Chapter 1 – Group strategy and sustainability www.se.com 57 Life Is On | Schneider Electric 1. Strategic Report Leveraging a global network of over 650,000 service providers and partners We strive to be the most partner-friendly company in our industry. A significant share of Group revenues is managed through intermediary partners, with their own added value. This network enables us to extend our segment coverage and have a strong connection to local markets. We are increasingly focusing on digital interaction with our partner ecosystem, thanks to the Partner Portals and Schneider Electric Exchange. Distributors and retailers : Our main distribution partners are electrical distributors, specialists in IT, telecom and data center applications, DIY retailers, online marketplaces, e-tailers, and specialist technical distributors for automation and industrial software solutions, access control, and security products. Distribution now represents approximately 45% of total Group turnover. We lead the eCommerce transformation in our industry, seeing a strong acceleration in 2021 with eCommerce growing 23% year on year. Over the last 4 years, we have doubled our eCommerce penetration and we now have presence in more than 800 channel partners’ webshops. We continue to digitally equip our customers and channel partners with more web-based trainings, enhanced product content, and digital tools for design, selection, configuration, and customer support. Panel builders : Collaboration with panel builders, who build and sell electrical distribution or control/monitoring switchboards, helps bring to market our innovative solutions and provide end-users the solutions for a more digital and more electric world. Panel builders buy low and medium- voltage devices and act as specialists, or connected power system experts, who manage and maintain electrical assets after installation and throughout their entire operational lifetime. Contractors : To design solutions tailored to end-users’ specific needs, we work closely with contractors, small specialists or generalist electricians, and large companies that specialize in installation equipment and systems. We provide training and support and leverage our multichannel partner model, which is increasingly digital, via the Partner Portal and Exchange platforms. System integrators : System integrators design, integrate, and support automation to meet their customers’ needs for the performance, reliability, precision, and efficiency of their operations. We give system integrators access to all areas of automation from field control to Manufacturing Execution Systems and Building Automation Systems. Specifiers/consulting engineers : To meet their customers’ specific demands, specialist engineers, architects, and design firms are prescribing more efficient and integrated energy management solutions, specifically for critical power, security, and building automation. As our essential partners, we collaborate and provide application-focused design information and tools. Electricians : We have one of the most comprehensive networks of electricians worldwide. We enable electricians to operate more efficiently through training, technical support, and digital tools, such as My Schneider Electric app, where over 400,000 electricians are registered. Our relationship with electricians is strengthened by increasing their visibility to end- users through different tools, including online “installer locators”. Original equipment manufacturers (OEMs) : We work with more than 15,000 OEMs to improve machine performance and reduce time-to-market for packaging, conveyor, material handling, hoisting, and Heating, Ventilation, and Air Conditioning (HVAC) applications, providing tools and software such as EcoStruxure ™ Automation Expert. We nurture strong OEM partnerships through programs to enhance their capacity to deliver internationally.