Connect - Schneider Electric

On July 22, 2011, Schneider Electric announced the signature of
an agreement to acquire the bresilian group Steck Da Amazonia
Industria Electrica Ltda. and affi liates (“Steck Group”), a key player
(950 employees, about BRL180 million (approx. EUR80 million)
in 2011) in the fast growing fi nal low voltage segment serving the
residential and commercial buildings and industries in Brazil. The
transaction will enable Schneider Electric to broaden its product
portfolio and market access and hence provide an opportunity to
expand its presence in new economies, particularly in Latin America.
On June 1, 2011, Schneider Electric announced the signing of a
defi nitive agreement related to the acquisition, through a public
offer of Telvent GIT SA (“Telvent”), a leading solution provider
specializing in high value-added IT software and solutions for realtime
management of mission critical infrastructure in the fi elds of
electricity, oil & gas, water and transportation. By acquiring Telvent,
Schneider Electric integrates a high value-added software platform
that presents a good fi t with its own range in fi eld device control
and operation management software for the smart grid and
effi cient infrastructures. The Group also doubles its overall software
development competencies and enhances its IT integration and
software service capability, including weather services. Schneider
Electric made a cash tender offer for all of Telvent’s shares at a
price of USD40 per share, which represents a premium of 36% to
Telvent’s average share price over the last three months. This offer
has successfully been completed on August 30, 2011.
Changes in revenue by operating segment
Power revenue (37% of Group revenue), totaled EUR8,297 million
on December 31, 2011, an increase of 7.0% on an actual basis and
of 7.6% at constant scope and exchange rates. This performance
is driven primarily by product business which continued to be
supported by global manufacturing and infrastructure markets,
launching of new offers and better coverage especially in new
economies. Solutions business shows about fl at revenue compared
to 2010 despites renewable energy revenue was negative, due to
the change by some countries in their incentive policies.
Infrastructure revenue (22% of Group revenue), totaled
EUR4,897 million on December 31, 2011, an increase of 12.8% on
an actual basis (2010 comparative data including EUR1,878 million
of Areva D revenues from January 1) and of 7.5% at constant scope
and exchange rates. Despite the product business globally fl at, the
growth in Infrastructure sales is driven by improving demand in
solutions business from electro-intensive customers (oil and gas,
mining and metals), infrastructure projects in the new economies.
Industry revenue (20% of Group revenue), totaled EUR4,404 million
on December 31, 2011, an increase of 10.5% on an actual basis
and of 10.4% at constant scope and exchange rates. The product
business recorded solid growth, benefi ting from the globally
well- oriented industrial demand, especially from machine builders
BUSINESS REVIEW
REVIEW OF THE CONSOLIDATED FINANCIAL STATEMENTS
Acquisitions and disposals that took place in 2010
and that had an impact on the 2011 financial
statements
The following entities were acquired during fi nancial year 2010 and
their consolidation on a full-year basis for fi nancial year 2011 had a
scope effect compared to fi nancial year 2010:
• Cimac, consolidated as of January 21, 2010,
• Zicom Electronic Security Systems Limited, consolidated as of
March 5, 2010,
• SCADA group, consolidated as of April 13, 2010,
• Distribution business of Areva T&D, consolidated as of
June 7, 2010,
• Unifl air, consolidated as of November 23, 2010,
• Vizelia and D5X, consolidated as of December 9, 2010.
Changes in foreign exchange rates
Changes in foreign exchange rates relative to the euro had a
material impact over the year. This negative effect amounts to
EUR229 million on consolidated revenue and EUR32 million on
EBITA (1) (effect of conversions only).
Revenue
On December 31, 2011, the consolidated revenue of Schneider
Electric totaled EUR22,387 million, an increase of 14.3% at current
scope and exchange rates compared to December 31, 2010.
This growth breaks down into 8.3% organic, a contribution of
acquisitions net of disposals of 7.3% and a negative exchange rate
effect of 1.3%.
segment in new economies and some export-oriented mature
markets, as well as new product launches. The performance of
Industry is also boosted by the solutions business, particularly in
the areas of OEM solutions, drives systems for mining, oil and gas,
and cement sectors, energy effi ciency solutions as well as industrial
services.
IT revenue (14% of Group revenue), totaled EUR3,237 million on
December 31, 2011, an increase of 17.9% on an actual basis and
of 10.3% at constant scope and exchange rates. The solutions
business grew double-digit, refl ecting the strong demand for
complete data center projects and services. Products benefi ted
from the good momentum particularly in the region Rest of the
World.
Buildings revenue (7% of Group revenue), totaled EUR1,552 million
on December 31, 2011, an increase of 10.7% on an actual basis and
4.8% at constant scope and exchange rates. Solution business is
supported by strong advanced and installed base services and also
security systems and energy effi ciency projects in mature countries
and in new economies. The low growth in product business is
hampered by challenging new constructions market conditions in
mature markets.
(1) EBITA (Earnings Before Interests, Taxes and Amortisation of purchase accounting intangibles) corresponds to operating profi t before amortisation
and impairment of purchase accounting intangible assets from acquisitions, and before goodwill impairment.
2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
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