SCH2017_DRF_EN_Livre.indb

4 Business review

Review of the consolidated financial statements

Adjusted EBITA by business segment

2.8

The following table sets out EBITA and adjusted EBITA by business segment:

Full year 2017

Secure Power (IT)

Medium Voltage (Infrastructure)

Industrial Automation (Industry)

Corporate costs

Low Voltage (Building)

Total

(in millions of euros)

Revenue

10,812 2,232 20.6%

5,816 1,021 17.6%

4,500

3,615

-

24,743 3,651 14.8%

Adjusted EBITA* Adjusted EBITA%

449

600

(651)

10.0%

16.6%

-

* Adjusted EBITA: EBITA before restructuring costs and before other operating income and expenses (including acquisition, integration and separation costs).

Full year 2016*

Secure Power (IT)

Medium Voltage (Infrastructure)

Industrial Automation (Industry)

Low Voltage (Building)

Corporate costs

Total

(in millions of euros)

Revenue

10,466 2,117 20.2%

5,485

4,919

3,589

-

24,459 3,498 14.3%

Adjusted EBITA** Adjusted EBITA%

918

477

604

(618)

16.7%

9.7%

16.8%

-

* 2016 figures were restated for discontinued operations, as noted in section 2.1. ** Adjusted EBITA: EBITA before restructuring costs and before other operating income and expenses (including acquisition, integration and separation costs).

Low Voltage (Building) business recorded an adjusted EBITA margin of 20.6% for the year ended December 31, 2017, up 0.4 pt compared to 20.2% for the year ended December 31, 2016, thanks to sales organic growth and strong productivity. Industrial Automation (Industry) business recorded an adjusted EBITA margin of 17.6% for the year ended December 31, 2017, up 0.9 pt compared to 16.7% for the year ended December 31, 2016, benefiting from improved volumes. Medium Voltage (Infrastructure) business recorded an adjusted EBITA margin of 10.0% for the year ended December 31, 2017,

up 0.3 pt compared to 9.7% for the year ended December 31, 2016, thanks to higher system gross margin and strong cost control. Secure Power (IT) business reported an adjusted EBITA margin of 16.6% for the year ended December 31, 2017, down 0.2 pt compared with 16.8% margin for the year ended December 31, 2016, resilient at high level. Corporate costs amounted to EUR651 million for the year ended December 31, 2017 or 2.6% of Group revenues, a slight increase compared to the year ended December 31, 2016 (2.5% of Group revenues or EUR618 million).

2.9 Operating income (EBIT) Operating income (EBIT) increased from EUR2,975 million for the year ended December 31, 2016 to EUR3,210 million for the year ended

December 31, 2017. This 7.9% increase is explained mainly by the EBITA improvement.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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