APC 2007 Annual Report Download - page 6

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4
Is it profitable for a customer
to invest in energy efficiency?
It certainly is. With prices skyrocketing for oil,
fossil fuels and energy in general, investing in
energy efficiency is definitely a good move.
What’s more, the outlay required is generally
quite small, so customers get a quick, lasting
and immediately visible return on investment.
We don’t have any choice here. The world has
recognized that the issue of greenhouse gases
needs to be addressed urgently and that energy
is becoming scarce and expensive. More and
more regulations on electricity are being issued,
and this is just the beginning. Our customers are
also seeing a huge surge in their energy bills.
Schneider Electric offers solutions that can
reduce energy costs and CO2emissions by 30%
in all types of applications. Sales of these
solutions rose 15% in 2007 to 3.6 billion; energy
efficiency accounted for 20% of our orders.
We estimate this market’s underlying structural
growth at more than 10%. Schneider Electric has
a unique global position as an energy efficiency
specialist.
Does Schneider Electric have other
growth drivers?
Yes, emerging markets. Operations in these
countries accounted for 32% of our 2007 revenue,
or 5.5 billion. Our exposure here is much sturdier
than in the past. We have sales operations,
production, supply chain and R&D units and very
solid and competent teams in emerging markets.
Growth in these countries accelerates each year
as we consolidate our platform and teams.
Growth stood at 20% in 2007 and exceeded 13%
on average over the past ten years.
Our goal is to be the benchmark
in sustainable development.
”
“
Did Schneider Electric benefit from
the repositioning of its business portfolio
in 2007?
Without a doubt. Our new business portfolio
structurally improves our growth profile.
Our exposure to end markets has changed
substantially and is much more diversified.
This means we can take advantage of growth
opportunities and also withstand weakness in
certain segments. We operate in highly promising
markets such as data centers, raw material
extraction and infrastructure (water treatment and
power supply). When one market slows down,
we can quickly refocus our resources on more
vibrant areas.
What did Schneider Electric do
for sustainable development in 2007?
Our goal is to be the benchmark in sustainable
development. Our products, processes and plants
must be the cleanest and most efficient in our
industry and comply with or anticipate the most
demanding global environmental regulations.
To go even farther in meeting the environmental
challenge, we provide customers with leading-edge
solutions and technologies for energy efficiency.
That’s the idea behind the HOMES program to
innovate in energy savings. Lastly, we promote
a proactive and responsible attitude towards our
employees and the community.