Rueil-Malmaison (France), 17 November, 2010 – Schneider Electric is hosting today a meeting with investors and financial analysts during which Jean-Pascal Tricoire, President and CEO, and the company’s management team will present the strength of its business model, its strategy and growth drivers, including an in-depth presentation of its businesses (Power, Energy, Industry, IT and Buildings).
The attendees will also be able to see the most recent product innovation and solution offers illustrated by customer examples and to exchange with the head of each business in their respective field of expertise.
Business fundamentals, strategic priorities and key growth opportunities
The management presentation will provide strategic insights on the transformation of the Group as the global specialist in energy management. Thanks to its unique portfolio, global footprint and multiple accesses to diversified end-markets built on strong partnership with distributors, partners, and end-users, the Group reached world no.1 or 2 position for 90% of its global revenues. By business, Schneider Electric also highlights the best-in-class technologies and offers, the key growth drivers, the levers of differentiation and also the ability of each business to bring high value-added solutions for customers.
Looking forward, the changes in the business environment are creating major opportunities for the Group:
- Energy efficiency is now mainstream and should represent an incremental market opportunity¹ of $18 billion annually for mature countries and $27billion annually for the BRICs² by year 2020.
- Smart grid is emerging. The traditional electrical grid is becoming more complex, which will drive substantial investments for the development of new technology and upgrades of existing systems everywhere.
- New economies are driving the world economic growth.
¹ Schneider Electric estimates based on McKinsey Climate Change Special Initiative research.
² Brazil, Russia, India and China
With the ONE company program, the Group continues its transformation to seize these opportunities:
- Capture additional value in the market through solutions: by deploying the One organization with end-market focus, Schneider Electric is leveraging its full portfolio to deliver simple to use and integrated solutions to customers. These solutions, enabled by the common architecture EcoStruxure®, help customers reduce costs and achieve the highest level of energy efficiency.
- Promising development of the smart grid: with its best-in-class offers and leadership positions in low and medium voltage, Schneider Electric is well positioned to benefit from the smart grid investment on both supply and demand sides, from flexible distribution to demand response management, electrical vehicle charging infrastructure and solutions for renewable energy.
- Profitable growth in new economies: the Group’s activity in new economies reached €6.5 billion in the last twelve months (compared to €2.8 billion in 2004), or 37% of total sales. As of June 2010, Asia-Pacific and Rest of the World regions delivered a EBITA margin of approx. 20%¹ before restructuring costs, compared to approx. 17% margin of Europe and North America. The Group will continue to reinforce its market presence and industrial base in new economies.
Update on One company program mid-term growth and profitability targets
Schneider Electric reaffirms its ambition to deliver a strong organic growth of world GDP +3 points across a normal business cycle with solution business and new economies growing at a faster pace than this average, at GDP + 5 points and GDP + 6 points respectively.
The Group maintains its target of an EBITA margin range of 13% to 16% across a normal cycle, even after the consolidation impact of Areva Distribution².
¹ Non-audited figures, based on sales by country of origin, before corporate costs.
² Based on an estimated 5% EBITA margin over a full-year, Areva Distribution consolidation has a 1-point dilution impact on the Group’s EBITA margin
The event’s presentations and replay will be available at www.schneider-electric.com from November 18, 2010.
2010 full-year results will be presented on February 17, 2011.
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 100,000 plus employees achieved sales of 15.8 billion euros in 2009, through an active commitment to help individuals and organizations “Make the most of their energy”.