Our Story Confidential Property of Schneider Electric Our technologies ensure that everywhere, for everyone and at every moment. Confidential Property of Schneider Electric | Page 2 Energy is the base of life. when energy is on…… We ensure energy is on by making it • Safe • Reliable • Efficient • Connected • Sustainable Confidential Property of Schneider Electric | Page 3 • We believe access to energy is a …and the present way of managing energy is basic human right unsustainable Confidential Property of Schneider Electric | Page 4 1.3 1 billion people currently do not have access to electricity Another billion people have unreliable and intermittent supply of electricity Source : IEA, Economist Confidential Property of Schneider Electric | Page 5 Megatrends are provoking a rise in Energy Demand URBANIZATION DIGITIZATION INDUSTRIALIZATION +2.5B people in cities by 2050 50B connected things by 2020 +50% Energy consumption by 2050 Source: United Nations, DESA Source: Cisco Source: IEA Confidential Property of Schneider Electric | Page 6 Resources in the next 40 years ×1.5 Energy consumption will almost double Note: Forecast for 2050 compared to 2009 levels Confidential Property of Schneider Electric | Page 7 2 ÷ CO2 emissions need to be halved 3× We have to become 3 times more efficient Our World will be… MORE ELECTRIC • Demand for electricity driven by sustainability, intelligent devices, and evolution of key energy consumers (motion and cooling) MORE CONNECTED • • MORE DISTRIBUTED • • Provide local energy to facilities, around positive energy and micro grids, to empower users Falling prices of renewable energy Internet of Things will connect at least 50bn devices by 2020 MORE EFFICIENT • • 2/3 of energy efficiency potential remains untapped1 Buildings, industry & infrastructure end-users and datacenters all look to improve performance, efficiency and environmental footprint 82% Buildings & Data Centers 58% Industry 79% Infrastructure Untapped energy efficiency potential by segment1 1: World Energy Outlook 2012, OECD / IEA, Internal analysis Confidential Property of Schneider Electric | Page 8 At Schneider Electric, we combine Energy Management, Automation and Software serving 4 markets, i.e. 70% of the world energy consumption Software and Analytics Energy % are calculated on final energy Buildings > 30% Automation Industry & Infrastructure > 30% Source: IEA Explore 2015 Confidential Property of Schneider Electric | Page 9 Residential ~2% Data Centres & Networks …and Schneider Electric is uniquely positioned to make Demand Efficient and Connected Integration of Energy, Automation and Software Simpler, more scalable and flexible industrial architectures, leveraging the best of IT technologies INTERNET OF THINGS • Number of connected objects expected to double in the next 5 years1 50 IT Convergence OT Software and Analytics Connected people Connected objects 40 Energy optimization 30 20 Energy Automation 10 Process optimization 0 1995 2003 2010 2013 2015 2020 1: Source Cisco IBSG April 2011 / Internet World Statistics Confidential Property of Schneider Electric | Page 10 As well as uniquely positioned in Distributed Generation and Smart Grid Our Opportunities A more distributed grid Solar PV and Storage have seen drastic improvements in their economics over the past 5 years … … and are expected to count for ~50% of new capacity additions by 2030 (total additional yearly investment of ~$400 bn) +305GW 1200 Solar PV LCOE ($/MWh) 1000 Li-Ion Battery Costs ($/kWh) +436GW 18% 47% Solar Energy Storage 20% 800 19% 600 400 14% 44% 200 Micro-grids 14% 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2015 2020 Solar Wind Source: Lazard 2014, BNEF 2014 Confidential Property of Schneider Electric | Page 11 Source: BNEF 2015 2025 2030 Other Renewables Fossil 2035 2040 Nuclear Flexible Grid Automation / Smart Grid Schneider Electric combines Energy, Automation and In One Architecture Software Powered by One Software Enterprise I Manage Sustainability Planning “I Conserve our enterprise resources” Operations Buildings I Operate Factories Energy Management Asset Management “I Optimize our operations and assets” Business Operation Control I Control Datacenters Enterprise 1: Supported by low voltage, medium voltage and critical power technologies 2: IT = Information Technology, OT = Operational Technology Confidential Property of Schneider Electric | Page 12 “I Control our facilities processes” Power Availability Security Process Control … which enables full transparency and integration between segments, applications and control platform Enterprise I manage IT Players provide turnkey solutions and M2M connectivity Segment Solutions Address enterprise level business problems IT Convergence Operations I Operate Applications Deliver specific functionality for operational excellence OT Platforms Enable real-time information for applications and solutions Control I Control add operations management & analytics to control expertise OT Players Confidential Property of Schneider Electric | Page 13 The Old World of Energy: Singular flow of Electricity from Source to Load EHV/HV Heavy Industry Heavy Industry MV / LV Substation Connexion to HV network Connexion to MV network Residential Industry Centralised Generation Infrastructure HV/MV Substation (Primary substation) Switching Substation MV/MV Data Centres Buildings Energy Producers Confidential Property of Schneider Electric | Page 14 Utility Transmission Utility Distribution Consumers Commercial & Industrial The new World of Energy: Electricity is Distributed & Connected SMART GRID Smart Grid DISTRIBUTED GENERATION Distributed Generation CONNECTED FROM PLANT TOPLUG PLUG CONNECTED FROM PLANT TO Confidential Property of Schneider Electric | Page 15 EFFICIENT DEMAND Efficient Demand Schneider Electric the Global Specialist in Energy Management & Automation Infrastructure Business is the leader of Medium voltage and a front-runner in Smart Grid, Distributed Generation and Power Systems for industries and infrastructure. Software INFRASTRUCTURE BUSINESS • • • • • • €5.3 Billion 21% Revenue #1 Worldwide Medium Voltage Grid Automation Distributed Generation Automation Substation Automation System PACiS, PSE Smart Grid DISTRIBUTED GENERATION Distributed Generation CONNECTED FROM PLANT TOPLUG PLUG CONNECTED FROM PLANT TO Confidential Property of Schneider Electric | Page 16 RTU, Protection Relays, Micom, Sepam Energy Transformers SMART GRID Asset Analytics, Network, Demand Management SCADA / ADMS Smart Metering Switchgear Circuit Breakers EFFICIENT DEMAND Efficient Demand Schneider Electric the Global Specialist in Energy Management & Automation Partner Business partners with electrical and mechanical specialists to provide advanced loT solutions to buildings and low voltage Software BUILDING & PARTNER BUSINESS Power Monitoring Expert Building Operation • • • • • • Automation HVAC Controllers Sensors Smoke Detector Energy Power Metering Circuit Breaker €10.8 Billion 43% Revenue #1 Worldwide Low Voltage Building Automation Energy Efficiency and Comfort Wiring Devices SMART GRID Smart Grid DISTRIBUTED GENERATION Distributed Generation CONNECTED FROM PLANT TOPLUG PLUG CONNECTED FROM PLANT TO Confidential Property of Schneider Electric | Page 17 EFFICIENT DEMAND Efficient Demand Schneider Electric the Global Specialist in Energy Management & Automation Industry Business brings automation to industry and infrastructure from machine manufacturers to process operators and leads manufacturing of the future. Software INDUSTRY BUSINESS Process Expert Plant Operation Automation Automation Components Automation Bundles Energy • • • • • • • €5.6 Billion 22% Revenue #2 Discrete Automation #4 Process Automation Machine Automation Software Drives SMART GRID Smart Grid DISTRIBUTED GENERATION Distributed Generation CONNECTED FROM PLANT TOPLUG PLUG CONNECTED FROM PLANT TO Confidential Property of Schneider Electric | Page 18 EFFICIENT DEMAND Efficient Demand Schneider Electric the Global Specialist in Energy Management & Automation IT Business brings complete solutions for IT and defines the most advanced architectures for performance, cost and speed from hyperscale to edge computing and networks and leads Energy Storage and Secured Power. Software IT BUSINESS Resource Advisor Data Center Expert • • • • • • • • • Automation Prefab Micro Datacenters Room/Row/Rack Precision Cooling Energy Storage Systems SMART GRID Smart Grid Modular PDU Modular UPS DISTRIBUTED GENERATION Distributed Generation CONNECTED FROM PLANT TOPLUG PLUG CONNECTED FROM PLANT TO Confidential Property of Schneider Electric | Page 19 €3.4 Billion 14% Revenue #1 Worldwide Critical Cooling Secure Power Edge Computing IoT DC Storage EFFICIENT DEMAND Efficient Demand Schneider Electric the Global Specialist in Energy Management & Automation Global Solutions develops physical and digital life cycle services for our most advanced customers, bringing them efficiency from design to operations and is a front runner in 24/7 connectivity, big data and analytics. GLOBAL SOLUTIONS Software • • • • 7500+ Field Services Experts # 1 Cloud Weather Services Energy & Sustainability Services Leader in Industrial Software • #1 Operations Execution • #1 Operations Control • #2 Process Engineering • Segment Solutions • Mining, Metals, Minerals • Water and Waste Water • Oil and Gas • Food and Beverage • Smart Cities • Transportation • Cloud Service Providers • Finance • IoT-enabled Digital Services SMART GRID Smart Grid Industrial Software Energy Services Supply-Chain Services Automation Industry-specific Architectures Integration Services Field Services Energy Industry-specific Architectures DISTRIBUTED GENERATION Distributed Generation CONNECTED FROM PLANT TOPLUG PLUG CONNECTED FROM PLANT TO Confidential Property of Schneider Electric | Page 20 Weather Services Integration Services EFFICIENT DEMAND Field Services Efficient Demand Sustainability Services Schneider Electric, the Global Specialist in Energy Management and Automation €25 billion ~5% ~170,000 FY 2014 revenues of revenues devoted to R&D people in 100+ countries Diversified end markets – FY 2014 revenues1 Non-residential & Residential Buildings 33% Data Centers & Networks 14% Industrial & Machines 27% Utilities & Infrastructure Balanced geographies – FY 2014 revenues1 25% 28% North America Western Europe 28% 26% Asia Pacific 19% Rest of World Confidential Property of Schneider Electric | Page 21 Schneider Electric Global Business in Over 100 Countries North America Western Europe 33,700 Employees 38 Factories 3 Asia Pacific 47,600 Employees 92 Factories 3 Rest of the World 61,500 Employees 3 Including JV 77 Factories 34,100 Employees 38 Factories 3 Including JV 2.3 6.3 4.1 20031 20142 1: Published figures in billion € restated to reflect country-market view; 2: Billion € pro-forma basis including LTM Sep 2014 revenue for Invensys 3: Including Invensys, excluding Delixi and Fuji Confidential Property of Schneider Electric | Page 22 6.7 20031 20142 1.2 7 20031 20142 1.2 4.8 20031 20142 Schneider Electric commitment to a high investment in technology for innovation A Technology Company R&D Investment • c. 11,000 R&D engineers, c. 10,000 application and software engineers ~5% of sales devoted to R&D Partnering with 50+ 1,212 • 20,000 patents active or in application worldwide, >500 filed in 2014 1,119 best-in-class public and private organisations 1,058 • With recognized innovations Recognized highest ranking DCIM solution in Gartner Magic Quadrant (Oct 2014) An Ecosystem for Open Innovation 979 774 764 Leading global projects for Intelligent 818 buildings, renewables, Homes, Minalogic, Smart Electricity Boosting Standardisation Zigbee, IEC, NEMA M580: World’s first ePAC with built-in ethernet & Machine Solution – NEXT Controller Generation Confidential Property of Schneider Electric | Page 23 Funding start-ups Aster Capital fund 2008 2009 2010 2011 2012 2013 2014 Demand response, software breakthrough Schneider Electric global service network delivers End to End Services Field Services Global offer powered by digitization Cloud Services Software and connectivity provide digital services Energy and Sustainability Services Managed services built on deep segment knowledge 7,500+ 250 15 Service Delivery Professionals Service Centers Service Bureaus Confidential Property of Schneider Electric | Page 24 Schneider Electric Approach with Deep Vertical Segment Expertise Integrated Architecture Segment expertise 20 of the largest Oil and Gas companies in the world use Schneider Electric solutions 9 of the 10 largest Mining, Metals and Minerals companies in the world use products and solutions from Schneider Electric Confidential Property of Schneider Electric | Page 25 11 of the top international brands within Food & Beverage partner with Schneider Electric Global Network of Account managers 100 plus countries rely on Schneider Electric solutions to power, automate and help operators manage their water and/or wastewater plant and network processes 1 million Buildings around the world including 3 of 5 top international hotel chains ensure guest comfort & safety and an estimated 40% of the world’s hospitals benefit from healthy and safe facilities with Schneider Electric Global Delivery and Lifecycle Services 10 of the world’s top electric utilities use Schneider Electric solutions to deliver safe and reliable power to homes & businesses 3 of the top 4 biggest hyper scale cloud providers use Schneider Electric Solutions for their datacenters 8 the top 10 packaging machine builders use Schneider Electric Solutions And we believe that… Confidential Property of Schneider Electric | Page 26 …access to energy is a basic human right We want everyone on our planet to have access to safe, reliable, efficient and sustainable energy. At Schneider Electric™, we’re committed to providing innovative solutions that address this energy paradox: balancing our planet’s carbon footprint and the indisputable right of everyone to quality energy Awards and recognitions for our impact • 2.4 million households now have access to energy through the our Access to Energy offers and business models • 70,000 people at the bottom of the pyramid trained in energy • 50 partners funded Confidential Property of Schneider Electric | Page 27 Sustainability is critical on our agenda Solutions for efficiency Ethics & Responsibility Solutions for energy gap Fostering energy access Active energy efficiency, Energy management & Sustainability services Business practices Products and sites Smart grid (renewable, flexible distribution, electric vehicle, demand response) Employees Smart cities Communities Business Innovation Spreading access to reliable, affordable and clean energy through a combined approach of training, offers, business models and investment People Fighting fuel poverty A measured commitment: The Planet & Society Barometer • Measuring sustainability • Communicating quarterly • Auditing annually by a third party Confidential Property of Schneider Electric | Page 28 #9 in the Global 100 most Sustainable Corporations in the world in 2015 As the global specialist in Energy Management and Automation, we create connected technologies that …… RESHAPE INDUSTRIES Confidential Property of Schneider Electric | Page 29 TRANSFORM CITIES ENRICH LIVES ……ensure that everywhere, for everyone and at every moment. 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