APC 2005 Annual Report Download - page 54

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A new Services Department
We are committed to providing customers with
increasingly effective solutions for energy savings and
efficiency and installation performance, notably con-
cerning uninterrupted operation of critical applications.
More than 5,000 Schneider Electric team members
are involved in installed base support services and
high performance services, which represented rev-
enue of around 900 million in 2005, up 14% from the
year before.
A new Services Department was set up at the corpo-
rate level in 2005 to speed growth in this area.
Accelerate innovation and time to market
The productivity of our R&D teams, who work in
close cooperation with marketing to meet customer
expectations, was reflected in the introduction of sev-
eral innovative products during the year. Highlights
included:
Electrical Distribution
In protection, medium voltage Evolis 24 kV vacuum
circuit breakers are the first to include a monitoring
module that guarantees long-term performance and
facilitates integration and operation.
In energy savings, the latest-generation Lubio system
for public lighting management includes a predictive
maintenance function. Lubio already cuts electricity
consumption by 30% by adjusting lighting levels to
local needs. Now, it can help users optimize street
lamp and lighting maintenance, as well as mainte-
nance team work schedules.
In ultra terminal distribution, a new modular Voice-
Data-Image distribution system lets users take full
advantage of the functionalities offered by new com-
munication networks.
In installation safety, MGE UPS’s Comex EX RT unin-
terruptible power supply solution delivers the best
availability in the market in the most compact format.
MGE UPS also offers the Protection Center, the first
3-in-1 UPS/lightning arrester/multiple socket device.
Automation & Control
In variable speed drives, the new generation Teleme-
canique Altivar 71 and 61 provide high performance in
an environmentally friendly package. Particularly well-
suited to automation solutions, these drives stand out
for their broad range of power ratings and advanced
functionalities. What’s more, they are 88% recyclable,
which is 18% better than mandated by European reg-
ulations. In sensors, the new Telemecanique Osisonic
ultrasound sensors pack a maximum amount of tech-
nology into an ultra-compact casing. Osisonic detects
materials, colors and shapes.
New services
Our innovative Energy Performance Guarantee
enhances building energy efficiency, using the savings
to finance the necessary investment. As its name indi-
cates, the solution is backed by a performance guar-
antee. In deploying this service, we are drawing on
TAC’s experience in more than 200 performance guar-
antee contracts in the US and Scandinavia.
A global R&D base
Innovation is a powerful growth driver at Schneider
Electric. Our new Electropole global R&D center is the
world’s largest in power protection and control. With
more than 1,000 team members, Electropole is based
in Grenoble, France, home to worldclass R&D in ener-
gy and nanotechnologies. Schneider Electric is lead-
ing programs focused on smart energy management
applications.
A pioneering technological showcase, Electropole is
equipped with an innovative "plenum box" electrical
distribution system in which power protection and con-
trol and VDI are packed into a ceiling-mounted mod-
ule in each office, putting power and control functions
right where they are used.
We are continuing to deploy R&D capacity in emerg-
ing markets–with centers in Shanghai, China, Banga-
lore, India, and Monterrey, Mexico– while ensuring a
strong presence in high technology countries like the
US, Germany, France and Japan.
Efficiency
Rebalancing, globalizing and optimizing
Schneider Electric has initiated more than 700 proj-
ects to rebalance and optimize purchasing, as well as
our manufacturing base and supply chain to spur
growth and competitiveness.
In 2005, we pursued our strategy to rebalance costs
and revenues within each currency zone by closing
eight plants in Europe and the United States. At the
same time, we stepped up measures to increase pro-
ductivity in all countries to offset higher raw material,
transportation and energy costs. These measures are
part of our Manufacturing Excellence program, which
comprises Lean Manufacturing, Quality & Value
Analysis and Six Sigma quality control.
We also moved faster to globalize purchasing and
rationalize our supply chain. As part of this strategy,
we opened our largest distribution center in the world
in Hong Kong. With an annual capacity of 30,000 met-
ric tons, the center offers customers in the Asia-Pacif-
ic region the best service at the lowest cost.
Concerning IT, we started to deploy a uniform system
with worldclass processes shared by all units.
During the year, we took advantage of favorable mar-
ket conditions to optimize our debt maturity and
finance acquisitions. Our two-tranche 1.5 billion
bond issue, maturing in five and twelve years respec-
tively, was very well received, reflecting investor confi-
dence in the quality of our performance and outlook.