SCH2017_DRF_EN_Livre.indb

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Business review Review of the parent company financial statements

3. Review of the parent company financial statements

Schneider Electric SE posted an operating loss of EUR14 million in 2017 compared with EUR16 million the previous year. Interest expense net of interest income amounted to EUR106 million versus EUR128 million the previous year. Current loss amounted to EUR28 million in 2017 compared to a current loss of EUR162 million in 2016.

The net profit stood at EUR121 million in 2017 compared with a net loss of EUR100 million in 2016. Equity before appropriation of net profit amounted to EUR7,893 million at December 31, 2017 versus EUR8,745 million at the previous year- end, after taking into account 2017 loss, dividend payments of EUR1,133 million and share issues in an amount of EUR160 million.

4. Review of subsidiaries

Schneider Electric Industries SAS Revenue totaled EUR3.5 billion in 2017 (EUR3.2 billion in 2016). The subsidiary posted an operating gain of EUR94 million in 2017 compared with an operating gain of EUR115 million in 2016.

Net profit amounted to EUR1.2 billion in 2017 compared with EUR264 million of net profit in 2016.

5. Outlook

In a positive environment, the Group targets to deliver strong organic growth of adjusted EBITA in 2018, around the high-end of the +4% to +7% bracket earlier communicated as the average yearly objective for 2017-2019.

To deliver this strong performance the Group will balance both levers of organic top line growth and adj. EBITA margin expansion. Therefore, for 2018, the Group will target: E an organic top line growth between +3% to +5%; and E an organic adj. EBITA margin expansion towards the upper end of the +20bps to +50bps range targeted as yearly average improvement for 2017-2019.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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