Schneider Electric Se · EURONEXT:SU
Schneider Electric — Q1 2022 Earnings Presentation
28 slides from Schneider Electric's earnings presentation, Apr 27, 2022
Slide 1: First Quarter 2022 Revenues – April 27, 2022
Schneider Electric First Quarter 2022 Revenues – April 27, 2022 Q1 2022 revenues up +10% organic FY 2022 Target confirmed in increasingly uncertain environment 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: Action to support Ukraine
Action to support Ukraine 142 Employees Manufacturing facilities: 0 factories & 1 Distribution Center Facilitating employees & families relocating & providing temporary housing outside of Ukraine 2.5M€ for our employees and NGOs For our employees the fund supports for housing and settlement, languag
Slide 4: Russia Operations
Russia Operations FY 2021 Footprint: • ~3,500 Employees in Russia & Belarus • Russia represents around 2% of Group revenues • Manufacturing facilities : 3 factories & 2 Distribution Centers in Russia • Largely local business serving domestic market • Close to no export or supply chain sourcing from
Slide 5: China – COVID-19 related lockdowns
China – COVID-19 related lockdowns Lockdown situation Actions taken Financial impact • 4 factories and 1 distribution center in • Supporting food supply and delivery for • Negligible impact on Q1 sales Shanghai impacted – presently operating locked-down employees at reduced capacity • Q2 to be impac
Slide 6: Acceleration of electrification, energy efficiency, electricity 4.0 and Industry 4.0
Acceleration of electrification, energy efficiency, electricity 4.0 and Industry 4.0, despite short term disruptions Strong demand, Implications of recent events unique positioning Accelerating Electric Inflation Pricing Markets Digital Incremental Services Growth Drivers Software Complexity in supp
Slide 7: Q1 Financial Highlights
Q1 Financial Highlights Investor Relations – Schneider Electric | Page 7
Slide 8: Strong start to 2022
Strong start to 2022 €7.6bn +10% Group Q1 2022 revenues org. Energy Management Industrial Automation Energy Efficiency Process Efficiency €5.7 €1.9 +10% billion billion +9% Q1 org. sales growth Q1 org. sales growth End-Markets Buildings Data Center Infrastructure Industry Powered by SUSTAINABILITY +
Slide 9: Strong growth across strategic pillars in Q1
Strong growth across strategic pillars in Q1 MORE PRODUCTS MORE SOFTWARE & SERVICES MORE SUSTAINABLE +13% +7% Strong double-digit Q1 organic growth Q1 organic growth Q1 organic growth • Double-digit growth in both businesses • Software & Digital Services up double- • Growth led by North America • Br
Slide 10: Remaining focused on sustainability transformations
Remaining focused on sustainability transformations 2021-2025 CLIMATE SSI #2 - Deliver 800 million tonnes of saved and avoided CO2 emissions to our customers Our solutions helped customers make significant decarbonization 358M progress. Plastic Omnium and NSG Group have recently entrusting Schneider
Slide 11: Group organic growth +10%, all geographies contributing
Group organic growth +10%, all geographies contributing Analysis of Change in Group Revenues (in €m) +4.0% 7,566 +1.8% +16.1% +12.8% +8.1% Mainly due to the +6.2% 6,526 strengthening of the USD and CNY against the EUR Mainly comprises the FY21 acquisitions of ETAP and Group +9.8% org. OSIsoft by AVE
Slide 12: Q1 Business performance highlights by end-markets
Q1 Business performance highlights by end-markets Energy Management Industrial Automation End Markets Buildings Data Center Infrastructure Industry • Strong demand for Group’s • Demand remains very strong • Demand remains strong in Electric • Discrete markets drove strong end-to-end offer suite • Cu
Slide 13: Positive evolution of demand trends in Q1
Positive evolution of demand trends in Q1 Q1 vs Average of Q1 YoY 2021 Data Center ++ ++ Machine Solutions / OEM ++ ++ Residential Buildings ++ ++ CPG ++ + MMM ++ ++ Utilities ++ ++ Oil & Gas ++ ++ Transportation ++ ++ WWW ++ + Based on non-GAAP orders in selected segments Investor Relations – Schne
Slide 14: 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 2022 revenue by geography: 25% 31% 30% 14% North America +10% Western Europe +5% U.S. up double-digit, Mexico strong double-digit, Canada high-single digit All five major economie
Slide 15: 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 2022 revenue by geography: 28% 26% 32% 14% North America +28% Western Europe +8% U.S., Canada and Mexico each up strong double-digit Strong growth in Discrete, offset by weake
Slide 16: Expected trends in 2022
Expected trends in 2022 The Group expects to grow both its revenues and profitability in 2022, in line with the framework for sustainable growth for the medium and long-term announced in its recent Capital Markets Day. Recap of Group expectations for 2022: Recent evolution in expectations • A contin
Slide 17: 2022 Target confirmed
2022 Target confirmed The Group expects the recent events in Russia and China to have a specific impact in Q2. However, based on its best judgement¹ of the current ongoing world events and their associated repercussions, the Group confirms its FY 2022 target², as follows: 2022 Adjusted EBITA growth
Slide 18: Q&A
Q&A Investor Relations – Schneider Electric | Page 18
Slide 19: Investor Relations ready to engage
Investor Relations ready to engage Proposing quarterly interaction 5 May Shareholders’ Meeting with investors showcasing 11 May Société Générale ESG/SRI Conference specific businesses, 9 June J.P. Morgan European Capital Goods CEO Conference geographies or functions 14 June Exane BNP Paribas 24th Eu
Slide 20: Investor Relations contacts
Investor Relations contacts Amit Bhalla – amit.bhalla@se.com Graham Phillips – graham.phillips@se.com Alban de Beaulaincourt – alban.de-beaulaincourt@se.com Andrew Gamwell – andrew.gamwell@se.com Investor Relations – Schneider Electric | Page 20
Slide 21: Appendix
Appendix Investor Relations – Schneider Electric | Page 21
Slide 22: 2022 additional notes
2022 additional notes Foreign Exchange impact: Based on current rates, the FX impact on FY 2022 revenues is estimated to be between +€1.3 billion to +€1.4 billion. The FX impact at current rates on adjusted EBITA margin for FY 2022 could be around +10bps Scope: Around +€150 million on 2022 revenues
Slide 23: Key customer success in recent months
Key customer success in recent months China India Germany Saudi Arabia U.S. Unique and first in sector Combined offers of SE, Turnkey EcoStruxure™ Data Digital grid offer of Full EcoStruxure™ offer EcoStruxure™ solution L&T Electrical & Center solution with EcoStruxure™ ADMS to differentiated by wit
Slide 24: Q1 Group revenue: Strong growth across regions
Q1 Group revenue: Strong growth across regions NORTH AMERICA 30% +13% WESTERN EUROPE 25% +6% United States Canada Mexico France Germany United Kingdom Spain Italy Nordics REST OF WORLD 14% +16% ASIA PACIFIC 31% +8% China India Australia Singapore Japan Russia South America Middle East Africa % GROUP
Slide 25: Snapshot of cost profile & raw material exposure
Snapshot of cost profile & raw material exposure COST PROFILE KEY RAW MATERIAL EXPOSURE FY21 FY21 Total Cost of Goods Sold €17 bn Total Raw Materials €2.6 bn - o/w total non-ferrous €1.5 bn Purchases €13 bn - Copper (within non-ferrous) €0.8 bn - o/w Raw Materials €2.6 bn - o/w Direct energy costs €
Slide 26: Schneider Sustainability Impact 2022 Q1 results and targets
02 2022 SCHNEIDER Qi 2 G3) 4s Target SUSTAINABILITY son CE on Q1 2022 Results Baseline Q1 2022 2025 Target Grow Schneider Impact revenues* 70% @ 71% 80% Help our customers save and avoid millions of tonnes of CO, emissions’ 263M @i 358M 800M jers’ operations 0% ¢ 1% 50% CLIMATE ix) cy Reduce CO, emi
Slide 27: Our distinctive DNA is externally recognized in Q1 2022
Our distinctive DNA is externally recognized in Q1 2022 CARBON CLEAN 200 LIST Investor Relations – Schneider Electric | Page 27
Slide 28: Life Is On | Schneider Electric
Life ls On | Schneider @ Electric