APC 2002 Annual Report Download - page 55

Business review
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f. Environment and development
Waste recovery at the Sumaré plant
The Sumaré plant in Brazil manufactures medium and low
voltage products. Certified ISO 14001, it entrusts an aid
association for families of mentally handicapped persons to
recycle all its paper, cardboard, plastic, glass and metal waste.
The association recovers the reusable value from this waste,
which is used to assist some 20 families.
Prepayment
Schneider Electric develops innovative products that facilitate
our water and energy distributor customers’ commitment to
provide low-income families access to water and electricity.
The operators can better control their distribution thanks to the
prepayment meters from Schneider Electric’s Conlog
subsidiary in South Africa. Without these meters, thousands of
homes in poor neighborhoods would not be connected to the
distribution grid.
On a broader scale, Schneider Electric invests in international
reconstruction projects financed by international organizations
(World Bank, Inter-American Development Bank, US AID,
European banks, etc.). The Company recently participated in
Kosovo and Albania with comprehensive rural electrification
and distribution projects, including renovation of existing
installations.
2003 objectives
Implement the principles of responsibility
The principles of responsibility will be substantially deployed
throughout the Company. Each new employee will commit to
respect these principles in their employment contract. For all
employees, the principles of responsibility will be specifically
addressed during their annual performance review.
Sustainable development week at Schneider Electric
The sustainable development week from June 2 to 8, 2003 will
be a great opportunity to increase some of our stakeholders’
awareness and increase our commitments. In particular, the
week will be an opportunity to engage employees around local
commitments to disadvantaged youth as well as around the
inaugural session of the world committee of stakeholders.
Progress report
Publication of the first progress report on the Company’s
Sustainable Development policy in 2003 will be an opportunity
to communicate on Schneider Electric’s continuous
improvement commitments and initiatives.
8 - Outlook for 2003
The global economy is characterized by an unprecedented
lack of visibility, making any real recovery unlikely before the
end of 2003. Even though corporate capital spending and
non-residential construction trends appear to have stabilized at
a low level in developed countries, no noticeable sign of
improvement has been identified during the first quarter of
2003.
In this context, Schneider Electric’s objective is to favor
organic growth and it plans to:
capitalize on its experience to develop high value added
solutions that meet growing customer expectations;
combine its skills in dedicated structures intended to
improve targeting of promising business segments;
continue to encourage innovation by maintaining high
investment in R&D as well as developing technical
partnerships.
These actions will be complemented by pursuing a selective
acquisition policy with the objective of increasing the
Company’s positions in consumer final low voltage, industrial
and building automation, safe power supply and
comprehensive manufacturing performance and power grid
management services. These acquisitions will help expand
Schneider Electric’s markets.
The Company intends to leverage its outstanding geographic
coverage, the quality of its products and the characteristics of
its business model to confront the uncertain market conditions
in 2003. Schneider Electric will intensify its actions to improve
gross margins, adapt its manufacturing operations and reduce
its base costs as a means of continuing to improve its
profitability. Its strong cash flow and solid balance sheet
constitute unquestionable strengths in the implementation of
this strategy.