ABB Annual Report 2012 PDF - ABB Group Annual Report 2012

HighlightsResilient performance through the cycle:In local currencies, orders and revenuesincreased despite difficult businessclimateMore profitable service revenues grewfaster than total revenues, in line with ourstrategic initiative to increase the totalshare of service businessSuccessful execution on costs againsupported profitability in line with targetsOne of the strongest balance sheetsin the sector on robust cash generation;Board proposes 5 percent increase individendActions under way to secure higher andmore consistent earnings in the powerbusinessesCustomer satisfaction increasedby 32 percent, as measured by theNet Promoter Score surveyInvestment in research and developmentrose to $1.5 billion, or 3.7 percent ofrevenuesContinued technology leadership,including circuit breaker for high voltagedirect current and synchronous reluctancemotors for high-efficiency industrialapplicationsFurther strengthened our automationportfolio: Thomas & Betts, acquired inMay, contributed about $280 million inoperational EBITDA; integration on track(1)(2)Total ABB Group ($ millions unless otherwise indicated)2012 2011Orders 40,232 40,210Revenues 39,336 37,990Earnings before interest and taxes (EBIT) 4,058 4,667as % of revenues 10.3% 12.3%Operational EBITDA (1) 5,555 6,014as % of operational revenues 14.2% 15.8%Net income (attributable to ABB) 2,704 3,168Basic earnings per share ($) 1.18 1.38Dividend per share in CHF (proposed for 2012) 0.68 0.65Cash flow from operating activities 3,779 3,612Free cash flow (2) 2,555 2,593as % of net income 94% 82%Cash return on invested capital (2) 12% 14%Number of employees 146,100 133,600Please refer to Note 23 to ABB’s Consolidated Financial Statements for a definition of operational EBITDA.Please refer to page 154 for a definition of free cash flow and cash return on invested capital.08 Highlights | ABB Annual Report 2012