Make the most of

your energy™

Francisco Barceló

January 27th 2014

Barcelona

2

The energy dilemma is here to stay

vs Energy demand By 2050 Electricity by 2030

CO2 emissions to

avoid dramatic climate

changes by 2050

The facts The need

Source: IEA 2007

Source: IPCC 2007, figure (vs. 1990 level)

Frequent

power outages

Rising

energy prices Climate change

Conflicts for

resource access

& control

3

Our answer:

Helping people make

the most of their energy

4

1999

Groupe Schneider becomes

Schneider Electric,

focused on Power & Control

1975

Merlin Gerin joins

Groupe Schneider

1988

Telemecanique joins

Groupe Schneider

1991

Square D joins

Groupe Schneider

1996

Modicon, historic leader in

Automation, becomes a

Schneider brand

2007 Acquisition of APC corp. and Pelco

More than 175 years of history

1836

Creation of Schneider

at Le Creusot, France

19th century 20th century 21st century

2000 Acquisition of

MGE UPS Systems

2003 Acquisition of

T.A.C

2005 Acquisition of

Power Measurement Inc.

2003-2008 Targeted acquisitions in wiring devices

and home automation

(Lexel, Clipsal, Merten, Ova, GET, etc.)

2008 Acquisition of Xantrex

Steel

Industry

Power &

Control

2014 Acquisition of Invensys

2011 Acquisition of Telvent

2010 Acquisition of Areva’s distribution

activity

Energy

Management

5

Schneider Electric at a glance The global specialist in energy management

billion € of sales in 2012

North

America

25% Asia

Pacific 27% Rest of

World 18%

Western

Europe

30%

28 300

44 200

42 600

22 000

employees in 100+ countries

of sales devoted to R&D

Large company

of sales in new economies Balanced Geographies

FY 2012 sales

Year-end 2012 employees

Diversified end markets FY 2012 Sales

(billion €)

Residential 9%

Utilities & Infrastructure 25%

Industrial & machines 22%

Data centres 15%

Non-residential buildings 29%

6

Energy production

& transmission

Energy

Usage

Energy Management •Making energy…

Safe, Reliable, Efficient, Productive and Green

…with 30-70% savings everywhere

7

How do we do it?

8

Providing solutions

Efficient

&

productiv

e

Reliable

Safe

Green

HVAC control

Lighting control

Access control

Video security

Electrical distribution

Energy monitoring

Motor control

Critical power

Renewable energies

IT data

Make energy visible Make systems work together Integration

9

●EcoStruxure = an integrated architecture

that combines our five key domains of expertise:

●EcoStruxure = an architecture for each of our customers’ ecosystems

Explaining

Supervision

Process & Machines management

Building management

IT Room management

Power

management

Security management

10

Real time

Control

Management

view

Thanks to …

CXO

VP Operations

Plant Manager

I manage

my business

in real time!

I optimise

all business

operations !

I build a

sustainable

future !

11

Multiple silo systems Integrated Solution

Implementing

Energy visibility everywhere

Security integration everywhere

Ethernet IP & Openness to 3rd party systems

3

fundamental

principles

12

The model Leverage open standards to deliver flexible and scalable solutions

delivering “shop floor to top floor” efficiency

Sustainability

Planning

Energy

Management

Business

Operation

Asset

Management

Power

availability

Process

control

Security

Focused best-

in-class

applications…

… flexibly

integrated

into

scalable

solutions

13

Industry

Buildings

Data Centres

Infrastructure

Residential

Electric Vehicles

& Energy Storage

Efficient homes

(incl. EV charging infrastructure)

Efficient Enterprise

(buildings, industries & datacenters

+ EV charging infrastructure)

Smarter

Demand

Smart Generation

(bulk, distributed & renewable)

Flexible

Distribution

(DMS, substations, feeders)

Smarter

Supply

the

Smart Grid

Demand

Response

Demand

Response

Leading the development of the Smart Grid

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● Solutions to cities' immediate challenges,

● Integration for increased efficiency,

● Innovation for a holistic sustainable future,

● Collaboration to make it all happen.

We deliver urban efficiency. Today.

Smart Energy

Smart Mobility

Smart Water

Smart Public

Services

Smart Buildings & Homes

Smart Integration

Smart Collaboration

We understand what it takes. We make Smart Cities a reality.

...and the Smart Cities!

15

11000 R&D

engineers

70 sites in

22 countries

Within an innovation eco-system for a simpler and greener future

Environmentally

friendly

Energy

efficient

Open and

connected

Available 24/7,

on site and remote

So we can be… We start today…

Partnering with 50+

best-in-class public and

private organisations

Leading global

projects for Intelligent

buildings, renewables,

nanotechnologies

Boosting

standardisation Zigbee, IEC, NEMA

Homes

Minalogic

Smart

Electricity

Funding start-ups Schneider Electric

Venture capital fund

Demand

response,

software

breakthrough

16

inclusion equity

Ethics &

responsibility

Tackling the stakes of today and tomorrow to

support Schneider Electric’s responsible growth

Carbon

Resources Globalisation

poverty

New economies

Access to

energy

Environment

protection

People well being

Green business

Energy efficiency

Renewables

Electric Vehicles

Smart cities and smart grids

Social

commitment

Responsible company Measured commitment

Objective 2014: 8/10

January 2012 start: 3/10

•Communicate quarterly

•Audited annually

•Revised with each

company programme

17

Our greatest reward:

the satisfaction of our

stakeholders

18

Prestigious awards

Reference Ethical Stock index and ratings

●In the Prime category of the Oekom research

ranking

●In the best-in-class companies for Vigeo CSR

rating agency

Zayed Future Energy prize By Masdar, UAE

For our contribution to

renewables and sustainable

development

Gigaton award by carbon war room, UK

for our commitment to smart grid

and energy efficiency

Green cross By national safety council, US

For our health & safety

practices

●Top 5 of the best French listed companies in

CSR

●Top 100 most ethical companies By

Ethisphere, EU - For our ethics commitment

and governance Human Capital trophy France

For our management

internationalisation policy

A recognised and awarded commitment

●Selected in the “Carbon Performance

Leadership index” (Performance band A)

●Selected in the “Climate Disclosure

Leadership Index” with a score of 97/100

●Selected in the DJSI World and Europe

indexes

● 13th in Global 100 annual clean capitalism

ranking by Corporate Knights announced

during the World Economic Forum in Davos

19

Make the most of your energy™

schneider-electric.com

20

Innovative projects references

21

As an example: the HOMES programme

The largest funded programme on

innovation in the field of active energy

Efficiency for Buildings in Europe

« Equip each building with active Energy Efficiency solutions, to achieve the

best possible energy performance »

September 2008 > September 2012

13 partners (industries & labs)

26 Work Packages – 80 M€

39 M€ funded by OSEO (french agency)

●Commercial buildings: office, hostel,

retail, education

●Residential

22

Example: HOMES Comfort sensor

Wireless & batteryless

Measuring humidity, temperature,

luminosity, air quality

23

Example:

Smart User Interfaces

with printed electronics

24

DENISE “Intelligent, Secure and Efficient Energy Distribution”

The main objective of the project is to develop a smart grid

solution including an analysis of the general framework and

future scenarios of energy usage (technology for future

scenarios, dynamic use of energy, value added services…).

Network reliability and performance will be addressed too, by

managing MV and LV distributed generation, digital-quality, or

predictive maintenance among others. Finally, there will be a

focus in energy efficiency and demand response areas as

well, including the definition of demand response programs,

dynamic pricing scenarios and so on.

> Main objectives of the project

Leading organisation:

Endesa

Funding Organization:

CDTI

Partners: Greenpower,

Capgemini, Home Systems,

Nucleo, Isotrol, Sadiel, etc.

Status: Finished

Different aspects are requested to electric distribution grids:

- Support of renewable energies.

- Energy efficiency and sustainable development.

- Improved quality of supply.

Rationale

Smart Grids

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Smart City “Connect in a Smart Way”

The "Smart City“ project aims to develop a demonstrator of the

next generation of Power Distribution Network, where

customers and distribution companies collaborate in achieving

the energy challenge, increasing the use of renewable energy

sources, bringing the generation to consumption, and betting

on a rational and efficient consumption.

In other words, Smart City’s main objective is to build an

energetic sustainable and safe city, from the standpoint of the

distribution network, by demonstrating the most appropriated

technologies.

> Main objectives of the project

Leading organisation:

Endesa

Funding Organization:

CDTI

Partners: Endesa,

ISOTROL, Sadiel, Ingeteam,

Ormazabal, Green Power,

IBM, Acciona

Status: Finished

The «Smart City» concept can be summarized in a secure,

self-healing and efficient network. To achieve this, all electric

infrastructure shall be connected using adequate

communication technologies with appropriate levels of

reliability and bandwidth.

Rationale

Smart Cities

26

STORE “Storage Technologies of Reliable Energy”

The main objective of this project is to test/demonstrate new

storage technologies with direct application on power systems.

STORE also pursues the following goals:

- To model the demand curve

- To maximize the integration of renewable energies

- To support demand management on limited areas

- To reduce CO2 emissions

- To introduce new technologies that will improve the quality

of service and will also reduce costs

- To provide stability to the power system

- To delay the development of new infrastructures

> Main objectives of the project

Leading organisation:

Endesa

Funding Organization:

CDTI

Partners: Endesa,

ISOTROL, Ingeteam

Status: Finished

The storage of energy is a key factor that will facilitate peak

shaving and load leveling strategies in Power Systems.

However, given the novelty of energy storage technologies,

their real impact on the power network remains unknown.

Rationale

Storage Systems

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Ferro SmartGrid “Smart Grid applied to the Rail Grid”

The main objective is to develop an experimental

demonstrator of the first Smart Railway Power Grid in order to

allow the optimal management of the electric power system,

the interoperability of different urban and interurban transport

systems and the user’s interaction in the railway stations.

Ferro SmartGrid also pursues the following goals:

- To improve the reliability of Railway Systems.

- To contribute with the power systems’ stability.

- To introduce Smart Energy Management tasks in Traffic

Control Systems.

- To introduce the user as an active element of the Smart

Grid.

> Main objectives of the project

Leading organisation:

Schneider Electric

Funding Organization:

CDTI

Partners: Adif, Indra,

Inabensa, WindInertia,

Andel, Adevice, Acisa

Status: On-going

The management, storage and subsequent use of the energy

generated by trains in their braking phase, represent

important features regarding the transformation of a

conventional system in a Smart Railway System.

Rationale

Smart Grids

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Grid4EU “Large-Scale Demonstration of Advanced Smart GRID Solutions

with wide Replication and Scalability Potential for EUROPE”

Grid4EU approach aims at testing, in real size, some

innovative concepts and technologies in order to highlight and

help to remove some of the barriers to the deployment of

smart grids and the achievement of the 2020 European goals:

technical, economic, societal, environmental and regulatory

barriers. It focuses on how distribution system operators can

dynamically manage electricity supply and demand, which is

crucial for integration of large amounts of renewable energy,

and empowers consumers to become active participants in

their energy choices.

> Main objectives of the project

Leading organisation:

ERDF

Funding Organization :

Seventh Framework

Programme

Partners: Vattenfall,

eMeter, ABB, KTH,

Landis+Gyr, Current, etc.

Status: On-going

Grid4EU is an innovative Smart Grid project proposed by a

group of Distribution System Operators in close partnership

with a set of electricity retailers, manufacturers and research

organizations. Its structure is built to facilitate dynamic

knowledge sharing, technical assistance and review.

Rationale

Smart Metering

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Smart Grid Gotland “Upgrading the electric grid in Gotland”

Smart Grid Gotland is a full scale demonstration project that

will show how an existing distribution grid can be upgraded to

handle large amounts of electricity produced by wind power.

This should be done with preserved power quality and in a

cost efficient way compared to conventional technology.

The electricity customers should be able to supervise their

consumption around the clock and adjust their consumption to

the electricity price.

Real customers, electricity producers, grid owners and other

actors interact according to market based conditions.

> Main objectives of the project

Leading organisation:

Vattenfall

Funding Organization:

Swedish Energy Agency

Partners: ABB, GEAB,

Svenska Kraftnat

Status: On-going

In the future, electricity will be an environmental and economic

energy carrier and will most likely have a more prominent

position in the energy system. But then electricity needs to be

more reliable and available. In the transition to a sustainable

society smart grid is a necessity. Smart grid is needed for

example within the transport sector if we should use more

electrical vehicles.

Rationale

Smart Metering

30

TIGRIS “Total Integrated GRid Intelligent System”

The main objective of the project is to develop an integrated

and secure Smart Grid solution so the electric distribution can

be done in an efficient, economic, automated and reliable way,

in order to increase the capacity of the system without

investing in new infrastructures. That solution will cover areas

of network automation, street lighting, smart metering, smart

buildings and systems integration and communication, and it

will be tested in industrial areas to demonstrate its contribution

to the increase of the energy efficiency of the network.

> Main objectives of the project

Leading organisation:

Schneider Electric

Funding Organization:

CDTI

Partners: Greenpower,

Adevice, Sodinur, LEC,

Wellness Telecom, Seven

Solutions

Status: On-going

Currently, the electric grid is facing several challenges:

- Increase of the energy demand.

- Reduction of CO2 emissions.

- Evolution of the electric systems and the new prosumer

(producer/consumer) role of the former consumers.

Rationale

Smart Grids