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                    22/02/2012

                    2011 Annual Results

                    • Strong full year organic growth at +8.3%
                    • New economies and Solutions at 39% and 37% of sales respectively
                    • Acquisition integration synergies on track
                    • EBITA up 7% and margin at 14.2%¹
                    • Robust pricing and free cash flow generation in H2


                    Rueil-Malmaison (France), February 22, 2012 – Schneider Electric announced today the fourth quarter sales and full year results for the period ending December 31, 2011.

                    Key figures (€ million)

                    Full Year 2010

                    Reported

                    Full Year 2010

                    Comparable²  

                    Full Year 2011

                    Reported

                    % change  vs.

                    Reported

                     

                     

                     

                     

                     

                    Sales

                     

                    19,580

                    20,228

                    22,387

                    +14%

                    Organic growth

                     

                     

                    +8.3%

                     

                     

                     

                     

                     

                     

                    EBITA³ before acquisition

                    and integration costs

                     

                    2,962

                     

                    2,971

                     

                    3,178

                     

                    +7%

                    % of sales

                    15.1%

                    14.7%

                    14.2%

                     

                     

                     

                     

                     

                     

                    Net income (Group share) 

                    1,720

                     

                    1,820

                    +6%

                    ¹ EBITA margin before acquisition and integration costs
                    ² Comparable: including Areva Distribution in full year 2010 in the Infrastructure business
                    ³ EBITA: EBIT before amortization and impairment of purchase accounting intangibles and impairment of goodwill
                     

                    Jean-Pascal Tricoire, President and CEO, said: “In 2011, we delivered solid organic growth and higher earnings, despite a context of record raw material inflation, major supply chain disruptions, and a change of mix due to robust growth in solutions. Free cash flow reached all time high in the second half thanks to strict working capital control.

                    2011 has been an active year of transformation and strategic deployment for the Group. We accelerated organic investments, growing both our presence in new economies to about 40% of sales and our solution business to 37%. We also made a number of strategic acquisitions. The integration of Telvent in our portfolio is a particularly important milestone for our development in the field of critical infrastructures and also a major step for our software capabilities.

                    We also ended our three-year company program “One” with success. One laid a very solid foundation for our future: One brand, One company for our customers and employees, One organization everywhere, and a far higher efficiency than in 2008.

                    For 2012, the uncertainty surrounding the global economy limits visibility. While we see continued strength in new economies and opportunities from a recovering North America, Western Europe is expected to weigh on growth. In this context and assuming no major change in economic conditions, the Group expects flat to slightly positive organic growth for sales and an adjusted EBITA margin between 14% and 15%.”


                    I. Q4 SALES WERE 6.1% HIGHER ON A COMPARABLE BASIS, DRIVEN BY STRONG PERFORMANCE IN INFRASTRUCTURE, IT AND POWER BUSINESSES

                    Fourth quarter 2011 sales reached €6,354 million, up 14.2% on a current structure and exchange rate basis. Like-for-like sales were up 6.1%.


                    Organic growth by business in the fourth quarter

                     

                    € million

                     

                    Sales
                    Q4

                    2011

                    % change
                    Q4

                     (organic)

                    Sales
                    12-month

                    2011

                    % change
                    12-month
                    (organic)

                    Power

                    2,199

                    +6.0%

                    8,297

                    +7.6%

                    Infrastructure¹

                    1,694

                    +9.5%

                    4,897

                    +7.5%

                    Industry

                    1,087

                    +0.9%

                    4,404

                    +10.4%

                    IT

                    943

                    +9.2%

                    3,237

                    +10.3%

                    Buildings

                    431

                    +2.8%

                    1,552

                    +4.8%

                    Total

                    6,354

                    +6.1%

                    22,387

                    +8.3%

                    ¹ The ‘Energy’ business has been renamed ‘Infrastructure’ following the integration of Telvent



                    Power (34% of Group Q4 sales) like-for-like sales grew 6.0% over the same period in 2010. Product business continued to grow, though at a slower pace. Robust construction market and urbanisation in new economies, and improving business confidence in the US, offset the weak market conditions in debt-hit countries. Solutions growth accelerated in this quarter, helped by the investment in mining, oil and gas, energy efficiency in new economies and demand from the manufacturing and education/healthcare sectors in the US, making up for the negative trend of renewable energy. Asia-Pacific and Rest of the World delivered the highest growth, closely followed by North America. Western Europe, in decline, was impacted by tough market conditions in Spain and Italy.

                    Infrastructure¹ (27% of Group Q4 sales) reported the strongest quarter this year as sales grew 9.5% like-for-like, propelled by strong solutions growth in connection of renewables to the grid, infrastructure and oil and gas in Australia, China and Middle East and continued strength in service activities. The product business was stable as the improvement in primary and secondary distribution was offset by the continued weakness of the transformer activity. By region, Asia-Pacific and Rest of World reported double-digit growth, North America was very strong and Western Europe declined.

                    Following the integration of Telvent, the Energy business was renamed as “Infrastructure”. Telvent, consolidated since September 2011, contributed sales of €260 million in this quarter.

                    Industry (17% of Group Q4 sales) sales were up 0.9% on a comparable basis. Products business decelerated after a strong start in 2011 and growth was nearly flat in this quarter. The dynamic US manufacturing demand was balanced by the cautiousness of machine builders in Western Europe and China, the weak Japanese demand and slower CST activity. Solution continued to grow, on new customer conversions to SoMachine OEM solution, sustained investments in the mining sector, especially in new economies and robust service activities. By region, North America reported solid growth. Rest of the World and Asia-Pacific were about flat while Western Europe was in slight decline.

                    IT (15% of Group Q4 sales) reported another strong quarter, up 9.2% like-for-like. The solutions business continued to post double-digit growth on demand for new data center projects, strong service performance and rising software opportunities. Product business also grew, benefiting from resilient demand in Germany and the UK and good market dynamic in new economies. By region, North America and Rest of the World reported double-digit growth, followed by Asia-Pacific. Western Europe was stable.

                    Buildings (7% of Group Q4 sales) sales were 2.8% higher year-on-year on a comparable basis. As in previous quarters, the solution business continued to be the growth driver, lifted by robust global service activities for installed base and advanced energy management .The product business was flat, reflecting challenging conditions for new construction in mature markets, and softer video security product sales in this quarter. By region, Rest of the World and Asia-Pacific reported strong growth while Western Europe grew moderately and the underlying demand in North America remained soft.


                    Organic growth by geography

                     

                    € million

                     

                    Sales
                    Q4

                    2011

                    % change
                    Q4

                     (organic)

                    Sales
                    12-month

                    2011

                    % change
                    12-month
                    (organic)

                    Western Europe

                    1,962

                    -3%

                    7,184

                    +1%

                    Asia-Pacific

                    1,689

                    +14%

                    5,933

                    +15%

                    North America

                    1,465

                    +8%

                    5,208

                    +10%

                    Rest of the World

                    1,238

                    +10%

                    4,062

                    +11%

                    Total

                    6,354

                    +6.1%

                    22,387

                    +8.3%



                    Western Europe
                    (31% of Group Q4 sales) dropped by 3% year-on-year in the fourth quarter. The resilience observed in France, UK and Scandinavian countries was not enough to balance the negative impact of the economic crisis in Spain and Italy.

                    Asia Pacific (27% of Group Q4 sales), was up 14% like-for-like. The regional trend continued to be robust with China, India, Australia and South East Asia all progressing at double digit. However, Japan was in decline, impacted by weakening industrial demand and overall sluggish economy.

                    North America (23% of Group Q4 sales) posted another quarter of strong growth, up 8% year-on-year, supported by solid demand for datacenter solutions, oil and gas projects, resilient industrial markets and a strong boost from services.

                    Rest of the World (19% of Group Q4 sales) grew 10% year-on-year on a comparable basis. The momentum in Russia, Middle East and Latin America was robust thanks to continued investment in infrastructure and natural resource sectors. Central Europe and Africa declined, hit by the debt crisis in Europe and regional political instability respectively.

                    Sales in new economies were up 12% like-for-like representing 41% of total reported sales in the fourth quarter.

                    Consolidation and foreign exchange impacts

                    Scope impact contributed €436 million to Q4 sales or +7.8% of growth. This includes mainly Telvent (€260 million reported under Infrastructure business), Uniflair, Luminous and Lee Technologies (all in IT business), Leader & Harvest (in Industry business), Steck (in Power business) and several smaller entities including Summit Energy.

                    Impact of foreign exchange fluctuations turned slightly positive at €17 million, primarily due to the appreciation of a number of currencies against the Euro, particularly the US dollar, the Russian Ruble, the Swiss Franc and the Australian dollar.

                    € million

                    Full Year 2010

                    Reported

                     

                    Full Year 2010

                    Comparable¹  

                    Full Year 2011

                    Reported

                     

                    % change  vs.

                    Reported

                    EBITA before acquisition and

                    integration costs

                     

                    2,962

                     

                    2,971

                     

                    3,178

                     

                    +7%

                    % of sales 

                    15.1%

                    14.7%

                    14.2%

                     

                     

                     

                     

                     

                     

                    Acquisition and integration costs

                    (31)

                    (31)

                    (99)

                     

                     

                     

                     

                     

                     

                    EBITA

                    2,931

                    2,940

                    3,079

                    +5%

                     

                     

                     

                     

                     

                    Amortization & impairment of purchase accounting intangibles

                    (228)

                     

                    (226)

                     

                     

                     

                     

                     

                     

                    EBIT

                    2,703

                     

                    2,853

                    +6%

                     

                     

                     

                     

                     

                    Net income (Group share)

                    1,720

                     

                    1,820

                    +6%

                    Earnings per share (€)

                    3.30

                     

                    3.39

                    +3% 

                     

                     

                     

                     

                     

                    Free cash flow

                    1,734

                     

                    1,506

                    (13%)

                     

                     

                     

                     

                     


                    ¹Comparable: including 12 months of Areva Distribution in FY2010

                     

                    • RECORD EBITA AT €3.2 BILLION BEFORE ACQUISITIONS AND INTEGRATION COSTS

                    EBITA before acquisition and integration costs reached the €3 billion mark for the first time, at €3,178 million, an increase of 7% year-on-year, owing to strong topline growth, price increase step-up in the second half and significant operational efficiency. Notwithstanding these achievements, the corresponding margin stood at 14.2% of sales, or 0.5 point below 2010 on a comparable basis (including 12 months of Areva Distribution) as a result of the unprecedented inflationary headwinds and higher level of investment for future growth.

                    - Volume growth generated a strong positive effect of €546 million, partially offset by an unfavorable business mix effect of €150 million

                    - Price increases ramped up to €241 million in the year. This offset more than half of the -€437 million of raw material inflation. In the second half, pricing effects were, as expected, significantly higher, adding €195 million, covering already 90% of the raw material headwind.

                    - Industrial productivity continued to be very strong, adding €376 million to profitability, primarily due to purchasing savings and procurement concentration, as well as lean manufacturing, continued rebalancing to new economies and fixed costs absorption.

                    - Research and development, selling and administrative costs increased ~5.5% organically, or €264 million, to be compared with organic sales growth of 8.3%. This illustrated the Group’s ability to drive solid operating leverage without compromising on investment for future growth (broader geographical coverage in new economies, faster deployment of energy management solutions, more services) and in technological edge. As a result, support functions costs to sales ratio reached an all time low of 23.2%.

                    EBITA also includes a contribution from acquisitions of €98 million (excluding impact of Areva Distribution) and a negative currency impact of €72 million notably due to the appreciation of the Euro against the dollar and most new economies currencies. Net currency impact was lower at -€32 million after accounting for the positive €40 million included under raw material inflation impact.

                    As expected, restructuring costs increased, reaching €145 million (compared to €101 million in 2010 on comparable basis).

                    Reported EBITA reached €3,079 millions, after accounting for €99 million of acquisition and integration costs.

                    The following EBITA profitability information by business is before acquisition and integration costs, in consistence with the company guidance in second-half 2011. For the Infrastructure business, the variation over 2010 is provided on a comparable basis (including 12 months of Areva Distribution).

                    Power profitability increased 3% year-on-year to €1,716 million, or 20.7% of sales, down 0.7 point due to the time lag between raw material inflation hit and price increases. Including 4 months of Telvent, Infrastructure profitability reached €515 million with margin stable at 10.5% of sales, as significant synergies from the integration of Areva Distribution balanced inflation headwinds and a weak transformer business. Industry profitability remained very strong at €766 million or 17.4% of sales, down only 0.2 point thanks to strong volumes and prices to offset cost inflation. IT business profitability increased 12% to €507 million, at 15.7% of sales, down 0.8 point year-on-year due to significantly higher solution mix. Profitability of Buildings was down 1.2 points at 8.6% of sales, or € 134 million, reflecting in particular the investment for footprint expansion in new economies.

                    Total corporate costs in 2011 amounted to €460 million or 2.1% of sales (excluding acquisition and integration costs), slightly below last year’s level.

                    • NET INCOME UP 6%, EARNINGS PER SHARE OF €3.39, UP 3%

                    The net income reached €1,820 million, up 6% year-on-year.

                    It includes the amortization and depreciation of intangibles of €226 million.

                    Financial expenses amounted to €415 million, including the interest component of defined benefit plan costs (for €45 million) and a negative currency impact of €40 million (compared with a positive impact of €25 million in 2010). Interest expenses on financial debt increased slightly to €301 million, reflecting the increase in the net debt and a more efficient total cost of financing.

                    Income tax amounted to €562 million corresponding to an effective tax rate of 23.1%, down from 24.0% in 2010.

                    • ALL TIME HIGH CASH GENERATION IN THE SECOND HALF, SIGNIFICANT REDUCTION OF INVENTORIES

                    Operating cash flow was up 2% year-on-year and reached €2,579 million.

                    Free cash flow in the second half was at an all time high, reaching €1,665 million, achieved by a strict working capital control, in particular a full re-absorption of the €300 million excess safety stock built up in the first half. Full year free cash flow ended up at €1,506 million. Trade working capital increase was contained at €359 million, while non-trade working capital decreased by €32 million. 

                    The free cash flow included capital expenditures of €746 million in 2011 (an increase of €218 million compared to the 2010 level), or 3.3% of sales, returning to a more normal level following two years of more subdued investment. This is consistent with the group’s ambition to invest for future growth.

                    • SOLID BALANCE SHEET AND LOW NET DEBT TO EBITDA RATIO

                    Schneider Electric’s net debt amounted to €5,266 million (€2,736 million in December 2010). The increase was primarily the result of €856 million of dividend payment and €2,873 million of acquisitions, including Telvent, Leader and Harvest, Luminous, Summit Energy, Steck and 9.2% of NVC-Lighting. The net debt-to-equity ratio stayed low at 33% as of December 31, 2011 and the Group’s net debt to adjusted EBITDA¹ ratio was solid at 1.4x.


                    III. PROPOSED DIVIDEND OF 1.70 EUROS

                    At the Annual Meeting on May 3, 2012, shareholders will be asked to approve a dividend of €1.70 per share, to be paid on May 16, 2012. The proposed dividend will be paid fully in cash.

                    The dividend corresponds to a payout of 50% of the 2011 net profit, in line with the Group’s policy which started with the new² company program in 2005.


                    IV. FUTURE MARKET GUIDANCE TO BE BASED ON ADJUSTED EBITA

                    The company’s future market guidance will be based on adjusted EBITA. It corresponds to EBITA before restructuring costs and other operating income & expenses (one-time items such as capital gains/losses, pension gains/losses, acquisition costs, impairment). The definition, reconciliation to EBITA and historical performance (including business level data) are provided in appendix of this release.

                    Adjusted EBITA provides better visibility and predictability of the underlying performance of the Group and has lower volatility than EBITA which includes a number of non-recurring items and restructuring charges that have become more volatile since 2009.


                    V. 2012 OUTLOOK

                    For 2012, the uncertainty surrounding the global economy limits visibility. While the Group sees continued strength in new economies and opportunities from a recovering North America, Western Europe is expected to weigh on growth.

                    In this context and assuming no major change in economic conditions, the Group expects flat to slightly positive organic growth for sales and an adjusted EBITA margin between 14% and 15%.


                    ¹Ajusted EBITDA: Adjusted EBITA (see appendix) before depreciation and amortisation

                    *******************

                    The financial statements of the period ending December 31, 2011 were established by Management Board on February 17, 2012, reviewed by the Supervisory Board of Schneider Electric and certified by the Group auditors on February 21, 2012.

                    The annual 2011 consolidated financial statements and the full year result presentation are available at www.schneider-electric.com

                    First-quarter 2012 sales will be released on April 20, 2012.


                    About Schneider Electric
                    As a global specialist in energy management with operations in more than 100 countries, Schneider Electric offers integrated solutions across multiple market segments, including leadership positions in energy and infrastructure, industrial processes, building automation, and data centres/networks, as well as a broad presence in residential applications. Focused on making energy safe, reliable, and efficient, the company's 130,000 plus employees achieved sales of 22.4 billion euros in 2011, through an active commitment to help individuals and organizations “Make the most of their energy.”
                    www.schneider-electric.com


                    Appendix – Sales breakdown by business

                    Fourth-quarter 2011 sales by business were as follows:

                     

                     € million

                     

                    Sales

                    Q4

                    2011

                    % change
                    Q4
                    (organic)

                    Changes in scope of consolidation

                    Currency effect

                    % change
                    Q4
                    (current)

                    Power

                    2,199

                    +6.0%

                    +0.8%

                    +0.5%

                    +7.3%

                    Infrastructure¹

                    1,694

                    +9.5%

                    +20.0%

                     -0.7%

                    +28.8%

                    Industry

                    1,087

                    +0.9%

                    +2.3%

                    +0.5%

                    +3.7%

                    IT

                    943

                    +9.2%

                    +13.1%

                    +0.7%

                    +23.0%

                    Buildings

                    431

                    +2.8%

                    +8.4%

                    +0.8%

                    +12.0%

                    Total

                    6,354

                    +6.1%

                    +7.8%

                    +0.3%

                    +14.2%

                    ¹The ‘Energy’ business has been renamed ‘Infrastructure’ following the integration of Telvent

                     


                    Twelve-month 2011 sales by business were as follows:

                     

                     € million

                     

                    Sales

                    12-month

                    2011

                    % change
                    12-month

                     (organic)

                    Changes in scope of consolidation

                    Currency effect

                    % change
                    12-month

                     (current)

                    Power

                    8,297

                    +7.6%

                    +0.3%

                     -0.9%

                    +7.0%

                    Infrastructure

                    4,897

                    +7.5%

                    +26.6%

                     -1.5%

                    +32.6%

                    Industry

                    4,404

                    +10.4%

                    +1.2%

                     -1.1%

                    +10.5%

                    IT

                    3,237

                    +10.3%

                    +9.3%

                     -1.7%

                    +17.9%

                    Buildings

                    1,552

                    +4.8%

                    +7.7%

                     -1.8%

                    +10.7%

                    Total

                    22,387

                    +8.3%

                    +7.3%

                     -1.3%

                    +14.3%



                    Appendix – Breakdown by geography

                    Fourth-quarter 2011 sales by geographical region were as follows:

                     

                    € million

                     

                    Sales

                    Q4

                    2011

                    % change
                    Q4
                    (organic)

                    % change
                    Q4
                    (current)

                    Western Europe

                    1,962

                     -3%

                    +4%

                    Asia-Pacific

                    1,689

                    +14%

                    +23%

                    North America

                    1,465

                    +8%

                    +20%

                    Rest of the World

                    1,238

                    +10%

                    +15%

                    Total

                    6,354

                    +6.1%

                    +14.2%

                    Twelve-month 2011 sales by geographical region were as follows:

                     

                    € million

                     

                    Sales

                    12-month

                    2011

                    % change
                    12-month

                     (organic)

                    % change
                    12-month

                     (current)

                    Western Europe

                    7,184

                    +1%

                    +9%

                    Asia-Pacific

                    5,933

                    +15%

                    +24%

                    North America

                    5,208

                    +10%

                    +11%

                    Rest of the World

                    4,062

                    +11%

                    +16%

                    Total

                    22,387

                    +8.3%

                    +14.3%



                    Appendix – Consolidation impact on sales and EBITA

                    In number of months

                     

                    2011

                    Q1

                     

                    Q2

                     

                    Q3

                     

                    Q4

                    2012

                    Q1

                     

                    Q2

                     

                    Q3

                     

                    Q4

                     

                     

                     

                     

                     

                     

                     

                     

                     

                    Areva Distribution 

                    Energy business
                    2010 sales €1.9 billion

                    3m

                    3m

                    -1m

                     

                     

                     

                     

                     

                    Uniflair 

                    IT business

                    2010e sales €80 million

                    3m

                    3m

                    3m

                    3m

                     

                     

                     

                     

                    Vizelia- D5X 

                    Buildings business
                    2010e sales €8 million

                    3m

                    3m

                    3m

                    3m

                     

                     

                     

                     

                    Lee Technologies 

                    IT business
                    2010 sales $140 million

                     

                    3m

                    3m

                    3m

                    3m

                     

                     

                     

                    Summit Energy 

                    Buildings business
                    2011e sales $65 million

                     

                    3m

                    3m

                    3m

                    3m

                     

                     

                     

                    Digilink

                    Power business
                    2010 sales c. €25 million

                     

                     

                    4m

                    3m

                    3m

                    3m

                    -1m

                     

                    APW President 

                    IT business
                    FY 31/10/10 sales €18 million

                     

                     

                    4m

                    3m

                    3m

                    3m

                    -1m

                     

                    Luminous

                    IT business
                    FY 31/3/11 sales c€170 million

                     

                     

                    4m

                    3m

                    3m

                    3m

                    -1m

                     

                    Steck Group

                    Power business

                    2011e sales €80 million

                     

                     

                    2m

                    3m

                    3m

                    3m

                    1m

                     

                    Telvent

                    Energy business

                    2010 sales €753 million

                    1m

                    3m

                    3m

                    3m

                    2m

                    Leader & Harvest

                    Industry business
                    2011e sales $150 million

                     

                     

                     

                    3m

                    3m

                    3m

                    3m

                     

                    9.2% of NVC Lighting

                     

                     

                     

                    EM

                    EM

                    EM

                    EM

                    EM

                    EM

                    EM: Accounted for with the equity method (in profit/loss of associates)


                    Appendix - Results breakdown by division

                     

                    2010

                    reported

                    2010

                    Comparable*

                    2011

                    Sales

                    19,580

                    20,228

                    22,387

                    Power

                    7,755

                    7,755

                    8,297

                    Infrastructure

                    3,693

                    4,341

                    4,897

                    Industry

                    3,984

                    3,984

                    4,404

                    IT

                    2,746

                    2,746

                    3,237

                    Buildings

                    1,402

                    1,402

                    1,552

                    Corporate

                    -

                    -

                    -

                    EBITA before acquisition and integration charges

                    2,962

                    2,971

                    3,178

                    Power

                    1,660

                    1,660

                    1,716

                    Infrastructure

                    447

                    456

                    515

                    Industry

                    701

                    701

                    766

                    IT

                    453

                    453

                    507

                    Buildings

                    138

                    138

                    134

                    Corporate

                    (437)

                    (437)

                    (460)

                    Margin in % of sales

                    15.1%

                    14.7%

                    14.2%

                    Power

                    21.4%

                    21.4%

                    20.7%

                    Infrastructure

                    12.1%

                    10.5%

                    10.5%

                    Industry

                    17.6%

                    17.6%

                    17.4%

                    IT

                    16.5%

                    16.5%

                    15.7%

                    Buildings

                    9.8%

                    9.8%

                    8.6%

                    Corporate

                    -

                    -

                    -

                    Acquisition and integration charges

                    (31)

                    (31)

                    (99)

                    Power

                    0

                    0

                    (2)

                    Infrastructure

                    0

                    0

                    (50)

                    Industry

                    (3)

                    (3)

                    (5)

                    IT

                    0

                    0

                    (10)

                    Buildings

                    (3)

                    (3)

                    (8)

                    Corporate

                    (25)

                    (25)

                    (24)

                    * As if Areva Distribution had been consolidated since Jan 1, 2010

                     
                    Appendix – Adjusted EBITA definition and reconciliation

                    Adjusted EBITA is defined as EBITA + restructuring charges +/- other operating income and expenses. These items are restated to better reflect the underlying company performance


                    Reconciliation of the Adjusted EBITA to the reported EBITA 2007- 2011:

                    In € million

                    2007

                    2008

                    2009

                    2010

                    2010 comparable*

                    H1 2011

                    2011

                    Adjusted EBITA

                    2,704

                    2,910

                    2,048

                    3,019

                    3,033

                    1,434

                    3,232

                    - Other operating income and expenses

                    (142)

                    (137)

                    62

                    8

                    8

                    (19)

                    (8)

                    - Restructuring

                    **

                    **

                    (313)

                    (96)

                    (101)

                    (43)

                    (145)

                    EBITA

                    2,562

                    2,773

                    1,797

                    2,931

                    2,940

                    1,372

                    3,079



                    Analysis of “Other operating income and expenses” and restructuring charges since 2007:

                    In € million

                    2007

                    2008

                    2009

                    2010

                    2010 comparable*

                    H1 2011

                    2011

                    Other operating income and expenses

                    (142)

                    (137)

                    62

                    8

                    8

                    (19)

                    (8)

                    Restructuring

                    (98)

                    (164)

                    **

                    **

                    **

                    **

                    **

                    Impairment losses on property,

                    plant and equipment and intangible assets

                    (40)

                    (9)

                    (12)

                    (34)

                    (34)

                    0

                    0

                    Gains/losses on asset disposals

                    32

                    10

                    (6)

                    20

                    20

                    3

                    (1)

                    Acquisition costs

                    ***

                    ***

                    (26)

                    (31)

                    (31)

                    (41)

                    (99)

                    Pension plan curtailment

                    0

                    0

                    92

                    8

                    8

                    0

                    42

                    Other

                    (36)

                    26

                    14

                    45

                    45

                    19

                    50

                    Restructuring

                    (**)

                    (**)

                    (313)

                    (96)

                    (101)

                    (43)

                    (145)

                    * As if Areva Distribution had been consolidated since Jan 1, 2010
                    ** Restructuring charges were reported under “Other operating income and expenses” from 2005 to 2008 and then separately from 2009 onwards
                    *** Before the application of the IFRS 3 R standard (since 2010 and on 2009 restated accounts), acquisition costs were capitalised

                     
                    Appendix – History of adjusted EBITA by division

                     

                    2010

                    reported

                    2010

                    Comparable*

                    2011

                    H1 2010

                    Comparable*

                    H1 2011

                    Sales

                    19,580

                    20,228

                    22,387

                    9,389

                    10,336

                    Power

                    7,755

                    7,755

                    8,297

                    3,654

                    3,936

                    Infrastructure

                    3,693

                    4,341

                    4,897

                    1,944

                    2,029

                    Industry

                    3,984

                    3,984

                    4,404

                    1,882

                    2,227

                    IT

                    2,746

                    2,746

                    3,237

                    1,255

                    1,412

                    Buildings

                    1,402

                    1,402

                    1,552

                    654

                    732

                    Corporate

                    -

                    -

                    -

                    -

                    -

                    Adjusted EBITA

                    3,019

                    3,033

                    3,232

                    1,325

                    1,434

                    Power

                    1,673

                    1,673

                    1,740

                    782

                    835

                    Infrastructure

                    431

                    445

                    511

                    170

                    166

                    Industry

                    744

                    744

                    781

                    353

                    438

                    IT

                    456

                    456

                    523

                    179

                    194

                    Buildings

                    148

                    148

                    145

                    64

                    59

                    Corporate

                    (433)

                    (433)

                    (468)

                    (223)

                    (258)

                    - Other operating income and expenses

                    8

                    8

                    (8)

                    (22)

                    (19)

                    Power

                    24

                    24

                    49

                    14

                    15

                    Infrastructure

                    21

                    21

                    (27)

                    0

                    (12)

                    Industry

                    (5)

                    (5)

                    4

                    (7)

                    (4)

                    IT

                    2

                    2

                    (17)

                    3

                    (8)

                    Buildings

                    (4)

                    (4)

                    (8)

                    (2)

                    (3)

                    Corporate

                    (30)

                    (30)

                    (9)

                    (30)

                    (7)

                    - Restructuring

                    (96)

                    (101)

                    (145)

                    (69)

                    (43)

                    Power

                    (37)

                    (37)

                    (75)

                    (27)

                    (29)

                    Infrastructure

                    (5)

                    (10)

                    (19)

                    (11)

                    (3)

                    Industry

                    (41)

                    (41)

                    (24)

                    (24)

                    (3)

                    IT

                    (5)

                    (5)

                    (9)

                    (1)

                    (1)

                    Buildings

                    (9)

                    (9)

                    (11)

                    (5)

                    (5)

                    Corporate

                    1

                    1

                    (7)

                    (1)

                    (2)

                    EBITA

                    2,931

                    2,940

                    3,079

                    1,234

                    1,372

                    Power

                    1,660

                    1,660

                    1,714

                    769

                    821

                    Infrastructure

                    447

                    456

                    465

                    159

                    151

                    Industry

                    698

                    698

                    761

                    322

                    431

                    IT

                    453

                    453

                    497

                    181

                    185

                    Buildings

                    135

                    135

                    126

                    57

                    51

                    Corporate

                    (462)

                    (462)

                    (484)

                    (254)

                    (267)

                    * As if Areva Distribution had been consolidated since Jan 1, 2010

                     

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                    Carina Ho
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