APC 2014 Annual Report Download - page 26

1OVERVIEW OF THE GROUP’S STRATEGY, MARKETS AND BUSINESSES
AMBITIOUS LONG TERM FINANCIAL TARGETS FOR ATTRACTIVE SHAREHOLDER RETURNS
Profitable growth and capital efficiency will drive strong
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Objective to significantly improve ROCE in the next 2-3
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EPS growth: years:
Strong EPS growth is targeted during the next company program The Group has set as an objective the ROCE improvement.
coming from the organic growth objective and efficiency initiatives Compared to the 2013 proforma ROCE including Invensys of
described in the program, a share buyback(4) of EUR1.0 to 1.5 10.9%, Schneider Electric targets to:
billion in the next 2 years and bolt-on M&A in our core and most
return to the pre-Invensys ROCE of c. 12.0% in 1 to 2 years;
–
profitable businesses with strong EPS accretion and return on
improve the ROCE in 2 to 3 years by 1.5 point to 2 points
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investment.
from 2013 proforma level.
Progressive dividend policy:
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In line with the objective of strong EPS growth, a progressive
dividend policy is set with no year-on-year decline of dividend,
showing the Group’s confidence on its future growth prospects.
The dividend payout ratio will remain c.50% of Net income. The
base of calculation will exclude one offs such as capital gains or
losses and, or assets impairments.
Share buyback of EUR1.5 to EUR2 billion including share buyback for neutralization of employees share plans.(4)
24 2014 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC