SCH2017_DRF_EN_Livre.indb

➜ Net income

➜ Earnings per share (in euros)

The Group share in net income was 2,150 million euros, up +23% year-on-year. Restructuring charges were 286 million euros, driven by efficiency and simplification initiatives, concluding the 3-year adjustment of our structure and cost. Other operating income and expenses had a negative impact of -15 million euros, vs. -63 million euros in 2016. The amortization and depreciation of intangibles linked to acquisitions was a negative -140 million euros. Net financial expenses were -€367million, €95million lower than in 2016. Cost of debt (net) decreased thanks to new issuance at favorable rates. Income tax amounted to -€600 million. The normative tax rate for the year was down to 21.5%, due to higher synergies related to Invensys and a favorable profit mix. The changes in tax regulations in few countries (including the U.S) during the year contributed to lowering FY17 ETR to 21.1%.

(in millions of euros)

3.85

2,150

3.43

3.39

1,888 1,941

3.12

1,750

2.47 (3)

1,407

2017

2016 2017

2013

2014

2015

2016

2014 2015 (2)

2013 (1)

Share price against CAC 40 index over five years

0 10 20 30 40 50 60 70 80 90

SCHNEIDER ELECTRIC SE CAC 40 index Rebased

28/12/2017

28/12/2012

28/12/2013

28/12/2014

28/12/2015

28/12/2016

➜ Free cash flow (4) (in millions of euros)

➜ Dividend per share (in euros)

2.20 (7)

2,253

2.04

2,216

2,160

2.00

1.92

2,045

1.87

Free cash flow was reported at a record €2,253 million, thanks to strong operating cash flow and despite topline growth requiring increased working capital. It included net capital expenditure of €688 million, representing ~2.8% of revenues. The trade working capital increased by €126 million driven by the growth of the group. Cash conversion remained high at 105% (5) in 2017.

1,704

2017

2016 (6) 2017

2013 2014 2015 2016

2013 (5)

2014 2015

(1) 2013 figures restated due to the full consolidation of Delixi (previously consolidated proportionally at 50%), CST reclassification in discontinued operations and other minor changes. (2) 2015 net income adjusted for Invensys integration costs, impact of business disposals, Pelco impairment, and restructuring charges. All ele- ments net of tax. (3) 2015 EPS adjusted for business disposals impact and Pelco impairment is 3.73 vs. 3.51 in 2014. (4) Cash provided by operating activities less change in working capital less net capital expenditure. (5) 2013 figures restated due to the full consolidation of Delixi (previously consolidated proportionally at 50%), CST reclassification in discontinued operations and other minor changes.

(6) Cash conversion based on net income adjusted for non-cash c.120 million euro income tax increase. (7) Subject to shareholders’ approval at the Annual Meeting of April 24, 2018, for payment on May 4, 2018.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

11