SCH2017_DRF_EN_Livre.indb

1 Overview of the Group’s strategy, markets and businesses Businesses, end-markets and customer channels

Multiple accesses to markets

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Customer satisfaction Customer satisfaction is an integral part of Schneider Electric’s growth strategy. Every contact with Schneider Electric should be a positive experience that makes all customers, no matter who they are or where they are located, feel understood and satisfied. This commitment is an important differentiating factor, and customer satisfaction surveys are regularly carried out in all countries in which the Group operates, and employees attend related training programs. Customers also have access to online diagnostics and support services (an e-catalogue, downloadable software and online information and training).

Other intermediaries & partners Panel builders

A large portion of Group revenues is made through intermediaries such as distributors, systems integrators, installers and purchasing advisors, who all bring their own added value and know-how, allowing the Group to access a number of different markets. Distributors & retailers Over 40% of the Group’s total sales goes through our privileged Distributor partners, which support us in making our products accessible in stores, either off-line or online, in 190 countries all over the world. Our Distribution partners encompass 4 types of players: large international groups, such as Rexel and Sonepar; electrical wholesalers and generalist distributors, such as Graybar, Zhongyeda Electric, CED Edmunson; and local players; as well as IT specialists, such as Tech Data and Ingram Micro. In addition, the Group uses specialized distribution channels for highly technical products such as automation solutions and industrial software, access control and security products. Schneider Electric assists its distributors in advising their customers and helping them benefit from our technical innovations. To maintain a high-performance network, the Group works hand-in-hand with distributors on supply chain improvements, technical training and joint marketing actions. With e-commerce growing fast, Schneider Electric is present in all our Distributors websites and ensures we offer our key customers a seamless O2O (Online-to-Offline) experience. We also work with key DIY Retailers, such as Home Depot and Lowes in the USA, Kingfisher in the UK and Saint-Gobain Distribution in France, to ensure our leadership in the Home Improvement and Renovation market.

Panel builders build and sell electrical distribution or control/ monitoring switchboards, primarily for the building, energy and electricity infrastructure markets and industry. Their main customers are contractors. Panel builders mostly buy low and medium voltage devices, such as circuit breakers and contactors, and increasingly, prefabricated systems. There are more than 35,000 panel-builders throughout the world. Contractors To design solutions tailored to end-users’ specific needs, Schneider Electric works closely with contractors, small specialists or generalist electricians, large companies that specialize in installation equipment and systems and designers. Electricians & DIY stores Electricians design and perform electrical installations, primarily in residential and small non-residential buildings. They are therefore our key customers and we have one of the most comprehensive networks of electricians worldwide. Schneider Electric helps electricians to operate more efficiently through a suite of training, technical support and digital tools, like the app “My Schneider Electic”. Schneider Electric strengthens its relationship with electricians by increasing their visibility to end-users through different marketing actions including “installer locators” on Schneider Electric’s website. Schneider Electric has one of the most comprehensive networks of electricians worldwide.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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