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Better Together: Campagna di Marketing

Integrata e Strategie di Branding

Lezioni da una delle maggiori acquisizioni nel campo dell’energia e della tecnologia

Giuseppe Caltabiano

VP Portfolio, Global Marketing

Lazise, 25-26 Febbraio 2015

Today’s topics and keywords

M&A (MERGERS & ACQUISITIONS)

BRANDING STRATEGIES

INTEGRATED CAMPAIGNS

Better Together: Campagna di Marketing Integrata e Strategie di Branding

SCHNEIDER ELECTRIC IN BRIEF Better Together: marketing lessons from a major acquisition

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Few notes about the speaker

> Joined Schneider Electric in Jan 2014

> +15 years experience in B2B Marketing (Ind Automation, Software)

> Master in M&A (LBS London) / MBA (SDA Bocconi Business

School)

> Lives in London

> Two girls, 10 & 7

> Belong to a minority - one of the few Italians around the world who

do not understand soccer

Schneider Electric: a global specialist in Energy

Management and Efficiency technology

€

€

€

€

€

€

€

€

25 billion € revenue (FY 2013)

43% of revenue in new economies (FY 2013)

160 000+ employees in 100+ countries

4-5% of sales dedicated to R&D

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A long history of acquisitions

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

2007 Acquisition of APC corp. and Pelco

1836 Creation of Schneider

at Le Creusot, France

19th century 20th century 21st century

2000 Acquisition of MGE UPS Systems

2003 Acquisition of T.A.C

2005 Acquisition of Uniflair

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

2011 Acquisition of Telvent

2010 Acquisition of Areva’s distribution activity

2014 Acquisition of Invensys

2012 Acquisition of Samara Electroshield

INVENSYS ACQUISITION: STRATEGY, RATIONALE Better Together: marketing lessons from a major acquisition

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Working from facilities in over 50 countries

A locally based international partner, culturally at home in every location

Helping customers across 180 countries

16,500 employees, of many nationalities

Over

4 Business segments

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£3.4 billions ($5.6b) for the entire issued and to be issued ordinary share capital of

Invensys

€ 140m of total cost savings by 2016

€ 65m of revenue synergies by 2018

€ 500m of tax shield

As a reference: WhatsApp $19b (Facebook), YouTube $1.65b (Google), Compaq $25b (HP), Skype 8.5b (Microsoft),

Sun $8.4b (Oracle), Chrysler 3.45b (FIAT)

A high momentum since the Due Diligence

2015

Today

Q2 Q3 Q4 Q1 2014

Q2 Q3 Q4 Q1 2015

Signing

Jul 12

Regulatory

Approval

Nov 29

End of FY Q4

Mar 31

Day 100

Apr 26

End of Integration

Phases

Jan 1

Due Diligence

Jun 1 - Jul 12

Phase 1: "Mobilize"

Sep 15 - Nov 1

Phase 2: “Pre-

closing planning” Nov 1 - Jan 17

Phase 3: "Stabilize" Jan 17 - Mar 31

Phase 4: "Realize Value"

Apr 1 - Dec 31

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Initial feedback was very positive and strong Houston

“You are all doing a great job at integrating Invensys

with Schneider and as a customer I feel very motivated

and excited for the future with this new company.”

BRANDING STRATEGY Better Together: marketing lessons from a major acquisition

Schneider Electric 13 - Brand management – S. Dothee – G Caltabiano – M Nolan – dec 2013

Invensys brand hierarchy explained

Corporate Brand

Go-to-market Brands

Business Segments (not Brands) Software Industrial Automation

Energy Controls

Branding Strategy

ASSOCIATION MIGRATION INDEPENDENT BRANDS

All brands have to migrate to Schneider Electric, most of them moving directly. The objective is to deliver a consistent

customer experience under Schneider Electric brand while transferring the whole brand equity to Schneider Electric

> 3 years 18/24 months

Schneider Electric 15

Invensys brand migration plans

Associated brands

Migrating brands

Independent brands

Associated brands

Will remain independent

Will become a range name under

Schneider Electric

Schneider Electric 16 - Global marketing – brand management & strategy – SDO – feb 2014

Internal on-line communication is key

Events

ISYS not attending

All events have been evaluated, and 4 main scenarios were defined

ONE company

ONE company

Best scenario

evaluation

No Go

ISYS attending

SE n

ot

atte

nd

ing

SE a

tten

din

g

Schneider Electric 18 Confidential

Hannover Messe (4 months after the acquisition)

Schneider Electric 19 Confidential

Gastech Korea (6 months after acquisition)

BETTER TOGETHER INTEGRATED CAMPAIGN Better Together: marketing lessons from a major acquisition

Existing customers started to be concerned

about our future investment in the products and systems

they use and so were holding back on project

commencement

New customers did not understand the value of the

combined Schneider Electric and Invensys

portfolio and so were not moving to us

Show the strength of the combined Schneider

Electric and Invensys offers and reassure customers

that their investment in our existing offers is safe

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Not just external comms

Global External Landing Page +50K unique visitors

Global Internal Landing Page +1K unique visitor

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Key Message

The best way to solve tomorrow’s challenges

is to work together today. We see the promise

of a bright future. You will too.

Schneider Electric and Invensys are better together. The

combination of our people, capabilities and technologies

delivers more for our customers…

26 Confidential Property of Schneider Electric

Target Countries

Brazil

USA

Canada

Australia

France

Primary

Middle

East +

Centra

l Asia

Russia

India

Campaign assets

MARCOM ASSETS SALES ASSETS

Better Together: Campagna di Marketing Integrata e Strategie di Branding

LANGUAGES CUSTOMER TYPES

Web banners 60 secs movie Articles for local placement Whitepapers infographics

Sales Guide FAQ White papers commissioned with

market analysts Tech white papers

MESSAGE PLATFORM

All assets localised into 11 languages

All assets targeting 5 different customer types

Social Media – Employee engagement Employee social media competition to engage our people and help spread the word;

“Use your personal twitter account to show us what Better Together means to you”

#BetterTogetherSE

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#BetterTogetherSE

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#BetterTogetherSE

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#BetterTogetherSE

Employee Social Media Advocacy

SM ADVOCACY

Schneider has a presence in over 150 countries, in over 30 languages with engagement at a local scale

Has experts writing blogs based on their domain expertise on topics such as how to use less energy

Places importance on employee training in “new media” to gain adoption

Has created Centers of Excellence in country with local expertise

Has a “Follow Me” program that teaches employees how to be social

Conducts monthly training for local social media experts with focus on engagement

How HR participates with employee branding

Some #BetterTogetherSE metrics

+ 20,000 € donation for Habitat for Humanity

Participation from 24 countries, with the largest participation from the US

500,000 opportunities to be seen

Significant increase of brand association after 90 days from campaign launch

“Share of voice” increased +2%

Lesson Learned (and my personal take aways)

PLAN & ANTICIPATE

EARLY IDENTIFICATION OF SYNERGIES

INTEGRATION TEAMS

Better Together: Campagna di Marketing Integrata e Strategie di Branding

COMMUNICATE, COMMUNICATE, COMMUNICATE!

EMPLOYEE INVOLVEMENT

USE SOCIAL MEDIA FOR

CONVERSATIONS

Thank you

giuseppe.caltabiano@schneider-electric.com

@giusec

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Make the most of your energy™

www.schneider-electric.com