SCH2017_DRF_EN_Livre.indb

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

Long-term relationships with our distribution partners and end customers are key to us and we are therefore constantly seeking to enhance the value we add. Today’s value chain in electrical distribution is highly fragmented and inefficient, from design to maintenance. At Schneider Electric we strive to improve interactions across the value chain and bring all partners onto one open platform, with the right tools to simplify the CapEx phase. As the worldwide leader in numbers of partners involved in the electrical distribution cycle, Schneider Electric’s mission is to integrate it into an ecosystem. Digitization will help to connect these fragmented channels into a single Power Ecosystem. Global reach with a unique local presence We have operations in more than 100 countries, providing a balanced global geographical exposure. Due to our large footprint, we are one of the few companies that can deliver the highest standards of technology and quality in energy management and automation, across all multinational customer operations around the world. This enables us to provide optimal services to our global customers, in every location. In addition, we are reinforcing our local presence and strong local partnerships in every country to serve our diffuse customer base. Lastly, with 41% of our revenues in new economies

in 2017, we believe we are well positioned to capture growth. Our presence in many diverse markets ensures that we understand local needs, which assists us in serving our customers in each country with dedicated products and solutions adapted to local requirements. Scale through our integrated and global supply chain Our Global Supply Chain integrates over 200 factories and more than 90 distribution centers in 45 countries, managing 261,000 references and processing 140,000 order lines/day. It has a strong focus on customer satisfaction and operational efficiency. Powered by EcoStruxure™ solutions, our Global Supply Chain continues to make significant progress in both areas and in 2016 Schneider Electric was included in Gartner’s Supply Chain Top 25 Ranking for the first time, as a clear sign of our achievements. Schneider Electric supply chain is engaged in continuous digital transformation to provide the best tailored customer experience while integrating sustainability at every step through greener and more efficient sites operating with EcoStruxure™.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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