Schneider Electric Se · EURONEXT:SU
Schneider Electric — Q1 2021 Earnings Presentation
35 slides from Schneider Electric's earnings presentation, 2021
Slide 1: Strong start to 2021 - Revenues up +13.5% organic in Q1
Strong start to 2021 - Revenues up +13.5% organic in Q1 FY 2021 Target 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 Q1 2021 Business Highlights 13 Q1 2021 Business Performance 24 2021 Target 29 Appendix Investor Relations – Schneider Electric | Page 3
Slide 4: Q1 Business Highlights
Q1 Business Highlights Hilary Maxson CFO Schneider Electric Investor Relations – Schneider Electric | Page 4
Slide 5: Strong growth in Q1
Strong growth in Q1 €6.5bn, +13.5% Group Q1 2021 revenues org. Energy Management Industrial Automation Energy Efficiency Process Efficiency €4.9 €1.6 +13.7% Q1 org. sales growth billion billion +12.9% Q1 org. sales growth End Markets Buildings I Data Center I Industry I Infrastructure c.50% c.50% In
Slide 6: Well positioned to capture opportunities with future-ready portfolio
Well positioned to capture opportunities with future-ready portfolio Electrification Digitization Creating future-ready solutions • Climate Change Enabling step changes in across the lifecycle • 5G, AI, IIoT … efficiency and reliability • Localization/re-shoring • COVID-19 Sustainability Acceleratin
Slide 7: Strong traction across strategic pillars in Q1
Strong traction across strategic pillars in Q1 MORE PRODUCTS MORE SOFTWARE & SERVICES MORE SUSTAINABLE Launch of “Zero Carbon Project” Halving key suppliers CO2 emissions by 2025 Scaling sustainability business worldwide Okken™ & BlokSeT™ Galaxy VL LV switchboards Compact 3-Phase UPS Multiple projec
Slide 8: Our end-markets are well oriented…
Our end-markets are well oriented… Building Data Center Infrastructure Industry Extracts from Q1 Positive c. +20% $2 tn +17% ABI billings - first time since Hyperscale CapEx U.S. IIoT CAGR to start of pandemic YoY 2021 infrastructure plan 2023E Source: KPMG, Emerging Source: ABI, March 2021 Source:
Slide 9: Positive evolution of demand trends in Q1
Positive evolution of demand trends in Q1 Demand Q1 trend Demand trends in relative trends trailing 3 to trailing 3 in Q1 21 quarters quarters* Data Center - Colocation, hyper-scale, enterprise, edge, non-IT ++ ++ Machine Solutions - End User & OEM - ++ Residential Buildings + ++ CPG - Consumer Pack
Slide 10: Key customer successes in recent months
Key customer successes in recent months Société du Emirates Waste to Senior care facility Swire Properties Grand Paris SUPERNAP Italia Energy U.S. Hong Kong, China France Italy U.A.E Tailored Ecostruxure™ Cloud-based energy Enabling Energy & Fully integrated & highly Comprehensive digital Microgrid
Slide 11: Accelerated sustainability journey continues
Accelerated sustainability journey continues 2021-2025 Our Pledge 2025 Carbon neutrality in our operations (with CO2 offsets) Net-zero CO2 in our operations Score reached 3.38/10 in Q1 2021 2030 (no CO2 offset) good start toward end of year target of 3.75/10 Net-zero biodiversity loss in our operati
Slide 12: Our Sustainability Journey
Our Sustainability Journey Recognition 2021 #1 the world’s most sustainable company A List (Climate) 10 years in a row AAA 9 years in a row From 2018 Replay of the 3rd edition of the One Planet Summit Included since inception Net-zero biodiversity loss Most Ethical Company in our operations by 2030
Slide 13: Q1 Business Performance
Q1 Business Performance Investor Relations – Schneider Electric | Page 13
Slide 14: Strong start to 2021 up +13.5% organic in Q1
Strong start to 2021 up +13.5% organic in Q1 Analysis of Change in Group Revenues (in €m) +4.4% -6.0% +32.1% +2.2% +9.1% 6,526 +10.6% 5,830 Mainly due to the Contributions from L&T strengthening of the Group +13.5% org. in Q1 E&A, RIB Software and Euro against the ProLeiT USD Q1 2020 Western Asia Pa
Slide 15: Q1 Group revenue across regions
Q1 Group revenue across regions % Group Sales Org. Growth NORTH AMERICA WESTERN EUROPE 27% +2% 28% +11% United States Canada Mexico France Germany United Kingdom Spain Italy Nordics REST OF WORLD ASIA PACIFIC 14% +9% 31% +32% Russia South America Middle East Africa China India Australia Indonesia Si
Slide 16: Products: Strong underlying demand drives growth
Products: Strong underlying demand drives growth €3.9bn Q1’21 performance highlights 60% of Group Q1 2021 revenues • Double-digit growth led by short-cycle demand in +17% org. Residential buildings and Industry & Infrastructure markets • Growth supported by some customer stocking and carry- over of
Slide 17: Systems: Double-digit growth though process markets still weak
Systems: Double-digit growth though process markets still weak €1.5bn Q1’21 performance highlights 22% of Group Q1 2021 revenues • Strong demand across Energy Management +10% org. technologies • Energy Management strong across most end-markets, some parts of Non-resi buildings weaker, as expected -5
Slide 18: Software and Services: Good growth against a high base of comparison
Software and Services: Good growth against a high base of comparison €1.2bn Q1’21 performance highlights 18% of Group Q1 2021 revenues • Software and Digital services growing mid-single digit in Q1 +6% org. • AVEVA impacted by high base of comparison and timing of renewals +10% • Remaining portfolio
Slide 19: Energy Management - Q1 performance highlights
Energy Management - Q1 performance highlights €4.9bn Key performance highlights 76% of Group Q1 2021 revenues • Strong performance in Residential buildings • Non-Residential demand remains good in Hospitals, Scope Healthcare, Life Science & Warehouse/Distribution Organic +5.2% 4,949 +13.7% +12.9% •
Slide 20: Energy Management - performance by geography
Energy Management - performance by geography Q1 Org. Growth N. America W. Europe Asia Pac. Rest of the World Split of Q1 2021 revenue by geography: 27% 30% 29% 14% North America +4% Western Europe +13% • Good growth in U.S. and sequential improvement on Q4 • France led the region with strong demand
Slide 21: Industrial Automation - Q1 performance highlights
Industrial Automation - Q1 performance highlights €1.6bn Key performance highlights 24% of Group Q1 2021 revenues • Sales into Discrete end-markets grew double-digit, led by OEM demand particularly in China Scope • Moderate performance in Process & Hybrid end-markets Organic +12.9% +1.8% 1,577 which
Slide 22: Industrial Automation - performance by geography
Industrial Automation - performance by geography Q1 Org. Growth N. America W. Europe Asia Pac. Rest of the World Split of Q1 2021 revenue by geography: 31% 16% 37% 16% North America -9% Western Europe +4% • U.S. remained weak overall, though improving sequentially and • Strong growth in France in di
Slide 23: Capital allocation: priorities unchanged
Capital allocation: priorities unchanged 1 2 Strong Investment Continued focus on Grade Credit Ratings Dividends 3 4 Portfolio optimization Share buyback* Near-term focus: Successful integration of recent Renewed progress on disposal Small bolt-ons or partnerships acquisitions and deliver associated
Slide 24: 2021 Target
2021 Target Investor Relations – Schneider Electric | Page 24
Slide 25: 2021 Target upgraded
2021 Target upgraded Taking into account the strong demand witnessed in Q1 while also factoring the current view of the ongoing uncertainties linked to the COVID-19 pandemic, potential global supply-chain pressures and increased input costs, the Group targets: 2021 Adjusted EBITA growth of between +
Slide 26: Q&A
Q&A Investor Relations – Schneider Electric | Page 26
Slide 27: Investor Relations ready to engage
Investor Relations ready to engage Proposing quarterly interaction with investors showcasing specific businesses, geographies or functions 28 April Shareholders’ Meeting 1 June Kepler Cheuvreux 2nd Digital Pan European ESG Conference 8 June Exane CEO Conference 11 June J.P. Morgan European Capital G
Slide 28: 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 28
Slide 29: Appendix
Appendix Investor Relations – Schneider Electric | Page 29
Slide 30: 2021 additional notes
2021 additional notes • Foreign Exchange impact: Based on current rates, the FX impact on FY 2021 revenues is estimated to be between -€500 million to -€600 million. The FX impact at current rates on adjusted EBITA margin for FY 2021 could be around flat • Scope: Around +€950 million on 2021 revenue
Slide 31: Q1 2021 Results
2021-2025 Score1 2021 Q1 Q2 Q3 Q4 Target Q1 2021 Results 3.38 3.751 6 long-term commitments 11+1 targets for 2021-25 Baseline Q1 2021 2025 Target CLIMATE 1. Grow our green revenues2 70% 80% 72% 2. Help our customers save and avoid millions of tons of CO2 emissions3 263M 276M 800M 3. Reduce CO2 emiss
Slide 32: Q1 Energy Management revenue across regions
Q1 Energy Management revenue across regions % Business Sales Org. Growth NORTH AMERICA WESTERN EUROPE 30% +4% 27% +13% United States Canada Mexico France Germany United Kingdom Spain Italy Nordics REST OF WORLD ASIA PACIFIC 14% +10% 29% +29% Russia South America Middle East Africa China India Austra
Slide 33: Q1 Industrial Automation revenue across regions
Q1 Industrial Automation revenue across regions % Business Sales Org. Growth NORTH AMERICA WESTERN EUROPE 16% -9% 31% +4% United States Canada Mexico France Germany United Kingdom Spain Italy REST OF WORLD ASIA PACIFIC 16% +6% 37% +40% Russia South America Middle East Africa China India Australia So
Slide 34: Our distinctive DNA is externally recognized in Q1 2021
Our distinctive DNA is externally recognized in Q1 2021 20 21 Investor Relations – Schneider Electric | Page 34
Slide 35: Disclaimer
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