SCH2017_DRF_EN_Livre.indb

1 Overview of the Group’s strategy, markets and businesses Research & Development

3. Leverage R&D competencies in line with the R&D footprint diversity; 4. Introduce lean and agile methodologies to the traditional Offer Development Waterfall Process; 5. Evolve the current Offer Introduction Process to the Winning Offer Launch Process; 6. Practice open innovation with start-ups, universities and collaboration with partners; 7. Ensure consistency with respect to data, in all EcoStruxure™ domain architectures. These findings will be used to improve the way we perform R&D at Schneider Electric in the years to come. PowerTag is the first solution in the world which gives the facility manager or electrician the ability to make their electrical panel digital within 30 minutes. This product, which is now launched worldwide, offers huge flexibility and simplicity, making it unique and cost effective. This is the only accurate energy sensor that is self-powered and wireless communicating. It can easily be added to any miniature circuit breaker (MCB), not only to monitor the energy consumption and but also to track critical equipment. In a world where we must deliver more decarbonized and more reliable energy, PowerTag opens the door for a new world of digital opportunities. We can now connect all types of buildings and infrastructure sites to the Schneider EcoStruxure™ digital platform easily. And thanks to PowerTag, residential panels are also becoming digital, solar-ready and EV-ready. Schneider Electric EcoStruxure™ Fire Expert is a new online application capable of creating a totally new, recurring revenue stream in the fire detection business. Being totally a digital software offer, the profit level is much higher than with traditional fire detection offers. This online application is based on Value Stream Mapping, giving unique value to most of the people involved in the fire detection system lifecycle. This is a game changer in this industry, by offering subscription based system extensions (licenses). There have also been digital innovations in the ‘Wiser’ line of products with the introduction (in certain countries) of Wiser Light connectable switches, dimmers, and relays, Wiser Door connected door entry systems and Wiser Heat boiler control and radiator control for multi-room heating systems. Schneider Electric has also introduced Sequence 5, a luxury range including connectivity capabilities. Other offers include new innovations in AvatarON and Odace, which all enable connectivity. In Enclosures, last year the Group invented Derbe, a power control center for distributed energy resources in buildings. It is scalable and future-ready, providing smart and optimized power and energy management to achieve your savings, sustainability and resiliency goals. A new busway connectivity system was also launched with

During 2017 the Group launched numerous innovative offers across its Businesses: Industrial Automation (Industry), Medium Voltage (Infrastructure), Low Voltage (Building) and Secure Power (IT). There is a clear value proposition that is now built around our 6 EcoStruxure™ domains. All the EcoStruxure™ domains were showcased during our Innovation Summit, in Hong Kong, in September 2017. Several technology leaders participated in a workshop on how R&D can innovate faster and better. They concluded the following: 1. Ensure customer intimacy and insights are a part of the R&D culture; 2. Improve accountability through improved project management and governance; Delivering truly innovative solutions The advances mentioned above generate innovation across market segments, all the way from residential to smart cities, as illustrated in these few examples. Buildings Schneider Electric keeps innovating and investing in the traditional core of its business. In 2017, a very disruptive Air Circuit Breakers offer was introduced. The new Masterpact MTZ is the first ever IoT Air Circuit Breaker, combining legendary reliability with unpreceded robustness to adapt to harsh environment with a set of new advanced functionalities enabled by digitization. In particular, the Masterpact MTZ embeds certified class 1 energy metering, which is making it unique in its category. Natively Ethernet connected, it simplifies the electrical installation, optimizing uptime and reducing operations costs, which is very well adapted to critical applications. This offer is a key pillar of EcoStruxure™ Power, enabling edge connectivity and apps/analytics service offers. It is completely future ready thanks to its digitally modularity: it can be upgraded and enriched at any time in the life of the electrical installation, thanks to downloadable digital modules adapted to each end-user application. In 2017 Schneider Electric also introduced a new platform of molded case circuit breakers (MCCB)’s, deployed as Compact NSXm in IEC markets and PowerPact B in UL/CSA/NEMA markets. This new range offers the best performance versus size ratio on the market and full discrimination with Compact NSX and Acti9, confirming the leadership of Schneider Electric on the core values of Electrical Distribution. Their Everlink Power connections are patented, ensuring cost effective and safe connection thanks to creep compensation. The range is introduced with a complete range of accessories covering all types of applications and mounting modes. It also includes a unique version with built-in Earth Leakage protection up to 160 A. This new range integrates perfectly in all Schneider Electric switchboard designs (Din Rail mount ready) enabling space saving up to 25%. PowerPact B and Compact NSXm are very suitable for building, industry, machine, infrastructure and data center applications. 5.1

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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