ABB Annual Report 2012 PDF - ABB Group Annual Report 2012

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Proposed appropriation of available earnings(CHF in thousands) 2012 2011Net income for the year 1,173,180 1,094,007Carried forward from previous year 3,297,518 2,203,511Earnings available to the Annual General Meeting 4,470,698 3,297,518Ordinary reserves – –Capital contribution reserve – –Balance to be carried forward 4,470,698 3,297,518The Board of directors proposes to carry forward the available earnings in the amount of CHF 4,470,698 thousand.On February 14, 2013, the Company announced that a proposal will be put to the April 2013 Annual General Meetingto convert capital contribution reserve to other reserves in the amount of CHF 0.68 per share and distribute a dividendfor the 2012 fiscal year of CHF 0.68 per share.150 Financial review | ABB Annual Report 2012
Report of the Statutory AuditorTo the General Meeting of ABB Ltd, ZurichAs statutory auditor, we have audited the accompanying financial statementsof ABB Ltd, which comprise the balance sheet, income statement and notesfor the year ended December 31, 2012.Board of Directors’ responsibilityThe Board of Directors is responsible for the preparation of the financial statementsin accordance with the requirements of Swiss law and the company’sarticles of incorporation. This responsibility includes designing, implementingand maintaining an internal control system relevant to the preparation offinancial statements that are free from material misstatement, whether due tofraud or error. The Board of Directors is further responsible for selecting andapplying appropriate accounting policies and making accounting estimatesthat are reasonable in the circumstances.Auditor’s responsibilityOur responsibility is to express an opinion on these financial statements basedon our audit. We conducted our audit in accordance with Swiss law and SwissAuditing Standards. Those standards require that we plan and perform theaudit to obtain reasonable assurance whether the financial statements are freefrom material misstatement.OpinionIn our opinion, the financial statements for the year ended December 31, 2012comply with Swiss law and the company’s articles of incorporation.Report on other legal requirementsWe confirm that we meet the legal requirements on licensing accordingto the Auditor Oversight Act (AOA) and independence (article 728 CO andarticle 11 AOA) and that there are no circumstances incompatible with ourindependence.In accordance with article 728a paragraph 1 item 3 CO and Swiss AuditingStandard 890, we confirm that an internal control system exists, whichhas been designed for the preparation of financial statements according tothe instructions of the Board of Directors.We further confirm that the proposed appropriation of available earningscomplies with Swiss law and the company’s articles of incorporation.We recommend that the financial statements submitted to you be approved.Ernst & Young LtdAn audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements. The procedures selecteddepend on the auditor’s judgment, including the assessment of the risks ofmaterial misstatement of the financial statements, whether due to fraud or error.In making those risk assessments, the auditor considers the internal controlsystem relevant to the entity’s preparation of the financial statements in orderto design audit procedures that are appropriate in the circumstances, butnot for the purpose of expressing an opinion on the effectiveness of the entity’sinternal control system. An audit also includes evaluating the appropriatenessof the accounting policies used and the reasonableness of accounting estimatesmade, as well as evaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion.Nigel JonesLicensed audit expert(Auditor in charge)Zurich, SwitzerlandMarch 14, 2013Thomas StenzLicensed audit expertABB Annual Report 2012 | Financial review 151
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Building on our technology leadersh
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This is ABBABB is one of the world
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Chairman and CEO letterDear shareho
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We will also be looking at ways to
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HighlightsResilient performance thr
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As of March 1, 2013Executive Commit
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12 Corporate governance report | AB
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1. Principles1.1 General principles
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The following table sets forth, as
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3.2 Changes to the share capitalIn
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4.3 Shareholders’ dividend rights
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As at December 31, 2012, the member
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Brice Koch was appointed Executive
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10. Auditors10.1 AuditorsErnst & Yo
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28 Remuneration report | ABB Annual
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ABB’s success depends on its abil
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1.3 Board compensation in 2012Compe
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Annual base salaryThe base salary f
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Historical payout of performance co
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Base salaryShort-term variablecompe
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6.2 EC ownership of ABB sharesand o
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42 Financial review | ABB Annual Re
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Operating and financial reviewand p
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In May 2012, the Low Voltage Produc
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In a market environment in which ne
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We record provisions for our contin
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Goodwill and other intangible asset
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We also incur expenses other than c
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In 2011, orders in the Power Produc
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We determine the geographic distrib
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In 2012, “Capital gains, net” w
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Divisional analysisPower ProductsTh
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Continued pricing pressure in some
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OrdersIn 2012, orders were flat due
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The geographic distribution of orde
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In 2011, revenues increased, driven
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Throughout 2012 and 2011, the inves
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Current liabilitiesDecember 31, ($
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Total cash disbursements for the pu
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Consolidated Financial StatementsCo
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Consolidated Balance SheetsDecember
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Consolidated Statements of Changes
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Notes to theConsolidated Financial
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Note 2Significant accounting polici
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Note 3Acquisitions and increasesin
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Note 3Acquisitions and increasesin
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Note 5Financial instrumentsCurrency
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Note 5Financial instruments, contin
Page 102 and 103: Note 6Fair valuesRecurring fair val
Page 104 and 105: Note 7Receivables, net, continued
Page 106 and 107: Note 9Other non-current assets“Ot
Page 108 and 109: Note 11Goodwill and other intangibl
Page 110 and 111: Note 12Debt, continuedThe 4.625% EU
Page 112 and 113: Note 14Leases, continuedNote 15Comm
Page 114 and 115: Note 15Commitments and contingencie
Page 116 and 117: Note 16Taxes, continuedIn 2012, 201
Page 118 and 119: Note 16Taxes, continuedAt December
Page 120 and 121: Note 17Employee benefits, continued
Page 122 and 123: Note 17Employee benefits, continued
Page 124 and 125: Note 18Share-based paymentarrangeme
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Page 128 and 129: Note 19Stockholders’ equityAt bot
Page 130 and 131: Note 21Other comprehensive incomeTh
Page 132 and 133: Note 23Operating segment andgeograp
Page 138 and 139: Report of the Statutory Auditor on
Page 140 and 141: Financial Statements of ABB Ltd, Zu
Page 142 and 143: Note 6Stockholders’ equityShareca
Page 144 and 145: Note 10Board of Directors compensat
Page 146 and 147: Note 11Executive Committeecompensat
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Page 150 and 151: Note 12Share ownership of ABB byBoa
Page 154 and 155: Investor informationABB Ltd share p
Page 156 and 157: Stock exchange listingsABB Ltd is l
Page 158 and 159: 2012 price trend for ABB Ltd shares
Page 160: ABB LtdCorporate Communications P.O
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ABB Annual Report 2012 PDF - ABB Group Annual Report 2012

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