Innovation 2001 12 Innovations to Benefit the Customer

Annual Report 2001 Activity Report Schindler Contents 2 Key figures

Statement of the Board of Directors 5 Good result despite complex environment

Innovation 2001 12 Innovations to benefit the customer

Market profile elevators and escalators 16 Europe 22 Americas 28 Asia/Pacific 34 IMEA

41 ALSO

44 Corporate Governance

50 Financial statements Group, Condensed

52 Financial statements Schindler Holding Ltd., Condensed

54 Information for shareholders Charts

Schindler’s environmental performance 64 Multidimensional thinking to benefit the environment

68 Important addresses

Illustration concept The full-page illustrations high- light Schindler’s latest products and innovations, while the smal- ler pictures in the text document noteworthy installations made during the 2001 reporting year.

The back cover of the annual report is devoted to the work of young artists whose creativity enlivens our business premises. of March to theOrdinaryGeneralMeeting CH Schindler HoldingLtd. of theBoardDirectors 74 Activity Report2001 th FinancialYear - 6052 Hergiswil 26 , 2002 NW , Schweiz,

Schindler Key figures 2001

Group 2000 2001 Mio. CHF Mio. CHF ∆ % ∆ % local currency

Operating revenue 8 530 8 327 –2.4 +0.6 EBITDA• Group 624 680 +9.0 EBITDA Elevators and Escalators in % 9.2 9.9 EBITDA ALSO in % 1.0 1.9 Profit before taxes 374 443 +18.4 Net profit 299 379••• +26.8 Cash flow•• 417 555••• +33.1 Orders received Elevators and Escalators 6 852 6 658 –2.8 +0.9 Orders received ALSO 1 898 1 768 –6.8 –5.6 Shareholders’ equity 1 317 1 329 +0.9 Personnel at year-end 43 334 41 524 –4.2 • EBITDA: Operating profit and depreciation/amortization •• Cash flow: Net profit before minorities and depreciation/amortization +/– change of provisions ••• See Financial Statements, page 28, note 22, effect of deferred taxes

Dividends proposed by the Board of Directors of Schindler Holding Ltd. 2000 2001 Registered share CHF 50.– CHF 50.– Bearer participation certificate CHF 50.– CHF 50.– You will find further key figures starting on page 54

Orders received Return on equity ROE

In million CHF In % 6 362 6 604 7 695 8750 8426 9 000

8 000 25 Schindler uses the 7 000 telecommunications tower of 6 000 20 Deutsche Telekom • 5 000 in Frankfurt for tasting the 4 000 15 Schindler 700 3 000 high-speed elevator. The market 2 000 10 launch is planned 1000 for the fall of 2002. Speeds up to 10 meters per 1997 1998 1999 2000 2001 1997 1998 1999 2000 2001 second are standard for Schindler 700 elevators; • 1998: IAS-Restatement Germany

2 Annual Report 2001 Schindler Group

4 Geschäftsbericht 2001 Schindler-Konzern market segment the mid-range is designedfor elevator system Switzerland. This Hotel inLucerne, in theEurope Schindler Good resultdespitecomplexenvironment Statement oftheBoardDirectors exposed industriessuchasaircraft, ible, especiallyinanumberofhighly Global overcapacityisbecomingvis- may beoneofthefewexceptions. taneously allovertheworld.China indicators arepointingdownsimul- period, practicallyallearlyeconomic For thefirsttimeinpostwar psychology ofthefinancialmarkets. quarter andareweighingonthe sent, haveintensifiedinthefourth ary tendencieswerealreadypre- is steadilyspreading.Therecession- delay. only affectSchindlerwithacertain macroeconomic environmentwill IT the endof debt. Demandhasbeenfallingsince nations andcompaniesaredeeplyin had lastedforseveralyears.Many rapidly risingexpenditurewhich period ofeuphoricinvestmentwith The reportingyearsawtheendofa End ofalongphasegrowth , andtelecommunications.This EuroLift 2000 , anddisillusionment operating revenueby These effectsreducedconsolidated real andweakeningoftheeuro. notably devaluationoftheBrazilian effects ofcurrencyexchangerates, fered fromsubstantialnegative On theotherhand,resultsuf- vious year. which was current year. improvements inproductivitythe have tomakefurthersubstantial cribed attheoutset,Groupwill new economicenvironmentdes- ments, andparticularlyinviewofthe ALSO taxes reached year. Consolidatednetprofitbefore improved resultinthereporting ness areasyieldedasubstantially Our intensiveeffortsinbothbusi- Higher netprofit Despite theoperationalimprove- processes movedahead.Although folio andstandardizationofinternal ness, renewaloftheproductport- In theelevatorandescalatorbusi- page change indeferredtaxes(seealso was entirelyattributabletothe the cashflow, wasevenbetterbut dated netprofitaftertaxes,andin vious year. Theincreaseinconsoli- it wasstill was lessthanoriginallyexpected, lion or ’s 28 3 contributiontonetprofit %. of thefinancialstatements). 144 18 % morethanthepre- % morethanthepre- CHF 5 Annual Report 2001Schindler Group 443 CHF million, 258 mil- In China,therewassuccessintrans Relative to growth Operational progress,modest CHF one withamajorityinterestof owned subsidiariesinChina,and Schindler nowhasfourwholly with headquartersinShanghai. wholly ownedsubsidiarycompany from lion. Inthefuture,Schindlerwilluse in thereportingyearby Consolidated operatingrevenuefell amortization ( interest, taxes,anddepreciation/ Consolidated operatingprofitbefore modest growthof0.6%. lion. Inlocalcurrencies,therewas tor Co.( forming theChina-SchindlerEleva- include SchindlerIndia of consolidationwasexpandedto percent. operating profitwaslessthanone Group operatingrevenueand of thesefirst-timeconsolidationson (Suzhou) Co.Ltd.,China.Theeffect India, andSchindlerElectronics 8 CHF 530 CSE 624 million to 31 ) jointventureintoa . EBITDA million to 12 . 2000 CHF ) increased the scope PVT 2 CHF 8 . 4 327 % from Ltd., 680 mil- 55 9 mil- %. % -

Schindler 1

EBITDA as the benchmark and com- Operational improvements in ment on it, since this figure is also the elevators and escalators published by competing companies business and allows more meaningful com- Operating revenue in the elevators parisons to be made. However, EBIT and escalators business fell by 1.0% will also still be published in the from CHF 6 669 million to CHF 6 601 Financial Report. million, although in local currencies it increased by 2.5%. Negative Since the end of 2000 the number effects of currency exchange rates of employees went down by 1 810, caused a fall in the reported operat- or 4.2%, to 41 524. In the elevator ing revenue of around CHF 240 mil- and escalator business, the number lion. However, expressed in local employed fell by 1 594, or 3.8%, currencies, operating revenue rose roughly half of which was attribut- by 4.4% in North and South Amer- 2 ica, 2.1% in Asia, and 1.1% in Europe. rencies they rose by 0.9%. The proportion of new products in the EBITDA improved by 6.9% from CHF orders increased to 70%. The new 612 million to CHF 654 million, and SchindlerEuroLift line of elevators the EBITDA margin rose from 9.2 % met with a very good reception in to 9.9%. EBIT changed by 11.6% the European market. In North from CHF 422 million to CHF 471 mil- America, order bookings increased lion, and the EBIT margin from 6.3% thanks to the newly launched to 7.1%. The operational improve- Schindler 330 A hydraulic elevator. ment is proceeding steadily, but not Schindler also took a successful as rapidly as hoped. Although the step toward re-entering the Ameri- proportion of orders comprising can high-performance segment with new products with a more favorable 3 cost structure has increased able to adjustments in China. At sharply, this is not yet reflected in 1 Several SchindlerSmart MRL systems are installed in the ALSO there was an overall decline in the operating revenue due to the Quartiere Via Adriano resi- the workforce of 216 employees, or long throughput time of the related dential complex; Milan, Italy 13.7%, due to restructuring in the construction projects. For example, (Photo: Peter Gunti, Solothurn) systems business. orders for the SchindlerEurolift, which was launched in the reporting 2 The Gateway project in Dur- Consolidated order intake fell by year, will only start being executed ban, with two Schindler 9300 outdoor escalators in 3.7% from CHF 8 750 million to CHF in 2002. Also in relation to the the main entrance. Numer- 8 426 million. Expressed in local cur- processes, some of the present ous other Schindler prod- best practices can only be enforced ucts are also installed in the rencies, orders were 0.5% below Gateway shopping center; the previous year’s value. The con- within the scope of the reorganiza- South Africa solidated order backlog at the end tion described later in this report. 3 The ultramodern Media of 2001 was 8.8% above the previ- And in China, the delay in obtaining House in Hanover is fitted ous year’s value (9.9% in local cur- approval for 100% ownership of CSE with 4 SchindlerEuroLift rencies) at CHF 4 039 million. caused the structural optimization elevators; Germany (Photo: there to fall behind schedule. Thies Ibold, Hamburg)

Order bookings for elevators and escalators closed at CHF 6 658 million, which was 2.8% less than the preceding year, although in local cur-

6 Annual Report 2001 Schindler Group 1 ings, norfortheSchindler mand forthenewSchindler greater commitmenttocontinental to tougherglobalcompetitionby 2001 put intoeffectonNovember especially affectingEurope,were elevators andescalatorsbusiness, agement Committeelevelofthe Organizational changesattheMan- Management Committee Organizational redesignofthe total ofmorethan and this didnotreducethe due toeconomicfactors.However, there wasanoverallfalloffinorders Square buildinginNewYork. InAsia, vator installationsatthe5Times operational handoverofthefirstele- In Europeintheyears position asworldleader. business, Schindlermaintainedits dential segment.Intheescalators vator destinedfortheChineseresi- Prize for Swiss andtheEuropeanLogistics tive processwasawardedboththe logistics conceptandforthisinnova- ment, Schindlerintroducedanew are alsoharmlesstotheenviron- priced standardizedelevatorswhich for on-timedeliveryofeconomically ment. To meetthestrongdemand this mostimportantmarketseg- currently Europe’s numberonein room-less elevators,whichmakesit elevator linefortallresidential 2001 . Theyreflecttheneedtoadapt 2001 Schindler soldacumulative . 2400 32 1 strong de- 999 machine 100 , 500 2000 1 C , build- ele- P , 2 stration and in thedownstreamfinancial admini- objective istoreduceoverheadcosts line withbestpractice.Afurther tight standardizationofprocessesin reduction incomplexityaswell & Repairs.Theobjectiveisaradical & ModernizationandMaintenance the twoareasofNewInstallations realigned tofocusmorestronglyon in Europewillbemanagerially The country-basedgroupcompanies cost savings. tional efficiencyandrealizingfurther precondition forincreasingopera- The organizationalredesignisthe enforce standardizedcoreprocesses. products andthedeterminationto services. IT areas byusingshared 7 Annual Report 2001Schindler Group mittee. member oftheManagementCom- report toaspecificallyresponsible tion Technology OfficerEuropeeach Services EuropeandChiefInforma- The functionsofSharedFinancial ness processesthroughoutEurope. strengthen andstandardizethebusi- and ProductionEurope,whichwill ernization, Maintenance&Repairs, areas ofNewInstallations&Mod- reporting tohimthethreefunctional Miguel A.Rodrígueznowalsohas rially splitintwoasitwasformerly. Rodríguez insteadofbeingmanage- the singlemanagementofMiguelA. pean markethasbeenplacedunder ment Committeelevel,theEuro- For thispurpose,attheManage- 2 1 glass; London,England seem tobemadeentirelyof panorama elevatorsalso office building:thethree dominates notonlythenew Germany hotel; RottachEgern, vators areinstalledinthe 10 ele- used bymariners. recalls navigationcompasses The flooroftheelevator for theSeehotelÜberfahrt. Complex elevatordesign In Chiswell Streetglass

Schindler 1

Heikki Poutanen, Member of the business, the new position of Chief The renewed drop in demand caused Management Committee formerly Information Technology Officer (CIO) the Systems Division to undertake responsible for Europe Central, took was created at Management Com- further restructuring. This allowed over management of the new mar- mittee level, and Brent Glendening, the previous year’s operational loss ket area of EMIA comprising IMEA who is an American citizen and until of CHF 32.6 million to be reduced to (India, Middle East, and Africa) and July 31, 2000, was Head of IT at CHF 10.4 million, despite the nega- Eastern Europe. Former IMEA Exec- Schindler USA, was appointed to tive effect of exceptional costs utive Vice President Richard Maioc- this position on September 1, 2001. amounting to around CHF 4.2 million. chi left the Management Committee Erich Ammann, formerly Head of to concentrate on special assign- Area Controlling, and before that Dividend and capital structure ments within the Group. CFO of Schindler USA, became of Schindler Holding Ltd. Group CFO as successor to Ernst Schindler Holding Ltd. closed the Because information technology Bärtschi on January 1, 2002. 2001 reporting year with a net profit increasingly affects the real core of CHF 115 million (previous year All other areas of the Management CHF 104 million). The next Annual Committee, with Peter J. Zbinden General Meeting on March 26, as President, David J. Bauhs as 2002, will be requested to approve Executive Vice President Americas, payment of the same dividend as in Jürgen Tinggren as Executive Vice the previous year of CHF 50 per reg- President Asia/Pacific, Rudolf W. istered share and bearer participa- Fischer as Chief Corporate Human tion certificate. Resources Officer, and Jörgen Svenningsson as Chief Technology In accordance with the decision and Supply Officer, remain taken at the Annual General Meet- unchanged. ing last year, repayment of CHF 35 of the nominal value of each of the ALSO: significant operational registered shares and bearer partici- improvement pation certificates, with correspond- 2 The reporting year brought a con- ing reduction of the capital, was traction in the PC market. In this effected on June 22, 2001. The cap- environment, the revenue of ALSO ital structure at the end of 2001 is dropped by 7.3% to CHF 1726 mil- shown on page 60 of the Activity lion. However, by comparison with Report. the previous year, operating profit increased from CHF 6 million to CHF 20 million. 1 4 Schindler 9300 escalators and 7 commission elevators provide access to the under- The main focus in the Distribution water world of the Nagoya Division was on improving profita- Bay Aquarium; Nagoy, Japan bility. By concentrating on leading 2/3 Schindler Lifts Hongkong brands, and continuously improving Ltd. won the “Project of the internal efficiency, operating profit Year Award”, presented by of CHF 30.4 million (previous year trade journal “Elevator World” 3 for its modernization of the 37.6 million) was earned despite the elevators in the Mandarin falloff in revenue. ALSO’s acknowl- Oriental Hotel, Hong Kong. edged competence also gained it a The installation comprises 6 Schindler 700 elevators major logistics contract with a sub- with Miconic 10; China stantial service content from Swiss- com Mobile.

8 Annual Report 2001 Schindler Group 2 a further After thatdate,inasecondtranche, responding reductionincapital. released foreliminationwithacor- and participationcertificates,was was completedonNovember the purposeofreducingcapital bearer participationcertificatesfor standing registeredsharesand eral Meetingtoreducethecapital fore bemadeattheupcomingGen- commenced. Aproposalwillthere- standing whenrepurchasingwas and participationcertificatesout- ing in 2001 mum of The programtorepurchaseamaxi- ing intotalto amounted to tificates wererepurchased.These and 1725 41 . AttheAnnualGeneralMeet- 2000 6 7184 17 % oftheoriginallyout- , afirsttranche,amount- bearer participationcer- 4 1 . . 3 7 registered shares % oftheshares % oftheshares 9 , 1 period hasexpired. the legallyrequirednotification of bothsecuritiesto thereby reducingthenominalvalue bearer participationcertificates, split oftheregisteredsharesand CHF liest attheendofJune share splitwilltakeplaceattheear- value, reductionofcapital,and The partialrepaymentofnominal tal willcomprise After thisreduction,theequitycapi- by eliminatingthissecondtranche. ticipation certificatefrom the nominalvaluepershareandpar- reduction ofthecapitalwillreduce the GeneralMeetingfora Finally, aproposalwillbemade to of and bearerparticipationcertificates nal valueoftheregisteredshares ther partialrepaymentofthenomi- proposal willalsobemadeforafur- At thesameGeneralMeeting,a tion certificates. shares and CHF 10 40 each. each. Thesubsequent 5 699 550 9 3 682 735 Annual Report 2001Schindler Group bearer participa- CHF 2002 registered 1 CHF 10 each. , after -for- 50 1 to tees. Thereismoreaboutthison establishment ofvariouscommit- sion ofthecorporatebylawsand tional requirements,includingrevi- improved tomatchtoday’s interna- ler HoldingLtd.wassubstantially the corporategovernanceofSchind- for electiontotheboard.Inaddition, Corporation, willalsobenominated Miller, PresidentofHyattHotels D. forthcoming GeneralMeeting,Scott Directors threeyearsago.Atthe already electedtotheBoardof tive BoardofContinentalLtd.,was Grünberg, ChairmanoftheExecu- Hubertusvon With thisintention,Dr. the Americas,Asia,andEurope. represent thekeymarketregionsof the BoardofDirectorswhodirectly least threenon-Swissmembersof In themid-term,thereshouldbeat governance Improvement ofcorporate pages 44 2 1 to Peter Gunti,Solothurn) 14 ico center inMexicoCity, Mex- entertainment andretail tors fortheParqueDuraznos Swisscom Mobile( outsourcing oflogisticsfor bution businesswiththe tence intheclassicaldistri- again proveditscompe- In thereportingyear, 49 Schindler of theActivityReport. 9300 escala- Photo: ALSO

Schindler 1

Outlook for the Group: nomic climate is difficult anyway, lower than the corresponding CHF productivity improvement is the risk of the exchange rate prob- 443 million of 2001. However, for top priority lems becoming even more acute the years 2003 and 2004, substantial Despite the economic turbulence, continues. In South-East Asia the improvements in the result are the various measures being pursued weak growth rate may continue, already expected relative to the con- to improve productivity will be whereas China should expand fur- solidated net profit now being accelerated. This applies not only to ther. reported (see Financial Statements, implementing the new organization, page 36, note 34). but also to simplifying the product In the current year, ALSO anticipates range by replacing old products, further improvement in income Thanks to employees enforcing standardized processes in despite restrained demand. The dis- The Board of Directors thanks all line with best practice, and introduc- tribution business will continue to employees most cordially for their ing shared services. focus on strengthening its income. hard work and endeavors in serving The systems business will imple- our customers. In the face of relent- The recessionary tendency of the ment further measures to increase lessly increasing competitive pres- global economy is also becoming productivity, after which it should be sure, we all have a duty to question increasingly apparent in the demand possible to work profitably again. traditional ways and to ensure that for elevators and escalators, and the most efficient solutions prevail consequently adding to pressure on On the basis of these assessments, right across the board. In a world prices. In Europe, there are increas- and excluding extraordinary project full of radical change and challenge, ing signs of economic weakening. costs of between CHF 300 and 400 the company’s future can only be In North America, the outlook is million which have not yet been secured by its ability to perform. uncertain: some segments of the finalized, the present expectation is market have begun to contract. In for consolidated profit before taxes South America, where the eco- to be slightly higher in 2002 than in the previous year. If the stated extraordinary project costs were in fact to fall entirely in 2002, the consolidated profit before taxes for that year would be approximately 80%

Alfred N.Schindler Luc Bonnard Chairman of the Board of Directors Vice Chairman of the Board of Directors

1 37 Schindler installations The new ceramic provide mobility aboard the brakes for 290 m long and 36 m wide Schindler 700 “Golden Princess” high-performances elevators use materials similar to te heat shields on space shuttles

10 Annual Report 2001 Schindler Group 11 Geschäftsbericht 2000 Schindler-Konzern Innovation 2001 Innovations to benefit the customer

During the reporting year, Schindler requirements become even more presented innovative solutions for demanding. It requires an even improving ride comfort and safety in greater effort to align the guiderails its high-performance elevators of completely straight. Moreover, such the future. The latest solutions apply buildings move in response to tem- materials used in air and space travel, perature variations and wind. as well as concepts from the automobile industry. A method of improving ride comfort which has been frequently used to Active chassis increases com- date is a passive stabilization system fort and optimizes installation which uses extra mass to damp processes vibrations. To achieve this, the ele- Rope traction elevators function like vator car is built to be rather heavy, a funicular railway: the elevator which has a negative effect on 1 car is pulled by ropes, and slides or energy consumption in long-term use. rolls up and down guiderails instal- vated and the use of modern control led in the hoistway. The passive Under the motto “smarter not and drive technology would only chassis consists of either sliding or heavier” Schindler is now using improve ride comfort to a limited rolling guide shoes. The travel char- intelligent, actively controlled chas- extent. And finally, this innovation acteristics of the car, and therefore sis to achieve a quantum leap in represents a substantial contribution the ride comfort of passengers, are overcoming not only the difficulties to the environment. Active chassis directly affected by how precisely of rail alignment but also the limita- technology not only reduces the the guiderails are installed, because tions of passive elevator chassis. bends, displacements, or uneven- The impulse for this has come from ness inevitably cause a rough ride. the automobile industry. While the 1 Machine room-less elevators from Schindler make their To achieve a comfortable ride, great elevator car is in motion, the newly entrance on the South Ameri- care has therefore to be taken when developed active chassis constantly can subcontinent with the installing the guiderails. In sky- compensates for any disturbing SchindlerSmart MRL adapted locally for the Brazilian scrapers and other tall buildings the influences which could negatively market affect ride comfort. Passengers experience a smooth, comfortable 2 Active chassis for the cars of high-performance eleva- ride of the standard they expect tors in skyscrapers enhance from a high-quality elevator. ride comfort and simplify the installation process (Photo: Peter Gunti, Besides this, the new system makes Solothurn) it possible to increase the speed of elevators in tall buildings without subjecting passengers to unpleasant lateral forces. Furthermore, the effort needed for periodic realign- ment of the guiderails can be reduced. These advantages of active chassis technology make it attrac- 2 tive for use on high-performance elevators with long travel heights, in landmark buildings, and in modernization projects where the guiderails would otherwise have to be reno-

12 Annual Report 2001 Schindler Group 1 gencies. Itmakesfreefallofthe tors fromSchindler. Thesafetyof themselves toelevatorsandescala- nominal speedof 1 a the sameamountofenergyaswhen (a carweighing falling elevatorcarinaskyscraper triggering thesafetybrakeofafreely lations basedontestsshowthat released whenthishappens.Calcu- Enormous amountsofenergyare becomes deliberatelyjammed. decelerate thecar. Ineffect,thecar ing wedgesgriptheguiderailsto brake underthecar, whosebrak- trolled emergencystopbythesafety nominal value,itisbroughttoacon- of thecarexceedsapredefined elevator carimpossible.Ifthespeed it isonlyintendedforextreme is thesafetybrake,eventhough safety componentoneveryelevator complex. Themostimportant safety systemsbecomeevermore and faster, thedemandsontheir priority. Aselevatorstravelhigher all thesepassengershasthehighest than Every dayaroundtheworldmore safety Ceramic brakesforgreater elevator installation. comfort anddurabilityofthe the elevator, butalsoincreasesthe energy consumptionforoperating brake reachtemperaturesupto occurs, theliningsofsafety stops inanemergency. Whenthis , 40 200 -t 700 on trucktravelingat degrees Celsius. million peopleentrust 13 5 , 000 10 Annual Report 2001Schindler Group m/s) releases kg movingata 70 km/h emer- for thenewSchindler when itre-entersthe safety brakewith that Schindlerhasdevelopeda friction surfaces.Itisforthisreason heavier, withcorrespondinglylarger would havetobemuchlargerand amounts ofenergythesafetybrake steel brakelinings:tohandlesuch This istoomuchforconventional and alsohasexcellenttribological extremely resistanttoheat,durable, phere. High-performanceceramicis from theintense is usedtoprotectaspaceshuttle formance elevator. Similarmaterial 1 180 the Schindler Car operatingpanelof for travelheightsupto newly introducedinAsia meters heat generated ceramic linings earth’s atmos- 700 500 high-per- elevator

Schindler Frankfurt, Germany, as a test environment for the components and subsystems (drives, controls, safety systems, etc.) of its high-performance elevators. Schindler particularly values being able to use the telecommunications tower because of its 222 meters hoisting height, which makes it possible to simulate high-speed elevator travel under real-life conditions.

During the reporting year, Schindler 1 performed tests at 10 meters per second with a rated load of 1600 kg properties (i.e. in relation to friction Environmentally friendly on the new Schindler 700 high- and wear) which produce a very high Both these innovations not only pro- performance elevator announced for braking effect. In contrast to safety duce a sharp increase in the per- 2002. These successful travel tests brakes with metal wedges, ceramic formance and benefits of elevator represent an important milestone brakes do not damage the guiderails installations, but at the same time for the Schindler high-rise business. when mandatory braking tests are also improve their environmental performed. The special properties of friendliness. The amount of mate- the ceramic material in conjunction rial used in manufacturing com- 1 The production plant for with the cleverly innovative design ponents is substantially reduced. SchindlerAramid, the But above all, the energy consumed world’s first fully synthetic of the brakes improve braking per- elevator rope, went on formance by more than 33%, with a by the elevator in its many years stream in the reporting year 65% reduction in volume, a 35% re- of operation is reduced even further, at SchindlerSynTec GmbH, which is responsible for duction in weight, and a 10% reduc- while the safety and comfort of manufacturing and market- tion in the number of parts, all of the installation are increased even ing the rope; Dortmund, which have a positive effect on the more. Germany energy balance. High-speed travel tests The two innovations described above will mainly be used in Schind- ler’s new high-performance elevators. However, the high-performance elevators themselves also have to be subjected to tough, intensive testing under conditions as near as possible to real life. For this pur- pose, Schindler uses the elevator hoistways in the telecommunications tower of Deutsche Telekom in

The custom-built elevator for the headquarters of Motorex harmo- nizes perfectly with the company’s corporate design and under- scores its dis- tinctive identity; Langenthal, Switzerland

14 Annual Report 2001 Schindler Group

Market profile elevators and escalators Europe

1 Stabilization at high level Economic developments in Europe The modernization business is during the reporting year were in expected to experience substantial line with expectations, and until the growth in the years ahead, stimu- terrorist attacks on September 11 lated by phased implementation of there were no signs of instability. the new European Safety Norms Those events obviously have an for Existing Lifts (SNEL). Implemen- impact on the further pattern of eco- tation in Belgium, where the regula- nomic activity in Europe, but the tions have been enforced by royal magnitude of their effect cannot yet decree, is already starting in 2002. be estimated. The market will also be affected by the introduction of the Good market coverage with euro as Europe’s common currency: new products as well as the monetary aspects, In the two key sectors of the market, this will also indirectly stimulate the Schindler’s position is good follow- general rate of growth and intensify ing the broadly-based launch of the cross-border competition. SchindlerSmart MRL 001, Schindler Smart MRL 002, Schindler Smart Stable market demand and MRL 002 DE (design edition), and the tough competition SchindlerEuroLift product lines. The In terms of unit volumes, the Euro- SchindlerSmart MRL 001 is the most pean markets as a whole remained competitive product for the basic stable. Competition in all markets segment of residential buildings, became tougher, and especially in while the SchindlerSmart MRL 002 the machine room-less elevator and the SchindlerSmart MRL 002 DE segment where other major players offer an attractive alternative for the took a more aggressive stance in the medium and higher segments of market. Despite these conditions, residential buildings and the basic order intake by value was held at a segment of commercial buildings. pleasing level. 2 The SchindlerEuroLift is especially Schindler wins awards valued for its good reliability and Schindler won several awards in the appearance. In many markets the reporting year, one of which was elevator has already reached its tar- the Logistics Prize 2001 of the Euro- geted sales volumes, while in other pean Logistics Association for its countries there is still further poten- project “Euro-Logistics – a radical tial in the basic segment of commercial buildings.

1 6 Schindler 9300 escalators The anticipated upswing in the mod- and 6 Schindler 9500 ernization business will give major moving walks are installed importance to the components and at the Kuloisten Kaup- pakeskus shopping center; kits destined for that area. Introduc- Raisio, Finland ing competitive solutions is the pre- 3 requisite for deriving maximum ben- 2 Escalator installations in the new Dock Midfield at efit from implementation of the new Unique Airport. The con- safety regulations, as well as for tract for 39 elevators, 49 Schindler 9300 escala- defending and expanding the port- tors, and 6 Schindler 9500 folio in this segment. moving walks is Schind- ler’s largest-ever order in Switzerland; Zurich-Kloten, Switzerland

3 Schindler delivered 6 elevators and 4 Schindler 9300 escalators for the new Congress Center in Salzburg, Austria

16 Annual Report 2001 Schindler Group 3 1 of thenewSchindler in associationwiththedevelopment logistics conceptwasimplemented tics inthereconfiguredEurope”. The solution forintegratedelevatorlogis- redesigned inlinewiththenewsitu- systems. Thelogisticshadtobe supply anddistributionofelevator processes andstructuresforthe vator line,andhasradicallychanged Smart MRL ele- 2 costs”. their personalopinions.The prize- tion inwhichconsumerscould voice competi- clared winnerofane-mail the sametime,Schindlerwasde- category fortheLiftLocsystem.At award intheWork andWorkplace Wo &Leisure, DailyLiving,Travel & Home nominated inallthreecategories– tors. Schindlerwastheonlycompany special serviceswhenusingeleva- provides handicappedpeoplewith Aw the formofitsBreakingBarriers from theEuropeanCommissionin A secondhonorforSchindlercame as cutting logisticscostsbyasmuch ing itsenvironmentalburdenand Schindler hassucceededinreduc- With thenewlogisticsconcept, tion, andintroductionoftheeuro. monization of customsduties,har- cross-border ation inEurope,suchasabolitionof deliv provements inqualityandon-time chain canbringimpressiveim- integral managementofthesupply project clearlydemonstratesthat “the award, thejuryhighlightedthat customer. Intheircitationforthe transparency andreliabilityforthe 70 ard fortheLiftLocsystem,which rk andWorkplace –andwonthe ery atthesametimeascutting %, whileincreasingdelivery VAT 17 and otherlegisla- Annual Report 2001Schindler Group individual servicesandfunctions,as mation toprovideeachuserwith destination systemusesthisinfor- ing January tor grouptowheelchairusers.Start- cation ofthelargestcarinaneleva- guidance forblindpeople,andallo- leaving thecareasier, acousticuser open timestomakeenteringand elevator usersincludelongerdoor- which areactivatedforhandicapped unauthorized access.Functions well astosecurethebuildingagainst The underlyingMiconic before theyentertheelevatorcar. means ofacodeorpersonal groups ofusers,tobeidentifiedby which enablesindividualusers,or LiftLoc isauserrecognitionsystem of designvirtuosoAlbertoAlessi. ted byajuryunderthechairmanship winners werenominatedandselec- name ofSchindler tem willbemarketedunderthenew 3 2 1 Bratislava commercial buildingin Slovakia wasinstalledina MRL The firstSchindler Logistics Association presented bytheEuropean Logistics Excellence European Award for Kreidler (ltor)acceptthe Rodríguez, andStefan Guntram Begle,MiguelA. On behalfofSchindler, Cserszegtomaj, Hungary machine room-lesselevator; a Schindler the-art technologyinside: gives nohintofthestate-of- this privateviewingtower The historicalexteriorof 2002 002 , theLiftLocsys- ID DE elevatorin . Smart 10 MRL hall call Smart ID 2001 001

Schindler

Europe Major orders

Austria: Finland: 24 SchindlerSmart MRL 002 eleva- 10 SchindlerSmart MRL 002 elevators for refurbishment of GWG resi- tors for the Espoon Villa Laguuni dential buildings, Linz; 21Schindler- residential building, Espoo; 2 Schind- Smart MRL 002 elevators for WAG lerEuroLift elevators for the Avia residential buildings, Linz; 9 Schind- Forum office building, Vantaa; 3 lerEuroLift elevators for the Office SchindlerSmart MRL 002 elevators Provider office building, Vienna; 10 for the existing Katajanokan Amiraali SchindlerEuroLift elevators for the residential building, which previously Schindler Muthgasse office building, Vienna; 2 had no elevator, in Helsinki Schindler 9300 open-air escalators to transport people to the base ter- France: minal of the Zauchensee ski region, 26 elevators, including 15 Schindler- Salzburg; 12 SchindlerEuroLift eleva- EuroLift, one platform elevator, and 1 tors, 6 freight elevators, and 22 2 Schindler 9300 escalators for the Schindler 9300 escalators for the headquarters of Crédit Lyonnais EuroLift elevators, and 1 elevator for Shopping City retail center, Seiers- Bank, Paris; 5 SchindlerEuroLift ele- handicapped people for the DEKA berg; 7 elevators, including 4 Schind- vators with Miconic 10 for the Le Herriot office building, Frankfurt; 4 lerEuroLift, and 4 Schindler 9300 Dauphiné Part-Dieu office building SchindlerEuroLift elevators and 2 escalators for CCA City Center, Am- in the business center of Lyon; panorama elevators for the Gruga stetten 8 SchindlerEuroLift elevators for the Essen office building, Essen; 12

Axe Pleyel office building, Saint- Schindler 9300 escalators, 26 com- Czech Republic: ˆ Denis; maintenance contract for 32 mission elevators, and 2 Schindler- 8 moving walks for Ruzyne Airport, elevators (4 octoplexes) at Cœur EuroLift elevators for the Space Prague; 6 elevators, including Défense, La Défense, Paris; upgrad- Park entertainment center, Bremen 3 SchindlerEuroLift, for the Prague ing of 60 elevators with Servitel at a Gas Company Headquarters, Prague; low-rise residential building, Dieppe; Great Britain: 5 Schindler 700 elevators with modernization of 42 elevators, 32 37 Schindler 9300 escalators for Miconic 10 and 3 SchindlerEuroLift with gearless drives, at the Colline various buildings at Canary Wharf, elevators for the Raiffeisen Bank de Saint-Cloud luxury office com- London; 11 elevators for Greenside office building, Prague; 9 Schindler plex; maintenance of 44 elevators Place Leisure Complex, Edinburgh; 9300 escalators and 12 elevators for with Servitel at the C.H.U. Haute- 7 elevators, including 2 panorama

the Bertelsmann commercial build- Pierre Hospital, Strasbourg elevators, for Bunhill Row office ing, Prague; 15 Schindlerˆ Smart MRL building, London; 7 elevators, includ- 001 elevators for the Cerny´ Most Germany: ing 4 with Miconic 10, for AIG, Fen- housing estate, Prague 34 SchindlerSmart MRL 001 eleva- church Street, London; 14 Schindler tors for the Hellersdorf residential 9300 escalators for Central building, Berlin; 30 Schindler 9300 Shopping Complex, Croydon escalators, 21 commission elevators, 1 SchindlerEuroLift elevator, and 3 special elevators for the Alt- 1 8 Schindler 9500 moving walks provide mobility marktgalerie office building, Dres- at Munich’s “Neue Messe”. den; 19 SchindlerEuroLift elevators 12 moving walks of the The Schindler and 2 commission elevators for the same type were already Smart MRL 002 DE installed in the first phase (design edition) Wappenhalle residential building in of extension; Germany elevator installed Munich-Riem; 8 panorama eleva- in the Diversia shopping and tors, 4 freight elevators, 3 Schindler- leisure center demonstrates how this machine room- less line of elevators for the basic segment is readily adaptable even though it is highly standardized; Alcobendas, Spain

19 Annual Report 2001 Schindler Group 1 2 3

Greece: Norway: Spain: 12 Schindler 9300 escalators for the 6 elevators for modernization of the 6 SchindlerEuroLift elevators, 48 Athens Concert Hall; 7 traction ele- Finnmarken ship which sails bet- commission elevators, and 20 vators for the Hospital of the Olympic ween Bergen and Kirkenes; 2 eleva- Schindler 9300 escalators for the Games, Athens; 6 SchindlerEuroLift tors for the Grane Field North Sea high-speed railway (AVE)station, elevators for the new office building oil platform, planned to go into oper- Zaragoza; 18 Schindler 9300 escala- of Alte, a major Greek construction ation in 2003; 2 elevators for the tors, 6 Schindler 9500 moving walks, company, Athens Kvitebjørn Field North Sea oil plat- and 11 elevators for the Siete Pal- form, planned to go into operation in mas commercial center, Las Palmas; Italy: 2004; 35 SchindlerSmart MRL 002 26 elevators for the North Terminal 14 elevators and 2 escalators for Pa- and SchindlerEuroLift elevators for of Barajas Airport, Madrid; 8 eleva- lese Airport, Bari; 24 SchindlerSmart several residential buildings of Sel- tors for Santiago Bernabeu football MRL 001 elevators for a residential vaag, a general contractor; 7 Schind- stadium, Madrid; modernization of 8 building, Salerno; modernization of 7 lerEuroLift and commission eleva- elevators at the Hospital De Avilés, elevators for the US Navy, Naples; tors for Tønsberg Regional Hospital; Avilés, Gijón; modernization of 6 modernization of 6 elevators, 14 14 Schindler Smart MRL 002 eleva- elevators at the Hospital Ciudad de moving walks, and 1 Schindler 9300 tors for Etterstadkroken residential Jaén, Jaén; modernization of 5 ele- escalator at Fiumicino Airport, buildings, Oslo vators for the E.T.S.E.I.B. School of Rome; 37 elevators and 4 Schindler Engineering, Barcelona 9300 escalators for the Queen Mary Portugal: II cruise liner; 5 Schindler 9300 esca- Partnership agreement with the Switzerland: lators for the city walls of Arezzo Accor Amorim Group to supply and 12 elevators, including 5 Schindler install more than 150 elevators (most- 500 and 3 SchindlerEuroLift, for the Luxembourg: ly SchindlerEuroLift and Schindler- diAx Tower, Zurich; 12 elevators, 11 elevators, including 3 Schindler- Smart MRL 002) for 23 new hotels including 9 SchindlerEuroLift, for EuroLift and 6 with Miconic 10, being built in Portugal in 2001 and Swiss Federal Railways (SBB), for the Deka Bank, Luxembourg 2002; in partnership with the Sonae Basel; 2 elevators for hospital Insel- Group, 8 Schindler 9300 escalators, spital, Berne; 15 SchindlerEuroLift 4 Schindler 9500 moving walks, and elevators for the SUVA Innovation 1 The Twin Towers office and 9 elevators for the Algarve Shopping Center, Root; 8 elevators, including movie theater building for retail center in Albufeira, Algarve; in 6 which Schindler supplied 10 SchindlerEuroLift, for the main Schindler 9300 escalators; partnership with the Sonae Group, 3 railroad station in Zug; 11 Schindler Vienna, Austria Schindler 9300 escalators, 6 Schind- 9300 escalators for the Manor 9500 7 2 10 Schindler 9300 escala- ler moving walks, and eleva- Shopping Center in Bahnhofstrasse, tors in the luxurious tors for the Madeira Shopping retail Zurich; 9 elevators, including 6 Eldorauto car accessory center in Funchal, Madeira Schindler 500, and 2 Schindler 9300 store; Paris, France escalators for the Messeturm Basel, 3 The impressive Wöhrl Plaza Slovakia: Switzerland’s tallest building in Würzburg where 6 Schind- 2 SchindlerSmart MRL 001 elevators, ler 9300 escalators clad with satinized glass and two one freight elevator, and 2 Schindler panorama elevators installed 9300 escalators for the SOK sports, in the atrium fit in perfectly leisure, and cultural center, Zilina; 2 with the graceful light- flooded architecture of the SchindlerSmart MRL 001 elevators building; Germany and 2 SchindlerSmart MRL 002 elevators for the residential and commercial building at the main railroad station in Bratislava

Several Schindler 9300 escalators and Schindler 9500 moving walks take care of passenger mobility at Ataturk Airport; Istanbul, Turkey

20 Annual Report 2001 Schindler Group

Market profile elevators and escalators Americas

Position held under diffi- 1 cult conditions The North American economy was ingly numerous liquidity crises and in a fragile state in the reporting escalating corporate bankruptcies. year, with most indicators trending The prospects are extremely uncer- downward. Steadily declining con- tain, and the economic road ahead sumer feeling and increasing unem- will be rough. A recovery can only ployment caused development in be expected in the second half of the second half-year to go negative. 2002 at the earliest. With the outlook for corporate earnings generally bleak, and capacity In Brazil, where the economy had utilization also at a low level, there been trending continuously up for is no turnaround in sight before more than two years, there were 2003. The events of September negative effects from an unexpec- 2001 plunged many business sec- ted energy crisis as well as a num- tors into distress, causing increas- ber of external factors. These includ- 2 ed the economic crisis in Argentina and slower growth in the USA, which Successful new installations together caused the Brazilian cur- business rency to lose more than 35% of its The new installations business value and interest rates to be again set new records in 2001, both increased. for number of units and market share. Market leadership in escala- North American construction tors for commercial applications industry loses dynamism was also maintained. The launch of The North American construction the new Schindler 330 A hydraulic industry generally lost dynamism elevator improved the company’s during 2001, but to varying extents position in the basic segment of the in the different segments. Invest- market. On the other hand, modern- ments in properties for rental dec- ization business in the year under lined parallel to the decelerating rate review suffered from projects being of growth. The hotel and retail seg- delayed or postponed in the after- ments were especially weak. Added math of September 11. to this, there was a fall-off in dem- and for office buildings as the high- During the reporting year there was tech markets came to an abrupt halt. a surplus of vacant office space, mainly attributable to a standstill in The downward trend will continue formation of new companies, which at least for the first half of 2002. Although the rate of decline for income properties should become 1 At the Minnesota Life office building, two groups of less severe as the year progresses, 5 and 6 elevators are con- there will be less publicly funded trolled by the Miconic 10 construction investment due to hall call destination system. changed spending priorities. A fur- This is the first multi-group 3 installation of Miconic 10 ther effect of the uncertainty caused in North America; St. Paul, by the incidents of September 2001 Minnesota, USA will be to dampen airport terminal 2 Schindler installed a total construction and most probably of 64 elevators and 64 delay building of new sports com- Schindler 9300 escalators in the Pentagon; Arlington, plexes. Schindler has a very high Virginia, USA order backlog, which will act as a buffer against these negative devel- 3 Fifth Street Towers, two commercial buildings where opments. Schindler installed 31 elevators and 4 Schindler 9300 escalators; Minneapolis, Minnesota, USA

22 Annual Report 2001 Schindler Group 2

this makes up the greater part of 10 elevator control system in the the elevator market. In the reporting commercial buildings segment, mar- year, re-entry into the prestigious ket share was gained, allowing the high-rise segment was achieved. market leadership position to be Handover of the first group of eight consolidated further. The Mexican elevators ordered for 5 Times Square subsidiary restructured, sold its local (see also photo 1 on this page) in production plant, and moved into New York represents the achieve- new business premises. ment of a true milestone. Schindler Although other Latin American mar- New products bring success in kets were negatively affected by the South America difficult business climate, Schindler Although market volume in Brazil was able to maintain its strong posi- 1 remained stable relative to the pre- tion. vious year in terms of units, Schind- put additional pressure on lease ler defended its strong market posi- rates. Consequently, prices in the tion with its wide coverage and use maintenance business are still of global Group technologies. At the exposed to aggressive competition. end of 2001, the machine room-less Productivity in the maintenance area elevator SchindlerSmart MRL 002 must be increased in the future by was launched in the Brazilian market, greater utilization of technologies from where it will also be exported for remote monitoring of elevator to other countries in South America. installations. A further prerequisite This is a further improvement to the for delivering additional value to ser- existing range of products, which vice customers is to introduce new already cover all segments of the high-tech solutions providing online market. They especially include the access to building information. revolutionary Miconic 10 elevator control system, which is mainly 3 Success in high-rise segment offered for high-performance eleva- Since taking over Westinghouse in tors in commercial buildings at the 1989, Schindler had concentrated top end of the market. 1 Installation of the first its new installation elevator activ- group of eight elevators at 5 Times Square in New York ities in North America entirely on Mexico’s construction industry was marked Schindler’s success- the hydraulic segment, because negatively affected by slower ful re-entry into the high- rise segment in North Amer- growth of the US economy, but was ica; USA still able to stay on an expansion 2 The Torre la Castellana com- path because low interest rates on mercial building has a total bank loans encouraged investors to of 7 elevators in operation, put money into real estate. Thanks including 5 with a speed of 2 meters per second; Cara- to the newly launched Schindler cas, Venezuela 310 L and 510 L elevator models, as well as the success of the Miconic 3 In the Carrefour Tienda Ajusco-Picacho department store, 6 Schindler 9500 moving walks take care of customer mobility while a separate freight elevator ensures a smooth flow of goods; Mexico City, Mexico

23 Annual Report 2001 Schindler Group

Americas Major orders

California: Maintenance contract for 30 elevators and 26 escalators at the Unified Port District Airport, San Diego; maintenance contract for 48 elevators for ANJAC Fashion Commercial Buildings, Los Angeles

Illinois: Schindler Maintenance contract for 19 elevators at the One East Wacker office building, Chicago; maintenance contract for 10 elevators at the Presi- dential Towers residential and com- 1 mercial building, Chicago Ohio: Canada: Maryland: Maintenance contract for 18 eleva- 6 Schindler 9300 escalators and 8 Schindler 9300 escalators and tors at Huntington office building, modernization of 3 elevators for the 8 Schindler 9500 moving walks for Cleveland Hyatt Regency Hotel, Vancouver; expansions to Washington Inter- 2 Schindler 9300 escalators for the national Airport, Baltimore; mainte- Texas: Northlands Village Shopping Mall, nance contract for 116 elevators Maintenance contract for 197 eleva- Calgary; 4 Schindler 300 A elevators and 4 escalators at Johns Hopkins tors at Texas A & M University, Hous- and one Schindler 9300 escalator Hospital, Baltimore ton; maintenance contract for 25 for the Embassy Suites Hotel, elevators at Millennium Center Markham, Toronto; 6 Schindler 9300 Minnesota: office building, Dallas; maintenance escalators and 3 Schindler 330 A Maintenance contract for 31 eleva- contract for 6 elevators at The elevators for Union Railroad Station, tors and 4 escalators at Fifth Street Center office building, Houston; 26 Toronto; 4 Schindler 330 A elevators Towers office complex, Minneapolis elevators, including 12 Schindler and 4 Schindler 9300 escalators 700, and 10 Schindler 9300 escala- for London Arena, Hamilton; Nevada: tors at Houston Convention Center 8 Schindler 9300 escalators for the 37 Schindler 9300 escalators and Hotel, Houston Museum of Civilization, Ottawa; 14 hydraulic elevators for the Fash- 6 Schindler 9300 escalators for the ion Show Mall, Las Vegas; mainte- Bureau d’Affaires CDPQ commercial nance contract for 12 escalators and building, Montreal 6 elevators for the Flamingo Road at Boulevard Pedestrian Bridge, Las Argentina: Vegas 20 Schindler 310 L elevators for Madero Plaza residential building, New York: Buenos Aires 30 elevators, including 20 with Miconic 10, for Times Square Tower, New York City 1 The Palácio do Panalto, resi- dence and office of the Brazilian president, where 8 elevators were modernized. The nation’s most important public building was designed Environmental friend- by architect Oscar Niemeyer; liness and innovative Brasília, Brazil technology are fea- tures of the Schindler 330 A. Most elevators sold in America are hydraulic. This elevator is installed at the Hilton Garden Inn, Canonsburg, Pennsyl- vania, USA

25 Annual Report 2001 Schindler Group Brazil: Zentrum Corporate Tower, Mexico 11 elevators, including 10 with Mico- City; 8 escalators for 4 different de- nic 10, for the ItauSA Invest commer- partment stores of the Milano chain; cial building, São Paulo; 25 Schindler 10 elevators, including 9 with Miconic 9500 moving walks for Sonae, Porto 10, for Marly Corporate Tower, Mex- Alegre; 10 Schindler 9500 moving ico City; 11 elevators, including 9 walks for the Pão de Açúcar super- with Miconic 10 and 1 Schindler 330 market, São Paulo; 12 Schindler A, for Qurvic Corporate Tower, Mex- 9300 escalators and 2 elevators for ico City; 10 elevators, including 9 the bus/subway station and shop- with Miconic 10, for AICON Corpo- ping mall, Belo Horizonte; mainte- rate Tower, Mexico City; 9 elevators, nance contract for 16 elevators at including 6 Schindler 510 L and 2 Banco Central do Brasil, Brasília; Schindler 330 A, for the Velas Hotel, maintenance contract for 48 eleva- 1 Nayarta; 9 Schindler 510 L elevators for the Mayer Levy residential pro- tors at the Brazilian Central Court of ject, Cuajimalpa Federal District; 8 Justice, Brasília; maintenance con- Schindler 510 L elevators for the tract for 28 elevators at the Banco Cabo Lindo Hotel, Los Cabos; 6 ele- do Brasil commercial building, vators, including 3 with Miconic 10, Brasília; maintenance contract for 15 for the Intelicorp Building, Mexico elevators at ABN AMRO Real Bank, City São Paulo; modernization of 11 elevators at the Embratel telecommuni- Venezuela: cations company, Rio de Janeiro; 5 elevators for the Teleferico El Avila modernization of 22 elevators and cable car station, Caracas; 4 eleva- 10 escalators at Venancio shopping tors with Miconic 10, 4 panorama malls, Brasília; modernization of 16 elevators, and 2 escalators for the elevators at the Felizardo Furtado Torre Platinum office building, Valen- 2 residential building, Porto Alegre; cia; 6 escalators and 4 elevators for modernization contract for 14 esca- the Buenaventura shopping center, lators and 8 elevators at the Pátio Guarenas; 6 escalators and 6 eleva- Brasil shopping mall, Brasília; mod- tors for the Hyperinversiones Shop- ernization contract for 25 elevators ping Center, Maracay of the Petrobrás oil company, Rio de Janeiro 1 Modernization contract for Chile: the offices of Sudameris, a 8 elevators, including 6 with Miconic major bank, on the Avenida Paulista, heart of Brazilian 10, for the Vicente Huidobro office business; São Paulo, Brazil building, Santiago de Chile; 8 Schind- ler 100 L elevators for Icafal Ltd. res- 2 In the Isidora 2000 commercial building, 11 elevators idential building, Santiago de Chile; with Miconic 10 serve the 6 SchindlerSmart MRL 001 elevators 27 floors with a speed of 2.5 meters per second; Santiago, for the Ralún Ltd. residential build- Chile ing, Santiago de Chile

Mexico: The world-unique 67 Schindler 100 L elevators for Miconic 10 hall Cuatro Caminos Social Housing De- call destination velopment, Mexico City; 10 eleva- system increases the capacity of tors, including 9 with Miconic 10, for the three-car elevator system in the offices of Ing. Moisés Farca; Mexico City, Mexico

26 Annual Report 2001 Schindler Group

Market profile elevators and escalators Asia/Pacific

Market position stronger 1 despite lower momentum Economic recovery throughout the Asia/Pacific region lost momentum in the reporting year, with all countries experiencing slower growth in 2001. Caused by globally declining demand, this development was especially marked in countries heavily dependent on exports, such as Singapore, Malaysia, Taiwan, and Hong Kong. On the other hand, there were positive developments in China, where robust domestic demand caused GNP to rise more than 7%. 2

The construction industry as a whole Products well received was negatively affected by the less by market rapid development of the economy. Several products were launched in Demand fell particularly sharply in the reporting year. The innovative, Southeast Asia, whereas in other pre-assembled Schindler 500 P countries the decline was barely per- elevator system designed for me- ceptible. In China and Japan there dium- to high-rise buildings met was massive public investment activ- with good market acceptance in ity in infrastructure and residential China, Hong Kong, and Southeast buildings, which compensated for Asia. The Schindler 100 C elevator the fall-off in other segments. designed for residential buildings in China experienced strong demand. The possibility of a prolonged eco- Its range of application was also 3 nomic downturn in the USA, and the extended to address new market unclear prospects for Japan, cloud the economic outlook for 2002 with uncertainty. However, some poten- 1 In Kuala Lumpur’s main rail- tial for stimulating demand exists: road station 18 commission elevators and 25 Schindler firstly, due to China’s entry into the 9300 escalators ensure World Trade Organization (WTO); speedy train connections; secondly, due to substantial reduc- Malaysia tions in taxation in Taiwan, Korea, 2 The Island Resort residential and Thailand; and thirdly, due to development has more than 40 Schindler 700 high-per- major construction projects initiated formance elevators, 22 com- in China and Hong Kong. mission elevators, and 9 Schindler 9300 escalators. These include 32 elevators with Miconic 10 hall call destination control systems which check residents’ iden- tification cards to give them access to their respective floors. It is the first installation of this type in Hong Kong; China

3 A machine room-less Schind- ler 300 JMRLversion of the proven Schindler 300 elevator line was installed in the Hysteric Glamour commercial building; Osaka, Japan

28 Annual Report 2001 Schindler Group New corporate structure in China Negotiations with the joint venture partners of China-Schindler Elevator Ltd. came to a positive conclusion, allowing the company to be completely taken over by Schindler. Operational improvements already initiated at the company are encour- Schindler aging: they will be pursued even more vigorously in 2002. The newly gained independence simplifies operational management, enabling 1 Schindler to coordinate better its total operations in China and bring The trend to machine room-less them into line with Group strategy. elevators became much more pro- Elimination of costly functional nounced in the reporting year. The duplication, as well as intensive co- market launch of the new Schindler ordination of marketing activities, 300 P MRL machine room-less ele- will improve Schindler’s competi- vator system scheduled for spring tiveness and strengthen its position 2002 is therefore perfectly timed. in one of the world’s most important growth markets. Improved competitiveness Numerous projects for optimizing components and products delivered 1 The China Century Monu- outstanding results. In addition, ment where 4 Schindler 9300 escalators, including re-engineering of key processes and 2 outdoor versions, are 2 the introduction of shared services installed. The order also sharply improved productivity, included 1 freight and 3 segments. Thanks to the new kitchen elevators; Beijing, which showed through in both the China Schindler 9700 escalator, which is new installations and maintenance specially intended for use in traffic- businesses. The new electronics 2 Visitors to Taichung Central intensive transportation situations Shopping Mall have 24 factory in Suzhou, China, and the Schindler 9300 escalators such as subway stations, a number expanded responsibilities for escala- and 10 Schindler 9500 mov- of significant orders were won in tor manufacturing in China and ing walks at their disposal; Tai Chung, Taiwan this important market segment. All Malaysia, contributed to improving the new products therefore made a the cost situation. substantial contribution to enhanc- ing Schindler’s market position. To keep the structure in line with market needs, elevator manufacturing in Malaysia was discontinued at the end of 2001. By redistributing the production volume to other plants, costs were substantially reduced while maintaining customer service at a high level.

29 Annual Report 2001 Schindler Group

Shanghai, China cial buildingin Plaza 66commer- operation atthe elevators arein high-performance 36 Schindler700 1 Major orders Asia/Pacific way, Shanghai; Xin MinLineofShanghaiLightRail- commercial development,Brisbane Macarthur Chambersresidentialand fields Hornsbyshoppingcenter, 26 China: 3 Brunei: 1 5 and 8 Sydney; 12 8 Australia: and Brunei Sydney; the Watermark residentialbuilding, lands shoppingcenter, Melbourne; lators, elevators forSuriSeriHospital, Schindler Schindler Schindler Schindler hydraulic elevatorsfortheWest- Schindler 1 4 hydraulic elevatorfortheEast hydraulic elevatorsforthe 2 4 Schindler 11 Schindler Schindler 300 300 9500 9300 9300 15 P P elevatorsand moving walks, escalators and MRL escalators forthe 300 Schindler 9300 9300 P elevators, elevator for escalators, esca- 9300 - hai; Centurymart supermarket,Shang- building; for KwaiChungEstateapartment shopping center, Beijing; the secondphaseofJunefieldPlaza 3 18 500 23 Schindler 48 Hong Kong: which isNanjing’s tallestbuilding center andofficebuildinginNanjing, Shangmao CenturyPlazashopping Schindler 100 escalators, and 700 Suspension Railway; escalators fortheShanghaiMagnetic including road stationsof tors and Extension; tion of office andhotelbuilding;moderniza- tional Airport; tics CenteratHongKongInterna- tors, including center, Chongqing; Chongqing Southwestcommercial tors fortheK Center residential building Schindler Y T ower officebuilding; ue residentialbuilding,Urumqi; Schindler Schindler Schindler Schindler 38 C elevatorsfortheHongShi elevators, P, and 19 Schindler 6 14 ID 18 300 9500 elevators, including Schindler 3 11 300 and elevators, including Schindler Schindler 700 700 9700 2 Schindler 36 PMRL 25 13 Urban Renewal 31 moving walksforthe 10 P, KCRC CIS , fortheEdinburgh 9300 elevators, including and Schindler fortheTieh Chu Schindler elevators forthe escalators forrail- Annual Report 2001Schindler Group -e 124 , fortheLogis- 700 8 -v 6 East Rail 22 500 escalators for 9300 Schindler ision forthe Schindler Schindler 300 elevators elevators, 16 P and 700 9300 escala- P eleva- eleva- with 7 16 Indah shoppingcenter, Jakarta in KinkiDistrict; ing, Osaka for theShimoshinjoresidentialbuild- complete withhoistwaystructure 3 MRL To metropolitan residentialbuilding, 8 Japan: 2 2 4 Indonesia: 1 To versity InternationalAffairsOffice, high-rise residentialbuilding,Osaka; tors fortheSugawaraprefectural To chome SpecialCareNursingHome, Bank ofIndonesia,Surabaya; elevators fortheMurayamaDanchi Schindler elevators fortheCarrefourPuri Schindler Schindler service liftfortheAkasaka kyo; kyo; kyo; elevators forHitotsubashiUni- 3 2 9 1 Schindler elevators fortheOtakidam Schindler 127 System; China the ShanghaiLightRail first phaseofextensionsto tors weresuppliedforthe 300 9500 100 Schindler P elevatorsforthe J 4 moving walksand MRL Schindler Smart 300 elevators and JMRL 9300 J elevators 300 escala- 6 eleva- - J

Schindler 1

Malaysia: elevators for Sains Malaysia Asrama 9300 escalators, 5 Schindler 9500 42 Schindler 9300 escalators, 6 University, Penang; 14 elevators for moving walks, and 5 elevators for Schindler 9700 escalators, 12 Schind- Kuala Lumpur General Hospital, the Carrefour Onnuch shopping cen- ler 9500 moving walks, and 63 ele- Kuala Lumpur; 12 Schindler 300 P ter, Bangkok; 14 elevators, including vators, including 25 Schindler 300 P, elevators for Mara Teknologi Univer- 6 Schindler 300 P, for the Central for the shopping center, convention sity, Penang; 31 elevators for Petro- Plaza Rama II shopping center, center, and office buildings in Putra- nas Teknologi University, Perak Bangkok: 12 Schindler 9300 escala- jaya, the new administrative city of tors and 15 Schindler 9500 moving the federal government; 24 ele- Myanmar: walks for Tesco Lotus Supercenters vators, including 6 Schindler 300 P, 3 elevators for the Singapore in five cities and 2 Schindler 9300 escalators Embassy, Yangon for the apartment, college, and hos- Vietnam: pital complex of Sungai Buloh Hos- Philippines: 2 Schindler 100 P elevators for Da pital, Selangor; 12 Schindler 100 P 12 Schindler 9300 escalators and Nang Airport, Da Nang; 4 Schindler 1 elevator for Quezon City metro sta- 100 P elevators and 4 Schindler tion; 8 elevators, including 7 Schind- 9300 escalators for Da Nang Busi- ler 300 P, for the Cebu Hilton Resort ness shopping center, Da Nang; &Towers Hotel, Cebu 55 Schindler 100 P elevators for various apartment buildings in Hanoi; Singapore: 2 Schindler 9300 escalators and 9 elevators for the Cable Car Tower 1 elevator for Noi Bai Airport, Noi Bai office building; 9 elevators for the Parke-Davis industrial building; 25 elevators and 6 Schindler 9300 1 The David Jones Shopping escalators for an office building Center is served by 32 Schindler 9300 escalators; at the Harbourfront; 20 elevators, Sydney, Australia including 3 Schindler 300 P, for 2 The luxurious Roxas Trian- the Woodlands Spectrum 2 office gle residential complex is building fitted out with 9 Schindler 700 high-performance elevators; Makati City, Philip- Taiwan: pines 9 elevators, including 4 Schindler 300 P, for the SET TV Headquarters Office Building, Taipei; 12 Schindler 9500 moving walks for the Taiwan Sugar Nan Zi shopping center in Kaohsiung; 19 Schindler 300 P elevators and 8 Schindler 9300 escalators for the Taipei Silicon #1 Office Build- ing, Taipei

Thailand: 15 Schindler 9300 escalators, 8 2 Schindler 9500 moving walks, and 8 elevators for the Big C Rajdamri shopping center, Bangkok; 7 elevators, including 3 Schindler 300 P, People living in for the Mayfair Marriott Executive the Kerry Resi- Apartments, Bangkok; 4 Schindler dence apartment complex have 12 Schindler 500 elevators at their disposal which are specially designed for mid- rise travel heights; Shanghai, China

32 Annual Report 2001 Schindler Group

Market profile elevators and escalators India, Middle East and Africa (IMEA)

Consolidation in a sensi- tive region Business activity in the IMEA region continued to be heavily influenced by the political situation. The after- math of the terrorist attacks in the USA negatively affected the economic climate in all countries.

Despite a more aggressive stance by other major players, Schindler was able to strengthen its position in the most important markets of IMEA. All subsidiaries in the region endeavored to increase productivity and income by strictly aligning their 1 2 business activities to the Group strategy. In doing so, the companies Miconic 10. By winning the order to focused on improving customer ori- supply the new Delhi Metro Rail entation and quality of service. New subway system with 50 Schindler global products were launched, and 9700 escalators – which were spe- their success in the market has cially developed for transport appli- been sustained. cations – Schindler has now also taken the leading position in India’s escalator market.

Complex economic environment in the Middle East and Persian Gulf The market situation varied from 3 country to country. In Lebanon, both the economy as a whole and the Market penetration construction sector remained flat. In and reference projects in India Israel, the political situation had a Business in India benefited from a dramatically negative impact on the growing market, even though there were preliminary signs of an economic slowdown. Thanks to the 1 Lobby for the 11 panorama introduction of modernization solu- elevators in Melrose Arch; tions tailored to the Indian market, Sandton, South Africa which went hand in hand with 2 A wide range of elevator development of a service and main- types is installed for the transportation of people and tenance organization, Schindler is goods in the Dubai Fairmont now clearly identifiable as a leading hotel and exhibition com- player in the Indian elevator market. plex. They comprise 9 panorama, 13 passenger, A noteworthy example is the mod- and 8 freight elevators, as ernization project for the Stock well as a hydraulic platform; Exchange building in Bombay, Dubai where Schindler replaced the exist- 3 2 Schindler 300 P elevators ing elevator installations with eight are installed in the Godrai Schindler 300 P elevators and Bay View residential complex, Bombay, India

34 Annual Report 2001 Schindler Group 1

MRL 002 machine room-less elevators made a major contribution to increasing new installation sales. Success in modernization came mainly from the enormous potential of the Miconic 10 control system, as well as greater utilization of Group components. Schindler

In Zimbabwe and Kenya demand for new installations remained low due to economic crisis. On the other hand, maintenance business in 3 these markets developed well.

and won a major contract to supply During the reporting year, Schindler 189 escalators for the Teheran sub- improved customer satisfaction way system. The market position in throughout the region. Progress the Persian Gulf region was also continued on aligning the local com- strengthened by introducing new panies to new social and legal struc- products. This was against a back- tures incorporating government pro- drop of a slight economic upswing, grams (Employment Equity Plan, especially in Kuwait Affirmative Action Initiative, etc.) for prohibiting discrimination against Market position in North Africa minorities and promoting equal retained employment opportunities. In Egypt, Schindler put up a strong performance despite a recession 2 and tough competition. In Morocco 1 15 elevators are installed in it was possible to retain market the government offices in construction industry and tourism. leadership, even though the econ- Haifa, including 4 with speeds of 4 or 5 meters per By contrast, the infrastructure sec- omy steadily deteriorated. second; Israel tor and building industry in Iran experienced a boom. Schindler 2 In the new headquarters of Greater customer satisfaction the Moroccan Bank Corpo- expanded its market presence there in southern Africa ration a total of 6 elevators Despite stagnating markets, Schind- were installed, which include 2 panorama elevators with ler maintained its strong position in a view to the atrium; Casa- South Africa, Namibia, Botswana, blanca, Morocco and Mozambique. The Schindler 3 Panorama elevator in the Smart MRL 001 and SchindlerSmart Gateway shopping center; Durban, South Africa

35 Annual Report 2001 Schindler Group

vators, aswell Africa Sandton, South leisure complex in residential, and office, shopping, Melrose Arch in operationthe escalators are 6 11 32 vators, including Schindler panorama ele- Schindler ele- Major orders IMEA elevators withMiconic Delhi; Delhi MetroRailCorporation,New Bombay StockExchange,Bombay; tial building,Bangalore the Tata HousingSherwoodresiden- lators, Project, Cairo; Aswan for creatinganewvalleynear the largestnationalprojectinEgypt, Mubarak PumpingStationinToshka, 50 34 7 India: MRL elevators, and Modernization of Egypt: Hotel, Dubai elevators fortheBeachResort 9 Dubai: 7 Bangladesh: residential complex,Hyderabad; tors fortheNationalGamesVillage Miconic building, Dhaka for theShezanPointcommercial modernization of residential buildings,Mumbai; two SafirHotels,Cairo; and residentialbuilding,Dubai; Capricorn Towers commercial W Schindler Schindler Schindler estin Hotel,Dhaka; Schindler Schindler 002 9300 16 39 10 elevators fortheElRehab Schindler Schindler for HiranandaniGardens 300 500 700 Smart 9700 5 3 P elevatorswith elevators forthe elevators forthe Schindler elevators forthe 8 12 escalators forthe MRL Smart Schindler 001 elevators for 6 10 elevators for escalators 10 001 MRL Smart at the esca- eleva- 300 001 10 P Saba Towers residentialbuilding, letta escalators forthehospitalinLaVal- 29 Malta: 7 Mali: 8 16 Kuwait: 5 Kenya: 9 Jordan: shopping center, Haifa escalators fortheHaifaAuditorium 8 4 Israel: T T 189 Iran: plex, Portomaso; the Hiltonhotelandresidentialcom- for theBurganBank,KuwaitCity Bamako City; shopping centerandhotel,Kuwait Nairobi Hotel, Amman Kiryat Ono; Kiryat OnoTower officebuilding, Comptroller’s Offices,Tel Aviv; Hawalli; the HawalliCommercialComplex, eheran eheran Metro; elevators fortheHôteldel’Amitié, escalators fortheArrayaCenter elevators fortheUSEmbassy, elevators fortheLeMeridien elevators and high-rise elevatorsfortheKanyon Schindler Schindler Schindler 7 elevators and 6 Schindler 9 Smart 700 elevators fortheState 9300 37 6 4 elevators and 56 Schindler elevators for Annual Report 2001Schindler Group MRL escalators forthe 500 elevators and 6 escalators for elevators for elevators 9300 the 2 1 aton Hotel,Marrakesh; and Nationalhospitals,Aleppo; North, Kano building, Riyadh; T 70 Saudi Arabia: 4 Nigeria: 9300 Marrakesh; elevators fortheAtlasAsniHotel, 18 Morocco: elevators forthehospitalinLattakia 21 Syria: Marriott Hotel,Medina Menara Airport,Marrakesh Mecca; Complex residentialbuilding, um officebuilding,Casablanca; elecom Companycommercial elevators fortheBankof elevators fortheAl-Bab,Azaz, elevators fortheSaudiNational elevators fortheZenithMillenni- escalators and1elevatorfor 5 1 elevators fortheSaudi Smart 4 escalatorsand1Schindler center; Cairo,Egypt in theElRehabshopping 8 elevators fortheSher- MRL 4 elevators forthe 002 2 are installed Schindler 23 10

Schindler

A former theater was converted into the El Ataneo Gran Splendid bookstore, the largest bookstore in South America. Quiet Schindler 9300 escalators connect the fan- tasy worlds of lit- erature; Buenos Aires, Argentina

ALSO

Good result again in Distribution The main focus of the Distribution Division in the reporting year was on improving performance. Because of this, revenue in Switzerland went down by 13.3 percent to CHF 910 million, and at the German subsidiary it only went up by 1.3 percent to Schindler CHF 605 million. Although operating profit at CHF 30.4 million was below the previous year’s level (2000: CHF 37.6 million), the operating mar- 1 gin of 2.2 percent (prior year 2.0 percent) is at a pleasing level for this sharply for the first time. Although industry. The increasing proportion the first quarter began promisingly, of service business caused the Dis- the second quarter saw the start tribution Division to expand its of a decline in global markets, which workforce by 47 employees to 596. gathered pace in quarters three and four. 1/2 Cellphones ordered by The effects of this trend on develop- customers of Swisscom Mobile pass through numer- ALSO ments at varied between the ous stations at ALSO before different business areas. Considering they are ready for shipping the adverse conditions, the result of the Distribution Division was good. On the other hand, the renewed drop 2 in demand caused the Systems Divi- sion to undertake further restructur- Demanding year for ALSO ing. ALSO, which is active in the IT logistics and services business, had a Group makes operational demanding year. Heavy customer progress spending on IT prior to the new mil- Against this unfavorable backdrop, lennium, combined with an unex- ALSO’s net revenue fell by 7.3 per- pectedly rapid weakening of the cent to CHF 1726 million in the re- economy, caused the PC market porting year. However, on the opera- throughout Europe to contract tional side, ALSO improved sharply relative to the previous year, with operating profit reaching CHF 20 million (2000: CHF 6 million). Net profit at CHF 11.1 million was also substantially higher than the previous year (2000: CHF 4.5 million). Personnel In Emmen/Lucerne numbers went down again from the ALSO handles the preceding year: in the reporting year entire e-fulfillment for Swiscom ALSO had a total of 1355 employees Mobile as an out- (2000: 1571). sourcing service. A separate department was set up for this logismatics project, which combines exper- tise in logistics and IT

41 Annual Report 2001 Schindler Group 1

The sustained high level of performance by the subsidiaries in both countries was again honored by the customers. The Swiss and Ger- man subsidiaries each won “Best Distributor” awards in independent dealer surveys. In Switzerland, ALSO received a comprehensive logistics outsourcing contract from telecommunications provider Swisscom Mobile, which was successfully implemented within the year. This e-fulfillment solution also won the Logismatics Innovation Prize awarded 2 3 by the Swiss Forum for Logistics. The core IT application already in- Operational improvement in Improved income in 2002 stalled in Switzerland a year ago Systems business ALSO expects income to improve in was installed in Germany without After a good first quarter, European 2002, even though it may be the problem. The two national compa- sales in the large-customer segment third quarter of 2002 before there is nies now therefore work with the of the industry dropped sharply in a recovery in demand. The Distribu- same, efficient ERP (Enterprise the wake of a rapidly weakening tion business will continue to focus Resource Planning) platform which economy. In response to the lower on strengthening its income. Look- is the prerequisite for successful demand, ALSO realigned the struc- ing further ahead, the growing dem- execution of logistics projects. ture of its Systems Division to the and for logistics services, and the changed market situation in the sec- continuing trend to outsourcing of ond half of the year. It cut its work- services by large companies, give force, streamlined the branch net- ALSO confidence for the future. work, and permanently reduced other operating costs, with the objective of returning to profitability 1–3 In the network integration in the current year. In spite of the and support functions of ALSO Comsyt at Adli- unfavorable market conditions, as genswil/Lucerne, providing well as the incidence of extraordi- an optimal service to nary cost for the restructuring, the customers demands team spirit as well as personal operating loss diminished from CHF commitment and know-how 32.6 million in the previous year to CHF 10.4 million. Reported net sales in 2001 were CHF 209 million (2000: CHF 217 million). The number of employees went down from 1012 to 747.

The Swisscom Mobile contract covers the entire order processing of Swisscom Mobile customer orders, from inventory management through packaging to billing. Around 2000 order units are processed every day

42 Annual Report 2001 Schindler Group

Corporate Governance Status January 1, 2002

Board of Directors Schindler Holding Ltd. Term of office expires••• Alfred N. Schindler• Chairman; Hergiswil, Switzerland 2002 Luc Bonnard• Vice Chairman; Hergiswil, Switzerland 2002 Alfred Spörri• Zug, Switzerland 2002 Prof. Dr. Dr. h.c. mult. Rolf Dubs Professor emeritus at the University of St. Gallen; St. Gallen, Switzerland 2002 Walter G. Frehner Riehen, Switzerland 2002 Dr. Hubertus von Grünberg Chairman of the Executive Board of Continental Aktiengesellschaft; Hannover, Germany 2002 Scott D. Miller•• Chairman Hyatt Hotels Corporation; Chicago, USA Dr. Jenö C. A. Staehelin New York, USA 2002 Robert Studer Schönenberg, Switzerland 2002 • Member of the Executive Committee of the Board •• Nominated to be elected at the Annual General Meeting of March 26, 2002 ••• Ordinary General Meeting in the year 2002

Schindler Holding Ltd. Board of Directors

Executive Committee of the Board

Elevators and Escalators ALSO Management Committee Management Committee

Europe Distribution

Americas Systems Business

Asia/Pacific

EMIA

44 Annual Report 2001 Schindler Group Robert Studer, AlfredSp r Jen Dr. W Schindler, Alfred N. HubertusvonGr Dr. From ltor: Holding Ltd. Board ofDirectorsSchindler rf r r ..ml.Rolf h.c.mult. Dr. Dr. Prof. le .Frehner, LucBonnard, alter G. ö C .Staehelin A. C. ü nberg, ö rri, Dubs, 45 Annual Report 2001Schindler Group

Schindler Management Committee Elevators and Escalators Peter J. Zbinden President David J. Bauhs Deputy to the President; Americas Miguel A. Rodríguez Europe Jürgen Tinggren Asia/Pacific Heikki Poutanen Eastern Europe/Middle East/India/Africa (EMIA) Jörgen Svenningsson Technology and Strategic Supply Management Brent Glendening Chief Information Technology (CIO) Erich Ammann• Chief Financial Officer (CFO) Dr. Rudolf W. Fischer• Human Resources and Training • Reporting directly to a member of the Executive Committee of the Board

Management Committee Elevators and Escalators From l to r: Miguel A. Rodríguez, Jürgen Tinggren, Jörgen Svenningsson, David J. Bauhs, Peter J. Zbinden, Heikki Poutanen, Erich Ammann, Brent Glendening, Dr. Rudolf W. Fischer

46 Annual Report 2001 Schindler Group hmsC Weissmann Thomas C. Management Committee Peter Zurbr Thomas Willenegger Marc Schnyder Keller Axel Dr. Alberto Comolli J ü rgen Baumgartner Peter Zurbr ALSO Management Committee Thomas Willenegger AxelKeller, Dr. Marc Schnyder, Weissmann, Thomas C. Alberto Comolli, J ü rgen Baumgartner, ü From ltor: gg ü gg, ALSO 47 Annual Report 2001Schindler Group Information Technology ( Distribution Switzerland Distribution Germany Systems Business Human Resources President Finance ( ( CEO CFO CIO ) ) )

Schindler Statutory auditors The Compensation Committee, Internal Audit Team The statutory auditors of the whose members have for many The Internal Audit Team comprises Schindler Group and Schindler Hold- years been from outside the com- a team of four specialists which in ing Ltd. are Ernst & Young Ltd. of pany, is unchanged and comprises collaboration with the statutory audi- Berne. Prof. Dr. Dr. h.c. mult. Rolf Dubs, tors is responsible for the usual formerly Rector of the University of activities associated with its func- Nomination Committee St. Gallen, and Walter G. Frehner, tion. The Internal Audit Team is led The procedure for electing candi- formerly Chairman of the Board of by Gilberto Bezzola. dates to the Board of Directors is Directors of the Swiss Bank Corpo- for the Executive Committee of the ration. Compliance Officer Board, as Nomination Committee, Code of Conduct to submit appropriate nominations Audit Committee To audit and assure worldwide com- to the complete Board of Directors. Within the scope of its supervision pliance with the Code of Conduct, Each member also has the right to of the Management Committees which is binding for all employees in make appropriate nominations of his (Swiss Code of Obligations, Art. the Group, the Executive Commit- own. The Board of Directors makes 716a), the Executive Committee of tee of the Board has appointed the final decision regarding the the Board also exercises the func- Othmar Koch, lic. iur., as Compliance nominations to be proposed to the tion of an Audit Committee at board Officer. Within the scope of an General Meeting. level. In this function it is supported annually approved Audit Plan, the by an Audit Committee. The chairman role of the Compliance Officer is to Compensation Committee of this committee is Alfred Spörri, audit compliance with the Code of The function of the Compensation Member of the Executive Commit- Conduct which was introduced in Committee is to review and approve tee of the Board. Its other members 1998. the compensation of the Group’s are Professor Dr. Karl Hofstetter, topmost management. The entire General Counsel, and Peter Fraefel, Board of Directors decides on an a member of the management of annual basis whether, and to what Schindler Holding Ltd. The Audit extent, the top management shall Committee coordinates the control- be rewarded within the framework ling instruments of the Executive of the corporate stock and stock Committee of the Board, which are option plans. ultimately responsible to the Chair- man of the Board. These are: – Internal Audit – Code of Conduct Compliance – Technical Compliance

48 Annual Report 2001 Schindler Group Board ofDirectorsrepresentintotal in theRegisterofCompanies.This tal ofSchindlerHoldingLtd.entered registered shares)ofthesharecapi- 61 On the BoardofDirectors Shareholding representationby Joachim Walker, Henry Zheng. andDr. stetter, BernardIlli,StephanJud, KarlHof- Dr. Fraefel,Prof. Peter E. ing Ltd.consistsofErichAmmann, The managementofSchindlerHold- Schindler HoldingLtd. Management of ance Officer. Ing., asTechnicalnello, Dr. Compli- has appointedGiandomenicoDag- Executive CommitteeoftheBoard technical andsafetystandards,the To T Compliance Officer echnical Standards . auditandassurecompliancewith 86 31 % ofthevotingrights( . 12 . 2001 , theMembersof 6 690 465 six meetings. shares ( (see page Jen Dr. Schindler, LucBonnard,and N. Board ofDirectors(Alfred stockholder retainercontractonthe which therepresentativesof sons. parachutes severance compensation( mittees, whichprovideforspecial members oftheManagementCom- Committee oftheBoard,orwith kind withmembersoftheExecutive There arenoagreementsofany Severance Compensation In Directors Meetings oftheBoard CHF fees of tors receivefortheiractivitiestotal The membersoftheBoardDirec- Board members 36 includes the ments.) also page tion customaryfortheindustry. (See plus performance-relatedremunera- Committees receiveafixedsalary the BoardandofManagement bers oftheExecutiveCommittee 2001 of theFinancialStatements). 1.1 ö million). Inaddition,themem CHF the BoardofDirectorsheld 6 236 465 C .Staehelin)represent A. C. 36 62 ” 1.1 ) infavoroftheseper- 61 of theFinancialState- of thisreportorpage million (previousyear . 49 8 registered shares) % ofthevoting ’ fees Annual Report 2001Schindler Group “ golden - held by was shares whichwerenotregistered shares ofSchindlerHoldingLtd. At theendof Number ofshareholders On Shares notregistered from vides forapayoutratiointherange Directors isprofit-relatedandpro- communicated bytheBoardof The dividendpolicyapprovedand Dividend Policy 31 5 25 . . 12 8 % ofthetotalnumber 3159 to . 2001 35 % (seealsopage shareholders. 2001 , thenumberof , shareswere 60 ).

Schindler Financial statements Group Condensed

Balance sheet December 31 1997 1998• 1999•• 2000 2001 In million CHF Current assets 2 847 2 978 3 335 3 381 3 436 Non-current assets 1 385 1 371 2 219 2 279 2 102 Total assets 4 232 4 349 5 554 5 660 5 538

Current liabilities 1 381 1 916 2 219 2 359 2 313 Non-current liabilities 1 440 1 316 2 000 1 847 1 777 Total liabilities 2 821 3 232 4 219 4 206 4 090 Minority interests 80 105 150 137 119 Shareholders’ equity 1 331 1 012 1 185 1 317 1 329 Total liabilities and shareholders’ equity 4 232 4 349 5 554 5 660 5 538

• After restatement and in compliance with IAS •• As of 1999 in compliance with IAS

Profit and loss statement 1997 1998• 1999•• 2000 2001 In million CHF Operating revenue 6 203 6 594 7 657 8 530 8 327 Operating expenses 5 970 6 343 7 275 8 108 7 843 Operating profit 233 251 382 422 484 Financing activities –21 –17 –86 –53 –58 Investing activities – 84 29 5 17 Non-operating revenues/expenses 1 –––– Profit before taxes 213 318 325 374 443 Taxes 70 73677146 Profit before minority interests 143 245 258 303 397 Minority interests 23 21 20 4 18 Net profit 120 224 238 299 379

• Classified according to IAS but not revalued •• As of 1999 in compliance with IAS

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

50 Annual Report 2001 Schindler Group • In million with For completeinformation incompliance 370 539 313 163 125 As of1999 incompliancewith 339 Change innetcash Tr Cash flowfromfinancingactivities Cash flowfrominvestingactivities Cash flowfromoperatingactivities Cash flowstatements anslation exchangedifferences IAS please refertothe Financial Statements. CHF IAS 51 – 1 9 981999 1998 997 94 Annual Report 2001Schindler Group –– – – 2 2 39 127 426 577 – 7 520 – 694 488 • – – – 146 344 2000 10 – 251 274 635 2001 – – 16 94

Schindler Financial statements Schindler Holding Ltd. Condensed

Balance sheet December 31 1997 1998 1999 2000 2001 In million CHF Current assets 904 397 679 465 701 Non-current assets 1 314 1 726 1 462 1 601 1 369 Total assets 2 218 2 123 2 141 2 066 2 070

Debentures 350 350 800 785 785 Other liabilities 401 239 229 208 210 Total liabilities 751 589 1 029 993 995 Share capital 76 76 76 64 38 Bearer participation capital 61 61 61 50 29 Retained earnings 1 246 1 306 880 855 893 Net profit for the year 84 91 95 104 115 Shareholders’ equity 1 467 1 534 1 112• 1 073 1 075 Total liabilities and shareholders’ equity 2 218 2 123 2 141 2 066 2 070

• After extraordinary adjustment of investments in subsidiaries via elimination of other reserves (CHF 457 million)

Profit and loss statement 1997 1998 1999 2000 2001 In million CHF Income from subsidiaries 103 115 179 201 225 Other revenue 57 124 37 34 39 Total revenue 160 239 216 235 264 Depreciation and adjustments 33 97 57 85 108 Other expenses 43 51 64 46 41 Total expenses 76 148 121 131 149 Net profit for the year 84 91 95 104 115

Dividend payment 1997 1998 1999 2000 2001 In million CHF Registered shares 23 35 35 38 38• Bearer participation certificates 18 27 27 29 29• Total dividend payment 41 62 62 67 67• • Proposal by the Board of Directors Schindler is repre- sented in the Smichov Shopping Center with a SchindlerEuroLift elevator and several Schindler 9300 escalators which are especially suit- able for use in shopping malls and airports; Prague, Czech Republic

52 Annual Report 2001 Schindler Group

Information for shareholders Charts

Group 1997 1998• 1999•• 2000 2001 In million CHF Orders received 6 362 6 604 7 695 8 750 8 426 Operating revenue 6 203 6 594 7 657 8 530 8 327 EBITDA 1 387 451 532 624 680 in % 6.2 6.8 6.9 7.3 8.2 EBIT 2 233 251 382 422 484 in % 3.8 3.8 5.0 4.9 5.8 Net income from financing and investing activities –21 67 –57 –48 – 41 Profit before taxes 213 318 325 374 443 Profit before minority interests 143 245 258 303 397 in % 2.3 3.7 3.4 3.6 4.8 Net profit 3 120 224 238 299 3795 Cash flow 4 287 394 329 417 5555 Capital expenditure 140 177 158 157 122 Order backlog 3 515 2 954 3 689 3 713 4 039 Personnel at year-end 38 100 38 574 43 654 43 334 41 524 Shareholders’ equity 1 331 1 012 1 185 1 317 1 329 Equity ratio 31.4 23.3 21.3 23.3 24.0 Equity ratio incl. minority interests in % 33.3 25.7 24.0 25.7 26.1

• Balance sheet positions after restatement and in compliance with IAS •• As of 1999 in compliance with IAS 1 EBITDA: Operating profit and depreciation/amortization 2 EBIT: Operating profit 3 Adjusted for minority interests in years 1997 and 1998 4 Cash flow: Net profit before minorities and depreciation/amortization +/– change of provision 5 See Financial Statements, page 28, note 22, effect of deferred taxes

Elevators and Escalators 1997 1998• 1999•• 2000 2001 In million CHF Orders received 5 486 5 325 6 028 6 852 6 658 Operating revenue 5 333 5 324 5 996 6 669 6 601 EBITDA 1 371 427 482 612 654 in % 7.0 8.0 8.0 9.2 9.9 EBIT 2 225 236 342 422 471 in % 4.2 4.4 5.7 6.3 7.1 Personnel at year-end 37 473 37 543 42 140 41 763 40 169

• Balance sheet positions after restatement and in compliance with IAS •• As of 1999 in compliance with IAS 1 EBITDA: Operating profit and depreciation/amortization 2 EBIT: Operating profit

54 Annual Report 2001 Schindler Group •• •• • • 2 1 with For completeinformation incompliance Proposal bytheBoardofDirectors In million iiedpyet4 26 67 785 104 62 64 800 95 62 50 76 350 91 41 61 76 350 84 61 76 61 1571 After extraordinaryadjustmentofinvestmentsinsubsidiariesviaeliminationotherreserves( 1 Dividend payment 514 Net profitfortheyear Debentures 1 031 1861 1898 Shareholders Bearer participationcapital 627 1661 1667 Share capital 1270 1279 Holding 870 876 EBIT As of1999 incompliancewith Balance sheetpositionsafterrestatementandincompliancewith Personnel atyear-end EBIT EBITDA Operating revenue Orders received ALSO EBITDA In million n%1824220.3 1.0 2.2 2.8 2.4 3.1 1.8 2.6 in % in % : Operatingprofit IAS 2 : Operatingprofitanddepreciation/amortization please refertothe Financial Statements. CHF CHF 1 ’ eut 6 3 112 1 534 1 467 1 equity IAS net valueadded2001 Allocation oftheGroup’s In % Net interestcharges0,8 Dividends 2,8 Direct taxes3,3 Creation ofreserves8,2 Wages, salariesandsocial-serviceexpenditures84,9 IAS 55 1 1 9 1998 997 9 9819 2000 1999 1998 997 63 66 18 36 46 31 40 16 23 Annual Report 2001Schindler Group CHF • 457 million) cally relevantamount. providers offinanceparticipateinthiseconomi- company itself,theshareholders,andother shows howemployees,thegovernments, The distributionoftheGroup the overallGroupincome. other companies,aswelldepreciations,from the valueofgoodsandservicesdrawnonby The netvalueaddediscalculatedbysubtracting tain periodoftime. value achievedbythewholeGroupwithinacer- The Group 1 999 •• • ’ s totalvalueaddedistheincreasein 1 073 2000 ’ s netvalueadded 1 1 1 1 075 355 726 768 115 785 2001 2001 1.2 1.9 20 33 67 29 38 ••

Schindler EBITDA, EBIT, net profit

As % of operating revenue EBITDA EBIT Net profit

9,0

7,5

6,0

4,5

3,0

1,5

1997 1998 1999 2000 2001

Cashflow

In million CHF

600 287 394 329 417 555

500

400

300

200

100

1997 1998 1999 2000 2001

Capital expenditure

In million CHF 140 177 158 157 122

200

150

100

1997 1998 1999 2000 2001

56 Annual Report 2001 Schindler Group Elevators &Escalators by market Invoiced sales2001 Asia, Australia,Afrique16% Americas 36% Rest ofEurope3% EU Countries37% Switzerland 8% Elevators &Escalators Elevators &Escalators Rolling stock Rolling stock ALSO ALSO •• • •• • •• • In million product group Orders receivedby 1 2 3 4 5 6 7 8 In million product group Operating revenueby 1 2 3 4 5 6 7 8 Incl. otherproducts As of1998 includedinElevators&Escalators Total Total 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 CHF CHF 6 6 5 5175 362 203 1 1 127 311 876 206 870 997 997 6 6604 1 5 5 1 594 57 1 1 279 325 270 324 998 998 – – 7695 7657 Annual Report 2001Schindler Group 6 1 5 1 1 1 661 996 667 028 999 999 ALSO by market Invoiced sales2001 – – Germany 35% Switzerland 65% 8 8750 6 6 1 1 530 2000 2000 898 852 861 669 – – 8 8 6 6 1 1726 327 426 2001 2001 601 768 658 – –

Schindler Personnel at end of year

Number

38100 38 574 43654 43334 41 524

40 000

30 000

20 000

10 000

1997 1998 1999 2000 2001

Personnel 2001 by sector

In % Production 18 Installation and maintenance 59 Engineering, Sales, Administration, ALSO 23

58 Annual Report 2001 Schindler Group Rest ofEurope Asia, Australia, EU Countries Switzerland Switzerland Germany Americas Africa By country,total1355 ALSO Personnel 2001 By region,total40 169 Elevators &Escalators Personnel 2001 0 15,2% 206 1 34333,4% 36,2% 433 13 521 14 6 1 3 4 84,8% 149 9 16,9% 3,9% 794 9,6% 546 875 59 Annual Report 2001Schindler Group

Schindler Information per registered share / bearer participation certificate 1997 1998• 1999•• 2000 2001 In CHF Net profit 88 164 174 222 282 Cash flow 210 288 240 310 413 Shareholders’ equity at year-end 973 753 894 992 1 047 Gross dividend 30 45 45 50 50••• Pay-out ratio % 34.2 27.5 25.9 22.5 17.7 Market capitalization (in million) 2 119 3 118 3 490 3 402 3 208

• Shareholders’ equity after IAS restatement •• As of 1999 in compliance with IAS ••• Proposal by the Board of Directors

Registered shares 1997 1998 1999 2000 2001 In CHF Number of shares outstanding 763 066 763 066 763 066 752 866 752 866 Thereof in treasury stock 5 890 20 170 27 040 16 790 32 561 Nominal value 100 100 100 85 50 Price high 2 130 2 730 2 600 2 995 2 801 Price low 1 300 1 530 2 060 2 320 2 000 Price year-end 1 569 2 340 2 550 2 549 2 380 ן 8.4 ן 11.5 ן 14.7 ן 14.3 ן P/E ratio December 31 17.8

Bearer participation certificates 1997 1998 1999 2000 2001 In CHF Number of certificates outstanding 605 425 605 425 605 425 592 424 592 424 Thereof in treasury stock 60 280 4 004 15 444 1 410 42 880 Nominal value 100 100 100 85 50 Price high 2 000 2 710 2 620 2 925 2700 Price low 1 370 1 209 2 050 2 320 2050 Price year-end 1 522 2 200 2 550 2 503 2390 ן 8.5 ן 11.3 ן 14.7 ן 13.4 ן P/E ratio December 31 17.3

60 Annual Report 2001 Schindler Group • Proposal bytheBoardofDirectors Market capitalization 10 20 30 40 50 In certificate and bearerparticipation Dividens perregistered 100 150 200 250 In registered share Net profitper 1,5 2,0 2,5 3,0 3,5 In billion CHF CHF CHF 1 1 1 997 997 997 61 1 1 1 998 998 998 Annual Report 2001Schindler Group 1 1 1 999 999 999 2000 2000 2000 2001 2001 2001 •

Schindler Trading Registered share Bearer participation certificate

Bloomberg SCHN SCHP Reuters SCHZn SCHZp Valor 227 618 227 617

Registered shares are traded on Significant shareholders Investor Relations the Swiss Exchange. Bearer partici- According to information published Barbara Zäch pation certificates are traded on under stock exchange law, the Corporate Communications the Swiss, Berlin and Frankfurt Ex- Schindler and Bonnard families hold Schindler Management AG changes. The bearer participation within the scope of a stockholder CH-6031 Ebikon certificates have the same rights retainer contract 61.8% of the T+41 41 445 3061 as the registered shares with the voting rights (465 236 registered F+41 41 445 3144 exception of attendance at the shares) of the share capital of [email protected] Annual General Meeting and voting Schindler Holding Ltd. entered in rights. the Register of Companies. Stephan Jud Head of Treasury A further aspect of the shareholding Schindler Management AG structure is that other persons who CH-6031 Ebikon have a close relationship to the par- T+41 41 445 3119 ties to the stockholder retainer F+41 41 445 4530 contract hold, together with these, [email protected] more than two thirds of the voting rights. These other persons are not www.schindler.com bound by a stockholder retainer contract. The voting rights held by shareholders who are not bound by a stockholder retainer contract are in each case less than 3%.

Ordinary General Meeting Monday, March 26, 2002, 4.30 pm at the Kultur- und Kongresszentrum Luzern, Europaplatz 1, CH-6005 Lucerne, Switzerland

Developments on the fringe of the revital- ized ABB industrial site include the Regina-Kägi-Hof residential complex with 12 SchindlerSmart MRL 002 elevators; Zurich-Oerlikon, Switzerland

62 Annual Report 2001 Schindler Group

Schindler’s environmental performance Multidimensional thinking to benefit the environment

The Activity Report for 2000 con- lies in the utilization phase, followed of its comparable predecessor. But tained the first report by the Schind- by raw materials procurement, and how environment-friendly is the ler Group on its environmental per- final disposal according to Swiss SchindlerEuroLift in reality? To obtain formance in the elevator and escala- standards. The remaining phases of a well-founded answer to this ques- tor business, and described its the life cycle are environmentally tion, the two phases of greatest strategy for continuous and sustain- less relevant. In particular, the man- environmental relevance – utilization able reduction of its environmental ufacturing phase of an elevator and raw materials procurement – burden. As well as an article each accounts for less were systematically evaluated. year in the Annual Report, it is than 10% of the total environmental planned to issue a separate special burden during its life cycle. In view Elevator utilization report on environmental issues of these findings, Schindler is The energy consumption of the two every five years. concentrating its efforts on the elevator types was determined product development process, and both during operation and while on The strategy is based on the find- within that process primarily on standby for typical traffic conditions ings of a comprehensive life-cycle reducing the environmental impact over a service life of 20 years. analysis (LCA) for standard elevators during the three phases of utiliza- Result: The steel-rope version of the in which all phases of their life cycle tion, raw material procurement, and SchindlerEuroLift consumes about – development, raw material pro- final disposal. The SchindlerEuroLift 30% less energy, and the aramid curement, production, packaging is an illustrative example of this rope version even as much as 50% and transportation, utilization, main- approach. less energy, than their correspond- tenance, and disposal – were evalu- ing forerunners for the same trans- ated. The LCA demonstrated that Eco-performance of the portation performance. This not only the energy consumed by an elevator SchindlerEuroLift relieves the environment, but also during operation and standby makes Launched in the reporting year, the cuts the customer’s electricity costs up no less than two thirds of its SchindlerEuroLift stands compari- during the entire service life of the total environmental burden during son with any other elevator of its elevator. The SchindlerEuroLift is its entire lifetime of 20 to 30 years class, especially as regards environ- one example of how ecological cus- or longer. This means that the great- mental performance. It requires tomer benefits have been improved est scope for ecological leverage no machine room, its permanent by innovation. magnet drive uses no oil, since it has no gears, and its components are lighter in weight than those

Energy consumption Energy consumption with steel ropes with aramid ropes

20 years, 1000 kg, 1.6 m/s, 18 m (7 stops), 20 years, 1600 kg, 1.6 m/s, 25 m (9 stops), 450 000 trips/year 450 000 trips/year Operation 61% 46% Operation 50% 37% Standby 39% 25% Standby 50% 15% 100 % 100 %

80% 80%

60% 60%

40% 40%

20% 20%

(% kWh) (% kWh) ator v opes EuroLift EuroLift ced ele ith steel ropes a placed elevator aramid r w Re Schindler Schindler Repl with 64 Annual Report 2001 Schindler Group Materials System Energie Total (% k 100 1000 with steelropes Weight ofmaterials 40 80 20 60 (% k 100 450 000 20 (UBP) Environmental impact 40 80 20 60 % % % % % years, % % % % g % UBP ) kg, 18 trips/year, ) 1000 withsteelropes

m ( wit 7

kg,

Schindlerhou stops) t R 1.6

UCPTE concree Repl placed

a m/s, EuroLift ced ele wit te for ele

electricity mix h 18

ma va % 100 Schindler wi MR vator to m (

23% 77% chine th r floo w steel 7 su

ith r st EuroLift stops), ppo ropes

eel rop 88%

23% 55% rt MRL es Materials System Energie Total (% k (% k 100 20 (UBP) Environmental impact 450 000 40 80 20 60 100 1600 with aramidropes Weight ofmaterials 40 80 20 60 years, % % % % % % % % % % UBP g ) kg, trips/year, ) 25 1600 with aramidropes

m ( 65 without concrete for kg, Schindler 9

stops) Annual Report 2001Schindler Group 1.6 Re UCPTE R eplaced elevator

pl m/s, a EuroLift ced wit electricity mix elev 25 h machine support

Schindler wit % 100

m (

ator 19% 81% MR w h aram ith aramid ropes f 9 loor

EuroLift stops), id ropes 42% 84% 18% MRL Agency environmental pollutionpoints( ( in Schindler quantitative proofofthebenefit of one generation tothenext. performance of itsproductsfrom ously improvetheenvironmental cal according tothemethodofecologi- energy consumptionwasmeasured of rawmaterialsprocurementand The potentialenvironmentalimpact Environmental impact to transportationandpackaging. reduced environmentalburdendue als andmanufacturing,aswella This meanslowercostsformateri- lower thanthatoftheearlierproduct. of by experts,basedonaservicelife spare partsmaterialwasestimated were determinedanalytically, while materials neededforinstallation weight andtypeofmaterial:the mined andevaluatedaccordingto elevator typeswerealsodeter- The rawmaterialsusedforthetwo Materials procurement 97 Forests, andLandscape( Schindler material andspareparts)ofthe Result: Thetotalweight(installation is muchlower(approximately curement andenergyconsumption nents arisingfrommaterialspro- tal burdenofthevariouscompo- Result: Thecumulativeenvironmen- predecessor ofasmuch environmental burdenrelative toits with aramidropes,areductionin methods. FortheSchindler same resultbeingobtainedbyboth than forthepreviousproduct, UBP UBP ) 20 scarcity definedbytheSwiss and eco-indicatorpoints( )w years. )f as determined.Thisprvides for theEnvironment, or theSchindler ’ EuroLift s endeavorstocontinu- is significantly EuroLift SAFEL 40 EuroLift EIP 20 % )in UBP 95 % ).

Schindler Where ecological product char- measures to improve eco-efficiency More efficient elevator drives acteristics are conceived at the customer end (utilization or The amount of energy consumed by Strictly speaking, products are only product ecology) with those at the an elevator is trip-dependent and is indirect causes of environmental manufacturing end (production eco- largely determined by its drive sys- damage, because they are devel- logy). Where do investments have tem. Electromechanical drives have oped and produced by human the greatest ecological benefit – in gone through a phase of rapid beings. This applies equally to eleva- the product itself, or in the produc- development, each step of which tors and escalators. It is engineers tion processes and the operating has contributed to improving their and designers who specify the func- environment? eco-efficiency. Single-speed drives, tion, form, and materials of eleva- which are characterized by a jerk tors, based on market requirements, In 2000, the companies of the when stopping, are now only found and thereby also determine their Schindler Group worldwide spent in older buildings. They were fol- technical, economic, and ecological CHF 25 million on electricity, gas, lowed by two-speed AC drives, and characteristics. Many of the and water for manufacturing and subsequently by partially regulated processes that occur during the installing elevators. In the same drives. Parallel to this, direct current product life cycle, as well as more year, the electricity consumed in drives were developed, which make than 80% of the associated costs operating the elevators Schindler higher speeds possible and have a and environmental effects, are maintains around the world was high efficiency coefficient. Along already anticipated and finally deter- estimated to cost CHF 500 million. with the further development of mined in the development phase. The ratio between these two cost micro- and power electronics came Because of this, Schindler focuses amounts is 20. This value highlights frequency-regulated drives, which its efforts on developing ecological the dominant long-term leverage cover the entire range of speeds products, and in the Corporate effect of product development, and loads. Almost all new drives Research & Development / Strategic rather than manufacturing, in an today are frequency regulated. They Procurement area works with an environmentally optimized product. allow the energy released during environmental management system (For more about this, see Innovation braking to be recuperated into the certified to ISO 14001. However, 2001 on page 12.) This leverage power supply. (For more about recu- within this framework, permanently effect is confirmed by the findings peration, see page 68 of the Activity conflicting goals relating to environ- of the LCA (see Environmental Report 2000.) If rope traction eleva- mental compatibility, safety, reliabil- Report 2000). The LCA indicates a tors also make use of new technolo- ity, customer wishes, legal require- ratio of 9 between the environmen- gies such as planetary gears, or ments, standards, and competitive- tal burden in the utilization phase, even drives with no gears at all, fur- ness have to be resolved, and and that in the manufacturing ther optimization effects can be compromises found. phase. achieved. Because elevators and escalators Ecological leverage are products with long lives, more In addition to the knowledge gained efficient product lines only gradually from the LCA, it is also instructive to improve the overall environmental consider the ecological leverage performance of the total population effect of improvement measures as of installations, and the effect at the a means of highlighting the ecologi- global level is difficult to determine. cal focus of a product. This means The crucial factor for achieving comparing the potential benefits of improvement is the rate at which old installations are replaced by new, more ecologically efficient, systems and components.

66 Annual Report 2001 Schindler Group ASM ASM ASM Dynatron wormgears worm gears Gearless worm gears worm gears Two-speed freq. contr., freq. contr., freq. contr., Gearless MV, DC (% (% (% 100 100 100 6.0 High rise Energy consumption 40 80 20 60 2.5 Mid rise Energy consumption 40 80 20 60 1.0 Low rise Energy consumption 40 80 20 60

% % % % % % % % % % % % MJ MJ

m/s, m/s, m/s, % % % /Year) /Year) /Year) 1250 500 1 600 kg, kg, kg, 9 45

113 m,

300 000 Old m, O Old technology ld technology 450 000

technology 350 000 100% 100% trips/year New technology New technology New technology 100% trips/year trips/year • • • 90% 45% 34% • High rise: 8floors < Mid rise: 8floors < Low rise: Definition: effect ontheirenergyconsumption. efficient, whichhasamajorpositive The newdrivesystemsarehighly > _ 8 floors 67 Annual Report 2001Schindler Group management system. ous andsuccessfulenvironmental pany certificate whichatteststhecom- AG tria, SchindlerElevatorandEscalator ing thereportingyear. AndinAus- duced environmentalconceptsdur- Malaysia SdnBhd,whichbothintro- Kong) LimitedandAntahSchindler Examples areSchindlerLifts(Hong Group companiesandfactories. are alsobeingpursuedlocallyatthe toward environmentalimprovement product development,endeavors Although thefocusisonecological Malaysia in Austria,HongKongand Environmental endeavors tificate was awardedtheEcoprofitCer- ’ s implementationofacontinu- 2001 , astateenvironment

Schindler Important addresses

For further information about Europe, India, Middle ALSO our company, our products East and Africa ALSO Holding AG and our services, please Schindler Management Ltd. Seestrasse 55 contact one of the following Zugerstrasse 13 CH-6052 Hergiswil addresses: CH-6031 Ebikon Switzerland Switzerland T+41 41 349 71 00 Schindler Holding Ltd. T+41 41 445 32 32 F+41 41 349 70 70 Seestrasse 55 F+41 41 445 31 34 www.also.ch Schindler CH-6052 Hergiswil Switzerland USA and Canada T+41 41 632 85 50 Schindler Elevator Corporation F+41 41 445 31 34 20 Whippany Road PO Box 1935 Schindler Management Ltd. Morristown, N.J. 07962-1935 Zugerstrasse 13 USA CH-6031 Ebikon T+1 973 397 65 00 Switzerland F+1 973 397 36 19 T+41 41 445 32 32 www.us.schindler.com F+41 41 445 31 34 Latin America Corporate Communications Latin America Operations T+41 41 445 30 60 Avenida das Americas 700, Bloco III, F+41 41 445 31 44 sl. 140/141 [email protected] Rio de Janeiro, RJ Brazil www.schindler.com CEP 22640-100 T+55 21 3803 7688 F+55 21 3803 8032 www.la.schindler.com

Asia/Pacific Schindler Management Asia/Pacific Ltd. 29/F Top Glory Tower 262 Gloucester Road Causeway Bay/Hong Kong T+852 2574 38 81 F+852 2574 38 93

68 Annual Report 2001 Schindler Group The Annual Report of the Schindler Group for 2001 consists of the Activity Report and the Financial Statements.

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

Overall responsibility and concept Schindler Management AG Corporate Communications 6031 Ebikon, Switzerland

Graphic design Gottschalk+Ash Int’l

Photos Pictures on pages 4, 11, 40, 41, 43, 63: Peter Gunti, Solothurn Pictures on pages 13, 33: Hollie DESIGN, Shanghai Picture on page 24: John Sanderson Photography Inc, Pittsburg Pictues on pages 45, 46, 47: Christina Maeder, Zurich Back cover: Peter Schälchli, Zurich

Text Schindler Management AG Corporate Communications 6031 Ebikon, Switzerland

Typesetting and printing NZZ Fretz AG 8952 Schlieren, Switzerland “Modern accounting rules are like Artist: Patrick Bucher dynamite. In the wrong hands…” Alfred N. Schindler