Schneider Electric : Half-Year Results / {Transcript

HALF YEAR FINANCIAL REPORT

Six-month period ended June 30, 2021

Condensed Consolidated Financial Statements

Half-Year Management Report

CEO Attestation

Statutory Auditors' Review Report

1. Consolidated statement of income

(in millions of euros except for earnings per share)	Note	First half 2021	First half 2020
Revenue	3	13,774	11,575
Cost of sales		(8,070)	(6,954)
Gross profit		5,704	4,621
Research and development	4	(375)	(344)
Selling, general and administrative expenses		(2,967)	(2,701)
Adjusted EBITA *	3	2,362	1,576
Other operating income and expenses	5	35	(69)
Restructuring costs		(121)	(221)
EBITA **		2,276	1,286
Amortization and impairment of purchase accounting intangibles	6	(180)	(86)
Operating income		2,096	1,200
Interest income		4	17
Interest expenses		(53)	(80)
Finance costs, net		(49)	(63)
Other financial income and expenses	7	(29)	(109)
Net financial income/(loss)		(78)	(172)
Profit from continuing operations before income tax		2,018	1,028
Income tax expenses	8	(484)	(247)
Share of profit/(loss) of associates	10	53	40
PROFIT FOR THE PERIOD		1,587	821
attributable to owners of the parent		1,556	775
attributable to non controlling interests		31	46
Basic earnings (attributable to owners of the parent) per share (in euros per share)		2.80	1.40
Diluted earnings (attributable to owners of the parent) per share (in euros per share)		2.78	1.39

• Adjusted EBITA (Earnings Before Interest, Taxes, Amortization of Purchase Accounting Intangibles). Adjusted EBITA corresponds to the operating income before amortization and impairment of purchase accounting intangible assets, before goodwill impairment, other operating income and expenses and restructuring costs.

• EBITA (Earnings Before Interest, Taxes and Amortization of Purchase Accounting Intangibles). EBITA corresponds to the operating income before amortization and impairment of purchase accounting intangible assets and before goodwill impairment.

The accompanying notes are an integral part of the consolidated financial statements.

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Other comprehensive income

(in millions of euros)	Note	First half 2021	First half 2020
Profit for the period		1,587	821
Other comprehensive income:
Translation adjustment		778	(528)
Cash-flow hedges		148	2
Income tax effect of cash flow hedges		(4)	-
Net gains/(losses) on financial assets		(1)	(6)
Income tax effect of gains/(losses) on financial assets		-	-
Actuarial gains/(losses) on defined benefit plans	13	131	(107)
Income tax effect of actuarial gains/(losses) on defined benefit plans		(30)	15
Other comprehensive income for the period, net of tax		1,022	(624)
			(526)
of which to be recycled in income statement		922
of which not to be recycled in income statement		100	(98)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		2,609	197
attributable to owners of the parent		2,392	203
attributable to non-controlling interests		217	(6)

The accompanying notes are an integral part of the consolidated financial statements.

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2. Consolidated statement of cash flows

(in millions of euros)	Note	First half 2021	First half 2020
Profit for the period		1,587	821
Share of (profit)/losses of associates		(53)	(40)
Income and expenses with no effect on cash flow:
Depreciation of property, plant and equipment		341	348
Amortization of intangible assets other than goodwill		326	230
Impairment losses and fair value adjustments on financial assets		(19)	45
Increase/(decrease) in provisions		30	132
Losses/(gains) on disposals of assets		(74)	(9)
Difference between tax paid and tax expense		(66)	(121)
Other non-cash adjustments		64	53
Net cash provided by operating activities		2,136	1,459
Decrease/(increase) in accounts receivables		(283)	628
Decrease/(increase) in inventories and work in progress		(626)	(481)
(Decrease)/increase in accounts payables		304	31
Decrease/(increase) in other current assets and liabilities		(73)	(333)
Change in working capital requirement		(678)	(155)
TOTAL I - CASH FLOWS FROM OPERATING ACTIVITIES		1,458	1,304
Purchases of property, plant and equipment		(230)	(225)
Proceeds from disposals of property, plant and equipment		29	28
Purchases of intangible assets		(178)	(142)
Net cash used by investment in operating assets		(379)	(339)
Acquisitions and disposals of businesses, net of cash acquired & disposed	2	(3,958)	(140)
Other long-term investments		17	16
Increase in long-term pension assets		(34)	(37)
Sub-total		(3,975)	(161)
TOTAL II - CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES		(4,354)	(500)
Issuance of bonds		-	1,786
Repayment of bonds		-	-
Sale/(purchase) of own shares		-	(50)
Increase/(decrease) in other financial debt		819	1,113
Increase/(decrease) of share capital		-	-
Dividends paid to Schneider Electric's shareholders		(1,447)	(1,413)
Dividends paid to non-controlling interests		(42)	(14)
TOTAL III - CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES		(670)	1,422
TOTAL IV - NET FOREIGN EXCHANGE DIFFERENCE		199	(92)
INCREASE/(DECREASE) IN NET CASH AND CASH EQUIVALENTS: I +II +III +IV		(3,367)	2,134
Net cash and cash equivalents, beginning of the period	15	6,762	3,395
Increase/(decrease) in cash and cash equivalents		(3,367)	2,134
NET CASH AND CASH EQUIVALENTS, END OF THE PERIOD	15	3,395	5,529

The accompanying notes are an integral part of the consolidated financial statements.

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3. Consolidated balance sheet

Assets

(in millions of euros)	Note	June 30,2021	Dec. 31, 2020
NON-CURRENT ASSETS:
Goodwill, net	9	23,787	19,956
Intangible assets, net		6,451	5,033
Property, plant and equipment, net		3,694	3,619
Investments in associates and joint ventures	10	791	598
Non-current financial assets	11	817	776
Deferred tax assets		1,996	1,984
TOTAL NON-CURRENT ASSETS		37,536	31,966
CURRENT ASSETS:
Inventories and work in progress		3,561	2,883
Trade and other operating receivables		6,179	5,626
Other receivables and prepaid expenses		2,025	2,094
Current financial assets		17	18
Cash and cash equivalents	15	3,572	6,895
TOTAL CURRENT ASSETS		15,354	17,516
TOTAL ASSETS		52,890	49,482

The accompanying notes are an integral part of the consolidated financial statements.

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