Information on the Company — Introduction About ABB ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The company’s solutions connect engineering know-how and software to optimize how things are manufactured, moved, powered, and operated. Building on more than 140 years of excellence, ABB’s more than 105,000 employees are committed to driving innovations that accelerate industrial transformation. 15 We operate in approximately 100 countries across three regions: Europe, the Americas, and Asia, Middle East and Africa, and generate revenues in numerous currencies. We are headquartered in Zurich, Switzerland, and we govern our company through our four Business areas: Electrification, Motion, Process Automation, and Robotics & Discrete Automation. For a breakdown of our consolidated revenues (i) by Business area, (ii) by geographic region, and (iii) by product type, see “Item 5. Operating and Financial Review and Prospects—Analysis of results of operations—Revenues” and “Note 23 - Operating segment and geographic data” to our Consolidated Financial Statements. Our principal corporate offices are located at Affolternstrasse 44, CH 8050 Zurich, Switzerland, telephone number +41 43 317 7111. Our agent for U.S. federal securities law purposes is ABB Holdings Inc., located at 305 Gregson Drive, Cary, North Carolina 27511. Our internet address is www.abb.com or global.abb. The information contained on or accessible from our website is not incorporated into this annual report, and you should not consider it to be a part of this annual report. The United States Securities and Exchange Commission (SEC) maintains a website at www.sec.gov which contains in electronic form each of the reports and other information that we have filed electronically with the SEC. History of the ABB Group The ABB Group was formed in 1988 through a merger between Asea AB and BBC Brown Boveri AG. Initially founded in 1883, Asea AB was a major participant in the introduction of electricity into Swedish homes and businesses and in the development of Sweden’s railway network. In the 1940s and 1950s, Asea AB expanded into the power, mining and steel industries. Brown Boveri and Cie. (later renamed BBC Brown Boveri AG) was formed in Switzerland in 1891 and initially specialized in power generation and turbines. In the early to mid ‑ 1900s, it expanded its operations throughout Europe and broadened its business operations to include a wide range of electrical engineering activities. In January 1988, Asea AB and BBC Brown Boveri AG each contributed almost all of their businesses to the newly formed ABB Asea Brown Boveri Ltd, of which they each owned 50 percent. In 1996, Asea AB was renamed ABB AB and BBC Brown Boveri AG was renamed ABB AG. In February 1999, the ABB Group announced a group reconfiguration designed to establish a single parent holding company and a single class of shares. ABB Ltd was incorporated on March 5, 1999, under the laws of Switzerland. In June 1999, ABB Ltd became the holding company for the entire ABB Group. This was accomplished by having ABB Ltd issue shares to the shareholders of ABB AG and ABB AB, the two companies that formerly owned the ABB Group. The ABB Ltd shares were exchanged for the shares of those two companies, which, as a result of the share exchange and certain related transactions, became wholly ‑ owned subsidiaries of ABB Ltd. ABB Ltd shares are currently listed on the SIX Swiss Exchange and the NASDAQ OMX Stockholm Exchange. On May 12, 2023, we filed the required Form 25 with the SEC to delist ABB’s American Depositary Shares (ADSs) from trading on the New York Stock Exchange (NYSE). In connection with the delisting from the NYSE which became effective May 23, 2023, we converted our ADS program from a sponsored Level II program into a sponsored Level I program. The new Level I ADSs were assigned a new stock ticker (ABBNY) upon delisting and are now traded on the over-the-counter (OTC) markets. ABB today As a global technology leader in electrification and automation enabling sustainability and resource efficiency, our offering is relevant for the global transition towards low-carbon energy, increased energy efficiency, and the transition to more adaptive manufacturing and automation, putting us right in the center of long-term secular trends. The ABB Purpose ABB's purpose is to enable a more sustainable and resource-efficient future with our technology leadership in electrification and automation. 16 Our core competencies Our leadership in resource efficiency is based on our core competencies, each of which constitutes a barrier to entry: decades-long domain expertise, cutting-edge technology and innovation as well as the ability to scale operations and distribution. With its long history, ABB not only invented or pioneered many power and automation technologies but has retained technology and market leadership in many of these areas. Being present in various vertical markets for decades with close long-term relationships with customers and channel partners has resulted in our unique deep domain expertise, enabling a thorough understanding of customers’ needs and operations. We continuously evolve our offering to remain a relevant and trusted partner to our customers. Our annual non-order related research and development spending in 2023 amounted to approximately 4.1 percent of revenues. We focus our research and development expenditures on key areas of innovation and have spent approximately $9.2 billion since the beginning of 2016, focusing on developing best-in-class products and services in the fields of electrification and automation with the goal of helping our customers to create resource-efficient value. All our four Business areas are market leaders in their respective areas being in either the number 1 or 2 position. Our global reach along with our extensive local presence assists us in scaling innovations to achieve stronger returns, which supports higher absolute investments for future growth. Active globally, our revenues are well-balanced across regions with customers served directly and through a strong channel partner network. The ABB Way The ABB Way is the glue that unites our Group and comprises a select number of common processes covering our business model, our people and culture, the ABB brand and our governance framework. It facilitates accountability, transparency and speed in ABB. In our operating model, the divisions represent the highest level of operating decisions. They are closest to their respective markets and customer needs. Each division progresses through the strategic mandates and priorities of stability and profitability before growth. In order to deploy full focus on organic and acquired growth to the extent of consolidating the market, the business’ structure should be robust and profitability should be at least in line with industry peers. Each division has full accountability for its results and carries the responsibility for business development, and research and development for leading technology to secure a number 1 or 2 market position. During 2023 we cemented the decentralized way of working at ABB within all our divisions, ensuring accountability, transparency and speed in decision making. Our focus area in 2024 will be to increasingly shift our focus to profitable growth, and further increase the number of our divisions with this mandate. Strong performance management is key in a decentralized business model. We apply a monthly scorecard system for the divisions and Business areas, based on a standardized set of Key Performance Indicators, to support full transparency of operational performance. It is accompanied by a limited select number of short-term incentives, including the mandatory target to make annual productivity improvements of at least 3-5 percent each year. The corporate functions focus on necessary strategic, financial and governance activities, with a lean headcount of approximately 800 employees. 17 Enhanced growth profile Over the past several years, we have taken significant actions to align our business portfolio around our Purpose, resulting in all divisions now active only within the markets of electrification and automation. Both of these markets are benefiting from increasing global investments to decarbonize, increase energy efficiency and to automate and increase flexibility in society, including industrial manufacturing, buildings and process industries. Additionally, we have increased the proportion of sales stemming from short-cycle businesses, meaning a reduced proportion from project-related activities, which we believe should reduce the risk and volatility in our earnings. This ongoing shift towards better quality of revenues is now an integral part of governance and business execution. The responsibility for growth has been fully transferred to the divisions, as they are closest to customers. This includes both organic and acquired growth. The divisions have the best insights into current and future customer needs and are accountable for building their respective business accordingly. With more divisions transitioning over time from stability and profitability to growth, we expect to see a gradual strengthening of our growth profile. Finally, environmental, social and governance (ESG) drivers are accelerating and translating into increased demand for our electrification and automation offering. The demand for electricity is growing ten times as fast as other energy sources, resulting in approximately 50 percent higher average annual investments into distribution networks over the next seven years (source: IEA World Energy Outlook 2023, Announced Pledges Scenario). The share of low-carbon sources in the global energy mix is expected to increase to approximately 70 percent by 2050 from only 20 percent today (source: IEA World Energy Outlook 2023, Announced Pledges Scenario). The need to improve energy efficiency has never been more relevant, from both the perspective of sustainable operations and reducing operating costs in a high energy cost environment. Investments in energy efficiency are expected to increase 46 percent per year over the next seven years versus the seven previous years (source: IEA World Energy Outlook 2023, Announced Pledges Scenario). Today approximately 45 percent of the world’s electricity is converted into motion by electric motors yet only approximately 20 percent of the world’s electric motors are optimized through the control of drives. Lastly, the global number of working age people (25 to 64 years) per retiree (65 years or over) is expected to fall by about 20 percent over the next ten years (source: United Nations World Population Prospects 2019), supporting demand for robotics and automation solutions. We believe ABB’s offering is well positioned to address these trends. — Businesses Our markets ABB is a technology leader in electrification and automation with a comprehensive digitalized offering of electrification, motion and automation solutions. Our exposure to customers is geographically balanced while catering to multiple end-markets and segments. We believe our customer offering is well positioned to benefit from secular growth drivers, including urbanization, labor shortage, shift to electrification, automation and robotization, as well as other data and digitalization trends. We are focused on creating superior customer value through our comprehensive, modular offering, combining traditional products and services with software-enabled products and systems as well as digital services and software that we sell both separately and combined as scalable solutions. Our advanced software is a key differentiation of our digital offering and about 55 percent of our approximately 7,500 employees in research and development are active in software development. 18 The majority of our businesses are market leaders within their respective segments. We believe market leadership is critical, as it provides the opportunity for price leadership, which in turn supports profitability, enabling us to invest further in research and development to sustain our technological leadership. For a discussion of the geographic distribution of our total revenues, see “Item 5. Operating and Financial Review and Prospects—Analysis of results of operations—Revenues.” Industry market Approximately half of our revenues are derived from customers within the industrial segment where we serve production facilities and factories all around the world, from process industries such as oil and gas, pulp and paper as well as mining, to discrete industries including automotive, food and beverage and consumer electronics. Demand for our electrification and automation offerings with embedded digital solutions increased as the energy crisis and tight labor markets served as a prominent reminder to companies of the importance of energy efficiency and flexibility in automated production. This has accelerated customer demand for the digital services and solutions we offer. In discrete industries, we saw a normalization of customers’ order patterns following a period of pre-buying due to extended delivery lead times as a result of the supply chain constraints in 2022. Demand in the automotive segment remained at a high level due to broadly accelerating investments in the EV segment, while the general industry and consumer-related robotics segments declined. Late-cycle process industries were strong across nearly all customer segments. We saw particular strength in oil & gas-related demand. Strength was also noted in refining, petrochemicals and the energy-related low-carbon segments. Transport & infrastructure market Approximately one-third of our customers operate in the transport & infrastructure market. Our expertise provides efficient, reliable and sustainable solutions for these customers, with a focus on energy efficiency and reduced operating costs. In transport & infrastructure, there was very strong order development across data centers. The buildings segment saw weakness in all three regions in residential-related demand. Demand in the commercial construction segments varied by geography, where the U.S. and Europe remained stable through most of the year but weakness was noted in China towards the latter part of the year. In the marine segment there were positive developments for the cruise ship sector as well as strong demand in general marine and ports. Utilities market We deliver solutions mainly for distribution utilities and renewables customers, while continuing to service conventional power generation customers with our control and automation solutions. During 2023, the renewables markets continued to see strong growth. Business levels in the conventional power generation market remained stable. Demand from electrical distribution utilities remained strong, with ongoing investments to increase grid reliability and resilience due to increased integration of renewables. We serve our customers through our operating divisions which are included in our Business areas. Developments in these Business areas are discussed in more detail below. Revenue figures presented in this Businesses section are before intersegment eliminations. 19 — Electrification Business area Overview Electrification provides leading electrical distribution and management technologies, solutions and services to electrify the world in a safe, smart and sustainable way. The portfolio includes medium- and low-voltage electrical components, switchgear, digital devices, enclosures, and circuit breakers, among others. With our products, solutions and services, we collaborate with customers to improve power delivery and security, enhance energy management, efficiency and operational reliability, as we seek to achieve a low carbon society. The Electrification Business area delivers products to end customers through a global network of channel partners and end customers. More than half of the Business area’s revenue is derived from distributors and approximately a quarter is derived from direct sales to end-users. The remaining revenues are generated from original equipment manufacturers (OEMs), engineering, procurement and construction (EPC) contracting companies, system integrators, utilities and panel builders. The proportion of direct compared to channel partner sales varies by segment, product technology and geographic markets. The Electrification Business area had approximately 50,300 employees as of December 31, 2023, and generated $14.6 billion of revenues in 2023. Customers The Electrification Business area serves a wide range of customer segments, including residential, commercial and industrial buildings, utilities, oil and gas, chemicals, data centers, renewables, food and beverage, transport and infrastructure, among others. From some of the world’s tallest buildings to the busiest airports, the Business area’s products and solutions cover a wide range of applications and business segments. Products and Services As of December 31, 2023, the Electrification Business area’s products and services are delivered through five operating divisions. The Business area divested its Power Conversion Division in July 2023, which designed, developed, and manufactured end-to-end power conversion solutions for mission-critical applications in the telecommunications, data center, and industrial sectors. The Distribution Solutions Division facilitates the efficient and reliable distribution, protection and control of power by improving electric power quality while strengthening the resilience of the grid. The Division offers segment-specific products and solutions that largely serve utilities, industry and infrastructure segments, often providing the requisite medium-voltage link between high-voltage transmission systems and low-voltage users. With ABB Ability™ enabled connected solutions at its core, the offering includes medium-voltage air- and gas-insulated switchgear (1 to 66 kilovolts), indoor and outdoor circuit breakers, reclosers, fuses, contactors, relays, instrument transformers, sensors, motor control centers, as well as low-voltage switchgear for the ANSI standard markets. The Smart Power Division provides energy distribution solutions for data centers, industrial and manufacturing plants, critical infrastructure and commercial buildings. The Division’s technical teams work closely with industry partners, delivering advanced solutions that support rapid growth, energy transition, and sustainability objectives. The Division’s portfolio includes industrial circuit breakers, low-voltage systems, motor starting applications, and safety devices like switches and relays. Its Power Protection unit supports the world’s largest data center companies with advanced energy-efficient UPS solutions. The Division’s ABB Ability™ Energy Manager provides a scalable, easy-to-use platform that helps organizations save energy and reduce CO 2 emissions. 20 The Smart Buildings Division enables optimization of energy efficiency, safety, security and comfort for any building type, through new installations or retrofit solutions. The Division offers integrated digital technologies to control HVAC, lighting, shutters, and security, in addition to energy distribution solutions including DIN rail products, enclosures and emergency lighting through to industrial plugs and sockets and conventional wiring accessories, accommodating for single family homes, multiple dwellings, commercial buildings, infrastructure and industrial applications. The Division’s highly innovative technologies and digital solutions serve rising global demand among real estate developers, owners, and investors for smart building technologies that optimize energy distribution and building automation. The scalable solutions aim to deliver significant sustainable and financial benefits, meeting social and environmental demands, while being able to address even the most complex of customers’ carbon reduction strategies. The Installation Products Division helps manage the connection, protection and distribution of electrical power from source to socket. The Division’s products are engineered to provide ease of installation and perform in demanding and harsh conditions, helping to ensure safety and continuous operation for utilities, businesses and people around the world. The Commercial Essentials product segment includes electrical junction boxes, commercial fittings, strut and cable tray metal framing systems for commercial and residential construction. The Premier Industrial product segment includes multiple product lines, such as Ty-Rap® cable ties, T&B Liquidtight Systems® protection products, PVC coated and nylon conduit systems, power connection and grounding systems, and cable protection systems of conduits and fittings for harsh and industrial applications. The Division also manufactures solutions for medium-voltage applications used in the utility market under its marquee brands including Elastimold™ reclosers and switchgear, capacitor switches, current limiting fuses, Homac™ distribution connectors, Hi-Tech Valiant™ full-range current limiting fuse for fire mitigation, faulted current indicators and distribution connectors, cable accessories and apparatus with products for overhead and underground distribution. Manufacturing includes made-to-stock and custom- made solutions. The Service Division partners with our customers to improve the availability, reliability, predictability and sustainability of electrical products and installations. The Division’s extensive service portfolio offers product care, modernization, and advisory services to improve performance, extend equipment lifetime and deliver new levels of operational and sustainable efficiency. We help customers keep resources in use for as long as possible, extracting the maximum value from them, and then recovering and regenerating products and materials at the end of their useful life. Sales and Marketing Sales and marketing is generally conducted within the divisions in the Electrification Business area. This enables the divisions to manage their respective end-to-end activities and create demand across all channels, products and solutions. They increase focus and speed for our customers to drive faster growth. Where necessary, the divisions work together on joint services, such as the management of accounts, channels, and segment-sales, engaging in a range of promotional activities, both internal and external. Competition The Electrification Business area’s principal competitors vary by product group and include Atkore, Chint, Eaton, Hager, Hubbell, Legrand, LS Electric, Mitsubishi Electric, nVent, Panasonic, Schneider Electric, Siemens and Vertiv. Capital Expenditures The Electrification Business area’s capital expenditures for property, plant and equipment totaled $386 million in 2023, compared to $343 million in 2022. Investments in 2023 principally related to real estate investments, capacity expansion, as well as equipment replacement and upgrades. Geographically, in 2023, Europe represented 53 percent of the capital expenditures, followed by the Americas (35 percent) and Asia, Middle East and Africa (12 percent). 21 — Motion Business area Overview The Motion Business area provides pioneering technology, products, solutions and related services to industrial customers to increase energy efficiency, improve safety and reliability, and maintain precise control over processes. The portfolio includes motors, generators and drives for a wide range of applications in all industrial sectors. The Motion Business area designs, manufactures and sells drives, motors, generators, and traction converters. Building on long-standing experience in electric powertrains, the Business area combines domain expertise and technology to deliver the optimum solution for a wide range of applications for a comprehensive range of industrial segments. In addition, the Business area, along with its channel partners, has an industry leading global service presence. The Motion Business area had approximately 22,300 employees as of December 31, 2023, and generated $7.8 billion of revenues in 2023. Customers The Motion Business area serves a wide range of customers in different industrial segments such as pulp and paper, oil and gas, metals and mining, food and beverage, HVAC, water and wastewater, transportation, power generation, marine and offshore. Products and Services The Motion Business area’s products and services are delivered through seven operating divisions. The Drive Products Division serves the industries and infrastructure segments with world-class drives and programmable logic controllers (PLC). With its products, global scale and local presence, the Division helps customers to improve energy efficiency, productivity and safety. The System Drives Division is the market leader in high-power, high-performance drives, drive systems and packages for industrial process and large infrastructure applications, and a leading supplier of power conversion equipment for renewable energy and other applications. The Division offers global support to help customers, partners and equipment manufacturers with asset reliability, performance improvement and energy efficiency in mission critical applications. The Service Division serves customers worldwide by maximizing uptime, extending product life cycle and enhancing the performance and energy efficiency of their electrical motion solutions. The Division is leading the way in digitalization by securely connecting motors and drives, increasing operational uptime and improving efficiency. The services offered make the difference for our customers and partners every day by helping keep their operations running profitably, safely and reliably. The Traction Division is a recognized leader in onboard propulsion technologies that drive innovation in rail, bus, and industrial vehicle electrification. A comprehensive range of high-performance and full lifecycle managed propulsion, auxiliary and energy storage solutions help improve energy efficiency and contribute to making transportation more sustainable. The IEC Low Voltage Division is a technology leader delivering a full range of energy-efficient low voltage motors, including ultra-efficient solutions such as IE5 SynRM (synchronous reluctance motors). Through a global footprint, domain expertise and rugged designs, the Division provides reliable technology that improves efficiency and productivity even in the most demanding applications . The Large Motors and Generators Division offers a comprehensive product portfolio of large AC motors and generators. The Division’s induction, synchronous and special design motors and synchronous generators 22 power critical applications across industry, infrastructure and marine transportation. Combining the best available materials with superior technology, the large motors and generators are designed to operate efficiently and reliably, even for challenging processes or applications and to have low life cycle costs. The NEMA Motors Division is a marketer, designer and manufacturer that offers Baldor-Reliance® industrial electric motors, primarily in North America. The Division focuses on quality, reliability and efficiency to provide a comprehensive offering of NEMA motors in the market across most industrial segments and applications. Sales and Marketing Sales are made both through direct sales forces and through channel partners, such as distributors and wholesalers, as well as installers, OEMs and system integrators. The proportion of direct sales to end users compared to channel partner sales varies among the different industries, products and geographic markets. Competition The principal competitors of the Motion Business area include Schneider Electric, Siemens, Toshiba, WEG Industries, Wolong and Danfoss. Capital Expenditures Capital expenditures in the Motion Business area for property, plant and equipment totaled $171 million in 2023, compared to $150 million in 2022. Principal expenditures in 2023 related to real estate investments, capacity expansion, equipment replacement and upgrades across various countries including Finland, Switzerland, the United States, China and India. Geographically, in 2023, Europe represented 54 percent of the capital expenditures, followed by the Americas (33 percent) and Asia, Middle East and Africa (13 percent). — Process Automation Business area Overview The Process Automation Business area provides a comprehensive range of integrated automation, electrical and digital systems and services for customers in the process, hybrid and maritime industries. These offerings, coupled with deep domain knowledge in each end market, help to optimize productivity, energy efficiency, sustainability and safety of industrial processes and operations. The Business area’s offering can be grouped into two categories, with approximately half of the offering related to solutions for new and brownfield projects and half related to service, mainly for the existing installed base. Process Automation also integrates offerings from the Electrification, Motion and Robotics & Discrete Automation Business areas into its projects. The Business area’s offerings are sold primarily through its direct sales force with a smaller share through partners and distributors. The Business area had approximately 21,100 employees as of December 31, 2023, and generated revenues of $6.3 billion in 2023. Customers The Process Automation Business area’s end customers include companies across process, hybrid and maritime industries. These industries include oil, gas, chemicals, mining, metals, cement, pulp and paper, pharmaceuticals, battery manufacturing, food and beverage, power generation, water, marine and ports. 23 Products and Services The Process Automation Business area offering includes an extensive portfolio of products, solutions, digital applications and services for the control of the simplest to the most complex and critical industrial processes and infrastructure. These systems can link various process and information flows, allowing customers to manage and control their entire production process based on real-time information. The Business area’s automation offering includes the distributed control system (DCS) ABB Ability™ System 800xA ® , which is also an electrical control system, a safety system and a collaboration enabler with the capacity to improve engineering efficiency, operator performance and asset utilization. Other control solutions include Symphony ® Plus (designed to address automation needs of the power and water industry segments) and the Freelance DCS solution. Components for basic automation solutions, process controllers, I/O modules, panels, and Human Machine Interfaces (HMI) are available through the Compact Product Suite offering. The product portfolio is complemented by a suite of ABB Ability™ Advanced Digital Services and by ABB Care, a subscription-based lifecycle management program that provides services to maintain and continually advance and enhance ABB’s distributed control systems and optimize customers’ lifecycle costs. The ABB Ability™ Genix Industrial Analytics and Artificial Intelligence Suite unlocks greater value by contextualizing and integrating data from IT, engineering, and operations systems to provide deep, meaningful and actionable insights. The portfolio is complemented by a range of industry-specific applications in each division. As of December 31, 2023, the Process Automation Business area’s products and services are delivered through four operating divisions. The Energy Industries Division serves a wide range of industrial sectors, including hydrocarbons, chemicals, pharmaceuticals, power generation and water. With its integrated solutions that automate, digitalize and electrify operations, the Division is committed to supporting traditional industries in their efforts to decarbonize. The Division also supports the development, integration and scaling up of new and renewable energy models. The Division’s goal is to help customers adapt and succeed in the rapidly changing global energy transition. Harnessing data, machine learning and artificial intelligence (AI), the Division brings over 50 years of domain expertise delivering solutions designed to improve energy, process and production efficiency, as well as reduce risk, operational cost and capital cost, while minimizing waste for customers, from project start-up and throughout the entire plant lifecycle. The Process Industries Division serves the mining, minerals processing, metals, cement, pulp and paper, battery manufacturing, and food and beverage, as well as their associated service industries. The Division brings deep industry domain expertise coupled with the ability to integrate both automation and electrical systems, increase productivity and reduce overall capital and operating costs for customers. For mining, metals and cement customers, solutions include specialized products and services, as well as total production systems. The Division designs, plans, engineers, supplies, installs and commissions integrated electrical and motion systems, including electric equipment, drives, motors, high power rectifiers and equipment for automation and supervisory control within a variety of areas including mineral handling, mining operations, aluminum smelting, hot and cold steel applications and cement production. The offering for the pulp and paper industries includes control systems, quality control systems, drive systems, on-line sensors, actuators and field instruments. Digitalization solutions, including collaborative operations and augmented reality, help improve plant and enterprise productivity, and reduce maintenance and energy costs. 24 The Marine & Ports Division serves the shipping and ports industries through its extensive portfolio of integrated systems and solutions that improve the flexibility, reliability and energy efficiency of vessels and container terminals. By coupling power, propulsion, automation, marine software and services that ensure maximum vessel uptime, the Division is well positioned to help the marine industry to achieve its decarbonization targets while improving the profitability and sustainability of our customers’ business throughout the entire lifecycle of vessels. With ABB Ability™ Marine software solutions and ABB Ability™ Collaborative Operations Centers around the world, shipowners and operators can run their fleets at lower fuel and maintenance costs, while improving crew, passenger and cargo safety as well as overall productivity of their operations. Further, the Division delivers automation, electrical systems and digital solutions for container and bulk cargo handling, from ship to gate. These solutions help terminal operators meet the challenge of larger ships, taller cranes and bigger volumes per call, and make terminal operations safer, greener and more productive. The Measurement & Analytics Division is among the world’s leading manufacturers and suppliers of smart instrumentation and analyzers, working at the heart of industrial digital transformation. The Measurement & Analytics Division’s portfolio consists of analyzers measuring compositions of gases and liquids; instrumentation measuring process variables such as temperature, pressure, flow, and level; force measurement solutions measuring parameters such as flatness, thickness, and tension; and advanced digital solutions for device management, device health check and predictive maintenance. The Measurement & Analytics Division serves key industries such as oil and gas, chemical, water and wastewater, power, hydrogen, batteries, as well as the marine industry. The Division enables the optimization of industrial processes by providing and analyzing data collected from sensing and smart measurement devices. Parameters such as emission levels and production inputs are measured by providing ‘before’ and ‘after’ values, enabling efficient operations and environmental sustainability through measurement. Sales and Marketing The Process Automation Business area’s sales are primarily made through its direct sales force as well as third-party channel partners, such as distributors, system integrators and OEMs. The majority of revenues are derived through the Business area’s own direct sales channels. Competition The Process Automation Business area’s principal competitors vary by industry or product group. Competitors include: Emerson, Honeywell, Schneider Electric, Siemens, Siemens Energy, Yokogawa, Endress + Hauser, Kongsberg and Valmet. Capital Expenditures The Process Automation Business area’s capital expenditures for property, plant and equipment totaled $66 million in 2023, compared to $100 million in 2022. Principal investments in 2023 primarily related to equipment replacement and upgrades, mainly in the Energy Industries Division and Measurement & Analytics Division. Geographically, in 2023, Europe represented 68 percent of the capital expenditures, followed by the Americas (19 percent) and Asia, Middle East and Africa (13 percent). — Robotics & Discrete Automation Business area Overview The Robotics & Discrete Automation Business area provides robotics, and machine and factory automation including products, software, solutions and services. Revenues are generated both from direct sales to end users as well as from indirect sales mainly through system integrators and machine builders. The Robotics & Discrete Automation Business area had approximately 11,300 employees as of December 31, 2023, and generated $3.6 billion of revenues in 2023. 25 Customers The Robotics & Discrete Automation Business area serves a wide range of customers. The main customers are active in industries such as automotive, machine building, metalworking, electronics, food and beverage and logistics. They include end-users such as manufacturers, system integrators and machine builders. Products and Services The Robotics & Discrete Automation Business area’s products and services are delivered through two operating divisions. The Robotics Division offers a wide range of products, solutions and services including robots, autonomous mobile robots, robotics application cells and smart systems, field services, spare parts, digital services, engineering and operations software. This offering provides customers with increased productivity, quality, flexibility and simplicity for operations, e.g. to meet the challenge of making smaller lots of a larger number of specific products in shorter cycles for today’s dynamic global markets and coping with increasing uncertainty. Robots are also used in activities or environments which may be hazardous to employee health and safety, such as repetitive or strenuous lifting, dusty, hot or cold rooms, or painting booths and can help customers address labor shortages. Robotics solutions are used in a wide range of segments from automotive OEMs, automotive suppliers, electronics, general industry, consumer goods, food and beverage, and warehouse/logistics center automation. They are increasingly deployed in service applications for life sciences care, restaurants and retail. Typical robotic applications include welding, material handling, machine tending, machining, painting, picking, packing, palletizing and assembly. The Machine Automation Division offers integrated automation solutions based on programmable logical controllers, industrial PCs, servo motion, industrial transport systems and machine vision. It also provides software for engineering and optimization. The range of solutions are mainly used by machine builders for various types of series machines, e.g. for plastics, metals, printing and packaging. Sales and Marketing Sales are made both through direct sales as well as through third ‑ party channel partners, such as system integrators and machine builders. The proportion of direct sales compared to channel partner sales varies among the different industries, product technologies and geographic markets. Competition Competitors of the Robotics & Discrete Automation Business area vary by offering and include companies such as Fanuc, Kuka, Yaskawa, Epson, Dürr, Stäubli, Universal Robots, Rockwell Automation, Siemens, Mitsubishi Electric and Beckhoff. Capital Expenditures The Robotics & Discrete Automation Business area’s capital expenditures for property, plant and equipment totaled $71 million in 2023, compared to $86 million in 2022. Principal investments in 2023 were primarily related to the expansion of the North American robotics headquarters and manufacturing facility in the United States and production enhancements in both the Robotics Division in China and the Machine Automation Division in Austria. In 2023, Europe represented 55 percent of capital expenditures, followed by the Americas (24 percent) and Asia, Middle East and Africa (21 percent). 26 — Corporate and Other Corporate and Other includes core headquarter functions, real estate activities, Corporate Treasury, functional shared services for human resources, finance and information services and other minor business activities. Certain strategic investments managed by ABB Technology Ventures are also included in Corporate. The remaining activities of certain EPC projects which we are completing and are in a wind-down phase are reported as non-core businesses within Corporate and Other. The historical business activities of certain divested businesses are also presented in Corporate and Other. These include the high-voltage cables business, steel structures and certain EPC contracts relating to the oil and gas industry. In addition, effective January 1, 2023, the E-mobility Division became a separate operating segment and is reported in Corporate and Other for all periods presented. Corporate headquarters and stewardship activities include the operations of our corporate headquarters in Zurich, Switzerland, as well as limited corporate ‑ related activities in certain countries. These activities cover staff functions with group ‑ wide responsibilities, such as accounting and financial reporting, corporate finance and corporate treasury, taxes, internal audit, legal and integrity, compliance, risk management and insurance, corporate communications, human resources, information systems and investor relations. We operate shared service centers globally through a network of hubs which consist of services in the areas of human resources, finance and information services. We also staff and maintain front offices in various countries. The costs of these shared services are incurred primarily for the benefit of the Business areas, which are charged for their use of such services and the related number of employees are allocated to the Business areas. Similarly, a significant portion of the shared corporate overhead costs are charged to the operating businesses. We also provide services to third parties under transitional service agreements in relation to certain divested businesses, the largest of which is Hitachi Energy (the former Power Grids business). The E-mobility Division is contributing to a zero-emission mobility future with smart, reliable and emission-free electric vehicle charging solutions including market leading charging hardware, ABB Ability™ enabled digital services and energy and fleet management solutions. ABB E-mobility offers a leading portfolio of EV charging solutions from smart chargers for the home to high-power chargers for the highway stations of the future, solutions for the electrification of fleets and opportunity charging for electric buses and trucks. Corporate and Other had approximately 2,900 employees at December 31, 2023, of which approximately 2,100 pertain to the E-mobility Division and our other non-core businesses. — Discontinued operations In 2020, we completed the divestment of our Power Grids business to Hitachi Ltd (Hitachi). As a result, the Power Grids business was reported as discontinued operations in the Consolidated Financial Statements. See “Note 3 - Discontinued operations” to our Consolidated Financial Statements. — Capital expenditures Total capital expenditures for property, plant and equipment and intangible assets (excluding intangibles acquired through business combinations) amounted to $770 million, $762 million and $820 million in 2023, 2022 and 2021, respectively. In 2023 and 2022, capital expenditures were 1 percent and 6 percent lower, respectively, than depreciation and amortization. Excluding acquisition-related amortization, capital expenditures were 37 percent higher in 2023 and 30 percent higher in 2022, respectively, than depreciation and amortization. 27 Capital expenditures in 2023 primarily focused in mature markets, reflecting the geographic distribution of our existing production facilities. Capital expenditures in Europe and the Americas in 2023 were driven primarily by upgrades of existing production facilities and capacity expansion, mainly in the U.S., Germany, Italy, Finland, Switzerland and Austria. In Asia, Middle East and Africa, capital expenditures were made primarily to increase production capacity by investing in new or expanded facilities, the highest of which were in China and India. The share of emerging markets capital expenditures as a percentage of total capital expenditures in 2023 and 2022 was 23 percent and 24 percent, respectively. At December 31, 2023, construction in progress for property, plant and equipment was $713 million, mainly in the U.S., Germany, Switzerland and Finland, while at December 31, 2022, construction in progress for property, plant and equipment was $586 million, mainly in the U.S., Germany, Switzerland, Finland, Austria, China and Sweden. Our capital expenditures relate primarily to property, plant and equipment and are funded primarily through cash flows from operating activities. For 2024, we estimate the expenditures for property, plant and equipment will be higher than our annual depreciation and amortization charge, excluding acquisition-related amortization. — Supplies and raw materials We purchase a variety of supplies and products which contain raw materials for use in our production and project execution processes. The primary materials used in our products, by weight, are copper, steel, aluminum, mineral oil and various plastics. We also purchase a wide variety of fabricated products, electronic components and systems. We operate a worldwide supply chain management network with employees dedicated to this function in our Business areas, divisions and in key countries. Our supply chain operations consists of a number of teams, each focusing on different product categories. These category teams are tasked with taking advantage of opportunities to leverage the scale of ABB on a global, Business area and/or division level, as appropriate, to optimize the efficiency of our supply networks in a sustainable manner. Our supply chain management organization’s activities and objectives include: • pool and leverage procurement of materials and services, • provide transparency of ABB’s global spending through a comprehensive performance and reporting system linked to our enterprise resource planning (ERP) systems, • strengthen ABB’s supply chain network by implementing an effective product category management structure and extensive competency-based training, and • monitor and develop our supply base to ensure sustainability, both in terms of materials and processes used. We buy many categories of products which contain copper, steel, aluminum, crude oil and other commodities. Continuing global economic growth in many emerging economies, coupled with the volatility in foreign currency exchange rates, has led to significant fluctuations in these raw material costs over the last few years. While we expect global commodity prices to remain highly volatile, we expect to offset some market volatility through the use of long-term contracts and global sourcing. 28 We seek to mitigate the majority of our exposure to commodity price risk by entering into derivative contracts. For example, we manage copper, steel, aluminum, and silver price risk using principally swap contracts based on prices for these commodities quoted on leading exchanges. ABB’s hedging policy is designed to safeguard margins by minimizing price volatility and providing a stable cost base during order execution. In addition to using derivatives to reduce our exposure to fluctuations in raw materials prices, in some cases we can reduce this risk by incorporating changes in raw materials prices into the prices of our end products (through price escalation clauses). Throughout 2023, we continued to optimize our value chain in all aspects of our business, while ensuring high standards of quality and delivery. Despite some continuing global supply chain challenges such as rising costs, port congestion, material access issues and some geopolitical uncertainty, we were able to mitigate these difficulties with efforts from our dedicated category teams, supply chain management personnel and Business area task forces. We also enhanced our rigorous supplier onboarding process involving comprehensive integrity due diligence and competitive bidding for our potential and existing vendors. This helps in reducing the risk of fraud, corruption and non-compliance as well as in securing the best value and quality for our products and services. As a result, we were able to minimize the impact of supply chain disruptions, maintain a high level of customer satisfaction and support our business growth. Through our Sustainable Supply Base Management (SSBM) approach, we assess environment, social and governance (ESG) risks, compliance, and the performance of our suppliers in these areas to make sure they meet our expectations. These expectations are detailed in the ABB Supplier Code of Conduct and the ABB Code of Conduct. In 2023, the Supplier Code of Conduct was revised and updated to reflect the increasing legal and stakeholder requirements as well as our Sustainability Framework 2030. In August 2012, the SEC issued its final rules regarding “Conflict Minerals”, as required by section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. We initiated conflict mineral processes in 2013 and have continuously aimed at improving and tailoring the processes to our value chain. We continue to work with our suppliers and customers, to enable us to comply with the rules and disclosure obligations. Further information on ABB’s Conflict Minerals policy and supplier requirements can be found under “Responsible Minerals Sourcing” at https://global.abb/group/en/about/supplying/responsible-minerals. Furthermore, ABB has developed a list of prohibited and restricted substances to ensure that the materials we use do not contribute to environmental degradation. We update this list regularly in line with international regulations, including the U.S. Toxic Substances Control Act (TSCA) regulations and California Proposition 65. More information on our Product Material Compliance program and supplier requirements can be found under “Material Compliance” at https://global.abb/group/en/about/supplying/material-compliance. As announced in 2022, ABB is working closely with its most impactful suppliers to reduce GHG emissions along the supply chain. In 2023, we partnered with EcoVadis, a leading service provider in the ESG domain, to engage with suppliers for GHG emission data collection and supplier education on this topic. — Patents and trademarks While we are not materially dependent on any one of our intellectual properties, as a technology-driven company, we believe that intellectual property rights are crucial to protect the assets of our business. We continue to file new patent applications to protect our new inventions. As of December 31, 2023, we have a portfolio of approximately 26,000 pending patent applications and granted patents, of which approximately 5,700 are pending applications. This portfolio includes approximately 3,600 utility models and design rights, of which approximately 170 are pending applications. In 2023, we filed over 650 priority patents, utility model and design applications, each covering a unique invention or unique angle on an invention. Additionally, we filed approximately 1,900 secondary patents, utility model and design applications, each extending the coverage of a previously filed priority application. 29 Based on our existing intellectual property strategy, we believe that we have adequate control over our core technologies. The “ABB” trademarks and logo are protected in all of the countries in which we operate. We proactively assert our intellectual property rights to safeguard the reputation associated with the ABB technology and brand. While these intellectual property rights are fundamental to all of our businesses, there is no dependency of the business on any single patent, utility model or design application. — Sustainability activities Sustainability is key to our purpose which is to enable a more sustainable and resource-efficient future with our technology leadership in electrification and automation. We believe that sustainable development means progress towards a healthier and more prosperous world today and for future generations. This means balancing the needs of society, the environment and the economy. To achieve this, we act and embed this approach to business across our value chain, including our own operations, our suppliers, our customers and the communities we serve. We strive to always be an exemplary corporate citizen wherever we operate. Our Sustainability Agenda consists of three pillars: Enabling a low-carbon society by helping to reduce carbon emissions through our technologies which target sectors that account for three quarters of global energy consumption. Our ambition is to support our customers in avoiding emissions. We intend to have our updated targets validated against the Science Based Targets initiative’s new Net-Zero Standard in 2024. We are following the World Business Council for Sustainable Development (WBCSD) guidance on avoided emissions and are hence no longer focusing on a limited number of cases linked to the 100 megatons emissions avoidance but rather on our complete portfolio of offerings. Our net-zero commitments for emissions reductions in our own operations and across our value chain are: • reduce CO 2 e (CO 2 equivalent) emissions across our own operations by 80 percent by 2030, and by 100 percent by 2050 compared to baseline year 2019, and • reduce CO 2 e (CO 2 equivalent) emissions upstream and downstream in our value chain by 25 percent by 2030, and by 90 percent by 2050 compared to baseline year 2022. Preserving resources by embedding circularity, waste and water management, biodiversity and land-use considerations across our value chain. Our solutions reduce waste, provide increased recyclability and foster reusability. Our 2030 commitments are: • ensure that at least 80 percent of ABB products and solutions are covered by our Circularity Approach, and • send zero waste from our own operations to landfill. Promoting social progress we seek to lift up workers, communities and societies. To achieve this, we aim to cause zero harm to our people and contractors, increase the proportion of women in senior management roles, achieve a top-tier employee engagement score, respect and promote human rights along our value chain and expand our programs for community engagement. Our 2030 commitments: • pursue the ambition that no harm is caused to our people and contractors – we aim for a gradual reduction in lost time from incidents, • increase proportion of women in senior management roles to 25 percent from a 2019 baseline, within our comprehensive diversity and inclusion framework, • achieve a top-tier employee engagement score in our industry, and • expand programs for community engagement. 30 All three pillars of our Sustainability Agenda are underpinned by our commitment to embedding a culture of integrity and transparency across our value chain. We have established four concrete targets: • create a global framework for assessing and mitigating third-party integrity risks through risk-based due diligence and life cycle monitoring by 2030, • build a global integrity program underpinned by accountability for integrity and an adaptive risk management strategy gained from insights through targeted learnings, transparent reporting and monitoring by 2030, • cover at least 80 percent of our supply spending in focus countries by our Sustainable Supply Base Management (SSBM) approach by 2030. The 2025 mid-term target is to cover at least 80 percent of our high-risk supply spending in these focus countries by SSBM. This approach includes regular assessments of environmental, social and governance performance, and • link sustainability targets to executives’ variable pay. Reflecting the importance of sustainability as a strategic topic, ABB’s Board of Directors reviews and approves our Sustainability Agenda and related targets. The Governance and Nomination Committee of the Board of Directors is responsible for overseeing ABB’s Sustainability Agenda (including corporate social responsibility, health, safety and environment), while the Compensation Committee ensures that ABB’s executive compensation policies are appropriately aligned with its Sustainability Agenda. In 2023, we continued to make good progress towards our sustainability targets. We see a further improvement in the share of electricity from renewable sources we use, from 81 percent in 2022 to 94 percent in 2023. We have reduced our own emissions by 76 percent to 151 kilotons since 2019. 86 percent of our waste in 2023 was recycled, and 6.3 percent was sent to landfill, down from 6.4 percent in 2022. Of the 338 ABB sites mapped in 2023, 61 face an extremely high level of water stress and 55 face a high level of water stress. For all ABB sites in stressed watersheds, total water withdrawals in 2023 amounted to 1,242 kilotons, representing 49 percent of our total water withdrawals. There are 12 projects currently under way to improve water management across ABB. In 2023, ABB recorded one workplace-related fatality and zero travel-related fatalities. An investigation into the fatal incident is currently underway, and we will draw on the lessons learned to prevent any future recurrence. In spite of this fatality, the total number of serious and high-potential incidents decreased compared to 2022. In 2023, our lost time incident frequency rate decreased from 0.14 per 200,000 hours worked in 2022 to 0.13 in 2023. The number of women in senior management positions increased from 17.8 percent in 2022 to 21 percent in 2023. Our employee engagement score increased from 76 (out of 100) in 2022 to 77 in 2023, while the response rate increased from 82 percent to 84 percent. We continued to provide impactful support for community- building initiatives across all regions. Our community engagement initiatives will be expanded around four focus areas (4Es): education, emergency and disaster relief, empowering communities, and the environment and conservation. ABB is committed to respecting and promoting the dignity and human rights of all people, as expressed in the International Bill of Human Rights. In December 2023, we published an updated edition of ABB’s Human Rights Policy, which includes our documented HRDD (Human Rights Due Diligence) Framework. The update was drafted concurrently with business area risk and HRDD reviews and incorporates feedback from internal and external stakeholders and subject-matter experts gathered during 2023, along with the requirements of the latest relevant international frameworks, standards and legislation governing responsible business practices. In 2023, all Executive Committee members had at least two sustainability-related goals (e.g., CO 2 e emission reduction, safety, female leadership) in their individual component of the Annual Incentive Plan (AIP). 31 — Regulation Our operations are subject to numerous governmental laws and regulations including those governing antitrust and competition, corruption, the environment, securities transactions and disclosures, import and export of products, currency conversions and repatriation, taxation of foreign earnings and earnings of expatriate personnel and use of local employees and suppliers. As a reporting company under Section 12 of the Exchange Act, we are subject to the FCPA’s anti-bribery provisions with respect to our conduct around the world. Our operations are also subject to the 1997 OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. The convention obliges signatories to adopt national legislation that makes it a crime to bribe foreign public officials. Those countries which have adopted implementing legislation and have ratified the convention include the U.S., several European nations and certain other countries in which we have significant operations. We conduct business in certain countries known to experience governmental corruption. While we are committed to conducting business in a legal and ethical manner, our employees or agents have taken, and in the future may take, actions that violate the U.S. FCPA, legislation promulgated pursuant to the 1997 OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, antitrust laws or other laws or regulations. These actions have resulted and could result in monetary or other penalties against us and could damage our reputation and, therefore, our ability to do business. For more information, see “Item 8. Financial Information—Legal Proceedings”. The U.S. Iran Threat Reduction and Syria Human Rights Act of 2012 requires companies with securities registered in the U.S. to disclose information relating to certain transactions with Iran. In 2018, certain non-U.S. subsidiaries of ABB, in accordance with applicable laws, provided electrical equipment, automation systems and on-site services to OEMs, distributors, panel builders, EPC contracting companies and other customers for Iranian business. ABB discontinued its Iranian business on November 4, 2018. As previously disclosed, ABB is completing minor work on a long-term contract which is being performed in line with applicable sanctions. The revenues attributable to this work in 2023 amounted to approximately $0.2 million. — Organizational structure ABB Ltd is the ultimate parent company of the ABB Group. It is the sole shareholder of ABB Asea Brown Boveri Ltd which directly or indirectly owns the other companies in the ABB Group. The table below both sets forth, as of December 31, 2023, the name, place of incorporation and ownership interest of the significant direct and indirect subsidiaries of ABB Ltd, Switzerland. ABB’s operational group structure is described above in the “Businesses” section of Item 4. Name Location Country Group Interest % ABB Australia Pty. Limited Moorebank Australia 100.00 ABB Group Holdings Pty. Ltd. Moorebank Australia 100.00 ABB Group Investment Management Pty. Ltd. Moorebank Australia 100.00 ABB AG Wiener Neudorf Austria 100.00 B&R Holding GmbH Eggelsberg Austria 100.00 B&R Industrial Automation GmbH Eggelsberg Austria 100.00 ABB N.V. Zaventem Belgium 100.00 32 Name Location Country Group Interest % ABB AUTOMAÇÃO LTDA. Sorocaba Brazil 100.00 ABB ELETRIFICAÇÃO LTDA. Sorocaba Brazil 100.00 ABB Bulgaria EOOD Sofia Bulgaria 100.00 ABB Electrification Canada Inc. Saint-Laurent Canada 100.00 ABB Inc. Saint-Laurent Canada 100.00 ABB S.A. Santiago Chile 100.00 ABB (China) Investment Limited Beijing China 100.00 ABB (China) Ltd. Beijing China 100.00 ABB Beijing Drive Systems Co. Ltd. Beijing China 90.00 ABB Beijing Switchgear Limited Beijing China 60.00 ABB Electrical Machines Ltd. Shanghai China 100.00 ABB Engineering (Shanghai) Ltd. Shanghai China 100.00 ABB LV Installation Materials Co. Ltd. Beijing Beijing China 85.70 ABB Shanghai Free Trade Zone Industrial Co., Ltd. Shanghai China 100.00 ABB Shanghai Motors Co. Ltd. Shanghai China 75.00 ABB Xiamen Low Voltage Equipment Co. Ltd. Xiamen China 100.00 ABB Xiamen Switchgear Co. Ltd. Xiamen China 66.52 ABB Xinhui Low Voltage Switchgear Co. Ltd. Xinhui China 90.00 ABB s.r.o. Prague Czech Republic 100.00 ABB A/S Skovlunde Denmark 100.00 ABB for Electrical Industries (ABB ARAB) S.A.E. Cairo Egypt 100.00 Asea Brown Boveri S.A.E. Cairo Egypt 100.00 ABB AS Jüri Estonia 100.00 ABB Oy Helsinki Finland 100.00 ABB France Cergy Pontoise France 99.84 ABB SAS Cergy Pontoise France 100.00 ABB AG Mannheim Germany 100.00 ABB Beteiligungs- und Verwaltungsgesellschaft mbH Mannheim Germany 100.00 ABB Stotz-Kontakt GmbH Heidelberg Germany 100.00 ABB Striebel & John GmbH Sasbach Germany 100.00 B + R Industrie-Elektronik GmbH Bad Homburg Germany 100.00 Busch-Jaeger Elektro GmbH Lüdenscheid Germany 100.00 ABB Global Business Services and Contracting India Private Limited Bangalore India 100.00 ABB Global Industries and Services Private Limited Bangalore India 100.00 ABB India Limited Bangalore India 75.00 ABB Limited Dublin Ireland 100.00 ABB E-mobility S.p.A. Milan Italy 74.70 ABB S.p.A. Milan Italy 100.00 ABB K.K. Tokyo Japan 100.00 ABB Ltd. Seoul Korea, Republic of 100.00 ABB Electrical Control Systems S. de R.L. de C.V. Monterrey Mexico 100.00 33 Name Location Country Group Interest % ABB Mexico S.A. de C.V. San Luis Potosi Mexico 100.00 Asea Brown Boveri S.A. de C.V. San Luis Potosi Mexico 100.00 ABB B.V. Rotterdam Netherlands 100.00 ABB E-mobility B.V. Delft Netherlands 74.70 ABB Finance B.V. Rotterdam Netherlands 100.00 ABB Holdings B.V. Rotterdam Netherlands 100.00 ABB AS Fornebu Norway 100.00 ABB Electrification Norway AS Skien Norway 100.00 ABB Holding AS Fornebu Norway 100.00 ABB Business Services Sp. z o.o. Warsaw Poland 99.94 ABB Sp. z o.o. Warsaw Poland 99.94 Industrial C&S of P.R. LLC Arecibo Puerto Rico 100.00 ABB Electrical Industries Co. Ltd. Riyadh Saudi Arabia 65.00 ABB Pte. Ltd. Singapore Singapore 100.00 ABB Holdings (Pty) Ltd. Modderfontein South Africa 100.00 ABB Investments (Pty) Ltd. Modderfontein South Africa 51.00 ABB South Africa (Pty) Ltd. Modderfontein South Africa 74.91 Asea Brown Boveri S.A. Madrid Spain 100.00 ABB AB Västerås Sweden 100.00 ABB Electrification Sweden AB Västerås Sweden 100.00 ABB Norden Holding AB Västerås Sweden 100.00 ABB Asea Brown Boveri Ltd Zurich Switzerland 100.00 ABB Capital AG Zurich Switzerland 100.00 ABB E-mobility Holding Ltd Zurich Switzerland 74.70 ABB Schweiz AG Baden Switzerland 100.00 ABB Ltd. Taipei Taiwan (Chinese Taipei) 100.00 ABB Elektrik Sanayi A.S. Istanbul Turkiye 99.99 ABB Industries (L.L.C.) Dubai United Arab Emirates 49.00 (1) ABB Industries FZE Dubai United Arab Emirates 100.00 ABB Holdings Limited Warrington United Kingdom 100.00 ABB Limited Warrington United Kingdom 100.00 ABB E-mobility Inc. Wilmington, DE United States 74.70 ABB Finance (USA) Inc. Wilmington, DE United States 100.00 ABB Holdings Inc. Cary, NC United States 100.00 ABB Inc. Cary, NC United States 100.00 ABB Installation Products Inc. Memphis, TN United States 100.00 ABB Motors and Mechanical Inc. Fort Smith, AR United States 100.00 ABB Treasury Center (USA), Inc. Wilmington, DE United States 100.00 Edison Holding Corporation Wilmington, DE United States 100.00 Industrial Connections & Solutions LLC Cary, NC United States 100.00 (1) Company consolidated as ABB exercises full management control. 34 — Description of property As of December 31, 2023, we occupy real estate in around 100 countries throughout the world. The facilities consist mainly of manufacturing plants, office buildings, research centers and warehouses. A substantial portion of our production and development facilities is situated in China, the U.S., Germany, Finland, Austria, Sweden, Italy, Canada, Poland, India and Mexico. We also own or lease other properties, including office buildings, warehouses, research and development facilities and sales offices in many countries. We own substantially all of the machinery and equipment used in our manufacturing operations. From time to time, we have a surplus of space arising from acquisitions, production efficiencies and/or restructuring of operations. Normally, we seek to sell such surplus space which may involve leasing property to third parties for an interim period. The net book value of our property, plant and equipment at December 31, 2023, was $4,142 million, of which machinery and equipment represented $1,353 million, land and buildings represented $2,085 million and construction in progress represented $704 million. We believe that our current facilities are in good condition and are adequate to meet the requirements of our present and foreseeable future operations.