Schneider Electric IT APC by Schneider Electric Sustainability

Schneider Electric IT (APC by Schneider Electric) Sustainability & Green Premium Raymond Lizotte Director, SEIT Environment Stewardship Office October 2013 All content in this presentation is protected – © 2013 APC by Schneider Electric

Agenda Introduction Sustainability Green Premium Business Value Conclusions

Focusing on energy Energy is key to our business – from generation to use…. 72% of energy consumption • Energy and infrastructure • Industry • Data centers and networks • Buildings • Residential Integrated solutions where energy is used… ● Electric utilities ● Water & waste water ● Oil & Gas ● Marine ● Mining, Mineral, Metals ● Machine builders ● Data centers / IT ● Hospitals ● Hotels ● Buildings, Retail ● Residential

SE-IT (APC) Business Overview Sales by Offer Business Description € 3. 6 B 2012 annual sales UPS Services Cooling Racks/PDUs Software 16% Services #1 #1 or #2 #3 #1 or #2 #2 45% Transactional Worldwide 39% Solutions Sales by Geography 37% New Economies 63% Mature Economies Surge Protectors Industrial UPSs Segment Responsibility Data Centers Home & Professional UPSs Finance Cloud/Collocation IT

Our Story Our Vision We see a world where we can all achieve more while using less of our common planet Our Mission We help people make the most of their energy Brand Promise Schneider Electric’s broad portfolio of activities in efficiency management Makes our products, solutions, and services safe green reliable productive efficient

Sustainability Conversation with Customers • Our Sustainability Story is part of the conversation, the • Sustainability Story of our customers is the rest. • About 10 -15% of our customers have defined, articulated Sustainability Stories Customers • About 10% of our customers don’t care about Sustainability and don’t want it part of the conversation • Remainder care about Sustainability, but do not yet have a Sustainability Story defined. Care with story Care no story Don't care

What is Green Premium? Ro. HS Compliance documentation REACh Sustainability Parameters PEP End-of-Life Guidance Eo. LI

SE-IT Business (ITB) Green Premium Status • Products responsible for 78% of ITB and 2012 NR have Product Environmental Profiles (PEPs). • Green Premium and PEPs highlighted on Product Pages of www. APC. com. • Marketing and customers have easy access to environmental data. . • All new product must be released with PEPs.

Value of Product Environmental Profiles • We are obtaining Business Value from marketing products based on environmental criteria via PEPs. • Obtain return on investment made to draft PEPs • SEIT investment to produce PEPs in 2011/2012: 95 K€ • Winning Tenders – Sustainability information included in proposals • Differentiating products – especially in online search engines • Environmental performance improvements – Providing new criteria when older criteria lose value and promoting continuous improvement.

Communicating with Customers who Care • Cutting edge customers want information on Sustainability • Instead of having no answer • • …. . Green Premium provides the answer. • Marketing teams are making use of Green Premium data • ~10% of proposal requests require Sustainability parameters • Prior to Green Premium, each request was answered individually or not at all. • Via PEPs, marketing easily includes Sustainability information in proposals. • According to one business area (Spain country manager), Green Premium was included in all contracts that they were awarded in 2012.

Online Retain and Environmental Value • By 2014, most business transactions will be performed online • Differentiation from the crowd is the challenge… …. . Green Premium provides an answer. • SE-IT initiative: Embrace Online Retail • SE-IT “wins” when sorting by price, performance, or any other parameter. • SE-IT products are gaining market visibility and winning when Search Results use Sustainability parameters • APC branded products are “topping” search results when “environmental, green, efficient” search parameters are used.

Online search for “UPS, ” no sustainability criteria. APC UPSs are intermixed with 37 other UPS products. APC UPS are 2 of the top 10 and 5 of the 37

Online Search for “Environmental UPS” APC UPSs are top six offers! Similar results achieved when other search criteria used

Internal Design • We strive to do the Right Things for our Air, Water, and Land…. ……but are we doing the Right Things Wrong? • The data used to develop PEPs provides engineers with the data to make better engineering and sourcing decisions. • PEP data becomes the basis of SE Eco-Design Program. • Instead of “guessing” what is the best solution, engineers have a numerical tool to make better “Right” decisions.

Questions Raymond Lizotte raymond. lizotte@schneider-electric. com +1 978 -670 -2440