Schneider Electric Se · EURONEXT:SU
Schneider Electric — Q3 2021 Earnings Presentation
22 slides from Schneider Electric's earnings presentation, Oct 27, 2021
Slide 1: Third Quarter 2021 Revenues – October 27, 2021
Schneider Electric Third Quarter 2021 Revenues – October 27, 2021 Q3 2021: Group revenues up +9% organic Full Year 2021 target confirmed despite supply chain pressures 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 Q3
Strong growth in Q3 €7.2bn, +8.8% Group Q3 2021 revenues org. Energy Management Industrial Automation Energy Efficiency Process Efficiency €5.6 €1.7 +9.4% billion billion +6.7% Q3 org. sales growth Q3 org. sales growth End-Markets Buildings Data Center Infrastructure Industry Powered by SUSTAINABILI
Slide 4: Strong YTD sales - accelerating sequentially since H1
Strong YTD sales - accelerating sequentially since H1 Group +15% org. YTD vs. 2020 Group +7% org. YTD vs. 2019* Products Systems Software & Services 60% 22% 18% of YTD revenues of YTD revenues of YTD revenues +11% -2% +8% +19% +11% +9% 9M’19 9M’20 9M’21 9M’19 9M’20 9M’21 9M’19 9M’20 9M’21 * Compared
Slide 5: Sept. YTD Group revenue - exceeding 2019 levels across regions
Sept. YTD Group revenue - exceeding 2019 levels across regions NORTH AMERICA Country WESTERN EUROPE Country above/below 9M’19 above/below 9M’19 +7% +4% org. org. +15% +13% org. org. 9M’19 9M’20 9M’21 9M’19 9M’20 9M’21 REST OF WORLD ASIA PACIFIC Sub-region Country above/below 9M’19 above/below 9M’19
Slide 6: Strong traction across strategic pillars in Q3
Strong traction across strategic pillars in Q3 MORE PRODUCTS MORE SOFTWARE & SERVICES MORE SUSTAINABLE +10% +7% Strong Double-digit Org. growth in Q3 Org. growth in Q3 Org. growth in Q3 Digital and e-commerce • Software & Digital Services up double-digit channel gaining traction with good traction a
Slide 7: Accelerated sustainability journey continues
Accelerated sustainability journey continues 2021-2025 CLIMATE SSI #2 - Deliver 800 million tons of saved and avoided CO2 emissions to our customers Saved and avoided CO2 emissions since 2018 319MT Continuing the acceleration of our Sustainability consulting business to meet increasing corporate dem
Slide 8: Strong growth in Q3: up +8.8% organic, +10% vs. Q3'19
Strong growth in Q3: up +8.8% organic, +10% vs. Q3’19 Analysis of Change in Group Revenues (in €m) +2.8% +0.2% 7,221 +15.9% +10.6% +6.8% 6,458 +5.2% Mainly comprises the Group +8.8% org. acquisitions of L&T E&A, ProLeiT, ETAP and OSIsoft; offset by some disposals Q3 2020 Western Europe Asia Pacific
Slide 9: Q3 Business performance highlights by end-markets
Q3 Business performance highlights by end-markets Energy Management Industrial Automation End Markets Buildings Data Center Infrastructure Industry • Residential construction activity • Data Center & Network • Investment continued as Electric • Strong growth in Discrete driving growth in most major
Slide 10: Energy Management – Q3 performance by geography
Energy Management – Q3 performance by geography Q3 Org. growth N. America W. Europe Split of Q3 2021 revenue by geography: 23% 31% 31% 15% Rest of the World Asia Pac. North America +11% Western Europe +4% • U.S., Canada and Mexico delivered double-digit growth • Strong growth in Germany and Spain, s
Slide 11: Industrial Automation – Q3 performance by geography
Industrial Automation – Q3 performance by geography Q3 Org. growth N. America W. Europe Split of Q3 2021 revenue by geography: 27% 24% 34% 15% Rest of the World Asia Pac. North America +7% Western Europe +10% • Double-digit growth into discrete automation markets in U.S., supported • France, Italy a
Slide 12: Continued traction on buyback & portfolio optimization efforts
Continued traction on buyback & portfolio optimization efforts Successful integration Share buyback Portfolio optimization of recent acquisitions €0.3bn completed Integration progressing as per plan Disposals since reinstatement in July IMServ (EM business) – completed €0.6bn completed cumulatively
Slide 13: Evolution of market dynamics since H1 2021 results
Evolution of market dynamics since H1 2021 results • Strong and dynamic market demand continued • Progressive demand recovery in late-cycle segments continued • Global supply chains pressures including from component shortages, increased in Q3 and are unlikely to abate for at least another 2-3 quart
Slide 14: 2021 Target confirmed despite supply chain pressures
2021 Target confirmed despite supply chain pressures The Group reiterates its full year target (which assumes no further deterioration linked to COVID-19 leading to significant economic disruption) as follows: 2021 Adjusted EBITA growth of between +19% and +24% organic The target would be achieved t
Slide 15: Investor Relations ready to engage
Investor Relations ready to engage Proposing quarterly interaction with investors showcasing specific businesses, geographies or functions 27 October Q3 Revenues 30 November Capital Markets Day 3 December Credit Suisse Annual Global Industrials Conference 3 December Société Générale Premium Review C
Slide 16: Q&A
Q&A Investor Relations – Schneider Electric | Page 16
Slide 17: 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 17
Slide 18: Appendix
Appendix Investor Relations – Schneider Electric | Page 18
Slide 19: 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 -€300 million to -€400 million. The FX impact at current rates on adjusted EBITA margin for FY 2021 could be around flat • Scope: Around +€850 million on 2021 revenue
Slide 20: Q3 Group revenue: up in all main countries / zones
Q3 Group revenue: up in all main countries / zones NORTH AMERICA WESTERN EUROPE 30% +11% 24% +5% United States Canada Mexico France Germany United Kingdom Spain Italy Nordics REST OF WORLD ASIA PACIFIC 14% +16% 32% +7% Russia South America Middle East Africa China India Australia Singapore Japan % G
Slide 21: Q3 2021 Results
2021 Q1 Q2 Q3 Q4 Target Q3 2021 Results Score1 3.65 3.75 6 long-term commitments 11+1 targets for 2021 - 2025 Baseline Q3 2021 2025 Target CLIMATE 1 Grow our green revenues2 70% 70% 80% 2 Help our customers save and avoid millions of tons of CO2 emissions3 263M 319M 800M 3 Reduce CO2 emissions from
Slide 22: Life ls On | Schneider
Life ls On | Schneider @ Electric