APC 2013 Annual Report Download - page 7

INTERVIEW WITH EMMANUEL BABEAU
DEPUTY CEO, IN CHARGE OF FINANCE AND LEGAL AFFAIRS
The past few months are also marked by the You said that Invensys filled a major gap in the
acquisition of Invensys. What is the rationale behind Group’s business portfolio. How will this impact your
this strategic move? growth strategy and capital allocation?
With Invensys, we enhance our business portfolio and position After a decade of building and improving our portfolio of
ourselves for further growth. The company will make us a unique businesses, we now intend to focus primarily on organic growth.
industrial automation player, boost our positions in key While maintaining our exigency for a strong balance sheet, with a
electro-intensive segments and strengthen our software business long term credit rating target of A-, we commit to a capital
for customer operational efficiency. After announcing our offer on allocation supporting direct shareholder returns. This will start
July 31st, 2013, we obtained a strong approval from Invensys with the stability of the share capital through neutralization of
shareholders and satisfied all regulatory approval conditions to employee and management share plans. Together with progress
close the deal on January 17th, 2014. Since then, we also signed in growth and efficiency, this should provide for solid EPS and
an agreement to divest the non-core Appliance division. We can dividend performance. ROCE, return on capital employed, is
now focus on integration, and confirm our target for annual therefore at the heart of our focus. We aim to bring ROCE back
revenue and cost synergies of €205 million by 2018, together to pre-Invensys level in 1 to 2 years and target a 1.5 to 2.0 points
with tax benefits valued at €500 million. improvement in 2 to 3 years, starting from around 11.0% in 2013
including Invensys on a proforma basis.
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2013 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC