20131107 Presentation Barometer quarter 3 2013

Schneider Electric Extra-financial results Q3 2013

7 November 2013

2Schneider Electric - Sustainable development – Extra-financial results – Q3 2013

Agenda

Sustainability commitment at a glance




1. 2. 3. 4.Sustainabilitycommitment at a glance

Highlights of Q3 2013& Extra-financial results

Focus:People engagement

Q&A


A three levers’ sustainability strategy

Business practices

Products and sites

Employees

Communities

Ethics & Responsibility

Fostering energy access

Solutions for the energy gap

Innovation

People

Business

Fighting fuel poverty

Solutions for Efficiency

Active Energy efficiency, Energy management & Sustainability services

Smart cities

Smart grid (renewable, flexible distribution, electric vehicle, demand response,)

Spreading access to reliable, affordable and clean energy through a combined approach of training, offers, business models and investment

A measured commitment: The Planet & Society Barometer> Measuring sustainability> Communicating quarterly> Auditing annually by a third party


Q3 2013 Sustainability results at a glanceResults still above the objectives

ReferenceActual

8

A rebound after 2 quarters of decrease● Strong momentum of Access to energy programme related indicators ● Planet indicators showing slight stagnation or decrease ● Newly reported indicators still behind objectives

The Barometer performance through 2005-2008 and 2009-2011:


2013 Third quarter highlights

Access to energy: Schneider Electric Impact Investment Fund scale-up with three investments in the last months

Ratings and awards – Third quarter 2013Key facts

New access to energy portableproduct awarded / Mobiya TS 120S

EventsSeptember: Sponsor of the Solar Decathlon in the US and ChinaOctober: Presence at the World Forum for a responsible economy, Lille, FranceOctober: Visit of South Africa Students in the frame of the South Africa Year in France

Schneider Electric listed in the major Sustainability Stock Indexes1st company in the "Electric and Electronic equipment " Industry in Dow Jones Sustainability IndicesContinued presence in the DJSI indices since 2002Only Major French Listed Group to be in both CDP Indexes: CPLI (A band) CDLI (97/100, +5pts vs last year)

Ranked 12th /50in the PAP50 paper policy assessment of 50 major French companies

Strategies’ Design Awards"Product Design" AwardLight Products category

Schneider Electric improves its paper management


The Planet & Society BarometerOur sustainability scorecard 2012-2014 in details

Peop

le

Safety

Engagement²

Diversity²

TrainingAccess to energyCommunities

30% reduction of the medical incident rate (MIR)70% scored in the employee engagement index30% women in the talent pool (~ 2,500 people)1 day of training for each employee every year 30,000 people at the BoP trained in energy management300 missions within the “Schneider Electric Teachers” NGO

The Planet & Society Barometer(objectives for 2014)

Overall score (out of 10)

Profit

Start01/2012

-

63%

-

3.00

Target12/2014

8/10

Prof

itPl

anet 10% CO2 savings on transportation

75% of our product revenue with Green Premium products

10% energy consumption savings

Carbon1

Prod. & Solutions

Energy

7 pts growth turnover EcoXperts above transactional growth turnover

1 million households at the Base of the Pyramid have access to energy

90% of recommended suppliers embracing ISO 26000 guidelines

3 major ethical stock market indices select Schneider Electric

300 sites recognised “Great place to work - Cool site”

Green growth

Access to Energy

Suppliers

Governance

Best practices

10%

75%

10%

-

0

0

3

0

7 pts

1,000,000

90%

3

300

--

23%-00

30%70%30%

100%30,000

300

6.38

Results Q2 2013

6.09

29%

67.3%

7.4%

-0.25 pts

514,266

12.4%

3

116

43%57%26%19%

21,86495

The arrow shows if the indicator has risen, stayed the same or fallen compared to the previous quarter. The colour shows if the indicator is above or below the objective of 8/10. 1 Except for the annual results, this indicator reports with one quarter of delay: Qn reported in Qn+1. Q1 2013 will be available at Q2.² From 2013, the measure of both the Employee Engagement Index and the number of women in the talent pool become semi-annual (Q2 and Q4).

27.2%

63.3%

7.3%

-1.47 pts

638,210

14.8%

3

157

45%57%26%33%

28,420168

Results Q3 2013


Planet

10% CO2 savings on transportation*

75% of our product revenue with Green Premium products

10% energy consumption savings

Planet Indicators ResultsQ2 2013

Targets 2014

ResultsQ3 2013

10%

75%

10%

29%

67.3%

7.4%

27.2%

63.3%

7.3%

*Except for the annual results, this indicator reports with one quarter of delay: Qn reported in Qn+1. Q1 2013 will be available at Q2.


Profit

ResultsQ4 2011

+7 pts growth revenue with EcoXperts above total growth revenue

1 million households at the Base of the Pyramid have access to energy

90% of recommended suppliers embracing ISO 26000guidelines

3 major ethical stock market indexes select Schneider Electric

300 sites recognised “Great place to work - cool site”

-0.25 pts

514,266

12.4%

3

116

7 pts

1,000,000

90%

3

300

Targets 2014

-1.47 pts

638,210

14.8%

3

157

ResultsQ2 2013

ResultsQ3 2013

Profit Indicators


People

43%

57%

26%

19%

21,864

95

30%

70%

30%

100%

30,000

300

Targets 2014

45%

57%

26%

33%

28,420

168

30% reduction of the medical incident rate (MIR)

70% scored in the “Employee Engagement Index”*

30% women in the talent pool (~ 2.500 people)*

1 day of training for each employee every year

30 000 people at the BoP trained in energy management

300 missions within the “Schneider Electric Teachers” NGO

* From 2013, the measure of both the Employee Engagement Index and the number of women in the talent pool become semi-annual (Q2 and Q4)

ResultsQ2 2013

ResultsQ3 2013

People Indicators


Focus on:Employees engagement


Employee engagement definition

Organizations with a high level of engagement do

report 22% higher productivitySource: new meta-analysis of 1.4 million employees conducted by the Gallup Organization.

Schneider Electric selected definition of employee engagement

Engagement is the of emotional and intellectual feeling that a group or organization have.

Say

Consistently speak positively about the

organization to coworkers, potential

employees, and customers

Have an intense desire to be part of the

organization

Exert extra effort and engage in behaviors that contribute to

business success

Stay Strive

http://www.gallup.com/strategicconsulting/161459/engagement-work-effect-performance-continues-tough-economic-times.aspx


Employee engagement survey@ Schneider Electric by the numbers

Our “One Voice” Survey

100% of employeessurveyed 2x a yeari.e87 000 emails sent53 000 people reached via « kiosks » on 288 production sites

2500 managers receiving a dedicated report

A constantly improvingparticipation rate since2011

62% 63%66%

2011 2012 2013

Results One Voice survey / Averagee-mails/kiosks


A journey in our employee’sengagement survey

From People Scope (2005-2009) Stakes To One Voice (2010 until now)Measure employees satisfaction • From Measure employees satisfaction to

engagement• Have a benhmark to compare our

performance with best-in-class in industry

Introduction of the Engagement Index

˃Confidentiality • Guarantee anonymity ˃Confidentiality

˃Every two years

• Be consistent with the way we measure our customer satisfaction

• Adapted to a constantly changing world and environment

• Create a culture of engagement• Enable to evaluate faster the engagement

of employees coming from acquisitions

˃ Twice a year

A HR approach˃Around a 100 questions˃Complex to analyse˃Difficulty to follow-up after the survey

by the end of 2014• An objective of 70% of Employee

engagement index• An objective of 80% of employees aware of

action plans

A managerial approach˃ 14 questions˃ Create dialogue and action plans within teams with feedback sessions

˃ Centralised results then cascaded down through leadership teams only

• Engage people at all level of the organization and communicate transparently

• Enable managers to pilot the engagementof their teams specifically

• Share action plans on our internal Social Network to encourage best practices and collaboration

˃ Simultaneous communication of results to Leadership teams and all employees˃2 500 reports sent to managers with large teams


The « One Voice » model in details14 questions for simple and easy to use answers

1. I would not hesitate to recommend Schneider Electric to a friend seeking employment2. Given the opportunity, I tell others great things about working here3. I rarely think about leaving Schneider Electric to work somewhere else4. It would take a lot to get me to leave Schneider Electric5. Schneider Electric motivates me to contribute more than is normally required to complete my work6. Schneider Electric inspires me to do my best work every day

7. My manager gives me feedback that helps me improve my performance8. My coworkers respect my thoughts and feelings9. I think that the cooperation between inter departments is going well10. I have appropriate opportunities for personal and professional growth11. I understand how my work goals relate to Schneider Electric ’s goals12. The balance between my work and personal commitments is right for me

13. How likely is it that you would recommend Schneider Electric to one of your friends as a good place to work?

14. Are you aware of action plans in your organization, linked to One Voice ?

Adhésion

Action

Employee Engagement IndexAon Hewitt model

Engagement driversChosen by Schneider Electric

RecommendationChosen by SE / same as customer satisfaction

Awareness of action plans


EmployeeEngagement index

H1 2013

57%2012

55%

% employeesaware of actionplans

W1 2013

69%2012

67%

Levers•70% of employees say they have a clear vision of the link between what is expected from them and the company’s strategy (68% in 2012)•74% of employees feel their opinion is taken into account (73% in 2012)•63% of employees think their manager give them enough feedback to improve their performance (61% in 2012)•57% of employees think their work-life balance is satisfying (56% in 2012)•53% of employees think they have enough professional support (52% in 2012)•37% of employees feel collaboration between departments is sufficient (35% in 2012)

Results and perspectives


Thank you for your attentionSee you On February 20 for annual results!

http://www.schneider-electric.com/barometer

20131107 Presentation Barometer quarter 3 2013

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Transcript of 20131107 Presentation Barometer quarter 3 2013