APC 2007 Annual Report Download - page 19

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Description of the Company and its businesses
1
Optimize the balance sheet, with a debt-to-equity ratio of
48% after the APC and Pelco acquisitions. Taking into ac-
count the APC acquisition on a pro forma basis before the
impact of the 1 billion capital increase, the ratio came to
69% at end 2007.
(See Outlook for 2007, page 76.)
4. Global leadership in
five promising markets
After strategically repositioning its business portfolio,
Schneider Electric now enjoys global leadership in five key
markets: Energy & Infrastructure, Industry, Buildings, Data
Centers and Networks and Residential.
This new geographic and market balance has allowed the
Group to enhance and develop its dialogue with cus-
tomers, notably by moving closer to end users. Schneider
Electric has solutions to meet the needs of energy and
water suppliers; manufacturers; managers of IT, trans-
portation and communication infrastructure; builders and
operators of single family homes, apartment buildings,
stores, offices, hotels, hospitals, schools, cultural and
sports facilities; and consumers.
These moves have allowed the Group to devise a unique
array of products, solutions and services to optimize elec-
trical energy, with the promise of efficiency, innovation,
safety, comfort and ease of use.
Energy & Infrastructure
The Energy & Infrastructure market offers enormous busi-
ness prospects with long-term growth opportunities fueled
by population growth, economic development, the expan-
sion of renewable energies, deregulation of energy mar-
kets, increasing remote operation of infrastructure via the
Internet, growing security needs, and outsourcing of nu-
merous services.
The Energy & Infrastructure market includes communica-
tion networks; shipping; transportation; water, gas and oil
distribution; water treatment and waste management.
Schneider Electric’s lineup for this market comprises solu-
tions for:
Power supply, metering and quality.
Process control.
Utility management (lighting, ventilation, elevators, in-
truder alert, etc.).
Remote multi-site management of production and elec-
trical distribution infrastructure.
The Group’s solutions help ensure that installations are
available and safe while enhancing energy efficiency and
controlling costs.
Energy
In the Energy market, Schneider Electric offers solutions to
optimize the generation, distribution and sale of electricity.
Its solutions are designed to enhance the quality and re-
duce the cost of each distributed kilowatt hour. The Group
serves power companies, systems integrators, OEMs and
panelbuilders with a lineup that integrates new web tech-
nologies and high value-added products and services to:
Measure energy consumption.
Supervise processes.
Create and manage smart electrical networks.
Offer prepayment systems that bring electricity to dis-
advantaged customers.
Infrastructure
Because uninterrupted service is critical from the stand-
points of safety and comfort, Schneider Electric offers effi-
cient, web-enabled metering, monitoring, critical power,
management and remote-management solutions that
guarantee a reliable, steady power supply.
Infrastructure operators, engineering firms, systems inte-
grators, OEMs and contractors can find products, systems
and services for electrical distribution, automation and con-
trol that meet their applications’ specific requirements.
Water & electricity: immense needs
1.6 billion people do not have access to
electricity.
Power consumption is expected to double by
2030.
Renewable energies are expected to account
for 13% of electricity generation in 2030.
1.2 billion people do not have access to clean
drinking water.
Annual investment in water production,
distribution and treatment amounts to 80
billion.
Source: IEA, World Water Council
2007 revenue
by market
n Energy & Infrastructure
n Industry
n Buildings
n Data Centers and Networks
n Residential
16%
26%
29%
17%
12%
Industry
Business in the Industry market is being driven by the mas-
sive expansion of automation, tighter requirements for en-
ergy savings, traceability and environmental protection,
outsourcing of electrical installation management and de-
mand for value-added services.
Schneider Electric designs energy optimization solutions
for all sectors of this buoyant market, from food and bev-
erage, packaging and automobiles to pharmaceuticals,
electronic components and chemicals.
In 2007, the Group launched the ambitious Automation
Conquest program for the Industry market.