Schneider Electric November, 2014 1
Three trends set to double energy demand by 2050 Urbanization Industrialization Digitization Challenges: > Increasing energy cost > Peaks in demand > Pollution > City congestion > Climate change > Water scarcity Schneider Electric Technology Strategu Nicolas Leterrier - s Meeting Nov 3rd, 2014 2
Global consumption must be reduced and CO 2 emissions halved to avoid climate change Buildings and Data Centers Two thirds of the economic potential to improve energy efficiency remains untapped 1. Industry 58% Infrastructure 79% 82% Untapped energy efficiency potential by segment Schneider Electric Technology Strategu Nicolas Leterrier - s Meeting Nov 3rd, 2014 1:Source: World Energy Outlook 2012 OECD/IEA, 2012, from now until 2035 3
Technology enables new levels of efficiency [billion] 50 40 30 Connected people Connected objects The convergence of IT and energy is enabling both process and energy optimization 20 10 0 1995 2003 2010 2013 2015 2020 The Internet of things: an increasingly connected world (Source: Cisco IBSG April 2011 / Internet World Statistics) Schneider Electric Technology Strategu Nicolas Leterrier - s Meeting Nov 3rd, 2014 4
Schneider Electric: the global specialist in energy management and efficiency technologies Balanced geographies FY 2013 revenue 1 25 billion revenue FY 2013 revenue 1 4-5% of sales devoted to R&D 25% North America 28% Western Europe 43% of revenue in new economies 160,000+ people 2 in 100+ countries 20% Rest of World 27% Asia Pacific FY 2013 revenue 1 Diversified end markets FY 2013 revenue 1 Utilities & Infrastructure Industrial and Machines Data Centers & Networks Non-residential and Residential Buildings 27% 25% 14% 34% Schneider Electric Technology Strategu Nicolas Leterrier - s Meeting Nov 3rd, 2014 1:Pro-forma basis including LTM Sep 2013 revenue from Invensys 2:As of February 2014 (including Invensys) 5
A balanced global footprint in 100+ countries 7,1 North America 33,700 Employees 3 38 Factories 6,4 2,3 2003 2013 2003 1 2013 2 Rest of World Western Europe 47,600 Employees 3 92 Factories 5 34,100 Employees 3 1,2 53 Factories 2003 2013 4,1 2003 2013 Asia Pacific 47,500 Employees 3 69 Factories 6,8 1,2 2003 2013 Schneider Electric Technology Strategu Nicolas Leterrier - s Meeting Nov 3rd, 2014 1:Published figures in billion restated to reflect country-market view; 2:Billion pro-forma basis including LTM Sep 2013 revenue for Invensys 3:Including Invensys, excluding Delixi and Fuji 6
We transformed the company Accessible markets Leadership positions More than doubled size 2013 200bn 90% of sales with #1 or 2 ww position 24bn 2003 60bn 50% 8.7bn Geographies End markets New economies exposure 2013 4 balanced geographies 5 diversified end-markets 43% of sales 2003 80% of sales Western Europe + North America 78% of sales Non-residential buildings + Industrial & machines ~20% Schneider Electric - Technology Strategy & Innovation Nicolas LETERRIER 7
The one-way energy-only grid becomes two-way energy+data smart grid Communication and software at all levels Smart Grid Centralised Generation 4 Utility network Consumers Transmission Distribution 3 Consumers Active Residential Industry Consumers Active Buildings 3 Electric Vehicles Data Centres 1 Renewable Energy Plants Smarter Demand 1 Smarter Supply Distributed Generation Infrastructure Active Energy Efficiency: Energy visibility & Means to act Schneider Electric - Company Confidential 8 2 Demand Response 1 Distributed Generation le Smart Grid
leading to a complex competitive environment Providers need to help their customers manage this complex Power + IT mix. Schneider Electric - Company Confidential 9
Connecting, saving and sharing energy: our integrated approach to efficiency Connect Save Share Schneider Electric Technology Strategu Nicolas Leterrier - s Meeting Nov 3rd, 2014 10
Connecting all people, points, and devices > Open platform > Plug into ERPs > Connection to user > Real time data and algorithms to measure performance (energy & process) > Benchmarking performance across sites to identify improvement areas Smart, real-time data provided through open platforms and integrated systems, enabling insight and action for a sustainable future. Schneider Electric Technology Strategu Nicolas Leterrier - s Meeting Nov 3rd, 2014 11
Saving energy > Connected products > Local control > Active energy efficiency systems > Optimized process > Reduced consumption Achieve optimized performance of operations, processes and assets with integrated hardware, software, and services that combine the worlds of energy and IT. Schneider Electric Technology Strategu Nicolas Leterrier - s Meeting Nov 3rd, 2014 12
Flexibility in building thermal management Equivalent to consumption of 50 homes! Start earlier and store thermal energy during nights Shed during peak While maintaining comfort and energy under control Power curtailment: 100kW Duration: 2h00 Temperature drift: 0,8 C Outside temperature: 6 C Peak price curtailment strategy Savings: 16% with similar kwh consumption Schneider Electric - Prosumer Q1/13 13
Sharing capacity across the smart grid and making cities more efficient Smart grid > Shift and shave capacity to balance supply and demand > Demand response > Ensure network stability, while integrating renewables and electric vehicle charging infrastructure Smart cities > Making cities more efficient, livable, and sustainable through an Integrated Management Platform Working to save, connect, and share energy and resources, for a world that is more efficient, livable and sustainable. Schneider Electric Technology Strategu Nicolas Leterrier - s Meeting Nov 3rd, 2014 14
A future Smart City 15
In the convergence of IT & OT Customer requirements from sensor to big data Enterprise DigitalServices IT Analytics tools Control Operation Virtual & Remote Operation Virtual IP Network Advanced Mobile HMI Distributed Intelligence Mobility Integrated Engineering S/W Devices OT Connected device to Eth/Web Optimized power conversion Sensor Miniaturization Moores Law Schneider Electric - Industry Business January 2014 CONFIDENTIAL 16
Enlarged vision through Energy in Context Energy Information Energy Efficiency 15L per 100 km Energy Efficiency 15L per 100 km Energy Information with context Energy Efficiency 15L per 100 km Energy Efficiency 15L per 100 km profile of track Height Travel direction Travel direction Energy Efficiency in Industrial Processes - EU Sustainable Energy Week on 21 June, Brussels Distance Distance 17
Energy in Context Real case Daily crashed stone Crusher #1 450 Tn/8hs 450 Tn/8hs Energy consumed in production context Morning Shift 540kwh Afternoon Shift 470kwh Morning Shift Afternoon Shift Search for root causes and benchmark for bestpractices implementation Crew #A New staff Respect standard procedures for stone loading cycle Crew #B Experienced staff Fine tuned the stone loading cycle Energy Efficiency in Industrial Processes - EU Sustainable Energy Week on 21 June, Brussels 18
IT/OT Convergence is core to our strategy 2 scenario û Victim: Leave the leader position to the IT vendors ü Actor: Get a leader position in the hinge region between IT and OT à 4 emerging markets to develop Innovative Industry Solutions Cloud Mobility Big Data / Analytics Social Network à Industry 4.0 and Smart Factory as part of the Internet of Thing & Services Schneider Electric - Industry Business January 2014 CONFIDENTIAL 19
Pervasive technologies Schneider Electric 20
Operational efficiency is an ongoing journey Current State Future State Some people Some times Some places Some things contextualize visualization consumption governance real-time standards scalability workflow security connect reliability interoperability modularity cost form factor capture control Any one Any time Any where Any thing Schneider Electric 21
Help people make the most of their energy