Schneider Electric S.E. delivered strong 2022 results, despite a difficult year hampered by cost inflation, supply-chain issues, and geopolitical distress. The company increased sales by 18.2% (12.2% organic) compared with the 10%-11% we expected in 2022, with both the energy management and industrial automation segments contributing their fair share to volume growth. The company posted €6.5 billion S&P Global Ratings-adjusted EBITDA, and 19% EBITDA margins, stronger than our previous estimates of €5,946 million-€6,096 million EBITDA and an EBITDA margin of 18.8%. Despite heavy working capital outflow of €1 billion, Schneider delivered free operating cash flow (FOCF) of €3 billion, broadly in line with our expectations. Supply constraints and strong underlying demand pushed up Schneider's backlog in 2022, given the market's
