APC 2013 Annual Report Download - page 176

4BUSINESS REVIEW
REVIEW OF THE CONSOLIDATED FINANCIAL STATEMENTS
Review of the consolidated 2.
financialstatements
Review of business and consolidated statement of income
Changes in the scope of consolidation Changes in foreign exchange rates
Changes in foreign exchange rates relative to the euro had a
Acquisitions
material impact over the year. This negative effect amounts to
EUR879million on consolidated revenue and to EUR233million on
Schneider Electric finalized on March28, 2013, the acquisition of Adjusted EBITA(1).
100% of Electroshield – TM Samara, further to the 50% acquired in
Revenue
October2010, after obtaining the requisite regulatory approvals in
Russia. Electroshield – TM Samara is one of the leading Russian
players in medium voltage. The cumulative price for 100% of equity On December31, 2013, the consolidated revenue of Schneider
is RUB 20.4billion (about EUR510million) with net debt of zero as Electric totaled EUR23,551million, a decrease of 1.6% at current
of today. As agreed, the second half of the equity was acquired on scope and exchange rates compared to December31, 2012.
March28, 2013 at the same value paid for the first half in
This variance breaks down into an organic increase of 0.4%, a
October2010. Previously it was accounted under the equity
contribution of acquisitions net of disposals of 1.7%, mainly due to
accounting method. It is fully consolidated since April1, 2013 in
Electroshield, and a negative exchange rate effect of 3.7%.
the segment Infrastructure.
Since then, Electroshield – TM Samara is consolidated with full
consolidated method.
Acquisitions and disposals that took place in2012 and
that had an impact on the 2013 financial statements *
M&C Energy Group has been acquired during financial year 2012
and consolidated from June15, 2012. Its consolidation on a
full-year basis for financial year 2013 had a scope effect compared
to financial year 2012.
Changes in revenue by operating segment
The Partner business generated revenues of EUR8,476million, or The Infrastructure business generated revenues of
36% of the consolidated total. This represents a decrease of -3.0% EUR5,728million, or 24% of the consolidated total. This
on a reported basis and +0.2% on a like-for-like basis. The represents an increase of +6.7% on a reported basis and +1.2%
Product business was slightly up, supported by continued on a like-for-like basis. The Product business was up slightly, as
investment in the residential market in the United States, overall the good performance of secondary distribution products offset
good performance in China and fast-growing mid-market offers in the decline of primary MV components. The Solution business
new economies. The sluggish economy in Europe and the slow grew despite continued weak utility investment in Western Europe,
construction market in Australia weighed on performance. The mainly driven by the success of installed base and advanced
Solution business declined, impacted by high comparables in the services across regions, demand in the Oil & Gas segment in
Middle East and difficulties in the renewable market in Western Australia and in the data center segment in North America.
Europe, while data center projects in North America recorded
growth.
* Correspond to the dates on which the Group gained control of the acquired companies.
Adjusted EBITA is EBITA before restructuring costs and before other operating income and expenses, which includes acquisition, integration and (1)
separation costs.
174 2013 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC