APC 2007 Annual Report Download - page 13

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11
2007 in brief
In 2007, Schneider Electric continued to transform its growth profile.
In-depth repositioning of the business portfolio has allowed the Group
to develop unique positions in businesses that enjoy structural growth,
such as critical power and cooling services and energy efficiency, and
to diversify its exposure by enhancing its presence in promising, less
cyclical markets.
Acquisitions
Critical Power
Birth of a leader
Acquisition of market leader American Power Conversion
(APC) makes Schneider Electric a major player in critical
power and cooling services (February 14, 2007).
Thanks to the successful integration of APC's and MGE
UPS Systems' resources, the Critical Power & Cooling
Services Business Unit turned in an excellent perform-
ance during the year. The Business Unit's strong revenue
growth has confirmed the popularity of its products and so-
lutions in the booming Critical Power market. Customers'
emerging needs require integrated energy management
and cooling solutions to resolve the growing problem of en-
ergy efficiency for sensitive applications. The Business
Unit's leadership, combined with the power of Schneider
Electric's other lineups, allows it to offer unique, compre-
hensive, innovative solutions in fast growing markets.
Successful share issue
Share issue (with pre-emptive subscription rights) to fi-
nance part of the APC acquisition brings in around 1 bil-
lion, for a take-up rate of 250% (April 4, 2007).
Investors also respond favorably to the 600 million bond
issue (fixed rate, due January 2015) rated BBB+ by Stan-
dard & Poor’s (September 25, 2007).
Divestment of MGE Office Protection Systems
Following a decision by the European Union's anti-trust
authorities, the Group finalizes the sale of MGE UPS's
small systems (less than 10 kVA) to Eaton Corp (October
31, 2007).
Building Automation and Security
New addition to the security business
Acquisition of Pelco Inc., world leader in the design, deve-
lopment and manufacture of video surveillance systems,
to develop fully integrated systems (October 17, 2007).
Electrical Distribution
Creation of Delixi Electric
The Group finalizes the formation of this 50-50 joint ven-
ture with Delixi Group that will manufacture, market and dis-
tribute low-voltage products in China and then expand its
specific business model to other countries (October 18,
2007).
Installation systems and control
Enhanced lineup and deeper presence in
Germany
Acquisition of Ritto GmbH & Co KG, a German firm that
designs, manufactures and markets door stations and in-
tercom systems for the residential and small tertiary buil-
dings market (May 25, 2007).
Faster innovation
Successful start-up for HOMES
program (Optimized Housing for
Energy Management and Services)
Green light from the European Commission for the
HOMES program, which has a total budget of 89 million,
of which 50 million provided by Schneider Electric and
its 14 partners and 39 million by France’s Industrial In-
novation Agency. The partners can now start creating new
standards and shared platforms to make buildings more
energy efficient and comfortable for residents (September
2007).
New step forward in interoperability
Schneider Electric becomes a principal member of ODVA,
an international association comprised of members from
the world's leading automation companies, alongside
Cisco Systems, Eaton Electrical, Omron Corporation and
Rockwell Automation. This move marks the Group’s com-
mitment to supporting technologies using the Common In-
dustrial Protocol™ (CIP) developed by ODVA and to
deploying a project that will make Ethernet/IP the most wi-
dely used industrial network available (April 2007).
Leading-edge testing center
Inauguration of the new China R&D Center in Shanghai’s
Jinshan district, the largest testing center ever designed
by Schneider Electric Asia (2,500 sq.m, 7.6 million in-
vestment). The facility will mainly conduct electrical endu-
rance and short circuit tests (April 2007).
New R&D center for
Critical Power & Cooling Services
New technological center opened in St Louis, Missouri
(USA), with two laboratories to test "What if" scenarios
for data center equipment and infrastructure.