They have reached their full-year targets despite a difficult environment in 2014. Their revenues grew 7 per cent, mainly thanks to the consolidation of Invensys, and were up 1.4 per cent organically. Short-cycle businesses and services were the key growth drivers. Adjusted EBITA margin improved by 0.4 point at constant scope and FX, particularly thanks to a sustained high level of industrial productivity.

They did a major acquisition in 2014, Invensys, which reinforced their industrial automation and software capabilities and strengthened their positions in key electro-intensive segments. The integration of Invensys is well on track and creates significant opportunities for synergies with their Industry and Infrastructure businesses. They could consider bolt-on and value-creating acquisitions in their core businesses, in areas of growth. They are also contemplating the potential disposal of non-core businesses, as they have done in the past with CST and the Appliance division of Invensys.

They continue to target a solid balance sheet in the long term, corresponding to an A- rating, with the flexibility to move to BBB+ on a temporary basis. They also intend to benefit from the historically low financing conditions to increase their debt maturity and lower their average cost of debt. Moreover, theycommit to buy back shares for a total amount ranging from €1.0 to 1.5 billion in the next two years. They intend to give greater visibility to their shareholders by introducing a progressive dividend policy, with no year on year decline.

They target to grow 3 to 6 per cent organically per year on average through the cycle. They maintain their operational margin target range of 13 to 17% and their Return on Capital Employed (ROCE) target range of 11 to 15 per cent. They intend to maintain their focus on cost control. Their company has grown significantly in the past 10 years, with revenues almost tripling, and has become more complex. Their focus will therefore be on simplification and cost savings. Their goal over the next three years is to generate approximately €1 billion of supply chain productivity gains and €400 to 500 million of savings in support function costs, which they will partly reinvest in growth.