Slide 1: Strong start to 2019. Growth momentum continues in Q1
Strong start to 2019. Growth momentum continues in Q1 Revenues up +6% organic and up +9% reported Full Year target reaffirmed Investor Relations - Schneider Electric
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: Q1 2019 Business Highlights Q1 2019 Business Performance Full Year 2019 Target
04 Q1 2019 Business Highlights 14 Q1 2019 Business Performance 21 Full Year 2019 Target 26 Appendix Investor Relations - Schneider Electric Page 3
Slide 4: Q1 2019 Business Highlights
Appendix Q1 2019 Business Highlights Photos: J.Deloy – SE Design Lab
Slide 5: Our unique positioning: significant customer benefits
Our unique positioning: Energy and automation digital solutions for efficiency and sustainability Energy Industrial Energy Management Automation Industry Transition 4.0 significant customer benefits… Energy efficiency Productivity Reliability and Safety Sustainability Up to Up to Up to Aiming at ~65
Slide 6: A strong start to 2019
A strong start to 2019 €6.3bn, +5.9% Group Q1 2019 revenues org. Energy Management Industrial Automation Energy efficiency Process efficiency +7% € 4.7 1.6 billion € billion c.+4% * 2019 target reaffirmed * Excluding panels business phase down in the U.S. Investor Relations - Schneider Electric Page
Slide 7: Our strategy has positioned us for market outgrowth
Our strategy has positioned us for market outgrowth while being more balanced, resilient and agile Balanced and growing across regions Balanced across the cycle Q1 ‘19 Group revenue c.16% c.28% c.27% c.29% Q1 2019 org. growth Asia Pacific +7% Early cycle North America +9% Mid & Late cycle Western Eu
Slide 8: Strong revenue growth in Q1 2019
Strong revenue growth in Q1 2019 Strategic priorities delivering Revenue More Products More Services +5.9% +3% +11% Organic growth Organic growth Organic growth More Software More EcoStruxure Better Systems Up double-digit Above group average +10% Organic growth Organic growth Organic growth reflect
Slide 9: Execution of our strategy to focus on the core
Execution of our strategy to focus on the core Strategic Partnership Portfolio Optimization Partnering with Carlyle in critical infrastructure Focusing Portfolio on the core • Providing technology for efficiency and sustainability for The previously announced review of assets totaling Carlyle Infras
Slide 10: Pillars of growth strategy
Pillars of growth strategy INNOVATION DIGITAL SEGMENT FOCUS CROSS SELLING New connected products • Assets Under Total segment orders up Cross selling of Energy for greater efficiency Management +39% YoY double-digit in selected Management and Industrial across end-markets mid to late-cycle segments
Slide 11: Selection of Q1 customer successes driven by EcoStruxure
Selection of Q1 customer successes driven by EcoStruxure BUILDINGS DATA CENTER INFRASTRUCTURE INDUSTRY Tottenham Stadium Bluehall Intel Data Center Marine Corps Air Station Cerradinho Bio Ethanol London, UK Beijing, China California, USA Brazil Complete Energy Management EcoStruxure IT & EcoStruxure
Slide 12: This quarter, the Schneider Sustainability Impact reaches 6.23/10
This quarter, the Schneider Sustainability Impact reaches 6.23/10 Indicators & objectives 2020 - selection Q1 2019 Q4 2018 Energy & Sustainability Services (ESS), St. Joseph, Missouri USA CLIMATE 80% renewable electricity 35% 30% • Energy efficiency & infrastructure modernization 25% increase in tur
Slide 13: Our distinctive DNA is externally recognized in Q1
Our distinctive DNA is externally recognized in Q1 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 Invest
Slide 14: Q1 2019 Business Performance
Appendix Q1 2019 Business Performance Photos: J.Deloy – SE Design Lab
Slide 15: Group Q1 Revenues +9% reported, +6% organic
Group Q1 Revenues +9% reported, +6% organic ANALYSIS OF CHANGE IN GROUP REVENUES (in €m) FX 6,307 Scope +2.0% +8.7% +5.9% org. +0.8% 5,800 Mainly AVEVA Main driver is the consolidated in strengthening of scope for 2 USD vs. Euro months Q1 2018 Q1 2019 Based on current rates, the FX impact on FY 2019
Slide 16: Organic growth derived from products, systems, services and software
Organic growth derived from products, systems, services and software Organic Growth in Q1 • Solid growth driven by Buildings end-markets while Discrete industrial markets moderated Products 3% • Leveraging complete product portfolio across strong global network of partners • Focus on profitable syst
Slide 17: Energy Management: strong growth, up +7.1% organic
Energy Management: strong growth, up +7.1% organic €4.8bn Q1 performance highlights 75% of Group Q1 2019 revenues • Residential and small buildings offers grew mid single-digit, benefitting from roll-out of recent launches Energy Management • Commercial and Industrial Building offers show good growt
Slide 18: Energy Management: growing in all regions, led by North America
Energy Management: growing in all regions, led by North America Org. growth N. America W. Europe Split of Q1 2019 revenue by geography: 32% 25% 27% 16% Asia Pac. Rest of the World North America +12% Western Europe +3% • Up double-digit, particular strength across Buildings end- • Good growth in Ital
Slide 19: Industrial Automation: up c.+4% in Q1, with strong growth from Process & Hybrid
Industrial Automation: up c.+4%1 in Q1 ,with strong growth from Process & Hybrid €1.6bn Q1 performance highlights • Strong growth in Process & Hybrid continues, boosted by late-cycle 25% of Group Q1 2019 revenues demand. Process Automation growth in all regions • Core offers for discrete and OEM sli
Slide 20: Industrial Automation: underlying growth in all regions
Industrial Automation: underlying growth in all regions Org. growth N. America W. Europe Split of Q1 2019 revenue by geography: 21% 32% 32% 15% Asia Pac. Rest of the World North America c.+2% ex-panels Western Europe +5% • -4% down with impact from Panel offers phase down • Growing across discrete,
Slide 21: Full Year 2019 Target
Appendix Full Year 2019 Target Photos: J.Deloy – SE Design Lab
Slide 22: Business environment update
Business environment update In its main markets the Group currently expects the following trends: • China faces a high base of comparison and softening OEM demand but remains a growth market in aggregate with dynamism in many end-markets including construction, infrastructure and parts of industry,
Slide 23: 2019 Target: Adj. EBITA growth between +4% and +7% organic
2019 Target reaffirmed Following the strong start to the year, and taking into account developing macro-economic trends, the Group continues to expect good growth in aggregate in 2019 as it continues to deploy its strategic priorities in key markets 2019 Target: Adj. EBITA growth between +4% and +7%
Slide 24: Key management messages
Key management messages… Group positioning Digital Solutions for Energy Transition & Industry 4.0 Strategy More products, More services, More software, Better systems Balanced portfolio By geography, by end-market, from early to mid-late cycle Organic growth Sustained growth to deliver Energy and Pr
Slide 25: Investor Relations ready to engage
Investor Relations ready to engage Upcoming events: Proposing quarterly interaction with investors showcasing specific businesses, geographies or functions 25 Apr Annual General Meeting, Paris 20 May EPG Conference, Miami 21 May Berenberg Capital Goods Conference, USA 11 Jun Exane BNP Paribas Europe
Slide 26: Appendix
Appendix Appendix Photos: J.Deloy – SE Design Lab
Slide 27: 2019 additional notes
2019 additional notes • Foreign Exchange impact: Based on current rates, the FX impact on FY 2019 revenues is estimated to be between +€300 million and +€400 million. The FX impact at current rates on adjusted EBITA margin could be around -10bps. • Industrial Productivity: While the increased level
Slide 28: 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 EBITDA EBIT before depreciation, amortization, provisions and before share-based compensation cost
Slide 29: Schneider Sustainability Impact 2018 – 2020, Results as of Q1 2019
Schneider Sustainability Impact 2018 – 2020, Results as of Q1 2019 Objective Beginning Results Results 12/2019 01/2018 Q4/2018 Q1 2019 Our megatrends 2015 – 2020 and targets 2018 – 2020 Overall Score of 10 7/10 3 6.10 6.23 CLIMATE 80% renewable electricity -- 30% 35% 10% CO2 efficiency in transporta
Slide 30: Q1 Group revenue growing across all regions
Q1 Group revenue growing across all regions % Group Sales Org. growth NORTH AMERICA WESTERN EUROPE 29% +9% 27% +3% United States Canada Mexico France Germany United Kingdom Spain Italy REST OF WORLD ASIA PACIFIC 16% +4% 28% +7% Russia South America Middle East Africa China India Australia Indonesia
Slide 31: Investor Relations contacts
Investor Relations contacts Amit Bhalla – Head of Investor Relations, Tel: +44 207 592 8216, Email: amit.bhalla@se.com Alexis Denaud – Investor Relations Director, Tel: +33 1 41 29 51 24, Email: alexis.denaud@se.com Phil Buller – Investor Relations Director, Tel: +44 207 592 8291, Email: phil.buller
Slide 32: Life Is On | Schneider
Lifels On | Schneider GeElectric