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