Monterrey Development &

Innovation Center

Powering a World-Class Design Center

MDIC 2014 1

1999199919991999

Groupe Schneider becomes

Schneider Electric,Schneider Electric,Schneider Electric,Schneider Electric,

focused on Power & ControlPower & ControlPower & ControlPower & Control

1996199619961996

Modicon, Modicon, Modicon, Modicon, historic leader in Automation,

becomes a Schneider brand

2007200720072007

Acquisition of

APC corp. APC corp. APC corp. APC corp. and PelcoPelcoPelcoPelco

More than 175 years of history

2008200820082008

Acquisition of

XantrexXantrexXantrexXantrex

Power &

Control

2011201120112011

Acquisition of TelventTelventTelventTelvent

2010201020102010

Acquisition of Areva’s distribution activityAreva’s distribution activityAreva’s distribution activityAreva’s distribution activity

Energy

Management

MDIC 2014 2

1975197519751975

Merlin GerinMerlin GerinMerlin GerinMerlin Gerin joins Groupe

SchneiderSchneiderSchneiderSchneider

1988198819881988

TelemecaniqueTelemecaniqueTelemecaniqueTelemecanique joins Groupe SchneiderSchneiderSchneiderSchneider

1991199119911991

Square DSquare DSquare DSquare D joins Groupe

SchneiderSchneiderSchneiderSchneider

1836183618361836

Creation of SchneiderSchneiderSchneiderSchneider

at Le Creusot, France

19th 19th 19th 19th centurycenturycenturycentury 20th century20th century20th century20th century 21st century21st century21st century21st century

2000200020002000

Acquisition of

MGE UPS SystemsMGE UPS SystemsMGE UPS SystemsMGE UPS Systems

2003200320032003

Acquisition of

T.A.CT.A.CT.A.CT.A.C

2005200520052005

Acquisition of

Power Measurement Inc.Power Measurement Inc.Power Measurement Inc.Power Measurement Inc.

2003200320032003----2008200820082008

Targeted acquisitions in wiring devices and home automationwiring devices and home automationwiring devices and home automationwiring devices and home automation

(Lexel, Clipsal, Merten, Ova, GET, etc.)

Steel

Industry

Energy production

& transmission

Energy

Usage

Energy ManagementEnergy ManagementEnergy ManagementEnergy Management•Making energy…Making energy…Making energy…Making energy…

Safe, Reliable, Efficient, Productive and GreenSafe, Reliable, Efficient, Productive and GreenSafe, Reliable, Efficient, Productive and GreenSafe, Reliable, Efficient, Productive and Green

MDIC 2014 3

…with 30…with 30…with 30…with 30----70% savings everywhere70% savings everywhere70% savings everywhere70% savings everywhere

Providing integrated solutions

Efficient & productiveEfficient & productiveEfficient & productiveEfficient & productive:• Measure and control energy,

automate, provide relevant diagnosis

• Manage processes

• Make all the utilities of any

Infrastructure more efficient

Make energy visibleMake systems work togetherIntegrationIntegrationIntegrationIntegration

HVAC control

Lighting control

Access control

Video security

MDIC 2014 4

ReliableReliableReliableReliablePrevent from power outage & quality

variance

SafeSafeSafeSafe•Protect people and assets

•Transform and distribute power safely

Infrastructure more efficient

GreenGreenGreenGreen: Make the connection of renewable energy sources easy, reliable

and cost-effective

Video security

Electrical distribution

Energy monitoring

Motor control

Critical power

Renewable energies

IT data

Schneider Electric in Mexico

Tijuana

Monterrey

26

1400M USD in

annual sales

1356

Miniature Circuit

Breakers

1986

2066Equipment and

transformers, control

and automation

1998

832Load centers and

Sales

offices

17 Service

centers

MDIC 2014 5

México

DF

Tlaxcala

Toluca

1986 Load centers and

molded case circuit

breakers

1974

710

Medium voltage

transformers

1998

1752Equipment (low and

medium voltage)

1948

17 centers

130 Distributors

32System

integrators

Welcome

MDIC 2014 6

Monterrey

Population: Mexico’s 3rd largest

~5 million inhabitants

GDP: Mexico’s 2nd

12% of the country

29 billion USD

Mexico’s Most Competitive City

Cities of the Future: 3rd in Latin America

2011 Financial Times (fDi Magazine)

One of the best cities to study, work, invest, grow and retire

MDIC 2014 7

One of the best cities to study, work, invest, grow and retire

(Mundo Ejecutivo 2011)

Most employment generated: Mexico’s 2nd

2010: 77000 new positions

Home of 10/20 most powerful Mexican companies

ALFA, CEMEX, DEACERO, FEMSA, GIMSA, PROEZA, QUIMMCO,

VILLACERO, VITRO and Xignux

3 of the most important Latin-American universities

ITESM, UANL and UDEM

+110000 students

Innovation and Research Technology Park (PIIT)

Industry

Academia

Government

MDIC 2014 8

Government Alliances

•Mexico Federal Government

•PEMEX•CFE

•Nuevo Leon Government

•State Energy Plan

•French Embassy

•United States of America

Embassy

Research Partners

•Advanced Manufacturing, Prototyping

•Nanotechnology, Advanced Materials

•Electrical installations and testing

•Information technologies

Academic Partners

•Manufacturing, Mechatronics, Advanced Materials

•Mechatronics, Advanced Materials, Automation

•Systems Engineering,

Electrical Installations

•Packaging, Logistics, Supply Chain

Powering a World-Class R&D Center

MissionMissionMissionMission

To provide to highly talented

people a suitable environment to

perform high quality research

and development activities on

the energy management

solutions field in order to

consistently create value added

MDIC 2014 9

A World-class R&D center is an organization

that sustains critical competitive advantages with

excellent performance: customer focus,

resources and capabilities, strategic vision, value

creation and quality focus.

to all our stakeholders.

VisionVisionVisionVision

To project our organization as a

sustainable and talented world

class development and innovation

location based in an advanced

emerging economy.

Evolution

180180180180

210210210210

240240240240

270270270270

300300300300Evolution

4x growthAdvanced tools

Corporate processesRobust skills and competencies

Calculation and simulationIntellectual property generation

AccelerationGrowthBasic com

pete

ncies

Elem

ental resp

onsibility

Fam

iliariza

tion w

ith tools and pro

cess

es

2x growth

MDIC 2014 10

1999199919991999 2000200020002000 2001200120012001 2002200220022002 2003200320032003 2004200420042004 2005200520052005 2006200620062006 2007200720072007 2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012 2013201320132013 2014201420142014 2015201520152015 2016201620162016

30303030

60606060

90909090

120120120120

150150150150

Basic com

pete

ncies

Elem

ental resp

onsibility

Fam

iliariza

tion w

ith tools and pro

cess

es

2x growthNew product

development ownershipTechnology incubationOn-site global expertise

Physical testing

CampusSolar FieldSolar FieldSolar FieldSolar Field

Development BuildingDevelopment BuildingDevelopment BuildingDevelopment Building

Machine RoomMachine RoomMachine RoomMachine Room

Leisure AreaLeisure AreaLeisure AreaLeisure Area

MDIC 2014 11

Parking LotParking LotParking LotParking Lot

Labs BuildingLabs BuildingLabs BuildingLabs Building

Facilities

MDIC 2014 12

Demographics

AcademicsAcademicsAcademicsAcademics

40%

Engineering

30%

Industrial Design

30%Graduate Degrees

PopulationPopulationPopulationPopulation

220 Residents

6 years average

seniority

MDIC 2014 13

Gender BalanceGender BalanceGender BalanceGender Balance

65%65%65%65% 35%35%35%35%

Capabilities

Electro Mechanical Design

Enclosure Mechanics

Plastic Part Design

Label Design and Product Documentation

Awards & Certifications:

20142013 2013 2014

MDIC 2014 14

Documentation

Advanced Calculation and Simulation

Industrial Design and Ergonomics

Labs and Model Shop

Innovation and Creativity

All required Offer Creation Process

functions are based in Monterrey

Development and Innovation Center (except for marketing)

Innovation

Historical Patents (2007 – 2013):

42

Patent Registration:

95% United States Patent and Trade

Office

3% Europe

2% South America

MDIC 2014 15

2% South America

Protection Coverage:

65% North America

35% Global

Patent Ratio:

1 patent per 11 employees

Patent Objective:

10 per year

A Complete Showroom

Building

Automation

•IT Solutions

MDIC 2014 16

6300+Final Commercial Items

80K+Individual Components

•IT Solutions•Access and Control•Lighting fixtures and wiring devices

Solar Field

Power generation capacity:

360KW

Strings of 20 panels of 300 Watts @

1000VDC

Project duration:

06/2014 – 04/2015

MDIC 2014 17

Projected Cost Per Watt

Grid Operated

1:00 24:0020:00 22:00

Solar Solar Solar Solar

ArrayArrayArrayArray

6:00

PowerPowerPowerPowerBatteryBatteryBatteryBattery

PowerPowerPowerPower

UtilityUtilityUtilityUtility

PowerPowerPowerPowerUtilityUtilityUtilityUtility

PowerPowerPowerPower

Building Building Building Building

and/or and/or and/or and/or

UtilityUtilityUtilityUtility

Battery

Operated

CO2 reduction:

18 tons per year

Effective area:

4000 m2

Estimated savings:

$1.5M USD

Our Partners:

PV Cells Inverters Incentives

Reduced water

consumption

Non-potable water for

landscaping and flush

fixtures

Construction Material

Pre/Post Consumer

Recycled Content

Construction

Sustainable Features

MDIC 2014 18

fixtures

Low-flow water closets,

waterless urinals, & low flow

lavatories

Construction

waste diverted

from landfill

“Empowering R&D activities through

Numerical Simulation”

MDIC 2014 19

Numerical Simulation”

Advanced Simulation Collaboration

> Partner NA

(Smyrna, Cedar Rapids, Raleigh, Monterrey)

> Partner EUR

(France)

> Partner

(Partner China, Partner India)

> Global Modelling & Sim

(France)

> Partner Factor Correction

(Seattle)

MDIC 2014 20

> ITB

(Billerica, St. Louis, North Andover)

> Buildings

(JUNO lighting - Des Plaines, PELCO -Clovis)

> ITB

(France, Denmark, Italy)

> Industry

(France)

> ITB

(China)

> Industry

(Japan)

> Industry NA

(Raleigh)

> Buildings

(Sweden)

> Energy

(France, Germany, Spain)

> Energy

(Australia)

> Energy NA

(Smyrna, ex-AREVA Mexico)

Numerical SimulationTools, methods, apps on the cloud and libraries:

Solid Mechanics Thermal Rheology Systems Engg.

MDIC 2014 21

Electromagnetic Electronics Multi-Physics

MDIC 2014 22Make the most of your energy

Thank You!

MDIC 2014 23

Make the most of your energy