Schneider Electric Infrastructure (SCHNEIDER) CMD 2024 Day 1 summary

Strategic vision and market outlook

• Reaffirmed commitment to energy efficiency, digitalization, and sustainability, aiming to be a trusted partner for digital and green transformation globally and in India.

• Addressing megatrends such as climate change, energy transition, digitalization, and AI, with a targeted addressable market growth from €400bn in 2023 to over €500bn by 2027 and a 6%-7% market growth outlook by 2027.

• Targets 7%-10% organic revenue CAGR through 2027, with robust margin development and a 50bps annual expansion in adjusted EBITA margin.

• Capital allocation prioritizes investment grade ratings, progressive dividends, organic growth, and disciplined/agile M&A in growth markets.

• Transformation into an "Industrial Tech" leader, leveraging digital and sustainable solutions.

Technology, innovation, and digital strategy

• Expanding the Digital Flywheel, targeting 60%-65% of business/group revenues from digital, software, and field services by 2027.

• All new products to be connectable, with standardized gateways, embedded serviceability, and circularity.

• R&D intensity increased to 5.9% of sales in H1 2024, globally aligned but locally empowered, with agile execution and cost discipline.

• Launching innovative offers embedding AI, with 50% of 2024 launches featuring AI capabilities.

• Software business unified under CONNECT platform, enabling lifecycle solutions and third-party integration.

Customer-centric execution and recurring revenues

• Maintains a balanced go-to-market approach: 50% revenue via partners, 50% direct to end-users, with a unique ecosystem of 6,000+ distributors and 120,000 POS.

• Data center solutions enhanced by Motivair acquisition and partnerships (e.g., NVIDIA) to address AI-driven power and cooling needs.

• Recurring revenue in agnostic software to reach ~80% by 2027, up from 70% in FY23.

• EcoCare and digital services create recurring revenues and customer intimacy, with contracts attached at point of sale.

• Building a network of over 1 million electricians to support customer reach.