Kvartalsrapport Q3 2024

47 Q3 2024 FINANCIAL INFORMATION  
Return on Capital employed (ROCE) – Trailing twelve months 
Definition 
Return on Capital employed (ROCE) – Trailing twelve months 
Return on Capital employed (ROCE) – Trailing twelve months is calculated as Operational EBITA after tax for the trailing twelve months, divided by the 
average of the opening and closing Capital employed for each of the four quarters during the trailing twelve-month period (4 quarter average).  
Capital employed 
Capital employed is calculated as the sum of Adjusted total fixed assets and Net working capital (as defined above). 
Adjusted total fixed assets 
Adjusted total fixed assets is the sum of (i) property, plant and equipment, net, (ii) goodwill, (iii) other intangible assets, net, (iv) investments in 
equity-accounted companies, (v) operating lease right-of-use assets, and (vi) fixed assets included in assets held for sale,  less (vii) deferred tax liabilities 
recognized in certain acquisitions. 
Net working capital  
Net working capital is the sum of (i) receivables, net, (ii) contract assets, (iii) inventories, net, and (iv) prepaid expens es; less (v) accounts payable, trade, 
(vi) contract liabilities and (vii) other current liabilities (excluding primarily: (a) income taxes payable, (b) current der ivative 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.  
Notional tax on Operational EBITA 
The Notional tax on Operational EBITA is computed using the adjusted group effective tax rate multiplied by Operational EBITA .  
Adjusted Group effective tax rate 
The Adjusted Group effective tax rate is computed by dividing a n adjusted income tax expense by an adjusted pre -tax income. Certain amounts 
recorded in income before taxes and the related income tax expense (primarily due to gains and losses from sale of businesses ) are removed from the 
reported amounts when computing these adjusted amounts. Certain other amounts recorded in income tax expense are also exclude d from the 
computation to determine the Adjusted Group effective tax rate.  
Reconciliation 
 ($ in millions, unless otherwise indicated) 2024 Q3 2024 Q2 2024 Q1 2023 Q4 2023 Q3 
 Adjusted total fixed assets:      
 Property, plant and equipment, net 4,248 4,095 4,047 4,142 3,891 
 Goodwill 10,582 10,525 10,494 10,561 10,356 
 Other intangible assets, net 1,036 1,089 1,128 1,223 1,181 
 Investments in equity-accounted companies 185 189 178 187 186 
 Operating lease right-of-use assets 873 861 863 893 850 
 Fixed assets included in assets held for sale  176 – – – – 
 Total fixed assets 17,100 16,759 16,710 17,006 16,464 
 Less: Deferred taxes recognized in certain acquisitions (1) (253) (265) (281) (297) (312) 
 Adjusted total fixed assets 16,847 16,494 16,429 16,709 16,152 
 Net working capital - (as defined above) 3,603 3,607 3,588 3,257 4,041 
 Capital employed 20,450 20,101 20,017 19,966 20,193 
       
 Operational EBITA for the three months ended 1,553 1,564 1,417 1,333  
       
 Average Capital employed (4 quarters) 20,101     
       
 Operational EBITA for the trailing twelve months  5,867     
 Notional tax on Operational EBITA (1,467)     
 Operational EBITA after tax for the trailing twelve months 4,400     
 Return on Capital employed (ROCE) - Trailing twelve months 21.9%     
(1) Amount relates to GEIS acquired in 2018, B&R acquired in 2017, Thomas & Betts acquired in 2012 and Baldor acquired in 2011.

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48 Q3 2024 FINANCIAL INFORMATION  
Return on Capital employed (ROCE) on Net Operating assets 
Definition 
Return on Capital employed (ROCE) on Net Operating assets  
Return on Capital employed on Net Operating assets is calculated as Operational EBITA after tax, divided by the average of the period’s opening and 
closing Capital employed on Net Operating assets. 
Capital employed on Net Operating assets 
Capital employed on Net Operating assets is calculated as  the sum of Operating assets and Net working capital (as defined on the previous page). 
Operating assets 
Operating assets is the sum of (i) property, plant and equipment, net,  (ii) capitalized software for internal use, net, (iii) investments in equity-accounted 
companies, (iv) operating lease right-of-use assets, and (v) fixed assets included in assets held for sale, as applicable.  
Return on Capital employed (ROCE) on Net Operating assets – Trailing twelve months 
Return on Capital employed (ROCE) on Net Operating assets is calculated as Operational EBITA after tax, divided by the average of the period’s opening 
and closing Capital employed on Net Operating assets for each of the four quarters during the trailing twelve -month period (4 quarter average).  
Reconciliation – ROCE on Net Operating assets 
  December 31,  
 ($ in millions, unless otherwise indicated) 2023 2022 
 Operating assets:   
 Property, plant and equipment, net 4,142 3,911 
 Capitalized software for internal use, net 129 110 
 Investments in equity-accounted companies 187 130 
 Operating lease right-of-use assets 893 841 
 Total Operating assets 5,351 4,992 
 Net working capital - (as defined above) 3,257 3,216 
 Capital employed on Net Operating assets 8,608 8,208 
    
 Capital employed on Net Operating assets:   
  - at December 31, 2022 8,208  
  - at December 31, 2023 8,608  
 Average Capital employed on Net Operating assets  8,408  
    
 Operational EBITA for the year ended 5,427  
 Notional tax on Operational EBITA (as defined above)  (1,248)  
 Operational EBITA after tax 4,179  
 ROCE on Net Operating assets 49.7%  
 
Reconciliation – Return on Capital employed (ROCE) on Net Operating assets – Trailing twelve months 
 ($ in millions, unless otherwise indicated) 2024 Q3 2024 Q2 2024 Q1 2023 Q4 2023 Q3 
 Operating assets:      
 Property, plant and equipment, net 4,248 4,095 4,047 4,142 3,891 
 Capitalized software for internal use, net  119 116 124 129 104 
 Investments in equity-accounted companies 185 189 178 187 186 
 Operating lease right-of-use assets 873 861 863 893 850 
 Fixed assets included in assets held for sale  11 – – – – 
 Total Operating assets 5,436 5,261 5,212 5,351 5,031 
 Net working capital - (as defined above) 3,603 3,607 3,588 3,257 4,041 
 Capital employed on Net Operating assets 9,039 8,868 8,800 8,608 9,072 
       
 Operational EBITA for the three months ended  1,553 1,564 1,417 1,333  
       
 Average Capital employed on Net Operating assets (4 quarters)  8,833     
       
 Operational EBITA for the trailing twelve months  5,867     
 Notional tax on Operational EBITA (as defined above)  (1,467)     
 Operational EBITA after tax for the trailing twelve months  4,400     
 ROCE on Net Operating assets - Trailing twelve months  49.8%

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— 
ABB Ltd 
Corporate Communications  
P.O. Box 8131  
805 0 Zurich  
Switzerland  
Tel: +41 (0)43  317 71 11 
 
www.abb.com