APC 1998 Annual Report Download

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W e do more with el
Schneider Electric SA
Annual Report
We do more with electricity.

Table of contents

  • Page 1
    Schneider Electric SA Annual Report W e do do more more with with electricity. el We

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  • Page 3
    ... in the same corporate family, we have changed our name to Schneider Electric . Our C ompany is totally focused on its two highly complementary core businesses, and this new name more clearly expresses our identity as a world leader in the electrical industry. me to d our na change ic ution, er...

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    In 1998, serving our customers 130 countries around the world, S chneider Electric's 61,000 team members achieved sales of FF 50 billion in in electrical distribution, industrial control and automation and generated a 22% increase in net income to FF 2.7 billion. (in euros) Sales Net income ...

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    ... of innovation Local manufacturing 27 29 31 33 35 Meeting your needs, day after day Construction Industrial production Electric power Infrastructure 37 Schneider Electric worldwide 39 Schneider in Europe 41 Schneider in North America 43 Schneider in Asia, Latin America, Africa, Middle East and...

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    ... key development has been Schneider 2000, a strategic C ompany-wide program that has enabled us to foster competitive growth in our units across the world. We have done this by improving our skills, aiming for total customer satisfaction, motivating our people and creating teams with a sense of co...

  • Page 10
    ... of the Board coincides with Groupe Schneider's name change to Schneider Electric. Does this signal a change in strategic direction? Q uite the opposite. O ur new name and logo mark the completion of a vital process: Schneider's strategic refocusing on electricity. T his task was achieved under the...

  • Page 11
    ...to acquire healthy companies that will enhance our product offer and increase our market share in our two core businesses. > Scheider 2000 is now called Schneider 2000+: why the plus sign? T he initial purpose of Schneider 2000 was to help us move ahead, become more productive, and set our sights...

  • Page 12
    ... Director Henri Hottinguer Managing Partner of Hottinguer & Cie Zurich Robert Jeanteur Corporate Director Gérard de La Martinière Executive Vice-President, Holding Companies and Corporate Functions, of Groupe Axa Didier Pineau-Valencienne Vice-Chairman of Credit Suisse First Boston David de Pury...

  • Page 13
    ... Legal Affairs Massimo Spada Information Systems Geographic Zones Pierre-Yves Ansiau United Kingdom Michel Bartenieff Southeast Asia Jacques Billiard Africa and Caribbean Middle East and India South Korea - Japan Jean-Marc Claisse South America Philippe Crolet Africa and Caribbean Harry Hellawell...

  • Page 14
    ... customers Schneider Electric has built a solid reputation on product excellence, which is one key source of customer satisfaction. But the speed of new product development, the quality of our service, and the commitment of our people are just as decisive. In 1998, we set up help desks in the United...

  • Page 15
    ...addition, the Leadership project helps managers improve their own skills so that they can lead and manage change. An incentive plan that is consistent with shareholder interests has been developed. We have enhanced our stock option program, based on return on capital employed; set up an annual bonus...

  • Page 16
    Schneider Electric in 1998 Innovating in our core businesses-electrical distribution and industrial control and automation--to ensure sustained growth and create value for our customers, shareholders, and employees.

  • Page 17
    ... companies that offer a good strategic fit. This is a carefully planned, long- term approach that enables us to seize opportunities and build lasting solutions. Schneider Electric has achieved a healthy balance in its global operations and sales to industries with different cyclical patterns. Today...

  • Page 18
    ... index Share (in euros) 70 --- Trading Volume (number of shares) --- 800,000 60 --- 51.68 50 --- --- 600,000 50.60 49.82 --- 400,000 40 --- 30 --- 36.57 --- 200,000 25.69 2/1/96 31/12/96 â- Share price in euro â- Schneider share â- CAC 40 index (base: Schneider Electric share price on...

  • Page 19
    ... 1.15 7.54 A commitment to building closer relations with shareholders Minitel 3615 CLIFF Letter to shareholders: two issues a year Schneider shareholders' guide: 4 th edition Internet www.schneider-electric.com Find out all about Schneider Electric's news, financial performance, etc., and check...

  • Page 20
    ... in operating income: up 12.6% between up 56% between 95 (FF billion) * Pro forma restated for Spie Batignolles 1997 and 1998 1995 and 1998 96 97 98 48 % 29 % Very low indebtedness: 12 % 7% FF 1.6 billion FF 7.8 billion in 1998 in 1995 95 96 97 98 Debt-to-equity ratio ( Net debt...

  • Page 21
    19 Fina nc ia l highlight s 1998 sales by Geographic Zone: 19 % France 31 % Europe the balanced geographic spread of our sales is a source of stability. 20 % Rest of world 30 % North America 0.4 bn 2.7 2.2 1.4* 0.8* Substantial growth in net income: up 21.9% between up 328% between 95 96 97 ...

  • Page 22
    ... automation Schneider Electric is one of the few global suppliers with an offering that meets all international standards requirements, notably IEC (Europe) and NEM A (North America). Work rank 1998 Sales Electrical distribution Supplying electricity with complete safety--from the power plant to...

  • Page 23
    ... protection and control: contactors, from 6 to 2,750 A, overload relays, motor circuit breakers. Speed drives: soft starters and variable speed drives for AC and DC motors. Human-machine interface: pushbuttons, indicator lights, operating terminals, and safety accessories. Machine equipment: sensors...

  • Page 24
    ... of circuit breakers and switches for electrical distribution combines safety, uninterrupted service, ease of operation, and compact size. Launch: November 1998. Merlin Gerin Digipact, for managing electricity in commercial and residential buildings. Dedicated to electrical distribution control...

  • Page 25
    ... customers want to simplify the link between automation, manufacturing and business (ERP) systems. With the Transparent Factory program, the future architecture of industrial automation systems, Schneider Electric has anticipated this growing demand by using open communication standards and software...

  • Page 26
    ... motor circuit breakers for the global market. The facility--one of our 44 manufacturing units in France--employs 490 people and operates seven days a week. In Carros, 400 team members are involved in producing programmable logic controllers. North America The Asheville, North Carolina plant...

  • Page 27
    ...We have 15 manufacturing units on- line in Asia. In China, seven jointventure plants in Beijing, Tianjin, Shanghai and Guangzhou are dedicated to the production of industrial control components and equipment for medium and low voltage electrical distribution. In Batam (Indonesia), Schneider has been...

  • Page 28
    Meeting your needs, day after day Performance, safety, and ease of use-a chain of skills to ensure total customer satisfaction.

  • Page 29
    ... to customers, systems integrators, and product users. > e-mail) to keep distributors continuously informed about product availability and technical data. Everywhere we operate, we have set up solid partnerships to provide customers with the service they expect. Together, Schneider Electric and...

  • Page 30
    .... Our customers are building owners, prime contractors, systems integration engineers, panelbuilders, electrical contractors, and electrical equipment distributors. We offer a complete lineup of Merlin Gerin and Square D low voltage equipment (circuit breakers, enclosures and cabinets, prefabricated...

  • Page 31
    ... controls all the building equipment and processes incoming data from detection devices. â- Your personal safety is also guaranteed by the new generation ID' clic circuit breakers with earth leakage protection, designed to protect people in the hom e. Question Schneider Electric doesn't make tow...

  • Page 32
    ... customers can count on individualized service, from automation architecture and engineering advice to network design, international support for OEMs, operator training, maintenance contracts, software subscriptions, installation audits, equipment diagnostics, and more. Schneider Electric equipment...

  • Page 33
    ... guests, glasses in hand, are crow ding around the buffet. 2 Demonstration Question Did you know that Schneider Electric contributed to the quality of the beverages you're serving? â- Telemecanique Osiris sensors receive a wide range of data on the production line: speed, bottle count, filling...

  • Page 34
    ... generation, transmission and distribution of high, medium, and low voltage power. The hallmark of the Schneider Electric offering is flexibility. It's reflected in our technology, process engineering (from the supply of basic components to turnkey projects), services and customer support. Outlook...

  • Page 35
    ... control of traf fic lights, street and parking lot lights, electrical road signs, spotlights on buildings, etc. -- in other w ords, your city's lights. In addition to equipm ent used in generating, transm itting, and distributing electricity, Schneider Electric supplies grid super vision system...

  • Page 36
    ...availability. We also provide our partners with a complete range of customized services such as power grid design assistance, safety and availability studies, implementation monitoring, operator training, remote network administration, on-site technical support, and more. Outlook The infrastructure...

  • Page 37
    ... is also controlled by Schneider Electric. Question Without Schneider Electric, w ould you have had such a smooth trip? 1 Explanation When you got to the airport, you left your car in the parking lot and made your way to check- in. The illuminated board told you the boarding gate. A jetway took...

  • Page 38
    Schneider Electric worldwide A balanced international presence and multicultural diversity: two strengths for making the most of global market opportunities.

  • Page 39
    ...enhance and leverage our skills networks, thereby optimizing costs. In the field, these changes have driven a steady increase in the number of hot lines and help desks. These services give customers direct access to all the resources they need for solving whatever type of problem they may encounter.

  • Page 40
    ..., we will have finished the total renovation of our circuit breaker manufacturing facility in Bulgaria. A new plant for medium voltage products has opened in Leeds (UK), and the Pisek facility in the Czech Republic is now operational. Acquisitions Acquisitions provided us with many opportunities to...

  • Page 41
    ... Groupe 63," was assembled in partnership with Schneider Electric. We supplied a number of automation products, including speed drives, programmable logic controllers, industrial control systems, and operator control panels, as well as related services. The manufacturing constraints were challenging...

  • Page 42
    ... employees, 33 production facilities, and a substantial sales network with 2,500 distributors across the continent. T hese strengths and the confidence they generate have won Schneider a strong position in residential construction, commercial and industrial buildings, automated process control, the...

  • Page 43
    ... that our companies together now can concentrate on product design and application, new standards and processes that lower overall costs and improve efficiencies." Canada: Toronto H ydro and H ydro Quebec Schneider supplied the equipment for Toronto Hydro's transformer substation in Agincourt...

  • Page 44
    ... name of Toshiba Schneider Electric Ltd. The unit will develop, manufacture, sell, and support low voltage products for the Japanese electrical distribution and industrial control markets. Asian crisis By maintaining strict control over investment commitments in Southeast Asia, Schneider Electric...

  • Page 45
    ... outside Kuala Lumpur. The airport has been in operation since July 1998. The customer selected Schneider to supply the low and medium voltage equipment for this important project, which required 450 project teams and 25,000 people. The Schneider package included power circuit breakers, contactors...