Schindler1).pdfSchindler 7 Annual Report 2000 Schindler Group For the benefit of shareholders, it will be proposed to the Annual Gen-eral Meeting on April 9, 2001, to make a further

Activity ReportAnnual Report 2000

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Contents 2 Key figures

Statement of the Board of Directors5 Progress despite many hurdles

Innovation 200012 Technical revolution in elevator construction

Market profile elevators and escalators16 Europe22 Americas28 Asia/Pacific34 IMEA

41 ALSO

44 Organization

46 Financial statements Group, Condensed

48 Financial statements Schindler Holding Ltd., Condensed

50 Information for shareholdersCharts

Schindler’s environmental performance60 Our Contribution to the Environment

75 Important addresses

Illustration concept The full-page illustrations reflect theinnovative power of Schindler and ALSO,while the pictures in the text show new installations and events from theyear’s business activities.

Works of young artists enliven our busi-ness premises. We present examples of their work on the back covers of ourannual reports.

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Activity Report 2000of the Board of Directors ofSchindler Holding Ltd.,CH-6052 Hergiswil NW, Switzerland,to the Ordinary General Meeting of April 9, 2001

73rd Financial Year

2 Annual Report 2000 Schindler Group

Key figures 2000

Group 1999 2000Mio. CHF Mio. CHF ∆ in %

Orders received 7 695 8 750 +13.7

Operating revenue 7 657 8 530 +11.4

Operating profit 382 422 +10.5

Operating profit as % of operating revenue 5.0 4.9

Profit before minority interests 258 303 +17.4

Net profit 238 299 +25.6

Capital expenditure 158 157 –0.6

Shareholders’ equity 1 185 1 317 +11.1

Personnel at end of year (Number) 43 559 43 334 –0.7

The presentationof SchindlerEuro-Lift was one ofthe highlights ofthe 2000 businessyear. Car in glassand stainlesssteel, polished toa mirror finish

20001999199819971996

Return on equity ROE

In %

20

15

10

5

20001999199819971996

87507 6956 6046 3625 299

Orders received

In million CHF

9000

8000

7000

6000

5000

4000

3000

2000

1000

•

• 1998: IAS restatement

Dividends proposed by the Board of Directorsof Schindler Holding Ltd. 1999 2000

Registered share CHF 45.– CHF 50.– +11.1

Bearer participation certificate CHF 45.– CHF 50.– +11.1

For additional key figuresplease refer to page 50 and 56 of this Activity report


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Statement of the Board of Directors

Progress despite many hurdles

SchindlerAramid,the first fully syn-thetic elevator rope,revolutionizes theentire elevator sys-tem. One rope ismade from around300 000 filaments

Fluctuating between positiveand negative eventsThe launch of SchindlerEuroLift wasone of the high points of the report-ing year and another was the pre-sentation of the fully synthetic ele-vator rope, SchindlerAramid. On theother hand, the unexpectedly sharpslump in ALSO’s systems businesswas an unwelcome surprise. Be-tween these two important eventswere a number of exceptional si-tuations which prevented operatingperformance from improving as ra-pidly as hoped. Even so, the Group’sconsolidated net profit climbed by25.6% from the previous year (profitbefore minority interests +17.4%).

Although the Group has been pursu-ing ecological objectives for manyyears, Schindler’s environmentalperformance is presented for thefirst time in a special chapter of thisActivity Report (see page 60). Themajor progress achieved with prod-uct innovations in recent years, andthe fact that the Group’s CorporateTechnology and Supply Manage-ment was awarded the ISO 14001certificate at the end of 2000, pro-vided the stimulus to report regu-larly on environmental aspects fromnow on.

The scope of consolidation for thereporting year was unchanged rela-tive to the end of 1999. The previ-ous year’s consolidation alreadyincluded the acquisition during thatyear of Elevadores Atlas, which hassince been given unconditionalapproval by the Brazilian competi-tion authorities. The reporting yearwas the first year that companycontributed to the profit and lossaccount for 12 months (prior year 7 months).

Operational improvementbelow expectationsIn the year under review, the Schind-ler Group increased its operatingrevenue from CHF 7 657 million toCHF 8 530 million. The increase of11.4% was derived approximatelyhalf from internal growth, as well asfrom the positive effects of exchangerates and the first full-year consoli-dation of Atlas.

Consolidated operating profit roseby 10.5% from CHF 382 million toCHF 422 million. The operating mar-gin stagnated at 4.9% (previousyear 5.0%). One of the reasons forthis was at ALSO, where the unex-pectedly sharp slump in the systemsbusiness caused the margin to dropfrom 2.2% to 0.3%. On the otherside, the EBIT margin from elevatorsand escalators rose from 5.7% to6.3%. The target margin of 7.0%could therefore not be reached.However, in this connection, it isappropriate to mention the follow-ing: leaving aside extraordinaryexpenses at the China-SchindlerElevator subsidiary, and at the fac-tory in Schlatt, Switzerland, whichwill be closed at the end of June,2001, the EBIT margin was 6.9%.


Net income from financing andinvesting activities improved fromCHF –57 million in the previous yearto CHF –48 million. Although the fullamount of interest on the debentureissued in the previous year (CHF 450million net) was paid in the reportingyear, higher interest income and aconsiderably better result from for-eign currency transactions broughtan improvement overall.

Higher consolidated net profitConsolidated net profit for 2000closed at CHF 299 million, whichwas 25.6% higher than the previousyear’s value of CHF 238 million. Theprofit margin rose from 3.1% to3.5%.

Consolidated cash flow rose by26.7% from the previous year’s CHF329 million to CHF 417 million. Con-solidated orders received grew inthe reporting year by 13.7% (at con-stant exchange rates by 10.0%) to CHF 8 750 million (previous yearCHF 7 695 million). At the end of2000 the consolidated order backloghad risen by 0.6% (1.8% in local val-ues) from the previous year’s valueof CHF 3 689 million to CHF 3 713million.

The number of employees fell by320 to 43 334 at the end of 2000.

Dividend and capital structureof Schindler Holding Ltd.Schindler Holding Ltd. closed thereporting year 2000 with a net profitof CHF 104 million (previous yearCHF 95 million). The coming AnnualGeneral Meeting will be requestedto approve payment of a dividendincreased CHF 5.– compared to theprevious year to CHF 50.– per regis-tered share and bearer participationcertificate.

Jeffrey M. Cunningham, Member ofthe Board of Directors, whose termof office expires in 2001, will notstand for re-election. The Board ofDirectors thanks Mr. Cunninghamfor his valuable contribution.

At the Annual General Meeting onMay 8, 2000, it was decided toreduce the share and bearer partici-pation certificate capital by a total of1.7% by eliminating the securitiesacquired within the scope of therepurchase program by that date. Itwas also agreed at the meeting tomake a partial repayment of thenominal value of the registeredshares and bearer participation cer-tificates of CHF 15 each, and toreduce the capital correspondingly.These two changes came into force

on July 27, 2000. Details of thepresent capital structure are givenon page 56 of the Activity Report.

The program to repurchase a maxi-mum of 6% of the total nominalcapital extended until March 30,2001, has been further prolongeduntil 29 March, 2001, subject toapproval of the Swiss TakeoverBoard.

Schindler 9500 movingwalks at Fiumicino Airport,Rome, Italy

Polus City retail center with 4 moving walks and 2 escalators, Bratislava,Slovakia

Schindler 9300 escalators inthe John Lewis Partnershipdepartment store at WestQuai, Southampton, England

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For the benefit of shareholders, itwill be proposed to the Annual Gen-eral Meeting on April 9, 2001, tomake a further reduction in the no-minal value of the registered sharesand bearer participation certificatesfrom the present CHF 85 to CHF 50by corresponding repayment of CHF 35 per share and participationcertificate, with subsequent reduc-tion of the capital.

Progress in the elevators andescalators businessIn the elevators and escalators busi-ness operating revenue grew by11.2% from CHF 5 996 million toCHF 6 669 million. Operating profitincreased by 23.4% from CHF 422million (previous year CHF 342 mil-lion). This caused the operating mar-gin to climb from 5.7% to 6.3%, butit still fell short of the target level of 7.0%. As already stated, leavingaside extraordinary expenses inChina and at the Swiss factory inSchlatt, the operating margin was6.9%.

However, the overall operating per-formance of the elevators and es-calators business has substantiallyimproved, as the profit before inter-est, taxes, and depreciation (EBITDA)indicates: this increased by 27%from CHF 482 million to CHF 612 mil-lion, and the margin from 8.0% to9.2%.

Success with new productsThe new products met with wide-spread acceptance in the market.Orders received for elevators andescalators increased by 13.7% (atconstant exchange rates 8.8%) from CHF 6 028 million to CHF 6 852million.

Demand in the European elevatormarkets was quite brisk. In thesemarkets, machine room-less com-modity elevators continued to gainimportance. The SchindlerSmartMRL line of elevators matches thisdevelopment very well. In NorthAmerica, demand for the Schindler321 A hydraulic elevator and thenew Schindler 9300 escalator con-

Mail commercial center inHay Ryad, Rabat, Morocco

New factory for electroniccontrols, Schindler Elec-tronic (Suzhou) Co. Ltd.,Suzhou, China

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tinued unabated and led to highermarket shares. The successfulestablishment of the new Braziliancompany, Atlas Schindler, broughtabout a clear consolidation ofSchindler’s market position through-out South America. In Asia/Pacificdemand remained stable overall,although competitive pressureincreased further. In this climate,Schindler, with its new lines of ele-vator and escalator products, haspositioned itself well in all relevantsegments of the market.

Still no. 1 in escalatorsThanks to the completely renewedproduct range, which covers all mar-ket needs from department storesto airports, Schindler was able toexpand its leadership position in theworldwide escalators business. Fol-lowing the start-up of manufacturingin Brazil, Schindler can today pro-duce escalators in identical quality inSouth and North America, Europe,and Asia. In the third quarter, thefirst Schindler 9700 escalator, thenew product line specially designedfor the transportation segment, wasinstalled in Vienna’s Enkplatz sub-way station.

Innovation heightens competi-tiveness The company’s innovative power is undiminished. New products arebeing brought onto the market inrapid succession. Specially designedfor their target markets, they increasecustomer benefits at the same timeas being environmentally friendlier.And they bring about rejuvenation,homogenization, and simplificationof both the product range and theprocesses. Innovation is thereforedecisive for sustainably improvingthe company’s competitiveness.

An array of new products waslaunched in the reporting year: oneof these was a world premiere –SchindlerAramid, the first fully syn-thetic elevator rope. Due to its spe-cial characteristics it revolutionizesthe elevator system. In this connec-tion a first supply contract wassigned with Mitsubishi Electric.Other innovations are new elevatorlines: the SchindlerEuroLift for themid-range market segment, whichcontains numerous technological

innovations, the Schindler 500 P formid- to high-rise buildings, and thenew design variants of the success-ful SchindlerSmart MRL elevatorfamily. The Miconic 10 hall call desti-

Moving walks at John F.Kennedy Airport, New York,USA

Parque Duraznos retailcenter with 14 escalatorsand 4 elevators, MexicoCity, Mexico

Luxurious “Le France” com-mercial center, 12 elevators,Neuilly-sur-Seine, France

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nation system was developed fur-ther, and enhanced with the LiftLocbuilding security system. The onlyone of its type in the world, this ele-vator control system provides handi-capped passengers with specialadvantages: it recognizes blind pas-sengers, for example, by their mag-netic elevator cards, and voice-announces the car they should take.Passengers with walking difficultiesor in wheelchairs can use their ele-vator cards or press a special buttonto order a “taxi ride” and make theelevator doors stay open longer.There is more about these innova-tions starting on page 12 of theActivity Report.

At the start of 2001 the new Schind-ler 330 A hydraulic elevator withfully controlled drive was introducedin the USA. The start of 2002 willsee the launch of the new Schindler700 GL program of high-perfor-mance elevators, which for the firsttime have worldwide compatibility.

ALSO: success in distribution,slump in systems businessALSO had a difficult year. Therewere highly contrasting develop-ments in the two business divi-sions. While the Distribution Divi-

sion followed up on the previousyear’s good result and continued itspositive development, in the Sys-tems Division there was an un-expected sharp slump in businesswith large customers. ALSO never-theless increased its turnover by12.0% to CHF 1 861 million in theyear under review. On the otherhand, due to the lower level oforders in the systems business,operating profit was only just posi-tive. It amounted to CHF 6 million(1999: CHF 36 million).

The Distribution Division again im-proved its market position in the re-porting year, in both Switzerland andGermany. Capacity was increaseddecisively in both countries. Thelogistics center at Emmen (Switzer-land) was extended, and operationsstarted up at an additional locationin Brunswick (Germany). Moreover,introduction of new software hascreated the conditions required forALSO to position itself in the futureincreasingly as a provider of logis-tics services in the e-business field.

All over Europe, turnover in the large-customers segment of the industryfell unexpectedly sharply by 30 to60 percent. This falloff in orders alsomade structural changes necessaryat ALSO. Business recovered some-what in the second half-year, allow-ing the loss in the fourth quarter tobe reduced by a comparatively largeextent.

Panoramic elevators in ElJardin de Serrano commer-cial center, Madrid, Spain

Modernization contract forelevators at the headquar-ters of UNIDO, a memberorganization of UNO, Vienna,Austria

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Outlook for the Group:justifiable optimismThe operating result in the elevatorsand escalators business is expectedto improve further during the cur-rent year: firstly, in addition to theSchindlerSmart MRL, the Schind-lerEuroLift and Schindler 330 A ele-vator lines are now adding theireffect to improving the cost base,and secondly, old product lines cannow be eliminated, thereby reduc-ing the complexity of the productassortment.

Within this framework, Schindlerwill work very purposefully andunswervingly toward improving theincome situation further andincreasing the free cash flow.

The market prospects for the eleva-tors and escalators business are asfollows: In Europe, further growthwill be somewhat slower for macro-economic reasons. In North Amer-ica, the prospects are viewed asreasonably positive. In the core mar-kets of South America there will befurther progress toward economicrecovery, but currency risks cannotbe ruled out. In Asia, the pace ofrecovery is only increasing slowly.Impulses are expected to come pri-marily from residential constructionand infrastructure projects. Thecompetitive situation will becomemore acute generally.

For 2001 ALSO foresees furthergrowth in turnover and a sharp im-provement in profitability. For thefuture, there is confidence that turn-over and income can be sustainablyincreased in view of the growing de-mand for logistics services in e-com-merce as well as the medium-termincrease in Windows 2000 projectsfor large companies.

Based on these assessments, andsubject to unforeseeable influenceson income, today’s expectation isfor consolidated net profit in 2001 toshow a further increase relative tothe reporting year.

Thanks to employeesIn the hectic preoccupation withdaily business it is all too easy toforget that every day, all over theworld, more than 700 million peopleentrust themselves to Schindler ele-vators and escalators. This trust isearned by employees who dedicatethemselves tirelessly and depend-ably to the functioning and safety ofthose installations. In a similar way,ALSO’s employees provide a highquality of logistics and support ser-vices. The Board of Directors wishesto express to them all its sincerethanks and appreciation for thisgreat achievement.

Alfred N. SchindlerChairman of the Board of Directors

Luc BonnardVice Chairman of the Board of Directors

The new perma-nent-magnet drivewith Aramid rope.The drive is gear-less and requiresno lubricants,therefore is extre-mely environ-mentally friendly.Photo: RogerSchneider, Zurich

Carnival Victory sailing theocean. 27 elevators and 8 escalators from Schindlerprovide on-board mobility

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Innovation 2000

Technical revolution in elevator construction

On Tuesday May 2, 2000, Schindlerrevolutionized elevator constructionwith its official presentation of theworld’s first fully synthetic elevatorrope. SchindlerAramid is a technicalrevolution because the numerousadvantages of synthetic ropes makeit possible to redesign the entireelevator system. And not only fromthe technological aspect, but aboveall from the point of view of in-creased customer benefits.

At the same time, the newSchindlerEuroLift elevator for themid-range market segment waspresented, which is equipped with a gearless permanent-magnet drive, whose flexibility suits it to awide range of applications. Thisdemonstrates that this year, too,Schindler has continued unswerv-ingly with the innovation strategy itinitiated with SPRINT (Schindler’sProgram for Radical Innovative NewThinking). Sustained innovativepower secures for the company afront-line position in a market char-acterized by ever more exacting

requirements and increasingly toughcompetition.

SchindlerAramid – from steelrope to synthetic fiberA SchindlerAramid rope consists of 300 000 individual filamentsmade from the synthetic materialcalled aramid, is as strong as a steelrope but is four times as light. The smaller bending radius of theall-synthetic elevator rope allowsuse of smaller drives which can beaccommodated in the elevatorhoistway. This eliminates the needfor a machine room, and increasesthe floorspace available to architectsand building owners.

However, SchindlerAramid alsoimproves the safety of the elevator,since the all-synthetic ropes containconductive carbon fibers whichenable them to be permanentlymonitored electronically. Even thesmallest damage or wear is auto-matically detected and communi-cated to the elevator control. Ifnecessary, this brings the elevatorto the next stop and takes it out of operation. By means of remotemonitoring, the nearest service cen-ter is notified.

The new technology is protected byaround 20 patents worldwide andcertified by the German TÜV (Tech-nischer Überwachungs-Verein) foruse throughout Europe. Certifica-tions for the US and Japanese mar-kets have already been applied for.In addition, a contract has beenagreed with Mitsubishi, the largestelevator manufacturer in Asia, tosupply aramid ropes and exchangefurther elevator technologies andcomponents. There are also plans tolicense SchindlerAramid to other

elevator manufacturers on a step-by-step basis. A plant for the pro-duction of the aramid yarns is beingbuilt in Germany and will be put intooperation in mid 2001.

SchindlerEuroLift: view ofcar with compact controlcabinet on the top landingwhich eliminates themachine room

The SchindlerAramid fullysynthetic elevator rope ismuch lighter than steel andcan be monitored electroni-cally

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SchindlerEuroLift – modularflexibility for up to 30 storiesThe SchindlerEuroLift has nomachine room, is fitted with a gear-less permanent-magnet drive asstandard, and gives an outstandinglycomfortable ride. The new elevatorsystem is highly flexible and suit-

able for new installations and mod-ernizations in buildings with up tothirty stories. The elevator system’smodularity allows individual adapta-tion to customer-specific require-ments for car size, finish, rated load,and functionality. The new elevator’sintelligent control system can beadapted to the individual customer’srequirements on site. This onlyrequires a chip card similar to thoseused for mobile telephones. TheSchindlerEuroLift will first be intro-duced in Europe, followed by localversions in America and Asia.

Permanent-magnet drive –compact and gearlessThe compact construction ofSchindler’s permanent-magnet gear-less drive makes it the ideal motorin the era of machine room-less ele-vator systems. It ideally combineshigh efficiency and performancewith a wide spectrum of applicationfor loads from 320 to 1600 kg. Thedrive is 75% smaller, half the weight,and cuts power consumption by athird.

The control PCB of theSchindlerEuroLift containsnumerous diagnosticfunctions. They simplifyinstallation and servicing

The car ceiling of theSchindlerEuroLift accom-modates the maintenanceplatform. It providesmaximum safety for theservice technician

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Miconic 10 and LiftLoc – from elevator control to building securityMiconic 10, Schindler’s world-unique hall call destination system,was developed further during theyear by adding the LiftLoc functionwhich enhances the elevator controlinto a building security system.

The Miconic 10 hall call destinationsystem substantially increases theefficiency of multi-car elevator in-stallations by optimizing the way ithandles travel requests.

Before users enter the elevator car,they input their destination floor ona special ten-digit keypad like a tele-phone. This tells the elevator sys-tem where it has to go even beforethe car doors open. Traditional ele-vators only receive this informationafter the passenger enters the car.In a fraction of a second the Miconic10 system calculates which car is

best situated to make the trip, andindicates the car the user shouldenter on a display built into the key-pad. The elevator then takes thepassenger to its destination with ahighly reduced number of stops,thereby cutting travel time andreleasing the car faster for otherusers. Measurements on existinginstallations have shown perfor-mance improvements up to 80%.

The new LiftLoc system providesbuilding access control by using theMiconic 10 elevator control systemto subdivide the building into a num-ber of security zones with differentaccess parameters. For example, abuilding complex may have on thefirst floor above ground level a pub-lic area with restaurants, a library, aphysician’s practice, etc. The floorsabove this accommodate the officesof a private bank, which may onlybe accessed by bank employees.Finally, on the top floor, there arepenthouse apartments. With theLiftLoc system, all these floors canbe individually secured and pro-tected against unauthorized access.

Anybody can call the elevator to goto the first floor above ground level,which is public. The car arrives andtakes passengers automatically tothis floor. For the second and thirdfloors above ground level, wherethe private bank is located, the ele-vator can only be called with an IDcard or a code. If this is provided,the elevator arrives, the car doorsopen, and bank employees aretaken to the specific floors where

they have their offices. And finally, ifthe owners of the penthouse apart-ments want to go up to the topfloor, they not only have to carry aphysical means of identification butalso to type in the correct code onthe keypad.

The Miconic 10 hall call des-tination system with Lift-Loc can identify the elevatoruser, employ this informa-tion to optimize travel, andprotect the building againstunauthorized access

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The Schindler-EuroLift controlsystem has a chipcard to activatecustomer configu-rations on site


Inflation and labor marketset the trendIn most European markets therewas a perceptible increase in infla-tion in 2000, caused by higher pricesfor oil and other commodities withsimultaneously rising transportationcosts. Prices for real estate also wentup on the same scale, increasesvarying between 3% and 7% in thedifferent countries. In combinationwith the trend in most countriestoward higher interest rates, thesedevelopments point in the directionof reduced activity in the construc-tion industry in the years ahead.

Added to this, in some Europeancountries the labor market is tight,due partly to a shortage of qualifiedemployees and also to structuralchanges in employment conditions.This situation presents a challengeto Schindler. In this environment,increasing productivity becomes thekey factor for safeguarding andimproving profitability.

Undiminished demand formachine room-less elevatorsThere was very brisk activity inEuropean markets again in thereporting year, despite slightly lowergrowth in some areas. In thisdynamic environment, machineroom-less elevator technologygained further ground, with conse-quently less utilization of hydraulicelevator systems. The high-volumesegment for commodity productscontinues to grow, and clearlydemonstrates increasing customerrequirements for performance andreliability from elevator systems.The SchindlerSmart MRL family ofmachine room-less elevators is nowwell established in this segment ofthe market, and has become thebest-selling machine room-less ele-vator in Europe. Introduction of thenew SchindlerEuroLift modular ele-vator also greatly improves cover-age of the mid-range market seg-ment. By comparison with the high-volume segment, this segment ischaracterized by higher demands on

the system, and greater flexibilityregarding finish and adaptation tocustomers’ wishes.

Market profile elevators and escalators

Europe

6 elevators for the StatoilAsgard B drilling platform in the North Sea, Norway Photo: Øyvind Hagen/Statoil

Elevator group in the newterminal at Fiumicino Air-port, Rome, Italy

Panoramic elevators for achemical company, Prague,Czech Republic

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The unrestricted sales release at thestart of 2001 was preceded in thesecond half of the reporting year byan intensive test phase and limitedmarket introduction. Widespreadintroduction of the SchindlerEuroLift

will give new impetus to all Euro-pean markets. In some countriesthere will also be added potential formodernization due to the introduc-tion of new European elevator direc-tives.

Competitiveness improvedAt the internal level, numerousmeasures were implemented torealign individual organizationalunits, improve processes, and gen-erally increase efficiency. In thisconnection the Swiss affiliated com-pany made major investments toexpand and improve the competi-tiveness of the international TopRange Center in Ebikon, where ele-vator systems for the highest mar-ket segment with the most ad-vanced technical requirements aredeveloped and manufactured. Thisrealignment process will continueinto 2001.

In Germany, the integration ofHaushahn was not only successfullycompleted ahead of schedule, butalong with the introduction of newproducts, processes were harmo-nized and performance improved inlogistics and order processing. Sim-plified production processes were

also developed for the Europeancomponent factories, which usenew technologies to facilitate sub-stantial improvements in elevatorreliability and performance.

Commercial building withSchindlerSmart MRL, Reims,France

A total of 20 elevators plusescalators and movingwalks were installed in themany pavilions at the EXPOin Hanover, Germany. Photoshows the Hermes Tower

Group of 11 Schindler 300elevators in the BRC officebuilding, Warsaw, Poland

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Europe

Major orders

Austria: 10 freight elevators for the AustrianNational Bank for the subsidiaries inBregenz, Innsbruck, Linz, Salzburgand Klagenfurt; 42 elevatorsSchindlerSmart MRL for the revital-ization of residential buildings ofseveral cooperatives in Linz; 14 ele-vators, among which 6 glass eleva-tors, as well as 14 escalatorsSchindler 9300 for three shoppingcenters of an investor group inSteyr, Amstetten and Vienna; 12 ele-vators, among which 6 glass eleva-tors, for the historical Palais Coburgin Vienna; 35 light-weight cars for a residential cooperative in Vienna; 4 escalators Schindler 9300 for thenew congress center in Salzburg; 7 elevators for IKEA in Innsbruck

Belgium:15 elevators, of which two arepanorama elevators, for the Houseof Flemish Representatives in Brus-sels; 22 elevators for the residentialbuilding Huisvesting in Antwerp;maintenance contract for 212 eleva-tors in several residential buildingsof the Onze Woning – Goede Won-

ing real estate; 13 elevators for thebusiness center City Atrium in Brus-sels; 15 SchindlerEuroLift elevatorsfor the IBM office building in Diegem;15 SchindlerEuroLift elevators for theTrefles office building in Anderlecht

Czech Republic:14 moving walks Schindler 9500, 4 escalators and 14 elevators,among which 9 SchindlerEuroLift,for the Novy Smichov shopping andleisure center in Prague, which rep-resents the largest single projectever awarded in the Czech Repub-lic; 13 elevators, among which 10 SchindlerEuroLift, for the resi-dential building Zvornarka in Prague;8 escalators Schindler 9300 and 2 elevators for the shopping centerCerny Most in Prague; 7 elevators,among which 6 SchindlerSmartMRL, for a residential building inPrague; 4 elevators for the armyhospital in Ceske Budejovice; 12 ele-vators SchindlerSmart MRL for aresidential complex in Cerny Most,Prague

Finland:6 elevators, 6 escalators Schindler9300 and 6 moving walks Schindler9500 for the shopping mall Kulois-ten Kauppakeskus in Raisio; 20 ele-vators, of which 14 SchindlerSmartMRL, for several residential build-ings Yit-Rakennus Oy real estate inHelsinki and Vantaa; 8 elevators forthe four office buildings Quartetto inEspoo

France:16 elevators Schindler 9300 and 20 moving walks Schindler 9500 forthe Charles-de-Gaulle internationalairport, Roissy; 16 escalatorsSchindler 9300, 2 glass elevatorsand 2 additional design elevators forthe shopping center La Part Dieu,Lyon; 14 elevators Schindler 300and 2 bed elevators for the Purpanhospital, Toulouse; 14 escalatorsSchindler 9300 for the Clermont-Fer-

rand international airport; nationalmaintenance contract for 120 mov-ing walks and escalators for Carre-four in France; maintenance con-tract for 240 elevators for severalresidential complexes of Généralede Santé; maintenance contract for21 elevators in the Palais des Con-grès, as well as 2 elevators in LeSénat, the historical building of theFrench Senate, both in Paris

Germany:70 elevators, 71 escalators Schind-ler 9300 and 26 moving walksSchindler 9500 for the terminal 2 ofthe Munich airport; 19 elevators forthe Stuttgart airport; 12 panoramaelevators for Headquarters and mainadministration building of DeutschePost AG in Bonn; 41 SchindlerSmartMRL elevators for the residentialcomplex Prohlis in Dresden; 30 es-calators Schindler 9300 and 24 ele-vators for the shopping center Alt-marktgalerie in Dresden; 14 ele-vators for the university hospital inJena; 10 elevators, 12 escalatorsSchindler 9300, 4 moving walksSchindler 9500 and 2 platforms forthe shopping center Schlossstrasse/Düntherstrasse in Berlin; 14 esca-lators for the department store Mül-ler, 8 of which in Aachen and 6 inNeuwied; 6 commission elevatorsfor the administration building atHafenstrasse in Frankfurt; 6 com-mission elevators for the officebuilding Scala in Frankfurt; 7 com-mission elevators for the officebuilding Lyonerstrasse in Frankfurt

Wolfsburg, Germany: 288-meter open-air movingwalks connect the ICE high-speed train station with theVW Automobile City. Insidethe exhibition center are 5 more escalators enclosedin glass

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Clear layout andstructure of theSchindlerEuroLiftoperating panel


Great Britain:4 elevators Schindler 300 and 6 escalators Schindler 9300 for theretail and cinema center Grants inCroydon; 11 elevators, 4 of whichSchindlerSmart MRL, and 7 Schind-ler 300, for the residential buildingOdyssey in London; 3 elevatorsSchindler 300 and 4 moving walksSchindler 9500 for a retail center inJersey; 10 elevators for a riversideresidential development in London;4 escalators for Canary Wharf inLondon Docklands; 13 elevators fora residential development at BristolDocks; 6 modernizations for a med-ical center in Nottingham; 5 eleva-tors and 3 escalators at the OdysseyCentre in Belfast; 11 elevators and 9 escalators at Swords Pavilion inDublin; 5 elevators and 6 escalatorsat Croke Park in Dublin

Italy: Outline agreement for 147 elevatorsand 8 escalators for five cruise shipsof Holland America Line and onevessel of Carnival Corporation; 54elevators and 16 escalators for thecruise ship Carnival Costa; 23 ele-vators, 17 escalators and 10 movingwalks for Roma Termini train sta-tion; 27 elevators, 24 escalators forthe West Satellite of Fiumicino air-port in Rome, as well as 4 movingwalks and 4 elevators for connect-ing the Hilton hotel to the airport; 12 Schindler 001 for residential com-plex Portomaso in Malta

Netherlands:5 elevators for the office buildingCrystal Tower in Amsterdam; 5 ele-vators for the office building La Tourin Apeldoorn; 8 elevators for thePhilips High Tech Campus in Eind-hoven; 6 elevators and 7 movingwalks Schindler 9500 for a residen-tial building and shopping center inNootdorp; 8 elevators and 4 escala-tors Schindler 9300 for the residen-tial building and shopping centerGrote Marktstraat in The Hague;modernization of 6 elevators for theoffice building Hoogvoorde inRijswijk; modernization of 9 eleva-tors for the office building Rijkswa-terstaat in The Hague

Poland: 12 SchindlerSmart MRL elevatorsfor the residential complex BudynkiMieszkalne ul. Rosola in Warsaw; 11 SchindlerSmart MRL elevators forthe residential complex BudynkiMieszkalne Krauthofera in Poznan; 7 elevators, among which 5 Schind-ler 300, for the Holiday Inn in Krakow

Portugal: 4 elevators with Miconic 10 for theoffice tower Torre Monsanto in Lis-bon. This is the first Miconic 10installation in Portugal. 6 elevatorsfor the office tower Torre Amoreirasin Lisbon

Slovakia:4 moving walks Schindler 9500 for the shopping center Polus CityCenter in Bratislava. These are thefirst moving walks in Slovakia. 4 escalators Schindler 9300 for theresidential building Tesco in Nitra

Spain:8 elevators, 8 escalators Schindler9300 and 16 moving walks Schind-ler 9500 for the commercial centerGran Via Hospitalet in Barcelona; 9 elevators, 14 escalators Schindler

9300 and 2 moving walks Schindler9500 for the Hipercor San JuanAznarfarache Shopping Center,Sevilla; 21 elevators for Repsol-YPFTechnology Center, Madrid; 10 ele-vators and 8 escalators Schindler9300 for the Arquitecto MarcideFase Hospital, El Ferrol; 6 movingwalks Schindler 9500, 2 escalatorsSchindler 9300 and 3 elevators forthe Fañabe Plaza Commercial Cen-ter, Tenerife; 12 elevators for theMiguel Servet Hospital, Zaragoza; 6 elevators for the La Colina Clinic,Tenerife

Switzerland:27 SchindlerSmart MRL elevatorsfor the residential complex Eichrain,Zurich-Seebach; 4 elevators and 4 escalators Schindler 9300 for theshopping center Hyper COOP,Crissier; 6 elevators for the shop-ping center Littoral Parc, Allaman;49 escalators and 6 moving walks(up to 54 meters long) for uniquezurich airport AG, Zürich-FlughafenMillennium Tower with

Westin Hotel and commer-cial building, 12 elevators,The Hague, Netherlands

Torre Amoreiras commer-cial building, 6 elevators,Lisbon, Portugal

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Glass, steel, mar-ble – architectshave unboundedscope for creativ-ity in the Schind-lerEuroLift


Market position strength-ened in the whole conti-nentIn North America economic growthcontinued in 2000. Expenditures byprivate households is still the motorfor this relatively stable economicclimate, while demographic fore-casts continue to nurture a cautiousoptimistic outlook for the future.Positive estimates for sustainedmoderate economic growth in theyears ahead give further encourage-ment to private expenditure andbusiness investment. In SouthAmerica economic developmentvaried widely depending on the indi-

key steps in creating new competi-tive advantages. These can beachieved by providing additionalcustomer benefits, which in turn arecreated by increased utilization ofnew technologies for online accessto customer information such asSchindler NETWORX.

vidual markets. Whereas there weresigns of economic recovery in Brazil,Mexico, and Chile, growth in othercountries stagnated for a number ofdifferent reasons.

High saturation of constructionindustry in the NorthThe North American constructionindustry is following the positivetrend and should be able to maintainits present situation for the nearfuture. There was consistent devel-opment in all segments during thereporting year, resulting in increaseddemand for a very wide range ofbuildings. There is a slight risk ofsaturation for commercial buildings,which are the largest segment afterresidential buildings. Existing officeaccommodation is becoming increa-singly unusable as information tech-nology escalates the infrastructurerequirements in commercial build-ings. The most important customersegments have improved their pro-curement expertise and correspond-ingly increased their purchasingpower. Higher productivity in theservices sector and remote monitor-ing technologies become criticalsuccess factors to face increasingprice competition.

Early recognition and fulfillment ofthe market’s increasing expecta-tions, and meeting customers’ short-term and long-term needs, are the


Americas

Two views of Buffalo Inter-national Airport. The firstSchindler 9500 movingwalks manufactured in theUSA were installed here

Shopping D retail center,total 7 elevators and 18 es-calators, São Paulo, Brazil

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Market coverage improvedNorth American order bookings fornew installations were up yet againin the reporting year, which tookthem to new all-time high levels forboth market share and unit volume.

The market leadership position inescalators was maintained and salesof hydraulic where newly increased.The position in this segment will be further enhanced by the newSchindler 330 A hydraulic elevatorsystem planned for launch at thestart of 2001.

Alliance strategy pays offMillar, the Schindler subsidiary spe-cializing in modernization and ser-vice, continued its alliance strategyand entered into cooperation con-tracts with major customers. Thisnot only improved margins andsecured greater market share, butalso contributed to a general im-provement in customer satisfaction.

Market leadership establishedin South AmericaIn Brazil the economy recoveredfaster than expected due to greatertaxation discipline, which assisted instrengthening and stabilizing thenation’s currency. In October, theBrazilian antitrust authorities (CADE)gave unconditional approval to theSchindler Group’s acquisition of Ele-vadores Atlas S.A. This means thatestablishment of the Brazilian affili-ated company, Elevadores AtlasSchindler S.A., is now legally andformally complete. Realization ofpotential synergies, optimization ofelevator product lines, and the mar-ket launch of Schindler 9300 escala-tors which are now being producedat the factory in Londrina, have rein-forced Schindler’s market position inBrazil and Latin America even fur-ther. A whole array of major orders

were signed in the reporting year,including Latin America’s tallestbuilding, the Torre Mayor in MexicoCity.

Panoramic elevators in ElRecreo retail center, total26 escalators and 22 eleva-tors. Caracas, Venezuela

Schindler Chile won thefirst-ever Ibero AmericanQuality Management Award.Santiago de Chile, Chile

Headquarters of RichardEllis, world’s largest realestate management corpora-tion: contracts with Millarfor nationwide service andmodernization in USA

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California:Maintenance contract for 16 escala-tors and 9 elevators for the NewportCenter Fashion Island in NewportBeach

Georgia: 46 elevators, among which 32 withMiconic 10, and two escalatorsSchindler 9300 for office buildingsof Bell South in three separate loca-tions in Atlanta

Maryland:Maintenance contract for 81 escala-tors of the Baltimore underground;maintenance contract for 97 eleva-tors and 4 escalators in the medicalfacility of the John Hopkins Hospitalin Baltimore

Minnesota: Maintenance contract for 13 eleva-tors and 14 escalators for the St.PaulInternational Airport

Missouri: 15 hydraulic elevators and 24 esca-lators Schindler 9300 for the West-field Shoppingtown in St. Louis

Nevada:Maintenance contract for 63 eleva-tors of the University of Las Vegas

New Jersey:16 elevators for the office towerNewport Office Tower V in JerseyCity

New York:Modernization of 11 escalators atthe New York Stock Exchange;maintenance contract for 38 escala-tors, 25 moving walks and 47 eleva-tors of the American Airlines Termi-nal at JFK International Airport inNew York; maintenance contract for22 elevators for the office buildingat 100 Park Avenue in New York

North Carolina:10 hydraulic elevators and 14 escala-tors Schindler 9300 for the retailcenter & anchor stores at Streets atSouthpoint in Durham

Ohio:Maintenance contract for 216 eleva-tors and 2 escalators of the OhioState University

Pennsylvania:New installation of 8 elevators and22 escalators for the PittsburghConvention Center; maintenancecontract for 33 escalators, 24 mov-

ing walks as well as 31 elevators for Pittsburgh International Airport;maintenance contract for 29 eleva-tors of the medical facility at Gradu-ate Hospital in Philadelphia

Texas:10 elevators and 18 escalatorsSchindler 9300 for the Harris CountyNational Football League Stadium inHouston

Virginia:64 new Schindler elevators and 64 escalators Schindler 9300 asreplacement of existing elevatorsand escalators at the Pentagon inArlington

Washington D.C./Maryland/Virginia:Maintenance contract for 87 escala-tors of the Washington MetropolitanArea Transit Authority (WMATA)

Americas

Major orders

PricewaterhouseCoopersoffice building, 5 elevatorswith Miconic 10, 5 furtherelevators, and 2 coveredopen-air escalators, MexicoCity, Mexico

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Special button on the Miconic 10hall call destina-tion system makesentering and leav-ing elevator carseasier for handi-capped passengers


Canada: 2 escalators each for the PalaceCasino in Edmonton and the RamaCasino in Orillia (Toronto); 6 escala-tors for the Southern Alberta Insti-tute of Technology in Calgary; 1 moving walk for the Surrey CityCentre Mall in Vancouver and 2 escalators for the Bayshore Shop-ping Mall in Ottawa; a total of 7 elevators, 4 of which for the Kens-ington Hospital Health Center and 3 for Old Mill Inn, both in Toronto

Argentina:5 elevators, among which oneSchindlerSmart MRL 002, for theNaindo hotel in Buenos Aires; 7 ele-vators, among which one Schindler-Smart MRL 002 and two Schindler-Smart MRL 001, for the Naindo hotelin La Rioja; 18 elevators, amongwhich 9 SchindlerSmart MRL 002,for the residential and businessbuilding Manzana 1K Puerto Maderain Buenos Aires; 4 elevators and 4 escalators Schindler 9300 for theLatin American Museum in BuenosAires

Brazil:46 elevators and 8 escalators for the Paulo Otávio in Brasilia; 14 ele-vators, 10 of which with Miconic 10,and 8 escalators for the Serplan inSão Paulo; 18 elevators, 12 of whichwith Miconic 10, for South Americanheadquarters of Bank Boston in SãoPaulo; 8 elevators with Miconic 10for the JHS business building in SãoPaulo; 19 moving walks Schindler9500 for SONAE in Porto Alegre; 17 moving walks Schindler 9500 forCarrefour in São Paulo; several modernization contracts in Rio deJaneiro, among which 14 elevatorswith Miconic 10, for the businessbuilding Lineo de Paula Machadoand 25 elevators for headquarters of Petrobras, the Brazilian state oilcompany; modernization contractfor 50 elevators for the BrazilianPost in São Paulo, Rio de Janeiro,Brasilia and Salvador de Bahia; mod-ernization contract for 45 elevatorsfor the business building CentroEmpresarial in São Paulo

Chile: 5 elevators Schindler 310 L and 12 escalators Schindler 9300 for theshopping center Almacenes París in Temuco; 12 elevators with Mico-nic 10 for the office building TorreBosquenorte of SENEXCO in San-tiago de Chile; 10 elevators Schind-ler 310 L for the residential buildingCasas Kennedy of Habitaria inSantiago de Chile

Mexico:27 elevators and 2 escalatorsSchindler 9300 for the highest build-ing in Latin America, the TorreMayor in Mexico City; 14 elevators,among which 3 with Miconic 10, forthe hotel and business building ofthe Accor Group; 12 moving walksSchindler 9500, 4 escalatorsSchindler 9300 and 1 elevator forthe department store chain Carre-four in Mexico City; 8 moving walksSchindler 9500 and 3 escalatorsSchindler 9300 for the shoppingcenter Chedraui in Mérida, Cancún;8 elevators for the residential build-ing Marcos Dayán

Venezuela:4 elevators with Miconic 10 and 4 escalators Schindler 9300 for thebusiness building La Viña Plaza inValencia; 12 escalators and 9 eleva-tors for the shopping center LosNaranjos in Caracas; 6 elevatorswith Miconic 10 for Banco Caracasin Caracas; 3 elevators and 2 escala-tors Schindler 9300 for the shoppingand business center MillenniumCenter in Barquisimeto; 4 elevatorsfor the Clínica Loira hospital in Cara-cas; 5 elevators for the Bahía Pozue-los office building in Puerto La Cruz;6 escalators and 4 elevators for the Buenaventura Shopping Center,in Guarenas City

Total of 30 escalators and30 elevators with Miconic10 in Providence Place Mall,Providence, Rhode Island,USA

7 escalators in City MarketShopping Center, Caracas,Venezuela

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SchindlerEuroLiftcars can also befitted out withtraditional materi-als


Stable demand andtougher competitionThe signs of economic recovery var-ied greatly in different parts of theAsia/Pacific region in 2000. The driv-ing forces coming from private con-sumption and exports while othersectors remained weak. Overall theprogress in the construction indus-try lagged the economic recovery. InSoutheast Asia, led by Hong Kong,Singapore, and Malaysia, demandfor elevators and escalators recov-ered from historically low levels. In Australia, construction related tothe Olympic Games continued togenerate good demand, whereas inJapan and China the market remai-ned unchanged. Due to substantialovercapacity throughout the region,competitive pressure increased inall segments. Asia/ Pacific continues

Introduction of the Schindler 100 Pelevator in the basic segment com-pleted the product range in the resi-dential market. The new productderives its success from a competi-tive price, short delivery time, androbust design.

In Japan, the growing trend towardmachine room-less elevators in theresidential segment was answeredwith the launch of the Schindler-Smart J. This highly standardizedelevator has only a limited numberof options and derives its competi-tiveness from low product andprocess costs.


Asia/Pacific

8 escalators for the NagoyaCentral Towers office, hoteland shopping complex,Nagoya, Japan

Capital Tower commercialbuilding, Singapore, total 5 double-decker elevators,30 further elevators and 7 Schindler 9300 escalators

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to be the world’s most strongly con-tested market, with all the impor-tant suppliers fighting for greatermarket share in an environment ofsubdued demand. With the regionaccounting for around 50% of thetotal world market for elevator andescalator new installations, it contin-ues to be a high-priority target mar-ket for Schindler.

Economic forecasts for 2001 arerestrained due to the slow pace ofcompany reform, increasing capitalcosts, and falling export activity. Asa result the construction industry isexpected to remain weak. Positiveeffects on the overall market areexpected from residential buildingconstruction, and from constructionin the transportation sector, wheregovernment investments still playan important role.

Improved market position andincreased productivityIn this increasingly competitive en-vironment, sustained concentrationon pre-engineered products andstandardized processes loweredcosts and contributed to an im-provement in the market position.


In the mid to high-requirement seg-ment, the Schindler 500 P elevatorwas introduced in the second half of the year. With its broad pre-engi-neered range of options the newelevator fulfills the requirements of

all the major Asian markets. Itsattractive price/performance ratiomeets customers’ expectations insome of the most demanding seg-ments.

In the escalator market, localproduction of the Schindler 9300escalator and Schindler 9500 mov-ing walk added further strength tothe market position and increasedsales. Both these products, as wellas the new Schindler 9700 escalatorfor the transport segment, bene-fited from the growing demand ininfrastructure construction and pub-lic transportation.

To remain competitive in the con-text of falling market prices, costleadership takes on an increasinglycritical role. In addition to newlydeveloped products, numerous im-provements in processes havesharply increased productivity andallowed structural redimensioning in all markets of the region.

Stronger presenceThe new electronics factory inSuzhou, Schindler Electronic(Suzhou) Co. Ltd. went into opera-tion in the second quarter of thereporting year as planned. The newfactory will supply all the mostimportant elevator controls andelectronics components to the sub-sidiaries in China and later Asia.

In line with the overall Group strat-egy, the market position in Asia/Pacific was given added strength bynew products, increased efficiency,and local manufacturing of products.These and other ongoing initiativesare achieving a greater market pen-etration in the region.

Xiamen International Conference and ExhibitionCenter, Fujian Province,China

1 elevator and 2 escala-tors for the Tokyo stock exchange, Japan

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Asia/Pacific

Major orders

The SchindlerEuro-Lift has a distrib-uted control systemwhose elements areconnected togethervia a control bus. To save space, theindividual controlmodules are builtinto the hoistway,on the car, and inthe small controlcabinet, and con-nected via a controlbus

Brunei:7 elevators, among which 6 Schind-ler 300 P, and 4 escalators Schindler9300 for the PGGMB business build-ing; 9 elevators, among which 6Schindler 300 P, for the moderniza-tion of the Islamic Bank of Brunei

China:20 escalators Schindler 9300, 9 ele-vators, among which 5 Schindler300 PCL and 4 Schindler 700, for thebusiness building Star Plaza in Shen-zhen; 56 elevators Schindler 300PCL for the residential complex CityGarden in Shenzhen; 120 elevatorsSchindler 100 C for a residentialcomplex in Urumchi

Hong Kong:21 elevators, among which 16Schindler 700, and 8 escalatorsSchindler 9300 for the shopping andbusiness center 11 Charter Road;

54 escalators Schindler 9300 for the Podium & North East Tower ofHong Kong Station; 85 elevators, of which 74 Schindler 300 P, as well as 20 escalators Schindler 9300 for the residential, hotel, and shop-ping complex Discovery Bay NorthDevelopment; 69 elevators, ofwhich 52 Schindler 500, and 9 es-calators Schindler 9300 for theresidential building at Tung ChungStation Area; 66 elevators, amongwhich 25 Schindler 700 and 36 ele-vators with Miconic 10, as well as33 escalators Schindler 9300 for theoffice, hotel and shopping center atCyberport Development

Japan: 10 escalators Schindler 9300 and 3 elevators Schindler 300 J MRL forAino station in Fukuroi; 6 escalatorsSchindler 9300 and 6 elevatorsSchindler 300 J MRL for the publiccompound facility at Tobata Stationin Kitakyushu; 8 moving walks forthe shopping center HypermallMercs in Shin-Narashino; 9 eleva-tors Schindler 300 J MRL for theresidential building for the MikageHousing complex in Kobe

Malaysia:48 elevators for several residentialbuildings of Jabatan PerumahanNegara real estate, Kuala Lumpur;14 elevators for the residential build-ing Suasana Sentral 1, Perlis; 16 ele-vators, of which 9 Schindler 700, for the Westin hotel, Kuala Lumpur

New Zealand:7 Schindler 700 elevators withMiconic 10 for the business centerPWC Waterfront Tower, Auckland;12 escalators Schindler 9300 shop-ping center Westcity, Auckland

Panoramic elevator withMiconic 10 in Jen Pou com-mercial building, Taipeh,Taiwan

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Philippines:2 elevators Schindler 300 P and 12 escalators Schindler 9300 for theshopping center Agora Mall, Manila;10 elevators Schindler 700 for theresidential building 1322 Roxas,Manila

Singapore:17 elevators for Changi BusinessPark; 16 elevators for the residentialbuilding Water Place Condominium;30 elevators Schindler 300 P for theresidential building Bayshore ParkCondominium; 34 elevators for theindustrial complex Ubi Tech Park; 12 elevators, among which 3 Schind-ler 300 P and 3 Schindler 700 P, for

the International Business Park; 18 elevators, among which 9 Schind-ler 300 P, for Nanyang TechnologyUniversity; 16 elevators and 2 es-calators Schindler 9300 for the resi-dential building Sengkang Condo-minium; 13 elevators for the resi-dential building Yishun ExecutiveCondominium; 8 elevators, all withMiconic 10, for the modernization ofthe office building Shaw Centre; 11 elevators, among which 2 Schind-ler 300 P, 5 Schindler 500 P and 4 Schindler 700, for the office build-ing of the Chinese Chamber ofCommerce

Taiwan:17 elevators for two residential pro-jects of Fu Bon Construction, Taipei;8 elevators, 6 of which with Miconic10, for the office building LFCPU ofTwinhead Co., Hsin Tien; 26 esca-lators Schindler 9300 and 10 movingwalks Schindler 9500 for theshopping center TC D An, Taipeh

Thailand:9 escalators Schindler 9300 and 7 moving walks Schindler 9500 forthe shopping center Lotus Super-centre in Bangkok

Vietnam:6 elevators, all with Miconic 10, for the Long An hospital, Long An; 13 elevators, of which 3 with Mi-conic 10, as well as 10 escalatorsSchindler 9300 for Terminal 1 at NoiBen Airport, Hanoi

Ellery Tower residentialbuilding with first Schindler500 elevator in Hong Kong,China

Ultramodern informationsystems in the double-decker elevators at CapitalTower, Singapore

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Vienna’s Enkplatzsubway stationwas the first in-stallation of theSchindler 9700escalator. Launched in 1999,the escalator isspecially designedfor the transporta-tion sector


Presence increased ingrowth markets

Growth in IndiaIn India, driven by the general eco-nomic growth, the booming residen-tial building segment and the com-mercial developments have posi-tively influenced the business. TheSchindlerSmart MRL elevator was aresounding success right from thestart. In addition, the order to installthe Shreepathi Bahwan, India’stallest building, gave a substantialboost to the image of the youngcompany in this market. The Schind-ler 9300 escalator has become thereference product for shopping andentertainment centers. ket. Schindler’s commodity eleva-

tors for the basic segment con-tributed to sustained success andgreater market share. A noteworthyexample was the major escalatororder for the new Ben Gurion Air-port in Tel Aviv.

Exceptional projects in Southern AsiaEntry to the Bangladesh marketproved to be a success. The manycontracts signed include the Bas-hundara City project in Dhaka, whichis the largest shopping center insouthern Asia. Despite the macro-economic difficulties facing Pak-istan, major orders were secured inthis country such as the interna-tional airport at Lahore.

Stronger market presence inthe Middle EastThe political and economic climatein the Middle East was largelydetermined by the slowdown in thepeacemaking process and climbingoil prices. However, these factorshave not impacted yet on the con-struction industry or elevator mar-


India, Middle East and Africa (IMEA)

Victoria Towers, total 2 pa-noramic elevators, 2 esca-lators, 1 kitchen elevator,Nairobi, Kenya

Hiranandani Gardens resi-dential development, Powai,India

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Stability in North AfricaIn Egypt, economic growth appearsto have come to a temporary halt.However, despite the more difficulteconomic climate, the elevator mar-ket remained stable and Schindlerreinforced its market position. InMorocco, the construction industrycontinued at a very brisk pace, withSchindler still the clear marketleader, thanks especially to theintroduction of the SchindlerSmartMRL family. The exceptional discov-ery of a major oilfield in Moroccoshould have a generally positiveeffect on this country’s economicdevelopment in the years ahead.

Market position retained inSouth AfricaMarkets in southern Africa suffereda creeping economic crisis in thereporting year, with Zimbabwe andKenya the countries worst affected.Economic growth in South Africaitself did not reach the expectedlevel, a negative influence being thestrength of the US dollar against thecountry’s own weak currency.Schindler retained a strong marketposition in South Africa, again secur-ing a major construction project.

Generally speaking, Schindler heldits market position in all the coun-tries where it has its own sub-sidiaries (South Africa, Namibia,Zimbabwe, Botswana, and Kenya).In Mozambique a joint venture wasopened up with a local partner.

Elevator group in HotelSharbat, Eilat, Israel

Escalator in Hotel Sharbat,Eilat, Israel

Times Tower, total 15 ele-vators and 2 escalators,Nairobi, Kenya

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IMEA

Major orders

Digital informationtechnology forusers in the eleva-tor car

Bahrain:8 elevators for the shopping mallBahrain Mall

Bangladesh:59 escalators Schindler 9300, 21 elevators and 1 moving walkSchindler 9500 for the BashundaraProject in Dhaka, the largest shop-ping mall in southern Asia

Egypt: 26 elevators, among which 4 pano-rama elevators, and 4 escalatorsSchindler 9300 for the Four SeasonsHotel, Nile Plaza, in Cairo; 9 eleva-tors for Luxor Airport; 11 elevatorsfor Intercontinental Sharm El SheikhHotel

India:21 elevators and 2 escalatorsSchindler 9300 for the Grand HyattHotel in Bombay; 10 elevators and 2 escalators Schindler 9300 forthe business complex ShreepathiBuilding Arcade, the tallest buildingin India

Israel:37 escalators Schindler 9300 BenGurion airport in Tel Aviv; 15 eleva-tors for the government building inHaifa; 10 elevators for the IBM officebuilding at Ezorim Park in Tel Aviv

Jordan:6 elevators for the Farah hospital inAmman

South Africa:32 elevators, among which 30Schindler 300, as well as 6 escala-tors Schindler 9300 for the office,shopping, residential and leisurecomplex Melrose Arch in Sandton; 6 custom elevators, 2 elevatorsSchindler 300 L and 5 escalatorsSchindler 9300 for the Gatewayoffice building, Durban

Syria: 80 elevators for several buildingssuch as doctors building, hospital,library and others at Tishreen Uni-versity in Latakia

Uganda:8 elevators for Crested Towers inKampala

Zimbabwe:Modernization of 11 elevators at the Karigamombe Centre and at theBulawayo Municipal Offices

Panoramic elevators in theQueen Shiva Hotel, Eilat,Israel

Menlyn retail center,Johannesburg, South Africa

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>With 46 Schindler9300 escalatorsand 16 Schindler9500 movingwalks, the newAthens Internation-al Airport was oneof the most impor-tant new instal-lation projects in2000. The installa-tions are a perfectcomplement to thebuilding’s architec-ture.Photo: Rainer Reh-feld, Cologne


Difficult year for ALSOALSO, which is active in the IT logis-tics and services business, had adifficult year. Following the changeof millennium, developments in the individual market segments var-ied widely, and were completely different than generally expected.Whereas business in the large-cus-tomers segment slumped surpris-ingly, demand from small andmedium-sized companies increasedslightly, and from private customersstrongly.

a whole increased by 66.2% fromthe previous year to CHF 37.6 mil-lion. Due to the continuing growth,the number of staff employed in the Distribution Division increasedby 78 to 549.

In view of the further strong in-crease in demand for logistics ser-vices, the Distribution Division againdoubled the capacity of its logisticscenter at Emmen, Switzerland. Inaccordance with the financial strat-egy, the buildings were sold to anindependent company when con-struction work was complete. Alsoduring the reporting year, operationsstarted up at an additional locationin Germany, at Brunswick. Parallelto this, new ERP software was intro-duced in Switzerland, which in thecurrent year will also be imple-mented in the German company.

These divergent developments inthe market were reflected in thebusiness divisions at ALSO. The dis-tribution business followed up onthe previous year’s good result andcontinued its positive development.On the other hand, the systemsbusiness was confronted with anunexpected falloff in business withmajor customers. The changed mar-ket situation necessitated structuraladjustments in this area. However,after starting badly, business in thisdivision improved as the year pro-gressed.

Group targets not metDespite this difficult environment,ALSO increased its turnover by11.8% to CHF 1 863.5 million in theyear under review. On the otherhand, due to the slump in the sys-tems business, the Group resultwas only just positive. ALSO’s netprofit after tax for 2000 was CHF4.5 million. In the reporting year theworkforce numbered 1 571 em-ployees.

Continuing success in distribu-tionThe Distribution Division expandedits leading position in the market.Turnover in Switzerland went up by21.5% to CHF 1 067.1 million. At theGerman company growth was evenhigher, with turnover increasing by29.9% to CHF 617 million. Operatingprofit for the Distribution Division as

ALSO

Floorspace at the ALSOlogistics center in Emmen,Switzerland, has been dou-bled

By installing ERP software,ALSO has created the tech-nical infrastructure it needsto provide comprehensivelogistics services to e-busi-ness partners

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ALSO was the firstIT distributor touse environmen-tally friendlyreturnable boxesfor shipping

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At year-end ALSO ABC Trading Ltd.was selected by Swisscom Mobileto be its new logistics partner.Under this cooperation agreementthe entire supply chain managementassociated with mobile handsets, aswell as the physical handling of SIMcards, will be outsourced to ALSO.

Hesitant recovery from slumpin systems businessAll over Europe, turnover in thelarge-customers segment of theindustry fell surprisingly in the firsthalf of 2000 by between 30% and60%. ALSO’s systems business alsosuffered badly from this drop in or-ders. Relative to the same period inthe previous year, turnover for thefirst half year fell by 38%. Faced withthis slump, ALSO undertook majorstaff reductions in the systems busi-ness, and adjusted other operatingcosts to the lower number of em-ployees. In the third quarter, thesemeasures were successful insharply reducing the loss compared

ber of Windows 2000 projects in large companies in the mediumterm, also give ALSO confidencethat turnover and profit will continueto increase in future years.

to the first and second quarters.Business picked up again slightly inthe second half year. As a result,there was a further improvement inthe Systems Division in the fourthquarter. Turnover for 2000 was CHF217.7 million, with an operating lossof CHF 32.6 million. The number ofemployees was 1 012.

A milestone in 2000 was the acqui-sition of the operational activitiesand most of the employees of ITServices AG, a subsidiary of CreditSuisse Group. This strategic acquisi-tion was taken against the backdropof growing demand from businessfor IT services provided by externalspecialists.

Higher turnover and improvedprofitability in 2001For 2001 ALSO foresees furthergrowth in turnover and a sharpimprovement in profitability. Theincreasing demand for logistics ser-vices, especially associated with e-business, and the growing num-

Employees’ high degree of identification with thecustomer is the key toproviding individual, tai-lored services

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Direct, high-qual-ity communica-tion with externalpartners is theonly way to ensureconstantly effi-cient communica-tion


OrganizationStatus January 1, 2001

Board of Directors Schindler Holding Ltd.Term of office expires

Alfred N. Schindler•

Chairman; Hergiswil, Switzerland 2003

Luc Bonnard•

Vice Chairman; Hergiswil, Switzerland 2003

Alfred Spörri•

Zug, Switzerland 2003

Jeffrey M. Cunningham

CEO/Managing Director of Schroders Finance Partners; Greenwich, Connecticut, USA 2001

Prof. Dr. Dr. h.c. mult. Rolf Dubs

Professor emeritus at the University of St. Gallen; St. Gallen, Switzerland 2003

Walter G. Frehner

Riehen, Switzerland 2003

Dr. Hubertus von Grünberg

Chairman of the Executive Board of Continental Ltd.; Hannover, Germany 2003

Dr. Jenö Staehelin

New York, USA 2003

Robert Studer

Schönenberg, Switzerland 2003Member of the Executive Committee of the Board

Management Schindler Holding Ltd.Ernst Bärtschi

Peter E. Fraefel

PD Dr. Karl Hofstetter

Bernard Illi

Stephan Jud

Joachim Walker

Dr. Henry Zheng

AuditorsERNST & YOUNG Ltd., Basle

•

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Management Committee Elevators and EscalatorsPeter J. Zbinden President

David J. Bauhs Deputy to the President; Americas

Heikki Poutanen Europe Central

Miguel A. Rodríguez Europe Southwest

Jürgen Tinggren Asia/Pacific

Richard Maiocchi India/Middle East/Africa (IMEA)

Jörgen Svenningsson Technology and Strategic Supply Management

Ernst Bärtschi• Chief Financial Officer (CFO)

Dr. Rudolf W. Fischer• Human Resources and TrainingReporting directly to a member of the Executive Committee of the Board

Management Committee ALSOThomas C. Weissmann President

Alberto Comolli Human Resources

Jürgen Baumgartner Finance

Marc Schnyder Distribution

Thomas C. Weissmann (ad interim) Systems Business

•

Elevators and Escalators

Schindler Holding Ltd.

Management CommitteeElevators and Escalators

Board of Directors

Europe

Americas

Asia/Pacific

IMEA

ALSO

Management CommitteeALSO

Distribution

Systems Business


Financial statements GroupCondensed

Balance sheet December 31 1996 1997 1998• 1999•• 2000In million CHF

Current assets 2 421 2 847 2 978 3 335 3 381

Non-current assets 1 389 1 385 1 371 2 219 2 279

Total assets 3 810 4 232 4 349 5 554 5 660

Current liabilities 1 268 1 381 1 916 2 219 2 359

Non-current liabilities 1 236 1 440 1 316 2 000 1 847

Total liabilities 2 504 2 821 3 232 4 219 4 206

Minority interests 49 80 105 150 137

Shareholders’ equity 1 257 1 331 1 012 1 185 1 317

Total liabilities and shareholders’ equity 3 810 4 232 4 349 5 554 5 660After restatement and in compliance with IASAs of 1999 in compliance with IAS

Profit and loss statement 1996 1997 1998• 1999•• 2000In million CHF

Operating revenue 5 191 6 203 6 594 7 657 8 530

Operating expenses 5 069 5 970 6 343 7 275 8 108

Operating profit 122 233 251 382 422

Financing activities 17 –21 –17 –86 –53

Investing activities – – 84 29 5

Non-operating revenues/expenses 8 1 – – –

Profit before taxes 147 213 318 325 374

Taxes 58 70 73 67 71

Profit before minority interests 89 143 245 258 303

Minority interests 12 23 21 20 4

Net profit 77 120 224 238 299Classified according to IAS but not revaluedAs of 1999 in compliance with IAS

For complete information in compliancewith IAS please refer to the Financial Statements.

•••

•••

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•

Cash flow statements 1996 1997 1998 1999• 2000In million CHF

Cash flow from operating activities 103 339 163 156 539

Cash flow from investing activities –110 –94 –577 –694 –344

Cash flow from financing activities –5 125 –7 488 –146

Translation exchange differences 11 – –5 20 –10

Change in net cash –1 370 –426 –30 39As of 1999 in compliance with IAS



Financial statements Schindler Holding Ltd.Condensed

In the VW Automo-bile City at Wolfs-burg, Germany,synchronized tele-vision monitors on both sides of aSchindler 9500moving walk createthe impression of driving an auto-mobile

Balance sheet December 31 1996 1997 1998 1999 2000In million CHF

Current assets 604 904 397 679 465

Non-current assets 1 188 1 314 1 726 1 462 1 601

Total assets 1 792 2 218 2 123 2 141 2 066

Debentures 150 350 350 800 785

Other liabilities 238 401 239 229 208

Total liabilities 388 751 589 1 029 993

Share capital 76 76 76 76 64

Bearer participation capital 61 61 61 61 50

Retained earnings 1 188 1 246 1 306 880 855

Net profit for the year 79 84 91 95 104

Shareholders’ equity 1 404 1 467 1 534 1 112• 1 073

Total liabilities and shareholders’ equity 1 792 2 218 2 123 2 141 2 066After extraordinary adjustment of investments in subsidiaries via elimination of other reserves (CHF 457 million)

Profit and loss statement 1996 1997 1998 1999 2000In million CHF

Income from subsidiaries 93 103 115 179 201

Other revenue 51 57 124 37 34

Total revenue 144 160 239 216 235

Depreciation and adjustments 28 33 97 57 85

Other expenses 37 43 51 64 46

Total expenses 65 76 148 121 131


Dividend payment 1996 1997 1998 1999 2000In million CHF

Registered shares 21 23 35 35 38•

Bearer participation certificates 17 18 27 27 29•

Total dividend payment 38 41 62 62 67•

Proposal by the Board of Directors

•

•



Information for shareholdersCharts

Group 1996 1997 1998• 1999•• 2000In million CHF

Orders received 5 299 6 362 6 604 7 695 8 750

Elevators & Escalators 4 720 5 486 5 325 6 028 6 852

ALSO 579 876 1 279 1 667 1 898

Operating revenue 5 191 6 203 6 594 7 657 8 530


ALSO 575 870 1 270 1 661 1 861

Operating profit 122 233 251 382 422

as % of operating revenue 2.4 3.8 3.8 5.0 4.9

Net income from financing and

investing activities 17 –21 67 –57 –48

Profit before taxes 147 213 318 325 374

Profit before minority interests 89 143 245 258 303

as % of operating revenue 1.7 2.3 3.7 3.4 3.6

Net profit 1 77 120 224 238 299

Cash flow 2 223 287 394 329 417

Capital expenditure 105 140 177 158 157

Order backlog 3 382 3 515 2 954 3 689 3 713

Personnel at year-end (number) 34 631 38 100 38 574 43 654 43 334


ALSO 470 627 1 031 1 514 1 571

Shareholders’ equity 1 257 1 331 1 012 1 185 1 317

Equity ratio 33.0 31.4 23.3 21.3 23.3

EBITDA Group 3 256 387 451 532 624

in % 4.9 6.2 6.8 6.9 7.3

EBITDA Elevators & Escalators 253 371 427 482 612

in % 5.5 7.0 8.0 8.0 9.2

EBITDA ALSO 10 23 40 46 18

in % 1.7 2.6 3.1 2.8 1.0

EBIT Group 4 122 233 251 382 422

in % 2.4 3.8 3.8 5.0 4.9

EBIT Elevators & Escalators 126 225 236 342 422

in % 2.7 4.2 4.4 5.7 6.3

EBIT ALSO 4 16 31 36 6

in % 0.7 1.8 2.4 2.2 0.3Balance sheet positions after restatement and in compliance with IASAs of 1999 in compliance with IASAdjusted for minority interest in years 1996–1998Net profit before minorities and depreciation/amortization +/– change of provisionEBITDA: Operating profit and depreciation/amortizationEBIT: Operating profit

•••

1

2

3

4

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Holding 1996 1997 1998 1999 2000In million CHF

Share capital 76 76 76 76 64

Bearer participation capital 61 61 61 61 50

Shareholders’ equity 1 404 1 467 1 553 1 112• 1 073

Debentures 150 350 350 800 785


Dividend payment 38 41 62 62 67••

After extraordinary adjustment of investments in subsidiaries via elimination of other reserves (CHF 457 million)Proposal by the Board of Directors

•••


The Group’s total value added is the increase invalue achieved by the whole Group within a cer-tain period of time.

The net value added is calculated by subtractingthe value of goods and services drawn on byother companies, as well as depreciations, fromthe overall Group income.

The distribution of the Group’s net value addedshows how employees, the governments, thecompany itself, the shareholders, and other pro-viders of finance participate in this economicallyrelevant amount.

Allocation of the Group’snet value added 2000In %

Wages, salaries and social-service expenditures 87,6Creation of reserves 6,4Direct taxes 2,6 Dividends 2,2Net interest charges 1,2


20001999199819971996

Margin operating profitand net profitAs % of operating revenue

5,5

4,5

3,5

2,5

1,5

Operating profitNet profit

20001999199819971996

417329394287223

Cash flow

In million CHF

400

300

200

100

20001999199819971996

157158177140105

Capital expenditure

In million CHF

200

150

100

50

Sch

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8000

7000

6000

5000

4000

3000

2000

1000

20001999199819971996

Operating revenue byproduct groupIn million CHF

8000

7000

6000

5000

4000

3000

2000

1000

Elevators & Escalators•

ALSORolling stock••

6 6691861

–8530

5 9961 661

–7657

5 3241 270

–6594

5 127870206

6203

4 353575263

5 191Total

Elevators & Escalators•

ALSORolling stock••

20001999199819971996

Orders received byproduct groupIn million CHF

6 8521898

–8750

6 0281667

–7695

5 3251 279

–6604

5175876311

6362

4 423579297

5299Total

Invoiced sales 2000 by marketElevators & EscalatorsSwitzerland 8%EU Countries 36%Rest of Europe 3% Americas 36%Asia, Australia, Afrique 17%

Invoiced sales 2000 by marketALSOSwitzerland 67%Germany 33%

• Incl. other products•• As of 1998 included in Elevators & Escalators


20001999199819971996

Personnelat end of yearNumber

40 000

30 000

20 000

10 000

Personnel 2000by sectorIn %

Production 19Installation and maintenance 58Engineering, Sales, Administration, ALSO 23

433344365438 5743810034631

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Personnel 2000Elevators & EscalatorsBy region

Switzerland 4 020EU Countries 14 626Rest of Europe 1635Americas 13 858Asia, Australia, Africa 7624

Personnel 2000ALSOBy country

Switzerland 1378Germany 193


Information per registered share /bearer participation certificate 1996 1997 1998• 1999•• 2000In CHF

Net profit 56 88 164 174 222

Cash flow 163 210 288 240 310

Shareholders’ equity at year-end 919 973 753 894 992

Gross dividend 28 30 45 45 50•••

Pay-out ratio % 49.8 34.2 27.5 25.9 22.5

Market capitalization (in million) 1 926 2 119 3 118 3 490 3 402Shareholders’ equity after IAS restatementAs of 1999 in compliance with IASProposal by the Board of Directors

Registered shares 1996 1997 1998 1999 2000In CHF

Number of shares outstanding 763 066 763 066 763 066 763 066 752 866

Thereof in treasury stock 5 890 5 890 20 170 27 040 16 790

Nominal value 100 100 100 100 85

Price high 1 140 2 130 2 730 2 600 2 995

Price low 1 105 1 300 1 530 2 060 2 320

Price year-end 1 370 1 569 2 340 2 550 2 549

P/E ratio December 31 24.5 � 17.8 � 14.3 � 14.7 � 11,5 �

Bearer participation certificates 1996 1997 1998 1999 2000In CHF

Number of certificates outstanding 605 425 605 425 605 425 605 425 592 424

Thereof in treasury stock 108 647 60 280 4 004 15 444 1 410

Nominal value 100 100 100 100 85

Price high 1 475 2 000 2 710 2 620 2 925

Price low 1 140 1 370 1 209 2 050 2 320

Price year end 1 455 1 522 2 200 2 550 2 503

P/E ratio December 31 26.0 � 17.3 � 13.4 � 14.7 � 11,3 �

•••

•••

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20001999199819971996

Market capitalization

In billion CHF

3,5

3,0

2,5

2,0

1,5

20001999199819971996

Net profit per registeredshareIn CHF

200

150

100

50

20001999199819971996

Dividens per registered share andbearer participation certificateIn CHF

50

40

30

20

10


Significant shareholdersAccording to information publishedunder stock exchange law (SHAB9.01.2001), the Schindler and Bon-nard families hold within the scopeof a stockholder retainer contract61.8% of the voting rights of theshare capital of Schindler HoldingLtd. entered in the Register ofCompanies.

A further aspect of the sharehol-ding structure is that other personswho have a close relationship to the parties to the stockholder re-tainer contract hold, together withthese, more than two thirds of thevoting rights. These other personsare not bound by a stockholderretainer contract. The voting rightsheld by shareholders who are notbound by a stockholder retainer con-tract are in each case less than 3%.

Ordinary General MeetingMonday, April 9, 2001, 4.30 pm at the Kultur- und KongresszentrumLuzern, Europaplatz 1, CH-6005 Lucerne, Switzerland

Investor RelationsRiccardo Biffi Corporate CommunicationsSchindler Management Ltd.CH-6031 Ebikon

T+41 41 445 3060F+41 41 445 3144

[email protected]

Stephan Jud Head of TreasurySchindler Management Ltd.CH-6031 Ebikon

T+41 41 445 3119F+41 41 445 4530

[email protected]

www.schindler.com

Registered shares are traded on the Swiss Exchange. Bearer partici-pation certificates are traded on the Swiss, Berlin and Frankfurt Ex-changes. The bearer participationcertificates have the same rights as the registered shares with theexception of attendance at theAnnual General Meeting and votingrights.

TradingRegistered share Bearer participation certificate

Bloomberg SCHN SCHP

Reuters SCHZn SCHZp

Valor 227 618 227 617

The SchindlerEuroLiftcan have spotlightsmounted in the carceiling or in the cor-ner posts

Schindler reports its environ-mental performanceIn recent years, demands from thepublic, shareholders, and analystsfor publication of environmental per-formance have steadily increased.Schindler is responding to this wishby including for the first time in thisyear’s Annual Report an explicit ac-count of its environmental perform-ance. The emphasis is on analysisof the product life cycles, whichgives Corporate Research and Deve-lopment valuable information forimproving eco-efficiency.

We also include special reports onthe major environmental advantagesof Schindler’s technological worldpremieres: the Miconic 10 hall calldestination system, the aramidrope, and the adaptable-speed esca-lator.

A chapter devoted to “Environmen-tal Performance” will be a perma-nent feature of future annual reports.Every five years we also publish anadditional special report on environ-mental questions.

“Schindler minds the environ-ment”“Schindler serves its customers, …cares for its employees and mindsthe natural environment, whilestriving for profitable growth.” Thisconcise statement summarizes theprinciples of business conduct for-mulated by Schindler in 1990.

Minding the environment is an ethi-cal principle. Every day, all over the world, 700 million people useSchindler elevators and escalators.Protecting the safety of the peoplewho are transported by our prod-ucts, or who work for Schindler, isan important aspect of our businessconduct.

Maintaining the required safetystandards, conservation and efficientuse of resources, and avoidance ofenvironmental pollution all contri-bute to achieving this goal. Optimalutilization of resources also deci-sively improves customer benefits.

Adherence to Schindler’s hierarchyof values, “protect life, mind theenvironment, increase customerbenefits”, contributes to long-term,sustainable growth of the com-pany’s corporate value.


Schindler’s environmental performance

Our contribution to the environment

1

Every day, all over theworld, Schindler elevatorsand escalators transportmore than 700 000 000passengers

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1

2

Schindler – a service companyOur products are designed for anaverage service life of 30 years.That is why Schindler’s main activityis not manufacturing products, butensuring the mobility of their userswith extremely high safety and avai-lability of the installations. Decisivecompetitive factors in this connec-tion are maintenance, moderniza-tion, and – where necessary – repairof the products. Today’s elevatorsand escalators are systems whichare built up from mainly standard-ized components. And as a systemsprovider, Schindler leads the way.More than half our employees (56%)are engaged in installation and main-tenance at over 1 000 locationsaround the globe.

Less than 20% work in production.This shows that Schindler has beentransformed into a service company,and is no longer a member of theclassical manufacturing engineeringindustry.

The goal: more intelligent,simpler, smaller, lighter, lowerenergy consumptionSince elevators and escalators always run for several decades, therelevant phase to determine the environmental impact of the installa-tions is the period when the prod-ucts are being used, while, compa-red to other industries, the pro-duction phase is only of secondaryimportance.

According to the concept of theWorld Business Council for Sustain-able Development (WBCSD), the fol-lowing examples can be examinedand evaluated in relation to theirpositive influence on material inten-sity, energy intensity, toxic disper-sion1, recyclability2, use of renew-able resources, and durability.

The following examples illustratehow Schindler has used intelligentsolutions, new technologies, andvalue analysis to achieve majorprogress in reducing the consump-tion of energy and materials. Thepressure to reduce costs has posi-tively influenced the developmentof new elevator concepts.

Toxic dispersion: dispersing substances whichare hazardous to health and the environment

Recyclability: using renewable materials, andrecycling products and components

Service over the entire lifetime of the elevatorAverage distribution of work over 30 years in %

3366

Replacement

Modernization

Repair

Maintenance

Planning

Order processing

Production

Installation


Synthetic ropes instead of steel: safer, lighter, moredurableFor more than 100 years, the ropesused to move elevator cars havebeen made of steel. Schindler hasnow developed the SchindlerAramidsynthetic rope, which is certified ac-cording to EU directives and bringsnumerous advantages:

SchindlerAramid is four times lighterthan a conventional steel rope andhas a longer life-time. The syntheticrope has higher fatigue strengthunder reverse bending stress thansteel ropes, which allows bends tohave a smaller radius. The tighterbending radius makes it possible touse smaller traction sheaves, whichhave lower torque, and thereforeconsume less energy. Schindler-Aramid needs no lubrication andcauses less noise. Its functionalsafety is permanently monitored bymeans of built-in sensors.


World premiere: SchindlerAramid

1

PositiveimpactMaterial intensity

Energy intensity

Toxic dispersion

Recyclability

Renewable resources

Durability

SchindlerAramid fully syn-thetic elevator rope onyellow traction sheave ofthe new permanent-magnetdrive. Neither the aramidrope nor the nylon tractionsheave require lubrication,which especially benefitsthe environment

1

Bending radius

Steel ropeAramid rope

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The drive and control system arethe heart of an elevator. Until thenineteen-seventies control systemsstill used relays, which were thenreplaced by transistors and subse-quently by microprocessors. Thisbrought radical savings in material,energy, and space. It takes only 1.8 hours to manufacture the con-trol system of a SchindlerSmart ele-vator. Its heart is no larger than theelectronics of a mobile telephone.

The peak of development achievedby Schindler so far is the Miconic 10control system. It is entirely basedon microprocessors and thereforeallows intelligent, energy-saving con-trol of the elevator operation. A chipis used to configure it to the custo-mer’s specific requirements on site.If the customer’s needs change,

the system can be modified at any time using only a minimum ofmaterials.


From relay to microprocessor

1 2


Energy intensity

Toxic dispersion

Recyclability

Renewable resources

Durability

Use of microprocessors radi-cally reduces the size of ele-vator control cabinets. Forexample, to save space theycan be located next to theelevator door on the top lan-ding

1/2

Relative sizes of control cabinetsElevators with machine room Elevators without machine room Elevators without machine room

SchindlerEuroLift SchindlerSmart MRL

Dimensions (mm) 1800�1000�400 2308�275�153 800�425�120

Volume (m3) 0.72 100% 0.097 13.5% 0.041 5.7%

Weight empty (kg) 120 100% 56 46.6% 14 11.7%

Weight with basic control (kg) 140 100% 71.5 51.1% 28 20%

Time for production (h) 4.5 100% 1.7 37.8% 1.8 40%

Energy consumption of the

basic control (W) 316 100% 150 47.5% 142 44.9%


Schindler’s permanent-magnet gear-less drive is much smaller andlighter than traditional drive motorswith gears. It was introduced in the SchindlerEuroLift elevator andbrings the following advantagesover older drives: reduced spacerequirements, lower energy con-sumption, less material, no oil, lessnoise, lower investment and run-ning costs.

The latest generation of Schindlerelevators, the SchindlerEuroLift andSchindlerSmart, dispense with themachine room. The drive is installeddirectly in the elevator hoistway,while the control is installed in thehoistway wall next to the landingdoor on the top landing. This cre-ates more usable space in the build-ing, because with traditional eleva-tors a special room has to be builtin, or on top of, the building toaccommodate the drive and controlsystem.


New drive: eliminates machine room

New elevator system withno machine room. To savespace, the motor is locatedin the hoistway headroom

Traditional machine roomwith elevator control inforeground at right, and ele-vator drive in background at left

1

2

1

2


Energy intensity

Toxic dispersion

Recyclability

Renewable resources

Durability


Sch

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Elevator systems

Without machine roomWith machine room

AB

A

B

Costs

Trac

tion

Sheav

e ø

Space

requ

irem

ents

Weig

ht

Oil con

sum

ption

Noise

level

Energ

y con

sum

ption

Eco-efficientdrive technologyIn %

100

80

60

40

20

Geared motor W250Gearless permanent-

magnet drivewith aramid rope

10067

10065

1000

10045

10025

10045

10054

Hoistway sketches for ele-vator systems with (right)and without (left) machineroom. The space savingshows up clearly


Traditional elevator control systemsfunction on the basis of car calls. Abutton is pressed to call the elevatorto a particular floor. Passengers onlyselect their destinations when theyare inside the car. The car stops ateach floor a passenger has chosen.

The Miconic 10 hall call destinationsystem developed by Schindleralready registers passengers’ desi-red destinations when they call theelevator. Instead of just pressing abutton, passengers input their desti-nations on a decimal keypad. Thecomputer registers the destination,and indicates via an illuminated dis-play and/or voice synthesizer whichcar the waiting passenger should

use. Passengers for the same des-tination are assigned to the samecar. The system reduces the num-ber of stops and avoids unnecessaryempty trips. Transportation capacityis increased by up to 80%, and pas-sengers reach their destinationsfaster. This means that in large buil-dings the same transportation capa-city can be provided with fewerelevators.

The hall call destination function canbe added on to any type of Miconiccontrol system. It brings a major im-provement in performance with onlyminimal extra material.

Additionally, Miconic 10 provideshandicapped passengers with spe-cial advantages: e. g., it recognizesblind passengers by their magneticelevator cards, and voice-announ-ces the car they should take. Pas-sengers with walking difficulties orin wheelchairs can use their eleva-tor cards or press a special buttonto order a “taxi ride” and make theelevator doors stay open longer.


World premiere: Miconic 10 hall call destination system

1

Energy savingswith Miconic 10•

In %

100

80

60

40

20

Without Miconic 10 = 16 850 kWh/monthWith Miconic 10 = 13 350 kWh/month

• Example showing the energy savings after modernization with Miconic 10. The Centre Financier office building in La Source, France, has 6 elevators.

1997 1998


Energy intensity

Toxic dispersion

Recyclability

Renewable resources

Durability

With the Miconic 10 hall call destination system, thefloor number is input beforethe elevator is entered. Asthe picture shows, the inputterminal can also be locatedat a distance from the ele-vator

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A B C D

Miconic 10••

A B C D6 6 6 61 1 2 2

Conventional elevator control•

A B C D10 8 3 34 3 3 3

Elevator

User

Stops

Elevator

User

Stops

5th floor

4th floor

3rd floor

2nd floor

1st floor

A B C D

5th floor

4th floor

3rd floor

2nd floor

1st floor

• With conventional elevatorcontrols passengers enter thefirst available car, no matterwhich floor they are traveling to.With this system, the car stops many times before it is free again.

•• With Miconic 10, passengersare grouped before they enter the elevator. Passengers traveling to the same floor reach their des-tination directly without stopping. Fewer floors are traveled to, and the car becomes free again sooner.


Schindler elevators can use recuper-ation to feed energy back into thepower supply when they brake trav-eling down and – thanks to thecounterweight – when they travelup with only a light load.

This technology can reduce anelevator’s energy consumption byabout one quarter.

As well as reducing energy con-sumption directly, recuperation alsobrings an indirect reduction: becausethe energy is recuperated, less heat is produced. This reduces thecooling needed in the machineroom.

The ecological advantages of energyrecuperation are unchallenged. Fromtoday’s economic standpoint, it ismainly of value in high-performanceinstallations.


Generate electricity while riding the elevator


Energy intensity

Toxic dispersion

Recyclability

Renewable resources

Durability

Energy savings withrecuperation

Braking while traveling downTraveling up with light load

Car

Counterweight•

Car

Counterweight•

• Weight of counterweight = weight of car + 1⁄2 maximum load

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Developments in information andcommunication technologies openup completely new possibilities inservicing. In this area all effortshave one common goal: to have theright person in the right place at theright time with the right material.

Wherever possible, Schindler’smodern components are fitted withsensors. This makes preventive ser-vicing of such parts possible. Theycan be replaced when their perform-ance deteriorates. The benefit forthe environment: components arereplaced with optimal timing.

Electronic diagnosis enables theservice center to immediately dis-patch the right specialist with theright material. This avoids unneces-sary journeys, which reduces thefuel consumption of the servicefleet.

Schindler’s Environmental Performance

Information technology improves servicing efficiency


Energy intensity

Toxic dispersion

Recyclability

Renewable resources

Durability

1 2

3

Service requests arriving atthe service center are trans-ferred electronically directto the service technician inthe field

The service technician has a WAP mobile telephonewhich displays the servicerequested and relevant datafor the elevator. He can callup additional informationonline from the SAP system

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Escalators: reduce speed, save energyThe new Schindler 9300 generationof microprocessor-controlled escala-tors is fitted either with a frequencyconverter or an energy-savingmode.

Crawling with frequencyconverterThe escalator runs at full speedwhen loaded with passengers, butautomatically reduces speed to acrawl when running empty. In thecrawl mode energy consumptioncan be reduced by up to 30% andthe peak current by up to 80%.

Energy-saving systemWith heavy traffic the escalator runin standard mode but automaticallyswitches to an energy-saving modewhen traffic is light. This allowsenergy savings of up to 30% withalmost no speed reduction.


World premiere: adaptable-speed escalator

21


Energy intensity

Toxic dispersion

Recyclability

Renewable resources

Durability

Infrared sensors (smallblack spots) in the handrailentry of the escalator detectapproaching passengers and switch the escalatorfrom an energy-saving crawlto normal speed. If no fur-ther passengers approachwithin a certain period oftime, the escalator switchesback to a crawl

1/2

Energy consumption

In %

100

75

50

25

Energy-saving mode

Escalator carrying heavy traffic 100Escalator moving at a crawl 40Escalator in standard mode 100Escalator in energy-saving mode 70

Crawling with frequency converter

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The life cycle of a Schindler elevator

For commodity elevators and esca-lators, which make up 90% of salesby volume, comprehensive life cycleassessments (LCAs) have beencarried out. They confirm that theSchindler strategy used to developnew products is successful not onlyeconomically but also ecologically.

Schindler’s objective is to implementeffective and efficient improvementsin technology and organizationalprocesses during the developmentphase of a product, which reducethe environmental impact of theproduct during the subsequent pha-ses of its life cycle. This proactivestrategy is more effective in savingtime and reducing costs than inter-vening when energy and disposalcosts, material costs, investmentsto conform with environmentalrequirements, or loss of image dueto environmental damage reducethe company’s competitiveness.

Life cycle assessment is used toidentify and evaluate relevant envi-ronmental aspects throughout thelifetime of the product, from pro-curement of raw materials, throughproduction and use, up to disposalor recycling of components andmaterials. This ensures that poten-tial ecological improvements areidentified in all the phases of anelevator’s life cycle. This data formsan important basis for a focusedenvironmental strategy.

It ensures that scarce financial re-sources are used efficiently wherethey are most needed.

Life cycle assessments of the mostrepresentative commodity elevatorsindicate that the relevant environ-mental impact occurs during thephase when the elevator is used,and when the raw materials are pro-cured. By comparison, the phasesof manufacturing, distribution, instal-lation, and disposal if done accord-ing to Swiss regulations are ofminor significance.

In the utilization phase the energyconsumption plays a decisive role(the electricity used for the drive,control system, car lighting, doordrive, and various fans).

The efficient use of energy duringthe elevator’s utilization phase, aswell as the raw materials and semi-finished products to be used, andtherefore their disposal or recycling,are specified by Corporate ProductDevelopment. Use of state-of-the-art technologies and pollutant-freematerials, development of intelli-gent concepts for control systems,and attention to the interactionsbetween product components makea significant contribution to an eco-efficient design of the elevator orescalator. Central considerations arethe availability and safety of theinstallation in operation.

Schindler already concentrates onoptimizing the operating phase ofthe elevator’s life cycle while it isbeing developed. This creates a bet-ter product, which is less expen-sive, protects the environment, andbrings additional customer benefits.

ISO 14001 certification for Cor-porate Product DevelopmentWith elevators and escalators, thebiggest leverage for reducing envi-ronmental stress, while at the sametime increasing customer benefitsand thereby also corporate value,occurs in the utilization phase. Forthis reason, in the reporting yearSchindler obtained its first ISO14001 certification for the Technol-ogy and Strategic Supply Manage-ment area of Corporate ProductDevelopment, thereby anchoringthe guiding principles of eco-effi-ciency in the process for developingnew products. However, it is a nat-ural feature of products with longservice lives that it takes a long timeuntil old products are replaced bynew ones. For this reason, progresswith eco-efficiency is not so rapid,even though Schindler has com-pletely renewed its range of prod-ucts.

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ISO 14001 certificate forCorporate Technology and Strategic Supply Man-agement

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Life cycle analysis ofa standard elevatorEnvironmental pollution points (USP 97) over 30 years in %

01973665

70

60

50

40

30

20

10

DevelopmentMaterial supply

ProductionPackaging, transportUsage, incl. service

Disposal



Act locally

The life cycle assessment showsthat for elevators the environmentalimpact of the production phase isminimal. Even so, at all Schindlermanufacturing plants efforts areconstantly being made to improvethe environmental situation. Compli-ance with local environmental regu-lations is a matter of course. Beyondthis, all over the world Schindleruses only water-soluble paint, gasinstead of oil for heating, and allproduction plants have waste man-agement programs. In the USA, theenvironmental performance of aSchindler plant won a special award.

Environmental award forSchindler GettysburgIn 1999 Schindler Gettysburg wonthe Business Environmental Stew-ardship Award presented by theChamber of Commerce. The awardwas for the following environmentalperformance parameters:

– Continuous monitoring and evalu-ation of environmentally relevantdata

– Professional waste management– Permanent environmental training

of employees– Massive reduction of air-polluting

emissions– Use of solvent-free paints– Use of solvent-free adhesives– Recycling of paper, metal, oil, fluo-

rescent light tubes– Waste water purification

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Employees of SchindlerGettysburg proudly displaythe Business EnvironmentalStewardship Award pre-sented by the Local Cham-ber of Commerce (from l. tor. Ken Farabaough and JohnMcKenna, representatives of the Chamber of Com-merce, James Overby,Phyllis Chant, Doug Miller,Schindler Gettysburg)

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Important addresses

For further information aboutour company, our productsand our services, pleasecontact one of the followingaddresses:

Schindler Holding Ltd.Seestrasse 55CH-6052 HergiswilSwitzerland

T+41 41 632 85 50F+41 41 445 31 34

Schindler Management Ltd.Zugerstrasse 13CH-6031 EbikonSwitzerland

T+41 41 445 32 32F+41 41 445 31 34

Corporate CommunicationsT+41 41 445 30 60F+41 41 445 31 44

[email protected]

www.schindler.com

Europe, India, Middle East and AfricaSchindler Management Ltd.Zugerstrasse 13CH-6031 EbikonSwitzerland

T+41 41 445 32 32F+41 41 445 31 34

USA and CanadaSchindler Elevator Corporation20 Whippany RoadPO Box 1935Morristown, N.J. 07962-1935USA

T+1 973 397 65 00F+1 973 397 36 19

www.us.schindler.com

Latin AmericaLatin America OperationsAvenida das Americas 700, Bloco III,sl. 140/141Rio de Janeiro, RJBrasilienCEP 22640-100

T+55 21 3803 7688F+55 21 3803 8032

www.la.schindler.com

Asia/PacificSchindler Management Asia/Pacific Ltd.29/F Top Glory Tower262 Gloucester RoadCauseway Bay/Hong Kong

T+852 2574 38 81F+852 2574 38 93

ALSOALSO Holding AGSeestrasse 55CH-6052 HergiswilSwitzerland

T+41 41 349 71 00F+41 41 349 70 70

www.also.ch Sch

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Overall Responsibilityand ConceptSchindler Management AGCorporate Communications6031 Ebikon, Switzerland

Graphic DesignGottschalk+Ash Int’l

PhotosPictures on pages 3, 4, 15, 18, 21, 24, 27, 30,36, 40, 43, 59:Peter Gunti, SolothurnBack cover: Peter Schälchli, Zurich

TextSchindler Management AGCorporate Communications6031 Ebikon, Switzerland

Typesetting andPrintingNZZ Fretz AG8952 Schlieren, Switzerland

The Annual Report of theSchindler Group for 2000 con-sists of the Activity Reportand the Financial Statements.

The original German languageversion is binding. English,French, and Spanish transla-tions of the Activity Reportare also available. The Finan-cial Statements is published in German and English only.

“Focus, alignment and clarity lead to solid results.”Alfred N. Schindler

Artist: Stephan Pauli

Documents

Schindler1).pdfSchindler 7 Annual Report 2000 Schindler Group For the benefit of shareholders, it will be proposed to the Annual Gen-eral Meeting on April 9, 2001, to make a further