Schneider Electric
November, 2014
1
Three trends set to double energy demand by 2050
Urbanization
Challenges:
Industrialization
Digitization
>  Increasing energy cost
>  Pollution
>  Climate change
>  Peaks in demand
>  City congestion
>  Water scarcity
Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
2
Global consumption must be reduced and
CO2 emissions halved to avoid climate change
Buildings and
Data Centers
Infrastructure
Two thirds of the
economic potential to improve
energy efficiency remains
untapped1.
82%
Industry
79%
58%
Untapped energy efficiency potential by segment
Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
1:Source: World Energy Outlook 2012 © OECD/IEA, 2012, from now until 2035
3
Technology enables new levels of efficiency
[billion]
50
Connected people
The convergence of IT
and energy is enabling
both process and
energy optimization
Connected objects
40
30
20
10
0
1995
2003
2010
2013
2015
2020
The Internet of things: an increasingly connected world
(Source: Cisco IBSG April 2011 / Internet World Statistics)
Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
4
Schneider Electric: the global specialist in
energy management and efficiency technologies
Balanced geographies – FY 2013 revenue
1
€25 billion 4-5%
revenue
FY 2013 revenue1
of sales devoted
to R&D
43%
160,000+
of revenue in
new economies
people2 in 100+
countries
28%
25%
Western Europe
North America
27%
20%
Asia Pacific
Rest of World
FY 2013 revenue1
Diversified end markets – FY 2013 revenue
1
Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
Utilities &
Infrastructure
Industrial
and Machines
Data Centers
& Networks
Non-residential and
Residential Buildings
27%
25%
14%
34%
1:Pro-forma basis including LTM Sep 2013 revenue from Invensys
2:As of February 2014 (including Invensys)
5
A balanced global footprint in 100+ countries
Employees3
38 Factories
6,4
4,1
47,600 Employees3
92 Factories
2003 2013
2003 2013
20031
20132
Rest of World
2,3
5
34,100 Employees3
53 Factories
Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
Asia Pacific
33,700
Western Europe
North America
7,1
47,500 Employees3
69 Factories
6,8
1,2
1,2
2003 2013
2003 2013
1:Published figures in billion € restated to reflect country-market view;
2:Billion € pro-forma basis including LTM Sep 2013 revenue for Invensys
3:Including Invensys, excluding Delixi and Fuji
6
We transformed the company
Accessible markets
2013
Leadership positions
€ 60bn
of sales with
#1 or 2
ww position
End markets
80% of sales
Western Europe
+ North America
Schneider Electric
- Technology Strategy & Innovation – Nicolas LETERRIER
43%
diversified
end-markets
balanced
geographies
2003
New economies exposure
5
4
2013
€ 8.7bn
50%
Geographies
€ 24bn
90%
€ 200bn
2003
More than doubled size
78% of sales
Non-residential buildings
+ Industrial & machines
of sales
~20%
7
The one-way energy-only grid
becomes two-way energy+data smart grid
Communication and software at all levels “Smart Grid”
Centralised Generation
4
Consumers
Utility network
Distribution
Transmission
Consumers
Active
3
Residential
Consumers
Active
Industry
3
Buildings
Electric Vehicles
Data Centres
Infrastructure
1
1
Renewable Energy Plants
Smarter
Demand
Schneider Electric
- Company Confidential
1
2
Distributed Generation
Smarter
Supply
Active Energy Efficiency:
Energy visibility & Means to act
Demand
Response
Distributed Generation
le
Smart Grid
8
… leading to a complex competitive environment
Providers need to help their
customers manage this complex
Power + IT mix.
Schneider Electric
- Company Confidential
9
Connecting, saving and sharing energy:
our integrated approach to efficiency
Connect
Save
Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
Share
10
Connecting all people, points, and devices
>  Open platform
>  Plug into ERPs
>  Connection to user
>  Real time data and algorithms to measure
performance (energy & process)
>  Benchmarking performance across sites to
identify improvement areas
Smart, real-time data provided through open platforms and integrated
systems, enabling insight and action for a sustainable future.
Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
11
Saving energy
>  Connected products
>  Local control
>  Active energy efficiency systems
>  Optimized process
>  Reduced consumption
Achieve optimized performance of operations, processes and assets with integrated
hardware, software, and services that combine the worlds of energy and IT.
Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
12
Equivalent to
consumption of 50
homes !
Flexibility in building thermal management
Start earlier and store
thermal energy during
nights
Power curtailment: 100kW
Duration: 2h00
Temperature drift: 0,8 °C
Outside temperature: 6°C
Schneider Electric
- Prosumer – Q1/13
Shed during peak
While maintaining comfort and energy
under control
Peak price curtailment strategy
Savings: 16% with similar kWh
consumption
13
Sharing capacity across the smart grid and making
cities more efficient
Smart grid
>  Shift and shave capacity to balance supply and
demand
>  Demand response
>  Ensure network stability, while integrating renewables
and electric vehicle charging infrastructure
Smart cities
>  Making cities more efficient, livable, and sustainable through an
Integrated Management Platform
Working to save, connect, and share energy and resources, for a world that is
more efficient, livable and sustainable.
Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
14
A future Smart City
15
In the convergence of IT & OT
Enterprise
Customer requirements from sensor to big data
IT
DigitalServices
Operation
Analytics tools
Virtual & Remote
Operation
Virtual IP Network
Control
Mobility
Advanced Mobile HMI
Distributed Intelligence
Integrated Engineering S/W
Devices
Connected device to Eth/Web
Optimized power conversion
OT
Schneider Electric
- Industry Business – January 2014
Moores
Law
Sensor Miniaturization
CONFIDENTIAL
16
Enlarged vision through Energy in Context
Energy Information
Energy Efficiency 15L
per 100 km
Energy Efficiency 15L
per 100 km
Energy Information – with context
Energy Efficiency 15L
per 100 km
profile of track
Distance
Energy Efficiency in Industrial Processes - EU Sustainable Energy Week on 21 June, Brussels
Travel direction
Height
Travel direction
Energy Efficiency 15L
per 100 km
Distance
17
Energy in Context – Real case
450 Tn/8hs
450 Tn/8hs
Morning
Shift
Afternoon
Shift
540kwh
470kwh
Morning
Shift
Afternoon
Shift
Daily crashed stone
Crusher #1
Energy consumed in
production context
Crew #A
Search for root
causes and • New staff
benchmark for best- • Respect standard
procedures for stone
practices loading cycle
implementation
Energy Efficiency in Industrial Processes - EU Sustainable Energy Week on 21 June, Brussels
Crew #B
• Experienced staff
• Fine tuned the stone
loading cycle
18
IT/OT Convergence is core to our strategy
2 scenario
û  Victim: Leave the leader position to the IT vendors
ü  Actor: Get a leader position in the hinge region between IT and OT
à  4 emerging markets to develop Innovative
Industry Solutions
à  Industry 4.0 and Smart Factory as part of the
Internet of Thing & Services
●  Cloud
●  Mobility
●  Big Data / Analytics
●  Social Network
Schneider Electric
- Industry Business – January 2014
CONFIDENTIAL
19
Pervasive technologies
Schneider Electric
20
Operational efficiency is an ongoing journey…
Current State
Some “people”
Some “times”
Future State
visualization
contextualize
workflow
consumption
security
governance
connect
scalability reliability
standards
Some “places”
Some “things”
Schneider Electric
real-time
interoperability
cost
modularity
factor
capture form
| control
Any one
Any time
Any where
Any thing
21
Help people make the most of their
energy