(AOF) – Schneider Electric announced the success of its issue of bonds with the option of conversion and/or exchange for new and/or existing shares (Oceanes) maturing in 2030 for a nominal amount of 650 million euros. The net proceeds from the issue will be used for the general purposes of the company. The conversion-exchange premium is 42.5% compared to the reference price of the Schneider Electric share on the regulated Euronext market in Paris.
The bonds have a unit nominal value of 100,000 euros, are convertible and/or exchangeable into new and/or existing shares of Schneider Electric and bear interest at a fixed annual rate of 1.97% payable semi-annually in arrears on May 27 and on November 27 of each year (or the following business day if this date is not a business day), and for the first time on May 27, 2024.
Unless previously converted, exchanged, redeemed, or repurchased and canceled, the bonds will be redeemed at par on November 27, 2030.
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Key points
– World leader in equipment for the digital transformation of energy management and the empowerment of buildings, infrastructure and industry;
– Turnover of €34 billion, generated by products (58% of sales), systems (24%) and software & services (18%);
– Balance of income between North America for 32%, Asia-Pacific for 3O%, ahead of Western Europe for 25% and the rest of the world for 13%;
– Business model responding to the needs of 4 markets – construction, data centers, infrastructure and industries – through digital service offerings combining energy, automation, and securing the eco-system through the cloud, and through complete management life cycles and the migration from site-by-site management to an integrated enterprise;
– Split capital (2.53% and 4.77% of voting rights for the Caisse des Dépôts), Jean-Pascal Tricoire being Chairman and CEO of the 15-member board of directors before handing over general management in May 2023 to Peter Herweck;
– Financial situation strengthened by the completion of the disposal program, with a net debt of €11.2 billion (including €4.6 billion intended for the repurchase of minority shares in AVEVA) and free self-financing of €3.3 billion
Challenges
– “Life is on” strategy:
– production in 4 hubs – Europe, United States, China and India,
– strengthening of digitalization, from design to maintenance and progression of digital offers (53% in 2022, 60% targeted in 2025),
– increase in recurring sales,
– 2022-2024 objectives: annual increase in turnover between 5 and 8%, free self-financing of €4 billion and annual improvement of 30 to 70 basis points in operating margin;
– Innovation strategy based on the Design Thinking & Lean Start Up methodology and supported by R&D efforts at 5.3% of revenues and a portfolio of 19,000 patents
– “Digital Transformation @Scale”, unifying the software portfolio, for a unique user experience and data federation, through the use of artificial intelligence,
– EcoStruxure platform for connected products,
– strategic partnerships, with Planon (data management and building analysis), Carlyle (AlphaStruxure joint venture for intelligent infrastructures),
– support for start-ups (200) with the SE Ventures fund and incubators,
– Impact 2021-2025 environmental strategy validated by the SBTi and aiming for zero net CO2 emissions in 2030:
– climate: 8/10
th
of turnover from income with a positive impact on the environment, support for customers to avoid 800 Mt of CO2 emissions and 1,000 suppliers to reduce their CO2 emissions by ½,
– resources: 50% materials 1
eras
sustainable and 100% recycled packaging;
– Ambitions in recurring services of growth double that of the group.
Challenges
– Shortages of electronic components for industrial automation compensated by the multiplication of strategic supply stock centers;
– Inflation of inputs and transport: increase in sales prices and industrial productivity;
– Integration of AVEVA leading to the creation of a single data hub bringing together the industrial and energy twins of client companies;
– After an 18% jump in revenues, 2023 target: sales up 9 to 11%, free self-financing of +€3 billion and operating margin of 17.4% to 17.7%;
– 2022 dividend of €3.15, up 9% and continuation of the share buyback program of 1.5 to 2 billion initiated in 2019.
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Rail investment plan
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