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One Energy ProjectAcquisition of Areva DJune 7, 2010

All forward-looking statements are Schneider Electric

management’s present expectations of future events and are

subject to a number of factors and uncertainties that could

cause actual results to differ materially from those described

in the forward-looking statements.

Disclaimer

Our group

Schneider Electric 4- Acquisition of Areva Distribution – 7 June 2010

We are the global specialist in energy management…

Energy production& transmission Energy usage

Energy Management

Making energy:• Safe• Reliable• Efficient• Productive• Green

Sales

Peoplebn*

*2009 sales


…present in diversified end markets

Buildings

Data Centers Energy &

Infrastructures

Industry

Residential

31%

Hospitals/administrations

Offices

Commercial

18%

25%

Electrical power

Oil & gas

Marine

10%

16%

Machinesconstruction

Mining, ores& metals

Water

Industrial

% of 2009 sales


One business global, innovative and responsible

Sales by geography – 2009

North America

27%Asia

Pacific21%RoW

11%

WesternEurope

35%

EasternEurope

6%

of salesin new economies

Global

of sales devoted to R&D

Innovative

Responsible• Environment• Ethics• Business• Access to energy

7,500 R&D engineersin 25 countries


A transformation turned towards growth

32 % of sales

First bricks of

offering

2004 2009

43%18%

bn bnGroup Sales (in €)

Solutions

Sales in new economies

Worldwide footprint% in low cost countries

34%27%

New step forward Areva Distribution acquisition projectemployees billion € sales*~

*Based on 2008 proforma sales


We are ideally positioned to capture the major growth opportunities of our time

• Renewable energies

• Energy efficiency• Electric vehicle charging infrastructure

• Grid automation

• BRICs to be 4 of the top 5 world economies by 2050

• 1.6 bn people have no access to energy

Smart Grid New economies (34% of sales)

Power

Industry

Buildings

IT

Our strength

Complete solutions for the smart grid

Our strength

Strong presence in new economies (44,000 employees)

CST


We are a socially responsible company committed to sustainable development

A measurable commitment•The planet & society barometer

Environment•Apply standards like RoHS, REACH, WEEE

•Eco-design• ISO14001 certification

Access to energy•Provide access to electricity for 1.6 billion people

•Train disadvantaged young people in the field of energy

•Business angel for local entrepreneurs

Ethics•Global compact of the United Nations since 2002

•Principles of responsibility signed by every employee

Business•Head of Green Grid•Sign the Clinton Climate Initiative•Partner of Alliance to Save energy

BBop

I

P

6.0 /10 Q4 2009

3.0 /10 Grade in Jan. 2009

Target 8/10 by 31 Dec 2011

An industry in transformation


Pressure on energy keeps growing

By 2030:8 billion inhabitants

60% will live in cities

+2 billion people in “energy” middle class

Today:

6 billion inhabitants

50% lives in cities

Only 2 billion has access to decent energy infrastructure


… creating a structural increase of the energy demand

Source: World Energy Outlook 2009, OECD / IEA

World primary energy demand

China and India

OECD

Rest of non-OECD


The energy dilemma is here to stay…

vsEnergy demandBy 2050Electricity by 2030

CO2 emissions to avoid dramatic climate changes by 2050

The facts The need

Source: IEA 2007

Source: IPCC 2007, figure (vs. 1990 level)

…and will bring forth an energy revolution


Energy efficiency is the key to solving the energy equation…

About 50% of CO2 reduction will come from energy efficiency

Energyefficiency

Cleaner generation

Fuel mix in buildings & industryBiofuelsCarbon capture


DistributionTransmission

Residential

Commercial

Industrial

ConsumersTransportation

Centralised Generation

Old-style power distribution: the good old Jurassic grid


Today, the electric grid is undergoing a major transformation and will be “smart”

Active Energy Efficiency: Energy visibility& means to act

2Active



Distributed Generation1

Renewable Backup

Renewable Energy Generation1

Residential

Commercial

Industrial

ConsumersIntelligent Intelligent

4 Real-timeGrid management

ElectricVehicles & Energy Storage

3

ElectricVehicleTransportation


Consumers

Renewable energy is mandatory


DistributionTransmissionTransport

Residential

Commercial

Industry

2 Active energy efficiency-Energy visibility-Energy control and optimisation

Communication and software at all levels“Smart Grid”

41 Renewable Energies

Decentralized and irregular

EnR Storage Backup

1 Renewable Energies Decentralized and irregular


Consumers

Energy efficiency will be critical to reduce CO2emissions


DistributionTransmissionTransport


4

EnR Storage Backup

Active energy efficiency /Integrated energy management=> Energy visibility=> Energy control and optimisation Residential

Commercial

Industry


Electric vehicles will reshape the way we deal with transportation and energy

Consumers




4

EnR Storage Backup

Residential

Commercial

Industry

Transport

At home In public places


Consumers



EnR Storage Backup

Residential

Commercial

Industry

Transport

Communication and software at all levels4

All the pieces of the grid will be communicating

Projected acquisition of Areva Distribution will significantly reinforce our positions in medium voltage grid automation

Acquisition of Areva T&D by Schneider Electric and Alstom


Areva Distribution business is a perfect fit to our medium voltage business

~billion sales in 2008*

~people

Areva DistributionWorld #4 in medium voltage

Geographical fit

Balanced end-markets

Technological fit and smart grid

Reinforced presence with utilities

Technology leader in primary + secondary MV distribution Enhanced smart grid capability

Excellent complementarities in new economies

We will become world leader in MV after the acquisition with combined sales of ~€4.5 bn*, 45% of which in new economies



Production Transmission Distribution Consumption

The offer by the consortium leads to the creation of two global specialists

2008 proforma sales 2008 proforma sales

€22 Bn

Alstom Power

Areva T

>€11 Bn €3.3 Bn

€20 Bn

Areva DSchneider

ElectricMV / LV

~€1.7 Bn >€10 Bn

Upstream Specialist Downstream Specialist


We maintain and develop the synergies between transmission and distribution

• Commercial agreement between Alstom and Schneider Electric to develop the current flows (<€200M)

• Common smart grid communication and software standards

• Joint R&D program on smart grid

€20 Billion€22 Billion


We create new synergies for transmission and distribution businesses

• Innovation by connectinggeneration and transmission

• €500m of transmission purchase by Alstom in 2008

• Innovation by connectingdistribution and consumption in real time

• €1bn of medium-low voltage packages in 2008

• Access to diffuse markets

• Critical size in medium voltage

€22 Billion €20 Billion

Strong capability for the smart grid


A drastic increase of turnkey project capabilities

Areva T&Dproject sales

€ 1.6 bn

HV equipments

MV equipments

Utilities Transmission & DistributionUtilities Generation

HV equipments

Alstom project sales

€ 4.5 bn

MVequipments

Turbines

Utilities Generation & Transmission

HV equipments

Alstom project sales

€ 5.8 bn

MVequipments

Turbines

Utilities Distribution, Industry, Building

Schneider Electricproject sales

€ 2.0 bn

MV equipments

Utilities Distribution, Industry, Building

Schneider Electricproject sales

€ 2.3 bn

MV equipments


A transaction fully financed with available cash

Return On Capital Employed above WACC in 2012

Schneider Electricshare (~1/3)

~ € 0.3 billion

~ € 0.8 billion

Cash impact~ € 1.1 billion

•Equity value committed to Areva

•Net financial debt at 31 Dec. 2009

€ 0.89 billion

€ 2.29 billion

Strategic intent of the acquisition for Schneider Electric


Areva Distribution business is a perfect fit to our medium voltage business

Smart grid capability

Excellent complementarities in new economies

Reinforced presence with utilities

Technological fit A technology leader in both primary and secondary distribution

Complete our demand side offers for smart grid with the supply side offers from Areva D

Balanced end markets

Geographical fit

Highly synergetic and accretive transaction

• Full synergy potential: ~ €120M/year on EBITA

• EPS accretive from 2010** Excluding one-off items


Areva Distribution: world #4 in medium voltage

~40 plants

Industrial and employee data

Operational figures for Areva Distribution are estimates subject to final adjustments

2006 2007 2008

Sales 2008 sales breakdown

MV distributionproducts

(incl. switchgears, transformers, substations)

Europe

North America

Asia-Pacific

Rest of world

Systems & services

~€1.3bn~€1.4bn

~€1.7bn*

Gridautomation

~11,000 employees



We consolidate two complementary players in medium voltage…

MV switchgears & systems

Distribution Transformers

GridAutomation

Fill the gap with

no.1

Balance global

footprint

Complementarysmart

grid offerings

Combined sales~€ 4.5 bn*

80 plants~ 18 000 employees

~45% in new economies

Extensive marketcoverage

Operational figures for Areva Distribution are subject to final adjustments



…with geographical fit in key markets and exceptional presence in new economies

Strong complementarities in new economies

Areva DSchneider Electric MV

ChinaIndiaBrazilRussiaMiddle East

Further reinforceour footprint in New Economies

Promising market trends in new economies

Industrial sites in new economiesAreva D (~20) + SE (~20) = ~40

Electrification and equipment needs

> 80% of global market growth in next ten years New economies ~43% ~47%

% of MV sales

Operational figures for Areva Distribution are subject to final adjustments


… as well as important complementarities of customer bases and technologies

Strong complementarities in technologiesStrong fit of customer bases

Areva DSchneider Electric MV

Electrical utilitiesElectro-intensive*IndustriesBuildings

Wider range of technologies Wider range of end-users

MV switchgearSchneider Electric stronger in secondary MVAreva D stronger in primary MV

Transformers Complementary footprint

Grid automation

Areva D substation automationcomplements Schneider Electricoffers in smart grid

* Notably Oil & Gas customers, Mining Metal & Minerals


Active

3 • Carbon trading• Energy efficiency• Micro network management

Consumers

Distributed Generation2

RenewableOn-siteStorage

BackupPower

IntelligentMetering& DemandResponse

4



5

Renewable Energy Generation1

Intelligent IntelligentTransport

Residential

Commercial

Industrial

Areva Distribution completes our smart grid capability

Areva D

Areva D

Areva D


Summary

Strong presence in fast growing new economies

Strong industrial rationale

Schneider Electric accelerates its development

in energy management

A perfect fit to our medium voltage business

A move supporting our solution approach to utilities and electro-intensive customers

Creation of a new businessEnergy


Energy: a new business with proforma sales of ~€4.5bn and ~18,000 employees

Key market segments

Key product lines

• Utilities• Oil and gas

Areva D~€1.7 bn*

IT

Power

(MV +LV )

Buildings

IT

Power

Industry

Buildings

Energy

6 Businesses

critical power & cooling

LV Power

Industrial automation

Buildingautomation& security

MVdistribution

IS&C

Grid Automation

• Retail• Hotels• Hospitals• Offices

• Data centers• Bank / Insurance

• Residential• Marine

5 Businesses

~€4.5 bn*

Industry• OEMs • Water• Mining

CST CST*Based on 2008 proforma sales


Energy is a 6th Businesses with dual accountability

IT

Power

Industry

Buildings

• Datacentres• Bank / Insurance

• Residential• Marine

• OEM• Water• Mining

• Retail• Hotel• Hospitals• Offices

•Critical Power & Cooling

• Low Voltage• Installation Systems & Control• Renewable

•Industrial Automation & Control

•Building Automation•Security

Transactional Business Models Solutions Business Models

6 Businesses

Product Lines End User Segments

Energy • Utilities• Oil & Gas

• Medium Voltage• Transformers• Grid automation

CST

Help people make the most of their energy

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