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Schneider Electric — Q3 2023 Earnings Presentation
19 slides from Schneider Electric's earnings presentation, Oct 26, 2023
Slide 1: Third Quarter 2023 Revenues – October 26, 2023
Schneider Electric Third Quarter 2023 Revenues – October 26, 2023 Continued strong execution aligned with strategic growth objectives FY23 Target reaffirmed Internal
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 2023
Strong growth in Q3 2023 €9bn +12% Group Q3 2023 revenues org. Energy Management Industrial Automation Energy Efficiency Process Efficiency €7 €2 +13% billion billion +5% Q3 org. sales growth Q3 org. sales growth End-Markets Buildings Data Center Infrastructure Industry DIGITAL ELECTRIC SUSTAINABLE
Slide 4: Systems continues to lead growth, with strong contribution from Software & Services
Systems continues to lead growth, with strong contribution from Software & Services PRODUCTS SYSTEMS SOFTWARE & SERVICES 54% of Q3 revenues 28% of Q3 revenues 18% of Q3 revenues +5% +23% +17% Q3 organic growth Q3 organic growth Q3 organic growth • Up mid-single digit in Energy Management • Strong do
Slide 5: On track towards meeting full-year sustainability impact targets
On track towards meeting full-year sustainability impact targets 2021-2025 Q2 Q3 CIPS, one of the most prestigious recognitions in 5.76 the field of procurement, selected Schneider Electric as a 3x winner of Excellence awards, including Sustainable Procurement Champion, The Zero Carbon Project and P
Slide 6: Delivering compelling offers to our customers across end-markets
Delivering compelling offers to our customers across end-markets Through mixed-use facilities and a holistic In collaboration with Schneider Electric and Helping Ports America decarbonize their Schneider Electric is streamlining approach designed a lively environment Elite Data Centre Partner, On365
Slide 7: Q3 2023 up +12% organic
Q3 2023 up +12% organic Analysis of Change in Group Revenues (in €m) +27.2% -3.0% +16.9% -7.5% +7.3% +3.5% Mainly representing the exit from Russia, combined with 8,779 the net impact of several 8,789 small acquisitions / disposals Group +11.5% org. Mainly driven by weakening of US Dollar and Chines
Slide 8: Q3 Business performance highlights by end-market
Q3 Business performance highlights by end-market Energy Management Industrial Automation End Markets Buildings Data Center & Networks Infrastructure Industry • Demand remains good in non- • Strong sales growth in Data Center • Strong demand from Electric • Sales contrasted with strong residential te
Slide 9: Backlog continued to build in Q3
Backlog continued to build in Q3 • Record high backlog at the end of Q3 Q3 2023 vs Q3 20221 • Overall backlog increase due to systems, with backlog consumption in products Data Center ++ +11.5% Machine Solutions / OEM -- +15.8% +14.8% Org. sales Org. sales Org. sales growth in Q3 Residential Buildin
Slide 10: Energy Management – Q3 org. growth performance by geography
Energy Management – Q3 org. growth performance by geography W. Europe N. America Asia Pac. Rest of the World Split of Q3 2023 revenue by geography: 22% 38% 28% 12% North America +18% Western Europe +9% U.S. up double-digit while Canada grew high-single digit and Mexico up U.K. up strong double-digit
Slide 11: Industrial Automation – Q3 org. growth performance by geography
Industrial Automation – Q3 org. growth performance by geography W. Europe N. America Asia Pac. Rest of the World Split of Q3 2023 revenue by geography: 28% 24% 32% 16% North America +12% Western Europe +3% U.S. up double-digit, while Canada around flat and Mexico down slightly U.K. grew double-digit
Slide 12: Expected trends in Q4
Expected trends in Q4 Demand environment Geographical trends • North America and Rest of the World expected to lead growth, China • A continuation of strong and dynamic market demand, supported expected to show positive sales growth for the year by secular trends of electrification, digitization and
Slide 13: 2023 Target reaffirmed
2023 Target reaffirmed The Group reaffirms its 2023 financial target as follows: 2023 Adjusted EBITA growth of between +18% and +23% organic The target would be achieved through a combination of organic revenue growth and margin improvement, currently expected to be: • Revenue growth of +11% to +13%
Slide 14: Q&A
Q&A Investor Relations – Schneider Electric | Page 14
Slide 15: Investor Relations ready to engage
Investor Relations ready to engage 26 October Q3 2023 Revenues 9 November Capital Markets Day (London) 29 November Société Générale Premium Review Conference (Paris) 4 December Goldman Sachs Conference (UK) Capital 9 November Markets Tottenham Hotspur Stadium More CMD information available here : ht
Slide 16: Appendix
Appendix Investor Relations – Schneider Electric | Page 16
Slide 17: 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 -€1.35 billion to -€1.45 billion. The FX impact at current rates on adjusted EBITA margin for FY 2023 could be around -80bps Scope: Around -€850 million on 2023 revenue
Slide 18: Q3 2023 Results
2023 Q1 Q2 Q3 Q4 Target Q3 2023 Results Score1 5.76 6.00 6 long-term commitments Baseline Q3 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 513M 800M 3. Reduce CO2 emissions from top 1,000 suppli
Slide 19: Life Is On | Schneider Electric
Life ls On | Schneider @ Electric