APC 2005 Annual Report Download - page 5
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3
We have staked out leadership positions in such forward-looking busi-
nesses as ultra terminal, increasingly reliable and efficient energy man-
agement, and automation everywhere to enhance the performance of
installations, infrastructure and machines. These activities offer very
bright prospects and already represent sales of around 5 billion over
a full year thanks to our acquisitions and our innovation strategy.
We now do 30% of our business in what we call emerging countries,
including Eastern Europe, thanks to our solid operations, leadership
positions and double-digit revenue growth. Growth of 10% in these
countries currently represents 350 million, and this will increase each
year along with our base.
We are in a virtuous circle, in which sales growth feeds through to earn-
ings growth. This is reflected in our stock price, which rose 45.2% in
2005. We owe this situation to a number of factors. First, we've taken
measures around the world to move our operations closer to customers
while balancing our costs and revenues within each currency zone.
Second, the efficiency and quality programs deployed throughout the
Company and in all areas have been a great success. Third, and most
important, our team members have stepped in and made new2’s prior-
ities and objectives their own.
At the Annual Meeting, you will recommend that
shareholders approve a new corporate governance
system for Schneider Electric.
Does this mean a change in strategy?
No. A two-tier Supervisory Board/Management Board system is the
best solution for ensuring a seamless succession and continuation of
our growth strategy. We will recommend that the members of the cur-
rent Board of Directors join the Supervisory Board, under my chair-
manship, and that Jean-Pascal Tricoire, currently Chief Operating Offi-
cer and future Chairman, and Pierre Bouchut, Executive Vice-Presi-
dent Finance and Control–Legal Affairs, be appointed to the Manage-
ment Board. Jean-Pascal has built his entire career here at Schneider
Electric and earned broad recognition and respect through his achieve-
ments. This new system will give the Company a young leadership
team that will provide new energy and have enough time for long-term
action.
Is Schneider Electric well prepared for the future?
Schneider Electric is a magnificent company with a set of unparalleled
strengths in its industry that are rarely found in a single enterprise.
These include a young, international and talented leadership team; a
highly efficient business model that allows remarkable flexibility; con-
siderable capacity for innovation; global operations to serve customers;
a demonstrated ability to grow through acquisitions; and motivated
employees. I am fully confident in our Company's ability to continue
achieving strong, profitable growth.