February 17, 2016
Full Year 2015 Results
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 description of these factors and uncertainties, please refer to the section “Risk
Factors” in our Annual Registration Document (which is available on www.schneider-electric.com). Schneider Electric
undertakes no obligation to publicly update or revise any of these forward-looking statements.
This presentation includes information pertaining to our markets and our competitive positions therein. Such information is
based on market data and our actual revenues in those markets for the relevant periods. We obtained this market
information from various third party sources (industry publications, surveys and forecasts) and our own internal estimates.
We have not independently verified these third party sources and cannot guarantee their accuracy or completeness and our
internal surveys and estimates have not been verified by independent experts or other independent sources.
Page 2 Schneider Electric – Investor Relations
30 Full year 2016 targets
32 Appendices
Page 3 Schneider Electric – Investor Relations
Full year 2015 performance highlights 4
Full year 2015 finance presentation 19
Full year 2015 performance highlights
Page 4 Confidential Property of Schneider Electric |
Schneider Electric 2015 highlights
Balanced geographies – FY 2015 revenues
€26.6 billion FY 2015 revenues
43% of FY revenues as
Solutions
c.5% of FY revenues
devoted to R&D
43% of FY revenues in
new economies
Four integrated and synergetic businesses – FY 2015 revenues
27% North
America
18% Rest of
the World
26% Western
Europe
29% Asia-
Pacific
45% 21% 20% 14%
Industry Buildings & Partner Infrastructure IT
Page 5 Schneider Electric – Investor Relations
This quarter, our Planet & Society barometer reaches 6.33/10
Barometer’s score end of Q4: This year, Schneider Electric was awarded by:
2
0
2017
8
6
4
10
2016Q1 Q3 Q4
2015Q1Q2 Q2 Q3 Q1 Q2 Q3 Q4Q4
8
4.5
6
4th quarter 2015
Target 2017
6.33/10
Page 6 Schneider Electric – Investor Relations
• Industry Leader in DJSI for the 3rd
consecutive year and “Industry Mover”
• Climate Leadership by CDP Highest
rating of 100 out of 100 and member of the
‘Climate A list’ for the 5th consecutive year
• Ethisphere, world's most ethical
companies listed for the 5th consecutive
year
• 12th most sustainable company in the
world in Global 100 most sustainable
corporations
• Most sustainable company of CAC40 for the 2nd consecutive year by Enjeux Les
Echos and Institut RSE
See details in Page 34
Record results thanks to quick adaptation in a challenging
environment and balanced exposure to end-markets & regions
Record revenues, org. growth impacted by China, O&G, Invensys one-offs
Buildings & Partner and IT delivered solid results, Industry is on trajectory
to recover margin and Infrastructure is turning the corner
Western Europe resumed growth, New Economies outside China were up,
as well as U.S construction markets
Growth in service and Industrial software
Record high Adj. EBITA
At constant FX, FY Adj. EBITA margin about stable and up ~50bps in H2
thanks to accelerated SFC reduction
FY revenues €26.6bn, up +6.8%
organically -1%, ~flat underlying1
Adj. EBITA €3.6bn, up +5%, Margin 13.7%, ~stable excl. FX
Successful Invensys integration
Solid start of Schneider is On
Invensys margin slightly up
~€0.7bn gross SFC & industrial savings
Project margin improvement in H2
Strong growth in adjusted earnings per share (Adj. EPS)2
Another year with record high Free Cash Flow
Increased shareholder return
Adj.EPS up +6% / Free cash flow +20%
Proposed dividend up +4%
Target €1.5bn buyback in 2015-2016
1: Adjusted for negative impacts from change of fiscal year closing in Invensys and ramping down China nuclear project, the estimated full year impact is about €40m and €66m respectively
2: See slide 25 for detailed calculation
Page 7 Schneider Electric – Investor Relations
H2 organic growth was in line with H1 despite deteriorated
markets, notably in O&G and China
FY 2015 organic growth, %
Group: -1% org,
~ flat underlying1
Organic growth, %
Page 8 Schneider Electric – Investor Relations
-0.9
0.30.4
IT Infrastructure Industry
-4.9
~ -1.9
~ -3.0
Buildings
& Partner
Excl. Invensys closing
impact and China
nuclear ramp-down
1: Adjusted for negative impacts from change of fiscal year closing in Invensys and ramping down
China nuclear project, the estimated full year impact is about €40m and €66m respectively
Group
-1.1 -0.9
IT
-2.1
0.5
Infrastructure
0.0 0.7
Industry
-4.5 -5.3
Buildings
& Partner
0.4 0.4
H2 2015
H1 2015
Reflecting higher
project selectivity
Impacted by high
comparison base
in Q4
Both revenues and margin were up in Buildings and Partner,
strengthening its worldwide leadership position
Page 9 Schneider Electric – Investor Relations
Organic growth
+0.4%
Adj EBITA margin
18.0%
Performance in 2015
€12bn 45% of Group 2015 revenues
Low voltage & Building Automation
#1
worldwide
Performance highlights
Growth across all regions except Asia Pacific, up ~2%
outside China
Retail showed robust growth, up low single-digit while
project business was impacted by softer activity in selected
end-markets
Margin expansion as a result of new product launches,
digitization and efficiency gains
Execution priorities
Continue to drive retail in all the regions
Maximize all businesses through partners
Continue to grow through new product launches and digital
transformation
Attention to cost and pricing
IT enhanced its competitiveness and maintained high
performance level in a volatile market
Page 10 Schneider Electric – Investor Relations
Organic growth
-0.9%
Adj EBITA margin
17.6%
Performance in 2015
€3.7bn 14% of Group 2015 revenues
Critical Power, Cooling & Services
#1
worldwide
Performance highlights
Growth in Western Europe thanks to positive IT investment,
while China & Russia were weak, and U.S. was soft
Services performed well
Margin remains at high level thanks to good SFC control
Execution priorities
Drive product business through channel expansion and
new offers
Leverage total Group portfolio and develop integrated
offers for datacenter
Keep services growth momentum
Continue cost discipline
Infrastructure is turning the corner with Adj. EBITA margin up
+50bps, targeting double-digits margin by 2016
Page 11 Schneider Electric – Investor Relations
Organic growth
+0.3%
Adj EBITA margin
9.1%
Performance in 2015
€5.4bn 20% of Group 2015 revenues
Medium voltage & grid automation
#1
worldwide
Performance highlights
Strong growth on service and product business resumed
growth in H2
All the regions were up except Asia Pacific
Good control of cost and project margin improved in H2
Target to reach double-digits adj. EBITA margin by 2016
Execution priorities
Grow in products and services, while highly selective on
projects
Consistent project execution program
Strong control on SFC and further optimize industrial
footprint
Despite headwinds from O&G & China, Industry executed
Invensys integration well and is on track for margin recovery
Page 12 Schneider Electric – Investor Relations
Organic growth Reported / Underlying1
-4.9% / ~ -3%
Adj EBITA margin
17.1%
Performance in 2015
€5.7bn 21% of Group 2015 revenues
#2
Worldwide
Discrete #4
Worldwide
Process
Performance highlights
Org. Growth impacted by Invensys China nuclear ramp
down and change of fiscal YE closing. Underlying1 growth is
c. -3% for Industry & down mid-single digit for Invensys
Margin slightly up in H2: solid execution and cost control
Strong focus on reacting to headwinds from O&G, China
Growth in Western Europe and Rest of the World
OEM solution up thanks to innovation & channel initiatives
Execution priorities
Boost product business by new offer launch & cross selling
Accelerate OEM and software through new applications
Reposition end user exposure and focus on growing
strategic accounts
Continuous control of SFC 1: Adjusted for negative impacts from change of fiscal year closing in
Invensys and ramping down China nuclear project, the estimated full
year impact is about €40m and €66m respectively
Successful Invensys integration shows our strong capability in
driving value creation through acquisition
Page 13 Schneider Electric – Investor Relations
Strengthen software capability
Boost positions in key electro-intensive segments
Reinforce industrial automation capabilities
Oil &Gas
Provide pipeline management solution for a
leading oil & gas player thanks to enlarged
offer and enhanced service capability
Implement energy management system in
multiple sites for government customer
thanks to Wonderware software capabilities
Facility upgrade project for major water
treatment customer using Foxboro state-of-
the-art technology and best-of-breed Water and Waste
Water
Buildings
Sound financial performance in 2015 High quality of assets fulfilling strategic intents
Underlying1 revenue down mid-single digit
Adj. EBITA Margin slightly up despite increased R&D
Synergies execution on track, Strong contribution to Group
~€55m cost synergies delivered (~€130m in 2 years)
Revenues synergies delivered on target in 2015
~€300m tax synergies achieved in 2 years
~€70m integration costs (~€150m in 2 years as announced)
Field devices down ~20% in FY
Software stable in H2. Orders up strongly in FY
Services around flat in FY, with strong growth in H2
1: Adjusted for negative impacts from change of fiscal year closing in Invensys and ramping
down China nuclear project, the estimated full year impact is about €40m and €66m
respectively
Positive: positive mix, software gross margin expansion,
good control of administrative cost and cost synergies
Negative: ~€40m increase in R&D cost and lower volume
Western Europe resumed growth and New Economies outside
China continued to grow
Page 14 Schneider Electric – Investor Relations
Western Europe organic growth, %
1
-2
2015 2014
New economies outside China organic growth , %
4
2
2015 2014
France up driven by solid execution in a difficult market
Growth in Italy, Spain and U.K.
Focus on project selectivity and recovery of Industry in
Germany
Growth in India, Mexico and Africa
Middle East benefited from solid project execution
Adapting operations to weakness in Russia and Brazil
+3% organically
in Q4
Our growth initiatives were well executed, achieving good
results in a difficult market
Page 15 Schneider Electric – Investor Relations
Organic industrial software order growth
Organic revenues growth, %
-1
7
Group Service
Wonderware performed well thanks to diversified exposure
Scim Sci benefited from strategic accounts approach
Strong growth in O&G pipeline management
Growth across all the businesses
Strong field service growth thanks to increased
tracking of installed base and geography expansion
+6%
Strong attention to our cost base to continuously improve
operational efficiency
Page 16 Schneider Electric – Investor Relations
Industrial productivity, m€
359356
2015 2014
Support function cost to revenues ratio, %
-0.5 pt 23.3
2015 2014
23.8
c. €300m gross
SFC savings
We launch highly differentiated offers to strengthen our
technology leadership and our network of partners
Page 17 Schneider Electric – Investor Relations
Easergy T300
RTU compatible with all
standards and configurable
to customer needs
Altivar Process
Digital service oriented
drive to reduce OPEX in
installations
Back-UPS Connect BGE50ML
Mobile power pack UPS
to protect and power-up home
networking equipment
Resource Advisor software
provides Energy consumption
insight to reduce building
operating cost
Triconex
Highly integrated safety
system for critical
control applications
SAFE RELIABLE EFFICIENT CONNECTED SUSTAINABLE
Smart Panel
Fully connected distribution
panel including Energy &
Maintenance management
Conext SW
Solar hybrid inverter for off-
grid, backup power and self-
consumption
Ecoblade
Smart & scalable
energy storage
system for all
customers needs Foxboro S Series DP
Its unique turndown
capability allows to handle
applications normally
requiring multiple
transmitters
Wiser Air empowers home
owners and utilities to drive
energy efficiency
Solid start of Schneider is On as all initiatives delivered good
results
INITIATIVES PROGRESS UPDATE in FY 2015
> Growth in service, software and products
> Drive cross selling for higher share of wallets
> Constant project execution
> Services revenues up ~+7% org,
> Industrial software orders +6% org
> Increased project hit rate & Gross Margin at booking,
reduced margin deviation
DO MORE
> Develop Connected offers
> Digital customer experience
> Number of connected assets up +45% DIGITIZE
> Growth by innovation
> A partner & investment of choice in
sustainability
> New offer launches aligned with our value proposition
> Planet & Society barometer reached 6.33/10
INNOVATE
SIMPLIFY > Deliver industrial productivity of ~€1bn by 2017
> Reduce gross SFC by €0.4-0.5bn by 2017
> €0.36bn industrial productivity achieved
> ~€0.3bn savings delivered, target upgraded
Page 18 Schneider Electric – Investor Relations
Full year 2015 finance presentation
Page 19 Confidential Property of Schneider Electric |
Revenues up 6.8% in 2015, reaching record high of €26.6bn.
Underlying organic growth is about flat
Analysis of change in Group revenues (in €m)
> Based on current rates, the negative FX impact on FY 2016 revenues is estimated to be ~ -€1.0bn. This is
mainly due to the decline of several new economies’ currencies against euro since summer 2015 and the
decline accelerated in the end of 2015.
26,640 +6.8%
2015
Fx
+7.8%
Scope
+0%
Rest of World
+5% North America
-2 %
Asia-Pacific
-5%
Western Europe
+1%
2014
24,939
Group: -1% org, ~flat underlying1
Page 20 Schneider Electric – Investor Relations
1: Adjusted for negative impacts from change of fiscal year closing in Invensys and ramping down China nuclear project, the estimated full year
impact is about €40m and €66m respectively
+2% outside
China
Positive net pricing and strong productivity partially offset
negative mix, higher R&D depreciation and cost inflation
Gross margin: analysis of change (%)
2015 GM
37.0
FX
-0.4
Prod. Labor
infl. & others
-0.5
1.3
Productivity
-1.3
Mix
-0.3
R&D cost
in COGS
Net price
0.5
Volume
0.0
2014 GM
37.7
• -0.7pt : Large project pricing
(impacted by competitive
pressure & investment for
future services) and a few
project one-offs. H2 showed
improvement at -0.6pt vs.
-1pt in H1.
• -0.6 pt : geography,
business & product /
solution mix
New product
launches drove up
R&D depreciation
• Raw material tailwind of
€182m more than offset price
decline of €93m, mainly due
to China. Pricing positive
outside China
• In China, strong efficiency
gains offset negative price
Page 21 Schneider Electric – Investor Relations
Organically, Adj. EBITA margin ~stable, up c.50bps in H2 thanks
to accelerated SFC1 control and robust industrial productivity
In €m H2 2014 H2 2015 Reported Change
FY 2014 FY 2015 Reported Change
Revenues 13,239 13,792 +4.2% 24,939 26,640 +6.8%
Gross Profit 4,950 5,093 +2.9% 9,407 9,845 +4.7%
Support function
costs (2,991) (3,053) +2.1% (5,944) (6,204) +4.4%
Adjusted EBITA 1,959 2,040 +4.1% 3,463 3,641 +5.1%
Margin % 14.8% 14.8% stable 13.9% 13.7% -20 bps
Margin organic development 14.8% 15.3% ~ +50 bps 13.9% 13.8% ~stable
• 2.4 points growth rate
difference between revenues
and SFC (organic reduction of
c.-2.7% in 2015)
• SFC organic reduction in H2
accelerated reaching c.
€0.3bn gross SFC savings in
2015
• Target upgraded to around
€0.6bn gross SFC savings
by 2017
Page 22 Schneider Electric – Investor Relations
1: Support function cost
3 businesses showed margin improvement in H2, with Industry
recovering strongly from H1
1: Before corporate costs of €300m in 2015 (€279m in 2014)
+0.2 pt, slightly up thanks
to better support function
cost control
+0.5 pt, benefiting from project
gross margin improvement in
H2 and a good SFC control
-1.2 pt down, penalized
by negative mix and FX
transaction impact
IT 17.6
18.8
Infrastructure 9.1
8.6
Industry 17.1
18.4
Buildings &
Partner 18.0
17.8
FY 2014 FY 2015
Slightly up in H2, FY -1.3 pt,
penalized by volume decline,
negative FX and higher R&D
amortization costs.
FY Adjusted EBITA margin (%) by business2
Page 23 Schneider Electric – Investor Relations
H2 Adjusted EBITA margin (%) by business1
Buildings &
Partner
18.6
18.1
18.0
IT 19.0
20.4
11.6
18.7
Infrastructure 11.1
Industry
H2 2014 H2 2015
2: Before corporate costs of €605m in 2015 (€557m in 2014)
Adj. EBITA up 5%, but EBITA impacted by divestments and
higher restructuring charge as expected
In €m FY2014 FY2015 y-o-y
Change
Adjusted EBITA 3,463 3,641 +5.1%
Other income and expenses (106) (522)
- of which losses on business disposals (1) (324)
- of which acquisitions & integration costs (114) (118)
Restructuring (202) (318)
EBITA 3,155 2,801 -11%
Mainly due to disposal of non-
core businesses Juno,
Telvent Global Services &
Transportation
Page 24 Schneider Electric – Investor Relations
Restructuring costs expected
to be in high-end of €700-
€900m in 2015-2017 to drive
efficiency initiatives.
Adjusted for exceptional items, net income and earnings per
share up +6%
In €m FY2014 FY2015 y-o-y Change
EBITA 3,155 2,801 -11%
Amortization & impairment of purchase accounting intangibles (259) (572)
Cost of net debt (467) (446)
Income tax (551) (389)
Share of profit on associates & Discontinued ops 183 109
Minority interests (120) (96)
Net income (group share) 1,941 1,407 -28%
Invensys integration cost post-tax1 63 57
Impact of business disposals (in OOIE, share of
profit on associates & discontinued ops) (152) 226
Impairment on Pelco net of tax 180
Restructuring charges post-tax1 156 249
Adjusted Net income 2,008 2,119 +6%
Adjusted EPS (€) 3.51 3.73 +6%
Normalized tax rate2 at
c.21%, benefiting from
Invensys.
Page 25 Schneider Electric – Investor Relations
Adjustment for Juno,
Telvent Transportation &
Global services and CST
1: Calculated post-tax at the year effective tax rate (ETR).
c.€300m impairment
related to Pelco
cost of debt (net)
decreased by c. -€17m
2: Tax rate adjusted for impacts from business disposals and Pelco
impairment
Free cash flow +20% thanks to better working capital
management
Strong control
over payables and
receivables
Analysis of debt change in €m FY2014 FY2015
Net debt at opening Dec 31 (3,326) (5,022)
Operating cash flow 2,640 2,715
Capital expenditure – net (829) (787)
Change in trade working capital (162) 91
Change in non-trade working capital 55 26
Free cash flow 1,704 2,045
Dividends (1,205) (1,219)
Acquisitions – net 1 (1,743) 322
Net capital increase (134) (448)
FX & other (318) (309)
(Increase) / Decrease in net debt (1,696) 391
Net debt Dec 31 (5,022) (4,631)
Mainly due to FX
impact
Page 26 Schneider Electric – Investor Relations
Includes €600m
share buyback
1: including dividend from CST holding in 2015
Fast progress on portfolio optimization and higher shareholder
return as committed, target upgraded on share buy back
Page 27 Schneider Electric – Investor Relations
Potential disposal of non-core / non-
strategic businesses
€1.0 to 1.5bn share buyback program by
end-2016
Progressive dividend
Focus on value-accretive Bolt-on M&A
Commitments at Feb 2015 Investor day
2015 Highlights
~€470m cash generated from disposals of
Juno, Telvent Global Services and CST
~11m shares bought back for ~€0.6bn
Now target ~€1.5bn share buy back by 2016
Proposed dividend1 €2 per share, up >4% vs
2014
Focused on value-accretive Bolt-on M&A.
1: Subject to shareholder approval on April 25, 2016
Strong cash conversion and solid balance sheet
Page 28 Schneider Electric – Investor Relations
116
2015
1133
2014
962
2013
108
2015 2014
1.0
1.2
Cash Conversion1, % Net Debt / Adj. EBITDA1
1: See definition page for details of calculation
2: Based on Net income adjusted for discontinued ops
3: Based on Net income adjusted for business disposals impact and Pelco impairment (see p25)
1: Based on share price prior to dividend payment, or Feb.12 2016 for 2015 dividend
2: Subject to shareholder approval on April 25, 2016
Dividend history
2.8%
1.70 1.872 1.87
0
1
2
3
4
5
0.5
1.0
1.5
2.0
2009
1.03
2015
2.002
20142
1.92
2013
1.87
2012
1.87
2011
1.70
2010
1.60
DPS (€)
Dividend Yield (%) 1
Proposed dividend of €2.00 per share, an increase of 4%,
reflecting the growth of underlying net income
Page 29 Schneider Electric – Investor Relations
Full Year 2016 Targets
Page 30 Confidential Property of Schneider Electric |
2016 Targets
Page 31 Schneider Electric – Investor Relations
In 2016, the Group sees continued growth in Western Europe and the construction market in the
U.S. At the same time, headwinds from O&G, overall weakness in the U.S. industry markets,
difficulties in China though to a lesser degree than in 2015 and mixed trends in the rest of new
economies are expected. Additionally, given the accelerated decline of several new economies'
currencies against the euro in the end of 2015, the Group should also face a material FX headwind
in 2016.
In this context, the Group’s priorities are margin improvement by working on costs, growing its
partner’s network through the launch of many new integrated offers, accelerating services and
software, and increasing selectivity on projects focusing on its sectors of expertise.
Therefore, for 2016 the Group targets:
> Organic revenues growth to be flat to down low single-digit, impacted by the Group’s higher
selectivity on project activities.
> +20bps to +60bps improvement on adjusted EBITA margin before FX. The negative FX impact
on margin is estimated at -40bps to -50bps at current rates.
Appendixes
Page 32 Confidential Property of Schneider Electric |
Definitions
Page 33 Schneider Electric – Investor Relations
● 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
● Adjusted EBITDA: Adjusted EBITA before depreciation, amortization, provisions and before
share-based compensation cost
● Cash conversion: Free cash flow / Net income (Group share)
● Free cash flow: Operating cash flow less change in working capital less net capital
expenditures
● ROCE: Return On Capital Employed
The Planet & Society barometer
Our 2015-2017 detailed sustainability scorecard, as of Q4 2015
The arrow shows if the indicator has risen, stayed the same or fallen compared to the previous quarter.
The colour shows if the indicator is above or below the objective of 8/10.
10% energy savings
10% CO2 savings from transportation
Towards zero waste to landfill for 100 industrial sites
100% of products in R&D designed with Schneider ecoDesign WayTM
Planet & Society barometer (objectives for 2017)
Overall score (out of10)
Start
01/2015
3.00
Target
12/2017
8/10
Results
Q4 2015
6.33
30% reduction in the Medical Incident Rate (MIR)
One day training for every employee every year
64% scored in our Employee Engagement Index
85% of employees work in countries with Schneider gender pay equity plan
150,000 underprivileged people trained in energy management
1,300 missions within Schneider Electric Teachers NGO
75% of product revenue with Green PremiumTM eco-label
100% of new large customer projects with CO2 impact quantification
120,000 tons of CO2 avoided through maintenance, retrofit and end-of-life services
x5 turnover of Access to Energy program to promote development for underprivileged people
100% of our recommended suppliers embrace ISO 26000 guidelines
All our entities pass our internal Ethics & Responsibility assessment
-
-
34
-
4.5%
8.4%
64
13.3%
10%
10%
100
100%
60.5%
-
-
-
48%
-
75%
100%
120,000
x5
100%
100%
30%
85%
64%
85%
150,000
1,300
-
79%
61%
-
73,339
460
67.1%
-
44,777
X2.07
64.7%
88%
17%
85.6%
61%
57%
102,884
878
Results
Q3 2015
5.06
3.4%
7.03%
54
12.5%
62.1%
-
28,937
x2.1
59.1%
72%
23%
73.1%
61%
-
94,948
695
Page 34 Schneider Electric – Investor Relations
Adj. EBITA up +5.1% and margin about stable at constant FX
Page 35 Schneider Electric – Investor Relations
Analysis of change of adjusted EBITA (in €m)
254
174359
-154
Productivity Net price2
89
Mix
-382
Volume
-97
FY 2014
3,463
3,641
FY 2015 Currency
effects
Net
acquisition
impact
6
COGS
(Inflation
& R&D)1
Other SFC
-71
1: Of which Production labour & other Costs: -€70m and R&D depreciation increase in COGS: -€84m
2: Of which pricing: -€93m and RMI: +€182m
ROCE calculation
Page 36 Schneider Electric – Investor Relations
1: Effective Tax rate adjusted for impacts from business disposals and Pelco impairment
1
ROCE calculation
2015
P&L items Reported
EBITA (1) 2 801
Restructuring costs (2) -318
Other operating income & expenses (3) -522
= Adjusted EBITA (4) = (1)-(2)-(3) 3 641
x Effective tax rate of the period1 (5) 21,0%
= After-tax Adjusted EBITA (A) = (4) x (1-(5)) 2 875
2014 2015 2015
Balance sheet items reported reported Avg of 4
quarters
Shareholders' equity 20 151 21 289 (B) 20 969
Net financial debt 5 022 4 631 (C) 5 805
Adjustment for Associates and Financial assets (fair value) -651 -492 (D) -532- Sunten Electric Equipment (40% stake) 88 98 98
- Fuji Electric FA Components & Systems (36.8% stake) 91 108 107
- NVC Lighting (9.2% stake) 54 33 52
- CST Holding (30% stake) 81 93 82
- Other non-current financial investments 337 159 193
= Capital Employed 24 573 25 428 (E) = (B)+(C)+(D) 26 243
= ROCE (A) / (E) 11,0%
Q4 Performance
Page 37 Confidential Property of Schneider Electric |
Strong organic growth in Buildings & Partners while IT was
impacted by high base of comparison
Page 38 Schneider Electric – Investor Relations
Analysis of change in Group revenues (€m)
7,198 +3.5%
Q4 2015
Fx
+4.3%
Scope
-0.2%
IT
-3.5%
Infrastructure
-0.1%
Industry
-4.3%
Buildings &
Partner
+2.0%
Q4 2014
6,954
Organic: -0.6%
Buildings & Partner grew across all regions except Asia Pacific
Page 39 Schneider Electric – Investor Relations
3,113 +7.7%
Q4 2015
Fx
+4.9% Scope
+0.8% Organic
+2.0%
Q4 2014
2,890
Analysis of change in Q4 Revenues (€m) North America was up. In the U.S, new offer
launches , strong growth in the construction market
and solid execution of commercial initiatives in solar
market supported the growth. The region also
benefited from growth in Mexico.
In Western Europe, Spain, Italy and the U.K. were
up, France performed well thanks to strong
execution in a stagnant market and Germany was
penalized by a high comparison base despite good
performance in the construction market thanks to
targeted initiatives.
Asia-Pacific declined due to weakness in China
while performance outside China remained positive.
Rest of the world was up thanks to continued
growth in the Middle East and Africa.
43% of Q4 revenues
Industry impacted by further deterioration in O&G and continued
weak industrial activities in China
Page 40 Schneider Electric – Investor Relations
1,464
-0.1%
Q4 2014 Q4 2015
Organic
-4.3%
Fx
+4.1% 1,466
Scope
+0.1%
Analysis of change in Q4 Revenues (€m) Western Europe grew as Italy, Spain, and the U.K.
were up thanks to positive OEM demand and
successful OEM customer conversion. France and
Germany also grew benefiting from growth
initiatives.
The U.S. was down due to further decreased
industrial investments, notably in O&G, and a weak
export-OEM demand impacted by a strong U.S.
dollar. In this context the Group continues to focus
on growing services and expanding coverage.
Asia Pacific was penalized by weakness in China,
while the rest of the world performed well.
Invensys revenues were down mid-single digit,
excluding the impact from the China nuclear project
ramp down. Field Devices and Systems businesses
were impacted by a deteriorated O&G market while
the software business grew.
20% of Q4 revenues
Infrastructure was about flat thanks to strong project execution
Page 41 Schneider Electric – Investor Relations
Q4 2015
1639 -0.1%
Fx
+2.3% Scope
-2.3%
Organic
-0.1%
Q4 2014
1,640
Analysis of change in Q4 Revenues (€m) North America was up benefiting from project
execution in Canada in a challenging market.
Despite headwinds from O&G and delays in data
center investments, the U.S. was also about flat
thanks to the execution of growth initiatives in
targeted segments.
Western Europe grew, driven by France, Nordics
and the U.K. while Germany declined due to greater
project selectivity.
The performance in Asia Pacific was penalized by
weakness in Australia and China.
Rest of the world performed well, driven by Africa
and project execution in the Middle East, while
Russia remained difficult.
23% of Q4 revenues
IT was down -3.5% organically, penalized by a high comparison
base
Page 42 Schneider Electric – Investor Relations
Scope
+0.2%
Q4 2015
Fx
+5.8%
982 +2.5% Organic
-3.5%
Q4 2014
958
Analysis of change in Q4 Revenues (€m)
The U.S. was down due to soft IT investment and a
high base of comparison, while services grew
strongly.
Western Europe was up thanks to good execution of
the Group’s channel strategy.
Asia Pacific was dragged down by China, while the
rest of the region was about stable.
Rest of the world declined mainly driven by
weakness in Russia.
Services growth was strong, up double-digits.
14% of Q4 revenues
Western Europe and Rest of World brought strong support to
the Q4 performance
Page 43 Schneider Electric – Investor Relations
Analysis of change in Group revenues (€m)
Scope
-0.2%
Fx
+4.3%
Q4 2015
7,198 +3.5%
Rest of
World
+5%
North
America
-3%
Asia-
Pacific
-6%
Western
Europe
+3%
Q4 2014
6,954
Organic: -0.6%
Western
Europe
Asia
Pacific
North
America
Rest of
the World
26%
28%
27%
19%
Q4 revenues
Contacts & agenda
Page 44 Schneider Electric – Investor Relations
Anthony Song – Head of Investor Relations
Tel: +33-1-41-29-83-29
Alexis Denaud – Senior Investor Relations Manager Tel: +33-1-41-29-51-24
Apr 21, 2016
Apr 25, 2016
Q1 2016 Revenues
Annual General Meeting
Conference call
Meeting