APC 2004 Annual Report Download - page 61

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59
Business Review
Outlook for 2005
Assuming current economic conditions, Schneider
Electric is targeting organic sales growth of 5%-6%
in 2005 and an increase of around 10% in operat-
ing income under IFRS.
On January 13, 2005, the Company announced its
new Company program, called new2. The four-
year program is designed to:
Continue leveraging the NEW2004 efficiency plans
to reduce production and base costs, enhance pro-
ductivity, re-balance costs and sales and speed time
to market for new products that meet market needs.
Drive the Company's indispensable transformation
with action plans focused on growth, efficiency and
people.
We have set ambitious targets for 2005-2008 to speed
organic growth, improve operating margin, enhance
return on capital employed and increase total share-
holder return.
We will also pursue our targeted acquisitions policy to
bring in less cyclical activities that fit strategically with
our core Electrical Distribution and Automation &
Control businesses and provide high growth potential.
Activities such as building automation and security,
energy management, secured power, services, sen-
sors and other specialized automation devices are
allowing us to double our accessible markets from
100 billion to 200 billion.
Geographically, our two top priorities are North
America and Asia.
We intend to enhance our presence in North America,
which already accounts for more than 20% of sales.
Schneider Electric has substantial managerial capac-
ity in this region, the world's leading economic power.
Asia is both a major market in which we enjoy very
solid positions and a region rich in resources for R&D,
sourcing and advanced technology –particularly in
China, India and Japan.
5
Dow Jones
www.sustainability-index.com
After being selected for the first time in 2002,
Schneider Electric was included in 2005 in the Dow
Jones Sustainability Index World and the Dow Jones
Sustainability Index Stoxx (for Europe).
This family of indices bases its decisions on research
provided by Sustainable Asset Management (SAM),
an independent asset manager headquartered in
Switzerland.
Sustainability Scores
Total Score
0% 50% 100%
Industry Average on a Global Basis
Schneider Electric SA
Best Company on a Global Basis within Industry Group
Economic Dimension
0% 50% 100%
Environmental Dimension
0% 50% 100%
Social Dimension
0% 50% 100%
> For further information, go to:
www.schneider-electric.com
Group, Sustainable Development
> The sustainable development report and
French social report may be ordered online from:
fr-developpement-durable@schneider-electric.com
or by mail from:
Schneider Electric SAS
Direction développement durable
89 boulevard Franklin Roosevelt
92500 Rueil-Malmaison (France)