APC 2010 Annual Report Download - page 149

BUSINESS REVIEW
4
OUTLOOK
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4. Review of subsidiaries
Schneider Electric Industries SAS
Revenue totaled EUR3.4 billion versus EUR2.8 billion in 2009.
The subsidiary posted an operating profi t of EUR22 million compared
with an operating loss of EUR58 million in 2009.
Net profi t came to EUR1,502 million compared with EUR672 million
in 2009.
Cofibel
The company’s portfolio historically comprised shares in Schneider
Electric SA; they were sold in 2010, producing a capital gain of
EUR152 million.
Cofibel posted a net profit of EUR154 million, compared with
EUR6.7million in 2009.
Cofimines
The company also disposed of its Schneider Electric SA shares,
making a capital gain of EUR29 million. Cofi mines posted a net profi t
of EUR34.4 million, compared with EUR1.4 million in 2009.
Remuneration and benefits of corporate officers
The remuneration and other benefi ts paid to corporate offi cers are disclosed in chapter 3, “Corporate Governance”, paragraph 8, “Management
interests and compensation”.
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5. Outlook
Schneider Electric expects the overall conditions of its end-markets
to improve in 2011. Momentum of shorter cycle Industry and IT
businesses is expected to stay solid, but will face more demanding
year-on-year comparison. Power should continue to see progressive
improvement. On the longer-cycle businesses, Energy is expected to
grow in 2011 aided by gradually improving utility end-market while
energy effi ciency and better trends in mature markets should be a
support to the Buildings business.
The Group will continue to drive strong industrial productivity which is
expected to deliver about EUR400 million of savings. It will also invest
for growth in areas related to energy effi ciency, the smart grid and
in the new economies, but at the same time keep support function
costs increase at a rate below the organic sales growth. The Group
expects raw material input cost headwind of about EUR250 million,
to be partly offset by price increases of ~1% in 2011.
Consequently, Schneider Electric targets for 2011 a solid organic
sales growth of 6% to 9% and an EBITA margin of 15.0% to 15.5%
of sales, a raise from the 14.5% level in 2010 on pro-forma basis.
2010 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 147