APC 2007 Annual Report Download - page 73

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Business review
with Solaire Direct, a company that installs residential pho-
tovoltaic panels and builds PV solar power plants.
The Critical Power & Cooling Services Business Unit was
formed in February 2007 from the combination of APC and
MGE UPS Systems to devise innovative solutions that en-
sure an uninterrupted, reliable power supply.
People
Encouraging diversity
During the year, 1,837 participants attend seminars on de-
veloping leadership and global expertise. The number of
women in attendance was up 155%. The Group also has
also committed to filling 30% of its key positions around
the world with women in the next four years.
Attracting talent
The Group partnered with Institut National des Sciences
Appliquées
(INSA) in Lyon and Ecole Nationale Supérieure
des Techniques Appliquées
(ENSTA) in Paris on a pro-
gram called "Choisis ta Vie" (Choose Your Life) to assist
20 women engineering students in planning their career
paths. The participants receive personalized mentoring
from women managers (all business school graduates) at
Schneider Electric. Launched on November 16, 2007, the
program will continue in 2008.
Motivating employees
The Group gives employees a stake in achieving targets
and in Schneider Electric's performance through profit-
linked incentive plans, employee share ownership, stock
option programs and bonuses. In the spring of 2007, the
Group carried out a share issue as part of an employee
stock purchase plan.
Promoting job opportunities
for the disabled
On November 9, 2007, Schneider Electric signed a first
group-wide agreement for 2007-2009 to promote employ-
ment, training and job opportunities for the disabled, in
compliance with the French law of February 11, 2005 man-
dating equal rights, opportunities, participation and citi-
zenship for the disabled.
Engaging in forward-looking
job and skills planning -
European agreement
On July 12, 2007, Schneider Electric and the European
Metalworkers' Federation (EMF) signed an innovative Eu-
ropean agreement that promotes forward-looking man-
agement of jobs and skills, social dialogue and specific job
training during cross-border reorganization.
2. Operating
Performance
Trends in
Schneider Electric’s core
markets
Non-residential building
The non-residential building market turned in its best per-
formance in 20 years, driven by very strong growth in the
United States (notably in office buildings and hospitals),
and stepped-up demand in Europe and emerging markets.
Virtually all countries in Europe generated significant
growth, with the Nordic countries leading the pack.
The global building market is "industrializing" electrical
equipment to promote energy efficiency and green build-
ings. Demand is booming for solutions that guarantee en-
ergy availability and reliability, as well as applications for
air treatment, event traceability, security and air condition-
ing. Because these solutions are highly integrated, notably
in terms of information technology, the industry will have
to learn how to bundle systems together – something very
few players will be in a position to do.
A related market for performance contracting, facility man-
agement outsourcing, financing and other related services
is beginning to emerge.
Residential
The US residential market plummeted in 2007 after rising
interest rates led to an increase in home loan defaults, just
as housing prices began contract. The subprime crisis and
resulting credit crunch accelerated the decline in housing
starts. The speculative aspect of market growth over the
past few years made the downturn all the more abrupt.
Banks had granted easy loans to homebuyers, who
thought prices would continue to rise and, in some cases,
planned to re-sell in the next few years.
In Europe, the overall residential market stabilized in 2007
after several years of expansion. The market declined in
Ireland and, to a lesser extent, in Germany and Switzer-
land. It continued to rise in Norway and the Netherlands
and showed little or no growth in the rest of Europe. The
residential market is expected to slacken this year. The fi-
nancial crisis stemming from the subprime situation in the
US has added to the slowdown by prompting banks to
tighten their lending.
The residential market in emerging countries has been
buoyed by rising consumer purchasing power fueled by
booming exports of goods and services and sharply higher
raw material prices.
Industry
The industry market was very vibrant again this year. Ma-
chine exports from Europe were driven by strong capital
spending in emerging countries such as China and India
and in nations with natural resources such as oil, gas and
metals.