Challenges et opportunités dans la pratique des affaires en Chine Sophie BORGNEResponsable Marketing - Division Contrôle Industriel, Schneider Electric Chine

sophie.borgne@cn.schneider-electric.com

Suzhou, 17 Mars 2009

Schneider Electric 2- Marketing – External Communication – 28 April 2008

Agenda

● Schneider Electric Corporate

● Schneider Electric in China

●My job scope

●Key challenges & opportunities being a manager in China

Schneider Electric 3- Marketing – External Communication – 28 April 2008

Schneider Electric Corporate

>

Schneider Electric 4- Marketing – External Communication – 28 April 2008

The global specialist in energy management

Schneider Electric 5- Marketing – External Communication – 28 April 2008

Making energy…

ProductiveManage processes, enhance any Infrastructure utilities management

EfficientMeasure and control energy, automate, provide accurate diagnosis

ReliablePrevent from power outage and energy quality variances

SafeTransform and distribute power safely

GreenMake the connection of renewable energy sources easy, reliable and cost-effective

Schneider Electric 6- Marketing – External Communication – 28 April 2008

Example: Energy management in buildings

ProductiveManage processes, make all the utilities of any Infrastructure more efficient

EfficientMeasure and control energy, automate, provide relevant diagnosis

ReliablePrevent from power outage and energy quality variances

SafeTransform and distribute power safely

GreenMake the connection of renewable energy sources easy, reliable and cost-effective

Schneider Electric 7- Marketing – External Communication – 28 April 2008

A global company

27%28,000

North America44%48,000

Europe

19%29,000

Asia-Pacific

10%9,000

Rest of the world

€18.3B revenue

32% in new economies

114,000 people

Presence in 100+ countries

Schneider Electric 8- Marketing – External Communication – 28 April 2008

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

Schneider Electric 9- Marketing – External Communication – 28 April 2008

China’s Operation…

>

Schneider Electric 10- Marketing – External Communication – 28 April 2008

1987TJ Merlin Gerin

1992-2000SECI

1st Wave Investment

2001-20072nd Wave Investment

2008Energy Efficiency

Olympics

15B RMB total investment

5B RMB tax contribution

10B RMB local purchasing

20-30% growth every year

15,000 employees

4 branches

36 regional offices

4 distribution centers

21 factories

2 R&D centers

1 laboratory – Power Test Lab

1 learning institute

500+ distributors

A Key Contributor to China in the Past 20 Years

Schneider Electric 11- Marketing – External Communication – 28 April 2008

Continuous Innovation

● 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

CRDC in Shanghai

NewPower Test Lab

in Jinshan Shanghai

Schneider Electric 12- Marketing – External Communication – 28 April 2008

People Development

Schneider Electric 13- Marketing – External Communication – 28 April 2008

University Program

●Objective● A social contribution program● Cooperation platform● R&D collaboration● Talent fostering

●Achievements

● 9 joint labs with equipment worth 10M RMB

● +100 scholarships worth RMB 400,000/year

● +350 students for summer internships

● 325 students recruitment

Schneider Electric 14- Marketing – External Communication – 28 April 2008

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!

Schneider Electric 15- Marketing – External Communication – 28 April 2008

Sustainable development:Walking the talk

Schneider Electric 16- Marketing – External Communication – 28 April 2008

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

Schneider Electric China – ISBU – Sophie Borgne 17-

Energy Efficiency…

>

Schneider Electric 18- Marketing – External Communication – 28 April 2008

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

Schneider Electric 19- Marketing – External Communication – 28 April 2008

●Energy use split

Main energy consumption is for heating, cooling, motors, lighting, electronics and appliances

Our customers are the biggest energy consumers

27%Transportation

49% Industry incl Industrial building)

16%Residential

8%Tertiary Building

Schneider Electric 20- Marketing – External Communication – 28 April 2008

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

Schneider Electric China – ISBU – Sophie Borgne 21-

My job scope

>

Schneider Electric China – ISBU – Sophie Borgne 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

Schneider Electric China – ISBU – Sophie Borgne 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

Schneider Electric China – ISBU – Sophie Borgne 24-

Challenges and opportunities

>

Schneider Electric China – ISBU – Sophie Borgne 25-

Managing people:manager = HR

● 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

● Key challenges:● Recruitment● Development● Ethics

Schneider Electric China – ISBU – Sophie Borgne 26-

Managing peopledelegation vs control

●Traditional style● Manager: 老板 (laoban)

●Key challenges● Foster initiative

● Foster innovation

● Trust and autonomy

● Keep face

Schneider Electric China – ISBU – Sophie Borgne 27-

Business Practices

●Guanxi & “Face giving”