UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of July 2022

Commission File Number 001-16429

ABB Ltd

(Translation of registrant’s name into English)

Affolternstrasse 44, CH-8050, Zurich, Switzerland

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 Form 20-F

☒

 Form 40-F

⬜

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

⬜

Note:

 Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an

attached annual report to security holders.

Indication by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

⬜

Note:

 Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or

other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in

which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the

home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press

release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event,

has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing

the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 Yes

⬜

 No

☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-

This Form 6-K consists of the following:

1.

Press release issued by ABB Ltd dated July 21, 2022 titled “Q2 2022 results”.

2.

Q2 2022 Financial Information.

3.

Announcements regarding transactions in ABB Ltd’s Securities made by the directors or the members of the

Executive Committee.

The information provided by Item 2 above is hereby incorporated by reference into the Registration Statements on Form F-3 of

ABB Ltd and ABB Finance (USA) Inc. (File Nos. 333-223907 and 333-223907-01) and registration statements on Form S-8

(File Nos. 333-190180, 333-181583, 333-179472, 333-171971 and 333-129271) each of which was previously filed with the

Securities and Exchange Commission.

2

—

“I am pleased with our performance and thatwe have taken yet another step toward our

long-term margin target. I am also delighted that we are moving ahead with the spin-off of

Accelleron and its planned listing in Switzerland.”

Björn Rosengren

, CEO

—

ZURICH, SWITZERLAND, JULY 21, 2022

Q2 2022 results

Strong demand and good operational performance 

●

 Orders $8.8 billion, +10%; comparable

1

 +20% 

●

 Revenues $7.3 billion, -3%; comparable +6% 

●

 Income from operations $587 million; margin 8.1% 

●

 Operational EBITA

1

 $1,136 million; margin

1

 15.5%

●

 Basic EPS $0.20; -47%

2

●

 Cash flow from operating activities $382 million

Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange

—

Q2 2022

First six months

Press Release

KEY FIGURES

CHANGE

CHANGE

($ millions, unless otherwise indicated)

Q2 2022

Q2 2021

US$

Comparable

1

H1 2022

H1 2021

US$

Comparable

1

Orders

8,807

7,989

10%

20%

18,180

15,745

15%

24%

Revenues

7,251

7,449

-3%

6%

14,216

14,350

-1%

7%

Gross Profit

2,290

2,508

-9%

4,571

4,776

-4%

as % of revenues

31.6%

33.7%

-2.1 pts

32.2%

33.3%

-1.1 pts

Income from operations

587

1,094

-46%

1,444

1,891

-24%

Operational EBITA

1

1,136

1,113

2%

9%

 3

2,133

2,072

3%

9%

 3

as % of operational revenues

1

15.5%

15.0%

+0.5 pts

14.9%

14.4%

+0.5 pts

Income from continuing operations, net of tax

406

789

-49%

1,049

1,340

-22%

Net income attributable to ABB

379

752

-50%

983

1,254

-22%

Basic earnings per share ($) 

0.20

0.37

-47%

2

0.51

0.62

-18%

2

Cash flow from operating activities

4

382

663

-42%

(191)

1,206

n.a.

Cash flow from operating activities in continuing

operations

385

663

-42%

(179)

1,186

-115%

1

For a reconciliation of non-GAAP measures, see “supplemental reconciliations and definitions” in the attached Q2 2022 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.

ABB INTERIM REPORT

I

Q2 2022

 2

Overall, I am pleased with how the teams delivered strong order

growth as well as a margin in line with our long-term target. This

was achieved despite the pressure from a tight supply chain,

Covid-enforced lockdowns in China and the inflationary

environment. Cash flow came in higher than in the first quarter,

and I expect a good momentum in the second half of the year. 

We achieved a strong order growth of 10 % (20% comparable)

and we saw a positive development in all major customer

segments. While changes in exchange rates weighed on the total,

comparable orders increased at a double-digit rate in all regions.

With all business areas in double-digit growth, order intake

amounted to $8,807 million and a record-high order backlog of

$19.5 billion.

In total, revenues declined by 3% (up 6% comparable) , year-on-

year. Negative impact from change s in exchange rates and

portfolio changes outweighed the positives of strong price

execution and increased volumes, with the latter somewhat held

back by the strained supply chain. Comparable revenues

increased in all business areas except for Robotics & Discrete

Automation which together with the Distribution Solutions division

in Electrification, are where customer deliveries were materially

slowed by component shortages. Overall, the supply chain

constraints slightly eased compared with the previous quarter,

however we saw temporary pressure on customer deliveries in

China where lockdowns slowed down logistics somewhat more

than expected. We anticipate further easing of component supply

in the coming quarters.

I am pleased that we managed to improve the Operational

EBITA margin to 15.5%. Notably, our teams successfully offset

inflationary effects such as input costs and freight through

strong pricing execution and higher volumes. Process

Automation noted a sharp 180 basis point improvement to its

margin, year-on-year . I am also pleased with the performance

levels in Electrification and Motion, although margins declined

from last year’s high levels . Robotics & Discrete Automation is

the area with operational underperformance, triggered by

customer deliveries materially hampered by lockdowns in China

and semiconductor shortages. Additionally, results were

supported by lower than anticipated costs in Corporate and

Other including a positive margin impact of approximately 60

basis points related to the exit of a legacy project and a real

estate sale which came through sooner than expected.

Looking at Income from operations, it included items impacting

comparability of approximately $250 million.

These include the earlier mentioned charge of $195 million

triggered by us exiting the largest legacy project exposure in non-

core operations, namely the full-train retrofit business. It also

includes the financial impact of our decision to exit the Russian

market, triggered by the ongoing war in Ukraine and impact of

related international sanctions. We have started the process of

winding down the remaining activities in Russia. This triggered a

charge of $57 million , of which $23 million will impact cash flow in

the third quarter. 

The balance sheet is robust, although year-on-year the cash flow

from operating activities in continuing operations declined to $385

million, mainly on a higher build-up of net working capital. That

said, we have continued to execute on our share buyback

program, and just after the close of the second quarter we

successfully delivered on our promise to return to shareholders

the remaining $1.2 billion - out of the total of $7.8 billion - from the

Power Grids proceeds. We will now continue with the execution of

our ongoing buyback program of up to $3 billion.

On the back of the volatile financial markets, we decided to 

postpone the planned IPO of our E-mobility business. We will

monitor the market conditions and are fully committed to proceed

with a listing on the SIX Swiss Exchange as and when market

conditions are constructive. Meanwhile, building on the earlier

seed stage investment three years ago, the E-mobility team has

agreed to acquire a controlling interest in Numocity, a leading

digital platform for EV charging in India. This deal allows E-

mobility to leverage on the regional opportunity from increasing

demand for charging solutions for two and three-wheelers, cars

and light commercial vehicles. After the close of the second

quarter, we decided to spin off the Accelleron business

(Turbocharging) with a planned listing on SIX Swiss Exchange on

October 3, subject to approval by the Extraordinary General

Meeting. I am pleased about this as it allows for shareholders to

realize the full value of Accelleron while allowing ABB to focus on

its core areas of electrification and automation. 

Björn Rosengren

CEO

In the

third quarter of 2022

, we anticipate double-digit

comparable revenue growth and the Operational EBITA margin

to sequentially improve, excluding the 60 basis points positive

impact from special items in the second quarter. 

In full-year 2022

, we expect a steady margin improvement

towards the 2023 target of at least 15%, supported by

increased efficiency as we fully incorporate the decentralized

operating model and performance culture in all our divisions.

Furthermore, we expect support from a positive market

momentum and our strong order backlog. 

CEO summary

Outlook

ABB INTERIM REPORT

I

Q2 2022

 3

Demand was strong across all customer segments and all

business areas reported double-digit order growth in the second

quarter, supported by virtually all divisions. Demand remained

strong throughout the period. Service-related orders increased

by 4% (12% comparable). In total, high demand more than

offset the adverse impact from changes in exchange rates and

order intake improved by 10% (20% comparable) to $8,807

million.

The positive development was very strong in the segments of

machine building, food & beverage and in general industries as

well as in the automotive segment due to accelerating

investments in the EV segment.

In transport and infrastructure, the order development was

strong in the renewables and e-mobility business es. In the

buildings segment there was a positive development in both the

non-residential and residential areas, although some softness in

residential building in China was noted. In the marine segment

a positive development was noted for cruising as well as

general marine & port demand. 

The process-related business improved across the customer

segments.

Customer activity was strong across the regions but changes in

exchange rates weighed on reported order intake. Europe was

stable at 0% (15% comparable). The Americas improved by

23% (33% comparable), supported by a stellar 21% (32%

comparable) in the United States. In Asia, Middle East and

Africa orders increased by 9% (15% comparable), including an

increase in China of 7% (10% comparable).

Revenues were adversely impacted by changes in exchange

rates which more than offset benefits from a strong price

development and slightly higher volumes. While component

constraints eased somewhat , mainly semiconductors, they still

impacted customer deliveries, above all noticeable in Robotics

& Discrete Automation and in the Distribution Solutions division

in Electrification. An added challenge to customer deliveries

stemmed from the Covid-related lockdowns in China which in

addition to forcing Robotics to close its Shanghai production for

five weeks followed by a gradual re-opening, also triggered a

general slow-down of local logistics for part of the quarter. In

total, the revenue decline in Robotics & Discrete Automation

was however more than offset by strong comparable

improvements in the other business areas. In total, ABB Group

revenues declined by -3% (up 6% comparable) and amounted

to $7,251 million.

Orders and revenues 

Orders by region

($ in millions,

unless otherwise

indicated)

CHANGE

Q2 2022

Q2 2021

US$

Comparable

Europe

2,958

2,954

0%

15%

The Americas

3,050

2,473

23%

33%

Asia, Middle East

and Africa

2,799

2,562

9%

15%

ABB Group

8,807

7,989

10%

20%

Growth

Q2

Q2

Change year-on-year

Orders

Revenues

Comparable

20%

6%

FX

-7%

-7%

Portfolio changes

-3%

-2%

Total

10%

-3%

Revenues by region

($ in millions,

unless otherwise

indicated)

CHANGE

Q2 2022

Q2 2021

US$

Comparable

Europe

2,508

2,697

-7%

7%

The Americas

2,397

2,284

5%

14%

Asia, Middle East

and Africa

2,346

2,468

-5%

0%

ABB Group

7,251

7,449

-3%

6%

ABB INTERIM REPORT

I

Q2 2022

 4

Gross profit

Gross profit decreased by 9% to $2,290 million, primarily due to

changes in exchange rates. Gross margin was 31.6%, a decline of

210 basis points from last year’s very high level driven primarily by

mark to market losses on commodity derivatives as well as under-

absorption of fixed costs in Robotics & Discrete Automation. 

Income from operations

Income from operations amounted to $587 million, declining by

$507 million, or 46%. The decline was primarily related to charges

totaling approximately $250 million triggered by the exit of a legacy

project in non-core operations and the decision to exit Russian

operations. Additional adverse impact related to changes in

exchange rates, commodity timing differences and significantly less

support from fair value adjustments of equity investments . 

Operational EBITA

Operational EBITA of $1,136 million was 2% higher (9% constant

currency) year-on-year, as contribution from operational

performance offset the adverse impact from mainly changes in

exchange rates and portfolio changes. 

The Operational EBITA margin increased by 50 basis points to

15.5% despite year-on-year headwind from less support from raw

material hedges, mainly in Electrification. A positive contribution

stemmed from operations successfully offsetting inflationary effects

such as input costs and freight with impacts from strong pricing

execution and slightly higher volumes. Additional support was due

to the lower than anticipated costs in Corporate and Other which

was up by $79 million to -$13 million including a positive margin

impact of approximately 60 basis points related to the exit of a

legacy project and a real estate sale. Operational EBITA margin for

the second quarter last year was 15.0%, including 20 basis points

from the now divested Mechanical Power Transmission business.

Net finance expenses

Net finance expenses remained stable at $20 million compared with

$21 million a year ago, primarily reflecting lower interest charges on

borrowings and lower interest on tax risks offset by certain fair

value adjustments on investments. 

Income tax

Income tax expense was $193 million with an effective tax rate of

32.2%, including a 7. 2% adverse tax impact from the non-

deductibility of certain non-operational charges. 

Net income and earnings per share

Net income attributable to ABB was $379 million and decreased by

50% from last year, with the decline primarily related to the lower

Income from operations . 

Basic earnings per share was $0.20, and declined from $0.37, year-

on-year, adversely impacted by charges mainly related to the exit of

the legacy full-train retrofit project and the decision to wind-down

operations in Russia, but also by commodity timing differences.

Earnings

ABB INTERIM REPORT

I

Q2 2022

 5

Net working capital

Net working capital amounted to $3,663 million, increasing

both year-on-year from $3,251 million and sequentially from

$3,461 million. The sequential increase was driven primarily

by inventories to support future deliveries to help meet the

strong market dem and, as well as receivables . Net working

capital as a percentage of revenues

1

 was 12.8%.

Capital expenditures

Purchases of property, plant and equipment and intangible

assets amounted to $151 million. 

Net debt

Net debt

1

 amounted to $4,235 million at the end of the

quarter, and increased from $2,259 million, year-on-year.

Sequentially, it increased from $2,772 million, mainly due to

paid dividend and share buybacks.

Cash flows

Cash flow from operating activities in continuing operations

was $385 million and declined year -on-year from

$663 million. The year -on-year decline was driven by a

higher build-up of trade net working capital, mainly related

to inventories to support future deliveries and payables.

ABB expects a solid cash flow delivery in 2022. 

Share buyback program

ABB launched a new share buyback program of up to $3 billion

on April 1. As part of this program, ABB completed just after the

close of the second quarter, the return to its shareholders of the

remaining $1.2 billion out of the $7.8 billion of cash proceeds

from the Power Grids divestment. During the second quarter,

33,852,000 shares were repurchased on the second trading line

for the amount of approximately $1,016 million. The total

number of ABB Ltd’s issued shares is 1,964,745,075 , after the

cancellation of 88,403,189 shares in June, as approved at

ABB's 2022 AGM.

($ millions, 

unless otherwise indicated)

Jun. 30

2022

Jun. 30

2021

Dec. 31

2021

Short term debt and current

maturities of long-term debt

2,830 

2,117

1,384 

Long-term debt

5,086 

4,375

4,177 

Total debt

7,916 

6,492

5,561 

Cash & equivalents

2,412 

2,860

4,159 

Restricted cash - current

23 

71

30 

Marketable securities and 

short-term investments

945 

1,002

1,170 

Restricted cash - non-current

301 

300

300 

Cash and marketable securities

3,681 

4,233

5,659 

Net debt (cash)*

4,235 

2,259

(98)

Net debt (cash)* to EBITDA ratio

0.7 

0.7

(0.01)

Net debt (cash)* to Equity ratio

0.34 

0.16

(0.01)

*

At Jun. 30, 2022, Jun. 30, 2021 and Dec. 31, 2021, net debt(cash) excludes net pension

(assets)/liabilities of $(72) million, $633 million and $45 million, respectively.

Balance sheet & Cash flow

ABB INTERIM REPORT

I

Q2 2022

 6

Orders and revenues

Order intake was strong with a stable trend throughout the

quarter except for some temporary weakness in China which

recovered towards the end of the second quarter. Order

intake amounted to $4,037 million, improving by 9% (16%

comparable), year-on-year. The order backlog extended to a

record level of $6.7 billion.

●

Customer activity was strong in most segments with

softness noted only in the residential construction -related

segment in China.

●

Orders in the Asia, Middle East and Africa region improved

by 1% (7% comparable), weighed down by China which

declined by 7% (5% comparable). China came off from the

high comparable last year on lower demand in the

residential construction segment, but also by a temporary

general dampening of customer activity during the Covid-

related lockdowns that started in April. A recovery was

noted during the quarter as restrictions progressively

eased. In Europe customer activity was strong across the

major countries, however changes in exchange rates

weighed on the total which was down by 4% (up 10%

comparable). The Americas improved sharply by 29% (30%

comparable).

●

Revenues improved by 4% (10% comparable) to

$3,531 million with strong pricing execution as the main

driver of comparable revenue growth. Double -digit growth

in comparable revenues was reported in the Americas and

Europe, while Asia, Middle East and Africa increased at a

mid-single digit rate. In contrast to the other divisions,

volume growth was negative in Distribution Solutions which

was held back by supply constraints mainly related to

semiconductors. Additional challenges stemmed from the

lockdowns in China which slowed down local logistics,

although it gradually improved as the quarter progressed. 

Profit

Operational EBITA was $599 million, remaining stable as a

reported headline number but improving by 9% in constant

currency. Operational EBITA margin declined by 50 basis

points to 16.9%.

●

Under-absorption of fixed costs in the large Distribution

Solutions division triggered by component shortages that

hampered customer deliveries was the primary driver for

the business area’s margin decline. 

—

Electrification

Growth

Q2

Q2

Change year-on-year

Orders

Revenues

Comparable

16%

10%

FX

-7%

-6%

Portfolio changes

0%

0%

Total

9%

4%

CHANGE

CHANGE

($ millions, unless otherwise indicated)

Q2 2022

Q2 2021

US$

Comparable

H1 2022

H1 2021

US$

Comparable

Orders

4,037

3,693

9%

16%

8,434

7,224

17%

22%

Order backlog

6,706

5,029

33%

42%

6,706

5,029

33%

42%

Revenues

3,531

3,406

4%

10%

6,858

6,546

5%

10%

Operational EBITA

599

592

1%

1,109

1,103

1%

as % of operational revenues

16.9%

17.4%

-0.5 pts

16.1%

16.8%

-0.7 pts

Cash flow from operating activities

393

511

-23%

432

830

-48%

No. of employees (FTE equiv.)

51,600

51,700

0%

ABB INTERIM REPORT

I

Q2 2022

 7

Orders and revenues

The second quarter was another +$2 billion quarter with

orders up by 7% (26% comparable) to $2,079 million,

despite the adverse impacts from portfolio changes and

changes in exchange rates. Both base orders and large

orders increased year-on -year.

●

Strong demand was seen in all the customer segments

for the electrical motors, drives and service offerings and

all divisions reported double-digit order growth.

●

Demand was strong in all major regions, although

reported order growth was hampered by changes in

exchange rates and portfolio changes. Orders increased

in Europe by 1% (17% comparable) and by 17% (24%

comparable) in Asia, Middle East and Africa with no

material impact on customer order patterns from the

Covid-related lockdowns. The Americas reported orders

up by 3% (38% comparable) reflecting the divestment of

Mechanical Power Transmission (Dodge).

●

The divestment of Dodge and changes in exchange rates

weighed on reported revenue growth which decreased

by 12% (up 3% comparable). Strong price execution

drove comparable growth, but volumes were hampered

by the lockdowns in China which slowed down local

logistics. That said, a gradual easing was noted as the

quarter progressed. The order backlog expanded to

record-high $4.6 billion.

Profit

Operational EBITA amounted to $266 million and declined

from last year due to adverse impacts from low volumes,

portfolio changes and changes in exchange rates.

Operational EBITA margin was 16.4%, with about half of the

130 basis points year -on-year decline relating to the

divestment of the Dodge business.

●

Strong pricing execution offset the increased costs

related to such as commodities and freight. 

●

The Covid-related lockdowns in China hampered

customer and supplier deliveries and triggered under-

absorption of fixed costs. 

●

In addition, there was an adverse divisional mix in

revenues.

—

Motion

CHANGE

CHANGE

($ millions, unless otherwise indicated)

Q2 2022

Q2 2021

US$

Comparable

H1 2022

H1 2021

US$

Comparable

Orders

2,079

1,947

7%

26%

4,281

3,864

11%

29%

Order backlog

4,568

3,558

28%

43%

4,568

3,558

28%

43%

Revenues

1,626

1,850

-12%

3%

3,198

3,517

-9%

6%

Operational EBITA

266

325

-18%

540

614

-12%

as % of operational revenues

16.4%

17.7%

-1.3 pts

16.9%

17.4%

-0.5 pts

Cash flow from operating activities

241

223

8%

239

547

-56%

No. of employees (FTE equiv.)

20,800

21,500

-3%

Growth

Q2

Q2

Change year-on-year

Orders

Revenues

Comparable

26%

3%

FX

-7%

-6%

Portfolio changes

-12%

-9%

Total

7%

-12%

ABB INTERIM REPORT

I

Q2 2022

 8

Orders and revenues

Customer demand was strong across the segments which

resulted in an order growth of 17% (25% comparable),

although the headline number was weighed down by

changes in exchange rates. Strong demand was noted for

the product, system s and service businesses.

●

Double-digit order increases were reported for all of the

divisions, supported by base orders but also by a higher

contribution from large orders, year-on-year.

●

Demand was strong across all customer segments, with a

particularly strong development in the metals & mining

and marine segment. High customer activity in the oil &

gas segment included also the LNG business. While

hydrogen is still a small part of the business, customer

interest was high. Service orders increased by 4% (12%

comparable).

●

All regions improved, and comparable order intake

increased at a double -digit rate. Europe was up by 8%

(22% comparable) and the Americas by 53% 

(55% comparable). Asia, Middle East and Africa was up

by 4% (11% comparable).

●

Revenues declined by 1% (up 7% comparable) adversely

impacted by change s in exchange rates which more than

offset the positive impact of increased volumes and

positive pricing. All divisions contributed to comparable

revenue growth.

Profit

Most divisions reported double-digit Operational EBITA

margin with both profit and profitability improvements , year-

on-year. Operational EBITA increased by 17%

(28% constant currency) , to $224 million, and the

Operational EBITA margin improved by 180 basis points to

14.3%.

●

Performance improvements were driven by higher

volumes and efficiency measures, which more than offset

cost inflation mainly in electrical components, and freight

as well as a slight negative divisional mix.

—

Process Automation

Growth

Q2

Q2

Change year-on-year

Orders

Revenues

Comparable

25%

7%

FX

-8%

-8%

Portfolio changes

0%

0%

Total

17%

-1%

CHANGE

CHANGE

($ millions, unless otherwise indicated)

Q2 2022

Q2 2021

US$

Comparable

H1 2022

H1 2021

US$

Comparable

Orders

1,819

1,555

17%

25%

3,511

3,211

9%

15%

Order backlog

6,170

5,980

3%

12%

6,170

5,980

3%

12%

Revenues

1,529

1,540

-1%

7%

3,035

2,947

3%

9%

Operational EBITA

224

192

17%

420

347

21%

as % of operational revenues

14.3%

12.5%

+1.8 pts

13.7%

11.8%

+1.9 pts

Cash flow from operating activities

193

228

-15%

253

461

-45%

No. of employees (FTE equiv.)

22,200

21,900

2%

ABB INTERIM REPORT

I

Q2 2022

 9

Orders and revenues

On high customer demand , order intake improved by 15% (23%

comparable) to $1,109 million. However, revenues were

significantly hampered by both general supply chain constraints

as well as Covid-related lockdowns in China. Consequently, the

order backlog reached a record-high level of $2.7 billion.

Semiconductor constraints are expected to ease in the third

quarter.

●

Both divisions noted strong momentum and reported double-

digit rates in order growth. Demand was stable throughout

the quarter.

●

Customer activity increased in all segments with particularly

strong momentum in general industry as well as automotive

which was supported by a strong development in EV

investments in China.

●

Order momentum was very strong in Europe at 9%

(22% comparable) and Asia, Middle East and Africa at 30%

(36% comparable), including orders in China which improved

by 40% (43% comparable). The Americas declined by 3%

(3% comparable) from a high comparable last year due to

large orders received.

●

Revenues declined by 12% (5% comparable) adversely

impacted by change s in exchange rates. While price

increases supported comparable growth, volumes declined in

both divisions. This was triggered by customer deliveries

being adversely impacted by the shortages in the supply of

semiconductors and the production halt in the Robotics

division’s Shanghai factory due to enforced Covid-related

lockdowns. As an additional challenge, the lockdowns

triggered a general slowdown in local logistics in the

beginning of the second quarter. After approximately five

week’s shutdown, production in the Shanghai plant gradually

increased and ran at close to full capacity at the end of the

quarter.

Profit

Both profit and profitability declined year-on-year due to low

volumes and cost inflation linked to the tight supply chain.

Operational EBITA declined by 38% with a margin

deterioration of 330 basis points.

●

In total, the decline in volumes triggered under-absorption

of fixed costs, which combined with cost inflation related

to freight and input costs more than offset the contribution

from cost measures and positive price execution, year-

on-year.

—

Robotics & Discrete Automation

CHANGE

CHANGE

($ millions, unless otherwise indicated)

Q2 2022

Q2 2021

US$

Comparable

H1 2022

H1 2021

US$

Comparable

Orders

1,109

968

15%

23%

2,417

1,809

34%

40%

Order backlog

2,728

1,501

82%

97%

2,728

1,501

82%

97%

Revenues

732

832

-12%

-5%

1,462

1,685

-13%

-9%

Operational EBITA

60

96

-38%

109

201

-46%

as % of operational revenues

8.2%

11.5%

-3.3 pts

7.4%

11.9%

-4.5 pts

Cash flow from operating activities

56

78

-28%

27

189

-86%

No. of employees (FTE equiv.)

10,800

10,300

5%

Growth

Q2

Q2

Change year-on-year

Orders

Revenues

Comparable

23%

-5%

FX

-9%

-7%

Portfolio changes

1%

0%

Total

15%

-12%

ABB INTERIM REPORT

I

Q2 2022

10

Quarterly highlights

●

Microsoft has joined ABB’s Energy Efficiency Movement.

Launched in March 2021 by ABB, the

#energyefficiencymovement is a multi-stakeholder

initiative to raise awareness and spur action to reduce

energy consumption and carbon emissions to combat

climate change. Other members include Deutsche Post

DHL Group and Alfa Laval. 

●

ABB has been assigned by EPC contractor Aker Solutions,

a leader in sustainable energy solutions, to deliver the main

electrical, automation and safety systems for Norway’s

Northern Lights project. A joint venture between Equinor,

Shell and TotalEnergies, Northern Lights is the first

industrial carbon capture and storage project to develop an

open and flexible infrastructure to safely store CO2 from

industries across Europe.

●

ABB E-mobility has signed a new global framework

agreement with Shell to supply ABB’s end-to-end portfolio

of AC and DC charging stations. The portfolio ranges

from the AC wallbox for home, work or retail installations

to the Terra 360 which is ideal for refueling stations,

urban charging stations, retail parking and fleet

applications.

●

ABB celebrated this year’s Pride Month in June with a

clear focus on what can be done on an individual level to

support the LGBTQ+ community and make the workplace

more inclusive. Since last year, the number of “Allies” in

LGBTQ+ Employee Resource Groups across ABB more

than doubled, now having about 900 members.

●

From June 19-24, the Special Olympics National Summer

Games took place in Berlin. Around 4,000 athletes

competed in 20 sport disciplines, including basketball,

beach volleyball, handball, table tennis and triathlon, at

the National Games – and were supported and cheered

on by about 100 volunteers from ABB. They submitted

time-off or vacation to actively participate in the largest

inclusive sports event in Germany this year.

Story of the quarter

ABB has launched a product label called

EcoSolutions™ targeting its customers with full

transparency on the circularity value and environmental

impact of ABB products across all business areas. By

scanning the QR code on the EcoSolutions label or by

visiting the product page, customers can easily have this

information at hand. For customers, the ABB EcoSolutions

label is an assurance that, where relevant, the product they

are buying is designed to last and has been manufactured

with the maximum amount of sustainably sourced raw

materials; made with processes that are designed to avoid

waste and maximize the use of sustainable packaging

materials; designed to increase resource and process

efficiency while in use, be upgradable and optimize the

lifetime of equipment and facilities; supported by take-back

services leading to refurbishment, re-use or recycling of

products and components, and is accompanied by

instructions for responsible end-of-life treatment.

Q2 outcome

●

22% reduction of CO

₂

 emissions in own operations year -on-year

due to increased use of renewable energy and energy efficient

projects on sites.

●

21% year-on-year increase in LTIFR due to a slight increase in

absolute incidents as well as fewer hours booked during the

second quarter.

●

2.9%-points increase in number of women in senior

management versus the prior year continued to be supported by

targeted initiatives across all business areas.

—

Sustainability

Q2 2022

Q2 2021

CHANGE

12M ROLLING

CO2e own operations emissions, 

kt scope 1 and 2

1

89

114

-22%

376

Lost Time Injury Frequency Rate (LTIFR), 

frequency / 200,000 working hours

0.17

0.14

21%

0.16

Share of females in senior management

positions, %

16.8

13.9

+2.9 pts

16.3

1

CO

₂

 equivalent emissions from site, energy use and fleet, previous quarter

ABB INTERIM REPORT

I

Q2 2022

 11

During Q2 2022

●

On May 25, ABB announced that its E-mobility division

had agreed to acquire a controlling stake in Numocity, a

leading digital platform for electric vehicle charging in

India. ABB will increase its shareholding to a controlling

majority of 72 percent and has the right to become sole

owner by 2026. The transaction is part of ABB E-

mobility’s overall growth strategy and will significantly

improve its position across India, as well as South East

Asia and the Middle East – target regions for Numocity

given increasing demand for charging solutions for two

and three-wheelers, cars and light commercial vehicles.

●

On June 20, ABB announced that it had decided to

postpone its planned IPO of the E-mobility business. The

listing of the business remains an important part of ABB’s

strategy. However, recent market conditions made it

challenging to proceed with a planned share offering in

the second quarter of 2022. Consequently, ABB is

monitoring market conditions and is fully committed to

proceed with a listing of the business on the SIX Swiss

Exchange as and when market conditions are

constructive.

After the second quarter

On July 20, ABB announced that it will spin off Accelleron

and list the company on SIX Swiss Exchange, assuming

shareholders approval at the ABB Extraordinary General

Meeting planned for

September 7, 2022. ABB shareholders would receive 1

Accelleron share for every 20 ABB shares held. Planned

date for listing is October 3, 2022. Accelleron develops,

produces and services turbochargers and large

turbocharging components for engines, which enhance

propulsion and increase fuel efficiency while reducing

emissions. Its leading products support clients in sectors

such as marine, energy and rail, helping to provide

sustainable and reliable power and highest efficiencies.

Accelleron’s potential is driven by its position, built on its

very long track record, as a global market leader in

heavy-duty turbocharging for mission-critical applicati ons.

●

On July 21, ABB announced it has decided to exit the

Russian market and started the process to wind down its

remaining activities there. The financial impact of this

decision amounted to $57 million in the second quarter, of

which $23 million will impact cash flow in the third quarter.

After Q2 2022

In the first six months of 2022, demand for ABB’s

products increased strongly year-on-year, supported by

most customer segments. Orders amounted to

$18,180 million and improved by 15% (24% comparable)

and revenues amounted to $14,216 million down by -1%

(up 7% comparable), implying a book-to-bill of 1.28. In the

period demand increased in both the product and the

service business. Changes in exchange rates had a

negative impact on order intake and revenues . 

Income from operations amounted to $1,444 million down

from $1,891 million in the year-earlier period. Results

included restructuring activities progressing according to

plan with restructuring and restructuring-related expenses of

$280 million. This include d a project charge amounting to

$195 million triggered by the exit of the largest legacy

project exposure in non-core operations.

Operational EBITA improved by 3% year on year to

$2,133 million and the Operational EBITA margin increased

by 50 basis points to 14.9%. Performance was driven by the

impacts from strong pricing execution and higher volumes

offsetting inflationary impacts in for example input costs

and freight, but not offsetting the adverse year-on-year

impact related to the commodity hedges which supported

last year’s period.

Selling, general and administrative (SG&A) expenses

decreased -1% in line with revenues. The ratio in relation to

revenues therefore remained stable at 18.0%. Corporate

and Other Operational EBITA improved by $148 million

to -$45 million. The net finance expenses amounted to

$29 million.

Income tax expense was $434 million with a tax rate of

29.3%.

Net income attributable to ABB was $983 million and

decreased by -22%. Basic earnings per share was $0.51 and

decreased by -18%.

Significant events

First six months 2022

ABB INTERIM REPORT

I

Q2 2022

12

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

Includes restructuring-related expenses of $195 million from the exit of the full train retrofit business as well as $57 million respectively from the exit of the Russian market in Q2 2022.

3

Costs relating to the announced exits and the potential E-mobility listing.

4

Excluding share of net income from JV.

5

Excluding impact of acquisitions or divestments or any significant non-operational items.

($ in millions, unless otherwise stated)

FY 2022

Q3 2022

Net finance expenses

~(100)

~(30)

unchanged

Non-operational pension

(cost) / credit

~120

~30

from ~(140)

Effective tax rate

~25%

 5

~25%

 5

unchanged

Capital Expenditures

~(750)

~(200)

unchanged

($ in millions, unless otherwise stated)

FY 2022

1

Q3 2022

Corporate and Other Operational costs

~(200)

~(80)

from ~(300)

Non-operating items

Acquisition-related amortization

~(230)

~(55)

unchanged

Restructuring and restructuring related

~(100)+(252)

2

~(35)

2

from ~(130)

Separation costs

3

~(180)

~(50)

unchanged

ABB Way transformation

~(150)

~(40)

unchanged

Certain other income and expenses

related to PG divestment

4

~(25)

-

unchanged

Additional 2022 guidance

Note: comparable growth calculation includes acquisitions and divestments with revenues of greater than $50 million.

1

Represents the estimated annual revenues for the period prior to the announcement of the respective acquisition/divestment.

Divestments

Company/unit

Closing date

Revenues, $ million

1

No. of employees

2021

Motion

Mechanical Power Transmission

1-Nov

645

1,500

Acquisitions

Company/unit

Closing date

Revenues, $ million

1

No. of employees

2022

Electrification

InCharge Energy, Inc (majority stake)

26-Jan

16

40

2021

Electrification

Enervalis (majority stake)

26-Apr

1

22

Robotics & Discrete Automation

ASTI Mobile Robotics Group

2-Aug

36

300

Additional figures

ABB Group

Q1 2021

Q2 2021

Q3 2021

Q4 2021

FY 2021

Q1 2022

Q2 2022

EBITDA, $ in million

1,024

1,324

1,072

3,191

6,611

1,067

794

Return on Capital Employed, %

n.a.

n.a.

n.a.

n.a.

14.90

n.a.

n.a.

Net debt/Equity

0.09

0.16

0.13

(0.01)

(0.01)

0.20

0.34

Net debt/ EBITDA 12M rolling

0.4

0.7

0.5

(0.01)

(0.01)

0.4

0.7

Net working capital, % of 12M rolling revenues

10.8%

11.6%

10.2%

8.1%

8.1%

12.1%

12.8%

Earnings per share, basic, $

0.25

0.37

0.33

1.34

2.27

0.31

0.20

Earnings per share, diluted, $

0.25

0.37

0.32

1.33

2.25

0.31

0.20

Dividend per share, CHF

n.a.

n.a.

n.a.

n.a.

0.82

n.a.

n.a.

Share price at the end of period, CHF

28.56

31.39

31.39

34.90

34.90

30.17

25.46

Share price at the end of period, $

30.47

33.99

33.36

38.17

38.17

32.34

26.73

Number of employees (FTE equivalents)

105,330

106,370

106,080

104,420

104,420

104,720

106,380

No. of shares outstanding at end of period (in millions)

2,024

2,006

1,993

1,958

1,958

1,929

1,892

Acquisitions and divestments, last twelve months

ABB INTERIM REPORT

I

Q2 2022

13

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

Financial calendar

2022

August 31

Accelleron Cap

ital Markets Day

September 7

Planned ABB Extraordinary General Meeting

October 3 Planned listing of Accelleron on SIX Swiss Exchange

October 20

Q3 2022 results

2023

February

2

Q4

2022 results

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,” “Balance

sheet & cash flow”, and “Robotics and Discrete

Automation”. 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

“intends,” “anticipates,” “expects,” “estimates,” “plans,”

“targets” or similar expressions. However, there are many

risks and uncertainties, many of which are beyond our

control, that could cause our actual results to differ

materially from the forward-looking information and

statements made in this press release and which could

affect our ability to achieve any or all of our stated targets.

Some important factors that could cause such differences

include, among others, business risks associated with the

volatile global economic environment and political

conditions, costs associated with compliance activities,

market acceptance of new products and services, changes

in governmental regulations and currency exchange rates

and such other factors as may be discussed from time to

time in ABB Ltd’s filings with the U.S. Securities and

Exchange Commission, including its Annual Reports on

Form 20-F. Although ABB Ltd believes that its expectations

reflected in any such forward looking statement are based

upon reasonable assumptions, it can give no assurance that

those expectations will be achieved.

The Q2 2022 results press release and presentation slides

are available on the ABB News Center at

www.abb.com/news and on the Investor Relations

homepage at www.abb.com/investorrelations. 

A conference call and webcast for analysts and investors is

scheduled to begin today at 10:00 a.m. CET.

To pre-register for the conference call or to join the

webcast, please refer to the ABB website:

www.abb.com/investorrelations. 

The recorded session will be available after the event on

ABB’s website.

Important notice about forward-looking information

Q2 results presentation on July 21, 2022

ABB

 (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of society and industry to

achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion

portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back

more than 130 years, ABB’s success is driven by about 105,000 talented employees in over 100 countries.

1 Q2 2022 FINANCIAL INFORMATION

July 21, 2022

Q2 2022

Financial information

2 Q2 2022 FINANCIAL INFORMATION

—

Financial Information

Contents

03

─ 07 Key Figures

08 ─

34 Consolidated Financial Information (unaudited)

35 ─

47 Supplemental Reconciliations and Definitions

3 Q2 2022 FINANCIAL INFORMATION

—

Key Figures

CHANGE

($ in millions, unless otherwise indicated)

Q2 2022

Q2 2021

US$

Comparable

(1)

Orders

8,807

7,989

10%

20%

Order backlog (end June)

19,477

15,424

26%

37%

Revenues

7,251

7,449

-3%

6%

Gross Profit

2,290

2,508

-9%

as % of revenues

31.6%

33.7%

-2.1 pts

Income from operations

587

1,094

-46%

Operational EBITA

(1)

1,136

1,113

2%

9%

(2)

as % of operational revenues

(1)

15.5%

15.0%

+0.5 pts

Income from continuing operations, net of tax

406

789

-49%

Net income attributable to ABB

379

752

-50%

Basic earnings per share ($)

0.20

0.37

-47%

(3)

Cash flow from operating activities

(4)

382

663

-42%

Cash flow from operating activities in continuing operations

385

663

-42%

CHANGE

($ in millions, unless otherwise indicated)

H1 2022

H1 2021

US$

Comparable

(1)

Orders

18,180

15,745

15%

24%

Revenues

14,216

14,350

-1%

7%

Gross Profit

4,571

4,776

-4%

as % of revenues

32.2%

33.3%

-1.1 pts

Income from operations

1,444

1,891

-24%

Operational EBITA

(1)

2,133

2,072

3%

9%

(2)

as % of operational revenues

(1)

14.9%

14.4%

+0.5 pts

Income from continuing operations, net of tax

1,049

1,340

-22%

Net income attributable to ABB

983

1,254

-22%

Basic earnings per share ($)

0.51

0.62

-18%

(3)

Cash flow from operating activities

(4)

(191)

1,206

n.a.

Cash flow from operating activities in continuing operations

(179)

1,186

n.a.

(1) For a reconciliation of non-GAAP measures see “

” on page 35.

(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.

4 Q2 2022 FINANCIAL INFORMATION

CHANGE

($ in millions, unless otherwise indicated)

Q2 2022

Q2 2021

US$

Local

Comparable

Orders 

ABB Group

8,807

7,989

10%

17%

20%

Electrification

4,037

3,693

9%

16%

16%

Motion

2,079

1,947

7%

14%

26%

Process Automation

1,819

1,555

17%

25%

25%

Robotics & Discrete Automation

1,109

968

15%

24%

23%

Corporate and Other 

(incl. intersegment eliminations)

(237)

(174)

Order backlog (end June)

ABB Group

19,477

15,424

26%

36%

37%

Electrification

6,706

5,029

33%

42%

42%

Motion

4,568

3,558

28%

40%

43%

Process Automation

6,170

5,980

3%

12%

12%

Robotics & Discrete Automation

2,728

1,501

82%

98%

97%

Corporate and Other 

(incl. intersegment eliminations)

(695)

(644)

Revenues 

ABB Group

7,251

7,449

-3%

4%

6%

Electrification

3,531

3,406

4%

10%

10%

Motion

1,626

1,850

-12%

-6%

3%

Process Automation

1,529

1,540

-1%

7%

7%

Robotics & Discrete Automation

732

832

-12%

-5%

-5%

Corporate and Other 

(incl. intersegment eliminations)

(167)

(179)

Income from operations

ABB Group

587

1,094

Electrification

465

549

Motion

231

303

Process Automation

175

190

Robotics & Discrete Automation

43

74

Corporate and Other

(incl. intersegment eliminations)

(327)

(22)

Income from operations %

ABB Group

8.1%

14.7%

Electrification

13.2%

16.1%

Motion

14.2%

16.4%

Process Automation

11.4%

12.3%

Robotics & Discrete Automation

5.9%

8.9%

Operational EBITA

ABB Group

1,136

1,113

2%

9%

Electrification

599

592

1%

9%

Motion

266

325

-18%

-13%

Process Automation

224

192

17%

28%

Robotics & Discrete Automation

60

96

-38%

-29%

Corporate and Other

(incl. intersegment eliminations)

(13)

(92)

Operational EBITA % 

ABB Group

15.5%

15.0%

Electrification

16.9%

17.4%

Motion

16.4%

17.7%

Process Automation

14.3%

12.5%

Robotics & Discrete Automation

8.2%

11.5%

Cash flow from operating activities

ABB Group

382

663

Electrification

393

511

Motion

241

223

Process Automation

193

228

Robotics & Discrete Automation

56

78

Corporate and Other 

(incl. intersegment eliminations)

(498)

(377)

Discontinued operations

(3)

–

5 Q2 2022 FINANCIAL INFORMATION

CHANGE

($ in millions, unless otherwise indicated)

H1 2022

H1 2021

US$

Local

Comparable

Orders 

ABB Group

18,180

15,745

15%

21%

24%

Electrification

8,434

7,224

17%

22%

22%

Motion

4,281

3,864

11%

17%

29%

Process Automation

3,511

3,211

9%

15%

15%

Robotics & Discrete Automation

2,417

1,809

34%

42%

40%

Corporate and Other

(incl. intersegment eliminations)

(463)

(363)

Order backlog (end June)

ABB Group

19,477

15,424

26%

36%

37%

Electrification

6,706

5,029

33%

42%

42%

Motion

4,568

3,558

28%

40%

43%

Process Automation

6,170

5,980

3%

12%

12%

Robotics & Discrete Automation

2,728

1,501

82%

98%

97%

Corporate and Other

(incl. intersegment eliminations)

(695)

(644)

Revenues 

ABB Group

14,216

14,350

-1%

5%

7%

Electrification

6,858

6,546

5%

10%

10%

Motion

3,198

3,517

-9%

-4%

6%

Process Automation

3,035

2,947

3%

9%

9%

Robotics & Discrete Automation

1,462

1,685

-13%

-8%

-9%

Corporate and Other

(incl. intersegment eliminations)

(337)

(345)

Income from operations

ABB Group

1,444

1,891

Electrification

971

989

Motion

485

568

Process Automation

326

337

Robotics & Discrete Automation

65

156

Corporate and Other

(incl. intersegment eliminations)

(403)

(159)

Income from operations %

ABB Group

10.2%

13.2%

Electrification

14.2%

15.1%

Motion

15.2%

16.2%

Process Automation

10.7%

11.4%

Robotics & Discrete Automation

4.4%

9.3%

Operational EBITA

ABB Group

2,133

2,072

3%

9%

Electrification

1,109

1,103

1%

7%

Motion

540

614

-12%

-8%

Process Automation

420

347

21%

29%

Robotics & Discrete Automation

109

201

-46%

-40%

Corporate and Other

(incl. intersegment eliminations)

(45)

(193)

Operational EBITA % 

ABB Group

14.9%

14.4%

Electrification

16.1%

16.8%

Motion

16.9%

17.4%

Process Automation

13.7%

11.8%

Robotics & Discrete Automation

7.4%

11.9%

Cash flow from operating activities

ABB Group

(191)

1,206

Electrification

432

830

Motion

239

547

Process Automation

253

461

Robotics & Discrete Automation

27

189

Corporate and Other

(incl. intersegment eliminations)

(1,130)

(841)

Discontinued operations

(12)

20

6 Q2 2022 FINANCIAL INFORMATION

Operational EBITA

Process

Robotics & Discrete

ABB

Electrification

Motion

Automation

Automation

($ in millions, unless otherwise indicated)

Q2 22

Q2 21

Q2 22

Q2 21

Q2 22

Q2 21

Q2 22

Q2 21

Q2 22

Q2 21

Revenues

7,251

7,449

3,531

3,406

1,626

1,850

1,529

1,540

732

832

Foreign exchange/commodity timing

differences in total revenues

70

(13)

22

2

(4)

(11)

32

(4)

1

2

Operational revenues

7,321

7,436

3,553

3,408

1,622

1,839

1,561

1,536

733

834

Income from operations

587

1,094

465

549

231

303

175

190

43

74

Acquisition-related amortization

59

64

30

29

7

13

1

1

19

21

Restructuring, related and 

implementation costs

(1)

264

18

8

4

–

4

–

10

2

–

Changes in obligations related to 

divested businesses

(3)

4

–

–

–

–

–

–

–

–

Changes in pre-acquisition estimates

(2)

2

–

2

–

–

–

–

(2)

–

Gains and losses from sale of businesses

4

(12)

–

1

4

(1)

–

(13)

–

–

Acquisition- and divestment-related 

expenses and integration costs

50

20

10

12

3

4

36

3

2

–

Other income/expense relating to the 

Power Grids joint venture

2

2

–

–

–

–

–

–

–

–

Certain other non-operational items

65

(86)

22

(9)

–

1

–

2

1

–

Foreign exchange/commodity timing

differences in income from operations

110

7

64

4

21

1

12

(1)

(5)

1

Operational EBITA

1,136

1,113

599

592

266

325

224

192

60

96

Operational EBITA margin (%)

15.5%

15.0%

16.9%

17.4%

16.4%

17.7%

14.3%

12.5%

8.2%

11.5%

Process

Robotics & Discrete

ABB

Electrification

Motion

Automation

Automation

($ in millions, unless otherwise indicated)

H1 22

H1 21

H1 22

H1 21

H1 22

H1 21

H1 22

H1 21

H1 22

H1 21

Revenues

14,216

14,350

6,858

6,546

3,198

3,517

3,035

2,947

1,462

1,685

Foreign exchange/commodity timing

differences in total revenues

67

20

12

12

(1)

8

31

1

6

(1)

Operational revenues

14,283

14,370

6,870

6,558

3,197

3,525

3,066

2,948

1,468

1,684

Income from operations

1,444

1,891

971

989

485

568

326

337

65

156

Acquisition-related amortization

119

129

61

58

15

26

2

2

40

41

Restructuring, related and

implementation costs

(1)

280

53

10

21

8

5

5

13

3

5

Changes in obligations related to 

divested businesses

(17)

6

–

–

–

–

–

–

–

–

Changes in pre-acquisition estimates

(1)

8

1

8

–

–

–

–

(2)

–

Gains and losses from sale of businesses

4

(9)

–

4

4

(1)

–

(13)

–

–

Acquisition- and divestment-related 

expenses and integration costs

109

30

29

18

8

7

69

4

3

–

Other income/expense relating to the 

Power Grids joint venture

37

19

–

–

–

–

–

–

–

–

Certain other non-operational items

63

(74)

(8)

(15)

–

1

–

2

1

–

Foreign exchange/commodity timing

differences in income from operations

95

19

45

20

20

8

18

2

(1)

(1)

Operational EBITA

2,133

2,072

1,109

1,103

540

614

420

347

109

201

Operational EBITA margin (%)

14.9%

14.4%

16.1%

16.8%

16.9%

17.4%

13.7%

11.8%

7.4%

11.9%

(1) Includes impairment of certain assets.

7 Q2 2022 FINANCIAL INFORMATION

Depreciation and Amortization

Process

Robotics & Discrete

ABB

Electrification

Motion

Automation

Automation

($ in millions)

Q2 22

Q2 21

Q2 22

Q2 21

Q2 22

Q2 21

Q2 22

Q2 21

Q2 22

Q2 21

Depreciation

136

148

67

68

26

32

16

19

15

15

Amortization

71

82

35

39

9

15

3

3

20

21

including total acquisition-related amortization of:

59

64

30

29

7

13

1

1

19

21

Process

Robotics & Discrete 

ABB

Electrification

Motion

Automation

Automation

($ in millions)

H1 22

H1 21

H1 22

H1 21

H1 22

H1 21

H1 22

H1 21

H1 22

H1 21

Depreciation

272

292

134

132

53

64

34

38

30

28

Amortization

145

165

72

76

18

29

6

6

41

42

including total acquisition-related amortization of:

119

129

61

58

15

26

2

2

40

41

Orders received and revenues by region

($ in millions, unless otherwise indicated)

Orders received

CHANGE

Revenues

CHANGE

Com-

Com-

Q2 22

Q2 21

US$

Local

parable

Q2 22

Q2 21

US$

Local

parable

Europe

2,958

2,954

0%

15%

15%

2,508

2,697

-7%

7%

7%

The Americas

3,050

2,473

23%

24%

33%

2,397

2,284

5%

6%

14%

of which United States

2,234

1,846

21%

21%

32%

1,746

1,676

4%

4%

14%

Asia, Middle East and Africa

2,799

2,562

9%

15%

15%

2,346

2,468

-5%

0%

0%

of which China

1,409

1,322

7%

9%

10%

1,163

1,313

-11%

-9%

-9%

ABB Group

8,807

7,989

10%

17%

20%

7,251

7,449

-3%

4%

6%

($ in millions, unless otherwise indicated)

Orders received

CHANGE

Revenues

CHANGE

Com-

Com-

H1 22

H1 21

US$

Local

parable

H1 22

H1 21

US$

Local

parable

Europe

6,492

6,056

7%

19%

19%

5,026

5,248

-4%

7%

7%

The Americas

5,947

4,720

26%

26%

36%

4,566

4,327

6%

7%

15%

of which United States

4,459

3,525

26%

27%

39%

3,328

3,208

4%

4%

14%

Asia, Middle East and Africa

5,741

4,969

16%

19%

19%

4,624

4,775

-3%

0%

0%

of which China

2,946

2,521

17%

17%

18%

2,263

2,489

-9%

-9%

-8%

ABB Group

18,180

15,745

15%

21%

24%

14,216

14,350

-1%

5%

7%

8 Q2 2022 FINANCIAL INFORMATION

—

Consolidated Financial Information

ABB Ltd Consolidated Income Statements (unaudited)

Six months ended

Three months ended

($ in millions, except per share data in $)

Jun. 30, 2022

Jun. 30, 2021

Jun. 30, 2022

Jun. 30, 2021

Sales of products

11,762

11,874

6,013

6,167

Sales of services and other

2,454

2,476

1,238

1,282

Total revenues

14,216

14,350

7,251

7,449

Cost of sales of products

(8,222)

(8,108)

(4,254)

(4,184)

Cost of services and other

(1,423)

(1,466)

(707)

(757)

Total cost of sales

(9,645)

(9,574)

(4,961)

(4,941)

Gross profit

4,571

4,776

2,290

2,508

Selling, general and administrative expenses

(2,556)

(2,577)

(1,317)

(1,314)

Non-order related research and development expenses

(572)

(601)

(295)

(308)

Other income (expense), net

1

293

(91)

208

Income from operations

1,444

1,891

587

1,094

Interest and dividend income

33

26

20

15

Interest and other finance expense

(62)

(91)

(40)

(36)

Non-operational pension (cost) credit

68

88

32

38

Income from continuing operations before taxes

1,483

1,914

599

1,111

Income tax expense

(434)

(574)

(193)

(322)

Income from continuing operations, net of tax

1,049

1,340

406

789

Loss from discontinued operations, net of tax

(20)

(36)

(9)

(8)

Net income

1,029

1,304

397

781

Net income attributable to noncontrolling interests

(46)

(50)

(18)

(29)

Net income attributable to ABB

983

1,254

379

752

Amounts attributable to ABB shareholders:

Income from continuing operations, net of tax

1,003

1,290

388

760

Loss from discontinued operations, net of tax

(20)

(36)

(9)

(8)

Net income

983

1,254

379

752

Basic earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax

0.52

0.64

0.20

0.38

Loss from discontinued operations, net of tax

(0.01)

(0.02)

0.00

0.00

Net income

0.51

0.62

0.20

0.37

Diluted earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax

0.52

0.63

0.20

0.37

Loss from discontinued operations, net of tax

(0.01)

(0.02)

0.00

0.00

Net income

0.51

0.62

0.20

0.37

Weighted-average number of shares outstanding (in millions) used to compute:

Basic earnings per share attributable to ABB shareholders

1,922

2,015

1,909

2,016

Diluted earnings per share attributable to ABB shareholders

1,935

2,033

1,918

2,031

Due to rounding, numbers presented may not add to the totals provided.

See Notes to the Consolidated Financial Information

9 Q2 2022 FINANCIAL INFORMATION

—

ABB Ltd Condensed Consolidated Statements of Comprehensive

Income (unaudited)

Six months ended

Three months ended

($ in millions)

Jun. 30, 2022

Jun. 30, 2021

Jun. 30, 2022

Jun. 30, 2021

Total comprehensive income, net of tax

708

1,206

131

881

Total comprehensive income attributable to noncontrolling interests, net of tax

(26)

(55)

(3)

(31)

Total comprehensive income attributable to ABB shareholders, net of tax

682

1,151

128

850

Due to rounding, numbers presented may not add to the totals provided.

See Notes to the Consolidated Financial Information

10 Q2 2022 FINANCIAL INFORMATION

—

ABB Ltd Consolidated Balance Sheets (unaudited)

($ in millions)

Jun. 30, 2022

Dec. 31, 2021

Cash and equivalents

2,412

4,159

Restricted cash

23

30

Marketable securities and short-term investments

945

1,170

Receivables, net

6,960

6,551

Contract assets

965

990

Inventories, net

5,595

4,880

Prepaid expenses

262

206

Other current assets

474

573

Current assets held for sale and in discontinued operations

122

136

Total current assets

17,758

18,695

Restricted cash, non-current

301

300

Property, plant and equipment, net

3,885

4,045

Operating lease right-of-use assets

783

895

Investments in equity-accounted companies

1,617

1,670

Prepaid pension and other employee benefits

908

892

Intangible assets, net

1,474

1,561

Goodwill

10,452

10,482

Deferred taxes

1,272

1,177

Other non-current assets

448

543

Total assets

38,898

40,260

Accounts payable, trade

4,805

4,921

Contract liabilities

2,141

1,894

Short-term debt and current maturities of long-term debt

2,830

1,384

Current operating leases

222

230

Provisions for warranties

972

1,005

Other provisions

1,144

1,386

Other current liabilities

4,277

4,367

Current liabilities held for sale and in discontinued operations

306

381

Total current liabilities

16,697

15,568

Long-term debt

5,086

4,177

Non-current operating leases

586

689

Pension and other employee benefits

925

1,025

Deferred taxes

696

685

Other non-current liabilities

2,214

2,116

Non-current liabilities held for sale and in discontinued operations

28

43

Total liabilities

26,232

24,303

Commitments and contingencies

Redeemable noncontrolling interest

80

–

Stockholders’ equity:

Common stock, CHF 0.12 par value

(1,965 million and 2,053 million shares issued at June 30, 2022, and December 31, 2021, respectively)

171

178

Additional paid-in capital

12

22

Retained earnings

18,767

22,477

Accumulated other comprehensive loss

(4,389)

(4,088)

Treasury stock, at cost

(72 million and 95 million shares at June 30, 2022, and December 31, 2021, respectively)

(2,290)

(3,010)

Total ABB stockholders’ equity

12,271

15,579

Noncontrolling interests

315

378

Total stockholders’ equity

12,586

15,957

Total liabilities and stockholders’ equity

38,898

40,260

Due to rounding, numbers presented may not add to the totals provided.

See Notes to the Consolidated Financial Information

11 Q2 2022 FINANCIAL INFORMATION

—

ABB Ltd Consolidated Statements of Cash Flows (unaudited)

Six months ended

Three months ended

($ in millions)

Jun. 30, 2022

Jun. 30, 2021

Jun. 30, 2022

Jun. 30, 2021

Operating activities:

Net income

1,029

1,304

397

781

Loss from discontinued operations, net of tax

20

36

9

8

Adjustments to reconcile net income (loss) to 

net cash provided by operating activities:

Depreciation and amortization

417

457

207

230

Changes in fair values of investments

(15)

(113)

9

(103)

Pension and other employee benefits

(83)

(94)

(37)

(44)

Deferred taxes

(148)

109

(32)

50

Loss from equity-accounted companies

62

57

14

22

Net loss (gain) from derivatives and foreign exchange

77

44

105

24

Net loss (gain) from sale of property, plant and equipment

(55)

(15)

(23)

(4)

Other

67

29

31

9

Changes in operating assets and liabilities:

Trade receivables, net

(621)

(414)

(304)

(412)

Contract assets and liabilities

252

(147)

145

(57)

Inventories, net

(1,083)

(293)

(541)

(125)

Accounts payable, trade

80

309

73

267

Accrued liabilities

(255)

53

135

129

Provisions, net

126

(60)

179

(61)

Income taxes payable and receivable

(52)

(56)

(66)

(6)

Other assets and liabilities, net

3

(20)

84

(45)

Net cash provided by (used in) operating activities – continuing operations

(179)

1,186

385

663

Net cash provided by (used in) operating activities – discontinued operations

(12)

20

(3)

–

Net cash provided by (used in) operating activities

(191)

1,206

382

663

Investing activities:

Purchases of investments

(256)

(347)

(128)

(38)

Purchases of property, plant and equipment and intangible assets

(338)

(293)

(151)

(151)

Acquisition of businesses (net of cash acquired)

and increases in cost- and equity-accounted companies

(179)

(28)

(34)

(24)

Proceeds from sales of investments

506

1,321

201

930

Proceeds from maturity of investments

–

80

–

–

Proceeds from sales of property, plant and equipment

66

23

31

3

Proceeds from sales of businesses (net of transaction costs

and cash disposed) and cost- and equity-accounted companies

(13)

47

(13)

49

Net cash from settlement of foreign currency derivatives

56

(72)

(10)

(11)

Other investing activities

(8)

(14)

(18)

(6)

Net cash provided by (used in) investing activities – continuing operations

(166)

717

(122)

752

Net cash used in investing activities – discontinued operations

(91)

(70)

(70)

(26)

Net cash provided by (used in) investing activities

(257)

647

(192)

726

Financing activities:

Net changes in debt with original maturities of 90 days or less

1,191

274

(114)

187

Increase in debt

3,181

1,004

639

13

Repayment of debt

(1,483)

(750)

(1,442)

(703)

Delivery of shares

370

766

–

6

Purchase of treasury stock

(2,661)

(1,971)

(1,100)

(585)

Dividends paid

(1,698)

(1,726)

(809)

(882)

Dividends paid to noncontrolling shareholders

(76)

(92)

(75)

(91)

Other financing activities

(53)

6

(19)

42

Net cash used in financing activities – continuing operations

(1,229)

(2,489)

(2,920)

(2,013)

Net cash provided by financing activities – discontinued operations

–

–

–

–

Net cash used in financing activities

(1,229)

(2,489)

(2,920)

(2,013)

Effects of exchange rate changes on cash and equivalents and restricted cash

(76)

(34)

(80)

17

Net change in cash and equivalents and restricted cash

(1,753)

(670)

(2,810)

(607)

Cash and equivalents and restricted cash, beginning of period

4,489

3,901

5,546

3,838

Cash and equivalents and restricted cash, end of period

2,736

3,231

2,736

3,231

Supplementary disclosure of cash flow information:

Interest paid

36

58

27

46

Income taxes paid

638

543

298

287

Due to rounding, numbers presented may not add to the totals provided.

See Notes to the Consolidated Financial Information

12 Q2 2022 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, 2021

188

83

22,946

(4,002)

(3,530)

15,685

314

15,999

Comprehensive income:

Net income

1,254

1,254

50

1,304

Foreign currency translation

adjustments, net of tax of $2

(166)

(166)

5

(161)

Effect of change in fair value of

available-for-sale securities,

net of tax of $(3)

(8)

(8)

(8)

Unrecognized income (expense)

related to pensions and other

postretirement plans,

net of tax of $(3)

71

71

71

Change in derivative instruments

and hedges, net of tax of $0

–

–

–

Total comprehensive income

1,151

55

1,206

Changes in noncontrolling interests

(37)

(20)

(57)

57

–

Dividends to

noncontrolling shareholders

–

(92)

(92)

Dividends to shareholders

(1,730)

(1,730)

(1,730)

Cancellation of treasury shares

(10)

(17)

(3,130)

3,157

–

–

Share-based payment arrangements

37

37

37

Purchase of treasury stock

(1,924)

(1,924)

(1,924)

Delivery of shares

(58)

(136)

960

766

766

Other

2

2

2

Balance at June 30, 2021

178

10

19,185

(4,104)

(1,337)

13,932

334

14,266

Balance at January 1, 2022

178

22

22,477

(4,088)

(3,010)

15,579

378

15,957

Comprehensive income:

Net income

983

983

48

1,031

Foreign currency translation

adjustments, net of tax of $1

(392)

(392)

(22)

(414)

Effect of change in fair value of

available-for-sale securities,

net of tax of $(4)

(17)

(17)

(17)

Unrecognized income (expense)

related to pensions and other

postretirement plans,

net of tax of $37

106

106

106

Change in derivative instruments

and hedges, net of tax of $2

2

2

2

Total comprehensive income

682

26

708

Changes in noncontrolling interests

(2)

(2)

(13)

(15)

Dividends to

noncontrolling shareholders

–

(74)

(74)

Dividends to shareholders

(1,700)

(1,700)

(1,700)

Cancellation of treasury shares

(8)

(4)

(2,864)

2,876

–

–

Share-based payment arrangements

28

28

28

Purchase of treasury stock

(2,693)

(2,693)

(2,693)

Delivery of shares

(38)

(130)

538

370

370

Other

6

6

6

Balance at June 30, 2022

171

12

18,767

(4,389)

(2,290)

12,271

315

12,586

Due to rounding, numbers presented may not add to the totals provided.

See Notes to the Consolidated Financial Information

13 Q2 2022 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 leading global technology company, connecting software to its electrification, robotics,

automation and motion portfolio to drive performance to new levels.

The Company’s Consolidated Financial Information is prepared in accordance with United States of America generally accepted accounting principles (U.S.

GAAP) for interim financial reporting. As such, the Consolidated Financial Information does not include all the information and notes required under U.S. GAAP for

annual consolidated financial statements. Therefore, such financial information should be read in conjunction with the audited consolidated financial statements in

the Company’s Annual Report for the year ended December 31, 2021.

The preparation of financial information in conformity with U.S. GAAP requires management to make assumptions and estimates that directly affect the amounts

reported in the Consolidated Financial Information. These accounting assumptions and estimates include:

●

growth rates, discount rates and other assumptions used to determine impairment of long-lived assets and in testing goodwill for impairment,

●

estimates to determine valuation allowances for deferred tax assets and amounts recorded for unrecognized tax benefits,

●

assumptions used in determining inventory obsolescence and net realizable value,

●

estimates and assumptions used in determining the initial fair value of retained noncontrolling interest and certain obligations in connection with

divestments,

●

estimates and assumptions used in determining the fair values of assets and liabilities assumed in business combinations,

●

estimates of loss contingencies associated with litigation or threatened litigation and other claims and inquiries, environmental damages, product

warranties, self-insurance reserves, regulatory and other proceedings,

●

estimates used to record expected costs for employee severance in connection with restructuring programs,

●

estimates related to credit losses expected to occur over the remaining life of financial assets such as trade and other receivables, loans and other

instruments,

●

assumptions used in the calculation of pension and postretirement benefits and the fair value of pension plan assets, and

●

assumptions and projections, principally related to future material, labor and project-related overhead costs, used in determining the percentage-of-

completion on projects, as well as the amount of variable consideration the Company expects to be entitled to.

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 contracts 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 nature. The Consolidated Financial

Information is presented in United States dollars ($) unless otherwise stated. Due to rounding, numbers presented in the Consolidated Financial Information may

not add to the totals provided.

14 Q2 2022 FINANCIAL INFORMATION

─

Note 2

Recent accounting pronouncements

Applicable for current periods

Business Combinations — Accounting for contract assets and contract liabilities from contracts with customers

In January 2022, the Company early adopted a new accounting standard update, which provides guidance on the accounting for revenue contracts acquired in a

business combination. The update requires contract assets and liabilities acquired in a business combination to be recognized and measured at the date of

acquisition in accordance with the principles for recognizing revenues from contracts with customers. The Company has applied this accounting standard update

prospectively starting with acquisitions closing after January 1, 2022.

Disclosures about government assistance

In January 2022, the Company adopted a new accounting standard update, which requires entities to disclose certain types of government assistance. Under the

update, the Company is required to annually disclose (i) the type of the assistance received, including any significant terms and conditions, (ii) its related

accounting policy, and (iii) the effect such transactions have on its financial statements. The Company has applied this accounting standard update prospe ctively.

This update does not have a significant impact on the Company’s consolidated financial statements. 

Applicable for future periods

Facilitation of the effects of reference rate reform on financial reporting

In March 2020, an accounting standard update was issued 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 market transition from the London Interbank Offered Rate

(LIBOR) and other interbank offered rates to alternative reference rates. This update, along with clarifications outlined in a subsequent update issued in January

2021, can be adopted and applied no later than December 31, 2022, with early adoption permitted. The Company does not expect this update to have a significant

impact on its consolidated financial statements.

─

Note 3

Discontinued operations and assets held for sale

Divestment of the Power Grids business

On July 1, 2020, the Company completed the sale of 80.1 percent of its Power Grids business to Hitachi Ltd (Hitachi). The transaction was executed through the

sale of 80.1 percent of the shares of Hitachi Energy Ltd, formerly Hitachi ABB Power Grids Ltd (“Hitachi Energy”). Cash consideration received at the closing date

was $9,241 million net of cash disposed. Further, for accounting purposes, the 19.9 percent ownership interest retained by the Company is deemed to have been

both divested and reacquired at its fair value on July 1, 2020 (see Note 4).

At the date of the divestment, the Company recorded liabilities in discontinued operations for estimated future costs and other cash payments of $487 million for

various contractual items relating to the sale of the business including required future cost reimbursements payable to Hitachi Energy, costs to be incurred by the

Company for the direct benefit of Hitachi Energy, and an amount due to Hitachi Ltd in connection with the expected purchase price finalization of the closing debt

and working capital balances. From the date of the disposal through June 30, 2022, $438 million of these liabilities had been paid and are reported as reductions in

the cash consideration received, of which $74 million and $53 million was paid during the six and three months ended June 30, 2022, respectively. In the six and

three months ended June 30, 2021, total cash payments made in connection with these liabilities amounted to $70 million and $26 million, respectively. At

June 30, 2022, the remaining amount recorded was $64 million.

During the second quarter of 2022, the Company completed the legal title transfer of the remaining entities of Power Grids business to Hitachi Energy, resulting in

the release of $12 million held in escrow and included in Current Restricted Cash at December 31, 2021.

Upon closing of the sale, the Company entered into various transition services agreements (TSAs). Pursuant to these TSAs, the Company and Hitachi Energy

provide to each other, on an interim, transitional basis, various services. The services provided by the Company primarily include finance, information technology,

human resources and certain other administrative services. Under the current terms, the TSAs will continue for up to 3 years, and can only be extended on an

exceptional basis for business-critical services for an additional period which is reasonably necessary to avoid a material adverse impact on the business. In the

six and three months ended June 30, 2022, the Company has recognized within its continuing operations, general and administrative expenses incurred to perform

the TSA, offset by $76 million and $38 million, respectively, in TSA-related income for such services that is reported in Other income (expense). In the six and

three months ended June 30, 2021, Other income (expense) included $88 million and $41 million, respectively, of TSA-related income for such services.

Discontinued operations

As a result of the sale of the Power Grids business, substantially all assets and liabilities related to Power Grids have been sold. As this divestment represented a

strategic shift that would have a major effect on the Company’s operations and financial results, the results of this business were presented as discontinued

operations and the assets and liabilities were presented as held for sale and in discontinued operations. After the date of sale, certain business contracts in the

Power Grids business continue to be executed by subsidiaries of the Company for the benefit/risk of Hitachi Energy . Assets and liabilities relating to, as well as the

net financial results of, these contracts will continue to be included in discontinued operations until they have been completed or otherwise transferred to Hitachi

Energy.

15 Q2 2022 FINANCIAL INFORMATION

Amounts recorded in discontinued operations were as follows:

Six months ended

Three months ended

($ in millions)

Jun. 30, 2022

Jun. 30, 2021

Jun. 30, 2022

Jun. 30, 2021

Total revenues

–

–

–

–

Total cost of sales

–

–

–

–

Gross profit

–

–

–

–

Expenses

(11)

(9)

(5)

(5)

Change to net gain recognized on sale of the Power Grids business

(9)

(27)

(4)

(3)

Loss from operations

(20)

(36)

(9)

(8)

Net interest income (expense) and other finance expense

–

–

–

–

Non-operational pension (cost) credit

–

–

–

–

Loss from discontinued operations before taxes

(20)

(36)

(9)

(8)

Income tax

–

–

–

–

Loss from discontinued operations, net of tax

(20)

(36)

(9)

(8)

In addition, the Company also has retained obligations (primarily for environmental and taxes) related to other businesses disposed or otherwise exited that

qualified as discontinued operations. Changes to these retained obligations are also included in Loss from discontinued operations, net of tax, above.

The major components of assets and liabilities held for sale and in discontinued operations in the Company’s Consolidated Balance Sheets are summarized as

follows:

($ in millions)

Jun. 30, 2022

(1)

Dec. 31, 2021

(1)

Receivables, net

110

131

Other current assets

12

5

Current assets held for sale and in discontinued operations

122

136

Accounts payable, trade

52

71

Other liabilities

254

310

Current liabilities held for sale and in discontinued operations

306

381

Other non-current liabilities

28

43

Non-current liabilities held for sale and in discontinued operations

28

43

(1) At June 30, 2022, and December 31, 2021, the balances reported as held for sale and in discontinued operations pertain to Power Grids activities and other obligations which will

remain with the Company until such time as the obligation is settled or the activities are fully wound down.

─

Note 4

Acquisitions and equity-accounted companies

Acquisition of controlling interests

Acquisitions of controlling interests were as follows:

Six months ended June 30,

Three months ended June 30,

($ in millions, except number of acquired businesses)

2022

2021

2022

2021

Purchase price for acquisitions (net of cash acquired)

(1)

138

26

–

26

Aggregate excess of purchase price

over fair value of net assets acquired

(2)

191

11

–

11

Number of acquired businesses 

1

1

–

1

(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 for the six

months ended June 30, 2022, relate primarily to the acquisition of InCharge Energy, Inc. (In-Charge).

Acquisitions of controlling interests have been accounted for under the acquisition method and have been included in the Company’s Consolidated Financial

Statements since the date of acquisition. 

While the Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets acquired 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. 

16 Q2 2022 FINANCIAL INFORMATION

On January 26, 2022, the Company increased its ownership in In-Charge to a 60 percent controlling interest through a stock purchase agreement. The resulting

cash outflows for the Company amounted to $135 million (net of cash acquired of $4 million). The acquisition expands the market presence of the E-mobility

Division, 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) in the six months ended June 30, 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 Redeemable noncontrolling interest (i.e. mezzanine equity) in the Consolidated Balance Sheets and was initially

recognized at fair value.

There were no significant business acquisitions for the six months ended June 30, 2021.

Investments in equity-accounted companies

In connection with the divestment of its Power Grids business to Hitachi (see Note 3), the Company retained a 19. 9 percent interest in the business and obtained

an option, exercisable with three-months’ notice commencing April 2023, granting it the right to require Hitachi to purchase this investment at fair value, subject to

a minimum floor price equivalent to a 10 percent discount compared to the price paid for the initial 80.1 percent. The Company has concluded that based on its

continuing involvement with the Power Grids business, including membership in its governing board of directors, it has significant influence over Hitachi Energy. As

a result, the investment (including the value of the option) is accounted for using the equity method.

At the date of the divestment of the Power Grids business, the fair value of Hitachi Energy exceeded the book value of the underlying net assets. At June 30, 2022,

and December 31, 2021, the reported value of the investment in Hitachi Energy includes $1,428 million and $1,474 million, respectively, for the Company’s

19.9 percent share of this basis difference. The Company amortizes its share of these differences over the estimated remaining useful lives of the underlying

assets that gave rise to this difference, recording the amortizati on, net of related deferred tax benefit, as a reduction of income from equity-accounted companies.

As of June 30, 2022, the Company determined that no impairment of its equity-accounted investments existed.

The carrying value of the Company’s investments in equity-accounted companies and respective percentage of ownership is as follows:

Ownership as of

Carrying value at

($ in millions, except ownership share in %)

June 30, 2022

June 30, 2022

December 31, 2021

Hitachi Energy Ltd

19.9%

1,551

1,609

Others

66

61

Total

1,617

1,670

In the six and three months ended June 30, 2022 and 2021 , the Company recorded its share of the earnings of investees accounted for under the equity method of

accounting in Other income (expense), net, as follows:

Six months ended June 30,

Three months ended June 30,

($ in millions)

2022

2021

2022

2021

Income (loss) from equity-accounted companies, net of taxes

(10)

4

1

8

Basis difference amortization (net of deferred income tax benefit)

(52)

(61)

(15)

(30)

Loss from equity-accounted companies

(62)

(57)

(14)

(22)

17 Q2 2022 FINANCIAL INFORMATION

─

Note 5

Cash and equivalents, marketable securities and short-term investments

Cash and equivalents, marketable securities and short-term investments consisted of the following:

June 30, 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

1,752

–

–

1,752

1,752

–

Time deposits

1,074

–

–

1,074

984

90

Equity securities

411

5

–

416

–

416

3,237

5

–

3,242

2,736

506

Changes in fair value recorded

in other comprehensive income

Debt securities available-for-sale:

U.S. government obligations

270

2

(12)

260

–

260

Other government obligations

122

–

–

122

–

122

Corporate

63

–

(6)

57

–

57

455

2

(18)

439

–

439

Total

3,692

7

(18)

3,681

2,736

945

Of which: 

Restricted cash, current

23

Restricted cash, non-current

301

December 31, 2021

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

2,752

2,752

2,752

Time deposits

2,037

2,037

1,737

300

Equity securities

569

18

587

587

5,358

18

–

5,376

4,489

887

Changes in fair value recorded

in other comprehensive income

Debt securities available-for-sale:

U.S. government obligations

203

7

(1)

209

209

Corporate

74

1

(1)

74

74

277

8

(2)

283

–

283

Total

5,635

26

(2)

5,659

4,489

1,170

Of which:

Restricted cash, current

30

Restricted cash, non-current

300

18 Q2 2022 FINANCIAL INFORMATION

─

Note 6

Derivative financial instruments

The Company is exposed to certain currency, commodity, interest rate and equity 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 operating activities from entering into

transactions in currencies other than their functional currency. To manage such currency risks, the Company’s policies require its subsidiaries to hedge their

foreign currency exposures from binding sales and purchase contracts denominated in foreign currencies. For forecasted foreign currency denominated sales of

standard products and the related foreign currency denominated purchases, the Company’s policy is to hedge up to a maximum of 100 percent of the forecasted

foreign currency denominated exposures, depending on the length of the forecasted exposures. Forecasted exposures greater than 12 months are not hedged.

Forward foreign exchange contracts are the main instrument used to protect the Company against the volatility of future cash flows (caused by changes in

exchange rates) of contracted and forecasted sales and purchases denominated in foreign currencies. In addition, within its treasury operations, the Company

primarily uses foreign exchange swaps and forward foreign exchange contracts to manage the currency and timing mismatches arising in its liquidity management

activities.

Commodity risk

Various commodity products are used in the Company’s manufacturing activities. Consequently it is exposed to volatility in future cash flows arising from changes

in commodity prices. To manage the price risk of commodities, the Company’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 time, the Company uses

instruments such as interest rate swaps, interest rate futures, bond futures or forward rate agreements to manage interest rate risk arising from the Company’s

balance sheet structure but does not designate such instruments as hedges.

Equity risk

The Company is exposed to fluctuations in the fair value of its warrant appreciation rights (WARs) issued under its management incentive plan. A WAR gives its

holder the right to receive cash equal to the market price of an equivalent listed warrant on the date of exercise. To eliminate such risk, the Company has

purchased cash-settled call options, indexed to the shares of the Company, which entitle the Company to receive amounts equivalent to its obligations under the

outstanding WARs.

Volume of derivative activity

In general, while the Company’s primary objective in its use of derivatives is to minimize exposures arising from its business, certain derivatives are designated

and qualify for hedge accounting treatment while others either are not designated or do not qualify for hedge accounting.

Foreign exchange and interest rate derivatives

The gross notional amounts of outstanding foreign exchange and interest rate derivatives (whether designated as hedges or not) were as follows:

Type of derivative

Total notional amounts at

($ in millions)

June 30, 2022

December 31, 2021

June 30, 2021

Foreign exchange contracts

14,470

11,276

9,309

Embedded foreign exchange derivatives

850

815

893

Cross-currency interest rate swaps

833

906

951

Interest rate contracts

3,049

3,541

3,553

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 and

aluminum. The following table shows the notional amounts of outstanding derivatives (whether designated as hedges or not), on a net basis, to reflect the

Company’s requirements for these commodities:

Type of derivative

Unit

Total notional amounts at

June 30, 2022

December 31, 2021

June 30, 2021

Copper swaps

metric tonnes

42,961

36,017

37,340

Silver swaps

ounces

2,844,285

2,842,533

2,306,804

Aluminum swaps

metric tonnes

7,350

7,125

7,325

Equity derivatives

At June 30, 2022, December 31, 2021, and June 30, 2021, the Company held 9 million, 9 million and 15 million cash -settled call options indexed to ABB Ltd

shares (conversion ratio 5:1) with a total fair value of $12 million, $29 million and $34 million, respectively.

Cash flow hedges

As noted above, the Company mainly uses forward foreign exchange contracts to manage the foreign exchange risk of its operations, commodity swaps to

manage its commodity risks and cash-settled call options to hedge its WAR liabilities. The Company applies cash flow hedge accounting in only limited cases. In

these cases, the effective portion of the changes in their fair value is recorded in “Accumulated other comprehensive loss” and subsequently reclassified into

earnings in the same line item and in the same period as the underlying hedged transaction affects earnings. For the six and three months ended June 30, 2022

and 2021, 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 “Interest and other finance expense”.

19 Q2 2022 FINANCIAL INFORMATION

The effect of derivative instruments, designated and qualifying as fair value hedges, on the Consolidated Income Statements was as follows:

Six months ended June 30,

Three months ended June 30,

($ in millions)

2022

2021

2022

2021

Gains (losses) recognized in Interest and other finance expense: 

Interest rate contracts

Designated as fair value hedges

(55)

(27)

(26)

(13)

Hedged item

56

28

27

13

Cross-currency interest rate swaps

Designated as fair value hedges

(94)

(25)

(49)

(2)

Hedged item

90

24

46

2

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 derivatives that are embedded within

certain binding sales or purchase contracts denominated in a currency other than the functional currency of the subsidiary and the counterparty.

The gains (losses) recognized in the Consolidated Income Statements on derivatives not designated in hedging relationships were as follows:

Type of derivative not

Gains (losses) recognized in income

designated as a hedge

Six months ended June 30,

Three months ended June 30,

($ in millions)

Location

2022

2021

2022

2021

Foreign exchange contracts

Total revenues

(119)

(10)

(123)

50

Total cost of sales

34

(24)

40

(20)

SG&A expenses

(1)

23

(1)

15

(8)

Non-order related research 

and development

1

(1)

–

–

Interest and other finance expense

(54)

(119)

(76)

(13)

Embedded foreign exchange

Total revenues

5

(13)

7

1

contracts

Total cost of sales

(2)

(2)

(3)

(1)

Commodity contracts

Total cost of sales

(51)

63

(86)

27

Other

Interest and other finance expense

3

1

2

1

Total

(160)

(106)

(224)

37

(1) SG&A expenses represent “Selling, general and administrative expenses”.

The fair values of derivatives included in the Consolidated Balance Sheets were as follows:

June 30, 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

5

Interest rate contracts

2

–

4

24

Cross-currency interest rate swaps

–

–

–

268

Cash-settled call options

12

–

–

–

Total

14

–

8

297

Derivatives not designated as hedging instruments:

Foreign exchange contracts

82

21

251

12

Commodity contracts

3

–

56

–

Interest rate contracts

4

–

5

–

Embedded foreign exchange derivatives

19

3

14

9

Total

108

24

326

21

Total fair value

122

24

334

318

20 Q2 2022 FINANCIAL INFORMATION

December 31, 2021

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

–

–

3

5

Interest rate contracts

9

20

–

–

Cross currency swaps

–

–

–

109

Cash-settled call options

29

–

–

–

Total

38

20

3

114

Derivatives not designated as hedging instruments:

Foreign exchange contracts

108

14

107

7

Commodity contracts

19

–

5

–

Interest rate contracts

1

–

2

–

Embedded foreign exchange derivatives

10

7

16

10

Total

138

21

130

17

Total fair value

176

41

133

131

Close-out netting agreements provide for the termination, valuation and net settlement of some or all outstanding transactions between two counterparties on the

occurrence of one or more pre-defined trigger events.

Although the Company is party to close-out netting agreements with most derivative counterparties, the fair values in the tables above and in the Consolidated

Balance Sheets at June 30, 2022, and December 31, 2021, have been presented on a gross basis.

The Company’s netting agreements and other similar arrangements allow net settlements under certain conditions. At June 30, 2022, and December 31, 2021,

information related to these offsetting arrangements was as follows:

($ in millions)

June 30, 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

124

(90)

–

–

34

Total

124

(90)

–

–

34

($ in millions)

June 30, 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

629

(90)

–

–

539

Total

629

(90)

–

–

539

($ in millions)

December 31, 2021

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

200

(104)

–

–

96

Total

200

(104)

–

–

96

($ in millions)

December 31, 2021

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

238

(104)

–

–

134

Total

238

(104)

–

–

134

21 Q2 2022 FINANCIAL INFORMATION

─

Note 7

Fair values

The Company uses fair value measurement principles to record certain financial assets and liabilities on a recurring basis and, 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 include foreign currency, commodity and interest rate

derivatives, as well as cash-settled call options and available-for-sale securities. Non-financial assets recorded at fair value on a non-recurring basis include

long-lived assets that are reduced to their estimated fair value due to impairments.

Fair value is the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the

measurement date. In determining fair value, the Company uses various valuation techniques including the market approach (using observable market data for

identical or similar assets and liabilities), the income approach (discounted cash flow models) and the cost approach (using costs a market participant would incur

to develop a comparable asset). Inputs used to determine the fair value of assets and liabilities are 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 unobservable. An observable input is based on market data obtained from independent sources,

while an unobservable input reflects the Company’s assumptions about 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 from 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 unobservable portion of the adjustment or

the unobservable input to the valuation model is significant, in which case the fair value measurement would be classified as Level 3. Assets and

liabilities valued or disclosed using Level 2 inputs include investments in certain funds, certain debt securities that are not actively traded, interest rate

swaps, cross-currency interest rate swaps, commodity swaps, cash-settled call options, forward foreign exchange contracts, foreign exchange swaps and

forward rate agreements, time deposits, as well as financing receivables and debt.

Level 3:

Valuation inputs are based on the Company’s assumptions of relevant market data (unobservable input). 

Whenever quoted prices involve bid-ask spreads, the Company ordinarily determines fair values based on mid-market quotes. However, for the purpose of

determining the fair value of cash-settled call options serving as hedges of the Company’s management incentive plan, bid prices are used.

When determining fair values based on quoted prices in an active market, the Company considers if the level of transaction activity for 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 another valuation technique, such as an income approach.

Recurring fair value measures

The fair values of financial assets and liabilities measured at fair value on a recurring basis were as follows:

June 30, 2022

($ in millions)

Level 1

Level 2

Level 3

Total fair value

Assets

Securities in “Marketable securities and short-term investments”:

Equity securities

416

416

Debt securities—U.S. government obligations

260

260

Debt securities—Other government obligations

122

122

Debt securities—Corporate

57

57

Derivative assets—current in “Other current assets”

122

122

Derivative assets—non-current in “Other non-current assets”

24

24

Total

260

741

–

1,001

Liabilities

Derivative liabilities—current in “Other current liabilities”

334

334

Derivative liabilities—non-current in “Other non-current liabilities”

318

318

Total

–

652

–

652

22 Q2 2022 FINANCIAL INFORMATION

December 31, 2021

($ in millions)

Level 1

Level 2

Level 3

Total fair value

Assets

Securities in “Marketable securities and short-term investments”:

Equity securities

587

587

Debt securities—U.S. government obligations

209

209

Debt securities—Corporate

74

74

Derivative assets—current in “Other current assets”

176

176

Derivative assets—non-current in “Other non-current assets”

41

41

Total

209

878

–

1,087

Liabilities

Derivative liabilities—current in “Other current liabilities”

133

133

Derivative liabilities—non-current in “Other non-current liabilities”

131

131

Total

–

264

–

264

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” and “Other non-current assets”:

If quoted market prices in active markets for identical

assets are available, these are considered Level 1 inputs; however, when markets are not active, these inputs are considered Level 2. If such quoted

market prices are not available, fair value is determined using market prices for similar assets or present value techniques, applying an appropriate risk-

free interest rate adjusted for non-performance risk. The inputs used in present value techniques are observable and fall into the Level 2 category. 

●

 Derivatives

: The fair values of derivative instruments are determined using quoted prices of identical instruments from an active market, if available

(Level 1 inputs). If quoted prices are not available, price quotes for similar instruments, appropriately adjusted, or present value techniques, based on

available market data, or option pricing models are used. Cash-settled call options hedging the Company’s WAR liability are valued based on bid prices

of the equivalent listed warrant. The fair values obtained using price quotes for similar instruments or valuation techniques represent a Level 2 input

unless significant unobservable inputs are used. 

Non-recurring fair value measures 

The Company elects to record private equity investments without readily determinable fair values at cost, less impairment, adjusted by observable price changes.

The Company reassesses at each reporting period whether these investments continue to qualify for this treatment. During the six months ended June 30, 2022

and 2021, the Company recognized, in Other income (expense), net fair value gains of $30 million and $109 million, respectively, related to certain of its private

equity investments based on observable market price changes for an identical or similar investment of the same issuer of which net gains of $1 million and

$99 million were recognized in the three months ended June 30, 2022 and 2021, respectively. The fair values were determined using level 2 inputs. The carrying

values of investments, carried at fair value on a non-recurring basis, at June 30, 2022, and December 31, 2021, totaled $40 million and $146 million, respectively.

Apart from the transactions above, there were no additional significant non-recurring fair value measurements during the six months ended June 30, 2022 and

2021.

Disclosure about financial instruments carried on a cost basis

The fair values of financial instruments carried on a cost basis were as follows:

June 30, 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

1,428

1,428

1,428

Time deposits

984

984

984

Restricted cash

23

23

23

Marketable securities and short-term investments

(excluding securities):

Time deposits

90

90

90

Restricted cash, non-current

301

301

301

Liabilities

Short-term debt and current maturities of long-term debt

(excluding finance lease obligations)

2,798

769

2,029

2,798

Long-term debt (excluding finance lease obligations)

4,913

4,797

39

4,836

23 Q2 2022 FINANCIAL INFORMATION

December 31, 2021

($ 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

2,422

2,422

2,422

Time deposits

1,737

1,737

1,737

Restricted cash

30

30

30

Marketable securities and short-term investments

(excluding securities):

Time deposits

300

300

300

Restricted cash, non-current

300

300

300

Liabilities

Short-term debt and current maturities of long-term debt

(excluding finance lease obligations)

1,357

1,288

69

1,357

Long-term debt (excluding finance lease obligations)

4,043

4,234

58

4,292

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, current and non-current, 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)

June 30, 2022

December 31, 2021

June 30, 2021

Contract assets

965

990

1,087

Contract liabilities

2,141

1,894

1,846

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. 

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, primarily for long-term projects. Contract liabilities are reduced as work is performed and as revenues are recognized.

The significant changes in the Contract assets and Contract liabilities balances were as follows:

Six months ended June 30,

2022

2021

Contract

Contract

Contract

Contract

($ in millions)

assets

liabilities

assets

liabilities

Revenue recognized, which was included in the Contract liabilities balance at Jan 1, 2022/2021

(763)

(818)

Additions to Contract liabilities - excluding amounts recognized as revenue during the period

1,102

785

Receivables recognized that were included in the Contract asset balance at Jan 1, 2022/2021

(423)

(411)

At June 30, 2022, the Company had unsatisfied performance obligations totaling $19,477 million and, of this amount, the Company expects to fulfill approximately

56 percent of the obligations in 2022, approximately 33 percent of the obligations in 2023 and the balance thereafter.

24 Q2 2022 FINANCIAL INFORMATION

─

Note 9

Debt

The Company’s total debt at June 30, 2022, and December 31, 2021, amounted to $7,916 million and $5,561 million, respectively.

Short-term debt and current maturities of long-term debt 

The Company’s “Short-term debt and current maturities of long-term debt” consisted of the following:

($ in millions)

June 30, 2022

December 31, 2021

Short-term debt

2,058

78

Current maturities of long-term debt

772

1,306

Total

2,830

1,384

Short-term debt primarily represented issued commercial paper and short-term bank borrowings from various banks. At June 30, 2022, $1,755 million was

outstanding under the $2 billion Euro-commercial paper program and $210 million was outstanding under the $2 billion commercial paper program in the United

States. At December 31, 2021, no amount was outstanding under either of these programs.

On May 9, 2022, the Company repaid on maturity its USD 1,250 million 2.875% Notes.

Long-term debt

The Company’s long-term debt at June 30, 2022, and December 31, 2021, amounted to $5,086 million and $4,177 million, respectively. 

Outstanding bonds (including maturities within the next 12 months) were as follows: 

June 30, 2022

December 31, 2021

(in millions)

Nominal outstanding

 Carrying value

(1)

Nominal outstanding

 Carrying value

(1)

Bonds:

2.875% USD Notes, due 2022 

USD

1,250

$

1,258

0.625% EUR Instruments, due 2023

EUR

700

$

726

EUR

700

$

800

0% CHF Bonds, due 2023

CHF

275

$

286

0.625% EUR Instruments, due 2024

EUR

700

$

717

0% EUR Instruments, due 2024

EUR

500

$

524

0.75% EUR Instruments, due 2024

EUR

750

$

765

EUR

750

$

860

0.3% CHF Bonds, due 2024

CHF

280

$

292

CHF

280

$

306

0.75% CHF Bonds, due 2027

CHF

425

$

443

3.8% USD Notes, due 2028

(2)

USD

383

$

381

USD

383

$

381

1.0% CHF Bonds, due 2029

CHF

170

$

177

CHF

170

$

186

0% EUR Notes, due 2030

EUR

800

$

700

EUR

800

$

862

4.375% USD Notes, due 2042

(2)

USD

609

$

590

USD

609

$

589

Total

$

5,601

$

5,242

(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 March 2022, the Company issued the following CHF bonds : (i) CHF 275 million of zero interest bonds, due 2023, and (ii) CHF 425 million of 0.75 percent bonds,

due 2027 with interest payable annually in arrears. The aggregate net proceeds of these CHF bond issues, after discount and fees, amounted to CHF 699 million

(equivalent to approximately $751 million on date of issuance).

Also in March 2022, the Company issued the following EUR notes, both due in 2024, (i) EUR 700 million, paying interest annually in arrears at a fixed rate of

0.625 percent per annum, and (ii) EUR 500 million floating rate notes, paying interest quarterly in arrears at a variable rate of 70 basis points above the 3-month

EURIBOR. In relation to these EUR Notes, the Company recorded net proceeds (after the respective discount and premium, as well as fees) of EUR 1,203 million

(equivalent to $1,335 million on the date of issuance).

In line with the Company’s policy of reducing its currency and interest rate exposures, interest rate swaps have been used to modify the characteristics of the

CHF 425 million Bonds, due 2027, and the EUR 700 million Notes, due 2024. After considering the impact of these interest rate swaps, the CHF 425 million Bonds

and EUR 700 million Notes, effectively become floating rate obligations.

25 Q2 2022 FINANCIAL INFORMATION

─

Note 10

Commitments and contingencies

Contingencies—Regulatory, Compliance and Legal

Regulatory

As a result of an internal investigation, the Company self-reported to the Securities and Exchange Commission (SEC) and the Department of Justice (DoJ) in the

United States as well as to the Serious Fraud Office (SFO) in the United Kingdom concerning certain of its past dealings with Unaoil and its subsidiaries, including

alleged improper payments made by these entities to third parties. In May 2020, the SFO closed its investigation, which it originally announced in February 2017,

as the case did not meet the relevant test for prosecution. The Company continues to cooperate with the U.S. authorities as requested. At this time, it is not

possible for the Company to make an informed judgment about the outcome of this matter.

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. The Company paid $104 million to Eskom in December 2020 as

part of a full and final settlement with Eskom and the Special Investigating Unit 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 continues to cooperate fully with the authorities in their

review of the Kusile project and is in discussions with them regarding a coordinated resolution. Although the Company believes that there could be an unfavorable

outcome in one or more of these ongoing reviews, at this time it is not possible for the Company to make an informed judgment about the possible financial impact.

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 June 30, 2022, and December 31, 2021, the Company had aggregate liabilities of $82 million and $104 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 recognized 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 be adverse outcomes beyond the amounts accrued.

Guarantees 

General

The following table provides quantitative data regarding the Company’s third-party guarantees. The maximum potential payments represent a “worst-case

scenario”, and do not reflect management’s expected outcomes.

Maximum potential payments

($ in millions)

June 30, 2022

December 31, 2021

Performance guarantees

4,036

4,540

Financial guarantees

55

52

Indemnification guarantees

(1)

130

136

Total

(2)

4,221

4,728

(1) Certain indemnifications provided to Hitachi in connection with the divestment of Power Grids are without limit.

(2) 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 liabilities at June 30, 2022, and December 31, 2021, amounted to

$142 million and $156 million, respectively, the majority of which is included in discontinued operations.

The Company is party to various guarantees providing financial or performance assurances to certain third parties. These guarantees, which have various

maturities up to 2035, mainly consist of performance guarantees whereby (i) the Company guarantees the performance of a third party’s product or service

according to the terms of a contract and (ii) as member of a consortium/joint-venture that includes third parties, the Company guarantees not only its own

performance but also the work of third parties. Such guarantees may include guarantees that a project will be completed within a specified time. If the third party

does not fulfill the obligation, the Company will compensate the guaranteed party in cash or in kind. The original maturity dates for the majority of these

performance guarantees range from one to ten years.

In conjunction with the divestment of the high-voltage cable and cables accessories businesses in 2017, the Company has entered into various performance

guarantees with other parties with respect to certain liabilities of the divested business. At June 30, 2022, and December 31, 2021, the maximum potential payable

under these guarantees amounts to $828 million and $911 million, respectively, and these guarantees have various original maturities ranging from five to ten

years.

The Company retained obligations for financial, performance and indemnification guarantees related to the Power Grids business sold on July 1, 2020 (see Note 3

for details). The performance and financial guarantees have been indemnified by Hitachi, at the same proportion of its ownership in Hitachi Energy Ltd

(80.1 percent). These guarantees, which have various maturities up to 2035, primarily consist of bank guarantees, standby letters of credit, business performance

guarantees and other trade-related guarantees, the majority of which have original maturity dates ranging from one to ten years. The maximum amount payable

under the guarantees at June 30, 2022, and December 31, 2021, is approximately $2.8 billion and $3.2 billion, respectively, and the carrying amounts of liabilities

(recorded in discontinued operations) at June 30, 2022, and December 31, 2021, amounted to $130 million and $136 million, respectively.

26 Q2 2022 FINANCIAL INFORMATION

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 performance bonds in the event that the Company

does not fulfill its contractual obligations. The Company would then have an obligation to reimburse the financial institution for amounts paid under the performance

bonds. At both June 30, 2022, and December 31, 2021, the total outstanding performance bonds aggregated to $3.1 billion, of each of these amounts, $0.1 billion

relates to discontinued operations. There have been no significant amounts reimbursed to financial institutions under these types of arrangements in the six and

three months ended June 30, 2022 and 2021.

Product and order-related contingencies

The Company calculates its provision for product warranties based on historical claims experience and specific review of certain contracts. The reconciliation of the

“Provisions for warranties”, including guarantees of product performance, was as follows:

($ in millions)

2022

2021

Balance at January 1,

1,005

1,035

Net change in warranties due to acquisitions, divestments and liabilities held for sale

–

1

Claims paid in cash or in kind

(82)

(127)

Net increase in provision for changes in estimates, warranties issued and warranties expired

103

122

Exchange rate differences

(54)

(19)

Balance at June 30,

972

1,012

─

Note 11

Employee benefits

The Company operates defined benefit pension plans, defined contribution pension plans, and termination indemnity plans, in accordance with local regulations

and practices. 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 following:

($ in millions)

Defined pension benefits

Other postretirement

Switzerland

International

benefits

Six months ended June 30,

2022

2021

2022

2021

2022

2021

Operational pension cost:

Service cost

27

30

17

22

–

–

Operational pension cost

27

30

17

22

–

–

Non-operational pension cost (credit):

Interest cost

1

(2)

43

37

1

1

Expected return on plan assets

(58)

(58)

(77)

(91)

–

–

Amortization of prior service cost (credit)

(4)

(5)

(1)

(1)

(1)

(1)

Amortization of net actuarial loss

–

–

30

35

(2)

(1)

Curtailments, settlements and special termination benefits

–

–

–

(2)

–

–

Non-operational pension cost (credit)

(61)

(65)

(5)

(22)

(2)

(1)

Net periodic benefit cost (credit)

(34)

(35)

12

–

(2)

(1)

($ in millions)

Defined pension benefits

Other postretirement

Switzerland

International

benefits

Three months ended June 30,

2022

2021

2022

2021

2022

2021

Operational pension cost:

Service cost

13

15

8

12

–

–

Operational pension cost

13

15

8

12

–

–

Non-operational pension cost (credit):

Interest cost

–

(1)

21

19

1

1

Expected return on plan assets

(28)

(29)

(36)

(44)

–

–

Amortization of prior service cost (credit)

(2)

(3)

(1)

(1)

–

(1)

Amortization of net actuarial loss

–

–

15

18

(2)

(1)

Curtailments, settlements and special termination benefits

–

–

–

4

–

–

Non-operational pension cost (credit)

(30)

(33)

(1)

(4)

(1)

(1)

Net periodic benefit cost (credit)

(17)

(18)

7

8

(1)

(1)

The components of net periodic benefit cost other than the service cost component are included in the line “Non-operational pension (cost) credit” in the income

statement.

27 Q2 2022 FINANCIAL INFORMATION

Employer contributions were as follows:

($ in millions)

Defined pension benefits

Other postretirement

Switzerland

International

benefits

Six months ended June 30,

2022

2021

2022

2021

2022

2021

Total contributions to defined benefit pension and

other postretirement benefit plans

31

31

19

13

4

3

Of which, discretionary contributions to defined benefit

 pension plans

–

–

–

(9)

–

–

($ in millions)

Defined pension benefits

Other postretirement

Switzerland

International

benefits

Three months ended June 30,

2022

2021

2022

2021

2022

2021

Total contributions to defined benefit pension and 

other postretirement benefit plans

15

16

9

16

1

2

Of which, discretionary contributions to defined benefit

pension plans

–

–

–

–

–

–

The Company expects to make contributions totaling approximately $77 million and $6 million to its defined pension plans and other postretirement benefit plans,

respectively, for the full year 2022.

─

Note 12

Stockholder's equity

At the Annual General Meeting of Shareholders (AGM) on March 24, 2022, shareholders approved the proposal of the Board of Directors to distribute 0.82 Swiss

francs per share to shareholders. The declared dividend amounted to $1,700 million, with the Company disburs ing a portion in March and the remaining amounts

in April.

In March 2022, the Company completed the share buyback program that was launched in April 2021. This program was executed on a second trading line on the

SIX Swiss Exchange. Through this program, the Company purchased a total of 90 million shares for approximately $3.1 billion, of which 31 million shares were

purchased in the first quarter of 2022 (resulting in an increase in Treasury stock of $1,089 million). At the 2022 AGM, shareholders approved the cancellation of

88 million shares which had been purchased under the share buyback programs launched in July 2020 and April 2021. The cancellation was completed in the

second quarter of 2022, resulting in a decrease in Treasury stock of $2,876 million and a corresponding total decrease in Capital stock, Additional paid-in capital

and Retained Earnings.

Also in March 2022, the Company announced a new share buyback program of up to $3 billion. This program, which was launched in April 2022, is being executed

on a second trading line on the SIX Swiss Exchange and is planned to run until the Company’s 2023 AGM. Through this program, the Company purchased, in the

second quarter of 2022, approximately 34 million shares, resulting in an increase in Treasury stock of $1,016 million. At the 2023 AGM, the Company intends to

request shareholder approval to cancel the shares purchased through this new program as well as those shares purchased under the program launched in April

2021 that were not proposed for cancellation at the 2022 AGM.

In addition to the share buyback programs, the Company purchased 17 million of its own shares on the open market in the first half of 2022, mainly for use in

connection with its employee share plans, resulting in an increase in Treasury stock of $588 million.

During the first six months of 2022, the Company delivered, out of treasury stock, 16 million shares in connection with its Management Incentive Plan.

28 Q2 2022 FINANCIAL INFORMATION

─

Note 13

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 outstanding options and shares granted subject to certain

conditions under the Company’s share-based payment arrangements.

Basic earnings per share

Six months ended June 30,

Three months ended June 30,

($ in millions, except per share data in $)

2022

2021

2022

2021

Amounts attributable to ABB shareholders:

Income from continuing operations, net of tax

1,003

1,290

388

760

Loss from discontinued operations, net of tax

(20)

(36)

(9)

(8)

Net income

983

1,254

379

752

Weighted-average number of shares outstanding (in millions)

1,922

2,015

1,909

2,016

Basic earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax

0.52

0.64

0.20

0.38

Loss from discontinued operations, net of tax

(0.01)

(0.02)

0.00

0.00

Net income

0.51

0.62

0.20

0.37

Diluted earnings per share

Six months ended June 30,

Three months ended June 30,

($ in millions, except per share data in $)

2022

2021

2022

2021

Amounts attributable to ABB shareholders:

Income from continuing operations, net of tax

1,003

1,290

388

760

Loss from discontinued operations, net of tax

(20)

(36)

(9)

(8)

Net income

983

1,254

379

752

Weighted-average number of shares outstanding (in millions)

1,922

2,015

1,909

2,016

Effect of dilutive securities:

Call options and shares

13

18

9

15

Adjusted weighted-average number of shares outstanding (in millions)

1,935

2,033

1,918

2,031

Diluted earnings per share attributable to ABB shareholders:

Income from continuing operations, net of tax

0.52

0.63

0.20

0.37

Loss from discontinued operations, net of tax

(0.01)

(0.02)

0.00

0.00

Net income

0.51

0.62

0.20

0.37

29 Q2 2022 FINANCIAL INFORMATION

─

Note 14

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 tax:

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, 2021

(2,460)

17

(1,556)

(3)

(4,002)

Other comprehensive (loss) income:

Other comprehensive (loss) income

before reclassifications

(161)

(7)

34

14

(120)

Amounts reclassified from OCI

–

(1)

37

(14)

22

Total other comprehensive (loss) income

(161)

(8)

71

–

(98)

Less:

Amounts attributable to

noncontrolling interests

5

–

–

–

5

Balance at June 30, 2021

(1)

(2,625)

9

(1,485)

(3)

(4,104)

Unrealized gains

Pension and

Foreign currency

(losses) on

other

Derivative

translation

available-for-sale

postretirement

instruments

($ in millions)

adjustments

securities

plan adjustments

and hedges

Total OCI

Balance at January 1, 2022

(2,993)

2

(1,089)

(8)

(4,088)

Other comprehensive (loss) income:

Other comprehensive (loss) income

before reclassifications

(419)

(17)

91

(12)

(357)

Amounts reclassified from OCI

5

–

15

14

34

Total other comprehensive (loss) income

(414)

(17)

106

2

(323)

Less:

Amounts attributable to

noncontrolling interests

(22)

–

–

–

(22)

Balance at June 30, 2022

(3,385)

(15)

(983)

(6)

(4,389)

(1) Due to rounding, numbers presented may not add to the totals provided.

The following table reflects amounts reclassified out of OCI in respect of Pension and other postretirement plan adjustments:

Six months ended

Three months ended

($ in millions)

Location of (gains) losses

June 30,

June 30,

Details about OCI components

reclassified from OCI

2022

2021

2022

2021

Foreign currency translation adjustments:

Net loss on complete or substantially complete

liquidations of foreign subsidiaries

Other income (expense), net

5

–

–

–

Pension and other postretirement plan adjustments:

Amortization of prior service cost (credit)

Non-operational pension (cost) credit

(1)

(6)

(7)

(3)

(5)

Amortization of net actuarial loss

Non-operational pension (cost) credit

(1)

28

34

13

23

Net gain (loss) from settlements and curtailments

Non-operational pension (cost) credit

(1)

–

(2)

–

(2)

Total before tax

22

25

10

16

Tax

Income tax expense

(7)

12

(3)

(4)

Amounts reclassified from OCI

15

37

7

12

The amounts in respect of Unrealized gains (losses) on available-for-sale securities and Derivative instruments and hedges were not significant for the six and

three months ended June 30, 2022 and 2021.

30 Q2 2022 FINANCIAL INFORMATION

─

Note 15

Restructuring and related expenses

Other restructuring-related activities

In the six and three months ended June 30, 2022 and 2021, the Company executed various other restructuring -related activities and incurred the following

expenses: 

Six months ended June 30,

Three months ended June 30,

($ in millions)

2022

2021

2022

2021

Employee severance costs

43

33

35

13

Estimated contract settlement, loss order and other costs

202

12

195

3

Inventory and long-lived asset impairments

5

2

1

2

Total

250

47

231

18

Expenses associated with these activities are recorded in the following line items in the Consolidated Income Statements:

Six months ended June 30,

Three months ended June 30,

($ in millions)

2022

2021

2022

2021

Total cost of sales

8

24

4

10

Selling, general and administrative expenses

28

5

24

3

Non-order related research and development expenses

2

–

2

–

Other income (expense), net

212

18

201

5

Total

250

47

231

18

During the second quarter of 2022, the Company completed a plan to fully exit its full train retrofit business by transferring the remaining contracts to a

third party. The Company recorded $195 million of restructuring expenses in connection with this business exit primarily for contract settlement costs.

Prior to exiting this business, the business was reported as part of the Company’s non-core business activities within Corporate and Other.

At June 30, 2022, $332 million was recorded for other restructuring -related liabilities primarily in Other provisions and Other current liabilities, while at

December 31, 2021, $212 million was recorded primarily in Other provisions.

─

Note 16

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 included in Corporate and Other. 

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 electric vehicle charging infrastructure, renewable

power solutions, modular substation packages, distribution automation products, switchboard and panelboards, switchgear, UPS solutions, circuit

breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems and intelligent home and building

solutions, designed to integrate and automate lighting, heating, ventilation, security and data communication networks . The products and services are

delivered through seven operating Divisions: Distribution Solutions, Smart Power, Smart Buildings, E-Mobility, Installation Products, Power Conversion

and Electrification Service.

●

 Motion:

 designs, manufactures, and sells drives, motors, generators and traction converters that are driving the low-carbon future for industries, cities,

infrastructure and transportation. These products, digital technology and related services enable industrial customers to increase energy efficiency,

improve safety and reliability, and achieve precise control of their processes. Building on over 130 years of cumulative experience in electric

powertrains, the Business Area combines domain expertise and technology to deliver the optimum solution for a wide range of applications in all

industrial segments. In addition, the Business Area, 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, as well as, prior to its sale in November 2021, the Mechanical Power Transmission Division.

31 Q2 2022 FINANCIAL INFORMATION

●

 Process Automation:

 develops and sells a broad range of industry-specific, integrated automation, electrification and digital systems and solutions, as

well as digital solutions, lifecycle services, advanced industrial analytics and artificial intelligence applications and suites for the process, marine and

hybrid industries. Products and solutions include control technologies, advanced process control software and manufacturing execution systems,

sensing, measurement and analytical instrumentation, marine propulsion systems and turbochargers. In addition, the Business Area offers a

comprehensive range of services ranging from repair to advanced services such as remote monitoring, preventive maintenance, asset performance

management, emission monitoring and cybersecurity services. The products, systems and services are delivered through five operating Divisions:

Energy Industries, Process Industries, Marine & Ports, Turbocharging, and Measurement & Analytics .

●

 Robotics & Discrete Automation:

 delivers its products, solutions and services through two operating Divisions: Robotics and Machine Automation.

Robotics includes industrial robots, software, robotic solutions, field services, spare parts, and digital services. Machine Automation specializes in

solutions based on its programmable logic controllers (PLC), industrial PCs (IPC), servo motion, transport systems and machine vision. Both Divisions

offer engineering and simulation software as well as a comprehensive range of digital solutions.

Corporate and Other:

 includes headquarter costs, the Company’s corporate real estate activities, Corporate Treasury Operations, historical operating activities of

certain divested businesses and other non-core operating activities.

The primary measure of profitability on which the operating segments are evaluated is Operational EBITA, which represents income from operations excluding:

●

 amortization expense on intangibles arising upon acquisition (acquisition -related amortization), 

●

 restructuring, related and implementation costs,

●

 changes in the amount recorded for obligations related to divested businesses occurring after the divestment date (changes in obligations related to

divested businesses),

●

 changes in estimates relating to opening balance sheets of acquired businesses (changes in pre-acquisition estimates), 

●

 gains and losses from sale of businesses (including fair value adjustment on assets and liabilities held for sale), 

●

 acquisition- and divestment-related expenses and integration costs,

●

 other income/expense relating to the Power Grids joint venture,

●

 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, 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 the 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 six and three months ended June 30, 2022 and 2021, as well as total assets at

June 30, 2022, and December 31, 2021.

Six months ended June 30, 2022

Robotics &

Process

Discrete

Corporate

($ in millions)

Electrification

Motion

Automation

Automation

and Other

Total

Geographical markets 

Europe 

2,228

953

1,131

712

2

5,026

The Americas 

2,531

1,029

767

238

1

4,566

of which: United States

1,849

853

460

166

–

3,328

Asia, Middle East and Africa 

1,993

995

1,119

509

8

4,624

of which: China

1,007

565

309

382

1

2,263

6,752

2,977

3,017

1,459

11

14,216

Product type 

Products

5,920

2,552

681

858

6

10,017

Systems

407

–

961

372

5

1,745

Services and other

425

425

1,375

229

–

2,454

6,752

2,977

3,017

1,459

11

14,216

Third-party revenues

6,752

2,977

3,017

1,459

11

14,216

Intersegment revenues

106

221

18

3

(348)

–

Total revenues

(2)

6,858

3,198

3,035

1,462

(337)

14,216

32 Q2 2022 FINANCIAL INFORMATION

Six months ended June 30, 2021

Robotics &

Process

Discrete

Corporate

($ in millions)

Electrification

Motion

Automation

Automation

and Other

Total

Geographical markets 

Europe 

2,266

1,020

1,142

814

6

5,248

The Americas 

2,221

1,223

658

224

1

4,327

of which: United States

1,655

1,029

363

161

–

3,208

Asia, Middle East and Africa 

1,950

1,047

1,125

642

11

4,775

of which: China

1,053

577

376

483

–

2,489

6,437

3,290

2,925

1,680

18

14,350

Product type 

Products

5,557

2,845

749

1,058

10

10,219

Systems

450

–

811

386

8

1,655

Services and other

430

445

1,365

236

–

2,476

6,437

3,290

2,925

1,680

18

14,350

Third-party revenues

6,437

3,290

2,925

1,680

18

14,350

Intersegment revenues

(1)

109

227

22

5

(363)

–

Total revenues

(2)

6,546

3,517

2,947

1,685

(345)

14,350

Three months ended June 30, 2022

Robotics &

Process

Discrete

Corporate

($ in millions)

Electrification

Motion

Automation

Automation

and Other

Total

Geographical markets 

Europe 

1,116

487

546

358

1

2,508

The Americas 

1,330

537

399

130

1

2,397

of which: United States

967

446

239

94

–

1,746

Asia, Middle East and Africa 

1,029

496

573

242

6

2,346

of which: China

542

278

159

185

–

1,163

3,475

1,520

1,518

730

8

7,251

Product type 

Products

3,093

1,304

335

418

2

5,152

Systems

161

–

494

200

6

861

Services and other

221

216

689

112

–

1,238

3,475

1,520

1,518

730

8

7,251

Third-party revenues

3,475

1,520

1,518

730

8

7,251

Intersegment revenues

56

106

11

2

(175)

–

Total revenues

3,531

1,626

1,529

732

(167)

7,251

Three months ended June 30, 2021

Robotics &

Process

Discrete

Corporate

($ in millions)

Electrification

Motion

Automation

Automation

and Other

Total

Geographical markets 

Europe 

1,166

551

579

396

5

2,697

The Americas 

1,163

635

368

118

–

2,284

of which: United States

855

535

200

86

–

1,676

Asia, Middle East and Africa 

1,021

544

583

316

4

2,468

of which: China

565

313

201

234

–

1,313

3,350

1,730

1,530

830

9

7,449

Product type 

Products

2,937

1,496

428

532

3

5,396

Systems

181

–

402

182

6

771

Services and other

232

234

700

116

–

1,282

3,350

1,730

1,530

830

9

7,449

Third-party revenues

3,350

1,730

1,530

830

9

7,449

Intersegment revenues

56

120

10

2

(188)

–

Total revenues

3,406

1,850

1,540

832

(179)

7,449

(1) Due to rounding, numbers presented may not add to the totals provided.

33 Q2 2022 FINANCIAL INFORMATION

Six months ended 

Three months ended

June 30,

June 30,

($ in millions)

2022

2021

2022

2021

Operational EBITA:

Electrification

1,109

1,103

599

592

Motion

540

614

266

325

Process Automation

420

347

224

192

Robotics & Discrete Automation

109

201

60

96

Corporate and Other

‒

Non-core and divested businesses

18

(29)

12

(7)

‒ Corporate costs and Other Intersegment elimination

(63)

(164)

(25)

(85)

Total

2,133

2,072

1,136

1,113

Acquisition-related amortization

(119)

(129)

(59)

(64)

Restructuring, related and implementation costs

(1)

(280)

(53)

(264)

(18)

Changes in obligations related to divested businesses

17

(6)

3

(4)

Changes in pre-acquisition estimates

1

(8)

2

(2)

Gains and losses from sale of businesses

(4)

9

(4)

12

Acquisition- and divestment-related expenses and integration costs

(109)

(30)

(50)

(20)

Other income/expense relating to the Power Grids joint venture

(37)

(19)

(2)

(2)

Foreign exchange/commodity timing differences in income from operations:

Unrealized gains and losses on derivatives (foreign exchange, 

commodities, embedded derivatives)

(100)

(56)

(118)

(8)

Realized gains and losses on derivatives where the underlying hedged 

transaction has not yet been realized

(35)

9

(33)

7

Unrealized foreign exchange movements on receivables/payables (and

related assets/liabilities)

40

28

41

(6)

Certain other non-operational items:

Regulatory, compliance and legal costs

(4)

(2)

(5)

–

Business transformation costs

(2)

(66)

(39)

(40)

(19)

Certain other fair value changes, including asset impairments

34

114

–

96

Other non-operational items

(27)

1

(20)

9

Income from operations

1,444

1,891

587

1,094

Interest and dividend income

33

26

20

15

Interest and other finance expense

(62)

(91)

(40)

(36)

Non-operational pension (cost) credit

68

88

32

38

Income from continuing operations before taxes

1,483

1,914

599

1,111

(1) Includes impairment of certain assets.

(2) Amount includes ABB Way process transformation costs of $64 million and $33 million for six months ended June 30, 2022 and 2021, respectively, and $39 million and $18 million for

the three months ended June 30, 2022 and 2021, respectively.

Total assets

(1)

($ in millions)

June 30, 2022

December 31, 2021

Electrification

13,684

12,831

Motion

6,247

5,936

Process Automation

4,929

5,009

Robotics & Discrete Automation

4,732

4,860

Corporate and Other

(2)

9,306

11,624

Consolidated

38,898

40,260

(1) Total assets are after intersegment eliminations and therefore reflect third-party assets only.

(2) At June 30, 2022, and December 31, 2021, respectively, Corporate and Other includes $122 million and $136 million of assets in the Power Grids business which is reported as

discontinued operations (see Note 3). In addition, at June 30, 2022, and December 31, 2021, Corporate and Other includes $1,551 million and $1,609 million, respectively, related to

the equity investment in Hitachi Energy Ltd (see Note 4).

34 Q2 2022 FINANCIAL INFORMATION

35 Q2 2022 FINANCIAL INFORMATION

—

Supplemental Reconciliations and Definitions

The following reconciliations and definitions include measures which ABB uses to supplement its Consolidated Financial Information (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 accordance with U.S. GAAP. Therefore

these measures should not be viewed in isolation but considered together with the Consolidated Financial Information (unaudited) prepared in accordance

with U.S. GAAP as of and for the six and three mo nths ended June 30, 2022.

Comparable growth rates 

Growth rates for certain key figures may be presented and discussed on a “comparable” basis. The comparable growth rate measures growth on a constant

currency basis. Since we are a global company, the comparability of our operating results reported in U.S. dollars is 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 calculated as follows: where the results of any business

acquired or divested have not been consolidated and reported for the entire duration of both the current and comparable periods, the reported key figures of such

business are adjusted to exclude the relevant key figures of any corresponding quarters which are not comparable when computing the comparable growth rate.

Certain portfolio changes which do not qualify as divestments under U.S. GAAP have been treated in a similar manner to divestments. Changes in our portfolio

where we have exited certain business activities or customer markets are adjusted as if the relevant business was divested in the period when the decision to

cease business activities was taken. We do not adjust 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 growth rate.

Comparable growth rate reconciliation by Business Area

Q2 2022 compared to Q2 2021

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 

9%

7%

0%

16%

4%

6%

0%

10%

Motion

7%

7%

12%

26%

-12%

6%

9%

3%

Process Automation

17%

8%

0%

25%

-1%

8%

0%

7%

Robotics & Discrete Automation

15%

9%

-1%

23%

-12%

7%

0%

-5%

ABB Group

10%

7%

3%

20%

-3%

7%

2%

6%

H1 2022 compared to H1 2021

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 

17%

5%

0%

22%

5%

5%

0%

10%

Motion

11%

6%

12%

29%

-9%

5%

10%

6%

Process Automation

9%

6%

0%

15%

3%

6%

0%

9%

Robotics & Discrete Automation

34%

8%

-2%

40%

-13%

5%

-1%

-9%

ABB Group

15%

6%

3%

24%

-1%

6%

2%

7%

36 Q2 2022 FINANCIAL INFORMATION

Regional comparable growth rate reconciliation

Regional comparable growth rate reconciliation for ABB Group - Quarter

Q2 2022 compared to Q2 2021

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%

15%

0%

15%

-7%

14%

0%

7%

The Americas

23%

1%

9%

33%

5%

1%

8%

14%

of which: United States

21%

0%

11%

32%

4%

0%

10%

14%

Asia, Middle East and Africa

9%

6%

0%

15%

-5%

5%

0%

0%

of which: China

7%

3%

0%

10%

-11%

2%

0%

-9%

ABB Group

10%

7%

3%

20%

-3%

7%

2%

6%

Regional comparable growth rate reconciliation by Business Area - Quarter

Q2 2022 compared to Q2 2021

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

-4%

14%

0%

10%

-4%

14%

0%

10%

The Americas

29%

1%

0%

30%

14%

1%

0%

15%

of which: United States

31%

0%

0%

31%

13%

0%

0%

13%

Asia, Middle East and Africa

1%

6%

0%

7%

1%

5%

0%

6%

of which: China

-7%

2%

0%

-5%

-4%

3%

0%

-1%

Electrification

9%

7%

0%

16%

4%

6%

0%

10%

Q2 2022 compared to Q2 2021

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%

16%

0%

17%

-12%

14%

0%

2%

The Americas

3%

2%

34%

39%

-15%

1%

28%

14%

of which: United States

7%

1%

42%

50%

-16%

0%

31%

15%

Asia, Middle East and Africa

17%

5%

2%

24%

-10%

4%

1%

-5%

of which: China

5%

2%

2%

9%

-13%

2%

1%

-10%

Motion

7%

7%

12%

26%

-12%

6%

9%

3%

Q2 2022 compared to Q2 2021

Order growth rate

Revenue growth rate

US$

Foreign

US$

Foreign

(as

exchange

Portfolio

(as

exchange

Portfolio

Region

reported)

impact

changes

Comparable

reported)

impact

changes

Comparable

Europe

8%

14%

0%

22%

-6%

12%

0%

6%

The Americas

53%

2%

0%

55%

9%

3%

0%

12%

of which: United States

26%

1%

0%

27%

20%

1%

0%

21%

Asia, Middle East and Africa

4%

7%

0%

11%

-2%

7%

0%

5%

of which: China

21%

3%

0%

24%

-21%

3%

0%

-18%

Process Automation

17%

8%

0%

25%

-1%

8%

0%

7%

Q2 2022 compared to Q2 2021

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

9%

15%

-2%

22%

-10%

13%

-1%

2%

The Americas

-3%

0%

0%

-3%

9%

1%

0%

10%

of which: United States

-3%

0%

0%

-3%

10%

0%

0%

10%

Asia, Middle East and Africa

30%

6%

0%

36%

-23%

4%

0%

-19%

of which: China

40%

3%

0%

43%

-21%

2%

0%

-19%

Robotics & Discrete Automation

15%

9%

-1%

23%

-12%

7%

0%

-5%

37 Q2 2022 FINANCIAL INFORMATION

Regional comparable growth rate reconciliation for ABB Group – Year to date

H1 2022 compared to H1 2021

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%

12%

0%

19%

-4%

11%

0%

7%

The Americas

26%

0%

10%

36%

6%

1%

8%

15%

of which: United States

26%

1%

12%

39%

4%

0%

10%

14%

Asia, Middle East and Africa

16%

3%

0%

19%

-3%

3%

0%

0%

of which: China

17%

1%

0%

18%

-9%

1%

0%

-8%

ABB Group

15%

6%

3%

24%

-1%

6%

2%

7%

Regional comparable growth rate reconciliation by Business Area – Year to date

H1 2022 compared to H1 2021

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

10%

13%

0%

23%

-2%

12%

0%

10%

The Americas

35%

1%

0%

36%

14%

0%

0%

14%

of which: United States

40%

0%

0%

40%

12%

0%

0%

12%

Asia, Middle East and Africa

4%

3%

0%

7%

2%

3%

0%

5%

of which: China

1%

1%

0%

2%

-4%

0%

0%

-4%

Electrification

17%

5%

0%

22%

5%

5%

0%

10%

H1 2022 compared to H1 2021

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

10%

14%

0%

24%

-4%

11%

1%

8%

The Americas

2%

1%

35%

38%

-16%

1%

29%

14%

of which: United States

3%

0%

40%

43%

-17%

1%

31%

15%

Asia, Middle East and Africa

22%

3%

1%

26%

-6%

2%

1%

-3%

of which: China

13%

1%

1%

15%

-5%

0%

1%

-4%

Motion

11%

6%

12%

29%

-9%

5%

10%

6%

H1 2022 compared to H1 2021

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

-11%

9%

0%

-2%

-1%

10%

0%

9%

The Americas

38%

1%

0%

39%

16%

2%

0%

18%

of which: United States

30%

0%

0%

30%

26%

1%

0%

27%

Asia, Middle East and Africa

15%

5%

0%

20%

-1%

5%

0%

4%

of which: China

17%

1%

0%

18%

-18%

1%

0%

-17%

Process Automation

9%

6%

0%

15%

3%

6%

0%

9%

H1 2022 compared to H1 2021

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

24%

13%

-2%

35%

-13%

10%

-2%

-5%

The Americas

35%

0%

0%

35%

6%

0%

0%

6%

of which: United States

35%

0%

0%

35%

3%

0%

0%

3%

Asia, Middle East and Africa

48%

2%

0%

50%

-21%

2%

0%

-19%

of which: China

66%

0%

0%

66%

-21%

0%

0%

-21%

Robotics & Discrete Automation

34%

8%

-2%

40%

-13%

5%

-1%

-9%

38 Q2 2022 FINANCIAL INFORMATION

Order backlog growth rate reconciliation

June 30, 2022 compared to June 30, 2021

US$

Foreign

(as

exchange

Portfolio

Business Area

reported)

impact

changes

Comparable

Electrification 

33%

9%

0%

42%

Motion

28%

15%

0%

43%

Process Automation

3%

9%

0%

12%

Robotics & Discrete Automation

82%

15%

0%

97%

ABB Group

26%

10%

1%

37%

Other growth rate reconciliations

Q2 2022 compared to Q2 2021

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 

5%

7%

0%

12%

-5%

7%

0%

2%

Motion

6%

8%

0%

14%

-7%

8%

0%

1%

Process Automation

4%

8%

0%

12%

-2%

8%

0%

6%

Robotics & Discrete Automation

1%

9%

0%

10%

-5%

9%

0%

4%

ABB Group

4%

8%

0%

12%

-3%

7%

0%

4%

H1 2022 compared to H1 2021

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%

6%

0%

16%

-1%

5%

0%

4%

Motion

10%

7%

0%

17%

-4%

6%

0%

2%

Process Automation

5%

7%

0%

12%

1%

6%

0%

7%

Robotics & Discrete Automation

6%

8%

0%

14%

-3%

7%

0%

4%

ABB Group

7%

7%

0%

14%

-1%

6%

0%

5%

39 Q2 2022 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), 

●

 changes in estimates relating to opening balance sheets of acquired businesses (changes in pre-acquisition estimates), 

●

 gains and losses from sale of businesses (including fair value adjustment on assets and liabilities held for sale), 

●

 acquisition- and divestment-related expenses and integration costs,

●

 other income/expense relating to the Power Grids joint venture,

●

 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 impairments and certain other fair value

changes, 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 Company 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.

Other income/expense relating to the Power Grids joint venture

Other income/expense relating to the Power Grids joint venture consists of amounts recorded in Income from continuing operations before taxes relating to the

divested Power Grids business including the income/loss under the equity method for the investment in Hitachi Energy Ltd. (Hitachi Energy), amortization of

deferred brand income as well as changes in value of other obligations relating to the divestment.

Operational revenues

The Company presents operational revenues solely for the purpose of allowing the computation of Operational EBITA margin. Operational revenues are Total

revenues adjusted for foreign exchange/commodity timing differences in total revenues of: (i) unrealized gains and losses on derivatives, (ii) realized gains and

losses on derivatives where the underlying hedged transaction has not yet been realized, and (iii) unrealized foreign exchange movements on receivables (and

related assets). Operational revenues are not intended to be an alternative measure to Total revenues, which represent our revenues measured in accordance

with U.S. GAAP.

Reconciliation

The following tables provide reconciliations of consolidated Operational EBITA to Net Income and Operational EBITA Margin by business.

Reconciliation of consolidated Operational EBITA to Net Income

Six months ended June 30,

Three months ended June 30,

($ in millions)

2022

2021

2022

2021

Operational EBITA

2,133

2,072

1,136

1,113

Acquisition-related amortization

(119)

(129)

(59)

(64)

Restructuring, related and implementation costs

(1)

(280)

(53)

(264)

(18)

Changes in obligations related to divested businesses

17

(6)

3

(4)

Changes in pre-acquisition estimates

1

(8)

2

(2)

Gains and losses from sale of businesses

(4)

9

(4)

12

Acquisition- and divestment-related expenses and integration costs

(109)

(30)

(50)

(20)

Other income/expense relating to the Power Grids joint venture

(37)

(19)

(2)

(2)

Certain other non-operational items

(63)

74

(65)

86

Foreign exchange/commodity timing differences in income from operations

(95)

(19)

(110)

(7)

Income from operations

1,444

1,891

587

1,094

Interest and dividend income

33

26

20

15

Interest and other finance expense

(62)

(91)

(40)

(36)

Non-operational pension (cost) credit

68

88

32

38

Income from continuing operations before taxes

1,483

1,914

599

1,111

Income tax expense

(434)

(574)

(193)

(322)

Income from continuing operations, net of tax

1,049

1,340

406

789

Loss from discontinued operations, net of tax

(20)

(36)

(9)

(8)

Net income

1,029

1,304

397

781

(1) Includes impairment of certain assets.

40 Q2 2022 FINANCIAL INFORMATION

Reconciliation of Operational EBITA margin by business

Three months ended June 30, 2022

Corporate and

Robotics &

Other and

Process

Discrete

Intersegment

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

Automation

elimination

Consolidated

Total revenues

3,531

1,626

1,529

732

(167)

7,251

Foreign exchange/commodity timing

differences in total revenues:

Unrealized gains and losses

on derivatives

36

(1)

37

9

4

85

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

8

1

5

–

24

38

Unrealized foreign exchange movements

on receivables (and related assets)

(22)

(4)

(10)

(8)

(9)

(53)

Operational revenues

3,553

1,622

1,561

733

(148)

7,321

Income (loss) from operations

465

231

175

43

(327)

587

Acquisition-related amortization

30

7

1

19

2

59

Restructuring, related and

implementation costs

(1)

8

–

–

2

254

264

Changes in obligations related to

divested businesses

–

–

–

–

(3)

(3)

Changes in pre-acquisition estimates

–

–

–

(2)

–

(2)

Gains and losses from sale of businesses

–

4

–

–

–

4

Acquisition- and divestment-related expenses

and integration costs

10

3

36

2

(1)

50

Other income/expense relating to the 

Power Grids joint venture

–

–

–

–

2

2

Certain other non-operational items

22

–

–

1

42

65

Foreign exchange/commodity timing 

differences in income from operations:

Unrealized gains and losses on derivatives

(foreign exchange, commodities, 

embedded derivatives)

75

23

12

1

7

118

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

6

1

7

(1)

20

33

Unrealized foreign exchange movements 

on receivables/payables

(and related assets/liabilities)

(17)

(3)

(7)

(5)

(9)

(41)

Operational EBITA

599

266

224

60

(13)

1,136

Operational EBITA margin (%)

16.9%

16.4%

14.3%

8.2%

n.a.

15.5%

(1) Includes impairment of certain assets.

In the three months ended June 30, 2022, Certain other non-operational items in the table above includes the following:

Three months ended June 30, 2022

Robotics &

Process

Discrete

Corporate

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

Automation

and Other

Consolidated

Certain other non-operational items:

Regulatory, compliance and legal costs

–

–

–

–

5

5

Business transformation costs

(1)

1

–

–

–

39

40

Other non-operational items

21

–

–

1

(2)

20

Total

22

–

–

1

42

65

(1) Amounts include ABB Way process transformation costs of $39 million for the three months ended June 30, 2022.

41 Q2 2022 FINANCIAL INFORMATION

Three months ended June 30, 2021

Corporate and

Robotics &

Other and

Process

Discrete

Intersegment

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

Automation

elimination

Consolidated

Total revenues

3,406

1,850

1,540

832

(179)

7,449

Foreign exchange/commodity timing 

differences in total revenues:

Unrealized gains and losses

on derivatives

(7)

(14)

2

–

–

(19)

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

(1)

–

(5)

–

(1)

(7)

Unrealized foreign exchange movements

on receivables (and related assets)

10

3

(1)

2

(1)

13

Operational revenues

3,408

1,839

1,536

834

(181)

7,436

Income (loss) from operations

549

303

190

74

(22)

1,094

Acquisition-related amortization

29

13

1

21

–

64

Restructuring, related and

implementation costs

4

4

10

–

–

18

Changes in obligations related to

divested businesses

–

–

–

–

4

4

Changes in pre-acquisition estimates

2

–

–

–

–

2

Gains and losses from sale of businesses

1

(1)

(13)

–

1

(12)

Acquisition- and divestment-related expenses

and integration costs

12

4

3

–

1

20

Other income/expense relating to the 

Power Grids joint venture

–

–

–

–

2

2

Certain other non-operational items

(9)

1

2

–

(80)

(86)

Foreign exchange/commodity timing 

differences in income from operations:

Unrealized gains and losses on derivatives

(foreign exchange, commodities, 

embedded derivatives)

4

(2)

2

–

4

8

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

(1)

1

(2)

(1)

(4)

(7)

Unrealized foreign exchange movements 

on receivables/payables

(and related assets/liabilities)

1

2

(1)

2

2

6

Operational EBITA

592

325

192

96

(92)

1,113

Operational EBITA margin (%)

17.4%

17.7%

12.5%

11.5%

n.a.

15.0%

In the three months ended June 30, 2021, Certain other non-operational items in the table above includes the following:

Three months ended June 30, 2021

Robotics &

Process

Discrete

Corporate

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

Automation

and Other

Consolidated

Certain other non-operational items:

Certain other fair values changes,

 including asset impairments

(10)

–

–

–

(86)

(96)

Business transformation costs

(1)

1

–

–

–

18

19

Other non-operational items

–

1

2

–

(12)

(9)

Total

(9)

1

2

–

(80)

(86)

(1) Amounts include ABB Way process transformation costs of $18 million for the three months ended June 30, 2021.

42 Q2 2022 FINANCIAL INFORMATION

Six months ended June 30, 2022

Corporate and

Robotics &

Other and

Process

Discrete

Intersegment

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

Automation

elimination

Consolidated

Total revenues

6,858

3,198

3,035

1,462

(337)

14,216

Foreign exchange/commodity timing

differences in total revenues:

Unrealized gains and losses

on derivatives

24

3

36

11

3

77

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

10

2

2

–

27

41

Unrealized foreign exchange movements

on receivables (and related assets)

(22)

(6)

(7)

(5)

(11)

(51)

Operational revenues

6,870

3,197

3,066

1,468

(318)

14,283

Income (loss) from operations

971

485

326

65

(403)

1,444

Acquisition-related amortization

61

15

2

40

1

119

Restructuring, related and

implementation costs

(1)

10

8

5

3

254

280

Changes in obligations related to

divested businesses

–

–

–

–

(17)

(17)

Changes in pre-acquisition estimates

1

–

–

(2)

–

(1)

Gains and losses from sale of businesses

–

4

–

–

–

4

Acquisition- and divestment-related expenses 

and integration costs

29

8

69

3

–

109

Other income/expense relating to the 

Power Grids joint venture

–

–

–

–

37

37

Certain other non-operational items

(8)

–

–

1

70

63

Foreign exchange/commodity timing 

differences in income from operations:

Unrealized gains and losses on derivatives

(foreign exchange, commodities, 

embedded derivatives)

54

22

18

4

2

100

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

8

1

4

(1)

23

35

Unrealized foreign exchange movements 

on receivables/payables

(and related assets/liabilities)

(17)

(3)

(4)

(4)

(12)

(40)

Operational EBITA

1,109

540

420

109

(45)

2,133

Operational EBITA margin (%)

16.1%

16.9%

13.7%

7.4%

n.a.

14.9%

(1) Includes impairment of certain assets.

In the six months ended June 30, 2022, Certain other non-operational items in the table above includes the following:

Six months ended June 30, 2022

Robotics &

Process

Discrete

Corporate

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

Automation

and Other

Consolidated

Certain other non-operational items:

Regulatory, compliance and legal costs

–

–

–

–

4

4

Certain other fair values changes,

 including asset impairments

(31)

–

–

–

(3)

(34)

Business transformation costs

(1)

2

–

–

–

64

66

Other non-operational items

21

–

–

1

5

27

Total

(8)

–

–

1

70

63

(1) Amounts include ABB Way process transformation costs of $64 million for the six months ended June 30, 2022.

43 Q2 2022 FINANCIAL INFORMATION

Six months ended June 30, 2021

Corporate and

Robotics &

Other and

Process

Discrete

Intersegment

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

Automation

elimination

Consolidated

Total revenues

6,546

3,517

2,947

1,685

(345)

14,350

Foreign exchange/commodity timing 

differences in total revenues:

Unrealized gains and losses

on derivatives

22

13

14

5

4

58

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

(1)

–

(7)

(1)

(1)

(10)

Unrealized foreign exchange movements

on receivables (and related assets)

(9)

(5)

(6)

(5)

(3)

(28)

Operational revenues

6,558

3,525

2,948

1,684

(345)

14,370

Income (loss) from operations

989

568

337

156

(159)

1,891

Acquisition-related amortization

58

26

2

41

2

129

Restructuring, related and

implementation costs

21

5

13

5

9

53

Changes in obligations related to

divested businesses

–

–

–

–

6

6

Changes in pre-acquisition estimates

8

–

–

–

–

8

Gains and losses from sale of businesses

4

(1)

(13)

–

1

(9)

Acquisition- and divestment-related expenses

and integration costs

18

7

4

–

1

30

Other income/expense relating to the 

Power Grids joint venture

–

–

–

–

19

19

Certain other non-operational items

(15)

1

2

–

(62)

(74)

Foreign exchange/commodity timing 

differences in income from operations:

Unrealized gains and losses on derivatives

(foreign exchange, commodities, 

embedded derivatives)

29

12

12

1

2

56

Realized gains and losses on derivatives

where the underlying hedged

transaction has not yet been realized

(1)

1

(3)

(1)

(5)

(9)

Unrealized foreign exchange movements 

on receivables/payables

(and related assets/liabilities)

(8)

(5)

(7)

(1)

(7)

(28)

Operational EBITA

1,103

614

347

201

(193)

2,072

Operational EBITA margin (%)

16.8%

17.4%

11.8%

11.9%

n.a.

14.4%

In the six months ended June 30, 2021, Certain other non-operational items in the table above includes the following:

Six months ended June 30, 2021

Robotics &

Process

Discrete

Corporate

($ in millions, unless otherwise indicated)

Electrification

Motion

Automation

Automation

and Other

Consolidated

Certain other non-operational items:

Regulatory, compliance and legal costs

–

–

–

–

2

2

Certain other fair values changes,

 including asset impairments

(19)

–

–

–

(95)

(114)

Business transformation costs

4

–

–

–

35

39

Other non-operational items

–

1

2

–

(4)

(1)

Total

(15)

1

2

–

(62)

(74)

(1) Amounts include ABB Way process transformation costs of $33 million for the six months ended June 30, 2021.

44 Q2 2022 FINANCIAL INFORMATION

Net debt

Definition 

Net debt

Net debt is defined as Total debt less Cash and marketable securities.

Total debt

Total debt is the sum of Short-term debt and current maturities of long-term debt, and Long-term debt.

Cash and marketable securities

Cash and marketable securities is the sum of Cash and equivalents, Restricted cash (current and non-current) and Marketable securities and short-term

investments.

Reconciliation

($ in millions)

June 30, 2022

December 31, 2021

Short-term debt and current maturities of long-term debt

2,830

1,384

Long-term debt

5,086

4,177

Total debt (gross debt)

7,916

5,561

Cash and equivalents

2,412

4,159

Restricted cash - current

23

30

Marketable securities and short-term investments

945

1,170

Restricted cash - non-current

301

300

Cash and marketable securities

3,681

5,659

Net debt (cash)

4,235

(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)

June 30, 2022

December 31, 2021

Total stockholders' equity

12,586

15,957

Net debt (cash) (as defined above)

4,235

(98)

Net debt (cash) / Equity ratio

0.34

-0.01

Net debt/EBITDA ratio

Definition 

Net debt/EBITDA ratio

Net debt/EBITDA ratio is defined as Net debt divided by EBITDA.

EBITDA

EBITDA is defined as Income from operations for the trailing twelve months preceding the balance sheet date before depreciation and amortization for the same

trailing twelve-month period. 

Reconciliation

($ in millions, unless otherwise indicated)

June 30, 2022

June 30, 2021

Income from operations for the three months ended:

June 30, 2022 / 2021

587

1,094

March 31, 2022 / 2021

857

797

December 31, 2021 / 2020

2,975

578

September 30, 2021 / 2020

852

71

Depreciation and Amortization for the three months ended:

June 30, 2022 / 2021

207

230

March 31, 2022 / 2021

210

227

December 31, 2021 / 2020

216

229

September 30, 2021 / 2020

220

231

EBITDA 

6,124

3,457

Net debt (as defined above)

4,235

2,259

Net debt / EBITDA

0.7

0.7

45 Q2 2022 FINANCIAL INFORMATION

Net working capital as a percentage of revenues

Definition 

Net working capital as a percentage of revenues

Net working capital as a percentage of revenues is calculated as Net working capital divided by Adjusted revenues for the trailing twelve months.

Net working capital

Net working capital is the sum of (i) receivables, net, (ii) contract assets, (iii) inventories, net, and (iv) prepaid expenses; less (v) accounts payable, trade, (vi)

contract liabilities, and (vii) other current liabilities (excluding primarily: (a) income taxes payable, (b) current derivative liabilities, (c) pension and other employee

benefits, (d) payables under the share buyback program, (e) liabilities related to certain other restructuring-related activities and (f) liabilities related to the

divestment of the Power Grids business); and including the amounts related to these accounts which have been presented as either assets or liabilities held for

sale but excluding any amounts included in discontinued operations .

Adjusted revenues for the trailing twelve months

Adjusted revenues for the trailing twelve months includes total revenues recorded by ABB in the twelve months preceding the relevant balance sheet date adjusted

to eliminate revenues of divested businesses and the estimated impact of annualizing revenues of certain acquisitions which were completed in the same trailing

twelve-month period.

Reconciliation

($ in millions, unless otherwise indicated)

June 30, 2022

June 30, 2021

Net working capital:

Receivables, net

(1)

6,960

7,113

Contract assets

965

1,087

Inventories, net

5,595

4,700

Prepaid expenses

262

229

Accounts payable, trade

(4,805)

(4,708)

Contract liabilities

(2,141)

(1,846)

Other current liabilities

(2)

(3,173)

(3,324)

Net working capital

3,663

3,251

Total revenues for the three months ended:

June 30, 2022 / 2021

7,251

7,449

March 31, 2022 / 2021

6,965

6,901

December 31, 2021 / 2020

7,567

7,182

September 30, 2021 / 2020

7,028

6,582

Adjustment to annualize/eliminate revenues of certain acquisitions/divestments

(213)

–

Adjusted revenues for the trailing twelve months

28,598

28,114

Net working capital as a percentage of revenues (%)

12.8%

11.6%

(1) Amount excludes receivables related to sales of investments outstanding at June 30, 2021.

(2) Amounts exclude $1,104 million and $705 million at June 30, 2022 and 2021, respectively, related primarily to (a) income taxes payable, (b) current derivative liabilities, (c) pension

and other employee benefits, (d) payables under the share buyback program, (e) liabilities related to certain restructuring-related activities and (f) liabilities related to the divestment of

the Power Grids business.

46 Q2 2022 FINANCIAL INFORMATION

Free cash flow conversion to net income

Definition

Free cash flow conversion to net income

Free cash flow conversion to net income is calculated as free cash flow divided by Adjusted net income attributable to ABB.

Adjusted net income attributable to ABB

Adjusted net income attributable to ABB is calculated as net income attributable to ABB adjusted for: (i) impairment of goodwill, (ii) losses from extinguishment of

debt, and (iii) gains arising on the sale of both the Mechanical Power Transmission Division (Dodge) and Power Grids business, the latter being included in

discontinued operations.

Free cash flow

Free cash flow is calculated as net cash provided by operating activities adjusted for: (i) purchases of property, plant and equipment and intangible assets, and (ii)

proceeds from sales of property, plant and equipment.

Free cash flow for the trailing twelve months

Free cash flow for the trailing twelve months includes free cash flow recorded by ABB in the twelve months preceding the relevant balance sheet date.

Net income for the trailing twelve months

Net income for the trailing twelve months includes net income recorded by ABB (as adjusted) in the twelve months preceding the relevant balance sheet date.

Free cash flow conversion to net income

Twelve months to

($ in millions, unless otherwise indicated)

June 30, 2022

December 31, 2021

Net cash provided by operating activities – continuing operations

1,973

3,338

Adjusted for the effects of continuing operations:

Purchases of property, plant and equipment and intangible assets

(865)

(820)

Proceeds from sale of property, plant and equipment

136

93

Free cash flow from continuing operations

1,244

2,611

Net cash provided by (used in) operating activities – discontinued operations

(40)

(8)

Free cash flow

1,204

2,603

Adjusted net income attributable to ABB

(1)

2,132

2,416

Free cash flow conversion to net income

56%

108%

(1) Adjusted net income attributable to ABB for the year ended December 31, 2021, is adjusted to exclude the gain on the sale of Dodge of $2,195 million and reductions to the gain on

the sale of Power Grids of $65 million.

Reconciliation of the trailing twelve months to June 30, 2022

Continuing operations

Discontinued operations

($ in millions)

Net cash

provided by

continuing

operating

activities

Purchases of

property, plant

and equipment

and intangible

assets

Proceeds

from sale of

property, plant

and equipment

Net cash

provided by

(used in)

discontinued

operating

activities

Purchases of

property, plant

and equipment

and intangible

assets

Proceeds

from sale of

property, plant

and equipment

Adjusted net

income

attributable 

to ABB

(1)

Q3 2021

1,119

(166)

13

(15)

–

–

657

Q4 2021

1,033

(361)

57

(13)

–

–

478

Q1 2022

(564)

(187)

35

(9)

–

–

609

Q2 2022

385

(151)

31

(3)

–

–

388

Total for the trailing

twelve months to

June 30, 2022

1,973

(865)

136

(40)

–

–

2,132

(1) Adjusted net income attributable to ABB for Q3 and Q4 of 2021 as well as Q1 and Q2 of 2022, is adjusted to exclude reductions to the gain on the sale of Power Grids of $5 million,

$33 million, $5 million and $9 million, respectively. In addition, Q4 2021 is also adjusted to exclude the gain on the sale of Dodge of $2,195 million.

47 Q2 2022 FINANCIAL INFORMATION

Net finance expenses 

Definition 

Net finance expenses is calculated as Interest and dividend income less Interest and other finance expense.

Reconciliation

Six months ended June 30,

Three months ended June 30,

($ in millions)

2022

2021

2022

2021

Interest and dividend income

33

26

20

15

Interest and other finance expense

(62)

(91)

(40)

(36)

Net finance expenses

(29)

(65)

(20)

(21)

Book-to-bill ratio

Definition 

Book-to-bill ratio is calculated as Orders received divided by Total revenues.

Reconciliation

Six months ended June 30,

2022

2021

($ in millions, except Book-to-bill presented as a ratio)

Orders

Revenues

Book-to-bill

Orders

Revenues

Book-to-bill

Electrification

8,434

6,858

1.23

7,224

6,546

1.10

Motion

4,281

3,198

1.34

3,864

3,517

1.10

Process Automation

3,511

3,035

1.16

3,211

2,947

1.09

Robotics & Discrete Automation

2,417

1,462

1.65

1,809

1,685

1.07

Corporate and Other

 (incl. intersegment eliminations)

(463)

(337)

n.a.

(363)

(345)

n.a.

ABB Group

18,180

14,216

1.28

15,745

14,350

1.10

Three months ended June 30,

2022

2021

($ in millions, except Book-to-bill presented as a ratio)

Orders

Revenues

Book-to-bill

Orders

Revenues

Book-to-bill

Electrification

4,037

3,531

1.14

3,693

3,406

1.08

Motion

2,079

1,626

1.28

1,947

1,850

1.05

Process Automation

1,819

1,529

1.19

1,555

1,540

1.01

Robotics & Discrete Automation

1,109

732

1.52

968

832

1.16

Corporate and Other

 (incl. intersegment eliminations)

(237)

(167)

n.a.

(174)

(179)

n.a.

ABB Group

8,807

7,251

1.21

7,989

7,449

1.07

48 Q2 2022 FINANCIAL INFORMATION

—

ABB Ltd

Corporate Communications

P.O. Box 8131

8050 Zurich

Switzerland

Tel: +41 (0)43 317 71

11

www.abb.com

April 1 — June 30, 2022

ABB Ltd announces that the following members of the Executive Committee or Board of Directors of ABB have purchased,

sold or been granted ABB’s registered shares, call options and warrant appreciation rights (“WARs”), in the following amounts:

Name

Date

Description

Received *

Purchased

Sold

Price

Timo Ihamuotila

May 16, 2022

Share

38,594

CHF

28.31

Tarak Mehta

May 16, 2022

Share

34,937

CHF

28.31

Peter Terwiesch

May 16, 2022

Share

32,500

CHF

28.31

Morten Wierod

May 16, 2022

Share

43,752

CHF

28.31

Sami Atiya

May 16, 2022

Share

39,001

CHF

28.31

Peter Voser

May 02, 2022

Share

18,296

CHF

31.16

Gunnar Brock

May 02, 2022

Share

2,026

CHF

31.16

David Constable

May 02, 2022

Share

1,964

CHF

31.16

Frederico Curado

May 02, 2022

Share

4,075

CHF

31.16

Lars Förberg

May 02, 2022

Share

4,870

CHF

31.16

Jennifer Xin-Zhe Li

May 02, 2022

Share

1,986

CHF

31.16

Geraldine Matchett

May 02, 2022

Share

2,647

CHF

31.16

David Meline

May 02, 2022

Share

2,456

CHF

31.16

Satish Pai

May 02, 2022

Share

1,872

CHF

31.16

Jacob Wallenberg

May 02, 2022

Share

2,763

CHF

31.16

Key:

* Received instruments were delivered as part of the ABB Ltd Director’s or Executive Committee Member’s compensation as compensation for foregone

benefits

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on

its behalf by the undersigned, thereunto duly authorized.

ABB LTD

Date: July 21, 2022.

By:

/s/ Ann-Sofie Nordh

Name:

Ann-Sofie Nordh

Title:

Group Senior Vice President and 

Head of Investor Relations

Date: July 21, 2022.

By:

/s/ Richard A. Brown

Name:

Richard A. Brown

Title:

Group Senior Vice President and

Chief Counsel Corporate & Finance