APC 2011 Annual Report Download - page 31

292011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
DESCRIPTION OFTHEGROUP, ANDITSSTRATEGY, MARKETS ANDBUSINESSES
1
R&D STRATEGY
Diversified partnerships
In addition to its innovation and R&D initiatives, Schneider Electric
pursues an active R&D partnership policy with universities and
prestigious institutions, notably Shanghai Jiao Tong University in
China; the MIT Media Lab and Georgia Tech in the United States;
the CEA (Alternative Energies and Atomic Energy Commission),
INRIA (National Institute for IT and Automation Research), École
des Mines ParisTech, Institut National Polytechnique de Grenoble
and Université Joseph Fourier in France; and Monterrey Institute of
Technology in Mexico.
The Group is also involved in numerous collaborative projects
with academic and industrial partners in France and the
rest of Europe, notably in the areas of energy effi ciency and
environmentalprotection.
These partnerships are also made by bilateral agreements or
support for chairs, notably the Chair in Modelling for Sustainable
Development with ParisTech, the Chair in Bioplastics with the
CEMEF Mines ParisTech.
Efficient processes
The design of complex products and solutions requires perfect
control of all the tools and methods that have become extremely
complex, from mechatronics to software. Schneider Electric
therefore relentlessly invests in these design processes, methods
and tools for greater reliability and speed within projects.
Spectacular results were obtained by systemising the simulation
at initial stages of the design and now products are mechanically,
electrically and thermally simulated before the fi rst prototype is
constructed. This approach is progressively being extended to
complete systems.
As far as software is concerned, iterative development is becoming
the norm. This means customers can comment on the increasing
complete versions of a product. Compared to the classic approach,
these methods reduce development delays by a factor of two or
three and produce products of a much higher quality. For example,
the latest version of the energy monitoring solution integrated in
StruxureWare was developed three times quicker and with a team
of half the size of the previous version.
Finally, the industrialisation processes are accelerated and made
more reliable by developing standards for the latest components
at a Group level. In addition to the purchasing savings of tens
ofmillions of euros, this programme allowed Schneider Electric to
weather Japan’s fi nancial crisis with a limited impact on its delivery.
3.5 A 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 an investment structure called Schneider Electric Ventures
to invest in high-tech startups whose innovations fi t with the Group’s
future development. Focus areas include energy, communication,
automation and the use of advanced materials and electronics. This
investment vehicle 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 Ventures became Aster Capital Partners
with the launch of a new capital investment fund to fi nance innovative
startups operating in the areas of energy and the environment. The
fund is based in Paris and has received capital subscription of
EUR85million from Schneider Electric (EUR40million) and Alstom
(EUR30million), joined in 2011 by Solvay-Rhodia (EUR15million).
Other industrial or fi nancial 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 capital investment expertise acquired
by the Schneider Electric Ventures team which has since been
strengthened by the appointed experts from Alstom and Solvay-
Rhodia. The mission of Aster Capital is to take minority interests
in innovative startups based in Europe, Israel, North America
and Asia, developing new technologies that could lead to major
breakthroughs in the fi elds of energy and the environment. There
were two new investments in 2011.
Ioxus– Investment made in April2011
The American company Ioxus specialises in the production of
ultracapacitors which are used notably in the hybrid buses and
start-stop car engines. These high power density products have
the advantage of capturing and releasing energy in a few seconds
with a quicker recharge time than lithium-ion batteries, providing
nearly 20,000 charging cycles.
Ultracapacitors are less bulky than traditional batteries and can be
used for a wide range of applications: hybrid vehicles, wind turbines,
UPS, machine tools,etc. More generally, Ioxus products form high
added value elements within the domain of energy storage and
solution optimisation, a fast-growing market that could reach nearly
1,000million dollars in 2015.
Aster Capital invested USD3 million in Ioxus, supported by the
interest in UPS and Energy Metering divisions for products under
development.
Avantium– Investment made in June2011
The expertise of the Dutch company Avantium lies in transforming
biomass into biopolymers (designed under the name Furanics) used
as base elements for generating bioplastics or bio-fuels. The YXY
technology developed by the company allowed them, for example,
to develop a PEF plastic bottle from products of 100% plant origin
in partnership with The Coca-Cola Company to replace the current
PET plastic made from petroleum with competitive performance