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

Group competitive strengths

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integrators, faster time from idea to market, and the ability to scale customer projects. For instance, our open EcoStruxure™ platform uses open protocols and standards to ensure we can innovate and accelerate development with our best-in-class partners. Openness is critical for bring value to our customers. The value of an integrated portfolio We maximize the Group’s synergies and value proposition to customers in our end markets through our integrated portfolio, enhanced by our unique and integrated EcoStruxure™ approach, as well as our integrated and specialized salesforce. This integrated play generates close to 50% cross-selling of offers across our 4 end markets, with pull-through technologies growing at a higher rate. The values of such integrated approach are exemplified in the following customer references: E A World Class reference data center for a leading telecom services company in Africa with a solution consisting of a large UPS system and a ~50% attach rate in Power Management and Industrial offers. The combined offer, together with our Lifecycle and Preventive Services were unmatched by the competition; E A Major transportation operator in Shanghai with a full solution including operation system, distribution system, electromechanical devices and spare parts. This enabled the customer to move from passive response to pro-active maintenance, and lower total investment during the lifecycle especially during the Opex phase; E An End-to-end Smart Grid solution & Water Management system including Medium Voltage, Process Automation and Software Integrated BuildingManagement System. The integrated solution increased the efficiency of operators and management. The implementation of advanced unified dashboards improved the Situation Awareness and Operational readiness and provided immediate access to critical KPIs & Reporting data in the Field. Multiple access channels for a broad and diffuse user base We work with many types of partners, such as distributors, system integrators, contractors, panel builders, electricians, machine manufacturers and others, as well as with our end customers. The Group has developed the widest network of distribution and direct partners in its industry. This provides us with many access channels to a market comprised of a broad and diffuse user base, ensuring the right conditions for locally-run projects and local economic development. These diverse market access channels, which support our model with limited capital investment, also help to ensure that we are not dependent on a limited number of large customers.

Schneider Electric is a leader in technology innovation and adapts to changing ecosystems and customer needs.

Technological leadership in energy management and automation

We are developing best-in-class technology in energy management and automation to meet growing customer needs and challenges. We estimate that nearly 80% of our revenue is derived from sales in businesses where Schneider Electric enjoys a number 1 or 2 market position: low voltage distribution, medium voltage distribution and grid automation, discrete industrial automation and control, critical power and cooling. We design products and solutions that we believe offer the best levels of safety, reliability and efficiency. This is achieved through a renewed commitment to innovation and significant investments in research and development. As a result, our products and solutions meet the needs of our customers for safety, simplicity, connectivity, and flexibility. Additionally, through an ongoing dialogue with our customers, we are able to maintain our very high standards of quality and to anticipate the innovation that will help drive our future growth. Thanks to this technological leadership, the Group’s brands are among the most recognized in the industry. Accelerating our digital transformation journey Schneider Electric accelerates its own digital transformation journey with the formation of Schneider Digital, ensuring a consistent and integrated digital experience across our offers and interactions with customer and partners. Schneider Digital is based on 4 foundational pillars: E Leveraging common technology: through the appointment of a Chief digital officer, the development of a transversal digital organization, the centralized animation of a network of technology partners, and a global resource allocation management system. For instance, the Schneider Electric Digital Services Factory, a ‘virtual’ factory created in cooperation with Accenture, enables us to rapidly build and scale new offerings in areas such as predictive maintenance, asset monitoring and energy optimization; E Enhancing competencies: through extensive competency mapping, digital learning and university partnerships; E Measuring performance: through the establishment of a digital barometer and the creation of a digital committee at board of directors’ level; E Supporting a strong innovative ecosystem: with a robust development ecosystem for partners, developers and system

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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