UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of December 2023
Commission File Number 001-16429
ABB Ltd
(Translation of registrant’s name into English)
Affolternstrasse 44, CH-8050, Zurich, Switzerland
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F
☒
Form 40-F
⬜
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
⬜
Note:
annual report to security holders.
Indication by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
⬜
Note:
document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the
registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country
exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required
to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject
of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
⬜
No
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If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
This Form 6-K consists of the following:
1.
Press release issued by ABB Ltd dated November 30, 2023, titled “ABB Capital Markets Day 2023: Setting new
standards”.
2
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FROSINONE, ITALY, NOVEMBER 30, 2023
ABB Capital Markets Day 2023:
Setting new standards
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improvements
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ABB is hosting its Capital Markets Day today at its Electrification site in Frosinone, Italy. At the event,
CEO Björn Rosengren, CFO Timo Ihamuotila, as well as the Presidents of ABB’s four business areas
will give an update on ABB’s successful transformation, financial targets and how the company will
benefit from key secular trends across its business areas. In addition, ABB’s Group Head of
Sustainability will provide an update on the company’s sustainability agenda, including more ambitious
2030 and 2050 net-zero targets.
Björn Rosengren said: “During the transformation period over the past three years, we aligned the ABB
business portfolio to our purpose of enabling a more sustainable and resource-efficient future through
our technology leadership in electrification and automation. We have achieved strong improvements in
financial and sustainability performance during this phase, supported by increased accountability,
transparency and speed thanks to our ABB Way operating model.
“Having set new standards, we are now coming out of this transformation period, and the majority of our
divisions have progressed towards a strategic growth mandate. They now focus on capturing the full
potential of what in my view is a market sweet spot, at the heart of the transition towards electrification,
energy security, energy efficiency, automation and digitalization. Achieving our previous margin target a
year earlier than planned, and being a more agile unit with fast decision-making gives us the confidence
to formulate stronger ambitions and lift our margin target. I am convinced that ABB is extremely well
positioned – now and in future.”
Higher ambitions following transformation phase
As part of its updated financial framework, ABB is lifting its comparable revenue growth target to
5-7 percent through the economic cycle (from 3-5 percent previously). The target for acquired growth
remains unchanged at 1-2 percent. The company is also raising its target for annual operational EBITA
margin to 16-19 percent (from ≥15 percent previously) and updating its annual ROCE target to
>18 percent (from 15-20 percent previously). In addition, the company is sharpening its objective for
basic EPS growth through the economic cycle to at least high single-digit (from Basic EPS growth >
revenue growth previously). ABB is also confirming its target of ~100% free cash flow conversion to net
income.
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The update in growth ambitions is based on both external and internal factors including accelerating
demand for sustainability-driven electrification and automation solutions as the world moves towards
common emissions targets aligned with the 1.5°C target. Additional support for higher growth is
grounded in new ways of working with ABB’s divisions that are accountable for growth and
decision-making closer to the market as well as a reshaped portfolio around sustainability and resource
efficiency through electrification and automation.
The Group has increased the share of its divisions that are in growth mode now comprising
approximately 70 percent of the Group’s revenues. The focus is on both organic growth, as well as
M&A opportunities that can fill technology gaps, complement divisions’ offering for high growth markets,
provide access to new geographies or enable market consolidation. ABB is aiming at 5 to 10 small to
mid-size bolt-on acquisitions per year.
Returns and cash generation driven by growth ambitions
Timo Ihamuotila said: “We expect that our higher growth will also lead to higher profitability and cash
generation. As a lever to reaching our new financial targets, we are taking the next step on our journey
towards further improved quality of our revenues as well as capital efficiency and productivity. At the
same time our capital allocation priorities remain unchanged.”
ABB will also continue to invest in digital where it creates synergies with the company’s offering. As of
2022, approximately 57 percent of orders were related to the software and digitally enabled offering.
Approximately 60 percent of R&D resources are focused on digital solutions which the company will
continue to strengthen with bolt-on acquisitions. Between 2020 and 2023 ABB made 26 venture
investments in the areas of technology and digital.
ABB is reiterating its target of maintaining a strong investment grade rating. Its capital allocation
principles remain unchanged: funding organic growth through research & development, channel and
capex investments; paying a rising, sustainable dividend per share over time; executing value-creating
acquisitions; and when applicable returning additional cash to shareholders through share buybacks. In
the past 10 years ABB has returned more than $28 billion to shareholders – either via dividends or
share buybacks.
Sustainability: Ambitious 2030 and 2050 science-based net-zero targets
ABB’s technologies are supporting all relevant sectors to optimize, electrify and decarbonize, enabling
the energy transition to a net-zero future. In line with this mission, the company is today providing an
update on how it is strengthening and accelerating its sustainability agenda with new targets and
ambitions.
Björn Rosengren said: “At ABB we have been enabling energy efficiency and electrification for over
140 years. Today, we are putting our leading technologies in electrification, automation, and
digitalization to work to accelerate the energy transition. Our sustainability agenda is fully aligned with
this mission. It focuses on enabling a low-carbon society, preserving resources, and promoting social
progress in collaboration with our customers, suppliers, and partners.”
ABB CAPITAL MARKETS DAY 2023:
SETTING NEW STANDARDS
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ABB is taking a rigorous science-based net-zero targets approach in line with the net-zero standard of
the Science Based Targets initiative (SBTi). The company has submitted its new targets to SBTi with
validation expected in 2024. These include 1.5°C-aligned Scope 1 and 2 targets aiming at a CO2e
emissions reduction of 80 percent by 2030 and 100 percent by 2050 versus a 2019 baseline. On a
12-month rolling average, ABB has now achieved a 72 percent reduction in Scopes 1 and 2 CO2e
emissions versus 2019. Additionally, the company has set new Scope 3 CO2e emissions targets aiming
at a reduction of 25 percent by 2030 and 90 percent by 2050 versus a 2022 baseline.
With this more stringent approach, ABB is moving away from former carbon neutrality targets, which
included the use of carbon offsets.
Following the latest WBCSD avoided emissions guidance, ABB has also updated its ambition in this
area and aims to enable its customers to avoid 600 megatons of CO2e emissions through products sold
from 2022 to 2030. ABB helped its customers avoid 70 Mt of CO2e in 2022, across industry,
transportation, buildings, data centers, and more.
Note to editors:
8am CET today via the following link: https://capitalmarketsday.abb.com/page/2861310/registration
Further details on ABB’s sustainability agenda can be found at
https://global.abb/group/en/sustainability
ABB
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 ~105,000 employees are committed to driving innovations that
accelerate industrial transformation. www.abb.com
ABB CAPITAL MARKETS DAY 2023:
SETTING NEW STANDARDS
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Important notice about forward-looking information
This press release includes forward-looking information and statements which are based on current expectations,
estimates and projections about the factors that may affect our future performance, including the economic
conditions of the regions and industries that are major markets for ABB. These expectations, estimates and
projections are generally identifiable by statements containing words such as “anticipates”, “expects,” “believes,”
“estimates,” “plans”, “targets”, “aims” or similar expressions. However, there are many risks and uncertainties,
many of which are beyond our control, that could cause our actual results to differ materially from the
forward-looking information and statements made in this press release and which could affect our ability to achieve
any or all of our stated targets or anticipated transactions. Some important factors that could cause such
differences include, among others, business risks associated with the volatile global economic environment and
political conditions, costs associated with compliance activities, market acceptance of new products and services,
changes in governmental regulations and currency exchange rates and such other factors as may be discussed
from time to time in ABB Ltd’s filings with the U.S. Securities and Exchange Commission, including its Annual
Reports on Form 20-F. Although ABB Ltd believes that its expectations reflected in any such forward-looking
statement are based upon reasonable assumptions, it can give no assurance that those expectations will be
achieved. The foregoing list of factors is not exclusive and undue reliance should not be placed upon any
forward-looking statements, including projections, which speak only as of the date made.
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For more information please contact:
Media Relations
Phone: +41 43 317 71 11
Email: [email protected]
Investor Relations
Phone: +41 43 317 71 11
Email: [email protected]
ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
ABB LTD
Date: December 1, 2023.
By:
/s/ Ann-Sophie Nordh
Name:
Ann-Sofie Nordh
Title:
Group Senior Vice President and
Head of Investor Relations
Date: December 1, 2023.
By:
/s/ Richard A. Brown
Name:
Richard A. Brown
Title:
Group Senior Vice President and
Chief Counsel Corporate & Finance