Schneider Electric Se · EURONEXT:SU
Schneider Electric — Q3 2020 Earnings Presentation
31 slides from Schneider Electric's earnings presentation, Oct 22, 2020
Slide 1: Strong rebound in Q3 2020; Revenue up +1.3% organic
Strong rebound in Q3 2020; Revenue up +1.3% organic Full Year 2020 targets upgraded
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 Q3 2020 Business Highlights 10 Q3 2020 Business Performance 22 2020 Targets 24 Q&A 27 Appendix Investor Relations – Schneider Electric | Page 3
Slide 4: Q3 Business Highlights
Q3 Business Highlights Hilary Maxson CFO Schneider Electric Investor Relations – Schneider Electric | Page 4
Slide 5: Strong rebound in Q3
Strong rebound in Q3 €6.5bn, +1.3% Group Q3 2020 revenues org. € € +2.5% billion billion -2.5% Q3 org. sales Q3 org. sales growth growth NORTH AMERICA WESTERN EUROPE 29% +1% 25% -2% REST OF WORLD ASIA PACIFIC 15% +1% 31% +5% % Business Sales Org. growth FY2020 targets upgraded Investor Relations – S
Slide 6: Continued focus in execution of our growth strategy pillars in Q3
Continued focus in execution of our growth strategy pillars in Q3 More Products More Software & Services Better Systems Grew Down Down mid-single digit low-single digit mid-single digit Organic growth Organic growth Organic growth • Multi-local business model • Mid/late-cycle impacted Field Services
Slide 7: Digitization & Sustainability high on customers agenda
Digitization & Sustainability high on customers agenda Digital and service business New product innovations focused on for increased efficiency across lifecycle digitization & sustainability Software Agile automation offer + Digital services EcoStruxure™ Automation Expert c. 7% Connectivity-ready /
Slide 8: Our end-markets are well oriented …
Our end-markets are well oriented … BUILDINGS DATA CENTER INFRASTRUCTURE INDUSTRY Near term trends Near term trends • Residential boosted by COVID-19 • Digitization, 5G & IoT • Electric utilities transforming to • Digitization for enhanced • Non-Residential need for driving demand incorporate renewa
Slide 9: Q3 Business Performance
Q3 Business Performance Investor Relations – Schneider Electric | Page 9
Slide 10: Revenue up +1.3% organic in Q3 2020, led by Asia Pacific
Revenue up +1.3% organic in Q3 2020, led by Asia Pacific Weakening of several currencies against Analysis of Change in Group Revenues (in €m) Euro (mainly USD and new economies' currencies) +0.6% +0.8% +0.4% +5.1% 6,646 -1.8% Disposal: Mainly comprises Converse 6,458 Energy Projects and the deconsol
Slide 11: Energy Management Q3 performance highlights
Energy Management Q3 performance highlights €5.0bn 78% of Group Q3 2020 revenues • Residential construction continued positive trend • CIB activity restarted after lockdowns across most regions • Hospitals, healthcare, Life Sciences & Digital Buildings Organic Scope remained solid +2.5% +0.1% • Data
Slide 12: Focus on Q3 - Energy Management up +2.5% org.
Focus on Q3 - Energy Management up +2.5% org. Q3 Org. growth N. America W. Europe Split of Q3 2020 revenue by geography: 25% 32% 29% 14% Rest of the World Asia Pac. North America +2% Western Europe +1% • Performance driven by the U.S. • Solid growth in Germany helped by residential & project executi
Slide 13: Organic growth by region in Q3 2020 – Energy Management
Organic growth by region in Q3 2020 – Energy Management % Business Sales Org. growth NORTH AMERICA WESTERN EUROPE 32% +2% 25% +1% United States Canada Mexico France Germany United Kingdom Spain Italy Nordics REST OF WORLD ASIA PACIFIC 14% +1% 29% +5% China India Australia Indonesia Singapore Japan R
Slide 14: Industrial Automation Q3 performance highlights
Industrial Automation Q3 performance highlights €1.5bn 22% of Group Q3 2020 revenues • Strong performance for Discrete offers across geographies Scope 1,540 • Process & Hybrid impacted by economic cycle coupled with +1.3% COVID-19 impacts on specific end-markets 1,453 • Services showed Resilience (g
Slide 15: Focus on Q3 – Industrial Automation down -2.5% org.
Focus on Q3 – Industrial Automation down -2.5% org. Q3 Org. growth N. America W. Europe Split of Q3 2020 revenue by geography: 28% 19% 37% 16% Rest of the World Asia Pac. North America -7% Western Europe -10% • Performance impacted by softness in mid/late-cycle demand • Germany down, discrete end-ma
Slide 16: Organic growth by region in Q3 2020 – Industrial Automation
Organic growth by region in Q3 2020 – Industrial Automation % Business Sales Org. growth NORTH AMERICA WESTERN EUROPE 19% -7% 28% -10% United States Canada Mexico France Germany United Kingdom Spain Italy REST OF WORLD ASIA PACIFIC 16% 0% 37% +5% +6% China India Australia Indonesia Singapore Japan R
Slide 17: Capital allocation – recent updates
Capital allocation – recent updates Electrical & Automation Deal closed July 10, 2020 Deal closed August 4, 2020 Deal closed August 31, 2020 Deal signed August 25, 2020 Enhancing Schneider Electric’s Targeted bolt-on acquisition for Transaction completed, together Schneider Electric fully capabiliti
Slide 18: Contributing to support recovery and resiliency
Contributing to support recovery and resiliency Respond Recovery Resilience Meeting first needs of low-income Contributing to the urgent restart Volunteering on a regular basis, with time population of the education system to prepare the future and skills Access to food, health, education, housing R
Slide 19: Accelerating our sustainability trajectory
Accelerating our sustainability trajectory Schneider Sustainability Impact: 8.63/10 in Q3 Indicators & objectives 2020 - selection Q3 2020 H1 2020 120 million metric tons CO₂ saved on our customers’ end thanks to our 118 107 EcoStruxure offers Address 100% of the electricity demand of Henkel’s 120,0
Slide 20: Our distinctive DNA is externally recognized in Q3
Our distinctive DNA is externally recognized in Q3 Commitment To Sustainability: Climate, Ethics, Empowered Diversities; Inclusive Practices; Lean Organization; Multi-hub Model; Circular Economy, Health And Equity, Development Inclusive Behaviors; Advocacy The Schneider Way; #Freeupyourenergy #1 Sup
Slide 21: 2020 Targets
2020 Targets Investor Relations – Schneider Electric | Page 21
Slide 22: 2020 Targets upgraded
2020 Targets upgraded The Group established revised 2020 targets together with its HY results in July 2020 to provide transparency whilst recognizing the ongoing uncertainty and challenges relating to the continuing global health and economic crisis. Given the acceleration of COVID-19 cases in vario
Slide 23: Q&A
&A Life ls On Schneider Electric
Slide 24: Investor Relations ready to engage
Investor Relations ready to engage Proposing quarterly interaction with investors showcasing specific businesses, geographies or functions 22 October Q3 Revenues 9 November UBS Select Conference 16 November Virtual ESG Investor Day 19 November Société Générale ESG/SRI Conference 30 November Goldman
Slide 25: Investor Relations contacts
Investor Relations contacts Amit Bhalla – Head of Investor Relations, amit.bhalla@se.com Graham Phillips – Investor Relations Director, graham.phillips@se.com Alban de Beaulaincourt – Investor Relations Director, alban.de-beaulaincourt@se.com Investor Relations – Schneider Electric | Page 25
Slide 26: Appendix
Appendix Life ls On Schneider Electric
Slide 27: 2020 additional notes
2020 additional notes • Forex Exchange impact Based on current rates, the FX impact on FY 2020 revenues is estimated to be between -€600 million to -€700 million. The FX impact at current rates on adjusted EBITA margin could be at the higher end of -30bps to -40bps range • Scope Around -€50 million
Slide 28: Q3 Group revenue across regions
Q3 Group revenue across regions % Q3 20 Org. growth Group Sales NORTH AMERICA WESTERN EUROPE 29% +1% 25% -2% United States Canada Mexico France Germany United Kingdom Spain Italy Nordics REST OF WORLD ASIA PACIFIC 15% +1% 31% +5% Russia South America Middle East Africa China India Australia Indonesi
Slide 29: Schneider Sustainability Impact 2018 – 2020, Results as of Q3 2020
Schneider Sustainability Impact 2018 – 2020, Results as of Q3 2020 Beginning Results Target 01/2018 Q3 2020 End 2020 Our megatrends and SDGs Our 21 goals 2018-2020 Overall score out of 10 3 8.63 9 CLIMATE 1. Renewable electricity -- 65% → 80% 2. CO2 efficiency in transportation -- 6.3% ↑ 10% 3. Mill
Slide 30: Recent customer wins
Recent customer wins BUILDINGS DATA CENTER INFRASTRUCTURE INDUSTRY Sustainability & state- Machine Advisor for of-the-art design – Ensure availability Safety through remote monitoring & U.K. & operational automation for control – Brazil efficiency – U.S.A. subway system - France 15% OpEx savings 20%
Slide 31: Life Is On | Schneider Electric
Life ls On | Schneider @ Electric