First, a big picture view of global trends over the last two years, then an analysis as to what this means to Schneider Electric customers in different geographies of the world.

1. Schneider Electric 1- Smart Infrastructure – Xperience 2013
Smart Grid Market & Trends
Rick Joyce
Director, Smart Grid IT - North America
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2. Schneider Electric 2- Smart Infrastructure – Xperience 2013
All countries have a different Energy equation to
solve but all with an increased role of electricity
Growing electricity demand:
-new economies: demography,
industrialization & urbanization
-mature economies: peak management
-new consumption modes (eg electrical vehicles)
Need to reduce CO2 emissions:
-Shift from high CO2 Energy to low CO2 electricity
-development of Renewable Energy sources
-focus on energy efficiency
Constraints on existing networks:
-limited generation capacity
-limits on network extension
(Not In My BackYard syndrome)
-aging infrastructure and assets
-integration of intermittent & distributed generation
Existing
Energy
mix
Low CO2
Electricity
High CO2
Energy
Energy
Equation
Smart Grid
is the answer
In Europe, Electricity almost doubling its share in final energy demand to 36-39% in 2050

3. Schneider Electric 3- Smart Infrastructure – Xperience 2013
Recent events have complicated the equation
and balance of electricity “supply and demand”
is becoming even more difficult
● Fukushima
Public reaction to Fukushima in specific geographies (Japan, Germany) is driving an increase in
Renewable, Natural Gas, Energy Efficiency, Distribution Management
● EV slower than expected
Continuing high cost of EV, reduction of subsidies, questions on reliability, etc., all slowing down EV
rollout
● Crisis desensitized CO2
Fiscal austerity and negative growth have pushed societal priorities away from CO2 and reduced
carbon credit prices in Europe
● Smart Metering pushback
In Europe and US, consumer reaction to smart meter rollout is reflected in regulatory difficulty in
utilities getting approval on AMI cost recovery and slowed overall implementations
● Renewable coming strong in Europe
Backing away from nuclear and high oil prices continues to support and push renewable integration in
Europe to very high levels
● Shale gas technology and reserves have made natural gas very cheap
This puts pressure on the advancement of renewables and DR as they have to compete economically
with natural gas generation

4. Schneider Electric 4- Smart Infrastructure – Xperience 2013
Recent events have complicated the equation
and balance of electricity “supply and demand”
is becoming even more difficult
● Fukushima
Public reaction to Fukushima in specific geographies (Japan, Germany) is driving an increase in
Renewable, Natural Gas, Energy Efficiency, Distribution Management
● EV slower than expected
Continuing high cost of EV, reduction of subsidies, questions on reliability, etc., all slowing down EV
rollout
● Crisis desensitized CO2
Fiscal austerity and negative growth have pushed societal priorities away from CO2 and reduced
carbon credit prices in Europe
● Smart Metering pushback
In Europe and US, consumer reaction to smart meter rollout is reflected in regulatory difficulty in
utilities getting approval on AMI cost recovery and slowed overall implementations
● Renewable coming strong in Europe
Backing away from nuclear and high oil prices continues to support and push renewable integration in
Europe to very high levels
● Shale gas technology and reserves have made natural gas very cheap
This puts pressure on the advancement of renewables and DR as they have to compete economically
with natural gas generation
Events over the past 2-3 years have
“super regionalized” smart grid
solutions, so that we must be very careful
to understand local needs.
An ADMS can do volt/var control required
in North America, or renewable integration,
required in Europe, but these are very
different requirements and we will need to
be very focused on customer need.

5. Prioritization of Smart Grid
Development varies with regions
of the world

6. Schneider Electric 6- Smart Infrastructure – Xperience 2013
Transmission overload
& aging infrastructure
• Blackouts
• Critical peak situations
• Price volatility
• Cyber-security issues
Transmission overload
& aging infrastructure
• Blackouts
• Critical peak situations
• Price volatility
• Cyber-security issues
Growing energy
demand… and losses
• Critical peak situations
• Energy theft
Growing energy
demand… and losses
• Critical peak situations
• Energy theft
Growing energy demand
• Growing consumption
• Transmission congestion
• CO2 emissions
Growing energy demand
• Growing consumption
• Transmission congestion
• CO2 emissions
Deregulation & Dist
Generation
• Competition for supply
• Integration of
Renewable
Energy sources
• Increasingly constrained
networks
Deregulation & Dist
Generation
• Competition for supply
• Integration of
Renewable
Energy sources
• Increasingly constrained
networks
Regional priorities for the Smart Grid
Distribution infrastructure
modernization
• Growing consumption
• Energy theft & losses
• Generation & Transmission
modernization
Distribution infrastructure
modernization
• Growing consumption
• Energy theft & losses
• Generation & Transmission
modernization
• Demand Response
• Distribution Automation
– Volt/Var Control
• Energy Efficiency
• Distribution
Automation
• Renewable
Integration
• Energy Efficiency
• EV Management
• Energy Efficiency
• Rural microgrids
• Distribution Automation
• AMI
• Demand Response
• AMI
• Distribution Automation
• Renewable Integration
• EV Management
• Distribution Automation
• Substation Automation
• AMI
• Energy Efficiency

7. Schneider Electric 7- Smart Infrastructure – Xperience 2013
Regional Smart Grid Priorities & Momentum
●Distribution Automation – from Telvent
●Demand Response
●Energy Efficiency – Buildings and Industry
●EV
●Smart Home
We have here List Key applications globally
We can group them in domains
Smart metering
2012

8. Schneider Electric 8- Smart Infrastructure – Xperience 2013
Industry
Buildings
Data Centres
Infrastructure
Residential
Electric Vehicles
& Energy Storage
Key Domains and key Applications of the
Smart Grid (GREEN = Key for SE)
Efficient Home
• Home Energy management
• Smart Metering
• EV infrastructure
• Storage
Efficient Enterprise
• Energy Management Services SG subset
• Energy Efficiency solutions
• EV infrastructure
• Smart Metering
• Storage
• Private microgrids
Smart Generation
• Centralized, Decentralized
• Fossil, Nuclear, Renewable
• Equipments, Integration, Services
Flexible Distribution
• Dist Automation (incl. GIS, ADMS, etc.)
• Sub-station Automation (incl Prot. Relays)
• Asset Management
• Feeder Automation
• EV infrastructure Management
• MDM / AMI / Smart Metering
• Public Microgrids
Demand Response
• Demand Response as Aggregator
• Supply and Demand side consulting
•Technology Solutions (EPO, etc.)
Transmission
• HV DC/AC
• Transmission automation
• Transmission SCADA
Electricity Trade
• Electricity Trading
• Market aggregator
Technology providers
• IT integrators
• Technology IT & Communication providers

9. Schneider Electric 9- Smart Infrastructure – Xperience 2013
Market Projections:
Estimates of the size of the smart grid market vary significantly depending on
the definition and scope used by the analyst, but it’s BIG by all measures.
Excluding demand side markets and renewable integration, most analysts put
the 2015 – 2016 market between 50B€ to 100B €.

10. Schneider Electric 10- Smart Infrastructure – Xperience 2013
Pike Research Markets by Application
In our areas of applications, Distribution Automation and Demand Response are
forecast to have the highest growth.

11. Schneider Electric 11- Smart Infrastructure – Xperience 2013
Transmission Distribution
Centralised Generation
Industry
Buildings
Data Centres
Infrastructure
Renewable Energy Plants
Residential
Electric Vehicles
& Energy Storage
Distributed GenerationDistributed Generation
Energy
producer
Energy
producer
Energy
producer
Distribution
Network
Operator
Transmission
System Operator
Energy
Supplier
Energy traders
& aggregators*
Active
end-users
Government & Regulator
Technology providers: traditional players (EE solution and utility providers),
communications/networking/data management suppliers, IT enterprise integrators, niche players
Facility
managers
Smart Grids bring together many players,
traditional and new…

12. Schneider Electric 12- Smart Infrastructure – Xperience 2013
… leading to a complex competitive environment
Customers (utilities, end-
users…) will be looking for
providers that can help them
manage this complex Power +
IT mix.

13. Schneider Electric 13- Smart Infrastructure – Xperience 2013
Transmission Distribution
Centralised Generation
Industry
Buildings
Data Centres
Infrastructure
Renewable Energy Plants
Residential
Electric Vehicles
& Energy Storage
… with new business models that are still
evolving…
Distributed GenerationDistributed Generation
Energy
producer
Energy
producer
Energy
producer
Distribution
Network
Operator
Transmission
System Operator
Energy
Supplier
Energy traders
& aggregators*
Active
end-users
Government & Regulator
Technology providers: traditional players (EE solution and utility providers),
communications/networking/data management suppliers, IT enterprise integrators, niche players
Facility
managers
Performance
Contracting
Cloud-based
Software as a
Service billed
monthly
BAS
Partnering with
Supply side to
Serve end users
EE Services
mandated
and audited
by regulators
Aggregators
Use demand side
load to compete
with generators

14. Schneider Electric 14- Smart Infrastructure – Xperience 2013
… where success in Smart Grid requires an
“Integrated IT&OT Strategy”
14
Smart
Meters
Feeder
Automation
Condition
Monitoring
Substation
Automation &
Protection
Intelligent
Network
Devices
TRANSMISSION
SCADA
NEW DMS SMART GRID SCADA
FOR 10 MILION POINTS (OASyS)
AMI HEAD-END
(LV SCADA)
ERP
GIS
ArcFM
ESRI
CIS IVR
Smart Consumption
Residential
Loads
Energy
Storage
Electric
Vehicles
Industrial
Loads
Smart
Home
Demand
Response
Solar Panel
Building
Intelligence
Smart Generation
Concentrate
d Solar
Power
Electric
Vehicles
Wave
Power
Small Hydro
Wind
Bio/Geo
Thermal
Energy
Storage
Photovoltaic
INTEGRATED DATA CENTER
TIME (SERVICE) BUSINTEGRATED REAL
Distribution
Management(
DMS)
Outage
Management
(OMS)
Demand Side
Management
(DSM)
Meter Data
Management
(MDM)
Energy
Management
(EMS)
SERVICE BUSCORPORATE ENTERPRISE

15. Schneider Electric 15- Smart Infrastructure – Xperience 2013
We are now regarded as a leader in a very
competitive and changing environment
“SCHNEIDER ELECTRIC AMONG TOP 10
FIRMS TO WATCH IN 2012”
(GreenTech Media)
“The majority of the firms included on our 'Top 10 Vendors
to Watch' list are young companies that have aspirations to
claim a greater share of the smart grid pie. The two
exceptions are French industrial giant Schneider Electric
and U.S.-based Verizon.”
Recent Quotes from Brokers and Specialized Press
“We see Schneider Electric as ONE OF THE
BEST-EXPOSED COMPANIES to Smart Grid
through its Energy and Power divisions.”
(Goldman Sachs, 2011)
“Schneider's long track record in serving electricity end
users will give it a first mover advantage in Demand
Response, in our view.”
received the HIGHEST POSSIBLE RATING
for its Advanced Distribution Management System”
2012 & 2013 Gartner report on
Distribution Management Systems
“The implementation of smarter grids
should further boost the group’s profile in
the next decade. We believe that
SCHNEIDER WILL FULLY BENEFIT from
the development of the Smart Grid.
(Societe Generale, 2012)
“Schneider is well positioned to help optimise
interconnections between electricity producers and
consumers as involved in both the supply side
(medium voltage and distribution automation) and
demand side of the grid (building and home
automation).”
“We estimate that 18% of group sales should
directly and indirectly benefit from the deployment of
smarter grids (including the group’s home and
building automation businesses), with a CAGR of
9% over 2010-2020.”