APC 2013 Annual Report Download - page 31

OVERVIEW OF THE GROUP'S STRATEGY, MARKETS AND BUSINESSES
COMPANY HISTORY AND DEVELOPMENT
Connect: Key financial targets for2012-2014
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With Connect, Schneider Electric expects Group performance to reach a new level of excellence by 2014.
Key targets By 2014
Services growth Outgrow the rest of Group by more than 5points (on organic basis)
Solutions profitability At least 2points improvement on the adjusted EBITA margin
Industrial productivity EUR1.0bn to EUR1.1bn of cumulated gross productivity*
Support functions efficiency Continued focus on optimizing R&D, maximizing commercial and back office efficiency*
Inventory efficiency Inventory / revenues ratio reduced by ~2points
denote targets that have been revised from targets set at the beginning of 2012. The Industrial Productivity target has been revised
*
from initial target of EUR0.9bn to EUR1.1bn cumulated gross productivity and the Support Function Efficiency target has been
revised from a decrease of at least 1point of the support functions costs/revenues ratio.
During2012 and 2013, and despite unfavorable business Industrial productivity reached EUR289million in 2012 and
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conditions, these indicators have been showing progress on the EUR358 million in 2013, leading to a cumulative result of
whole: EUR0.65 billion;
the support functions costs/revenues ratio was stable at 23.3%,
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Service organic growth was strong as Services outgrew the rest
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as ~€430m efficiency savings generated from organization,
of the group by 7 points per annum on average (organic growth structure, non-production purchasing were offset by a) lower
of 4% and 9% respectively in 2012 and 2013); than expected volumes, b) ~€230m salary inflation and c)
Solutions saw their profitability improve by 1point, to ~10% in
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~€220m investments, notably in Services, New economies and
2013 versus ~9% in2011; Software;
inventory efficiency improved with a 1.5 point drop in inventory
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to revenues ratio.
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2013 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC