APC 2009 Annual Report Download - page 13

2009 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 11
2009 IN BRIEF
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2009 in brief
Company programme
On January 28, 2009, Schneider Electric presented the strategic
objectives and operating priorities of its One company programme for
2009-2011. Customer satisfaction (“Customer One”) and employee
development (“One Team”) remain the two key fundamentals and
the cornerstones of Schneider Electric’s strategic transformation.
The One company programme is introducing strategic initiatives
that will make Schneider Electric an even more unique player in
the marketplace, with the goal of becoming One Solution Provider,
One Leader in New Economies and One Company, unifi ed by
streamlining processes.
Growth and acquisitions
Project to acquire Areva Distribution
On July 23, 2009, Schneider Electric and Alstom announced
that they were considering making a joint offer to acquire Areva
Transmission & Distribution (T&D), recently put up for sale by its
parent company. To this end, Alstom and Schneider Electric
would create a jointly-held entity that would bid for Areva T&D. If
the offer were to be accepted, the entity would then transfer the
transmission activities to Alstom and the distribution activities to
Schneider Electric.
On November 30, 2009, following a meeting of its Supervisory Board,
Areva announced its decision to enter into exclusive negotiations
with Alstom and Schneider Electric for the sale of Areva T&D. The
objective of these negotiations is to fi nalise the sales contract that
needs the view of employee representatives must be approved by
France’s Holdings & Transfers Committee (CPT) and the relevant
anti-trust authorities. The plan for integrating Areva’s Transmission
business at Alstom (around two-thirds of Areva T&D) and the
Distribution business at Schneider Electric (around one-third) would
make the partners world leaders in T&D, with:
•upstream capabilities combining Alstom’s power generation
business (turnkey power plants, turbines and alternators) and
Areva T&D’s EHV and HV transmission activities;
•downstream capabilities, combining Schneider Electric’s medium
voltage business and Areva T&D’s distribution operations.
Energy efficiency
On June 4, 2009, Schneider Electric announced the acquisition
of Conzerv Systems, the recognised leader in the Indian energy
effi ciency market, notably among industrial and commercial
end users, with 2008 revenue of more than EUR 10 million. This
move signifi cantly strengthens Schneider Electric’s ability to take
advantage of opportunities in India’s buoyant energy effi ciency
market and extends its energy metering and management line up
for international markets.
Critical Power
On June 22, 2009, Schneider Electric announced the acquisition
of Microsol Tecnologia, a Brazilian manufacturer of UPS systems,
voltage regulators and accessories for power protection with 2008
revenue of BRL65million (around EUR 24million). This acquisition
strengthens Schneider Electric’s presence in Brazil, reinforces its
leadership position in the local critical power market, and expands
its product and solution development capability specifi cally for the
Brazilian market.
Bond issues and credit lines
On January 7, 2009, Schneider Electric issued EUR 750 million
worth of fi xed-rate bonds due July2013 to enhance its liquidity and
extend the average maturity of its debt.
On March 24, 2009 Schneider Electric announced that it had
completed a EUR 250million bond issue with the same fi nancial
terms and conditions as its 4% August 2017 bonds. The issue
enabled the Group to lengthen its debt maturity profi le and
enhance its liquidity on attractive terms. On April 30, 2009, the
Group continued to seize attractive debt market opportunities by
announcing the consolidation of its EUR 250million issue with the
4% August 2017 bonds following satisfaction of the applicable
conditions precedent. In addition, the Group announced that it
had completed a EUR 150million bond issue with the same yield
and maturity as its 5.375% January2015 bonds. On September
15, 2009 Schneider Electric signed a 3 and 5-year credit facility for
a total amount of EUR 1.8billion. This facility allows the Group to
secure a very strong liquidity position. Schneider Electric has lines
of credit totaling more than EUR 2.8billion, of which EUR 2.5billion
with maturities in June2012 and beyond.