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Schneider Electric — Q3 2016 Earnings Presentation
22 slides from Schneider Electric's earnings presentation, Oct 27, 2016
Slide 1: Third Quarter 2016 Revenues
Third Quarter 2016 Revenues October 27, 2016 Confidential Property of 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: Agenda
4 Q3 performance highlights 7 Q3 performance by business 13 Q3 performance by region 15 Full year 2016 Targets 17 Appendices Schneider Electric – Investor Relations – 2016 Q3 Revenues Page 3
Slide 4: Q3 performance highlights
Q3 performance highlights Schneider Electric – Investor Relations – 2016 Q3 Revenues Page 4
Slide 5: Stable underlying Q3 performance in a mixed environment
Stable underlying1 Q3 performance in a mixed environment thanks to China turning positive and good growth in services Revenues of €6.1bn, organic growth of -1.7% RESILIENCE IN KEY PERFORMANCE ACROSS BUSINESSES STRATEGIC INITIATIVES GEOGRAPHIES IMPACTED BY DECLINE IN MIDDLE EAST PROGRESSING WELL • Ch
Slide 6: This quarter, our Planet & Society barometer reaches 7.65/10
This quarter, our Planet & Society barometer reaches 7.65/10 Indicators & objectives 2017 - selection Q2 2016 Q3 2016 In Q3 2016, Schneider Electric was awarded by: Planet ● 10% CO2 savings from transportation Fortune Magazine’s Companies That Are 6.8% 8.5% Changing the World: #24 / 50 ● 100% of pro
Slide 7: Q3 performance by business
Q3 performance by business Schneider Electric – Investor Relations – 2016 Q3 Revenues Page 7
Slide 8: Stable underlying organic growth in line with expectations
Stable underlying1 organic growth in line with expectations Analysis of change in Group revenues (€m) Organic -1.7% Stable underlying1 6,594 Building Industry Infrastructure IT -0.1% -2.6% -3.0% -3.1% 6,064 Scope -8.0% -4.3% Fx -2.0% Q3 2015 Q3 2016 > Based on current rates, the negative FX impact o
Slide 9: Building stable with growth in wiring devices & final distribution
Building stable with growth in wiring devices & final distribution despite declines in Middle East and Australia Analysis of change in Q3 Revenues (€m) North America continued to grow. The U.S. grew thanks to successful commercial initiatives in a favorable residential Organic Scope market while t
Slide 10: Industry: Growth in China but weakness in the Middle East and O&G
Industry: Growth in China but weakness in the Middle East and O&G related investment Analysis of change in Q3 Revenues (€m) China grew in a stabilizing OEM market Western Europe was about flat with good resiliency Organic in the OEM market . France was impacted by lower 1,398 -2.6% investment ac
Slide 11: Infrastructure slightly up excluding project selectivity impact
Infrastructure slightly up excluding project selectivity impact Selectivity impact estimated at ~-€40m in Q3 and Analysis of change in Q3 Revenues (€m) expected to accelerate in Q4 as planned North America was down despite good project Organic execution in the U.S. due to weakness in Canada 1,27
Slide 12: IT penalized by low IT spending in some regions
IT penalized by low IT spending in some regions, global data center investment trends remain favorable driven by co-location Analysis of change in Q3 Revenues (€m) The Rest of the World was the largest contributor to the decline, with weakness in the Middle East and Africa. Organic The U.S. was
Slide 13: Q3 performance by region
Q3 performance by region Schneider Electric – Investor Relations – 2016 Q3 Revenues Page 13
Slide 14: China turning positive, Rest of World impacted by Middle East decline
China turning positive, Rest of World impacted by Middle East decline % % of Group revenues in Q3 Comments based on Q3 2016 organic growth +x% Organic growth in Q3 +x% Total growth in Q3 Western Europe was about flat after adjusting for working days (approximately -1pt impact). The residential sec
Slide 15: Full year 2016 Targets
Full year 2016 Targets Schneider Electric – Investor Relations – 2016 Q3 Revenues Page 15
Slide 16: 2016 targets confirmed
2016 targets confirmed In the third quarter the Group delivered flat underlying growth, in line with the Group’s expectations. Residential construction was strong globally, and drove the Group’s good performance in wiring devices and final distribution, while industrial markets remained weak. In thi
Slide 17: Appendices
Appendices Schneider Electric – Investor Relations – 2016 Q3 Revenues Page 17
Slide 18: 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 – 2016 Q3 Revenues Page 18
Slide 19: Q3 2016 revenues performance
Q3 2016 revenues performance €m Q3 2015 Q3 2016 Organic Scope FX Reported Building 2,983 2,666 -0.1% -8.2% -2.3% -10.6% Industry 1,398 1,333 -2.6% +0.1% -2.1% -4.6% Infrastructure 1,273 1,161 -3.0% -3.1% -2.7% -8.8% IT 940 904 -3.1% 0.0% -0.7% -3.8% Group 6,594 6,064 -1.7% -4.3% -2.0% -8.0% €m Q3 20
Slide 20: The Planet & Society barometer
The Planet & Society barometer Our 2015-2017 detailed sustainability scorecard, as of Q3 2016 Planet & Society barometer Start Results Results Target (objectives for 2017) 01/2015 Q2 2016 Q3 2016 12/2017 Overall score (out of10) 3.00 6.97 7.65 8/10 10% energy savings - 5.6% 5.9% 10% 10% CO2 savings
Slide 21: Contacts & agenda
Contacts & agenda Amit Bhalla – Head of Investor Relations Tel: +44 20 7592 8216 amit.bhalla@schneider-electric.com Alexis Denaud – Senior Investor Relations Manager Tel: +33-1-41-29-51-24 alexis.denaud@schneider-electric.com Feb. 16, 2017 2016 Annual Results Schneider Electric – Investor Relations
Slide 22: Life Is On | Schneider Electric
Lifels On | Schneider GeElectric