Connect - Schneider Electric

1 DESCRIPTION OF THE GROUP, AND ITS STRATEGY, MARKETS AND BUSINESSES
GLOBAL SPECIALIST IN ENERGY MANAGEMENT
A new dimension
The Group doubles in size between 2002 and 2008, through
organic growth and by making a number of acquisitions. Revenue
jumps from EUR9 billion in 2002 to EUR18.3 billion in 2008,
refl ecting average annual growth of 12%. Its headcount increases
from 70,000 to 114,000 over the same period. Thanks to a loosely
integrated business model, the Group can act quickly to keep pace
with economic and environmental changes in its markets.
Following several acquisitions, notably of TAC in 2003, Schneider
Electric becomes a major player in building automation. The Group
becomes global leader in critical power and video security systems
in 2007, with the acquisition of APC and Pelco respectively. The
acquisitions in 2009 of energy effi ciency leader Conzerv in India
and UPS manufacturer Microsol Tecnologia in Brazil increase the
Group’s exposure to new economies, as well as to the growing
energy effi ciency and critical power sectors. Schneider Electric
reinforces this new geographical positioning in 2010 with the
acquisition of Cimac (leader in industrial systems integration in the
Persian Gulf), Zicom Electronic Security Systems Ltd’s activities
(electronic security systems integration, India) and the 50% takeover
of Electroshield – TM Samara (medium voltage, Russia). Schneider
Electric fi nalises the acquisition of Areva T&D Distribution division
in June 2010, thus becoming one of the world leaders in medium
voltage and automation for electrical distribution. Schneider
Electric’s medium voltage operations are therefore strengthened by
Areva T&D’s distribution activities to create a new activity: Energy.
At the same time, Schneider Electric was developing its operations
in mature countries, notably with the acquisition in December 2010
of two pioneering French companies working in the area of building
management software: Vizelia, a provider of software that monitors
the energy consumption of buildings in real time, and D5X, a
specialist in solutions for optimising the use of commercial buildings.
Schneider Electric continues its policy of target acquisitions in 2011,
both small and medium sized, to accompany its growth in the area
of solutions, such as in the new economies.
Solutions
March 2011: acquisition of Summit Energy, a leader in outsourced
energy services, in the area of provision and sustainable development
for industrial and commercial enterprises and institutions.
August 2011: acquisition of Telvent, a leading provider of software
and IT solutions with high added value for real-time management
of critical infrastructures in the electrical, oil and gas, and water
treatment sectors, as well as for transport. This acquisition allows
Schneider Electric to propose a high added value software platform
supplementary to its offer of equipment control and software
management via a smart grid and effi cient infrastructures.
18 2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
New economies
January 2011: acquisition of the majority of the share capital of
APW President Systems Limited, a company specialising in the
design and manufacture of standard or custom-built electric bays
and cabinets for use by telecom and information technology end
customers in India.
March 2011: signing of a contract to acquire the assets of the
company DIGILINK, a leader in structured cabling system supply in
India, from Smartlink Network Systems Ltd.
April 2011: acquisition of Lee Technologies, a leading service
provider for the data centres of the North American market.
June 2011: acquisition of Leader & Harvest, one of the leading
suppliers of medium voltage variable-speed drives in the rapidly
growing Chinese market.
July 2011: partnership with the Chinese company NVC Lighting
to hasten Schneider Electric’s presence in small towns in China,
with the benefi t of NVC Lighting’s well established and wide spread
distribution channels. Acquisition of the Brasilian group S teck
Group, a key player in the fast growing fi nal low voltage segment
serving the residential and commercial buildings and industries in
Brazil.
An eco-citizen approach
Schneider Electric works actively to reduce its environmental
footprint, while making energy safer, more reliable, sustainable and
accessible by optimising its use.
2002: the Group confi rms its commitment to responsible
management by creating a Sustainable Development
Department, which now forms an integral part of the Strategy &
Innovation Department.
2005: the quarterly Planet & Society Barometer is set up to measure
and report on the Group’s sustainable development performance.
Schneider Electric is the fi rst manufacturer to sign French
environmentalist Nicolas Hulot’s pact for the environment and the
sixth global enterprise to join the Clinton Climate Initiative (CCI).
Change management
2001-2008: launch of change management programme NEW2004,
followed by new2 in 2005, with the aim of formalising consistent and
coordinated objectives for all employees.
2009-2011: a new company programme called “One” introduced
to support Schneider Electric’s strategic goals. One, the successor
to new2 , continues the focus on customer satisfaction (Customer 1)
and staff development (1 Team). The programme also includes
strategic initiatives to strengthen Schneider Electric’s leading
position on its market:
• becoming solutions provider (1 Solution Provider);
• giving priority to new economies (1 Leader in New Economies);
• simplifying processes in order to act as a single, unifi ed entity
(1 Company).