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Partner Business November 2014 This information is for internal use only. Page 2 year it now appears to have moved to anything between the end of the first half to the end of the second half 2015. Distributors Our Distributors remain very busy as they feed the smaller projects and residential and, in the main, have continued to see growth against which we have also seen our areas grow. Panelbuilders The Panelbuilder network has had a strong year and the larger players still have numerous projects to place with us, however they are once again caught up in the larger contractor melé - where these projects will be delivered. We are certainly not losing the projects here, however we await orders to be placed. We need to be on our guard as our competition looks to attack us. In general, our Devices business remains strong with good growth and our capital plant / solutions business continues to find life harder with opportunities and to deliver the top line. Our results globally, from the first three quarters of the year, were delivered and the message from Jean-Pascal Tricoire was very clear. As a Company, we need to see the results of our investment throughout the world, and these have not been apparent. The effect of this is that our cost base has increased and continues to increase outstripping the percentage increase in our top line i.e. we are deleveraging our organisation. This situation needs to be corrected as soon as possible. This translates into improved top line order input and sales. In the UK this is probably our Achilles heel. Our order input, in terms of growth compared to the GDP growth in our economy, does not match. We must start growing in our business. The downturn in capital plant orders over 2014 compared to 2013 has left us with a sales gap which also must be improved, hence the need to increase our solutions and services businesses. So, in a nutshell, increase top line in sales, and ensure our costs are under control - which they are - and that they are used in the best possible way to support our growth and obtain benefit for the organisation. Turning to 2015, there is no doubt that this market will continue to be tight, and will come under increasing pressures regarding labour as major projects start to take labour from the marketplace i.e. Hinkley Point C and Thames Tidal Tunnel. The newsletter, once again, shows great collaboration on activities that have been led by Partner Projects and which have culminated in great results. There is no doubt that collaborative working across our businesses can not only bring Partner Projects order input but increasing the overall Schneider portfolio that the client can buy, and of course increasing our overall order input.
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