Licence partnership Medium Voltage Build a partnership … … with Schneider Electric Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 2 Building a partnership with Schneider Electric ● More than 300 licence contracts over the past 25 years all over the world on MV/LV equipments ● Our intention is to build Long-Term Partnerships with panel builders ● Licences to manufacture and sell products under Schneider Electric brand name ● Licence is more than just drawing collection Services are provided ● Up to Date Technical Documentation (drawings, instructions, product evolutions) ● Communication tools, Configuration tool ● Training, Validation, and Periodical Audits ● Local Support and Assistance ● Additional Support available upon request ● Technical or industrial support ● Join our Promotion & Prescription efforts ● Coordinate our commercial operations Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 3 Building a partnership with Schneider Electric Why choosing a Licence partnership ? ● Your benefits ● Quick Access to the market (technology) ● Fully Type-Tested product ● Limited R&D costs ● On going Development cost supported by Schneider Electric ● Differentiation from your competitors ● Schneider Electric Brand ● Make the most of Schneider Electric Expertise You win 2 years in the development of your business Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 4 Licence Implementation Milestones Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 5 Transfer of technology milestones ● After signing the Licence, there's a number of steps that should be followed 1 2 Mutual knowledge MOU** Licence Contract Business Plan 3 Preparation of techno transfer Training Payment of Cash Fees 4 Implementation Contractual Audits Validation Delivery of 1st components Support 1st delivery **Memorandum Of Understanding Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 6 Licence contract 1 2 Mutual knowledge Licence Contract 3 Preparation of techno transfer 4 Implementation Support Express the motivations and needs of both parties Protect respective company interests Guideline to clarify day to day relationship Be significant of a long term policy Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 7 Licence contract content (1/4) ● Scope of the licence with No Exclusive Rights ● Local production of the product in a territory based on technical information, tools and services and right to sell the product inside the territory. ● Transfer plan, training and technical assistance description ● Access to improvements and file updates Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 8 Licence contract content (2/4) ● Device, products and system parts ● Unless otherwise agreed case by case for the devices for which =S= has no offer or when final customer imposes it, only Schneider Electric components are allowed in the product, Validation of Schneider Electric is a must before doing any change ● The licence contract includes the list of authorised local (non Schneider Electric) components and technical warnings ● Territory ● The license is given for a Specific Territory (generally a country or even a segment in the country) ● The right to sell can be extended Case by Case to a larger territory under some co-ordination conditions (previous written =S= Country authorisation) Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 9 Licence contract content (3/4) Additional legal clauses ● Guaranties given by Schneider Electric ● Delivery (commercial contract) ● Drawings and instructions ● Audits : Validation audit "OK" for production and periodical audits ● Liability : limit of responsibility from Schneider Electric ● Schneider Electric not responsible for local added value ● Duration, Renewal and Termination ● 4 years as standard ● Renewable by new agreement 3 years as standard ● Confidentiality ● Applicable law : French Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 10 Licence contract content (4/4) Coming into force ● Coming into force ● Signature of licence agreement ● Conditioned on payment of entrance fee ● Payment conditions ● Cash Fixed entrance fee amount ● Access to technology ● Cover the cost of technical and industrial transfer, trainings ● Validation and periodical audits ● Technical and Industrial support ● Payment schedule defined in the licence contract ● Royalties Fixed amount per product sold ● Product evolution and Transfer file update ● R&D Support ● Use of the Brand and Intellectual Property Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 11 A comprehensive training to give full autonomy 1 2 Mutual knowledge 3 Preparation of techno transfer 4 Implementation Support Payment of Cash Fees Training Give access to the technology 2 or 3 days training in partner's factory (NEX offer) 1st Job study with support of a SE specialist Visit of the Schneider Electric global plants Transmission of file & tools Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 12 Transfer of Technology File content ● Commercial tools : ● Product presentation ● Catalogue ● Sales promotion kit ● Typical Technical specifications MCset Transfer file Level C ● Technical tools : ● ADDs - Architecture Decision Document ● BOMs - Bills of Materials ● Component Drawings ● Assembly Drawings ● Industrial File ● Traceability software package ● Civil work, Installation and Operation Guides ● Type Test Reports ● Technical Schedules ● General Arrangement drawings ● Technical data sheet Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 13 Transfer of Technology Implementation in your premises ● The Licensee integrates the file into his organization and information system ● Review files ● Establish equipment and tooling needs ● Implement processes to manage the file ● Initiate prototype manufacture ● Purchase Schneider Electric components Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 14 Validation Green light before "SELL" decision 1 Mutual knowledge 2 3 Preparation of techno transfer 4 Implementation Support Validation Preliminary check/audit by country Partner Support Team THEN 2 to 3 days on Partner site to check product transfer Validation of Product : 1st job or prototype assembly Validation of Process / Quality system and Organisation Release of Certificate Shared action plan before 1st customer delivery Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 15 Contractual audit Time to share experience and re-validate 1 2 Mutual knowledge 3 Preparation of techno transfer 4 Implementation Support Contractual Audit Review of manufacturing operations 1 day on Partner site Quality / Process / Improvements Renewal of Certificate of Capacity Shared action plan Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 16 Day to Day Support ● To ensure product quality and help you to grow your business 1 Mutual knowledge 2 3 Preparation of techno transfer 4 Implementation Support Ongoing technical support : 1 dedicated contact in Schneider Electric in your country Design for new requirements File up-date Contractual audits and support : Our product expert will perform regular audits to re-validate 1-2 day visit Business review every year : Define action plan Forecasts Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 17 Transfer of technology milestones Global average timing ● Average total time from the signature of the licence contract till the delivery of the 1st job : 6 months 1 2 Mutual knowledge MOU** Preparation of techno transfer Licence Contract Business Plan 3 4 Implementation Training Payment of Cash Fees ~1 month Validation Delivery of 1st components ~4 months Support Contractual Audits 1st job delivery ~1 month **Memorandum Of Understanding Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 18 2 Types of Contracts Schneider Electric Express the motivations and needs of both parties Protect respective company interests Guideline to clarify day to day relationships Be significant of a long term policy France, MV Licence Contract Schneider Electric Local Sales org. Commercial Contract Partner Panel Builder For loose parts and components: specific devices, CB, relays, CTs, VTs, accessories Agreement on general sales terms and conditions Formalize price & delivery Valid for 1 year Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 19 MV Activities - Organisation Chart President & CEO Jean-Pascal Tricoire Infrastructure BU EVP Michel Crochon MV Activities EVP Frédéric Abbal Product Activity SVP Gilles Boisseau Equipment Activity SVP Joachim Dams Marketing Offer Creation Product & Channel Yann Fromont Marketing Offer Creation Equipment & Channel Frank Wrobel MV Partner Channel Support & Management Michel Ceddia Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 20 Infrastructure Business MV Partner Channel Organisation Chart Product Activity Marketing Yann Fromont Equipment Activity Marketing Frank Wrobel MV Partner Channel Support Michel Ceddia Contract Management Technology Transfer Christiane Jomet Dominique Carladous SM6-24 TT* Pilot Victor Guevara SM6-36 CB’s TT* Pilot Bulent Ayguler (50%) MCSet 1-2-3 TT* Pilot Jean-Luc Vanpouille CB’s / Cradle TT* Pilot Mathieu Gandon RM6, FBX, FLUOKIT TT* Pilot Raphaël Jurado Motorpact TT* Pilot Maurice Sartin NEX TT* Pilot Ma Hui Kiosk TT* Pilot Marc Bidaut APOD PSP Manager Ma Hui FLUSARC 36 / UNISARC UNIFLUORC Partners Business Support Eric Giroux Partners Business Support Dhananjay Singh (50%) MV/LV Substation Specialist Marc Bidaut TT* Pilot PIX / Cradle PIX TT* Pilot Manfred Naftz Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 * TT: Technology Transfer 21 Become partners to increase performance years saved You want to quickly develop your sales in the MV market We offer you a license partnership As a Schneider Electric partner you will quickly become operational to manufacture and sell MV equipment in accordance with latest IEC standard You will earn 2 years in the development of your sales > Make the most of your energy Schneider Electric - BU Infrastructure - MV Partner Channel Support & Management - Michel CEDDIA – 201203 22