Investor Day
February 20, 2014
IT Business
Daniel Doimo
EVP, IT Business
IT business: a leader in
Critical Power & Cooling
A global business with leadership position
Business size
€3.4bn
2013
revenues
Key Channels
Critical Power,
Cooling & Services
#1
worldwide
IT Distribution
End users
Value added
resellers
Electrical
Distribution &
contractors
1st channel
Our offer
Other key channel
Geographies
Systems
Three Phase UPS
Racks & PDUs
Cooling & Chillers
Modular Solutions
Management software
Products
One Phase UPS
Inverters
46%
36%
New
economies
43%
57%
Mature
countries
18%
Services
Installed base services
Life cycle services
Primary end market
End markets
Data centers &
networks
Industrial &
Machines
Schneider Electric – Investor Day – IT Business - 20 February 2014
Non-residential &
Residential Buildings
Utilities &
Infrastructure
Other end markets
3
Transformed from a UPS product company to
providing solutions in all end markets
€3.2 Bn
Strategic Gap
Filling
#1 Single Phase UPS
€2.7 Bn
#1 Critical Power &
cooling
€3.4 Bn
Complete Solutions &
Products
Massive Scaling
Discrete UPS
Player
• DCIM Software
• Modular datacenters
• 1Ph UPS
• 3Ph UPS
• UPS
• In-Row Cooling
Segment
Strength
• Racks
• PDUs
• Precision Cooling
• Data center Services
• DCIM capabilities
• Extended Secure Power
capabilities
• Integration of other BU
capabilities
• Secure Power UPS
• Inverters
Increasing focus on software & services
2007
1 SE MV 2010 Revenues before Areva Distribution
2 Proforma including Areva Distribution acquisition on a 12-month 2010 basis
Schneider Electric – Investor Day – IT Business - 20 February 2014
2011
2013
4
We provide customers best-in-class products,
integrated systems and value-added service
Home
& Business Networks
Enterprise Systems & Services
Data centers
Secure Power
Smart -UPS®
Hardware
Gutor
UPS
SurgeArrest ®
Inverters
Services
Software
Back-UPS ®
Schneider Electric – Investor Day – IT Business - 20 February 2014
Symmetra &
Galaxy UPS
PDU
Pre
Fabricated
Modules
StruxureWare
for Data
Centers
InRow & Room
Precision Cooling
NetShelter ®
Racks
MGE ® EPE
DCIM software
Life cycle Services
with a worldwide
service team to be
close to customers 1
1. Operate: supporting both Data Centers and Secure Power
5
External trends continue to
be favorable despite short
term turbulence
We experienced turbulences in 2013 from
macro economy and market transition…
Macro Environment
USA
Governmental slowdown
Debt ceiling and QE tapering uncertainty
IT spending stop and go
Europe
Russia: Slowdown in IT spending
Western Europe: Economic situation worse
than initially expected
Addressing a Datacenter Transition
Shift to:
• Large / extra large data center
• Modular data center
• Cloud and service providers
Currently adapting our offers and
engagement models to capture
future growth
India
Adverse weather conditions and economic
slowdown impacting inverter market growth
Long term outlook remains positive
Schneider Electric – Investor Day – IT Business - 20 February 2014
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… but this does not undermine the favorable
trends
Favorable trends
Anything as a
service
Energy and
Operations
efficiencies
Strong Growth in
New Economies
Internet of things
24x7 Availability
Business opportunities
Continued investment
in data centers
Demand for secure
power applications
Fast growing market in
new Economies
• IT spend in Data center to grow
at 3-4%’CAGR1 for ‘14-’17
driven by collocation providers
and Web Giants
• Protection of networking
equipment is critical
• UPS for industry application will
grow at 9-11% CAGR2 for ’14’17 thanks to connectivity of
Critical Non-IT equipment,
growth in automation and
convergence OT / IT
• Government investment in
infrastructure
• BRIC represent 21% of market
with growth 2 pts higher than
world average in ‘14-173
1 IDC, Gartner and Internal analysis
2 ARC (Industrial UPS Report – Includes 1Ph and 3Ph, Software and Services ), IMS and internal analysis
3 IMS (UPS, Services, Racks) and Internal analysis
Schneider Electric – Investor Day – IT Business - 20 February 2014
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Clear initiatives to capture
opportunities from
favorable environments
Focused initiatives to embrace growth across
the board
Enhance data center
market leadership
• Leverage total business of the Group,
especially in Cloud & Service Providers
• Ramp up modular offer
• Expand service
• Accelerate software
Grow in non
datacenter segments
• Grow secure power application
and service in targeted segments
Strengthen product
portfolio
Schneider Electric – Investor Day – IT Business - 20 February 2014
• Develop local offer for new
economies
10
We are uniquely positioned to capture the
opportunities in data centers
Enhance data
center leadership
Building & Partner
IT
Infrastructure
Industry
Security
LV Panelboards
& Switchboards
Busway
MV
Transformers
MV Switchgear
Rack Systems
LV Switchgear
Flexible Air
Containment
Modular PDU
Modular UPS
Room/Rack/Row
Cooling
Rack PDU
Services
Economizer
Chillers
Lighting Control
Cooling - VSD
DCIM and
other Software
Schneider Electric – Investor Day – IT Business - 20 February 2014
Meters
11
Green data center for major service provider in
South East Asia
Enhance data
center leadership
Large Schneider multi business units win 11.7M€ project - 6,100 sqm2, 2 floors
Customer Benefits:
• One stop services & Strong local presence
• Expertise in mission critical application design
• Integrated design compliant with Data Center standard
• Best in class Energy Efficiency using StruxtureWare
• Optimised TCO by reducing intermediaries
Scope of Work:
Scope of ITB Supply:
• Design (Conceptual &
Detailed)
• Equipment supply
• Services:
• Secure Power: Galaxy UPS
(10 x G7000, 500kva)
• Precision Air: Uniflair CRAC
(x18 units)
• Installation & Integration
• Commissioning & System Test
Schneider Intra-Group supply:
Building & Partner
Infrastructure
• Electrical Distribution with LV
SwitchGear (BLOKSET)
• BMS System: Smart Structure
• Lighting Control
• Security System (Pelco) &
Access Control (TAC)
• Electrical Distribution with MV
SwitchGear (RM6)
Schneider Electric – Investor Day – IT Business - 20 February 2014
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Data center components can be delivered as
prefabricated functional building blocks
Enhance data
center leadership
Cooling
Busway
Power
Modular UPS
IT
SE Best-in-class efficiency solutions can save up to 30% Energy Opex
Schneider Electric – Investor Day – IT Business - 20 February 2014
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Data Center Lifecycle Services
Building a long term relationship with our customers
Enhance data
center leadership
Key value creators:
• Increased client intimacy and
touch points
• Higher customer engagement
through 2-3 update cycles over
20 years
• Best business model to drive
additional solution sales &
services
• More predictable revenues with
recurring services
Schneider Electric – Investor Day – IT Business - 20 February 2014
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DCIM software enables data center
management and improves efficiency
Across All Domains
Enhance data
center leadership
Energy and
Sustainability
Track and manage enterprise
energy and carbon costs
Cooling
Monitoring
Monitor and control data
center cooling
Operations
Management
Manage Data Center assets,
operational and capital costs
Power
Monitoring
Advanced power
monitoring control
and analysis
IT Infrastructure and
Device Monitoring
Advanced monitoring and
automation
Schneider Electric – Investor Day – IT Business - 20 February 2014
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Focused efforts in mission critical segments to
accelerate secure power growth
Grow in non data
center segments
Highlights of Secure Power Projects
Oil & Gas
Water
Tuen Mun Sludge Treatment Facility
- Hong Kong
Applications
Process Control & SCADA
Incinerator
PLCs
Solutions:
Gutor PDW 120kVA
Wheatstone LNG Project – Australia,
Applications:
SCADA & DCS
Security systems
Solutions:
Gutor PXW Systems in dual
redundant mode
Various models from 25 KVA-230 KVA
Gutor PXP 120kVA
Hospital
Transportation
Valencia Hospital – Spain
Delhi Metro- India
Applications
Applications:
Operating Theaters
Intensive Care Units
Solutions:
Smart UPS On-Line
Long back up time battery packs
Signaling systems
Station Control Room
Automatic Fare control
Solutions
80 kVA MGE Galaxy 5500
Installed base services provided to each customers
Schneider Electric – Investor Day – IT Business - 20 February 2014
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We develop offers locally to capture growth in
new economies
Grow in new
economies
Key R&D centers in New Economies
3 Phase UPS
China
•1P UPS
•3Ph UPS
•Cooling
Equipments
•Datacenter
Cooling
•Racks
Cooling
1 Phase
India
Brazil
•1Ph UPS
•Racks
•Software
•1Ph UPS
•3Ph UPS
Over 40% of our R&D resources in these 3 countries
Schneider Electric – Investor Day – IT Business - 20 February 2014
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Conclusion
Key
Strengths
Despite turbulence in 2013, we are well
positioned for growth
Market leadership with strong brand and global footprint.
Broadest offer with fully integrated solutions & cross selling synergies
Business
opportunities
Continue investment in
Data center
Growing demand for
secure power
Need for local offers in
new economies
Clear growth
Initiatives
Largest Installed base with recurring business opportunities
Enhance
leadership in
datacenter
Grow in nondatacenter
segments
Strengthen product
portfolio in new
economies
Schneider Electric – Investor Day – IT Business - 20 February 2014
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Help people make the
most of their energy