Schneider Electric share price/ CAC 40 index the … Electric share price/ CAC 40 index > Number of shares outstanding ( 28 February 2011): 272,060,081 > ISIN Code: FR0000121972 >

Our companyShareholder agenda

> Annual Results 2010• Record high sales, EBITA and net profit• Strong start of Areva Distribution, exceeding expectation

Net Profit: € 1,720 million +109%Proposed Dividend per share: € 3.20(2), +56%

•  Organic sales up 9,3%

•  Excellent performance of businesses, notably Industry and IT 

•   37% of sales in new economies (+15%)

•  EBITA before restructuring exceeded € 3 billion

•  EBITA margin including Areva Distribution on 12 month  pro-forma basis at 14.5% 

•  Strong cash flow generation and good control of working capital requirement

•  Solid Balance Sheet

Agenda

31 March 2011Shareholder meeting (Lille)

20 April 20112011 First-quarter sales

Schneider Electric share price/ CAC 40 index

> Number of shares outstanding ( 28 February 2011): 272,060,081

> ISIN Code: FR0000121972

> Trade on NYSE Euronext Paris stock exchange (Compartment A)

> Market Capitalisation (28 March 2011):e32.1 billion

Focus

The home – key to the energy challenges

Get closer to Schneider Electric

Become a registered shareholderWhy become a registered shareholder

• Personalized information: You are the first to be informed. You receive the  letter to shareholders, the Annual Report and report  of  activities  and  Sustainable  Development  reports  on simple  request.  You  are  also  invited  to  preview  the  various events we organise (visits to sites, exhibitions etc).

• You are personally invited to every Shareholders’ Meeting irrespective of the number of shares you hold.

• You acquire double voting rights at Shareholders’ Meetings  for all shares registered for 2 years at  least on 31 December of the year prior to the Meeting…

• … and even more if you opt for direct registration.

For more details, contact us

Direct or administered registered shareholders? Turn the page to know better

•••

Western Europe 34%

Rest of the World18%

North America 24%

Asia-Pacific24%

Breakdown of sales in 2010 by geography

Questions or suggestion? Please let us know:

By phone:

On the internet: www.schneider-electric.com/finance

By mail: Schneider Electric SA

35 rue Joseph Monier, CS 30323

92506 Rueil-Malmaison cedex, France

(Toll-free call from a landline in France)

By telephone:

On our website: www.schneider-electric.com/finance

By mail: Schneider Electric SA35 rue Joseph Monier, CS 30323 92506 Rueil-Malmaison cedex, France


A new regulatory framework

Since Kyoto, many countries have mobilised their resources to reduce CO2 emissions from buildings. In France, the “Grenelle de  l’environnement”  (Special Environmental Plan)  set  specific targets including in particular reducing energy consumption by 30% by 2020, launch of low energy-consumption buildings, increasing the number of positive energy buildings by 2020 and greater recourse to renewable energy sources.

Reducing your energy bill is possible right now

•  “Passive” initiatives intrinsic to the building’s own design.  A  well-insulated  roof  and  walls  prevent  heat  loss  from  the home, for example.

•  “Active” initiatives  based  on  measuring  and  controlling energy  consumption,  supervision  of  the  various  systems and  the  contribution  of  renewable  energy,  photovoltaic,  for example.

CAC 40Schneider Electric

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ActionLetter to Schneider Electric Shareholders • April 2011

No. 35

Record EBITA(1) Sales Solid Free Cash Flow

€ 20 billion € 3 billion € 1.7 billion

24 May 2011L’école de la bourse (Stock Market School Training) Day at Schneider Electric’s headquarters  in Rueil-Malmaison

21 April 2011Annual Shareholder’s Meeting (CNIT - Paris - La Défense)

Please take the opportunity to visit our exhibition  “Products and solutions for life-space” at 13h30 CET in the hall Brillat-Savarin, CNIT- Paris-La Défense

Schneider Electric helps you meet these challenges by bringing you…

Meeting our shareholdersOn January 26, 2011, Schneider Electric invited its individual shareholders to visit its Research & Development centre located at Eybens, near Grenoble (France).

Electropole,  inaugurated  on  October  2006,  is  a  centre dedicated to the design and development of Power products (circuit-breakers,  switches,  contactors,  fuses,  etc…)  and solutions. This intelligent building is a showcase for Schneider Electric’s  global  offer  for  electrical  distribution  and  Building technical Management.

Objectives for 2011: solid growth and margin improvement

• Solid organic sales growth of 6% to 9%, 

•  EBITA margin of 15.0% to 15.5% of sales, a raise from the 14.5% level in 2010 on pro-forma basis.

Three challenges to confrontReducing energy consumption

Enhancing user comfort and systems reliability of the installations

Limiting CO2 emissions by generating clean and renewable energy

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Reliability Safety Comfort Green energy Efficiency

New! Schneider Electric Shareholders’ 

Guide available shortly 

Innovation, efficiency, design

Welcome to the home of Schneider Electric

•  Final DistributionPanelboard,

•  Miniature circuit breakers,contactors

• Protection for photovoltaics

•  Innovative and designwiring devices

•  Life Space controls (switch) for lighting, temperature controls etc.

•  Home network connectivity•  Controlentry (doors,…)

•  Showroom at 2010 Motorshow

•  Electric vehicule charging infrastructure

Focus

Schneider Electric invites energy efficiency at home

Dear Shareholder,

2010 was a key year for our company. Our teams delivered record high sales and profitability. We affirmed our strategy of being the specialist in energy management and repositioned our skills accordingly. We have also changed size. Including Areva Distribution on a full-year basis, Schneider Electric’s sales exceeded €20 billion for the first time. All our businesses and regions renewed growth thanks to investment in R&D and new activities, customer-focused organization, strong footprint in new economies and improving end-markets trends: residential, non residential buildings, industry, oil and gas, data centres and so on.

We entered 2011 with a solid momentum. We intend to continue investing in areas offering the Group solid growth opportunities: energy efficiency for "consuming less but better", "smart grid" - the intelligent and communicating network and new economies.

This month your letter focuses on one of the major challenges of the XXIst century: energy efficiency in your home and your daily life. Home is a place where consumers have increasing and legitimate demands in terms of comfort, design, safety, reliability, energy efficiency and protection of the environment.

Today, environmental concerns and ever-increasing energy costs lead us to devise ways of enhancing the energy efficiency of new and existing residential buildings. Our teams, the specialist in energy management, offer simple products and solutions to reduce energy consumption in your home by 10 to 30%, thus reducing your electricity bill and enhancing comfort through home automation.

In this letter, discover our innovations that make the most of your energy in the place dearest to you, your home!

Jean-Pascal TricoirePresident and CEO

Become a registered shareholder

•••

Take advantage of the rights and benefits of direct registration and earn added bonuses

Your shares are  registered with BNP Paribas  to whom we have entrusted management of our directly registered shares

> Significant financial benefits

• Exemption of handling or management fees

• Lower  brokering  fees:  0.30%  (excl.  VAT)  of  the  gross transaction  value  with  a  minimum  of €6.10  (excl.  tax)  and  a bank commission of €7.62 (excl. tax) per order. 

> Privileged relationship

• Direct  access  to  your  account  via  a  secure  website: https://gisnomi.bnpparibas.com

•  Easy  transmission  of  your  stock  market  instructions  using  the means which suit you best: internet, telephone, mail, fax

• Easy access to BNP Paribas Securities Services

Hotline: 0800 004 120 (free number from France) 

or 00.33.1.10.14.66.11

Fax: 00.33.55.77.34.17

You can also opt for managed registered shares

You  don’t  change  your  procedure  or  your financial intermediary.

In addition to the benefits of registered shareholders mentioned earlier, you also  retain  the management of  your shares in your securities account or your PEA.

Three tangible benefits

1 - Optimized consumption

The simple act of monitoring power consumption  in  real  time via special meters allows users to identify where and how the power is being used , modify their behaviour and save energy.

2 - Extra comfort and safety

Gain  control  over  heating  and  lighting  systems  and  eliminate waste  without  compromising  on  comfort  or  safety  –  this  is possible  with  automated  programmers,  timers,  thermostats, dimmer  switches,  automatic  motion  and  presence  detection sensors, load-shedding during peak hours etc.

3 - Renewable energy at your home

Even charge up your electric car using the network at home.

Schneider Electric products are designed to overcome technical complexities and offer users intuitive solutions. Everyone can see how much power they are consuming and so gain better control over their energy use.

A residential

communication

network

The  onset  of  new 

communication  technologies  (sound,  image,  telephone,  and  internet) 

and constant innovation creates new demands and all equipment must 

be compatible with that already installed.

Schneider Electric’s Alvidis system comprises several modules easily 

clipped  on  a  DIN  rail  for  telephone,  ethernet,  television  etc.,  creating  

a  comprehensive  and  fully  upgradeable  RJ45  socket  network  in  the 

home - for rapid, safe connections depending on needs.

Increasing the comforts of home with the Wiser solution: 15% energy savings

In  the  residential  area  of  Kuala  Lumpur,  Malaysia,  Kenny  Wale 

bungalows  are  equipped  with  Wiser home control systems. 

This solution  is  intended to optimise energy use  in the home and 

offers many functions: real-time visualization of energy usage and 

carbon footprint, remote home control with smart phones for total 

flexibility, consumption based on occupancy, lighting according to 

the time of the day and temperature.

> Home automation and energy distribution: efficient and easy to use solutions

Unica: the product line with new technology

In June 2010, Schneider Electric launched a new range of switches, sockets, motion sensors and blind controls which blend harmoniously with stylishly designed interiors thanks to the quality and detail of the finishing. This range is KNX compatible, a standardized and intelligent network communications protocol  for  the management of  electrical installers for residential buildings.

With the Unica Deco iPhone application, which is available for free at the AppStore, everyone can easily visualise any model in their home and make the right choice.

The  application  can  also  pin-point  your  nearest  Schneider  Electric approved electrician.

Odace: where design meets performance and originality

Schneider  Electric  has  launched  a  range  of  new-generation appliances in the market, so everyone can personalize their home according  to  their  own  desires  with  clean,  sober  and  timeless models,  premium  quality  material  and  innovative  yet  functional accessories - to simplify their daily life.

Save up  to 20% on  installation  time:  the Odace  range combines simplicity of assembly with ease of installation, thanks to optimized design and ergonomic connections, for rapid and reliable wiring.

> Unica and Odace, two innovative product ranges to suit every lifestyle

Frédéric Beuvry, Senior Vice President – Industrial Design and Ergonomics at Schneider Electric, presented  the major priorities of Group strategy  to our shareholder guests at the Architect@work Exhibition held on 2nd December 2010. The strategic aim is to develop a recognisable, precise and specific brand design based on values of reliability, simplicity and ingenuity to reflect the Schneider Electric identity and satisfy increasingly rigorous standards of comfort, safety, ergonomics and design. In this domain Schneider Electric is providing many sources of information: dedicated exhibitions, installation guides and design and installation software.

"Our design aims at reliability, simplicity and ingenuity"

The Unica range The Odace range

"La pince" "Le support"

Focus


Dear Shareholder,








•••











or 00.33.1.10.14.66.11

Fax: 00.33.55.77.34.17












A residential

communication

network


























Frédéric Beuvry, Senior Vice President – Industrial Design and Ergonomics at Schneider Electric, presented  the major priorities of Group strategy  to our shareholder guests at the Architect@work Exhibition held on 2nd December 2010. The strategic aim is to develop a recognisable, precise and specific brand design based on values of reliability, simplicity and ingenuity to reflect the Schneider Electric identity and satisfy increasingly rigorous standards of comfort, safety, ergonomics and design. In this domain Schneider Electric is providing many sources of information: dedicated exhibitions, installation guides and design and installation software.




Focus


Dear Shareholder,








•••











or 00.33.1.10.14.66.11

Fax: 00.33.55.77.34.17












A residential

communication

network


























Frédéric Beuvry, Senior Vice President – Industrial Design and Ergonomics at Schneider Electric, presented  the major priorities of Group strategy  to our shareholder guests at the Architect@work Exhibition held on 2nd December 2010. The strategic aim is to develop a recognisable, precise and specific brand design based on values of reliability, simplicity and ingenuity to reflect the Schneider Electric identity and satisfy  increasingly rigorous standards of comfort, safety, ergonomics and design. In this domain Schneider Electric is providing many sources of information: dedicated exhibitions, installation guides and design and installation software.














Agenda








Focus










•••

Western Europe 34%


North America 24%

Asia-Pacific24%



By phone:






By telephone:










50

75

100

125

150

175

03/1103/1003/0903/0803/0703/06


No. 35















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•  Life Space controls (socket, switch, regulator, thermostat...) for lighting  and temperature controls

•  Home network connectivity•   Control entry systems (doors...)













Agenda








Focus










•••

Western Europe 34%


North America 24%

Asia-Pacific24%



By phone:






By telephone:










50

75

100

125

150

175

03/1103/1003/0903/0803/0703/06


No. 35















1

2

3










•  Life Space controls (switch) for lighting, temperature controls etc.

•  Home network connectivity•  Controlentry (doors,…)





• Personalized information: You are the first to be informed. You receive the letter to shareholders, the Annual Report and report of activities and Sustainable Development reports on simple request. You are also invited to preview the various events we organise (visits to sites, exhibitions etc).

• You are personally invited to every Shareholders’ Meeting irrespective of the number of shares you hold.

• You acquire double voting rights at Shareholders’ Meetings for all shares registered for 2 years at least on 31 December of the year prior to the Meeting…




•••

By telephone:





•••


Your shares are registered with BNP Paribas to whom we have entrusted management of our directly registered shares


• Exemption of handling or management fees

• Lower brokering fees: 0.30% (excl. VAT) of the gross transaction value with a minimum of €6.10 (excl. tax) and a bank commission of €7.62 (excl. tax) per order.


• Direct access to your account via a secure website: https://gisnomi.bnpparibas.com

• Easy transmission of your stock market instructions using the means which suit you best: internet, telephone, mail, fax

• Easy access to BNP Paribas Securities Services

Hotline: 0800 004 120 (free number from France)

or 00.33.1.10.14.66.11

Fax: 00.33.55.77.34.17


You don’t change your procedure or your financial intermediary.

In addition to the benefits of registered shareholders mentioned earlier, you also retain the management of your shares in your securities account or your PEA.

Documents

Schneider Electric share price/ CAC 40 index the … Electric share price/ CAC 40 index > Number of shares outstanding ( 28 February 2011): 272,060,081 > ISIN Code: FR0000121972 >