APC 2003 Annual Report Download - page 16

12 - Services. The lineup is being rapidly expanded,
particularly in online services. Schneider Electric
supports customers for the entire life of installed
products and equipment by providing high value-
added services such as on-line training and assis-
tance, remote diagnostics, technical support, and on
or off-site maintenance and management contracts.
We also help them evaluate and optimize their ener-
gy consumption and offer networked and on-site
management services for spare parts, as well as
inventory and quality control management.
6. Markets
In response to changing demand, we have decided
to adjust our approach to provide a more compre-
hensive service to customers. This end-to-end
approach that takes local characteristics into account
is designed to meet all of our customers’ related
needs in four core markets: Residential, Buildings,
Industry and Energy & Infrastructure.
Commercial and industrial and residential Buildings
are our biggest market, representing some 51% of
sales in 2003. This market covers our entire lineup
for electrical distribution, management and optimiza-
tion, as well as networks for transmitting data in
homes, apartment buildings, offices, hotels, hospi-
tals, shopping centers, and sports and cultural cen-
ters. Renovation and retrofitting account for around
50% of demand.
The Company offers building owners, contractors,
systems integrators, electricians, panelbuilders and
distributors a broad range of products and services
covering all aspects of electrical distribution, includ-
ing low voltage equipment, medium voltage distribu-
tion equipment, building management and safety
systems, control, monitoring and automation equip-
ment, and wiring and connection systems for Voice-
Data-Image (VDI) technology. Our customers work
exclusively or primarily in local markets.
Our most attractive growth opportunities lie in home
renovation in Europe and the United States and in
large complexes in Eastern Europe, Asia, Latin
America and other developing economies.
Commercial buildings (notably heating, air condition-
ing and lighting systems), building control and relat-
ed services are another growth avenue.
Commercial and industrial buildings account for
more than 40% of our business. In 2003, we
strengthened our position in the commercial seg-
ment with the acquisition of TAC, a global leader in
building automation systems. These solutions allow
our customers to control such key functions as heat-
ing, air conditioning, lighting and access control.
The addition of TAC also gives us a position in ser-
vices, a key area in which it serves substantial cus-
tomer demand.
Thanks to our front-ranked positions in low and medi-
um voltage electrical distribution, VDI infrastructure
and now building automation, we offer one of the
broadest lineups in the market to meet constantly ris-
ing demand for enhanced building performance and
optimization.
Our systems are designed to help architects, electri-
cians, panelbuilders, contractors, HVAC specialists,
systems integrators and engineering firms devise the
best solutions for our customers’ applications and
provide the most effective service.
The Residential market is a strategic priority. With
the acquisition of Clipsal, Schneider Electric now
ranks second worldwide in ultra terminal distribution,
a fast-growing area that offers significant develop-
ment potential. Covering both single-family homes
and apartment buildings, this is essentially a local
market with different opportunities depending on the
region. In developed countries, renovation and home
improvement often represent nearly two-thirds of the
market, which is driven by demand for comfort, safe-
ty and well-being. In developing countries, on the
other hand, we are targeting newbuilding, with a par-
ticular focus on large housing programs in certain
Asian countries (notably China) and Eastern Europe.
We primarily serve the Residential market with stan-
dard ultra terminal products such as switches, sock-
ets and wiring; electrical protection equipment; and,
increasingly, home automation applications to control
lighting, heating, doors, gates, shutters and safety
systems. Demand is also growing strongly for net-
works to accommodate VDI, computer, TV, music
and other applications.
Our growth depends on the development of strong
brands and appropriate access channels, particular-
ly when it comes to promoting our lineup to con-
sumers. To achieve this goal, we work with electri-
cians, distributors and DIY superstores.
We had opportunities to deploy these approaches in
several countries in 2003. The acquisition of Clipsal,
the world leader in British Standard ultra terminal
solutions, was a major event that enhanced our posi-
tions and significant growth potential in the Asia-
Pacific region while extending our catalog with high-
quality products and systems. The Clipsal brand is
internationally recognized in the residential market.
The Industry market, accounted for around 32% of
sales in 2003. We offer companies in a large number
of sectors a wide range of products, equipment and
services to distribute and manage electricity, control
and monitor machines, automate industrial process-
es, and supervise and manage industrial sites and
their consumption.
Business Presentation
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