Schneider Electric : Q1 Revenues Presentation

Enabling a

SUSTAINABLE

future

Group

€8.6bn +5.3%

Q1'24 revenuesorg. growth

Energy ManagementIndustrial Automation

Driven by Megatrends:

SOFTWARE & SERVICES

19% of Q1 revenues

+5%

Q1 organic growth

• Energy Management up with consumer- linked segments mostly stabilized and good growth elsewhere
• Industrial Automation down due to continued weakness in discrete automation, notably in Western Europe and East Asia, while China saw growth
• Product price contribution returned to a normalized level, volumes were positive
• Headwind from fewer working days in Q1 compared to last year

Q1 organic growth

• Energy Management up strong double-digit with continued strong demand, notably in Data Center and Infrastructure end-markets
• In Industrial Automation, good growth into Process & Hybrid markets, while Discrete markets remain impacted by weakness in
  OEM

Q1 organic growth

• One Software1 (c. €1.9bn of revenue FY232)
• • ARR at AVEVA up +13%. Organic growth impacted by change of year-end. Strong growth in SaaS revenues
  • Energy Management software up mid- single digit; good underlying business and recurring revenue growth, lower license revenue due to subscription transition
• Digital Services (c. €1.0bn of revenue FY23)
• • Strong growth, led by Energy Management Advisors & Grid digitization
• Field Services up +12% with double-digit growth in both businesses

CLIMATE

576M 2

SSI #2 - Help our customers save and avoid 800 million tonnes of CO2 emissions

In Q1 2024, Schneider Electric continued to help its customers save and avoid more millions of tonnes of CO2 emissions thanks to its solutions and services, such as Variable Speed Drives and Power Monitoring solutions.

outstanding performance in

decarbonizing their own operations or the operations of their customers

RESOURCES

65%

SSI #5 - 100% of our primary and secondary packaging is free from single-use plastic and uses recycled cardboard

Schneider Electric's sustainable packaging transformation continued to progress this quarter, driven by a positive evolution in North America and in Pacific region.

Schneider Electric launches Materialize. Uniting leading critical resource and materials companies to reduce supply chain emissions

EQUAL

48.1M 3

SSI #9 - Provide access to green electricity to 50M people

Schneider Electric provided access to green and reliable electricity to an additional 1.66 million people this quarter alone. In India and in Bangladesh, the Group has supplied solar solutions to several health centers, facilitating access to quality healthcare for hundreds of thousands of people.

Reduced pay gap to less than 1% for both women and men thanks to our holistic pay equity strategy

+7.1%

8,493 -1.5%+4.0%

Group +5.3% org.

+19.5% -1.2%

-2.6%

8,606

Mainly representing the

divestiture of the industrial

sensors business

Driven by the weakening of the US Dollar, Chinese Yuan, Turkish Lira and Argentinian Peso vs. the Euro

• Resi stable with regional variance - RoW growing, North America stable, parts of Western Europe soft
• Group benefits from exposure to non-resitechnical buildings:
• • Good traction in Hotels and Healthcare
  • Performance supported by completeness of offer and renovation/retrofit trends

• Very strong demand in Data Center, with strength across both Internet Giants and enterprise settings
• Distributed IT seeing solid growth in demand
• Sales growth follows similar trends up strong double-digit in Data Center and mid-singledigit in Distributed IT

• Strong demand in Electrical Utilities, supported by booking of some large project wins
• Transportation demand stable at high levels
• Demand in WWW down overall though growing for IA offers, while EM offers faced high base

• Discrete demand down YoY though improving sequentially in many geographies
• Middle East strong and China returns to sales growth in Discrete, while W. Europe and E. Asia impacted by high OEM stock
• Process & Hybrid demand down, facing high base in MMM & CPG
• Automation sales into Process & Hybrid up mid-singledigit despite high base

Split of Q1 2024 revenue by geography:

U.S. up double-digit,Mexico up low-single digit and Canada flat, with all three countries facing high base of comparison

Strong growth in Systems revenues supported by trends in Data Center and Infrastructure end-markets

Product revenue up low-single digit impacted by supply constraints (particularly Residential)

Double-digit growth in Field Services

Middle East up strong double-digit, led by Saudi Arabia and UAE with good traction in both the partner network and end-user sales

Africa also grew strong double-digit, led by Morocco and seeing strong execution on Infrastructure projects across the region

South America was flat when excluding impacts from Argentina, with strong growth in Brazil offset by weakness in Colombia

Central & Eastern Europe delivered solid growth

Argentina, Egypt and Turkey all saw double-digit growth in part due to pricing in response to currency devaluation

Western Europe +4%

Growth led by Italy, up double-digit, followed by Germany high-single digit, France mid-single digit, UK also growing while Spain declined. All 5 countries facing double-digit base of comparison

Strong growth in Field Services linked to retrofit and modernization trends, supported by backlog execution

Strong growth in Systems with continued traction for Data Center and Infrastructure projects

Product demand remained subdued with Residential markets still impacted

China up high-single digit with strength in renewable power and transportation. Building markets remain weak, though with some opportunity in retrofit

India grew double-digit with strength across end-markets, supported by capex investment in medium and large sized projects

Australia grew mid-single digit, with strong activity in Data Centers and linked to the energy transition

Rest of the region down in aggregate, with weakness in construction markets across Southeast Asia

Split of Q1 2024 revenue by geography:

The U.S. was down impacted by timing at AVEVA despite good health of the underlying business, and continued pressure on Discrete automation.

Canada grew double-digit with strong growth in sales to Process & Hybrid automation markets

Mexico declined on a high base of project activity in the prior year and inventory normalization in Discrete automation

Middle East up double-digit with strong growth in both Discrete and Process & Hybrid automation markets

Africa saw good growth in Process & Hybrid supported by project execution across the region, while Discrete was down slightly excluding Egypt

In South America, sales into both Discrete and Process & Hybrid markets were down excluding Argentina, as Brazil continues to recover from supply challenges

Central & Eastern Europe declined, with Discrete following similar trends to Western Europe

Argentina, Egypt and Turkey all saw double-digit growth in part due to pricing in response to currency devaluation

France down mid-single digit, better than the rest of the region due to strong growth at AVEVA

Germany, Italy, Spain down double-digit against high base

U.K. growing in Discrete and Process & Hybrid, but down overall due to timing at

AVEVA

Discrete automation markets remained weak across the region, notably in Germany and Italy, while the UK showed growth

Process markets were relatively better oriented, with good growth in several countries, led by the U.K.

China up mid-single digit, with a return to growth in Discrete, while sales into Process & Hybrid remain strong

India seeing good growth in both Discrete and Process & Hybrid against a high base, though slightly down overall due to timing of renewals at AVEVA

Japan and Korea down, remaining weak in Discrete automation markets linked to OEM weakness in China and East Asia

Australia grew strong double-digit, driven by performance at AVEVA