ABB Annual Report 2012 PDF - ABB Group Annual Report 2012

Stock exchange listingsABB Ltd is listed on the SIX Swiss Exchange, NASDAQ OMX Stockholm and the New York Stock Exchange.The global ISIN codefor the ABB shareCH 001 222 171 6Ticker symbols for ABB LtdSIX Swiss ExchangeNASDAQ OMX StockholmNew York Stock Exchange (NYSE)ABBNABBABBTicker symbols for ABB Ltdat BloombergSIX Swiss ExchangeNASDAQ OMX StockholmNew York Stock Exchange (NYSE)ABBN VXABB SSABB USTicker symbols for ABB Ltdat ReutersSIX Swiss ExchangeNASDAQ OMX StockholmNew York Stock Exchange (NYSE)ABBN.VXABB.STABB.NCredit rating for ABB Ltdas of February 28, 2013Standard & Poor’sLong-term corporate credit rating ALong-term senior unsecured debt AShort-term corporate credit rating A–1Outlook: StableMoody’sLong-term senior unsecured ratingShort-term debt ratingOutlook: StableA2Prime-1**ABB Ltd’s financing subsidiaries have also a Prime-1 rating, with the exception of ABB Capital B.V.which has a Prime-2 rating.These credit ratings are subject to revision at any time. ABB does not have any other agreements with internationallyrecognized statistical rating organizations to provide long-term and short-term credit ratings.2011–2015 Financial targetsand definitionsABB has published financial targets for the period 2011 to 2015, which are available at www.abb.com/investorcenter.These comprise compound annual growth rates for revenues and earnings per share, as well as free cash flow as apercentage of net income, cash return on invested capital and operational EBITDA margin.At the divisional level, ABB provides organic revenue growth targets on a compound annual growth rate basis as well asprofitability targets in the form of Operational EBITDA margins. In December 2012, ABB announced the repositioningof Power Systems division to focus on higher-margin products, systems, services and software activities, together withrevised targets for the division.Operational EBITDA and operational EBITDA margin are defined in Note 23 to ABB’s Consolidated Financial Statements.Free cash flow is calculated as net cash provided by operating activities adjusted for i) changes in financing and othernon-current receivables, net, (included in Other investing activities) ii) purchases of property, plant and equipment andintangible assets, and iii) proceeds from sales of property, plant and equipment (included in Other investing activities).Cash return on invested capital is calculated as the sum of i) net cash provided by operating activities and ii) interestpaid; divided by the sum of i) fixed assets (before related accumulated amortization and depreciation), and ii) net workingcapital: less deferred tax liabilities recognized in certain acquisitions. Fixed assets is the sum of i) Property, plant andequipment, net, ii) Goodwill, iii) Other intangible assets, net, and iv) Investments in equity-accounted companies. Networking capital is the sum of i) Receivables, net, ii) Inventories, net, and iii) Prepaid expenses; less the sum of i) Accountspayable, trade, ii) Billings in excess of sales, iii) Employee and other payables, iv) Advances from customers, andv) Accrued expenses.154 Financial review | ABB Annual Report 2012