APC 2003 Annual Report Download - page 12

2. Operations
Schneider Electric is one of the world’s leading man-
ufacturers of equipment for Electrical Distribution and
Automation & Control, with operations in 130 coun-
tries, 177 production sites, 150 service centers and
some 13,000 sales outlets through its distributors. In
2003, the Company generated total sales of € 8,780
million with an average weighted workforce of 74,276
employees.
As the world’s Power & Control specialist, Schneider
Electric is involved in all stages of the electrical trans-
mission and distribution process, offering products,
equipment and services to control, monitor, protect
and supervise machines and installations in industry,
infrastructure, and industrial, commercial and resi-
dential buildings.
Operations are divided into three operating divisions:
Europe, North America and International.
Schneider Electric primarily operates under the
Merlin Gerin, Square D and Telemecanique brand
names, as well as some 50 other specialized brands
in specific niches and regions. These brands’ high
global recognition and excellent reputations are a
critical strength for the Company. Square D is
extremely well-known in the United States, where it
generates most of its sales, while Telemecanique
and Merlin Gerin are flagship brands in France and
the rest of Europe. The portfolio has been extended
with strong local brands, notably in ultra terminal
electrical distribution.
3. Strengths
Significant specialization
Schneider Electric is the only company worldwide
focused exclusively on Electrical Distribution and
Automation & Control. This specialist profile has
allowed us to win market share and penetrate new
markets around the globe. The Company ranks
among the world leaders in low voltage switchgear
and equipment and industrial control and holds fore-
front positions in medium voltage and programmable
logic controllers.
Schneider Electric offers a broad, consistent lineup
of smart, networked products and systems of high
quality that are both innovative and competitive.
These solutions are designed to make life easier and
optimize business practices for partners such as
contractors, electricians, systems integrators and
panelbuilders.
As part of its constant focus on enhancing operating
excellence, performance and customer satisfaction,
the Company has initiated a number of programs,
including Six Sigma, Lean Manufacturing and Quality
& Value Analysis. It has also integrated Internet /
intranet technologies in operations to reduce costs,
speed execution and empower individual team mem-
bers, as well as to be even closer to customers.
Solid reputation
Merlin Gerin, Telemecanique and Square D, with
their strong reputations for quality and safety, are
among the most powerful brands in their markets.
Because using electricity always carries some risk,
we have put together a high quality lineup that has
won over a wide array of loyal customers around the
world. We have successfully leveraged this reputa-
tion to attract new customers, sell considerable vol-
umes (including replacement products) and develop
a broad range of innovative products, equipment and
services for consumers worldwide.
Growth potential
Based on a vast study to assess the power and con-
trol needs of end users in our core markets (Residen-
tial, Buildings, Industry, Energy & Infrastructure), we
estimate our potential market at around € 200 billion.
We have seen high demand for increasingly intelli-
gent products that can communicate with each other
or be operated remotely via the Internet.
Strong partnerships
Schneider Electric serves customers through part-
ners who devise solutions from its products, systems
and services. These partners provide substantial,
strategically related value and extend and amplify
our marketing and technical resources. We market a
significant percentage of our products through dis-
tributors to reach a broader customer base. We have
close partnerships with large international distribu-
tors, as well as with local distributors, wholesalers
and non-specialized retailers.
Global presence
Schneider Electric has operations worldwide to sup-
port its increasingly international business. We bene-
fit from a strong presence in most of our main mar-
kets. In continental China, for example, we have
expanded rapidly from sales of € 91 million in 1995
to € 559 in 2003.
This global coverage allows us to serve multi-nation-
al companies who require product platforms that can
be deployed anywhere in the world, seize market
opportunities as they arise and maximize our sales,
and reduce our exposure to economic cycles in our
local markets.
Business Presentation
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