SCH2017_DRF_EN_Livre.indb

5 Consolidated financial statements at December 31, 2017 Notes to the consolidated financial statements

Cash-flows impacts The effect of acquisitions and divestments during the year is a net cash outflow amounting to EUR557 million in 2017:

Dec. 31, 2017

Dec. 31, 2016

(in millions of euros)

Acquisitions

(1,165)

(64)

Purchase of minority interests

(141)

-

Disposals

749

111

NET FINANCIAL INVESTMENT

(557)

47

In 2017, the cash inflow from disposals is mainly related to the price received for the Telvent DTN divestment. The cash outflow from acquisition is mainly related to the price paid for ASCO. In 2016, the cash inflow from disposals is mainly related to the price received for the Telvent Transportation divestment.

Segment information

NOTE 3

E Secure Power (IT) , which covers Critical Power & Cooling Services and three end-customer segments (Bank & Insurance, IT industry and Cloud & Telecom) when it relates to solutions integrating the offers of several activities from the Group. Expenses concerning General Management that cannot be allocated to a particular segment are presented under “Corporate costs”. Operating segment data is identical to that presented to the board of directors, which has been identified as the main decision-making body for allocating resources and evaluating segment performance. Performance assessments used by the board of directors are notably based on Adjusted EBITA. Share-based payment is presented under “Corporate costs”. The board of directors does not review assets and liabilities by Business. The same accounting principles governing the consolidated financial statements apply to segment data. Details are provided in Chapter 4 of the registration document (Business Review).

The Group is organized in four businesses: Low Voltage (Building), Medium Voltage (Infrastructure), Industrial Automation (Industry) and Secure Power (IT) : E LowVoltage (Building) provides low voltage power and building automation products and solutions that address the needs of all end markets from buildings to industries and infrastructure to data centers to help customers improve the energy efficiency of the buildings; E Medium Voltage (Infrastructure) , combines all Medium Voltage activities; the business is in charge of the end-customer segments Oil and Gas, Electric Utilities and Transportation when it relates to solutions integrating the offers of several activities from the Group; E Industrial Automation (Industry) , which includes Automation & Control and four end-customer segments: OEMs, Water, Mining Minerals & Metals and Food & Beverages when it relates to solutions integrating the offers of several activities from the Group;

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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