Schneider Electric in the US Aamir Paul SVP US Business Operations - - PowerPoint PPT Presentation

Confidential Property of Schneider Electric | Page 1

Aamir Paul

SVP US Business Operations

Schneider Electric in the US

Agenda

Page 2 Investor Relations - Schneider Electric

US Business overview Growing with key market trends Strength in our core business

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Schneider Electric US @ a glance

Corporate offices Manufacturing facilities Distribution centers Design centers Field / Sales offices

• Key US sites

Boston; Nashville; Dallas; Chicago; West Kingston, RI

• ~19,000 employees
• 22 Manufacturing Facilities
• 225 Locations

Nationwide Business Reach and Local Capability

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Schneider Electric has a long US history

1902 McBride Manufacturing Company Established in Detroit 1917 1955 1991 Square D Safety Switch (1917) QO Circuit Breaker(1955) 2007 2004 2011 2014 2017

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North America is a large and complex market

US states vs country GDPs

We have a history of growth in North America

North America, a balanced exposure

Energy Management Industrial Automation

Split by core technologies

(FY17 revenues)

Split by end-market

(FY17 orders – Non GAAP estimate)

• Resi. & Non-Residential

Industry Infrastructure IT & Networks

A history of growth over the past decade (Revenues, €bn) +40%

North America

And more recently over the past 12 months

c.+7%

Organic growth in North America over past 12 months 2007 2017

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Our US organization is set up to serve our customers and grow

US LEADERSHIP Technologies Market Access

National Sales Force Strategic Account Leaders Channel Partners

Key Functions

Finance Strategy Human Resources

Strong leadership delivering across Markets, Technologies & Functions

R&D Digital Global Supply Chain Marketing Government / Regulatory Affairs Energy Management technologies Industrial Automation technologies

Supply chain Human resources Sustainability

Awards and recognition

2017 Gartner Supply Chain Top 25: Europe Top 15 2017 Gartner Supply Chain Top 25

Agenda

Page 9 Investor Relations - Schneider Electric

US Business overview Growing with key market trends Strength in our core business

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We have strong competitive positioning in the US

▪ Leading portfolio combining Energy Management and Automation Technologies ▪ Powerful brands – ▪ Strong Channel-To-Market / Partner relationships ▪ Deep presence in key markets – Data Centers, Residential, Healthcare, Infrastructure ▪ Growing faster through Innovation – products, solutions & software ▪ EcoStruxure solution driving digital transformation and energy optimization

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We have strong positions across our US markets in Energy Management and Industrial Automation

We are well positioned to benefit from emerging market opportunities

Innovation + Digital deployment + Segment expertise + Cross- selling + Grow services

We continue to build & invest in

• ur strong core business

Smart homes and buildings + Electric Vehicle (EV) adoption + New Energy landscape + Massive Data Growth + Industry of the future

Residential & Non-Residential Industry IT & Networks Infrastructure

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Our value chain has many layers with nuanced strategies

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Resellers / Distributors become a trusted adviser Partner with empower 3 2 1

Contractors Integrators OEM VAR

Service Providers / Intermediaries

CDW Logo

Driving ecommerce and digital transformation with all our strategic partners

Well positioned with brand, relationships and offers Well positioned with brand, relationships & offers

End Users

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Strength of Industry Specialist Program

• Creating local network of solution providers who share Schneider Electric’s key values
• Helping them become trusted advisors for their end-user / OEM customers so they are

viewed as preferred source for automation and control products and solutions Customer Pillars

• Inventory availability

and delivery capability to the customer

• Technical competence

to support the customer

• Market knowledge of

customer’s business

Distributor Pillars

• Market differentiation of the

distributor

• Assistance in the distributor’s

demand generation activities

• Assurance of the distributor’s

return on investment in the automation and control business

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US Process Automation Business

• Service growth by modernizing large installed base
• Broad portfolio (systems, products and services) to leverage investments in petrochemical/chemical

and shale gas/oil markets

• Strong digital offering that helps clients improve profitability

GTM Model

Key segments

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Aveva combines the asset and operations life cycles

ASSET PERFORMANCE MONITOR AND CONTROL ENGINEER PROCURE CONSTRUCT OPERATE AND OPTIMISE PLAN AND SCHEDULE

Complete digital definition across all elements of design, engineering, construction and production

• perations

Complete digital definition and

• rchestration of all elements

across production operations ASSET LIFE CYCLE

IMPROVE RETURN ON CAPITAL

OPERATIONS LIFE CYCLE

IMPROVE PROFITABILITY

Digitizing the Value Chains

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Strong presence in key customer segments

Healthcare Data Centers Residential

100% exclusive with #1 and #6 builders in the country

Infrastructure

1st USGBC PEER Platinum Project

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Transforming to a complete Digital Customer Experience

Goal is to drive a seamless, connected, and effortless omnichannel customer experience

SPECIFICATION

Increase specification and opportunities through Building Information Modeling

INFLUENCE

Grow traffic and leads through more precise digital marketing

PURCHASE INSTALL/ SUPPORT

Gain efficiency through digitized customer care

LOYALTY

Create business

• pportunities and

stickiness via digitized partner relationships

• Partnership with

& other software vendors

• Embed where our

customers are

• Marketing automation
• Search Engine

Optimization

• Personalization

driving satisfaction

• Social listening
• Crowdsourcing
• Commerce connector
• Selectors, world-class

data — seamless purchase experience

• Artificial Intelligence
• Video FAQs
• Guided self-service

chat

• Forums
• Mobile
• Online certification,

marketing / lead sharing, and loyalty programs to drive partner growth

• Activate via communities

and third-party services Business value realization Expand sales through e- commerce enablement

One example of our digital transformation

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We have strong positions across our US markets in Energy Management and Industrial Automation

We are well positioned to benefit from emerging market opportunities

Innovation + Digital deployment + Segment expertise + Cross- selling + Grow services

We continue to build & invest in

• ur strong core business

Smart homes and buildings + Electric Vehicle (EV) adoption + New Energy landscape + Massive Data Growth + Industry of the future

Residential & Non-Residential Industry IT & Networks Infrastructure

Well-positioned to benefit from emerging trends - leveraging strong positions in key markets

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Driving Edge datacenters and demand for LV/MV/SP offers Supported by EcoStruxure and Wiser platforms Driving demand for Microgrids, ESS, ASCO & rest of portfolio Emerging trends Driving demand for EcoStruxure for plant and machine Opportunities for LV/ MV/ ASCO / EV charging Massive Data Growth Smart homes and buildings New Energy Landscape Industry of the future Electric Vehicle (EV) adoption

Agenda

Page 20 Investor Relations - Schneider Electric

US Business overview Growing with key market trends Strength in our core business

We help customers carry out their digital transformation thanks to our EcoStruxureTM architecture and platform

IT Advisor™

Screen

Resource Advisor

Screen

“Energy is a major cost component for Hilton Worldwide. It’s the second largest expense to labor.”

Apps, Analytics And services Edge Control Connected Products

14.5% energy savings since 2009

Hilton Downtown Atlanta utilizes EcoStruxure Resource Advisor to manage energy usage

Thomas Webster, Director of Strategic Sourcing Energy Management, Hilton Worldwide

Automation Server Room Controllers EcoStruxure Resource Advisor EcoStruxure Building Operation Guest Room Management System Integration with Property Management System

#DigitalEconomy | @AamirPaul1

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Hilton Worldwide

One of the top three chains in the world

Washington, DC (HQ)

For Hotels

University of Pennsylvania Medical Center

Digital infrastructure for the hospital of the future

Philadelphia, Pennsylvania

#DigitalEconomy | @AamirPaul1

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“We’re building a hospital that will allow us to deliver the very best care the 21st century can

• ffer patients –but we’re also ‘future-proofing’ it to ensure that we can quickly and seamlessly

adapt what we do to help our patients in the coming decades.”

for Building

Apps, Analytics And services Edge Control Connected Products

Largest capital project in campus history Low Voltage CAPEX Savings up to 5% Future-ready hospital, flexible and upgradable through next 15-20 years

• J. Larry Jameson, MD, PhD, Hodean of the Perelman School of Medicine

EcoStruxure Building Advisor EcoStruxure Asset Advisor

EcoStruxure Power Monitoring Expert EcoStruxure Building Operation QED2 Switchboards PowerLogic Switchgear I-line Busway

A clear strategy for superior performance

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Superior performance

Strong Attributes

▪ Leading portfolio of energy efficiency and automation technologies ▪ Powerful brands ▪ Strong Channel-To-Market / Partner relationships ▪ Deep presence in key markets ▪ Strong innovation and digital capabilities

Clear Focus

▪ Segment expertise ▪ Cross- selling ▪ Grow services ▪ Innovation ▪ Digital deployment ▪ EcoStruxure

Well positioned for emerging trends

▪ Smart homes and buildings ▪ EV adoption ▪ New energy landscape ▪ Massive data growth ▪ Industry of the future

Our technologies ensure that everywhere, for everyone and at every moment.

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