APC 2012 Annual Report Download - page 157

2012 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 155
BUSINESS REVIEW
4
REVIEW OF THE CONSOLIDATED FINANCIAL STATEMENTS
Power recorded an adjusted EBITA margin of 20.7% for the year
ended December31, 2012, up 0.1% compared to20.6% for the
year ended December 31, 2011, due to sustained pricing and
productivity gains, offsetting negative geographical mix and costs
related to new product launches.
Infrastructure recorded an adjusted EBITA margin of 10.7% for the
year ended December31, 2012, up 0.3% compared to 10.4% for
the year ended December31, 2011, refl ecting strict cost control
and synergies delivered by acquisition integration.
Industry recorded an adjusted EBITA margin of 18.4% for the year
ended December31, 2012, up 0.8% compared to 17.6% for the
year ended December31, 2011, demonstrated strong resilience to
negative volume and unfavorable mix, thanks to pricing discipline,
productivity and good cost control.
IT recorded an adjusted EBITA margin of 19.0% for the year
ended December31, 2012, up 2.8% compared to 16.2% for the
year ended December31, 2011, helped by positive volume, price
actions, productivity gains, and improved solutions profi tability.
Buildings recorded an adjusted EBITA margin of 6.4% for the year
ended December 31, 2012, down 2.9% compared to 9.3% for
the year ended December31, 2011, refl ecting the softness of the
construction markets in its key countries and diffi culties of the video
security activity.
Corporate costs amounted to EUR501million for the year ended
December31, 2012 or 2.1% of Group revenues, stable compared
to the year ended December31, 2011 (2.1% of Group revenues or
EUR468million).
Operating income (EBIT)
Operating income (EBIT) increased from EUR2,811 million for
the year ended December31, 2011 to 2,866million for the year
ended December31, 2012, an increase of 2.0% despite a goodwill
impairment on Buildings CGU of EUR250million before tax effect
and an increase of amortization of intangibles linked to business
combinations of EUR16million (EUR224million on the year ended
December 31, 2012 compared to EUR208 million on the year
ended December31, 2011).
Net financial income/loss
Net fi nancial loss amounted to EUR405million for the year ended
December 31, 2012, compared to EUR415 million for the year
ended December31, 2011. This decrease is mainly linked to the
decrease in other fi nancial incomes and costs, from a net expense
of EUR114 million for year ended December 31, 2011 to a net
expense of EUR56 million for year ended December 31, 2012.
This is mainly due to the decrease of exchange loss (EUR21million
in2012 compared to EUR40million in2011) and to the gain on Axa
investment sale of EUR11million.
Within the net fi nancial loss, the increase in the cost of net fi nancial
debt from EUR301million for year ended December31, 2011 to
EUR349million for year ended December31, 2012 is triggered by
the increase in the average net debt between those two periods.
Tax
The effective tax rate was 23.1% for the year ended December31, 2012, slighty increasing compared to 22.8% for the year ended
December31, 2011. The corresponding tax expense increased from EUR547million for the year ended December31, 2011 to EUR568million
for the year ended December31, 2012.
Share of profit/(losses) of associates
The share of profi t of associates amounted to EUR34million for the year ended December31, 2012, compared to EUR28million for the year
ended December31, 2011, thanks to the increasing contribution of Electroshield in Russia and Sunten in China.
Non-controlling interests
Minority interests in net income for the year ended December31, 2012 totaled EUR87million, compared to EUR84million for the year
ended December31, 2011. This represented the share in net income attributable, in large part, to the minority interests of certain Chinese
companies.
Profit for the period
Profi t for the period attributable to the equity holders of our
parent company amounted to EUR1,840 million for the year
ended December 31, 2012, that is a 2.6% increase over the
EUR1,793million profi t for the year ended December31, 2011.
Before goodwill impairment of Buildings CGU of EUR250million
before tax effect and EUR183million after tax effect in2012 (and
EUR15 million of goodwill impairment in 2011), the profi t for the
period attributable to the equity holders of our parent company
amounted to EUR2,023million for the year ended December31,
2012, an increase of 11.9% compared to EUR1,808million in2011.