SCH2017_DRF_EN_Livre.indb

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Overview of the Group’s strategy, markets and businesses Organizational simplicity and efficiency

E Specialization: In each country, each local sales force is organized under local Business VPs as soon as it reaches critical mass. The aim is to deploy specialized front office per business in each host country to respond more effectively to customer demand for specific expertise. Each business is also responsible for its overall results, both for product sales (in its business lines) and the implementation of solutions (especially for end-market segments within its scope). As projects can consist of products coming from different business units and in order to define a single point of contact for customers, each business unit is responsible for projects in certain defined end- markets. Business efforts have focused on implementing and strengthening existing teams dedicated to meeting the specific needs of these strategic customer segments with a strong focus on the collaboration between the business lines, in order to ensure these customer’s needs are met as fully as possible. E Mutualization: The business is organized around Organizational Regions: North America, China, France, Europe (which is comprised of 6 international zones: United Kingdom & Ireland, Northern Europe, Italy & CEEI, CIS, DACH, Iberian) and International Operations, which is comprised of 5 international zones (South America, East Asia & Japan, Middle East and Africa, India, and Pacific). Each of these regions has empowered Zone Presidents and Country Presidents, which are appointed in each country to be the custodians of 4 businesses in their countries: Industrial automation, Medium voltage, Low voltage and Secure power , including Field Services. In addition, they are responsible for monitoring the full transversal P&L of the country, deploying Schneider Electric’s strategy in the country (including all local cross-functional topics such as increasing cross- selling among businesses) and pooling the local back-office resources. These resources are gradually brought together in each country or region under the Zone or Country President’s supervision and can include multiple local support functions ranging from administration to project execution, depending on the situation. In addition, the Zone and Country President serves as the mutualization driving force and Schneider Electric’s main representative in the country, most notably in dealings with employees and local officials.

E Globalization: Major support functions that are not specific to a given country or business are globalized to increase experience and leverage a significant scale effect around cost and service. Manufacturing and Supply Chain operations, areas of shared services or expertise (such as Finance and Human Resources), Strategy, Digital (including information systems) and Global Marketing functions are now included within the Global Functions. The global Supply Chain continues to focus on the areas of global productivity, customer differentiation and customer satisfaction. Globalization concerns the 6 support functions, now known as Global Functions: E Finance; E Marketing;

E Global Supply Chain; E Human Resources; E Strategy; E Schneider Digital. Schneider Digital

To operationalize and accelerate our digital transformation journey, Schneider Electric launches the new Schneider Digital organization. Schneider Digital unifies our transversal activities under 1 organization: Information Process & Organization, Internet of Things, Digital Transformation as well as Digital Customer Experience, which is jointly led with Global Marketing. Under the Schneider Digital organization, there are 6 practices fully responsible for architecting and delivering their own set of end-to-end capabilities, platforms and programs to reach our desired business results: IoT & Digital Offers, Digital Customer Experience, Digital Engineering, Digital Sales & Support, Digital Data Hub, and Enterprise IT. The 6 practices are supported with transversal functions with transversal governance roles: Digital Architecture, Digital Convergence and M&A, Finance and Digital Portfolio, Digital Security, Digital Alliances & Ecosystems, Digital Transformation & Stakeholder Communities, and Executive Governance.

Geographic dimension and legal structure The Group’s goal is to establish, wherever possible, a single legal structure in each country. Schneider Electric’s simplified legal organization chart is as follows:

Schneider Electric SE

Operational companies

Schneider Electric Industries SAS

Boissière Finance

The list of consolidated companies is provided in note 32 to the consolidated financial statements. Boissière Finance is the Group’s centralized cash-management structure; it also centralizes hedging operations for all subsidiaries.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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