IT Business
Investor DayFebruary 20, 2014
IT Business
Daniel DoimoEVP, IT Business
IT business: a leader in Critical Power & CoolingCritical Power & Cooling
A global business with leadership position
€3.4bn
Business size Key Channels
Our offer Geographies
#1worldwide
Critical Power, Cooling & Services
1st channel Other key channel
2013 revenues
Electrical Distribution & contractors
End users
Value added resellers
IT Distribution
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Maturecountries
New economies
43%57%
SystemsThree Phase UPSRacks & PDUsCooling & ChillersModular SolutionsManagement software46% 36%
ServicesInstalled base servicesLife cycle services
18%
End marketsPrimary end market
Other end marketsData centers & networks
Non-residential & Residential Buildings
Utilities & Infrastructure
Industrial & Machines
ProductsOne Phase UPS Inverters
Transformed from a UPS product company to providing solutions in all end markets
Massive Scaling
Complete Solutions & Products
Discrete UPS
€2.7 Bn
Strategic Gap Filling
€3.2 Bn
€3.4 Bn
#1 Single Phase UPS
#1 Critical Power & cooling
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1 SE MV 2010 Revenues before Areva Distribution2 Proforma including Areva Distribution acquisition on a 12-month 2010 basis
• UPS
• 1Ph UPS
• 3Ph UPS
• In-Row Cooling
• Racks
• PDUs
• Precision Cooling
• Data center Services
• DCIM capabilities
• Secure Power UPS
• Inverters
• DCIM Software
• Modular datacenters
• Extended Secure Power
capabilities
• Integration of other BU
capabilities
Discrete UPS Player
Seg
men
t S
tren
gth
Increasing focus on software & services
2011 20132007
We provide customers best-in-class products, integrated systems and value-added service
Smart -UPS®
Home & Business Networks
Enterprise Systems & Services
Har
dw
are
Secure PowerData centers
Symmetra &Galaxy UPS
InRow & Room Precision Cooling
PDU
GutorUPS
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SurgeArrest ®
Back-UPS ®
Inverters
Har
dw
are
So
ftw
are
Ser
vice
s
Pre Fabricated Modules
NetShelter ®
Racks MGE ® EPE
StruxureWarefor Data Centers
DCIM software
Life cycle Services with a worldwide service team to be close to customers 1
1. Operate: supporting both Data Centers and Secure Power
External trends continue to be favorable despite short be favorable despite short term turbulence
We experienced turbulences in 2013 from macro economy and market transition…
Macro Environment Addressing a Datacenter Transition
USAGovernmental slowdown Debt ceiling and QE tapering uncertainty IT spending stop and go
Europe
Shift to:• Large / extra large data center• Modular data center• Cloud and service providers
Currently adapting our offers and
7Schneider Electric – Investor Day – IT Business - 20 February 2014
EuropeRussia: Slowdown in IT spendingWestern Europe: Economic situation worse than initially expected
IndiaAdverse weather conditions and economic slowdown impacting inverter market growth
Currently adapting our offers and engagement models to capturefuture growth
Long term outlook remains positive
… but this does not undermine the favorable trends
Favorable trends
Anything as a service
Internet of thingsStrong Growth in New Economies
Energy and Operationsefficiencies
24x7 Availability
Business opportunities
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Business opportunities
1 IDC, Gartner and Internal analysis2 ARC (Industrial UPS Report – Includes 1Ph and 3Ph, Software and Services ), IMS and internal analysis3 IMS (UPS, Services, Racks) and Internal analysis
Continued investment in data centers
• IT spend in Data center to grow at 3-4%’CAGR1 for ‘14-’17 driven by collocation providers and Web Giants
• Protection of networking equipment is critical
Demand for secure power applications
• UPS for industry application will grow at 9-11% CAGR2 for ’14-’17 thanks to connectivity of Critical Non-IT equipment, growth in automation and convergence OT / IT
Fast growing market in new Economies
• Government investment in infrastructure
• BRIC represent 21% of market with growth 2 pts higher than world average in ‘14-173
Clear initiatives to capture opportunities from opportunities from favorable environments
Focused initiatives to embrace growth across the board
Enhance data center market leadership
• Leverage total business of the Group, especially in Cloud & Service Providers
• Ramp up modular offer• Expand service• Accelerate software
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• Grow secure power application and service in targeted segments
Grow in non datacenter segments
Strengthen product portfolio
• Develop local offer for new economies
We are uniquely positioned to capture the opportunities in data centers
Busway
Rack Systems
Building & PartnerITInfrastructureIndustry
MV Switchgear
LV Switchgear
LV Panelboards& Switchboards
MV Transformers
Security
Enhance data center leadership
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Modular UPS
Modular PDU
Rack PDURoom/Rack/Row
Cooling
Flexible Air Containment
LV Switchgear
Cooling - VSD
Chillers
Economizer
Meters
Lighting Control
DCIM and other Software
Services
Green data center for major service provider in South East Asia
Scope of Work: Scope of ITB Supply:
Customer Benefits:• One stop services & Strong local presence
• Expertise in mission critical application design
• Integrated design compliant with Data Center standard
• Best in class Energy Efficiency using StruxtureWare
• Optimised TCO by reducing intermediaries
Large Schneider multi business units win 11.7M€ project - 6,100 sqm2, 2 floors
Enhance data center leadership
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Scope of Work:• Design (Conceptual &
Detailed)• Equipment supply• Services:
• Installation & Integration• Commissioning & System Test
Scope of ITB Supply:• Secure Power: Galaxy UPS
(10 x G7000, 500kva)• Precision Air: Uniflair CRAC
(x18 units)
Building & Partner • Electrical Distribution with LV
SwitchGear (BLOKSET) • BMS System: Smart Structure• Lighting Control• Security System (Pelco) &
Access Control (TAC)
Infrastructure• Electrical Distribution with MV
SwitchGear (RM6)
Schneider Intra-Group supply:
Busway
Data center components can be delivered as prefabricated functional building blocks
Power
Cooling
Enhance data center leadership
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Modular UPS
IT
SE Best-in-class efficiency solutions can save up t o 30% Energy Opex
Data Center Lifecycle Services
Building a long term relationship with our customers
Key value creators:
• Increased client intimacy and touch points• Higher customer engagement
Enhance data center leadership
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• Higher customer engagement through 2-3 update cycles over 20 years
• Best business model to drive additional solution sales & services
• More predictable revenues with recurring services
Energy andSustainability
Cooling MonitoringMonitor and control data center cooling
Track and manage enterprise energy and carbon costs
Operations ManagementManage Data Center assets, operational and capital costs
DCIM software enables data center management and improves efficiency
Across All Domains
Enhance data center leadership
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center cooling
Power MonitoringAdvanced power monitoring control and analysis
IT Infrastructure and Device MonitoringAdvanced monitoring and automation
Focused efforts in mission critical segments to accelerate secure power growth
Water Oil & Gas
Highlights of Secure Power Projects
Tuen Mun Sludge Treatment Facility - Hong Kong
Applications� Process Control & SCADA� Incinerator� PLCs
Solutions:
Wheatstone LNG Project – Australia,
Applications:�SCADA & DCS�Security systems
Solutions:� Gutor PXW Systems in dual
redundant mode
Grow in non data center segments
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Hospital Transportation
Valencia Hospital – Spain
Applications� Operating Theaters� Intensive Care Units
Solutions:� Smart UPS On-Line� Long back up time battery packs
Solutions:� Gutor PDW 120kVA
� Gutor PXP 120kVA
Applications:� Signaling systems� Station Control Room� Automatic Fare control
Solutions� 80 kVA MGE Galaxy 5500
Delhi Metro- India
redundant mode� Various models from 25 KVA-230 KVA
Installed base services provided to each customers
We develop offers locally to capture growth in new economies
Grow in new economies
Cooling
3 Phase UPS
Key R&D centers in New Economies
China
•1P UPS•3Ph UPS•Cooling Equipments
•Datacenter
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Cooling
1 Phase
India
•1Ph UPS•Racks•Software
Brazil
•1Ph UPS•3Ph UPS
•Datacenter Cooling
•Racks
Over 40% of our R&D resources in these 3 countries
ConclusionConclusion
Despite turbulence in 2013, we are well positioned for growth
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Market leadership with strong brand and global footprint.
Broadest offer with fully integrated solutions & cross selling synergies
Largest Installed base with recurring business opportunities
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Continue investment in Data center
Growing demand for secure power
Need for local offers in new economies
Bus
ines
s op
port
uniti
esC
lear
gro
wth
In
itiat
ives Enhance
leadership in datacenter
Grow in non-datacenter segments
Strengthen product portfolio in new
economies
Help people make the most of their energy