Rueil Malmaison - April 24, 2009 – Schneider Electric shareholders met in Annual and Extraordinary Meeting yesterday, primarily to hear the reports of the Management Board and Supervisory Board and approve the financial statements for 2008. The Meeting was chaired by Henri Lachmann, Chairman of the Supervisory Board.
During the Meeting, Jean-Pascal Tricoire, Chairman of the Management Board and Chief Executive Officer, noted that Schneider Electric achieved solid results in 2008 and ended the year with a robust cash position. He also announced that all of the financial targets set by the new2 company program for 2005-2008 have been met. Management then outlined the strategic objectives and operating priorities of its new ONE company program for 2009-2011.
Shareholders approved all of the resolutions recommended by the Management Board, which concerned:
- Approval of the 2008 financial statements.
- Payment of a net dividend of €3.45 per share, up 4.5% from the previous year, payable at May 29, 2009. Shareholders may elect to receive their dividend in cash or in shares.
- An amendment to the articles of association to update the corporate purpose to reflect the Group’s development in the area of energy management and enhance the transparency of disclosure threshold notifications.
- Financial authorizations given to the Management Board and regulated agreements and commitments, notably concerning measures to put the status of Mr. Jean-Pascal Tricoire into compliancy with AFEP/MEDEF recommendations.
Shareholders did not approve a resolution that was not recommended by the Management Board concerning an exceptional reduction in the overall amount of attendance fees for 2009
The quorum was 62.6% and the resolutions were adopted with a majority vote of between 67.3% and 99.9%. The results of the voting are posted on the website www.schneider-electric.com
Jean-Pascal Tricoire discussed the Company’s first-quarter 2009 performance, linking the decline in sales to the deterioration of world economic conditions and a high basis of comparison. In January, Schneider Electric communicated organic sales decline scenarios of -5% to -15% for the full year. Considering the business trends observed since the beginning of the year, it now believes that a 15% decline has today become more and more probable. Consistent with options outlined under One company program in January, Schneider Electric has decided to target additional savings on support functions. These measures are expected to produce effect progressively over the course of this year. Consequently, it aims to deliver in 2009 an EBITA margin of 12% before restructuring costs and high level of cash conversion, of 100% of net income.
Click here to see the presentation made to the Annual Shareholders' Meeting and a replay of the webcast.
The interim financial results and second quarter sales data will be released on July 31, 2009.
About Schneider Electric
As a global specialist in energy management with operations in more than 100 countries, Schneider Electric offers integrated solutions across multiple market segments, including leadership positions in energy and infrastructure, industrial processes, building automation, and data centres/networks, as well as a broad presence in residential applications. Focused on making energy safe, reliable, and efficient, the company's 114,000 employees achieved sales of more than 18.3 billion euros in 2008, through an active commitment to help individuals and organizations “Make the most of their energy.”