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Business, Innovation & People at the Base of the Pyramid

Business, Innovation & People at the Base of the Pyramid. Lighting Africa Conference 18-20 May 2010 Gilles Vermot Desroches Senior VP, Sustainable Development. Agenda. Schneider Electric at a glance. Schneider Electric & access to energy: BipBop. Focus on Lighting solutions.

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Business, Innovation & People at the Base of the Pyramid

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  1. Business, Innovation & Peopleat the Base of the Pyramid Lighting Africa Conference 18-20 May 2010 Gilles Vermot Desroches Senior VP, Sustainable Development

  2. Agenda Schneider Electric at a glance Schneider Electric & access to energy: BipBop Focus on Lighting solutions The outlook in Africa

  3. Schneider Electric at a glance The global specialist in Energy management Billion global sales in 2009 (in€) • Making energy: • Safe • Reliable • Efficient • Productive • Green 34% of sales in new economiesx2 compared to 2004 Covering World final energy consumption people in 100+ countries Energy production & transmission Energy usage Sales devoted to R&D Years of history through innovation and leading brands A Recognised Sustainable commitment

  4. Schneider Electric in Africa* 2,000people in 15+ countries 14regional offices 6factories 6logistics centres Power Technics Ltd: Our partner in Kenya *non consolidated all SE entities and subdisdiaries – based on estimates

  5. 2 billion people worldwideforced to rely ontraditional biomass sources due to the lack of clean and safe cooking fuels 1.5 billion peopleare heavily impacted by lack of access to electricitySource: IEA/OECD World Energy outlook 2009

  6. BipBop programme: promoting development through combined initiatives BusinessBuild an investment fund to support the creation of companies dedicated to electrical business for the Base of the Pyramid InnovationBuild adequate offers/solutions to be a champion in the electrical distribution field for the Base of the Pyramid PeopleTrain young people from the Base of the Pyramid in electrical skills and sponsor them

  7. B I Bop P BipBop objectives and achievements 2009 125 260,000 2,150 From 01/2009 to 12/2011 objectives Business500 contractorsat the base of the pyramid* set up their activities in the electricity sector Innovation1Mhouseholds from BoP equipped with adequate energy offers/solutions by 2011 People 10,000young people from the base of the pyramid trained in energy skills http://barometer.schneider-electric.com

  8. Focus onBusinessA dedicated “impact” investment fund:Schneider Electric Energy Access - SEEA Creation: July 2009 Current size: € 3.5M • Schneider Electric: €3M • Schneider Energie Sicav Solidaire: 500K€ Targeted size:10M€ Return objective: 5% In France: Euribor + 100 Internationally: 5 à10% Investment time: 5 - 7 years Promotethedevelopment of businessthat provide energy access in rural or suburban areas Supportthedeployment ofinnovative energy access solutionsthat use renewable energies for the Base of the Pyramid Supportthecreation of companiesdedicated to electrical business by unemployed people International France

  9. Focus onPeopleworldwide overview & categories • Training segmentation • Access level • India, Cambodia, China, Cameroon • Official diploma • Chile, Brazil, South Africa, Colombia, Tanzania, Algeria, China, Turkey, Cameroon • Train the trainers • Brazil, Algeria • Coming soon • Morocco, Kazakhstan, Yemen, Vietnam, Italy, … part of a global BipBop projectlocal project coming soonmaybe

  10. Focus on InnovationSchneider Electric covers access to energy needs Individual lighting systems Other projects to come via SEEA In-Diya basic version Solar Home Systems (SHS) In-Diya upper different versions Micro-grid solutions MICST collaborative project Innovative solar micro-grid engine Madagascar Jirano project Electrification of a 200 household village Pre-payment solutions

  11. Focus onLighting solution for the Bop

  12. Light output better than 11 watts CFL. Light output 600 Lumens 630 Lumens Luminous Efficiency 50 Lumens/Watt 140 Lumens/Watt Highly energy efficient Life (in hrs) 6,000 50,000 More than 20 years of life Operating Voltage AC, 90-270 VoltsDC, 12 Volt Not affected by low voltage problem in India AC,170-250 Volts Innovation: In-Diya can illuminate a room better than 11 watt CFL and provide back up for 8 Hrs Benefits 11 Watt 4.5/5.5 Watt Back-up Can give 8 Hrs back-up with 5 Ah battery No back up 8 Hrs

  13. Innovation: Helping incremental scalabilityof electric installation in BOP household Solar Home Solution Need Battery Rental Grid connection Two Lights + 1 Fan + 1 TV Not Feasible Two Lights + 1 Fan Not Feasible Two Lights One Light

  14. Business model adapted to local realities Channel partners Urban Existing Distributors and their retail network PUSH Asia Pacific and their retail network Retail Chains Big Bazzar, E Zone APC DistributionChannel Rural Existing Rural Retail Network ( IOCL) PULL Partnership with MFI, NGOs, Kerosene Dealer Network Partnership with trained electricians

  15. 2009 • >300 • Trained • All have a job • Employees • Entrepreneurs • 2012 • 4,000 people trained People: electricity trainings for young people from rural areas Delhi Patna Bihar Bhubaneswar Orissa Brahmapur Hyderabad Vishakhapatnam Vijayawada Bangalore Andhra Pradesh Chennai Madurai Karnataka Tirunelveli Tamilnadu Kanyakumari Training centers opened during 2009 Training centers to be opened during 2010

  16. Supply chain supported by local people Household customers Battery charging Station Managed by trained electrician Transport of batteries Delivery of battery to the customer by entrepreneur Business customer

  17. Focus onAfrican outlook

  18. In Africa, relying on our presence and experiments to develop BipBop eco-system Conlog Pre-payment solution leader for more than 20 years 4 million systems installed 200,000 new households connected/year Water of the Sun, Senegal (pilot), 2010 Integrated installation to automate water pumping via a solar system and adapted variable speed drive Benefits: no battery, no separated elements, sustainable and massive time saving for village people Partners: Caritas, ESIGELEC of Rouen - Electric Engineer School, ESP of Dakar – Polytechnic Engineer School Jirano project, Madagascar, 2009 Off- grid solar facility for 120 inhabitants based on Schneider Electric know-how. Benefits: Residents education program to maintain the facility, 1,400W peak power generation, 490W current usage, 12 new jobs created. Partners: Ambatovy, Orange, Conlog by Schneider Electric, Trainings, In progress:Tanzania To come: Morocco, Algeria, Cameroon, South Africa

  19. 2010/2011, becoming an active player to deliver solutions for « Lighting Africa » Efficient lighting and Solar home systems deployment: In-Diya Micro-grid solutions replication: Madagascar, Senegal Training people to develop technical and commercial skills Achieve more while paying less, For a sustainable development of BoP African people

  20. Thank you and you are welcome on our booth Gold contributor of Lighting Africa Conference 2010 For more information schneider-electric.com schneider-electric.com/bipbop sdreport.schneider-electric.com facebook.com/SE.bipbop

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