Schneider Electric (SU) 2018年年度報告「OTC」.pdf

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1、Financial and Sustainable Development Annual ReportRegistration Document 2018Ambitious outlook.Positive action.Full accountability.?schneider-Life is On everywhere,for everyone and at every moment.Schneider Electric is leading the Digital Transformation of Energy Management and Automation in Homes,B

2、uildings,Data Centers,Infrastructure and Industries.Safe|Reliable|Efficient|Digital|Sustainable1Schneider Electric Registration Document 2018Corporate Governance ReportFinancial StatementsShareholder InformationStrategic Report0This registration document was filed with the Autorit des Marchs Financi

3、ers(AMF)on March 15,2019,in compliance with article 212-13 of the AMFs general regulation.The issuer prepared this document and the signatories are responsible for the information herein.It may not be used in connection with any financial transactions unless it is accompanied by an offering circular

4、 approved by the AMF.Our highlights+6.6%organic Revenues25.7bn+10.3%organic Adjusted EBITA3.9bn+9%Net Income2.3bn+7%Proposed Dividend Per Share2.35Employees137,000Read more about our business on page 8 2Schneider Electric Registration Document 2018ContentsStrategic Report0 IntroductionA statement fr

5、om Chairman and CEO Jean-Pascal Tricoire 4Schneider Electric at a glance 6Interview with Emmanuel Babeau,Deputy CEO in charge of Finance and Legal Affairs 8Key Performance Indicators 10Our business model 12Our strategy in brief 14Leadership team 151 Groups strategy,markets and business1.Megatrends a

6、nd strategy 182.Our markets 243.Our business in detail 304.Research and development 385.Organizational simplicity and efficiency 446.How we manage risks 497.Risk factors 602 Sustainable development1.Sustainable development at the heart of our strategy 842.Green and responsible growth driving economi

7、c performance 1063.Schneider Electrics commitments towards environmental excellence 1204.Committed to and on behalf of employees 1415.Schneider Electric,an eco-citizen company 1626.Methodology elements on the published indicators 1747 Indicators 1843 Business review RFA1.Trends in Schneider Electric

8、s core markets 1982.Review of the consolidated financial statements 2003.Review of the parent company financial statements 2044.Outlook 205Corporate Governance Report4 Corporate governance report*RFA1.The board of directors 2082.Organizational and operating procedures ofthe board of directors 2223.B

9、oard activities 2274 Board committees(composition,operating procedures and activities)2305.Senior Management 2416.Declarations concerning the situation of the members of the administrative,supervisoryor management bodies 2427.Interests and compensation of Group Senior Management 2438.Regulated agree

10、ments andcommitments 2729.Participation of shareholders toShareholders Meeting 27310.Table summarizing outstanding delegations relating to share capital increases granted by Shareholders Meeting 27311.Publication of information of Article L.225-37-5 of the French Commercial Code 273All of Schneider

11、Electrics regulated information is available in the Finance section on the corporate website atwww.schneider- RFA Annual Financial Report elements are clearly identified in this table of contents with the sign RFA.*This constitutes the Corporate Governance Report.3Schneider Electric Registration Doc

12、ument 2018Corporate Governance ReportFinancial StatementsShareholder InformationStrategic Report0Financial Statements5 Consolidated financial statements at December 31,2018 RFA1.Consolidated statement of income 2762.Consolidated statement of cash flows 2783.Consolidated balance sheet 2794.Consolidat

13、ed statement of changes inequity 2815.Notes to the consolidated financial statements 2826.Statutory Auditors report on the consolidated financial statements 3286 Parent company financial statements RFA1.Balance sheet 3342.Statement of income 3363.Notes to the financial statements 3374.Statutory Audi

14、tors report ontheannual financial statements 3465.List of securities held atDecember31,2018 3496.Subsidiaries and affiliates 3507.The companys financial results overthe last 5years 352Shareholder Information7 Information on the Company and its capital1.General information on the Company 3562.Shareho

15、lders rights and obligations*3573.Capital*3594.Ownership structure 3625.Employee incentive plans Employee shareholding 3636.Shares and stock option plans*3647.Stock market data 3758.Investor relations 3778 Annual Shareholders Meeting RFA1.Report of the board of directors to the ordinary and extraord

16、inary shareholders meeting 3802.Report of the Vice-Chairman independent lead director of the board of directors 3963.Exhibits to the board of directors report:internal regulations of the board and charter of the Vice-Chairman independent lead director 3974.Special reports of the Statutory Auditors 4

17、065.Draft resolutions 4149 Persons responsible for the registration document and audit of the financial statementsPersons responsible for the registration document 425Persons responsible for the audit of the financial statements 4264Schneider Electric Registration Document 2018Introduction2018 was a

18、 great year with strong growth.A strong performance in FY18Schneider Electrics revenues rose to EUR25.7 billion in 2018,representing an organic growth of approximately 7%overall,with our core offerings of Energy Management(Medium Voltage,Low Voltage,Secure Power)and Industrial Automation contributin

19、g to our strong growth,up respectively by+6.3%and+7.6%organic.In 2018 we benefited from our balanced and geographically spread exposure with all regions recording organic growth.Asia Pacific,our largest region with 29%of revenues grew by+10%.It is approximately 6 times the revenues generated 15 year

20、s ago in the area,demonstrating the success of our globalization policy.North America also delivered a strong performance with approximately+8%organic growth.Western Europe,and Rest of the World generated organic growth of+3%and+5%respectively.We continued to deliver profitable growth in 2018,improv

21、ing the operational margin by+50bps organic to 15.1%and delivered a new high in terms of Net Income and EPS(+9.3%),while building our long term capabilities and increasing investments in R&D,Services,and Digital Capabilities.Additionally,we continue to focus on generating attractive returns to our s

22、hareholders.After an active period of acquisitions to build our strong portfolio of technologies,we have returned approximately 80%of our free-cash-flow to shareholders over the past 4 years,rewarding their long-term support for the development of the group.This year,we are increasing our proposed d

23、ividend by+7%to 2.35 per share and initiating a new 1.5 to 2.0bn share buyback program.We accelerated the execution of our strategyAfter a few years of integration,in 2018 we finalized the consolidation of our businesses into two core activities:Energy Management and Industry Automation.Our country

24、organizations combine both businesses to provide our customers with more integrated energy and automation digital solutions to serve their efficiency and sustainability needs.This translates into more cross-selling of technologies,more products provided through an enlarged network of partners,more s

25、ervices,more software,and a more targeted development of systems,which creates a solid base for growth in 2019.More products and the most extensive network of partners worldwideWe continued to design and sell technology(products,services and software)for our customers to integrate,thanks to the most

26、 extensive network of local partners in the world(more than 650,000 worldwide).Our multi-local organizational model is fully operational and adapted to the different local ecosystems,allowing for unmatched proximity to our customers.This year we brought strong innovation to our customers,with almost

27、 150 new launches,showcasing many of them in an Innovation World Tour,with Innovation Summits and Innovation Days gathering nearly 30,000 customers from around the world.An outstanding growth of servicesIn 2018,with a 9%organic growth,we kept developing stronger services.This is just the beginning,a

28、nd they are expected to grow further,in volume and share within portfolio,as there is a huge potential for field and digital services,for buildings,data centers,industry and infrastructure.2018 was a great year with strong growth across both businesses and all geographies.Group revenue and adjusted

29、EBITA increased respectively by+7%and+10%organic,and net income reached a record high.We took on the challenge of energy transition and Industry 4.0,accelerating the execution of our strategy.A statement from Chairman and CEO Jean-Pascal Tricoire5Schneider Electric Registration Document 2018Corporat

30、e Governance ReportFinancial StatementsShareholder InformationStrategic Report0Digitization at scaleIn 2018,we continued to invest in our digital journey.We deployed at scale EcoStruxure,our global,homogeneous and agnostic platform,bringing our customers integrated and digitized solutions to manage

31、the full equation of efficiency and sustainability:Energy management for energy and environmental efficiency and Automation for process efficiency.We enhance the digital portfolio with a full set of integrated offerings and customer value propositions,from asset management to software and digital se

32、rvices,while developing further our operating model and enhancing our capabilities.EcoStruxure growth is in this context clearly above the group average,as we reached in 2018 the target of 2 million assets under management,with an outstanding 34%year over year performance,bringing our customers majo

33、r improvements in efficiency and sustainability but also in safety and reliability.In Software,we made,a big step forward toward digitization in 2018,with double-digit growth.With the AVEVA acquisition in March 2018,Schneider Electric has become a global leader in industrial and engineering software

34、,with a#1 position in process industries.The group offers its customers,regardless of their market (oil and gas,chemicals,naval industry,power plants,water,waste,smart city,or agribusiness,etc.),location,or size,an extensive technology portfolio to serve customers efficiency and performance with sol

35、utions covering all aspects of the digital management of industrial assets,from design through construction to operation.AVEVA contribute strongly in making a very successful integration,developing strong synergies with the rest of Schneider Electric.The year was also marked by the acquisition of IG

36、E+XAO,a leader in design software for electrical installations,strengthening our portfolio and stepping up our offering in specialized software.2018 also saw the launch of Schneider Electric Ventures,with the objective to foster innovation by harnessing the best talent,ideas and technology from insi

37、de and outside of Schneider Electric.It will nurture tomorrows transformational and disruptive innovations with funding,incubation and partnerships.One overarching goal:to serve a sustainable worldAt Schneider Electric,sustainability is at the heart of everything we do.We want what we do to be meani

38、ngful and,through our culture and leadership,we aim to bring energy and efficiency to enable life,progress and sustainability for all.We are thus inventing and delivering technologies for a more sustainable world,i.e.working to make energy cheaper,greener,and reducing the impact of human activity on

39、 natural resources.Reducing energy and raw material consumption is imperative for all of us,from buildings to industry,from cities to data centers.We support our customers on a daily basis in this shift with our digital technologies,and we have set for ourselves credible and ambitious goals for near

40、ly 15 years in our Schneider Sustainability Impact.Each quarter,we measure progress and develop best practices,and I am proud that our performance in 2018 exceeded by far the targets(173%).As a Member of the Board of the United Nations Global Compact,I want to reaffirm my support for the Ten Princip

41、les of the UN Global Compact,and the 17 Sustainable Development Goals.That is why,collectively,within Schneider Electric,we decided to reinforce our ambition for next year in five areas:climate,circular economy,health and equity,ethics,and development,to continue to be a leader in this field.Our com

42、mitment is fully recognized,and we have received numerous external recognitions regarding our progress on these fundamental topics.In particular,in 2018,Schneider Electric was ranked#12 globally for supply chain performance in Gartners Global Top 25,and#2 in the Industry sector.It is a clear recogni

43、tion of all the efforts undertaken to build a tailored sustainable and connected supply chain,with focus on regional manufacturing,and displaying strong credentials for the technologies we propose to our customers in the field of industry 4.0.We have also been selected for 8 years now on the CDP cli

44、mate A list.Building a more sustainable world is a real driver of innovation,a lever for growth and a legitimate factor of pride and belonging for associates and partners.Great people make a great companyIn this spirit,in 2018,Schneider Electric confirmed its place among the worlds leading socially

45、responsible companies.Human potential is at the core of our company.Progress is led by people:Nothing would be possible without our fantastic human capital our employees,partners,customers and communities with whom we operate.People choose to join,stay and remain engaged with Schneider Electric,beca

46、use we all share the same distinctive core values and vision of who we are,of what we do and how we should do it.We create and provide equal opportunities for everyone,everywhere and continuously create an inclusive environment and welcome people from all walks of life.We are empowered to do our bes

47、t and innovate,while living our unique life and work.In 2018,we summarized this new People Vision,to guide our choices and behaviors,into three pillars:being the most meaningful,inclusive and empowered,supported by a mode of organization which is global and connected.2019 outlook:the world is moving

48、 in our directionLooking ahead to 2019,the momentum is good for our business and market,as we serve the two major transitions of the energy world:the Energy Transition and Industry 4.0.We therefore plan to continue to grow and expand our profitability,based on the execution of our strategic prioriti

49、es.We will continue to develop a larger network of partners,growing our services,offering more digital solutions through EcoStruxure for efficiency and sustainability,and a broader line of software and digital services.The world indeed continues to transform,driven by megatrends such as urbanization

50、,industrialization of new economies and digitization of businesses and society.It is becoming more electric,more digital,and more decentralized.These new capabilities are creating new customer requirements across our markets,from cybersecurity to artificial intelligence,from edge computing to clean

51、electrification,from digital twins to smart buildings.We fully address those new dimensions,supplying digital solutions,and we are committed to capture these market opportunities.We will keep on extending our strong community and unique ecosystem,and innovating to benefit our partners,customers and

52、society.We are and will remain a responsible actor contributing,together with you,to the emergence of a better world,more respectful of the environment and individuals.Jean-Pascal Tricoire,Chairman and CEORead Our strategy on page 20+7%Organic Revenue25.7bn+8%R&D investment1.3bnc.5%of revenues+9%Net

53、 profit in 20182.3bn6Schneider Electric Registration Document 2018IntroductionCommercial business 50%Infrastructure and Industry 50%40%14%29%17%North America28%22%Western Europe27%27%Asia-Pacific29%31%Rest of the world16%20%Schneider Electric at a glanceSchneider Electric is leading the Digital Tran

54、sformation of Energy Management and Automation in Homes,Buildings,Data Centers,Infrastructure and Industries.With global presence in over 100 countries,Schneider is the undisputable leader in Power Management Medium Voltage,Low Voltage and Secure Power,and in Automation Systems.We provide integrated

55、 efficiency solutions,combining energy,automation and software.In our global ecosystem,we collaborate with the largest Partner,Integrator and Developer Community on our Open Platform to deliver real-time control and operational efficiency.We believe that great people and partners make Schneider a gr

56、eat company and that our commitment to Innovation,Diversity and Sustainability ensures that Life Is On everywhere,for everyone and at every moment.What we doWhere we do itRead Our markets on page 24 Percentage of revenue by geographyPercentage of total employees by geography Commercial,Industrial,an

57、d residential buildings Data Center and networks Industry Infrastructure and UtilitiesFour end markets7Schneider Electric Registration Document 2018Corporate Governance ReportFinancial StatementsShareholder InformationStrategic Report0Our products and solutionsEnergy management Medium voltageMedium

58、voltage and Grid automationThe Medium Voltage business provides our customers with the answer to the complex equation of the energy transition.Medium voltage electrical distribution products,solutions and services;Electrical grid automation and protection solutions;Integrated management software for

59、 sensitive mission infrastructure.17%Low voltageLow voltage and building automationThe Low Voltage business addresses the needs of all end-markets from residential to commercial buildings,industrial business sectors,infrastructure and data centers.Building comfort and energy efficiency;Low voltage e

60、lectrical distribution products and solutions.45%Secure powerSecure energy,cooling&servicesThe Secure Power business specializes in critical power products and solutions for data centers and other applications where power continuity and quality are essential(hospitals,industries,etc.).Distributed Se

61、cure Power,for homes and buildings;Full solutions for data centers and Edge computing.14%Industrial Automation Industrial automationFull solution for machine and process automation Comprehensive automation and control solutions and products for production machinery and production plants;Distributed

62、control,instrumentation and safety systems for process automation;Software for the design(AVEVA)management of industrial operations,modeling/simulation and asset management.24%Read Our business in detail on page 30 No.1WorldwideNo.1WorldwideNo.1WorldwideNo.4Worldwide8Schneider Electric Registration

63、Document 2018IntroductionQ&A with our Deputy CEO:Emmanuel Babeau2018 in briefMarch 29Schneider Electric Opens New East Asia&Japan Headquarters in SingaporeApril 3Schneider Electric transforms its Le Vaudreuil site into a smart factory showcase using EcoStruxure for IndustryApril 5 6Schneider Electri

64、c hosts more than 5,000 customers,partners and influencers at its Global Innovation Summit in ParisApril 5Schneider Electric,Danfoss and Somfy join forces to create a Connectivity Ecosystem for residential,mid-size building and hotel marketsSeptember 20Two Schneider Electric smart factories recogniz

65、ed as the Lighthouses of the Fourth Industrial Revolution by the World Economic ForumNovember 13Schneider Electric boosts its innovation ecosystem with Schneider Electric Ventures to identify,nurture and support bold ideas January 25Schneider Electric takes control of IGE+XAO after the successful te

66、nder offerMarch 1Schneider Electric announces the completion of the combination between AVEVA and the Schneider Electric industrial software business March 7Schneider Electric launches a capital increase reserved for employees May 1Schneider Electric,partners with Temasek to buy Larsen&Toubros Elect

67、rical&Automation business and to combine it with its Low Voltage&Industrial Automation Products business in IndiaStrategy,technologies&businessesFinanceIn 2018,we delivered strong operational and financial performance,reaching a new record high EPS.What were the highlights of the 2018 performance fo

68、r Schneider Electric?Strong execution and focus on our strategic priorities were key to delivering the strong operational and financial performance in 2018.With the good momentum in products,services and software,we recorded 6.6%organic growth and reached 25.7bn in revenue.Our gross margin continues

69、 to develop well and reached 39%,improving consistently over the past three years,reflecting our focus on high value-added products and solutions.Interview with Emmanuel Babeau,Deputy CEO in charge of Finance and Legal Affairs9Schneider Electric Registration Document 2018Corporate Governance ReportF

70、inancial StatementsShareholder InformationStrategic Report0Free cash flow2.1bn+40bps before Forex Return on Capital Employed11.8%January 22Schneider Electric features among the 104 companies included in the 2018 Bloomberg Gender-Equality Index February 7Schneider Electric is named as one of the Worl

71、ds Most Admired Companies,according to the 2018 list published by Fortune.The company ranks fifth in the electronics industryOctober 9Schneider Electric ranks in the top 15 companies in the world for Gender Equality,according to Equileap10 13 OctoberSchneider Electric announces the winning team of G

72、o Green in the City 2018,its international student case study competition focusing on innovative energy solutions for smart cities January 23Schneider Electric launches a partnership with Sustainable Energy for All(SEforALL)February 12Schneider Electric is named one of the 2018 Worlds Most Ethical C

73、ompanies by the Ethisphere InstituteApril 5Schneider Electric unveils EcoStruxure for Energy Access,an affordable,flexible and open architecture and platform that improve profitability and efficiency of off-grid installations with data-driven analysisJune 20Jean-Pascal Tricoire is appointed to the B

74、oard of the United Nations Global CompactNovember 27Schneider Electric supports#GivingTuesday 2018 and involves its employees in 40 countries December 11Schneider Electric presents Villaya Emergency,a containerized mobile solar microgrid solution designed for ease of use in any humanitarian emergenc

75、yHuman CapitalCorporate Social ResponsibilityWe kept working on efficiency of our support function costs(SFC)and improved our SFC to revenues ratio by 50bps organically while continuing to invest in our digital and marketing capabilities.Through the combination of a good level of gross margin and SF

76、C leverage,we grew our adjusted EBITA by+10%organic,exceeding for the second year in a row the top end of our targeted range(+4%to+7%)and our adjusted EBITA margin improved by 50bps organically to reach 15.1%.Recent acquisitions(Asco Power,IGE+XAO and AVEVA)also contributed positively,all delivering

77、 a strong performance.As a result of this strong operational performance,coupled with an improving cost of financing,our Net Income increased by+9%.Overall,we are reaching a new record high level in terms of earning per share,enabling us to increase our proposed dividend by+7%.The Group targets an o

78、rganic growth in operating profit in 2019,what are the key levers?Our priority for 2019 is to continue to deliver profitable growth,targeting organic growth in our adjusted EBITA within the range of+4%to+7%,in-line with our previously stated average yearly objective for the period 2017-2019.To deliv

79、er this strong performance,the Group will use two levers:firstly,organic topline growth where the Group targets between+3%and+5%and,secondly,organic adjusted EBITA margin expansion of+20bps to+50bps.Could you share your medium-term ambition to increase operating profitability?We have the ambition to

80、 increase our operational margin and therefore move the Group closer to the upper-end of our stated 13%to 17%adjusted EBITA margin range which we target through the cycle.In order to achieve this ambition,we will keep working on the levers within our control to improve the underlying performance of

81、Schneider Electric.We will continue to focus on generating profitable growth while maintaining a strong focus on industrial productivity,organizational simplification and efficiency.We will also further concentrate our portfolio of technologies on the core Energy Management and Industrial Automation

82、 businesses and have put under review assets representing c.1.5 to 2bn in revenue terms.Overall,we are targeting to improve the adjusted EBITA margin by c.200bps(before FX)over the next three years.How do you intend to drive shareholder value in the next years?We have positioned the company on two p

83、owerful and structural global demand drivers,specifically the energy transition and the industry of the future,which represent strong opportunities for the business in the medium and long term.Our two synergetic businesses:Energy Management and Industrial Automation have leading market positions in

84、their respective markets and are ideally positioned to benefit from these secular trends while delivering strong financial performance to our shareholders.With close to+8%organic growth per year in our operating profit over the past three years,our objective is to continue generating strong earnings

85、 growth through a combination of top line growth and margin expansion.Combined with the strong FCF generation and our solid balance sheet,this allows us to offer attractive returns to shareholders through a progressive dividend policy and a newly launched 1.5bn to 2bn share buyback program over the

86、next 3 years.Emmanuel Babeau,Deputy CEO in charge of finance and legal affairs10Schneider Electric Registration Document 2018Introduction24.926.624.524.725.72017201820162015201413.9%13.7%14.3%14.8%15.1%201720182016*201520141,9411,4071,7502,1502,33420172018201620152014Strong performance in 2018,execu

87、ting on our strategic priorities2018 delivered strong top line organic growth,improved margin in both businesses,and delivered a new high in terms of Net Income and EPS,while the Group kept building long-term capabilities and increasing investments in R&D,Services,and Digital Capabilities.2018 is an

88、other year of acceleration of the strategy execution.The Group provides its customers with complete solutions,cross-selling multiple technologies,more products provided through an enlarged network of partners,more services,more software,and a more targeted development of systems,which creates a soli

89、d base for growth in 2019.Key Performance IndicatorsIn billions of euros25.7In%of consolidated revenues15.1%In millions of euros2,334Revenues were up+3.9%,(+6.6%organic),a net scope effect of+1.8%mostly due to AVEVA and ASCO consolidation,and a negative exchange rate effect of-4.5%,mainly driven by

90、the depreciation of the US dollar against the euro.Both businesses saw strong organic growth,with Energy Management up+6.3%,delivering solutions integrating Medium Voltage,Low Voltage and Secure Power technologies,and with Industrial Automation at+7.6%.The Group saw continued good progress for its E

91、coStruxure offers,including cybersecurity services.All geographies grew organically over the year,with the largest region,Asia Pacific,growing at+10%.North America delivered+8%,Western Europe+3%,Rest of the world+5%.2018 Adjusted EBITA reached a record 3,874 million,increasing organically by+10.3%,e

92、xceeding the high end of the revised FY 2018 target,and the Adjusted EBITA margin improved +50 bps organically to 15.1%,thanks to strong volumes,good productivity and a balanced approach between investments and cost control.This represents the third consecutive year of Adjusted EBITA margin expansio

93、n,increasing by+210 bps organic over the period covering both lower growth and higher growth years.*2016 figures restated due to the deconsolidation of the Groups solar activity.The Net Income(Group Share)reached a record level of 2,334 million in FY 2018,up+9%from FY 2017.Restructuring charges were

94、-198 million in 2018,in line with the expected level of between 150 million to 200 million.Other operating income and expenses had a negative impact of-103 million,mostly due to M&A and integration costs.The amortization and depreciation of intangibles linked to acquisitions was-177 million with the

95、 increase mainly due to intangible assets recognized in association with the AVEVA and ASCO acquisitions.Net financial expenses were down to-310 million,driven by a continued reduction in the cost of debt and lower FX effects.Income tax amounted to-693 million.The effective tax rate for the year was

96、 22.5%,up from 21.1%last year,in line with expectations.The result of Discontinued operations was-23 million and share of profit on associates remained stable at +61 million.RevenueAdjusted EBITANet income11Schneider Electric Registration Document 2018Corporate Governance ReportFinancial StatementsS

97、hareholder InformationStrategic Report01,7042,0452,2162,2532,102201720182016201520143.392.473.123.854.212017201820162015*20141.922.002.042.202.35201720182016201520140102030405060708090Jan 2014Jan 2015Jan 2016Jan 2017Jan 2018Dec 2018 Schneider ElectricCAC 40In millions of euros2,102In euros4.21In eur

98、os2.35The good topline growth of the Group resulted in an increased consumption of working capital,up 454 million in 2018.Operating Cash Flow,net of CAPEX,was reported at 2,635 million,up+303 million in 2018,due to strong net income growth.This was offset by an increase in net capital expenditure wh

99、ich reached 770 million,representing 3%of revenues,due in part to supply chain capacity investment and capitalized R&D linked to new products.Cash conversion was 90%in 2018 with the Group target of 100%across the economic cycle unchanged(4-year average 106%).Earnings per share were up strongly at+9%

100、,mostly driven by operating margin expansion and share buyback,as the Group has repurchased 12.4 million shares for a total amount of c.829 million in 2018.Having completed its current c.1bn share buyback program announced mid-2017 ahead of schedule,the Group is initiating a new 1.5bn to 2.0bn share

101、 buyback program over the next 3 years(2019-2021).*2015 EPS adjusted for business disposals impact and Pelco impairment is 3.73 vs.3.51 in 2014.Combined with the strong free cash-flow generation and a solid balance sheet,the margin increase allows the Group to offer an attractive return to sharehold

102、ers through a progressive dividend policy meaning no year-on year decline.The proposed dividend is up+7%,subject to shareholders approval at the Annual Meeting of April 25,2019,for payment on May 3,2019 and a payout representing more than 50%of net income.Free Cash FlowEarnings per shareDividend per

103、 shareRead Our performance on page 274 Share price against CAC 40 index over five yearsFull-year revenues up+3.9%+6.6%organicallyGood cash generation2.1bnfree cash-flowFull-year adjusted EBITA15.1%+30bps,+50bps organicallyProposed dividend of2.35up+7%12Schneider Electric Registration Document 2018In

104、troductionWe believe that great people and partners make Schneider a great company and that our commitment to Innovation,Diversity and Sustainability ensures that Life is On everywhere,for everyone and at every moment.A vision of a more:Electric,Digital,Decarbonised and Decentralised world.Our busin

105、ess modelOur resourcesHuman 137,000 employees 82%of independent administratorsIndustrial 230 industrial and logistics sites certified ISO14001 98 distribution centers around the world 178 sites labeled towards zero waste to landfillInnovation c.5%of revenues invested in R&D 8,500 R&D engineersEnviro

106、nmental Procurement volume 12bn Energy consumption,1,258 TWh equivalent Water consumption,2,700 thousand m3 Financial Shareholders equity,22.3bn Free cash flow,2.1bn Green Bond,300m emitted in 2015 2 core offerings of Energy Management and Industrial Automation serving the Energy Transition and Indu

107、stry 4.0.Integrated and digitized solutions through EcoStruxure,our global,homogeneous and agnostic platform for efficiency and sustainabilityOur ecosystemCommon values:Meaningful,Inclusive,Empowered*Of Schneider Electrics revenue.With global presence in over100 countries,Schneider is the undisputab

108、le leaderin Power Management Medium Voltage,Low Voltage and Secure Power,and in Automation Systems90%*13Schneider Electric Registration Document 2018Corporate Governance ReportFinancial StatementsShareholder InformationStrategic Report0Our commitments:Schneider Electric commits,in the short and long

109、 term,to contribute to making the planet more sustainable for all its stakeholders.202020502030Our value creationProduct and Services serving the Energy Transition +13.8%turnover for our Energy and Sustainability Services 6.59bn revenue from our new Green Premium portfolio51mMetric tons CO2 saved on

110、 our customers end thanks to our EcoStruxure offers 43,572Metric tons of avoided primary resource consumption through ECOFITTM,recycling and take-back programsInspired,trained and committed employees Medical Incident Rate per million hours worked,0,94 5,691 volunteering days thanks to our VolunteerI

111、n global platformLimit global warming below+2C in line with the Paris Agreement67%Employee Engagement Index3.2mTraining hoursResolute social and societal commitments 92%of employees are working in a country with commitment and process in place to achieve gender pay equity 21.6%of our leaders are wom

112、en.We target 30%by 2020+1,300 decentralized electrification systems and solar micro-grids installed since 2015196,162Underprivileged people trained in energy management since 2015155Suppliers under Human Rights&Environment vigilance received specific on-site assessmentStrong financial performance Pr

113、oposed dividend per share 2.35,+7%vs 2017+10%Operational margin organic growth25,720m revenue2,334m net incomeFrom the business partnership to a culture of dialogue with all our stakeholders:Clients Civil Society Social Institutional Technical Financial Partners14Schneider Electric Registration Docu

114、ment 2018IntroductionOur strategy in briefA strategy that leverages market opportunitiesRead our strategy in full on page 20 Strategic pillarsDriving the worlds digital energy transitionWe drive the energy transitionion byby prprovoviding prodoductucts as andndsolsolutiutionon forfor acactivtive ee

115、enernerg gy management t t to ho homomes,buildings,data centers,infrastructures,in ndusdust itries,and throughg out re emote comcommunmuniti itieses.OuOur ar advadvancenced dd digital solution ns as andnd servicesenable all actors of the electric cityity vavaluelue chchain,from produducercers s,to p

116、rosumers and consumers to efficiently opeperatrate e in a decentralized environment.With the EcoStruxure ecosystem we bring a comprehensiveresponse to the challenges of digital transformation to our partner network,the largest in the industry.We facilitate interaction between our partners,across the

117、 value chain,by bringing them on to our open platform and with a digitallyenabled ecosystem.Scaling the digital transformation of Customers and Partners through our Unique EcosystemThe one full-liner in automation with seamless integration of energy managementWe We deliver complete e IIoTIoT solutio

118、ns in process and hybridmanufacturin ing wg with integrated solutions for operational efficienc cy and energy management.Digital services areboboosting our automation solutions to increase performance from assets,operators and enterprise wide optimization.We offer a wide range of products,services,s

119、oftware and solutions.Each of these offers have different revenue growth and profitability profiles,complementing each other to fulfill our partners and customers needs.Building a full suite of offers to fulfill our partners and customers needs15Schneider Electric Registration Document 2018Corporate

120、 Governance ReportFinancial StatementsShareholder InformationStrategic Report0 Business Global functions OperationsDriving the operational management of the GroupLeadership teamExecutive Committee(as of February 13,2019)Jean-Pascal TricoireChairman and Chief Executive OfficerHerv CoureilExecutive Vi

121、ce-President,DigitalChristel HeydemannExecutive Vice-President,France OperationsYin ZhengExecutive Vice-President,China OperationsEmmanuel BabeauDeputy Chief Executive Officer in charge of Finance and Legal AffairsEmmanuel LagarrigueExecutive Vice-President,InnovationBarbara FreiExecutive Vice-Presi

122、dent,Europe OperationsFrderic AbbalExecutive Vice-President,Services Olivier BlumExecutive Vice-President,Global Human ResourcesChris LeongExecutive Vice-President,Global MarketingLeonid MukhamedovExecutive Vice-President,StrategyAnette ClaytonExecutive Vice-President,North America OperationsMourad

123、TamoudExecutive Vice-President,Global Supply ChainLuc RemontExecutive Vice-President,International OperationsPhilippe DelormeExecutive Vice-President,Energy ManagementPeter HerweckExecutive Vice-President,Industrial automation16Schneider Electric Registration Document 2018Groups strategy,markets and

124、 business1In this section1.Megatrends and strategy 181.1 Megatrends in our environment are creating opportunities 181.2 Our Group Strategy captures Market Opportunities 201.3 Ambitious financial targets for attractive shareholder returns 221.4 Our people vision drives performance 232.Our markets 242

125、.1 Multiple accesses to markets 242.2 Serving four attractive end-markets 283.Our business in detail 303.1 Global leadership in two businesses&four technologies 303.2 Company history and development 364.Research&development 384.1 Identifying,supporting and nurturing innovative companies 404.2 Transf

126、orming through company programs 425.Organizational simplicity and efficiency 445.1 A customer-focused organization 445.2 Manufacturing and supply chain:global redeployment 465.3 Purchasing:selection andinternationalization 486.How we manage risks 496.1 Definition and objectives of internal control a

127、nd risk management 496.2 Organization and management:internal control key participants 506.3 Distributing information:benchmarks and guidelines 536.4 Risk identification and management 556.5 Control procedures 576.6 Internal control procedures governing the production and processing of consolidated

128、and individual company accounting and financial information 597.Risk factors 607.1 Principal risks 6017Schneider Electric Registration Document 2018Corporate Governance ReportFinancial StatementsShareholder InformationStrategic Report118Schneider Electric Registration Document 2018Groups strategy,ma

129、rkets and business1.1 Megatrends in our environment are creating opportunities Our world continues to transform,driven by megatrends such as Urbanization,Industrialization of New Economies and Digitization of businesses and society.This has put in motion a significant transition of the Energy world,

130、boosting electricity consumption while driving the Decentralization and Decarbonization of energy generation.1.Megatrends and strategyBy 2030 there will be an additional+1 billion people living in cities.(1)Decarbonization of energy can save 10 billiontons of CO2 by 2040(equal to Chinas current emis

131、sions).(2)Industrialization in New Economies will drive up energy consumption in the Industry sector by 80%(2)Digital transformation can increase productivity yearly by+2pts over the next 10 years.(3)UrbanizationDecarbonizationIndustrializationDecentralization will increase local energy production t

132、o over 30%in leading markets.(2)DecentralizationDigitization(1)United Nations(2)Bloomberg New Energy Finance(3)McKinsey19Schneider Electric Registration Document 2018Corporate Governance ReportFinancial StatementsShareholder InformationStrategic Report1The world of energy is in transition.Global ene

133、rgy demand is growing at 1%annually(6),yet electricity demand is growing at more than twice(7)that rate,even 4x according to more aggressive scenarios(8).Several factors are driving this transition:Urbanization at global scale,increasing the rate of electrification,especially in residential and comm

134、ercial buildings.Industrialization of New Economies,as electricity is the primary source of energy for modern development.Digitization of businesses and society,as IT,modern appliances and applications are all powered by electricity.Decarbonization of energy,as electricity is the primary vector for

135、it through renewable energies.This involves the migration of the power sector towards a greater mix of renewable energies through the rapid deployment of clean energy technologies.Electrification of transportation driving the biggest energy shift from oil to electricity.At Schneider Electric,we beli

136、eve that the future will be electric:renewable deployment accelerates as costs continue to drop year on year battery technology develops and changes power infrastructure architectures decarbonization becomes mainstream in public policies the world continues to develop into the age of digital economy

137、,powered by electricityThis future will require a new set of values as the world operates a paradigm shift towards decentralized and intermittent renewable power.Decentralization will drive a rearchitecture of the grid,creating increased flexibility,efficiency and new market models to meet new deman

138、ds from customers and local producers.The core source of innovation to tackle those challenges is on the demand side,which has a potential untapped today in current centralized architecture.The demand side,where 70%(6)of the worlds energy is still used today without any efficiency performance requir

139、ements,provides an untapped source of energy and financial savings.Digitization of the demand side is the foundation driving the energy transition towards clean electrification,i.e.all electric and fully decarbonized,used in the most efficient way.LidlLidl and Schneider Electric have built Finlands

140、largest,100%renewable,industrial microgrid for its new and innovative distribution center.The EcoStruxure Microgrid Advisor was implemented to simplify the integration of distributed energy resource(DER)and allow facility managers and microgrid operators to collect,forecast and automatically optimiz

141、e operations using real-time data and predictive machine learning algorithms.This in turn allows Lidl Energy Management Teams to monitor and manage:the microgrid control system,energy use optimization,power and heat demand response,energy storage,and a solar electricity system as well as a heating a

142、nd cooling system.Digital transformation is a key driving force of our markets.In the past 20 years,the Internet has connected 3.8 billion people together,and will add another 3 billion by 2030(4).We have just entered the next phase of Internet deployment with the Internet of Things(IoT),which shoul

143、d see the number of connected devices approximately double every 4 years.Over the next years there will be 10 times more devices connected than people and by 2020 the Internet will connect over 30 billion devices(5).The increase in connectivity is complemented by access to real-time information thro

144、ugh enhanced and competitive computing capabilities(on the cloud or at the edge),which contribute to lowering the cost of big data collection.This in turn accelerates the development and use of Machine Learning,AI and Augmented Reality across all industry sectors.In particular,edge computing will dr

145、ive innovation closer to users and operations as companies are able to bring intelligence to the edge,augment traditional automation,and improve customers and employees experiences.Finally,these new capabilities are creating new customer requirements,turning cybersecurity into a major discipline acr

146、oss our markets.Grand MedicaGrand Medica implemented EcoStruxure for Healthcare to build a state-of-the-art healthcare facility.Used from the beginning of the design process EcoStruxure provided real-time,IoT-enabled visibility into all engineering functions and now helps Grand Medica to gain import

147、ant efficiencies;a reduction in electrical operational costs by 20%,a reduction in thermal-energy consumption by nearly one third;an optimized electrical distribution system for future upgrades;and$176,000 in CapEx savings due to product compatibility.The future is ElectricThe present is Digital(4)T

148、he World Bank(5)IHS(6)International Energy Agency(7)International Energy Agency,Bloomberg New Energy Finance(8)Shell Sky scenario,Energy Transitions Commission,Internal20Schneider Electric Registration Document 2018Groups strategy,markets and business1.2 Our Group Strategy captures Market Opportunit

149、iesSchneider Electric is at the forefront to capture and drive these opportunities with the innovative approach to integrated energy management and industry automation that we deliver across our end markets(Homes,Buildings,Data Centers,Infrastructure and Industries)through complementary business mod

150、els and channel access,leveraging our extensive partners network.With EcoStruxure,our technological leadership and our commitment to innovation will continue to benefit our partners,customers and society.1.Megatrends and strategyDriving the worlds energy transitionSchneider Electric has developed a

151、unique portfolio of products and solutions for energy management in homes,buildings,data centers,infrastructures and industrial plants.Our solutions typically enable savings of 30%9,based on data provided by past projects.Schneider Electric has the largest portfolio of energy management solutions to

152、 meet the new needs of the grid as well as the demand side.Innovative,advanced digital solutions and services enable utilities to operate and maintain more reliable,resilient,and efficient grids,enabling the smooth integration and management of distributed energy resources into power networks.Digiti

153、zed microgrid solutions bring new levels of flexibility to the demand side and our power architectures allow end users to efficiently control and optimize their consumption and processes.Finally,Schneider Electric also provides services,enabled by software,to connect,optimize,and impact the business

154、 of energy and sustainability for end users.With over 30B energy spend under management Schneider Electric advises customers on their energy procurement strategies,enabling companies to adopt more sustainable and efficient energy profiles,a must do as the number of market actors increases alongside

155、demands for decarbonized,reliable and cost-effective energy solutions.The one full-liner in automation with seamless integration of energy managementSchneider Electric is the sole full-liner in industrial automation providing our customers with integrated solutions for operational efficiency and ene

156、rgy management.Our process automation and manufacturing automation,deliver complete IIoT(Industrial Internet of Things)enabled solutions for the continuous process,hybrid industries and industrial machines.Through EcoStruxure,built upon leading smart connected devices,a complete renewed edge control

157、 and leading software platform,Schneider Electric delivers compelling and scalable solutions to improve efficiency and energy management for the whole life-cycle of plants and machines.As industries are transforming to be more digitized,IIoT services are boosting our automation solutions to increase

158、 performance from end user assets,notably through predictive maintenance,longer lifetime,optimized resources consumption including energy.They can also significantly empower operators,notably with the use of augmented and virtual reality for advanced training solutions and to support operators in ma

159、king faster and better decisions.Our references have shown that productivity can be improved by around 25%(9)through the proper deployment of digital technologies.IIoT also presents Industries with a unique opportunity to unlock process innovations to combine efficiently the aim of profitable growth

160、 for Industry and the concern for a sustainable development.Innovative IIOT enable the reduction of products and solutions impact on the environment through optimized materials usage,decarbonization of energy demand and extended life cycle of goods.The result is a reduction in the usage of natural r

161、esources and energy,and a way to a resilient and secured supply chain to support a circular economy.(9)Internal review21Schneider Electric Registration Document 2018Corporate Governance ReportFinancial StatementsShareholder InformationStrategic Report1Energy spend under management30B+Qualified techn

162、icians and domain experts37,000Scaling the digital transformation of Customers and Partners through our Unique EcosystemSchneider Electric has developed the widest network of distribution and partners in the industry providing a unique platform with multiple accesses.We work with many types of partn

163、ers,such as distributors,system integrators,contractors,panel builders,electricians,machine manufacturers and others,as well as with our end customers.Our balanced global geographical footprint enables us to provide optimal services to our global customers,in every location,as well as serving local

164、customers according to local needs.Through EcoStruxure,Schneider Electric brings a comprehensive response to augment our partners and customers digital capabilities.EcoStruxure,is an ecosystem consisting of a Platform,Domain expertise,a Community,and Lifecycle tools,across 6 domains Building,Power,I

165、T,Machine,Plant and Grid.The Platform.with a complete and open architecture per domain bringing greater value to partners and customers.Our architecture is based on connected products open for integration,including with 3rd parties,delivering the best of Edge&Cloud,with cybersecurity,plug&play conne

166、ctivity and system integration capabilities.Domain Expertise.We have over 15,000 application engineers around the world supporting customers to solve their problems.The Community.A platform is only worth the community that works on it.We made it an open ecosystem so developers can meet and exchange

167、ideas and innovation.We have today almost 500,000 sites,20,000+developers,650,000 service providers and partners and 3,000 utilities,with which we connect digitally as a community.Lifecycle tools.Digital tools enable to break the traditional wall between capex and opex and help manage the lifecycle

168、of an installation efficiently.Be it the lifecycle of an asset or the operations lifecycle,improvements are enabled through the deployment of digital twins,within an integrated software approach.Schneider Electric aims to provide best-in-class digital experience to our customers and partners to furt

169、her strengthen our long-term relationships.Our digitized and dynamic sales&marketing channels provide customers with easy access to up-to-date information on our offers and company,be it on social media,our web or our partners portals.We deliver a digitized and tailored customer service experience f

170、rom the design phase to operations and maintenance.Building a full suite of offers to fulfill our partners and customers needsSchneider Electric offers a wide range of products,services,software and solutions.Each of these offers have different revenue growth and profitability profiles,complementing

171、 each other to fulfill our partners and customers needs.With a strategy of accelerated growth of our profitable businesses and improvement in our systems,Schneider Electric focuses on selling:More products through our unparalleled partner network offering a wide range of market-leading products supp

172、orted by a superior digital customer experience.Our products offer best-in-class technology to our distributors and direct partners,such as contractors,system integrators and electricians,who,in turn,have the ability to reach large numbers of small and medium-sized customers.Our connected products,t

173、he“things”of IoT,connect seamlessly to higher-level systems and software,with embedded cybersecurity.More services to partners and end users to maximize the business value of their installations and optimize their processes.Schneider Electric offers a wide range of services,such as digitally enhance

174、d field services to our large installed base,digital services providing customers with the right information in the right place and time and advisory services,such as energy management and sustainability services helping end users understand and optimize their energy and resource use.With a network

175、of over 37,000 qualified technicians and domain experts,Schneider Electric gives our customers optimized performance and peace of mind.More software to drive efficiency and control for our partners and end users.In the past 5 years,Schneider Electric has developed a full portfolio of software,apps,a

176、nd analytics to permit,enable and catalyze optimization.With AVEVA,we have created a global leader in industrial software,with scale and relevance in key markets and an extensive technology portfolio.This will provide our customers with comprehensive and open software solutions offering an unmatched

177、 set of end-to-end solutions covering all aspects of digital asset management from process simulation to design,construction and manufacturing operations.Better systems where we focus on delivering more specialized systems(equipment&projects),both through our partners or direct to end users,with tes

178、ted and validated reference architectures.They provide significant opportunities to develop greater customer intimacy and stickiness through dialogue with final end users,which in turn helps inform the Groups quest for continuous innovation.22Schneider Electric Registration Document 2018Groups strat

179、egy,markets and business1.Megatrends and strategy1.3 Ambitious financial targets for attractive shareholder returnsSchneider Electrics opportunities,strategy and business positioning have led its management to define ambitious targets for the company.Over the long term,the key priorities remain focu

180、sed on profitable growth,cash conversion and capital efficiency.Two sets of targets have been defined:business performance targets and capital efficiency targets.Additionally,the Group shared in February 2019 its margin ambition over the next 3 years(2019-2021):The Group will focus on profitability

181、levers within its control,with an aim to improve adjusted EBITA margin by c.+200 basis points(at constant FX),assuming no major change to the current macro-economic environment.This underlying improvement would be achieved through:Organic growth Portfolio Optimization Organizational Simplification&E

182、fficiency Continued Productivity.Across the economic cycle(1)performance targetsAcross the business cycle capital efficiency targets Average organic revenue growth:3 to 6%across the cycle;Adjusted EBITA:margin between 13%and 17%of revenues;Cash conversion:around 100%of net profit converted into free

183、 cash flow ROCE(2):between 11%and 15%;Progressive dividend:payout around 50%of net income;Capital structure:retain a strong investment grade credit rating(1)Schneider Electric defines a business cycle as period including a slowdown and an expansion,or a period in between.This concept allows investor

184、s to estimate the Groups long-term growth potential across a business cycle.The length of a business cycle can vary and cannot be forecast.(2)ROCE is defined as:adjusted EBITA after tax/Average capital employed.Capital employed is defined as:Shareholders equity+Net financial debt+Adjustment for asso

185、ciates and financial assets.23Schneider Electric Registration Document 2018Corporate Governance ReportFinancial StatementsShareholder InformationStrategic Report11.4 Our people vision drives performance Great people make Schneider Electric a Great company.This is our People Vision.The world around u

186、s is changing and there are several megatrends like industry re-configuration;digital proliferation;global/local rebalancing;and a new type of workforce that are changing the future of work.Energy transition requires us to be at the forefront of our markets,and develop a vision with our customers,su

187、pported by faster innovation,technology and deep insights.Therefore,we need to empower our people and shape our organizational culture to meet this challenge.Digitization at our customers,suppliers and for our employees is changing the way we work,and creating a multitude of new opportunities.It is

188、a great opportunity to leverage our meaningful purpose and pioneer the transformation of energy and processes to turn the bold ideas of our customers into reality.Globalization enables us to access Talent globally,but also reinforces the need for development,and retention through a best-in-class wor

189、kplace that offers long-term growth and learning pathways.Paradoxically,the world is becoming more local as well,and this requires us to adapt fast,and equip our people to leverage their global knowhow to manage the local challenges of tomorrow.The very nature of the workforce and the job market is

190、evolving.There are up to five generations working side by side,and each generation has a varied set of expectations of their employer.This in turn is leading to a shift towards personalization of the employee experience.These mega-trends are influencing how we work together,and the ways in which we

191、ultimately create value for our customers.We have updated our people vision to accelerate our business performance and transformation of our culture and leadership.At Schneider Electric,we are changing our thinking to build a company of the future,in sync with the changes occurring in our markets as

192、 well as with our customers.Our People Vision consists of the following:Our Employee Value PropositionOur Core ValuesOur Leadership ExpectationsOur Employee Value Proposition(EVP)is our commitment to engage existing and future talent.Its the reason why people join,stay and remain engaged with Schnei

193、der Electric and it shows how we differentiate ourselves as an employer.Our Core Values determine who we are,what we do and define the way we work together and deliver on our EVP promise.Our values guide our choices and illustrate the behaviors we expect our employees to demonstrate.Our Leadership E

194、xpectations show how we expect Leaders to lead the company for the future.They emphasize how our leaders will transform Schneider Electric by stepping up individually and collectively in the way we lead the company.Through our culture,leadership,and way of thinking,we aim to bring energy and efficie

195、ncy to enable life,progress and sustainability for all.24Schneider Electric Registration Document 2018Groups strategy,markets and business2.1 Multiple accesses to markets2.Our markets25Schneider Electric Registration Document 2018Corporate Governance ReportFinancial StatementsShareholder Information

196、Strategic Report1Customer satisfactionCustomer satisfaction and quality are an integral part of Schneider Electrics growth strategy and drive innovation.Everywhere in the company,we put the customer first in our decisions,learning from live surveys and spending time with both end-users and partners.

197、We collaborate to deliver tailored customer experiences,fast and seamless across all touch points.We keep on innovating to provide a non-negotiable premium quality through offer creation,manufacturing,delivery,operations and services.A large portion of Group revenues is made through intermediaries s

198、uch as distributors,systems integrators,installers and purchasing advisors,who all bring their own added value and know-how,allowing the Group to access a number of different markets.Over 40%of the Groups total sales goes through our privileged Distributor partners,which support us in making our pro

199、ducts accessible in stores,either off-line or online,in 190 countries all over the world.Our Distribution partners encompass 4 types of players:large international groups,such as Rexel and Sonepar;electrical wholesalers and generalist distributors,such as Graybar,Zhongyeda Electric,CED Edmunson;and

200、local players;as well as IT specialists,such as Tech Data and Ingram Micro.In addition,the Group uses specialized distribution channels for highly technical products such as automation solutions and industrial software,access control and security products.Distributors&retailersSchneider Electric ass

201、ists its distributors in advising their customers and helping them benefit from our technical innovations.To maintain a high-performance network,the Group works hand-in-hand with distributors on supply chain improvements,technical training and joint marketing actions.With e-commerce growing fast,Sch

202、neider Electric is present in all our Distributors websites and ensures we offer our key customers a seamless O2O(Online-to-Offline)experience.We also work with key DIY Retailers,such as Home Depot and Lowes in the USA,Kingfisher in the UK and Saint-Gobain Distribution in France,to ensure our leader

203、ship in the Home Improvement and Renovation market.26Schneider Electric Registration Document 2018Groups strategy,markets and business2.Our marketsPanel buildersPanel builders build and sell electrical distribution or control/monitoring switchboards,primarily for the building,energy and electricity

204、infrastructure markets and industry.Their main customers are contractors and installers.Panel builders mostly buy low and medium voltage devices,such as circuit breakers and contactors,and increasingly,smarter connectable systems,including metering and communication devices.There are more than 35,00

205、0 panel-builders throughout the world.ContractorsTo design solutions tailored to end-users specific needs,Schneider Electric works closely with contractors,small specialists or generalist electricians,large companies that specialize in installation equipment and systems and designers.Electricians&DI

206、Y storesElectricians design and perform electrical installations,primarily in residential and small non-residential buildings.They are therefore our key customers and we have one of the most comprehensive networks of electricians worldwide.Schneider Electric helps electricians to operate more effici

207、ently through a suite of training,technical support and digital tools,like the app“My Schneider Electric”.Schneider Electric strengthens its relationship with electricians by increasing their visibility to end-users through different marketing actions including“installer locators”on Schneider Electr

208、ics website.DIY stores are a key channel in making Schneider Electrics offers visible to consumers as well as electricians.Schneider Electric ensures that it assists them with digital marketing programs on their e-commerce sites as well as in their physical stores.All of the partners mentioned above

209、 contribute their own added value to end-customers,first by advising them on the choice of solutions that best suit their needs and then by installing efficient systems thanks to a suite of web-based digital tools called“Building Life Management”.The main objective for Schneider Electric is to suppo

210、rt them in the rapid development of solutions and technologies for the residential market:lighting,temperature and door/window management systems,recharging equipment for electric vehicles and renewable energy solutions.In order to strengthen a relationship based on mutual trust and added value,Schn

211、eider Electric partners actively with contractors,providing technical training and support.To maximize our business impact,we have a multichannel communication model using personal and digital means,thanks to our Partner Relationship Management (PRM)platform.In this regard,the EcoXpert program aims

212、to secure special partnerships with certain specialized contractors,with whom Schneider Electric shares all its expertise on renewable energy and energy efficiency solutions and services.The EcoXpert network is being developed in many countries throughout the world.Systems integratorsSystem integrat

213、ors design,develop and support automation systems to meet their customers needs for the performance,reliability,precision and efficiency of their operations.By providing global coverage and local contacts,they offer their clients a high degree of flexibility.Schneider Electric has considerably expan

214、ded its automation line-up,giving systems integrators access to a powerful platform covering all areas of automation,from field control to Manufacturing Execution Systems(MES).Specifiers/Consulting EngineersTo meet their customers growing demand for comfort,ergonomics and design,specialists(engineer

215、s,architects and design firms)are constantly looking for more efficient and better integrated solutions for energy management,as well as for access control,security,and building automation.They are therefore essential partners for Schneider Electrics growth,notably in the high-potential buildings an

216、d residential markets,which include the construction and renovation of single-family homes and apartment buildings.Schneider Electric provides information and training tools for specialists,such as dedicated showrooms,electrical installation guides,installation design software and training methods.O

217、ther intermediaries&partners27Schneider Electric Registration Document 2018Corporate Governance ReportFinancial StatementsShareholder InformationStrategic Report1Original Equipment ManufacturersOriginal Equipment Manufacturers(OEMs)continuously seek to improve machine price/performance and time-to-m

218、arket in segments ranging from packaging to textiles,conveyors,materials handling,hoisting and HVAC.Schneider Electric is one of the market leaders in these segments,and works closely with over 15,000 OEMs.The Group leverages its expertise and know-how to nurture these special partnerships.This is m

219、ainly achieved through:an extensive knowledge of OEM applications;a continuous R&D effort to develop innovative,high-performance and cost-effective offers and solutions;dedicated centers of excellence that offer the most competitive solutions for new machines,in particular,pre-tested,pre-developed a

220、nd personalized solutions;international customer support to deliver high-performance after-sales service worldwide;a dedicated program for multi-site and/or global OEMs that enhances their ability to offer superior solutions on an international scale.Other large end-users and strategic accountsSchne

221、ider Electric also addresses customers directly in a number of end-markets,including:Automotive,where the Group serves large automotive equipment manufacturers,electric car battery manufacturers and electric car infrastructure providers,to enable digitization,scale operations and become more agile i

222、n a transformational industry sector;Cloud&Finance,in which the Group provides secure digital solutions to increase efficiency,lower costs,reduce cycle time,and manage risks for customers including internet giants,as well as in telecoms,co-location and network solutions;Consumer Packaged Goods,in wh

223、ich the Group is enabling digital transformation at every step of the value chain for improved sustainability,efficiency,and traceability for Food&Beverages,FMCG(Fast Moving Consumer Goods)and Life Sciences companies;In Electricity Companies,the Group serves companies producing,delivering,and/or sel

224、ling electricity to reduce carbon footprint,digitize networks,connect customers to smart grids,overcome evolving challenges and meet future needs;Finance,where the group serves banking and finance groups,by providing innovative,IoT-enabled products and services to succeed in their digital transforma

225、tion journey;In Healthcare,the Group serves hospitals,clinics,labs,and life sciences manufacturing to improve safety,patients satisfaction,and operational efficiency with IoT solution architectures for Digital hospitals;Hotels,where the Group serves hospitality companies that manage hotels and relat

226、ed lodging facilities to Improve financial performance,reduce carbon emissions and energy costs,and reinvest savings into the hotel guest experience;Mining,Minerals&Metals,which includes customers in mining,cement,metals,and other bulk materials,where the Group is helping customers to achieve greate

227、r energy and production efficiency for manufacturing operations with IoT-enabled solutions;Oil&Gas&Petrochemicals,in which the Group provides integrated digital solutions and high-performance systems,software and services to oil companies,petrochemicals companies and EPCs(Engineering Procurement&Con

228、struction),from production to processing and supply chain operations;Real Estate,where the Group offers intelligent building technologies that maximize operational efficiency,ensure maximum energy savings,and lower overall OPEX costs;Water&Wastewater includes customers across the entire water cycle,

229、from water resources to water distribution,sewerage and treatment.The group is helping customers to enhance key processes and applications across the smart water cycle by leveraging innovative solutions.Starting in 2018 Schneider Electric also addresses,in a global manner,the following end-markets:S

230、emiconductors:assisting companies engaged in the manufacture of semiconductor devices to sustain the highest level of performance and availability for mission critical clean room environments in a safe manner.Transportation:the Group ensures reliable power for safe,stable and efficient operations fo

231、r Airports,Rails,Metros,Port and Tunnels infrastructure ensuring reliable power for safety,stability and efficiency.Schneider Electric is serving its global customers,“strategic accounts”,with a dedicated organization,with the purpose of developing privileged relationships with them,aiming to respon

232、d in the best manner with a Value Proposal meeting their key challenges in their digital transformation.This organization is based on short lines of communication and decision-making,rapid mobilization of Group resources throughout the world,and dedicated teams in which management is directly involv

233、ed.Schneider Electric serves 75 global customers including Apple,BHP Billiton,EDF,ExxonMobil,Nestl and Veolia as well as 99 customers for which we developed a multi country centralized approach,(eg.SAP,Orange,Danone,BMW etc.)We are leading the digital transformation of energy management and automati

234、on in homes,buildings,data centers,infrastructure and industry.Our technologies ensure that Life Is On everywhere,for everyone and at every moment.End-users28Schneider Electric Registration Document 2018Groups strategy,markets and business2.2 Serving four attractive end-markets2.Our markets29Schneid

235、er Electric Registration Document 2018Corporate Governance ReportFinancial StatementsShareholder InformationStrategic Report1Non-residential and residential buildingsThe non-residential buildings market includes public,commercial and industrial buildings such as offices,hotels,hospitals,shopping mal

236、ls,retail chains,schools,sports and cultural centers.Because this sector is energy intensive,energy efficiency is key and is subject to new and demanding regulations.Specific requirements must be met in terms of occupant safety,comfort,and both environmental and regulatory compliance,as do the needs

237、 of owners and building managers seeking to reduce investment costs and optimize maintenance and operating costs.Schneider Electrics non-residential customers include end-users,property developers,design firms,systems integrators,panel builders and installers,electrical equipment distributors and bu

238、ilding management companies.EcoStruxure Power and EcoStruxure Building unlocks value at all stages of projects for buildings and facilities of any size,in any industry and to meet the requirements of building owners,real estate developers,system integrators,facility managers and building occupants.I

239、n the context of single-family homes and apartment buildings,Schneider Electrics market is driven both by renovation and refurbishment needs,particularly in mature economies,as well as by construction,particularly in new economies.Whether for renovation or construction,the underlying challenge is to

240、 reconcile technical constraints,local standards and regulations with consumer preferences.They not only desire comfort and aesthetics,but increasingly,energy efficiency,connectivity,security and monitoring services as well.Residential customers include mainly electricians,architects and decorators,

241、those involved in the home automation industry,lighting and security firms,construction firms,contractors,electrical equipment distributors and large do-it-yourself(“DIY”)stores,as well as end-users and home owners.Utilities and infrastructuresCurrent global challenges in the utilitiesand infrastruc

242、ture market include increasing energy demand,the need for increased energy efficiency to reduce environmental impact,and the development of decentralized renewable energy sources on the grid causing more stability concerns.This market also faces changes in regulations,particularly those regarding de

243、mand response and prosumer integration in the energy system,and the growing need for security,reliability,and real-time control to ensure efficiency stability.We believe these challenges provide long-term growth prospects for Schneider Electric.Our main customers in this market include energy system

244、 operators,prosumers,water utilities,the owners and operators of transportation and oil and gas infrastructure and municipalities.Industries and machine manufacturersOur energy and automation solutions enable us to serve almost all segments of the industry and machine manufacturers market,including

245、the refining,petrochemical and oil&gas industries,mines,cement plants,water&waste-water industry,the food-processing industry and material handling and packaging machines.Energy and operational efficiency is at the heart of the challenges facing these industries,which include the reduction of produc

246、tion costs,compliance with new regulations,and the reduction of the environmental impact of industrial activity.In addition,both the rapid modernization taking place in new economies for more sustainable Industry and the growing adoption of solutions supporting the 4th Industrial revolution in exist

247、ing industrial facilities in mature economies create significant opportunities for growth.Our customers include end-users and professional intermediaries,engineering firms,systems integrators,OEMs,electro-intensive industries,panel builders and electrical distributors.Data centers and networksData c

248、enters are secure,precision-cooled sites containing Information Technology(IT)equipment that processes and stores very large quantities of digital data.These sites are the nerve centers of businesses and the public sector.The expansion of data centers requires a significant increase in electricity t

249、o accommodate the IT equipments operation and cooling,as the amount of energy needed to cool these rooms has become comparable to the amount of energy needed to operate the equipment itself.Data centers and networks are being fueled by the growing digitization of business and personal activities.Alo

250、ng with this growth in digitization,comes increased reliance on the physical infrastructure of data centers.Internet Giants,for example,place the data center at the center of their business.Within distributed networks,the need for faster,more localized data is driving the need for Edge computing.30S

251、chneider Electric Registration Document 2018Groups strategy,markets and business3.Our business in detail3.1 Global leadership in two businesses&four technologiesEnergy ManagementMedium Voltage Medium Voltage(MV)offers our customers with the answer to the complex equation of energy transition.Histori

252、cally,Infrastructure encompassed primary and secondary Medium Voltage switchgear,transformers,electrical network protection and automation,remote control systems,and MV/LV substations.With IoT reaching power products,the medium voltage business is now further built around connected products and soft

253、ware for the integrated management of mission-critical infrastructure and Advanced Grid Solutions as well as asset performance management.Our software suite includes,for example,Advanced Distribution Management Software(ADMS),Operation Management Software(OMS),Supervisory Control And Data Acquisitio

254、n(SCADA)software and pipeline management software.Our products,software,solutions and associated services can be delivered directly to our end-users or indirectly through different channels under various models,ranging from transactional sales to end-to-end project delivery.Main CompetitorsABB,Sieme

255、ns,Eaton,GELow VoltageLow Voltage(“LV”)electrical distribution products and solutions address the needs of all end-markets from residential to commercial buildings,spanning across industries,infrastructures and data centers.The offer portfolio is extensive and includes:protection functions(such as c

256、ircuit breakers),power monitoring and control,power meters,electrical enclosures,busways,cable management systems,power factor correction products for living spaces(such as wiring devices,network connectivity,home automation and building controls),as well as renewable energy conversion and connectio

257、n equipment and electric vehicle charging infrastructures.EcoStruxure Power,the IoT-enabled power management solution of Schneider Electric,enhances connectivity,real-time operational reliability and smart analytics for low and medium voltage architectures in all end-markets.Building Automation faci

258、litates comfort and energy efficiency in non-residential buildings through automation and security systems,including heating,ventilation&air-conditioning(“HVAC”)controllers,sensors,valves and actuators,programmable regulators,centralized building management systems,space optimization solutions,acces

259、s control,video cameras and security monitoring equipment.EcoStruxure Building,the open,collaborative smart building IoT platform,combines building management software with hardware and services,to maximize efficiency and comfort while reducing energy costs by up to 30%.Main CompetitorsABB,Siemens,E

260、aton,Legrand,Johnson ControlsNo.1Worldwide in Medium Voltage and Grid Automation.No.1Worldwide in Low Voltage and Building Automation.17%45%Percentage of total revenuePercentage of total revenue31Schneider Electric Registration Document 2018Corporate Governance ReportFinancial StatementsShareholder

261、InformationStrategic Report1Schneider Electric has built worldwide leadership positions in each of its two businesses and four technologies,leading the digital transformation of Energy Management and Industrial Automation.Industrial AutomationSecure PowerSecure Power specializes in critical power pr

262、oducts and solutions for data centers and networks where power continuity and quality is essential.The applications range from large,hyper-scale data centers to discrete,distributed IT applications.The offer is designed around ensuring availability within these applications and includes single-phase

263、 and three-phase Uninterruptable Power Supplies(“UPS”),IT Rack Systems and Power Distribution Units,physical security and cooling systems.The Secure Power Business also provides a variety of services for these applications along with IT facility management software.Main CompetitorsVertiv,EatonIndust

264、rial AutomationThe Industrial Automation business scope includes Process,Hybrid and Discrete Automation,providing comprehensive products and solutions for the automation and control of machines,manufacturing plants and industrial sites.The offer is based on smart connected devices such as discrete s

265、ensors,motion systems,and world leading positions in push buttons and signaling as well as motor control applications based on leading ranges of frequency converters(Altivar)and motor starters/contactors(Tesys).The business includes a full range of comprehensive edge control systems and software suc

266、h as distributed control systems(Foxboro Evo)and leading safety systems(Triconex),machine and process control(PLC Modicon)and human-machine interface(“HMI”)operator panels.The Industrial Automation business also provides with AVEVA,an innovative range of software for the design,operation and mainten

267、ance of industrial processes.This includes modeling/simulation(SimSci),supervisory control systems(Wonderware)and asset management(Avantis)software,addressing the full life-cycle of industrial assets for IIoT-ready solutions.Software appsIndustrial Automation software and apps offer addresses autono

268、mous machines as well as complete processes to improve productivity and energy efficiency,leveraging the Groups connected offer for power distribution to deliver a complete automation and power solution.Main CompetitorsSiemens,Rockwell Automation,ABB,Emerson,Honeywell,YokogawaNo.1Worldwide in Critic

269、al Power and Cooling.No.4Worldwide in Process Automation.14%24%Percentage of total revenuePercentage of total revenueOur business is 90%on the energy demand side90%32Schneider Electric Registration Document 2018Groups strategy,markets and businessA leading mega-retailer makes energy waste historyIn

270、the land of pharaohs and pyramids,Carrefour Egypt is using EcoStruxure Facility Advisor analytics and services to turn something else into ancient history:energy waste.The ChallengeIn Egypt,a place world-renowned for its many bazaars and outdoor marketplaces,competition in the retail market is high.

271、In this environment,leading mega-retailer Carrefour Egypt has found a strategy to compete,and it centers on one thing:customer satisfaction.Carrefour pursues this strategy by constantly finding ways to improve quality,choice,and prices.Majid Al Futtaim Retail operates 40 Carrefour hypermarkets and s

272、upermarkets throughout the country.As Majid Al Futtaim Retails country head,Jean-Luc Graziato is on a mission to deliver customer satisfaction in a different way:sustainable business practices.Graziato recently implemented a project to reduce power consumption and ensure uptime in about half of all

273、Carrefour stores.His key goals included:Measure energy consumption across stores to identify high-and low-performing stores;Use insights from energy dashboards and performance reports to continually optimize power usage;Ensure protection against downtime threats,such as equipment malfunctions or pow

274、er outages,via timely notifications;Maximize uptime for power,lighting,ovens,refrigerators,and other business-critical assets.The EcoStruxure SolutionTo help Graziato achieve these goals,Schneider experts proposed a digital solution that could monitor individual devices and offer expert guidance on

275、power use optimization.Apps,Analytics&Services:EcoStruxure Facility Advisor;Edge Control:EcoStruxure Facility Expert;Connected Products:Power meters,modems,and external GPRS antennae.EcoStruxure Facility Advisor suite of services and analytics enabled Graziato to monitor his energy use and asset ava

276、ilability around the clock.Key benefits include:Performance reports and recommendations delivered by Schneider Electric engineers;Timely alarm notification and web portal for monitoring,analysis,and easy issue resolution;Performance tracking across 19 stores to create benchmarks and deep analytics t

277、o locate energy saving opportunities;Cloud-connected meters that track performance across assets to ensure optimal performance and uptime.The Results Energy savings of 7%thus reducing carbon footprint and reaching sustainability goals;Rapid customization across 19 stores in just 16 weeks;ROI secured

278、 within two years and plans to scale the solution to every store in Egypt;Enhanced operational efficiency and business continuity via timely alarm notifications and abnormal energy use detection.Watch video https:/ 3.Our business in detail33Schneider Electric Registration Document 2018Corporate Gove

279、rnance ReportFinancial StatementsShareholder InformationStrategic Report124hSurveillance“Schneider Electrics expert team has been able to meet our expectations by listening to us and adapting their solutions to our stores configurations.”Jean-Luc GraziatoCountry Head for Carrefour Egypt at Majid Al

280、Futtaim Retail7%Energy savings 34Schneider Electric Registration Document 2018Groups strategy,markets and businessRCL Foods:Smart manufacturing for the sugar industry South African food producers modernization and digitization of its aging sugar mill with EcoStruxure Plant has led to an increase in

281、throughput of up to 20%,helping them become more efficient and reliable to stay competitive.Founded in 1960,Durban-based RCL Foods has over 20,000 employees across three core divisions Consumer,Sugar&Milling,and Logistics.Its Pongola mill,located in the north of the KwaZulu-Natal province,is one of

282、three sugar mills which collectively produce over 600,000 tons of sugar a year.The ChallengeIts obsolete DCS system for the juice preparation and crystallization areas of the Pongola sugar mill was in desperate need of an upgrade.They experienced extensive downtime,breakages,and stoppages,including

283、33-40 blackouts a season.Their dependence on external resources for any maintenance also caused extended production losses due to slow response times.RCLs modernization was designed to achieve:Improved uptime and reliability;A scalable&expandable solution;More operational information;Empower the wor

284、kforce to improve decision making;Process control optimization;Access to local support&expertise.The EcoStruxure SolutionConnectivity and Efficiency with EcoStruxure Plant:Apps,Analytics&Services:AVEVA industrial software*:System Platform,Historian,Historian Client,InTouch HMI(Remote Client)Edge Con

285、trol:Modicon M580 PAC,M340 Connected Products:X80 I/O,ConneXium network switches,Magelis HMI,Telefast ABE wiring interfaces.After careful consideration,RCL Foods picked a full,systemic,IoT-ready solution based on EcoStruxure Plant.The scope of work was broad,from the implementation of connected prod

286、ucts(Modicon X80 I/O modules,ConneXium network switches,Magelis HMIs,Telefast ABE wiring interfaces),through edge control(Modicon M580 Ethernet programmable automation controllers),to software and analytics(AVEVAs System Platform,Historian and Historian Client,and Intouch HMI).Partnering for success

287、:To deliver the combined IIoT-ready hardware and software solution,Schneider Electric partnered with Control Software Solutions(CSS),a Master Alliance System Integrator Partner&Certified Wonderware Partner,because of their expertise in innovative and customized solutions and their track record for s

288、uccessfully delivering solutions using System Platform and Schneider Electric PLCs.The ResultsA reliable and flexible automation system using EcoStruxure Plant,underpinned by the capabilities of the IIoT,returns control to the hands of RCL operators,backed by strong local support.20%increase in the

289、plants throughput;Improved competitiveness;Enabled technology(simplified process optimization);Modern,high performance PLC system with high availability in RIO&Hot Standby;Reduced downtime for better reliability;Remote visibility and diagnosis;Improved operational information thanks to new software

290、standards;Expert local support;In-house first-line support.Watch video https:/ 3.Our business in detail*The Schneider Electric industrial software business and AVEVA have merged to trade as AVEVA Group plc,a UK listed company.The Schneider Electric and Life is On trademarks are owned by Schneider El

291、ectric and are being licensed to AVEVA by Schneider Electric.35Schneider Electric Registration Document 2018Corporate Governance ReportFinancial StatementsShareholder InformationStrategic Report120%increase in the plants throughput“We used to have roughly 33 to 40 blackouts in the season but since i

292、nstalling the Schneider Electric equipment,weve only had three blackouts.”Alan WilliamsonManufacturing Executive Pongola Sugar Mill,RCL Foods36Schneider Electric Registration Document 2018Groups strategy,markets and businessDevelopmentStrengthening leadership in low voltage distributionWe have been

293、a long-time leader through our Merlin Gerin and Square D brands.We have reinforced our Wiring Devices and ultra terminal offer with several acquisitions:Clipsal in 2003,OVA,Merten and GET in 2006,Marisio and Wessen in 2008.We enhanced our position in Core Low Voltage with Asco Power Technologies,a l

294、eader in the Automatic Transfer Switch(2017).We grew our presence in new economies with the acquisition of a stake in Delixi in China,Conzerv(2009)and Luminous Power Technologies(2011-2017)in India and Steck group in Brazil(2011).Building a global leader in medium voltage and grid automationWe have

295、historically been one of the leading players in medium voltage electrical distribution products and equipment.With the acquisition of Areva T&D(Arevas medium voltage distribution division)in June 2010,we became world leader in medium voltage and grid automation.In 2010,the Group acquired 50%of Elect

296、roshield-T Samara,a leading medium voltage company in Russia.In 2013,Schneider Electric acquired full ownership of this company,transforming Russia into a key market for the Group and turning Schneider Electric into a key player in the oil,gas and mining industry,as well as in the development of ene

297、rgy efficiency and the smart grid.With the acquisition of Telvent in 2011,a Spanish software company with a strong presence in North America,we became global leader in ADMS(Advanced Distribution Management Systems),supporting the monitoring and management of large electrical distribution networks.3.

298、2 Company history and development From its beginnings in steel during the Industrial Revolution 180 years ago,to electricity and,more recently,energy management,the Group has undergone significant changes in its operations throughout its history.1836-1980A family business becomes a major player1836B

299、rothers Adolphe and Joseph-Eugene Schneider take over an abandoned foundry in Le Creusot,France and,2 years later,create Schneider&Cie,focusing primarily on the steel industry.Schneider&Cie grows rapidly,specializing in the production of heavy machinery and transportation equipment,and eventually be

300、comes the Schneider Group,a diversified conglomerate.1975The Schneider Group acquires an interest in Merlin Gerin,one of the top manufacturers of electrical distribution equipment in France,involved in the electricity sector since 1920.1981-1999The Group refocuses on the electricity sector1981-1997S

301、chneider Group refocuses on the electrical industry by divesting its non-strategic assets,such as its public works company,Spie Batignolles.Schneider Group undertakes a series of strategic acquisitions:Telemecanique in 1988,Square D in 1991 and Merlin Gerin in 1992.1999Schneider Group acquires Lexel

302、,one of Europes largest suppliers of installation systems and control solutions.In May 1999 the Group is renamed Schneider Electric,to clearly emphasize its expertise in the electrical field.3.Our business in detailHistory37Schneider Electric Registration Document 2018Corporate Governance ReportFina

303、ncial StatementsShareholder InformationStrategic Report1Developing a global leader in industrial automation and controlWe have been a long-time leader in discrete automation through our Telemecanique brand.We reinforced our Industrial Automation&Control portfolio with the acquisition of Citect in 20

304、06,RAM Industries in 2008,Cimac and SCADA group in 2010 and Leader&Harvest in 2011.In January 2014,we closed the acquisition of Invensys plc.to enter the process automation world and reinforces our position in integrated industrial automation and electro-intensive segments.In September 2017,we combi

305、ned the Schneider Electric industrial software business and AVEVA to create a global leader in engineering and industrial software.Building a global leader in critical powerWe identified critical power as a key technology for our portfolio and gained majority control of MGE UPS in 2004.We became a w

306、orld leader with the acquisition of American Power Conversion(APC)in 2007,the US-based world leader in single-phase and 3 phase UPS with operations on all continents and USD2.5 billion in revenues.We expanded our operations in new economies with the acquisition of UPS manufacturer Microsol Tecnologi

307、a in Brazil in 2009 and the acquisition of APW in India in 2011.In 2011,we broadened our portfolio with cooling offers from Uniflair,data center services from Lee Technologies and backup power storage from Luminous.Creating a major player in building automationAs the result of several acquisitions,i

308、n particular TAC in 2003,Andover Controls in 2004 and Invensys Building Systems in 2005,we became a major player in building automation.In recent years we have further developed our operations in mature countries,in particular through the acquisition of 2 pioneering French companies in 2010:Vizelia,

309、a provider of software that monitors the energy consumption of buildings in real time,and D5X,a specialist in solutions optimizing the use of commercial buildings.The acquisitions of Summit Energy(2011)and M&C Energy group(2012)increased our expertise in energy procurement services.Recent external g

310、rowthIn 2018,Schneider Electric further optimized its offer portfolio to strengthen its focus on core businesses and drive the Groups performance:in January 2018,Schneider Electric took control of IGE+XAO a leader in design software for electrical installations through its CAD(Computer Aided Design)

311、,PLM(Product Life cycle Management)and simulation software.The transaction aims to reinforce the software offer of Schneider Electric in a field complementary to products and solutions supplied for electrical distribution,creating future synergetic opportunities.in May 2018,Schneider Electric announ

312、ced the signing of an agreement with Larsen and Toubro Ltd.,a leading conglomerate in India,to buy its Electrical and Automation business and combine it with Schneider Electric Indias Low voltage and Industrial Automation Product business.The deal is subject to customary approvals from the Competiti

313、on Commission of India and other regulatory authorities.Since 2000A Strategic TransformationAt the turn of the 2000s,Schneider Electric radically rethinks its growth strategy,setting itself 3 goals:ensuring a more balanced exposure to its strategic end-markets;enhancing its portfolio of historical o

314、perations(electricity distribution,automation and industrial control)with adjacent and synergetic businesses in order to boost its organic growth potential;and anticipating the future energy requirements of companies and individuals.This strategy leads Schneider Electric to conduct a number of strat

315、egic acquisitions both in mature countries and in new economies targeting companies offering complementary products and solutions.38Schneider Electric Registration Document 2018Groups strategy,markets and businessChanges in our world are more profound than ever.New technologies,enabling distributed

316、and connected energy for the first time,challenge us to redefine the way we live our lives.Schneider Electric invents technologies that will transform the places where we live,work,and play.As the global specialist in energy management and automation,we create connected technologies that reshape ind

317、ustries,transform cities and enrich lives.At Schneider Electric,we call this Life Is On.Life Is On when life is energized,efficient and connected.And life gets richer and more sustainable when energy gets safer,more reliable,and more efficient.Our promise is to make sure Life Is On for everyone,ever

318、ywhere and at every moment.Schneider Electric shares its expertise in energy management,industrial automation,and process efficiency to help people connect to an always-on world.Since 2016,EcoStruxure,which is Schneider Electrics IoT-enabled open and interoperable system architecture and platform,is

319、 delivering enhanced value around safety,reliability,efficiency,sustainability and connectivity for our customers.The Internet of Things(IoT)is simply the inter-networking of physical devices to collect and exchange data via internet protocol(IP).The true power and applicable value of IoT becomes ev

320、ident when it is connected to the 5 emerging technology transformations that accelerate our capacity to converge OT and IT systems:mobility,cloud,sensing,analytics and cybersecurity.With EcoStruxure,we continue to leverage these advancements to deliver innovation at every level from Connected Produc

321、ts to Edge Control to Applications,Analytics and Services.We deliver our innovative solutions through tested and validated future-proof reference architectures that enable the design of end-to-end,open,interoperable and connected systems.Our EcoStruxure platform enables the design and operation of c

322、onnected systems at scale with best-in-class security built around 3 core capabilities:4.Research&DevelopmentInnovation is key to our companys growth.Schneider Electric has had a history of innovation for more than 100 years.4.Research&DevelopmentGridMachinePlantITApps,Analytics&ServicesEdge Control

323、Connected ProductsGridIndustryData CenterBuildingPowerBuildingEnd-to-End CybersecurityCloud and/or On Premise39Schneider Electric Registration Document 2018Corporate Governance ReportFinancial StatementsShareholder InformationStrategic Report1During 2018 the Group launched numerous innovative offers

324、 across its Businesses:Industrial Automation(Industry),Medium Voltage(Infrastructure),Low Voltage(Building)and Secure Power(IT).There is a clear value proposition that is now built around our 6 EcoStruxure domains.All the EcoStruxure domains were showcased during our Innovation Summit,in Singapore,i

325、n September 2018.Several technology leaders participated in a workshop on how R&D can innovate faster and better.They concluded the following:1.Ensure customer intimacy and insights are a part of the R&D culture;2.Improve accountability through improved project management and governance;3.Leverage R

326、&D competencies in line with the R&D footprint diversity;4.Introduce lean and agile methodologies to the traditional Offer Development Waterfall Process;5.Evolve the current Offer Introduction Process to the Winning Offer Launch Process;6.Practice open innovation with start-ups,universities and coll

327、aboration with partners;7.Ensure consistency with respect to data,in all EcoStruxure domain architectures.These findings will be used to improve the way we perform R&D at Schneider Electric in the years to come.In the last year,the CTO board,which was created in 2017,has undertaken some key decision

328、s on what will be its focus areas and major headway has been made in certain areas:1.The Technical career path was launched so that all technical employees can better plan their career.Moreover,the experts rewards and recognition process was revamped;2.Major changes were made to the Offer Creation p

329、rocess in which new lean agile practices were introduced to produce our offers faster and launch them in the market effectively.Another salient point is frequent customer interaction during offer creation;3.Our external collaboration and university partnerships lists were fixed and now we have some

330、unique touchpoints with external agencies and universities to enable open innovation;4.R&D footprint principles were defined and decided on how we can effectively make the best use of our resources;5.The technology strategy was effectively defined and decided in 2018 with priorities assigned to cert

331、ain areas of research.Strategic domains were brought down from 14 to 4 for effective management.Specific areas of research have been targeted and results are seen;6.Tools and methods are being defined to ensure that the latest tools and software is available to work with.This will ensure faster and

332、more productive R&D.40Schneider Electric Registration Document 2018Groups strategy,markets and business4.Research&DevelopmentThe mission of this investment vehicle is to identify,support and nurture companies and entrepreneurs whose innovations will transform the way we live and work,how we produce

333、and consume energy,and how we run buildings and factories.Schneider Electric Ventures supports innovation through funding,incubation,and partnerships.Schneider Electric has committed to invest between 300 and 500 million euros in the coming years,and welcomes ideas from innovators and entrepreneurs eager to turn their ideas into reality.InvestmentsIncubationFund of FundsSchneider Electric Ventures