APC 2010 Annual Report Download - page 145

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