APC 2015 Annual Report Download - page 188

2015 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC186
BUSINESS REVIEW
4REVIEW OF THE PARENT COMPANY FINANCIALSTATEMENTS
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3. Review of the parent company
financialstatements
Schneider ElectricSE posted total portfolio revenues of EUR4million
in 2015 compared with EUR1million the previous year.
Interest expense net of interest income amounted to EUR126million
versus EUR119million the previous year.
Current loss amounted to EUR141 million in 2015 compared to a
current loss of EUR144million in 2014.
In 2014, Schneider Electric SE invoiced to Schneider Electric
IndustriesSAS a EUR442million consideration for the use of the
Schneider Electric brand, recognized as non-recurring income.
The n et loss stood at EUR53million in 2015 compared with a net
profi t of EUR341million in 2014.
Equity before appropriation of net profi t amounted to
EUR9,808million at December31, 2015 versus EUR10,806million
at the previous year-end, after taking into account 2015 loss,
dividend payments of EUR1,098 million and share issues in an
amount of EUR157million.
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4. Review of subsidiaries
Schneider Electric IndustriesSAS
Revenue totalled EUR3.3billion in2015 (EUR3.4billion in2014).
The subsidiary posted an operating loss of EUR38million in2015 compared with an operating loss of EUR136million in2014.
Net profi t amounted to EUR238million in2015 compared with EUR174million of net profi t in2014.
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5. Outlook
In 2016 the Group sees continued growth in Western Europe and
the construction market in the US . At the same time, headwinds
from O&G, overall weakness in the US industry markets, diffi culties
in China, though to a lesser degree than in 2015, and mixed trends
in the rest of new economies are expected. Additionally, given the
accelerated decline of several new economies’ currencies against
the euro in the end of 2015, the Group should also face a material
FX headwind in 2016.
In this context the Group’s priorities are margin improvement by
working on costs, growing its partner network through the launch
of many new integrated offers, accelerating services and software,
and increasing selectivity on projects focusing on its sectors of
expertise.
Therefore, for 2016 the Group targets:
•Organic revenue growth to be fl at to down low single-digit,
impacted by the Group’s higher selectivity on project activities;
•+20bps to +60bps improvement on adjusted EBITA margin
before FX. The negative FX impact on margin is estimated at
-40bps to -50bps at current rates.