively, and $41 million and 
$39 million for the three months ended June 30, 2023 and 2022, respectively. 
  Total assets(1) 
 ($ in millions) June 30, 2023 December 31, 2022 
 Electrification 13,300 12,500 
 Motion 7,043 6,565 
 Process Automation 4,761 4,598 
 Robotics & Discrete Automation 4,931 4,901 
 Corporate and Other(2) 9,821 10,584 
 Consolidated 39,856 39,148 
(1) Total assets are after intersegment eliminations and therefore reflect third-party assets only. 
(2) At June 30, 2023, and December 31, 2022, respectively, Corporate and Other includes $74 million and $96 million of assets in the Power Grids business which is reported as 
discontinued operations (see Note 3).

===== SIDA 46 =====

33 Q2 2023 FINANCIAL INFORMATION

===== SIDA 47 =====

34 Q2 2023 FINANCIAL INFORMATION  
 
 
 
 
— 
Supplemental Reconciliations and Definitions 
 
 
 
The following reconciliations and definitions include measures which ABB uses to supplement its Consolidated Financial Inform ation (unaudited) 
which is prepared in accordance with United States generally accepted accounting principles (U.S.  GAAP). Certain of these financial measures 
are, or may be, considered non -GAAP financial measures as defined in the rules of the U.S. Securities and Exchange Commission (SEC).  
 
While ABB’s management believes that the non -GAAP financial measures herein are useful in evaluating ABB’s operating results, this information 
should be considered as supplemental in nature and not as a substitute for the related financial information prepared in acco rdance with 
U.S. GAAP. Therefore these measures should not be viewed in isolation but considered together with the Consolidated Financial Info rmation 
(unaudited) prepared in accordance with U.S.  GAAP as of and for the six and three months ended June  30, 2023.  
 
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 c urrency 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 p ortfolio 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 adju sted to exclude the relevant key figures of any corresponding quarters which are not 
comparable when computing the comparable growth rate. Certain portfolio changes which do not qualify as divestments under U.S . GAAP have been 
treated in a similar manner to divestments. Changes in our portfolio where we have exited certain business activities or customer markets are adjusted 
as if the relevant business was divested in the period when the decision to cease business activities was taken. We do not 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 ke y figures to their respective comparable growth rate.  
 
Comparable growth rate reconciliation by Business Area 
  Q2 2023 compared to Q2 2022 
  Order growth rate  Revenue growth rate 
  US$ Foreign    US$ Foreign   
  (as exchange Portfolio   (as exchange Portfolio  
 Business Area reported) impact changes Comparable  reported) impact changes Comparable 
 Electrification  1% 2% 0% 3%  9% 2% 0% 11% 
 Motion 3% 1% -1% 3%  22% 1% -1% 22% 
 Process Automation -8% 2% 12% 6%  2% 2% 15% 19% 
 Robotics & Discrete Automation -23% 1% 0% -22%  26% 1% 0% 27% 
 ABB Group -2% 2% 2% 2%  13% 1% 3% 17% 
 
 
  H1 2023 compared to H1 2022 
  Order growth rate  Revenue growth rate 
  US$ Foreign    US$ Foreign   
  (as exchange Portfolio   (as exchange Portfolio  
 Business Area reported) impact changes Comparable  reported) impact changes Comparable 
 Electrification  1% 3% 0% 4%  10% 4% 0% 14% 
 Motion 3% 3% -1% 5%  23% 3% -1% 25% 
 Process Automation 8% 4% 17% 29%  -2% 4% 15% 17% 
 Robotics & Discrete Automation -23% 2% 0% -21%  27% 4% 0% 31% 
 ABB Group 0% 3% 3% 6%  13% 3% 3% 19%

===== SIDA 48 =====

35 Q2 2023 FINANCIAL INFORMATION  
Regional comparable growth rate reconciliation  
Regional comparable growth rate reconciliation  for ABB Group - Quarter 
  Q2 2023 compared to Q2 2022 
  Order growth rate  Revenue growth rate 
  US$ Foreign    US$ Foreign   
  (as exchange Portfolio   (as exchange Portfolio  
 Region reported) impact changes Comparable  reported) impact changes Comparable 
 Europe -1% 0% 2% 1%  17% -1% 4% 20% 
 The Americas 5% 0% 1% 6%  17% 0% 2% 19% 
 of which: United States 4% 0% 0% 4%  20% 0% 1% 21% 
 Asia, Middle East and Africa -10% 6% 3% -1%  3% 6% 4% 13% 
 of which: China -15% 5% 1% -9%  1% 5% 3% 9% 
 ABB Group -2% 2% 2% 2%  13% 1% 3% 17% 
Regional comparable growth rate reconciliation  by Business Area - Quarter 
 
  Q2 2023 compared to Q2 2022 
  Order growth rate  Revenue growth rate 
  US$ Foreign    US$ Foreign   
  (as exchange Portfolio   (as exchange Portfolio  
 Region reported) impact changes Comparable  reported) impact changes Comparable 
 Europe -4% -2% 0% -6%  9% -1% 0% 8% 
 The Americas 8% 0% 0% 8%  19% 0% 0% 19% 
 of which: United States 6% 0% 0% 6%  21% 0% 0% 21% 
 Asia, Middle East and Africa -3% 8% 0% 5%  -2% 7% 0% 5% 
 of which: China -9% 6% 0% -3%  -14% 4% 0% -10% 
 Electrification 1% 2% 0% 3%  9% 2% 0% 11% 
  
  Q2 2023 compared to Q2 2022 
  Order growth rate  Revenue growth rate 
  US$ Foreign    US$ Foreign   
  (as exchange Portfolio   (as exchange Portfolio  
 Region reported) impact changes Comparable  reported) impact changes Comparable 
 Europe 8% -2% -2% 4%  31% -2% -1% 28% 
 The Americas 4% -1% -2% 1%  20% 0% -3% 17% 
 of which: United States 0% -1% -2% -3%  20% 0% -3% 17% 
 Asia, Middle East and Africa -3% 6% 0% 3%  14% 8% 0% 22% 
 of which: China -6% 5% 0% -1%  8% 6% 0% 14% 
 Motion 3% 1% -1% 3%  22% 1% -1% 22% 
  
  Q2 2023 compared to Q2 2022 
  Order growth rate  Revenue growth rate 
  US$ Foreign    US$ Foreign   
  (as exchange Portfolio   (as exchange Portfolio  
 Region reported) impact changes Comparable  reported) impact changes Comparable 
 Europe -6% 3% 13% 10%  3% 0% 17% 20% 
 The Americas -8% -1% 8% -1%  12% 0% 12% 24% 
 of which: United States -2% 0% 9% 7%  19% 0% 16% 35% 
 Asia, Middle East and Africa -10% 3% 15% 8%  -7% 5% 15% 13% 
 of which: China -6% 4% 14% 12%  11% 6% 21% 38% 
 Process Automation -8% 2% 12% 6%  2% 2% 15% 19% 
  
  Q2 2023 compared to Q2 2022 
  Order growth rate  Revenue growth rate 
  US$ Foreign    US$ Foreign   
  (as exchange Portfolio   (as exchange Portfolio  
 Region reported) impact changes Comparable  reported) impact changes Comparable 
 Europe -23% -1% 0% -24%  35% -2% 0% 33% 
 The Americas 4% 0% 0% 4%  6% -1% 0% 5% 
 of which: United States -16% 1% 0% -15%  -9% 0% 0% -9% 
 Asia, Middle East and Africa -33% 4% 0% -29%  23% 6% 0% 29% 
 of which: China -41% 4% 0% -37%  23% 7% 0% 30% 
 Robotics & Discrete Automation -23% 1% 0% -22%  26% 1% 0% 27%

===== SIDA 49 =====

36 Q2 2023 FINANCIAL INFORMATION  
Regional comparable growth rate reconciliation  for ABB Group – Year to date 
  H1 2023 compared to H1 2022 
  Order growth rate  Revenue growth rate 
  US$ Foreign    US$ Foreign   
  (as exchange Portfolio   (as exchange Portfolio  
 Region reported) impact changes Comparable  reported) impact changes Comparable 
 Europe 0% 3% 3% 6%  16% 2% 3% 21% 
 The Americas 4% 0% 2% 6%  20% 0% 2% 22% 
 of which: United States 0% 0% 1% 1%  22% 1% 1% 24% 
 Asia, Middle East and Africa -6% 8% 3% 5%  3% 8% 4% 15% 
 of which: China -13% 5% 2% -6%  3% 7% 2% 12% 
 ABB Group 0% 3% 3% 6%  13% 3% 3% 19% 
Regional comparable growth rate reconciliation  by Business Area – Year to date 
 
  H1 2023 compared to H1 2022 
  Order growth rate  Revenue growth rate 
  US$ Foreign    US$ Foreign   
  (as exchange Portfolio   (as exchange Portfolio  
 Region reported) impact changes Comparable  reported) impact changes Comparable 
 Europe -2% 2% 0% 0%  9% 2% 0% 11% 
 The Americas 3% 1% 0% 4%  20% 0% 0% 20% 
 of which: United States 0% 0% 0% 0%  22% 0% 0% 22% 
 Asia, Middle East and Africa 1% 9% 0% 10%  -1% 9% 0% 8% 
 of which: China -10% 6% 0% -4%  -8% 6% 0% -2% 
 Electrification 1% 3% 0% 4%  10% 4% 0% 14% 
  
  H1 2023 compared to H1 2022 
  Order growth rate  Revenue growth rate 
  US$ Foreign    US$ Foreign   
  (as exchange Portfolio   (as exchange Portfolio  
 Region reported) impact changes Comparable  reported) impact changes Comparable 
 Europe 6% 3% -1% 8%  31% 2% -1% 32% 
 The Americas 2% 0% -1% 1%  24% 0% -1% 23% 
 of which: United States 1% -1% -1% -1%  25% 0% -1% 24% 
 Asia, Middle East and Africa -1% 8% 0% 7%  13% 9% 0% 22% 
 of which: China -7% 6% 0% -1%  5% 7% 0% 12% 
 Motion 3% 3% -1% 5%  23% 3% -1% 25% 
  
  H1 2023 compared to H1 2022 
  Order growth rate  Revenue growth rate 
  US$ Foreign    US$ Foreign   
  (as exchange Portfolio   (as exchange Portfolio  
 Region reported) impact changes Comparable  reported) impact changes Comparable 
 Europe 18% 7% 20% 45%  -4% 3% 16% 15% 
 The Americas 8% 0% 12% 20%  13% 1% 13% 27% 
 of which: United States -5% 0% 12% 7%  20% 0% 17% 37% 
 Asia, Middle East and Africa -2% 5% 18% 21%  -8% 5% 15% 12% 
 of which: China 5% 7% 20% 32%  9% 7% 21% 37% 
 Process Automation 8% 4% 17% 29%  -2% 4% 15% 17% 
  
  H1 2023 compared to H1 2022 
  Order growth rate  Revenue growth rate 
  US$ Foreign    US$ Foreign   
  (as exchange Portfolio   (as exchange Portfolio  
 Region reported) impact changes Comparable  reported) impact changes Comparable 
 Europe -22% 2% 0% -20%  35% 2% 0% 37% 
 The Americas -8% -1% 0% -9%  16% -1% 0% 15% 
 of which: United States -20% 0% 0% -20%  6% 1% 0% 7% 
 Asia, Middle East and Africa -31% 5% 0% -26%  22% 9% 0% 31% 
 of which: China -35% 4% 0% -31%  24% 9% 0% 33% 
 Robotics & Discrete Automation -23% 2% 0% -21%  27% 4% 0% 31%

===== SIDA 50 =====

37 Q2 2023 FINANCIAL INFORMATION  
Order backlog growth rate reconciliation 
  June 30, 2023 compared to June 30, 2022  
  US$ Foreign    
  (as exchange Portfolio   
 Business Area reported) impact changes Comparable  
 Electrification  18% 1% 0% 19%  
 Motion 17% -1% -2% 14%  
 Process Automation 11% 1% 5% 17%  
 Robotics & Discrete Automation -3% 1% 0% -2%  
 ABB Group 13% 0% 1% 14%  
 
 
Other growth rate reconciliations 
  Q2 2023 compared to Q2 2022 
  Service orders growth rate  Services revenues growth rate 
  US$ Foreign    US$ Foreign   
  (as exchange Portfolio   (as exchange Portfolio  
 Business Area reported) impact changes Comparable  reported) impact changes Comparable 
 Electrification  1% 1% 0% 2%  7% 3% 0% 10% 
 Motion 10% 3% 0% 13%  24% 3% 0% 27% 
 Process Automation -16% 2% 20% 6%  -8% 1% 25% 18% 
 Robotics & Discrete Automation 8% 0% 0% 8%  18% 0% 0% 18% 
 ABB Group -6% 2% 11% 7%  3% 2% 14% 19% 
 
 
  H1 2023 compared to H1 2022 
  Service orders growth rate  Services revenues growth rate 
  US$ Foreign    US$ Foreign   
  (as exchange Portfolio   (as exchange Portfolio  
 Business Area reported) impact changes Comparable  reported) impact changes Comparable 
 Electrification  3% 3% 0% 6%  10% 3% 0% 13% 
 Motion 8% 4% 0% 12%  18% 6% 0% 24% 
 Process Automation -16% 3% 22% 9%  -10% 3% 25% 18% 
 Robotics & Discrete Automation 9% 3% 0% 12%  20% 3% 0% 23% 
 ABB Group -6% 4% 12% 10%  2% 3% 14% 19%

===== SIDA 51 =====

38 Q2 2023 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),  
• 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, other income/expense relating to the Pow er Grids 
joint venture, certain asset write downs/impairments and certain other fair value changes, changes in estimates relating to opening balance sheets of 
acquired businesses (changes in pre-acquisition estimates), 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 consi sts 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  
  Six months ended June 30, Three months ended June 30, 
 ($ in millions) 2023 2022 2023 2022 
 Operational EBITA 2,702 2,133 1,425 1,136 
 Acquisition-related amortization (109) (119) (55) (59) 
 Restructuring, related and implementation costs (1) (41) (280) (13) (264) 
 Changes in obligations related to divested businesses 5 17 8 3 
 Gains and losses from sale of businesses  26 (4) 26 (4) 
 Acquisition- and divestment-related expenses and integration costs  (45) (109) (26) (50) 
 Certain other non-operational items (40) (99) (41) (65) 
 Foreign exchange/commodity timing differences in income from operations  (2) (95) (26) (110) 
 Income from operations 2,496 1,444 1,298 587 
 Interest and dividend income 78 33 38 20 
 Interest and other finance expense (124) (62) (63) (40) 
 Non-operational pension (cost) credit 15 68 8 32 
 Income from continuing operations before taxes  2,465 1,483 1,281 599 
 Income tax expense (468) (434) (349) (193) 
 Income from continuing operations, net of tax  1,997 1,049 932 406 
 Loss from discontinued operations, net of tax  (9) (20) (4) (9) 
 Net income 1,988 1,029 928 397 
(1) Includes impairment of certain assets.

===== SIDA 52 =====

39 Q2 2023 FINANCIAL INFORMATION  
Reconciliation of Operational EBITA margin by business  
  Three months ended June 30, 2023 
      Corporate and  
     Robotics & Other and  
    Process Discrete Intersegment  
 ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated 
 Total revenues 3,735 1,981 1,553 922 (28) 8,163 
 Foreign exchange/commodity timing       
 differences in total revenues:       
 Unrealized gains and losses       
 on derivatives 6 (9) 3 6 8 14 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized (4) – 5 – (2) (1) 
 Unrealized foreign exchange movements        
 on receivables (and related assets) – (2) (8) (7) (6) (23) 
 Operational revenues 3,737 1,970 1,553 921 (28) 8,153 
        
 Income (loss) from operations 713 380 270 119 (184) 1,298 
 Acquisition-related amortization 22 9 2 19 3 55 
 Restructuring, related and       
 implementation costs(1) 4 1 2 – 6 13 
 Changes in obligations related to       
 divested businesses 1 – – – (9) (8) 
 Gains and losses from sale of businesses – – (26) – – (26) 
 Acquisition- and divestment-related expenses       
 and integration costs 12 8 (2) 2 6 26 
 Certain other non-operational items 6 1 – 1 33 41 
 Foreign exchange/commodity timing        
 differences in income from operations:       
 Unrealized gains and losses on derivatives       
 (foreign exchange, commodities,        
 embedded derivatives) 31 5 (8) 4 – 32 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized (2) – 5 – (2) 1 
 Unrealized foreign exchange movements        
 on receivables/payables       
 (and related assets/liabilities) – (3) (4) (4) 4 (7) 
 Operational EBITA 787 401 239 141 (143) 1,425 
        
 Operational EBITA margin (%) 21.1% 20.4% 15.4% 15.3% n.a. 17.5% 
(1) Includes impairment of certain assets. 
 
In the three months ended June 30, 2023, Certain other non-operational items in the table above includes the following:  
  Three months ended June 30, 2023 
     Robotics &   
    Process Discrete Corporate  
 ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated 
 Certain other non-operational items:       
 Other income/expense relating to the        
 Power Grids joint venture – – – – (7) (7) 
 Business transformation costs(1) 5 – – 1 42 48 
 Changes in pre-acquisition estimates 1 – – – 3 4 
 Certain other fair values changes,       
 including asset impairments – – – – (7) (7) 
 Other non-operational items – 1 – – 2 3 
 Total 6 1 – 1 33 41 
(1) Amounts include ABB Way process transformation costs of $41 million for the three months ended June 30, 2023.

===== SIDA 53 =====

40 Q2 2023 FINANCIAL INFORMATION  
  Three months ended June 30, 2022 
      Corporate and  
     Robotics & Other and  
    Process Discrete Intersegment  
 ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated 
 Total revenues 3,414 1,626 1,529 732 (50) 7,251 
 Foreign exchange/commodity timing        
 differences in total revenues:       
 Unrealized gains and losses       
 on derivatives 30 (1) 37 9 10 85 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized 6 1 5 – 26 38 
 Unrealized foreign exchange movements        
 on receivables (and related assets) (18) (4) (10) (8) (13) (53) 
 Operational revenues 3,432 1,622 1,561 733 (27) 7,321 
        
 Income (loss) from operations 474 231 175 43 (336) 587 
 Acquisition-related amortization 28 7 1 19 4 59 
 Restructuring, related and       
 implementation costs(1) 8 – – 2 254 264 
 Changes in obligations related to       
 divested businesses – – – – (3) (3) 
 Gains and losses from sale of businesses  – 4 – – – 4 
 Acquisition- and divestment-related expenses       
 and integration costs 10 3 36 2 (1) 50 
 Certain other non-operational items 20 – – (1) 46 65 
 Foreign exchange/commodity timing        
 differences in income from operations:       
 Unrealized gains and losses on derivatives       
 (foreign exchange, commodities,        
 embedded derivatives) 74 23 12 1 8 118 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized 4 1 7 (1) 22 33 
 Unrealized foreign exchange movements        
 on receivables/payables       
 (and related assets/liabilities) (13) (3) (7) (5) (13) (41) 
 Operational EBITA 605 266 224 60 (19) 1,136 
        
 Operational EBITA margin (%) 17.6% 16.4% 14.3% 8.2% n.a. 15.5% 
(1) Includes impairment of certain assets. 
 
In the three months ended June 30, 2022, Certain other non-operational items in the table above includes the following:  
  Three months ended June 30, 2022 
     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 – – – – 2 2 
 Regulatory, compliance and legal costs – – – – 5 5 
 Business transformation costs(1) 1 – – – 39 40 
 Changes in pre-acquisition estimates – – – (2) – (2) 
 Other non-operational items 19 – – 1 – 20 
 Total 20 – – (1) 46 65 
(1) Amounts include ABB Way process transformation costs of $39 million for the three months ended June 30, 2022.

===== SIDA 54 =====

41 Q2 2023 FINANCIAL INFORMATION  
  Six months ended June 30, 2023 
      Corporate and  
     Robotics & Other and  
    Process Discrete Intersegment  
 ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated 
 Total revenues 7,325 3,921 2,989 1,859 (72) 16,022 
 Foreign exchange/commodity timing       
 differences in total revenues:       
 Unrealized gains and losses       
 on derivatives (8) (5) 16 8 4 15 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized (5) – 6 – – 1 
 Unrealized foreign exchange movements        
 on receivables (and related assets) (7) (6) (12) (8) (9) (42) 
 Operational revenues 7,305 3,910 2,999 1,859 (77) 15,996 
        
 Income (loss) from operations 1,368 733 470 234 (309) 2,496 
 Acquisition-related amortization 44 17 3 39 6 109 
 Restructuring, related and       
 implementation costs(1) 12 2 4 – 23 41 
 Changes in obligations related to       
 divested businesses 1 – – – (6) (5) 
 Gains and losses from sale of businesses – – (26) – – (26) 
 Acquisition- and divestment-related expenses        
 and integration costs 19 12 1 4 9 45 
 Certain other non-operational items 9 3 – 3 25 40 
 Foreign exchange/commodity timing        
 differences in income from operations:       
 Unrealized gains and losses on derivatives       
 (foreign exchange, commodities,        
 embedded derivatives) 16 5 (10) 6 (7) 10 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized (2) – 7 – 1 6 
 Unrealized foreign exchange movements        
 on receivables/payables       
 (and related assets/liabilities) (3) (5) (5) (5) 4 (14) 
 Operational EBITA 1,464 767 444 281 (254) 2,702 
        
 Operational EBITA margin (%) 20.0% 19.6% 14.8% 15.1% n.a. 16.9% 
(1) Includes impairment of certain assets. 
 
In the six months ended June 30, 2023, Certain other non-operational items in the table above includes the following:  
  Six months ended June 30, 2023 
     Robotics &   
    Process Discrete Corporate  
 ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated 
 Certain other non-operational items:       
 Other income/expense relating to the       
 Power Grids joint venture – – – – (20) (20) 
 Business transformation costs(1) 9 – – 2 71 82 
 Changes in pre-acquisition estimates 1 – – – 3 4 
 Certain other fair values changes,       
 including asset impairments 1 1 – 1 (9) (6) 
 Other non-operational items (2) 2 – – (20) (20) 
 Total 9 3 – 3 25 40 
(1) Amounts include ABB Way process transformation costs of $71 million for the six months ended June 30, 2023.

===== SIDA 55 =====

42 Q2 2023 FINANCIAL INFORMATION  
  Six months ended June 30, 2022 
      Corporate and  
     Robotics & Other and  
    Process Discrete Intersegment  
 ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated 
 Total revenues 6,650 3,198 3,035 1,462 (129) 14,216 
 Foreign exchange/commodity timing        
 differences in total revenues:       
 Unrealized gains and losses       
 on derivatives 19 3 36 11 8 77 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized 7 2 2 – 30 41 
 Unrealized foreign exchange movements        
 on receivables (and related assets) (18) (6) (7) (5) (15) (51) 
 Operational revenues 6,658 3,197 3,066 1,468 (106) 14,283 
        
 Income (loss) from operations 955 485 326 65 (387) 1,444 
 Acquisition-related amortization 56 15 2 40 6 119 
 Restructuring, related and       
 implementation costs(1) 10 8 5 3 254 280 
 Changes in obligations related to       
 divested businesses – – – – (17) (17) 
 Gains and losses from sale of businesses  – 4 – – – 4 
 Acquisition- and divestment-related expenses       
 and integration costs 28 8 69 3 1 109 
 Certain other non-operational items 23 – – (1) 77 99 
 Foreign exchange/commodity timing        
 differences in income from operations:       
 Unrealized gains and losses on derivatives       
 (foreign exchange, commodities,        
 embedded derivatives) 53 22 18 4 3 100 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized 6 1 4 (1) 25 35 
 Unrealized foreign exchange movements        
 on receivables/payables       
 (and related assets/liabilities) (14) (3) (4) (4) (15) (40) 
 Operational EBITA 1,117 540 420 109 (53) 2,133 
        
 Operational EBITA margin (%) 16.8% 16.9% 13.7% 7.4% n.a. 14.9% 
(1) Includes impairment of certain assets. 
 
In the six months ended June 30, 2022, certain other non-operational items in the table above includes the following:  
  Six months ended June 30, 2022 
     Robotics &   
    Process Discrete Corporate  
 ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated 
 Certain other non-operational items:       
 Other income/expense related to the       
 Power Grids joint venture – – – – 37 37 
 Regulatory, compliance and legal costs – – – – 4 4 
 Business transformation costs 2 – – – 64 66 
 Changes in pre-acquisition estimates 1 – – (2) – (1) 
 Certain other fair values changes,       
  including asset impairments – – – – (34) (34) 
 Other non-operational items 20 – – 1 6 27 
 Total 23 – – (1) 77 99 
(1) Amounts include ABB Way process transformation costs of $64 million for the six months ended June 30, 2022.

===== SIDA 56 =====

43 Q2 2023 FINANCIAL INFORMATION  
Net debt 
Definition  
Net debt 
Net debt is defined as Total debt less Cash and marketable securities.  
Total debt 
Total debt is the sum of Short-term debt and current maturities of long-term debt, and Long-term debt. 
Cash and marketable securities 
Cash and marketable securities is the sum of Cash and equivalents, Restricted cash (current and non -current) and Marketable securities and short -term 
investments. 
Reconciliation 
 ($ in millions)  June 30, 2023 December 31, 2022 
 Short-term debt and current maturities of long-term debt  3,849 2,535 
 Long-term debt  4,451 5,143 
 Total debt  8,300 7,678 
 Cash and equivalents  2,923 4,156 
 Restricted cash - current  19 18 
 Marketable securities and short-term investments  1,193 725 
 Cash and marketable securities  4,135 4,899 
 Net debt  4,165 2,779 
 
 
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) June 30, 2023 December 31, 2022 
 Total stockholders' equity 13,340 13,187 
 Net debt (as defined above) 4,165 2,779 
 Net debt / Equity ratio 0.31 0.21 
 
 
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) June 30, 2023 June 30, 2022 
 Income from operations for the three months ended:    
 September 30, 2022 / 2021 708 852 
 December 31, 2022 / 2021 1,185 2,975 
 March 31, 2023 / 2022 1,198 857 
 June 30, 2023 / 2022 1,298 587 
 Depreciation and Amortization for the three months ended:    
 September 30, 2022 / 2021 198 220 
 December 31, 2022 / 2021 199 216 
 March 31, 2023 / 2022 191 210 
 June 30, 2023 / 2022 196 207 
 EBITDA  5,173 6,124 
 Net debt (as defined above) 4,165 4,235 
 Net debt / EBITDA 0.8 0.7

===== SIDA 57 =====

44 Q2 2023 FINANCIAL INFORMATION  
Net working capital as a percentage of revenues 
Definition  
Net working capital as a percentage of revenues 
Net working capital as a percentage of revenues is calculated as Net working capital divided by Adjusted revenues for the tra iling twelve months. 
Net working capital 
Net working capital is the sum of (i) receivables, net, (ii) contract assets, (iii) inventories, net, and (iv) prepaid expenses; less (v ) accounts payable, trade, 
(vi) contract liabilities (including non-current amounts) 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, (e) liabilities related to certain other 
restructuring-related activities and (f) liabilities related to the divestment of the Power Grids business ); and including the amounts related to these 
accounts which have been presented as either assets or liabilities held for sale but excluding any amounts included in discontinued operations . 
Adjusted revenues for the trailing twelve months  
Adjusted revenues for the trailing twelve months includes total revenues recorded by ABB in the twelve months preceding the r elevant balance sheet 
date adjusted to eliminate revenues of divested businesses and the estimated impact of annualizing revenues of certain acquisitions which were 
completed in the same trailing twelve-month period. 
Reconciliation 
 ($ in millions, unless otherwise indicated) June 30, 2023 June 30, 2022 
 Net working capital:   
 Receivables, net 7,481 6,960 
 Contract assets 1,010 965 
 Inventories, net 6,448 5,595 
 Prepaid expenses 290 262 
 Accounts payable, trade (4,881) (4,805) 
 Contract liabilities (2,394) (2,141) 
 Other current liabilities(1) (3,506) (3,173) 
 Net working capital in assets and liabilities held for sale  137 – 
 Net working capital 4,585 3,663 
 Total revenues for the three months ended:   
 September 30, 2022 / 2021 7,406 7,028 
 December 31, 2022 / 2021 7,824 7,567 
 March 31, 2023 / 2022 7,859 6,965 
 June 30, 2023 / 2022 8,163 7,251 
 Adjustment to annualize/eliminate revenues of certain acquisitions/divestments  (162) (213) 
 Adjusted revenues for the trailing twelve months  31,090 28,598 
 Net working capital as a percentage of revenues (%)  14.7% 12.8% 
(1) Amounts exclude $771 million and $1,104 million at June 30, 2023 and 2022, 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, (e) liabilities related to certain restructuring-related activities and (f) liabilities 
related to the divestment of the Power Grids business.

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