APC 2010 Annual Report Download - page 35

DESCRIPTION OFTHEGROUP, ANDITSSTRATEGY, MARKETS ANDBUSINESSES
1
INNOVATION AND R&D: SERVINGGROWTH
3. 5 A new source of partnerships and innovation
By studying emerging markets and technological trends, Schneider
Electric is able to identify potential growth and innovation
opportunities at a very early stage. In 2000 Schneider Electric
created a fund called Schneider Electric Ventures to invest in
high-tech start-ups whose innovations fi t with the Group’s future
development. Focus areas include energy, communication,
automation and the use of advanced materials and electronics. The
fund constitutes a source of particularly productive partnerships
and has forges contacts with more than a thousand small and mid-
sized businesses around the world each year.
In 2010, Schneider Electric and Alstom joined forces to launch a
new venture capital fund called Aster Capital to fi nance innovative
start-ups in the fi elds of energy and environment. The fund is based
in Paris and has received capital subscription of EUR70 million,
from Schneider Electric (EUR40million) and Alstom (EUR30million).
Other industrial partners may be invited to join this initiative to
create the European benchmark fund specialising in energy and
environment.
Aster Capital benefi ts from the venture capital expertise acquired
by the Schneider Electric Ventures team. The mission of Aster
Capital is to take minority interests in innovative start-ups based in
Europe, North America and Asia, developing new technologies that
could lead to major breakthroughs in the fi elds of energy and the
environment. The fund made its fi rst investment in 2010, while two
investments were sold by Schneider Electric Ventures, generating a
signifi cant return.
Optiréno – Investment made in November2010
Optiréno was launched in October 2009 as a subsidiary of
Saint-Gobain, and operates in residential renovation via a holistic
approach encompassing diagnostics, consultancy and project
management. The company’s services are aimed at customers who
want to improve the energy effi ciency of their home, and include
management of every aspect of the project, including fi nancing.
Optiréno offers Schneider Electric opportunities in terms of a
distribution channel for sales of Duoline, which strengthens its
position on the residential renovation market and helps detect new
trends. An exclusive sales contract was signed in May2010.
Aster Capital provided an initial loan to Optiréno of between
EUR500,000 to EUR1million in November2010.
Sale of CPower inSeptember2010
The company CPower was sold for USD80million to Constellation
Energy, an energy supplier based in Baltimore, Maryland.
This US company designs demand-response programs aimed at
eliminating peaks in electricity demand. With the support of key
partners such as Schneider Electric, the company has become one
of the three biggest players in the USA.
This disposal generated a signifi cant return on investment for
Aster Capital, and its success in North America is testament to its
investment abilities.
2010 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 33