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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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