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Schneider Electric Extra-financial results Q3 2013

7 November 2013

Agenda

Sustainability Sustainability commitment commitment at a at a glance glance

1.

Sustainability Highlights commitment of Q3 2013 at a glance & Extrafinancial results

2.

Sustainability Focus: commitment People at a glance engagement

3.

Sustainability Q&A commitment at a glance

4.

Schneider Electric - Sustainable development Extra-financial results Q3 2013

A three levers sustainability strategy


Solutions for Efficiency
Active Energy efficiency, Energy management & Sustainability services Smart grid (renewable, flexible distribution, electric vehicle, demand response,)

Ethics & Responsibility

Solutions for the energy gap

Fostering energy access


Business practices Products and sites
Spreading access to reliable, affordable Business and clean energy through a combined Innovation approach of training, offers, business models People and investment

Employees Smart cities

Communities

Fighting fuel poverty

A measured commitment: The Planet & Society Barometer > Measuring sustainability > Communicating quarterly > Auditing annually by a third party

Schneider Electric - Sustainable development Extra-financial results Q3 2013

Q3 2013 Sustainability results at a glance


Results still above the objectives
The Barometer performance through 2005-2008 and 2009-2011: 8

Actual Reference

Strong momentum of Access to energy programme related indicators Planet indicators showing slight stagnation or decrease Newly reported indicators still behind objectives

A rebound after 2 quarters of decrease

Schneider Electric - Sustainable development Extra-financial results Q3 2013

2013 Third quarter highlights


Key facts
Access to energy: Schneider Electric Impact Investment Fund scale-up with three investments in the last months

Ratings and awards Third quarter 2013


Schneider Electric listed in the major Sustainability Stock Indexes
1st company in the "Electric and Electronic equipment " Industry in Dow Jones Sustainability Indices Continued presence in the DJSI indices since 2002 Only Major French Listed Group to be in both CDP Indexes: CPLI (A band) CDLI (97/100, +5pts vs last year)

Schneider Electric improves its paper management New access to energy portable product awarded / Mobiya TS 120S
Ranked 12th /50 in the PAP50 paper policy assessment of 50 major French companies

Events
Strategies Design Awards "Product Design" Award Light Products category
September: Sponsor of the Solar Decathlon in the US and China October: Presence at the World Forum for a responsible economy, Lille, France October: Visit of South Africa Students in the frame of the South Africa Year in France

Schneider Electric - Sustainable development Extra-financial results Q3 2013

The Planet & Society Barometer


Our sustainability scorecard 2012-2014 in details
The Planet & Society Barometer
(objectives for 2014)

Start 01/2012

Results Q2 2013

Results Q3 2013

Target 12/2014

Overall score (out of 10)

3.00
10% CO2 savings on transportation 75% of our product revenue with Green Premium products 10% energy consumption savings 63% -

6.09
29% 67.3% 7.4%

6.38
27.2% 63.3% 7.3%

8/10
10% 75% 10%

Planet

Carbon1 Prod. & Solutions Energy

Green growth Profit

7 pts growth turnover EcoXperts above transactional growth turnover 1 million households at the Base of the Pyramid have access to energy 90% of recommended suppliers embracing ISO 26000 guidelines 3 major ethical stock market indices select Schneider Electric 300 sites recognised Great place to work - Cool site

0 0 3 0

-0.25 pts -1.47 pts 514,266 12.4% 3 116 638,210 14.8% 3 157

7 pts 1,000,000 90% 3 300

Profit

Access to Energy Suppliers Governance Best practices

Safety

30% reduction of the medical incident rate (MIR) 70% scored in the employee engagement index 30% women in the talent pool (~ 2,500 people) 1 day of training for each employee every year 30,000 people at the BoP trained in energy management 300 missions within the Schneider Electric Teachers NGO

23% 0 0

43% 57% 26% 19% 21,864 95

45% 57% 26% 33% 28,420 168

30% 70% 30% 100% 30,000 300

People

Engagement Diversity Training Access to energy Communities

The arrow shows if the indicator has risen, stayed the same or fallen compared to the previous quarter. The colour shows if the indicator is above or below the objective of 8/10. 1 Except for the annual results, this indicator reports with one quarter of delay: Qn reported in Qn+1. Q1 2013 will be available at Q2. From 2013, the measure of both the Employee Engagement Index and the number Schneider Electric - Sustainable development Extra-financial results Q3 2013 of women in the talent pool become semi-annual (Q2 and Q4). 6

Planet

Planet Indicators

Results Q2 2013

Results Q3 2013

Targets 2014

10% CO2 savings on transportation* 75% of our product revenue with Green Premium products 10% energy consumption savings

29% 67.3% 7.4%

27.2% 63.3% 7.3%

10% 75% 10%

Schneider Electric - Sustainable development Extra-financial results Q3 2013 Qn reported in Qn+1. Q1 2013 will be available at Q2. *Except for the annual results, this indicator reports with one quarter of delay:

Profit

Profit Indicators
+7 pts growth revenue with EcoXperts above total growth revenue 1 million households at the Base of the Pyramid have access to energy 90% of recommended suppliers embracing ISO 26000 guidelines 3 major ethical stock market indexes select Schneider Electric 300 sites recognised Great place to work - cool site

Results Q2 2013 -0.25 pts 514,266 12.4% 3 116

Results Q3 2013 -1.47 pts 638,210 14.8% 3 157

Results Targets Q4 2011 2014 7 pts 1,000,000 90% 3 300

Schneider Electric - Sustainable development Extra-financial results Q3 2013

People

People Indicators
30% reduction of the medical incident rate (MIR) 70% scored in the Employee Engagement Index* 30% women in the talent pool (~ 2.500 people)* 1 day of training for each employee every year 30 000 people at the BoP trained in energy management 300 missions within the Schneider Electric Teachers NGO

Results Q2 2013 43% 57% 26% 19% 21,864 95

Results Q3 2013 45% 57% 26% 33% 28,420 168

Targets 2014 30% 70% 30% 100% 30,000 300

* From 2013, the measure of both the Employee Engagement Index and the number of women in the talent pool become semi-annual (Q2 and Q4)
Schneider Electric - Sustainable development Extra-financial results Q3 2013
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Focus on:
Employees engagement

Schneider Electric - Sustainable development Extra-financial results Q3 2013

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Employee engagement definition


Schneider Electric selected definition of employee engagement
Engagement is the of emotional and intellectual feeling that a group or organization have.

Organizations with a high level of engagement do report 22%

Say

Stay

Strive

higher productivity
Source: new meta-analysis of 1.4 million employees conducted by the Gallup Organization.

Consistently speak positively about the organization to coworkers, potential employees, and customers

Have an intense desire to be part of the organization

Exert extra effort and engage in behaviors that contribute to business success

Schneider Electric - Sustainable development Extra-financial results Q3 2013

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Employee engagement survey @ Schneider Electric by the numbers


Our One Voice Survey
A constantly improving participation rate since 2011

100% of employees surveyed 2x a year i.e


87 000 emails sent 53 000 people reached via kiosks on 288 production sites

62%

63%

66%

2011

2012

2013

Results One Voice survey / Average e-mails/kiosks

2500
report

managers receiving a dedicated

Schneider Electric - Sustainable development Extra-financial results Q3 2013

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A journey in our employees engagement survey


From People Scope (2005-2009)

Stakes
From Measure employees satisfaction to engagement Have a benhmark to compare our performance with best-in-class in industry Guarantee anonymity Be consistent with the way we measure our customer satisfaction Adapted to a constantly changing world and environment Create a culture of engagement Enable to evaluate faster the engagement of employees coming from acquisitions

To One Voice (2010 until now)


Introduction of the Engagement Index

Measure employees satisfaction

Confidentiality

Confidentiality

Every two years

Twice a year

A HR approach Around a 100 questions Complex to analyse Difficulty to follow-up after the survey Centralised results then cascaded down through leadership teams only

by the end of 2014 An objective of 70% of Employee engagement index An objective of 80% of employees aware of action plans Engage people at all level of the organization and communicate transparently Enable managers to pilot the engagement of their teams specifically Share action plans on our internal Social Network to encourage best practices and collaboration

A managerial approach 14 questions Create dialogue and action plans within teams with feedback sessions Simultaneous communication of results to Leadership teams and all employees 2 500 reports sent to managers with large teams

Schneider Electric - Sustainable development Extra-financial results Q3 2013

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The One Voice model in details


14 questions for simple and easy to use answers
1. I would not hesitate to recommend Schneider Electric to a friend seeking employment 2. Given the opportunity, I tell others great things about working here 3. I rarely think about leaving Schneider Electric to work somewhere else 4. It would take a lot to get me to leave Schneider Electric 5. Schneider Electric motivates me to contribute more than is normally required to complete my work 6. Schneider Electric inspires me to do my best work every day 7. My manager gives me feedback that helps me improve my performance 8. My coworkers respect my thoughts and feelings 9. I think that the cooperation between inter departments is going well 10. I have appropriate opportunities for personal and professional growth 11. I understand how my work goals relate to Schneider Electric s goals 12. The balance between my work and personal commitments is right for me 13. How likely is it that you would recommend Schneider Electric to one of your friends as a good place to work? 14. Are you aware of action plans in your organization, linked to One Voice ?

Employee Engagement Index Adhsion


Aon Hewitt model

Action

Engagement drivers
Chosen by Schneider Electric

Recommendation
Chosen by SE / same as customer satisfaction

Awareness of action plans

Schneider Electric - Sustainable development Extra-financial results Q3 2013

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Results and perspectives


Employee Engagement index
H1 2013
2012

57%
W1 2013

55%
2012

% employees aware of action plans

69%

67%

Levers 70% of employees say they have a clear vision of the link between what is expected from them and the companys strategy (68% in 2012) 74% of employees feel their opinion is taken into account (73% in 2012) 63% of employees think their manager give them enough feedback to improve their performance (61% in 2012) 57% of employees think their work-life balance is satisfying (56% in 2012) 53% of employees think they have enough professional support (52% in 2012) 37% of employees feel collaboration between departments is sufficient (35% in 2012)

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Thank you for your attention


See you On February 20 for annual results!

http://www.schneider-electric.com/barometer
Schneider Electric - Sustainable development Extra-financial results Q3 2013
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