SCH2017_DRF_EN_Livre.indb

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

Transformations through Company Programs

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Schneider Electric’s company program At Schneider Electric, we deploy strategy through a structured framework called our Company Program. Our Company Program comprises 5 pillars: Do More, Digitize, Innovate, Step Up and Simplify,

which provide all employees with visibility of our annual and long- term priorities. Under each of the pillars is a set of broad transversal transformations that help Schneider achieve growth for our company and customers.

DO MORE

DIGITIZE

INNOVATE

STEP UP

SIMPLIFY

Create more opportunities for our customers and for ourselves

Digitize for our customers, for efficiency and simplicity

Surprise our customers with innovation, to make their lives simpler and better

Our customers get great service because great people work at Schneider

Simplifying our work makes the difference to customers

Schneider Electric’s company program shows strong results 2017 marked the third year of the Group’s current company program and showed strong positive results. The Group met most of the targets set with several major milestones being achieved. Within our Do More initiative E More products: product revenues up +4.3% in organic terms FY17, with 100+ launches in 2017. E More software: industrial software sales are stable with Q4 slightly up. The transaction announced with AVEVA provides a single software portfolio across the asset lifecycle for continuous & hybrid processes. E More services: High single-digit growth in FY17 orders; +6% organic growth in Q4 revenues Within our Simplify initiative E Accelerated efficiency through around €650 million in gross support function cost reduction plus industrial productivity in 2017 (around €1.9 billion since 2015). Within our Digitize initiative E The number of connected assets increased +25% vs. 2016. E Unique connected customers doubled vs. 2016. Within our Innovate initiative E The Planet and Society Barometer exceeded the 2017 target, with a score of 9.58/10. Sustainability has been recognized externally through numerous awards for our long-term commitment to environmental dimensions. E Numerous launches of products, control platforms and software within the EcoStruxure architecture.

1. Do more for customers to create more opportunities for them, and for Schneider Electric This initiative aims to bring more value to customers and business to partners, more products and services, better systems, and a sustainable and connected supply chain. To continue to drive growth, the initiative also focuses on launching new innovative offers, increasing the effectiveness and impact of marketing spend, and increase market influence under the Sales and Marketing transformation. 2. Digitize for customers, for efficiency and simplicity With EcoStruxture as a platform, the aim is to accelerate and scale the digital journey, generating new customers, channels to market, offers, and sources of revenue. The Group’s offers will be more connected, enabling new services and improving its customers’ life. The digital customer experience will be improved to deliver an end-to-end, simple and intuitive partner and customer experience. 3. Innovate to support growth and sustainability The innovate initiative will focus on delivering the right products and solutions for customers in a focused and short timeframe. In addition, Schneider Electric will remain a partner of choice in sustainability, in its innovations and its operations, and will continue to measure its progress through the Planet & Society Barometer 2015-2017. 4. “Step Up” people to make Schneider Electric a great place to work This initiative focuses on increasing the competency of Schneider Electric employees through stronger collaboration, enhanced training and a culture of high performance while continuing to have a strong commitment to diversity and workplace satisfaction. 5. Simplify operations for increased efficiency Simplifying work and operations makes the difference to customers. The Group aims to simplify its management setup to make the company leaner, further increase supply chain productivity, optimize R&D efficiency and solution execution and increase sales force efficiency.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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