Schneider Electric CEO, Jean-Pascal Tricoire introduces Schneider innovation at every level redefining power and automation for a new world of energy which is more electric, decarbonized, decentralized and digitized ensuring Life Is On everywhere, for everyone and at every moment.

1. INNOVATION
SUMMIT
2016

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

3. Energy is the base of life.
when Energy is on......
We ensure energy is on by making it
• Safe
• Reliable
• Efficient
• Sustainable
• Connected

4. DIGITIZATION
50Bconnected things
by 2020
Source: Cisco
URBANIZATION
+2.5Bpeople in cities by
2050
Source: United Nations, DESA
INDUSTRIALIZATION
+50%Energy consumption
by 2050
Source: IEA
Megatrends are provoking
a rise in Energy Demand

5. billion more have unreliable and intermittent supply of electricityAnother
Source : IEA, Economist
billion people currently do not have access to electricity

6. We believe access to energy is a
BASIC HUMAN RIGHT
…and the present way of managing energy is
UNSUSTAINABLE

7. Our Challenge in
the next 40 years
WE HAVE TO
BECOME 3 TIMES
MORE EFFICIENT
3x
Note: Forecast for 2050 compared to 2009 levels
2C02 EMISSIONS
NEED TO BE
HALVED
x1.5ENERGY
CONSUMPTION

8. More
ELECTRIC
More
DIGITIZED
More
DECARBONIZED
More
DECENTRALIZED
We have an opportunity to co-create the future

9. Global energy consumption will increase by 40% in the next 25 years
MORE ELECTRIC

10. Index
(2012=100)
200
180
160
140
120
100
80
60
40
20
0
2000
Source : IEA, WEO 2014, New Policies Scenario
2005 2012 2020 2025 2030 2035 2040
Electricity Demand
Total Final Energy
Consumption
...and electricity consumption will increase by 80%

11. MORE DIGITIZED and MORE DECARBONIZED
Connected from Plant to Plug with demand side active
energy and grid efficiency

12. Making Demand CONNECTED and EFFICIENT
Billion
50
40
30
20
10
2003 2010 2015 2020
Connected Devices
Connected People
Source : Cisco, Internet World Statistics
INTERNET OF THINGS

13. Making Demand CONNECTED and EFFICIENT
ACCELERATION
Driven by pervasive penetration of
MOBILITY & ANALYTICS

14. Making Demand CONNECTED and EFFICIENT
ACCELERATION
Driven by pervasive penetration of
MOBILITY & ANALYTICS
SOFTWARE &
ANALYTICS
AUTOMATION
ENERGY

15. Making Demand CONNECTED and EFFICIENT
ACCELERATION
Driven by pervasive penetration of
MOBILITY & ANALYTICS
CONVERGENCE
IT
OT
ENERGY &
PROCESS
OPTIMIZATION

16. Unrealized
Potential
Realized
Potential
58%
42%
Industry
79%
21%
Infrastructure
82%
18%
Buildings
Source : World Energy Outlook 2012, OECD / IEA, Internal analysis
We have massive untapped efficiency potential

17. Unconnected buildings lead to inefficiency
Traditional vs Connected Building Energy Profiles
Mon Tue Wed Thu Fri Sat Sun
40%
20%
Energy Consumption
kWh
-30% Average Traditional
Building
Building with
active EE
Average consumption
of a traditional building
Average consumption
of a EE active building
÷2
÷4
Improved Energy Performance
2008 2009 2014
74
320 Old HQ in Traditional
Buildings
BMS
150
300
250
300
150
100
50
3000 sensors capture data within Le Hive building with a network of 173 power metering
units ( vs 1 in traditional buildings ) and measure energy consumption
Energy Performance of The HIVE , Schneider Electric Headquarters in Paris
Monitoring
& Control

18. Distributed
Generation
Energy
Storage
Micro Grid
MORE DECENTRALIZED
Integrating intermittent generation & leveraging microgrid flexibility

19. Solar PV LCOE ($MWh)
Li-Ion Battery Costs ($/kWh)
Declining cost
of Renewables
and Storage
1200
700
200
20102009 2011 2012 2013 2014 20162015 2017 2018 2019
Source: Lazard 2014, BNEF 2014

20. +305GW +436GW
Renewables
Account for
~70%
of new capacity
additions by
2040
Solar
Wind
Other Renewable
Fossil
Nuclear
Flexible *
*Power storage, Demand response and
other potential sources
Source: BNEF

21. Declining cost
of Renewables
and Storage
Opportunities In
SOLAR
ENERGY
STORAGE
MICRO-GRIDS
GRID AUTOMATION
SMART GRID
Renewables
Account for
~70%
of new capacity
additions by
2040

22. More
ELECTRIC
2Xfaster growth of
electricity demand compared to
energy demand by 2040
Source : IEA WEO 2014 Source : Cisco, Internet World Statistics
More
DIGITIZED
20Xmore incremental
connected devices than
connected people by 2020
More
DECARBONIZED
82% of the economic
potential of energy efficiency in
buildings and more than half in
industry, remains untapped
Source : World Energy Outlook 2012,
Internal Analysis
More
DECENTRALIZED
70% of new capacity
additions will be in Renewables by
2040
Source : BNEF
We have an opportunity to co-create the future

23. ServesSchneider
Electric
SOFTWARE &
ANALYTICS
ENERGY
AUTOMATION
world energy
consumption
>30%
~2%
>30%
Building & Residential
Data Centers & Networks
Industry
Infrastructure
70%
Source: World Energy Outlook 2012,
OECD / IEA, Internal analysis
Massive Untapped
Efficiency Potential
>82%Buildings
~58%
Industry
~79%
Infrastructure
Markets

24. ~ 5%
of revenues devoted to R&D
~160K+
people in 100+ countries
Schneider Electric, the Global Specialist in
Energy Management and Automation
€26.6Bn
FY 2015 revenues

25. ...with Balanced Geographies
FY 2015 Revenues
Asia Pacific Rest of the world
27% 26% 29% 18%North America Western Europe

26. ...with Diversified End Markets
21%14% 45% 20%
Datacenter & Networks Building Infrastructure Industry
FY 2015 Revenues

27. …and accelerated 3Xinvestment to Innovation
800
1200
400
M€
600
1000
200
0
1400
2000 2015
~5%of sales devoted to R&D
20,000Patents active or
in application worldwide
20,000+
R&D & Solution Engineers
• 10,000+ Solution Engineers
• ~5,000 Software Engineers
--- R&D Spend over 15 Years ---

28. Aster Capital Fund
Demand response,
software breakthrough
Funding
start-ups
for Intelligent Buildings,
Renewables, Homes,
Smart Electricity, Green Grid
& Data Centers
Leading
Global Projects
Standards &
Protocols
Supporting
Interoperability
Best-in-class
Public & Private Organisations
and start-ups
Partnering
with 50+
...working with a strong ecosystem of partners

29. Easy access to information
Awards and Recognitions
Superior transparency
A guarantee of compliance
...striving for Sustainability for our customers and planet

30. 5INNOVATION
PRINCIPLES
System View
Digital
Quality 1st
Customer Focus
Simple & Easy

31. VALUE
INNOVATION
FOR

32. 20151960s
Prisma SystemMulti 9 Acti9 Premset Altivar™Compact TesysMasterPact
Safety Safety
Symmetra Megawatt UPS Galaxy UPSISX

33. 20151960s
Safety
Symmetra Megawatt UPS Galaxy UPSISX
Reliability Reliability
MachineStruxure PowerStruxure SmartStruxure InfraStruxurePlantStruxure

34. 20151960s
Safety
Reliability
MachineStruxure PowerStruxure SmartStruxure InfraStruxurePlantStruxure
Efficiency Efficiency
Solar: PV Storage Conext™ CL Conext XW+ EcoBlade

35. Solar: PV Storage Conext™ CL Conext XW+ EcoBlade
Sustainability
20151960s
Safety
Reliability
Efficiency
Sustainability

36. 20151960s
Safety
Reliability
Efficiency
Connectivity Connectivity
Sustainability

37. 20151960s
Safety
Reliability
Efficiency
Connectivity
Sustainability
Connectivity redefines everything...

38. ...and enables the convergence of
Energy, Automation and Software

39. IN ONE ARCHITECTURE
P O W E R
D I S T R I B U T I O N
I N D U S T RY
B U I L D I N G
D ATA C E N T E R
I N D U S T RY

40. What has changed
ANALYTICS
New functionalities
Artificial Intelligence optimizing
performance at all levels
CLOUD
Pervasive and Affordable Communication
Rich UI
Recognition of Operator
MOBILITY
Massive Aggregation of Data
Stakeholder sharing
Concentration of Specialist

41. REDEFINED...
Connected Products
Edge Control
Apps, Analytics & Services
EcoStruxure.io
Homes
EndtoEndCybersecurity
Cloudand/orOnPremise
GridBuildings Datacenters Industries

42. REDEFINED...
expanding our core value
Connectivity Augmented
Enterprise Management
Remote Operation
& Control
Augmented
Operator
Global Simulation &
Benchmark Scheduling
Energy Sourcing Renewable Management Demand ResponseSustainability
Energy Efficiency Process Efficiency Asset Performance Asset Lifecycle ExpansionEfficiency
Predictive
Maintenance
Assisted
Power Recovery
Scalable & Secure
Infrastructure
Reliability
Fault Prediction Alarm Analytics Parameter DriftSafety

43. LEVEL
INNOVATION
SCHNEIDER
AT EVERY

44. INDUSTRIESBUILDINGS DATA CENTERSHOMES GRID

45. We see the Industrial Internet of Things as
an “evolution” not a “revolution”
And we have the full end to end
& complete solutions for
Automation & Control Systems

46. 1997
Introduction of Modbus/TCP and
‘Transparent Factory’ for Automation
1999
Computerworld Smithsonian
award winner
1996
The first of a series of patents for
Web servers in automation devices
2010
Convergence of MB/TCP& Ethernet/IP
2004
MB/TCP submitted to IEC
for standardization
Schneider Electric
A Pioneer in Industrial Internet of Things

47. Modicon 580 ePAC
the award-winning IIoT-ready controller
with embedded
Ethernet backplane & cyber security
Eurotherm Online Services
anywhere anytime web access to vital
plant information, and calibration certificates
stored in a secured cloud platform
Altivar Process
built-in optimization algorithms and dynamic
QR codes for improved asset performance
...that continues with leading edge technologies today
2016

48. The first range of services oriented drive
A range of variable speed
drives for smart machines
Achieve Maximum Flexibility
Extended Machine Availability
Full Connectivity & Integration
Innovation at Every Level in Industry: Connected Products
Improved Asset Performance With Altivar Process
OsiSence:
Industrial Sensors
Tesys:
Motor Starters
Altivar:
Variable Speed Drives
MCC/PCC
Electrical Panel
Valves Vijeo

49. Energy data
Energy data of
all installations
Mangelberger Control Cabinet ProductionMachine Builders‘ Customers
CAD Program
Food & Beverage Retailers
• Analysis
• Optimization
• Material flow
• Manufacturing
• Documentation
Energy data by type
Assembly plan
Update
Innovation at Every Level in Industry: Control and the Cloud
Smart Machines that Optimize design and production with insights from End User Energy data
Connected Products
MachineStruxure PlantStruxure Safety & Critical Control PlatformThe new generation of DCS

50. Innovation at Every Level in Industry : Apps and Analytics
Augmented Operators with increased efficiency, error free operations and greater autonomy
Wonderware
SmartGlance
Augmented
Operator
Edge Control
Connected Products

51. Industrial
Automation
Innovation
at Every Level

52. Connected
Products
Variable Speed DrivesMotor Starters MCC/PCC Electrical PanelValves Industrial SensorsTouchscreen Panel
Innovation at Every Level in Industry:
Apps,
Analytics
& Services
Process
Engineering
SimSci
SimCentral
Sustainability
& Energy
Resource
Advisor
Planning &
Scheduling
SimSci Spiral
Training
Solutions
SimSci EYESim
Operations
Management
Wonderware,
SimSci
Asset
Management
Avantis
PRiSM
Enterprise
Historian
Wonderware
OnLine
Simulation
SimSci
Predictive
Maintenance
Avantis
MES
Wonderware
Local
Control
PlantStruxureMachineStruxure PowerStruxure
Hybrid ProcessMachine Automation Power MonitoringSafety SystemContinuous Process
Edge
Control
PowerStruxurePlantStruxureMachineStruxure
EcoStruxure.io
EndtoEndCybersecurity
Cloudand/orOnPremise

53. Tomorrow’s Smart Manufacturing Enterprises will excel in 3areas
Asset Performance
Cloud-based apps
Wireless connectivity
Low-power WAN
Low-cost sensors
Zelio RelayRE22Smart Glance
Augmented Operators
Smart Enterprise Control
ERP
MOM/MES
CONTROL
PLM
SCM
CRM
SENSORS ACTUATORS
IIoT
Next GEN
system
Interfacing
With Legacy
“Wrap & Reuse”
1
2
3

54. HOMES INDUSTRIESBUILDINGS DATA CENTERS GRID

55. Buildings are the bedrock of cities…
of world electricity
Buildings consume 53%
Relax Get Well
Live Work Shop
Study
Electricity consumption in
buildings will grow by
80% by 2040
Source : IEA, 4Degree Scenario
and totally rely on electricity and energy

56. Source: ONSE (National Observatory for Electrical Security) Source: EHS Today
>50,000
1. Safety
600,000 electrical accidents in France, in 2015.
home fire in US caused by electricalfailure; causing
loss of property of USD 1.5Bn.
...Homes and Buildings show a hugeuntapped
potential for more…

57. 82%
Buildings79%
Infrastructure
58%
Industry
energy efficiency potential
through active control of the building space
1. World Energy Outlook 2012, OECD / IEA,
...Homes and Buildings show a hugeuntapped
potential for more…
1. Safety 2. Energy Efficiency
30-50%
Untapped energy efficiency potential by segment1

58. 75%
10X
5X
1X
Reactive Preventive Predictive
Lifetime ROI of different approaches to
maintenance
of a building’s
lifetime costs
go to maintenance and operations
Source: US Department of Energy, August 2010
1. Safety 2. Energy Efficiency 3. Operational Efficiency
...Homes and Buildings show a hugeuntapped
potential for more…

59. The Buildings of
Tomorrow
have to be…

61. More Safe
Arc fault detection
Motor overload protection
To protect you from all types
of electrical hazards
Surge protection
(appliances, PC, …)
No Surge
Ground fault /
earth leakage protection
No ElectrocutionNo Fire
Short circuit protection
Arc flash protection
No Explosion

62. More Connected
Cyber
Secure
More Safe
Optimizing..
- Energy Spend
- Maintenance Spend
…And at the same time being Cyber Secure
ENERLIN’X
Smart Panel
Making Energy Visible

63. Non Siloed Building management System hub through a unified IP
Connected Backbone bridging all applications together
Electrical HVAC
Control
Lighting Control
30 - 40%
of all unscheduled HVAC downtime
comes from power quality issues
Hub
Cyber
Secure
More Efficient
More Safe
More Connected

64. Non Siloed Building management System hub through a unified IP
Connected Backbone bridging all applications together
Electrical HVAC
Control
Lighting Control
30 - 40%
of all unscheduled HVAC downtime
comes from power quality issues
Hub
Cyber
Secure
More Efficient
More Safe
More Connected
Hub

65. More Comfortable
Interior Design adapted
to your Lifestyle
Simple Automation
Close to You
Ingenious for
Simple Life
Wiring Devices ranges KNX
Multitouch Pro
KNX
push-button Pro
Odace Styl PracticWiser
Hub
More Safe
More Efficient
More Connected

66. More Sustainable
With Tested , Validated & Optimized Solar Systems
ConextTM CL
Three Phase Power Inverter
Conext XW+
Hybrid Inverter for Solar Power
EcoBlade
Intelligent Storage Systems
Hub
More Safe
More Comfortable
More Efficient
More Connected

67. More Smart
More Sustainable
More Comfortable
More Efficient
More Connected
Asset Optimization
(Building Analytics & Facility Insights)
Enterprise level reporting
(Resource Advisor)
Workplace Efficiency
and Occupancy Management
Analytics Platform
Data aggregated on the cloud
bringing values to services
Hub
More Safe

68. More Sustainable
More Comfortable
More Efficient
More Connected
More Smart
More Safe
Analytics Platform
Data aggregated on the cloud
bringing values to services
Hub

69. Schneider Electric
makes it possible for buildings of tomorrow to be…
More
Green Office Meudon,
France
The world’s largest positive-energy
building
The Edge,
Netherlands
World’s most sustainable building
Les Dunes SociétéGénérale,
Paris, France
The future of work in a completely digital
& sustainable building
Today
Sustainable
Comfortable
Efficient
Connected
Safe
Smart

70. SmartStruxureWiser PowerStruxure
Edge
Control
Innovation at Every Level in Buildings:
Apps,
Analytics &
Services
Workplace EfficiencySupply Asset Management
Electrical HVAC & Cooling
Resource Demand
Altivar:
Variable Speed Drives
Connected
Products
Smart PanelUPS MV SwitchgearConnected
Breaker
Meters iON
(PM8000)
Thermostat CompactActi9 Sytem & PowerTag
EcoStruxure.io
EndtoEndCybersecurity
Cloudand/orOnPremise

71. Efficient
Buildings
For A Cooler Planet

72. DATA CENTERSGRID
And this architecture extends to
The Grid and
Data Centers

73. Apps,
Analytics &
Services
Historian
Avantis eDNA
Predictive
Asset Analytics
Avantis PRiSM
Distributed Energy
Resources Management Microgrid Controller Demand Response
Edge
Control
Advanced Distribution
Management System Renewable Control Center Substation Automation
Connected
Products
Switchgear Connected Power MeterRemote Terminal Unit Protection RelayThermostat
Smart Panel Premset Minera Sgrid
Transformer
Ecoblade Storage PV BoxEasergy T300 ION 7400Easergy P5Wiser
Innovation at Every Level in the Grid:
EcoStruxure.io
EndtoEndCybersecurity
Cloudand/orOnPremise

74. Smart Panel UPS Micro Data Center Prefabricated SecurityConnected Breaker IT RoomEcoBreeze: CoolingPremset Switchgear
Innovation at Every Level in Data Centers:
Connected
Products
Apps,
Analytics &
Services
Cloud-based AnalyticsResource Management
Edge
Control
PowerStruxure
Power Monitoring
InfraStruxure
IT Monitoring and Control
SmartStruxure
Building Management
EcoStruxure.io
EndtoEndCybersecurity
Cloudand/orOnPremise

75. Schneider Electric Innovation Impacts…
8 the top 10
packaging
machine
builders
20 of the
largest Oil
and Gas
companies
9of the 10
largest
Mining,
Metals and
Minerals
11of the
top brands
within Food
& Beverage
100+
water and
wastewater
plants
1million+
Buildings
including 3 of
top 5 hotel
chains and
approx. 40% of
the world’s
hospitals
10of the
world’s top
electric
utilities
3of the top
4 biggest
hyper scale
cloud
providers

76. POWER
& AUTOMATION
REDEFINED

77. SCHNEIDER
INNOVATION
AT EVERY LEVEL