Schneider Electric Se · EURONEXT:SU
Schneider Electric — Q1 2023 Earnings Presentation
21 slides from Schneider Electric's earnings presentation, Apr 27, 2023
Slide 1: First Quarter 2023 Revenues – April 27, 2023
Schneider Electric First Quarter 2023 Revenues – April 27, 2023 Strong start to the year with Q1 2023 Revenues up +16% organic FY 2023 Target upgraded Investor Relations – Schneider Electric | Page 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: Strong growth in Q1 2023
Strong growth in Q1 2023 €8.5bn +16% Group Q1 2023 revenues org. Energy Management Industrial Automation Energy Efficiency Process Efficiency €6.5 €2.0 +18% billion billion +10% Q1 org. sales growth Q1 org. sales growth End-Markets Buildings Data Center Infrastructure Industry DIGITAL ELECTRIC SUSTA
Slide 4: Long-term strategic growth drivers supporting strong core business
Long-term strategic growth drivers supporting strong core business MORE PRODUCTS MORE SOFTWARE & SERVICES MORE SUSTAINABLE +11% +12% Double-digit Q1 organic growth Q1 organic growth Q1 organic growth • Energy Management up double-digit, while • Software & Digital Services up +10% org. • Sustainabili
Slide 5: Good start towards meeting full-year sustainability impact targets
Good start towards meeting full-year sustainability impact targets 2021-2025 Say on Climate CLIMATE SSI #2 - Help our customers save and avoid 800 million tonnes of CO2 emissions Offering shareholders the 2 As part of Q1 efforts, the new Schneider Home range delivers energy opportunity to express th
Slide 6: Strong finish to the Fiscal Year at AVEVA
Strong finish to the Fiscal Year at AVEVA Acceleration in Transition to recurring revenues subscription on-track • Indicative revenue growth profile • Strong acceleration in Annualized Recurring Revenue (ARR), up +16%1 at 31 March Driven by multiple • Recurring Revenues represent new customer wins 7
Slide 7: Key customer successes in recent months
Key customer successes in recent months Holistic approach to design, construct, EcoStruxure™ Building Operation, EcoStruxure™ automation solution with EcoStruxure™ controls, AVEVA and and operate microgrid of JFK’s largest including multi-year service contracts, to ProLeiT's brewmaxx. Covering the E
Slide 8: Q1 2023 up +16% organic
Q1 2023 up +16% organic Analysis of Change in Group Revenues (in €m) +18.9% -2.8% +25.2% -0.2% 8,493 +5.2% +15.9% Stronger USD vs. EUR more than offset by weakening of 7,566 several other currencies vs. EUR (incl. Egypt, Turkey, Argentina) Mainly representing the exit from Group +15.8% org. Russia,
Slide 9: Q1 Business performance highlights by end-market
Q1 Business performance highlights by end-market Energy Management Industrial Automation End Markets Buildings Data Center Infrastructure Industry • Continued strength in non-resi, • Sales up double-digit for Data • Strong demand from Electric • Good activity for both EM and IA with good dynamics in
Slide 10: Energy Management – Q1 org. growth performance by geography
Energy Management – Q1 org. growth performance by geography W. Europe N. America Asia Pac. Rest of the World Split of Q1 2023 revenue by geography: 25% 37% 27% 11% North America +29% Western Europe +18% Up strong double-digit in U.S., Canada and Mexico Up double-digit in France, U.K., Germany, Italy
Slide 11: Industrial Automation – Q1 org. growth performance by geography
Industrial Automation – Q1 org. growth performance by geography W. Europe N. America Asia Pac. Rest of the World Split of Q1 2023 revenue by geography: 30% 23% 32% 15% North America +10% Western Europe +11% Up double-digit in U.S. and Mexico, while Canada slightly down Germany, Spain and Italy all u
Slide 12: Demand remains strong in Q1 supporting continued backlog creation
Demand remains strong in Q1 supporting continued backlog creation A continuation of strong market demand: Q1 2023 vs Q1 2023 vs • Record high backlog level at the end of Q1 Q1 20221 Q4 20221 • With backlog creation in Q1 while sales grew +15.8% organic Data Center ++ + Machine Solutions / OEM - ++ +
Slide 13: Expected trends in coming months
Expected trends in coming months Demand environment Geographical trends • A continuation of strong and dynamic market demand, supported by • U.S. expected to contribute strongly to growth through a combination of secular trends of electrification, digitization and sustainability strong demand, indus
Slide 14: 2023 Target Upgraded
2023 Target Upgraded The Group upgrades its 2023 financial target as follows: 2023 Adjusted EBITA growth of between +16% and +21% organic (previously between +12% and +16% organic) The target would be achieved through a combination of organic revenue growth and margin improvement, currently expected
Slide 15: Q&A
Q&A Investor Relations – Schneider Electric | Page 15
Slide 16: Investor Relations ready to engage
Investor Relations ready to engage 27 April Q1 2023 Revenues Investor Relations contacts 4 May Shareholders’ Meeting Amit Bhalla – amit.bhalla@se.com 6 June BNP Paribas Exane 25th CEO Conference (Paris) 9 June JPM European Capital Goods CEO Conference (U.K.) Graham Phillips – graham.phillips@se.com
Slide 17: Appendix
Appendix Investor Relations – Schneider Electric | Page 17
Slide 18: 2023 additional notes
2023 additional notes Foreign Exchange impact: Based on current rates, the FX impact on FY 2023 revenues is estimated to be between -€1.25 billion to -€1.35 billion. The FX impact at current rates on adjusted EBITA margin for FY 2023 could be around -70bps Scope: Around -€750 million on 2023 revenue
Slide 19: Our distinctive DNA is externally recognized in Q1 2023
Our distinctive DNA is externally recognized in Q1 2023 Investor Relations – Schneider Electric | Page 19
Slide 20: Q1 2023 Results
2023 Q1 Q2 Q3 Q4 Target Q1 2023 Results Score1 5.25 6.00 6 long-term commitments Baseline Q1 2023 2025 Target CLIMATE 1. Grow Schneider Impact revenues*2 70% 80% 74% 2. Help our customers save and avoid millions of tonnes of CO2 emissions3 263M 458M 800M 3. Reduce CO2 emissions from top 1,000 suppli
Slide 21: Life Is On | Schneider Electric
Life ls On | Schneider @ Electric