APC 2003 Annual Report Download - page 14

Our joint venture with Thomson Multimedia, for
example, is involved in developing Power Line
Carrier (PLC) technologies to transmit digital data
over electrical wires. We also have an agreement
with Toshiba that gives us access to the traditionally
closed Japanese market and makes us the world
leader in speed drives.We intend to pursue this strat-
egy of joint ventures, partnerships and alliances to
extend our lineup and enter new markets.
Focus on targeted acquisitions
Schneider Electric makes selective acquisitions to
penetrate new markets, expand its lineup and devel-
op synergies with its existing product portfolio. The
acquisition of Lexel, for example, strengthened our
position in the ultra terminal segment and opened
the door to the fast-growing Voice-Data-Image mar-
ket. The acquisition of Crouzet, a French leader in
electronic control and small automation devices, and
of Germany’s Berger Lahr (formerly Positec), a
European leader in motion control, allowed us to
expand our automation lineup.
In 2002, we acquired a 98.7% interest in Japan’s
Digital Electronics Corporation, the world leader in
human-machine interface products such as industri-
al PCs and graphic and touch terminals. With this
acquisition, we have gained a foothold in a new fast-
growing market segment and improved our access to
OEMs, notably in Japan.
In 2003, we made three major acquisitions: TAC,
Clipsal and MGE UPS Systems. The addition of TAC
makes Schneider Electric a major player in the glob-
al building automation market, which represents sig-
nificant growth potential in light of its size, profile and
strategic fit with our existing positions in the buildings
market. The addition of Clipsal, a leading British
Standard brand in fast-growing Asian markets,
strengthens our presence in ultra terminal distribu-
tion in the Asia-Pacific region. Lastly, the addition of
MGE UPS Systems gives us access to the secured
power market, which is shaped by the rising need for
clean power and tighter control over energy costs.
MGE UPS Systems is a world leader in uninterrupt-
ible power supply systems, which lie at the center of
the secured power market.
Combine a global vision
and local deployment
As we pursue a comprehensive strategy of achieving
rapid growth and developing our lineup, we also
intend to strengthen our local skills in sales, market-
ing and management. This way, local teams can
make the necessary decisions to select the best
partners and enter into important contracts in keep-
ing with the Company’s profitability targets, while
ensuring customer satisfaction and product and ser-
vice safety. Although products for the international
market represent some 40% of our sales, we will
continue to differentiate the rest of our lineup to meet
local specifications and standards.
Improve our competitiveness
One of the objectives of our NEW2004 program,
launched in 2002, is to enhance competitiveness by
shortening time to market, globalizing sourcing and
continuously improving quality.
Strengthen our products’ image
We are committed to strengthening the image and
brand awareness of our products to differentiate our-
selves even more clearly from our rivals.
5. Products,
equipment and services
Our lineup of products and equipment covers all
stages of electrical transmission and distribution, as
well as automation and control.
The portfolio breaks down into five broad categories:
■Catalog products, such as contactors and minia-
ture circuit breakers, that do not need to be adapted
to specific requirements.
■Customized products, which are assembled from
core catalog components to suit each customer’s
needs.
■Systems, such as busbar trunking used for electri-
cal transmission and distribution in ceilings and
raised floors. These systems are built from groups of
products offering similar functions.
■Equipment, such as medium voltage substations
and low voltage switchboards, that combines a set of
related products with different functions in a single
enclosure or casing.
■Projects, such as designing and implementing an
electrical distribution network for a commercial or
industrial building. Projects require the deployment of
a comprehensive, customized set of products, sys-
tems and/or equipment.
We also offer and develop three types of services:
■Traditional services that support our products (war-
ranties, after-sales service, training, on-line assis-
tance and maintenance). The scope of these services
varies depending on the market access channel.
■More sophisticated services concerning the tech-
nical side of our offer, such as retrofits, capacity
extension, upgrading, etc.
■High value-added services to enhance the perfor-
mance of industrial installations and power grids.
Business Presentation
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