Invensys Finance - Financial Steps

Invensys Finance Overview

Invensys, now part of Schneider Electric, didn’t operate a traditional finance division in the way a bank or lending institution does. Rather, Invensys focused on providing industrial automation, software, and services. Its “finance” aspects primarily revolved around how it managed its own financial health, structured project financing for large-scale implementations, and offered financing options to customers to facilitate the adoption of its solutions.

Internal Financial Management: Like any large multinational corporation, Invensys had a robust internal finance department. This department was responsible for:

Accounting and Reporting: Ensuring accurate financial record-keeping, complying with accounting standards (e.g., IFRS), and producing timely financial reports for internal management and external stakeholders (investors, regulators).
Treasury Management: Managing cash flow, investments, and foreign exchange risks. This included optimizing working capital, securing lines of credit, and hedging against currency fluctuations.
Financial Planning and Analysis (FP&A): Developing financial forecasts, budgets, and strategic plans. This department analyzed performance against targets, identified areas for improvement, and supported decision-making across the organization.
Mergers and Acquisitions (M&A): Evaluating and executing acquisitions and divestitures to grow the business or streamline operations.
Investor Relations: Communicating with shareholders and analysts to maintain a favorable perception of the company’s financial performance and prospects.

Project Financing: Given the scale and complexity of many industrial automation projects, Invensys sometimes played a role in facilitating financing for its customers. This wasn’t direct lending, but rather helping customers secure funding through partnerships with banks or other financial institutions. This could involve:

Structuring Financing Packages: Working with financial institutions to create financing solutions tailored to the specific needs of a project and the customer’s financial situation.
Providing Technical Expertise: Offering technical expertise to lenders to help them assess the viability and risk of a project.
Sharing Risk: In some cases, Invensys might take on a portion of the project risk to make it more attractive to lenders.

Customer Financing Options: To make its products and services more accessible, Invensys offered a variety of financing options to customers, such as:

Leasing: Allowing customers to lease equipment rather than purchase it outright.
Payment Plans: Offering flexible payment plans to spread the cost of a project over time.
Performance-Based Contracts: Linking payments to the achievement of specific performance targets, reducing the customer’s upfront investment.

Post-Acquisition by Schneider Electric: Following Schneider Electric’s acquisition of Invensys, these finance functions were integrated into Schneider Electric’s overall financial operations. The core principles of sound financial management, project financing support, and customer financing solutions continue to be applied within the broader Schneider Electric organization, supporting its mission of providing energy and automation digital solutions for efficiency and sustainability.