1. Make the most of your energy ™ Speaker’s name Date Place
2. The energy dilemma is here to stay v s Energy demand By 2050 Electricity by 2030 CO 2 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. More than 170 years of history 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 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 2010 Acquisition of Areva’s distribution activity (in process) Steel Industry Power & Control Energy Management
8. Leading the development of the Smart Grid Residential Industries Buildings Datacenters Centralized generation Homes Bi-directional flow of energy AND data Active end-users Renewable energy plants > 1MW Decentralized distributed generation <1MW Distributed and intermittent generation Transmission Commercial and industrial Distribution Flexible distribution
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10. An innovation eco-system for a simpler and greener future 7,500 R&D engineers 50 centres in 25 countries Environment 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
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13. two fundamentals three transformations Focused on 5 priorities through our company programme, One (2009-2011)
15. Awarded by our stakeholders Emerging company of the year by Frost & Sullivan , Buildings Business, India Best Performance and Cost Improvement Award, by Cummins 2008 Golden Headset Award, Best Call Centre, China One of the 100 Best Places to Work, Brazil Best Quality Award for Xantrex™ solar inverters, Elektroprofesional magazine, Spain Eco-product for sustainable development award, Pollutec exhibition, France
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17. Trusted by customers worldwide! Bella Center, Copenhagen, Denmark We provide a complete building management systems for the biggest conferencing centre in Scandinavia that held the COP15 UN Climate change conference in December 2009. As a result of our solutions: 1,150 tons of CO 2 saved annually Fondation Polaire Internationale, Antartica Remote energy management solutions for the first “zero emission” scientific research station Princess Elisabeth Antarctica Among our customers, you find… Veolia Total Sun Microsystems Suez Environnement Sanofi Aventis Saint Gobain RockFeller Center Rio Tinto Wal-Mart Rexel Nestlé Michelin Marriott IBM Hilton Hewlett Packard GSK GM/Opel GDF-SUEZ Ford EDF Digital Cisco Carrefour BHP Beijing Olympics Areva Arcelor Mittal
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Editor's Notes
So the energy equation is very simple and very complex to solve. At minimum, energy consumption, including electricity and other sources, will double in the next 40 years. Electricity itself will double by 2030. At the same time, climate specialists tell us we should divide emissions by 2 to avoid serious climatic changes. In other terms, the world needs to improve its carbon intensity by a factor of 4. This means the developed world, the US, Europe, the Eastern seaboard of China will have to save energy. Mobilization on climate change world wide By 2030, ~3/4 of energy sources will remain CO2-related Grave consequences expected if global temperature rises by 3°c (based on International Energy Agency quotes and studies Important need for reliable energy Cost of 1 hour downtime = up to $10 million (depending on the industries) Green energy is a must and an opportunity Share of renewable in energy mix could double in the next 20 years ( based on both IEA and Department of Energy (DOE), USA)
SE’s answer is to help people make the most of their energy. How can we do this? By becoming the global specialist in energy management. So what does it mean… … to be a global company… … that specialises in energy management? We’ll look at both elements later on. But first, let’s take a quick look at where we are coming from…
First of all, I want to give you a brief overview of our heritage. Despite the Germanic sound our name, we are a French company, created in 1836 at Le Creusot, a small town in Burgundy. We started out as canon-makers, before going into other areas of the steel industry. In the second part of the 20th century, we entered into what would eventually become the historical business of Schneider Electric : Power & Control, first and foremost by acquiring Merlin Gerin and Telemecanique in France, followed by Square D and Modicon in the US. Thanks to those acquisitions, we also became an international company. (For instance, we have been in India since 1963 and in China since 1988.) At the end of nineties, as a symbol of our shift in focus towards Power & Control, Groupe Schneider was renamed Schneider Electric. In 2001, we embarked on a wave of targeted acquisitions to again refocus our business from Power & Control to Energy Management. We acquired MGE in Secured Power as well as APC in order to become a leader in Critical Power and Cooling (2007). We then proceeded to acquire TAC in the sector of Building Management in 2003 and Pelco in 2008, thus becoming a top player in building automation and security, Power measurement for power and monitoring systems (a crucial element in energy efficiency). Last but not least, we acquired Xantrex, a leader in connectivity and reliability systems for renewable energies. In 2010 we entered into the process of acquiring Areva Tranmission & Distribution together with Alstom. Today this acquisition makes us N°2 worldewide in the medium voltage field, ready to lead the smart grid challenges To sum up, the company has been transformed since 2001. We extended our business portfolio as well as doubling our sales and our number of people. Our dynamic history explains who we are today: the global specialist in energy management
We help people make the most of their energy. What does it mean? between energy generation (coal, nuclear, Hydro, etc.) and energy usage (what we all do with energy everyday), it is our play ground: energy management. It consists in making energy safe, reliable, efficient, productive and green. Let’s go a little bit more into detail (next slide)
Parallel to the drive to greater efficiency, another major transformation is happening…Electricity networks are becoming more complex and less stable all over the world. To continue to efficiently balance supply and demand, the grid needs to become smarter. Today’s grid functions in a top-down way. Tomorrow’s smart grid will be bi-directional: electricity will flow out of homes and offices as well as into them. How do we make the Smart Grid happen? Step 1 : deploy the necessary technology everywhere to make all players of the electrical chain smart grid ready. This is happening now. Flexible Distribution Smart connection of renewable sources to the grid Smart EV Charging Energy Efficiency everywhere making users active in the energy chain Step 2: connect the full system Demand Response. The market is starting to emerge in a couple geographies (US, then Europe) A lot of pilots are starting (US, Europe, India, Korea, China) funded by stimulus packages We have a unique positioning since no other players has: HW: installed base + new build offers SW Services In supply (Grid) and demand side (Homes + enterprise) And capacity to connect all players on the map We, at Schneider Electric, support smarter interactions for a smarter grid - we not only connect our customers to the Smart Grid, but also connect them with each other. All over the world, all over the electricity network, smarter answers are needed to continue balancing supply and demand efficiently. We connect our customers to the Smart Grid and with each other. And we connect with other players to make it all work.
This description is designed to give people a quick, general overview of what we do. It is designed to be clear and accessible, and is recommended only for audiences who do not know us well. A building is the best example, as it offers the broadest presentation of our portfolio how we integrate our different areas of expertise. Safe Energy in general, and electrical energy in particular, can be dangerous. We make it safe, in order to protect people and assets. SE provides circuit breakers, surge protectors, wiring devices, and other systems designed to ensure your safety. Reliable An unreliable energy supply can cause huge losses. Depending on the industry, the cost of 1 hour downtime can reach $10 million. The power gird is not always reliable, whether in terms of continuity or of quality. In the digital world of today, a “pure energy” supply without variations in intensity or cuts is a must. Efficient and productive Few people realise that a mere click on a computer mouse consumes a considerable amount of energy. Consider this: one day’s worth of Google searches generates the same amount of CO2 emissions as 200 return flights between Paris and New York. Note for the speaker 1 Google search = 1g of CO2 (between 0. 2 & 7g depending on the sources) 1 NYC-Paris return flight = 1T of CO2 200 millions Google searches every day Because energy is the source of all activity, we help our customers to manage it so as to boost their productivity. How? By developing automation and connectivity to make life easier for them. Our lifecycle services bring further peace of mind to our customers throughout the entire lifespan of their installations. Energy efficiency can give a remarkable boost to your finances by enabling you… -…to save on your energy bills, and… -…to optimise total cost of ownership of real estate or production facilities. This applies to individuals, and even more so to factory or business owners. The rising price of energy as well as growing environmental concerns mean that energy efficiency is not only the right way; it is the only way. Green Green energy is both a need and an opportunity The share of renewable in the world’s energy mix could double over the next 20 years ( according to both IEA and the US Department of Energy) SE will be part of this green transition, by providing easy ways to install and connect renewable energy sources. In renewable energy, SE provides connection systems and products like inverters, etc. EcostruXure: Simple software integration The biggest source of efficiency is integration. Simply connecting the different spaces of the building (Facility management system, security system, IT system, power monitoring system) through software systems can yield great benefits. It enables you to: Achieve more while using less Making instant documented decisions based on accurate data (consolidation is key to reduce waste and optimize the whole) Save time and energy through remote monitoring. EcoStruXure is a framework for creating simple Intelligent Energy management systems that save money and, more importantly, reduce waste. This agile, “architectural” approach makes optimised systems accessible to a wider audience thanks to its compatible product designs and open-platform software. It provides end-users with the tools they need to reduce their time to design and integrate, as well as their capex and opex. As consumers, businesses, and entire economies become increasingly reliant on technology, devices must become more intuitive, efficient, and intelligent. With EcoStruXure, Schneider Electric is helping energy to evolve in the same direction.
Innovation is key to achieving Smart Grids and Smart Buildings. With innovation, we will achieve secure growth and reinvent tomorrow. We seek to boost innovation in three ways: We partner with internationally respected public and private organizations such as Cisco, IBM and MIT. We have established partnerships with 30 universities and research labs around the world alongside partnerships with more than 100 industrial heavyweights. We are the only French company to lead 2 global competitiveness projects in promising fields like nanotechnology (Minaologic), intelligent buildings management (Homes, and renewable energies (Tenerrdis) Schneider Electric Ventures is a capital fund through which SE explore new business opportunities for the future. Recently, we partnered with companies in demand response (C-Power) and innovative renewable energies solutions (Solaire direct) among others. We are committed to spreading standards in our industry through industry associations / public policy, because we firmly believe that an industry set on common standards generates more simplicity, innovation and business opportunities For the speaker: The right column shows some of our latest innovations Compact NSX, the first circuit breaker that combines protection and monitoring. Zigbee switch: With this wireless, batteryless switch based on ZigBee technology, Schneider Electric is responding to market expectations for a product that is: -easy to install , as it is wireless, -reliable , as the switch operates continuously and requires no maintenance, -green , as there are no batteries to recycle SoMachine Software: 4-in-one software for process control IT:Power-Saving Surge Protector with LCD Timer(R), an on/off programmable surge protector that provides guaranteed protection from damaging power surges and spikes. By setting the APC Power-Saving Surge Protector with LCD Timer to power on or off at select times, consumers are able to save energy and money by avoiding wasted energy draw to idle electronics If you need more details on the innovation programs… Minalogic: Global competitiveness cluster Minalogic fosters research-led innovation in intelligent miniaturized products and solutions for industry. Located in Grenoble, France, the cluster brings together in one location a number of highly talented specialists and provides them with the resources they need to create, develop and produce intelligent miniaturized services for industry. Minalogic has staked out a position as global leader in its domain, a unique hybrid of micro- and nano-technologies and embedded software. SE is involved in Smart electricity, Homes As an illustration, here is a brief description of the Homes program: Euros 88M project from 2008/2012 15 partners under our leadership Aim is to achieve at least 20% energy savings through energy efficient and intelligent solutions for buildings and homes If you need more details on what we do with Cisco Ex: Cisco EnergyWise partnerhip Thanks to Cisco EnergyWise, companies can: -Reduce energy costs and greenhouse gas emissions (GHG) footprint. -Monitor the power consumption of all Cisco network-connected devices, from Power over Ethernet (PoE) devices to IP-enabled building controllers. -Report aggregated power consumption to provide a clearer understanding of an organization's power-consumption habits. -Optimize overall power usage based on user-created policies across the entire corporate infrastructure. -Provide reports of current power conditions and suggests potential changes. -Regulate companywide energy consumption using scalable domain approach which brings IT and facility networks together => We collaborate with our building management systems
To Schneider Electric, Sustainable Development should be more than just a trend. In this area, we really do walk the talk. Respecting the environment As a major industrial player globally, we want to be irreproachable in terms of respect of the environment We want to have the cleanest products and sites We go beyond mere compliance to the most stringent standards . For instances, we apply the European standards RoHS and REACH to all our products, not only in Europe.. We build eco-design products with Environmental products profiles We practice eco-production with the aim of certifying all of our sites ISO14001, an environmental management standard applicable to any type of site. (Our objective is to have 2/3 of our employees working on an ISO 14001 site, whether it is an office block, a logistics centre or an industrial plant.) Las but not least, we implement our energy efficiency solutions in our own sites. Last year, we saved 44,000 tons equivalent CO2 thanks to this comprehensive environment-friendly policy Worldwide commitments Change starts at home. And SE’s presence in more than 100 countries puts us in an ideal position to support development all over the world. Here are a few examples of how we do this. Since December 2002, Schneider Electric has been an active member of the U.N. Global Compact. In 2009, Schneider Electric joined the Alliance to Save Energy, an association which focuses on spreading energy saving solutions worldwide. Among others, we also serve in associations like The Green Grid, a global network of companies dedicated to advancing energy efficiency in data centres and business computing ecosystems, Clinton Climate Initiative, a programme designed to help 40 of the world’s largest cities to more effectively manage energy consumption in buildings or Alliance to Save Energy. BipBop programme Schneider Electric sees global energy access as both a crisis and an opportunity. By investing in communities and stakeholders at the Bottom of the Pyramid (BOP)—the term commonly used to describe those with the lowest income in each country—Schneider Electric addresses three key issues to provide people with access to electricity: the lack of appropriate equipment: we are developing an adapted and cost-effective offer for the bottom of the pyramid the lack of financial resources available for innovative entrepreneurs: we fund energy-related business projects worldwide the skills and expertise shortage: we provide technical and business training to disadvantaged populations Measuring our commitment with the Planet & Society Barometer We measure our progress in sustainable development with this simple tool, which takes into account 13 indicators classified in 3 categories: people, profit and planet (For instance, the %age of women in the company is one of our Key Progress Indicators (KPI)). The barometer enables us to monitor our improvement and implement appropriate action plans where we need to do better. Background info: in our previous company programme new², which ran from 2005 to 2008, we achieved a result of 8/10 31/12/2008, based on 10 criteria, starting 1/01/2005. We then implemented this new self-evaluation tool as part of our One company programme (next slide) with criteria based on the new strategic intent of our Foundation and the needs of stakeholders.
The energy world is living a revolution. As always, the key success factor to change is people. Three changes have to operate. 1/ People have to change their behavior. They must change the way they make decisions about energy They have to be aware of the cost of their energy. Not only their energy bill. The whole lifecycle of their installation. Regulations can accelerate this change. For instance, buildings should be designed more efficient because regulations should impose it. It would cost far less over the life time of the building, Technology can also help changing behaviors. If you have a dashboard to monitor the cost of your energy in real time. If you see the effect of your actions on your daily consumption, you will make effort to change. 2/We need skills which do not exist today. We spoke about renewables and Energy Efficiency. Almost no school, no university prepares people to this specialty. It is our responsibility to train people. At Schneider Electric, we have launch our own Energy University with free classes on Energy efficiency, renewables, etc. We have partnership with the Universities of Shanghai Tsinghua on Energy efficiency. 3/ As it is a technology revolution, where many sectors have to speak to each other. We need to foster new collaborations between private and public, between companies which were not working together before. The world of today is collaborative. The energy sector must reflect this. Pour accompagner la mise en place de cette révolution, il faut s’armer des meilleures compétences à tous les niveaux. Dans l’énergie, nous faisons face à deux phénomènes le vieillissement de la population actuelle et l’obsolescence des compétences la pénurie de main d’œuvre : rien qu’en région parisienne il manque plusieurs milliers d’électriciens ! Cette tendance se vérifie partout dans le monde. Chez Schneider Electric nous agissons à plusieurs niveaux : Nous développons des programmes de formations à l’énergie pour les populations en difficultés Nous finançons la création d’entreprises dans l’énergie Nous formons nos clients et nos collaborateurs à travers notre Energy University Nous sommes actifs pour le développement de standards et réglementations favorables au développement de l’efficacité énergétique. Nous avons participé activement aux discussions du Grenelle de l’environnement, nous sommes signataires du Pacte de Nicolas Hulot Il faut que nous travaillions ensemble, politiques, associations, industriels, fournisseurs de services, pour anticiper sur les besoins urgents à venir en matière de compétences et ainsi assurer une croissance durable et intelligente de nos business respectifs.
To deploy our strategy and drive the necessary changes in our company, we have developed a company programme that will run for 3 years. Continuing on from the previous program “New”, this program called « One » has the ambition to make us a more unified, simple and efficient company. It is divided into 5 initiatives: 2 fundamentals = Customer 1 (we believe customer satisfaction is the most important driver for sustainable and profitable growth), and 1 team, because our success relies on putting our people first. 3 transformations = become 1 solution provider to provide innovative solutions to our customers, especially in energy efficiency, become 1 leader in “new economies” = the so-called emerging countries that have already emerged and in which we want to develop our presence (In fact, we have a longstanding presence in these regions, and this is a positioning we wish to reinforce in order to be at the epicentre of world economic growth over the next 20 years. Become 1 company , that is, unite and simplify. Between 2001 and 2008, SE expanded at a mean rate of 20 acquisitions per year. We now need to consolidate and simplify, both in front and back office functions in order to become more agile and efficient. -We have already simplified our brand portfolio (From 120 different brands to around 10). -We are now in the process of streamlining our supply chain.
Note to the speaker: You need not comment on all the following awards. This slide is here to demonstrate the fact that we are not the only ones to think highly of our company, external stakeholders do too!!! Best-in-class employer National Trophy for Corporate Citizenship, France One of the 100 Best Places to Work, Brazil Top 50 First Employer by Staffer magazine, Mercer Consulting Group 2008 Best Employer by 51job.com, leading job search portal, China Emerging company of the year Awarded by Frost & Sullivan Building Technologies Excellence to our Buildings Business, India Best-in-class service Best Performance and Cost Improvement Award by Cummins Marquee Level top supplier award, by Emerson 2008 Golden Headset Awards, Best Call Centre, China Best-in-class products Design Award for the full-flat switch new range ZENcelo, Asia-Pacific Best Product and Quality Awards in control and signalling categories, Electricidade Moderna magazine, Brazil Best Lighting Control Product of the Year, Consumer Electronics Association, 2008 Mark of Excellence Awards, for Clipsal® Saturn™ keypad, United States Best Quality Award, Elektroprofesional magazine, for Xantrex™ solar inverters, Spain 2008 European HVAC Electric Drives Technology, awarded by Frost & Sullivan Eco-product for sustainable development award, Pollutec exhibition, France
Our commitment to responsible and ethical business practices has been recognised for more almost 10 years by the main Socially Responsible Investment ratings such as… Dow Jones: Dow Jones Sustainability World + Dow Jones Stoxx Indexes After being selected for the first time in 2002, Schneider Electric is part of the Dow Jones Sustainability World and Stoxx Indexes. This family of indices bases its decisions on research provided by Sustainable Asset Management (SAM), an independent asset manager headquartered in Switzerland. ASPI Eurozone Since 2001 : Recognises the 120 best-performing listed Euro-zone companies in terms of social and environmental responsibility Ethibel : An widely-respected European index The Ethibel Sustainability Index (ESI) provides a comprehensive perspective on the financial performance of the world's leading companies in terms of sustainability for institutional investors, asset managers, banks and retail investors In case you get the question: The only main index in which we are not listed is the Footsie 4 Good (FTSE4Good).
Behind me you can see some of our customers worldwide. We have started the war on waste mandatory to have a sustainable growth for our business, and a sustainable future for our planet.
