APC 2011 Annual Report Download - page 19

172011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
DESCRIPTION OFTHEGROUP, ANDITSSTRATEGY, MARKETS ANDBUSINESSES
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GLOBAL SPECIALIST IN ENERGY MANAGEMENT
1.3 The emergence of sustainable cities
The energy challenge becomes clear in cities, which now contain
50% of the world’s population, responsible for 75% of global energy
consumption and 80% CO2 emissions.
These cities are still growing: by 2050, 70% of the world’s
population will live in an urban environment. Taking into account
demographic growth, over the next 40years urban capacity will
have to undergo a development equivalent to that experienced over
the last 4,000years.
With growth come constraints: infrastructures that lack capacity,
congestion, increased consumption, competition for jobs and skills,
economic diffi culties and ecological ambitions.
To withstand, survive and develop, the cities must become more
sustainable: more intelligent, more effi cient, more liveable.
This will be one of the major challenges over the coming years.
1.4 A new geographical balance
The new economies now represent 50% of global GDP and may
reach 65% by 2015.
They account for 90% of the growth in energy needs over the
next 40years, combining demographic pressure, industrialisation,
urbanisation, and increase in wealth. Millions of men, woman and
children will see their living standards rise.
The driver of global growth is now the new economies – and should
continue to be for years to come.
In order to guarantee its sustainable growth strategy, Schneider
Electric already has a signifi cant presence in these new economies,
holding strong positions in Asia (ex Japan), Africa, the Middle East,
Latin America and Mexico, Eastern Europe and Russia.
The Group’s organisation refl ects this new economic balance, since
the Schneider Electric regional offi ces are found in North America,
Europe and Asia.
1.5 A company focussed on growth
From steel to electricity and onto energy management, the Company
created 175 years ago has experienced signifi cant changes in its
activities in order to position itself for growth.
1836-1980: The family SME becomes a major
player
1836: Adolphe and Joseph-Eugène Schneider move their foundries
to Creusot and create Schneider& Cie two years later. The company
experiences continued development in heavy machinery and
transportation equipment, and becomes an extremely diversifi ed
conglomerate.
1975: Merlin Gerin, one of the top manufacturers of electrical
distribution equipment in France, joins the Group, already present in
the electricity sector since the late 19thcentury.
1981-2001: The Group refocuses on the
electricity sector
1988: acquisition of France’s Telemecanique, a pioneer in remote
control systems for electric motors.
1991: a major acquisition in the US with the takeover of Square D,
leader in the North American electrical equipment sector.
1997: sale of building and public works company Spie Batignolles.
The Group’s refocusing on the electricity sector is now complete.
1999: the name Schneider Electric represents the Group’s new
direction and provides a clear indication of its expertise in the
electricity sector. The Group acquires Lexel, Europe’s second
largest supplier of installation systems and control solutions.
2000: acquisition of Crouzet Automatismes, a French leader in
electronic control, small automation devices and customised
sensors, and Positec, a European leader in motion control. Creation
of a joint venture with Toshiba called Schneider Toshiba Inverters
(STI) to develop, manufacture and market both partners’ industrial
speed drives. STI, of which Schneider Electric holds a 60% stake,
leads the global industrial speed drive sector. Launch of Schneider
Electric Ventures fund with capital of EUR50 million, to acquire
interests in innovative start-ups with technologies that can enhance
the Group’s offering.
2001: acquisition of Legrand, a leader in installation systems and
control solutions. The European Commission vetoes the merger,
obliging Schneider Electric to sell its stake in Legrand. The Court
of First Instance of the European Communities will overrule the
Commission’s decision in October2002.
2002-2011: Strategic transformation
At the turn of the 2000s, Schneider Electric radically rethinks its
growth strategy, setting itself three goals:
•to ensure a more balanced exposure to its strategic end markets;
•to enhance its portfolio of traditional activities (electricity
distribution, automation and industrial control); and
•to anticipate the future energy requirements of companies and
individuals.