APC 2014 Annual Report Download - page 175

BUSINESS 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
in the Group consolidated financial statements for the full year
2014.
Acquisitions
On October1, 2014 the Group has obtained all required regulatory
approvals and subsequently finalized the sale of Custom Sensors &
On January17, 2014, the Group completed its acquisition of Technologies (CST) to The Carlyle Group (NASDAQ:CG), and PAI
Invensys plc, a global automation player with a large installed base partners SAS, based on an enterprise value of USD900m
and a strong software presence. The transaction has been (approximately EUR650m). As part of the transaction, the Group
remunerated through the issuance of 17,207,427 new Schneider has reinvested approximately USD100million alongside Carlyle,
Electric shares on January20, 2014 and the payment of PAI and CST management to own a shareholding of 30% of CST.
GBP2.5billion on January30, 2014. CST was reported in the Industry business of Schneider Electric.
The CST activity was reclassified as discontinued operations in
On February5, 2014, Schneider Electric signed an agreement for
Group financial statements on full year 2014 (for EUR24million net
the sale of the Invensys Appliance division because the unit is not a
income) and on full year 2013 (for EUR443million of revenues,
core business to Schneider Electric. The consideration for the
EUR83million of profit before tax and EUR22million of income tax
transaction is GBP150million and the agreement was completed
expense thus a net income of EUR61millions).
on June18, 2014.
Changes in foreign exchange rates
Invensys is fully consolidated in 2014 mainly in the segment
4
Industry, except its Appliance division reported as discontinued
operations.
Changes in foreign exchange rates relative to the euro had a
Acquisitions and disposals that took place in2013
material impact over the year. This negative effect amounts to
and that had an impact on the 2014 financial
EUR543million on consolidated revenue and to EUR166million on
statements*
Adjusted EBITA(1).
Revenue
Electroshield TM – Samara Group has been acquired in 2013 and
consolidated from April 2013. Its consolidation over the full year in
2014 had an impact on the scope of consolidation compared with
On December31, 2014, the consolidated revenue of Schneider
2013.
Electric totaled EUR24,939million, an increase of 6.6% at current
Discontinued operations
scope and exchange rates compared to EUR23,392million on
December31, 2013 (restated for the effect of discontinued
On February5, 2014, Schneider Electric announced that it has operations and change in consolidation method disclosed in note 1
signed an agreement for the sale of the Invensys Appliance of the consolidated financial statements).
division, because this unit is not a core business to Schneider This variance breaks down into an organic increase of 1.4%, a
Electric. The consideration for the transaction is GBP150million contribution of acquisitions net of disposals of 7.6%, mainly due to
and the agreement was completed on June18, 2014. The Invensys acquisition (EUR1,713 million), and a negative exchange
Invensys Appliance division is reported as discontinued operations rate effect of 2.4%.
Changes in revenue by operating segment
The 2013 figures were restated from discontinued operations and All regions posted growth. Western Europe was supported by
change in consolidation method disclosed in note 1 of Germany, Spain and the Nordics. The US benefited from
Consolidated financial statements. continued investment in residential construction and data center
markets, while non-residential construction saw a slow recovery.
The Buildings & Partner business generated revenues of China grew over the year despite slowdown in the second half
EUR10,754million, or 43% of the consolidated total. This thanks to focused execution and mid market offers. Australia
represents an increase of +3.9% on a reported basis and an benefited from slight improvements in residential construction. The
increase of +3.5% on a like-for-like basis. Rest of the World was solid, driven by infrastructure projects in the
Middle East. Russia was resilient over the year and saw an
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.
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