ABB Ltd Interim Consolidated Income Statements (unaudited) Nine months ended (in millions of $, except per share data in $) Sales of products Sales of services Total revenues Cost of products Cost of services Total cost of sales Gross profit Selling, general and administrative expenses Other income (expense), net Earnings before interest and taxes Interest and dividend income Interest and other finance expense Income from continuing operations before taxes Provision for taxes Income from continuing operations, net of tax Income (loss) from discontinued operations, net of tax Net income Net income attributable to noncontrolling interests Net income attributable to ABB Amounts attributable to ABB shareholders: Income from continuing operations, net of tax Income (loss) from discontinued operations, net of tax Net income Sep. 30, 2009 19,522 3,512 23,034 (13,816) (2,363) (16,179) 6,855 (3,972) 445 3,328 93 (96) 3,325 (831) 2,494 26 2,520 (159) 2,361 Three months ended Sep. 30, 2008 21,926 3,846 25,772 (14,909) (2,520) (17,429) 8,343 (4,320) 70 4,093 250 (139) 4,204 (1,114) 3,090 (1) 3,089 (184) 2,905 Sep. 30, 2009 6,713 1,197 7,910 (4,803) (800) (5,603) 2,307 (1,333) 445 1,419 25 (63) 1,381 (297) 1,084 4 1,088 (54) 1,034 Sep. 30, 2008 7,499 1,292 8,791 (5,241) (844) (6,085) 2,706 (1,432) 17 1,291 75 (62) 1,304 (331) 973 6 979 (52) 927 2,335 26 2,361 2,908 (3) 2,905 1,030 4 1,034 921 6 927 Basic earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax Income (loss) from discontinued operations, net of tax Net income 1.02 0.01 1.03 1.27 0.00 1.27 0.45 0.00 0.45 0.40 0.01 0.41 Diluted earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax Income (loss) from discontinued operations, net of tax Net income 1.02 0.01 1.03 1.26 0.00 1.26 0.45 0.00 0.45 0.40 0.00 0.40 2,283 2,286 2,289 2,301 2,283 2,289 2,285 2,294 Average number of shares (in millions) used to compute: Basic earnings per share attributable to ABB shareholders Diluted earnings per share attributable to ABB shareholders See Notes to the Interim Consolidated Financial Information ABB Ltd Interim Consolidated Balance Sheets (unaudited) (in millions of $, except share data) Sep. 30, 2009 Dec. 31, 2008 Cash and equivalents Marketable securities and short-term investments Receivables, net Inventories, net Prepaid expenses Deferred taxes Other current assets Total current assets 5,502 2,779 9,580 5,347 261 986 495 24,950 6,399 1,407 9,245 5,306 237 1,020 733 24,347 Financing receivables, net Property, plant and equipment, net Goodwill Other intangible assets, net Prepaid pension and other employee benefits Investments in equity method companies Deferred taxes Other non-current assets Total assets 450 3,967 3,035 461 106 48 1,122 287 34,426 445 3,562 2,817 411 73 68 1,190 268 33,181 Accounts payable, trade Billings in excess of sales Accounts payable, other Short-term debt and current maturities of long-term debt Advances from customers Deferred taxes Provisions for warranties Provisions and other current liabilities Accrued expenses Total current liabilities 3,935 1,385 1,264 218 2,105 480 1,171 2,624 1,593 14,775 4,451 1,224 1,292 354 2,014 528 1,105 3,467 1,569 16,004 Long-term debt Pension and other employee benefits Deferred taxes Other non-current liabilities Total liabilities 2,219 1,128 417 1,959 20,498 2,009 1,071 425 1,902 21,411 3,893 12,288 (1,954) 4,841 9,927 (2,710) (897) 13,330 598 13,928 34,426 (900) 11,158 612 11,770 33,181 Stockholders' equity: Capital stock and additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost (39,938,859 shares at September 30, 2009, and 40,108,014 shares at December 31, 2008) Total ABB stockholders' equity Noncontrolling interests Total stockholders' equity Total liabilities and stockholders' equity See Notes to the Interim Consolidated Financial Information ABB Ltd Interim Consolidated Statements of Cash Flows (unaudited) Nine months ended (in millions of $) Operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Pension and postretirement benefits Deferred taxes Net gain from sale of property, plant and equipment Income (loss) from equity accounted companies Other Changes in operating assets and liabilities: Trade receivables Inventories Trade payables Billings in excess of sales Provisions, net Advances from customers Other assets and liabilities, net Net cash provided by operating activities Investing activities: Changes in financing receivables Purchases of marketable securities (available-for-sale) Purchases of marketable securities (held-to-maturity) Purchases of short-term investments Purchases of property, plant and equipment and intangible assets Acquisition of businesses (net of cash acquired) Proceeds from sales of marketable securities (available-for-sale) Proceeds from maturity of marketable securities (available-for-sale) Proceeds from maturity of marketable securities (held-to-maturity) Proceeds from short-term investments Proceeds from sales of property, plant and equipment Proceeds from sales of businesses and equity accounted companies (net of cash disposed) Other Net cash provided by (used in) investing activities Financing activities: Net changes in debt with maturities of 90 days or less Increase in debt Repayment of debt Issuance of shares Purchase of treasury shares Dividends paid in the form of nominal value reduction Dividends paid to noncontrolling shareholders Other Net cash used in financing activities Effects of exchange rate changes on cash and equivalents Adjustment for the net change in cash and equivalents in assets held for sale and in discontinued operations Net change in cash and equivalents - continuing operations Cash and equivalents beginning of period Cash and equivalents end of period Supplementary disclosure of cash flow information: Interest paid Taxes paid See Notes to the Interim Consolidated Financial Information Sep. 30, 2009 2,520 Three months ended Sep. 30, 2008 3,089 Sep. 30, 2009 1,088 Sep. 30, 2008 979 467 (1) (11) (11) 1 (13) 483 46 222 (34) (12) 64 169 (10) (10) (2) 1 16 166 1 49 (6) (4) 25 172 398 (703) 56 (370) (18) (243) 2,244 (1,193) (1,017) 401 434 (137) 349 (132) 2,563 137 413 (198) (14) (433) 15 109 1,281 (311) (454) 51 176 (39) 192 296 1,121 (2) (81) (799) (2,071) (624) (155) 63 855 273 448 23 (1) (420) -(2,410) (736) (552) 80 --4,196 45 -(19) (238) (1,720) (215) (100) 21 -273 356 5 3 (300) -(1,150) (263) (525) 25 ---6 3 2 (1,632) 23 -(2,181) (34) 123 (174) 3 -(1,027) (85) 20 (1,174) (59) 146 (157) 49 (161) (1,060) (46) 32 (1,256) 10 2 (2,058) (28) 440 (523) 3 -(1,027) (191) (14) (1,340) 46 -248 32 323 (641) 49 (606) (1,060) (149) 63 (1,989) 257 (151) -(897) 26 697 205 (424) -(1,320) -(2,740) 6,399 5,502 4,650 5,347 6,822 5,502 8,087 5,347 122 829 175 793 37 275 63 236 ABB Ltd Interim Consolidated Statements of Changes in Stockholders' Equity (unaudited) 6,809 (486) 55 (1,330) (302) 2,905 Foreign currency translation adjustments Foreign currency translation adjustments related to divestments of businesses Effect of change in fair value of available-for-sale securities, net of tax Unrecognized gain related to pensions and other postretirement plans, net of tax Change in derivatives qualifying as cash flow hedges, net of tax No nco nt roll in Tot al equ stock ho ity lde rs ' g in tere sts lde rs' ho Tot al equ ABB sto ity ck k ry s toc asu Tre Tot al com accu pre mula hen te siv d oth e lo e ss r Re tain ear ed nin gs 5,780 Comprehensive income: Net income Un rea cas lized ga h der flow h in (lo s iva e tive dge s) of s 7 ent apit a Ca pit add al sto c itio nal k and paid -in c (in millions of $) Balance at January 1, 2008 Pen sio pos n an d tre adju tirem other stm ent pla ent n s Un rea ava lized ga ila sec ble-fo in (lo s urit r ies -sale s) on (906) l For eig tran n cu rr sla tion ency adju stm Accumulated other comprehensive loss 10,957 592 11,549 2,905 184 3,089 (461) (461) (461) (29) (490) 6 6 6 6 (29) (29) (29) 11 11 11 (29) 11 (110) (110) (110) Total comprehensive income (110) 2,322 155 2,477 Dividends paid to noncontrolling shareholders -- (152) (152) Changes in noncontrolling interests -- (42) (42) Treasury stock transactions Dividends paid in the form of nominal value reduction Issuance of shares (20) 20 (1,060) -- -- (1,060) (1,060) 49 Shares repurchased under buyback program (619) 49 49 (619) (619) 45 Share-based payment arrangements 45 45 Call options 30 30 Balance at September 30, 2008 4,824 9,714 (1,361) (22) (475) (55) (1,913) (901) 30 11,724 553 12,277 4,841 Comprehensive income: Net income (978) (161) (2,710) (900) 2,361 Foreign currency translation adjustments Effect of change in fair value of available-for-sale securities, net of tax Unrecognized loss related to pensions and other postretirement plans, net of tax Change in derivatives qualifying as cash flow hedges, net of tax 672 (62) (24) No nco nt roll in Tot al equ stock ho ity lde rs ' g in tere sts lde rs' ho Tot al equ ABB sto ity ck k ry s toc asu Tre Tot al com accu pre mula hen te siv d oth e lo e ss r Re tain ear ed nin gs 9,927 Un rea cas lized h ga der flow h in (lo s iva e tive dge s) of s 83 ent apit a Ca pit add al sto c itio nal k and paid -in c (in millions of $) Balance at January 1, 2009 Pen sio pos n an d tre adju tirem other stm ent pla ent n s Un rea ava lized ga ila sec ble-fo in (lo s urit r ies -sale s) on (1,654) l For eig tran n cu rr sla tion ency adju stm Accumulated other comprehensive loss 11,158 612 11,770 2,361 159 2,520 672 672 6 678 (62) (62) (24) (24) (62) (3) (27) 3,117 162 3,279 Dividends paid to noncontrolling shareholders -- (193) (193) Changes in noncontrolling interests -- 17 17 170 170 170 Total comprehensive income Treasury stock transactions Dividends paid in the form of nominal value reduction Issuance of shares Share-based payment arrangements Call options Balance at September 30, 2009 See Notes to the Interim Consolidated Financial Information (3) 3 (1,024) 170 -- -- (1,024) (1,024) 3 3 3 54 54 54 22 3,893 22 12,288 (982) 21 (1,002) 9 (1,954) (897) 13,330 22 598 13,928