EPG 2019 Presentation Jean-Pascal Tricoire Chairman & CEO - Schneider Electric Investor Relations - Schneider Electric | Page 1
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
We positioned the business on the optimization of the demand side € 26 billion Employees in over 100 countries c.5 % 137,000+ 42 % Schneider Electric Key figures for 2018 Revenues invested in R&D 2018 revenues in new economies 2018 revenues Power Generation Transmission & Distribution Demand/Consumers Energy Value Chain Industry Infrastructure Residential & Buildings IT More Electric + More Digital + More Distributed + More Automation IoT, Big Data, Renewables, EV, Data Centers >90 % Our revenues <10% Investor Relations - Schneider Electric | Page 3
Our unique positioning : Energy and automation digital solutions for efficiency and sustainability Energy Industrial Energy Transition Industry 4.0 Management Automation Significant Customer ENERGY EFFICIENCY PRODUCTIVITY RELIABILITY & SAFETY SUSTAINABILITY Benefits… ~65 % -50 % 50 % 0 Up to Up to Up to Aiming at (Average 30%) CapEx (integration) fewer incidents carbon emissions Serving 4 Buildings Data Centers Infrastructure Industry end-markets Investor Relations - Schneider Electric | Page 4
Energy Management Energy Management billion revenues 17.8 € 20 Number one for Energy efficiency and electrification KEY TECHNOLOGIES: Adj. EBITA (%) Medium Voltage + Low Voltage + Secure Power Unrivalled Portfolio Depth to cover Digitally integrated within Largest Partner Network the full Power Management chain EcostruXure Power Investor Relations - Schneider Electric | Page 5
Industrial Automation Industrial Automation billion revenues 18.0 € 6 Process efficiency, cross selling with energy efficiency KEY TECHNOLOGIES: Adj. EBITA (%) Discrete Automation + Process Automation + Industrial Software Full automation capabilities from Full digital asset lifecycle Digital integration in EcostruXure OEM/ discrete to process management with AVEVA Plant and machine Investor Relations - Schneider Electric | Page 6
Our strategy is delivering (2018 figures) €26 bn, +7 % Energy Management Industrial Automation Energy Efficiency Process Efficiency Group FY 2018 revenues org. + 7 % + 8 % € 20 € 6 FY organic sales growth* FY organic sales growth billion billion c.+60bps c.+70bps Org. adj. EBITA Org. adj. EBITA …delivering strong financial performance 15,1 % , +50bps Group FY 2018 org. Adj.EBITA * Including Delixi, reported under equity method since 2016 Investor Relations - Schneider Electric | Page 7
Strong start to 2019, confirming 2018 € 6.3bn, +5.9 % Energy Management Industrial Automation Energy Efficiency Process Efficiency Group Q1 2019 revenues org. € 4.7 € 1.6 + 7 % c.+ 4 % * billion billion 2019 Target Reaffirmed * Excluding panels business phase down in the U.S. Investor Relations - Schneider Electric | Page 8
Our strategy has led us to be more balanced, resilient and agile Balanced and growing across regions Balanced across the cycle 2018 Group Revenue Orders (Internal Estimation) FY 2018 org. growth c.16% c.29% Asia Pacific +10% Early cycle North America +8% Mid & Late cycle c.27% Western Europe +3% c.28% Rest of World +5% Software & Services growing within portfolio Agile & Flexible Cost Of Goods Sold • Multi-regional set up with proximity to % Of Group Revenue customers • Tailored Sustainable & Connected Supply Software & Services in 2013 (circa 10%) Chain, with focus on regional manufacturing Software & Services expansion ’13 - ’18 (c.16%) • Flexible cost base Variable Costs Fixed Costs Investor Relations - Schneider Electric | Page 9
We have been and are committed to corporate social responsibility Commitment Commitment for Recognized for Best Practices for Human principles of for Employee Share Plan Rights women automomy Most Ethical companies Commitment for circular Commitment for For the 9 th economy sustainable and low consecutive year #1 of global companies carbon development #3 in CAC40 Leading Digital Transformation Top 15 Performance index Respecting in gender equality gender equality Most sustainable #3 global Commitment for more companies Sales towards energy renewable energy Top 100 for the 7 th transition consecutive year Supply Chain Rankings 2018: #12 Global / #5 in Europe Ranked by One of the best Women in India employers promoting diversity Climate Change: Engagement in Energy Commitment for higher rated A for the 8th efficiency energy efficiency consecutive year One of the #5 globally of One of the Recommende best « SRI Leader » For the second Attractivity by most d by 81% of employers 397 ISR funds year in a row LinkedIn attractive employees promoting shareholders employers interviewed diversity Investor Relations - Schneider Electric | Page 10
Our strategy is delivering Growth momentum continues in 2019 Strong Revenue Growth Sustained Profit Momentum Strong Shareholder Focus More Products More Services More EcoStruxure 3 2 3 5 6 8 7 5 6 Better Systems Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 17 17 17 17 18 18 18 18 19 Quarterly organic growth performance (%) Investor Relations - Schneider Electric | Page 11
More EcoStruxure Higher growth than the Group in More than 2 million connected 2018 and targeted assets,+34% vs 2018 Investor Relations - Schneider Electric | Page 12
EcoStruxure bringing value to customers across end-markets Building Infrastructure Data Center Industry EDWARDS AIR FORCE BASE Investor Relations - Schneider Electric | Page 13
Schneider Electric Exchange The first open, multi-industry ecosystem in the world devoted to solving real problems for a more efficient and more sustainable world CREATE COLLABORATE SCALE Develop integrated efficiency solutions in Meet experts and innovators for solving Increase business by having access to a every field of energy and automation concrete problems and building new world-wide client base management in an open ecosystem solutions. Investor Relations - Schneider Electric | Page 14
Our strategy is delivering Continuous improvement of the adj. EBITA margin in past 3 years with further improvement targeted Strong Revenue Growth Sustained Profit Momentum Strong Shareholder Focus Continued expansion of Adj. EBITA margin (%) over past 3 years, in both All-time high Net Income in 2018 lower growth and higher growth environments € 2.3 bn Targeting + 9 % +200bps (pre-FX) +c.210bps org. Basic EPS 2018 € 4.21 13.7 14.1 14.8 15.1 + 9 % 2015 2016 2017 2018 2019 2020 2021 Ambition Investor Relations - Schneider Electric | Page 15
Strong focus on optimizing our portfolio and on returns to shareholders Strong Revenue Growth Sustained Profit Momentum Strong Shareholder Focus Continued Portfolio Optimization Strong Returns To Shareholders Disciplined and successful M&A in the core • c. 80% of FCF returned to shareholders in past 4 years AVEVA, ASCO, IGE+XAO • Progressive dividend • 2019-2021: initiated €1.5 -2bn share buyback Selective pruning of the portfolio +5% CAGR ~€ 2.3 bn 1.9 2.0 2.0 2.2 2.4 generated through disposals of non-core activities since 2014 2014 2015 2016 2017 2018 Dividend per share Investor Relations - Schneider Electric | Page 16
2019 Target reaffirmed 2019 Target: Adj. EBITA growth between +4% and +7% organic Levers: 2019 Revenue growth: 2019 Adjusted EBITA margin: +3% to +5% organic Up +20 to +50 bps organic Investor Relations - Schneider Electric | Page 17
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