Press Release Brussels (Belgium), December 4, 2003 Telemecanique: 80 years of leadership in automation devices Pierre and André Blanchet founded Manufacture d’Appareillage Electrique in 1924. Four years later, the company changed its name to Telemecanique Electrique. 1924 - 1980 Telemecanique demonstrated its technological leadership from the day it was founded by inventing the first bar contactor. In 1925, the company developed the first thermal relays, float switches and pressure gauges. It also began producing 40 A contactors, timers, distribution boxes, pushbuttons, stop contacts and relays. Telemecanique developed thermomagnetic relays in the 1930s and presented the DRT-12 enclosed starter in 1935. In the 1950s, it developed the XB2-M series of pushbuttons, Canalis prefabricated busbar trunking and high frequency contactors. Over the years, Telemecanique engineers standardized Series B block contactors and developed production of industrial automation devices. In 1966, the company presented new techniques for digital control, weighing and measuring, speed control, elevator control and malfunction indication with the new Telestatic generation of static, transistor-based modules carrying out logic functions. It also developed the TM7, a new plug-in panelboard for centralized motor control. The Series D contactors, which became the world benchmark, were launched in 1973. The first TSP 100 PLCs came out in 1975 and the TSX 60 and 80 PLCs were brought to market in 1978. In 1960, manufacturing accounted for 10% of revenues while installation of equipment and systems accounted for 90%. These percentages inversed in the 1980s as Telemecanique became one of the world’s leading suppliers of electromechanical, pneumatic and electronic components for automating machines and industrial processes. 1980 - today All machines are run by controllers. Telemecanique entered the era of computer integrated manufacturing by getting the most out of the difference between early generation control equipment and today’s products. Its devices control the operations of a machine’s main parts. They also connect the machine to the workshop’s automated Investor Relations : Schneider Electric Alexandre Brunet Media contact : Schneider Electric Véronique Moine Michel Rochon Media contact : DGM Michel Calzaroni Olivier Labesse tel. +33 (0)1 41 29 70 71 fax +33 (0)1 41 29 71 42 www.schneider-electric.com Euroclear : 12197 tel. +33 (0)1 41 29 70 76 fax +33 (0)1 41 29 71 95 tel. +33 (0)1 40 70 11 89 fax +33 (0)1 40 70 90 46 tél. +33 Press Release (p. 2) production management system. Very early on, Telemecanique understood that control and information systems had to be compatible for this type of system to work. Backed by a brilliant manufacturing background, Telemecanique confirmed its leadership position in the automation market. Its equipment now covers four types of functions, each of which corresponds to a range of products: - Data acquisition using sensors, photoelectric cells, thermostats and pressure switches. - Data processing using industrial programmable logic controllers. - Human-machine interface using control screens, lights, keyboards and pushbuttons. - Power control using contactors, pneumatic regulators and speed drives. In data acquisition, Telemecanique has launched numerous sensor ranges. Highlights include the Osiris photoelectric sensors in 1996 and the Global Detection lineup in 2002, which combines inductive and photoelectric sensors, limit switches and pressure switches. In data processing, series 7 PLCs replaced earlier models in 1984 and the first Telway 7 local industrial network was brought to market. These products were followed by the TSX 17 micro PLC, X-Tel programming software, the TSX 07 nano PLC, the Micro and Premium PLCs and, in 2002, the Twido PLC. The human-machine interface lineup was expanded in 1980 with the new XB2-B series of pushbuttons and indicators. XBT terminals with screens and keyboards were launched in 1986 and the Harmony range of pushbuttons, indicators and illuminated indicator banks was introduced in 2000. Numerous power control ranges have been launched over the past 20 years, including GV1 electromagnetic circuit breakers in 1980, the Integral 32/63 contactor-circuit breaker (a world first) in 1983, new Series D contactors in 1990, TeSys D contactors in 2000 and TeSys U, the market’s first starter-controller, in 2002. Speed drives for motor control and monitoring have also been a key focus, with the first generation Altivar drives in the 1980s, followed by the Altivar 16 and 66 series, Altivar 08, 58 and 68 and, in 2002, Altivar 11, the smallest speed drive in its field. Telemecanique has matched its technological strength with vibrant business development. Very early in its history, the company looked to expand internationally. Its first subsidiary opened in Brussels in 1934, followed by another in Milan in 1935. By 1987, with 14,000 employees (of which nearly 40% outside France), Telemecanique was the world leader in variable-component contactors. That same year, it posted consolidated sales of FF 6.87 billion (€1.036 billion) and net income of FF 673 million (€102.59 million). It was the leading manufacturer of automation components in France and ranked second in Europe and third worldwide. Less well known, it was the leading maker of prefabricated busbar trunking, launched in 1953 and sold under the Canalis name. Its manufacturing Investor Relations : Schneider Electric Alexandre Brunet Media contact : Schneider Electric Véronique Moine Michel Rochon Media contact : DGM Michel Calzaroni Olivier Labesse tel. +33 (0)1 41 29 70 71 fax +33 (0)1 41 29 71 42 www.schneider-electric.com Euroclear : 12197 tel. +33 (0)1 41 29 70 76 fax +33 (0)1 41 29 71 95 tel. +33 (0)1 40 70 11 89 fax +33 (0)1 40 70 90 46 tél. +33 Press Release (p. 3) base was supported by 50 production units, 4,000 sales outlets and a worldwide network of subsidiaries. Telemecanique became part of Schneider SA in 1988 with 14,500 employees, 32 subsidiaries outside France and 4,100 sales outlets. It generated 58% of its sales outside France, of which 39% through its 15 European subsidiaries. In 1994, Telemecanique merged with Merlin Gerin to form Schneider Electric Industries SA. In 2003, Telemecanique became Schneider Electric’s single, global specialist brand for industrial control and automation. Pioneering social policy Telemecanique was already being described as a company with forward-looking labor policies back in the 1930s. It stood apart for such progressive concepts as employee share ownership and paid vacation, granted in 1931. A charter defined the company’s relationship with each of its members. Key concepts included recognition of individual initiative as the main source of group efficiency and the need to match compensation to effectiveness. Telemecanique’s corporate culture also put a priority on maintaining job levels, informing employees to win their support and respecting individual freedom. By 1948, a percentage of each capital increase was reserved for employees, who owned 18% of the company in 1959. Year after year, employee share ownership increased, with a corporate savings plan introduced in 1986 and a stock option plan in 1987. About Schneider Electric Schneider Electric Give the best of the New Electric World To everyone, everywhere, at any time Schneider Electric, the world's Power & Control specialist with leading global brands such as Merlin Gerin, Square D and Telemecanique, offers a comprehensive range of products and services for the following markets: residential, buildings, industry and energy and infrastructure. Schneider Electric's 74 800 employees generated sales of €9.1 billion in 2002 through 13,000 sales outlets in 130 countries. Investor Relations : Schneider Electric Alexandre Brunet Media contact : Schneider Electric Véronique Moine Michel Rochon Media contact : DGM Michel Calzaroni Olivier Labesse tel. +33 (0)1 41 29 70 71 fax +33 (0)1 41 29 71 42 www.schneider-electric.com Euroclear : 12197 tel. +33 (0)1 41 29 70 76 fax +33 (0)1 41 29 71 95 tel. +33 (0)1 40 70 11 89 fax +33 (0)1 40 70 90 46 tél. +33 Press Release (p. 4) The road to success – Telemecanique Telemecanique invented the first contactor in 1924 and quickly expanded its business to become a leading specialist in industrial control and automation. Starting in 1931, the company initiated a pioneering social policy that offered many benefits long before they were mandated by law. Telemecanique moved outside France early in its history and built a large network of subsidiaries worldwide between 1950 and 1988. 1924 Michel Le Gouellec acquired "Manufacture d'Appareillage Electrique" which became "Telemecanique Electrique" in 1928. André Blanchet filed a patent for the first bar contactor. The company began producing 40 A contactors, timers, distribution boxes, pushbuttons, stop contacts and relays. 1925 Development of the first thermal relays, float switches and pressure gauges. Introduction of a profit-linked incentive scheme. 1926 Creation of after-sales service. Agencies opened in Grenoble, Lille, Nantes, Metz, Lyon and other large French cities. 1928 First foreign agency opened in Belgium. 1931 All employees granted fifteen days of vacation. 1935 Telemecanique opened a high-power test center in Nanterre for research on contactor breaking power. Development of thermo-magnetic relays and introduction of the DRT-12 motor starter in an enclosure. 1937 Sales-linked incentive scheme eliminated and profit-linked incentive scheme extended to all employees. First corporate newsletter. Investor Relations : Schneider Electric Alexandre Brunet Media contact : Schneider Electric Véronique Moine Michel Rochon Media contact : DGM Michel Calzaroni Olivier Labesse tel. +33 (0)1 41 29 70 71 fax +33 (0)1 41 29 71 42 www.schneider-electric.com Euroclear : 12197 tel. +33 (0)1 41 29 70 76 fax +33 (0)1 41 29 71 95 tel. +33 (0)1 40 70 11 89 fax +33 (0)1 40 70 90 46 tél. +33 Press Release (p. 5) 1946 Consultative works council established and job grade scale considered. Monthly salary implemented for all employees. 1950 Development of XB2-M range, pushbuttons and lights. 1951 Creation of a network of exclusive distributors in France. 1953 Introduction of Canalis busbar trunking for low and medium power distribution in buildings. 1954 Agreements with Merlin Gerin to rationalize production. Second generation of DRT-16 enclosed motor starters brought to market. 1957 Development of high frequency contactors. 1960-1970 Eleven subsidiaries established in Italy, the Netherlands, Sweden, Portugal, the UK, Norway, Switzerland, Canada, Spain, Denmark and the US. 1963 Production space: 61,700 square meters. Twelve plants. Workforce: 4,000 employees. Twelve subsidiaries outside France and 240 agents and distributors. 1964 Series B block contactors developed. 1965 New sales offices opened in Lille, Montpellier, Orléans and Toulouse. 1966 Development of the new Telestatic generation of static, transistor-based modules leveraging digital techniques for control and monitoring, weighing and measuring, motor control (with VAR 100/200 speed drives) elevator control and malfunction indication. Development of the TM7, a new plug-in panelboard for centralized motor control. Investor Relations : Schneider Electric Alexandre Brunet Media contact : Schneider Electric Véronique Moine Michel Rochon Media contact : DGM Michel Calzaroni Olivier Labesse tel. +33 (0)1 41 29 70 71 fax +33 (0)1 41 29 71 42 www.schneider-electric.com Euroclear : 12197 tel. +33 (0)1 41 29 70 76 fax +33 (0)1 41 29 71 95 tel. +33 (0)1 40 70 11 89 fax +33 (0)1 40 70 90 46 tél. +33 Press Release (p. 6) 1968 Employee profit sharing. Development of Series CA2-A auxiliary contactors and Series C contactors. 1969 Introduction of CA2-F automation relays. 1971-1988 Fourteen subsidiaries opened in South Africa, Australia, Austria, Colombia, Singapore Iran, Finland, Japan, Venezuela, Mexico, Greece, Argentina, Hong Kong and Turkey. 1973 Development of the new Series D contactors, which became the worldwide benchmark in their field. 1975 First TSP 100 programmable logic controller (PLC). 1978 Introduction of the first generation PLCs (TSX 80). 1980 New PLC launch with the TSX 60. Introduction of GV1 thermo-magnetic circuit breakers and XB2-B pushbuttons and indicator lights. 1981-1982 First XVA illuminated indicator bank. Series E contactors and TSX11/21 mini PLCs brought to market. 1983 World’ s first contactor-circuit breaker (Integral 32/63). 1984-1985 Launch of the Series 7 second generation PLCs, with TSX 47, 67 and 87. First Telway local industrial network. 1986-1987 Development of the XBT HMI terminal, with screen and keyboard. Investor Relations : Schneider Electric Alexandre Brunet Media contact : Schneider Electric Véronique Moine Michel Rochon Media contact : DGM Michel Calzaroni Olivier Labesse tel. +33 (0)1 41 29 70 71 fax +33 (0)1 41 29 71 42 www.schneider-electric.com Euroclear : 12197 tel. +33 (0)1 41 29 70 76 fax +33 (0)1 41 29 71 95 tel. +33 (0)1 40 70 11 89 fax +33 (0)1 40 70 90 46 tél. +33 Press Release (p. 7) 1988 Telemecanique became part of Groupe Schneider with 14,500 employees, 32 subsidiaries outside France, 4,100 sales outlets and sales of FF 8 billion. Launch of the TSX 17 Micro PLC. 1990-1992 Introduction of the Series D contactor range, X-Tel software for programming PLCs, and FTX 417/507 PC-compatible industrial laptops. 1993-1995 Merlin Gerin and Telemecanique were merged into Schneider Electric SA in 1994. Introduction of the new generation of Altivar 16 and 66 speed drives. Development of Series K contactors, GV2 thermo-magnetic circuit breakers, Integral 18 contactor-circuit breakers, Series F power contactors and the TSX 07 nano PLC. 1996-1999 Introduction of Osiris photoelectric cells, Harmony lights and pushbuttons, the Telemecanique Tego Dial and Tego Power solutions for deploying human-machine interface for motor starters, Altivar 08 and 58 speed drives, TSX 37 Micro PLC and the Premium automation platform. 2000-2001 Creation of TeSys, the new generation of circuit breakers, contactors and overload relays that builds on the Series D. The new line's Quickfit technology enables tool-less, wire-free connection, thereby reducing connection time by an impressive 50%. Introduction of the Zelio Logic programmable module. 2002-2003 Introduction of the Simply Smart concept comprising new, increasingly intelligent industrial control and automation ranges that are easy to install and open to the market’s principle communication standards. Products include Global Detection photoelectric and inductive sensors, limit switches and pressure sensors; TeSys U, the market’s first starter-controller; Altivar 11; Altistart 48; the Twido nano-PLC; Magelis industrial PCs; and Vijeo Look supervision software. In April 2003, Modicon, which became part of Schneider Electric in 1994, became the name of a Telemecanique product range. Modicon invented the first PLC in the United States in 1968. Investor Relations : Schneider Electric Alexandre Brunet Media contact : Schneider Electric Véronique Moine Michel Rochon Media contact : DGM Michel Calzaroni Olivier Labesse tel. +33 (0)1 41 29 70 71 fax +33 (0)1 41 29 71 42 www.schneider-electric.com Euroclear : 12197 tel. +33 (0)1 41 29 70 76 fax +33 (0)1 41 29 71 95 tel. +33 (0)1 40 70 11 89 fax +33 (0)1 40 70 90 46 tél. +33