Schneider Electric Danmark A/S

Ledelsesberetning

Financial highlights DKK'000 2023 2022 2021 2020 2019* Key figures Revenue 2,283,330 2,733,749 2,594,163 2,224,488 2,082,319 Operating profit 237,650 460,014 467,678 341,420 289,616 Net financials 216,423 789,128 68,031 61,813 -748 Profit/loss for the year 396,163 1,144,901 404,101 319,597 225,165 Total assets 3,981,489 4,676,912 3,924,229 4,104,850 895,632 Investment in property, plant and equipment -21,818 -5,463 -18,377 -12,625 -20,335 Equity 3,295,415 4,044,076 3,303,277 3,218,773 337,165 Ratios Operating margin 10.4% 16.8% 18.0% 15.3% 13.9% Return on assets 5.7% 10.9% 15.8% 17.5% 32.5% Solvency ratio 82.8% 86.5% 84.2% 78.4% 39.5% Return on equity 11.2% 32.5% 17.7% 24.4% 62.8% Average number of full-time employees 660 665 647 653 689 * Effective from 1 January 2020, Schneider Electric Danmark A/S and Schneider Nordic Baltic A/S have been merged, with Schneider Electric Danmark A/S as the succeeding company. The merger has been completed by applying the net book value method. Comparative figures for the years 2017  2019 have not been restated. Financial ratios are calculated in accordance with the Danish Society of Financial Analysts' guidelines on the calculation of financial ratios. The financial ratios have been calculated as follows: Operating profit x 100 Operating margin Revenue Profit/loss for the year after tax x 100 Return on equity Average equity Equity at year end x 100 Solvency ratio Total liabilities Profit/loss from operating activities Return on assets Average assets x 100 Operating review Principal activities Our purpose is to empower all to make the most of our energy and resources, bridging progress and sustainability for all. At Schneider, we call this Life Is On. We embrace a customer-first, dare to disrupt, learn every day, and act like owner´s culture. We drive digital transformation by integrating world-leading process and energy technologies to realize the full efficiency and sustainability opportunities for businesses. Our integrated solutions are built with safety, reliability and cybersecurity for your homes, buildings data centers, infrastructure and industries. We privilege people, partners and open partnerships in everything we do. Our mission is to be the digital partner for Sustainability and Efficiency. We create impact through innovation and our people. We are the most local of the global companies, serving our customers with the largest portfolio of connected products, software and services of our industry, bringing expertise to our segments, customers and partners. Schneider Electric Danmark A/S is located in Ballerup in the GreenHouse, a showcase for our latest technologies and solutions notably in terms of energy efficiency and cost reduction. The company has approximately 660 employees and is among others responsible for the Lauritz Knudsen brand, which is the oldest supplier of electrical materials for the Danish market. The manufacturing of Lauritz Knudsen products is primarily taking place in Schneider products to other European and Asian markets. Schneider Electric Danmark A/S is owned by Schneider Electric Industries SAS (France), which is the ultimate parent company in the Group.  Development in activities and financial position       -450.4, with decline both in Energy Management and Industrial Automation divisions, following record high sales in 2022. The decline is mainly explained by the global divestment of two oil transformer factories in Poland and Turkey impacting Schneider Electric Danmark A/S FY revenue around MDKK -300. Apart from the oil transformer divestment, Energy Management division was impacted by interim decline in our traditional product offer portfolio (electric outlets, wiring devices), not fully offset by strong growth in our system and service businesses, driven by investments in green transition and new energy landscape. For Industrial Automation, 2023 decline follows general market trend for non-pharmaceutical industrial production, which has been declining since mid-2022. In addition, Schneider Electric Denmark A/S divested telemecanique sensor business, part of our non-core offers, with around 14 MDKK annual turnover. The reduced volume in combination with slight negative margin mix led to decreased gross profit by MDKK 204.7. The  Profit/loss for the year compared to previous stated expectations The company outlook in 2023 was a decline in revenue between -8% and -12% driven by the global divestment of the two oil transformer factories. The final result of 2023 is a revenue decline of -16%, explained by abovementioned slowdown in Energy Management and Industrial Automation businesses. As a result, the operating profit of 10,4% for 2023 was below the expected level between 14-17%. Intellectual capital Schneider right to have access to energy. At the same time, we need to increase the energy efficiency since the use of energy is increasing. In Denmark, this implies that we continue to play a central role in the Danish electrical industry and that we are contributing to the development of the industry and the market in general. We are focusing on a high degree of delivery reliability, high quality products and product functionality and to give our customers an extraordinary experience in their interface with us. The Company also strives to be a great place to work for skilled and committed employees. We strongly believe that you bring the best performance to the company by bringing the best develop our employees. To achieve these objectives, the Company highly emphasizes building the right competences within the selected business areas, partly through own staff and partly through a comprehensive educational program with business partners in the industry. Outlook Our expectation for 2024 is recovery of product business as well as continuous ongoing growth of systems, service, and software businesses, leading to 8-12% sales increase vs 2023 (around MDKK 200). The overall objective remains organically to grow more than the market  this through targeted segments such as Data Centers, Renewables, Healthcare and Life Science. Operating profit is expected between 14% and 17% Post balance sheet events No specific other events have occurred after the financial year-end, which could significantly 