Schneider Electric SE — M&A Activity 2019

Mar 25, 2019

Financial information

Schneider Electric in exclusive negotiations on the sale of Pelco

Rueil-Malmaison (France), March 25, 2019: Schneider Electric has entered exclusive negotiations with Transom Capital Group, a U.S.-based private equity firm, regarding the sale of its Pelco business unit.

Pelco is a global specialist in the design, development, and delivery of trusted end-to-end video surveillance solutions and services including cameras, recording and management systems software. It generated revenues of €169m in 2018 and employs 478 people. It is currently reported under the Energy Management business of Schneider Electric. The proposed transaction follows the strategic review announced in Schneider Electric's 2018 results on assets totalling €1.5-2 billion of revenues, as the Group continues to focus its activities on core energy management and industrial automation offerings.

The proposed transaction is subject to the consultation of the relevant work councils and would be finalized upon the successful completion of this process. Based on current terms, it would trigger a noncash loss on disposal of up to €250m, the net impact of which would be excluded from the net income used for dividend calculation. The transaction would be accretive by c.+10bps to the Group adjusted EBITA margin on a full year basis.

About Schneider Electric

Schneider Electric is leading the Digital Transformation of Energy Management and Automation in Homes, Buildings, Data Centers, Infrastructure and Industries. With global presence in over 100 countries, Schneider is the undisputable leader in Power Management – Medium Voltage, Low Voltage and Secure Power, and in Automation Systems. We provide integrated efficiency solutions, combining energy, automation and software. In our global Ecosystem, we collaborate with the largest Partner, Integrator and Developer Community on our Open Platform to deliver real-time control and operational efficiency. We believe that great people and partners make Schneider a great company and that our commitment to Innovation, Diversity and Sustainability ensures that Life Is On everywhere, for everyone and at every moment.www.schneider-electric.com

Investor Relations Schneider Electric Amit Bhalla Tel: +44 20 7592 8216 www.schneider-electric.com ISIN : FR0000121972

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