Continued strong performance in H1 2019, FY target upgraded Revenue - PowerPoint PPT Presentation

Continued strong performance in H1 2019, FY target upgraded Revenue growth of +5.4% organic, Adj. EBITA up +11% organic, strong FCF Investor Relations - Schneider Electric

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. Investor Relations - Schneider Electric Page 2

04 H1 2019 Business Highlights 15 Business Performance Highlights 20 H1 2019 Finance Presentation 33 2019 Target Upgraded 37 Appendix Investor Relations - Schneider Electric Page 3

H1 2019 Business Highlights Strategy continues to deliver strong performance Photos: J.Deloy – SE Design Lab

Our unique positioning: Energy and Automation digital solutions for efficiency and sustainability Energy Energy Industrial Industry Management Automation Transition 4.0 significant customer benefits… Energy efficiency Productivity Reliability and Safety Sustainability Up to Up to Up to Aiming at ~65% -50% 50% 0 Carbon emissions (Average 30%) CapEx (integration) Fewer incidents Serving 4 end-markets: Buildings Data Centers Infrastructure Industry Investor Relations - Schneider Electric Page 5

Our strategy continues to deliver strong financial performance Industrial Automation Energy Management €13.2b n, +5.4 % Energy efficiency Process efficiency Group H1 2019 org. revenues € 3.1 € 10.1 c.+30bps c.+80bps b n b n Org. adj. EBITA Org. adj. EBITA +7% + 1 % H1 org. sales H1 org. sales growth growth 14.8 %, +70 bps Group H1 2019 org. Adj. EBITA IA org. sales excludes the non-core U.S. panel offer Investor Relations - Schneider Electric Page 6

H1 2019 Key Results: Unique portfolio delivering strong growth Strong revenue growth Sustained profit momentum Strong shareholder focus Revenue More Products More Services + 5% + 4% + 8% Organic growth Organic growth Organic growth More Software More EcoStruxure Better Systems + 100 bps Up double-digit Above Group average Organic growth Organic growth Operating Margin on high-single digit growth Investor Relations - Schneider Electric Page 7

H1 2019 Key Results: Continued and consistent expansion of Group adj. EBITA margin Strong revenue growth Sustained profit momentum Strong shareholder focus Adj. EBITA Adj. EBITA margin Adj. Net Income € 1.3bn, + 10% + 10.9% + 70 bps Organic growth Organic improvement Adj. EBITA margin: c.+330 bps organic Consistent organic + 230 bps reported 14.8 Adj. EBITA margin On track for 14.4 14.1 expansion in both c.+200bps margin lower growth and 13.3 ambition by 2021 higher growth 12.5 (pre FX) environments: H1 2015 H1 2016 H1 2017 H1 2018 H1 2019 Investor Relations - Schneider Electric Page 8

H1 2019 Key Results: Focus on shareholder returns, strong free cash generation and disciplined capital allocation Strong revenue growth Sustained profit momentum Strong shareholder focus Portfolio management Strong H1 FCF • € 837m L&T competition approval • Pelco disposed 2.0x higher vs. H1’18 • 2.4x higher including IFRS 16 US Panels disposed Share buyback Continued success from recent acquisitions € 1.5 to 2.0bn AVEVA & Asco Over 3 years, Both growing double-digit in H1 €80m since AGM approval in late April Investor Relations - Schneider Electric Page 9

Consistent execution on our growth strategy pillars MORE PRODUCTS MORE SERVICES BETTER SYSTEMS New connected products for greater Clear plan for growth across Systems provides resilience across efficiency across end-markets geographies and businesses economic cycle. Orders growth in mid to late cycle segments Field services – continued progress in tracking installed base: 41% tracked MMM Buildings Digitally enabled services – multiple TeSys Island Modicon M262 Easergy P5 O&G CPG new offers and customer wins Engage with customers to add value Asset advisor while enabling profitable growth - from Smart Acti 9 ComPact NSX & UPS Li-Ion iDT40 NSXm Micrologic tendering to execution • Asset efficiency and optimization Vigi • Uptime & consistent plant operations >50 new offers launched in H1 Building advisor • Monitoring 6.7m sq.feet across 49 buildings • Over $900K in energy savings in year 1 Investor Relations - Schneider Electric Page 10

More Digital: Strong progress in digitizing Strong performance through apps, Enriching our offer customer engagement & ecosystem analytics and digital services Multiple launches of new Strong growth of Assets Under Strong growth of SE software portfolio for EcoStruxure Advisor apps Management Data Centers and Smart Grids Some examples: 2.4m + 40% YoY IGE+XAO growing c.+8% Launch of Schneider Electric Energy services projects gaining traction Exchange EcoStruxure EcoStruxure Building Engage Workplace Advisor AVEVA revenue synergies on track Revenue growing double digit in H1’19 - Scale Create Collaborate - Enhancing portfolio through Maxgrip 45,000+ registered users EcoStruxure EcoStruxure 200 apps developed Process Safety Clean-In-Place Advisor Advisor 23 communities EcoStruxure Layers 2 & 3 growing faster than Group average in H1 Investor Relations - Schneider Electric Page 11

Selection of H1 customer successes across markets BUILDINGS DATACENTERS INFRASTRUCTURE INDUSTRY Major medical institution Marina Bay Sands Urban transportation Baowu Steel Middle East Singapore Argentina China Energy Management digital solution EcoStruxure for Data Center to Global management system of the EcoStruxure Plant solution to help – covering electrical distribution and upgrade the existing facility and electrical distribution, integrating all customer achieve their smart BMS, supported by SE strong support the growth of the business resources (water pumping, lighting manufacturing goals technical capabilities monitoring, electric alarms, etc.) • • • • Green solution: replacing additional From connected products 30% cost saving on maintenance From sensors and connected batteries by innovative control (electrical distribution, cooling, through predictive maintenance products to edge control, advisors schemes racks, UPS) to analytics and remote control capabilities and Wonderware platform • • • • Comprehensive data & monitoring Enhanced monitoring for increased 20% energy saving Solving specific pain points through to enhancing energy efficiency reliability and greater efficiency EcoStruxure Hoisting Expert Operation • 10% efficiency increase Investor Relations - Schneider Electric Page 12

Sustainability at the heart of our strategy and business Schneider Sustainability Impact: 6.78/10 in Q2 Schneider wins the Philips supplier innovation event Indicators & objectives 2020 - selection Royal Philips, Netherlands Q2 2019 Q1 2019 120,000 metric tons CO ₂ saved on our • Schneider value proposal: greater efficiency through new customers’ end thanks to our CLIMATE 70 55 generation technology and sustainable business models EcoStruxure offers • Schneider received an engagement letter to pursue business CIRCULAR 200 sites labeled towards zero waste to 185 178 ECONOMY landfill Galaxy VX with 90% of white collars have individual HEALTH & ECOnversion mode 72% - development plans EQUITY +5.5 pts increase in average score of ETHICS ISO26000 assessment for +2.3 pt +2.2pt CUSTOMER BENEFITS our strategic suppliers • Up to 70% UPS energy consumption reduction x4 turnover of our Access to Energy DEVELOPMENT x 1.42 • x1.09 11t CO 2 annual emission savings program Investor Relations - Schneider Electric Page 13

Our distinctive DNA is externally recognized Commitment to sustainability: Climate, Ethics, Empowered Diversities; Inclusive Practices; Lean Organization; Multi-Hub Model; Circular economy, Health and Equity, Development Inclusive Behaviors; Advocacy The Schneider Way; #FreeUpYourEnergy Batam Smart Factory in 7th year 9th year Indonesia designated as an Advanced 4 th Industrial Revolution Lighthouse Supply Chain #1 in sector in Rankings 2019: Driving Low #11 Global / #3 in Carbon Transition Europe EcoVadis - Wiser Radiator WESOP wins Gold medal in Thermostat Best Plan recognition in CSR Best Product of Effectiveness achievement the Year 2019 #1 vendor in Ecostruxure IT #1 award in EDI, Energy as a Expert as Innovation Digitization & Service Solutions of the Year Statistics Providers Investor Relations - Schneider Electric Page 14