Highlights 2018

Fundamental changes to business model and organizational structure announced:
  • Focus of portfolio on digital industries through divestment of Power Grids to Hitachi
  • Simplification of business model and structure
  • Shape four leading businesses aligned with customer patterns
Key Figures:
  • Total orders +8%(1), up in all divisions and regions
  • Revenues +4%(1), strong growth in Robotics and Motion
  • Order backlog +6%(1) at end of year, book-to-bill ratio(2) at 1.03x
  • Operational EBITA margin 10.9%(2), impacted by a combined 250 basis points due to stranded costs, charges for legacy non-core projects and GEIS dilution
  • Reported net income at $2.173 billion, -2%
  • Cash flow from operating activities at approx. $3 billion
ABB Ability™ recognized by industry analysts as #1 globally in Distributed Control Systems and Enterprise Asset Management software
ABB named #8 in Fortune magazine’s “Change the World” rankings
Board proposes 10th consecutive dividend increase to CHF 0.80 per share

Key Figures

$ in millions, unless otherwise indicated

FY 2018

FY 2017 Recast

Orders

28,590

25,034

Revenues

27,662

25,196

Income from operations

2,226

2,230

Operational EBITA(2)

3,005

2,817

as % of operational revenues

10.9%

11.2%

Income from continuing operations, net of tax

1,575

1,519

Net income attributable to ABB

2,173

2,213

Basic EPS ($)

1.02

1.04

Operational EPS ($)(2)

1.33

1.25

Cash flow from operating activities

2,924

3,799

2018 Orders by region

Europe, 37%
AMEA(3), 34%
Americas, 29%

Services and other revenues as % of total revenues 2018 (circle/line chart)
2010–2018
Dividends (CHF per share)
Dividends (CHF per share) (bar chart)

(1) On a comparable basis, see the “Supplemental information” section of this annual report.
(2) For non-GAAP measures, see the “Supplemental information” section of this annual report.
(3) Asia, Middle East and Africa
(4) Proposed