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41
Business Review
Business Review
1
2004 highlights
In 2004, Schneider Electric stepped up the develop-
ment strategy outlined in its NEW2004 program
based on growth and efficiency.
Growth
The Group pursued an aggressive growth strategy in
2004, with a focus on innovation and differentiation. Our
objectives were to innovate and develop new growth
platforms, enhance our positions in the Residential
market and Services, broaden and differentiate the
lineup and expand our geographic coverage.
Growth through targeted acquisitions
Schneider Electric has moved assertively into new
growth platforms by making high-quality, targeted
acquisitions in Building Automation and Security,
Secured Power, Ultra Terminal distribution in the Asia-
Pacific region and a number of specialized automation
competencies. These new members of our corporate
community represented 1.3 billion in additional sales
over the full year and an average operating margin of
around 13%. They have expanded our available mar-
ket by around 50% from 80 billion to 120 billion.
During the year, we strengthened our position as a
major player in the global market for building automa-
tion and security and energy management solutions
by merging TAC and Andover Controls. Together,
these companies represented full-year sales of 470
million and 2,700 employees. We also enhanced our
presence in the Asia-Pacific region and moved into
the number 2 spot worldwide in ultra terminal distri-
bution with the acquisition of Clipsal. Other growth
areas included secured power, with MGE UPS
Systems, and increasingly intelligent sensors for
repetitive machines, with Kavlico and Dinel.
These new activities offer significant growth opportu-
nities in mature markets and development potential in
the emerging economies.
Organic growth
Thanks to its sustained R&D commitment, Schneider
Electric renewed several product families in 2004 and
broadened its lineup to meet market demand more
effectively. Highlights included:
Electrical Distribution
a) Merlin Gerin Prisma Plus, a comprehensive set of
ready-to-use, high-performance solutions for low volt-
age switchboards up to 4,000 A in commercial and
industrial buildings. Designed to adapt to specific
practices and standards in different countries, Prisma
Plus meets all safety requirements for protecting peo-
ple and equipment. The range is esthetically pleasing,
robust and environmentally friendly.
b) New Merlin Gerin electrical distribution products
for residential, commercial and industrial buildings.
With the Guiding System, Merlin Gerin offers a new
approach to low and medium voltage distribution.
The System comprises a full range of modular,
autonomous components designed to work together
and offering mechanical and electrical compatibility,
inter-operability, and communication capabilities. As a
result, electrical installations are optimized and more
efficient, from design to deployment.
c) The Lubio energy savings system for public lighting.
Lubio reduces energy consumption by making the
most of non-peak periods and shifting to lower volt-
ages. It also provides operating, diagnostics and
maintenance support, notably through metering.
d) New dedicated ranges in ultra terminal distribution,
building safety and voice-data-image systems.
Automation & Control
a) Unity, an entirely updated family of automation soft-
ware. Combined with the new Telemecanique Modicon
Quantum, Premium and Atrium PLCs, Unity creates a
work environment focused on productivity. It is the first
platform in the market that integrates the most recent
Microsoft technologies, web technologies and cutting-
edge control and monitoring technologies to simultane-
ously meet the needs of project, batch and continuous
processes. Systems integrators, OEMs and final users
can link Unity's software to other software used in their
processes or different life-cycle phases, thereby
enhancing their productivity significantly.
b) New Telemecanique PLC ranges for the Industry
market. Featuring even more embedded intelligence,
these products are easy to implement and open to
common communication standards.They are increas-
ingly ingenious, intelligent and easy to use, or as
Telemecanique puts it, "Simply Smart". Key launches
in 2003-2004 included the TeSys U motor starters,
Twido programmable modules for small automation
devices and Global Detection sensors.