A signature year defining the foundation for the future

-

A signature year defining the foundation for the future:Acceleration of digital, step change in sustainability, resilient financial performance,

transformational acquisitions, embracing new normal

All forward-looking statements are Schneider Electric management’s present expectations of future

events and are subject to a number of factors and uncertainties that could cause actual results to differ

materially from those described in the forward-looking statements. For a detailed description of these

factors and uncertainties, please refer to the section “Risk Factors” in our Annual Registration Document

(which is available on www.se.com). Schneider Electric undertakes no obligation to publicly update or

revise any of these forward-looking statements.

This presentation includes information pertaining to our markets and our competitive positions therein.

Such information is based on market data and our actual revenues in those markets for the relevant

periods. We obtained this market information from various third-party sources (industry publications,

surveys and forecasts) and our own internal estimates. We have not independently verified these third-

party sources and cannot guarantee their accuracy or completeness and our internal surveys and

estimates have not been verified by independent experts or other independent sources.

Disclaimer

Investor Relations – Schneider Electric | Page 2

04

29

48

53

56

FY 2020 Business Highlights

FY 2020 Financial Highlights

Expected Market Trends & Financial Target

Q&A

Appendix


FY 2020 Business Highlights2020, a year of intensive execution &

accelerated transformation

Jean-Pascal Tricoire

Chairman & CEO


Digital solutions for sustainability and efficiency

Four End-markets

One Model

One Platform

SUSTAINABILITY EFFICIENCY+

Buildings & Data Center c.50% Infrastructure & Industry c.50%

Integrated Empowered Open Sustainable

Energy Management

Energy Transition

Industrial Automation

Industry 4.0


Electrification Digitization

Strong H2 - quick recovery from crisis

Full year - profitability up and cash up

Driven by execution of strategic priorities:

More Products

More Software

More Services

Resilient operating model:

Global and balanced exposure

Multi-local approach

Supply chain agility and globalization

Life Is On High Performance Future-Ready

Support mission-critical

applications in a world

under stress

Hospitals

Data center and IT

Grids

Water networks

Cold chains

Remote operations

Transformational acquisitions

In Software

In India

Robust Innovation pipeline

Sustainability as catalyst for growth

2020: a signature year for Schneider Electric



Life Is On I High Performance I Future-Ready

Our purpose is to empower all to

make the most of our energy and resources,

bridging progress and sustainability for all.

At Schneider, we call this Life Is On.

Our mission is to be your digital partner for

Sustainability and Efficiency.




Life Is On: Meeting critical needs in a year like no otherLife Is On I High Performance I Future-Ready

Urgent support through digital

and services: Hospitals, Mobile

ICUs…

countries where we were

recognized as Mission Critical

> 90

De-risk operations through

automation and digital: Advisors, predictive maintenance,

remote control & monitoring,

Augmented Reality…

Hospitals Food and Beverage Data Centers

Water and Wastewater Life at HomeGrid for electrical distribution



Strong rebound in H2Life Is On I High Performance I Future-Ready

Energy Management

Energy efficiency


Process efficiency

€14bn +1%

Group H2 2020 revenues, org. growth

Adj. EBITA margin

c.+140bpsorg. improvement

c. +120bpsorg. improvement

adj. EBITA margin

c. +120bpsorg. improvement

adj. EBITA margin

€11bn €3bn+1.8%

Org.

-1.6%Org.


Accelerated momentum in H2Life Is On I High Performance I Future-Ready

More Products

More Software & Services

Growth segments

Structural demand acceleration

+3%Org. growth +2%

Org. growth

Leveraging:

• Unrivalled partner network

• Multi-local business model

• Resilient Supply Chain

Performance:

• Digital services benefitting from

need for remote access

• Software strong in Q4

Residential & Critical Buildings

Data Centers

Utilities/Smart Grid

Consumer Packaged Goods

OEM


Electrification

+

Digitization

+

Sustainability

Strong 2020 performance margin up, record free cash flowLife Is On I High Performance I Future-Ready

Energy Management

Energy efficiency


Process efficiency

€25bn -4.7%

Group FY 2020 revenues, org. growth

Adj. EBITA margin

c.+20bps org.15.6%

18.8%adj. EBITA margin

17.1%adj. EBITA margin

€19bn €6bn-4.5%

Org.

-5.3%Org.

Record Free Cash Flow

€ 3.7bnInvestor Relations – Schneider Electric | Page 13

Software & Services

Increasing

Customer stickiness

Enabling

Recurring revenues

Org. growth

Resilience vs

Group’s

performance

Margin Accretive

Catalyst for growth in

controls & connected

products

Proportion set to

increase in 2021 due to

recent transactions

Our expanding Software & Services portfolio delivering Life Is On I High Performance I Future-Ready


Supply chain delivering in challenging environmentLife Is On I High Performance I Future-Ready

Gartner's Supply Chain

Rankings #4 Europe

Top 15#1Worldwide

Top 25

Lexington Smart Factory

Fourth Industrial Revolution

Advanced Lighthouse Designation

Schneider’s 5th LighthouseDigitization of operationsfor efficiency, productivity and quality

Focus on Sustainabilitytowards net zero carbon and circular supply chain

Greater regionalizationlocal resilience through shorter supply chains

Investment for resilience

Strong productivity in H2

Footprint & Lean

Manufacturing

Simplification

Tailored Supply

Chain

Tailored Supply

Chain 2.0

TSC 4.0Tailored Sustainable

Connected

STRIVE

2005 - 2008 2009 - 2011 2012 - 2014 2015 – 2017 2018 - 2020 2021 - 2023

Improved Customer net satisfaction score

on delivery

Improved Supply chain productivity

Improved Inventory management


Close partnership with suppliers

2020 accelerated adoption

2021 will consolidate adoption

Change & Adapt

Learn & Transform

Digital remote services

Digital customer meetings

Virtual Innovation Summits

Flexible working practices

On-site workers & field service agility

Digital everywhere

Mature multi-hub

E3D Design

WORLDWIDE

COLLABORATIONS

Embracing new ways of working and technology

as an accelerator of multi-hub



Customer successes driven by EcoStruxureLife Is On I High Performance I Future-Ready

DARGROUP

Reduce district’s utility consumption by

24% in energy saving

Increase visualization for real-time

monitoring & operation efficiency

Modernization & Process optimization

achieved with energy savings

Country-wide Smart Grid to ensure

efficient, reliable & safe electricity

supply for long-term energy needs

Richland OneSouth Carolina, U.S.

Hong Kong

Jockey ClubWillingboroNew Jersey, U.S.

National energy gridEgypt

DargroupU.K.

TeracoCape Town, South Africa

EastwaterThailand

AccionaSpain

Sustainable & Digital buildings of the

future

Future-Ready & scalable connected

EcoStruxure™ Solution

> 30% increase in operational

efficiency & 15% energy cost cut

country’s first complete water pipeline

Greater efficiency & sustainability in an

integrated maintenance service support

KleinGermany

nxtradataIndia

Future-oriented option “go to cloud”

with unique innovative solutions for

room automations

Ensure higher redundancy &

uninterrupted productivity. Improve

efficiency and meet sustainability goals


Building Data Center Industry Infrastructure

Design & manufacture to upgrade

& improve operational performance

OsborneU.K.

EcoStruxure™ to optimize

operation & improve efficiency

Material Production CompanyChina



Acquisitions & partnerships to prepare for the future…Life Is On I High Performance I Future-Ready

JAN DEC

Electrical & Automation

Digitally transform

buildings into healthy &

sustainable workplaces

Spearhead smart &

green electrification

Accelerate industrial

digital transformation and

differentiate in CPG

World-leading industrial &

real-time operational data

software

Combine Low Voltage

& Industrial Automation

business in India

Leader of 5D BIM cloud-

based building &

construction software

Structured integration plans underway to drive synergies

The OSIsoft and ETAP acquisitions are pending regulatory approval and not closed

Building our digital capabilityBuilding our India presence


AC

QU

ISIT

ION

SP

AR

TN

ER

SH

IPS

Strengthening our Multi-hub operating model

with India as 4th hub


Europe

USA

India

ChinaR&DProducts Supply

Chain

Sales Suppliers

R&DProducts Supply

Chain

Sales Suppliers

R&DProducts Supply

Chain

Sales Suppliers

R&DProducts Supply

Chain

Sales Suppliers


Strengthening Digitization across the lifecycleLife Is On I High Performance I Future-Ready

Edge Control

Connected Products

AVEVA System Platformformerly Wonderware

AVEVA Plant SCADA

AVEVA Manufacturing Execution System

formerly Wonderware

AVEVA Production Management

AVEVA Unified Supply Chain

AVEVA Predictive Analytics

AVEVA Simulation

AVEVAE3D Design

AVEVA Asset Information Management

AVEVA 3D Asset Visualization

AVEVA Enterprise Asset Management

Operate & MaintainDesign Build

Digital Services (Advisors) Power HVAC Asset Sustainability

PI System - Agnostic platform for data collection, historization

and analysis

AVEVA and the AVEVA logo are a trademark or registered trademark of AVEVA Group plc in the U.S. and other countries

The OSIsoft and ETAP acquisitions are pending regulatory approval and not closed


Digitization becoming pervasive in our end-marketsLife Is On I High Performance I Future-Ready

Smart Buildings Data Centers Smart Grid Industry 4.0

All digital, all electric world

Buildings account for

of CO2 emissions

~40%

IP traffic growth

CAGR

~30% Renewable Electricity

from Wind/Solar by 2040

x6of organizations are

investing in big data and AI

97%

Electric vehicle by 2030

x10at the edge of IoT

processing by 2024

50%

World Green Building Council BNEF Harvard Business ReviewCisco

Frost and Sullivan Growth Opportunities in

Distributed Energy, Forecast to 2030IDC, 2018


Boosted by AI, 5G, IIoT…

We are digital partners of our customersLife Is On I High Performance I Future-Ready

Digital & Services combined for a unique efficiency

value proposition down to the shop floorUnique value proposition 4x integrations

Energy Automation+1

End Point Cloud2

Design

& Build

Operate

& Maintain3

Site-by-Site4Integrated

Company

Management

Field

Services

c. 10%

Connectable

products

c. 25%

Software

+ Digital

services

c. 7%

c. 50% Group revenue

leveragingEdge

Control

c. 10%

Assets under

Management

c.+45% YoY

4.2m

76,000+ registered users

>450 new digital offerings

>500 Service providers listed


More innovation and more productsLife Is On I High Performance I Future-Ready

~20 expected Hero offer launches in H1 2021

Powered by R&D cash spend > 5% of revenues

SF6-free Project with E.ON wins enerTIC Award

EcoStruxure™ Automation Expert

PrismaSeT Active

switchboard

100% connected Power

Unified Operations Center solutions

New generation of

ComPacT breakers

Acti9 control

Wiser


Stepping up on frictionless digital experience

Contractors

Panel Builders

OEM

System Integrators

Dis

trib

uti

on

cu

sto

me

rs

Increased proportion of distributor led sales

through e-commerce

% eCommerce channel sales

14%

25%

ESG at the core of our strategy & purpose Life Is On I High Performance I Future-Ready

Leading the pack in ESG ratingsFocusing on ESG for over 15 years

2005-

2008

2009-

2011

2012-

2014

2015-

2017

2018-

2020

B*67

AAA 13.4 (low risk) A

BB

Industry average score1

AAA for 10th year

in a row#1 in

peer group10th year in

A List

SE 2020 score

9.32/10 FY’20surpassing target of 9/10

Taking Sustainability To The Next Level

2021-2025

1. Average score among: ABB, Legrand, Siemens, Eaton, Emerson, Honeywell, Johnson Controls, Rockwell Automation, Fuji Electric, Mitsubishi Electric and Yokogawa

Watch the replay of ESG Investor day in November 2020 available here


80% Green

revenues

by 2025

https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=D31BB7B5-E6BE-4794-BDD9-4D01CB7D9B40&Referrer=https%3A%2F%2Fwww.se.com%2F

Sustainability as a business - another growth driverLife Is On I High Performance I Future-Ready

> 130Mmetric tons CO₂

saved on ourcustomers' end

since 2018

Integrated for Retail

to manage restaurant’s energy systems

100%

Novartis first pharmaceutical

set to achieve 100% renewable

electricity in its European

operations

5Executed

New sustainability business established

powered by renewable energy

VPPAs in Spain

First-ever sustainability flagship

restaurant to meet goals with optimal

energy efficiency in Australia

VPPA: virtual power purchase agreement


Our distinctive DNA is externally recognizedLife Is On I High Performance I Future-Ready

#1the world’s mostsustainable company

2021


We remain focused on generating shareholder value Life Is On I High Performance I Future-Ready

* SE performance among 11 peers as considered for long-term incentive plan (base 100: Jan 1st, 2018)

** Proposed dividend subject to Shareholder approval on April 28, 2021

40

60

80

100

120

140

160

180

200

20202018 2019

Total Shareholder Return

SE #1 in 2020 & over a 3-year period

Progressive Dividend** for 11 years

€2.60**Dividend per share

+2% vs. 2019

*

3-YEAR TSR

c. +85%

1-YEAR TSR

c. +33% 2010 202020172016 2018201520142013 201920122009 2011

x2.5

Progressive dividend

(payout ratio of c.50% of adj. net income)


FY 2020 Financial Highlights

Hilary Maxson

CFO


FY20 Financial highlights

- further progress on our journey

Revenues

€25bn, -4.7% org.Ending the year with consecutive quarters of

organic growth

Gross Margin

+60bps org.Demonstrating discipline on pricing, and

move towards Software

Adj. EBITA Margin

+20bps org.Cost containment through crisis while still

preparing the future

Free Cashflow

159% conversion1

Strong contribution from working capital

movements

ROCE2

12.0%, -10bpsShowing good resilience

notwithstanding lower EBITA

1. Conversion of FCF / Net Income without impacts of IFRS 16

2. Adjusted for recent large M&A


Adj. Net Income

€2.6bn, -4.4% org.Down year-on-year due to impacts of

pandemic

Revenue growth rebound up +1.0% organic in H2

Analysis of Change in Group Revenues (in €m)

Based on current rates, the FX impact on FY 2021 revenues is estimated to be between -€600 million to -€700 million.

The FX impact at current rates on adjusted EBITA margin for FY 2021 could be around -10bps.


+1.3%

-0.3%

Forex H2 2020

13,9560.0%

Western

Europe

+3.4%

13,584

Asia Pacific

+0.4%

North America

-5.0%

H2 2019 ScopeRest of the

World

Contributions from L&T E&A, RIB

Software and ProLeiT partially offset by

disposal of Converse Energy Projects

and deconsolidation of Electroshield

Samara

Group +1.0% org. in H2

(+0.8% org. in Q4)

Mainly due to the

strengthening of the

Euro against the USD

Energy Management - H2 performance highlights

€11bn78% of Group H2 2020 revenues

H2 Adj. EBITA margin

20.2% / c. +120bps org.(+100bps reported)

H2 2020H2 2019

10,775

Organic

+1.8%

Scope

+1.5%

FX

-5.0%

10,589

-1.7%

Key performance highlights

• Strong performance in Residential

• Good traction in specialized areas of non-residential,

e.g. healthcare

• Sales to Data Center market finished strongly, though

impacted by high-base through FY20

• Industry & Infrastructure impacted by lower

investments in O&G and MMM. Smart Grids, CPG &

transportation performing well

• Services back to growth

• Strong H2 profitability driven by net price and

productivity


Industrial Automation - H2 performance highlights

€3bn22% of Group H2 2020 revenues

H2 Adj. EBITA margin

18.8% / c. +120bps org.(+30bps reported)

H2 2020H2 2019

Key performance highlights

• Discrete end-markets resilient, with strong growth in

China

• Process Automation end-markets remained

challenged

• Strong finish in Q4 from AVEVA

• Strong demand from CPG segment, good demand in

MMM and WWW

• Mid-single digit growth in services

• Strong H2 profitability driven by net price and

productivity

2,995

-5.9%

FX

-4.9%

3,181

Organic

-1.6%

Scope

+0.6%


Split of Q4 2020 revenue by geography:

Q4 Org. growth

W. Europe

Rest of the World

• Good growth in U.S. and sequential improvement on Q3

• Strong demand in Data Center market

• Normalization of supply-chain and site access

• Canada solid, while Mexico down double-digit

N. America

• CIS up strongly, while Africa also grew well

• South America up low single-digit on a high base, led

by Brazil

• Middle East remained challenging, with weak project

demand in Saudi Arabia. Turkey grew.

Asia Pac.

North America +3%

Rest of the World +1%

• China grew high-single digit with strong performance across

end-markets

• India down slightly against a high base, progressive recovery

from COVID-19 lockdowns

• Good growth in Australia

• South East Asia down, with Indonesia weak in Utilities

Asia Pacific 0%

• Strong growth in Germany, led by Residential and Data Center

• France up slightly with good traction in Infrastructure projects &

Field Services

• U.K. and Spain both slightly down

• Italy impacted across end-markets

26% 29% 29% 16%

Western Europe +1%

Focus on Q4 - Energy Management up +1% organic


• U.S. OEM demand remained soft overall, but with

growth in certain targeted segments

• Process Automation markets in U.S. remained

challenged

• Canada and Mexico down

• Good growth in South America, with recovery in OEM

demand and good traction in CPG

• Middle East resilient, good performance in Turkey in

discrete markets, Gulf weaker

• Africa weak with delayed investment decisions

• CIS down on high base

• Good demand for the Group’s software offers, incl. U.K.

• Germany and Spain around flat

• Recovery in Discrete automation markets in Germany

• France and Italy down, due to weakness in Discrete markets

• China up double-digit led by OEM demand

• India down on high base of comparison in Process end-markets

• Strong growth in Australia, benefitting from Software

• Varied performance in other countries, South Korea up, Japan down

North America -12%

Rest of the World -7%

Western Europe +3%

Asia Pacific +6%

33% 18% 33% 16%

Q4 Org. growth

Split of Q4 2020 revenue by geography:

Focus on Q4 - Industrial Automation down -1% organic

W. Europe

Rest of the World

N. America

Asia Pac.


Resilience in execution across strategic pillars

More Software & ServicesMore Products Better Systems

+1%FY’20 org.

growth

-4%FY’20 org.

growth

+10bpsFY’20 GM expansion

On -9% FY’20 organic growth

59% of Group 24% of Group17% of Group


Increased portfolio quality - demonstrated by GM trajectory

FY’20 Gross margin % FY’20 Gross margin expansion Gross margin expansion Gross margin %

40.4%Representing a 12-year high

+60bpsOrganic improvement

+250bpsOrganic improvement in last 5 yrs

5 Yearsof continuous improvement

Main drivers

Track record of RMI recovery

over the cycle

Consistent delivery on

industrial productivity -

ambitious target set

Consistent improvement on

Systems margin

1. Price on products and raw material impact

2016 2017 2018 20202019

Net price1 evolution Cumulative impacts:

• €125m RMI headwind

• €525m positive Net price

RMI

Net price


Continued focus on adj. EBITA margin expansion

FY’20 Adj. EBITA margin %

Adj. EBITA margin expansion

FY’20 Adj. EBITA margin growth

Adj. EBITA

15.6%Unchanged margin % vs. last year

+20bpsOrganic improvement

+300bpsOrganic improvement over last 5 years

c. +6%5-year organic growth CAGR

On track for adj. EBITA margin

by 2022, which is not the end of the journey

c. 17%

Consistent organic Adj. EBITA margin

expansion in both lower growth and

higher growth environments

-0.9% +6.6%+3.2% -4.7%+4.2%FY org. revenue growth:

2016 20182017 202020192015

14.1%

15.1%14.8%

15.6%15.6%

13.7%

+70bps

+50bps+90bps

+20bps+70bps

Adj. EBITA margin:

c.+300 bps organic

+190 bps reported


*

(*) assuming current 2021 FX rates for 2021 and 2022

FY 2020 Adj. EBITA +20 bps org. due to productivity, net

price and SFC savings


Analysis of Change of Adjusted EBITA (in €m)

262

21951

171

-179

R&D &

Production

Labor infl.

Scope &

others

FY 2020Volume Net price1 Productivity

4,238

Mix

3,926

-87-558-191

FY 2019 ForexSFC

• Pricing on products +188M€

• Raw material tailwind +74M€,

expected to turn negative in 2021

• Favorable mix impact from balance

of growth by geography and the

relative performance of products

vs. systems

• FY 2021 expected to return to more

normalized mix profile

• The reduction in support function cost

was supported by savings of

c.€650 million derived from the Group’s

agile response to the crisis and ongoing

operational efficiency actions


Adj. EBITA: Margin maintained at 15.6%, growing +20bps org.

In €m 2019 2020Reported

changeOrganicchange

Revenues 27,158 25,159 -7.4% -4.7%

Gross Profit 10,735 10,156 -5.4% -3.2%

Gross Margin (%) 39.5% 40.4% +90bps +60bps

SFC1 (6,497) (6,230) -4.1% -2.9%

SFC1 Ratio(% Revenues) 23.9% 24.8% +90bps +40bps

Adjusted EBITA 4,238 3,926 -7.4% -3.6%

Margin % 15.6% 15.6% flat +20bps

R&D/Sales ratio 4.8% 5.3% +50bps +30bps

• SFC/Sales ratio rises from 23.9% to 24.8% due to declining revenues

• SFC down -2.9% organic in value, benefitting from Group’s COVID-19

response and ongoing operating efficiency savings

• Investment continued in the Group’s strategic priorities

R&D (partly in COGS, partly in SFC) increased by +3% org., resulting in an

R&D to Sales ratio that increased by +30 bps org., mainly due to the lower

revenue in 2020 while investment in R&D was protected

Energy Management Industrial Automation

c.+30bpsOrg. Adj. EBITA

c.-30bpsOrg. Adj. EBITA

1. Support Function Cost


Positioning for the new reality:

stepping up on structural savings

SFC Cost Savings in 2020

Tactical / structural Cumulative structural savings 2020-2022FY 2020

c.€650 million

Tactical savings to reverse in 2021 – enhanced efficiency from adopting new ways

of working to partly contribute to cumulative structural savings by 2022

c.€300 million

FY’20

c.€350 million

FY’20

c.€1bn

Tactical savings

Operational efficiency

H1

c. €200 million

H2

c. €100 million

H1

c. €150 million

H2

c. €200 million


Adj. Net Income of €2.6bn

In €m 2019 2020 % change

Adjusted EBITA 4,238 3,926 -7%

Other income and expenses (411) (210)

Restructuring (255) (421)

Amortization & imp. of purchase accounting intangibles (173) (207)

EBIT 3,399 3,088 -9%

Financial costs (261) (278)

Income tax (690) (638)

Discontinued operations (3) -

Equity investment & Minorities (32) (46)

Net income (Group share) 2,413 2,126 -12%

Adjusted Net income1 2,933 2,614 -11%

Adjusted Earning per share1 5.32 4.72 -11%

Mainly M&A / integration costs. 2019 included loss on

disposal of Pelco

Increased restructuring costs due to Group’s

ongoing structural savings and cost efficiency plan.

As announced at H1 Group expects €1.15 - €1.25bn

in aggregate 2020-2022

Increase mainly due to FY20 acquisitions: including

RIB Software (for 6 months) and L&T E&A division

(for 4 months)


1: Adjusted net income and EPS calculation in appendix

Record Free cash flow at €3.7 billion

Positive evolution on receivables and payables typical of a

lower growth environment, offset by increase in inventory

in preparation for 2021

Analysis of debt change in €m 2019 2020

Net debt at opening Dec 31 (5,136) (3,792)

Operating cash flow 4,012 3,651

Capital expenditure – net (806) (762)

Operating Cash Flow net of capex 3,206 2,889

Change in trade working capital 190 517

Change in non-trade working capital 80 267

Free cash flow 3,476 3,673

Dividends (1,413) (1,525)

Acquisitions – net (79) (2,393)

Net capital increase (98) (7)

FX & other (542) 483

(Increase) / Decrease in net debt 1,344 231

Net debt December 31 (3,792) (3,561)

Benefitted by certain timing impacts specific to COVID-19

situation in the year

Including RIB Software and L&T E&A

Lower level of share buyback in FY20, due to multiple

factors

Benefitting from the €1.1bn third-party cash contribution to

AVEVA rights issue in anticipation of OSIsoft deal closing


Capital allocation: priorities unchanged

Successful integration of recent

acquisitions and deliver associated

synergies

Renewed progress

expected on disposal program

starting in H1 2021

Small bolt-ons or partnerships

linked to long-term strategy

Portfolio optimization

Strong Investment

Grade Credit Ratings

Share buyback*

Continued focus on

Dividends


* on hold in the near-term

1 2

3 4

Near-term focus:

++

Balance sheet remains strong - Net Debt impacted by

timing of OSIsoft completion

• The Group benefits from holding at Dec. 31, the cash contribution

from 3rd parties of the AVEVA rights issue

• As the acquisition of OSIsoft had not been completed, payment of

the c. $5bn consideration had not been made

Timing impacts on Dec. 31 balance sheet

Notwithstanding the impacts from the completed

transaction, the Group intends to retain its current

strong Investment Grade credit rating

Net Debt / Adj. EBITDA

* Net Debt as of Dec. 31, adjusted for 3rd party cash contribution, as a proportion of Adj. EBITDA for FY20

2020 Adj.*2020

0.99x

2019

0.73x 0.75x


Continued focus on return on capital but impacted by

transformational software deals to prepare the future

* Adjusted for recent large M&A (calculation in appendix)

10%

11%

12%

13%

201920172016 2018 2020

ROCE*Group ROCE*: 12.0%

(vs. 12.1% in 2019)

Transformational software deals

announced in 2020 will be a catalyst for

future sales growth

Recent transactions could impact ROCE

in near-term but positive for long-term

value accretion


First ever sustainability-linked convertible bond

€650 millionin H2 2020

linked to

2021-2025

Climate

Equal

Generations

3 key performance indicators selected

Deliver 800 megatons of saved and

avoided CO2 emissions to our customers

Increase gender diversity, from hiring to

front-line managers and leadership teams

(50/40/30)

Train 1 million underprivileged people in

energy management


Expected market trends & financial target

Jean-Pascal Tricoire

Chairman & CEO


Expected market trends in 2021


By End-market By Geographic market

NORTH AMERICA

• Strong growth expected for the region, including

in both Residential and Data Center markets

• Mid/Late cycle industrial markets challenged in

near-term, short cycle expected to grow well

• Continued softness in Mexico

WESTERN EUROPE

• Good recovery to continue in the region, led

by Residential and Data Center markets

• Discrete automation markets to perform better

than Process & Hybrid

• Green Deal stimulus impacts to start towards

end of year

ASIA PACIFIC

• Strong growth expected for region

• China to continue growth momentum, with

good traction across most end-markets and

segments

• Rest of Asia Pacific to see continued

improvement, supported by Global trade

recovery

REST OF WORLD

• Strong growth overall, though performance

contrasted by country

• Rising commodity prices supportive of growth

in certain countries

BUILDINGS

DATA CENTER

INFRASTRUCTURE

INDUSTRY

• Strong growth in Residential markets

• Good growth in specialized areas of Non-

residential, including Warehouse, Healthcare

• Continuation of robust demand is expected,

leading to strong growth

• Strong growth expected in short-cycle, led by

OEM demand

• Mid- and late-cycle demand to remain impacted

in the near-term, Hybrid segments better oriented

• Good growth in Utilities segment supported by

project execution

• Continued demand for Smart Grid

2021 Target


The Group expects positive growth in aggregate in 2021 as it continues to deploy its strategic priorities in key markets.

The Group targets 2021 Adjusted EBITA growth between

+9% and +15% organic

The target would be achieved through a combination of organic revenue growth and margin improvement, currently

expected to be:

• Revenue growth of +5% to +8% organic

• Adjusted EBITA margin up +60bps to +100bps organic

This implies Adjusted EBITA margin of around 16.1% to 16.5% (including scope based on transactions completed in 2020 and FX based on current estimation)

Further notes on 2021 FX & Scope available in slide 57

Across cycle & Medium-term ambition reiterated


• Organic revenue growth of between +3% to +6%, on average across the cycle

• Achieve higher margins with a first step of moving adjusted EBITA margin to around 17%* by 2022

• Free cashflow to be around €3 billion (excluding IFRS16), on average across the cycle

(*) assuming current 2021 FX rates for 2021 and 2022

2021 and beyond: strategic direction is clear

MoreSustainability

MoreProducts

MoreSoftware

MoreService

GrowthRecurring

Revenues

Margin

Improvement

Cashflow

Generation

Sustainable

Model

Shareholder return


Q&A


Investor Relations ready to engage

Information on www.se.com/finance

Consensus available on http://www.se.com/en/about-us/investor-relations/share-information/share-price.jsp

Proposing quarterly interaction with investors showcasing specific businesses, geographies or functions

11 February FY Results

17 February Barclays Industrial Select Conference

27 April Q1 2021 Revenues

28 April Shareholders’ Meeting

10 & 11 March UBS Best of Business Services, Industrials & Green Mobility Conference

25 March J.P. Morgan Global ESG Conference

8 June Exane CEO Conference

11 June J.P. Morgan European Capital Goods Conference

30 July 2021 Half Year Results

9 September Morgan Stanley Industrial CEOs Unplugged

27 October Q3 2021 Revenues

3 December Societe Generale Premium Review Conference


Investor Relations contacts


Graham Phillips – Investor Relations Director, [email protected]

Amit Bhalla – Head of Investor Relations, [email protected]

Alban de Beaulaincourt – Investor Relations Director, [email protected]

Appendix


2021 additional notes

• Foreign Exchange impact: Based on current rates, the FX impact on FY 2021 revenues is estimated to

be between -€600 million to -€700 million. The FX impact at current rates on adjusted EBITA margin for

FY 2021 could be around -10bps

• Scope: Around +€600 million on 2021 revenues and around flat on 2021 Adj. EBITA margin, based on

transactions completed in 2020

• Tax rate: The ETR is expected to be in a 22-24% range in 2021

• Restructuring: The Group expects restructuring costs of between €1.15 - €1.25 billion over three years

(2020-2022) as previously communicated

• Industrial Productivity: Over a three-year period (2020-2022) the Group expects Industrial Productivity

of around €1 billion as previously communicated


Consistent strategy delivering on several counts

Continued Pricing Power

ESG

Industrial Productivity

Adj. EBITA

R&D

Significant Gross

Margin improvement

Topline Growth Profile

Capex

Free Cash Flow

Net pricing in 2020 € 262 million; € 525 million delivered over a 5-year period

Completed 2018-2020 SSI scoring 9.32/10 vs. target of 9/10; ambitious new targets for 2021-2025 SSI unveiled

Strong track record delivering € 350 million on average over 5 years; € 1 billion target for 2020 – 2022

300 bps organic improvement in 5 years, ambition for c.17% by 2022 on track

Investment prioritized as catalyst for growth, c. 5% of sales spent as R&D cash costs on average

Improved by 250 bps organic in last 5 years

Across cycle target : 3% to 6% org., 2020 impacted by pandemic, 2016-2019 CAGR c. 4.5% org.

Levels unchanged despite growth profile

Execution of our strategy puts us in “around €3 bn” levels, on average across the cycle (excl. impacts of IFRS16)


Schneider Sustainability Impact 2018-2020, Results as of Q4 2020

2018-2020

Beginning

01/2018

Results

Q4 2020

Target

End 2020

Overall score out of 10 3 9.32 9

1. Renewable electricity -- 80%↑ 80%

2. CO2 efficiency in transportation -- 8.4% ↑ 10%

3. Million metric tons CO2 saved on our customers’ end thanks to EcoStruxure offers -- 134 ↑ 120

4. Increase in turnover for our EcoStruxure Energy and Sustainability Services -- 17.6% ↑ 25%

5. Sales under our new Green Premium program 30.5% 76.7% ↑ 75%

6. Sites labeled towards zero waste to landfill 140 206 ↑ 200

7. Cardboard and pallets for transport packing from recycled or certified sources 50% 99% → 100%

8. Metric tons of avoided primary resource consumption through ecoFit, recycling, and take-back programs -- 157,588 ↑ 120,000

9. Scored in our Employee Engagement Index 65% 69% → 70%

10. Medical incidents per million hours worked 1.15 0.58 ↑ 0.88

11. Employees have access to a comprehensive well-being at work program 13% 90% ↑ 90%

12. Employees are working in countries that have fully deployed our Family Leave policy -- 100% ↑ 100%

13. Workers received at least 15 hours of learning, and 30% of workers’ learning hours are done digitally -- 90% ↑ 100%(1)

14. White-collar workers have individual development plans 32% 92% ↑ 90%

15. Employees are working in a country with commitment and process in place to achieve gender pay equity 89% 99.6% ↑ 95%

16. Increase in average score of ISO 26000 assessment for our strategic suppliers -- +6.3 ↑ +5.5 pts

17. Suppliers under Human Rights & Environment vigilance received specific on-site assessment -- 374 ↑ 350

18. Sales, procurement, and finance employees trained every year on anti-corruption -- 94% ↑ 100%

19. Turnover of our Access to Energy program -- x1.64 ↑ X4

20. Underprivileged people trained in energy management 148,145 281,737 ↑ 400,000(1)

21. Volunteering days thanks to our VolunteerIn global platform -- 18,469 ↑ 15,000

The arrow shows if the indicator has risen, stayed the same or fallen compared to the previous quarter.

The color shows if the indicator is above (green) or below (red) the quarter objective of 9/10(1) Impacted by COVID-19

Our 21 goals 2018-2020Our megatrends & SDGs

CLIMATE

CIRCULAR ECONOMY

HEALTH & EQUITY

Ethics

DEVELOPMENT


New SSI 2021-25: taking sustainability to next level

CLIMATE 1. Grow our green revenues to 80%

2. Deliver 800 megatons of saved and avoided CO2 emissions to our customers

3. Reduce CO2 emissions from top 1000 suppliers’ operations by 50%

RESOURCES 4. Increase green material content in our products to 50%

5. 100% of our primary and secondary packaging is free from single-use plastic and uses

recycled cardboard

TRUST 6. 100% of our strategic suppliers provide decent work to their employees

7. Measure the level of confidence of our employees to report behaviors against our Principles of Trust

EQUAL 8. Increase gender diversity, from hiring to front-line managers and leadership teams (50/40/30)

9. Provide access to green electricity to 50 million people

GENERATIONS 10. Create opportunities for the next generation –

2X number of opportunities for interns, apprentices, and fresh graduate hires

11. Train 1 million underprivileged people in energy management

LOCAL 100% of Country and Zone Presidents define 3 local commitments that impact their communities in

line with our sustainability transformations

2018-2020

11Global Impact

1Local Impact

+



2021-2025

ESSENTIALS

CLIMATE 1.

2.

3.

4.

150 Zero-CO2 sites

100% substitution with SF6-Free medium voltage technologies

90% of electricity sourced from renewables

15% CO2 efficiency in transportation

RESOURCES 5.

6.

7.

8.

9.

10.

11.

15% energy efficiency in our sites

80% of product revenues covered by Green Premium™

One-third of corporate vehicle fleet comprised of electric vehicles (100% by 2030)

100% of sites with local biodiversity conservation and restoration programs

200 ‘Waste-to-Resource’ sites

420,000 metric tons of avoided primary resource consumption through ‘take-back at end-of-use’ since 2017

100% of sites in water-stressed areas have a water conservation strategy and related action plan

TRUST 12.

13.

14.

15.

16.

17.

Deploy a ‘Social Excellence’ program through multiple tiers of suppliers (baseline to be defined in 2021)

100% of employees trained every year on Cybersecurity and Ethics

0.38 or below Medical Incident rate

Halve the weight of safety units recalled

In the Top 25% in external ratings for Cybersecurity performance

4,000 suppliers assessed under our ‘Vigilance Program’

EQUAL 18.

19.

20.

21.

<1% pay gap for both females and males

60% subscription in our yearly Worldwide Employee Share Ownership Plan (WESOP)

100% of employees paid at least a living wage

3X the number of employee-driven development interactions on the Open Talent Market

GENERATIONS 22.

23.

24.

>90% of employees undergo digital upskilling through the Digital Citizenship program and digital transformation training

Systematic career review and development plan for all employees ten years before retirement

75% employee engagement score

LOCAL 25. 50,000 volunteering days since 2017

Respond

Countries

67Projects

74People benefited

1.5m

Recovery

Resilience

April to

Decem

ber

Education system to prepare the future

June to D

ecem

ber

First needs of low-income people

7

Employees contribution as a volunteer

5,000 volunteering days

Initiatives started Morocco, Ecuador, Lebanon, Brazil, Malawi, Sri Lanka, Kenya

Tomorrow Rising Fund by


Our employees have come together and stepped up efforts to support COVID-19 relief


FY revenue down -4.7% org. having rebounded well in H2

Analysis of Change in Group Revenues (in €m)

Asia Pacific

-5.3%

-4.1%

North America Rest of the

World

Scope

-2.5%

Forex FY 2020

27,158-4.1%

Western

Europe

-0.2%

FY 2019

25,159

-4.9%

Mainly comprises the disposal of Pelco and Converse Energy

Projects, and the deconsolidation of Electroshield Samara;

offset by the acquisition of L&T E&A, RIB Software and ProLeiT

Mainly due to the

strengthening of the

Euro against the USD

Group +1.0% org. in H2

(+0.8% org. in Q4)


Organic growth by region Q4 2020: Energy Management +1.2%

NORTH AMERICA WESTERN EUROPE

REST OF WORLD

+3%29%

+1%16%

+1%26%

Org. growth% EM revenues

United States Canada Mexico

Russia South America Middle East Africa

France Germany United Kingdom Spain Italy

ASIA PACIFIC

+0%29%

China India Australia Indonesia

Nordics

Thailand


Organic growth by region Q4 2020: Industrial Automation -0.8%

NORTH AMERICA

ASIA PACIFIC

WESTERN EUROPE

REST OF WORLD

-12%18%

-7%16%

+3%33%

Russia South America Middle East Africa

France Germany United Kingdom Spain Italy

+6%33%

China India Australia S. Korea Japan

United States Canada Mexico Nordics

Org. growth% IA revenues


GM - strong contribution from price and productivity

Gross Margin Analysis of Change – FY20

39.5%

FY 2019 Scope & Others

-0.5pt0.7pt

Net price1

0.9pt

Productivity

-0.1pt

FX

-0.3pt

MixR&D & Prod.

Labor infl.

0.2pt

FY 2020

40.4%


Adjusted Net Income calculation


In €m FY2019 FY2020

Adjusted EBITA 4,238 3,926

Amortization of purchase accounting intangibles (173) (207)

Financial Costs (261) (278)

Income tax with impact from adjusted items (836) (781)

Discontinued ops (3) -

Equity investment & Minority Interests (32) (46)

Adjusted Net Income (Group share) 2,933 2,614

Adjusted EPS (€) 5.32 4.72

Record Free cash flow at €3.7 billion

Free cash-flow evolution (€m)

FY20 FCF €3.7bn with strong

contribution from working capital typical

of low growth environment

Resulting in 159% conversion** of Net

Income to FCF

20172015 202020192016 2018 2021

Also benefitted by certain timing impacts

specific to COVID-19 situation in the year

FCF expected to be around €3bn

(excluding IFRS16), on average across

the cycle

€3bn

2,0452,206 2,253

2,102

3,4763,673

* 2015-2018 not restated for impacts of IFRS16 which added €283m to Free cash flow in 2020 and €274m in 2019

** Conversion of FCF / Net Income without impacts of IFRS 16


€274m

IFRS 16€283m

IFRS 16

€3,202m €3,390m

ROCE Calculation

P&L items2020

Reported

EBITA1 (1) 3,246

Restructuring costs (2) -421

Other operating income & expenses (3) -210

= Adjusted EBITA (4) = (1) - (2) - (3) 3,877

x Effective tax rate of the period2 (5) 22.7%

= After - tax Adjusted EBITA (A) = (4) x (1-(5)) 2,997

Balance Sheet items2019

Reported2020

Reported

2020 Avg of 4

quarters

Shareholders’ equity 23,140 23,727 (B) 22,980

Net financial debt 3,792 3,561 (C) 4,626

Adjustment for Associates and Financial assets (fair value) -843 -1,065 (D) -2,558

= Capital Employed 26,089 26,223 (E) = (B)+(C)+(D) 25,048

= ROCE (A) / (E) 12.0%

1. Without recent large M&A

ROCE calculation

2. Effective tax rate


Documents

A signature year defining the foundation for the future