The word “crisis”—whether we are speaking of energy or finance—is on everybody’s mind these days. It concerns us all—as business people, citizens and human beings. We know that electricity demand will multiply by 4 times by 2030 in India, and energy demand is still a big question mark. 70% of this increased demand in the world will from new economies such as China and India. If energy consumption per capita in China & India reaches US levels, world consumption would triple. And all the while, 1.6 billion people still have no access to electricity. Worldwide mobilization against climate change By 2030, ~3/4 of energy sources will remain CO2-related. Serious consequences are to be expected if global temperature rises by 3°c (based on International Energy Agency quotes and studies) This year’s Climate Change Conference in Copenhagen will show us how committed our governments are to tackling these issues. But we need not wait for such events to take action ourselves. As responsible citizens, we are all asking ourselves: “What can I do as to reduce my carbon footprint while preserving a comfortable lifestyle?” We, as a company, are asking ourselves a similar question: “What can we do to achieve more for our customers and our stakeholders, while using less of our common planet?”
SE’s answer is to help people make the most of their energy. How can we do this? By becoming the global specialist in energy management. So what does it mean… … to be a global company… … that specialises in energy management? But before we get into the details, lets first have a quick look as to who we are and what we do…
Energy management is a thread that is common across the businesses. We need both technology leadership in our products but also a link with customer intimacy and able to offer the right energy management solution to our customers. One Organization will create the right environment for this to happen.
We help people make the most of their energy. What does it mean? between energy generation (coal, nuclear, Hydro, etc.) and energy usage (what we all do with energy everyday), it is our play ground: energy management. It consists in making energy safe, reliable, efficient, productive and green. Let’s go a little bit more into detail (next slide)
From “plant to plug” is our mantra. We distribute energy – note that we do not generate it nor are we involved in its transmission. We are into Distribution of energy. We make energy reliable – Prevent power outages, ensure quality of power, provide backup power for critical needs such as in hospitals and data centers. We make energy efficient by measuring power consumption, diagnosing quality issues through audits and providing automation solutions. We make energy productive by enhancing infrastructure management. We provide integrated building management systems, process automation, etc. We help protect the planet by aiding in “green energy” - push in renewable and solar energy.
And how did we cover this journey? A small look at our history... Despite the Germanic sounding name, we are a French company, created in 1836 at Le Creusot, a small town in Burgundy. We started out as canon-makers, before going into other areas of the steel industry. In the second part of the 20th century, we entered into what would eventually become the historical business of Schneider Electric : Power & Control, first and foremost by acquiring Merlin Gerin and Telemecanique in France, followed by Square D and Modicon in the US. Thanks to those acquisitions, we also became an international company. (For instance, we have been in India since 1963 and in China since 1988.) At the end of nineties, as a symbol of our shift in focus towards Power & Control, Groupe Schneider was renamed Schneider Electric. In 2001, we embarked on a wave of targeted acquisitions to again refocus our business from Power & Control to Energy Management. We acquired MGE in Secured Power as well as APC in order to become a leader in Critical Power and Cooling (2007). We then proceeded to acquire TAC in the sector of Building Management in 2003 and Pelco in 2008, thus becoming a top player in building automation and security, Power measurement for power and monitoring systems (a crucial element in energy efficiency). We acquired Xantrex, a leader in connectivity and reliability systems for renewable energies. In 2009 we spearheaded the energy efficiency solutions with the acquisition of Conzerv and Meher Capacitors in India and in 2010 we acquired part of Zicom to establish leadership position in Building Management Systems To sum up, the company has been transformed since 2001. We extended our business portfolio as well as doublin our sales and our number of people. Our dynamic history explains who we are today: the global specialist in energy management
Our company values are something that each and every one of us as individuals cherish and practice.
Note to speaker: Bring out the “slow” pace of activity from 1963 to 2005 so that we can compare it against the next slide
A breathtaking pace of activities, acquisitions and growth. India is a focus country for Schneider Electric.
SE’s answer is to help people make the most of their energy. How can we do this? By becoming the global specialist in energy management. So what does it mean… … to be a global company… … that specialises in energy management? We’ll look at both elements later on. But first, let’s take a quick look at where we are coming from…
Be it any business… Data Centres & Networks or Building. Residential, Energy & Infrastructure or Industry, we can cover them all and bring efficiency to 72% of the world’s energy
Add energy for Util, O&G and MMM Ren goes into Power
This description is designed to give people a quick, general overview of what we do. It is designed to be clear and accessible, and is recommended only for audiences who do not know us well. A building is the best example, as it offers the broadest presentation of our portfolio how we integrate our different areas of expertise. Safe Energy in general, and electrical energy in particular, can be dangerous. We make it safe, in order to protect people and assets. SE provides circuit breakers, surge protectors, wiring devices, and other systems designed to ensure your safety. Reliable An unreliable energy supply can cause huge losses. Depending on the industry, the cost of 1 hour downtime can reach $10 million. The power gird is not always reliable, whether in terms of continuity or of quality. In the digital world of today, a “pure energy” supply without variations in intensity or cuts is a must. Efficient and productive Few people realise that a mere click on a computer mouse consumes a considerable amount of energy. Consider this: one day’s worth of Google searches generates the same amount of CO2 emissions as 200 return flights between Paris and New York. Note for the speaker 1 Google search = 1g of CO2 (between 0. 2 & 7g depending on the sources) 1 NYC-Paris return flight = 1T of CO2 200 millions Google searches every day Because energy is the source of all activity, we help our customers to manage it so as to boost their productivity. How? By developing automation and connectivity to make life easier for them. Our lifecycle services bring further peace of mind to our customers throughout the entire lifespan of their installations. Energy efficiency can give a remarkable boost to your finances by enabling you… -…to save on your energy bills, and… -…to optimise total cost of ownership of real estate or production facilities. This applies to individuals, and even more so to factory or business owners. The rising price of energy as well as growing environmental concerns mean that energy efficiency is not only the right way; it is the only way. Green Green energy is both a need and an opportunity The share of renewable in the world’s energy mix could double over the next 20 years ( according to both IEA and the US Department of Energy) SE will be part of this green transition, by providing easy ways to install and connect renewable energy sources. In renewable energy, SE provides connection systems and products like inverters, etc. EcostruXure: Simple software integration The biggest source of efficiency is integration. Simply connecting the different spaces of the building (Facility management system, security system, IT system, power monitoring system) through software systems can yield great benefits. It enables you to: Achieve more while using less Making instant documented decisions based on accurate data (consolidation is key to reduce waste and optimize the whole) Save time and energy through remote monitoring. EcoStruXure is a framework for creating simple Intelligent Energy management systems that save money and, more importantly, reduce waste. This agile, “architectural” approach makes optimised systems accessible to a wider audience thanks to its compatible product designs and open-platform software. It provides end-users with the tools they need to reduce their time to design and integrate, as well as their capex and opex. As consumers, businesses, and entire economies become increasingly reliant on technology, devices must become more intuitive, efficient, and intelligent. With EcoStruXure, Schneider Electric is helping energy to evolve in the same direction.
We are the leader in active energy efficiency: The market In terms of energy, one unit saved at home equals three units saved at the power plant => crucial in the context of climate change. Source: International Energy Outlook 2007 – US Department of Energy (DOE) Evaluate your household’s energy efficiency. Measure You have to measure to see where you are and what you want to achieve => need to know where you consume the most Energy audit Energy meters Power quality meters 2. Use efficient devices Low consumption devices: light bulbs, heating regulators, etc. Insulation material Power reliability PF correction - Power quality Lighting retrofit Building envelope Maintenance 3. Automate It’s good to have low consumption devices, but that doesn’t mean you have to leave them on all day! Human beings are lazy. Good resolutions to shut off heaters and lights when you leave a room or office tend to fade away when the effort infringes on comfort => hence the need for automation Building Management Systems Lighting Control Systems Motor control systems Home control systems Variable speed drives Compressor optimization using VSD’s 4. Monitor and improve If you never maintain your car, it will consume more and more gas. The same for your electrical installation. To ensure that the results achieved are here to stay and that your new installation is profitable and sustainable: Energy management software Remote monitoring systems Active energy efficiency Whats the status on ESCO? -> Check with Amit Chadha
This is the year that we will make energy efficiency part of our DNA.
We’ve already started this journey, and have some great experiences and results.
Innovation is the key to securing growth and reinventing tomorrow. We seek to boost innovation in three ways: We partner with internationally respected public and private organizations such as Cisco, IBM and MIT. We have established partnerships with 30 universities and research labs around the world alongside partnerships with more than 100 industrial heavyweights. We are the only French company to lead 2 global competitiveness projects in promising fields like nanotechnology (Minaologic), intelligent buildings management (Homes, and renewable energies (Tenerrdis) Aster Ventures is a capital fund through which SE explore new business opportunities for the future. Recently, we partnered with companies in demand response (C-Power) and innovative renewable energies solutions (Solaire direct) among others. We are committed to spreading standards in our industry through industry associations / public policy, because we firmly believe that an industry set on common standards generates more simplicity, innovation and business opportunities For the speaker: The right column shows some of our latest innovations Compact NSX, the first circuit breaker that combines protection and monitoring. Zigbee switch: With this wireless, batteryless switch based on ZigBee technology, Schneider Electric is responding to market expectations for a product that is: -easy to install , as it is wireless, -reliable , as the switch operates continuously and requires no maintenance, -green , as there are no batteries to recycle SoMachine Software: 4-in-one software for process control IT:Power-Saving Surge Protector with LCD Timer(R), an on/off programmable surge protector that provides guaranteed protection from damaging power surges and spikes. By setting the APC Power-Saving Surge Protector with LCD Timer to power on or off at select times, consumers are able to save energy and money by avoiding wasted energy draw to idle electronics If you need more details on the innovation programs… Minalogic: Global competitiveness cluster Minalogic fosters research-led innovation in intelligent miniaturized products and solutions for industry. Located in Grenoble, France, the cluster brings together in one location a number of highly talented specialists and provides them with the resources they need to create, develop and produce intelligent miniaturized services for industry. Minalogic has staked out a position as global leader in its domain, a unique hybrid of micro- and nano-technologies and embedded software. SE is involved in Smart electricity, Homes As an illustration, here is a brief description of the Homes program: Euros 88M project from 2008/2012 15 partners under our leadership Aim is to achieve at least 20% energy savings through energy efficient and intelligent solutions for buildings and homes If you need more details on what we do with Cisco Ex: Cisco EnergyWise partnerhip Thanks to Cisco EnergyWise, companies can: -Reduce energy costs and greenhouse gas emissions (GHG) footprint. -Monitor the power consumption of all Cisco network-connected devices, from Power over Ethernet (PoE) devices to IP-enabled building controllers. -Report aggregated power consumption to provide a clearer understanding of an organization's power-consumption habits. -Optimize overall power usage based on user-created policies across the entire corporate infrastructure. -Provide reports of current power conditions and suggests potential changes. -Regulate companywide energy consumption using scalable domain approach which brings IT and facility networks together => We collaborate with our building management systems
To Schneider Electric, Sustainable Development should be more than just a trend. In this area, we really do walk the talk. Respecting the environment As a major industrial player globally, we want to be irreproachable in terms of respect of the environment We want to have the cleanest products and sites We go beyond mere compliance to the most stringent standards . For instances, we apply the European standards RoHS and REACH to all our products, not only in Europe.. We build eco-design products with Environmental products profiles We practice eco-production with the aim of certifying all of our sites ISO14001, an environmental management standard applicable to any type of site. (Our objective is to have 2/3 of our employees working on an ISO 14001 site, whether it is an office block, a logistics centre or an industrial plant.) Las but not least, we implement our energy efficiency solutions in our own sites. Last year, we saved 44,000 tons equivalent CO2 thanks to this comprehensive environment-friendly policy Worldwide commitments Change starts at home. And SE’s presence in more than 100 countries puts us in an ideal position to support development all over the world. Here are a few examples of how we do this. Since December 2002, Schneider Electric has been an active member of the U.N. Global Compact. In 2009, Schneider Electric joined the Alliance to Save Energy, an association which focuses on spreading energy saving solutions worldwide. Among others, we also serve in associations like The Green Grid, a global network of companies dedicated to advancing energy efficiency in data centres and business computing ecosystems, Clinton Climate Initiative, a programme designed to help 40 of the world’s largest cities to more effectively manage energy consumption in buildings or Alliance to Save Energy. BipBop programme Schneider Electric sees global energy access as both a crisis and an opportunity. By investing in communities and stakeholders at the Bottom of the Pyramid (BOP)—the term commonly used to describe those with the lowest income in each country—Schneider Electric addresses three key issues to provide people with access to electricity: the lack of appropriate equipment: we are developing an adapted and cost-effective offer for the bottom of the pyramid the lack of financial resources available for innovative entrepreneurs: we fund energy-related business projects worldwide the skills and expertise shortage: we provide technical and business training to disadvantaged populations Measuring our commitment with the Planet & Society Barometer We measure our progress in sustainable development with this simple tool, which takes into account 13 indicators classified in 3 categories: people, profit and planet (For instance, the %age of women in the company is one of our Key Progress Indicators (KPI)). The barometer enables us to monitor our improvement and implement appropriate action plans where we need to do better. Background info: in our previous company programme new², which ran from 2005 to 2008, we achieved a result of 8/10 31/12/2008, based on 10 criteria, starting 1/01/2005. We then implemented this new self-evaluation tool as part of our One company programme (next slide) with criteria based on the new strategic intent of our Foundation and the needs of stakeholders.
Sustainability Create a market-based environment for wealth generation Support through Schneider Electric Foundation Comprehensiveness Provide a suitable offer for affordable, efficient and clean energy Distribute through the right access channels , resorting to existing social infrastructure of BOP and new entrepreneurs Develop the required skills of electricians and entrepreneurs Scalability Enable each household to gradually upgrade its access to energy Replicate the model from house to house and village to village
Concrete data and targets (4000 electricians by 2012, check other facts). Partnerships with other foundations -> Check with Abhimanyu Saha No. of training centers in India? Targets achieved till now and target going fwd.
Note to the speaker: You need not comment on all the following awards. This slide is here to demonstrate the fact that we are not the only ones to think highly of our company, external stakeholders do too!!! Best-in-class employer National Trophy for Corporate Citizenship, France One of the 100 Best Places to Work, Brazil Top 50 First Employer by Staffer magazine, Mercer Consulting Group 2008 Best Employer by 51job.com, leading job search portal, China Emerging company of the year Awarded by Frost & Sullivan Building Technologies Excellence to our Buildings Business, India Best-in-class service Best Performance and Cost Improvement Award by Cummins Marquee Level top supplier award, by Emerson 2008 Golden Headset Awards, Best Call Centre, China Best-in-class products Design Award for the full-flat switch new range ZENcelo, Asia-Pacific Best Product and Quality Awards in control and signalling categories, Electricidade Moderna magazine, Brazil Best Lighting Control Product of the Year, Consumer Electronics Association, 2008 Mark of Excellence Awards, for Clipsal® Saturn™ keypad, United States Best Quality Award, Elektroprofesional magazine, for Xantrex™ solar inverters, Spain 2008 European HVAC Electric Drives Technology, awarded by Frost & Sullivan Eco-product for sustainable development award, Pollutec exhibition, France
To conclude, here is a sample of some well-known customers that trust us all around the globe. The City of New York : We made the lighting control system for the big New Year’s Eve ball, whose descent ushers in the New Year in Times square. Olympics in Beijing : We provided the energy efficiency, critical power, electrical distribution and lighting control systems for the Water Cube, the Bird’s Nest stadium and many other locations. The Eiffel tower in France: We ensure the reliable functioning of the Tower’s elevators thanks to our automation systems, a critical element for the reputation and profitability of the Tower. Princess Elisabeth Antarctica : We donate electrical distribution, building management and remote control solutions to the International Polar Foundation’s Princess Elisabeth research station in Antarctica.
Make the most of your energy ™
The energy dilemma is here to stay v s Energy demand in India by 2030 The requirement The availability Energy is SCARCE EXPENSIVE UNCLEAN Energy management is the key to address the dilemma
Our answer: Helping people make the most of their energy
A world where we can all achieve more while using less of our common planet
Who we are:
Helping people make the most of their energy
The Global Specialist in Energy Management Energy production & transmission Energy Usage
Energy Management … with 30-70% savings everywhere
What we do Helping people make the most of your energy…
More than 170 years of history 19th century 20th century 21st century Energy Management 1836 Creation of Schneider at Le Creusot, France 2010 Global acquisition of Areva D for distribution. In India, acquisition of Zicom ’s electronic security systems , leader in electronic security 2009 Acquisition of Conzerv Systems and Meher Capacitors, leaders in EE 2007 Acquisition of APC corp. 2000 Acquisition of MGE UPS Systems 2003 Acquisition of T.A.C 2005 Acquisition of Power Measurement Inc. 2003-2008 Targeted acquisitions in wiring devices and home automation (Lexel, Clipsal, Merten, Ova, GET, etc.) 2008 Acquisition of Xantrex, leader in renewable energy solutions Steel Industry 1999 Groupe Schneider becomes Schneider Electric, focused on Power & Control 1975 Merlin Gerin joins Groupe Schneider 1988 Telemecanique joins Groupe Schneider 1991 Square D joins Groupe Schneider 1996 Modicon, historic leader in Automation, becomes a Schneider brand Power & Control
Schneider Electric – the global specialist in energy management
billion € sales in 2010
% of sales in new economies
people in 100+ countries
of sales devoted to R&D
Residential 9% Utilities & Infrastructure 20% Industrial & machines 24% Data centres 17% Non-residential buildings 30% Balanced geographies – FY 2010 sales Year-end 2010 employees Diversified end markets – FY 2010 sales 1 North America 24% Asia Pacific 24% Rest of World 18% Western Europe 34% 1 Proforma with Areva D integrated on 12-month basis 26,000 41,700 31,900 19,200 Listed on the Paris Stock Market – CAC40
Core values P assionate O pen S traightforward E ffective
Schneider Electric India An “Incredible” journey…
Schneider Electric in India… 1/2 1963 1995 2005 Merlin Gerlin JV 1984 Telemecanique Conrtols India JV 100% subsidiary Acquisitions 2004 2000 S&S Switchgear Crompton Greaves LV 2002 Automation Solution Application Center 2003 R&D Center, Bangalore Baroda Factory, Wiring Devices
Schneider Electric in India… 2/2 Acquisition Integration 2006 2007 2010 2008 2009 Global Factory, Hyderabad Acquisition Project Engineering Center Acquisition Indisputable leader in Energy Management Leader in Integrated Building Management Systems Acquisition ESCO Empanelled
Schneider Electric India in figures * Schneider Electric India 10000 17 40 1000 + 1 6 Factories Rudrapur Sales offices * as of Jan 1st, 2011 R&D Center 900 People Factories Cities Present Partners Solution Centre Distribution Centre Corporate Head Office R&D Engineers
Schneider Electric India Management Team Energy Management Services Alkesh Solanki Strategy & Alliances Manish Pant Power business Power Abid Makani ISC Sonali Kaushik Buildings Nikhil Pathak Industry Pradeep Karnik Distributors Vivek Yadav Sri Lanka/Maldives S Nagarajan Power Factor Correction & Metering Sreekumar Cr IT Shrinivas Chebbi Buildings business Industry business IT business Country President Olivier Blum Country Functions Finance & Admin. Rajani Kesari Commercial Excellence Sandeep Singh Human Resources Dr Shalini Sarin Project Eng. Center Alexis Grenon Buildings Alain de Lambilly Industry Christopher Crowe IT Philippe Arsonneau Energy Efficiency Ambassador Dr Satish Kumar Energy Sreekumar Cr Retail Channels Balaji Lenka
We are the global specialist in Energy Management
For every environment The integrated offers of Schneider Electric brings efficiency to 72% of the world’s energy
For every market Key Product Lines Key Market Segments I Energy & Infra
Oil & Gas
Energy Distribution Energy Low & Medium Voltage Power ISC Renewable Energy Solutions Residential I
Power Data Centers Critical Power & Cooling IT I
Banks / Insurance
I Industrial Automation & Control Industry
Industry I Building Automation & Security Buildings
Example: Integrated solutions in a building Electrical distribution Safe : Transform and distribute power safely Critical Power & cooling Reliable : Prevent from power outage & quality variance HVAC control Lighting control Energy monitoring & control Motor control Access control Security
Efficient & productive :
Measure and control energy, automate, provide relevant diagnosis
Make all the utilities of any Infrastructure more efficient
Renewable energies Green : Make the connection of renewable energy sources easy, reliable and cost-effective Interoperability and openness to third party systems Simple software integration
Our key focus Energy Efficiency The quickest and most profitable diet to save money & the planet!
The Solution is a lifecycle approach with active energy efficiency to save money and planet Monitor 4. Monitoring, consulting services and training Measure Fix the basics Automate
3. Solutions in :
1. Energy audit and metering 2. Low consumption devices Power quality Power reliability Schneider Electric is an empanelled ESCO with BEE
Energy Efficiency-We walk the talk Nashik Plant Savings/annum Rs. 6.4 Lakhs Reduction in Electricity bill 11% Payback < 4 months Chennai Plant Savings/annum Rs. 10 Lakhs Reduction in Electricity bill 14 % Payback < 5 months Hyderabad Plant Savings/annum Rs. 8 Lakhs Reduction in Electricity bill 25% Payback < 4 months
An innovation eco-system We start today… Partnering with 50+ best-in-class public and private organisations Leading global projects for Intelligent buildings, renewables, nanotechnologies Boosting standardisation Zigbee, IEC, NEMA Homes, Minalogic, Smart Electricity Funding start-ups Aster Venture capital fund Demand response, software breakthrough Compact NSX, the first circuit breaker that combines protection and monitoring. For Power Green power batteryless & wireless switch based on Zigbee technology For Buildings & residential Surge protector with integrated consumption measurement via LCD Timer For IT SoMachine . One single software to reduce time to market. from 18 - to 4 months For Industry
Provide a suitable offer for affordable, efficient and clean energy
Enable each household to gradually upgrade its access to energy
Schneider Electric will bring access to energy in a sustainable, comprehensive and scalable way. India Targets (Over 500 million of India’s population does not have access to energy) B I P BOP Business Build an investment fund to support the creation of companies dedicated to electrical business catering to the base of the pyramid. Innovation Build adequate solutions to be a champion in the electrical distribution field for the base of the pyramid. People Train young people in the base of the pyramid in electrical skills and sponsor them.
Train 4000 electricians by 2012.
Develop innovative offers to provide lighting to 400,000 households.
Support 300 new entrepreneurs to start their own business in the electricity market.
2010 Asia-Pacific M&A deal of the year - Clean Energy & Environment , M&A, India
Emerging company of the year by Frost & Sullivan , Buildings Business, India
Asia-Pacific M&A deal of the year 2009 by Asia M&A Atlas Awards, M&A, India
#1 ranked, CRN Channel Champion for 2009 in the UPS category (for the 2nd year running ), IT Business, India
Best Performance and Cost Improvement Award, by Cummins 2008 Golden Headset Award, Best Call Centre , China One of the 100 Best Places to Work, Brazil Best Quality Award for Xantrex™ solar inverters, Elektroprofesional magazine, Spain Eco-product for sustainable development award, Pollutec exhibition, France
Trusted by customers in India… WBDCL, West Bengal Detailed energy audit of 19 Thermal Power stations under WBDCL including Energy Efficiency training, Thermal imaging services etc. Heavy Water Board (HWB), Kota Provided a highly reliable and proven automation system which is reliable and safely works in the hazardous H2S Gas environment NDPL, New Delhi Long term Maintenance Contract (LTMC) covering Preventive Maintenance Plan, 24/7 emergence assistance, Routine maintenance & Spare parts availability Bharti Airtel Data Centre, Noida Project Size: 30,000 sq ft. Complete end to end data centre solutions Lodha Bellisimo, Mumbai Completely integrated home automation solution
… and worldwide! Eiffel Tower in Paris, France Modernization with a new generation of PLCs for reliable and smooth elevators functioning Times Square, New York City, USA For the new year’s eve ball 2009 with a web-enabled lighting control solution Olympics in Beijing, China Complete energy management solutions for the water cube, the bird nest stadium, the airport and other infrastructure International Polar Foundation Providing simple and efficient energy management solutions for the Princess Elisabeth Antarctica “Zero emission” research station Among our customers, you find… Veolia Total Sun Microsystems Suez Environnement Sanofi Aventis Saint Gobain RockFeller Center Rio Tinto Wal-Mart Rexel Nestlé Michelin Marriott IBM Hilton Hewlett Packard GSK GM/Opel GDF-SUEZ Ford EDF Digital Cisco Carrefour BHP Beijing Olympics Areva Arcelor Mittal