Schneider Electric Se · EURONEXT:SU

Schneider Electric — Q1 2020 Earnings Presentation

43 slides from Schneider Electric's earnings presentation, Apr 23, 2020

Slide 1: Supporting customers, stakeholders & society through unprecedented crisis
Supporting customers, stakeholders & society through unprecedented crisis
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 de
Slide 3: Positioning and reaction to Covid-19 crisis Q1 2020 Revenues Looking Ahead
04 Positioning and reaction to Covid-19 crisis 20 Q1 2020 Revenues 33 Looking Ahead 37 Q&A © 2020 Schneider Electric. All Rights Reserved – Page 3
Slide 5: We empower all to make the most of their energy and resources
We empower all to make the most of their energy and resources ensuring everywhere, for everyone, at every moment © 2020 Schneider Electric. All Rights Reserved – Page 5
Slide 6: We support mission-critical functions in a world under stress
We support mission-critical functions in a world under stress… Buildings Data Centers Infrastructure Industry Hospital Food and Beverage Data Centers Grid for electrical distribution Water and Wastewater Life at Home © 2020 Schneider Electric. All Rights Reserved – Page 6
Slide 7: …and de-risk operations through unmanned process & digital
… and de-risk operations through unmanned process & digital Remote control Remote Monitoring Advisor Safety Preventive Maintenance Augmented Reality © 2020 Schneider Electric. All Rights Reserved – Page 7
Slide 8: We play a critical role in healthcare worldwide
We play a critical role in healthcare worldwide USA UK Germany • Provide power halls • NHS – Supporting • Emergency power test for China in hospitals new hospital build out ERs & operation theatre. • Mobile ICU • Power distribution for operating rooms • Temporary medical tent in emergency hospitals
Slide 9: …and in other critical sectors
…and in other critical sectors Maintenance of critical Ensuring 100% uptime infrastructure Preventive maintenance for Data Center in Europe Round-the-clock maintenance support during downtime at leading airport "Work from home" UPS solutions to enable for several global IT giants meet increase deman
Slide 10: Our core value propositions are even more relevant
Our core value propositions are even more relevant... enabled by our unique business model Energy Energy Industrial Industry Management Automation Transition 4.0 EFFICIENCY + RESILIENCE SUSTAINABILITY Integrated Open Multi-local Empowered © 2020 Schneider Electric. All Rights Reserved – Page 10
Slide 11: Past transformations strengthened solid fundamentals
Past transformations strengthened solid fundamentals Flexible Cost Geographical Exposure People Footprint Less Cyclical Software & Services Base Cashflow Free cash conversion conversion €3.2 bn 28% 41% 58% 74% €1.7 bn 72% 30% 59% 70% 103% 121% W Europe (~44%) W Europe ~42% 8% 16% 26% >50% ~40% (26%)
Slide 12: We have built strong capabilities...
We have built strong capabilities... EcoStruxure across entire portfolio (1st version launched in 2008) OFFERS More Digital and connected offers Strong Software portfolio Digital Services (Advisors, Cybersecurity and Sustainability services) Apps & Analytics to enhance Connected Products/Control sys
Slide 13: Customer adoption of Digital is accelerating
Customer adoption of Digital is accelerating Commercial actions to enable digital adoption in mission critical applications Strong traction for Digital Services Asset Management Services Remote monitoring Predictive maintenance >40% growth in Assets under Management Q1 YoY © 2020 Schneider Electric.
Slide 14: Increased interaction with customers through Digital tools
Increased interaction with customers through Digital tools… Based on targeted end-markets & channels: webinars, blogs, whitepapers, application guides End Markets Healthcare Services Edge-Telecom-DC Commercial Buildings OEM, CPG (Food, Pharma) Channels IT Solution Providers Contractor, Wholesaler SE
Slide 15: Seamless transition for business continuity
Seamless transition for business continuity… One Schneider For 12 years Digitizing Internal processes One IT One Supply Chain Globalized functions Multi-hub Remote/video management management For 9 years Country empowerment Empowered by country for fast and coordinated reaction Digital Communication
Slide 16: Supply chain fully reactive
Supply chain fully reactive… Globally coordinated and regionally managed % 2019 Group Sales % 2019 Group COGS WESTERN EUROPE NORTH AMERICA 26% 29% c. 30% c. 20% ASIA PACIFIC 29% REST OF WORLD c. 40% 16% c. 10% Factory & Distribution ~ 95% factories and DC Operating (on April 22, 2020) Centre Headcou
Slide 17: Our specific priorities through this crisis
Our specific priorities through this crisis 1 2 3 4 5 Health Business Cash & Ready for Communities Continuity Costs Rebound Be ready for post-crisis © 2020 Schneider Electric. All Rights Reserved – Page 17
Slide 18: Structured crisis management teams
Structured crisis management teams A federated crisis management task force Mostly local, tightly coordinated globally Rapid interval management Leveraging digital and Multi hub experience Dedicated teams Transparency and trust Empowered execution Leveraging Multi Hub Global Control Tower Leveraging
Slide 19: We remain focused on our fundamentals for the future
A synopsis of our message for Q1 We remain focused on our fundamentals for the future… Equity Ambition Trust Digital Innovation Services 1 2 3 4 5 Growth engines Safety Software EcoStruxure Remote Services Road to c.17% margin Quality Digital Services Connected products Sustainability services Retur
Slide 21: Q1 2020 impacted largely by China on expected lines
Q1 2020 impacted largely by China on expected lines €5.8bn, -6.4% Group Q1 2020 revenues org. Energy Management Industrial Automation -6.1% €4.4 €1.4 -7.3% billion billion Q1 org. sales Q1 org. sales Sales evolution through the quarter was contrasted China - progressively improved towards end of qua
Slide 22: We continue to make traction on projects with a focus on digital and sustainability
We continue to make traction on projects with a focus on digital and sustainability… Large office building Next Generation Danske Bank Country Immigration Data LTD services New Jersey, U.S. UK Denmark South-East Asia Consistent EcoStruxure Building Reliable electrical main distribution Remote monito
Slide 23: Group Q1 Revenues, -6% organic
Group Q1 Revenues, -6% organic Analysis of Change in Group Revenues (in €m) 6,307 FX +0.7% 5,830 -6.4% org. Scope -1.9% Q1 2019 Mainly due to the disposal of Q1 2020 Transactional -6.2% org. Mainly due to the Pelco, Converse, the US Systems -13.1% org. appreciation of the Panels and the Electroshiel
Slide 24: Q1 Group revenue by geography
Q1 Group revenue by geography NORTH AMERICA WESTERN EUROPE 32% +1% 28% -3% United States Canada Mexico France Germany United Kingdom Spain Italy REST OF WORLD ASIA PACIFIC 15% -2% 25% -19% Russia South America Middle East Africa China India Australia Indonesia Japan % Group Sales Org. growth © 2020
Slide 25: Energy Management: down -6.1% organic
Energy Management: down -6.1% organic €4.4bn Q1 performance highlights 75% of Group Q1 2020 revenues • China sales impact and recovery at the end of the quarter Energy Management were as expected • Focus on critical segments like Hospitals, food chain and life science projects 4,738 • Data Centers d
Slide 26: Energy Management by geography
Energy Management by geography Org. growth 35% 26% 23% 16% Split of Q1 2020 revenue by geography: N. America W. Europe Asia Pac. Rest of the World North America +1.4% Western Europe -1.5% • U.S – weakening CIB & Residential towards end of • Growth in Jan/Feb; however impacted by crisis in March quar
Slide 27: Industrial Automation: down -7.3% in Q1
Industrial Automation: down -7.3% in Q1 €1.4bn 25% of Group Q1 2020 revenues Industrial Automation Q1 performance highlights • The results reflected the evolution of the economic cycle coupled with the impact of the Covid-19 crisis 1,569 • Discrete and Process & Hybrid both down FX 1,447 • Process &
Slide 28: Industrial Automation by geography
Industrial Automation by geography Org. growth 22% 32% 29% 17% Split of Q1 2020 revenue by geography: N. America W. Europe Asia Pac. Rest of the World North America -3.2% Western Europe -5.9% • U.S. Process was impacted by weak O&G and MMM • Decline across Discrete and Process & Hybrid markets while
Slide 29: Strong liquidity position
Strong liquidity position €6.3 bn c. €9 bn Dec 31,2019 Apr 23,2020 Cash and cash equivalents Cash and cash equivalents + + 2 successful Bonds Available credit lines + Available credit lines No financial covenant Credit rating upgraded by Moody’s in November 2019 © 2020 Schneider Electric. All Right
Slide 30: Focus on strict cost management measures
Focus on strict cost management measures Acceleration of efficiency plans announced in Capital Markets Day 2019 Further tactical cost actions under review based on multiple scenarios Focus on agility in implementing cost measures (as demonstrated in 2009) Multi-local set-up enabling targeted actions
Slide 31: Our capital allocation priorities remain unchanged
Our capital allocation priorities remain unchanged M&A in the core Disposal of non-core activities Closing of acquisition of Larsen & Toubro E&A No significant disposals in Q1 2020 division delayed as a consequence of nationwide Committed to €1.5bn - € 2 bn disposal plan lockdown in India Offer proc
Slide 33: Looking Ahead…
Looking Ahead… Enter the crisis with strong fundamentals (strategy, organization, balance sheet, cash generation) Growth engines reinforced (Sustainability, digital, automation, services, regionalization) China on path to recovery Prepare for a very difficult Q2/H1 Committed to journey towards c. 17
Slide 34: We are ready for the post-crisis world
We are ready for the post-crisis world … EFFICIENCY DIGITAL RESILIENCE SUSTAINABILITY Core business Software Critical infrastructure Climate change Key segments: Digital services & tools Micro grids Circularity Hospitals & Health Homes Automated operations Remote control Life cycle services Grids E-
Slide 35: Tomorrow Rising Fund
Tomorrow Rising Fund Respond Recovery Resilience Ventilators: Today the fund The fund prepare Each employee is France, US and India. allocate to the first allocation for asked to become, needs of low- tomorrow relaunch volunteer with time income people urgently education and share skills to 3D face
Slide 37: Investor Relations ready to engage
Investor Relations ready to engage Proposing quarterly interaction with investors showcasing specific businesses, geographies or functions 23 Apr Annual General Meeting 10 June Exane BNP Paribas European CEO Conference (virtual) 11 June JP Morgan CEO conference (virtual) 23 July H1 Results September
Slide 38: 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 © 2020 Schneider Electric. All Rights Reserved – Page 38
Slide 40: Strong sustainability commitments
Strong sustainability commitments Carbon neutrality in 2025 with Livelihoods fund carbon offsets and more customers’ CO2 savings than our own emissions No gas & end of SF6 in 2025 Net-zero operational emissions by 2030 as part of validated Science-Based target Net-zero supply chain by 2050 © 2020 Sc
Slide 41: Schneider Sustainability Impact 2018 – 2020, results as of Q1 2020
Schneider Sustainability Impact 2018 – 2020, results as of Q1 2020 Objective Beginning Results Results 12/2020 01/2018 Q4 2019 Q1 2020 Our megatrends 2015 – 2020 and targets 2018 – 2020 Overall Score out of 10 9/10 3 7.77 7.15 80% renewable electricity -- 50% 50% CLIMATE 10% CO2 efficiency in transp
Slide 42: Developing a differentiated DNA
Developing a differentiated DNA Measuring our progress in sustainability, social responsibility, innovation & performance 3yrs 7yrs 4th 1st WIN Top 40 9yrs WIN 5th ESG Leaders Index © 2020 Schneider Electric. All Rights Reserved – Page 42
Slide 43: Life Is On | Schneider Electric
Lifels On | Schneider GeElectric

Schneider Electric — Q1 2020 Earnings Presentation on 6ix

Schneider Electric — Q1 2020 Earnings Presentation

Slide 1: Supporting customers, stakeholders & society through unprecedented crisis

Slide 2: Disclaimer

Slide 3: Positioning and reaction to Covid-19 crisis Q1 2020 Revenues Looking Ahead

Slide 4: Positioning and reaction to Covid-19 crisis

Slide 5: We empower all to make the most of their energy and resources

Slide 6: We support mission-critical functions in a world under stress

Slide 7: …and de-risk operations through unmanned process & digital

Slide 8: We play a critical role in healthcare worldwide

Slide 9: …and in other critical sectors

Slide 10: Our core value propositions are even more relevant

Slide 11: Past transformations strengthened solid fundamentals

Slide 12: We have built strong capabilities...

Slide 13: Customer adoption of Digital is accelerating

Slide 14: Increased interaction with customers through Digital tools

Slide 15: Seamless transition for business continuity

Slide 16: Supply chain fully reactive

Slide 17: Our specific priorities through this crisis

Slide 18: Structured crisis management teams

Slide 19: We remain focused on our fundamentals for the future

Slide 20: Q1 2020 Revenues

Slide 21: Q1 2020 impacted largely by China on expected lines

Slide 22: We continue to make traction on projects with a focus on digital and sustainability

Slide 23: Group Q1 Revenues, -6% organic

Slide 24: Q1 Group revenue by geography

Slide 25: Energy Management: down -6.1% organic

Slide 26: Energy Management by geography

Slide 27: Industrial Automation: down -7.3% in Q1

Slide 28: Industrial Automation by geography

Slide 29: Strong liquidity position

Slide 30: Focus on strict cost management measures

Slide 31: Our capital allocation priorities remain unchanged

Slide 32: Looking Ahead

Slide 33: Looking Ahead…

Slide 34: We are ready for the post-crisis world

Slide 35: Tomorrow Rising Fund

Slide 36: Q&A

Slide 37: Investor Relations ready to engage

Slide 38: Investor Relations contacts

Slide 39: Appendix

Slide 40: Strong sustainability commitments

Slide 41: Schneider Sustainability Impact 2018 – 2020, results as of Q1 2020

Slide 42: Developing a differentiated DNA

Slide 43: Life Is On | Schneider Electric