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Slide 2: Orders
Orders $inmillions 9,500 32% 8,500 - 24% 7,500 16% 6,500 / 8% 5,500 © 0% 2021 2022 2023 suum Orders: Comparable growth %
Slide 3: Group orders and revenues commentary
ABB INTERIM REPORT I Q4 2023 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 ,
Slide 4: Basic EPS
Basic EPS $ per share 1.50 1.40 1.30 0.70 0.60 0.50 0.40 0.30 0.20 0.10 es + 2021 2022 2023 0.00
Slide 5: Income from operations & Operational EBITA
Income from operations & Operational EBITA $inmillions 3,000 a 20% 1,500 ij r 15% 1,000 10% 500 | | 5% ° 0% 2021 2022 2023 summa Operational EBITA mmm Income from operations Operational EBITA margin %
Slide 6: Gross profit and income from operations
ABB INTERIM REPORT I Q4 2023 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 mi
Slide 7: Net Cash (Net Debt) position
Net Cash (Net Debt) position $inmillions 1,000 -2,000 | | -5,000 2021 2022 2023
Slide 8: Free cash flow conversion to net income, R12M
Free cash flow conversion to net income’, R12M 350% 300% 250% 200% 150% 100% oe iui ooal 0% a 2021
Slide 9: Net working capital, capex and net debt
ABB INTERIM REPORT I Q4 2023 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 capit
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Slide 11: Orders and Revenues
Orders and Revenues 12M $in $inmillions millions 4,500 16,000 4,000 | 14,000 3,500 | J 12,000 3,000 : 2,500 10,000 2021 2022 2023 sommes Orders mmm Revenues Orders 12M rolling
Slide 12: Orders and revenues
ABB INTERIM REPORT I Q4 2023 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 Powe
Slide 13: Orders and Revenues
Orders and Revenues 12M $in $ in millions millions 2,500 8,500 2,000 j — 8,000 on | : , 7,500 1,500 . 1h | 7,000 1,000 hit 18 WW 6,500 500 6,000 2021 2022 2023 mms Orders mmm Revenues Orders 12M rolling
Slide 14: Income from operations & Operational EBITA
Income from operations & Operational EBITA $inmillions 2,500 25% 2,400 i 20% 400 15% 300 | | 10% 200 | 100 ' 5% ° : 0% 2021 2022 2023 lummmas Operational EBITA mmm Income from operations Operational EBITA margin %
Slide 15: Orders and revenues
ABB INTERIM REPORT I Q4 2023 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-bi
Slide 16: Orders and Revenues
Orders and Revenues 12M $in $inmillions millions 2,500 8,000 7,500 2,000 7,000 1,500 6,500 1,000 6,000 500 5,500 2021 2022 2023 mame Orders mms Revenues Orders 12M rolling
Slide 17: Income from operations & Operational EBITA
Income from operations & Operational EBITA $inmillions 300 20% 225 15% 150 10% 75 5% co) 0% 2021 2022 2023 sums Operational EBITA en Income from operations Operational EBITA margin %
Slide 18: Orders and revenues
ABB INTERIM REPORT I Q4 2023 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 i
Slide 19: Orders and Revenues
Orders and Revenues 12M $in $inmillions millions 1,350 4,500 1,100 4,000 850 | 3,500 600 ' | | | | ] 3,000 350 2,500 2021 2022 2023 mmm Orders mmm Revenues Orders 12M rolling
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Slide 21: Orders and revenues
ABB INTERIM REPORT I Q4 2023 9 Orders and revenues Markets are still adjusting to shorter delivery lead times, putting pressure on order intake which amounted to $550 million, representing a sharp drop of 31% (comparable 33%) year-on-year. Although the challenging market situation is expected to per
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Slide 23: CO2e Scope 1&2
COze Scope 1&2 Ktons Ktons, R12M 200 600 150 450 100 300 7 : ! ; Dietten” ° a a ° 2021 2022 2023 tums Ktons of CO2 equivalent emissions (Scope 1&2) Ktons of COz equivalent emissions (Scope 1&2), R12M
Slide 24: Events from the Quarter
ABB INTERIM REPORT I Q4 2023 10 Events from the Quarter ● Despite ABB’s concerted efforts, there was one fatal incident in the quarter involving one contractor, working on a project in Algeria. A root cause investigation and remediation plan are underway. The thoughts of the senior management and ev
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Slide 26: Financial Information Contents
2 Q4 2023 FINANCIAL INFORMATION — Financial Information Contents 03 ─ 07 Key Figures 08 ─ 33 Consolidated Financial Information (unaudited) 34 ─ 47 Supplemental Reconciliations and Definitions
Slide 27: Key Figures
3 Q4 2023 FINANCIAL INFORMATION — Key Figures CHANGE ($ 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 I
Slide 28: Q4 2023 Financial Information
33 Q4 2023 FINANCIAL INFORMATION