AVEVA Software 2018 Review and 2019

Commercial Plans

James McGill

Confidential Property of Schneider Electric

Executive Summary

• 2018 Review
• Strong AVEVA SW growth at +39%
• Rollout in 18 focus countries largely completed with AVEVA SW Leaders identified and targets achieved
• 2019 Commercial Plan
• Double-digit growth with +25% for in-matrix and +12% for out-of-matrix (subcontractor + sales agent)
• Enhanced engagement model with closer collaboration for Strategic Accounts and Segments
• Expand AVEVA SW focus countries to 30+ countries from 18
• 2019 Action Requests
• Understand 2019 targets and Software Performance Measurement for In-Matrix Countries
• Enter and tag opportunities in bFO (especially Sales Agent)
• Review the AVEVA SW Sale Playbook and Yammer Group
Confidential Property of Schneider Electric | Page 2
2018 AVEVA SW Results

Confidential Property of Schneider Electric | Page 3

2018 AVEVA SW Orders vs. 2017 by Engagement Model
Strong AVEVA SW Growth across All Engagement Models

Engagement 2017 Orders 2018 Orders Growth

End-Users Model
1: Digital Plant
(In-Matrix 30.0M€ 41.6M€ (1) 47.8%
Subcontractor)
2: Process
Automation
21.2M€ (2) 17.3M€ -18.4%
(Out-of-Matrix
Subcontractor)
1 2 3
3: Sales Agent
(Booked via 14.3M€ (3) 42.4M€ (4) 126.5%
Digital Plant Process Automation Sales Agent AVEVA)
(In-Matrix) (Out-of-Matrix) (Booked in AVEVA)
Total 65.5€ 101.3M€ 39.4%

AVEVA or AVEVA Ambition N/A 56.1M€ (5) N/A

Distributor
(1) Includes 5M€ for ClearSCADA/GeoSCADA to be moved to PA IDPSO in 2019
Subcontractor Sales Agent (2) 2017 includes non-repeatable 5M€ AVEVA SW project from Al Marai (KSA)
(3) Estimated 2017 using Project Phoenix
(formerly Phoenix) (4) Sales Agent for Q1-Q3 is validated by AVEVA and estimated for Q4
Confidential Property of Schneider Electric | Page 4
(5) Includes 8M€ in new growth for Digital Plant and +6% for Citect (1.3M€)
 2018 AVEVA SW Country Deployment for 18 Focus Countries
Completed or Underway with SW Leaders Identified – Target for 18 Focus Countries Achieved
COUNTRIES REGIONAL SPOC SALES PLANNING & PREPARATION SW LEADERS SALES EXECUTION & MONITORING

FORMAL MEETING WITH NEW SE

SUBCONTRACTOR MODEL SETUP

INDUSTRY LEADERS PLAYBOOK

CUSTOMER SUPPORT PROCESS

SW SALES TRAINING MAPPING

APPLICATIONS FOR PRE-SALES

SW ENGAGEMENT MODELS &

NOMINATE a SW LEADER FOR

REVIEW WITH NEW AVEVA SE

SIMPLIFY SW BOOKING AND

SW AMBITION HANDSHAKE

CADENCE FOR SE COUNTRY

PLATFORMING DEFINITION
SCADA PRICE POSITIONING

APPLICATIONS FOR SALES

DEFINE TARGETED OFFER

2nd LEVEL TRAINING: SW

2nd LEVEL TRAINING: SW

SW PRE-SALES TRAINING

ENGAGEMENT LEADER

ORDERING PROCESS
LOCAL WHO’s WHO

EACH COUNTRY

FOR WW*
MAPPING
WEBINAR

ANALYSIS

LEADER

SET-UP
INDUSTRY BU COUNTRY AVEVA - SE *
SOFTWARE LEADER ENGAGEMENT LEADER

Americas ANDRÉ MARINO

USA RIADH CHEKILI ROGER MANUS RON CHANDLER
Canada RIADH CHEKILI ADRIEN LEMAIRE RON CHANDLER
Mexico RIADH CHEKILI JULIO CESAR LARA ANTONIO GONZALEZ
Brazil CYRILLE CHASSAING EGIDIO FERRAZ ANTONIO GONZALEZ
EUROPE NINO GUIDETTI
France YVES DAUMAS MARC MALAQUIN HANS BOSBOOM
Italy REMI CORDIER GIUSEPPE PALAZZOLO HANS BOSBOOM
Spain REMI CORDIER AGUSTIN FRAGOSO HANS BOSBOOM
Germany REMI CORDIER NILS LEY HANS BOSBOOM
Netherlands SYLVAIN HIEULLE DICK CLEMENT HANS BOSBOOM
Turkey YVES DAUMAS KEREM BARLAK HANS BOSBOOM
Russia REMI CORDIER ALEKSEY EFREMOV HANS BOSBOOM
UK REMI CORDIER NATHAN GHUNDOO HANS BOSBOOM
APAC & MEA SONALI KAUSHIK
GULF YVES DAUMAS WAEL ZAITOUN AMIR MELAD
Singapore CHRISTOPHE AVRAIN COLLIN THOMAS DOUG WARREN
Indonesia CHRISTOPHE AVRAIN RINA MAZIDASIREGAR DOUG WARREN
India ASHWIN MHAISKAR SUDHIR DEMBI DOUG WARREN
Australia ASHWIN MHAISKAR BRADLEY YAGER DOUG WARREN
China MITESH LLORI LAURA DING DOUG WARREN
Global PHILIPPE RAMBACH THIAGO OLIVEIRA DOUG WARREN
Completed
Confidential Property of Schneider Electric | Page 5 Work In Progress
Not Working
Not Started *Includes Q1-Q3 Sales Agent
2018 AVEVA SW Global Customer Example Success Stories
Close Coordination between SE and AVEVA to Grow Sales and Better Serve End-Users
Situation
ANTIOQUIA GOLD is a MMM CTA
company for Andean Cluster and
was looking for a Robust and
Reliable automation solution type
DCS for new Control System. Also
looking for a Solution specialized in
MMM Segment.
900 MLD Water Treatment
Plant_MIDC Ambarnath
Total Antwerp is a long term
customer of SE PA
PADANIA ACQUA is a water board in
Italy that PA has been working to
gain as a new customer
Dholera Smart City project
(SMART Water Project)
Confidential Property of Schneider Electric | Page 6
Solution
Opportunity identified by the branch
office rep who engaged a V2 from
Industry BU Hybrid team. This V2 has
invited AVEVA for the bid to
complement a full solution. Main
competitors: Siemsns and Rockwell
(stronger in the bid as they used to
have installed base in this customer)
SE & AVEVA offered a combined
solution of M580 Control System with
Wonderware System Platform &
Historian.
For extension of the PA installed base
Offsites was offered for the tank form
Several workshops and reference visits
(Acque Novara) resulted in the
customer choosing PA and AVEVA
SE invited AVEVA to offer combined
solution of Control system from SE for
Pumping Control & Aquis Leak
Detection from AVEVA
Results
Excellent coordination between
branch office + Industry V2 + AVEVA +
Alliance SI + Global ICO helped SE to
build a full solution based on
EcoStruxure Hybrid DCS (with M580)
+ WW Historian + Citect Anywhere.
References in the MMM Segment
including visit to a Brazilian Mining
company, helped to choose SE.
Strong competition from Rockwell
was defeated with our solution
strength
Project won in 2018Q2 at 185k€
Project won in Q2 2018 for 232k€,
including SCADA and Aquis
Defeated Yokogawa & Siemens based
on strength of combined solution
Value (Model) Country
80k€ (Sales Agent) with big Colombia
potential to rollout for other
plant areas + good
possibility to saturate the
customers with more Edge
Control and Advisors
US$362K (Sales Agent) India
Project will extend over the Belgium
next 2 years for ~500k€
(Subcontractor)
232k€ (Subcontractor) Italy
US$700K (Subcontractor) India
2019 AVEVA SW Commercial Plans

Confidential Property of Schneider Electric | Page 7

2019 AVEVA SW Commercial Plan
Double-digit Growth:+25% In-Matrix / +12% Out-of-Matrix (Subcontractor and Sales Agent)

• Obtain Full Commitment from Countries

• Implement Upstream process, calculated with a “unique Gross Margin % factor” against the actual AVEVA SW Sales on a monthly
basis to eliminate the dilutive effect on Country CM

• Expand AVEVA SW focus countries to 30+ countries from 18 with SW leaders nominated by Industry VPs and AVEVA counterparts

• Combined measurement of subcontractor and sales agent

• Increase Cooperation for Schneider Global Accounts

• Joint account plan for agreed common accounts and SE-led/AVEVA-supported account plan for agreed segment accounts

• Develop Alliance SI GTM

• AVEVA SW as part of Alliance SI Certification with +50 New Alliance SI certified in AVEVA SW

• Deepen Internal SE Knowledge and Support

• Additional AVEVA SW Regional BDM’s to support the expansion for other countries (APAC & EMEA)

• Internal training program to up-skill SE front-office and back-office in AVEVA SW (EcoStruxure Plant launch face-to-face with
expanded offers and on-line for dedicated software applications)
Confidential Property of Schneider Electric | Page 8
2019 Software Performance Measurement for In-Matrix Countries
Remove P&L Dilution Effect by Implementing a “Virtual Upstream CCO” for AVEVA SW
Example:
• Implement an Upstream process, calculated with a “unique Gross Margin % factor”
against the actual AVEVA SW Sales on a monthly basis
• Industry Global FP&A will manage the calculation each month with the CCO team (using Artificial
30 CCO
BOFO) added
• “% factor” by country to ensure driving right actions: Total New GM will be at
average country P&L.
• Objective to get GM at overall Industry average for the country, if current pricing at market 10 Price 2019

• For those where pricing up or offer repositioning needed, factor will be considering this 2018
Statutory
• Establish GM threshold for AVEVA SW tendering within the Industry CoA, defining when 20
GM
it must come to Industry Commercial for approval
• 2018 PRIOR baseline to be established using same upstream % factor and will be
managed centrally by Industry Global FP&A
• Countries must start to forecast upstream in RF2
SPA process must be used when needed, this is by no means an instrument
to allow us to drop prices and local margin must be strictly controlled.
- Eliminate the dilutive effect on Country CM
- Easier for business leaders to follow since upstream is a standard SE process
- CoA: Price exceptions MUST be approved in BFO and will be strictly followed by ICO
-Targets & GM Factor will be communicated by end of JAN
-2018 PRIOR baseline to be established using same upstream % factor
AVEVA SW Deployment Underway for 15 Additional Countries
Expand to 30+ Countries
Q4 / Q1 Q2
COUNTRIES REGIONAL SPOC SALES PLANNING & PREPARATION SW LEADERS SALES EXECUTION & MONITORING

FORMAL MEETING WITH NEW SE

SUBCONTRACTOR MODEL SETUP

INDUSTRY LEADERS PLAYBOOK

CUSTOMER SUPPORT PROCESS

SW SALES TRAINING MAPPING

APPLICATIONS FOR PRE-SALES

SW ENGAGEMENT MODELS &

NOMINATE a SW LEADER FOR

REVIEW WITH NEW AVEVA SE

SIMPLIFY SW BOOKING AND

SW AMBITION HANDSHAKE

CADENCE FOR SE COUNTRY

PLATFORMING DEFINITION
SCADA PRICE POSITIONING

APPLICATIONS FOR SALES

DEFINE TARGETED OFFER

2nd LEVEL TRAINING: SW

2nd LEVEL TRAINING: SW

SW PRE-SALES TRAINING

ENGAGEMENT LEADER

ORDERING PROCESS
LOCAL WHO’s WHO

EACH COUNTRY

FOR WW*
MAPPING
WEBINAR

ANALYSIS

LEADER

SET-UP
INDUSTRY BU COUNTRY AVEVA - SE
SOFTWARE LEADER ENGAGEMENT LEADER

Americas ANDRÉ MARINO

Andean CYRILLE CHASSAING SEBASTIAN GIRALDO ANTONIO GONZALEZ
Argentina CYRILLE CHASSAING DIEGO FEDERICE ANTONIO GONZALEZ
Chile CYRILLE CHASSAING GONZALO PASTRIAN ANTONIO GONZALEZ
EUROPE NINO GUIDETTI
Belgium SYLVAIN HIEULLE STIJN ABELOOS HANS BOSBOOM
Nordics SYLVAIN HIEULLE FLEMMING HANSEN HANS BOSBOOM
Mid Eastern Europe SYLVAIN HIEULLE KRZYSZTOF MILEWSKI HANS BOSBOOM
South & Eastern Europe SYLVAIN HIEULLE ALEX KATOSHEV HANS BOSBOOM
Israel SYLVAIN HIEULLE NISSIM HAI HANS BOSBOOM
APAC & MEA SONALI KAUSHIK
Saudi Arabia (KSA) YVES DAUMAS MOHAMMED ANWAR AMIR MELAD
North East Africa & Levant YVES DAUMAS OMAR RAMZY AMIR MELAD
Francophone Africa YVES DAUMAS STEPHANE GENDRON AMIR MELAD
South Africa Cluster YVES DAUMAS QUINTIN MCCUTCHEON HANS BOSBOOM
Japan CHRISTOPHE AVRAIN MANABU KAWATA DOUG WARREN
South Korea CHRISTOPHE AVRAIN GUNN KIM DOUG WARREN
Taiwan and Philippines CHRISTOPHE AVRAIN SAM TING DOUG WARREN
Global PHILIPPE RAMBACH THIAGO OLIVEIRA DOUG WARREN

Completed
Work In Progress
Confidential Property of Schneider Electric | Page 10 Not Working
Not Started
No Visibility Yet
Enhanced Engagement Model
Closer collaboration for Strategic Accounts, Segments, Regions and Others

Executive Program Sponsors Cadence/Alignment

STRATEGIC ACCOUNTS (SC&S) • Monthly pipeline/FC report

• SE: Philippe Arsonneau • Monthly alignment call
1 (Agreed Common Accounts) • AVEVA: Steen Lomholt-Thomsen • Quarterly Business Review

• SE: Chris Darnell, Mike Jamieson, Rob Moffitt, Lukas Loeffler, • Monthly pipeline/deal report
SEGMENT (SC&S) Valerie Layan • Monthly alignment call
2 (Agreed SE-Led Accounts) • AVEVA: Doug Warren, CPG, MMM, WWW Leaders (tba) • Quarterly Business Review

• SE : Andre Marino, Philippe Rambach, Fernando Alandia • Monthly pipeline/deal report

REGIONAL BUSINESS • AVEVA: Doug Warren, Steen Lomholt-Thomsen • Monthly alignment call
3 (In-Matrix and Out-of-Matrix) • Quarterly Business Review

• SE: Mike Sullivan, Mark Bidinger, Laurent Bataille • Monthly pipeline/deal report
SMART CITY/DATACENTER • Monthly alignment call
4 • AVEVA: Rashesh Mody, Doug Warren
• Quarterly Business Review
• SE Factory: Mourad Tamoud
• AVEVA: Kim Custeau, Rashesh Modi • Monthly pipeline/deal report
OEM/SE FACTORY • SE OEM: Gary Freburger, Sophie Borgne • Monthly alignment call
5 • AVEVA: Doug Warren, Ravi G • Quarterly Business Review

• SE: Peter H, JPT, Emanuel B • Monthly status report

BOARD/CEO ALIGNMENT • AVEVA: Craig H, Steen Lomholt, Ravi G • Quarterly Business Review
6

Confidential Property of Schneider Electric | Page 11

2019 Action Requests

Confidential Property of Schneider Electric | Page 12

Enter Opportunities with AVEVA SW in bFO
Tag Based on the How AVEVA SW is Sold

• There are 3 Use Cases for entering SW opportunities into bFO

1. AVEVA SW as part of EcoStruxure Plant (Subcontractor Agreement)
2. AVEVA SW as standalone with SE supporting AVEVA, who books the order (Sales Agent Agreement)
– This is required to receive sales credit or for the SE countries/PA hubs to receive a commission

3. AVEVA SW that are part of the Tier 1 and Tier 2 accounts being sold by AVEVA and “For Tracking Purposes
Only” by the Strategic Customer & Segment team

• SE will use bFO as the tracking tool for all opportunities (AVEVA SW and otherwise) and will be the
starting point for all other related processes (if it’s not entered in bFO, it does not exist!)
• The SE Reference Number from the Opportunity in bFO will be used as the Opportunity ID and also be
entered into the AVEVA CRM System
‒ This is the common reference for all pipeline review activities

Confidential Property of Schneider Electric | Page 13

1: AVEVA SW as part of EcoStruxure Plant (Subcontractor)
Entering into bFO

• There must be at least one Software (SFTWR) opportunity line that is detailed to the Family Level
‒ For example Industrial Automation (Business Unit) \ SFTWR – Software (Product Line) \ Wonderware HMI
(Product Family) \ Wonderware CF 0072 (Family)

No tagging or additional information is required

Confidential Property of Schneider Electric | Page 14

2: AVEVA SW as standalone with SE supporting AVEVA (Sales Agent)
Entering into bFO

• There must be at least one Software (SFTWR) opportunity line that is detailed to the Family Level
• Since Sales Agent agreements are not booked by SE, they must be marked in bFO for payment of
SFC commission from AVEVA and Sales STIP purposes
‒ If a Sales Agent opportunity is not marked in bFO, no STIP nor country commission will be paid

• To mark a bFO opportunity as using the Sales Agent agreement, do the following:
1. Go to the Value Chain Players section of the opportunity (in bFO Classic under Related List locate Value
Chain Player or Stakeholder tab locate Value Chain Player in bFO Lightning)
2. Add a New Value Chain Player
3. Select the Account as “AVEVA Sales Agent” and Account Role as “Agent” and click Save
– The “AVEVA Sales Agent” account has been created in bFO for this purpose

Confidential Property of Schneider Electric | Page 15

3: Entering “Tracking Purposes Only” AVEVA SW Opportunities in bFO
To be used by SC&S Only

• There must be at least one Software (SFTWR) opportunity line that is detailed to the Family Level
• Used in cases where an account leader wishes to track an opportunity that is being handled by
AVEVA SW (e.g. an AVEVA SW salesperson selling AVEVA SW with little or no SE involvement),
but is important to his/her overall account strategy
‒ This to be used by the Strategic Customer & Segments (SC&S) organization only
‒ This does not count towards country commission from AVEVA

• To mark a bFO opportunity as Tracking Only, do the following:

1. Go to the Value Chain Players section of the opportunity (in bFO Classic under Related List locate Value
Chain Player or Stakeholder tab locate Value Chain Player in bFO Lightning)
2. Add a New Value Chain Player
3. Select the Account as “AVEVA Tracking Only” and Account Role as “Fulfillment Channel” and click Save
– The “AVEVA Tracking Only” account has been created in bFO for this purpose
Confidential Property of Schneider Electric | Page 16
Review the AVEVA SW Sales Playbook and Yammer Group

• The AVEVA SW Playbook is the official source of information for AVEVA SW engagement with SE
‒ The latest version will always be in Box at https://schneider-electric.box.com/v/AVEVASWPlaybook
‒ This folder also contains an AVEVA SW Playbook appendix that includes Glossary of Terms, Original AVEVA
SW Internal Communications, AVEVA Industrial Software and EcoStruxure Plant Fit, Software Operating
Agreements Details, Software Operating Agreements Examples, SCADA/HMI Offers Overview, Software
Booking and License Ordering Process, AVEVA Industrial Software Platform Offers, etc.

• Please also visit the AVEVA SW Sales Yammer group at https://www.yammer.com/schneider-

electric.com/#/threads/inGroup?type=in_group&feedId=14439199 to ask questions, post comments
and receive updates

Confidential Property of Schneider Electric | Page 17

 Overall: On-Track with Additional Actions and Focus for 2019
Good Progress with Foundational and Commercial Work to be Completed
Top Achievements
▪ Overachieved targets– several
success stories
▪ Created AVEVA SW Sales Playbook
and presented 30+ times
▪ Added AVEVA SW to 2018
EcoStruxure Plant launch book
▪ EcoStruxure with AVEVA SW training
by segment to 300+ including CPs,
IVP’s, SC&S, v2s, etc.
▪ bFO coordination and Sales Agent
commission processes created
▪ Many back-office and other items
addressed (e.g. Citect margin)
Confidential Property of Schneider Electric | Page 18
Top Actions Underway
▪ Clear GTM engagement with AVEVA
▪ Tier 1 and Tier 2 accounts with
SC&S
▪ Tier 3 accounts for ICO
▪ Increase technical sales knowledge
for AVEVA SW
▪ Next wave of SAE and sales
training planned and underway
▪ Standardize and streamline AVEVA
SW PO order entry/licensing process
▪ Piloting process over next 2 months
▪ SE Alliance SI certification for
AVEVA SW
▪ Aligning on common certification
process
Top 2019 Focus Areas
▪ Regular internal communication
promotion of AVEVA SW
▪ Monthly via ICO, DP, etc. and
optional quarterly updates
▪ AVEVA SW expansion into other SE
countries
▪ Continue development of initial 18
and expand to 30+
▪ More coordinated development for
AVEVA SW in SE offers
▪ DP and IIOT
▪ Alignment of external marketing and
events
▪ Messaging, attendance, lead
sharing, internal events, etc.