ABB Ltd Interim Consolidated Income Statements (unaudited) Year ended ($ in millions, except per share data in $) Dec. 31, 2011 Three months ended Dec. 31, 2010 Dec. 31, 2011 31'875 6'115 37'990 (22'649) (3'907) (26'556) 11'434 (5'373) (1'371) (23) 4'667 90 (207) 4'550 (1'244) 3'306 9 3'315 (147) 3'168 26'291 5'298 31'589 (18'607) (3'453) (22'060) 9'529 (4'615) (1'082) (14) 3'818 95 (173) 3'740 (1'018) 2'722 10 2'732 (171) 2'561 3'159 3'168 2'551 2'561 822 830 687 700 Basic earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax Net income 1.38 1.38 1.12 1.12 0.36 0.36 0.30 0.31 Diluted earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax Net income 1.38 1.38 1.11 1.12 0.36 0.36 0.30 0.31 2'288 2'291 2'287 2'291 2'290 2'291 2'285 2'289 Sales of products Sales of services Total revenues Cost of products Cost of services Total cost of sales Gross profit Selling, general and administrative expenses Non-order related research and development expenses Other income (expense), net Earnings before interest and taxes Interest and dividend income Interest and other finance expense Income from continuing operations before taxes Provision for taxes Income from continuing operations, net of tax Income from discontinued operations, net of tax Net income Net income attributable to noncontrolling interests Net income attributable to ABB Amounts attributable to ABB shareholders: Income from continuing operations, net of tax Net income Weighted-average number of shares outstanding (in millions) used to compute: Basic earnings per share attributable to ABB shareholders Diluted earnings per share attributable to ABB shareholders See Notes to the Interim Consolidated Financial Information 8'848 1'723 10'571 (6'441) (1'137) (7'578) 2'993 (1'437) (399) (34) 1'123 25 (35) 1'113 (247) 866 8 874 (44) 830 Dec. 31, 2010 7'628 1'551 9'179 (5'563) (987) (6'550) 2'629 (1'297) (320) (34) 978 25 (35) 968 (228) 740 13 753 (53) 700 ABB Ltd Interim Consolidated Balance Sheets (unaudited) ($ in millions, except share data) Dec. 31, 2011 Dec. 31, 2010 Cash and equivalents Marketable securities and short-term investments Receivables, net Inventories, net Prepaid expenses Deferred taxes Other current assets Total current assets 4'819 948 10'773 5'737 227 932 351 23'787 5'897 2'713 9'970 4'878 193 896 801 25'348 Property, plant and equipment, net Goodwill Other intangible assets, net Prepaid pension and other employee benefits Investments in equity-accounted companies Deferred taxes Other non-current assets Total assets 4'922 7'269 2'253 139 156 318 804 39'648 4'356 4'085 701 173 19 846 767 36'295 Accounts payable, trade Billings in excess of sales Employee and other payables 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 4'789 1'819 1'361 765 1'757 305 1'324 2'619 1'822 16'561 4'555 1'730 1'526 1'043 1'764 357 1'393 2'726 1'644 16'738 Long-term debt Pension and other employee benefits Deferred taxes Other non-current liabilities Total liabilities 3'231 1'487 537 1'496 23'312 1'139 831 411 1'718 20'837 1'621 16'988 (2'408) 1'454 15'389 (1'517) (424) 15'777 559 16'336 39'648 (441) 14'885 573 15'458 36'295 Commitments and contingencies Stockholders' equity: Capital stock and additional paid-in capital (2,314,743,264 and 2,308,782,064 issued shares at December 31, 2011 and 2010, respectively) Retained earnings Accumulated other comprehensive loss Treasury stock, at cost (24,332,144 and 25,317,453 shares at December 31, 2011 and 2010, respectively) 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) Year ended ($ in millions) Operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Pension and other employee benefits Deferred taxes Net gain from sale of property, plant and equipment Income from equity-accounted companies Other Changes in operating assets and liabilities: Trade receivables, net Inventories, net Trade payables Billings in excess of sales Provisions, net Advances from customers Other assets and liabilities, net Net cash provided by operating activities Dec. 31, 2011 3'315 Three months ended Dec. 31, 2010 2'732 Dec. 31, 2011 Dec. 31, 2010 874 753 995 (49) (34) (47) (4) 111 702 (51) 151 (39) (3) 106 265 6 (58) (24) (3) 28 195 (96) 51 (22) (1) 38 (731) (600) 213 150 (391) 47 637 3'612 (407) (264) 678 89 (69) (25) 597 4'197 (114) 613 139 97 (51) (38) (60) 1'674 (142) 198 172 105 62 79 367 1'759 (2'809) (142) (1'021) (3'391) (65) (2'165) (840) (1'910) (2) (445) (846) (393) (407) Investing activities: 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) and changes in cost and equity investments 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) Changes in financing and other non-current receivables, net Net cash used in investing activities (4'020) 3'717 483 529 57 (1'313) 807 531 290 3'276 47 (384) 1'301 248 34 (22) 241 138 205 16 8 (55) (3'253) 83 (7) (2'747) 4 6 (1'148) 21 39 (1'008) Financing activities: Net changes in debt with original maturities of 90 days or less Increase in debt Repayment of debt Issuance of shares Transactions in treasury shares Dividends paid Dividends paid in the form of nominal value reduction Acquisition of noncontrolling interests Dividends paid to noncontrolling shareholders Other Net cash used in financing activities 450 2'580 (2'576) 105 5 (1'569) (13) (157) (33) (1'208) 52 277 (497) 16 (166) (1'112) (956) (193) 49 (2'530) (674) 1'112 (1'005) (1) (32) (600) (14) 80 (170) 10 (46) (2) (5) 36 (111) (229) (142) (103) (12) (1'078) (1'222) (177) 628 Cash and equivalents, beginning of period Cash and equivalents, end of period 5'897 4'819 7'119 5'897 4'996 4'819 5'269 5'897 Supplementary disclosure of cash flow information: Interest paid Taxes paid 165 1'305 94 884 62 353 22 186 Effects of exchange rate changes on cash and equivalents Net change in cash and equivalents - continuing operations See Notes to the Interim Consolidated Financial Information ABB Ltd Interim Consolidated Statements of Changes in Stockholders' Equity (unaudited) 3'943 12'828 Comprehensive income: Net income (1'056) 20 (1'068) 20 (2'084) (897) 349 (2) 148 Change in derivatives qualifying as cash flow hedges, net of tax 72 Cancellation of shares repurchased under buyback program 2'732 21 370 (2) (2) 148 148 72 Call options Balance at December 31, 2010 (3) 145 3'128 189 3'317 (836) (110) (946) - (189) 72 (1'112) (619) 66 (2) 72 Treasury stock transactions 13 ers ' 171 349 (1'112) Share-based payment arrangements Tot al equ stock hol ity d 2'561 349 (836) Issuance of shares inte 14'473 Dividends paid to noncontrolling shareholders Dividends paid in the form of nominal value reduction ont roll ing 683 Total comprehensive income Changes in noncontrolling interests No nc 13'790 2'561 Foreign currency translation adjustments Effect of change in fair value of available-for-sale securities, net of tax Unrecognized income related to pensions and other postretirement plans, net of tax re s ts k ho ld e rs' Tot al equ ABB s to ity c ry s to c k asu Tre Tot al com accu pre mula hen te siv d oth e lo e ss r Un rea cas lized h ga der flow h in (lo iva s tive edge s) of s Pe ns pos ion an d tre adju tirem other s tm e n t pla ent n s Un rea ava lized ga ila sec ble-fo in (lo s urit r ies -sale s) on For eig tran n cu rr sla tion ency adju stm ent Re tain ear ed nin gs ($ in millions) Balance at January 1, 2010 Ca pit add al sto c itio nal k and paid -in cap it al Accumulated other comprehensive loss (189) (1'112) 619 - - (228) (228) (228) 66 66 65 78 78 (441) 14'885 (1) (1) 1'454 15'389 (707) 18 (920) 92 (1'517) (1) 573 15'458 1'454 Comprehensive income: Net income 15'389 (707) 18 (920) 92 (1'517) (441) 3'168 Foreign currency translation adjustments Effect of change in fair value of available-for-sale securities, net of tax Unrecognized income (expense) related to pensions and other postretirement plans, net of tax (261) 2 (552) Change in derivatives qualifying as cash flow hedges, net of tax (80) Issuance of shares ers ' Tot al equ stock hol ity d inte ont roll ing No nc 15'458 147 3'315 (261) (14) (275) 2 2 (552) (552) (80) 2 3 (549) 136 2'413 (80) 2'277 (3) Dividends paid Share-based payment arrangements 573 3'168 Dividends paid to noncontrolling shareholders Treasury stock transactions 14'885 (261) Total comprehensive income Changes in noncontrolling interests re s ts k ho ld e rs' Tot al equ ABB s to ity c ry s to c k asu Tre Tot al com accu pre mula hen te siv d oth e lo e ss r Un rea cas lized h ga der flow h in (lo iva s tive edge s) of s Pe ns pos ion an d tre adju tirem other s tm e n t pla ent n s Un rea ava lized ga ila sec ble-fo in (lo s urit r ies -sale s) on For eig tran n cu rr sla tion ency adju stm ent Re tain ear ed nin gs ($ in millions) Balance at January 1, 2011 Ca pit add al sto c itio nal k and paid -in cap it al Accumulated other comprehensive loss (1'569) (80) (3) 7 4 - (157) (157) (1'569) (12) 17 (1'569) 5 5 67 67 67 105 105 105 Call options (9) (9) (9) Replacement options issued in connection with acquisition 19 19 19 Balance at December 31, 2011 See Notes to the Interim Consolidated Financial Information 1'621 16'988 (968) 20 (1'472) 12 (2'408) (424) 15'777 559 16'336