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Schneider Electric 1999
Get more with the world’s Power &Control specialist
1999
The year in review

Table of contents

  • Page 1
    Schneider Electric 1999 1999 T he year in review Get more with the world's Power & Control specialist

  • Page 2

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    1999 Profile Schneider Electric serves customers in with more than 130 150 150 countries production facilities, service centers sales outlets. and 9,000 O ur 67,500 8.4 team members generated sales of billion euros in 1999 of which was outside of F rance) (82% in electrical distribution, ...

  • Page 4
    ... the Schneider 2000+ program, we're ahead of schedule on our targets for reducing base costs and improving our operating margin. Today, we develop products twice as fast as three years ago. M ost important, everyone at Schneider Electric is now fully customer oriented. T he customer is and will...

  • Page 5
    ... family of products and services. We must also explore the potential created by new information and communication technologies in smart buildings and homes and latestgeneration automated factories. M eanwhile, the deregulation of electricity markets is opening opportunities all over the world...

  • Page 6
    ...*, 65 Director of Air Products & Chemicals Inc. Henri Hottinguer*, 65 Managing Partner of Hottinguer & Cie Zurich Robert Jeanteur, 68 Corporate Director Henri Lachmann, 61 Chairman and Chief Executive Officer Jean-Paul Jacamon, 52 Vice-Chairman and Chief Operating Officer Claude Bébéar, 64...

  • Page 7
    ... than France. As recommended in the Viénot report, the Board of D irectors of Schneider Electric SA regularly reviews the way that it is organized and operates. Changes in Board membership in 2000 At the Annual M eeting, shareholders will be asked to elect a number of new D irectors. Jean G andois...

  • Page 8
    ... Affairs Rune Johansson Central and Eastern Europe - CIS Jean-Pascal Tricoire Schneider 2000+ Jean-M arie Bastin Sarel - Himel Guy Lemarchand Jean-M arie Trollé Purchasing Benelux, Switzerland and Austria Jean-Claude Leblond Schneider Electric High Voltage Daniel Victoir Information Systems...

  • Page 9
    ... Vice-President, International Division 7. Chris Richardson Executive Vice-President, North American Division 4. Antoine Giscard d'Estaing Executive Vice-President, Finance and Control 8. Jean-Paul Saas Executive Vice-President, Activities and Technologies 5. Jean-Claude Perrin Executive...

  • Page 10
    Schneider Electric 1999

  • Page 11
    ... and four specialist brands 32 Innovation to support growth 36 Global reach 36 Some of our production facilities 40 Success stories in electrical distribution, industrial control and automation Schneider Electric interactive Schneider Electric in real time Get to know us Want to know more...

  • Page 12
    ... of a deep change that will gradually affect all our operations. Schneider Electric now offers a continuously updated global electronic catalog containing a broad range of information and services, including specifications, promotional offers, product launches, technical support and e-services. 10

  • Page 13
    ... circuit breakers and medium voltage overload relays in Europe and N orth America. In the automation market, we brought out new PLC software, interface terminals and adjustable speed drives. A total of twelve product families will be upgraded in 2000, representing 20% of Schneider Electric's sales...

  • Page 14
    .... Schneider Electric has responded by reorganizing its product marketing to offer tailored solutions for targeted markets. T his approach, already introduced for the construction market, is a very important growth lever. Organic growth was also strong outside Europe in 1999. In C hina, sales have...

  • Page 15
    ... and cable trays. It also makes security and safety systems, intelligent building control systems and installation accessories. Lexel recorded sales of FF 3.7 billion in 1999. The company has 5,700 employees in 18 European countries, where it operates through 40 sales units and 26 production centers...

  • Page 16
    ... We also continuously analyze information collected from our call centers. Another source of data is the customer forum, organized as a face-to-face or telephone interview of a customer panel in a different country each month. Lastly, to build privileged ties between our top management and our large...

  • Page 17
    ... the world, we have set up extranet sites to provide distributors with online technical support. In France, for example, the official distributors' extranet known as XD O offers an online catalog, technical information, and selection guides. Opened in 1999, XD O is now used by some one hundred sales...

  • Page 18
    ... puts the customer at the center of everything we do. " What do companies expect from a partner like Schneider Electric? Whatever their business, the priorities are similar: safety, quality, sustainability, skills sharing, and added value. Two of our international customers explain the situation...

  • Page 19
    ... Electric employees, distributors, and customers to access a wealth of information, particularly for tracking inventories and orders. One-third of our N orth American distributors now use E-Way daily. In 1999, the network processed some $100 million-worth of orders. A customer-focused enterprise...

  • Page 20
    ... in 1999, including H armony pushbuttons (which upgrades one of Schneider Electric's core offerings), M asterpact circuit breakers and TeSys motor starters. One of the products developed using the Product Development Process is Blokset, a new global range of low voltage panelboards. Designed for...

  • Page 21
    ...a critical issue. Schneider Electric is developing an increasing number of forums for exchanging best practices, including several in-house think tanks. Some enable C ountry Organization sales managers to share sales methods, while others focus on innovation or on the development of new services. In...

  • Page 22
    ... responsibility, autonomy, and project-based operations. In 1999, Schneider Electric continued to internationalize its resources around the world. T his global strategy seeks to build up local competencies and to transfer decision making from expatriate to local managers. T he C ompany also stresses...

  • Page 23
    ...participated in renovating a welfare center in Egypt, assisting earthquake victims in Turkey and Taiwan and flood victims in Venezuela, and supporting youth education programs in Brazil, South Africa, and Europe. It is also a partner to France's national employment office. T he driving spirit behind...

  • Page 24
    ... Electric, 1999 was an excellent year. Our teams' deep commitment to the S chneider 2000+ growth and profitability objectives led to a significant improvement in performance during the year. Efforts to reduce base costs and further increase industrial productivity considerably widened our operating...

  • Page 25
    ... consolidation of Lexel. Spain and Portugal, and C entral Europe recorded strong growth again in 1999. North America: 30% (EUR 2.6 bn) Supported by the strong residential construction market, sales rose 12.7%, or 6.6% at constant scope of consolidation and exchange rates. International: 17% (EUR...

  • Page 26
    ... * Pro forma restated for Spie Batignolles Operating margin by geographic division (%) 14.9 13.7 12.8 11.6 13.2 13.8 7.7 6.0 98 99 98 99 98 99 98 99 Europe (excl. France) France North America International Operating margin by business (%) 13.1 11.8 10.0 11.5 Electrical distribution...

  • Page 27
    ...96* 97 98 99 * Pro forma restated for Spie Batignolles Workforce by geographic division Total workforce: 67,500 employees Europe 18,700 employees North America France 18,900 employees 22,000 employees International Want to know more? www.schneider-electric.com 7,900 employees Financial...

  • Page 28
    ... with high profitability, Schneider Electric will create more wealth for shareholders, customers and employees. Our 1999 performance reflects our team members' commitment to this strategy. During the years, the share price rose 51%. Thanks to our good financial results, the proposed divdende is...

  • Page 29
    ... shares in 1999 (used for calculating earnings per share) 148,758,848 Shareholder information Shareholders' letter (four per year) Shareholders' guide (fifth edition) Schneider Electric at the Actionaria fair (Paris) Find out more about Schneider Electric, its latest news and its financial results...

  • Page 30
    ...plem entary core businesses The synergy between our international brands-Merlin Gerin, Modicon, Square D and Telemecanique-is unique. More than ever, this synergy allows us to provide customers with the broadbased expertise of the World's Power & Control Specialist. Want to know more? www.schneider...

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    Two complementary core businesses Electric Companies Residential Building

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    Commercial Building

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    Schneider Electric's solutions â- â- â- â- Transform, distribute and manage electric power Monitor and control machines Automate industrial processes Supervise and manage industrial or commercial sites Industry Two complementary core businesses 29

  • Page 34
    ..., power and custom transformers, etc. Compact HV circuit breaker Power substation Medium voltage switchgear and equipment (1 to 52kV): switches, fuses, circuit breakers, contactors, transformers, overhead switchgear, indoor and outdoor substations, etc. Medium and low voltage network management...

  • Page 35
    ...to 2,750A, overload relays and motor circuit breakers, soft starters and speed drives, sensors, detectors and photoelectric cells, control and signaling units, operating terminals, safety modules, supply systems, interfaces, relays, cabinets, assembly and wiring accessories, etc. Programmable logic...

  • Page 36
    ... programs to integrate electronic technologies, embedded software and networks and to prepare e-business applications. To give just a few examples of Schneider Electric's continuous innovation, we are using new polymer plastics to improve efficiency, enhance design and facilitate product recycling...

  • Page 37
    ... industrial partners, is conducting research on ultra-high-efficiency polymer-film batteries, fuel cells and related regulation systems. In the area of services, we are testing Internet-based remote support on several user sites. Merlin Gerin Sepam 1000+ This new generation of power-grid protection...

  • Page 38
    ... components in open architectures based on Ethernet and Internet protocols, allows users and systems integrators to leverage new information technologies to lower system installation and operating costs. Square D/ Telemecanique Harmony This new range of control and signaling units comprises...

  • Page 39
    ... including food processing, textiles, wood, paper, cosmetics and pharmaceuticals, as well as of commercial and office buildings. Square D/ Telemecanique TeSys The new TeSys family enhances the entire set of "all-or-nothing" motor-starter applications up to 75kW and strengthens Telemecanique's world...

  • Page 40
    ... Shanghai Low Voltage Terminal Apparatus, which specializes in the manufacture of miniature earth-leakage protection circuit breakers. In 2000, a new 7,500 m 2 site will handle the production of a new range of miniature circuit-breakers in T ianjin. T he T ianjin M erlin G erin plant employs 600...

  • Page 41
    ... Fluair 400 cubicles. T he Riyadh plant delivers Schneider Electric products to Saudi Arabia and to other Arabian Peninsula markets. T he site has been ISO 9002 certified since 1996 and is a reference for major customers such as SC EC O, electrical utilities and Aramco, one of the largest companies...

  • Page 42
    ... voltage distribution equipment and Square D and Telemecanique control equipment. T he site also houses a distribution center and the subsidiary's head office. All the Schneider Electric production sites in M exico and the distribution center are ISO-certified. Confidence in the quality of products...

  • Page 43
    ... protection, speed drives and motor starters, enclosures and equipment accessories. T he plants are certified to ISO 9002 and ISO 14001 standards. T he Pacy Isambard plant, with 370 employees, manufactures multifunctional power control and protection products such as Series D overload relays, Series...

  • Page 44
    ..., these new products take up less floor space, offer improved safety and performance, and help M cD onald's streamline the design of its restaurants. An international account management team based in the United States provides well coordinated service. 3 France Mistral luxury cruise ship 3 T he...

  • Page 45
    ... to modernize its Puerto M adryn production plant. One contract concerns the supply of the electrical equipment that is necessary to upgrade 400 tanks in the plant's electrolysis section and implement the technical management functions using D EC Alpha calculators. T he other contract, as part...

  • Page 46
    ... energy as the previously used "wet" process. To manage this complex process on a widely spread - out site, Lafarge selected M odicon/Telemecanique Quantum programmable logic controllers with a M odbus+ network, C oncept software, and Square D model 6 motor starters fitted with LT 6 relays. T his...

  • Page 47
    ..., the Library of Alexandria was once the most important cultural center of its time. Within the scope of the current library renovation program, partly financed by UN ESC O, Schneider Electric has supplied all of the electrical distribution equipment for the avant-garde building that will house the...

  • Page 48
    ... Charlesworth), Studio Pons Photo Alstom (Chantiers de l'Atlantique), Ray Reiss (McDonald's), Rick Altman (Courtesy Transfied-Obayashi Joint Venture) Schneider Electric photo library Creative supervisor: Gérard Guerre Design: Printel - Laurent Borderie ; Printing: Printel - Paris Tel.: +33 (0)1 42...

  • Page 49
    ... us CD-Rom: Applications and Services News Get to know us Look at our solutions Working at Schneider Electric The experts' place Financial panorama A brief look at Schneider Electric 160 years of history Worldclass skills in four markets Expertise in online services Success stories Testimonials

  • Page 50
    Schneider Electric SA Headquarters: 43-45, boulevard Franklin-Roosevelt F-92500 Rueil-Malmaison (France) Tel: +33 (0) 1 41 29 70 00 Fax: +33 (0) 1 41 29 71 00 Internet : http://www.schneider-electric.com A Société Anonyme incorporated in France with issued capital of euros 1 291 388 624 542 048 ...