APC 2006 Annual Report Download - page 18

Description of the company and its businesses
In 1999, the Group acquired Lexel, Europe's second
largest supplier of installation systems and control.
This was followed in 2000 with the acquisitions of
Crouzet Automatismes, a French leader in electronic
control, small automation devices and custom sen-
sors, and Positec, a European leader in motion control.
In 2000, Schneider Electric created a 60-40 joint
venture with Toshiba called Schneider Toshiba Inverter
(STI) to develop, manufacture and market both part-
ners’ industrial speed drives. STI now leads the global
industrial speed drive market. That same year, the
Group launched the Schneider Electric Ventures fund
with a capital of 50 million to acquire interests in inno-
vative start-ups with technologies that can enhance
the lineup.
 In 2001 Schneider Electric deployed its first three-year
company program, NEW2004. The Group acquired
installation systems and control leader Legrand, but
the European Commission vetoed the merger. As a
result, Schneider Electric had to sell its interest in
Legrand even though the Court of First Instance of the
European Communities overruled the Commission’s
decisions on October 22, 2002.
2002-2006: an assertive
strategy of global growth through
targeted acquisitions
Since 2002, Schneider Electric has pursued an
assertive strategy of organic growth and acquisitions
to enhance its geographic coverage, strengthen its
core business, broaden its lineup through the addition
of synergistic activities and expand its potential acces-
sible markets.
The Group has also confirmed its commitment to cor-
porate social responsibility by creating a Sustainable
Development Department in 2002 and setting up a
quarterly Planet & Society Barometer in 2005 to track
and report on its performance in this area.
This strategy has produced significant advances in the
Group’s core businesses.
Electrical Distribution
Installation systems and control
Schneider Electric now ranks second worldwide in
installation systems and control thanks to the acquisi-
tions of Clipsal, the Asia-Pacific market leader, in
2003; Juno Lighting, America’s leading manufacturer
of trac and recessed lighting, in 2005; and Clipsal Asia,
Merten (Germany), OVA Bargellini (Italy), AEM SA
(Spain) and GET (UK), in 2006.
Energy efficiency
In 2005, Schneider Electric acquired Canada’s Power
Measurement Inc., a leader in metering systems, soft-
ware and services for managing energy supply and
consumption.
Critical power and cooling services
In 2004, Schneider Electric became the European
leader in critical power with the acquisition of MGE
UPS Systems in France. In October 2006, it made a
friendly offer to purchase all outstanding shares of
American Power Conversion (APC), the global market
leader. The transaction, which was approved by com-
petition authorities and by APC’s shareholders, was
finalized on February 14, 2007.
Automation & Control
Automation and industrial control
Schneider Electric gained world leadership positions in
human-machine interface (HMI) with the 2002 acquisi-
tion of Digital Electronics Corporation in Japan, and in
automation solutions for packaging machines with the
2005 acquisition of Elau AG in Germany.
In 2006, it expanded its lineup of high power speed
drives with the acquisition of Austria’s VA TECH ELIN
EBG Elektronik. The Group also broadened its indus-
trial automation portfolio with the acquisition of Citect,
an Australian manufacturer of Supervision Control and
Data Acquisition (SCADA) solutions and Manufactur-
ing Execution Systems (MES).
Custom sensors
The Group offers the most comprehensive lineup of
custom sensors in the market after bringing in Hyde
Park Electronics, the North American leader in ultra-
sonic sensors, in 2003; Kavlico and Dinel, manufactur-
ers of sensing and optoelectronics devices, in 2004;
and US-based BEI Technologies, in 2005.
Building automation
The Group is a major player in this market. In 2003, it
acquired Sweden’s TAC, which was joined in 2004 by
Tour Andover Control and Abacus Engineered Sys-
tems in the US. ABS (Advanced Buildings Systems)
EMEA, which operates in Europe and the Middle East,
came on board in 2005, followed by IBS (US and Asia)
in 2006.
2. An ambitious strategy
of profitable growth
Demand for electricity is expected to double between
now and 2030, according to the International Energy
Agency. At the same time, automation is expanding
everywhere and in all areas, from cars to industrial and
commercial buildings to homes. Meeting this very
strong demand, supporting business performance
while saving energy, helping enhance the quality of life
in developed nations and emerging markets and man-
aging the environmental impact of growth are the
major challenges here–as well as major opportunities
for Schneider Electric.
As the world leader in electrical distribution and
automation and control, Schneider Electric intends to
harness customer satisfaction to drive growth and
profitability. In doing this, it will help customers use
electricity safely, make installations more energy effi-
cient, ensure a secure power supply for critical appli-
cations, manage indoor environment and communica-
tion networks in buildings, consume less and more
effectively and facilitate the development of renewable
energies.
This ambitious strategy of profitable growth is driven by
three key priorities.
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