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Schneider Electric has opened a new era of world terminal power distribution in China

for Cao Wei, vice president of Schneider Electric in China and head of power distribution and energy division, march15,2011 is the happiest day since he joined Schneider Electric in 1988. On this day, Schneider Electric released its epoch-making fifth generation intelligent terminal distribution system acti 9 to the world for the first time in Shanghai, the economic center of China. Cao Wei, who has been engaged in power distribution work at Schneider Electric, the world's leading power distribution supplier, pointed out at the press conference that Chinese staff played a vanguard role in the R & D and design of the new fifth generation intelligent terminal power distribution system acti 9, and China played a major role in this major innovation. Cao Wei has served Schneider Electric in China for more than 20 years. China's role in Schneider Electric's world has changed dramatically, from the previous world original for China to China original for the world. The first launch of the epoch-making fifth generation intelligent terminal distribution system acti 9 in China is the best proof

Cao Wei attributed the fundamental reason for the change of China's global position in Schneider Electric to the power of the market. In 2010, Schneider Electric's sales in the Asia Pacific region led by China reached 4.8 billion euros, an increase of 45%, 21 percentage points higher than the growth rate of the whole company's sales, accounting for 24.5% of the company's global sales of 19.6 billion euros in 2010, compared with 18.3% in 2006. In 2010, Schneider Electric's sales of power distribution related businesses reached 12 billion euros, accounting for 59% of the company. Power distribution business is the most important supporting force for Schneider Electric's rapid development in recent years, and has made a fundamental contribution to the company's sales increase from 8.8 billion euros in 2003 to 19.6 billion euros in 2010. The distribution business in China, which Cao Wei is responsible for, has achieved rapid development in the past few years. In 2010, there was only a small gap with the largest market of Schneider Electric distribution, the United States. In Cao Wei's eyes, the rapid development of the Chinese market and its position in the world are further highlighted. China will soon become Schneider Electric's largest distribution market in the world, and become the innovation highland and application vane of global distribution technology

power distribution and Asia Pacific region strive to climb the peak

2 accelerate the transformation and upgrading of China's manufacturing industry. On December 17, Schneider Electric disclosed its fourth quarter sales and full year performance during the reporting period ended December 31, 2010

Jean Pascal tricoire, global president and CEO, commented that our team achieved record sales and profitability in 2010. Including Areva power distribution, our annual sales exceeded 20billion euros for the first time. All our businesses and regions achieved growth in 2010, thanks to the improvement of the end market, the customer-centric organizational structure, and the strong business coverage in emerging economies, which accounted for 37% of sales in 2010. We entered 2011 with a strong momentum. In this new cycle stage, we will invest in areas related to energy conservation and efficiency, smart electricity and growth in emerging economies. At the same time, we hope to continue to promote the improvement of cost efficiency according to the strategic route of one of our Schneider Electric plans. A solid balance sheet will enable us to achieve value creating external growth and accelerate our strategic deployment. For 2011, our goal is to achieve a steady growth in sales, an organic growth rate of 6% to 9%, and an EBITA surplus of 15.0% to 15.5% of sales, which is expected to be higher than the level of 14.5% in 2010

in 2010, Schneider Electric's sales increased by 24% year-on-year, reaching a record 19.58 billion euros. Excluding restructuring costs and the impact of Areva distribution merger, EBITA reached a record 2.967 billion euros, accounting for 16.2% of sales, an increase of 3.4 percentage points over the previous year. The strong improvement in profitability comes from the stable rebound in sales and the continuous implementation of cost efficiency improvement actions in accordance with the strategic roadmap set out in a company plan. Excluding restructuring costs and non recurring integration costs of Areva distribution, the reported EBITA reached a record high of € 3.052 billion, accounting for 15.6% of sales. The key driving factors contributing to this improvement include: the strong rebound in sales volume increased profits by 630million euros, productivity and structural adjustment reduced costs by 580million euros, the impact of exchange rates increased profits by 192million euros, and the adverse impact of raw material prices reduced annual profits by 184million euros, which should be replaced; If the power plug is in bad contact, the net value of the divestiture acquisition will increase the profit by 100million euros. In 2010, the company's operating cash flow reached 2.468 billion euros, a year-on-year increase of 44%, and its net profit reached 1.72 billion euros, a year-on-year increase of 109%. In 2010, Schneider Electric's net investment was 528 million euros, a decrease of 48 million euros compared with the previous year. After paying for the purchase of Areva power distribution, Schneider Electric's net debt was 2.736 billion euros, a decrease from 2.812 billion euros in December 2009

in the first three years of the 21st century, Schneider Electric's annual sales were less than 10billion euros, of which the lowest in 2003 was only 8.8 billion euros. From 2003 to 2008, Schneider Electric achieved sustained and rapid growth, from 8.8 billion euros in 2003 to 18.3 billion euros in 2008, more than doubling. Affected by the serious economic crisis in 2009, sales fell to a large extent. The strong business vitality and excellent M & a capability of Schneider Electric made the sales of Schneider Electric in 2010 soar by 24% from 15.8 billion euros in the previous year to a record 19.6 billion euros. If the annual sales of newly acquired AREVA power distribution are included, the sales of the company in 2010 will exceed 20 billion euros, reaching 20.2 billion euros

mergers and acquisitions made a significant contribution to the growth of Schneider Electric in 2010. For example, the newly acquired Areva distribution business has been included in the company since June, contributing 1.23 billion euros in sales. What is more gratifying is that the organic growth rate of the company has made outstanding achievements. In 2010, the organic growth rate of sales reached 9.3%, and the growth rate during the year is faster and faster. The organic growth rate in the first quarter was 2%, the second quarter was 10%, and the second half of the year increased to 12%. The organic growth rate of emerging economies has maintained a high-speed development throughout the year. The annual organic growth rate reached 15%, exceeding the whole company by 5.7 percentage points. Mature economies gradually recovered during the year, with an annual organic growth rate of 6%. Emerging economies accounted for 37% of the company's reported annual sales in 2010, including Areva power distribution

among the four regions of Schneider Electric, the Asia Pacific region has the strongest growth, which is mainly due to the rapid development of emerging economies represented by China and India. In 2010, Schneider Electric's sales volume in Asia Pacific region was 4.8 billion euros, with a year-on-year increase of 45% (the organic growth rate was 22%), 21 percentage points higher than the growth rate of the whole company's sales volume, accounting for 24.5% of the company, an increase of 6.2 percentage points from 18.3% in 2006

the distribution business accounted for more than half of Schneider Electric, accounting for 61% in the fourth quarter of 2010. The sales volume of the company's power business in 2010 was 10.3 billion euros, with a year-on-year increase of 11.7%, and the organic growth rate was 5.7%, accounting for 52.7% of the company. The sales volume of power business in the fourth quarter was 2.8 billion euros, with a year-on-year increase of 18.7% and an organic growth rate of 10.8%. In the fourth quarter, the medium voltage business confirmed continuous improvement, thanks to improved trends in its key markets, especially in non residential construction, energy and infrastructure. Driven by the improvement trend in most regions and terminal markets, the low-voltage business continues to accelerate its growth. The growth of solutions exceeded that of products during the quarter, which was due to the steady growth of renewable energy projects and the contracts obtained in the end markets of infrastructure and non residential buildings

in the whole year, AREVA distribution generated sales of 1.878 billion euros, which was generally stable compared with 2009, reflecting the decline in power company spending, especially in mature countries. Areva power distribution was consolidated from June to December 2010, achieving sales of 1.230 billion euros and EBITA of 85million euros, accounting for 6.9% of sales, exceeding the target of 1.1 billion euros and 5% profit margin set at the beginning of its integration. According to the acquisition requirements, Alstom and Schneider Electric launched a mandatory offer to acquire another 20% of Areva's listed subsidiary in India. The offer was completed on December 3, 2010. Schneider Electric and ALSTOM hold 73.4% of the share capital of Areva India Co., Ltd. Areva power distribution has now merged with Schneider Electric's medium voltage business and will report in the energy business since 2011

China creates and leads the new trend of power distribution

in Cao Wei's view, Schneider Electric's excellent performance in the 21st century is synchronized with the rise of China. Schneider Electric's global performance is also closely related to its performance in China. To a certain extent, the company's performance in China determines its global performance. The fundamental reason for all this is the power of the market, because the Chinese market has played a decisive role in the world. To succeed in the new era, any enterprise with global business distribution needs to succeed in the Chinese market first. This time, Schneider Electric first introduced the epoch-making fifth generation intelligent terminal distribution system acti 9 in China, which was determined by the market

Cao Wei, who has worked in Schneider Electric China for nearly a quarter of a century, truly understands the strength of the Chinese market. 20 years ago, international multinational companies only had to make some modifications to the products that sold well in the world in line with the characteristics of the Chinese market. But now we have a clear idea of what the Chinese market needs, so we can develop and apply it in China, and even help customers realize the conversion from metal parts to plastic parts or the electroplating process to replace plastic parts, and then apply it to other countries

as early as 1999, Schneider Electric established a research and development center in China. Today, it has developed from a small design department to a research and development center. At first, the R & D center only made some small improvements for Chinese localized products. Now it has developed to research and develop global products, and design overall products and solutions for global R & D platforms such as China, the United States and Europe. Today, Schneider Electric China R & D center is not only to do the localization improvement of products, but also to do the research and development of overall solutions for China and the world; Today, Schneider Electric develops products and solutions according to the new needs of local customers in China, and then promotes them to users all over the world; China has not only become a production base, but also a pioneer in R & D and design. In the research and development of the fifth generation intelligent terminal distribution system acti 9, Chinese researchers have made a decisive contribution

Cao Wei pointed out that as a leader in the global power distribution field, Schneider Electric has always focused on customer needs and new trends in industry development, and with its strong global R & D strength, it has constantly launched innovative new terminal power distribution products to promote the future development of the power distribution field. Schneider Electric launched the new fifth generation terminal power distribution system acti9 series, which has achieved many advances in current power distribution technology

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