Challenges et opportunités dans la pratique des affaires en Chine

1. Challenges et opportunités dans la pratique des affaires en Chine Sophie BORGNE Responsable Marketing - Division Contrôle Industriel, Schneider Electric Chine sophie.borgne@cn.schneider-electric.com Suzhou, 17 Mars 2009

2. Agenda • Schneider Electric Corporate • Schneider Electric in China • My job scope • Key challenges & opportunities being a manager in China

3. Schneider Electric Corporate >

4. The global specialist in energy management

5. Making energy… Efficient Measure and control energy, automate, provide accurate diagnosis Safe Transform and distribute power safely Reliable Prevent from power outage and energy quality variances Green Make the connection of renewable energy sources easy, reliable and cost-effective Productive Manage processes, enhance any Infrastructure utilities management

6. Green Make the connection of renewable energy sources easy, reliable and cost-effective Productive Manage processes, make all the utilities of any Infrastructure more efficient Efficient Measure and control energy, automate, provide relevant diagnosis Reliable Prevent from power outage and energy quality variances Safe Transform and distribute power safely Example: Energy management in buildings

7. A global company Europe North America 44% 27% 28,000 48,000 €18.3Brevenue32%innew economies 114,000peoplePresence in 100+ countries Asia-Pacific Rest of the world 19% 10% 29,000 9,000

8. Supporting the first “zero-emission” scientific station In partnership with the International Polar Foundation, we are providing electrical distribution, building management and remote control solutions for the Princess Elisabeth Antarctica research station.

9. China’s Operation… >

10. A Key Contributor to China in the Past 20 Years 1987TJ Merlin Gerin 2001-20072nd Wave Investment 2008Energy Efficiency Olympics 1992-2000SECI1st Wave Investment 2 R&D centers1 laboratory – Power Test Lab1 learning institute500+ distributors 15B RMB total investment5B RMB tax contribution 10B RMB local purchasing 20-30% growth every year 15,000 employees4 branches36 regional offices 4 distribution centers 21 factories

11. Continuous Innovation CRDC in Shanghai • New circuit breaker standard in China • Energy efficiency program • Continuous technology transfer to JV • Sustainable R&D investment • 2 R&D Centers • Shanghai for power & automation • Shenzhen for ISC • 5% sales devoted to R&D • 440 professional engineers • Power Test Lab in Shanghai – Performing full range of power tests • Standardization & Certification • Cooperation with CQC/CEEIA/TILVA/CNCA/SAC New Power Test Lab in Jinshan Shanghai

12. People Development

13. University Program • Objective • A social contribution program • Cooperation platform • R&D collaboration • Talent fostering • Achievements • 9 joint labs with equipment worth 10MRMB • +100 scholarships worth RMB 400,000/year • +350 students for summer internships • 325 students recruitment

14. Employee Development & Diversity • Development & training program • Marco Polo • Leadership development: YEP, CEIBS, Tsinghua MBAs • SLIC: 10,000 courses in 2006 • Diversity • International environment: 20 nationalities, 6 within CMC • Cross-functional team • Geographical mobility • Employee Loyalty: over 10, 15 and 20 years! • A significant number of global top management team worked in China before, including our CEO!

15. Sustainable development:Walking the talk

16. Luli Program & Project Hope • Schneider Electric Youth Opportunities Foundation & Luli • 2M RMB employees donation as of 2006 • Cooperation with China Youth Development Foundation • Project Hope in China • 9 Schools • 2 orphanages

17. Energy Efficiency… >

18. Chinese Government Energy Efficiency Target • Chinese Government Target : -20% • Realize 20% energy consumption reduction comparing with the 10th 5-year-plan • Most industries are lagging • Most of local governments did not reach the target in past two years • Strong push to come • The Energy Law will be officially issued in Apr, 2008

19. 49%Industryincl Industrial building) 16% Residential 8% Tertiary Building 27% Transportation Our customers are the biggest energy consumers • Energy use split Main energy consumption is for heating, cooling, motors, lighting, electronics and appliances

20. We bring 30% energy saving now,through our solutions… Industry & infrastructure Average facility can reduce consumption by 20% to 30% Buildings Renovation can yield up to 30% of energy savings Residential EE products may save 10% to 40% in electricity

21. My job scope >

22. Managing a product portfolio • 30,000 references • 1.7BRMB turnover in 2008 (10% of Schneider China) • 80% of turnover with products manufactured in China • 25 marketers, 150 sales and 50 key distributors serving 4,000 customers • Schneider is the market leader, 2 times bigger than #2

23. Role of ICC Marketing Team • Business coordination • Sales • Customer satisfaction (quality, on time delivery) • Working capital (stock, backlog) • 4C’s management • New products and growth initiatives • Delta price & Margin • Prepare the future • Strategy • Product roadmap

24. Challenges and opportunities >

25. Managing people:manager = HR • Key challenges: • Recruitment • Development • Ethics • Some figures about my team • Average age: 29 • Average time with Schneider China: 3.5 years • Average time in actual position: 1.8 years • Male/female ratio: 50/50

26. Managing peopledelegation vs control • Traditional style • Manager: 老板 (laoban) • Key challenges • Foster initiative • Foster innovation • Trust and autonomy • Keep face

27. Business Practices • Guanxi & “Face giving”