Schneider Electric
First Quarter 2024 Revenues - April 25, 2024
Q1 2024 - Revenues up +5% organic; Full Year Target reaffirmed
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 Universal Registration Document (which is available on www.se.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
Q1 2024 - revenues up +5% organic
Enabling a
SUSTAINABLE
future
Group
€8.6bn +5.3%
Q1'24 revenuesorg. growth
Energy ManagementIndustrial Automation
€6.9bn +8.9% | €1.7bn -6.6% | |
Q1'24 revenues | org. growth | Q1'24 revenuesorg. growth |
Driven by Megatrends:
1 | 2 | 3 | 4 | 5 |
Digitization & | Climate | Energy | Evolution | New Global |
Artificial Intelligence | Change | Transition | of Wealth | Equilibrium |
Investor Relations - Schneider Electric Page 3
Public
Growth in Q1 led by Systems and Field Services
PRODUCTS | SYSTEMS |
53% of Q1 revenues | 28% of Q1 revenues |
+2% | +14% |
SOFTWARE & SERVICES
19% of Q1 revenues
+5%
Q1 organic growth
- Energy Management up with consumer- linked segments mostly stabilized and good growth elsewhere
- Industrial Automation down due to continued weakness in discrete automation, notably in Western Europe and East Asia, while China saw growth
- Product price contribution returned to a normalized level, volumes were positive
- Headwind from fewer working days in Q1 compared to last year
Q1 organic growth
- Energy Management up strong double-digit with continued strong demand, notably in Data Center and Infrastructure end-markets
- In Industrial Automation, good growth into Process & Hybrid markets, while Discrete markets remain impacted by weakness in
OEM
Q1 organic growth
- One Software1 (c. €1.9bn of revenue FY232)
- ARR at AVEVA up +13%. Organic growth impacted by change of year-end. Strong growth in SaaS revenues
- Energy Management software up mid- single digit; good underlying business and recurring revenue growth, lower license revenue due to subscription transition
- Digital Services (c. €1.0bn of revenue FY23)
- Strong growth, led by Energy Management Advisors & Grid digitization
- Field Services up +12% with double-digit growth in both businesses
- The Group's agnostic software offering under its 'One Software' strategy comprises AVEVA, RIB Software and ETAP
- On a proforma basis adjusted for disposals at RIB Software in 2023
Investor Relations - Schneider Electric Page 4
Sustainability Impact score continues to progress
2021-2025
Sustainability Impact Awards: 12 global partners, customers, and suppliers recognized for
CLIMATE
576M 2
SSI #2 - Help our customers save and avoid 800 million tonnes of CO2 emissions
In Q1 2024, Schneider Electric continued to help its customers save and avoid more millions of tonnes of CO2 emissions thanks to its solutions and services, such as Variable Speed Drives and Power Monitoring solutions.
outstanding performance in
decarbonizing their own operations or the operations of their customers
RESOURCES
65%
SSI #5 - 100% of our primary and secondary packaging is free from single-use plastic and uses recycled cardboard
Schneider Electric's sustainable packaging transformation continued to progress this quarter, driven by a positive evolution in North America and in Pacific region.
Schneider Electric launches Materialize. Uniting leading critical resource and materials companies to reduce supply chain emissions
EQUAL
48.1M 3
SSI #9 - Provide access to green electricity to 50M people
Schneider Electric provided access to green and reliable electricity to an additional 1.66 million people this quarter alone. In India and in Bangladesh, the Group has supplied solar solutions to several health centers, facilitating access to quality healthcare for hundreds of thousands of people.
Reduced pay gap to less than 1% for both women and men thanks to our holistic pay equity strategy
1. 2020 baseline 3/10, 2025 target 10/10 | 2. cumulated since 2018 | 3. Cumulated since 2009 |
Investor Relations - Schneider Electric Page 5
An Impact company driving Efficiency and Decarbonization
Large Water Utility | |||
Data Center | Buildings | Infrastructure | Industry |
France | UAE | Australia | India |
Scope 1&2 emissions reduction: | Eco Consult, Ecofit & Eco Care | 1.5 billion litres of safe drinking | Smart Manufacturing |
-31% between 2022 & 2023 | water per day | ||
Digital Realty, a world leader in | Schneider Digital Ecofit solutions enable | Schneider solutions empower | Fully integrated Plant to Enterprise |
Data Centers, reduces its | Provis (a subsidiary of Aldar Properties) to | communities to manage their most | Operations, cutting edge solution for |
environmental impact in France | extend the life cycle of their MV assets | critical resource: water as well as | achieving Sustainability targets and |
through focus on Energy Efficiency | thus reducing the carbon footprint through | treating wastewater, and ensuring | improving plant performance by |
this sustainable solution | environmental sustainability | visualizing and analyzing critical | |
metrics information in near real time |
Sourcing of 100% renewable | Material saved: 7.9 metric tons | The power of collaboration in | Fully integrated one-stop Automation |
energies, optimizing Energy from | CO2 emissions saved: 27.9 t CO2eq | building a sustainable future for | solution along with the latest |
design to operation and working on | Water saved: 267.4 m³ | water management | digitization offer for all 10 plants |
scope 3 with suppliers and partners |
Investor Relations - Schneider Electric Page 6
Q1 2024 up +5% organic
Analysis of Change in Group Revenues (in €m)
+7.1%
8,493 -1.5%+4.0%
Group +5.3% org.
+19.5% -1.2%
-2.6%
8,606
Mainly representing the
divestiture of the industrial
sensors business
Driven by the weakening of the US Dollar, Chinese Yuan, Turkish Lira and Argentinian Peso vs. the Euro
Q1 2023 Western Europe Asia Pacific North America | Rest of | Scope | Forex | Q1 2024 |
the World |
Based on current rates, the FX impact on FY 2024 revenues is estimated to be between -€200 million to -€300 million The FX impact at current rates on adjusted EBITA margin for FY 2024 could be around -30bps
Investor Relations - Schneider Electric Page 7
Q1 Business performance highlights by end-market
Energy Management | Industrial Automation |
End Markets
Buildings | Data Center & Networks | Infrastructure | Industry | |||
- Resi stable with regional variance - RoW growing, North America stable, parts of Western Europe soft
- Group benefits from exposure to non-resitechnical buildings:
- Good traction in Hotels and Healthcare
- Performance supported by completeness of offer and renovation/retrofit trends
- Very strong demand in Data Center, with strength across both Internet Giants and enterprise settings
- Distributed IT seeing solid growth in demand
- Sales growth follows similar trends up strong double-digit in Data Center and mid-singledigit in Distributed IT
- Strong demand in Electrical Utilities, supported by booking of some large project wins
- Transportation demand stable at high levels
- Demand in WWW down overall though growing for IA offers, while EM offers faced high base
- Discrete demand down YoY though improving sequentially in many geographies
- Middle East strong and China returns to sales growth in Discrete, while W. Europe and E. Asia impacted by high OEM stock
- Process & Hybrid demand down, facing high base in MMM & CPG
- Automation sales into Process & Hybrid up mid-singledigit despite high base
Investor Relations - Schneider Electric Page 8
Energy Management +9% Q1 org. growth
Split of Q1 2024 revenue by geography:
W. Europe | N. America | Asia Pac. | Rest of the World | ||
24% | 38% | 26% | 12% | ||
North America | +10% |
U.S. up double-digit,Mexico up low-single digit and Canada flat, with all three countries facing high base of comparison
Strong growth in Systems revenues supported by trends in Data Center and Infrastructure end-markets
Product revenue up low-single digit impacted by supply constraints (particularly Residential)
Double-digit growth in Field Services
Rest of the World | +23% |
Middle East up strong double-digit, led by Saudi Arabia and UAE with good traction in both the partner network and end-user sales
Africa also grew strong double-digit, led by Morocco and seeing strong execution on Infrastructure projects across the region
South America was flat when excluding impacts from Argentina, with strong growth in Brazil offset by weakness in Colombia
Central & Eastern Europe delivered solid growth
Argentina, Egypt and Turkey all saw double-digit growth in part due to pricing in response to currency devaluation
Western Europe +4%
Growth led by Italy, up double-digit, followed by Germany high-single digit, France mid-single digit, UK also growing while Spain declined. All 5 countries facing double-digit base of comparison
Strong growth in Field Services linked to retrofit and modernization trends, supported by backlog execution
Strong growth in Systems with continued traction for Data Center and Infrastructure projects
Product demand remained subdued with Residential markets still impacted
Asia Pacific | +6% |
China up high-single digit with strength in renewable power and transportation. Building markets remain weak, though with some opportunity in retrofit
India grew double-digit with strength across end-markets, supported by capex investment in medium and large sized projects
Australia grew mid-single digit, with strong activity in Data Centers and linked to the energy transition
Rest of the region down in aggregate, with weakness in construction markets across Southeast Asia
Investor Relations - Schneider Electric Page 9
Industrial Automation -7%Q1 org. growth
Split of Q1 2024 revenue by geography:
W. Europe | N. America | Asia Pac. | Rest of the World | |
28% | 22% | 33% | 17% | |
North America | -10% | Western Europe -16% | |
The U.S. was down impacted by timing at AVEVA despite good health of the underlying business, and continued pressure on Discrete automation.
Canada grew double-digit with strong growth in sales to Process & Hybrid automation markets
Mexico declined on a high base of project activity in the prior year and inventory normalization in Discrete automation
Rest of the World | +10% |
Middle East up double-digit with strong growth in both Discrete and Process & Hybrid automation markets
Africa saw good growth in Process & Hybrid supported by project execution across the region, while Discrete was down slightly excluding Egypt
In South America, sales into both Discrete and Process & Hybrid markets were down excluding Argentina, as Brazil continues to recover from supply challenges
Central & Eastern Europe declined, with Discrete following similar trends to Western Europe
Argentina, Egypt and Turkey all saw double-digit growth in part due to pricing in response to currency devaluation
France down mid-single digit, better than the rest of the region due to strong growth at AVEVA
Germany, Italy, Spain down double-digit against high base
U.K. growing in Discrete and Process & Hybrid, but down overall due to timing at
AVEVA
Discrete automation markets remained weak across the region, notably in Germany and Italy, while the UK showed growth
Process markets were relatively better oriented, with good growth in several countries, led by the U.K.
Asia Pacific | -3% |
China up mid-single digit, with a return to growth in Discrete, while sales into Process & Hybrid remain strong
India seeing good growth in both Discrete and Process & Hybrid against a high base, though slightly down overall due to timing of renewals at AVEVA
Japan and Korea down, remaining weak in Discrete automation markets linked to OEM weakness in China and East Asia
Australia grew strong double-digit, driven by performance at AVEVA
Investor Relations - Schneider Electric Page 10
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Schneider Electric SE published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 06:58:12 UTC.