2016 achievements and 2017 priorities

Schneider Electric delivered a strong performance in 2016, meeting all its key financial commitments. We are targeting profitable growth in 2017 based on key levers that, together, will improve the company’s adjusted EBITA margin by +20 – 50 bps organically in 2017,
in line with our 2017 – 2019 objective shared at the

February 2017 Investor Day.

In 2016, we continued to deliver profitable growth, growing in products and services and being more selective in systems. Our priorities for 2017 are to resume organic growth for the business outside Infrastructure and continue to improve our operational margin level organically.

Emmanuel Babeau

Emmanuel Babeau

Deputy Chief Executive Officer in
Charge of Finance & Legal Affairs

2017 priorities

Our 2017 priorities are to resume organic growth for the business outside Infrastructure and continue to improve our operational margin level organically. We are targeting between 1 – 3% organic growth for three divisions (Building, IT, Industry) and will keep focusing on attractive opportunities in products, services, and software. We also will continue our selectivity initiatives, impacting revenues in Infrastructure by -4% to -5% while underlying organic growth in the division is expected to be about stable. In addition to the leverage coming from growth, we should continue to benefit from our cost-savings actions encompassing industrial productivity and gross support function costs savings with the combined objective to save €400 – 500 million in 2017, bringing the total cost-savings initiative to our objective of €1.7 – 1.8 billion over 2015 – 2017.

Combining its building management and guest room management systems via EcoStruxureTM for Buildings solution enables Hilton® Garden Inn (Dubai) to improve building comfort and efficiency.