Engineering the detail, moving the world. - … the detail, moving the world. ... Our strategic collaboration with Hyundai Elevator Co. Ltd. in ... modern traction belt technology

Engineering the detail,moving the world.Schindler makes a significant contribution to urban mobility through its products and services: it is through vertical transportation solutions and the networking of vast numbers of people and huge quantities of goods that we can today live together in major conurbations. Schindler meets this challenge with its innovative products – day after day.

A clear focus on people combined with a constant dialog between form and function is essential in this context. Our products are easy to operate, have a long service life, and feature high-quality designs – ranging from a simple return pulley to the sophisticated hall call destination system. Working with town planners and architects, we make a decisive contribu-tion to the planning and design of urban mobility.

Schindler constantly moves people throughout the world – with environ-mentally sound and user-friendly technology.

Engineering the detail,moving the world. Activity Report 2007

Schi

ndle

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Schindler Activity Report 2007

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

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

6000

6500

Market capitalization 1981 to 31. 12. 2007

In million CHF

10 000

9 500

9 000

8 500

8 000

7 500

7 000

6 500

6 000

5 500

5 000

4 500

4 000

3 500

3 000

2 500

2 000

1 500

1 000

500

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1981 1985 1990 1995 2000 2005 2007


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


Schindlerinbrief

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Organization

Personnel 2007 by sector

In %

Production Elevators & Escalators 7

Installation and maintenance Elevators & Escalators 56

Engineering, Sales, Administration Elevators & Escalators 32

ALSO 5

Board of Directors Schindler Holding Ltd.

StatusDecember31,2007

AlfredN.Schindler Chairman MemberoftheExecutiveCommitteeoftheBoardLucBonnard ViceChairmanMemberoftheExecutiveCommitteeoftheBoardAlfredSpörri Member MemberoftheExecutiveCommitteeoftheBoardProf.Dr.PiusBaschera MemberDr.HubertusvonGrünbergMemberProf.Dr.KarlHofstetter MemberLordCharlesPowell MemberDr.AlexanderSchaub MemberDr.JenöC.A.Staehelin MemberRobertStuder Member

Management Committees

StatusDecember31,2007

Elevators & Escalators ALSOJürgenTinggren,President ThomasC.Weissmann,PresidentMiguelA.Rodríguez,DeputyPresident MarcSchnyder,DeputyPresidentEmmanuelAltmayer MichaelDressenErichAmmann HansWyssDr.RudolfW.Fischer PeterZurbrüggMichaelFüllemannDr.ChristophLindenmeyerJakobZüger

FordetailsseethechapteronCorporateGovernancestartingonpage99oftheFinancialStatements


Manygoals.Onedestination.

TheSchindlerTrafficManagementSystemcombinesthemostefficientuseofelevatorswithanexceptionalrideexperienceforeachpassenger.Intelligentplanningforaworldhungryfortransportationsolutions–evenforsmallpassengers.



Sharethespirit.Freedomofchoice.

Awiderangeofdecorlines–fromrefreshingcolorsorcooltechnicalskinstoexclusiveelegance–makescarinteriorscomealive.Additionalavailablefeaturessuchasthenewceilingspotsputtheambianceintherightlight.



Createdinthemind.Drawnonthescreen.

Thejourneyfromoutlinetoskylinebegins.Intheplanningphase,SchindlerDrawsoftwareletsyouswiftlyimplementyourideas.Youcanuseitsdrag-and-dropfunctiontointegrateescalatorsdirectlyintoyourblueprints.Foranexcitingnewdesignworld.



Onecontact.Forallcontingencies.

Intherarecaseofamalfunction,youcanpersonallycontactoneofSchindler’scallcenterstaffmemberswithpush-buttonconvenience.Schindleristhoroughlycommittedtokeepingyouonthemove–aroundtheclock.



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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Totheshareholders

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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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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Totheshareholders


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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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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Totheshareholders


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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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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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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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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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.

33SchindlerActivityReport2007Urbanmobility

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SchindlerActivityReport2007Importantorders

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


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

Europe

36 SchindlerActivityReport2007Importantorders

BodegasMarquésdeRiscal;ElCiego,Spain

Salle3000,culturalcenter;Lyon,France

Sihlcity,shoppingmall;Zurich,Switzerland

SunriseTower;Zurich,Switzerland

37SchindlerActivityReport2007Importantorders

HeronTower;London,UnitedKingdom

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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


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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


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



HumanaBuilding,officebuilding;Louisville,USA

Capital,officebuilding;Lima,Peru Mandarim,residentialbuilding;SãoPaulo,Brazil


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


Hong Kong TKOTLno.70,Area86,SiteAB,residentialbuildings 46elevators,including42Schindler7000and4Schindler5400,aswellas


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


O2Grande,residentialbuildings,Gunsan 43Schindler5400elevators

E-mart,shoppingmalls,HanamandYeoju 6Schindler250Kelevatorsand20Schindler9500movingwalks

KoreanNationalHousingCorporation,residentialbuildings,

throughoutKorea 186Schindler250Kelevatorsand32Schindler5400elevators

Macau SheratonHotel 27elevators,including26Schindler7000

CityofDreams,Casinoandhotels 60elevators,including31Schindler7000and6Schindler5400,aswellas


FourSeasonsHotel 49elevators,including22Schindler7000and12Schindler5400,aswellas


Shangri-laHotel 27elevators,including26Schindler7000elevators

Malaysia KKInternationalAirport,KotaKinabalu 22Schindler5400elevators

Tijani,residentialbuildings,KualaLumpur 20Schindler3400elevators

KdnBukitAman,commercialbuilding,KualaLumpur 7Schindler7000elevatorsand10Schindler5400elevators

GoldisTower,officeandcommercialbuilding,KualaLumpur 7Schindler7000elevators,6Schindler5400elevators,and


PuteriTower,commercialbuilding,KualaLumpur 13Schindler5400elevatorsand2Schindler9300AEescalators

New Zealand AucklandInternationalAirport,

expansionofArrivalsarea,Auckland 3Schindler5400elevators,1Schindler2600elevator,


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


YishunCentral,shoppingmall 4Schindler5400elevatorsand14Schindler9300AEescalators

CondominiumatSt.ThomasWalk,residentialbuildings 8Schindler7000elevators

Taiwan HHF–Ilan,shoppingmall,Taipei 15Schindler5400elevators,16Schindler9300AEescalators,and


Carrefour,FY1,Taichung 6Schindler9300AEescalatorsand10Schindler9500movingwalks

Carrefour,Luchou,Taipei 16Schindler9500movingwalks

Thailand TheAvenuePattaya,commercialbuilding,Chonburi 4Schindler5400elevators,8Schindler9300AEescalators,and


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


GreenlandTower,PhaseII;Nanjing,China OneShelleyStreet,commercialbuilding;Sydney,Australia

megaBOX,shoppingmallandofficebuilding;HongKong,China

TheCentral,shoppingmall;Singapore


NovenaSquare,shoppingmall;Singapore

BusinessFinancialCentre;Singapore

Imagecredit:MarinaBayFinancialCentre

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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,


AgriaPark,shoppingmall,Eger 14elevators,including6Schindler5400,7Schindler3300,and

1Schindler2600;aswellas6Schindler9300AEescalatorsand


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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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


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


ETTCelje,shoppingmallandcommercialcenter,Celje 2Schindler3300elevators,1Schindler5400elevator,and


Tunisia HotelElMouradi,Tozeur 5Schindler5300elevators

Turkey AntaresAVM,shoppingmallandofficebuilding,Ankara 20elevators,including17Schindler5400,aswellas

12Schindler9300AEescalatorsand12Schindler9500movingwalks

EsparkAVM,shoppingmall,Eskishehir 12elevators,including11Schindler2600and1Schindler5300,aswellas


A1AVM,shoppingmall,Ankara 7Schindler5400APelevatorsand12Schindler9300AEescalators

TeresparkAVM,shoppingmall,Denizli 9elevators,including8Schindler5400AP,aswellas


Eastern Europe, Middle East, India, and Africa


AvenueMall,shoppingmallandcommercialbuilding;Zagreb,Croatia

StaryBrowarII,shoppingmall;Poznan,Poland

TheAvenues,shoppingmall;Kuwait


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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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.

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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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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.


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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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“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

60


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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


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


Group

InmillionCHF 2007 2006 2005 2004 2003

Ordersreceived 14116 11720 9445 8428 7866


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

62


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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

63


1 2 3

4 5 6

7 8 9

0


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

64


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SchindlerActivityReport2007KeyfiguresElevators&Escalators

KeyfiguresElevators&Escalators



InmillionCHF 2007 2006 2005 2004 2003

Ordersreceived 9023 8417 7447 6546 6246


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


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%

65


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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


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


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


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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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

69


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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

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