Kvartalsrapport Q3 2023

45 Q3 2023 FINANCIAL I NFORMATION  
Free cash flow conversion to net income 
Definition 
Free cash flow conversion to net income 
Free cash flow conversion to net income is calculated as free cash flow divided by Adjusted net income attributable to ABB . 
Adjusted net income attributable to ABB 
Adjusted net income attributable to ABB is calculated as net income attributable to ABB adjusted for: (i) impairment of goodw ill, (ii) losses from 
extinguishment of debt, and (iii) gains arising on the sale of the Power Conversion Division, the Hitachi Energy Joint Venture and the Power Grids 
business, the latter being included in discontinued operations.  
Free cash flow 
Free cash flow is calculated as net cash provided by operating activities adjusted for: (i) purchases of property, plant and equipment and intangible 
assets, and (ii) proceeds from sales of property, plant and equipment . 
Free cash flow for the trailing twelve months 
Free cash flow for the trailing twelve months includes free cash flow recorded by ABB in the twelve months preceding the rele vant balance sheet date. 
Net income for the trailing twelve months 
Net income for the trailing twelve months includes net income recorded by ABB  (as adjusted) in the twelve months preceding the relevant balance sheet 
date. 
 
Free cash flow conversion to net income 
  Twelve months to 
 ($ in millions, unless otherwise indicated) September 30, 2023 December 31, 2022 
 Net cash provided by operating activities – continuing operations 3,123 1,334 
 Adjusted for the effects of continuing operations:    
 Purchases of property, plant and equipment and intangible assets  (765) (762) 
 Proceeds from sale of property, plant and equipment  109 127 
 Free cash flow from continuing operations  2,467 699 
 Net cash used in operating activities – discontinued operations (43) (47) 
 Free cash flow 2,424 652 
 Adjusted net income attributable to ABB (1) 3,859 2,442 
 Free cash flow conversion to net income 63% 27% 
(1) Adjusted net income attributable to ABB for the year ended December 31, 2022, is adjusted to exclude the gain on the sale of Hitachi Energy Joint Venture of $43 million 
and reductions to the gain on the sale of Power Grids of $10 million.  
 
Reconciliation of the trailing twelve months to September  30, 2023  
   Continuing operations  
Discontinued 
operations  
 ($ in millions) 
Net cash provided by 
continuing operating 
activities 
Purchases of 
property, plant and 
equipment and 
intangible assets 
Proceeds  
from sale of 
property, plant and 
equipment  
Net cash provided 
by (used in) 
discontinued 
operating activities 
Adjusted net income 
attributable to ABB(1) 
 Q4 2022 720 (259) 42  (33) 1,088 
 Q1 2023 283 (151) 31  (1) 1,036 
 Q2 2023 759 (180) 26  1 906 
 Q3 2023 1,361 (175) 10  (10) 829 
 Total for the trailing twelve       
 months to September 30, 2023 3,123 (765) 109  (43) 3,859 
(1) Adjusted net income attributable to ABB for Q3 2023, is adjusted to exclude the gain on sale of the Power Conversion Division of $53 million, while Q4 2022, is adjusted to 
exclude reductions to the gain on the sale of Power Grids of $(1) million. In addition, Q4 2022 is also adjusted to exclude the gain on the sale of Hitachi Energy Joint Venture 
of $43 million.

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46 Q3 2023 FINANCIAL I NFORMATION  
Net finance expenses  
Definition  
Net finance expenses is calculated as Interest and dividend income less Interest and other finance expense.  
Reconciliation 
  Nine months ended September 30, Three months ended September 30, 
 ($ in millions) 2023 2022 2023 2022 
 Interest and dividend income 115 50 37 17 
 Interest and other finance expense (197) (107) (73) (45) 
 Net finance expenses (82) (57) (36) (28) 
 
 
 
Book-to-bill ratio 
Definition  
Book-to-bill ratio is calculated as Orders received divided by Total revenues. 
Reconciliation 
  Nine months ended September 30, 
  2023 2022 
 ($ in millions, except Book-to-bill presented as a ratio) Orders Revenues Book-to-bill Orders Revenues Book-to-bill 
 Electrification 11,794 10,886 1.08 11,797 10,121 1.17 
 Motion 6,285 5,868 1.07 6,247 4,900 1.27 
 Process Automation 5,665 4,543 1.25 5,079 4,493 1.13 
 Robotics & Discrete Automation 2,516 2,788 0.90 3,318 2,290 1.45 
 Corporate and Other (incl. intersegment eliminations) (91) (95) n.a. (73) (182) n.a. 
 ABB Group 26,169 23,990 1.09 26,368 21,622 1.22 
        
 
  Three months ended September 30, 
  2023 2022 
 ($ in millions, except Book-to-bill presented as a ratio) Orders Revenues Book-to-bill Orders Revenues Book-to-bill 
 Electrification 3,693 3,561 1.04 3,772 3,471 1.09 
 Motion 1,886 1,947 0.97 1,966 1,702 1.16 
 Process Automation 1,883 1,554 1.21 1,568 1,458 1.08 
 Robotics & Discrete Automation 665 929 0.72 901 828 1.09 
 Corporate and Other (incl. intersegment eliminations) (75) (23) n.a. (19) (53) n.a. 
 ABB Group 8,052 7,968 1.01 8,188 7,406 1.11

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— 
ABB Ltd 
Corporate Communications 
P.O. Box 8131 
8050 Zurich 
Switzerland  
Tel: +41 (0)43 317 71 11 
 
www.abb.com