SCH2017_DRF_EN_Livre.indb

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Overview of the Group’s strategy, markets and businesses Group strategy and market opportunities

Driving the digital transformation of customers and partners

The World Economic Forum has estimated that energy efficiency is the cheapest solution to tackle the transition. However, 70% of the world’s energy is still used today without any efficiency performance requirements. For new buildings, ⅔ of the energy consumption has no applicable codes or standards. According to the IEA, the improvement in energy efficiency in the major energy-consuming sectors (industry, buildings and residential) could help reduce energy use by 15% to 25%, a very attractive business scenario in all economies. Schneider Electric has developed a unique portfolio of products and solutions for active energy management to homes, buildings, industrial plants, data centers and infrastructures. Our digital solutions typically enable savings of 30%, based on data provided by past projects. The new emerging power system requires increased flexibility. Here again, digitization of the demand side enables increased levels of flexibility. Schneider Electric has developed a comprehensive portfolio of solutions to monitor and digitally control demand. In addition, the company has been very active in developing microgrid solutions, which inherently bring new levels of flexibility to the grid. Schneider Electric’s innovative, advanced digital solutions and services enable utilities to operate and maintain more reliable, resilient, and efficient grids, enabling the smooth integration and management of distributed energy resources into power networks. Finally, Schneider Electric is also active in advising customers on their energy procurement strategies, enabling companies to adopt more sustainable and efficient energy profiles, a must do as the number of market actors increases alongside demands for decarbonized, reliable and cost effective energy solutions. The one full-liner in automation: leading in discrete, hybrid and process automation Industries are facing significant opportunities as digitization pervades all usages. Schneider Electric is the sole full-liner in process automation and hybrid manufacturing, delivering complete IIoT (Industrial Internet Of Things) solutions for the plants and machines domain. Through EcoStruxure™, built upon leading smart connected devices, a complete renewed edge control and leading software platform, Schneider Electric delivers IIoT services to improve efficiency and energy management for the whole life-cycle of plants and machines. As industries digitize, they can extract increased performance from their assets, notably through predictive maintenance, longer lifetime, optimized energy and raw materials consumption. They can also significantly empower operators, notably with the use of augmented reality and digital repositories. They can achieve a greater level of agility for their enterprises, optimizing plant manufacturing in varying demand and supply conditions, and streamlining supply chains throughout the enterprise. Our references have shown that productivity can be improved by around 30% through the proper deployment of digital technologies.

Schneider Electric is leading the digital transformation of energy management and automation, with a portfolio of activities 90% focused on the demand side. Through EcoStruxure™, Schneider brings a comprehensive response to the challenges of digital transformation, across 6 domains and for 4 end-user markets. EcoStruxure™ is an open architecture, which integrates connectivity at the lowest level, control at the edge for critical operations, and cloud-based digital services, throughout the lifecycle of assets. EcoStruxure™ architectures are deployed across 480,000+ sites around the world. EcoStruxure™ is also a community, with 20,000+ system integrators and developers, actively engaging on the platform, as well as a broad range of technology alliance partners, supporting the development of a complete open ecosystem. In addition to continuously innovating and digitizing our offers, Schneider Electric aims to provide the best-in-class digital experience to our customers and partners. Our digitized and dynamic sales & marketing channels, provide customers with easy access to up-to-date information on our offers and company, be it on social media, our web or our partner portals. We deliver a digitized and tailored customer service experience from the design phase to operations and maintenance. Digitization is at the core of the Group’s strategy and Schneider Electric is committed to supporting the digital transformation of its customers and its partners. We also want to facilitate interaction between our partners, across the value chain, by bringing them on to one open platform and integrating them in to a digitally enabled ecosystem that will eliminate current inefficiencies. New economies will continue to experience accelerated development in the medium-term as they catch up with more mature economies and in many cases leapfrog into the latest digital technologies. Schneider Electric’s long-term commitment to new economies has resulted in strong growth over the last decade, at around 15% CAGR. Our customer focus and local knowledge have resulted in several emblematic customer successes, such as the following examples: China: Power and Automation solution for a leading steel company, leveraging the strengths of EcoStruxure™ plug-and-play architecture from connected products to software. The customer faces difficulties in cost optimization (labor, energy, capacity management) and deploys a complete EcoStruxure™ solution, including power system, automation system, optimization application to reach a productivity increase objective of 30%. In addition, the solution delivers enhanced benefits such as increased safety, reduced mechanical issues and facilitated maintenance. Leveraging opportunities in new economies

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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