2010Annual Report - Schneider Electric CZ, s.r.o.

4 BUSINESS REVIEW
REVIEW OF THE CONSOLIDATED FINANCIAL STATEMENTS
142
> 2. Review of the consolidated
financial statements
Review of business and consolidated statement of income
Changes in the scope of consolidation
Acquisitions (1)
On January 21, 2010, Schneider Electric announced the signature
of an agreement for the acquisition of Cimac, a leader in systems
integration for industrial automation solutions in the Middle East
Gulf region. Cimac implements complete automation, control and
electrical distribution solutions, primarily for Water-Waste Water and
Oil & Gas customers. As Gulf market leader with proven technologies
and know-how in implementing solutions, it employs over 400 people
and generates sales in excess of EUR40 million. With this acquisition,
Schneider Electric will be able to capture new opportunities in
the fast-growing automation market in UAE and across the Gulf
countries, while offering geographical complementarities in other
Middle East countries.
On March 5, 2010, Schneider Electric announced the signature of an
agreement with Zicom Electronic Security Systems Limited to acquire
the assets of their electronic security systems integration business,
namely the Building Solutions Group and the Special Projects Group.
The business recorded revenues of approximately EUR30 million
in fi scal 2009 and has a headcount of about 200. The transaction
excludes Zicom’s other group companies, such as the retail business
and Dubai-based joint-venture. Zicom is the largest independent
electronic security systems integrator in India. It has completed to
date more than 1,000 projects in infrastructure (city surveillance,
railways, airports etc.), government facilities, commercial buildings
and high-end hotels where it enjoys strong market positions.
On April 13, 2010, Schneider Electric announced the signature of
an agreement to acquire SCADAgroup, an Australian based leading
provider of telemetry products and solutions for the water and wastewater,
oil & gas and electric power end-market segments. Telemetry
is a key technology that allows the remote measurement, monitoring,
control and data transfer of infrastructures scattered over a wide area
or that are hard to access. SCADAgroup has operations throughout
North America, the UK and Australia and employs over 500 staff.
Its revenue for the fi nancial year on June 30, 2010 was AUD102
million, or about EUR68 million. Through this acquisition, Schneider
Electric further reinforces its presence in the water, waste-water, and
oil & gas segments. With SCADAgroup, it acquires technologies and
product offers to be pushed through its channels, and execution
and service capabilities that are complementary to its own in these
segments. The acquisition price, expressed in terms of enterprise
value, is AUD200 million (around EUR140 million), or 11 times the
(1) The dates correspond to when control is acquired in purchased companies.
2010 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
estimated EBITA for fi nancial year 2010. This transaction should be
accretive on earnings per share within the fi rst year.
On June 7, 2010 (closing date), a consortium comprising Alstom and
Schneider Electric acquired all of Areva T&D’s capital for EUR2.29
billion. The two consortium partners also fi nanced the repayment
of Areva T&D’s debt towards the Areva Group. As the buyer of the
Distribution business, Schneider Electric fi nanced the equity value
in the amount of EUR815 million and the debt refi nancing in the
amount of EUR323 million. The transaction agreements specify no
liability guarantee clause or earn-out payments. The Consortium
agreement stipulates that, as of the transaction date, Schneider
Electric immediately became the sole owner, with exclusive control,
of the Distribution business previously held by Areva (and within
the limit of Areva’s holding) and acquired through the Consortium.
Consequently, the Distribution business was fully consolidated as of
June 7, 2010, whilst the Transmission business was entirely excluded
from the scope of consolidation.
On November 23, 2010, Schneider Electric announced it had signed
an agreement Unifl air SpA., the world number 3 manufacturer of inroom
precision cooling systems and modular access fl oors primarily
for data centers and telecommunications applications. Unifl air SpA
is strong in Europe and has a good presence in new economies, in
particular China and India. It employs approximately 500 people on
a global basis and is expected to generate revenues in excess of
EUR80 million for the current year. It has manufacturing facilities in
Italy, India and China.
December 9, 2010 - Schneider Electric announced its acquisition of
two French companies, pioneers in building management software:
Vizelia, provider of software for real-time monitoring of building
energy consumption and D5X, a company specialising in commercial
space optimisation solutions. Vizelia has 12 employees and should
generate EUR4 million in revenue for 2010. Its innovative software
gives clients real-time data on their business’ energy consumption,
and on both maintenance and property management. It is designed
both for new buildings and existing structures, particularly those in
the education, commercial real estate and public administration
building sectors. D5X has 27 employees and offers complete
solutions in three areas: real-time building traffi c and occupancy,
environmental controls at room level (lighting, blinds and ventilation)
and data network management. The company should generate
revenue of EUR4 million for 2010.