Solid competitive positions supported by different business lines and exposure to various end-markets. Mega-trends such as urbanization, greater automation, digitization, and Internet of Things (IoT) providing medium-term growth potential. Well-diversified in terms of geographic spread and customer distribution. Average profitability relative to the capital goods sector Downward trend for operating margins, currently affected by ongoing competition and economic slowdown in emerging countries, notably China. Exposure to cyclical and fragmented end-markets. Our expectation of a continued track record of substantial free operating cash flow (FOCF) generation. Sizable dividend payouts and acquisition-focused growth strategy. Discretion around shareholder distributions allowing for deleveraging when necessary. Our expectation that Schneider will maintain fully-adjusted debt leverage of less than 2x and a funds from operations (FFO)-to-debt
