APC 2013 Annual Report Download - page 27

OVERVIEW OF THE GROUP'S STRATEGY, MARKETS AND BUSINESSES
COMPANY HISTORY AND DEVELOPMENT
Profitable growth and capital efficiency will drive EPS
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Objective to significantly improve ROCE in the next 2-3
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growth: In addition to the targeted opex efficiency measures, years: the focus on shareholder returns is also materialized by a
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the focus on organic growth after a decade of building and new ROCE target. Compared with the 2013 proforma ROCE
improving the portfolio of businesses will allow for the including Invensys of ~11.0%, Schneider Electric targets to:
strengthening of the balance sheet and the stabilization of the
return to the pre-Invensys ROCE in 1 to 2 years
–
number of shares (neutralization of management and employee
improve the ROCE in 2 to 3 years by 1.5 point to 2 points
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share plans through share buy-back). This should allow a strong ROCE will be a criterion of management compensation.
EPS performance and the continuation of an attractive dividend
policy.
Company history 4.
and development
History 4.1
From its beginnings in steel during the Industrial Revolution over company, Spie Batignolles. Schneider Group undertakes a series
175years ago, to electricity and, more recently, to energy of strategic acquisitions: Telemecanique in1988, SquareD
management, the Group has undertaken significant changes in in1991 and Merlin Gerin in1992.
its operations throughout its history. 1999: Schneider Group acquires Lexel, one of Europe’s largest
1836-1980: a Family Business becomes
suppliers of installation systems and control solutions. In
May1999 the Group is renamed to Schneider Electric, to clearly
emphasize its expertise in the electrical field.
aMajorPlayer
Since2002: a strategic transformation
1836: Brothers Adolphe and Joseph-Eugene Schneider take
over an abandoned foundry in Le Creusot, France and, two
years later, create Schneider&Cie, focusing primarily on the At the turn of the 2000s, Schneider Electric radically rethinks its
steel industry. Schneider&Cie grows rapidly, specializing in the growth strategy, setting itself three goals:
production of heavy machinery and transportation equipment, ensuring a more balanced exposure to its strategic end
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and eventually becomes the Schneider Group, a diversified markets;
conglomerate. enhancing its portfolio of historical operations (electricity
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1975: the Schneider Group acquires an interest in Merlin Gerin, distribution, automation and industrial control) with adjacent
one of the top manufacturers of electrical distribution equipment and synergetic businesses in order to boost its organic growth
in France that has been involved in the electricity sector since potential;and
1920. anticipating the future energy requirements of companies and
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1981-2001: the Schneider Group refocuses
individuals.
This strategy led Schneider Electric to conduct a number of
strategic acquisitions both in mature countries and in new
onthe Electricity Sector economies targeting companies offering complementary
1981-1997: Schneider Group refocuses on the electrical industry products and solutions.
by divesting its non-strategic assets, such as its public works
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2013 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC