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Schneider Electric — Q3 2015 Earnings Presentation
23 slides from Schneider Electric's earnings presentation, Oct 29, 2015
Slide 1: Third Quarter 2015 Revenues
Third Quarter 2015 Revenues October 29, 2015 Schneider Electric – Investor Relations – 2015 Q3 Revenues 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: Agenda
4 Q3 performance highlights 7 Q3 performance by business 13 Q3 performance by region 15 Full year 2015 Targets 17 Appendices Schneider Electric – Investor Relations – 2015 Q3 Revenues Page 3
Slide 4: Q3 performance highlights
Q3 performance highlights Schneider Electric – Investor Relations – 2015 Q3 Revenues Page 4
Slide 5: Q3 revenues +5% driven by FX, organically -1.1% WDA as China and low industrial investments weigh on performance
Q3 revenues +5% driven by FX, organically -1.1% WDA1 as China and low industrial investments weigh on performance A mixed picture in organic performance across businesses ● Buildings and Partner observed growth in Western Europe, weakness in China and mixed trends in North America ● Industry decline
Slide 6: In Q3, our Planet & Society barometer reaches 5.06/10
In Q3, our Planet & Society barometer reaches 5.06/10 Indicators and objectives 2017 Q2 2015 Q3 2015 End of Q3 Barometer’s score : Planet Selected indicators ● Towards zero waste to landfill for 100 industrial sites 49 54 Year Performance ● 10% CO2 savings from transportation 9.5% 7.03% Year Target
Slide 7: Q3 performance by business
Q3 performance by business Schneider Electric – Investor Relations – 2015 Q3 Revenues Page 7
Slide 8: Q3 revenues up 5%, reaching €6.6bn
Q3 revenues up 5%, reaching €6.6bn Analysis of change in Group revenues (€m) Organic Fx 6,594 -1.6% Group, slightly up excl. China +6.6% +4.9% Buildings & Partner Industry 6,285 -1.2% -4.6% Infrastructure IT Scope +0.2% -0.6% -0.1% Q3 2014 Q3 2015 > Given the euro’s appreciation against the US dolla
Slide 9: Buildings and Partner observed growth in Western Europe, weakness in China and mixed trends in North America
Buildings and Partner observed growth in Western Europe, weakness in China and mixed trends in North America Analysis of change in Q3 Revenues (€m) North America was down. In the U.S., the construction market continued to grow while performance was Fx 2,983 penalized by weaker industrial activity
Slide 10: Industry declined, impacted by weak O&G investments and a slowdown in China, but sales to OEMs grew in Western Europe
Industry declined, impacted by weak O&G investments and a slowdown in China, but sales to OEMs grew in Western Europe Analysis of change in Q3 Revenues (€m) Western Europe was slightly down but sales to OEMs continued to grow. Spain and Italy continued to benefit from export oriented OEMs, Germany
Slide 11: Infrastructure grew slightly thanks to new economies
Infrastructure grew slightly thanks to new economies Analysis of change in Q3 Revenues (€m) Rest of the World posted strong growth, mainly benefitting from utilities and infrastructure investments in the Middle East Organic Scope Fx 1,273 1,273 +0.2% -2.7% +2.5% +0.0% Western Europe was negative
Slide 12: IT was about flat as growth in solutions offset weakness in products business
IT was about flat as growth in solutions offset weakness in products business Analysis of change in Q3 Revenues (€m) The U.S. was flat, despite a soft market. Growth in data center, driven by project execution, offset weakness in Fx 1 940 Home & Business Networks. Additionally the Group +8.8% +8.2
Slide 13: Q3 performance by region
Q3 performance by region Schneider Electric – Investor Relations – 2015 Q3 Revenues Page 13
Slide 14: Strong growth in new economies outside China, Western Europe stabilizing, and mixed trends in North America
Strong growth in new economies outside China, Western Europe stabilizing, and mixed trends in North America Comments based on Q3 2015 organic growth % % of Group revenues in Q3 +x% Organic growth in Q3 +x% Total growth in Q3 North America: The U.S. saw continued growth in the construction market b
Slide 15: Full year 2015 Targets
Full year 2015 Targets Schneider Electric – Investor Relations – 2015 Q3 Revenues Page 15
Slide 16: 2015 targets updated
2015 targets updated In the third quarter, the Group’s performance showed a sustained stabilization in Western Europe and good growth in new economies outside China, where markets further deteriorated. U.S. performance was impacted by weakened markets outside construction, notably in Oil & Gas and I
Slide 17: Appendices
Appendices Schneider Electric – Investor Relations – 2015 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 – 2015 Q3 Revenues Page 18
Slide 19: Q3 2015 revenues performance
Q3 2015 revenues performance €m Q3 2014 Q3 2015 Organic Scope FX Reported Buildings & Partner 2,762 2,983 -1.2% +1.2% +8.0% +8.0% Industry 1,381 1,398 -4.6% -0.4% +6.2% +1.2% Infrastructure 1,273 1,273 +0.2% -2.7% +2.5% 0.0% IT 869 940 -0.6% 0.0% +8.8% +8.2% Group 6,285 6,594 -1.6% -0.1% +6.6% +4.9%
Slide 20: 9M 2015 revenues performance
9M 2015 revenues performance €m 9M 2014 9M 2015 Organic Scope FX Reported Buildings & Partner 7,864 8,746 -0.2% +0.8% +10.6% +11.2% Industry 4,085 4,232 -5.1% -0.2% +8.9% +3.6% Infrastructure 3,637 3,789 +0.5% -1.0% +4.7% +4.2% IT 2,399 2,675 +0.1% 0.0% +11.4% +11.5% Group 17,985 19,442 -1.1% +0.1%
Slide 21: The Planet & Society barometer: Our 2015-2017 detailed sustainability scorecard, as of Q3 2015
The Planet & Society barometer: Our 2015-2017 detailed sustainability scorecard, as of Q3 2015 Planet & Society barometer Start Results Results Target (objectives for 2017) 01/2015 Q2 2015 Q3 2015 12/2017 Overall score (out of10) 3.00 4.66 5.06 8/10 10% energy savings - 2.7% 3.4% 10% 10% CO2 savings
Slide 22: Contacts & agenda
Contacts & agenda Anthony Song – Head of Investor Relations Tel: +33-1-41-29-83-29 anthony.song@schneider-electric.com Alexis Denaud – Senior Investor Relations Manager Tel: +33-1-41-29-51-24 alexis.denaud@schneider-electric.com February 17, 2016 FY 2015 Results Schneider Electric – Investor Relatio
Slide 23: Life Is On | Schneider
Lifels On | Schneider GeElectric