Schneider Electric (OTCPK:SBGS.F) 2025 Capital Markets Day Transcript

Summary of Schneider Electric's 2025 Capital Markets Day Company Overview - Company: Schneider Electric (OTCPK:SBGS.F) - Event: 2025 Capital Markets Day - Date: December 11, 2025 - Location: McLaren Technology Center Core Industry Insights - Focus on Electrification and Digitalization: Schneider Electric emphasizes that the next century will revolve around electrification and digitalization, aiming to make energy more efficient and sustainable [5][28] - Market Trends: Three mega trends identified: 1. Acceleration of the new energy landscape 2. Growth in digital technologies 3. Transition to a multipolar world [27] Financial Performance - Consistent Growth: Schneider Electric has shown strong and consistent financial results, even during the COVID period, with a focus on delivering strong cash returns and a progressive dividend policy [8] - Digital Portfolio: 60% of Schneider's portfolio is already digital, with plans to enhance this further [9] Strategic Initiatives - EcoStruxure Technology Stack: The company has developed a unique technology stack called EcoStruxure, which integrates energy management and industrial automation [5][15] - Acquisitions: Strategic acquisitions, including AVEVA and Motivair, have been made to enhance software capabilities and technology solutions [9] - Multi-Hub Strategy: Schneider Electric is focusing on a multi-hub strategy to enhance regional presence and agility, with significant investments in local R&D and supply chains [59][60] Differentiating Factors - Balanced Exposure: Schneider Electric maintains a balanced geographical and market exposure to enhance resilience [11][12] - Diverse Portfolio: The company has a differentiated portfolio with strong positions in low and medium voltage products, automation solutions, and digital services [13][14] - Employee Engagement: 63% of eligible employees invested in Schneider through the shareholding plan, indicating strong employee engagement [22][23] Sustainability Commitment - Environmental Impact: Schneider Electric has helped avoid over 790 million tons of CO2 emissions and is committed to integrating sustainability into its business strategy [25][26] - Recognition: The company has been recognized as one of the most sustainable companies globally by Corporate Knights and TIME [26] Future Outlook - Investment in R&D: Plans to increase R&D investment to 7% of revenue, focusing on automation and digital solutions [55] - Revenue Goals: By 2030, over 70% of revenue is expected to come from the digital flywheel, with 25% from software and services [56] - Lifecycle Solutions: Schneider Electric aims to provide solutions across the entire lifecycle of products, from design to maintenance, enhancing customer value [54] Key Partnerships - Collaboration with NVIDIA: Schneider Electric is partnering with NVIDIA to develop AI factories and optimize data center infrastructure, showcasing a commitment to innovation in energy and industrial intelligence [52][53] Conclusion - Schneider Electric is positioned to lead in the energy technology sector by leveraging its strong portfolio, commitment to sustainability, and strategic initiatives aimed at enhancing customer value and operational excellence. The focus on electrification, digitalization, and AI integration will drive future growth and innovation.