When many means it’s all about you Each day, we transport over 700 million people worldwide, which is equivalent to approximately half a million people per minute. Although our products carry large numbers of people, we do not utilize methods of mass production. We focus on you – as an individual – when we develop intelligent solutions for urban mobility. You want to travel from A to B safely, rapidly, comfortably and flexibly. Our elevators, escalators and moving walks meet your requirements. Even when transporting large num- bers of people, we reduce waiting times to an unparalleled level and provide solutions to allow for personalized access. Trailblazing Schindler technology is thus serving the mobile society. Activity Report 2006 Activity When many means it’s all about you Activity Report 2006 Schindler When many means it’s all about you Schindler Activity Report 2006 When many means it’s all about you Each day, we transport over 700 million people worldwide, which is equivalent to approximately half a million people per minute. Although our products carry large numbers of people, we do not utilize methods of mass production. We focus on you – as an individual – when we develop intelligent solutions for urban mobility. You want to travel from A to B safely, rapidly, comfortably and flexibly. Our elevators, escalators and moving walks meet your requirements. Even when transporting large num- bers of people, we reduce waiting times to an unparalleled level and provide solutions to allow for personalized access. Trailblazing Schindler technology is thus serving the mobile society. Activity Report 2006 Activity When many means it’s all about you Activity Report 2006 Schindler When many means it’s all about you Schindler Activity Report 2006 Milestones < Milestones Reliable Moving Trailblazing Ladies and Gentlemen We meet the expectations as We are not only manufacturers We seek new approaches and We recorded a very pleasing level of orders received Last but not least: 2007 will be a milestone year manufacturer and as service of elevators and escalators, we explore new directions. We inspire in the reporting year 2006, reflecting strong for me personally as I complete my 30th year as a provider. Quality is our key asset. are mobility providers. urban developers, property own- demand for the new product lines we launched in member of the Board of Directors of Schindler We have a global presence, are We move ideas and plans. We ers, architects, and other decision- Europe in 2005. The high-rise segment also Holding. I have been the CEO of the company When taking a good look optimally networked, and always move people, their emotions, makers. Visionary, innovative, achieved a number of successes in international since 1985 and also its Chairman since 1995. On available. Nonstop, around the and their behavior. Winning, determined, and cultivated. markets by securing orders for major projects with behalf of all of the shareholders, I would therefore means finding the hidden beauty. clock. Persuasive, constant, and cooperative and versatile. complex technical requirements. This included like to take this opportunity to thank our clients Beautiful from the outside in. secure. Hong Kong’s tallest building (the 490-meter high for their loyalty and our employees for all they Where you least expect it. International Commerce Center), the highest have accomplished. Once a diverse company with Artwork by MICHAËL LUCERNE building in Beijing (the 333-meter high China World more than 15 areas of business and CHF 20 mil- Trade Center) and the tallest building in Europe lion in profit, Schindler has now developed into a (the 448-meter high Federation Tower in Moscow). thriving global organization with a clear business focus. Going forward, we will invest our energy For the first time in its history, Schindler achieved and resources in the targeted expansion of our or surpassed the following milestones in 2006: market presence, which we have worked so hard 1. it sold more than 55 000 installations to build. 2. net sales exceeded CHF 10 billion 3. it generated net profit after taxes of over In 2007, Schindler will thus once again focus on CHF 500 million and capturing market opportunities while, at the same 4. its market capitalization was more than time, completing large volumes of orders and CHF 10 billion (January 2007) ensuring that further improvements in margins can be realized despite our strong organic growth. ALSO achieved an historic milestone in 2006 when it acquired the Finland-based firm GNT Holding Oy, which is the largest ICT distributor in Scan- dinavia and the Baltic States. As a result, ALSO now has a leadership position in five of the nine Alfred N. Schindler countries in which it operates. With net sales of CHF 5 billion, it will be able to move closer to the third largest European provider in 2007. As a measure to further strengthen our good corporate governance, Dr Alexander Schaub, the former Director General of Competition at the European Commission, was appointed the future Chairman of the Audit Committee of the Board of Directors of Schindler Holding Ltd. Schindler Activity Report 2006 Milestones < Milestones Reliable Moving Trailblazing Ladies and Gentlemen We meet the expectations as We are not only manufacturers We seek new approaches and We recorded a very pleasing level of orders received Last but not least: 2007 will be a milestone year manufacturer and as service of elevators and escalators, we explore new directions. We inspire in the reporting year 2006, reflecting strong for me personally as I complete my 30th year as a provider. Quality is our key asset. are mobility providers. urban developers, property own- demand for the new product lines we launched in member of the Board of Directors of Schindler We have a global presence, are We move ideas and plans. We ers, architects, and other decision- Europe in 2005. The high-rise segment also Holding. I have been the CEO of the company When taking a good look optimally networked, and always move people, their emotions, makers. Visionary, innovative, achieved a number of successes in international since 1985 and also its Chairman since 1995. On available. Nonstop, around the and their behavior. Winning, determined, and cultivated. markets by securing orders for major projects with behalf of all of the shareholders, I would therefore means finding the hidden beauty. clock. Persuasive, constant, and cooperative and versatile. complex technical requirements. This included like to take this opportunity to thank our clients Beautiful from the outside in. secure. Hong Kong’s tallest building (the 490-meter high for their loyalty and our employees for all they Where you least expect it. International Commerce Center), the highest have accomplished. Once a diverse company with Artwork by MICHAËL LUCERNE building in Beijing (the 333-meter high China World more than 15 areas of business and CHF 20 mil- Trade Center) and the tallest building in Europe lion in profit, Schindler has now developed into a (the 448-meter high Federation Tower in Moscow). thriving global organization with a clear business focus. Going forward, we will invest our energy For the first time in its history, Schindler achieved and resources in the targeted expansion of our or surpassed the following milestones in 2006: market presence, which we have worked so hard 1. it sold more than 55 000 installations to build. 2. net sales exceeded CHF 10 billion 3. it generated net profit after taxes of over In 2007, Schindler will thus once again focus on CHF 500 million and capturing market opportunities while, at the same 4. its market capitalization was more than time, completing large volumes of orders and CHF 10 billion (January 2007) ensuring that further improvements in margins can be realized despite our strong organic growth. ALSO achieved an historic milestone in 2006 when it acquired the Finland-based firm GNT Holding Oy, which is the largest ICT distributor in Scan- dinavia and the Baltic States. As a result, ALSO now has a leadership position in five of the nine Alfred N. Schindler countries in which it operates. With net sales of CHF 5 billion, it will be able to move closer to the third largest European provider in 2007. As a measure to further strengthen our good corporate governance, Dr Alexander Schaub, the former Director General of Competition at the European Commission, was appointed the future Chairman of the Audit Committee of the Board of Directors of Schindler Holding Ltd. Schindler Activity Report 2006 1 2 3 Schindler in brief To the shareholders Elevators & Escalators 2 Schindler in brief 17 Statement of the Board of Directors 25 Business review 31 Innovation 6 Urban mobility 34 Important orders 4 5 6 ALSO Corporate Citizenship Overview of financial results 51 Business review 55 Wide-ranging corporate 58 Summary financial statements Group commitments 59 Summary financial statements Schindler Holding Ltd. 60 Key figures Group 63 Key figures Elevators & Escalators 65 Key figures ALSO 66 Key figures Schindler Holding Ltd. 67 Key figures registered share/ participation certificate 70 Financial calendar 71 Important addresses 7 8 9 Financial Statements Group Financial Statements Corporate Governance Schindler Holding Ltd. 0 www.schindler.com 1 23 456 Schindler in brief 789 0 Schindler in brief Group Founded in Switzerland in 1874, the Schindler Group employs around 44 000 staff worldwide and comprises two core areas of business: Elevators & Escalators, which contributed 70% of sales in 2006, and ALSO, an IT distributor in Europe. The parent company Schindler Holding Ltd. is listed on the SWX Swiss Exchange. Elevators & Escalators As one of the leading global manufacturers of elevators, escalators and mov- ing walks with a network of over 1000 branches spanning every continent, Schindler develops, plans, produces and installs mobility solutions in accor- dance with customer requirements.