Summary of 2019 Financial and Sustainable Development Report

Highlights

Share Price
91.50 At 31 December 2019
Revenues +4.2%
27.2 bn
Proposed dividend per share +8.5%
2.55
Net income (Group share) +3.4%
2.4 bn
Free cash flow +65%
3.5 bn
Adjusted EBITA +8.7%
4.2 bn
Employees
135,000 At 31 December 2019
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2019 in brief

January

Schneider Electric wins ‘The Circulars 2019’ award for its engagement in the circular economy.

February

Schneider Electric included in the World’s 100 Most Ethical Companies by the Ethisphere® Institute.

Schneider Electric ranked on CDP Supplier Engagement Leader Board for reducing CO2 emissions across the supply chain.

March

Schneider Electric is the first multi-national company to achieve 100% commitment to UN Women’s Empowerment Principles.

Schneider Electric affirms its role in strengthening digital trust by joining the Cybersecurity Coalition.

April

At Hanover Messe, Schneider Electric unveils the Modicon M262 Controller and TeSys island for EcoStruxureTM for Machine Builders.

Schneider Electric launches Schneider Electric Exchange, its open business platform to create, collaborate, and scale efficiency and sustainability solutions.

Schneider Electric and The Carlyle Group announce AlphaStruxure, a strategic alliance to deploy critical infrastructure microgrids using an energy-as-a-service model.

August

Schneider Electric commits to tackling inequality by joining G7 Business for Inclusive Growth coalition.

July

Schneider Electric's Smart Factory in Batam, Indonesia, recognized by the World Economic Forum as a 4th Industrial Revolution Lighthouse.

Schneider Electric is Founding Member of ISA Global Cybersecurity Alliance.

June

Schneider Electric unveils its breakthrough medium-voltage switchgear using pure air instead of SF6 gas at CIRED 2019.

The Competition Commission of India approves the combination of Schneider Electric India’s Low Voltage and Industrial Automation business with Larsen & Toubro’s Electrical and Automation business.

Olivier Blum, Chief Human Resources Officer at Schneider Electric, is awarded Director of Human Resources 2019 by Cadremploi, Morgan Phillips Hudson, Le Figaro Décideurs and Fyte.

May

The 2019 Gartner Supply Chain Top 25 ranks Schneider Electric 11th.

September

Schneider Electric accelerates its carbon neutrality goal by bringing forward its objective by five years.

October

Schneider Electric launches 6U Wall Mount EcoStruxureTM Micro Data Center to solve edge computing challenges.

Eco-friendly Aloe Vera Batteries Win Schneider Electric’s 2019 Go Green in the City Student Competition.

November

Schneider Electric recognized by the Financial Times as diversity leaders 2020.

December

Schneider Electric employees worldwide rally around #GivingTuesday2019.

Schneider Electric listed in the World’s Top 50 Diversity & Inclusion Employers Index by Universum.

Life Is On Everywhere, For Everyone, At Every Moment

At Schneider Electric, we believe access to energy and digital is a basic human right.

We empower all to make the most of their energy and resources , ensuring Life Is On everywhere, for everyone, at every moment.

We provide energy and automation digital solutions for efficiency and sustainability. We combine world leading energy technologies, real time automation, software and services into integrated solutions for Homes, Buildings, Data Centers, Infrastructure and Industries.

We are committed to unleash the infinite possibilities of an open, global, innovative community that is passionate about our Meaningful Purpose, Inclusive and Empowered values.

Energy transition

Energy Management

Revenues €20.8 bn

Industrial Automation

Revenues €6.3 bn

In an all-electric and all-digital world, we are uniquely positioned to deliver digital energy and automation solutions for efficiency and sustainability.

191

Factories

97

Distribution centers

North America
20%
29%
Western Europe
26%
26%
Rest of World
19%
16%
Asia Pacific
35%
29%

Our key resources and relationships

People

We are the most local of global companies with +135,000 colleagues, in +100 countries representing our diverse talents. 32% of our 2019 workforce were women.

Industrial

Our +80 smart factories and distribution centers deliver efficiency and productivity across our unique end-to-end supply chain to better serve customers. In 2019 EcoStruxureTM solutions reduced production downtime and quality issues by up to 15%.

Innovation

Our community of +1,100 certified R&D engineers are nurtured to fuel our innovation strategy. Schneider Electric holds more than 18,000 active patents and patent applications worldwide. +850 new patent applications on both our core and digital technologies filed in 2019.

Environment

We optimize our energy and resources across 230 ISO14001-compliant facilities and 193 sites committed to zero landfill waste. 50% of electricity from renewables in 2019. +97,000 tons of primary resource consumption saved with circular models.

Partners and Suppliers

We empower our +650,000-strong partner ecosystem to expand our coverage and we arm our +3,800 ecoXpert program partners to drive new digital business opportunities. We extend our sustainability excellence requirements to our suppliers representing €12bn in procurement volume.

Financial strength

Our organic growth, consistent margin improvement and disciplined capital allocation drives sustainable, positive free cash flows of €3.5bn.

Our unique way

Energy Management

adj. EBITA margin 18.4%

Industrial Automation

adj. EBITA margin 18.1%

Delivering strong growth (+4.2%) from our portfolio of energy and automation solutions for efficiency and sustainability.

We champion, open, connected and interoperable solutions

We supply best-in-class products to partners to integrate in their solutions

We are obsessed with safety, and are renowned for reliability and cybersecurity solutions

Our sustainable value for all stakeholders

Focusing on the welfare of people

We are committed to gender equality through equal opportunities for everyone, everywhere.

99%

of our global workforce covered by our Gender Pay Equity Framework

We strive to guarantee the highest safety standards and eliminate workplace accidents.

0.79

Medical incidents per million hours worked reduced to 0.79

Acheiving sustainability goals with customers

We help customers reduce their CO2 footprint with EcoStruxureTM solutions and Energy & Sustainability Services.

20%

On average, businesses achieve 20% reduction in carbon emissions

We enable sustainable performance providing comprehensive environmental information for all eco-designed Green PremiumTM offers.

55%

of sales from Green PremiumTM products in 2019

Empowering underserved communities

Our Access to Energy program supports training, entrepreneurship, startups and technologies for the world’s most energy-deprived populations.

246,268

underprivileged people received vocational training

Prioritizing ethical partnership with suppliers

As responsible corporate citizens, we uphold the highest standards of ethical business conduct to strengthen collective trust, cultivate long-term viability and comply with local regulation.

279

suppliers under Human Rights & Environment vigilance received specific on-site audits

Delivering return and profits to shareholders

Our business model delivers consistent, sustainable and strong financial performance and attractive returns.

+54%

share price growth

€53.2bn

market capitalization (December 31,2019)

€2.55

Proposed dividend per share €2.55, +8.5% vs 2018

In this 21st century, humanity is facing the most daunting challenge in its history: the need to radically transform its economic growth model in less than 30 years or face catastrophic changes to its ecosystem. While global green house gas emissions continue to grow, the devastating effects of these changes are already being felt: an increase in the frequency and magnitude of extreme climate events, melting glaciers and disappearing coral reefs. Added to this is the alarming loss of biodiversity and growing inequalities.

Resolutely determined to contribute to the 17 United Nations Sustainable Development Goals, Schneider Electric provides innovative solutions to overcome the energy paradox: balancing the need to reduce the planet’s carbon footprint with the inalienable human right to quality energy and access to digital. Schneider seeks to be a role model and to embark its ecosystem onto a just transition for a net-zero carbon world.

Schneider has made strong commitments for its entire ecosystem, ranging from helping its suppliers improve their sustainability practices, to reducing its customers' emissions through innovative solutions, as well as deploying an ambitious action plan for its own operational scope. In addition, the Group is convinced that in this journey for a better planet, no one should be left behind. Neither the 840 million people without electricity for whom Schneider develops inclusive business models and creates solutions for clean, safe and reliable energy, nor the 50 to 125 million energy-poor Europeans the Group supports through its Foundation.

With its new Principles of Responsibility, placing human rights, people development, ethical business conduct, cybersecurity, environmental action and corporate citizenship at its core, as well as the Schneider Sustainability Impact, Schneider continuously demonstrates that it can be a trusted partner.