1
Schneider Electric
November, 2014
2 Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
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
3 Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
Global consumption must be reduced and CO2 emissions halved to avoid climate change
Untapped energy efficiency potential by segment
Industry
Infrastructure
82%
Buildings and Data Centers
79%
58%
Two thirds of the economic potential to improve energy efficiency remains untapped1.
1:Source: World Energy Outlook 2012 © OECD/IEA, 2012, from now until 2035
4 Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
The convergence of IT and energy is enabling both process and energy optimization
Technology enables new levels of efficiency
The Internet of things: an increasingly connected world (Source: Cisco IBSG April 2011 / Internet World Statistics)
0
10
20
30
40
50
1995 2003 2010 2013 2015 2020
Connected people
Connected objects
[billion]
5 Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
Balanced geographies – FY 2013 revenue1
Schneider Electric: the global specialist in energy management and efficiency technologies
€25 billion revenue FY 2013 revenue1
160,000+ people2 in 100+ countries
4-5% of sales devoted to R&D
43% of revenue in new economies FY 2013 revenue1
Diversified end markets – FY 2013 revenue1 Utilities &
Infrastructure Industrial
and Machines Data Centers & Networks
Non-residential and Residential Buildings
27% 25% 14% 34%
25% North America
20% Rest of World
28% Western Europe
27% Asia Pacific
1:Pro-forma basis including LTM Sep 2013 revenue from Invensys 2:As of February 2014 (including Invensys)
6 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
Nor
th A
mer
ica
33,700 Employees3
38 Factories
A balanced global footprint in 100+ countries
Wes
tern
Eur
ope
47,600 Employees3
92 Factories
Res
t of W
orld
34,100 Employees3
53 Factories
Asi
a P
acifi
c
47,500 Employees3
69 Factories 2,3
6,4
2003 2013
1,2
5
2003 2013
4,1
7,1
2003 2013
1,2
6,8
2003 2013 20031
20132
Schneider Electric 7 - Technology Strategy & Innovation – Nicolas LETERRIER
We transformed the company
€ 60bn
€ 200bn
50%
90% of sales with #1 or 2 ww position
80% of sales Western Europe + North America
~20%
43% of sales
78% of sales Non-residential buildings + Industrial & machines
5 diversified end-markets
Accessible markets Leadership positions
Geographies New economies exposure End markets
More than doubled size
€ 8.7bn
€ 24bn
2003
2013
2003
2013 4 balanced geographies
Schneider Electric 8 - Company Confidential
The one-way energy-only grid becomes two-way energy+data smart grid
Transmission Distribution
Centralised Generation
Utility network Consumers
Industry
Buildings
Data Centres
Infrastructure
Renewable Energy Plants
1
Communication and software at all levels “Smart Grid”
4
Consumers
Consumers Active
Active
Residential
3
Electric Vehicles
3
Active Energy Efficiency: Energy visibility & Means to act
2 Distributed Generation
1 Distributed Generation
1
Smarter Demand
Smarter Supply
le Smart Grid
Demand Response
Schneider Electric 9 - Company Confidential
… leading to a complex competitive environment
Providers need to help their
customers manage this complex Power + IT mix.
10 Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
Connecting, saving and sharing energy: our integrated approach to efficiency
Save Connect Share
11 Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
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.
12 Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
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 13 - Prosumer – Q1/13
Flexibility in building thermal management 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
Equivalent to consumption of 50 homes !
14 Schneider Electric – Technology Strategu – Nicolas Leterrier - s’ Meeting – Nov 3rd, 2014
Sharing capacity across the smart grid and making cities more efficient
Working to save, connect, and share energy and resources, for a world that is more efficient, livable and sustainable.
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
15
A future Smart City
Schneider Electric 16 - Industry Business – January 2014 CONFIDENTIAL
In the convergence of IT & OT Customer requirements from sensor to big data
Con
trol
O
pera
tion
Dev
ices
Virtual IP Network
Moores Law
Mobility
Ente
rpris
e
Analytics tools
DigitalServices
Virtual & Remote Operation
IT
OT
Distributed Intelligence
Sensor Miniaturization
Connected device to Eth/Web
Optimized power conversion
Advanced Mobile HMI
Integrated Engineering S/W
17 Energy Efficiency in Industrial Processes - EU Sustainable Energy Week on 21 June, Brussels
Enlarged vision through Energy in Context
Energy Efficiency 15L per 100 km
Energy Efficiency 15L per 100 km
Energy Information
Energy Efficiency 15L per 100 km
Energy Efficiency 15L per 100 km
Energy Information – with context
profile of track Travel direction Travel direction
Distance Distance
Hei
ght
18 Energy Efficiency in Industrial Processes - EU Sustainable Energy Week on 21 June, Brussels
Energy in Context – Real case
Energy consumed in production context
Afternoon Shift
470kwh
Morning Shift
540kwh
Search for root causes and
benchmark for best-practices
implementation
• New staff • Respect standard procedures for stone loading cycle
Crew #A • Experienced staff • Fine tuned the stone loading cycle
Crew #B
Daily crashed stone
Crusher #1
Morning Shift
450 Tn/8hs
Afternoon Shift
450 Tn/8hs
Schneider Electric 19 - Industry Business – January 2014 CONFIDENTIAL
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 Industry 4.0 and Smart Factory as part of the Internet of Thing & Services
à 4 emerging markets to develop Innovative Industry Solutions ● Cloud ● Mobility ● Big Data / Analytics ● Social Network
20 Schneider Electric
Pervasive technologies
21 Schneider Electric
Operational efficiency is an ongoing journey…
Some “things”
Some “places”
Some “times”
Some “people”
Any thing
Any where
Any time
Any one contextualize
connect
capture | control
Future State Current State
cost form factor
reliability real-time
security visualization
scalability modularity
consumption
governance standards
interoperability
workflow
Help people make the most of their energy
