Schneider Electric Shareholders' Meeting Approves Excellent 2005 Results and Implements New Mode of Governance

May 04, 2006
Schneider Electric
News

Summary

Schneider Electric shareholders met in Annual and Extraordinary Meeting yesterday, primarily to hear the report of the Board of Directors, approve the financial statements for 2005 and modify the governance mode of the company in order to set up a Management Board and a Supervisory Board. The Meeting was chaired by Henri Lachmann, Chairman and Chief Executive Officer.

Rueil Malmaison, May 4, 2006 - Schneider Electric shareholders met in Annual and Extraordinary Meeting yesterday, primarily to hear the report of the Board of Directors, approve the financial statements for 2005 and modify the governance mode of the company in order to set up a Management Board and a Supervisory Board. The Meeting was chaired by Henri Lachmann, Chairman and Chief Executive Officer. The Supervisory Board held its first meeting after the Annual and Extraordinary Shareholders’ Meeting. It appointed Henri Lachmann as its Chairman and Serge Weinberg as its Vice-Chairman. The Supervisory Board also appointed the Management Board, which has two members: Jean-Pascal Tricoire, Chairman, and Pierre Bouchut. The Chairman reviewed the highlights of 2005:

Strong sales growth and gradual change in the company’s growth profile, with an increasing contribution from emerging countries and active development in new businesses,

Strongly improved profitability, with significant increase in operating margin and a higher return on capital employed (ROCE),

Strong earnings growth — earnings per share up 22% — above the new2 company program’s targets, - Preparation for the succession and proposal of a new mode of corporate governance.Shareholders approved the proposed resolutions, which concerned:

Approval of the 2005 financial statements,

Payment of a net dividend of €2.25 per share, up 25% over the previous year. It will be payable at May 9, 2006,

Transformation of the mode of governance with the implementation of a Supervisory Board and a Management Board,

Election of the members of the Supervisory Board,

Financial authorizations given to the Management Board. The quorum was 43.9% and the resolutions were adopted with a majority vote of between 70.4% and 99.8%. Commenting on 2006 outlook, Henri Lachmann noted that Schneider Electric’s offensive growth strategy based on innovation and expansion in high-potential markets and new businesses allow it to fully benefit from favorable worldwide economic trends. Assuming these conditions, Schneider Electric anticipates for 2006 sales organic growth between 6% and 7%, noticeably above the target of its new² company program. Henri Lachmann emphasized Schneider Electric’s efficient business model based on a worldwide presence closer to customers, a strong ability to grow through acquisitions and sustained investment in innovation. Given these key strenghts, the strong resonance of new2 company program with employees, and the young and international management under Jean-Pascal Tricoire’s leadership, he expressed his full confidence in Schneider Electric’s ability to generate sustained growth and to offer an attractive return on investment for shareholders.Schneider Electric is the world’s power and control specialist. Through its world-class brands, Merlin Gerin, Square D and Telemecanique, Schneider Electric anticipates and satisfies its customers’ requirements in the residential, building, industry and energy and infrastructure markets. With 92,000 employees and operations in 130 countries, Schneider Electric generated sales of €11.7 billion in 2005 through 13,000 distributor outlets. Learn More

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