ABB LTD INTERIM

Financial Statements

— Consolidated Financial Information ABB Ltd Consolidated Income Statements (unaudited) Year ended Three months ended ($ in millions, except per share data in $) Dec. 31, 2019 Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2018 Sales of products 22,554 22,366 5,597 5,888 Sales of services and other 5,424 5,296 1,471 1,507 Total revenues 27,978 27,662 7,068 7,395 Cost of sales of products (15,811) (15,961) (3,960) (4,388) Cost of services and other (3,261) (3,157) (901) (920) Total cost of sales (19,072) (19,118) (4,861) (5,308) Gross profit 8,906 8,544 2,207 2,087 Selling, general and administrative expenses (5,447) (5,295) (1,365) (1,459) Non-order related research and development expenses (1,198) (1,147) (332) (331) Other income (expense), net (323) 124 138 (22) Income from operations 1,938 2,226 648 275 Interest and dividend income 67 72 10 11 Interest and other finance expense (215) (262) (36) (66) Non-operational pension (cost) credit 72 83 5 6 Income from continuing operations before taxes 1,862 2,119 627 226 Provision for taxes (772) (544) (320) (16) Income from continuing operations, net of tax 1,090 1,575 307 210 Income from discontinued operations, net of tax 438 723 50 135 Net income 1,528 2,298 357 345 Net income attributable to noncontrolling interests (89) (125) (32) (28) Net income attributable to ABB 1,439 2,173 325 317 Amounts attributable to ABB shareholders: Income from continuing operations, net of tax 1,043 1,514 291 204 Income from discontinued operations, net of tax 396 659 34 113 Net income 1,439 2,173 325 317 Basic earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax 0.49 0.71 0.14 0.10 Income from discontinued operations, net of tax 0.19 0.31 0.02 0.05 Net income 0.67 1.02 0.15 0.15 Diluted earnings per share attributable to ABB shareholders: Income from continuing operations, net of tax 0.49 0.71 0.14 0.10 Income from discontinued operations, net of tax 0.19 0.31 0.02 0.05 Net income 0.67 1.02 0.15 0.15 Weighted-average number of shares outstanding (in millions) used to compute: Basic earnings per share attributable to ABB shareholders 2,133 2,132 2,133 2,132 Diluted earnings per share attributable to ABB shareholders 2,135 2,139 2,137 2,134 Due to rounding, numbers presented may not add to the totals provided. See Notes to the Consolidated Financial Information 7 Q4 2019 FINANCIAL INFORMATION —