Schneider Electric Se · EURONEXT:SU
Schneider Electric — Q1 2018 Earnings Presentation
32 slides from Schneider Electric's earnings presentation, Apr 19, 2018
Slide 1: Q1 2018: Strong growth across our portfolio of Energy Management and Industrial Automation
Q1 2018: Strong growth across our portfolio of Energy Management and Industrial Automation April 19, 2018 Schneider Electric
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: Q1 2018 Business highlights Q1 2018 Business performance Full Year 2018 Targets
04 Q1 2018 Business highlights 12 Q1 2018 Business performance 21 Full Year 2018 Targets 24 Appendix Schneider Electric – Investor Relations Page 3
Slide 4: Q1 2018 Business Highlights
Q1 2018 Business Highlights
Slide 5: Organic growth of +6.2% with strong organic growth in both our core businesses
Organic growth of +6.2% with strong organic growth in both our core businesses Energy Management Industrial Automation c.+6% +9% Q1 organic Q1 organic with Delixi With an Integrated and Digitized portfolio to step up efficiency for our customers Schneider Electric – Investor Relations Page 5
Slide 6: Strong revenue growth: +6.2% organic in Q1, +7.7% working day adjusted
Strong revenue growth: +6.2% organic in Q1, +7.7% working day adjusted Strong growth in both Energy Management Strategic priorities delivering in Q1 and Industrial Automation • Energy Management: +5.2% organic, with strong • Products up +8% organic, with Wiring Devices & Final growth in residential,
Slide 7: Good progress in strategic priorities - Cross selling as a growth driver
Good progress in strategic priorities - Cross selling as a growth driver Pull-through technology orders growing faster than lead technology Leading electronic O&G producer European colocation Desalination manufacturer Argentina service provider Northern Africa India France Power reliability & improv
Slide 8: Good progress in strategic priorities: EcoStruxure continues momentum
Good progress in strategic priorities: EcoStruxure continues momentum Selected EcoStruxure wins in Q1 Critical facilities operation for Leading Cloud services provider World famous food Grid construction project in global IT company in India in Ireland manufacturer in U.K. China • EcoStruxure Power
Slide 9: And many more to come…
Recent key events Factory Visit in Wuhan Signing ceremony of Inauguration of our Inauguration of Le Joined forces with Danfoss Innovation Summit (China) - Global Supply Beijing CITIC-Schneider Innovation Hub in East Asia Vaudreuil, Digital and Somfy to create a Paris, 4,000+ visitors, 13M+ Chain Str
Slide 10: Good progress in strategic priorities: Schneider Sustainability Impact reaches 3.56/10
Good progress in strategic priorities This quarter, our Schneider Sustainability Impact reaches 3.56/10 Indicators & objectives 2020 - selection Q1 2018 Highlights of the quarter CLIMATE 25% increase in turnover for our 4.3% The Planet & Society barometer 2015-2017 now becomes Energy & Sustainabilit
Slide 11: Recognition and Continuous Commitment in multiple areas
Recognition and Continuous Commitment in multiple areas Our People Our Business & Products Our Sustainable Model Gender equality For our supply chain Number 3 worldwide for performance index efforts in customer- its revenue devoted to January 2018 oriented solutions and the energy transition platfor
Slide 12: Q1 2018 Business Performance
Q1 2018 Business Performance
Slide 13: Key macro drivers are positive
Key macro drivers are positive End Market Resi. & Non-resi. Buildings Industry & Infrastructure Data Center & Networks Utilities • Positive demand on CIB1 • Favorable Industry & • Continued capital • Utilities challenged by overall, with increasing Infrastructure demand overall investment in Data de
Slide 14: Focused execution of strategy leading to faster growth
Focused execution of strategy leading to faster growth Strong positioning in fast growing Some actions to outperform the market segments, businesses and markets With illustrative examples Innovation Wiring devices and final distribution -Recent launches: AvatarOn customizable wiring (residential/CIB
Slide 15: Analysis of change in group revenues: strong organic growth of +6.2%
Strong organic growth of +6.2% ANALYSIS OF CHANGE IN GROUP REVENUES (in €m) Industrial Energy Scope Automation Management1 +1.5% +9.2% +5.2% 5,800 5,840 -0.7% FX -8.4% Group Organic +6.2%, c.+7.7% working day adjusted Q1 2017 Q1 2018 Based on current rates, the FX impact on FY 2018 revenues is estim
Slide 16: Energy Management: Medium Voltage business performance
Energy Management: Strong growth in offers for residential, commercial & industrial buildings, industry, infrastructure and data centers Medium Voltage Business - Performance highlights Energy Management • -2.7%, with strong order growth over last 6 months • Sales performance impacted by low backlog
Slide 17: Energy Management: Low Voltage business performance
Energy Management: Strong growth in offers for residential, commercial & industrial buildings, industry, infrastructure and data centers Low Voltage Business - Performance highlights Energy Management • +9.1%, c.10.3% including Delixi • Strong growth across all regions and across offers • Double-dig
Slide 18: Energy Management: Secure Power business performance
Energy Management: Strong growth in offers for residential, commercial & industrial buildings, industry, infrastructure and data centers Energy Management Secure Power Business - Performance highlights • +2.7% organic growth, growing in all regions #1 worldwide • Good growth in data centers benefitt
Slide 19: Industrial Automation at +9.2%: great performance in discrete and machine automation
Industrial Automation at +9.2%: great performance in discrete and machine automation Industrial Automation Industrial Automation Business - Performance highlights • Growth in all four regions driven by strong OEM demand and #2 worldwide #4 worldwide continued success in the execution of the Group’s
Slide 20: Strong growth across most regions, with double-digit growth in Asia Pacific
Strong growth across most regions, with double-digit growth in Asia Pacific x% % of Group revenues in Q1 +x% Organic growth in Q1 ✓ North America 27% +5% ✓ Western Europe 28% 0% United States Canada Mexico France Germany United Kingdom Spain Italy . ✓ Rest of the World 17% +5% ✓ Asia-Pacific: 28% +1
Slide 21: Full Year 2018 Targets
Full Year 2018 Targets
Slide 22: The Group re-affirms its 2018 Targets
The Group re-affirms its 2018 Targets The Group continues to successfully implement its strategy in a positive market environment in Q1 with strong growth in Products, Services and Digital offers, leveraging cross-selling of the full portfolio. The strong performance in Q1 bodes well for the organic
Slide 23: 2018 additional notes
2018 additional notes • Exchange rates impact: Based on current rates, the FX impact on FY 2018 revenues is estimated to be between -€1.0bn to -€1.1bn. The FX impact at current rates on adjusted EBITA margin is expected to be c.-20bps. Based on current rates, the Group expects c.80% of the full year
Slide 24: Appendix
Appendix ectric
Slide 25: 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 EBITDA EBIT before depreciation, amortization, provisions and before share-based compensation cost
Slide 26: Schneider Sustainability Impact 2018 – 2020, Results as of Q1 2018
Schneider Sustainability Impact 2018 – 2020, Results as of Q1 2018 Start 01/2018 Results Q1/2018 Our megatrends 2015 – 2020 and targets 2018 – 2020 Overall Score out of 10 5/10 3 3.56 80% renewable electricity -- 5% CLIMATE 10% CO2 efficiency in transportation -- -- 100 million metric tons avoided C
Slide 27: Our ambition is to prove 'More years'
We believe climate change can A worldwide innovative methodology be overcome through innovation designed by Schneider Electric to quantify and collaboration CO2 savings delivered to our customers 2020 target • Rigorous • ×1.5 ÷2 3× Transversal • Forward-looking Energy consumption CO2 emissions We ha
Slide 28: Energy Management: driving strong cross-sell in segments
Extract from FY 2017 results Energy Management Complete end-to-end offering addressing customer needs across segments Delivering higher reliability and efficiency … driving strong cross-sell in segments combining Medium & Low Voltage, Secure Power c.90% of MV packaged with LV outside of utilities po
Slide 29: Industrial Automation – Growth at the Core
Extract from FY 2017 results Industrial Automation – Growth at the Core Application knowledge for We lead at the Edge w/ EcoStruxure Synergies w/ Energy Management greater conversion of machines Plant & differentiated software driving customer value in Industry & Infrastructure end-markets EcoStruxu
Slide 30: Investor Relations ready to engage – H1 2018 calendar
Investor Relations ready to engage – H1 2018 calendar ✓ Proposing quarterly interaction with investors showcasing specific businesses, geographies or functions ✓ Recent events: ✓ Upcoming events: 24 April Shareholders’ meeting, Paris La Défense 15 February FY 2017 Results 25 April Hannover Automatio
Slide 31: Contact
Contact Amit Bhalla– Head of Investor Relations Tel: +44-20-7592-8216 amit.bhalla@schneider-electric.com Alexis Denaud – Senior Investor Relations Manager Tel: +33-1-41-29-51-24 alexis.denaud@schneider-electric.com
Slide 32: Life Is On | Schneider Electric
Lifels On | Schneider f Electric