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Schneider Electric — Q3 2014 Earnings Presentation
27 slides from Schneider Electric's earnings presentation, Oct 29, 2014
Slide 1: Third Quarter 2014 Revenues
Third Quarter 2014 Revenues October 29, 2014 1
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
04 Highlights 08 Q3 revenues by business 14 Q3 revenues by region 16 Invensys update 18 Full year 2014 Targets Schneider Electric – Investor Relations – Third Quarter 2014 Revenues – October 29, 2014 3
Slide 4: Highlights
Highlights Schneider | «
Slide 5: Improvement in Q3. Revenues reached €6.3bn, up +7.0% in total, +1.6% org.
Improvement in Q3. Revenues reached €6.3bn, up +7.0% in total, +1.6% org. Invensys on track. Revenues up +3.9% org. ex. Infrastructure led by early cycle businesses. IT turned positive ● Industry and Buildings & Partner grew across all regions, revenues up +5.4% and +4.2% organically respectively ●
Slide 6: This quarter, our Planet & Society Barometer reaches 9.20/10
This quarter, our Planet & Society Barometer reaches 9.20/10 9.20/10 10 Performance of our 8.85 Planet & Society 8.04 8 Q4 2014 Barometer 7.51 8 target 6.42 6.25 6.38 6.09 6 4.94 3.87 3.94 5.50 4 3.85 2 0 Actual Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Target 2012 2013 2014 A performing Planet & Society
Slide 7: Our performance and commitment are recognized
Our performance and commitment are recognized Indicators and objectives 2014 Q2 2014 Q3 2014 Highlights this quarter Planet Dow Jones Sustainability Index Selected indicators (DJSI) World and Europe ● 75% of our product revenue achieved with 70.9% 73.2% For the second year, Schneider Electric is Gre
Slide 8: Q3 Revenues by business
Q3 Revenues by business 8
Slide 9: Q3 organic growth led by early cycle businesses and IT improved
Q3 organic growth led by early cycle businesses and IT improved Analysis of change in Q3 Group revenues (in €m) Organic Scope Fx +6.8% -1.4% 6,285 +1.6% +7.0% Buildings & Industry Infrastructure Partner IT +5.4% -5.8% +4.2% +1.2% 5,875 Q3 2013 Q3 2014 Restated1 Given the recent depreciation of the e
Slide 10: Buildings & Partner kept its momentum, growing in all regions
Buildings & Partner kept its momentum, growing in all regions Analysis of change in Q3 Revenues (€m) North America was up, driven by the U.S. thanks to continued investment in the residential market and data centers and a slow Scope Fx recovery of non-residential construction, while Mexico remained
Slide 11: Industry led the Group growth in Q3, up +5.4% organically
Industry led the Group growth in Q3, up +5.4% organically Analysis of change in Q3 Revenues (€m) Western Europe achieved strong growth thanks to demand from export-oriented OEMs and commercial initiatives, despite slowing Scope Fx 1,381 industry indicators. +40.3% -1.5% +44.2% North America continue
Slide 12: Infrastructure revenues still impacted by weak utilities. Orders were up high single digit
Infrastructure revenues still impacted by weak utilities. Orders were up high single digit Analysis of change in Q3 Revenues (€m) Orders were up high single digit in the quarter, driven by long- cycle projects. The Group also sees some project delivery delays by customers due to the uncertain econom
Slide 13: IT showed sequential improvement, turning positive year on year organically
IT showed sequential improvement, turning positive year on year organically Analysis of change in Q3 Revenues (€m) Distributor destocking eased in Russia. Western Europe observed solid growth, driven by IT investments. In North America, revenues were down but order intake was up Organic Scope +1.2%
Slide 14: Q3 Revenues by region
Q3 Revenues by region 14
Slide 15: Western Europe showed signs of stabilization, though fragile. All other regions grew
Western Europe showed signs of stabilization, % % of Group revenues in Q3 though fragile. All other regions grew +x% +x% Organic growth in Q3 Total growth in Q3 Western Europe showed signs of stabilization, though fragile, North America: The U.S. accelerated thanks to continued up marginally for the
Slide 16: Invensys update
Invensys update Sciyneider | 1
Slide 17: Good performance at Invensys. Integration on track
Good performance at Invensys. Integration on track Order intake (€m) Revenues (€m) Flat org. excl. Slightly up org. excl. unusual large orders1 China nuclear 444 414 404 372 Q3 2013 Q3 2014 Q3 2013 Q3 2014 1. Include China Nuclear change order and Indian large project Underlying orders were flat thi
Slide 18: Full year 2014 Targets
Full year 2014 Targets Sciyneider | 1
Slide 19: 2014 targets maintained
2014 targets maintained In the third quarter, the Group saw a fragile stabilization in Western Europe, improvement in North- America compensating the slowdown in China and a mixed picture in other new economies. In a globally challenging environment, the Group’s early cycle businesses continued to g
Slide 20: Appendices
Appendices 20
Slide 21: Definitions
Definitions ● EBITA: EBIT before amortization and impairment of purchase accounting intangibles and impairment of goodwill ● Adjusted EBITA: EBITA before restructuring and other operating income and expenses Schneider Electric – Investor Relations – Third Quarter 2014 Revenues – October 29, 2014 21
Slide 22: Q3 2014 revenues performance
Q3 2014 revenues performance €m Q3 20131 Q3 2014 Organic Scope FX Reported Buildings & Partner 2,623 2,762 +4.2% +2.4% -1.3% +5.3% Industry 958 1,381 +5.4% +40.3% -1.5% +44.2% Infrastructure 1,415 1,273 -5.8% -2.5% -1.7% -10.0% IT 879 869 +1.2% -2.0% -0.3% -1.1% Group 5,875 6,285 +1.6% +6.8% -1.4% +
Slide 23: 9M 2014 revenues performance
9M 2014 revenues performance €m 9M 20131 9M 2014 Organic Scope FX Reported Buildings & Partner 7,708 7,864 +3,8% +2.3% -4.1% +2.0% Industry 2,895 4,085 +5.2% +40.1% -4.2% +41.1% Infrastructure 4,043 3,637 -6.4% +0.3% -3.9% -10.0% IT 2,565 2,399 -0.9% -2.1% -3.5% -6.5% Group 17,211 17,985 +0.9% +7.6%
Slide 24: H2 2013 Restated Figures by division
H2 2013 Restated1 Figures by division Buildings Industry Infrastructure IT Corporate Group €m & Partner Costs Revenues 5,270 1,931 3,100 1,756 12,057 EBITA Adj. 1,002 368 369 361 -247 1,853 EBITA Adj. Margin (%) 19.0% 19.1% 11.9% 20.6% 15.4% 1: H2 2013 figures were restated for Delixi full consolida
Slide 25: The Planet & Society Barometer
The Planet & Society Barometer Our 2012-2014 detailed sustainability scorecard, as of Q3 2014 The Planet & Society Barometer Start Results Results Target (objectives for 2014) 01/2012 Q2 2014 Q3 2014 12/2014 Overall score (out of 10) 3.00 8.85 9.20 8/10 Planet Carbon 10% CO2 savings on transportatio
Slide 26: Contacts & agenda
Contacts & agenda Anthony Song – Head of Investor Relations Tel: +33-1-41-29-83-29 anthony.song@schneider-electric.com Alexis Denaud – Senior Investor Relations Manager Tel: +33-1-41-29-51-24 alexis.denaud@schneider-electric.com February 19, 2015 Full-year 2014 Results and 2015 Investor Day Schneide
Slide 27: Make the most of your energy
Make the most of your energy SM ©2014 Schneider Electric. All Rights Reserved. All trademarks are owned by Schneider Electric Industries SAS or its affiliated companies or their respective owners. Schneider Electric – Investor Relations – Third Quarter 2014 Revenues – October 29, 2014 27