Kvartalsrapport Q4 2023

Automatiskt nyckeltalsindex

Detta är sökträffar och textkontext, inte verifierade eller normaliserade redovisningsvärden.

Fulltext

Dokumentet är delat för att hålla varje sida lätt att hämta. Del 1 · Del 2

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

— 
ZURICH, SWITZERLAND, FEBRUARY 1, 2024 
Q4 2023 results 
Solid finish to a record year 
 
Q4 2023 
• Orders $7.6 billion, 0%; comparable1 0%  
• Revenues $8.2 billion, +5%; comparable +6%  
• Income from operations $1,116 million; margin 13.5% 
• Operational EBITA1 $1,333 million; margin1 16.3% 
• Basic EPS $0.50, -18%2 
• Cash flow from operating activities $1,897 million; +176% 
FY 2023 
• Orders $33.8 billion, -1%; comparable1 +3%  
• Revenues $32.2 billion, +9%; comparable +14%  
• Income from operations $4,871 million; margin 15.1% 
• Operational EBITA1 $5,427 million; margin1 16.9% 
• Basic EPS $2.02, +55%2 
• Cash flow from operating activities $4,290 million; +233% 
• Dividend proposal of CHF0.87 per share 
 
KEY FIGURES         
   CHANGE   CHANGE 
($ millions, unless otherwise indicated) Q4 2023 Q4 2022 US$ Comparable1 FY 2023 FY 2022 US$ Comparable1 
Orders 7,649 7,620 0% 0% 33,818 33,988 -1% 3% 
Revenues 8,245 7,824 5% 6% 32,235 29,446 9% 14% 
Gross Profit 2,848 2,658 7%  11,214 9,710 15%  
as % of revenues 34.5% 34.0% +0.5 pts  34.8% 33.0% +1.8 pts  
Income from operations 1,116 1,185 -6%  4,871 3,337 46%  
Operational EBITA1 1,333 1,146 16% 13% 3  5,427 4,510 20% 20% 3  
as % of operational revenues1 16.3% 14.8% +1.5 pts  16.9% 15.3% +1.6 pts  
Income from continuing operations, net of tax  946 1,168 -19%  3,848 2,637 46%  
Net income attributable to ABB 921 1,132 -19%  3,745 2,475 51%  
Basic earnings per share ($)  0.50 0.61 -18%2  2.02 1.30 55%2  
Cash flow from operating activities4 1,897 687 176%  4,290 1,287 233%  
          
1 For a reconciliation of non-GAAP measures, see “supplemental reconciliations and definitions” in the attached Q4 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 
 
 
— 
Q4 2023 
Full year 
Press Release 
 
— 
“Our strong 2023 delivery was the result of both our leading market position in electrification 
and automation, as well as ABB being a more agile and efficient company in its execution. 
With our upgraded financial and sustainability targets we look to the future with confidence.” 
Björn Rosengren, CEO

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

AB B  IN TE RIM RE P ORT  I Q4  2 02 3 2 
 
The fourth quarter of 2023, was a solid end to a fantastic 
year. We improved operational performance and delivered a 
very strong cash flow year-on-year. We increased the annual 
return on capital employed (ROCE) by 460bps1 to 21.1% and 
we are utilizing our strong balance sheet by recently signing 
seven small bolt-on acquisitions, with the majority adding 
additional embedded software and AI capabilities to our 
customer offerings. We delivered in line with our guidance, 
and I am pleased with the solid finish to the year. 
Comparable order intake remained stable year-on-year, 
with increases noted in three out of four business areas. 
Most customer segments improved or remained stable, 
with softer demand noted mainly in residential 
construction and discrete automation, with the latter 
hampered by normalizing order patterns as well as by 
weakness in the robotics market. In tune with the historical 
fourth quarter pattern the book-to-bill ratio was below one, 
at 0.93, when revenues tend to be supported by end-of-the-
year systems deliveries.  
Revenues amounted to $8,245 million and increased by 5% 
(6% comparable), supported by both higher volumes and 
contribution from earlier implemented price increases. 
Thanks to our ongoing focus on improving the quality of 
revenues, the gross margin improved by 50 basis points to 
34.5%, contributing to the Operational EBITA margin 
improvement of 150 basis points to 16.3%. The contribution 
from mainly price and leverage on higher volumes clearly 
offset the impact mainly from higher labor costs. This 
represents the highest fourth quarter margin in recent 
history. The historical pattern of a sequentially softer fourth 
quarter margin repeated, as expected. 
In the quarter we generated Cash flow from operating 
activities of $1.9 billion. This contributed to Free Cash Flow 
of $3.7 billion for the year, even stronger than what we 
originally expected.  
In my view, the strong 2023 performance is evidence of ABB 
being a more efficient and agile company, but also of how 
demand for our offerings benefits from our leading 
position in markets accelerating the energy transition 
towards electrification and increased automation and 
digitalization. We feel confident in future performance, 
which led us to raising our financial and sustainability 
targets at our Capital Markets Day in November. In short, 
we are targeting higher growth and higher returns while 
enabling a net zero world. 
Looking to 2024, the geopolitical situation adds 
uncertainty, however we currently expect another year of 
good performance. We expect a positive book-to-bill and 
revenues to be supported by execution of parts of the $21.6 
billion order backlog. In the projects- and systems business 
we expect continued high customer activity, although we 
face high comparables from last year when large orders 
came through at a very high level. In total, order growth 
year-on-year should show stronger momentum in the latter 
part of the year when comparables ease. We expect to 
improve on comparable revenues as well as on Operational 
EBITA margin, and cash flow should benefit from continued 
strong operational performance and our continued focus 
on net working capital efficiency. 
Considering the improving performance, robust cash flow 
and a solid balance sheet, the Board of Directors proposes 
an ordinary dividend of CHF0.87 per share, up from 
CHF 0.84 in the previous year. We also plan to continue 
utilizing share buybacks as a tool to return excess cash to 
shareholders also during 2024. 
 
 
Björn Rosengren 
CEO 
 
 
In the first quarter of 2024, we anticipate a low to mid-
single digit comparable revenue growth and the 
Operational EBITA margin to remain stable or slightly 
improve year-on-year. 
In full-year 2024, we expect a positive book-to-bill, 
comparable revenue growth to be about 5% and the 
Operational EBITA margin to slightly improve from the 2023 
level of 16.9%.
 
 
Outlook 
 
 
CEO summary

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

AB B  IN TE RIM RE P ORT  I Q4  2 02 3 3 
 
Orders were flat year-on-year (comparable 0%) at $7,649 
million, with strong contribution from large orders, 
including one in business area Process Automation for 
approximately $150 million. This offset a mid-single digit 
order decline in the short-cycle businesses, year-on-year. 
Comparable orders increased in three business areas, 
while Robotics & Discrete Automation declined sharply 
as customers for machine automation continued the 
sequential trend of normalizing order patterns, and due 
to inventory adjustments in a declining robotics market. 
These inventory adjustments are expected to level off 
towards the end of the first quarter. 
Orders increased in two out of the three regions. 
Americas was up by 3% (comparable 3%) driven by 
strong improvement of 5% (comparable 6%) in the 
United States. Asia, Middle East and Africa remained 
overall stable (up comparable 2%) where the strong 
development in countries like India and South Korea 
more than offset the decline in China of 8% (comparable 
7%). Europe softened by 2% (comparable 5%) due mainly 
to a double-digit decline in Germany. 
Orders in the automotive segment softened slightly 
year-on-year due to timing impacts for some larger 
orders. General industry and consumer-related robotics 
segments declined. The machine builder segment 
declined as customers normalized order patterns in the 
face of shortening delivery lead times. 
In transport & infrastructure, there were positive 
developments in marine, ports and renewables.  
The buildings segment declined overall, weighed down by 
the residential construction segment where the quarterly 
pattern included stabilization in Europe and declines in 
China and the United States. The commercial construction 
segment was broadly stable, compared with last year, in the 
United States and Europe while China declined.  
Demand in the process-related businesses was strong 
in most segments, with particular strength in the oil & 
gas segment. It held up well also for refining, 
petrochemicals and the energy-related low carbon 
segments. Pulp & paper remained stable.  
Revenues amounted to $8,245 million and the growth of 5% 
year-on-year (comparable 6%) was driven by both higher 
volumes and a positive price development. Execution of the 
strong order backlog supported revenue growth and more 
than offset weakness in parts of the short-cycle demand. 
Consequently, three out of four business areas improved 
comparable revenues, with only Robotics & Discrete 
Automation declining.  
 
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 
  
 Q4 Q4 
Change year-on-year Orders Revenues 
Comparable 0% 6% 
FX 1% 1% 
Portfolio changes -1% -2% 
Total 0% 5% 
 
Orders by region 
($ in millions, 
unless otherwise 
indicated) 
  CHANGE 
Q4 2023 Q4 2022 US$ Comparable 
Europe 2,554 2,604 -2% -5% 
The Americas 2,985 2,898 3% 3% 
Asia, Middle East 
and Africa 2,110 2,118 0% 2% 
ABB Group 7,649 7,620 0% 0% 
 
Revenues by region 
($ in millions, 
unless otherwise 
indicated) 
  CHANGE 
Q4 2023 Q4 2022 US$ Comparable 
Europe 2,951 2,765 7% 4% 
The Americas 2,847 2,555 11% 14% 
Asia, Middle East 
and Africa 2,447 2,504 -2% 0% 
ABB Group 8,245 7,824 5% 6% 
 
 
     
 
 
Orders and revenues

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

AB B  IN TE RIM RE P ORT  I Q4  2 02 3 4 
 
Gross profit 
Gross profit increased by 7% (6% constant currency) to $2,848 
million, reflecting a gross margin improvement of 50 basis 
points to 34.5%. Gross margin improved in all four business 
areas. 
Income from operations 
Income from operations amounted to $1,116 million and 
dropped by 6% year-on-year, mainly due to higher 
restructuring and transformation related costs year-on-year, 
and the provision release related to the non-core operations 
which supported last year’s result. Margin on Income from 
operations was 13.5%, down by 160 basis points year-on-year. 
 
Operational EBITA  
Operational EBITA improved by 16% year-on-year to $1,333 
million and the margin was up by 150 basis points to 16.3%. 
Key drivers to the higher earnings were the impacts from 
robust pricing activities and operational leverage on higher 
volumes, which more than offset adverse impacts from mainly 
increased labor costs. Selling, general and administrative 
expenses increased in relation to revenues to 18%, from 16.6% 
last year. Operational EBITA in Corporate and Other amounted 
to -$67 million, of which -$34 million related to the underlying 
Corporate costs which were lower than expected mainly due 
to real estate book gains. The remaining-$33 million related to 
the E-mobility business where operational performance was 
hampered by the ongoing reorganization to ensure a more 
focused portfolio, and some inventory-related provisions. 
While E-mobility is on track towards the improved portfolio, 
the financial benefits may not be visible until towards the end 
of 2024. Thus, we only expect a slight improvement in the E-
mobility Operational EBITA, year-on-year.  
Net finance expenses 
Net finance expense was $28 million, an increase from last 
year’s level of $1 million which was unusually low due to reversal 
of interest charges related to income tax risks.  
Income tax 
In line with the historical pattern, the fourth quarter tax rate 
was low. Income tax expense was $136 million with an effective 
tax rate of 12.6%, lower than expected mainly due to the 
geographical profit mix and releases of valuation allowances on 
deferred tax assets.  
Net income and earnings per share 
Net income attributable to ABB was $921 million, representing a 
reduction of 19% from last year, as the improved operational 
performance this year did not offset the positive impacts from 
last year’s benefits from the provision reduction in non-core 
operations and a reduction in tax valuation allowances. This 
resulted in basic earnings per share of $0.50, down from $0.61 
year-on-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) Q4 2023 Q4 2022 
Corporate and Other   
E-mobility (33) (3) 
Corporate costs, intersegment 
eliminations and other1 (34) (72) 
Total (67) (75) 
1 Majority of which relates to underlying corporate

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

AB B  IN TE RIM RE P ORT  I Q4  2 02 3 5  
 
Net working capital 
Net working capital amounted to $3,257 million, 
increasing slightly year-on-year from $3,216 million 
driven mainly by an increase in receivables on the back 
of higher revenues, which was however largely offset by 
customer advances. Net working capital decreased 
sequentially from $4,041 million driven mainly by sound 
trade net working capital management resulting in 
lower inventories and receivables. Net working capital 
as a percentage of revenues1 was 10.2%, down 
sequentially from 12.8% and year-on-year 11.1%. 
Capital expenditures 
Purchases of property, plant and equipment and 
intangible assets amounted to $264 million.  
Net debt 
Net debt1 amounted to $1,991 million at the end of the 
quarter and decreased from $2,779 million year-on-year 
and declined sequentially from $2,872 million. The 
sequential net debt decrease was driven by the strong 
free cash flow in the quarter. 
Cash flows 
Cash flow from operating activities was $1,897 million, 
representing a steep year-on-year increase from  
$687 million. All business areas increased cash flow from 
operating activities in the quarter. The increase was driven 
by better operational performance and a strong sequential 
reduction of net working capital in the quarter driven by 
lower inventories and receivables as well as higher 
customer advances. Additionally, the prior year quarter was 
hampered by settlements for the Kusile project. 
Share buyback program 
A share buyback program of up to $1 billion was launched 
on April 3, 2023. During the fourth quarter, 6,143,500 shares 
were repurchased on the second trading line for 
approximately $230 million. ABB’s total number of issued 
shares, including shares held in treasury, amounts to 
1,882,002,575. 
 
 
 
Balance sheet & Cash flow 
 
-5’000
-2’000
1’000
2021 2022 2023
Net Cash (Net Debt) position
$ in millions
 
0%
50%
100%
150%
200%
250%
300%
350%
2021 2022 2023
Free cash flow conversion to net income¹, R12M
($ millions,  
unless otherwise indicated)  Dec. 31 
2023 
Dec. 31 
2022 
Short term debt and current 
maturities of long-term debt  2,607  2,535  
Long-term debt  5,221  5,143  
Total debt  7,828  7,678  
Cash & equivalents  3,891  4,156  
Restricted cash - current  18  18  
Marketable securities and  
short-term investments  1,928  725  
Cash and marketable securities  5,837  4,899  
Net debt (cash)*  1,991  2,779  
     
Net debt (cash)* to EBITDA ratio  0.4  0.7  
Net debt (cash)* to Equity ratio  0.14  0.21  
* At Dec. 31, 2023 and Dec. 31, 2022, net debt(cash) excludes net pension (assets)/liabilities 
of $(191) 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 Q4  2 02 3 6 
 
Orders and revenues 
Overall, the short-cycle businesses stabilized after some 
weak quarters, and customer activity in the project- and 
systems-related offering was robust. Total order intake 
was virtually unchanged from last year, limited by the 
divestment of the Power Conversion division (up 
comparable 2%) at $3,395 million, to some extent 
hampered by timing-related impacts in medium voltage 
orders. 
• Market activity was generally solid year-on-year 
outside of the areas of residential building, which 
stabilized in Europe at a low level but declined in both 
United States and China. In China weakness was 
noted in several customer segments. 
• From a geographical perspective order intake 
remained stable or improved in all three regions.  
Europe was up by 7% (comparable 4%). The 
underlying order intake improved slightly in the 
Americas, however portfolio changes limited total 
order growth to -1% (up comparable 1%). In Asia, 
Middle East and Africa orders declined by 5% (stable 
comparable 0%), the result of strength on comparable 
basis in countries like India offsetting weakness in 
China which declined by 9% (comparable 6%).  
 
• Revenues amounted to $3,698 million, representing 
an improvement of 6% (comparable 8%) from last 
year, supported by both volumes and price impacts.  
This was supported by all divisions except for Smart 
Buildings division where the short-cycle weakness in 
residential segment weighed on the total.   
Profit 
Strong operational performance clearly offset the small 
adverse impact from portfolio changes and triggered a 
26% improvement in Operational EBITA to $725 million 
and 310 basis points rise in Operational EBITA margin, 
year-on-year.  
• Strong gross margin improvement supported by 
contributions from price, leverage on higher volumes 
in production and improved operational efficiency. All 
of which more than offset slightly higher spend on 
labor, R&D and Selling, General and Administration.  
 
— 
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) Q4 2023 Q4 2022 US$ Comparable FY 2023 FY 2022 US$ Comparable 
Orders 3,395 3,385 0% 2% 15,189 15,182 0% 3% 
Order backlog 6,808 6,404 6% 14% 6,808 6,404 6% 14% 
Revenues 3,698 3,498 6% 8% 14,584 13,619 7% 10% 
Operational EBITA 725 575 26%  2,937 2,343 25%  
as % of operational revenues 19.7% 16.6% +3.1 pts  20.1% 17.2% +2.9 pts  
Cash flow from operating activities 1,068 857 25%  3,211 2,115 52%  
No. of employees (FTE equiv.) 50,300 50,600 -1%      
 
Growth 
  
 Q4 Q4 
Change year-on-year Orders Revenues 
Comparable 2% 8% 
FX 1% 1% 
Portfolio changes -3% -3% 
Total 0% 6%

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

AB B  IN TE RIM RE P ORT  I Q4  2 02 3 7 
 
Orders and revenues 
On continued robust performance in the long-cycle 
business with some large orders booked mainly in the 
Traction division, the total order intake reached $1,937 
million, up 17% (comparable 13%) from the relatively low 
comparable last year. Book-to-bill was at 1 for the quarter. 
• Stronger order momentum was noted in the process-
related segments of oil & gas, chemicals and mining 
as well as for food & beverage and rail. A weak 
construction market weighed on demand for HVAC, 
with some slowness noted also in pulp & paper.  
• Orders increased at a double-digit rate in all three 
regions. Europe increased by 30% (comparable 18%). The 
Americas improved by 14% (comparable 9%) with strong 
contribution from the United States being up by 14% 
(comparable 10%). Asia, Middle East and Africa was up 
by 10% (comparable 12%) including China being up by 
10% (comparable 11%). 
• Revenues amounted to $1,946 million and were up by 5% 
(comparable 2%) year-on-year, with price as the key 
positive driver. Execution of the order backlog supported 
revenue generation, with the improvement rate however 
hampered by lower deliveries in the motors business. 
Profit  
Operational EBITA remained stable year-on-year at  
$318 million. Revenues increased and gross margin improved 
somewhat, however the Operational EBITA margin declined 
by 80 basis points to 16.6%.  
• While price increases contributed to earnings, these were 
more than offset by one-time product quality costs which 
impacted Operational EBITA margin by approximately 60 
basis points.  
• The Large Motors & Generators division made a significant 
profitability improvement, however, this was more than 
offset mainly by the impacts from some underabsorption 
in parts of the low voltage motor manufacturing and higher 
labor costs, year-on-year.  
 
 
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) Q4 2023 Q4 2022 US$ Comparable FY 2023 FY 2022 US$ Comparable 
Orders 1,937 1,649 17% 13% 8,222 7,896 4% 4% 
Order backlog 5,343 4,726 13% 8% 5,343 4,726 13% 8% 
Revenues 1,946 1,845 5% 2% 7,814 6,745 16% 15% 
Operational EBITA 318 318 0%  1,475 1,163 27%  
as % of operational revenues 16.6% 17.4% -0.8 pts  18.9% 17.3% +1.6 pts  
Cash flow from operating activities 597 346 73%  1,532 853 80%  
No. of employees (FTE equiv.) 22,300 21,100 6%      
 
 
Growth 
  
 Q4 Q4 
Change year-on-year Orders Revenues 
Comparable 13% 2% 
FX 2% 1% 
Portfolio changes 2% 2% 
Total 17% 5%

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

AB B  IN TE RIM RE P ORT  I Q4  2 02 3 8 
 
Orders and revenues 
Market demand remained robust and order intake was 
up 7% (comparable 5%) to $1,870 million, with the 
fourth quarter being a strong finish to a year in which 
large orders contributed more than usual, which more 
than compensated for slowing momentum in the short-
cycle offering. Fourth quarter orders included a booking 
of approximately $150 million with long delivery 
schedule.  
• Consistent with recent quarters, customer activity 
was at a high level in all customer segments. The 
market environment remained at a high level in the 
traditional oil & gas segment, but there was also high 
activity in the low carbon-related areas such as 
hydrogen, LNG and carbon capture. Order momentum 
was strong in the marine segment. Customer activity 
was robust in the process-related segments of 
mining, metals and remained stable in pulp & paper. 
• Revenues improved strongly in all divisions and in all 
regions and amounted to $1,727 million, supported by 
execution of the order backlog. Book-to-bill was 
positive at 1.08. 
 
 
 
Profit 
Gross margin improved and revenues were higher, 
driving the 18% year-on-year increase in Operational 
EBITA to $239 million and the 80 basis points rise in 
Operational EBITA margin to 14.0%.  
• Improved project execution and the impact from 
higher volumes in the product business both 
contributed to the higher earnings, with some 
additional support stemming from price increases. 
 
• All divisions performed at a double-digit margin level, 
with the year-on-year profitability improvement led 
by the Measurement & Analytics business.  
 
 
5’500 
6’000 
6’500 
7’000 
7’500 
8’000 
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) Q4 2023 Q4 2022 US$ Comparable FY 2023 FY 2022 US$ Comparable 
Orders 1,870 1,746 7% 5% 7,535 6,825 10% 24% 
Order backlog 7,519 6,229 21% 19% 7,519 6,229 21% 19% 
Revenues 1,727 1,551 11% 10% 6,270 6,044 4% 16% 
Operational EBITA 239 203 18%  909 848 7%  
as % of operational revenues 14.0% 13.2% +0.8 pts  14.5% 14.0% +0.5 pts  
Cash flow from operating activities 444 205 117%  1,002 675 48%  
No. of employees (FTE equiv.) 21,100 20,100 5%      
 
 
Growth 
  
 Q4 Q4 
Change year-on-year Orders Revenues 
Comparable 5% 10% 
FX 2% 1% 
Portfolio changes 0% 0% 
Total 7% 11%

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

AB B  IN TE RIM RE P ORT  I Q4  2 02 3 9 
 
Orders and revenues 
Markets are still adjusting to shorter delivery lead times, 
putting pressure on order intake which amounted to $550 
million, representing a sharp drop of 31% (comparable 
33%) year-on-year. Although the challenging market 
situation is expected to persist near-term, the fourth 
quarter of 2023 is anticipated to have been the trough 
quarter for absolute order intake. 
• Machine Automation is executing the order backlog 
and successfully reducing lead times in deliveries after 
customers pre-ordering during the period of supply 
chain constraints in 2022. The long-term strength of the 
Machine Automation market is intact, however, the 
order normalization is expected to persist through the 
next couple of quarters.   
• Robotics demand declined in all customer segments 
year-on-year, with the most significant drop in 3C 
electronics. The softening in the automotive segment 
was mostly due to timing impacts for some larger 
orders. Inventory adjustments among channel partners 
were noted in China, and are expected to level off 
towards the end of the first quarter.  
 
• From a geographical perspective, orders in the Americas 
declined by 19% (21% comparable). The decline in Europe 
was 34% (comparable 38%). In Asia, Middle East and Africa 
orders declined by 33% (comparable 31%), hampered by 
China being down by 36% (comparable 34%). 
• Revenues were down by 4% (comparable 7%) and 
amounted to $852 million as the positive price 
development was more than offset by lower volumes in the 
Robotics division where the order backlog has normalized 
and weak short-cycle demand weighed on customer 
deliveries. Machine Automation improved revenues on 
execution of the large order backlog.  
Profit 
Operational EBITA of $118 million softened by 6% year-on-
year on the back of lower revenues. However, the Operational 
EBITA margin remained largely stable at 13.8%, down only 20 
basis points from last year. 
• Price impact and the positive mix from higher share of 
revenues from Machine Automation were key positive 
contributors to earnings, however slightly more than offset 
by the impact from underabsorption in production due to 
low Robotics volumes and increased cost for labor.  
 
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) Q4 2023 Q4 2022 US$ Comparable FY 2023 FY 2022 US$ Comparable 
Orders 550 798 -31% -33% 3,066 4,116 -26% -25% 
Order backlog 2,141 2,679 -20% -20% 2,141 2,679 -20% -20% 
Revenues 852 891 -4% -7% 3,640 3,181 14% 14% 
Operational EBITA 118 125 -6%  536 340 58%  
as % of operational revenues 13.8% 14.0% -0.2 pts  14.7% 10.7% +4 pts  
Cash flow from operating activities 170 105 62%  436 214 104%  
No. of employees (FTE equiv.) 11,300 10,700 5%      
 
 
Growth 
  
 Q4 Q4 
Change year-on-year Orders Revenues 
Comparable -33% -7% 
FX 2% 3% 
Portfolio changes 0% 0% 
Total -31% -4% 
 
 
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 Q4  2 02 3 10  
 
Events from the Quarter 
 
• Despite ABB’s concerted efforts, there was one fatal 
incident in the quarter involving one contractor, 
working on a project in Algeria. A root cause 
investigation and remediation plan are underway. The 
thoughts of the senior management and everyone at 
ABB go out to the family of the deceased. The health 
and safety of ABB employees are always of highest 
priority and the foremost standard by which 
performance is measured. ABB is working to ensure 
that such an incident never happens again. 
 
• The 2023 ABB Accelerating Circularity Challenge led by 
Motion and Electrification set out to find innovative 
customer solutions that design out waste and 
pollution and keep products and materials in use for 
as long as possible. More than 100 startups from 
around the world participated, the three winners 
received $30,000 each to develop their concepts in 
collaboration with ABB. The winners included Molg 
from the United Sates who developed a take-back 
care of a Variable Speed Drive. Minespider from 
Switzerland won for their design of a reliable 
circularity certificate management tool. Lastly, Excess 
Materials Exchange from the Netherlands won for 
their digital platform designed to generate value from 
Power Distribution End-of-Life. 
 
• ABB’s Motion business area successfully launched a 
new Energy Appraisal tool that is able to assess 
complex motor-driven systems to determine optimum 
energy efficiency set ups for its customers. Using the 
tool ABB identified an average energy-saving 
potential of 31 percent per motor across 2,000 motors 
assessed. These findings provide compelling evidence 
for both the financial and environmental benefits of 
using ABB's leading technology. 
 
• H2 Energy Esbjerg ApS contracted ABB’s Process 
Automation business area to provide basic electrical 
engineering for the power distribution from grid point 
of connection to electrolyzers, and for other process 
equipment at its 1 GW hydrogen production facility in 
Esbjerg and hydrogen distribution hub in Fredericia, 
Denmark. The plant is expected to be among the largest 
hydrogen developments in Europe. 
 
• In the quarter ABB’s D&I activities focused on the 
Abilities dimension with global events addressing 
mental health awareness topics such as grief/loss, 
dyslexia and digital accessibility. In addition, Abilities 
training sessions were made available firmwide. During 
the European Disability Week in November, ABB 
participated in a hackathon in association with Avec 
Nos Proches (Caregiving) and in December Karin 
Lepasoon, Chief Communications and Sustainability 
Officer, was named Executive Committee Sponsor for 
Abilities. 
— 
Sustainability 
Q4 outcome 
• 40% reduction year-on-year of CO₂e emissions in own 
operations due to a shift to green electricity and an 
increase in energy efficiency in our operations. 
• 10% decrease year-on-year in LTIFR continuing its 
downward trend 
• 3%-points increase year-on-year in share of women in 
senior management, demonstrating strong progress 
towards our target. 
 
 
0
150
300
450
600
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
 Q4 2023 Q4 2022 CHANGE 12M ROLLING 
CO₂e own operations emissions,  
Ktons scope 1 and 21 27 44 -40% 160 
Lost Time Injury Frequency Rate (LTIFR),  
frequency / 200,000 working hours 2 0.09 0.10 -10% 0.13 
Share of females in senior management 
positions, % 21.0 17.8 +3.2 pts 20.2 
      
1 CO₂ equivalent emissions from site, energy use, SF₆ and fleet, previous quarter 
2 Current quarter Includes all incidents reported until January 10, 2024

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

AB B  IN TE RIM RE P ORT  I Q4  2 02 3 11  
 
During Q4 2023 
 
• On November 30, ABB hosted its Capital Markets Day. 
At the event, ABB provided an update on its 
successful transformation, continuous improvements 
and how the company will benefit from key secular 
trends across its business areas. Both financial and 
sustainability targets were updated to include: 
o Comparable revenue growth of 5%-7% through 
the economic cycle 
o Operational EBITA margin in the range of 16%-
19% 
o EPS growth of at least high single-digit through 
the economic cycle 
o Return on Capital Employed of >18% 
o Net-zero targets for scopes 1, 2 and 3 for 2030 and 
2050 
o Support our customers to avoid 600Mt avoided 
CO2e emissions by 2030. Aligned with WBCSD 
2023 guidance.  
• On October 30, ABB announced that Mathias Gaertner 
has been appointed General Counsel and Company 
Secretary and a Member of the Executive Committee. 
He will join ABB in 2024. He will succeed Andrea 
Antonelli, who has, as previously announced, left the 
company to pursue other opportunities. 
After Q4 2023 
 
• On January 31, ABB announced that the Board of 
Directors will propose Johan Forssell and Mats 
Rahmström as new members for election at the 
company’s Annual General Meeting (AGM) on March 
21, 2024. They will replace Jacob Wallenberg and 
Gunnar Brock who have decided not to stand for re-
election. ABB will publish its invitation to the 2024 
AGM on February 23, 2024. 
 
In 2023 the overall demand for ABB’s offering remained 
robust, with most customer segments improving or 
remaining stable. Weakness in the short-cycle businesses 
related primarily to residential construction and discrete 
automation was however more than offset by strong 
momentum in the project- and systems-related 
businesses. Orders remained stable or increased in three 
out of four business areas, with a decline noted only in 
Robotics & Discrete Automation. Orders amounted to 
$33,818 million and were down 1% versus the prior year 
(up 3 % comparable).  
Revenues were supported by execution of the large order 
backlog as supply chains normalized early in the year and 
amounted to $32,235 million, up by 9% (14% comparable), 
overall implying a book-to-bill of 1.05. 
Income from operations amounted to $4,871 million, up 
from $3,337 million year-on-year. This increase can be 
attributed mostly to an improved operational 
performance. In addition, the prior year was hampered by 
charges of approximately $195 million due to the exit of 
the legacy full-train retrofit business as well as a provision 
of $325 million related to the legacy Kusile project in 
South Africa awarded in 2015. 
Operational EBITA increased by 20% year-on-year to 
$5,427 million, up from $4,510 million in last year’s 
period and the Operational EBITA margin improved by 
160 basis points to 16.9%. The increase was driven by 
higher margins across all business areas. Main drivers of 
the margin expansion were operating leverage on higher 
volumes as well as the impacts from implemented price 
increases, which more than offset inflation in labor and 
input cost. Corporate and Other Operational EBITA 
amounted to -$430 million. This includes a loss of $167 
million that can be attributed to the E-mobility business, 
which was negatively affected by the ongoing 
reorganization to ensure a more focused portfolio, and 
some inventory-related provisions. 
Net finance expenses increased by $52 million to 
$110 million, primarily driven by higher interest rates on 
higher debt levels compared to the prior year. The non-
operational pension credits decreased by $98 million to 
$17 million in comparison to last year’s period, reflecting 
the impact of higher interest rates. Income tax expense 
was $930 million reflecting a tax rate of 19.5%. This 
includes a net benefit realized on a favorable resolution 
of a prior year tax matter relating to the Power Grids 
business. 
Net income attributable to ABB was $3,745 million, up 
from $2,475 million year-on-year. Basic earnings per 
share was $2.02, representing an increase of 55% 
compared with the prior year.  
 
Significant events 
 
Full year 2023

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

AB B  IN TE RIM RE P ORT  I Q4  2 02 3 12  
 
 
Acquisitions Company/unit Closing date Revenues, $ million1 No. of employees 
2023     
Robotics & Discrete Automation Sevensense 21-Dec <5 35 
E-mobility Imagen Energy Inc 13-Nov <5 4 
Motion Spring Point Solutions Llc 1-Nov <5 13 
E-mobility Vourity AB 25-Oct <5 9 
Electrification Eve Systems 1-Jun ~20 50 
Motion Siemens low voltage NEMA Motors 2-May ~60 600 
 
 
Acquisitions and divestments, last twelve months 
ABB Group Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 
EBITDA, $ in million 1,067 794 906 1,384 4,151 1,389 1,494 1,453 1,315 5,651 
Return on Capital Employed, % n.a. n.a. n.a. n.a. 16.50 n.a. n.a. n.a. n.a. 21.10 
Net debt/Equity 0.20 0.34 0.34 0.21 0.21 0.30 0.31 0.21 0.14 0.14 
Net debt/ EBITDA 12M rolling 0.4 0.7 0.7 0.7 0.7 0.9 0.8 0.5 0.4 0.4 
Net working capital, % of 12M rolling 
revenues 12.1% 12.8% 11.7% 11.1% 11.1% 13.9% 14.7% 12.8% 10.2% 10.2% 
Earnings per share, basic, $ 0.31 0.20 0.19 0.61 1.30 0.56 0.49 0.48 0.50 2.02 
Earnings per share, diluted, $ 0.31 0.20 0.19 0.60 1.30 0.55 0.48 0.47 0.50 2.01 
Dividend per share, CHF n.a. n.a. n.a. n.a. 0.84 n.a. n.a. n.a. n.a.  0.87 * 
Share price at the end of period, CHF 1 29.12 24.57 24.90 28.06 28.06 31.37 35.18 32.80 37.30 37.30 
Share price at the end of period, $ 1 30.76 25.43 24.41 30.46 30.46 34.30 39.32 35.86 44.32 44.32 
Number of employees (FTE 
equivalents) 104,720 106,380 106,830 105,130 105,130 106,170 108,320 107,430 107,870 107,870 
No. of shares outstanding at end of 
period (in millions) 1,929 1,892 1,875 1,865 1,865 1,862 1,860 1,849 1,842 1,842 
1 Data prior to October 3, 2022, has been adjusted for the Accelleron spin-off (Source: FactSet). 
* Dividend proposal subject to shareholder approval at the 2024 AGM 
 
 
Additional figures 
Divestments Company/unit Closing date Revenues, $ million1 No. of employees 
2023     
Electrification Power Conversion division 3-Jul ~440 1,500 
Electrification Industrial Plugs & Sockets business 3-Jul ~12 2 
Process Automation UK technical engineering consultancy 
business 1-May ~20 160 
 
Note: comparable growth calculation includes acquisitions and divestments with revenues of greater than $50 million. 
1 Represents the estimated revenues for the last fiscal year prior to the announcement of the respective acquisition/divestment unless otherwise stated. 
 
 
Additional 2024 guidance 
($ in millions, unless otherwise stated) FY 20241 Q1 2024 
Corporate and Other Operational 
EBITA2 
~(300) ~(75) 
  
Non-operating items   
  
Acquisition-related amortization ~(210) ~(55) 
  
Restructuring and related3 ~(200) ~(50) 
  
ABB Way transformation ~(180) ~(55) 
  
 
($ in millions, unless otherwise stated) FY 2024 
Net finance expenses ~(120) 
 
Effective tax rate ~25% 4  
 
Capital Expenditures ~(900) 
 
  
  
  
  
 
1 Excludes one project estimated to a total of ~$100 million, that is ongoing in the non-core business. Exact exit timing is difficult to assess due to legal proceedings etc. 
2 Excludes Operational EBITA from E-mobility business. 
3 Includes restructuring and restructuring-related as well as separation and integration costs. 
4 Excludes the impact of acquisitions or divestments or any significant non-operational items.

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

AB B  IN TE RIM RE P ORT  I Q4  2 02 3 13  
 
This press release includes forward-looking information 
and statements as well as other statements concerning 
the outlook for our business, including those in the 
sections of this release titled “CEO summary,” 
“Outlook,” and “Sustainability”. These statements are 
based on current expectations, estimates and 
projections about the factors that may affect our future 
performance, including global economic conditions, the 
economic conditions of the regions and industries that 
are major markets for ABB. These expectations, 
estimates and projections are generally identifiable by 
statements containing words such as “anticipates,” 
“expects,” “estimates,” “plans,” “targets,” “guidance,”  
“likely” or similar expressions. However, there are many 
risks and uncertainties, many of which are beyond our 
control, that could cause our actual results to differ 
materially from the forward-looking information and 
statements
made in this press release and which could affect our 
ability to achieve any or all of our stated targets. Some 
important factors that could cause such differences 
include, among others, business risks associated with 
the volatile global economic environment and political 
conditions, costs associated with compliance activities, 
market acceptance of new products and services, 
changes in governmental regulations and currency 
exchange rates and such other factors as may be 
discussed from time to time in ABB Ltd’s filings with the 
U.S. Securities and Exchange Commission, including its 
Annual Reports on Form 20-F. Although ABB Ltd believes 
that its expectations reflected in any such forward 
looking statement are based upon reasonable 
assumptions, it can give no assurance that those 
expectations will be achieved. 
 
 
The Q4 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 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 
 
 
Q4 results presentation on February 1, 2024 
ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The 
company’s solutions connect engineering know-how and software to optimize how things are manufactured, moved, 
powered and operated. Building on over 140 years of excellence, ABB’s more than 105,000 employees are committed to 
driving innovations that accelerate industrial transformation.  
 
Financial calendar 
2024  
March 21 Annual General Meeting, Zurich 
April 18 Q1 2024 results 
July 18 Q2 2024 results 
October 17 Q3 2024 results

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

1 Q4 2023 FINANCIAL INFORMATION  
 
 
 
February 1, 2024 
Q4 2023  
Financial information

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

2 Q4 2023 FINANCIAL INFORMATION  
 
 
 
 
— 
Financial  Information 
Contents 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
03 ─ 07 Key Figures 
 
 
08 ─ 33 Consolidated  Financial  Information  (unaudited)  
  
 
34 ─ 47 Supplemental Reconciliations and Definitions

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

3 Q4 2023 FINANCIAL INFORMATION  
 
— 
Key Figures 
     CHANGE 
 ($ in millions, unless otherwise indicated) Q4 2023 Q4 2022 US$ Comparable(1) 
 Orders 7,649 7,620 0% 0% 
 Order backlog (end December) 21,567 19,867 9% 9% 
 Revenues 8,245 7,824 5% 6% 
 Gross Profit 2,848 2,658 7%  
  as % of revenues 34.5% 34.0% +0.5 pts  
 Income from operations 1,116 1,185 -6%  
 Operational EBITA(1) 1,333 1,146 16% 13%(2) 
  as % of operational revenues(1) 16.3% 14.8% +1.5 pts  
 Income from continuing operations, net of tax  946 1,168 -19%  
 Net income attributable to ABB 921 1,132 -19%  
 Basic earnings per share ($) 0.50 0.61 -18%(3)  
 Cash flow from operating activities (4) 1,897 687 176%  
 Cash flow from operating activities in continuing operations  1,897 720 163%  
 
     CHANGE 
 ($ in millions, unless otherwise indicated) FY 2023 FY 2022 US$ Comparable(1) 
 Orders 33,818 33,988 -1% 3% 
 Revenues 32,235 29,446 9% 14% 
 Gross Profit 11,214 9,710 15%  
  as % of revenues 34.8% 33.0% +1.8 pts  
 Income from operations 4,871 3,337 46%  
 Operational EBITA(1) 5,427 4,510 20% 20%(2) 
  as % of operational revenues(1) 16.9% 15.3% +1.6 pts  
 Income from continuing operations, net of tax  3,848 2,637 46%  
 Net income attributable to ABB 3,745 2,475 51%  
 Basic earnings per share ($) 2.02 1.30 55%(3)  
 Cash flow from operating activities (4) 4,290 1,287 233%  
 Cash flow from operating activities in continuing operations  4,301 1,334 222%  
(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 Q4 2023 FINANCIAL INFORMATION  
    CHANGE 
 ($ in millions, unless otherwise indicated) Q4 2023 Q4 2022 US$ Local Comparable 
 Orders  ABB Group 7,649 7,620 0% -1% 0% 
  Electrification 3,395 3,385 0% -1% 2% 
  Motion 1,937 1,649 17% 15% 13% 
  Process Automation 1,870 1,746 7% 5% 5% 
  Robotics & Discrete Automation 550 798 -31% -33% -33% 
  Corporate and Other  125 257 
   
  Intersegment eliminations (228) (215) 
 Order backlog (end December) ABB Group 21,567 19,867 9% 7% 9% 
  Electrification 6,808 6,404 6% 6% 14% 
  Motion 5,343 4,726 13% 9% 8% 
  Process Automation 7,519 6,229 21% 19% 19% 
  Robotics & Discrete Automation 2,141 2,679 -20% -20% -20% 
  Corporate and Other    
   
  (incl. intersegment eliminations) (244) (171) 
 Revenues  ABB Group 8,245 7,824 5% 4% 6% 
  Electrification 3,698 3,498 6% 5% 8% 
  Motion 1,946 1,845 5% 4% 2% 
  Process Automation 1,727 1,551 11% 10% 10% 
  Robotics & Discrete Automation 852 891 -4% -7% -7% 
  Corporate and Other  229 258 
   
  Intersegment eliminations (207) (219) 
 Income from operations ABB Group 1,116 1,185    
  Electrification 670 569    
  Motion 292 316    
  Process Automation 259 183    
  Robotics & Discrete Automation 99 101    
  Corporate and Other   
   
  (incl. intersegment eliminations) (204) 16 
 Income from operations % ABB Group 13.5% 15.1%    
  Electrification 18.1% 16.3%    
  Motion 15.0% 17.1%    
  Process Automation 15.0% 11.8%    
  Robotics & Discrete Automation 11.6% 11.3%    
 Operational EBITA ABB Group 1,333 1,146 16% 13%  
  Electrification 725 575 26% 24%  
  Motion 318 318 0% -1%  
  Process Automation 239 203 18% 19%  
  Robotics & Discrete Automation 118 125 -6% -6%  
  Corporate and Other(1)      
  (incl. intersegment eliminations) (67) (75)    
 Operational EBITA %  ABB Group 16.3% 14.8%    
  Electrification 19.7% 16.6%    
  Motion 16.6% 17.4%    
  Process Automation 14.0% 13.2%    
  Robotics & Discrete Automation 13.8% 14.0%    
 Cash flow from operating activities ABB Group 1,897 687    
  Electrification 1,068 857    
  Motion 597 346    
  Process Automation 444 205    
  Robotics & Discrete Automation 170 105    
  Corporate and Other       
  (incl. intersegment eliminations) (382) (793)    
  Discontinued operations – (33)    
 
(1) Corporate and Other at Q4 2023 and Q4 2022 includes losses of $33 million and $3 million, respectively, relating to E-mobility.

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

5 Q4 2023 FINANCIAL INFORMATION  
    CHANGE 
 ($ in millions, unless otherwise indicated) FY 2023 FY 2022 US$ Local Comparable 
 Orders  ABB Group 33,818 33,988 -1% 1% 3% 
  Electrification 15,189 15,182 0% 1% 3% 
  Motion 8,222 7,896 4% 5% 4% 
  Process Automation 7,535 6,825 10% 12% 24% 
  Robotics & Discrete Automation 3,066 4,116 -26% -25% -25% 
  Corporate and Other 720 787    
  Intersegment eliminations (914) (818)    
 Order backlog (end December) ABB Group 21,567 19,867 9% 7% 9% 
  Electrification 6,808 6,404 6% 6% 14% 
  Motion 5,343 4,726 13% 9% 8% 
  Process Automation 7,519 6,229 21% 19% 19% 
  Robotics & Discrete Automation 2,141 2,679 -20% -20% -20% 
  Corporate and Other   
   
  (incl. intersegment eliminations) (244) (171) 
 Revenues  ABB Group 32,235 29,446 9% 11% 14% 
  Electrification 14,584 13,619 7% 8% 10% 
  Motion 7,814 6,745 16% 17% 15% 
  Process Automation 6,270 6,044 4% 5% 16% 
  Robotics & Discrete Automation 3,640 3,181 14% 14% 14% 
  Corporate and Other 769 653 
   
  Intersegment eliminations (842) (796) 
 Income from operations ABB Group 4,871 3,337    
  Electrification 2,800 2,140    
  Motion 1,390 1,092    
  Process Automation 947 663    
  Robotics & Discrete Automation 446 247    
  Corporate and Other   
 
  (incl. intersegment eliminations) (712) (805) 
 Income from operations % ABB Group 15.1% 11.3%    
  Electrification 19.2% 15.7%    
  Motion 17.8% 16.2%    
  Process Automation 15.1% 11.0%    
  Robotics & Discrete Automation 12.3% 7.8%    
 Operational EBITA ABB Group 5,427 4,510 20% 20%  
  Electrification 2,937 2,343 25% 27%  
  Motion 1,475 1,163 27% 27%  
  Process Automation 909 848 7% 10%  
  Robotics & Discrete Automation 536 340 58% 58%  
  Corporate and Other(1)    
  (incl. intersegment eliminations) (430) (184)    
 Operational EBITA %  ABB Group 16.9% 15.3%    
  Electrification 20.1% 17.2%    
  Motion 18.9% 17.3%    
  Process Automation 14.5% 14.0%    
  Robotics & Discrete Automation 14.7% 10.7%    
 Cash flow from operating activities ABB Group 4,290 1,287    
  Electrification 3,211 2,115    
  Motion 1,532 853    
  Process Automation 1,002 675    
  Robotics & Discrete Automation 436 214    
  Corporate and Other      
  (incl. intersegment eliminations) (1,880) (2,523)    
  Discontinued operations (11) (47)    
 
(1) Corporate and Other at FY 2023 and FY 2022 includes losses of $167 million and $15 million, respectively, relating to E-mobility.

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

6 Q4 2023 FINANCIAL INFORMATION  
Operational EBITA 
     Process Robotics & Discrete 
  ABB Electrification Motion Automation Automation 
 ($ in millions, unless otherwise indicated) Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 
 Revenues 8,245 7,824 3,698 3,498 1,946 1,845 1,727 1,551 852 891 
 Foreign exchange/commodity timing           
 differences in total revenues (66) (62) (15) (31) (35) (22) (21) (12) 2 1 
 Operational revenues 8,179 7,762 3,683 3,467 1,911 1,823 1,706 1,539 854 892 
            
 Income from operations 1,116 1,185 670 569 292 316 259 183 99 101 
 Acquisition-related amortization 56 55 22 24 9 8 1 1 20 19 
 Restructuring, related and            
 implementation costs(1) 127 47 50 10 41 5 (4) 23 6 2 
 Changes in obligations related to            
 divested businesses 2 (71) – 1 – – – – – – 
 Gains and losses from sale of businesses  (4) 3 (4) – – 3 – – – – 
 Acquisition- and divestment-related            
 expenses and integration costs 19 24 7 5 2 3 (4) 12 7 2 
 Certain other non-operational items 76 (28) 5 11 2 – – – (14) (8) 
 Foreign exchange/commodity timing           
 differences in income from operations (59) (69) (25) (45) (28) (17) (13) (16) – 9 
 Operational EBITA 1,333 1,146 725 575 318 318 239 203 118 125 
            
 Operational EBITA margin (%) 16.3% 14.8% 19.7% 16.6% 16.6% 17.4% 14.0% 13.2% 13.8% 14.0% 
 
 
     Process Robotics & Discrete 
  ABB Electrification Motion Automation Automation 
 ($ in millions, unless otherwise indicated) FY 23 FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 FY 22 
 Revenues 32,235 29,446 14,584 13,619 7,814 6,745 6,270 6,044 3,640 3,181 
 Foreign exchange/commodity timing           
 differences in total revenues (41) 28 (3) (20) (23) (14) (18) 33 4 6 
 Operational revenues 32,194 29,474 14,581 13,599 7,791 6,731 6,252 6,077 3,644 3,187 
            
 Income from operations 4,871 3,337 2,800 2,140 1,390 1,092 947 663 446 247 
 Acquisition-related amortization 220 229 88 104 35 31 5 4 79 78 
 Restructuring, related and           
 implementation costs(1) 219 347 76 28 46 16 3 29 6 11 
 Changes in obligations related to            
 divested businesses (3) (88) 1 1 – – – – – – 
 Gains and losses from sale of businesses  (101) 7 (75) (1) – 8 (26) – – – 
 Acquisition- and divestment-related            
 expenses and integration costs 74 195 30 36 17 15 (7) 134 14 6 
 Certain other non-operational items 165 452 16 41 6 – – – (10) (8) 
 Foreign exchange/commodity timing           
 differences in income from operations (18) 31 1 (6) (19) 1 (13) 18 1 6 
 Operational EBITA 5,427 4,510 2,937 2,343 1,475 1,163 909 848 536 340 
            
 Operational EBITA margin (%) 16.9% 15.3% 20.1% 17.2% 18.9% 17.3% 14.5% 14.0% 14.7% 10.7% 
(1) Includes impairment of certain assets.

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

7 Q4 2023 FINANCIAL INFORMATION  
Depreciation and Amortization  
     Process Robotics & Discrete 
  ABB Electrification Motion Automation Automation 
 ($ in millions) Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 
 Depreciation 133 130 66 62 28 27 12 13 14 16 
 Amortization 66 69 28 31 10 10 2 3 20 19 
 including total acquisition-related amortization of: 56 55 22 24 9 8 1 1 20 19 
 
 
       Process Robotics & Discrete  
  ABB Electrification Motion Automation Automation 
 ($ in millions) FY 23 FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 FY 22 
 Depreciation 517 531 256 253 108 105 47 64 57 62 
 Amortization 263 283 109 129 41 36 9 11 81 79 
 including total acquisition-related amortization of: 220 229 88 104 35 31 5 4 79 78 
 
 
Orders received and revenues by region  
 ($ in millions, unless otherwise indicated) Orders received CHANGE Revenues CHANGE 
  
    Com-     Com- 
 Q4 23 Q4 22 US$ Local parable Q4 23 Q4 22 US$ Local parable 
 Europe 2,554 2,604 -2% -7% -5% 2,951 2,765 7% 2% 4% 
 The Americas 2,985 2,898 3% 2% 3% 2,847 2,555 11% 10% 14% 
 of which United States 2,277 2,167 5% 4% 6% 2,105 1,898 11% 11% 15% 
 Asia, Middle East and Africa 2,110 2,118 0% 1% 2% 2,447 2,504 -2% 0% 0% 
 of which China 895 976 -8% -7% -7% 1,064 1,133 -6% -6% -5% 
 ABB Group 7,649 7,620 0% -1% 0% 8,245 7,824 5% 4% 6% 
 
 
 ($ in millions, unless otherwise indicated) Orders received CHANGE Revenues CHANGE 
  
    Com-     Com- 
 FY 23 FY 22 US$ Local parable FY 23 FY 22 US$ Local parable 
 Europe 11,458 11,778 -3% -4% -1% 11,568 10,285 12% 11% 14% 
 The Americas 12,437 11,825 5% 5% 7% 11,090 9,573 16% 15% 18% 
 of which United States 9,204 8,920 3% 3% 5% 8,248 7,023 17% 17% 21% 
 Asia, Middle East and Africa 9,923 10,385 -4% 1% 4% 9,577 9,588 0% 5% 8% 
 of which China 4,488 5,087 -12% -7% -5% 4,468 4,696 -5% -1% 1% 
 ABB Group 33,818 33,988 -1% 1% 3% 32,235 29,446 9% 11% 14%

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

8 Q4 2023 FINANCIAL INFORMATION  
 
 
 
 
— 
Consolidated Financial Information 
 
 
 
 ABB Ltd Consolidated Income Statements (unaudited) 
      
      
  Year ended Three months ended 
 ($ in millions, except per share data in $) Dec. 31, 2023 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2022 
 Sales of products 27,010 24,471 6,800 6,525 
 Sales of services and other 5,225 4,975 1,445 1,299 
 Total revenues 32,235 29,446 8,245 7,824 
 Cost of sales of products (17,938) (16,804) (4,545) (4,365) 
 Cost of services and other (3,083) (2,932) (852) (801) 
 Total cost of sales (21,021) (19,736) (5,397) (5,166) 
 Gross profit 11,214 9,710 2,848 2,658 
 Selling, general and administrative expenses  (5,543) (5,132) (1,485) (1,299) 
 Non-order related research and development expenses  (1,317) (1,166) (366) (322) 
 Other income (expense), net 517 (75) 119 148 
 Income from operations 4,871 3,337 1,116 1,185 
 Interest and dividend income 165 72 50 22 
 Interest and other finance expense (275) (130) (78) (23) 
 Non-operational pension (cost) credit 17 115 (6) 13 
 Income from continuing operations before taxes  4,778 3,394 1,082 1,197 
 Income tax expense (930) (757) (136) (29) 
 Income from continuing operations, net of tax  3,848 2,637 946 1,168 
 Loss from discontinued operations, net of tax  (24) (43) (8) (7) 
 Net income 3,824 2,594 938 1,161 
 Net income attributable to noncontrolling      
 interests and redeemable noncontrolling interests  (79) (119) (17) (29) 
 Net income attributable to ABB 3,745 2,475 921 1,132 
      
 Amounts attributable to ABB shareholders:     
 Income from continuing operations, net of tax  3,769 2,517 929 1,138 
 Loss from discontinued operations, net of tax  (24) (42) (8) (6) 
 Net income 3,745 2,475 921 1,132 
      
 Basic earnings per share attributable to ABB shareholders:     
 Income from continuing operations, net of tax  2.03 1.33 0.50 0.61 
 Loss from discontinued operations, net of tax  (0.01) (0.02) 0.00 0.00 
 Net income 2.02 1.30 0.50 0.61 
      
 Diluted earnings per share attributable to ABB shareholders:     
 Income from continuing operations, net of tax  2.02 1.32 0.50 0.60 
 Loss from discontinued operations, net of tax  (0.01) (0.02) 0.00 0.00 
 Net income 2.01 1.30 0.50 0.60 
      
 Weighted-average number of shares outstanding (in millions) used to compute:     
 Basic earnings per share attributable to ABB shareholders  1,855 1,899 1,845 1,870 
 Diluted earnings per share attributable to ABB shareholders  1,867 1,910 1,856 1,881 
 Due to rounding, numbers presented may not add to the totals provided.     
 
     
 See Notes to the Consolidated Financial Information

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

9 Q4 2023 FINANCIAL INFORMATION  
      
      
      
      
      
      
      
 —     
 ABB Ltd Condensed Consolidated Statements of Comprehensive 
 Income (unaudited) 
      
      
  Year ended Three months ended 
 ($ in millions) Dec. 31, 2023 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2022 
 Total comprehensive income, net of tax  3,315 2,189 586 1,414 
 Total comprehensive income attributable to noncontrolling interests and      
 redeemable noncontrolling interests, net of tax  (84) (87) (30) (29) 
 Total comprehensive income attributable to ABB shareholders, net of tax  3,231 2,102 556 1,385 
 Due to rounding, numbers presented may not add to the totals provided.     
       See Notes to the Consolidated Financial Information

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

10 Q4 2023 FINANCIAL INFORMATION  
 —   
 ABB Ltd Consolidated Balance Sheets (unaudited)   
    
    
 ($ in millions) Dec. 31, 2023 Dec. 31, 2022 
 Cash and equivalents 3,891 4,156 
 Restricted cash 18 18 
 Marketable securities and short-term investments 1,928 725 
 Receivables, net 7,446 6,858 
 Contract assets 1,090 954 
 Inventories, net 6,149 6,028 
 Prepaid expenses 235 230 
 Other current assets 520 601 
 Total current assets 21,277 19,570 
    
 Property, plant and equipment, net 4,142 3,911 
 Operating lease right-of-use assets 893 841 
 Investments in equity-accounted companies 187 130 
 Prepaid pension and other employee benefits 780 916 
 Intangible assets, net 1,223 1,406 
 Goodwill 10,561 10,511 
 Deferred taxes 1,381 1,396 
 Other non-current assets 496 467 
 Total assets 40,940 39,148 
    
 Accounts payable, trade 4,847 4,904 
 Contract liabilities 2,844 2,216 
 Short-term debt and current maturities of long-term debt 2,607 2,535 
 Current operating leases 249 220 
 Provisions for warranties 1,210 1,028 
 Other provisions 1,201 1,171 
 Other current liabilities 5,046 4,455 
 Total current liabilities 18,004 16,529 
    
 Long-term debt 5,221 5,143 
 Non-current operating leases 666 651 
 Pension and other employee benefits 686 719 
 Deferred taxes 669 729 
 Other non-current liabilities 1,548 2,105 
 Total liabilities 26,794 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 December  31, 2023 and 2022, respectively) 163 171 
 Additional paid-in capital 7 141 
 Retained earnings 19,724 20,082 
 Accumulated other comprehensive loss (5,070) (4,556) 
 Treasury stock, at cost   
 (40 million and 100 million shares at December 31, 2023 and 2022, respectively) (1,414) (3,061) 
 Total ABB stockholders’ equity 13,410 12,777 
 Noncontrolling interests 647 410 
 Total stockholders’ equity 14,057 13,187 
 Total liabilities and stockholders’ equity 40,940 39,148 
 Due to rounding, numbers presented may not add to the totals provided.   
    
 See Notes to the Consolidated Financial Information

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

11 Q4 2023 FINANCIAL INFORMATION  
 —     
 ABB Ltd Consolidated Statements of Cash Flows (unaudited) 
        Year ended Three months ended 
 ($ in millions) Dec. 31, 2023 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2022 
 Operating activities:     
 Net income 3,824 2,594 938 1,161 
 Loss from discontinued operations, net of tax  24 43 8 7 
 Adjustments to reconcile net income (loss) to      
 net cash provided by operating activities:     
 Depreciation and amortization 780 814 199 199 
 Changes in fair values of investments (29) (33) (1) 6 
 Pension and other employee benefits (48) (125) 19 (18) 
 Deferred taxes (25) (344) 17 (161) 
 Loss from equity-accounted companies 16 102 5 2 
 Net gain from derivatives and foreign exchange (55) (23) (11) (67) 
 Net gain from sale of property, plant and equipment  (116) (84) (77) (20) 
 Net loss (gain) from sale of businesses (101) 7 (4) 3 
 Other 158 66 43 5 
 Changes in operating assets and liabilities:     
 Trade receivables, net (661) (831) 158 (174) 
 Contract assets and liabilities 412 416 169 63 
 Inventories, net (3) (1,599) 435 68 
 Accounts payable, trade (106) 395 (69) 5 
 Accrued liabilities 254 136 114 84 
 Provisions, net 211 (70) 105 (382) 
 Income taxes payable and receivable (190) (94) (181) (113) 
 Other assets and liabilities, net (44) (36) 30 52 
 Net cash provided by operating activities – continuing operations 4,301 1,334 1,897 720 
 Net cash provided by (used in) operating activities – discontinued operations (11) (47) – (33) 
 Net cash provided by operating activities 4,290 1,287 1,897 687 
       Investing activities:     
 Purchases of investments (1,957) (321) (854) (50) 
 Purchases of property, plant and equipment and intangible assets (770) (762) (264) (259) 
 Acquisition of businesses (net of cash acquired)     
 and increases in cost- and equity-accounted companies (225) (288) (65) (62) 
 Proceeds from sales of investments 610 697 12 43 
 Proceeds from maturity of investments 149 73 11 73 
 Proceeds from sales of property, plant and equipment  147 127 80 42 
 Proceeds from sales of businesses (net of transaction costs      
 and cash disposed) and cost- and equity-accounted companies 553 1,541 1 1,549 
 Net cash from settlement of foreign currency derivatives  (109) (166) (33) (12) 
 Changes in loans receivable, net 3 320 (5) 309 
 Other investing activities 7 (14) (2) (4) 
 Net cash provided by (used in) investing activities – continuing operations (1,592) 1,207 (1,119) 1,629 
 Net cash used in investing activities – discontinued operations (23) (226) (1) (135) 
 Net cash provided by (used in) investing activities  (1,615) 981 (1,120) 1,494 
       Financing activities:     
 Net changes in debt with original maturities of 90 days or less  (1,365) 1,366 (368) (109) 
 Increase in debt 2,586 3,849 2 295 
 Repayment of debt (1,567) (2,703) (130) (678) 
 Delivery of shares 154 394 36 5 
 Purchase of treasury stock (1,258) (3,553) (349) (302) 
 Dividends paid (1,713) (1,698) – – 
 Cash associated with the spin-off of the Turbocharging Division  – (172) – (172) 
 Dividends paid to noncontrolling shareholders (93) (99) (4) (16) 
 Proceeds from issuance of subsidiary shares 328 216 – 216 
 Other financing activities 31 6 27 64 
 Net cash used in financing activities – continuing operations (2,897) (2,394) (786) (697) 
 Net cash provided by financing activities – discontinued operations – – – – 
 Net cash used in financing activities (2,897) (2,394) (786) (697) 
       Effects of exchange rate changes on cash and equivalents and restricted cash  (43) (189) 31 2 
 Net change in cash and equivalents and restricted cash  (265) (315) 22 1,486 
       Cash and equivalents and restricted cash, beginning of period  4,174 4,489 3,887 2,688 
 Cash and equivalents and restricted cash, end of period  3,909 4,174 3,909 4,174 
       Supplementary disclosure of cash flow information:      
 Interest paid 250 90 99 43 
 Income taxes paid 1,147 1,188 282 281 
 Due to rounding, numbers presented may not add to the totals provided.     
 See Notes to the Consolidated Financial Information

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

12 Q4 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)   2,475   2,475 124 2,599 
 Foreign currency translation         
 adjustments, net of tax of $0    (608)  (608) (31) (639) 
 Effect of change in fair value of         
 available-for-sale securities,         
 net of tax of $(5)    (21)  (21)  (21) 
 Unrecognized income (expense)         
 related to pensions and other         
 postretirement plans,         
 net of tax of $86    256  256 (1) 255 
 Change in derivative instruments         
 and hedges, net of tax of $2    –  –  – 
 Issuance of subsidiary shares  120    120 86 206 
 Other changes in         
 noncontrolling interests  10    10 (34) (24) 
 Dividends to         
 noncontrolling shareholders      – (100) (100) 
 Dividends to shareholders   (1,700)   (1,700)  (1,700) 
 Spin-off of the Turbocharging Division    (177) (95)  (272) (12) (284) 
 Cancellation of treasury shares (8) (4) (2,864)  2,876 –  – 
 Share-based payment arrangements  42    42  42 
 Purchase of treasury stock     (3,502) (3,502)  (3,502) 
 Delivery of shares  (51) (130)  575 394  394 
 Other  2    2  2 
 Balance at December 31, 2022 171 141 20,082 (4,556) (3,061) 12,777 410 13,187 
          
          
 Balance at January 1, 2023 171 141 20,082 (4,556) (3,061) 12,777 410 13,187 
 Net income(1)   3,745   3,745 83 3,828 
 Foreign currency translation         
 adjustments, net of tax of $(2)    (286)  (286) 5 (281) 
 Effect of change in fair value of         
 available-for-sale securities,         
 net of tax of $3    11  11  11 
 Unrecognized income (expense)         
 related to pensions and other         
 postretirement plans,         
 net of tax of $(45)    (237)  (237)  (237) 
 Change in derivative instruments         
 and hedges, net of tax of $(1)    (2)  (2)  (2) 
 Issuance of subsidiary shares  170    170 168 338 
 Other changes in         
 noncontrolling interests  (31) (37)   (68) 67 (1) 
 Dividends to         
 noncontrolling shareholders      – (93) (93) 
 Dividends to shareholders   (1,706)   (1,706)  (1,706) 
 Cancellation of treasury shares (7) (201) (2,359)  2,567 –  – 
 Share-based payment arrangements  101    101 2 103 
 Purchase of treasury stock     (1,247) (1,247)  (1,247) 
 Delivery of shares  (173)   327 154  154 
 Other  (2)    (2) 5 3 
 Balance at December 31, 2023 163 7 19,724 (5,070) (1,414) 13,410 647 14,057 
 
(1) Amounts attributable to noncontrolling interests for the year ended December 31, 2023 and 2022, exclude net losses of $4 million and $5 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 Q4 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 a ccounting principles 
(U.S. GAAP) for interim financial reporting. As such, the Consolidated Financial Information does not include all the informa tion and notes required under 
U.S. GAAP for annual consolidated financial statements. Therefore, such financial information should be read in conjunction w ith the audited 
consolidated financial statements in the Company’s Annual Report for the year ended December  31, 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 of loss contingencies associated with litigation or threatened litigation and other claims and inquiries, environme ntal damages, 
product warranties, self-insurance reserves, regulatory and other proceedings,  
• assumptions and projections, principally related to future material, labor and project -related overhead costs, used in determining the 
percentage-of-completion on projects where revenue is recognized over time , as well as the amount of variable consideration the Company 
expects to be entitled to, 
• assumptions used in the calculation of pension and postretirement benefits and the fair value of pension plan assets,  
• estimates used to record expected costs for employee severance in connection with restructuring programs,  
• assumptions used in determining inventory obsolescence and net realizable value,  
• growth rates, discount rates and other assumptions used to determine impairment of long -lived assets and in testing goodwill for 
impairment, 
• estimates and assumptions used in determining the fair values of assets and liabilities assumed in business combinations,  and 
• estimates and assumptions used in determining the initial fair value of retained noncontrolling interest s and certain obligations in connection 
with divestments. 
The actual results and outcomes may differ from the Company’s estimates and assumptions.  
A portion of the Company’s activities (primarily long-term construction activities) has an operating cycle that exceeds one year. For classification of 
current assets and liabilities related to such activities, the Company elected to use the duration of the individual contract s as its operating cycle. 
Accordingly, there are accounts receivable, contract assets, inventories and provisions related to these contracts which will  not be realized within one 
year that have been classified as current.  
Basis of presentation 
In the opinion of management, the unaudited Consolidated Financial Information contains all necessary adjustments to present fairly the financial 
position, results of operations and cash flows for the reported periods. Management considers all such adjustments to be of a normal recurring nat ure. 
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 detai ls).

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

14 Q4 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 December 31, 2023 and 
December 31, 2022, amounted to $415 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 marke t 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 exceptions 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 made during the course of the transition period ending Decemb er 31, 2024. 
This update does not have a significant impact on the Company’s consolidated financial statements.  
Applicable for future periods 
Improvements to reportable segment disclosures 
In November 2023, an accounting standard update was issued which requires the Company to disclose additional reportable segme nt information 
primarily through enhanced disclosures about significant segment expenses  and extending certain annual disclosure requirements to quarterly . This 
update is effective for the Company for annual periods beginning January 1, 2024, and interim periods beginning January 1, 20 25, and is to be applied 
retrospectively to each prior reporting period presented. The Company is currently evaluating the impact of adopting this update on its consolidated 
financial statements. 
Improvements to income tax disclosures 
In December 2023, an accounting standard update was issued which requires the Company to disclose additional information rela ted to income taxes. 
Under the update, the Company is required to annually disclose  by jurisdiction (i) additional disaggregated information within the tax rate reconciliation 
and (ii) income taxes paid. This update is effective for the Company prospectively, with retrospective adoption permitted, for annual periods beginning 
January 1, 2025. The Company is currently evaluating the impact of adopting this update on its consolidated financial statements. 
 
 
─ 
Note 3 
Discontinued operations 
In 2020, the Company completed the divestment of its Power Grids business to Hitachi Ltd (Hitachi). As this divestment represented a strategic shift 
that would have a major effect on the Company’s operations and financial results, the results of operations for this business are presented as 
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. The remaining business activities of the Power Grids business being executed by the Company are not significant.  
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 year and three months 
ended December 31, 2023, the Company has recognized within its continuing operations, general and administrative expenses incurred to perform the 
TSAs, offset by $121 million and $20 million in TSA-related income for such services that is reported in Other income  (expense), net. In the year and three 
months ended December 31, 2022, the Company has recognized within its continuing operations, general and administrative expenses incurred to 
perform the TSAs, offset by $162 million and $47 million in TSA-related income for such services that is reported in Other income  (expense), net. 
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.

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

15 Q4 2023 FINANCIAL INFORMATION  
─ 
Note 4 
Acquisitions and equity-accounted companies 
Acquisition of controlling interests 
Acquisitions of controlling interests were as follows: 
  Year ended December 31, Three months ended December 31, 
 ($ in millions, except number of acquired businesses)  2023 2022 2023 2022 
 Purchase price for acquisitions (net of cash acquired) (1) 175 195 61 46 
 Aggregate excess of purchase price over     
 fair value of net assets acquired(2) 142 229 87 24 
 Number of acquired businesses  7 5 4 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 
year ended December 31, 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 of $32 million was recorded in “Other income (expense), net” in the year ended 
December 31, 2022. The Company entered into an agreement with the remaining noncontrolling 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 Redeem able 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 acquisitions is preliminary for up to 12 months after the acquisition date and is 
subject to refinement as more detailed analyses are completed and additional information about the fair values of the assets and liabilities becomes 
available.  
Business divestments 
In the year and three months ended December 31, 2023, the Company received proceeds (net of transaction costs and cash disposed) of $553  million and 
$1 million, respectively, relating to divestments of consolidated businesses and recorded gains of $101  million and $4 million, respectively, in “Other 
income (expense), net” on the sale of such businesses. These are primarily due th e divestment of the Company’s Power Conversion Division to AcBel 
Polytech Inc., which prior to its sale was part of the Company’s Electrification operating segment. Certain amounts included in the net g ain for the sale 
of Power Conversion Division are estimated or otherwise subject to change in value and, as a result, the Company may record additional adjustments to 
the gain in future periods which are not expected to have a material impact on the consolidated financial statements.  
On September 7, 2022, the shareholders approved the spin -off of the Company’s Turbocharging Division into an independent, publicly traded company, 
Accelleron Industries AG (Accelleron), which was completed through the distribution of common stock of Accelleron to the stoc kholders of ABB on 
October 3, 2022. As a result of the spin-off of this Division, the Company distributed net assets of $272  million, net of amounts attributable to 
noncontrolling interests of $12 million, which was reflected as a reduction in Retained earnings. In addition, total accumulated comprehensive income of 
$95 million, including the cumulative translation adjustment, was reclassified to Retained earnings. Cash and cash equivalents di stributed with 
Accelleron was $172 million. The results of operations of the Turbocharging Division, are included in the continuing operations of the Process 
Automation operating segment for all periods presented through to the spin -off date. In the year ended December 31, 2022, Income continuing 
operations before taxes, included income of $134 million from this Division. In anticipation of the spin -off, the Company granted to a subsidiary of 
Accelleron access to funds in the form of a short-term intercompany loan. At the spin-off date, this loan, having a principal amount of 300  million Swiss 
francs ($306 million at the date of spin-off), was due to the Company and subsequently collected in October 2022.  
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. 
In September 2022, the Company and Hitachi agreed terms to sell the Company’s remaining investment in Hitachi Energy to Hitac hi and simultaneously 
settle certain outstanding contractual obligations relating to the initial sale of the Power Grids business, including certai n indemnification guarantees 
(see Note 15). The sale of the remaining investment was completed in December 2022, resulting in cash proceeds of $1,552  million and a gain of 
$43 million which was recorded in “Other income (expense), net”.

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

16 Q4 2023 FINANCIAL INFORMATION  
In the year and three months ended December 31, 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:  
  Year ended December 31, Three months ended December 31, 
 ($ in millions) 2023 2022 2023 2022 
 Income (loss) from equity-accounted companies, net of taxes  (16) (22) (5) 12 
 Basis difference amortization (net of deferred income tax benefit)  – (80) – (14) 
 Loss from equity-accounted companies (16) (102) (5) (2) 
 
 
 
─ 
Note 5 
Cash and equivalents, marketable securities and short-term investments 
Cash and equivalents, marketable securities and short -term investments consisted of the following:  
   December 31, 2023 
       Cash and Marketable 
    Gross Gross  equivalents securities 
    unrealized unrealized  and restricted and short-term 
 ($ in millions) Cost basis gains losses Fair value cash investments 
 Changes in fair value        
 recorded in net income       
 Cash 1,449   1,449 1,449  
 Time deposits 2,923   2,923 2,460 463 
 Equity securities 1,250 32  1,282  1,282 
  5,622 32 – 5,654 3,909 1,745 
 Changes in fair value recorded       
 in other comprehensive income       
 Debt securities available-for-sale:       
  U.S. government obligations 189 2 (8) 183  183 
  189 2 (8) 183 – 183 
 Total 5,811 34 (8) 5,837 3,909 1,928 
 Of which:        
  Restricted cash, current     18  
         
 
   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 Q4 2023 FINANCIAL INFORMATION  
─ 
Note 6 
Derivative financial instruments 
The Company is exposed to certain currency, commodity  and interest rate risks arising from its global operating, financing and investing activities. The 
Company uses derivative instruments to reduce and manage the economic impact of these exposures.  
Currency risk  
Due to the global nature of the Company’s operations, many of its subsidiaries are exposed to currency risk in their operatin g activities from entering 
into transactions in currencies other than their functional currency. To manage such currency risks, the Company’s policies r equire its subsidiaries to 
hedge their foreign currency exposures from binding sales and purchase contracts denominated in foreign currencies. For forec asted foreign currency 
denominated sales of standard products and the related foreign currency denominated purchases, the Company’s policy is to hed ge up to a maximum 
of 100 percent of the forecasted foreign currency denominated exposures, depending on the length of the forecasted exposures. Foreca sted exposures 
greater than 12 months are not hedged. Forward foreign exchange contracts are the main instrument used to protect the Company against the vol atility 
of future cash flows (caused by changes in exchange rates) of contracted and forecasted sales and purchases denominated in fo reign currencies. In 
addition, within its treasury operations, the Company primarily uses foreign exchange swaps and forward foreign exchange cont racts to manage the 
currency and timing mismatches arising in its liquidity management activities.  
Commodity risk 
Various commodity products are used in the Company’s manufacturing activities. Consequently it is exposed to volatility in fu ture cash flows arising 
from changes in commodity prices. To manage the price risk of commodities, the Com pany’s policies require that its subsidiaries hedge the commodity 
price risk exposures from binding contracts, as well as at least 50  percent (up to a maximum of 100 percent) of the forecasted commodity exposure over 
the next 12 months or longer (up to a maximum of 18 months). Primarily swap contracts are used to manage the associated price risks of commodities.  
Interest rate risk  
The Company has issued bonds at fixed rates. Interest rate swaps and cross-currency interest rate swaps are used to manage the interest rate and 
foreign currency risk associated with certain debt and generally such swaps are designated as fair value hedges. In addition, from time to tim e, the 
Company uses instruments such as interest rate swaps, interest rate futures, bond futures or forward rate agreements to manag e interest rate risk 
arising from the Company’s balance sheet structure but does not designate such instruments as hedges.  
Volume of derivative activity 
In general, while the Company’s primary objective in its use of derivatives is to minimize exposures arising from its business, certain derivatives  are 
designated and qualify for hedge accounting treatment while others either are not designated or do not qualify for hedge acco unting. 
Foreign exchange and interest rate derivatives  
The gross notional amounts of outstanding foreign exchange and interest rate derivatives (whether designated as hedges or not ) were as follows: 
 Type of derivative Total notional amounts at 
 ($ in millions) December 31, 2023 December 31, 2022 
 Foreign exchange contracts 12,335 13,509 
 Embedded foreign exchange derivatives 1,137 933 
 Cross-currency interest rate swaps 886 855 
 Interest rate contracts 1,606 2,830 
 
Derivative commodity contracts 
The Company uses derivatives to hedge its direct or indirect exposure to the movement in the prices of commodities which are primarily copper, silver, 
steel and aluminum. The following table shows the notional amounts of outstanding derivatives (whether designated as hedges or not), on a net bas is, 
to reflect the Company’s requirements for these commodities: 
 Type of derivative Unit Total notional amounts at 
   December 31, 2023 December 31, 2022 
 Copper swaps metric tonnes 35,015 29,281 
 Silver swaps ounces 2,359,363 2,012,213 
 Steel swaps metric tonnes 10,206 – 
 Aluminum swaps metric tonnes 5,900 6,825 
 
Cash flow hedges 
As noted above, the Company mainly uses forward foreign exchange contracts to manage the foreign exchange risk of its operati ons and commodity 
swaps to manage its commodity risks. The Company applies cash flow hedge accounting in only limited cases. In these cases, th e effective portion of 
the changes in their fair value is recorded in “Accumulated other comprehensive loss” and subsequently reclassified into earn ings in the same line item 
and in the same period as the underlying hedged transaction affects earnings. For the year and three months ended December 31, 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 swaps  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 Q4 2023 FINANCIAL INFORMATION  
The effect of derivative instruments, designated and qualifying as fair value hedges, on the Consolidated Income Statements w as as follows: 
   Year ended December 31, Three months ended December 31, 
 ($ in millions)  2023 2022 2023 2022 
 Gains (losses) recognized in Interest and other finance expense:      
 Interest rate contracts Designated as fair value hedges 44 (91) 14 (8) 
  Hedged item (45) 93 (14) 8 
 Cross-currency interest rate swaps Designated as fair value hedges 30 (134) 43 (9) 
  Hedged item (40) 135 (42) 16 
 
Derivatives not designated in hedge relationships  
Derivative instruments that are not designated as hedges or do not qualify as either cash flow or fair value hedges are economic hedges used for risk 
management purposes. Gains and losses from changes in the fair values of such derivatives are recognized in the same line in the income statement as 
the economically hedged transaction. 
Furthermore, under certain circumstances, the Company is required to split and account separately for foreign currency deriva tives that are embedded 
within certain binding sales or purchase contracts denominated in a currency other than the functional currency of the subsid iary and the counterparty. 
The gains (losses) recognized in the Consolidated Income Statements on derivatives not designated in hedging relationships we re as follows: 
 Type of derivative not Gains (losses) recognized in income 
 designated as a hedge  Year ended December 31, Three months ended December 31, 
 ($ in millions) Location 2023 2022 2023 2022 
 Foreign exchange contracts Total revenues 145 (56) 158 145 
  Total cost of sales (71) 21 (51) (36) 
  SG&A expenses(1) 27 27 3 (8) 
  Non-order related research      
  and development (7) – (3) (2) 
  Interest and other finance expense (240) (128) (224) 11 
 Embedded foreign exchange Total revenues 18 (3) (21) (15) 
 contracts Total cost of sales 1 (11) 1 1 
 Commodity contracts Total cost of sales (3) (47) 4 25 
 Other Interest and other finance expense 1 4 – – 
 Total  (129) (193) (133) 121 
(1) SG&A expenses represent “Selling, general and  administrative expenses”.  
The fair values of derivatives included in the Consolidated Balance Sheets were as follows:  
  December 31, 2023 
  Derivative assets  Derivative liabilities 
  Current in Non-current in  Current in Non-current in 
  “Other current “Other non-current  “Other current “Other non-current 
 ($ in millions) assets” assets”  liabilities” liabilities” 
 Derivatives designated as hedging instruments:      
 Foreign exchange contracts – –  5 2 
 Interest rate contracts – –  18 – 
 Cross-currency interest rate swaps – –  – 230 
 Other 10 –  – – 
 Total 10 –  23 232 
       
 Derivatives not designated as hedging instruments:       
 Foreign exchange contracts 123 30  177 9 
 Commodity contracts 8 –  3 – 
 Interest rate contracts 1 –  1 – 
 Other equity contracts 4 –  – – 
 Embedded foreign exchange derivatives 23 5  26 5 
 Total 159 35  207 14 
 Total fair value 169 35  230 246

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

19 Q4 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 
 Other 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 December 31, 2023 and 2022, have been presented on a gross basis.  
The Company’s netting agreements and other similar arrangements allow net settlements under certain conditions. At December  31, 2023 and 2022, 
information related to these offsetting arrangements was as follows:  
 ($ in millions) December 31, 2023 
  Gross amount Derivative liabilities Cash Non-cash  
 Type of agreement or of recognized eligible for set-off collateral collateral Net asset 
 similar arrangement assets in case of default received received exposure 
 Derivatives 176 (111) – – 65 
 Total 176 (111) – – 65 
       
 ($ in millions) December 31, 2023 
  Gross amount Derivative liabilities Cash Non-cash  
 Type of agreement or   of recognized eligible for set-off collateral collateral Net liability 
 similar arrangement liabilities in case of default pledged pledged exposure 
 Derivatives 445 (111) – – 334 
 Total 445 (111) – – 334 
 
 ($ 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 Q4 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 an d, when necessary, to record 
certain non-financial assets at fair value on a non -recurring basis, as well as to determine fair value disclosures for certain financial instruments carried 
at amortized cost in the financial statements. Financial assets and liabilities recorded at fair value on a recurring basis i nclude foreign currency, 
commodity and interest rate derivatives, as well as available -for-sale securities. Non-financial assets recorded at fair value on a non -recurring basis 
include long-lived assets that are reduced to their estimated fair value due to impairments.  
Fair value is the price that would be received when selling an asset or paid to transfer a liability in an orderly transactio n between market participants at 
the measurement date. In determining fair value, the Company uses various valuation techniques including the market approach (using observable 
market data for identical or similar assets and liabilities), the income approach (discounted cash flow models) and the cost approach (using costs a 
market participant would incur to develop a comparable asset). Inputs used to determine the fair value of assets and liabilit ies are defined by a 
three-level hierarchy, depending on the nature of those inputs. The Company has categorized its financial assets and liabilities and non -financial assets 
measured at fair value within this hierarchy based on whether the inputs to the valuation technique are observable or unobser vable. An observable input 
is based on market data obtained from independent sources, while an unobservable input reflects the Company’s assumptions abo ut market data. 
The levels of the fair value hierarchy are as follows:  
Level 1:  Valuation inputs consist of quoted prices in an active market for identical assets or liabilities (observable quoted prices).  Assets and liabilities 
valued using Level 1 inputs include exchange‑traded equity securities, listed derivatives which are actively traded such as commodity futures, 
interest rate futures and certain actively traded debt securities . 
Level 2:  Valuation inputs consist of observable inputs (other than Level 1 inputs) such as actively quoted prices for similar assets, quoted prices in 
inactive markets and inputs other than quoted prices such as interest rate yield curves, credit spreads, or inputs derived fr om other observable 
data by interpolation, correlation, regression or other means. The adjustments applied to quoted prices or the inputs used in  valuation models 
may be both observable and unobservable. In these cases, the fair value measurement is classified as Level 2 unless the unobs ervable portion of 
the adjustment or the unobservable input to the valuation model is significant, in which case the fair value measurement woul d be classified as 
Level 3. Assets and liabilities valued or disclosed using Level 2 inputs include investments in certain funds, certain debt s ecurities that are not 
actively traded, interest rate swaps, cross-currency interest rate swaps, commodity swaps, forward foreign exchange contracts, foreign 
exchange swaps and forward rate agreements, time deposits, as well as financing receivables and debt.  
Level 3:  Valuation inputs are based on the Company’s assumptions of relevant market data (unobservable input).  
Whenever quoted prices involve bid-ask spreads, the Company ordinarily determines fair values based on mid -market quotes. 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 ac tivity for the financial 
instrument has significantly decreased or would not be considered orderly. In such cases, the resulting changes in valuation techniques would be 
disclosed. If the market is considered disorderly or if quoted prices are not available, the Company is required to use 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:  
  December 31, 2023 
 ($ in millions) Level 1 Level 2 Level 3 Total fair value 
 Assets     
 Securities in “Marketable securities and short-term investments”:     
 Equity securities – 1,282 – 1,282 
 Debt securities—U.S. government obligations 183 – – 183 
 Derivative assets—current in “Other current assets”  – 169 – 169 
 Derivative assets—non-current in “Other non-current assets” – 35 – 35 
 Total 183 1,486 – 1,669 
      
 Liabilities     
 Derivative liabilities—current in “Other current liabilities”  – 230 – 230 
 Derivative liabilities—non-current in “Other non-current liabilities” – 246 – 246 
 Total – 476 – 476

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

21 Q4 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 a ppropriate risk-free 
interest rate adjusted for non-performance risk. The inputs used in present value techniques are observable and fall into the Level  2 category.  
 
• Derivatives: The fair values of derivative instruments are determined using quoted prices of identical instruments from an active market , if 
available (Level 1 inputs). If quoted prices are not available, price quotes for similar instruments, appropriately adjusted, or present value  
techniques, based on available market data, or option pricing models are used. The fair values obtained using price quotes fo r similar 
instruments or valuation techniques represent a Level 2 input unless significant unobservable inputs are used.  
Non-recurring fair value measures  
There were no significant non-recurring fair value measurements during the years ended December 31, 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:  
  December 31, 2023 
 ($ in millions) Carrying value  Level 1 Level 2 Level 3 Total fair value 
 Assets       
 Cash and equivalents (excluding securities with original        
 maturities up to 3 months):       
 Cash 1,431  1,431 – – 1,431 
 Time deposits 2,460  – 2,460 – 2,460 
 Restricted cash 18  18 – – 18 
 Marketable securities and short-term investments       
 (excluding securities):       
 Time deposits 463  – 463 – 463 
        
 Liabilities       
 Short-term debt and current maturities of long-term debt       
 (excluding finance lease obligations) 2,576  2,521 55 – 2,576 
 Long-term debt (excluding finance lease obligations)  5,060  5,096 5 – 5,101 
 
 
  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 Q4 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 original maturities up to 3  months), Restricted cash, and Marketable securities and short -term 
investments (excluding securities): The carrying amounts approximate the fair values as the items are short -term in nature or, for cash held in 
banks, are equal to the deposit amount. 
• Short-term debt and current maturities of long-term debt (excluding finance lease obligations): Short-term debt includes commercial paper, 
bank borrowings and overdrafts. The carrying amounts of short -term debt and current maturities of long-term debt, excluding finance lease 
obligations, approximate their fair values. 
• Long-term debt (excluding finance lease obligations): Fair values of bonds are determined using quoted market prices (Level  1 inputs), if 
available. For bonds without available quoted market prices and other long -term debt, the fair values are determined using a discounted cash 
flow methodology based upon borrowing rates of similar debt instruments and reflecting appropriate adjustments for non -performance risk 
(Level 2 inputs). 
 
 
─ 
Note 8 
Contract assets and liabilities 
The following table provides information about Contract assets and Contract liabilities:  
 ($ in millions) December 31, 2023 December 31, 2022 December 31, 2021 
 Contract assets 1,090 954 990 
 Contract liabilities 2,844 2,216 1,894 
 
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: 
  Year ended December 31, 
  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    (1,311)    (1,043) 
 Additions to Contract liabilities - excluding amounts recognized as revenue during the period    1,845    1,481 
 Receivables recognized that were included in the Contract assets balance at Jan 1, 2023/2022  (622)    (591)   
 
The Company considers its order backlog to represent its unsatisfied performance obligations. At December 31, 2023, the Company had unsatisfied 
performance obligations totaling $21,567 million and, of this amount, the Company expects to fulfill approximately 69 percent of the obligations in 202 4, 
approximately 16 percent of the obligations in 2025 and the balance thereafter.

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

23 Q4 2023 FINANCIAL INFORMATION  
─ 
Note 9 
Debt 
The Company’s total debt at December 31, 2023 and 2022, amounted to $7,828 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) December 31, 2023 December 31, 2022 
 Short-term debt 87 1,448 
 Current maturities of long-term debt 2,520 1,087 
 Total 2,607 2,535 
 
Short-term debt primarily represented issued commercial paper and short-term bank borrowings from various banks. At December 31, 2023, no amount 
was outstanding under the $2 billion Euro-commercial paper program, while at December 31, 2022, $1,383 million was outstanding under this program . 
In September 2023, the Company repaid at maturity its CHF 275 million 0% Bonds, equivalent to $302 million on date of repayment. In May 2023, the 
Company repaid at 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 December 31, 2023 and 2022, amounted to $5,221 million and $5,143 million, respectively.  
Outstanding bonds (including maturities within the next 12 months) were as follows:   
  December 31, 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 $ 298 
 0.625% EUR Instruments, due 2024 EUR 700 $ 768 EUR 700 $ 720 
 Floating Rate EUR Instruments, due 2024 EUR 500 $ 554 EUR 500 $ 536 
 0.75% EUR Instruments, due 2024 EUR 750 $ 819 EUR 750 $ 769 
 0.3% CHF Bonds, due 2024 CHF 280 $ 335 CHF 280 $ 303 
 2.1% CHF Bonds, due 2025 CHF 150 $ 179 CHF 150 $ 162 
 1.965% CHF Bonds, due 2026 CHF 325 $ 387     
 3.25% EUR Instruments, due 2027 EUR 500 $ 551     
 0.75% CHF Bonds, due 2027 CHF 425 $ 507 CHF 425 $ 460 
 3.8% USD Notes, due 2028(2) USD 383 $ 382 USD 383 $ 381 
 1.9775% CHF Bonds, due 2028 CHF 150 $ 179     
 1.0% CHF Bonds, due 2029 CHF 170 $ 203 CHF 170 $ 184 
 0% EUR Instruments, due 2030 EUR 800 $ 749 EUR 800 $ 677 
 2.375% CHF Bonds, due 2030 CHF 150 $ 178 CHF 150 $ 162 
 3.375% EUR Instruments, due 2031 EUR 750 $ 818     
 2.1125% CHF Bonds, due 2033 CHF 275 $ 327     
 4.375% USD Notes, due 2042(2) USD 609 $ 591 USD 609 $ 590 
 Total    $ 7,527   $ 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). 
In September 2023, the Company issued the following CHF Bonds: (i) CHF 325 million of 1.965 percent Bonds, due 2026, (ii) CHF 150 million of 
1.9775 percent Bonds, due 2028, and (iii) CHF 275 million of 2.1125 percent Bonds, due 2033, all paying interest annually in arrears. The aggregate net 
proceeds of these CHF Bonds, after fees, amounted to CHF 748 million (equivalent to approximately $ 825 million on date of issuance). 
Subsequent events 
In January 2024, the Company issued the following EUR Instruments: (i) EUR 500 million of 3.125 percent notes, due 2029, and (ii) EUR 750 million of 
3.375 percent notes, due 2034, both paying interest annually in arrears. The aggregate net proceeds of these EUR Instruments, after discount and fees, 
amounted to EUR 1,243 million (equivalent to approximately $1,360 million on date of issuance).

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

24 Q4 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 payments 
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 SIU relating 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 still 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 private 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 authorities. With respect to the above -mentioned claims, regulatory matters, and any related 
proceedings, the Company will bear the related costs, including costs necessary to resolve them.  
Liabilities recognized 
At December 31, 2023 and 2022, the Company had aggregate liabilities of $101 million and $86 million, respectively, included in “Other provisions” and 
“Other non‑current liabilities”, for the above regulatory, compliance and legal contingencies, and none of the individual liabilities re cognized was 
significant. As it is not possible to make an informed judgment on, or reasonably predict, the outcome of certain matters and  as it is not possible, based 
on information currently available to management, to estimate the maximum potential liability on other matters, there could b e adverse outcomes 
beyond the amounts accrued. 
Guarantees  
General 
The following table provides quantitative data regarding the Company’s third -party guarantees. The maximum potential payments represent a 
“worst-case scenario”, and do not reflect management’s expected outcomes.  
 Maximum potential payments ($ in millions) December 31, 2023 December 31, 2022 
 Performance guarantees 3,451 4,300 
 Financial guarantees 94 96 
 Total(1) 3,545 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 amounts of liabilitie s at December 31, 2023 and 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 2032, mainly consist of performance guarantees whereby (i)  the Company guarantees the performance of a third party’s 
product or service according to the terms of a contract and (ii)  as member of a consortium/joint-venture that includes third parties, the Company 
guarantees not only its own performance but also the work of third parties. Such guarantees may include guarantees that a pro ject will be completed 
within a specified time. If the third party does not fulfill the obligation, the Company will compensate the guaranteed party  in cash or in kind. The 
original maturity dates for the majority of these performance guarantees range from one to ten years. 
In conjunction with the divestment of the high-voltage cable and cables accessories businesses, the Company has entered into various performance 
guarantees with other parties with respect to certain liabilities of the divested business. At  December 31, 2023 and 2022, the maximum potential payable 
under these guarantees amounts to $874 million and $843 million, respectively, and these guarantees have various original maturities ranging from five 
to ten years. 
The Company retained obligations for financial and performance guarantees related to the sale of the Power Grids business (see Note 3 for details). At 
both December 31, 2023 and 2022, the performance and financial guarantees have been  fully indemnified by Hitachi Ltd. These guarantees, which have 
various maturities up to 2032, 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 
December 31, 2023 and 2022, is approximately $2.2 billion and $3.0 billion, respectively. On completing the sale of the Company’s remaining 19.9  percent 
interest in Hitachi Energy Ltd. to Hitachi in 2022, the Company also settled certain existing indemnification guarantees that  were due to be settled 
concurrent with such transaction. As a result, in 2022, the Company recorded $136  million of cash outflows for the settlement of these liabilities 
(recorded in discontinued operations). 
Commercial commitments 
In addition, in the normal course of bidding for and executing certain projects, the Company has entered into standby letters of  credit, bid/performance 
bonds and surety bonds (collectively “performance bonds”) with various financial institutions. Customers can draw on such per formance bonds in the 
event that the Company does not fulfill its contractual obligations. The Company would then have an obligation to reimburse t he financial institution for 
amounts paid under the performance bonds. At December 31, 2023 and 2022, the total outstanding performance bonds aggregated to $3.1 billion and 
$2.9 billion, respectively. There have been no significant amounts reimbursed to financial institutions under these types of arrangements in the year and  
three months ended December 31, 2023 and 2022.

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

25 Q4 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 cert ain 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 
 Net change in warranties due to acquisitions, divestments and spin -offs – (24) 
 Claims paid in cash or in kind (171) (157) 
 Net increase in provision for changes in estimates, warranties issued and warranties expired  327 252 
 Exchange rate differences 26 (48) 
 Balance at December 31, 1,210 1,028 
 
Provisions for contractual penalties 
During the three months ended December 31, 2022, the Company reversed a provision of $61 million it had previously recorded relating to one of its 
divested businesses based on a settlement proposal issued by the ruling court. As the provision related to a customer contractual obligation, the 
adjustment was reported as an increase in Sales of products and resulted in an increase in earnings per share (basic and diluted) of $ 0.03 for both the 
year and three months ended December 31, 2022. In addition, as this amount relates to a divested business, it has been excluded from the Company’s 
primary measure of segment performance, Operational EBITA (See Note  17). 
 
 
 
─ 
Note 11 
Income taxes 
The effective tax rate of 19.5 percent in the year ended December 31, 2023, was lower than the effective tax rate of 22.3 percent in the year ended 
December 31, 2022, primarily due to a net benefit realized on a favorable resolution of an uncertain tax position  in the year ended December 31, 2023, 
while 2022 included positive impacts from a reversal of a valuation allowance in the Americas partially offset by the negativ e impact of non-deductible 
regulatory penalties in connection with the Kusile project .  
In February 2023, on completion of a tax audit, the Company obtained resolution of the uncertain tax position for which an amount was rec orded within 
Other non-current liabilities as of December 31, 2022. In the year ended December 31, 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 year ended December 31, 2023. 
 
 
─ 
Note 12 
Employee benefits 
The Company operates defined benefit pension plans, defined contribution pension plans, and termination indemnity plans, in a ccordance with local 
regulations and practices. At December 31, 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 of employment. Certain of these plans are multi -employer plans. The Company also operates other 
postretirement benefit plans including postretirement health care benefits and other employee -related benefits for active employees including 
long-service award plans. The 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 fo llowing: 
 ($ in millions) Defined pension benefits  Other postretirement 
  Switzerland International  benefits 
 Year ended December 31, 2023 2022 2023 2022  2023 2022 
 Operational pension cost:        
 Service cost 40 50 30 38  – – 
 Operational pension cost 40 50 30 38  – – 
 Non-operational pension cost (credit):        
 Interest cost 48 13 166 87  2 1 
 Expected return on plan assets (129) (116) (157) (153)  – – 
 Amortization of prior service cost (credit) (8) (9) (2) (2)  (1) (2) 
 Amortization of net actuarial loss – – 52 58  (4) (3) 
 Curtailments, settlements and special termination benefits  13 4 19 7  (16) – 
 Non-operational pension cost (credit) (76) (108) 78  (3)  (19) (4) 
 Net periodic benefit cost (credit) (36) (58) 108 35  (19) (4)

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

26 Q4 2023 FINANCIAL INFORMATION  
 ($ in millions) Defined pension benefits  Other postretirement 
  Switzerland International  benefits 
 Three months ended December 31, 2023 2022 2023 2022  2023 2022 
 Operational pension cost:        
 Service cost 11 10 9 12  – – 
 Operational pension cost 11 10 9 12  – – 
 Non-operational pension cost (credit):        
 Interest cost 13 11 44 26  1 – 
 Expected return on plan assets (35) (29) (41) (40)  – – 
 Amortization of prior service cost (credit) (2) (4) – –  – (1) 
 Amortization of net actuarial loss – – 13 14  (1) (1) 
 Curtailments, settlements and special termination benefits  13 4 1 7  – – 
 Non-operational pension cost (credit) (11) (18) 17  7  – (2) 
 Net periodic benefit cost (credit) – (8) 26 19  – (2) 
 
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. 
Employer contributions were as follows: 
 ($ in millions) Defined pension benefits  Other postretirement 
  Switzerland International  benefits 
 Year ended December 31, 2023 2022 2023 2022  2023 2022 
 Total contributions to defined benefit pension and         
 other postretirement benefit plans 18 37 89 58  32 7 
 Of which, discretionary contributions to defined benefit         
  pension plans – – 67 18  25 – 
 
 ($ in millions) Defined pension benefits  Other postretirement 
  Switzerland International  benefits 
 Three months ended December 31, 2023 2022 2023 2022  2023 2022 
 Total contributions to defined benefit pension and         
 other postretirement benefit plans 10 4 4 34  3 2 
 Of which, discretionary contributions to defined benefit         
 pension plans – – 11 18  – – 
 
 
─ 
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 December 31, 2023, 17 million shares, resulting in an increase in Treasury stock of $ 640 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. 
In addition to the share buyback programs, the Company purchased 9 million of its own shares on the open market in the year ended December  31, 2023, 
mainly for use in connection with its employee share plans, resulting in an increase in Treasury stock of $ 354 million. 
In the year ended December 31, 2023, the Company delivered, out of treasury stock, approximately 6 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. In December 2023, an agreement was 
reached to increase the ownership percentage of the investors participating in these private placements to 25  percent for no additional consideration.

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

27 Q4 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   
  Year ended December 31, Three months ended December 31, 
 ($ in millions, except per share data in $) 2023 2022 2023 2022 
 Amounts attributable to ABB shareholders:      
 Income from continuing operations, net of tax  3,769 2,517 929 1,138 
 Loss from discontinued operations, net of tax  (24) (42) (8) (6) 
 Net income 3,745 2,475 921 1,132 
      
 Weighted-average number of shares outstanding (in millions)  1,855 1,899 1,845 1,870 
      
 Basic earnings per share attributable to ABB shareholders:     
 Income from continuing operations, net of tax  2.03 1.33 0.50 0.61 
 Loss from discontinued operations, net of tax  (0.01) (0.02) 0.00 0.00 
 Net income 2.02 1.30 0.50 0.61 
      
 Diluted earnings per share   
  Year ended December 31, Three months ended December 31, 
 ($ in millions, except per share data in $) 2023 2022 2023 2022 
 Amounts attributable to ABB shareholders:      
 Income from continuing operations, net of tax  3,769 2,517 929 1,138 
 Loss from discontinued operations, net of tax  (24) (42) (8) (6) 
 Net income 3,745 2,475 921 1,132 
      
 Weighted-average number of shares outstanding (in millions)  1,855 1,899 1,845 1,870 
 Effect of dilutive securities:     
 Call options and shares 12 11 11 11 
 Adjusted weighted-average number of shares outstanding (in millions)  1,867 1,910 1,856 1,881 
      
 Diluted earnings per share attributable to ABB shareholders:      
 Income from continuing operations, net of tax  2.02 1.32 0.50 0.60 
 Loss from discontinued operations, net of tax  (0.01) (0.02) 0.00 0.00 
 Net income 2.01 1.30 0.50 0.60

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

28 Q4 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 (685) (23) 226 (12) (494) 
 Amounts reclassified from OCI 46 2 29 12 89 
 Total other comprehensive (loss) income (639) (21) 255 – (405) 
 Spin-off of the Turbocharging Division  (93) – (5) – (98) 
       
 Less:      
 Amounts attributable to      
  noncontrolling interests (34) – (1) – (35) 
 Balance at December 31, 2022 (3,691) (19) (838) (8) (4,556) 
 Other comprehensive (loss) income:      
 Other comprehensive (loss) income      
 before reclassifications (290) 5 (283) (10) (578) 
 Amounts reclassified from OCI 9 6 46 8 69 
 Total other comprehensive (loss) income  (281) 11 (237) (2) (509) 
       
 Less:      
 Amounts attributable to      
  noncontrolling interests and      
 redeemable noncontrolling interests 5 – – – 5 
 Balance at December 31, 2023 (3,977) (8) (1,075) (10) (5,070) 
 
The following table reflects amounts reclassified out of OCI in respect of Foreign currency translation adjustments and Pension and other 
postretirement plan adjustments: 
   Year ended Three months ended 
 ($ in millions) Location of (gains) losses December 31, December 31, 
 Details about OCI components reclassified from OCI 2023 2022 2023 2022 
       
 Foreign currency translation adjustments:      
 Changes attributable to divestments Other income (expense), net 9 41 – 41 
 Net loss on complete or substantially complete      
 liquidations of foreign subsidiaries Other income (expense), net – 5 – – 
 Amounts reclassified from OCI  9 46 – 41 
       
 Pension and other postretirement plan adjustments:       
 Amortization of prior service cost (credit) Non-operational pension (cost) credit (11) (13) (2) (5) 
 Amortization of net actuarial loss Non-operational pension (cost) credit 48 55 12 13 
 Net gain (loss) from settlements and curtailments  Non-operational pension (cost) credit 16 11 14 11 
 Changes attributable to divestments Other income (expense), net 3 (8) 3 (8) 
 Total before tax  56 45 27 11 
 Tax Income tax expense (10) (16) (9) (6) 
 Amounts reclassified from OCI  46 29 18 5 
 
The amounts in respect of Unrealized gains (losses) on available -for-sale securities and Derivative instruments and hedges were not significant for the 
year and three months ended December 31, 2023 and 2022.

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

29 Q4 2023 FINANCIAL INFORMATION  
─ 
Note 16 
Restructuring and related expenses 
Restructuring-related activities 
In the year and three months ended December 31, 2023 and 2022, the Company executed various restructuring -related activities and incurred the 
following expenses:  
  Year ended December 31, Three months ended December 31, 
 ($ in millions) 2023 2022 2023 2022 
 Employee severance costs 120 81 82 17 
 Estimated contract settlement, loss order and other costs  7 209 3 4 
 Inventory and long-lived asset impairments 49 7 31 2 
 Total 176 297 116 23 
 
Expenses associated with these activities are recorded in the following line items in the Consolidated Income Statements:  
  Year ended December 31, Three months ended December 31, 
 ($ in millions) 2023 2022 2023 2022 
 Total cost of sales 65 24 46 11 
 Selling, general and administrative expenses 52 40 38 1 
 Non-order related research and development expenses  3 2 3 – 
 Other income (expense), net 56 231 29 11 
 Total 176 297 116 23 
 
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 December 31, 2023 and 2022, $250 million and $198 million, respectively, was recorded for 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 remaining operations of the Company are i ncluded 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 year and three months ended December  31, 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 follows:  
• Electrification: manufactures and sells electrical products and solutions which are designed to provide safe, smart and sustainable electrical 
flow from the substation to the socket. The portfolio of increasingly digital and connected solutions includes renewable power 
solutions, modular substation packages, distribution automation products, switchboard s and panelboards, switchgear, UPS solutions, circuit 
breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems and intelligent  home and 
building solutions, designed to integrate and automate lighting, heating, ventilation, security and data communication networ ks. The 
products and services are delivered through six operating Divisions: Distribution Solutions, Smart Power, Smart Buildings, Installation 
Products and Service, as well as, prior to its sale in July 2023, the Power Conversion Division. 
 
• Motion: designs, manufactures, and sells drives, motors, generators and traction converters that are driving the low -carbon future for 
industries, cities, infrastructure and transportation. These products, digital technology and related services enable industr ial customers to 
increase energy efficiency, improve safety and reliability, and achieve precise control of their processes. Building on over 140 years of 
cumulative experience in electric powertrains, Motion combines domain expertise and technology to deliver the optimum solution for a wide 
range of applications in all industrial segments. In addition, Motion, along with its partners, has a leading global service presence. These 
products and services are delivered through seven operating Divisions: Large Motors and Generators, IEC LV Motors, NEMA Motors, Drive 
Products, System Drives, Service and Traction.

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

30 Q4 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 provides industrial 
and collaborative robots, autonomous mobile robotics, mapping and navigation solutions, robotic solutions, field services, spare parts and 
digital services. Machine Automation specializes in automation solutions based on its programmable logic controllers (PLC), i ndustrial PCs 
(IPC), servo motion, transport systems and machine vision. Both divisions offer software across the entire life cycle, includ ing engineering and 
simulation software as well as a comprehensive range of digital solutions.  
Corporate and Other: Corporate includes headquarter costs, the Company’s corporate real estate activities and the Corporate Treasury Operations 
while Other includes the E-mobility operating segment, other non-core operating activities as well as the operating activities of certain divested 
businesses. 
The primary measure of profitability on which the operating segments are evaluated is Operational EBITA, which represents inc ome from operations 
excluding: 
• amortization expense on intangibles arising upon acquisition ( acquisition-related amortization),  
• restructuring, related and implementation costs , 
• changes in the amount recorded for obligations related to divested businesses occurring after the divestment date (changes in  obligations 
related to divested businesses), 
• gains and losses from sale of businesses (including fair value adjustment on assets and liabilities held for sale , if any),  
• acquisition- and divestment-related expenses and integration costs, 
• certain other non-operational items, as well as  
• foreign exchange/commodity timing differences in income from operations consisting of:  (a) unrealized gains and losses on derivatives 
(foreign exchange, commodities, embedded derivatives), (b)  realized gains and losses on derivatives where the underlying hedged transaction 
has not yet been realized, and (c) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities).  
Certain other non-operational items generally includes certain regulatory, compliance and legal costs, certain asset write downs/impairments  and 
certain other fair value changes, 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  current market prices. 
The following tables present disaggregated segment revenues from contracts with customers , Operational EBITA, and the reconciliations of 
consolidated Operational EBITA to Income from continuing operations before taxes for the year and three months ended December  31, 2023 and 2022, 
as well as total assets at December 31, 2023 and 2022. 
  Year ended December 31, 2023 
     Robotics &   
    Process Discrete Corporate  
 ($ in millions) Electrification Motion Automation Automation and Other Total 
 Geographical markets        
 Europe  4,547 2,455 2,294 1,932 340 11,568 
 The Americas  5,926 2,562 1,738 573 291 11,090 
 of which: United States 4,456 2,123 1,076 358 235 8,248 
 Asia, Middle East and Africa  3,899 2,276 2,212 1,119 71 9,577 
 of which: China 1,775 1,148 707 804 34 4,468 
  14,372 7,293 6,244 3,624 702 32,235 
 Product type        
 Products 13,437 6,219 3,661 3,063 630 27,010 
 Services and other 935 1,074 2,583 561 72 5,225 
  14,372 7,293 6,244 3,624 702 32,235 
        
 Third-party revenues 14,372 7,293 6,244 3,624 702 32,235 
 Intersegment revenues 212 521 26 16 (775) – 
 Total revenues(1) 14,584 7,814 6,270 3,640 (73) 32,235

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

31 Q4 2023 FINANCIAL INFORMATION  
  Year ended December 31, 2022 
     Robotics &   
    Process Discrete Corporate  
 ($ in millions) Electrification Motion Automation Automation and Other Total 
 Geographical markets        
 Europe  4,199 2,031 2,248 1,494 313 10,285 
 The Americas  5,140 2,148 1,566 524 195 9,573 
 of which: United States 3,769 1,787 943 373 151 7,023 
 Asia, Middle East and Africa  4,053 2,101 2,199 1,155 80 9,588 
 of which: China 1,948 1,147 666 897 38 4,696 
  13,392 6,280 6,013 3,173 588 29,446 
 Product type        
 Products 12,535 5,380 3,311 2,695 550 24,471 
 Services and other 857 900 2,702 478 38 4,975 
  13,392 6,280 6,013 3,173 588 29,446 
        
 Third-party revenues 13,392 6,280 6,013 3,173 588 29,446 
 Intersegment revenues 227 465 31 8 (731) – 
 Total revenues(1) 13,619 6,745 6,044 3,181 (143) 29,446 
 
  Three months ended December 31, 2023 
     Robotics &   
    Process Discrete Corporate  
 ($ in millions) Electrification Motion Automation Automation and Other Total 
 Geographical markets        
 Europe  1,136 597 631 476 111 2,951 
 The Americas  1,533 638 459 142 75 2,847 
 of which: United States 1,164 521 278 89 53 2,105 
 Asia, Middle East and Africa  987 577 632 233 18 2,447 
 of which: China 419 282 205 147 11 1,064 
  3,656 1,812 1,722 851 204 8,245 
 Product type        
 Products 3,387 1,524 994 710 185 6,800 
 Services and other 269 288 728 141 19 1,445 
  3,656 1,812 1,722 851 204 8,245 
        
 Third-party revenues 3,656 1,812 1,722 851 204 8,245 
 Intersegment revenues 42 134 5 1 (182) – 
 Total revenues(1) 3,698 1,946 1,727 852 22 8,245 
 
  Three months ended December 31, 2022 
     Robotics &   
    Process Discrete Corporate  
 ($ in millions) Electrification Motion Automation Automation and Other Total 
 Geographical markets        
 Europe  1,074 601 522 424 144 2,765 
 The Americas  1,341 574 431 147 62 2,555 
 of which: United States 992 480 262 106 58 1,898 
 Asia, Middle East and Africa  1,033 537 592 317 25 2,504 
 of which: China 442 259 168 251 13 1,133 
  3,448 1,712 1,545 888 231 7,824 
 Product type        
 Products 3,207 1,449 891 760 218 6,525 
 Services and other 241 263 654 128 13 1,299 
  3,448 1,712 1,545 888 231 7,824 
        
 Third-party revenues 3,448 1,712 1,545 888 231 7,824 
 Intersegment revenues 50 133 6 3 (192) – 
 Total revenues(1) 3,498 1,845 1,551 891 39 7,824 
(1) Due to rounding, numbers presented may not add to the totals provided.

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

32 Q4 2023 FINANCIAL INFORMATION  
  Year ended  Three months ended 
  December 31, December 31, 
 ($ in millions) 2023 2022 2023 2022 
 Operational EBITA:     
 Electrification 2,937 2,343 725 575 
 Motion 1,475 1,163 318 318 
 Process Automation 909 848 239 203 
 Robotics & Discrete Automation 536 340 118 125 
 Corporate and Other     
 ‒ E-mobility (167) (15) (33) (3) 
 ‒ Corporate costs, Intersegment elimination and other  (263) (169) (34) (72) 
 Total 5,427 4,510 1,333 1,146 
 Acquisition-related amortization (220) (229) (56) (55) 
 Restructuring, related and implementation costs (1) (219) (347) (127) (47) 
 Changes in obligations related to divested businesses  3 88 (2) 71 
 Gains and losses from sale of businesses  101 (7) 4 (3) 
 Acquisition- and divestment-related expenses and integration costs (74) (195) (19) (24) 
 Foreign exchange/commodity timing differences in income from operations:      
 Unrealized gains and losses on derivatives (foreign exchange,      
 commodities, embedded derivatives) 19 32 77 139 
 Realized gains and losses on derivatives where the underlying hedged      
 transaction has not yet been realized 12 (48) 20 – 
 Unrealized foreign exchange movements on receivables/payables (and      
 related assets/liabilities) (13) (15) (38) (70) 
 Certain other non-operational items:     
 Other income/expense relating to the Power Grids joint venture  36 (57) 9 10 
 Regulatory, compliance and legal costs – (317) – 16 
 Business transformation costs(2) (205) (152) (66) (38) 
 Changes in pre-acquisition estimates (4) (10) – (10) 
 Gains and losses from sale of investments in     
 equity-accounted companies – 43 – 43 
 Certain other fair value changes, including asset impairments  (10) 45 (13) (13) 
 Other non-operational items 18 (4) (6) 20 
 Income from operations 4,871 3,337 1,116 1,185 
 Interest and dividend income 165 72 50 22 
 Interest and other finance expense (275) (130) (78) (23) 
 Non-operational pension (cost) credit 17 115 (6) 13 
 Income from continuing operations before taxes 4,778 3,394 1,082 1,197 
(1) Includes impairment of certain assets.  
(2) Amount includes ABB Way process transformation costs of $188  million and $131  million for year ended December  31, 2023 and 2022, respectively, and $66 million 
and $33 million for the three months ended December  31, 2023 and 2022 , respectively.  
  Total assets(1) 
 ($ in millions) December 31, 2023 December 31, 2022 
 Electrification 12,668 12,500 
 Motion 7,016 6,565 
 Process Automation 4,971 4,598 
 Robotics & Discrete Automation 5,047 4,901 
 Corporate and Other(2) 11,238 10,584 
 Consolidated 40,940 39,148 
(1) Total assets are after intersegment eliminations and therefore reflect third -party assets only.  
(2) At December  31, 2023  and 2022 , respectively, Corporate and Other includes $ 57 million and $96  million of assets in the Power Grids business which is reported as 
discontinued operations (see Note  3).

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

33 Q4 2023 FINANCIAL INFORMATION

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

34 Q4 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 year and three months ended December  31, 2023.  
 
Comparable growth rates  
Growth rates for certain key figures may be presented and discussed on a “comparable” basis. The comparable growth rate measu res growth on a 
constant currency basis. Since we are a global company, the comparability of our operating results reported in U.S. dollars i s affected by foreign 
currency exchange rate fluctuations. We calculate the impacts from foreign currency fluctuations by translating the current -year periods’ reported key 
figures into U.S. dollar amounts using the exchange rates in effect for the comparable periods in the previous year.  
Comparable growth rates are also adjusted for changes in our business portfolio. Adjustments to our business portfolio occur due to acquisitions, 
divestments, or by exiting specific business activities or customer markets. The adjustment for portfolio changes is calculat ed as follows: where the 
results of any business acquired or divested have not been consolidated and reported for the entire duration of both the curr ent and comparable 
periods, the reported key figures of such business are adjusted to exclude the relevant key figures of any corresponding quar ters which are not 
comparable when computing the comparable growth rate. Certain portfolio changes which do not qualify as divestments under U.S . GAAP have been 
treated in a similar manner to divestments. Changes in our portfolio where we have exited certain business activities or cust omer markets are adjusted 
as if the relevant business was divested in the period when the decision to cease business activities was taken. We do not ad just for portfolio changes 
where the relevant business has annualized revenues of less than $50 million.  
The following tables provide reconciliations of reported growth rates of certain key figures to their respective comparable g rowth rate. 
 
Comparable growth rate reconciliation by Business Area 
  Q4 2023 compared to Q4 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  0% -1% 3% 2%  6% -1% 3% 8% 
 Motion 17% -2% -2% 13%  5% -1% -2% 2% 
 Process Automation 7% -2% 0% 5%  11% -1% 0% 10% 
 Robotics & Discrete Automation -31% -2% 0% -33%  -4% -3% 0% -7% 
 ABB Group 0% -1% 1% 0%  5% -1% 2% 6% 
 
 
  FY 2023 compared to FY 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  0% 1% 2% 3%  7% 1% 2% 10% 
 Motion 4% 1% -1% 4%  16% 1% -2% 15% 
 Process Automation 10% 2% 12% 24%  4% 1% 11% 16% 
 Robotics & Discrete Automation -26% 1% 0% -25%  14% 0% 0% 14% 
 ABB Group -1% 2% 2% 3%  9% 2% 3% 14%

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

35 Q4 2023 FINANCIAL INFORMATION  
Regional comparable growth rate reconciliation  
Regional comparable growth rate reconciliation  for ABB Group - Quarter 
  Q4 2023 compared to Q4 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% -5% 2% -5%  7% -5% 2% 4% 
 The Americas 3% -1% 1% 3%  11% -1% 4% 14% 
 of which: United States 5% -1% 2% 6%  11% 0% 4% 15% 
 Asia, Middle East and Africa 0% 1% 1% 2%  -2% 2% 0% 0% 
 of which: China -8% 1% 0% -7%  -6% 0% 1% -5% 
 ABB Group 0% -1% 1% 0%  5% -1% 2% 6% 
Regional comparable growth rate reconciliation  by Business Area - Quarter 
 
  Q4 2023 compared to Q4 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 7% -5% 2% 4%  5% -5% 0% 0% 
 The Americas -1% -1% 3% 1%  14% -1% 8% 21% 
 of which: United States -3% 0% 4% 1%  17% 0% 11% 28% 
 Asia, Middle East and Africa -5% 3% 2% 0%  -4% 3% 1% 0% 
 of which: China -9% 1% 2% -6%  -4% 1% 1% -2% 
 Electrification 0% -1% 3% 2%  6% -1% 3% 8% 
  
  Q4 2023 compared to Q4 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 30% -8% -4% 18%  -1% -5% -1% -7% 
 The Americas 14% -2% -3% 9%  12% -1% -4% 7% 
 of which: United States 14% -1% -3% 10%  9% -1% -3% 5% 
 Asia, Middle East and Africa 10% 2% 0% 12%  6% 2% 0% 8% 
 of which: China 10% 1% 0% 11%  7% 2% 0% 9% 
 Motion 17% -2% -2% 13%  5% -1% -2% 2% 
  
  Q4 2023 compared to Q4 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% -4% 0% -4%  21% -3% 0% 18% 
 The Americas 13% -3% 0% 10%  6% -1% 0% 5% 
 of which: United States 30% -5% 0% 25%  6% -1% 0% 5% 
 Asia, Middle East and Africa 10% 1% 0% 11%  7% 1% 0% 8% 
 of which: China -4% -1% 0% -5%  14% 1% 0% 15% 
 Process Automation 7% -2% 0% 5%  11% -1% 0% 10% 
  
  Q4 2023 compared to Q4 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 -34% -4% 0% -38%  12% -5% 0% 7% 
 The Americas -19% -2% 0% -21%  -3% -2% 0% -5% 
 of which: United States -19% 0% 0% -19%  -16% 0% 0% -16% 
 Asia, Middle East and Africa -33% 2% 0% -31%  -28% 1% 0% -27% 
 of which: China -36% 2% 0% -34%  -42% 1% 0% -41% 
 Robotics & Discrete Automation -31% -2% 0% -33%  -4% -3% 0% -7%

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

36 Q4 2023 FINANCIAL INFORMATION  
Regional comparable growth rate reconciliation  for ABB Group – Year to date 
  FY 2023 compared to FY 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 -3% -1% 3% -1%  12% -1% 3% 14% 
 The Americas 5% 0% 2% 7%  16% -1% 3% 18% 
 of which: United States 3% 0% 2% 5%  17% 0% 4% 21% 
 Asia, Middle East and Africa -4% 5% 3% 4%  0% 5% 3% 8% 
 of which: China -12% 5% 2% -5%  -5% 4% 2% 1% 
 ABB Group -1% 2% 2% 3%  9% 2% 3% 14% 
Regional comparable growth rate reconciliation  by Business Area – Year to date 
 
  FY 2023 compared to FY 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% -2% 1% 0%  7% -2% 1% 6% 
 The Americas 1% 0% 2% 3%  15% 0% 4% 19% 
 of which: United States -1% 0% 3% 2%  18% 0% 5% 23% 
 Asia, Middle East and Africa -2% 7% 1% 6%  -4% 7% 1% 4% 
 of which: China -9% 5% 1% -3%  -9% 5% 1% -3% 
 Electrification 0% 1% 2% 3%  7% 1% 2% 10% 
  
  FY 2023 compared to FY 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 3% -2% -1% 0%  19% -3% -1% 15% 
 The Americas 5% -1% -2% 2%  20% 0% -4% 16% 
 of which: United States 3% -1% -2% 0%  19% 0% -3% 16% 
 Asia, Middle East and Africa 4% 6% 0% 10%  9% 5% 0% 14% 
 of which: China -1% 5% 0% 4%  1% 5% 0% 6% 
 Motion 4% 1% -1% 4%  16% 1% -2% 15% 
  
  FY 2023 compared to FY 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 13% 1% 13% 27%  2% 0% 12% 14% 
 The Americas 22% -1% 9% 30%  11% -1% 10% 20% 
 of which: United States 25% -3% 12% 34%  14% 0% 12% 26% 
 Asia, Middle East and Africa -2% 4% 12% 14%  0% 5% 12% 17% 
 of which: China -3% 5% 14% 16%  4% 5% 13% 22% 
 Process Automation 10% 2% 12% 24%  4% 1% 11% 16% 
  
  FY 2023 compared to FY 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 -28% 0% 0% -28%  30% -3% 0% 27% 
 The Americas -11% -1% 0% -12%  10% -2% 0% 8% 
 of which: United States -17% 0% 0% -17%  -3% -1% 0% -4% 
 Asia, Middle East and Africa -29% 4% 0% -25%  -3% 4% 0% 1% 
 of which: China -35% 4% 0% -31%  -10% 3% 0% -7% 
 Robotics & Discrete Automation -26% 1% 0% -25%  14% 0% 0% 14%

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

37 Q4 2023 FINANCIAL INFORMATION  
Order backlog growth rate reconciliation 
  December 31, 2023 compared to December 31, 2022  
  US$ Foreign    
  (as exchange Portfolio   
 Business Area reported) impact changes Comparable  
 Electrification  6% 0% 8% 14%  
 Motion 13% -4% -1% 8%  
 Process Automation 21% -2% 0% 19%  
 Robotics & Discrete Automation -20% 0% 0% -20%  
 ABB Group 9% -2% 2% 9%  
 
 
Other growth rate reconciliations 
  Q4 2023 compared to Q4 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  10% -1% 0% 9%  11% 0% 0% 11% 
 Motion 32% -1% 0% 31%  9% -1% 0% 8% 
 Process Automation 29% -3% 0% 26%  11% -1% 0% 10% 
 Robotics & Discrete Automation 10% -2% 0% 8%  11% -3% 0% 8% 
 ABB Group 22% -2% 0% 20%  11% -1% 0% 10% 
 
 
  FY 2023 compared to FY 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  7% 1% 0% 8%  9% 1% 0% 10% 
 Motion 13% 2% 0% 15%  19% 2% 0% 21% 
 Process Automation 4% 0% 21% 25%  -4% 1% 18% 15% 
 Robotics & Discrete Automation 10% 0% 0% 10%  17% 0% 0% 17% 
 ABB Group 7% 1% 10% 18%  5% 1% 10% 16%

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

38 Q4 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 , if any),  
• acquisition- and divestment-related expenses and integration costs,  
• certain other non-operational items, as well as  
• foreign exchange/commodity timing differences in income from operations consisting of: (a)  unrealized gains and losses on derivatives 
(foreign exchange, commodities, embedded derivatives), (b)  realized gains and losses on derivatives where the underlying hedged transaction 
has not yet been realized, and (c) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities).  
Certain other non-operational items generally includes certain regulatory, compliance and legal costs, certain asset write downs/impairments and 
certain other fair value changes, 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 consists of restructuring and other related expenses, as well as internal and  external costs relating to 
the implementation of group-wide restructuring programs. 
Operational revenues 
The Company presents operational revenues solely for the purpose of allowing the computation of Operational EBITA margin. Operational revenues are 
Total revenues adjusted for foreign exchange/commodity timing differences in total revenues of: (i)  unrealized gains and losses on derivatives, 
(ii) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, and (iii)  unrealized foreign exchange 
movements on receivables (and related assets). Operational revenues are not intended to be an alternative measure to Total revenues, which represent 
our revenues measured in accordance with U.S. GAAP.  
Reconciliation 
The following tables provide reconciliations of consolidated Operational EBITA to Net Income and Operational EBITA Margin by business.  
Reconciliation of consolidated Operational EBITA to Net Income  
  Year ended December 31, Three months ended December 31, 
 ($ in millions) 2023 2022 2023 2022 
 Operational EBITA 5,427 4,510 1,333 1,146 
 Acquisition-related amortization (220) (229) (56) (55) 
 Restructuring, related and implementation costs (1) (219) (347) (127) (47) 
 Changes in obligations related to divested businesses  3 88 (2) 71 
 Gains and losses from sale of businesses  101 (7) 4 (3) 
 Acquisition- and divestment-related expenses and integration costs  (74) (195) (19) (24) 
 Certain other non-operational items (165) (452) (76) 28 
 Foreign exchange/commodity timing differences in income from operations  18 (31) 59 69 
 Income from operations 4,871 3,337 1,116 1,185 
 Interest and dividend income 165 72 50 22 
 Interest and other finance expense (275) (130) (78) (23) 
 Non-operational pension (cost) credit 17 115 (6) 13 
 Income from continuing operations before taxes  4,778 3,394 1,082 1,197 
 Income tax expense (930) (757) (136) (29) 
 Income from continuing operations, net of tax  3,848 2,637 946 1,168 
 Loss from discontinued operations, net of tax  (24) (43) (8) (7) 
 Net income 3,824 2,594 938 1,161 
(1) Includes impairment of certain assets.

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

39 Q4 2023 FINANCIAL INFORMATION  
Reconciliation of Operational EBITA margin by business  
  Three months ended December 31, 2023 
      Corporate and  
     Robotics & Other and  
    Process Discrete Intersegment  
 ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated 
 Total revenues 3,698 1,946 1,727 852 22 8,245 
 Foreign exchange/commodity timing       
 differences in total revenues:       
 Unrealized gains and losses       
 on derivatives (33) (48) (23) (5) (4) (113) 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized (3) 1 (10) (1) (2) (15) 
 Unrealized foreign exchange movements        
 on receivables (and related assets) 21 12 12 8 9 62 
 Operational revenues 3,683 1,911 1,706 854 25 8,179 
        
 Income (loss) from operations 670 292 259 99 (204) 1,116 
 Acquisition-related amortization 22 9 1 20 4 56 
 Restructuring, related and       
 implementation costs(1) 50 41 (4) 6 34 127 
 Changes in obligations related to       
 divested businesses – – – – 2 2 
 Gains and losses from sale of businesses  (4) – – – – (4) 
 Acquisition- and divestment-related expenses       
 and integration costs 7 2 (4) 7 7 19 
 Certain other non-operational items 5 2 – (14) 83 76 
 Foreign exchange/commodity timing        
 differences in income from operations:       
 Unrealized gains and losses on derivatives       
 (foreign exchange, commodities,        
 embedded derivatives) (31) (36) (12) (2) 4 (77) 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized (4) 1 (11) (2) (4) (20) 
 Unrealized foreign exchange movements        
 on receivables/payables       
 (and related assets/liabilities) 10 7 10 4 7 38 
 Operational EBITA 725 318 239 118 (67) 1,333 
        
 Operational EBITA margin (%) 19.7% 16.6% 14.0% 13.8% n.a. 16.3% 
(1) Includes impairment of certain assets.  
 
In the three months ended December 31, 2023, Certain other non-operational items in the table above includes the following:  
  Three months ended December 31, 2023 
     Robotics &   
    Process Discrete Corporate  
 ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated 
 Certain other non-operational items:       
 Other income/expense relating to the        
 Power Grids joint venture – – – – (9) (9) 
 Business transformation costs(1) 3 – – (2) 65 66 
 Certain other fair values changes,       
 including asset impairments 1 1 – (11) 22 13 
 Other non-operational items 1 1 – (1) 5 6 
 Total 5 2 – (14) 83 76 
(1) Amounts include ABB Way process transformation costs of $66  million for the three months ended December  31, 2023.

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

40 Q4 2023 FINANCIAL INFORMATION  
  Three months ended December 31, 2022 
      Corporate and  
     Robotics & Other and  
    Process Discrete Intersegment  
 ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated 
 Total revenues 3,498 1,845 1,551 891 39 7,824 
 Foreign exchange/commodity timing        
 differences in total revenues:       
 Unrealized gains and losses       
 on derivatives (64) (35) (25) (10) (15) (149) 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized – (2) (1) 1 4 2 
 Unrealized foreign exchange movements        
 on receivables (and related assets) 33 15 14 10 13 85 
 Operational revenues 3,467 1,823 1,539 892 41 7,762 
        
 Income (loss) from operations 569 316 183 101 16 1,185 
 Acquisition-related amortization 24 8 1 19 3 55 
 Restructuring, related and       
 implementation costs(1) 10 5 23 2 7 47 
 Changes in obligations related to       
 divested businesses 1 – – – (72) (71) 
 Gains and losses from sale of businesses  – 3 – – – 3 
 Acquisition- and divestment-related expenses       
 and integration costs 5 3 12 2 2 24 
 Certain other non-operational items 11 – – (8) (31) (28) 
 Foreign exchange/commodity timing        
 differences in income from operations:       
 Unrealized gains and losses on derivatives       
 (foreign exchange, commodities,        
 embedded derivatives) (80) (27) (21) 1 (12) (139) 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized 1 (1) (2) 1 1 – 
 Unrealized foreign exchange movements        
 on receivables/payables       
 (and related assets/liabilities) 34 11 7 7 11 70 
 Operational EBITA 575 318 203 125 (75) 1,146 
        
 Operational EBITA margin (%) 16.6% 17.4% 13.2% 14.0% n.a. 14.8% 
(1) Includes impairment of certain assets.  
 
In the three months ended December 31, 2022, Certain other non-operational items in the table above includes the following:  
  Three months ended December 31, 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 – – – – (10) (10) 
 Regulatory, compliance and legal costs – – – – (16) (16) 
 Business transformation costs(1) 5 – – – 33 38 
 Changes in pre-acquisition estimates 9 – – 1 – 10 
 Gains and losses from sale of investments       
 in equity-accounted companies – – – – (43) (43) 
 Certain other fair values changes,       
 including asset impairments – – – 8 5 13 
 Other non-operational items (2) – – (17) (1) (20) 
 Total 12 – – (8) (32) (28) 
(1) Amounts include ABB Way process transformation costs of $33  million for the three months ended December  31, 2022.

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

41 Q4 2023 FINANCIAL INFORMATION  
  Year ended December 31, 2023 
      Corporate and  
     Robotics & Other and  
    Process Discrete Intersegment  
 ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated 
 Total revenues 14,584 7,814 6,270 3,640 (73) 32,235 
 Foreign exchange/commodity timing       
 differences in total revenues:       
 Unrealized gains and losses       
 on derivatives 4 (33) (20) (1) 2 (48) 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized (8) – (2) – (1) (11) 
 Unrealized foreign exchange movements        
 on receivables (and related assets) 1 10 4 5 (2) 18 
 Operational revenues 14,581 7,791 6,252 3,644 (74) 32,194 
        
 Income (loss) from operations 2,800 1,390 947 446 (712) 4,871 
 Acquisition-related amortization 88 35 5 79 13 220 
 Restructuring, related and       
 implementation costs(1) 76 46 3 6 88 219 
 Changes in obligations related to       
 divested businesses 1 – – – (4) (3) 
 Gains and losses from sale of businesses  (75) – (26) – – (101) 
 Acquisition- and divestment-related expenses        
 and integration costs 30 17 (7) 14 20 74 
 Certain other non-operational items 16 6 – (10) 153 165 
 Foreign exchange/commodity timing        
 differences in income from operations:       
 Unrealized gains and losses on derivatives       
 (foreign exchange, commodities,        
 embedded derivatives) 11 (21) (13) (1) 5 (19) 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized (5) – (4) – (3) (12) 
 Unrealized foreign exchange movements        
 on receivables/payables       
 (and related assets/liabilities) (5) 2 4 2 10 13 
 Operational EBITA 2,937 1,475 909 536 (430) 5,427 
        
 Operational EBITA margin (%) 20.1% 18.9% 14.5% 14.7% n.a. 16.9% 
(1) Includes impairment of certain assets.  
 
In the year ended December 31, 2023, Certain other non-operational items in the table above includes the following:  
  Year ended December 31, 2023 
     Robotics &   
    Process Discrete Corporate  
 ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated 
 Certain other non-operational items:       
 Other income/expense relating to the       
 Power Grids joint venture – – – – (36) (36) 
 Business transformation costs(1) 15 1 – 1 188 205 
 Changes in pre-acquisition estimates 1 – – – 3 4 
 Certain other fair values changes,       
 including asset impairments 2 3 – (10) 15 10 
 Other non-operational items (2) 2 – (1) (17) (18) 
 Total 16 6 – (10) 153 165 
(1) Amounts include ABB Way  process transformation costs of $188  million for the year ended December  31, 2023.

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

42 Q4 2023 FINANCIAL INFORMATION  
  Year ended December 31, 2022 
      Corporate and  
     Robotics & Other and  
    Process Discrete Intersegment  
 ($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated 
 Total revenues 13,619 6,745 6,044 3,181 (143) 29,446 
 Foreign exchange/commodity timing        
 differences in total revenues:       
 Unrealized gains and losses       
 on derivatives (37) (18) 25 4 (1) (27) 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized 11 – 10 1 33 55 
 Unrealized foreign exchange movements        
 on receivables (and related assets) 6 4 (2) 1 (9) – 
 Operational revenues 13,599 6,731 6,077 3,187 (120) 29,474 
        
 Income (loss) from operations 2,140 1,092 663 247 (805) 3,337 
 Acquisition-related amortization 104 31 4 78 12 229 
 Restructuring, related and       
 implementation costs(1) 28 16 29 11 263 347 
 Changes in obligations related to       
 divested businesses 1 – – – (89) (88) 
 Gains and losses from sale of businesses  (1) 8 – – – 7 
 Acquisition- and divestment-related expenses       
 and integration costs 36 15 134 6 4 195 
 Certain other non-operational items 41 – – (8) 419 452 
 Foreign exchange/commodity timing        
 differences in income from operations:       
 Unrealized gains and losses on derivatives       
 (foreign exchange, commodities,        
 embedded derivatives) (30) (5) 6 4 (7) (32) 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized 10 – 9 1 28 48 
 Unrealized foreign exchange movements        
 on receivables/payables       
 (and related assets/liabilities) 14 6 3 1 (9) 15 
 Operational EBITA 2,343 1,163 848 340 (184) 4,510 
        
 Operational EBITA margin (%) 17.2% 17.3% 14.0% 10.7% n.a. 15.3% 
(1) Includes impairment of certain assets.  
 
In the year ended December 31, 2022, certain other non-operational items in the table above includes the following:  
  Year ended December 31, 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 – – – – 57 57 
 Regulatory, compliance and legal costs – – – – 317 317 
 Business transformation costs 20 – – – 132 152 
 Changes in pre-acquisition estimates 11 – – (1) – 10 
 Gains and losses from sale of investments       
 in equity-accounted companies – – – – (43) (43) 
 Certain other fair values changes,       
 including asset impairments (3) – – 8 (50) (45) 
 Other non-operational items 14 – – (15) 5 4 
 Total 42 – – (8) 418 452 
(1) Amounts include ABB Way process transformation costs of $131  million for the year ended December  31, 2022.

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

43 Q4 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 
    December 31, 
 ($ in millions)   2023 2022 2021 
 Short-term debt and current maturities of long-term debt   2,607 2,535 1,384 
 Long-term debt   5,221 5,143 4,177 
 Total debt   7,828 7,678 5,561 
 Cash and equivalents   3,891 4,156 4,159 
 Restricted cash - current   18 18 30 
 Marketable securities and short-term investments   1,928 725 1170 
 Restricted cash - non-current   – – 300 
 Cash and marketable securities   5,837 4,899 5,659 
 Net debt (cash)   1,991 2,779 (98) 
 
 
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) December 31, 2023 December 31, 2022 
 Total stockholders' equity 14,057 13,187 
 Net debt (as defined above) 1,991 2,779 
 Net debt / Equity ratio 0.14 0.21 
 
 
Net debt/EBITDA Ratio 
Definition  
Net debt/EBITDA 
Net debt/EBITDA 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) December 31, 2023 December 31, 2022 
 Income from operations 4,871 3,337 
 Depreciation and Amortization 780 814 
 EBITDA  5,651 4,151 
 Net debt (as defined above) 1,991 2,779 
 Net debt / EBITDA 0.35 0.67

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