APC 2006 Annual Report Download - page 22

These architectures are designed in the Group’s 60
application centers around the world. Specialized by
industry and application, these centers leverage their
in-depth understanding of business processes and
needs to guide customers to the best solution.
To facilitate installation management and optimize per-
formance, Schneider Electric was one of the first to
take advantage of the Internet’s efficiency and ease of
use. Thanks to embedded web servers, operators can
check data from PLCs at any time. With an ordinary
web browser, users can manage their installations in
real time from any location, program and monitor
equipment, and optimize energy consumption and pre-
ventive maintenance. In buildings, these solutions can
be used to manage all interior environment and safety
systems via a local network. The Group is continuing
to broaden its lineup with open, standard systems that
are easy to install and use.
Electrical distribution
Number 1 worldwide in low voltage
Number 2 worldwide in medium voltage
Number 2 worldwide in installation systems
and control
Number 2 worldwide in critical power
Schneider Electric’s electrical distribution lineup
ensures a safe, reliable, uninterrupted and effective
supply of electric power. Historically the market leader
in low and medium voltage, the Group had no pres-
ence in installation systems and control just ten years
ago. It now ranks second worldwide, thanks to organic
growth and acquisitions.
The Group has also made deep inroads into the high-
ly promising critical power market, where it now ranks
first worldwide following the acquisition of the global
leader, American Power Conversion. The acquisition
was finalized on February 14, 2007.
Medium voltage
The products in this category, rated from 1 kV to 52 kV,
are generally used to transform and manage high volt-
age electricity from the distribution grid. The medium
voltage power is then sent directly to end users in
industrial buildings and large commercial installations
or transformed into low voltage power for small com-
mercial buildings and homes.
Low voltage and
installation systems and control
This category includes wiring products, low voltage
equipment, and installation systems and control used
in industrial and commercial buildings and homes.
The Group has many rivals, but who are often limited
in their scope. The competition breaks down into four
broad categories:
Large non-specialist manufacturers with diversified
business bases, such as ABB, General Electric, Mit-
subishi Electric and Siemens.
 Multinational specialist manufacturers, such as Omron
and Rockwell Automation.
Medium-sized companies–primarily in electrical dis-
tribution–with a more regional presence, including
Eaton, Hager and Legrand.
Smaller local companies such as Gewiss in Italy,
Simon in Spain, Vacon in Sweden, Stick in Germany
and STI in the US.
The only player who complies
with all national and international
standards
Schneider Electric is the only player in its industry that
complies with all prevailing standards around the
world. The majority of its lineup complies with world-
recognized International Electrotechnical Commission
(IEC) standards. In North America, Group products
generally meet standards set by the National Electrical
Manufacturers Association (NEMA), Underwriters Lab-
oratory (UL) or American National Standards Institute
(ANSI). Products in the UK, Australia and Asia comply
with British Standards, while those in China and Japan
meet the China Compulsory Certification (CCC) and
Japan Industrial Standard (JIS).
Since Schneider Electric’s products comply with the
dominant standards in its host markets, the Group is
able to meet most all of its customers’ needs.
Integrated, intelligent,
networked solutions
In both electrical distribution and automation, cus-
tomers increasingly want a comprehensive solution to
their needs. In response, Schneider Electric has devel-
oped end-to-end offerings by market segment, backed
by a wide range of services. This is the idea behind the
Group’s "Recommended Architectures" which com-
bine different products from the lineup to meet specif-
ic customer requirements. Examples include critical
power architectures for hospital operating rooms, opti-
mized automation and control architectures for
machines, and electrical distribution/VDI architectures
for office buildings.
Emerging markets*
31 %
2006 consolidated
revenue by region
n Europe
n North America
n Asia-Pacific
n Rest of the World
*Asia-Pacific, Rest of the world, Eastern Europe.
47 %
27 %
8 %
18 %
Description of the company and its businesses
20
2006 revenue
by market
n Electrical Distribution
n Automation & Control
n Critical Power
63 %
32
%
5
%