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Confidential Property of Schneider Electric | Page 1 Aamir Paul SVP US Business Operations Schneider Electric in the US
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Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Jun 27, 2020

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Page 1: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Confidential Property of Schneider Electric | Page 1

Aamir PaulSVP US Business Operations

Schneider Electric in the US

Page 2: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Agenda

Page 2Investor Relations - Schneider Electric

US Business overview

Growing with key market trends

Strength in our core business

Page 3: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Page 3Confidential Property of Schneider Electric |

Schneider Electric US @ a glance

Corporate offices

Manufacturing facilities

Distribution centers

Design centers

Field / Sales offices

• Key US sites

Boston; Nashville; Dallas; Chicago;

West Kingston, RI

• ~19,000 employees

• 22 Manufacturing Facilities

• 225 Locations

Nationwide Business Reach and Local Capability

Page 4: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Page 4Confidential Property of Schneider Electric |

Schneider Electric has a long US history

1902

McBride

Manufacturing

Company

Established in

Detroit

1917

1955

1991

Square D Safety

Switch (1917)

QO Circuit

Breaker(1955)

2007

2004 2011

2014

2017

Page 5: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Page 5Confidential Property of Schneider Electric |

North America is a large and complex market

US states vs country GDPs

Page 6: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

We have a history of growth in North America

North America, a balanced exposure

Energy Management

Industrial Automation

Split by core technologies (FY17 revenues)

Split by end-market(FY17 orders – Non GAAP estimate)

Resi. & Non-Residential

Industry

Infrastructure

IT & Networks

A history of growth over the past decade

(Revenues, €bn)

+40%

North America

And more recently over the past 12

months

c.+7%

Organic growth in North

America over past 12 months

2007 2017

Page 7: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Page 7Confidential Property of Schneider Electric |

Our US organization is set up to serve our customers and grow

US LEADERSHIP

TechnologiesMarket Access

National

Sales

Force

Strategic

Account

Leaders

Channel

Partners

Key Functions

Finance StrategyHuman

Resources

Strong leadership delivering across Markets, Technologies & Functions

R&D Digital

Global Supply

Chain

Marketing

Government /

Regulatory Affairs

Energy Management technologies

Industrial Automation technologies

Page 8: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Supply chain

Human

resources

Sustainability

Awards and recognition

2017 Gartner Supply Chain

Top 25: Europe Top 15

2017 Gartner Supply Chain

Top 25

Page 9: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Agenda

Page 9Investor Relations - Schneider Electric

US Business overview

Growing with key market trends

Strength in our core business

Page 10: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Page 10Confidential Property of Schneider Electric |

We have strong competitive positioning in the US

▪ Leading portfolio combining Energy Management and Automation Technologies

▪ Powerful brands –

▪ Strong Channel-To-Market / Partner relationships

▪ Deep presence in key markets – Data Centers, Residential, Healthcare, Infrastructure

▪ Growing faster through Innovation – products, solutions & software

▪ EcoStruxure solution driving digital transformation and energy optimization

Page 11: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Page 11Confidential Property of Schneider Electric |

We have strong positions across our US markets in Energy Management and Industrial Automation

We are well positioned to benefit from

emerging market opportunities

Innovation

+

Digital deployment

+

Segment expertise

+

Cross- selling

+

Grow services

We continue to build & invest in

our strong core business

Smart homes and buildings

+

Electric Vehicle (EV) adoption

+

New Energy landscape

+

Massive Data Growth

+

Industry of the future

Residential &

Non-Residential Industry

IT &

NetworksInfrastructure

Page 12: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Page 12Confidential Property of Schneider Electric |

Our value chain has many layers with nuanced strategies

Confidential Property of Schneider Electric |

Resellers / Distributors

become a trusted adviser

Partner with

empower

3

2

1

Contractors Integrators OEM VAR

Service Providers / Intermediaries

CDW Logo

Driving ecommerce and digital transformation with all our strategic partnersWell positioned with brand, relationships and offers

Well positioned with brand, relationships & offers

End Users

Page 13: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Page 13Confidential Property of Schneider Electric |

Strength of Industry Specialist Program

• Creating local network of solution providers who share Schneider Electric’s key values

• Helping them become trusted advisors for their end-user / OEM customers so they are

viewed as preferred source for automation and control products and solutions

Customer Pillars

• Inventory availability

and delivery capability

to the customer

• Technical competence

to support the customer

• Market knowledge of

customer’s business

Distributor Pillars

• Market differentiation of the

distributor

• Assistance in the distributor’s

demand generation activities

• Assurance of the distributor’s

return on investment in the

automation and control

business

Page 14: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Page 14Confidential Property of Schneider Electric |

US Process Automation Business

o Service growth by modernizing large installed base

o Broad portfolio (systems, products and services) to leverage investments in petrochemical/chemical

and shale gas/oil markets

o Strong digital offering that helps clients improve profitability

GTM ModelKey segments

Page 15: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Page 15Confidential Property of Schneider Electric |

Aveva combines the asset and operations life cycles

ASSET

PERFORMANCE

MONITOR

AND CONTROL

ENGINEER

PROCURE

CONSTRUCT

OPERATE

AND OPTIMISE

PLAN AND

SCHEDULE

Complete digital definition across all

elements of design, engineering,

construction and production

operations

Complete digital definition and

orchestration of all elements

across production operations

ASSET

LIFE CYCLEIMPROVE RETURN ON CAPITAL

OPERATIONS

LIFE CYCLEIMPROVE PROFITABILITY

Digitizing the Value Chains

Page 16: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Page 16Confidential Property of Schneider Electric |

Strong presence in key customer segments

Healthcare Data Centers

Residential100% exclusive with #1 and #6 builders in the

country

Infrastructure

1st USGBC PEER Platinum Project

Page 17: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Page 17Confidential Property of Schneider Electric |

Transforming to a complete Digital Customer Experience

Goal is to drive a seamless, connected, and effortless omnichannel customer experience

SPECIFICATION

Increase specification

and opportunities

through Building

Information Modeling

INFLUENCE

Grow traffic and leads

through more precise

digital marketing

PURCHASEINSTALL/

SUPPORT

Gain efficiency through

digitized customer care

LOYALTY

Create business

opportunities and

stickiness via digitized

partner relationships

• Partnership with

& other software

vendors

• Embed where our

customers are

• Marketing automation

• Search Engine

Optimization

• Personalization

driving satisfaction

• Social listening

• Crowdsourcing

• Commerce connector

• Selectors, world-class

data — seamless

purchase experience

• Artificial Intelligence

• Video FAQs

• Guided self-service

chat

• Forums

• Mobile

• Online certification,

marketing / lead sharing,

and loyalty programs to

drive partner growth

• Activate via communities

and third-party services

Bu

sin

es

s v

alu

e

rea

liza

tio

n

Expand sales through e-

commerce enablement

One example of our digital transformation

Page 18: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Page 18Confidential Property of Schneider Electric |

We have strong positions across our US markets in Energy Management and Industrial Automation

We are well positioned to benefit from

emerging market opportunities

Innovation

+

Digital deployment

+

Segment expertise

+

Cross- selling

+

Grow services

We continue to build & invest in

our strong core business

Smart homes and buildings

+

Electric Vehicle (EV) adoption

+

New Energy landscape

+

Massive Data Growth

+

Industry of the future

Residential &

Non-Residential Industry

IT &

NetworksInfrastructure

Page 19: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Well-positioned to benefit from emerging trends - leveraging strong positions

in key markets

Page 19Investor Relations - Schneider Electric

Driving Edge datacenters and demand for LV/MV/SP offers

Supported by EcoStruxure and Wiser platforms

Driving demand for Microgrids, ESS, ASCO & rest of portfolio

Emerging trends

Driving demand for EcoStruxure for plant and machine

Opportunities for LV/ MV/ ASCO / EV charging

Massive Data Growth

Smart homes and buildings

New Energy Landscape

Industry of the future

Electric Vehicle (EV) adoption

Page 20: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Agenda

Page 20Investor Relations - Schneider Electric

US Business overview

Growing with key market trends

Strength in our core business

Page 21: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

We help customers carry out their digital transformation thanks to our

EcoStruxureTM architecture and platform

IT Advisor™ ScreenResource Advisor Screen

Page 22: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

“Energy is a major cost component for Hilton Worldwide.

It’s the second largest expense to labor.”

Apps, Analytics

And services

Edge Control

Connected

Products

14.5% energy savings since 2009

Hilton Downtown Atlanta utilizes EcoStruxure Resource

Advisor to manage energy usage

Thomas Webster, Director of Strategic Sourcing Energy Management,

Hilton Worldwide

Automation

Server

Room

Controllers

EcoStruxure

Resource Advisor

EcoStruxure

Building Operation

Guest Room

Management System

Integration with

Property

Management System

#DigitalEconomy | @AamirPaul1Page 22Confidential Property of Schneider Electric |

Hilton WorldwideOne of the top three chains in the world

Washington,

DC (HQ)

For Hotels

Page 23: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

University of Pennsylvania Medical CenterDigital infrastructure for the hospital of the future

Philadelphia,

Pennsylvania

#DigitalEconomy | @AamirPaul1Page 23Confidential Property of Schneider Electric |

“We’re building a hospital that will allow us to deliver the very best care the 21st century can

offer patients –but we’re also ‘future-proofing’ it to ensure that we can quickly and seamlessly

adapt what we do to help our patients in the coming decades.”

for Building

Apps, Analytics

And services

Edge Control

Connected

Products

Largest capital project in campus history

Low Voltage CAPEX Savings up to 5%Future-ready hospital, flexible and upgradable

through next 15-20 years

J. Larry Jameson, MD, PhD, Hodean of the Perelman School of Medicine

EcoStruxure

Building Advisor

EcoStruxure Asset Advisor

EcoStruxure Power

Monitoring Expert

EcoStruxure

Building

Operation

QED2 Switchboards PowerLogicSwitchgear I-line Busway

Page 24: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

A clear strategy for superior performance

Page 24

Investor Relations - Schneider Electric

Superior performance

Strong Attributes

▪ Leading portfolio of energy

efficiency and automation

technologies

▪ Powerful brands

▪ Strong Channel-To-Market /

Partner relationships

▪ Deep presence in key markets

▪ Strong innovation and digital

capabilities

Clear Focus

▪ Segment expertise

▪ Cross- selling

▪ Grow services

▪ Innovation

▪ Digital deployment

▪ EcoStruxure

Well positioned for

emerging trends

▪ Smart homes and buildings

▪ EV adoption

▪ New energy landscape

▪ Massive data growth

▪ Industry of the future

Page 25: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry

Our technologies ensure that

everywhere, for everyone and at every moment.

Page 3Confidential Property of Schneider Electric |

Page 26: Schneider Electric in the US · Schneider Electric in the US. Agenda Investor Relations - Schneider Electric Page 2 ... Industry of the future Residential & Non-Residential Industry