SCH2017_DRF_EN_Livre.indb

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

5.2 Financing innovative start-ups In 2000, Schneider Electric created an investment structure called Schneider Electric Ventures to invest in high-tech start-ups whose innovations fit with the Group’s future development. In 2010, Schneider Electric Ventures became Aster Capital Partners with the launch of a new capital investment EUR105 million fund to finance innovative start-ups operating within the areas of energy, new materials and the environment, jointly subscribed by Alstom, Solvay and the European Investment Fund. In 2017, Aster raised EUR240 million to be invested primarily in Europe and the United States. Aster takes position as the leading venture capital fund dedicated to the energy transition. The mission of Aster is to purchase minority interests in innovative start-ups in the fields of energy and mobility based in Europe, Israel, North America and Asia. The scouting activities constitute a source of particularly productive partnerships and forge contacts with about 1,700 small and mid-sized businesses around the world each year. In 2017, a new investment was made, Habiteo (EUR2.5 million), joining the first 24 companies already in the portfolio, including Lucibel (FR), Iceotope (UK), Entouch Controls (US), OpenDataSoft (FR) and Ekwateur (FR). Aster has also recorded successful exits in 2017, notably with the IPO of Avantium and Digital Lumens (acquired by Osram). Managing a portfolio of partnership opportunities Habiteo – EUR2.5 million investment in November 2017 Habiteo is a sales and marketing solution for real-estate developers. It helps them sell their properties faster by generating sales content (3D models, video clips, etc.), and manage their workflow and sales process on different channels to ensure a high-quality customer experience. The company was created in 2014 by Jeanne Massa. It has continuously improved its solution and now supports more than 150 real estate-developers in their digital transformation.

Identifying emerging trends and technologies and delivering relevant inputs

Aster is in touch with start-ups on a daily basis. This gives Aster a unique perspective on emerging technologies, customer needs and new market segments. The work is shared at 3 levels: E by identifying emerging trends and weak signals which may have an impact on markets, customers and/or future Schneider Electric business, and sharing them on a regular basis with the leaders within Schneider Electric; E by introducing about 300 start-ups every year to Schneider Electric teams within relevant countries, businesses and corporate departments; and E by publishing market reviews that are presented to Schneider Electric teams. This year once again, about 15 relevant topics have been covered and shared within Schneider Electric. The Aster teams continuously improve the dedicated web platform that they have made available to all Schneider Electric employees to give them an exhaustive access to these resources, information and database. Business Incubation at Schneider Electric Schneider Electric and Aster have co-designed an active incubation model to bring additional innovation and growth drivers to Schneider Electric through ideas owned by its employees. This Business Incubation initiative will enable the creation of new businesses using business models and/or technologies which are not adjacent to current Schneider Electric business models or technologies. It’s a bold enterprise which will allow better management of the dichotomy between Schneider Electric’s performance focus and the risks associated with new ventures, notably by accepting VC-like success rates in a “fail fast” mode. Ultimately, the goal is to build new businesses which could assist Schneider Electric in the near future.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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