INNOVATIONSUMMIT2016

Our technologies ensure thateverywhere, for everyone and at every moment.

Energy is the base of life.

when Energy is on......

We ensure energy is on by making it• Safe• Reliable• Efficient• Sustainable• Connected

DIGITIZATION

50Bconnected things by 2020Source: Cisco

URBANIZATION

+2.5Bpeople in cities by 2050Source: United Nations, DESA

INDUSTRIALIZATION

+50%Energy consumption by 2050Source: IEA

Megatrends are provoking a rise in Energy Demand

billion more have unreliable and intermittent supply of electricityAnother

Source : IEA, Economist

billion people currently do not have access to electricity

We believe access to energy is aBASIC HUMAN RIGHT

…and the present way of managing energy is

UNSUSTAINABLE

Our Challenge in the next 40 years

WE HAVE TO BECOME 3 TIMES MORE EFFICIENT

3xNote: Forecast for 2050 compared to 2009 levels

2C02 EMISSIONS

NEED TO BE HALVED

x1.5

ENERGYCONSUMPTION

MoreELECTRIC

MoreDIGITIZED

MoreDECARBONIZED

MoreDECENTRALIZED

We have an opportunity to co-create the future

Global energy consumption will increase by 40% in the next 25 yearsMORE ELECTRIC

Inde

x(2

012=

100)

200

180

160

140

120

100

80

60

40

20

02000

Source : IEA, WEO 2014, New Policies Scenario

2005 2012 2020 2025 2030 2035 2040

Electricity Demand

Total Final EnergyConsumption

...and electricity consumption will increase by 80%

MORE DIGITIZED and MORE DECARBONIZEDConnected from Plant to Plug with demand side activeenergy and grid efficiency

Making Demand CONNECTED and EFFICIENTBillion

50

40

30

20

10

2003 2010 2015 2020

Connected DevicesConnected People

Source : Cisco, Internet World Statistics

INTERNET OF THINGS

Making Demand CONNECTED and EFFICIENT

ACCELERATIONDriven by pervasive penetration ofMOBILITY & ANALYTICS

Making Demand CONNECTED and EFFICIENT

ACCELERATIONDriven by pervasive penetration ofMOBILITY & ANALYTICS

SOFTWARE &ANALYTICS

AUTOMATION

ENERGY

Making Demand CONNECTED and EFFICIENT

ACCELERATIONDriven by pervasive penetration ofMOBILITY & ANALYTICS

CONVERGENCE

IT

OT

ENERGY &PROCESSOPTIMIZATION

UnrealizedPotential

RealizedPotential

58%

42%Industry

79%

21%Infrastructure

82%

18%Buildings

Source : World Energy Outlook 2012, OECD / IEA, Internal analysis

We have massive untapped efficiency potential

Unconnected buildings lead to inefficiencyTraditional vs Connected Building Energy Profiles

Mon Tue Wed Thu Fri Sat Sun

40%

20%

Energy ConsumptionkWh

-30% Average TraditionalBuilding

Building withactive EE

Average consumptionof a traditional building

Average consumptionof a EE active building

÷2

÷4Improved Energy Performance

2008 2009 2014

74

320Old HQ in TraditionalBuildings

BMS

150

300

250

300

150

100

50

3000 sensors capture data within Le Hive building with a network of 173 power meteringunits ( vs 1 in traditional buildings ) and measure energy consumptionEnergy Performance of The HIVE , Schneider Electric Headquarters in Paris

Monitoring& Control

DistributedGeneration

EnergyStorage

Micro Grid

MORE DECENTRALIZEDIntegrating intermittent generation & leveraging microgrid flexibility

Solar PV LCOE ($MWh)

Li-Ion Battery Costs ($/kWh)

Declining costof Renewablesand Storage

1200

700

200

20102009 2011 2012 2013 2014 20162015 2017 2018 2019Source: Lazard 2014, BNEF 2014

+305GW +436GW RenewablesAccount for~70%of new capacityadditions by2040

SolarWindOther RenewableFossilNuclearFlexible *

*Power storage, Demand response and other potential sourcesSource: BNEF

Declining costof Renewablesand Storage

Opportunities InSOLAR ENERGY

STORAGE MICRO-GRIDS GRID AUTOMATIONSMART GRID

RenewablesAccount for~70%of new capacityadditions by2040

MoreELECTRIC

2X faster growth of electricity demand compared to energy demand by 2040

Source : IEA WEO 2014

Source : Cisco, Internet World Statistics

MoreDIGITIZED

20X more incremental connected devices than connected people by 2020

MoreDECARBONIZED

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

MoreDECENTRALIZED

70% of new capacity additions will be in Renewables by 2040

Source : BNEF

We have an opportunity to co-create the future

ServesSchneiderElectric

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 UntappedEfficiency Potential

>82%Buildings

~58%Industry

~79%Infrastructure

Markets

~ 5%of revenues devoted to R&D

~160K+

people in 100+ countries

Schneider Electric, the Global Specialist in Energy Management and Automation

€26.6BnFY 2015 revenues

...with Balanced Geographies

FY 2015 Revenues

Asia Pacific

Rest of the world

27% 26%29% 18%North America Western Europe

...with Diversified End Markets

21%14% 45% 20%Datacenter & Networks

Building

Infrastructure

Industry

FY 2015 Revenues

…and accelerated 3X investment to Innovation

800

1200

400

M€

600

1000

200

0

1400

2000

2015

~5%of sales devoted to R&D

20,000Patents active orin application worldwide

20,000+R&D & Solution Engineers• 10,000+ Solution Engineers• ~5,000 Software Engineers

--- R&D Spend over 15 Years ---

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-classPublic & Private Organisations

and start-ups

Partnering with 50+

...working with a strong ecosystem of partners

Easy access to informationAwards and Recognitions

Superior transparency

A guarantee of compliance

...striving for Sustainability for our customers and planet

5INNOVATION PRINCIPLES

System View

Digital

Quality 1st

Customer Focus

Simple & Easy

VALUEINNOVATION

FOR

20151960s

Prisma SystemMulti 9 Acti9 Premset Altivar™Compact TesysMasterPact

SafetySafety

Symmetra Megawatt UPS Galaxy UPSISX

20151960s

Safety

Symmetra Megawatt UPS Galaxy UPSISX

ReliabilityReliability

MachineStruxure PowerStruxure SmartStruxure InfraStruxurePlantStruxure

20151960s

Safety

Reliability

MachineStruxure PowerStruxure SmartStruxure InfraStruxurePlantStruxure

EfficiencyEfficiency

Solar: PV Storage Conext™ CL Conext XW+ EcoBlade

Solar: PV Storage Conext™ CL Conext XW+ EcoBlade

Sustainability

20151960s

Safety

Reliability

Efficiency

Sustainability

20151960s

Safety

Reliability

Efficiency

ConnectivityConnectivity

Sustainability

20151960s

Safety

Reliability

Efficiency

Connectivity

Sustainability

Connectivity redefines everything...

...and enables the convergence of

Energy, Automation and Software

IN ONE ARCHITECTURE

POWERDISTRIBUTION

INDUSTRY

BUILDING

DATA CENTER

INDUSTRY

What has changed

ANALYTICSNew functionalitiesArtificial Intelligence optimizing performance at all levels

CLOUDPervasive and Affordable

Communication Rich UIRecognition of Operator

MOBILITY Massive Aggregation of

Data Stakeholder sharing Concentration of Specialist

REDEFINED...

Connected Products

Edge Control

Apps, Analytics & Services

EcoStruxure.ioHomes

End

to E

nd C

yber

secu

rity

Clou

d an

d/or

On

Prem

ise

GridBuildings Datacenters Industries

REDEFINED...expanding our core value

Connectivity AugmentedEnterprise Management

Remote Operation& Control

AugmentedOperator Global Simulation &

Benchmark Scheduling

Energy Sourcing Renewable Management Demand ResponseSustainability

Energy Efficiency Process Efficiency Asset Performance Asset Lifecycle ExpansionEfficiency

PredictiveMaintenance

AssistedPower Recovery Scalable & Secure

InfrastructureReliability

Fault Prediction Alarm Analytics Parameter DriftSafety

LEVEL

INNOVATION

SCHNEIDERAT EVERY

INDUSTRIESBUILDINGS DATA CENTERSHOMES GRID

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

1997

Introduction of Modbus/TCP and ‘Transparent Factory’ for Automation

1999

Computerworld Smithsonianaward

winner

1996

The first of a series of patents forWeb servers in automation devices

2010

Convergence of MB/TCP& Ethernet/IP

2004

MB/TCP submitted to IEC for standardization

Schneider ElectricA Pioneer in Industrial Internet of Things

Modicon 580 ePACthe award-winning IIoT-ready controller with embeddedEthernet backplane & cyber security

Eurotherm Online Servicesanywhere anytime web access to vital plant information, and calibration certificates stored in a secured cloud platform

Altivar Processbuilt-in optimization algorithms and dynamic QR codes for improved asset performance

...that continues with leading edge technologies today

2016

The first range of services oriented driveA range of variable speed drives for smart machines

Achieve Maximum Flexibility Extended Machine Availability Full Connectivity & Integration

Innovation at Every Level in Industry: Connected ProductsImproved Asset Performance With Altivar Process

OsiSence:Industrial Sensors

Tesys:Motor Starters

Altivar:Variable Speed Drives

MCC/PCCElectrical Panel

Valves Vijeo

Energy data

Energy data of all installations

Mangelberger Control Cabinet ProductionMachine Builders‘ Customers

CAD Program

Food & Beverage Retailers

• Analysis• Optimization• Material flow• Manufacturing• Documentatio

n

Energy data by type

Assembly plan

Update

Innovation at Every Level in Industry: Control and the CloudSmart 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

Innovation at Every Level in Industry : Apps and AnalyticsAugmented Operators with increased efficiency, error free operations and greater autonomy

Wonderware SmartGlance

Augmented Operator

Edge ControlConnected Products

IndustrialAutomation

Innovationat Every Level

ConnectedProducts

Variable Speed DrivesMotor Starters MCC/PCC Electrical PanelValves Industrial SensorsTouchscreen Panel

Innovation at Every Level in Industry:

Apps,Analytics& Services

ProcessEngineering

SimSciSimCentral

Sustainability& Energy

ResourceAdvisor

Planning &Scheduling

SimSci Spiral

TrainingSolutions

SimSci EYESim

OperationsManagement

Wonderware,SimSci

AssetManagement

AvantisPRiSM

EnterpriseHistorian

WonderwareOnLine

Simulation

SimSci

PredictiveMaintenance

Avantis

MES

Wonderware

LocalControl

PlantStruxureMachineStruxure PowerStruxure

Hybrid ProcessMachine Automation Power MonitoringSafety SystemContinuous ProcessEdgeControl

PowerStruxurePlantStruxureMachineStruxure

EcoStruxure.io

End

to E

nd C

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secu

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Clo

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Prem

ise

Tomorrow’s Smart Manufacturing Enterprises will excel in 3 areas

Asset PerformanceCloud-based appsWireless connectivityLow-power WAN Low-cost sensors

Zelio Relay RE22

Smart Glance

Augmented Operators

Smart Enterprise Control

ERPMOM/MES

CONTROL

PLM

SCM

CRM

SENSORS ACTUATORS

IIoT

Next GEN system

Interfacing With Legacy

“Wrap & Reuse”

123

HOMES INDUSTRIESBUILDINGS DATA CENTERS GRID

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 2040Source : IEA, 4Degree Scenario

and totally rely on electricity and energy

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 electrical failure; causing loss of property of USD 1.5Bn.

...Homes and Buildings show a huge untapped potential for more…

82%Buildings79%

Infrastructure

58%Industryenergy efficiency

potentialthrough active control of the building space1. World Energy Outlook 2012, OECD / IEA,

...Homes and Buildings show a huge untapped potential for more…

1. Safety 2. Energy Efficiency

30-50% Untapped energy efficiency potential by

segment1

75%

10X

5X1X

Reactive Preventive Predictive

Lifetime ROI of different approaches to maintenance

of a building’slifetime costsgo to maintenance and operationsSource: US Department of Energy, August 2010

1. Safety 2. Energy Efficiency 3. Operational Efficiency

...Homes and Buildings show a huge untapped potential for more…

The Buildings of Tomorrowhave to be…

More Safe

Arc fault detectionMotor overload

protection

To protect you from all types of electrical

hazards

Surge protection (appliances, PC, …)

No SurgeGround fault /earth leakage

protection

No Electrocution

No FireShort circuit protection

Arc flash protection

No Explosion

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

Non Siloed Building management System hub through a unified IP

Connected Backbone bridging all applications together

Electrical HVAC ControlLighting Control

30 - 40%of all unscheduled HVAC downtime comes from power quality issues

HubCyber

Secure

More Efficient

More Safe

More Connected

Non Siloed Building management System hub through a unified IP

Connected Backbone bridging all applications together

Electrical HVAC ControlLighting Control

30 - 40%of all unscheduled HVAC downtime comes from power quality issues

HubCyber

Secure

More Efficient

More Safe

More Connected

Hub

More Comfortable

Interior Design adapted

to your Lifestyle

Simple Automation

Close to You

Ingenious for

Simple Life

Wiring Devices ranges

KNXMultitouch

Pro

KNXpush-button

Pro

Odace Styl Practic

Wiser

Hub

More Safe

More EfficientMore Connected

More Sustainable

With Tested , Validated & Optimized Solar Systems

ConextTM CLThree Phase Power

Inverter

Conext XW+Hybrid Inverter for Solar

Power

EcoBladeIntelligent Storage

Systems

Hub

More Safe

More Comfortable

More EfficientMore Connected

More Smart

More SustainableMore Comfortable

More EfficientMore Connected

Asset Optimization(Building Analytics & Facility Insights)

Enterprise level reporting(Resource Advisor)

Workplace Efficiencyand Occupancy Management

Analytics PlatformData aggregated on the cloud bringing values to services

Hub

More Safe

More SustainableMore Comfortable

More EfficientMore Connected

More Smart

More Safe

Analytics PlatformData aggregated on the cloud bringing values to services

Hub

Schneider Electricmakes it possible for buildings of tomorrow to be…More Green Office

Meudon, FranceThe world’s largest positive-energy building

The Edge, NetherlandsWorld’s most sustainable building

Les Dunes Société Générale, Paris, FranceThe future of work in a completely digital & sustainable building

Today

Sustainable ComfortableEfficient Connected Safe

Smart

SmartStruxureWiser PowerStruxure

EdgeControl

Innovation at Every Level in Buildings:

Apps,Analytics &Services

Workplace EfficiencySupply Asset ManagementElectrical HVAC & Cooling

Resource Demand

Altivar:Variable Speed Drives

ConnectedProducts

Smart PanelUPS MV SwitchgearConnectedBreaker

Meters iON(PM8000)

Thermostat CompactActi9 Sytem & PowerTag

EcoStruxure.io

End

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EfficientBuildingsFor A Cooler Planet

DATA CENTERSGRID

And this architecture extends to

The Grid andData Centers

Apps,Analytics &Services

Historian

Avantis eDNA

PredictiveAsset Analytics

Avantis PRiSM

Distributed EnergyResources Management Microgrid Controller Demand Response

EdgeControl

Advanced DistributionManagement System Renewable Control Center Substation Automation

ConnectedProducts

Switchgear Connected Power MeterRemote Terminal Unit Protection RelayThermostatSmart Panel Premset Minera Sgrid

TransformerEcoblade Storage PV BoxEasergy T300 ION 7400Easergy P5Wiser

Innovation at Every Level in the Grid:EcoStruxure.io

End

to E

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secu

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Clo

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nd/o

r On

Prem

ise

Smart Panel UPS Micro Data Center Prefabricated SecurityConnected Breaker IT RoomEcoBreeze: CoolingPremset Switchgear

Innovation at Every Level in Data Centers:

ConnectedProducts

Apps,Analytics &Services

Cloud-based AnalyticsResource Management

EdgeControl

PowerStruxure

Power Monitoring

InfraStruxure

IT Monitoring and Control

SmartStruxure

Building Management

EcoStruxure.io

End

to E

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secu

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Clo

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Prem

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Schneider Electric Innovation Impacts…

8 the top 10 packaging machine builders

20of 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

POWER& AUTOMATION

REDEFINED

SCHNEIDERINNOVATIONAT EVERY LEVEL