Strong performance in FY18: Group revenue of €25.7bn, growth of +7% organic and Adj. EBITA up +10% organic. Record Net Income & EPS
- FY18 Adj. EBITA €3.9bn, Margin of 15.1%, up +50 bps org.
- Record Net Income to date of €2.3bn, up +9%
- Proposed dividend at €2.35/share, up +7%
- New share buyback of €1.5bn to €2.0bn launched
- Portfolio optimization: up to €2.0bn in revenues earmarked for review
- 2019 Target: Adj. EBITA org. growth between +4% and +7% driven by +3% to +5% org. revenue growth and +20 to +50 bps org. adj. EBITA margin improvement
- 3-year margin ambition announced
Jean-Pascal Tricoire, Chairman and CEO, commented:
“2018 is another year of acceleration of our strategy execution. We provide our customers with complete solutions, cross-selling multiple technologies, more products provided through an enlarged network of partners, more services, more software, and a more targeted development of systems, which creates a solid base for growth in 2019. I am also pleased by the continued progress of our Medium Voltage business, which now sells mostly together with Low Voltage.
After years of integration, we finalized the consolidation towards our two core businesses, Energy Management – regrouping Medium Voltage, Low Voltage and Secure Power – and Industrial Automation, that our country organizations combine for our customers into full digital solutions of efficiency and sustainability.
We continue delivering every year on the profitability objectives shared in 2016. In 2018, we improve the margin of both our businesses, and deliver a new high in terms of Net Income and EPS, while building our long-term capabilities and increasing investments in R&D, Services, and Digital Capabilities. Our ambition is to keep stepping up our profitability based on productivity and cost efficiency, portfolio optimization, and focus on the most relevant value propositions.
We remain focused on optimizing the portfolio. In 2018 we strengthen our portfolio with AVEVA and IGE+XAO in software, and ASCO Power. We are also increasing the level of assets under review from €0.5bn, to c. €1.5 to €2.0bn in revenue terms, which we expect to conclude in the next three years.
Additionally, we continue to focus on generating attractive returns to our shareholders, having increased our proposed dividend by +7% and initiating a new €1.5 to €2.0bn share buyback program”.
The webcast of the management presentation is available through this link.