Investor day. November 17, Energy business Michel Crochon Executive Vice President

Transcription

1 Investor day November 17, 2010 Energy business Michel Crochon Executive Vice President

2 We built a global leadership in medium voltage and grid automation with Areva Distribution MV switchgears & systems Distribution Transformers Fill the gap with no.1 Balance global footprint Combined sales ~ 4.5bn 80 plants ~45% in new economies Grid Automation Complementary smart grid offerings Extensive market coverage Operational figures for Areva Distribution are estimates subject to final adjustments 2

3 Integration of Areva Distribution on track Business Performance/Continuity ~400 Integration action plans Business performance in line with expectations Focus on continuity of operations and minimize disruption for customers Continued commercial successes: e.g. Saudi Arabia, Brazil, Australia Front office set up completed in 53 countries Detailed action plans roll-out for synergies capture Areva T&D India mandatory offer in progress Key priorities projects launched People management Customer management Energy business forum with top 200 managers organized in early July People review conducted within first 100 days New organization deployment completed at N-3 level Majority (~90%) of the customers view the combination of Schneider Electric and Areva Distribution favorably 85% of top 200 customers visited 3

4 Energy: Business strategic domain Centralized generation Residential Industries Non residential Transmission Utilities Distribution Data centers Commercial and industrial Renewable energy plants > 1MW Decentralized distributed generation <1MW 4

5 Energy: Business overview Business size Key Channels 4.5bn LTM sales proforma* Medium Voltage #1 worldwide Direct Panel Builder Contractor Distributor 1st channel Other main channels Our offer Geographies Areva Distribution 40% 26% 34% 9 months 2010 sales proforma* Segment responsibility Products Components, secondary products, transformers, network protection Solutions Equipment, substations, systems & services New economies 45% 55% 9 months 2010 sales proforma* Mature Countries Oil & gas Utilities * Proforma with full consolidation of Areva D over the period Estimates subject to changes. Final split between Power and Energy to be finalized. 5

6 MV leader with best-in-class products for electro-intensive customers and utilities Scada Distribution Management System Protection relays MV Primary cubicles Prefabricated MV/LV cubicles for secondary substation MV/LV transformers Capacitors MV cubicles Electro-Intensive Utilities HV/MV prefabricated factory-assembled and engineered substation Primary switchgear MV ring main units Circuit Breakers MV cubicles Distribution automation: Feeder automation Remote control Digital Protection relays MV ring main unit 6

7 Our business benefits from favorable market drivers Market Drivers Smart Grid New Economies Need of retrofit Energy reliability and savings More intelligence embedded distribution grid Integration of renewables and electric cars Demand Response Infrastructure investment Increased energy consumption Ageing grid assets in mature countries requiring network and systems upgrades End-users with higher expectations in terms of reliability and power quality Reduce energy cost Wind installed capacity growth vs. 2009: US capacity growing by 165% by 2015 China capacity multiplied by 6 by 2020 Source: Pike research and China Wind Power outlook 2010 China and India represent 40% of total investment in Distribution Grid ( ) Power interruptions costs in the US >$100 bn a year Source: World Energy Outlook 2010 Source: Perfect Power 2008 Examples of power outages costs: Brokerage operations $6.5M per hour Credit card operations $2.6M per hour Source: Arthur D. Little Reliability and Distributed Generation White Paper 7

8 We are in a strong position to capture growth in new economies Promising market trends in new economies Electrification and equipment needs > 80% of global market growth in next ten years Strong complementarities in new economies China India Brazil Russia Middle East Schneider Electric MV Areva D 50% acquisition of Electroshield TM Samara in Russia Global leader with 45% of sales from new economies 8

9 We help electro-intensive customers to actively manage energy usage Optimize energy efficiency for large site Power and Control integration for maximum cost savings Power metering SCADA software Telemetry solutions Advanced data recording Online simulation Single supplier with full project responsibility Improved reliability Enable plant wide security Optimize power availability and reduce system failure End-to-end security solution to protect people and assets Equipment tested for harsh environment Power management systems Secured power systems Design and engineering Services Video surveillance Intrusion detection Access control Advanced diagnosis Leakage detection Reduced operating expenses Enhanced performance and safety Availability and security enables seamless integration 9

10 Open and scalable Energy Management and Control System Chevron LNG Project in Angola This slide has been omitted 10

11 One-stop shop solutions to help utilities cope with a changing environment Increase in base and peak load End-to-end management system for grid automation Regulatory pressure on performance (SAIDI, SAIFI) Aging networks in the developed world Renewable energy and electric vehicles integration Pressure on supply side Utilities Our solutions Safe & reliable designs (IEC 61850) Top 3 worldwide leader Network modeling and consulting expertise Flexible distribution (emergence of the smart grid) based on widespread sensors and Grid automation Supply side demand response management Growing end-users expectations in power quality Retrofit services Best in class products & equipments 11

12 MV feeder automation system to monitor and control 650 MV/LV substations in Saudi Arabia This slide has been omitted 12

13 Flexible & Intelligent Grid: Dynamic line rating increases English wind farm output by 30% This slide has been omitted 13

14 Energy well positioned to capture the smart grid opportunity Worldwide leadership in medium voltage Best-In-class products and technologies Integrated energy management for electro-intensive customers enabled by Adapted solutions to help utilities cope with the changing environment Energy Efficiency Smart Grid New economies Integrated power and automation solutions for end-users to maximize energy savings Harsh environment solutions for O&G Capability to manage both demand and supply side of the energy equation Network expertise & modeling services IEC technology Local offers Leverage Areva D market access in some countries Leverage Electroshield access in Russia and neighboring countries N 1 in medium voltage Unique positioning in smart grid Strong presence in new economies 14

15 Help people make the most of their energy