engineering moving the engineering the detail, moving the world. activity report 2007
TRANSCRIPT
Milestones Our products and services Passenger elevators For any individual need in the market, Schindler provides an appropriate elevator solution. Starting with low-rise requirements focusing on basic transportation needs at affordable costs, through mid-rise applications for the residential and commercial market segments, and finally on to the high requirements in the high-rise segment for buildings up to 500 meters.
Freight elevators For small and large volumes, and light- or heavy-duty freight.
Escalators and moving walks Escalators for all applications, from shopping malls, offices, hotels, and entertainment centers, to busy airports, subways, and railway stations. Moving walks – inclined and horizontal – for efficient transportation in public areas.
ModernizationElevator and escalator modernization products.
ServicesThe next technician is always within reach, worldwide, 24 hours a day.
Moving showroom. Outstanding artwork.
Touching moments in a surprising ambiance.
Artwork by José Maria DAVID, France.
Schindler Activity Report 2007
Ladies and Gentlemen
The year 2007 will remain painfully engraved in our memo-
ry for a long time. Despite record operating profits, the
Group had to cope with adversity and to overcome some
very complex issues. Net consolidated profits of the Group
be fore deduction of the cartel fines would have reached
CHF 571 million. After the fine, net consolidated profits
reach CHF 278 million as compared to CHF 511 million in
2006.
Let me summarize some of the major events as follows:
Despite intense competition, our global Top Range sales
could be maintained at high levels and include some very
important buildings around the world (please refer to pages
34 to 49).
Our strategic collaboration with Hyundai Elevator Co. Ltd. in
South Korea developed in a very positive way as exemplified
by a joint mid-October press conference in Seoul and the
establishment of joint working teams.
The Schindler 3300 product line, designed for the residen-
tial and commercial sector, has been extremely well received
by our customers. Subsequent very strong sales of new
installations in 2006 have led to persistent logistical prob-
lems in Europe and bookings had to be closely monitored
in 2007. By the end of the 3rd quarter 2007, European
on-time deliveries were back to normal and first-pass yield
started to improve.
The acquisition of GNT in 2006 burdened the results of
ALSO in 2007. Indeed, despite record losses of CHF –19
million in the first half at GNT, ALSO managed to close the
year with consolidated net profits of CHF 15 million. This
significant improvement is mainly based on two sets of
actions: the beginning turnaround of GNT and very healthy
profit improvements of ALSO standalone.
As mentioned above, the two cartel fines in the EU and
Austria totaling CHF 293 million have reduced our conso-
lidated net profits by 51.3%. They harmed our reputation
even though the violations were limited to local markets
only. Both fines are excessive and do in no way reflect our
continuous and well documented compliance efforts since
the early 90s (see also page 111ff., Corporate Governance).
They have therefore been challenged in court.
In addition, the two cases have shown that cartel laws in
Europe are deeply flawed for at least two reasons. Firstly,
fines against companies for alleged cartel violations target
the shareholders instead of the individuals who actually
broke the law. That is in sharp contrast to antitrust laws in
the United States. Punishing responsible individuals would
not only be fairer, but would also be a more effective deter-
rence. Secondly, even if cartel violations were purely local,
fines are imposed on the whole corporate group and based
on its worldwide sales.
As a consequence we will not rest until cartel laws in Europe
will include a so-called “compliance defense” for companies
as well as penal sanctions against employees who deliber-
ately infringe cartel laws. Several political initiatives have
been launched in order to amend cartel laws in Europe
accordingly.
On behalf of all shareholders and the Board of Directors,
I would like to thank all employees for their tremendous
efforts in this difficult year. My special thanks go to those
who were given the task to deal with problems former
employees have left behind for them to solve.
Despite the turbulences in the financial markets, 2008
should not only lead to substantially higher consolidated
profits but also to better operating margins. With this posi-
tive outlook in mind, we gladly turn the page 2007.
Alfred N. Schindler
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1Schindler in brief2 Schindlerinbrief
2To the shareholders17 StatementoftheBoardofDirectors
3Elevators & Escalators25 Businessreview31 Urbanmobility34 Importantorders
4ALSO51 Businessreview
5Corporate Citizenship54 Wide-rangingcorporate commitments56 “Greenelevators”
6Overview of financial results59 SummaryfinancialstatementsGroup60 Summaryfinancialstatements SchindlerHoldingLtd.61 KeyfiguresGroup64 KeyfiguresElevators&Escalators65 KeyfiguresALSO66 KeyfiguresSchindlerHoldingLtd.67 Keyfiguresregisteredshare/ participationcertificate70 Financialcalendar
71 Importantaddresses
7Financial Statements Group
8Financial Statements Schindler Holding Ltd.
9Corporate Governance
0www.schindler.com
2 SchindlerActivityReport2007
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Schindlerinbrief
Schindlerinbrief
GroupFoundedinSwitzerlandin1874,theSchindlerGroupemploysaround45000staffworldwideandcomprisestwocoreareasofbusiness:Elevators&Escalators,whichcontributed63%ofsalesin2007,andALSO,anICEdistributorinEurope.TheparentcompanySchindlerHoldingLtd.islistedontheSWXSwissExchange.
Elevators & Escalators Asoneoftheleadingglobalmanufacturersofelevators,escalators,andmov-ingwalks,withanetworkofover1000branchesspanningeverycontinent,Schindlerdevelops,plans,produces,andinstallsmobilitysolutionsinaccor-dancewithcustomerrequirements.Acomprehensiveserviceofferingensuresthesmoothfunctioningoftheseinstallationsthroughouttheirservicelifeofaround30years.Customizedsolutionsareavailableforthemodernizationandreplacementofunits.
ALSO Schindlerowns64.0%ofALSOHoldingAG,whichislistedontheSWXSwissExchange.TheALSOGroupisoneofEurope’sleadingdistributionandlogisticscompaniesforinformationtechnologyandconsumerelectron-ics(ICE).ALSOisactiveinnineEuropeancountries:underthenameofALSOinSwitzerlandandGermany,andunderGNTinFinland,Norway,Sweden,Estonia,Latvia,Lithuania,andPoland.
Strategic orientation“LeadershipthroughService”isthecompany’svisionintheelevatorsandescalatorsbusiness,since30millionindividualsworldwideuseSchindlerproductseveryhour.Wewanttoensurethatourcustomersandpassengerscanrelyonhigh-qualitymobilitysolutionsandservicesatalltimes.
Twofactorsareessentialinordertoachievethis:first,thestrengtheningofSchindler’sglobalpresenceandtherelatedexpansionofitsservicenetworkintheindividualmarkets.Thecompanyisthusabletoexploitdifferentglobalgrowthcycles,tosmoothoutcurrencyrisks,toreduceresponsetimesthankstoitsproximitytocustomersand,atthesametime,toincreasetheproductivityofitsservices.Thesecondprerequisiteisaclearfocusonitscorecompetenciesintheelevatorsandescalatorsbusinessinordertooutperformthecompetitioninanincreasinglyprice-sensitivemar-ketthroughcostleadership.
Schindlerworksconstantlyinordertosecurethiscompetitiveadvantage.Allprocessesarethereforecontinuouslyoptimized,manufacturingdepthisreducedbyfocusingexclusivelyonstrategiccorecompetencies,andtherangeofproductfamiliesisreducedtoareasonablenumber.Atthesametime,Schindlerfocusescontinuouslyondevelopingleadingproductsfeatur-ingthelatesttechnology.Examplesofrecentinnovationsincludethefirst
3SchindlerActivityReport2007
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Schindlerinbrief
patentforelevatorswithoutamachineroom,theMiconic10hallcalldesti-nationsystem,theSchindlerIDpersonalizedaccesscontrolsystem,theSchindler7000globalhigh-riseelevator,thefullysyntheticaramidropeandmoderntractionbelttechnology.
Schindlerwillsystematicallypursuetheaforementionedstrategyinordertofurtherexpanditsleadingposition,thusgeneratingaddedvalueforitsshareholdersandincreasingitsmarketcapitalization.
FurtherinformationonALSO’sstrategyisavailableintheALSOAnnualReport.
We create values
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Market capitalization 1981 to 31. 12. 2007
In million CHF
10 000
9 500
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6 500
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1981 1985 1990 1995 2000 2005 2007
4 SchindlerActivityReport2007
Schindlerinbrief
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SubjecttoapprovalbytheGeneralMeeting,thedividendwillbepaidonMarch31,2008.
Key figures 2007
Dividends proposed by the Board of Directorsof Schindler Holding Ltd.
InCHF 2007 2006
Registeredshare 1.60 1.30
Bearerparticipationcertificate 1.60 1.30
Group
InmillionCHF 2007 2006 ∆%∆%localcurrency
Ordersreceived 14 116 11720 +20.4 +18.0
Operatingrevenue 13 835 11106 +24.6 +22.1
Operatingprofit(EBIT) 830 726 +14.3
Antitrustfines 293
Netprofit 278 511 –45.6
Netprofitbeforeantitrustfines 571 511 +11.7
Cashflow 391 623
Returnonshareholders’equityin% 13.0 25.2
Consolidatedshareholders’equity 2 100 2177
Orderbacklog 6 752 6024 +12.1 +13.8
Personnelatyear-end(number) 45 208 43679
Elevators & Escalators
InmillionCHF 2007 2006 ∆%
Ordersreceived 9 023 8417 +7.2
Operatingrevenue 8 752 7829 +11.8
Operatingprofit(EBIT)in% 9.2 9.2
ALSO
InmillionCHF 2007 2006 ∆%
Ordersreceived 5 093 3303 +54.2
Operatingrevenue 5 083 3277 +55.1
Operatingprofit(EBIT)in% 1.1 0.9
10 SchindlerActivityReport2007
Createdinthemind.Drawnonthescreen.
Thejourneyfromoutlinetoskylinebegins.Intheplanningphase,SchindlerDrawsoftwareletsyouswiftlyimplementyourideas.Youcanuseitsdrag-and-dropfunctiontointegrateescalatorsdirectlyintoyourblueprints.Foranexcitingnewdesignworld.
12 SchindlerActivityReport2007
Onecontact.Forallcontingencies.
Intherarecaseofamalfunction,youcanpersonallycontactoneofSchindler’scallcenterstaffmemberswithpush-buttonconvenience.Schindleristhoroughlycommittedtokeepingyouonthemove–aroundtheclock.
14 SchindlerActivityReport2007
Heavyload.Easydoesit.
Schindlerfreightelevatorsaredesignedtoserveeverykindoftransportationdemandfrom600to6300kg.Robusttechnologyandhigh-qualitymaterialsmakeitasnapforSchindlerelevatorstolightenyourload.
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SchindlerActivityReport2007
Totheshareholders
Upanddown.Uptodate.
TheSchindlercarinformationsystemdisplaysdiversified
informationcustomizedtothebuilding,theelevator,and
theusers–foranyneed.Makingtheelevatorexperience
simplymuchmoreenjoyable.
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SchindlerActivityReport2007StatementoftheBoardofDirectors
StatementoftheBoardofDirectors
Marked improvement in operating performance
Positive environment based on economic growthThemarketsexperiencedgoodeconomicgrowthworldwide,althoughthereweresignsofaslowdowninconstructionactivityincertaincountries.IntheUSA,forexample,themortgagecrisiscurbedmomentumintheresi-dentialconstructionsegmentinthefourthquarter.However,theoveralleconomicenvironmentremainedpositive,resultinginrobustdemandintheelevatorsandescalatorsbusiness.Schindlerfocusedonqualitativegrowthandstrengtheneditspositioninthehigh-risesegmentinparticular,aswellasmaintainingitsgloballeadershipintheescalatorsbusiness.
Operating performance at Group level
Operating revenueConsolidatedoperatingrevenueroseby24.6%toCHF13835million(previ-ousyear:CHF11106million),whichcorrespondstoanincreaseof22.1%inlocalcurrencies.ThepositiveforeignexchangeimpactwasCHF280million.ALSO,whichconsolidatedtheFinnishcompanyGNTHoldingOyforthefullreportingperiodforthefirsttimein2007(previousyear:fourmonths),contributedCHF5083milliontotheconsolidatedoperatingrevenue.
ThescopeofconsolidationwasexpandedtoincludeanumberofsmallerlocalelevatorcompaniesinEuropeandNorthAmerica.Theimpactofallfirst-timeconsolidationsonoperatingrevenueandoperatingprofitwaslessthan1%.
Operating profitConsolidatedoperatingprofit(EBIT)totaledCHF830million,anincreaseofCHF104millionor14.3%comparedtothepreviousyear.ExcludingtheextraordinaryrealestategainofCHF63millionrecordedin2006,operatingprofit(EBIT)improvedby25.2%.
Upanddown.Uptodate.
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SchindlerActivityReport2007StatementoftheBoardofDirectors
Totheshareholders
Net income from financing and investingNetincomefromfinancingandinvestingwasCHF–51million(previousyear:CHF–15million).Interestexpensesweresignificantlyhigherthanintheprevi-ousyear.ThisreflectedthefactthatthefinancingcostsofGNTactivitieswereincurredoverthewholereportingperiodratherthanjustfourmonths.Inaddition,incomefrominterestratehedgingtransactionsdeclinedcomparedtothepreviousyearandrealizedgainsonthesaleofsecuritieswerelower.
Net profitAspreviouslystated,netprofitwassignificantlyimpactedbytheantitrustfinesimposedduringthereportingyear.SchindlerwasfinedatotalofCHF293millionforlocalinfringements(forfurtherdetails,pleaseseetheFinancialReport,Note29).TheremainingnetprofitamountedtoCHF278million.ExcludingtheantitrustfinesandcomparedtothenetprofitofCHF470millioninthepreviousyear(adjustedfortherealestategain),netprofitgrewbyapleasing21.5%.
Orders received and order backlogConsolidatedordersreceivedtotaledCHF14116million,up20.4%fromCHF11720millioninthepreviousyear(+18.0%inlocalcurrencies).ALSOcontributedCHF5093milliontothissum.
Theorderbacklogatend-2007wasCHF6752million,anincreaseof12.1%(+13.8%inlocalcurrencies)comparedtothepreviousyear.Theorderback-logessentiallystemsfromtheelevatorsandescalatorsbusinessandisre-flectedbyanimprovementinearningsquality.Thebacklogincludesseveralimportantmajororders.
Personnel numbersThepersonneloftheentireGroupincreasedto45208employees,up3.5%comparedtoend-2006.Thenumberofemployeesintheelevatorsandesca-latorsbusinessgrewby3.8%to43221.AtALSO,thenumberofemployeesfellbyatotalof2.9%to1987dueprimarilytorestructuringmeasuresattheGNTsubsidiaryinSweden.
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SchindlerActivityReport2007StatementoftheBoardofDirectors
Qualitative growth in the elevators and escalators business Followingthestronggrowthinsalesintheprevioustwoyears(+28.6%),SchindlerfocusedonqualitativegrowthinthereportingyearandtookmeasuresinEuropetoalleviatethesupplybottlenecksthathadarisen.Asaresult,ordersreceivedroseby7.2%toCHF9023million(+6.1%inlocalcurrencies),representingamoderateincreasecomparedtothepreviousyears.Schindlerstrengtheneditsmarketpositionintheescalatorsbusinessandcontinuedtoexpanditspositioninthehigh-risesegment.ItsecuredfurtherordersfornotablemajorprojectssuchasHeronTowerinLondon(202meters),theBusinessFinancialCentreinSingapore(225meters)andtheGreenlandTower,PhaseII(450meters)inNanjing.
Salesinthenewinstallationsbusinessgrewby6.3%,reflectingcontribu-tionsfromallmarketregions.IntheUSA,Schindlerwasabletobuildonitspleasingsalesperformanceinthepreviousyear.IntheEasternEurope,MiddleEast,India,andAfricaregion,Schindlercapitalizedontheboomintheconstructionindustrytofurtherstrengthenitsmarketposition.IntheAsia/Pacificregion,theGroupfurtherexpandeditsbusinessinthehigh-risesegmentandtheescalatorsbusiness.InEurope,itselectivelyexploitedgrowthopportunitiesandsubstantiallyreducedthebottlenecksintheareasofproductionandinstallation.Inthemodernizationbusiness,Schindleren-joyedstronggrowthinallregions.
Clear improvement in operating performance Operatingrevenueroseby11.8%toCHF8752million(previousyear:CHF7829million).Operatingprofit(EBIT)grewfromCHF717milliontoCHF802million.ExcludingtheextraordinaryrealestategainofCHF63mil-lionrecordedinthepreviousyear,operatingprofit(EBIT)increasedby22.6%;asaresultofthisimprovedperformance,theoperatingmarginrosefrom8.4%inthepreviousyearto9.2%.
AwardsInOctober2007,AtlasSchindler,Brazil,wasnamed“BestCompanyintheMechanicalEngineeringSector”bytheleadingfinancialnewspaper“GazetaMercantil.”AtlasSchindlerwasalsoratedasoneofBrazil‘s30top-perform-ingcompanies.
Lastyear,Schindleralsoreceivedthe“InternationalFleetManageroftheyear2007”awardinrecognitionofitsbest-practiceapproachtothemanagementofitsfleetofmorethan10000vehiclesworldwide.
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SchindlerActivityReport2007StatementoftheBoardofDirectors
Totheshareholders
ALSO: now No. 3 in Europe AsaresultofstronggrowthandtheconsolidationoftheFinnishfirmGNTHoldingOyforthefullreportingperiodforthefirsttime,ALSOrankedasthethird-largestICEdistributorinEuropeinthereportingyearandisnowmarketleaderinfiveoftheninecountriesinwhichitoperates.
ExcludingGNT,ALSOachievedorganicgrowthof18%,increasingitsoper-atingprofitby26%anditsnetprofitby17%.AfterreportingalossofCHF–19millioninthefirsthalfoftheyear,GNTdeliveredanetprofitofCHF6millioninthesecondhalfof2007followingextensiverestructuringmeasures.ALSOincreaseditsconsolidatednetsalesby55.1%toCHF5083millionandrecordedanetprofitofCHF15million.
Changes in the Management CommitteeJürgenTinggren,previouslyamemberoftheManagementCommitteeEle-vators&EscalatorswithresponsibilityforTechnologyandStrategicSupplyManagement,succeededRolandW.HessasthePresidentoftheManage-mentCommitteeElevators&EscalatorsonAugust1,2007.
Inaddition,theManagementCommitteeElevators&Escalatorswasextend-edtoincludethenewGlobalBusinessfunction,effectiveAugust1,2007.Thismeasureisaimedatstrengtheningthebusinesswithglobalproductlinesandatacceleratingtheintroductionofglobalproducts.TheBoardofDirectorsappointedMichaelFüllemanntothisfunction.
Thedifferentreportingstruc-tureandeliminationeffectsmaycauseindividualvaluesandpercentagestodifferslightlyfromthosereportedbyALSO.
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SchindlerActivityReport2007StatementoftheBoardofDirectors
Schindler Holding Ltd.
Dividend and capital structure SchindlerHoldingLtd.closedthefinancialyear2007withanetprofitofCHF874million(previousyear:CHF233million).Theexceptionalincreaseinprofitcomparedtothepreviousyearwasduetorevenuesfromtheintra-grouptransactionsofaffiliatedcompanies(forfurtherdetails,pleaseseetheFinancialReport,page81).ThepaymentofadividendofCHF1.60perregisteredshareandperbearerparticipationcertificatewillbeproposedtothenextGeneralMeetingonMarch26,2008.
Repurchase programAttheGeneralMeetingofSchindlerHoldingLtd.onMarch20,2007,itwasdecidedthatthe480000bearerparticipationcertificatesrepurchasedinthe2006reportingyearwouldbecancelled.ThecorrespondingcapitalreductionofCHF48000tookplaceafterthelegallyrequirednotificationperiodexpiredonMay24,2007.
OnDecember11,2006,theBoardofDirectorsdecidedtolaunchapro-gramtorepurchaseamaximumof10%ofthetotalnominalcapitalofSchindlerHoldingLtd.Underthisprogram,1117000registeredsharesand1679500bearerparticipationcertificateswererepurchasedbetweenJanuary1,2007,andFebruary13,2008,withtheaimofreducingtheGroup’scapital.Thiscorrespondsto2,25%ofalloutstandingsecurities.SchindlerHoldingLtd.willproposeacorrespondingreductionofitsnomi-nalcapitaltotheOrdinaryGeneralMeetingonMarch26,2008.
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SchindlerActivityReport2007StatementoftheBoardofDirectors
Totheshareholders
Changes in the Board of DirectorsAttheGeneralMeetingonMarch20,2007,Dr.AlexanderSchaub,aGer-mancitizen,waselectedasanewmemberoftheBoardofDirectorsforatermofthreeyears.Heisthefirstindependent,non-executivememberoftheBoardofDirectorstobecomeChairmanoftheAuditCommittee.
AlfredSpörriwillretirefromtheBoardofDirectorsatthe2008GeneralMeeting.HejoinedtheSchindlerGroupin1968andwaselectedtotheBoardofDirectorsandtheExecutiveCommitteeoftheBoardin1995.Thankstohismanyyearsofinternationalexperienceinvariousmanage-mentpositions,hewasabletobuildupandmanagetheAuditCommittee,helpshapethedevelopmentofALSOandcontributesignificantlytothesuccessfulpositioningoftheGroup.
TheBoardofDirectorswouldliketothankAlfredSpörriforhiscommitmentandservicetotheGroupover40years,duringwhichtimehedemonstratedhisexcellentnegotiatingskillsanddeliveredanoutstandingperformance.
Togetherasateamsince1982,thecurrentExecutiveCommitteeoftheBoard:LucBonnard,AlfredN.Schindler,andAlfredSpörri(lefttoright)
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SchindlerActivityReport2007StatementoftheBoardofDirectors
Outlook
Elevators & EscalatorsTheconstructionindustryislikelytoexperienceaslowdowningrowthin2008,althoughgrowthratesmaydifferfromregiontoregion.EconomicmomentumisexpectedtoweakeninNorthAmericaandcertainEuropeancountriesinparticular.FollowingitslaunchinEurope,Schindlerwillintro-ducethenewSchindler3300productlineinothercountriesin2008,thusstrengtheningitsmarketpositionintheresidentialconstructionsegment.
ALSOIn2008,ALSOwillstrivetofurtherimproveprofitabilityandexpectsGroupnetsalestosignificantlyexceedCHF5billionandnetprofittototalapproxi-matelyCHF30million.
GroupBasedonthisassessment,andexcludinganyunforeseeableevents,itisan-ticipatedthatSchindlerwillreportanetprofitofoverCHF630millionforthefinancialyear2008.
Thank you Theexceptionalmotivationandpersonalcommitmentofallemployeeswasonceagainthedrivingforcebehindthecompany’sperformance.ItwasonlythankstotheeffortsofSchindler‘sstaffthatitwaspossibletohandlethelargevolumeofworkinallareasthatresultedfromabove-averagegrowthandmeasurestoachievefurtherproductivitygains.TheBoardofDirectorsandtheManagementCommitteeswouldliketoexpresstheirthankstoallemployeesfortheirconsiderableefforts,aswellastoallofSchindler‘sclientsfortheirlongstandingloyalty.
AlfredN.Schindler LucBonnardChairmanoftheBoard ViceChairmanoftheBoardofDirectors ofDirectors
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Elevators&Escalators
Personalstyle.Alwaysinfashion.
Foreveryproduct,awiderangeofcar
fittings,panels,lights,andhandrailsis
availabletomatchalldifferentdemands
andtastes.Styleincluded.
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SchindlerActivityReport2007Businessreview
Businessreview
General market trends
EuropeWesternEuropeexperiencedgoodeconomicgrowth.Theresidentialcon-structionsegmentbenefitedmostfromthistrend,whiletheremainingovercapacitiesintheofficesegmentcontinuedtoimpactthecommercialconstruction.Pricingpressurepersistedinallsegments.Inthesecondhalfof2007,severalEuropeancountriessawaslightslowdowninthecon-structionindustry.
North, Central, and South AmericaTheNorthAmericaneconomybegantolosemomentumasaresultofthemortgagecrisisinthehousingmarket.This,inturn,begantoimpactthestronggrowthinthecommercialconstructionsegment.
Brazilcontinuedtoachievegoodgrowth,reflectingafurtherreductionininterestratesandtheincreasedavailabilityofcredit.InmostothercountriesinLatinAmerica,thegrowthrateslackenedassupplyexceededdemandintheresidentialconstructionsegment.Thiswaspartlyoffsetbyanincreaseincommercialconstruction.
Asia/PacificMostcountriesintheregioncontinuedtoachieveverystrongeconomicgrowth,whichcontributedtothehealthylevelofactivityinallthesegmentsoftheconstructionmarketinChina,SoutheastAsia,andAustralia.InJapan,Korea,andNewZealand,thecommercialconstructionsegmentexperi-encedstablegrowth.
Eastern Europe, Middle East, India, and AfricaAllthemarketswithinthisregioncontinuedtoachievegrowth.InSoutheastEurope,RomaniaandBulgariareportedexceptionallystronggrowthrates.InthePersianGulfandtheMiddleEast,therealestateboomcontinuedandthesectorbegantoshowsignsofoverheating.TheIndianmarketcontin-uedtoachieverapidgrowth,creatingmanynewbusinessopportunities.
Personalstyle.Alwaysinfashion.
Foreveryproduct,awiderangeofcar
fittings,panels,lights,andhandrailsis
availabletomatchalldifferentdemands
andtastes.Styleincluded.
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Elevators&Escalators
Good qualitative growth
Europe
Balanced growth Inviewofthehighlevelofcapacityutilizationintheareasofproduction,logistics,andinstallation,Schindlerfocusedonensuringthebalancedgrowthofneworders.Thisledtoaslowergrowthratethaninpreviousyears.
Leading productsInthehighlycompetitiveresidentialconstructionsegment,thestrongdemandfortheinnovativeSchindler3300elevatorproductlinecontinued.TheSchindler6200modernizationprogramachievedaverygoodlevelofacceptancewithinthemarketduringthereportingyear.ThegrowingdemandformodernizationismainlydrivenbytheimplementationoftheEUSafetyNormforExistingLifts(SNEL),aswellasbytheagestructureofexistinginstallations.TheSchindler6200modernizationprogramaccountedforasignificantproportionofEuropeanmodernizationbusinessduring2007.
Stable growth in the service businessThelargebacklogofordersforthesuccessfulSchindler3300residentialelevatorproductlinewasoneofthemaindriversofgrowthintheservicesegment.Eventhoughcompetitionhasintensified,Schindlerachievedimportantgrowthintheservicebusiness.
InallWesternEuropeanmarkets,therolloutofthenewSchindlerExcellenceservicecontractsandtheSchindlerScoreCardwascompleted.TheSchindlerScoreCardtoolenablesclientstoaccessup-to-dateonlineinformationabouttheperformanceandconditionoftheirinstallationsatanytime.Schindlerhasalsointensifieditsfocusonclientrequirementsthroughitsserviceleaderandkeyaccountmanagementconcepts,thusfurtheren-hancingitsrangeofserviceofferings.
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North, Central, and South America
Good level of new installation orders in North AmericaTheelevatorbusinessinNorthAmericaonceagaingeneratedaveryhighlevelofordersfornewinstallations.Schindleralsoreportedanincreasingdemandforthestate-of-the-artSchindlerIDaccesscontrolsystem,whichstrengthenedthebacklogofmodernizationorders.
Schindlermaintainedaleadingpositionintheescalatormarket.TheClintonplantenhanceditsmanufacturingcapabilitiestoincludetheSchindler9700escalator,whichisspeciallydesignedtomeettheneedsofpublictransportfacilitieswithveryhighvolumesofpassengertraffic.
Strengthening of the service businessToexpanditsserviceportfolioinNorthAmerica,SchindleracquiredservicecompaniesbasedinNewYork,Washington,andToronto,eachofwhichwillincreaseitsgeographicalcoverageandthedensityofitsserviceportfolio.
Tofurtherimproveitsservicebusiness,Schindlerconsolidatedcertaintech-nicalsupportoperationswithinitsCenterforServiceExcellenceinHolland,Ohio.Asaresult,theserviceengineeringandPCboardrepairfunctionsbasedinSidneyandtheclientservicenetworkandserviceengineeringop-erationsbasedinMorristown,NJ,weretransferredtoHolland.Thecentral-izationofthesefunctionswillenableSchindlertoenhanceknowledgesharingandtoleverageefficienciesinordertooptimizeclientservice.
Market leadership in Latin AmericaDespitecontinuedpricingpressureinLatinAmerica,Schindlerretaineditsclearmarketleadershipinallsegmentsasaresultofitscompetitiveproducts.Strongsalesofnewinstallationsinpreviousyearsledtogoodlevelsofor-ganicgrowthinthecompetitiveservicebusiness.Ongoinginitiativestofurtherenhanceclientsatisfactionalsohadapositiveimpactonthesizeoftheserviceportfolio.
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Elevators&Escalators
Asia/Pacific
Leading position in the escalator and high-rise elevator businessSchindlermaintaineditsleadingpositionintheescalatorandhigh-riseelevatorsegmentsasaresultofitsstrongperformanceinbothareas.Inthehigh-risesegment,itwasparticularlysuccessfulintheareaofhigh-endcommercialconstructioninChina,Macau,Singapore,andIndonesia.Esca-latorsalesinChina,Australia,andNewZealandincreasedsubstantially,resultinginasolidleadershippositionintheescalatormarket.SchindlerwontheordertosupplyelevatorsfortheprestigiousAucklandInternationalAirportproject,whichwillincreasethevisibilityoftheSchindlerbrandinthisregion.
Modernization – a new growth sectorGroupmodernizationsolutionsandadvancedtrafficmanagementandaccesscontrolsystemshavecreatednewopportunitiesfororganicgrowthinAustralia,NewZealand,andHongKong.Schindlerwonanumberofmodernizationorders,includingthecontractfortheSydneyCBDcommer-cialofficebuilding,whichisthelargestmodernizationprojectinAustralia.
Quality and safetySchindlerexpandeditsactivitiesintheregionthroughinitiativessuchasthelaunchoftheSchindler7000globalhigh-riseelevatorandothernewprod-ucts.Asaresult,itwasnecessarytoadjustthesizeofitsworkforceandtoadaptitsprocesses.Inthecourseofthisexpansion,Schindlermadetarget-edinvestmentsintrainingtoensureitshighstandardsofqualityandsafetyforbothitsemployeesandtheindividualsusingitsproducts.
Thesemeasureshadapositiveimpactonclientsatisfaction.
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Eastern Europe, Middle East, India, and Africa Schindlersucceededinstrengtheningitsmarketpositiondespitefiercecom-petition,andcontinueditsexpansionthroughorganicgrowthanditsentryintonewmarkets.
Strong performance in growth marketsSchindlerperformedextremelywellinEasternEuropeandcontinuedtore-portstrongsalesoftheSchindler3300andSchindler5300elevatorproductlines.Italsosignificantlystrengtheneditsmodernizationbusiness.ItsnewoperationsinCroatiaachievedgoodprogress,whileitsnewlyestablishedpresenceinBulgariaenabledittobenefitfromthedynamicgrowthofthismarket.
SchindleralsostrengtheneditsoperationsinRussia.Moscow’sNorthstarTowerwillbethefirsthigh-risebuildinginRussiatobefittedwithSchindlerdouble-deckelevators.Followingitscompletionin2008,the230-meterofficetowerwillofferimpressiveviewsoftheMoscowskyline,includingoneofEurope’stallestbuildings–theFederationTower–thatwillalsobeequippedwithSchindlerproducts.
TheconstructionofTheAvenues,apremiershopping,leisure,andbusinesscenterinKuwait,beganin2007.Oncecompleted,itwillbethelongestshoppingmallintheworld.Schindlerwillsupply40elevatorsand42esca-latorsandmovingwalksforthisprestigiousproject.
InIndia,Schindlermanagedtostrengthenitsmarketpositiondespitein-creasedcompetition,andsecuredordersforalargenumberofelevatorandescalatorprojectssuchasResidenceAntilia,aluxury173-meterglasspalacebeingconstructedinMumbai.SchindlerwillsupplysevenSchindler7000high-riseelevatorsandanumberofSchindler5400elevatorsfortheproject.
InSouthAfrica,whichispreparingtohosttheFootballWorldCupin2010,Schindlerachievedagoodlevelofsalesinthenewinstallationsandmod-ernizationbusiness.Forexample,itwillsupply50elevatorsand46escalatorsaspartofthehigh-profileexpansionoftheO.R.TamboInternationalAir-portinJohannesburgandCapeTownInternationalAirport.
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Outlook
EuropeTheeconomicslowdownthatisexpectedinEuropeisalsolikelytoimpactontheconstructionindustry.Schindleriswellpositionedinallsegmentsofthenewinstallationsbusinessandhasacompetitiveadvantageasaresultofitsinnovativeproductrange.Stronggrowthisexpectedinthemodern-izationbusiness.Continuedprocessrefinementsandadvancedtechnologywillfurtherimproveefficiencyintheservicebusiness,thusenablingSchindlertofurtherenhanceitsclientfocus.
North, Central, and South AmericaDemographicsandrapidlygrowingconurbationswillcontinuetodrivede-mandinthecommercialconstructionsegment.However,theslowdownineconomicgrowthandthetighteningoflendingstandardswillleadtoade-celerationincertainregionalmarkets.ThiswillonlyhaveamarginalimpactonSchindler’soperationsinviewofitslargebacklogofnewinstallationorders.
LatinAmericaexpectstheexpansionofconstructionactivitiestoexceedGDPinmajormarkets,partlyreflectingthereboundinthecyclicalcommer-cialconstructionsector.Thisgrowthwillmainlybenefittheresidentiallow-andmid-risesegments.Schindlerwilllaunchnewproductsintheseseg-mentsandisthereforeconfidentthatitwillbeabletomaintainitsmarketleadershipin2008.
Asia/PacificTheoverallgrowthtrendisexpectedtocontinuein2008,albeitataslowerpace.Schindleranticipatesthatitwillbeabletofurtherstrengthenitslead-ingpositioninthehigh-riseelevatorandescalatorsegments.Anewresi-dentialelevatorproductlineshouldboostsales,especiallyintherapidlygrowingresidentialsegmentinChinaandSoutheastAsia.
Eastern Europe, Middle East, India, and AfricaGrowthisexpectedtocontinueasaresultofongoingurbanization,foreigndirectinvestment,andincreasingpurchasingpower.ThelaunchofnewproductswillenableSchindlertofurtherstrengthenitssolidpositioninthesemarkets.
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SchindlerActivityReport2007Urbanmobility
Urbanmobility
Urban mobility: Schindler’s contribution to society Citiesandurbandevelopmentonlyreallystartedtofulfiltheirpotentialoncearchitectureandurbantransportcametogethertomaketallbuildingspos-sible.Twohundredyearsago,just3%oftheworld’spopulationlivedinsidecitywalls,eventhoughcitieshadbeenaroundformillennia.
Withthearrivalofmodernarchitectureandtheelevator,citiesweresudden-lyabletoexpandskywards.Atfirst,growthwasslow:bythemid-20thcentury,therewerestillonlytwocities–LondonandNewYork–withmorethaneightmillioninhabitants.
Urban futureIn2008,forthefirsttimeinhistory,morethanhalfoftheworld’spopulationwillbelivingincities,accordingtotheUnitedNations.By2025,morethan60percentwillbe,andwithinsevenyears–by2015–therewillbe33megacitieswithmorethantenmillioninhabitants.
Theexplosivegrowthofurbanizationiscreatingmyriadopportunities,pri-marilybybringingclosertogetherthepeople,goods,services,materialsandmarketsonwhicheconomiesandlivesdepend.Thebiggestchallengeswillbetokeeptheseexpandingandincreasinglydensemetropolisessup-pliedwithwaterandenergy,andtokeepthemmoving.Onlythenwilloururbanizingworldprosperanddevelopinasustainableway.
Mastering the mobility challengeSchindlerdefinesitsmissionasthehorizontalandverticalmovementofpeopleandgoodswithinurbanspaces,asefficientlyaspossible,accordingtoindividualneeds,acrosspublicandprivateareas.
Schindlerthusdevelopsurbanmobilityproducts–elevators,escalators,andmovingwalks–andoffersmobilityformassesaswellasindividuals.Schindler’ssystemsandproductscoverallformsofurbaninfrastructurefromlow-riseresidentialbuildings,throughstations,airportsandhospitals,tocommercialandhigh-risetowersstretchinguptohalfakilometerintothesky.Schindlerpioneeredthefirstdestinationcontrolsystemoveradecadeago,andhassincedevelopedsuchsystemstothepointwheretheysteerenormousvolumesoftrafficintoandwithinbuildings,aswellasprovidinggreaterconvenienceandsecurity.Schindlerensuresmobilityatalltimestoo,withaglobalnetworkofengineersandtechnicianslookingafterinstallations.
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SchindlerActivityReport2007Urbanmobility
Landmarks of tomorrowSchindler’sroleasurbanmobilityproviderismostinevidenceinthehigh-risesthatcharacterizetheworld’sgreatmetropolises.Thankstoitsinnovativetechnologiesandthehigh-performanceproducts,Schindlerisperfectlypositionedtoengineermobilityinthemostdemandingofconstructions.WhetherinHongKong’sICC(490m),Beijing’sWorldTradeCenter3(333m),Singapore’sBusinessFinancialCenter(225m),Moscow’sFederationTower(448m),Madrid’sTorreEspacio(236m),London’sHeronTower(202m)orNanjing’sGreenlandTower,PhaseII(450m),Schindlerhaswonthecon-fidenceofthemostdemandingclients.Everyday,Schindlermovesmorethan700millionpeopleworldwide.
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Importantorders
Austria ShoppingcitySeiersberg,Graz 7elevators,including3Schindler5400,1Schindler2400,and
3Schindler2600;and11Schindler9300escalators
LeobenWohnen,residentialbuildings,Leoben 21Schindler3300elevators
LinzWohnen,residentialbuildings,Linz 40Schindler3300elevators
WienerWohnen,residentialbuildings,Vienna Modernizationof90elevators
Belgium Gallo-RomeinsMuseum,Tongeren 4Schindler2400elevators
PlantinOfficeParc,officebuilding,Antwerp Modernizationof3Schindler5400elevatorswithMiconic10and
1Schindler3300elevator
BrugmannHospital,Brussels 6Schindler2400elevatorsand3Schindler5400elevators
LesTerrassesdel’Ecluse,residentialbuildingand
sportshall,Brussels 10Schindler3300elevators
CityConcorde,shoppingmallandcommercialcenter,
Bertrange,Luxembourg 5elevators,2Schindler9300escalators,and5Schindler9500movingwalks
France Technopôle,officebuilding,Meudon 22elevatorswithMiconic10,including18Schindler5400,2Schindler3400,and
2Schindler2400
MontpellierCityHall,Montpellier 11Schindler5400elevators,1freightelevator,and2Schindler9300AEescalators
Odysséum,shoppingmall,Montpellier 10elevators,including5Schindler5400,1Schindler5300,and
4Schindler2400;aswellas9Schindler9300AEescalatorsand
2Schindler9300AEmovingwalks
Germany MunichAirport 18elevators,includingmodernizationof16SchindlerEuroLiftelevators,aswellas
18Schindler9300escalatorsand6Schindler9500movingwalks
Bügelbauten(bookendbuildings)atBerlinMainStation,Berlin Modernizationof14elevators
AlexanderplatzD4,commercialcenter,Berlin 18Schindler9300escalators
Greece IKEA,Athens 3Schindler9300AEescalatorsand3Schindler9500movingwalks
FNAC,shoppingmall,Athens 2Schindler5400elevatorsand6Schindler9300AEescalators
Netherlands JeroenBoschHospital,DenBosch 29elevators,modernizationof5elevatorsandmaintenancecontractfor
34elevators
ABNAmroBank,officebuilding,Rotterdam Modernizationof13elevators,including6withMiconic10
ACTAUniversity,Amsterdam 9elevatorsand8Schindler9300escalators
Townhallandlibrary,TheHague Modernizationof8elevatorsandmaintenancecontractfor10elevators
KLMbuildingsSchipol-East,Amsterdam Maintenancecontractfor78elevators
Iceland Glerátorg,shoppingmall,Akureyri 1Schindler2600elevatorand2Schindler9300escalators
Skarfagardar2,warehouse,Reykjavík 1Schindler2600elevatorand1Schindler5300elevator
Akrahverfi,residentialbuildings,Gardabaer 13Schindler3300elevators
Italy Hospital,Ferrara 70elevators,including31Schindler5400,5Schindler5300,
7Schindler2600,and27Schindler2500;aswellas2Schindler9300AEescalators
4cruiseships(CostaLuminosa,CostaPacifica,RubyPrincess,
CarnivalDream)andSerenamegayacht,allbuiltbyFincantieri 135elevatorsand24Schindler9300escalators
CameradeiDeputati,ItalianParliament,Rome Modernizationof4elevators
IKEA,RiminiandParma 22elevators,including20Schindler2600and2Schindler5300;aswellas
4Schindler9300escalatorsand2Schindler9500movingwalks
HotelVillad’Este,Cernobbio Modernizationof6elevators
Europe
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Portugal GrupoOceânico–Belmar,hotelandresidentialbuildings,Lagos 38elevators,including32Schindler3300,3Schindler5300,and3Schindler5400
C.ComercialColombo,shoppingmall,Lisbon Modernizationof9Schindler5400elevators
C.ComercialVivacci,shoppingmall,Guarda,
CaldasdaRainha,Maia 24Schindler5400elevators,28Schindler9300escalators,and
10Schindler9500movingwalks
E.Leclerc,shoppingmall,Cascais,Bobadela,Algueirão,Lousada 4Schindler3300elevators,5Schindler2600elevators,and
10Schindler9500movingwalks
SededeAgênciaEuropeiadaDrogaeToxicodependência,
officebuilding,Lisbon 17elevators,including8Schindler3300,5Schindler3400,and2Schindler5300
Spain PalacioBuenavista,shoppingmall,hoteland
officebuilding,Oviedo 19elevators,including11Schindler5400,4Schindler2600,and
4commissionedproducts;aswellas12Schindler9300AEescalatorsand
6Schindler9500AEmovingwalks
LaPalmaAirport,Tenerife 24elevators,including22Schindler5400,1Schindler5300,and
1Schindler2600;aswellas12Schindler9300AEescalators,
12Schindler9500AEmovingwalks,and2liftingplatforms
EspacioACoruña,commercialcenter,ACoruña 3Schindler5400elevators,6Schindler2400elevators,
18Schindler9300AEescalators,and4Schindler9500AEmovingwalks
DolceVita,commercialcenter,ACoruña 2Schindler5400elevators,6Schindler2600elevators,
8Schindler9300AEescalators,and12Schindler9500AEmovingwalks
VirgendelRocíoUniversityHospital,Seville Maintenancecontractfor30elevatorsand1liftingplatform
Switzerland KleinMatterhorn,accesstoglacierpalace,Zermatt 2Schindler5400elevators
Migros,shoppingmall,Marin 16elevators,including8Schindler5400;aswellas4Schindler9300escalators
and20Schindler9500movingwalks
Hirschengraben33b,residentialbuilding,Lucerne Modernizationofoldestelevator(installedin1912)
United
Kingdom HeronTower,officebuilding,London 10Schindler7000double-deckelevatorswithMiconic10andSchindlerID,
3Schindler7000elevators,and5otherelevators;aswellas
2Schindler9300escalators
DS3EastCanaryWharf,officebuilding,London 12Schindler7000elevatorswithMiconic10,2Schindler5400elevators,and
3otherelevators;aswellas2Schindler9300escalators
PortlandHouse,officebuilding,London Modernizationof14elevatorswithMiconic10andSchindlerID
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BodegasMarquésdeRiscal;ElCiego,Spain
Salle3000,culturalcenter;Lyon,France
Sihlcity,shoppingmall;Zurich,Switzerland
SunriseTower;Zurich,Switzerland
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California JamisonProperties(ParamountPlaza),officebuilding,LosAngeles Modernizationof21elevators,including17withMiconicTXand
6withMiconicHXpress
DesertSpringsMarriottResort,hotel,PalmDesert Modernizationof18elevators,including14withMiconicTX
16000VenturaBuilding,officebuilding,Encino Modernizationof7elevators,including4withMiconicTXand
3withMiconicHXpress
ConcordGateway,officebuilding,Concord Modernizationof7elevatorswithMiconicTX
St.AgnesMedicalCenter,hospital,Fresno Modernizationof6elevatorswithMiconicTX
2000AvenueoftheStars,commercialbuilding,LosAngeles Maintenancecontractfor20elevatorsand18escalators
AmericanaatBrand,retailstores,Glendale 20Schindler9300AEescalators
BankofAmerica,officebuilding,Pasadena 10Schindler9300AEescalators
District
of Columbia TheSquare537Project,officebuilding,WashingtonDC 20Schindler500Aelevators
Florida MiamiInternationalAirport,NorthTerminal,Miami 16Schindler500Aelevators,8Schindler9300AEescalators,
2Schindler9300escalators,and2Schindler9500movingwalks
MiamiIntermodalCenter,airportandparkinghub
connectors,Miami 15Schindler500Aelevatorsand12Schindler9300AEescalators
Indiana BallStateUniversity,Muncie Maintenancecontractfor97elevators
Louisiana OneShellSquare,officebuilding,NewOrleans Modernizationof14elevatorswithMiconicTX
Maryland OneEastPrattStreet,officebuilding,Baltimore Modernizationof7elevators,including6withSchindlerIDand
1withMiconicTX
Minnesota FoshayTower,officebuilding,Minneapolis Modernizationof4elevatorswithMiconicTX
FirstNationalBank,officebuilding,St.Paul Maintenancecontractfor26elevatorsand8escalators
Nevada CityCenter,BlockA,hotel,residentialbuildingand
shoppingmall,LasVegas 10Schindler9300AEescalators
MGMCityCenter,BlockC,hotel,residentialbuildingand
shoppingmall,LasVegas 34Schindler9300AEescalators
New York NewYorkTimes,officebuilding,NewYork Modernizationof10elevators,including8withSchindlerID
30RockefellerPlaza,officebuilding,NewYork Modernizationof8elevatorswithSchindlerID
StateUniversityofNewYork,Syracuse Modernizationof4elevatorswithMiconicTX
HearstTower,officebuilding,NewYork Maintenancecontractfor21elevatorsand3escalators
BronxTerminalMarket,shoppingmall,NewYork 10Schindler9300AEescalators
FlushingTownCenter,shoppingmall,NewYork 16Schindler9300AEescalators
CarouselCenter,shoppingmall,Syracuse 16Schindler9300AEescalators
North Carolina InternationalHomeFurnishingsCenter,officebuildingand
shoppingmall,HighPoint Maintenancecontractfor31elevatorsand43escalators
Ohio HannaBuilding,officebuilding,Cleveland Modernizationof7elevators,including6withSchindlerID
Pennsylvania USXTower,officebuilding,Pittsburgh Modernizationof8elevatorswithSchindlerID
DuquesneUniversity,Pittsburgh Maintenancecontractfor59elevators
Puerto Rico HotelElConquistador,SanJuan 12Schindler9300AEescalators
Washington BankofAmericaFinancialCenter,officebuilding,Spokane Modernizationof8elevatorswithMiconicTX
North, Central, and South America
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Canada MontfordHospital,Ottawa 8Schindler400Aelevators
KingswayMall,shoppingmall,Edmonton 1Schindler330Aelevatorand6Schindler9300escalators
CanadianTire,shoppingmall,Ottawa 4Schindler330Aelevatorsand2Schindler9300escalators
Argentina MiradoresdelaBahía,residentialbuildings,BuenosAires 10Schindler3300elevators
ElSolardeSanIsidro,residentialbuildings,BuenosAires 6Schindler3300elevators
ClínicadeLaTrinidad,BuenosAires 10Schindler5300elevators
TorresMulieris,residentialbuildings,BuenosAires 14Schindler7000elevators
Brazil Arena,residentialbuildings,RiodeJaneiro 25Schindler300Lelevators
CaiçaraClub,residentialbuildings,PraiaGrande 14Schindler300Lelevators
SpazioFariaLima,officebuilding,SãoPaulo 9Schindler300Lelevators,including8withMiconic10
FloridaPenthouse,residentialbuildings,SãoPaulo 13elevators,including12Schindler300Land1SchindlerSmart
Chile TorreTitanium-LaPortada,officebuilding,SantiagodeChile 24elevators,including20Schindler7000
Mexico Vidalta,luxuryresidentialproject,MexicoCity 6Schindler7000elevators,16Schindler5400elevators,and1panoramaelevator
TrenSuburbano,trainstation,MexicoCity 7Schindler3300elevators,16Schindler330Aelevators,and
12Schindler9300escalators
PuntoSaoPaulo,shoppingcenter,hotelandresidentialbuildings,
Guadalajara,Jalisco 6Schindler7000elevatorsand7SchindlerNeoliftelevators
MarioPani,officebuilding,MexicoCity 8Schindler7000elevatorsand4Schindler5400elevators
PenínsulaVallarta,CimaRealGuadalajara,PenínsulaCancún,
residentialbuildings,PuertoVallarta,GuadalajaraandCancún 11SchindlerNeoliftelevators
Peru Capital,officebuilding,Lima 6elevatorswithMiconic10and2SchindlerEuroLiftelevators
R&VConsorcio,residentialbuildings,Lima 4SchindlerNeoliftelevators
TécnicasMetálicas,residentialbuildings,Lima 8Schindler100Lelevatorsand2SchindlerSmartelevators
Venezuela EdificioOperativodelMetrodeCaracas,officebuilding,Caracas 9elevators,including5Schindler7000withMiconic10,and
4SchindlerEuroLiftelevators
MetrodeMaracaibo,4subwaystations,Maracaibo 12SchindlerEuroLiftelevatorsand8Schindler9300escalators
TorreBel,officebuilding,Barquisimeto 7elevators,including4Schindler7000withMiconic10,2SchindlerNeolift,and
1SchindlerSmartelevator
MontañaHumboldt,residentialbuildings,Caracas 28Schindler100Lelevators
North, Central, and South America
40 SchindlerActivityReport2007Importantorders
HumanaBuilding,officebuilding;Louisville,USA
Capital,officebuilding;Lima,Peru Mandarim,residentialbuilding;SãoPaulo,Brazil
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TorresMulieris,residentialbuildings;BuenosAires,Argentina
WorldMarketCenter,commercialbuilding;LasVegas,USA
TorreLibertad,St.Regishotelandresidentialbuilding;MexicoCity,Mexico
“Monumental”subwaystation;Valencia,Venezuela
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Australia WestfieldDoncaster,shoppingmall,Melbourne 8Schindler5400elevators,12Schindler2600elevators,
27Schindler9300AEescalators,and14Schindler9500movingwalks
1ShelleyStreet,commercialbuilding,Sydney 12Schindler5400elevatorsand2Schindler2600elevators,
someincludingSchindlerID,aswellas2Schindler9300AEescalators
BishopSee,shoppingmall,commercialand
residentialbuilding,Perth 5Schindler7000elevators
60MargretStreet,commercialbuilding,Sydney Modernizationof18elevatorswithSchindlerID
SydneyCricketGround,sportsandentertainmentcenter,Sydney 2Schindler5400elevatorsand1Schindler2600elevator,aswellas
6Schindler9300AEescalators
Cambodia NagaWorldCasinoandHotel,PhnomPenh 11Schindler5400elevatorsand4Schindler9300AEescalators
China NanjingGreenlandPlaza,phaseI&II,shoppingmall,
hotelandofficebuildings,Nanjing 38Schindler7000elevatorsand35Schindler9300AEescalators
ShanghaiLuwan113#,shoppingmallsand
residentialbuildings,Shanghai 29Schindler5400APelevatorsand27Schindler9300AEescalators
BaokuangInternationalPlaza,hotel,officeand
residentialbuildings,Shanghai 41elevators,including22Schindler7000and19Schindler5400AP,
aswellas2Schindler9300AEescalators
JingLiangPlaza,commercialbuilding,Beijing 45Schindler9300AEescalatorsand2Schindler9500movingwalks
BeijingJinYuScienceDevelopmentResearchCenter,
officeandcommercialbuildings,Beijing 41elevators,including28Schindler7000,6Schindler300PCL,
4Schindler300PMRL,and3Schindler80L;aswellas
4Schindler9300AEescalators
Hong Kong TKOTLno.70,Area86,SiteAB,residentialbuildings 46elevators,including42Schindler7000and4Schindler5400,aswellas
6Schindler9300AEescalators
YLTL515,MaTinRoad,residentialbuildings 12elevators,including10Schindler7000and2Schindler5400
52–58ShaTsuiRoad,TsuenWan,industrialbuilding 8Schindler7000elevators
Indonesia KotaKasablanka,residentialandofficebuildingand
shoppingmall,Jakarta 64Schindler9300AEescalatorsand4Schindler9300escalators
GrandCity,shoppingmallandhotel,Surabaya 17elevatorsand50Schindler9300AEescalators
GandariaMainStreet,hotel,residentialandofficebuildingand
shoppingmall,Jakarta 50Schindler9300AEescalatorsand6Schindler9500movingwalks
MallofIndonesia,stage2,shoppingmall,Jakarta 56Schindler9300AEescalators
GrahaEnergi,commercialbuilding,Jakarta 18Schindler7000elevatorsand6SchindlerElegantMRLelevators
Japan IKEA,Hyogo,Osaka,Saitama 21Schindler9300AEescalatorsand4Schindler9500movingwalks
NishimuraJoyYashima,shoppingmall,Kagawa 2Schindler9500movingwalks
MrMaxMachida,shoppingmall,Tokyo 1Schindler9500movingwalk
Asia/Pacific
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Korea S-Trenue,residentialandcommercialbuilding,Seoul 5Schindler7000elevators,1Schindler5400elevator,and
8Schindler9300escalators
O2Grande,residentialbuildings,Gunsan 43Schindler5400elevators
E-mart,shoppingmalls,HanamandYeoju 6Schindler250Kelevatorsand20Schindler9500movingwalks
KoreanNationalHousingCorporation,residentialbuildings,
throughoutKorea 186Schindler250Kelevatorsand32Schindler5400elevators
Macau SheratonHotel 27elevators,including26Schindler7000
CityofDreams,Casinoandhotels 60elevators,including31Schindler7000and6Schindler5400,aswellas
10Schindler9300escalators
FourSeasonsHotel 49elevators,including22Schindler7000and12Schindler5400,aswellas
18Schindler9300AEescalators
Shangri-laHotel 27elevators,including26Schindler7000elevators
Malaysia KKInternationalAirport,KotaKinabalu 22Schindler5400elevators
Tijani,residentialbuildings,KualaLumpur 20Schindler3400elevators
KdnBukitAman,commercialbuilding,KualaLumpur 7Schindler7000elevatorsand10Schindler5400elevators
GoldisTower,officeandcommercialbuilding,KualaLumpur 7Schindler7000elevators,6Schindler5400elevators,and
2Schindler9300AEescalators
PuteriTower,commercialbuilding,KualaLumpur 13Schindler5400elevatorsand2Schindler9300AEescalators
New Zealand AucklandInternationalAirport,
expansionofArrivalsarea,Auckland 3Schindler5400elevators,1Schindler2600elevator,
2Schindler9300AEescalators,and7Schindler9500movingwalks
BritomartCharterhouseWestpac,officeand
commercialbuildings,Auckland 4Schindler5400elevatorswithMiconic10andSchindlerID
01FeatherstonStreet,officeandcommercialbuilding,Wellington 6Schindler500PelevatorswithMiconic10andSchindlerID
DowntownHouseRedevelopment,officeand
commercialbuildings,Auckland 4Schindler500Pelevatorsand2Schindler9300AEescalators
Philippines Shangri-laResort&Spa,BoracayIsland 15elevators,including13Schindler5400
Singapore BusinessFinancialCentre,officebuildings 43Schindler7000elevatorsand10Schindler5400elevators
UrbanEntertainmentCentreatVictoriaStreet,
commercialbuilding 9elevators,including8Schindler5400,aswellas
16Schindler9300AEescalators
YishunCentral,shoppingmall 4Schindler5400elevatorsand14Schindler9300AEescalators
CondominiumatSt.ThomasWalk,residentialbuildings 8Schindler7000elevators
Taiwan HHF–Ilan,shoppingmall,Taipei 15Schindler5400elevators,16Schindler9300AEescalators,and
12Schindler9500movingwalks
Carrefour,FY1,Taichung 6Schindler9300AEescalatorsand10Schindler9500movingwalks
Carrefour,Luchou,Taipei 16Schindler9500movingwalks
Thailand TheAvenuePattaya,commercialbuilding,Chonburi 4Schindler5400elevators,8Schindler9300AEescalators,and
4Schindler9300escalators
ThePanoCondominiumatRama3,residentialbuilding,Bangkok 13elevators,including8Schindler7000and5Schindler3400
CentralPlazaChaengWattana,shoppingmall,Bangkok 12elevators,including6Schindler7000and6Schindler5400
TheRoyalManeeyaTower,commercialbuilding,Bangkok 12elevators,including10Schindler7000and2Schindler5400
Vietnam PhucYenPlaza,shoppingmall,HoChiMinhCity 8SchindlerElegantelevatorsand4Schindler9300AEescalators
PacificBeerTower,officebuilding,HoChiMinhCity 8elevators,including4Schindler7000and4Schindler5400
SaigonPearl–Phase2,residentialbuildings,HoChiMinhCity 10Schindler7000elevators
Asia/Pacific
44 SchindlerActivityReport2007Importantorders
GreenlandTower,PhaseII;Nanjing,China OneShelleyStreet,commercialbuilding;Sydney,Australia
megaBOX,shoppingmallandofficebuilding;HongKong,China
TheCentral,shoppingmall;Singapore
45SchindlerActivityReport2007Importantorders
NovenaSquare,shoppingmall;Singapore
BusinessFinancialCentre;Singapore
Imagecredit:MarinaBayFinancialCentre
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SchindlerActivityReport2007Importantorders
Croatia AvenueMall,shoppingmallandofficebuilding,Zagreb 19Schindler5400elevatorsand14Schindler9300escalators
POS,residentialbuildings,Zagreb 23Schindler3300elevators
VMD,officeandresidentialbuildings,Zagreb 2Schindler5400elevatorsand7Schindler3300elevators
Czech Republic E-Gate,commercialbuilding,Prague 11elevators,including1Schindler5400,8Schindler3400,and1Schindler3300
TechnickécentrumCS,officeandcommercialbuilding,Prague 8elevators,including6Schindler5400
PalácTesnov,commercialbuilding,Prague 6elevators,including5Schindler5400
Bílinská,residentialcomplex,Prague Modernizationof11elevators
Egypt ElRehab,phase5extension,residentialbuildings,Cairo 43Schindler3300elevators
HighTown,residentialbuildings,Cairo 15Schindler3300elevators
GolfMall,shoppingmall,Cairo 2Schindler5300elevatorsand8Schindler9300escalators
BeauRivageHotel,Taba 8Schindler5400elevatorsand7Schindler5300elevators
Hungary ArénaPlaza,shoppingmall,Budapest 4Schindler5400elevators,13Schindler2600elevators,
14Schindler9300AEescalators,and9Schindler9500movingwalks
AgriaPark,shoppingmall,Eger 14elevators,including6Schindler5400,7Schindler3300,and
1Schindler2600;aswellas6Schindler9300AEescalatorsand
2Schindler9500movingwalks
KorzóShoppingCenter,Nyíregháza 10elevators,including6Schindler3300,2Schindler5400,and
2Schindler2600;aswellas8Schindler9300AEescalators
MillenniumCityCenter,officebuildings,Budapest 14Schindler5400elevatorswithMiconic10
India GlobalMall,shoppingcenter,Ludhiana 22Schindler9300AEescalators
LodhaITPark,officebuilding,Mumbai 29Schindler300Pelevators
CyberPark,commercialbuilding,Noida 28Schindler300PMRLelevators
ResidenceAntilia,residentialbuilding,Mumbai 7Schindler7000elevatorsand3Schindler5400elevators
ZSquare,shoppingmall,Kanpur 9elevators,including7Schindler300PMRLand2Schindler100PMRL,
aswellas18Schindler9300AEescalatorsand4Schindler9500movingwalks
SDCorporation,residentialbuildings,Mumbai 22Schindler3300elevators
Israel BeeriTower,residentialbuilding,TelAviv 4Schindler7000elevators
Nam5Tower,residentialbuilding,TelAviv 9elevators,including5Schindler7000and4Schindler5300
Kuwait TheAvenues,shoppingmall,Kuwait 40elevators,38escalatorsand4movingwalks
Libya AlJalaHospital,Tripoli 7Schindler5400elevators
Morocco HotelLesJardinsd’Agdal,Marrakech 16Schindler5300elevators
RobinsonClub,Agadir 13Schindler5300elevators
AsswakAssalam,commercialbuilding,Marrakech 12Schindler5300elevatorsand4Schindler9500movingwalks
Poland ArkadyWroclawskie,shoppingmall,Wroclaw 16elevators,including6Schindler5400,8Schindler2600,and2Schindler2400
CuprumArena,shoppingmall,Lubin 8Schindler5400elevatorsand4Schindler2600elevators
Renoma,shoppingmall,Wroclaw 31Schindler9300AEescalators
BelvedereCentrum,officebuilding,Warsaw 4Schindler7000elevators
PlatiniumTower,residentialbuildings,Warsaw 8Schindler7000elevators
Eastern Europe, Middle East, India, and Africa
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SchindlerActivityReport2007Importantorders
Romania TowerCenterInternational,officebuilding,Bucharest 7Schindler7000elevators,including6withMiconic10andSchindlerID
Russia NorthstarTower,officebuilding,Moscow 15elevators,including6Schindler7000double-deckwithMiconic10and
SchindlerID,and5Schindler7000withMiconic10andSchindlerID
MiraxPlaza,Tower1&2,officebuilding,Moscow 26Schindler7000elevators
Serbia DeltaCityBeograd,officebuildings,Belgrade 11Schindler5400elevators,8Schindler9300AEescalators,and
2Schindler9500movingwalks
PalataBelgrade,officebuilding,Belgrade 4Schindler7000elevators
Slovakia EuroveaInternationalTradeCenter,officeandresidential
building,hotelandshoppingmall,Bratislava 35Schindler5400elevators,2Schindler5300elevators,
36Schindler9300escalators,and8Schindler9500movingwalks
LakeSide,officebuilding,Bratislava 5Schindler7000elevatorsand4Schindler5400elevators
Slovenia Supernova,shoppingmall,Ljubljana 7Schindler5400elevators,1Schindler2400elevator,and
10Schindler9300AEescalators
ETTCelje,shoppingmallandcommercialcenter,Celje 2Schindler3300elevators,1Schindler5400elevator,and
2Schindler9300AEescalators
Tunisia HotelElMouradi,Tozeur 5Schindler5300elevators
Turkey AntaresAVM,shoppingmallandofficebuilding,Ankara 20elevators,including17Schindler5400,aswellas
12Schindler9300AEescalatorsand12Schindler9500movingwalks
EsparkAVM,shoppingmall,Eskishehir 12elevators,including11Schindler2600and1Schindler5300,aswellas
26Schindler9300AEescalatorsand2Schindler9500movingwalks
A1AVM,shoppingmall,Ankara 7Schindler5400APelevatorsand12Schindler9300AEescalators
TeresparkAVM,shoppingmall,Denizli 9elevators,including8Schindler5400AP,aswellas
10Schindler9300AEescalatorsand2Schindler9500movingwalks
Eastern Europe, Middle East, India, and Africa
48 SchindlerActivityReport2007Importantorders
AvenueMall,shoppingmallandcommercialbuilding;Zagreb,Croatia
StaryBrowarII,shoppingmall;Poznan,Poland
TheAvenues,shoppingmall;Kuwait
49SchindlerActivityReport2007Importantorders
SmartVillage,officebuilding;Giza,EgyptResidenceAntilia;Mumbai,India
NorthstarTower,officebuilding;Moscow,Russia
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ALSO
Numerouschallenges.Uniquesolutions.
Schindlerbearstheload:FromAtoB,up
anddown.Schindlerensuresyourgoodsare
transportedswiftlyandreliably.
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SchindlerActivityReport2007Businessreview
ALSO
Businessreview
ALSOGroup
NetsalesexceedCHF5billionforthefirsttime–nowNo.3inEuropeTheALSOGroupisaleadingproviderinthewholesaleandlogisticssectorforinformationtechnologyandconsumerelectronics(ICE).In2007,itcom-pleteditsfirstfullfinancialyearwithGNT.ALSO–togetherwiththeFinnishcompanyGNTHoldingthatitacquiredonSeptember1,2006–rankedasthethirdlargestICEdistributorinEuropeinthereportingyear.Itisalsothemarketleaderinfiveoftheninecountriesinwhichitoperates.
NetprofitofCHF15millionfor2007TheALSOGroupreporteda55%increaseinnetsalestoCHF5083millioninthereportingyear(2006:CHF3277million),thusexceedingtheCHF5billionmarkforthefirsttime.ALSOrecordedanoperatingprofitofCHF54millionandaconsolidatednetprofitofCHF15million.Theequityratiowas19%,reflectingtheacquisitionofGNT.AsofDecember31,2007,theALSOGrouphad1987employees(previousyear:2047).
ALSOexcludingGNT
BestresultinthehistoryofthecompanyTheITsectorinSwitzerlandandGermanybenefitedfrompositiveeconomictrends.Intermsofunitvolumes,thedemandforIThardwareandsoftwareproductsrosesteadilyfollowingarelativelyweakfirstquarter.Averagepricesdeclinedlesssharply,resultinginaslightincreaseinvaluein2007.Againstthisbackdrop,ALSOgainedfurthermarketshareinbothSwitzerlandandGermany.ALSO(excludingGNT)increaseditsnetsalesby18%toCHF2782millioncomparedtothepreviousyear(2006:CHF2351million)andreportedanoperatingprofitofCHF41million(2006:CHF33million).Witha17%riseinnetprofitaftertaxestoCHF28millioncomparedtothepreviousyear(2006:CHF24million),ALSO(excludingGNT)deliveredthebestresultinitshistoryin2007.InSwitzerland,ALSOachievedgrowthintheconsumerelectronics,high-endstorageandITconsumablessegments,whichwerede-finedasgrowthareasatanearlystage.Inthelogisticsservicessegment,ALSOnotonlystrengtheneditsbusinesswithexistingclientsbutalsoacquirednewclients.Initscorebusinessportfolio,ALSOexpandeditsmarketshareinSwitzerland–whereitisthepreferredsupplier–asaresultoftheconsolidationofthedistributionmarket.InGermany,ALSOreportedgrowthofmorethan20%forthefourthtimeinsuccessionandstrength-eneditspositionwithstrategicmanufacturers.Italsosecuredasubstantialshareoftheretailmarket.Comparedtothepreviousyear,ALSOgeneratedasignificantlyhigheroperatingprofitinbothcountries.
Thedifferentreportingstruc-tureandeliminationeffectsmaycauseindividualvaluesandpercentagestodifferslightlyfromthosereportedbyALSO.
52
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ALSO
GNTGroup
IncreasedprofitabilitySinceSeptember1,2006,ALSOhasheld50.1%ofthesharesoftheFinnishcompanyGNTGroup,whichoperatesinScandinavia,theBalticstates,andPoland.GNTisthemarketleaderinFinland,Estonia,Latvia,andLithuaniaandisoneofthelargestICEdistributorsinSwedenandNorway.Itestab-lishedasubsidiaryinPolandatthestartof2004.AfterreportingalossofCHF–19millioninthefirstsixmonthsof2007,GNTachievedanetprofitofCHF6millioninthesecondhalfoftheyearfollowingextensiverestructuringmeasures.ThisresultedinalossofCHF–13millionforthefullyear,repre-sentingasubstantialimprovementcomparedtothelossofCHF–22millionin2006.
Outlook
ALSOGroupEconomicgrowthintheeurozoneshouldcontinuein2008,althoughthefinancialcrisisintheUSA,theuncertaindevelopmentofoilpricesandtheUSdollar,andthestrongeuromayresultinlowergrowththanin2007.TheseuncertaintiesmayalsoimpacttheITsector,resultinginlowerlevelsofde-mandthancurrentlyexpected.Thismaybeaccompaniedbyamoderatede-clineintheaveragepricesofITandconsumerelectronicsproducts.ALSOthereforeexpectstoseeonlyamarginalincreaseinvalueintheITmarketsinCentralandNorthernEuropebutanticipatesthattheITmarketsinEasternEuropewillachievesustainedgrowth.ALSOisconfidentthatitwillbeabletoexpanditsstrongpositioninEuropewithinthisenvironment.
ALSOexpectsGroupnetsalestosignificantlyexceedCHF5billionand–ex-cludingtheuncertaintiesreferredtoabove–anetprofitofapproximatelyCHF30millionin2008.Inthemediumterm,ALSOexpectsafurtherincreaseinnetsalesandanetprofitofatleastCHF35–40million.
53
CorporateCitizenship
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CorporateCitizenship
Smoothingtheways.Pushingthelimits.
Thefrequencycontrolleddrivesystemguaranteeshigh
comfortduringthestart,motion,andlandingphases,as
wellashighstoppingprecision.It‘sthekindofprecision
youappreciateineverydaylife.Formobilityatalllevels
–inallsituations.
54 SchindlerActivityReport2007CorporateCitizenship
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Wide-rangingcorporatecommitmentsEachday,Schindlerelevatorsandescalatorsacrossallcontinentstransportover700millionpeople,aswellasarangeofgoods.Thecompany’slong-termbusinesssuccessdependstoasignificantextentonitsabilitytomeettheneedforsafe,comfortableandefficientmobilitysolutionsinamarket-orientedandprofitablemanner.ThemoresuccessfullySchindlercanachievethis,thegreaterarethebenefitsforitscustomers,employees,shareholdersandotherkeystakeholders.Schindler’scorporatecitizenshipactivitiesillustratehowthecompanyassumesitsrolewithinsocietyandful-fillsitsresponsibilitiestowardsvariousstakeholdersandtheenvironment.
AdedicatedcorporatecitizenshipwebsiteSchindlerreportedonitsenvironmentalperformanceinthefieldofproductecologyforthefirsttimeinitsAnnualReport2000.Itwentonestepfurtherin2005byextendingitsreportingtoincludedataonoperationalecology,aswellasdetailsofthecorporateprinciplesandvaluesthatguideitinitsbusinessactivities.Explanationsaboutthewaysinwhichitassumesitsso-cialresponsibilitycompletethisinformation.
Toavoidanyunnecessaryimpactontheenvironmentthroughtheuseofpaperandtransportation,Schindlerdecidedtopublishthesedetailedandregularlyupdatedinformationexclusivelyonaspeciallydesignedwebsite:http://corpcit.schindler.com.Thefollowingtopicsareexaminedindetailonthesite.
EnvironmentElevatorsandescalatorsaredesignedtohaveanaverageservicelifeof30years.Fromaproductecologyperspective,themainenvironmentalim-pactsoccurduringtheoperationoftheelevatorsduetotheirlongservicelife–andnotasaresultoftheactualmanufacturingoftheproducts.Ourprimaryobjectivewhendevelopingnewelevatorsandescalatorsisthere-foretoimprovetheirenergyandmaterialefficiencyincomparisonwiththemodelsthatarebeingreplaced.
Operationalecologyperformanceindicatorsrevealthatalmost60%ofthecompany’senvironmentalimpactisattributabletothefleetofover10000servicevehiclesinuseglobally.Particularattentionisthereforebeingpaidtoreducingfuelconsumptionbyoptimizingscheduledjourneysandbyse-lectingmoreenvironmentallyfriendlymodelswhenpurchasingnewvehicles.
CorporateCitizenship
55
CorporateCitizenship
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SchindlerActivityReport2007CorporateCitizenship
SafetyThesafetyofouraround43000employees,aswellasover700millionpassengerswhouseSchindlerproductseachday,isthecoreelementofourcorporateresponsibility.Consequently,ourqualityandsafetystandardsarenotrestrictedtoourproducts:theyapplytotheentirecompany.Acom-prehensiveinternalandexternalriskandsafetymanagementsystemwasthereforeestablishedatanearlystage,sinceSchindlerdoesnotwishto–andcannot–makeanycompromisesinthefieldofsafety.
EmployeesSchindlerbelievesthathighlymotivatedemployeesareaprerequisitetoful-fillcustomerneedsandthusguaranteebusinesssuccess.Thecompanythereforeaimstobetheemployerofchoiceinitsindustry.Anumberofdif-ferentmeasureshavebeendevelopedtoattractandretainthebestem-ployeesandtofurtherdeveloptheirskills,includingtheprovisionofahealthyandsafeworkplace,annualtraininganddevelopmentopportuni-ties,andeffortstosupportthepolitical,culturalorcharitablecommitmentsofstaff.
ValuesandsocialresponsibilitySchindler’svisionis“LeadershipthroughService”.TheSchindlernameisthussynonymouswithcustomerserviceanduncompromisingintegrity.
Tenyearsago,SchindlerbecamethefirstcompanyintheEuropeanelevatorindustrytointroduceaCodeofConduct,whichrequiresitsmanagementandemployeesinaround130countriesworldwidetoactinanethicalman-nerandinaccordancewithapplicablelegislation.Theimplementationof,andcompliancewith,theCodeofConductismonitoredbydedicatedCom-plianceOfficers,whohaveadirectreportinglinetotheAuditCommitteeappointedbytheChairmanoftheBoardofDirectors.
SchindlersubsequentlysignedthePartneringAgainstCorruptionInitiative(PACI)establishedbytheWorldEconomicForum(WEF),whichisaimedatpreventingallformsofcorruptionandbriberyworldwide.
56 SchindlerActivityReport2007CorporateCitizenship
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CorporateCitizenship
“Green“elevatorsEnergyconsumptionisrisingcontinuously.Reducingtheamountofenergyweuseisthereforeoneofthegreatestchallengesofourtimeandisreflect-edbythetrendtowardstheconstructionof“green“buildings.Elevatorenergyconsumptionisthereforeatopicofgrowinginterestamongpropertydevelopersandrealestatemanagers.
Schindlerbeganconductingcomprehensivestudiesasearlyas1999thatprovedthattheenergyconsumedduringtheoperationalphaseofitsproductshasthegreatestimpactontheirenvironmentalperformance.Thisknowledgeandthesystematicproceduresthatresultedfromithavesincebeenappliedtotheproductdevelopmentprocess.
EnvironmentallyfriendlySchindlerelevatorsTheconsiderationofecologicalrequirementsintheproductionofelevatorsisbestillustratedbytheSchindler7000high-riseelevator,whichisusedinskyscrapersandotherhigh-risebuildingsthroughouttheworld.
Whenmanufacturingthisproduct,Schindlerassignsprioritytomaterialswhichhavealowerenvironmentalimpactthanthoseusedinearlierprod-uctlinesandcanalsobedisposedofinanecologicallysoundmanner.InthecaseoftheSchindler7000high-riseelevator,largeenergysavingshavebeenachievedthroughthedevelopmentofsignificantlylightercompo-nents,theoptimizationoftheenergylevelsrequiredtolighttheelevatorcarsandforotherelectronicstandbyfunctions,andtherecuperationofenergywhiletheelevatorisrunning.Inaddition,Schindler‘srevolutionaryhallcalldestinationsystemoptimizestravelwithinthebuildingwhile,atthesametime,substantiallyreducingjourneytimesforpassengersatpeakperiods.
Anenvironmentalfactsheetcontainingdetaileddataisavailableuponrequest.ItdemonstratesthattheSchindler7000high-riseelevatormakesavaluablecontributiontowardsenvironmentallyresponsibleconductinthecontextofinternalmobility.
Furtherinformationisavailableat:http://corpcit.schindler.com
57SchindlerActivityReport2007CorporateCitizenship
Movingforward.Recoveringenergy.
Schindlerelevatorsaregreen.Neithertoolargenortoosmall.
Exactlytherightsize.Forward-looking,circumspectplanning
perceptiblyreducesenergyconsumptioninthemanufacturing,
delivery,andoperatingcycles.Schindlerhasnowgoneastep
further:Schindlerelevatorsevenreturndriveenergywhenin
motion.Anecologicallysoundapproach.
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Overviewoffinancialresults
Hardasnails.Softtouch.
Schindlerelevatorsareequippedwithanarray
ofinfrareddetectionsensors–allalongthedoor.
Hightechnologymarriedwithsolidmachinery
ensuresyoursafety.Sonothingcatchesyou
bysurprise.
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SchindlerActivityReport2007SummaryfinancialstatementsGroup
SummaryfinancialstatementsGroup
Thefiguresfor2003and2004aresignificantlyaffectedbycostsoftheR03restructuringandefficiencyimprovementproject.
Profitandlossstatement
InmillionCHF 2007 2006 2005 2004 2003
Operatingrevenue 13835 11106 8870 8254 7725
Operatingexpenses 13005 10380 8236 7733 7319
Operatingprofit 830 726 634 521 406
Antitrustfines 293
Financingactivities –51 –25 –60 –43 –68
Investingactivities – 10 –2 4 6
Profitbeforetaxes 486 711 572 482 344
Taxes 208 200 171 153 142
Netprofit: 278 511 401 329 202
SchindlerHoldingshareholders 254 488 377 308 184
Minorityinterests 24 23 24 21 18
1
BalancesheetDecember31
InmillionCHF 2007 2006 2005 2004 2003
Currentassets 4927 4917 3909 3595 3734
Non-currentassets 2236 2359 2140 1741 1486
Totalassets 7163 7276 6049 5336 5220
Currentliabilities 3827 3744 3004 2468 2433
Non-currentliabilities 1236 1355 1160 1373 1496
Totalliabilities 5063 5099 4164 3841 3929
Consolidatedshareholders’equity: 2100 2177 1885 1495 1291
EquityofSchindlerHoldingshareholders 1975 2060 1749 1376 1165
Minorityinterests 125 117 136 119 126
Totalliabilitiesandshareholders’equity 7163 7276 6049 5336 5220
1
Cashflowstatement
InmillionCHF 2007 2006 2005 2004 2003
Cashflowfromoperatingactivities 602 476 347 433 455
Cashflowfrominvestingactivities –11 –288 11 –729 8
Cashflowfromfinancingactivities –511 –319 –296 –123 –189
Translationexchangedifferences –28 –3 35 –36 11
Changeincashonhand 52 –134 97 –455 285
1
Valuesadjustedretrospectivelyin2005forrevisedandnewIAS/IFRSstandards1
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SchindlerActivityReport2007SummaryfinancialstatementsSchindlerHoldingLtd.
SummaryfinancialstatementsSchindlerHoldingLtd.
DividendpolicyThedividendpolicyapprovedandcommunicatedbytheBoardofDirectorsisearnings-relatedandprovidesforapayoutratioof25%–35%ofthecon-solidatednetprofit(excludingminorityinterests)(seealsopage68).
Profitandlossstatement
InmillionCHF 2007 2006 2005 2004 2003
Incomefromsubsidiaries 398 325 270 224 211
Otherrevenue 546 26 30 15 31
Totalrevenue 944 351 300 239 242
Depreciationandadjustments 28 72 76 67 80
Otherexpenses 42 46 47 39 35
Totalexpenses 70 118 123 106 115
Netprofitfortheyear 874 233 177 133 127
BalancesheetDecember31
InmillionCHF 2007 2006 2005 2004 2003
Currentassets 1052 711 759 654 1235
Non-currentassets 1615 1274 1328 1394 802
Totalassets 2667 1985 2087 2048 2037
Debentures 300 300 600 600 600
Otherliabilities 404 408 332 383 361
Totalliabilities 704 708 932 983 961
Sharecapital 7 7 7 7 7
Bearerparticipationcapital 5 5 5 5 6
Retainedearnings 1077 1032 966 920 936
Netprofitfortheyear 874 233 177 133 127
Shareholders’equity 1963 1277 1155 1065 1076
Totalliabilitiesandshareholders’equity 2667 1985 2087 2048 2037
Dividendpayment
InmillionCHF 2007 2006 2005 2004 2003
Registeredshares 118 93 65 51 44
Bearerparticipationcertificates 81 66 46 36 33
Totaldividendpayment 199 159 111 87 77
1
1
1
ProposalbytheBoardofDirectors1
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SchindlerActivityReport2007KeyfiguresGroup
KeyfiguresGroup
Thefiguresfor2003and2004aresignificantlyaffectedbycostsoftheR03restructuringandefficiencyimprovementproject.
Group
InmillionCHF 2007 2006 2005 2004 2003
Ordersreceived 14116 11720 9445 8428 7866
Operatingrevenue 13835 11106 8870 8254 7725
EBITDA2 958 848 751 669 566
in% 6.9 7.6 8.5 8.1 7.3
EBITA3 865 758 657 557 443
in% 6.3 6.8 7.4 6.7 5.7
EBIT4 830 726 634 521 406
in% 6.0 6.5 7.1 6.3 5.3
Antitrustfines 293
Netincomefromfinancingandinvestingactivities –51 –15 –62 –39 –62
Profitbeforetaxes 486 711 572 482 344
Netprofit 278 511 401 329 202
in% 2.0 4.6 4.5 4.0 2.6
Netprofitbeforeantitrustfines 571
in% 4.1
NetprofitofSchindlerHoldingshareholders 254 488 377 308 184
Cashflow5 391 623 490 442 368
Capitalexpenditure 103 112 98 82 81
Orderbacklog 6752 6024 5005 3723 3712
Personnelatyear-end(number) 45208 43679 40385 39443 39617
Consolidatedshareholders’equity 2100 2177 1885 1495 1291
Equityratioin% 29.3 29.9 31.2 28.0 24.7
1
Valuesadjustedretrospectivelyin2005forrevisedandnewIAS/IFRSstandardsEBITDA:Operatingprofitplusdepreciation/amortizationEBITA:OperatingprofitplusdepreciationEBIT:OperatingprofitCashflow:Netprofitplusdepreciation/amortization+/–changeinprovisions
1
2
3
4
5
Allocation of the Group’s net value added 2007
In %
Wages, salaries, and social service expenditures 77
Creation of reserves 8
Direct taxes 4
Antitrust fines 6
Dividends 4
Net interest charges 1
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SchindlerActivityReport2007KeyfiguresGroup
TheGroup’stotalvalueaddedistheincreaseinvalueachievedbythewholeGroupwithinacertainperiodoftime.
Thenetvalueaddediscalculatedbysubtractingthevalueofgoodsandser-vicesdrawnonbyothercompanies,aswellasdepreciations,fromoverallGroupincome.
ThedistributionoftheGroup’snetvalueaddedshowshowemployees,thegovernments,thecompanyitself,theshareholders,andotherprovidersoffinanceparticipateinthiseconomicallyrelevantamount.
Cash flow1
In million CHF
368 442 490 623 391
600
500
400
300
200
100
0
2003 2004 2005 2006 2007
Netprofitplusdepreciation/amortization+/–changeinprovisions1
0
1
2
3
4
5
6
7
8
9
10
EBITDA, EBIT, net profit
As % of operating revenue
EBITDA 7.3 8.1 8.5 7.6 6.9
EBIT 5.3 6.3 7.1 6.5 6.0
Net profit 2.6 4.0 4.5 4.6 2.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
20031 20041 2005 2006 2007
0
1
2
3
4
5
6
7
8
9
10
0
1
2
3
4
5
6
7
8
9
10
0
1
2
3
4
5
6
7
8
9
10
2
AfterR03projectcostsBeforeantitrustfines
1
2
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SchindlerActivityReport2007KeyfiguresGroup
Capital expenditure
In million CHF
81 82 98 112 103
150
100
50
0
2003 2004 2005 2006 2007
Return on equity (ROE)
In %
16.3 23.6 23.7 25.2 25.02
30
25
20
15
10
5
0
20031 20041 2005 2006 2007
ThefiguresaresignificantlyaffectedbycostsoftheR03restructuringandefficiencyimprovementproject.Beforeantitrustfines
1
2
Personnel at the end of year
Number
39 617 39 443 40 385 43 679 45 208
50 000
40 000
30 000
20 000
10 000
0
2003 2004 2005 2006 2007
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SchindlerActivityReport2007KeyfiguresElevators&Escalators
KeyfiguresElevators&Escalators
Thefiguresfor2003and2004aresignificantlyaffectedbycostsoftheR03restructuringandefficiencyimprovementproject.
Elevators&Escalators
InmillionCHF 2007 2006 2005 2004 2003
Ordersreceived 9023 8417 7447 6546 6246
Operatingrevenue 8752 7829 6890 6404 6133
EBITDA2 917 831 745 650 542
in% 10.5 10.6 10.8 10.1 8.8
EBITA3 832 747 654 543 431
in% 9.5 9.5 9.5 8.5 7.0
EBIT4 802 717 632 508 395
in% 9.2 9.2 9.2 7.9 6.4
Researchanddevelopment 109 111 110 114 139
Personnelatyear-end(number) 43221 41632 39762 38841 38643
1
Valuesadjustedretrospectivelyin2005forrevisedandnewIAS/IFRSstandardsEBITDA:Operatingprofitplusdepreciation/amortizationEBITA:OperatingprofitplusdepreciationEBIT:Operatingprofit
1
2
3
4
Invoiced sales 2007 by market
In %
Switzerland 8
EU countries 44
Rest of Europe 3
North, Central, and South America 29
Asia, Australia, Africa 16
Personnel 2007 by region
Total 43 221
Switzerland 4 132 9%
EU countries 16 438 38%
Rest of Europe 1 062 3%
North, Central, and South America 12 978 30%
Asia, Australia, Africa 8 611 20%
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SchindlerActivityReport2007KeyfiguresALSO
KeyfiguresALSO
Intheannualfinancialstate-mentsfor2006,theGNTGroupisonlyincludedforfourmonths(first-timecon-solidationasfromSeptember1,2006).
Thedifferentreportingstruc-tureandeliminationeffectsmaycauseindividualvaluesandpercentagestodifferslightlyfromthosereportedintheALSOAnnualReport.
ALSO
InmillionCHF 2007 2006 2005 2004 2003
Ordersreceived 5093 3303 1998 1882 1620
Operatingrevenue 5083 3277 1980 1852 1598
EBITDA2 66 37 27 37 29
in% 1.3 1.1 1.4 2.0 1.8
EBITA3 58 31 24 32 17
in% 1.1 0.9 1.2 1.7 1.1
EBIT4 54 29 23 31 16
in% 1.1 0.9 1.2 1.7 1.0
Personnelatyear-end(number) 1987 2047 623 602 974
1
Valuesadjustedretrospectivelyin2005forrevisedandnewIAS/IFRSstandardsEBITDA:Operatingprofitplusdepreciation/amortizationEBITA:OperatingprofitplusdepreciationEBIT:Operatingprofit
1
2
3
4
Invoicedsales2007bymarket
In%
Switzerland 22
EUcountries/otherEurope 78
Personnel 2007 by country
Total 1 987
Switzerland 412 21%
EU countries/other Europe 1 575 79%
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SchindlerActivityReport2007KeyfiguresSchindlerHoldingLtd.
KeyfiguresSchindlerHoldingLtd.
SchindlerHoldingLtd.
InmillionCHF 2007 2006 2005 2004 2003
Sharecapital 7 7 7 7 7
Bearerparticipationcapital 5 5 5 5 6
Shareholders’equity 1963 1277 1155 1065 1076
Debentures 300 300 600 600 600
Netprofitfortheyear 874 233 177 133 127
Dividendpayment 199 159 111 87 771
ProposalbytheBoardofDirectors1
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SchindlerActivityReport2007Keyfiguresregisteredshare/participationcertificate
Keyfiguresregisteredshare/participationcertificate
Market capitalization as of December 31
In billion CHF
4.2 5.8 6.5 9.5 9.1
9.5
9.0
8.5
8.0
7.5
7.0
6.5
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2003 2004 2005 2006 2007
Registeredshare
InCHF 2007 2006 2005 2004 2003
Numberofregisteredsharesoutstanding 73568200 73568200 7356820 7356820 7356820
Thereofintreasurystock 1799250 829123 102222 79941 81805
Nominalvalue 0.10 0.10 1.00 1.00 1.00
Pricehigh 84.50 76.00 530.00 475.00 345.00
Pricelow 65.50 52.00 425.00 338.00 176.00
Priceyear-end 73.00 76.00 519.50 475.00 343.00
P/EratioDecember31 35.8× 19.5× 17.2× 19.3× 24.0×
1
After10:1splitonMarch27,20061
Bearerparticipationcertificate
InCHF 2007 2006 2005 2004 2003
Numberofcertificatesoutstanding 50936400 51416400 5141640 5141640 5506990
Thereofintreasurystock 1633177 1153433 52956 59108 441850
Nominalvalue 0.10 0.10 1.00 1.00 1.00
Pricehigh 85.85 77.80 526.00 455.25 305.00
Pricelow 66.00 52.10 423.00 298.00 167.25
Priceyear-end 73.00 76.65 521.00 451.00 302.00
P/EratioDecember31 35.8× 19.7× 17.3× 18.3× 21.1×
1
After10:1splitonMarch27,20061
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SchindlerActivityReport2007Keyfiguresregisteredshare/participationcertificate
Informationperregisteredshareandbearerparticipationcertificate
InCHF 2007 2006 2005 2004 2003
Netprofit1 2.04 3.90 3.02 2.46 1.43
Cashflow1 3.14 4.98 3.92 3.43 2.86
Shareholders’equityatyear-end1 16.31 16.75 14.17 11.13 9.44
Grossdividend1 1.60 1.30 0.90 0.70 0.60
Pay-outratio% 36.4 33.3 29.8 28.4 41.9
Marketcapitalization(inmillion) 9089 9532 6501 5813 4187
2
3
Thefiguresfor2003to2005areadjustedforthe10:1splitonMarch27,2006ProposalbytheBoardofDirectorsBeforeantitrustfines
1
2
3
Net profit per registered share and bearer participation certificate1
In CHF
1.43 2.46 3.02 3.90 4.392
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0
2003 2004 2005 2006 2007
Adjustedafter10:1splitonMarch27,2006Beforeantitrustfines
1
2
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SchindlerActivityReport2007Keyfiguresregisteredshare/participationcertificate
BoththeregisteredsharesandthebearerparticipationcertificatesaretradedontheSWXSwissExchange.ThebearerparticipationcertificateshavethesamerightsastheregisteredshareswiththeexceptionofattendanceattheAnnualGeneralMeetingandvotingrights.
SignificantshareholdersAttheendof2007,registeredsharesofSchindlerHoldingLtd.wereheldby4066shareholders(previousyear:3617).
Onthesamedate,theSchindlerandBonnardfamilies,togetherwithpartiesrelatedtothesefamilies,heldwithinthescopeofashareholders’agree-ment50772838registeredsharesofSchindlerHoldingLtd.,correspondingto69.0%ofthevotingrightsofthesharecapitalenteredintheRegisterofCompanies.
Tickerandsecuritynumber
RegisteredshareBearerparticipation
certificate
Bloomberg SCHN SCHP
Reuters SCHN.S SCHP.S
Valor 002463821 002463819
ISIN CH0024638212 CH0024638196
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SchindlerActivityReport2007Financialcalendar
Financialcalendar
Financialcalendar
2008 2009
Annualresultsmediaconference February28 February17
OrdinaryGeneralMeetingSchindlerHoldingLtd. March26 March16
DateofSchindlerHoldingLtd.dividendpayment March31
PublicationofInterimReport August19 August18
1
SubjecttoapprovalofadividendpaymentbytheGeneralMeetingofSchindlerHoldingLtd.1
71
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SchindlerActivityReport2007Importantaddresses
Importantaddresses
Forfurtherinformationaboutourcompany,ourproducts,andourservices,pleasecontactoneofthefollowingaddresses:
SchindlerSchindlerHoldingLtd.Seestrasse556052HergiswilSwitzerlandTelephone+41416328550Fax +41414453134SchindlerManagementLtd.Zugerstrasse136030EbikonSwitzerlandTelephone+41414453232Fax +41414453134email@schindler.comwww.schindler.comCorporateCommunicationsRiccardoBiffiHeadofCorporateCommunicationsSchindlerManagementLtd.6030EbikonSwitzerlandTelephone+41414453060Fax +41414453144riccardo.biffi@ch.schindler.comInvestorRelationsBarbaraZächInvestorRelationsManagerSchindlerManagementLtd.6030EbikonSwitzerlandTelephone+41414453061Fax +41414453144barbara.zaech@ch.schindler.comStephanJudHeadofTreasurySchindlerManagementLtd.6030EbikonSwitzerlandTelephone+41414453119Fax [email protected]
Elevators&EscalatorsEurope,MiddleEast,India,andAfricaSchindlerManagementLtd.Zugerstrasse136030EbikonSwitzerlandTelephone+41414453232Fax +41414453134USAandCanadaSchindlerElevatorCorporation20WhippanyRoadPOBox1935Morristown,NJ07962-1935USATelephone+19733976500Fax +19733973619www.us.schindler.comLatinAmericaLatinAmericaOperationsPaseodelaReforma350–8°PisoCol.Juárez06600México,D.F.MéxicoTelephone+525550801400/12Fax +525552073336Asia/PacificSchindlerManagementAsia/PacificLtd.40WenshuiRoadShanghai200072P.R.ChinaTelephone+862156650991Fax +862166302791
ALSOALSOHoldingAGSeestrasse556052HergiswilSwitzerlandTelephone+41416303737Fax +41412661870www.also.com
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TheAnnualReportoftheSchindlerGroupfor2007consistsoftheActivityReportandtheFinancialStatementsandCorporateGovernance.
TheoriginalGermanlanguageversionisbinding.English,French,andSpanishtranslationsoftheActivityReportarealsoavailable.TheFinancialStatementsandCorporateGovernancearepublishedinGermanandEnglishonly.
Overallresponsibility,concept,andtextSchindlerManagementLtd.CorporateCommunicationsEbikon,SwitzerlandConceptandgraphicdesignInterbrandZintzmeyer&LuxAGZurich,SwitzerlandTypesetting,prepress,andprintingNZZFretzAGSchlieren,SwitzerlandImagephotographyMarkusBertschi,Switzerland