2010Annual Report - Schneider Electric CZ, s.r.o.
2010Annual Report - Schneider Electric CZ, s.r.o.
2010Annual Report - Schneider Electric CZ, s.r.o.
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The Group also acquired 50% of shares in the Russian group<br />
Electroshield-TM Samara. This entity is accounted for by the<br />
equity method with a delay of three months required to prepare its<br />
consolidated fi nancial statements and ensure their compliance with<br />
IFRS standards.<br />
Acquisitions and disposals that took place in 2009<br />
and that had an impact on the 2010 financial<br />
statements<br />
The following entities were acquired during fi nancial year 2009 and<br />
their consolidation on a full-year basis for fi nancial year 2010 had a<br />
scope effect compared to fi nancial year 2009:<br />
• Conzerv Systems, consolidated as of June 4, 2009,<br />
• Microsol Tecnologia, consolidated as of June 19, 2009,<br />
• Meher Capacitors, consolidated as of August 6, 2009.<br />
Changes in revenue by operating segment<br />
Power revenue (53% of Group revenue), totaled EUR10,318 million<br />
on December 31, 2010, an increase of 11.7% on an actual basis et<br />
de 5.7% at constant scope and exchange rates. Medium Voltage<br />
business decreased from previous year; business was adversely<br />
impacted by a slow construction market and decreased spending<br />
by electrical contractors. Low Voltage growth was very strong for the<br />
fi nancial year, carried by the rise in industrial demand and dynamic<br />
new economies. Solutions and services are seeing growth again<br />
thanks to renewable energy solutions.<br />
Industry revenue (18% of Group revenue), totaled EUR3,551 million<br />
on December 31, 2010, an increase of 33.3% on an actual basis et<br />
de 23.6% at constant scope and exchange rates. Growth continued<br />
in all regions, particularly in the Asia-Pacifi c region. Business was<br />
boosted by a strong global rise in industrial demand, specifi cally<br />
equipment manufacture, as well as building and infrastructure<br />
investment in new economies. The successful launch of new offers<br />
for equipment makers and the return to growth in the HVAC market<br />
in the United States contributed to solutions growth.<br />
IT revenue (14% of Group revenue), totaled EUR2,646 million on<br />
December 31, 2010, an increase of 16.6% on an actual basis et de<br />
9.6% at constant scope and exchange rates. Small systems saw<br />
continued demand in business networks and in new offer launches.<br />
Large systems also saw growth, carried by both the data centre<br />
and service markets.<br />
BUSINESS REVIEW<br />
REVIEW OF THE CONSOLIDATED FINANCIAL STATEMENTS<br />
Changes in foreign exchange rates<br />
Changes in foreign exchange rates relative to the euro had a material<br />
impact over the year. Indeed, there was a positive effect of EUR869<br />
million on consolidated revenue and EUR103 million on EBITA (2)<br />
(effect of conversions only).<br />
Revenue<br />
On December 31, 2010, the consolidated revenue of <strong>Schneider</strong><br />
<strong>Electric</strong> totaled EUR19,580 million, an increase of 24.0% at current<br />
scope and exchange rates compared to December 31, 2009.<br />
This growth breaks down into 9.3% organic, a contribution of<br />
acquisitions net of disposals of 8.7% and a positive exchange rate<br />
effect of 6.0%.<br />
Buildings revenue (7% of Group revenue), totaled EUR1,402 million<br />
on December 31, 2010, an increase of 10.6% on an actual basis<br />
and 3.3% at constant scope and exchange rates. The solutions<br />
businesses are seeing growth thanks to services tied to energy<br />
effi ciency in North America and in Western Europe.<br />
CST revenue (2% of Group revenue), totaled EUR433 million on<br />
December 31, 2010, an increase of 21.2% on an actual basis and<br />
6.9% at constant scope and exchange rates. The business saw<br />
strong growth on the industrial markets, as well as the automotive<br />
and tractor trailer markets.<br />
The Distribution business acquired from Areva on June 7, 2010<br />
brought EUR1,230 million to Group revenue.<br />
Operating income<br />
Treatment of acquisition costs<br />
Following the fi rst time application in 2010 of IFRS 3 (revised), the<br />
acquisition costs incurred in 2009 on deals that it was felt were highly<br />
likely to be concluded in 2010, capitalised in 2009 in accordance with<br />
IFRS 3 applicable at the reporting date, were restated under Other<br />
operating income/(expense) for EUR26 million.<br />
The comparative income statements refl ect the impact of this change<br />
of accounting policy which is further commented on below.<br />
(2) 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 />
2010 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 143<br />
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