SCH2017_DRF_EN_Livre.indb

1 Overview of the Group’s strategy, markets and businesses Company history and development

4. Company history and development

History

4.1

From its beginnings in steel during the Industrial Revolution 180 years ago, to electricity and, more recently, energy management, the Group has undergone significant changes in its operations throughout its history.

A family business becomes a major player 1836: Brothers Adolphe and Joseph-Eugene Schneider take over an abandoned foundry in Le Creusot, France and, 2 years later, create Schneider & Cie, focusing primarily on the steel industry. Schneider & Cie grows rapidly, specializing in the production of heavy machinery and transportation equipment, and eventually becomes the Schneider Group, a diversified conglomerate. 1975: the Schneider Group acquires an interest in Merlin Gerin, one of the top manufacturers of electrical distribution equipment in France, involved in the electricity sector since 1920. The Group refocuses on the electricity sector 1981-1997: Schneider Group refocuses on the electrical industry by divesting its non-strategic assets, such as its public works company, Spie Batignolles. Schneider Group undertakes a series of strategic acquisitions: Telemecanique in 1988, Square D in 1991 and Merlin Gerin in 1992. 1999: Schneider Group acquires Lexel, one of Europe’s largest suppliers of installation systems and control solutions. In May 1999 the Group is renamed Schneider Electric, to clearly emphasize its expertise in the electrical field. A Strategic Transformation At the turn of the 2000s , Schneider Electric radically rethinks its growth strategy, setting itself 3 goals: E ensuring a more balanced exposure to its strategic end-markets; E enhancing its portfolio of historical operations (electricity distribution, automation and industrial control) with adjacent and synergetic businesses in order to boost its organic growth potential; and E anticipating the future energy requirements of companies and individuals. This strategy leads Schneider Electric to conduct a number of strategic acquisitions both in mature countries and in new economies targeting companies offering complementary products and solutions. l

1836-1980

1981-2001

SINCE 2000

From Power & Control to the Digital Transformation of Energy Management and Automation

4.2

Strengthening its leadership in low voltage distribution E We have been a long-time leader through our Merlin Gerin and Square D brands. E We have reinforced our Wiring Devices and ultra terminal offer with several acquisitions: Clipsal in 2003, OVA, Merten and GET in 2006, Marisio and Wessen in 2008. E We grew our portfolio in renewables conversion with Xantrex in 2008. E We grew our presence in new economies with the acquisition of Delixi in China, Conzerv in India (2009) and Steck group in Brazil (2011).

Building a global leader in medium voltage & grid automation E We have historically been one of the leading players in medium voltage electrical distribution products and equipment. E With the acquisition of Areva T&D (Areva’s medium voltage distribution division) in June 2010, we became world leader in medium voltage and grid automation. E In 2010, the Group acquired 50% of Electroshield-T Samara, a leading medium voltage company in Russia. In 2013, Schneider Electric acquired full ownership of this company, transforming Russia into a key market for the Group and turning Schneider Electric into a key player in the oil, gas and mining industry, as well as in the development of energy efficiency and the smart grid.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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