Schneider Electric Se · EURONEXT:SU
Schneider Electric — Q3 2013 Earnings Presentation
28 slides from Schneider Electric's earnings presentation, Oct 25, 2013
Slide 1: Third Quarter 2013 Revenues
Third Quarter 2013 Revenues October 25, 2013
Slide 2: Disclaimer
Disclaimer All forward-looking statements are Schneider Electric management’s present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For a detailed des
Slide 3: Agenda: Highlights, revenues by business, by region, outlook
4 Highlights 6 Q3 revenues by business 13 Q3 revenues by region 15 Outlook Schneider Electric - Investor Relations – Third Quarter 2013 Revenues – October 25, 2013 3
Slide 4: Highlights
Highlights
Slide 5: Q3 revenues of €5.9bn, organic growth up 0.7%, in line with H1 trends
Q3 revenues of €5.9bn, organic growth up 0.7%, in line with H1 trends Performance was driven by China and North America ● Asia-Pacific was up 4%, mainly thanks to China ● North America continued to grow in line with first half, up 3% ● Western Europe remained difficult, down 6% Partner and Infrastru
Slide 6: Q3 revenues by business
Q3 revenues by business
Slide 7: Q3 shows positive growth in most businesses
Q3 shows positive growth in most businesses Analysis of change in Group revenues Scope Fx +1.9% -5.8% Partner Infrastructure Industry IT Buildings +1.8% +0.2% -1.8% +0.3% +1.4% 6,099 5,901 -3.2% Organic +0.7% Q3 2012 Q3 2013 Negative FX impact on 2013 revenues now expected at €800-900m (versus €600m
Slide 8: Partner Business
Partner Business Solid performance outside Western Europe at +5% Analysis of change Product business grew thanks to sustained momentum in North and South America and good construction and industrial end markets in China, where “Go-West” strategy remained Organic Scope Fx a growth driver. However, we
Slide 9: Infrastructure Business
Infrastructure Business Up, driven by service growth Analysis of change Product business grew thanks to investment in utilities and infrastructures in Africa, Middle East and the US. Scope Fx +11.4% -5.1% 1,414 Solution business was up slightly as the Group +8.1% generated good growth in infrastruct
Slide 10: Industry Business
Industry Business Solid performance with OEMs, challenges in some end-user segments Product business was in slight decline, Analysis of change attributable to Western Europe, partly due to destocking. Organic Scope 1,153 +0.2% -2.0% Fx Solution business was up on demand for -5.7% services, MV drives
Slide 11: IT Business
IT Business Down on soft market and distributor destocking in Russia Analysis of change Product business declined due to soft market in mature countries and distributor destocking in Russia, while Asia-Pacific recorded growth. Organic 971 -1.8% Scope Fx -0.4% -7.3% Solution business saw good service
Slide 12: Buildings Business
Buildings Business Slightly up this quarter Product business was stable with mixed Analysis of change trends. Organic Scope In the Solution business, systems were 434 +0.3% -2.9% Fx impacted by weakness in construction markets -5.7% in most mature countries, while the business 398 benefited from inv
Slide 13: Q3 revenues by region
Q3 revenues by region
Slide 14: China and North America drove growth
China and North America % +x% % of Group revenues in Q3 Organic growth in Q3 drove growth +x% Total growth in Q3 Western Europe: saw distributor destocking in some countries. Spain and Italy continued North America: Growth remained solid in to post double-digit decline due to the the US residential
Slide 15: Outlook
Outlook
Slide 16: Foreign exchange update, Invensys closing update, 2013 outlook
Foreign exchange update Invensys closing update 2013 outlook Schneider Electric - Investor Relations – Third Quarter 2013 Revenues – October 25, 2013 16
Slide 17: USD & CNY naturally hedged, sensitivity to other currencies still exists
USD & CNY naturally hedged, sensitivity to other currencies still exists in case of strong volatility 2012 Group revenues by currency Group FX overview (100 = €23.9bn) Exposure to ~50 different currencies Non-EUR: ~75% of 2012 revenues Following 25 currencies EUR Margin sensitivity to USD & CNY mana
Slide 18: Exceptional volatility of new economy currencies will impact margin in 2013
Exceptional volatility of new economy currencies will impact margin in 2013 “Next 20” currencies composite1 Unusual currency moves (evolution against EUR, 100 = 2012 average) Many currencies from new economies depreciated against the EUR during the 104 summer 102 Depreciation of Argentine Peso by 19
Slide 19: Foreign exchange update, Invensys closing update, 2013 outlook
Foreign exchange update Invensys closing update 2013 outlook Schneider Electric - Investor Relations – Third Quarter 2013 Revenues – October 25, 2013 19
Slide 20: Invensys acquisition fills a key gap in the business portfolio of the Group
Invensys acquisition fills a key gap in the business portfolio of the Group Invensys transaction update Key priorities Assuming a completion of the transaction: • Invensys technologies complete the • More than 99% of Invensys Key Group’s offer and reach across its shareholders approved the offer mil
Slide 21: Foreign exchange update, Invensys closing update, 2013 outlook
Foreign exchange update Invensys closing update 2013 outlook Schneider Electric - Investor Relations – Third Quarter 2013 Revenues – October 25, 2013 21
Slide 22: 2013 outlook
2013 outlook Recent trends show continued growth in North America and China and persistent weakness in Western Europe. Certain countries, such as India, Russia and Indonesia, are temporarily impacted by the volatility of their currencies. Given the uncertain timeline of the completion of Invensys tr
Slide 23: Appendices
Appendices
Slide 24: Q3 2013 revenues performance
Q3 2013 revenues performance €m Q3 2013 Organic Scope1 Fx Reported Partner 2,144 +1.4% +0.2% -5.6% -4.0% Infrastructure 1,414 +1.8% +11.4% -5.1% +8.1% Industry 1,066 +0.2% -2.0% -5.7% -7.5% IT 879 -1.8% -0.4% -7.3% -9.5% Buildings 398 +0.3% -2.9% -5.7% -8.3% Group 5,901 +0.7% +1.9% -5.8% -3.2% €m Q3
Slide 25: 9M 2013 revenues performance
9M 2013 revenues performance €m 9M 2013 Organic Scope1 Fx Reported Partner 6,319 -0.3% 0.0% -2.6% -2.9% Infrastructure 4,042 +3.0% +9.4% -2.6% +9.8% Industry 3,230 +0.1% -1.2% -3.1% -4.2% IT 2,565 -1.0% -0.1% -4.1% -5.2% Buildings 1,175 -1.1% -1.3% -2.6% -5.0% Group 17,331 +0.3% +1.6% -2.9% -1.0% €m
Slide 26: H1 2013 adjusted EBITA margin change on constant FX and scope basis
H1 2013 adjusted EBITA margin change on constant FX and scope basis €m Revenues Adj. EBITA % of Revenues H1 2012 reported 11,408 1,556 13.6% H1 2013 organic 11,418 1,556 13.6% Chg vs. H1 2012 +0.1% = Stable FX (157) (38) Scope 169 14 H1 2013 reported 11,430 1,532 13.4% Schneider Electric - Investor
Slide 27: Contacts & agenda
Contacts & agenda Anthony Song– Head of Investor Relations Tel: +33-1-41-29-83-29 anthony.song@schneider-electric.com Grégoire Rougnon – Senior Investor Relations Manager Tel: +33-1-41-29-81-25 gregoire.rougnon@schneider-electric.com February 20, 2014 2013 Annual Results & Investor Day Schneider Ele
Slide 28: Help people make the most of their energy
Help people make the most of their energy