SCH2017_DRF_EN_Livre.indb

Message from Jean-Pascal Tricoire 3 Interview with Emmanuel Babeau 5 2017 in brief 6 Profile of the Group 8 Key Figures 2017 10 Leadership team 19

1

5

OVERVIEW OF THE GROUP’S STRATEGY, MARKETS AND BUSINESSES

CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2017 RFA

21

225

1. Group strategy and market opportunities 22 2. Businesses, end-markets and customer channels 28 3. Ambitious long-term financial targets for attractive shareholder returns 34 4. Company history and development 35 5. Research & Development 38 6. Organizational simplicity and efficiency 43 7. Risk Factors 62 8. Internal control and risk management 56 SUSTAINABLE DEVELOPMENT 1. Sustainable development at the heart of our strategy 2. Green and responsible growth driving economic performance 3. Schneider Electric’s commitment to environmental performance 4. Committed to and on behalf of employees 106 5. Schneider Electric, an eco-citizen company 120 6. Methodology and audit of indicators 131 7. Indicators 139 65 66 81 92

1. Consolidated statement of income 2. Consolidated statement of cash flows

226 228 229

3. Consolidated balance sheet

4. Consolidated statement of changes in equity 231 5. Notes to the consolidated financial statements 232 6. Statutory auditors’ report on the consolidated financial statements 291

Sommaire

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PARENT COMPANY FINANCIAL STATEMENTS RFA

2

295

1. Balance sheet

296 298 299

2. Statement of income

3. Notes to the financial statements 4. Statutory auditors’ report on the annual financial statements 310 5. List of securities held at December 31, 2017 313 6. Subsidiaries and affiliates 315 7. The company’s financial results over the last 5 years 316

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INFORMATION ON THE COMPANY AND ITS CAPITAL 1. General information on the Company 2. Shareholders’ rights and obligations**

3

317

CORPORATE GOVERNANCE REPORT** RFA

318 319 321 325 327 328 339 341

153

1. The board of directors

154

3. Capital**

2. Organizational and operating procedures of the board of directors

4. Ownership structure

167 171 173 178

5. Employee incentive plans – Employee shareholding 6. Shares and stock option plans**

3. Board activities

4. Board committees (composition, operating procedures and activities)

7. Stock market data 8. Investor relations

5. Senior Management

6. Declarations concerning the situation of the members of the administrative, supervisory or management bodies 7. Interests and compensation of Group Senior Management 8. Regulated agreements and commitments 10. Table summarizing outstanding delegations relating to share capital increases granted by the Shareholders’ Meeting 11. Publication of information pursuant to article L.225-37-5 of the French Commercial Code 213 213 179 180 212 9. Participation of shareholders to Shareholders’ Meeting 213

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ANNUAL SHAREHOLDERS’ MEETING RFA

343

1. Report of the board of directors to the Ordinary and Extraordinary Shareholders’ Meeting 2. Report of the Vice-Chairman independent lead director of the board of directors 3. Exhibits to the board of directors’ report: internal regulations of the board and charter of the Vice-chairman independent lead director 357 4. Special reports of the Statutory Auditors 365 5. Draft resolutions 371 344 356 PERSONS RESPONSIBLE FOR THE REGISTRATION DOCUMENT AND AUDIT OF THE FINANCIAL STATEMENTS 377 Persons responsible for the registration document 377 Persons responsible for the audit of the financial statements 378

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BUSINESS REVIEW RFA

215

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1. Trends in Schneider Electric’s core markets 216 2. Review of the consolidated financial statements 218 3. Review of the parent company financial statements 224 4. Review of subsidiaries 224 5. Outlook 224

Annual Financial Report elements are clearly identified in this table of contents with the sign RFA ** This constitutes the board of director’s report.