APC 2007 Annual Report Download - page 72

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A global R&D base
Around a third of the R&D budget is devoted to maintain-
ing the product ranges, increasing quality levels, reducing
raw material, component and process costs, and adapting
products to new environmental regulations such as RoHS,
REACH and WEEE–a Schneider Electric priority.
Nearly two-thirds go to innovation and new product re-
search. The objective is to design and market products and
solutions that deliver more and more value to users.
New products and solutions in 2007 included:
Modicon M340, a new generation PLC.
SunEzy, a new range of UPS systems, supervision and
communication devices and electrical enclosures for pho-
tovoltaic power.
Konnex smart solutions for centralized management of
heating, lighting and air conditioning offering energy sav-
ings and greater safety.
Inca 3D, a modeling software that combines energy ef-
ficiency and innovation.
Schneider Electric Ventures performs technology intelli-
gence for the Group. Each year since 2003, this venture
fund has invested in one to four high-tech start-ups whose
innovations fit with the Group's future development. Focus
areas include nanotechnologies, sensors, optoelectronics,
micro-generation, home automation and energy savings.
Examples of investments in 2007 included:
Solaire Direct, the first electric company in France fully
dedicated to solar power. Solaire Direct builds PV solar
power plants and installs residential photovoltaic panels.
Consumer Power Line, a US-based company that helps
infrastructure managers reduce electricity demand during
peak periods and, when possible, re-sell unused amounts
at above-market prices.
Schneider Electric has also stepped up its research and
innovation in advanced communication (wireless and
Power Line Carrier technologies), energy management (re-
mote metering and monitoring, notably for multi-site
clients), miniaturization and microsystems (smart, multi-
functional sensors) and energy recovery.
In September 2007, the European Commission approved
the HOMES residential energy efficiency program financed
by France's Industrial Innovation Agency and led by
Schneider Electric, in cooperation with 14 partners.
The idea is to organize a building like a smart, networked
system to reduce energy consumption by 10% to 30% and
optimize comfort. Each area of the building will have an ac-
tive control unit equipped with sensors that measure vari-
ous parameters (environment, presence, lighting level,
etc.). The control unit will use this data to manage equip-
ment and communicate with users. In this way, it should be
possible to manage energy use based on occupancy, air
quality or ambient lighting in a room or area.
Efficiency
Two new Business Units to serve
two promising markets
The Renewable Energies Business Unit, with a focus on
solar power, was set up on February 14, 2007 to develop
a range of photovoltaic UPS systems and to collaborate
1. 2007
Highlights
The Group is making full use of four key levers–growth, ef-
ficiency, competencies and commitment–to speed its
transformation and optimize performance.
Growth
During the year, Schneider Electric pursued its strategy of
enhancing core businesses, actively expanding geograph-
ically, launching innovative products and integrating new
activities to offer customers more complete solutions and
the best possible service.
It also enhanced its presence in markets that are less sen-
sitive to economic cycles, such as Infrastructure and Data
Centers.
Targeted acquisitions –
Deep shift in the business portfolio
Critical Power – Birth of a leader
On February 14, 2007, Schneider Electric acquired market
leader American Power Conversion (APC), becoming a
major player in critical power and cooling.
Thanks to the successful integration of APC's and MGE
UPS Systems' resources, the Critical Power & Cooling
Services Business Unit turned in an excellent performance
during the year. The Business Unit's strong revenue growth
has confirmed the popularity of its products and solutions
in the booming Critical Power market. Customers' emerg-
ing needs require integrated energy management and
cooling solutions to resolve the growing problem of energy
efficiency for sensitive applications. The Business Unit's
market leadership, combined with the power of Schneider
Electric's other lineups, allows it to offer unique, compre-
hensive, innovative solutions in fast growing markets.
Building Automation and Security –
Strengthened security business
On October 17, 2007, Schneider Electric acquired Pelco
Inc., world leader in the design, development and manu-
facture of video surveillance systems, to develop fully in-
tegrated systems.
Electrical Distribution -
Creation of Delixi Electric
On October 18, 2007, the Group finalized the creation of
Delixi Electric, a 50/50 joint venture with Delixi Group that
manufacturers, markets and distributes low voltage prod-
ucts in China. The joint venture will target the Chinese mar-
ket and then extend its specific business model to other
countries.
Installation Systems and Control - Enhanced
lineup and deeper presence in Germany
On May 25, 2007, Schneider Electric acquired Ritto GmbH
& Co KG, a German firm that designs, manufactures and
markets door stations and intercom systems for the resi-
dential and small tertiary buildings market.