Schindler - · PDF fileSchindler Activity Report 2004 of the Board of Directors of Schindler...

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Activity ReportAnnual Report 2004

Contents

Environmental performance Separate report in summer 2005

Illustration concept The illustrations show Schindler’s latest products in typical applications.

The back cover of the Annual Report is devoted to the work of young artists whose creativity enlivens our business premises.

2 Key figures

Statement of the Board of Directors5 Substantially improved result

Innovation 200412 Schindler 9300 Advanced Edition – innovation

for individual customer needs

Market profile elevators and escalators16 Europe22 North, Central, and South America28 Asia/Pacific34 EMIA

43 ALSO

46 Organization

48 Financial statements Group, Condensed

50 Financial statements Schindler Holding Ltd., Condensed

52 Information for shareholdersCharts

63 Important addresses

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Activity Report 2004of the Board of Directors of Schindler Holding Ltd.,CH-6052 Hergiswil NW, Switzerland,to the Ordinary General Meeting of March 21, 2005

77th Financial Year

Teamwork was needed to install the 18 Schindler 9500moving walks in the Pilatusmarkt Schlund shopping mall. Schindler also supplied 10 Schindler 80 freight elevators, 4 SchindlerEuroLift elevators, and 2 glass elevators; Kriens, Switzerland

2 Annual Report 2004 Schindler Group

Key figures 2004

Group 2003 2004In million CHF ∆ % ∆ %

localcurrency

Operating revenue 7 725 8 259 +6.9 +8.1

EBITDA1 Group 566 656 +15.9

EBITDA Elevators and Escalators in % 8.8 10

EBITDA ALSO in % 1.8 1.9

EBIT2 Group 406 521

EBIT Elevators and Escalators in % 6.4 7.9

EBIT ALSO in % 1.0 1.6

Profit before taxes 344 483 +40.4

Net profit 184 308 +67.4

Cash flow3 368 429 +16.6

Orders received Elevators and Escalators 6 246 6 546 +4.8 +6.6

Orders received ALSO 1 620 1 882 +16.2 +15.2

Shareholders’ equity 1 165 1 376 +18.1

Personnel at year-end 39 617 39 443 –0.41 EBITDA: Operating profit plus depreciation/amortization2 EBIT: Operating profit3 Cash flow: Net profit before minority interests plus depreciation/amortization and change in provisions

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Dividends proposed by the Board of Directors of Schindler Holding Ltd. 2003 2004

Registered share CHF 6 CHF 7

Bearer participation certificate CHF 6 CHF 7


You will find further key figures starting on page 52

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20042003200220012000

Market capitalizationas of December 31

In billion CHF

5,5

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20042003200220012000

Net profit per registered share and bearer participation certificate In CHF

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15

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• Before R03 project costs

2000 and 2001 adjusted for 10:1 split on June 11, 2002

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Statement of the Board of Directors

Substantially improved result

Economic recovery and sharplyhigher raw materials pricesThe global economic recovery con-tinued in the reporting year. It wasdriven mainly by China and NorthAmerica. In the real estate sector,the economic expansion was espe-cially reflected in the construction ofresidential buildings, whereas theovercapacities in the commercialbuildings segment were still not ab-sorbed. Vacancy rates for this seg-ment in the most important Euro-pean cities were between 10% and15%. The North American high-risemarket has not yet recovered fromthe trough, which has lasted for sev-eral years.

Thanks to its very good productsand global presence, Schindler suc-ceeded in participating in thegrowth in all markets. The pleasingdevelopments were, however,clouded by three negative externalfactors. These are, firstly, the con-stant pressure on prices and, sec-ondly, the weakness of the US dol-lar. Added to these are, thirdly, exter-nally caused cost increases which,in view of the tough competition,could only partly be offset by priceincreases. In the elevators and esca-lators business, the massive leap inraw materials prices, especially forsteel, weighed on the margin. Thehigher prices for fuel also increased

the cost of operating the servicefleet comprising 11 000 vehiclesworldwide. Furthermore, in somecountries personnel costs were driv-en up much higher than the rate of inflation by automatic increasesthat had to be granted under collec-tive agreements on wages andsalaries. Despite these external neg-ative factors, and especially thanksto the increased productivity whichwas achieved, the result in the re-porting year was substantially im-proved.

Improved operating performanceConsolidated operating revenue

rose by 6.9% from CHF 7 725 millionto CHF 8 259 million. In local curren-cies the increase was 8.1%. At thelevel of operating revenue, lossesdue to exchange amounted to CHF88 million. The major part of thesefurther losses on exchange accruedfrom the US dollar (CHF –138 million)and various other currencies (CHF–18 million), while the euro exerteda positive effect amounting to CHF68 million. The scope of the consoli-dation was expanded to includesmall companies of minor signifi-cance in Romania, Slovakia, andCosta Rica. The effect of all first-time consolidations on both operat-ing revenue and operating profit ofthe elevators and escalators busi-ness is less than 1.0%. For informa-tion regarding changes in the scopeof consolidation of ALSO – especiallywith regard to divestment of thesystems business – and associatedeffects, please refer to the annualreport of ALSO.

Consolidated operating profit

(EBIT) increased by 28.3% to CHF521 million. This includes R03 projectcosts of CHF 83 million (previousyear CHF 137 million). Reflected inthe substantially higher operatingprofit are operational improvementsin the elevators and escalators busi-ness as well as ALSO, which alsoachieved a substantially higher profitafter separating from the systemsbusiness.

Pre-tax consolidated net profit

was CHF 483 million, following CHF344 million the previous year. Con-solidated net profit after taxes andminority interests reached CHF 308million, which is 67.4% above theprevious year’s amount as well ashigher than the expectations an-nounced in February 2004. Net ofthe R03 project costs incurred inboth years, the increase was CHF 70million, or 23.3%.

14 Schindler 700high-rise elevatorsas well as a fur-ther 12 elevatorsare installed inthe awe-inspiringHighlight MunichBusiness Towers;Munich, Germany

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At CHF 8 428 million, consolidated

orders received were 7.1% abovethe previous year’s amount of CHF7 866 million. In local currency val-ues the increase was 8.4%. Theconsolidated order backlog at theend of 2004 rose 0.3% above theprevious year’s value (+5.2% in localcurrencies) to CHF 3 723 million.

Relative to the end of 2003, thenumber of employees went downby 174, or 0.4%, to 39 443. In the el-evators and escalators business, thenumber of people employed in-creased by 198, or 0.5%. The totalnumber of employees at ALSOdropped by a total of 372 as a con-sequence of selling the systemsbusiness.

Growth in the elevators and escalators businessOrders received rose by 4.8% toCHF 6 546 million from CHF 6 246million the previous year. Thegrowth in local currencies was6.6%. The good level of orders re-ceived was derived from all prod-ucts, especially machine room-lesselevators. Since these were intro-duced in mid-1997, Schindler hassold more than 70 000 units world-wide. The proportion of new andstandardized products contained inthe orders received has now reachedalmost 85%. In North America,Schindler gained higher sales mainlyof hydraulic elevators and escala-tors, in addition to which in Asia andSouth America Schindler won ordersfor noteworthy major projects withhigh-rise elevators and escalators.

Paris, this product was also impres-sively deployed at, for example, theprestigious and highly frequentedWhite House Hotel in London,where the elevators of a competingsupplier were modernized.

The Schindler 700 high-rise elevatoris distinctly well received, not onlyin the new elevators business butalso for modernizations. In the caseof modernizations, maintaining or in-creasing the transportation capacityduring and after the replacement ofan installation is an important salesargument. To achieve this, the supe-rior technology of the Miconic 10hall call destination control systemin conjunction with the SchindlerIDaccess control system has gainedsupremacy in the market.This isalso apparent from the fact that Mi-conic 10 is prescribed by consultantsand copied by the competition. Asalready earlier at the Tour Ariane in

Modernization of the eleva-tors at the renowned WhiteHouse Hotel with the Mico-nic 10 hall call destinationcontrol system; London, UK

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The progressive build-up of youngmanagers in Asia, especially inChina, which was already started atan earlier stage, helped to masterthe strong growth of business activ-ity in the region and lay the founda-tions for future expansion of thebusiness.

The positive development in the ele-vators and escalators business wasclouded by sharp cost increases forraw materials, which could noteverywhere be passed on to cus-tomers in the form of price in-creases.

EU antitrust investigationsIn January 2004, the European Com-mission initiated investigations ofthe elevator and escalator industryregarding suspected pan-Europeancollusions.The Board of Directorsimmediately instructed the AuditCommittee to launch an extensiveinternal investigation to find outwhether or not, and to what extent,infringements of the Code of Con-duct of 1997 and/or regulations ofantitrust laws have occurred.Based on the results of the internalinvestigations one has to assumethat in a small number of EU coun-

tries isolated infringements occurredin the past. No indications of pan-European infringements were found.Schindler is providing informationand continues to cooperate activelywith the European Commission.

The escalators business grew sub-stantially in the reporting year.Schindler already attained marketleadership in this business in 1993,and has successfully defended itsnumber one position ever since.This year’s report on innovation (seepage 12) is devoted to escalators.

Operating revenue in the elevatorsand escalators business rose fromCHF 6 133 million to CHF 6 404 mil-lion. This is an increase of 4.4%, or6.1% in local currencies.

Operating revenue (EBITDA) wasCHF 638 million. The EBITDA marginrose by 1.2 percentage points to10.0% (excluding R03 project costs,to 11.3%). EBIT was CHF 508 million.The EBIT margin improved by 1.5percentage points to 7.9%. This cor-responds to a margin of 9.2% be-fore R03 project costs.

In Europe, the first subsidiarieswere successfully converted to thestandardized IT platform, and tostandardized business processesbased on best demonstrated prac-tices. All large European subsid-iaries will adopt the new platform inthe course of 2005, and therebyachieve further progress in produc-tivity.

Paul Friedli, Research &Development, and Emma-nuel Altmayer, Head ofSchindler France, receivedthe Innovation Prize 2004for the SchindlerID accesscontrol system at the SIMIexhibition in Paris. Schind-lerID recognizes specificpassenger needs and con-trols access authorizations.The system is deployed suc-cessfully worldwide.

Neratziotissa Olympic Sta-dium metro station in Athenswith 8 Schindler 9300escalators and 7 elevators;altogether, Schindler sup-plied 273 elevators andescalators for projects ofthe Athens Olympiad; Greece

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At this point no decisions have beenmade by the European Commission.The class-action lawsuits filed in the USA following the announcementsof the EU investigations were re-jected by the responsible judge in NewYork due to lack of evidence. An estimation of financial consequen-ces of the EU proceedings cannotbe made at present. As a conse-quence, no provisions were set upin the closing 2004.

ALSO: Successful focus on thecore businessThe management of ALSO, which isactive in the IT logistics and servicesbusiness, succeeded in bringing the company back onto the path togrowth and selling the redimen-sioned systems business. Focusingon the core business brought a verysubstantial improvement in the re-sult, to which a positive contributionwas also made by ACS Trading,which was acquired during the re-porting year.

ALSO posted strong growth in bothsales and income. Net sales in-creased from CHF 1 598 million toCHF 1 857 million (+16.2%). Relativeto the previous year, operating profitincreased by 93.6% to CHF 30.4million. Net income attained CHF 21.2million (previous year CHF 1.8 mil-lion).

Changes in top managementOn January 1, 2005, Dr. ClemensKolbe, formerly a Member of the Ex-ecutive Committee of Thyssen-Krupp Elevator and Chairman of theExecutive Board of ThyssenKruppAufzüge GmbH, joined the SchindlerGroup. In the rank of a Member ofthe Management Committee he re-ports directly to the Executive Com-mittee of the Board, and is en-trusted with strategic assignments.

Also on January 1, 2005, after al-most 10 years working for Schindlerin various demanding positions,Heikki Poutanen, Member of theManagement Committee responsi-ble for North, Central, and South

America, relinquished his line func-tion because of ill health. After hisconvalescence he will continue tobe available for strategic projects.His function has been taken overtemporarily by Roland W. Hess in ad-dition to his role as President of theManagement Committee Elevatorsand Escalators.

Fork lift trucks of the latestgeneration, which are capa-ble of receiving informationvia a wireless network, areused to transfer IT productsinto and out of the ware-house; ALSO logistics cen-ter; Emmen, Switzerland

A SchindlerEuroLift solvesthe transportation needs of the primary school; Nes-kaupstadur, Iceland

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The Board of Directors has also des-ignated Roland W. Hess as succes-sor to Alfred Spörri, Member of theExecutive Committee of the Board,who will retire on April 1, 2007.Roland W. Hess will then be suc-ceeded as President of the Manage-ment Committee Elevators and Escalators by Jürgen Tinggren, cur-rently Member of the ManagementCommittee responsible for Asia/Pacific.

Dividend of Schindler Holding Ltd.Schindler Holding Ltd. closed the2004 reporting year with a net profitof CHF 133 million (previous yearCHF 127 million). The next GeneralMeeting on March 21, 2005, will berequested to approve payment of adividend of CHF 7.– per registeredshare and bearer participation certifi-cate.

The change in capital resulting fromrepurchase of shares determined bythe General Meeting of March 18,2004, became effective on June 3,2004, with the following new capitalstructure: The share capital is CHF 7 356 820, which is divided into7 356 820 registered shares with anominal value of CHF 1.– each.The participation certificate capital is CHF 5 141 640, comprising 5 141 640bearer participation certificates witha nominal value of CHF 1.– each (seealso page 58 of the Financial State-ments).

The program that was announcedon February 28, 2002, to repurchasea maximum of 10% of the outstand-ing registered shares and bearerparticipation certificates, has beenextended until December 31, 2005.

OutlookGlobal economic growth will proba-bly slow somewhat in 2005. Theprospects for growth in the USA aresubject to uncertainty. Demand inChina is likely to decline because ofinflation, higher interest costs, moreexpensive raw materials, and in-creasing bottlenecks in energy sup-plies. The decline in demand willalso cause a slowdown to growth inthe surrounding countries, sincethese have a positive balance oftrade with China. In important coun-tries of Europe, only modest growthcan be expected because of un-solved structural problems.

Modernization of 23 eleva-tors with the Miconic 10 hallcall destination controlsystem in the Tour Ariane;Paris, France

The Cosco commercial build-ing is served by 18 eleva-tors, including 13 Schindler700, in addition to 4 Schind-ler 9300 escalators; Beijing,China

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Despite this cautious assessment ofglobal growth and continuously ris-ing costs, Schindler expects a fur-ther improvement in the result for theelevators and escalators business,since various measures will exert apositive effect on productivity. A sig-nificant step will take place with thestriven-for reduction in manufactur-ing depth. For example, starting in2005, permanent-magnet drives willbe produced to Schindler’s designsand quality specifications by a Japa-nese manufacturer in China, andsubsequently in other regions of theworld. Some of the European proj-ects to improve productivity will, asalready stated, only take full effectin 2005. In China, escalator produc-tion is being concentrated at theShanghai factory, while the Suzhouplant is specializing in the produc-tion of elevators. And finally, thelaunch of new products that under-score the great innovative strengthand high quality of Schindler will gen-erate additional impulses.

In the light of the foregoing assess-ments, and leaving aside unforesee-able events, it is anticipated thatSchindler will report a substantiallybetter consolidated net profit for2005.

Thanks to employeesIn the reporting year, a very heavyworkload had to be mastered.Throughout the year, our employeesworked with great dedication andhigh motivation to attain the speci-fied goals. The Board of Directorsand the Management Committeeappreciate these exemplary effortsand extend their sincere thanks toevery individual employee.

The 8 elevators atDEKA Bank areequipped with theMiconic 10 hallcall destinationcontrol system;Luxembourg

Alfred N. SchindlerChairman of the Board of Directors

Luc BonnardVice Chairman of the Board of Directors

Maintenance work in themachine room of the HiltonAmericas Hotel, which has37 elevators, including 12Schindler 700, and 10Schindler 9300 escalators;Houston, Texas, USA

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Annual Report 2004 Schindler Group12

“With an escalator you can trans-port customers and triple yoursales.” That’s how Ernst Weber,Regional Vice President of MigrosLucerne, Switzerland, sums up therole of the escalator.

In recent years, innovative conceptsand groundbreaking technologieshave enabled Schindler to consoli-date its position as world marketleader in escalators and moving walks.Without these means of transpor-tation, movement of the ever-increas-ing numbers of passengers in thecommercial as well as in the publictransport segment would no longerbe feasible. In shopping malls andoffice buildings, as well as railroadstations, subway stations, and air-ports, smooth flows of people areessential for efficient functioning ofthe infrastructure in such complexes.

Schindler 9300 Advanced Edition – a complete programThe Schindler 9300 Advanced Edi-tion escalator is the latest genera-tion of the Schindler 9300 escalatorfor commercial as well as standardpublic transportation applications. It is being introduced worldwide andcovers with new solutions cus-tomers’ needs throughout the prod-uct life cycle from planning to mod-ernization.

Planning support withSchindlerDraw With SchindlerDraw, Schindler esca-lators can be planned efficiently,professionally, and interactively bythe customer’s representative. Thisonline program is available on thewebsite free of charge, and offerstraffic flow analyses, true-to-scaleplans, and predefined specifications.Users can save their projects intheir personal project folder anddownload the plans they have cre-ated in a standard CAD format forfurther processing.

Innovation 2004

Schindler 9300 Advanced Edition – innovation for individual customer needs

The Schindler 9300 Ad-vanced Edition escalatorallows implementation ofspecial requirements regard-ing design, location, andenergy saving, besides offering variable dimensionsand a range of functions toreduce running costs

Escalator production;Vienna, Austria

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Synchronized production systemFor the first time in the escalatorindustry, this most modern produc-tion method is used for manufactur-ing the Schindler 9300 AdvancedEdition. Unlike the assembly at a fix

position, the escalators passthrough several work stations atsynchronized intervals and areassembled in stages by smallteams. At the end of each interval,the respective team is responsiblefor its own quality control, whichallows efficient quality managementand increases the employees’ moti-vation. Use of this productionmethod has reduced the lead timeby a quantum leap.

Safety – no compromisesIn the new generation of escalators,proven systems have beenenhanced with new elements in aninnovative safety package. Thanksto two independent microproces-sors, which communicate via a bussystem, the MICONIC F4 controllerincreases reliability and monitors allsafety equipment. The step monitorcontinuously checks the speed ofthe installation and that no steps aremissing. The unique step guidancesystem in combination with skirtbrushes reduces the risk of entrap-ment. With all these enhancements,Schindler provides additional cus-tomer value and sets new standardsin terms of reliability and safety.

The skirtings have rein-forced backs and antifric-tion coated fronts. Theseprevent shoes or otherobjects becoming wedgedbetween the steps and theskirtings. Cleverly designedskirt brushes reduce the risk of wedging even further.

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Efficient operation and quiet runningThe Schindler 9300 Advanced Edi-tion is the quietest escalator on themarket. The combination of a 6-polemotor with the Schindler reductiongear allows unusually quiet running.In addition, the 3-cm-thick aluminumfloor covers at both ends of theinstallation dampen footsteps andserve to soundproof the drive. Themicroprocessor-controlled auto-matic lubrication system providesadditionally quiet running, protectscomponents, and reduces oil con-sumption.

The new motor concept allows thenominal power of the motor to bereduced by up to 27% relative toolder models of escalators. Utiliza-tion of the proven ECOLINE pack-ages makes further energy savingspossible. For example, when theescalator is not being used, itswitches automatically to the so-called crawling speed, which isapproximately 20% of the normalspeed.

ModernizationOlder models of escalators andmoving walks can be brought up tothe current state of the art with arange of modernization kits. There isa selection of safety, design, func-tionality, energy, and environmentalkits.

4 Schindler 9300escalators trans-port visitors in theMalba Museum;Buenos Aires,Argentina

2 escalators in the Luxem-bourg Chamber of Com-merce building; Luxembourg

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Quiet runningAverage sound level of commercialescalators from leading manufacturers in dBA

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Contradictory economicsignalsThe extent of the economic recov-ery differed from country to country.In practically all markets, residentialconstruction activity was moredynamic than anticipated at the startof the year. Commercial buildingconstruction presented a totally dif-ferent picture: growth was still tooslow to absorb the high overcapaci-ties of office space.

In addition, the unexpected steeprise in prices for steel and oilweighed on the cost side and couldnot be completely offset by im-proved efficiency and price increases.

Competitive productsWith the SchindlerSmart elevatorline, Schindler successfully partici-pated in the expanding market seg-ment for residential building con-struction and strengthened its goodposition. Demand for the construc-tion of commercial buildings was

still extremely weak, which nega-tively affected price realization.Schindler countered this challengeeffectively with a low-cost versionof the SchindlerEuroLift. The busi-ness volume in the high-rise seg-ment remained small and was there-fore very competitive. Schindleractively participated in the modern-ization market of high-rise elevatorswith the Miconic 10 hall call destina-tion control system. In such mod-ernization projects the control sys-tem is overlaid on top of the exist-ing system right at the start of therenovation process. This has the ad-vantage that while one elevator istaken out of service for moderniza-tion, the remaining elevators arecontrolled so efficiently that users donot notice that a car is out of ser-vice. When the modernization workis complete, the performance of theelevators is sharply increased by theMiconic 10 hall call destination con-trol system.

The escalator business was excep-tionally successful. Not only did nu-merous retailers place major ordersfor Schindler products and services,but Schindler escalators will also be installed in the world-famous newWembley soccer stadium. And inthe transportation segment, negoti-ations with Deutsche Bahn weresuccessfully concluded with theaward of a frame contract.

Market profile elevators and escalators

Europe

Panoramic elevator in the 4-star hotel Château deLigny; Ligny-en-Cambrésis,France

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Successful introduction of stan-dardized business processesFollowing extensive test runs theprevious year, the first Europeansubsidiaries were successfully con-verted to the harmonized businessprocesses based on best demon-strated practices utilizing a standard-ized IT platform.

OutlookDemand for construction of resi-dential buildings should continue tobe positive in 2005. The market for high-rise elevators will remainweak and in the commercial sector continued low demand is expected, particularly in Germany. However,Schindler is confident that it can ex-pand its strong position with the existing range of products and alsowith the planned new products and services for both the new instal-lations business as well as the modernization and maintenancebusiness.

23 Schindler 9300 escalatorsand 4 elevators trans-port spectators in the Ams-terdam Arena, Netherlands’largest soccer stadium;Amsterdam, Netherlands

For the Migros Surseeparkshopping mall Schindlersupplied 9 elevators and 4Schindler 9500 movingwalks; Sursee, Switzerland

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Europe

Major orders

Austria:10 elevators for Hotel Sacher, Vienna; 7 Schindler 9700 escalatorsfor Vienna metro system, Vienna;10 Schindler 9300 escalators, 7SchindlerEuroLift elevators, and 3 freight elevators for shoppingmall, Wels

Belgium:19 elevators, including 11 Schindler-EuroLift, for Commission of Euro-pean Communities ILOT 65 officebuilding, Brussels; 20 Schindler 500elevators for European Council Lex2000 building, Brussels; 18 Schind-lerEuroLift elevators and 15 Schind-lerSmart MRL 002 DE elevators forCharlemagne office building andparking garage, Louvain-la-Neuve

France:60 Schindler 9300 escalators and 44Schindler 9500 moving walks forSatellite S3 at Roissy Charles-de-Gaulle Airport, Roissy; 26 elevatorsincluding 15 SchindlerEuroLift withMiconic 10 for Capital 8 office build-ing, Paris; maintenance contract for205 elevators at ICADE residentialbuildings in Paris and suburbs, 195of which will be modernized duringthe next three years

Germany:14 Schindler 9300 escalators, 14Schindler 9500 moving walks, and 2other escalators for Europapassageshopping mall, Hamburg; 6 eleva-tors, including 5 Schindler 500 eleva-tors with Miconic 10, for RWETower, Dortmund; 10 SchindlerEuro-Lift elevators for Officium officebuilding, Stuttgart; 15 elevators and7 escalators for Köln Arcaden shop-ping mall, Cologne

Greece:12 SchindlerEuroLift elevators and12 Schindler 9300 escalators for 5stations of ISAP electric rail system,Athens; 8 Schindler 9300 escalatorsand 7 SchindlerEuroLift elevators for Neratziotissa – Olympic Stadiumstation of Athens Suburban Railway,Athens

For Tower CBX, Schindlersupplied 10 Schindler 700high-rise elevators equippedwith the Miconic 10 hall calldestination control systemand SchindlerID access con-trol system, as well as 3 fur-ther elevators; Paris, France

SchindlerSmart MRL 002 ele-vator in a residential com-plex; Vienna, Austria

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6 elevatorsSchindlerEuroLift,including 3panoramic eleva-tors, are installedin the shoppingmall and officebuilding of thePoldrini Group;Bolzano, Italy

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Norway:11 elevators, including 9 Schindler-EuroLift, for the opera house, Oslo

Portugal:12 Schindler 9500 moving walks, 8 Schindler 9300 escalators, and 8SchindlerEuroLift elevators forSonae shopping mall, Loures; mod-ernization of 6 Schindler 500 eleva-tors at Torre 2 Amoreiras officebuilding, Lisbon

Spain:6 elevators with Miconic 10 for TorreLugano, Europe’s tallest residentialbuilding, Benidorm, Alicante; 27 ele-vators, including 20 Schindler 700,for the Torre Espacio office building,Madrid; maintenance contract for 48 Schindler 9300 escalators, 12Schindler 9500 moving walks, and 8 elevators, including 2 Schindler-EuroLift, at El Corte Inglés shoppingmall, Valencia

Sweden:8 Schindler 9300 escalators and 2Schindler 9500 moving walks forKupolen shopping center, Borlänge

Switzerland:47 elevators, comprising 37 Schind-lerEuroLift and 10 freight elevators,as well as 12 Schindler 9300 escala-tors for Sihlcity shopping, office,and residential complex, Zurich; 20elevators, including 10 Schindler-EuroLift and 5 panoramic elevators,for Dolder Grand Hotel, Zurich; 6Schindler 80 freight elevators and 3 SchindlerEuroLift elevators forRoche Building 95, Basel; modern-ization of 17 elevators in high-riseward building of Inselspital hospital,Bern

United Kingdom:30 Schindler 9300 escalators, 25SchindlerEuroLift elevators, and 1 freight elevator for Wembley Sta-dium, London; 9 Schindler 500 ele-vators for Beetham Hilton Hotel,Manchester; 22 Schindler 9300 es-calators and 11 SchindlerEuroLiftelevators for Race Course building,Ascot; modernization of 5 elevatorswith SchindlerID and Miconic TX atDeutsche Bank, London; moderniza-tion of 5 elevators with SchindlerIDat Lloyds Chambers office building,London

Iceland:2 Schindler 9500 moving walks forSmáratorg shopping mall, Kópa-vogur – first moving walks in Iceland

Italy:25 elevators, including 10 Schindler-EuroLift, 35 Schindler 9500 movingwalks, and 8 Schindler 9300 escala-tors for Centro Polifunzionale, Portadi Roma; 28 Schindler 9700 escala-tors and 15 elevators, including 10panoramic elevators, for Metropoli-tana di Torino subway, Turin; 6 ele-vators with Miconic 10 for PalazzoAlto Grandi Stazioni office building,Naples; 32 elevators and 8 Schindler9300 escalators for Cruise Liner6122, built by Carnival/Costa; 12Schindler 9500 moving walks and 6elevators for La Romanina shoppingcenter, Rome

Netherlands:4 elevators and 23 Schindler 9300escalators for Amsterdam Arenafootball stadium, Amsterdam; 9 ele-vators, including 7 SchindlerEuroLift,for Shell office building, The Hague;modernization of 16 elevators atMarshall Square residential complex,Rijswijk

Installed in the Palais Coburgare 10 Schindler elevators,including 5 panoramic elevators; Vienna, Austria

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The physician center in Krems is served by aSchindlerSmartMRL 002 elevator;Krems, Austria

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Economic upswingEconomic expansion in North Amer-ica brought 3% growth to the con-struction industry overall, but therewere differences between individualsegments. On the one hand, con-struction of residential buildingsbenefited from demographic devel-opments. On the other hand, thepublic sector contracted slightly, re-flecting higher prices for construc-tion materials. The vacancy rates inthe office market finally stabilizedbut still remained at a high level.

Further expansion of the strong market position inNorth AmericaSchindler held its number one posi-tion in the escalators market, and inthe commodity elevators segmentwas exceptionally successful withthe Schindler 300 A hydraulic eleva-tor. Increasing use of the Miconic 10hall call destination control systemstrengthened the modernizationbusiness.

In 2004, the production plant at Get-tysburg, Pennsylvania, celebratedits 35th anniversary. In the lastdecade the elevator factory doubledits output, and invested in the re-porting year in new technology forprocessing sheet metal to increaseproductivity. This will enable it tosuccessfully satisfy the continu-ously increasing demand for high-quality products.


North, Central, and South America

Employees receive ongoingeducation and training atthe new North AmericanCenter for Service Excel-lence; Holland, Ohio, USA

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The maintenance business experi-enced strong competition. The tai-lored customer solutions launched inthe previous year contributed tohigher customer satisfaction and ledto an increase in the maintenanceportfolio. To adapt the Schindler ser-vices even better to the diverseneeds of customers, the NorthAmerican Center for Service Excel-lence was set up in Holland, Ohio. It provides technical expertise, salessupport, quality assurance, andtraining.

Leading position in Latin America strengthenedThe recovery in the Latin Americancountries continued and affectedthe elevators and escalators busi-ness positively. The strongestgrowth was experienced in Mexicoand Chile. In Brazil, the most impor-

OutlookCurrent expectations are for thegrowth rate in North America to slowdue to high oil and steel prices.Growth in residential constructionshould prove stable. Demand for of-fice space may slightly increase,causing the vacancy rates to gradu-ally improve.

In view of the historically low inter-est rates in most Latin Americancountries, an increase in gross na-tional product can be expected,which will favorably affect the eleva-tors and escalators business.

Based on the strengths of its com-petitive product range and cus-tomized services, Schindler is opti-mistic that it can fully participate inthe growth in all segments.

tant market in Latin America, therewas strong demand for constructionof residential buildings as well as in the lower segment of the commer-cial sector, whereas in the top seg-ment of the commercial sectorthere was still a large amount of un-occupied space.

In the escalator business, infrastruc-ture projects for public transporta-tion as well as investments in newshopping malls brought expansionto the escalator market for the sec-ond year in succession.

Schindler strengthened its marketleadership position in all segments.During the year, the Schindler 300 Lelevator was launched, which meetsthe requirements for up-scale resi-dential buildings. In Mexico, signifi-cant orders were received for eleva-tors equipped with the Miconic 10hall call destination control system.

The Latin American market also suf-fered from high prices for steel. Thisnegative factor could be at least par-tially offset by cost-reduction mea-sures.

The 6 Schindler elevators in the Vicente Huidobrocommercial building areequipped with the Miconic10 hall call destination con-trol system; Santiago, Chile

31 Schindler 9300 escala-tors, 5 Schindler 510 Lpanoramic elevators, and 2 Schindler 310 L serviceelevators transport people inthe El Tolón commercialbuilding; Caracas, Venezuela

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Alaska:Maintenance contract for 32 eleva-tors at Providence Alaska MedicalCenter, Anchorage

California:20 elevators, including 13 Schindler500 A, and 18 Schindler 9300 escala-tors for 2000 Avenue of Stars retailand office building, Los Angeles;maintenance contract for 54 eleva-tors at Century Plaza Towers officebuilding, Los Angeles; maintenancecontract for 39 elevators at City ofBeverly Hills public administrationbuilding, Beverly Hills

Florida:Maintenance contract for 52 eleva-tors at Florida International Univer-sity Park Campus, Miami; mainte-nance contract for 39 elevators atSaint Joseph’s Hospital, Tampa

Georgia:31 elevators, including 17 Schindler330 A, and 22 Schindler 9300 escala-tors for Atlantic Station commercialand office building, Atlanta

Illinois:Maintenance contract for 49 eleva-tors and 2 escalators at Sears Cor-porate Headquarters, Hoffman Es-tates; modernization of 16 elevatorswith Miconic 10 and Miconic TXat 55 West Monroe office building,Chicago

Indiana:Maintenance contract for 11 eleva-tors and 16 escalators at IndianaGovernment Center South officebuilding, Indianapolis

Louisiana:Modernization of 14 elevators withMiconic 10 at Marriott Hotel, NewOrleans

Michigan:Maintenance contract for 69 eleva-tors and 2 escalators at Henry FordHospital, Detroit; modernization of17 elevators at Michigan State Uni-versity, East Lansing; modernizationof 20 elevators at University ofMichigan, Ann Arbor

Minnesota:Maintenance contract for 36 eleva-tors at Northwest Airlines officebuilding, Eagan

Nevada: 8 elevators with Miconic TX and 20Schindler 9300 escalators for WorldMarket Center office and commer-cial building, Las Vegas

New Jersey:Maintenance contract for 22 eleva-tors and 6 escalators at Mall atShort Hills shopping center, ShortHills

New York:Maintenance contract for 31 eleva-tors and 6 escalators at WorldwidePlaza office building, New York;modernization of 33 elevators withMiconic TX at 1345 Avenue of Amer-icas office building, New York; mod-ernization of 22 elevators with Mi-conic TX at 299 Park Avenue officebuilding, New York; modernization of23 elevators with Miconic TX at Park Avenue Plaza office building,New York

Ohio:Maintenance contract for 34 eleva-tors and 21 escalators at Hopkins In-ternational Airport, Cleveland

Oregon:Modernization of 22 elevators withMiconic 10 at Wells Fargo officebuilding, Portland


Major orders

Schindler supplied 10elevators, 8 of themequipped with theMiconic 10 hall calldestination controlsystem, for the Qur-vic office building;Mexico City, Mexico

33 Schindler 9300 escala-tors and 15 hydraulic eleva-tors are installed in theFashion Show Mall; LasVegas, Nevada, USA

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Pennsylvania:Modernization of 24 elevators withMiconic 10, and maintenance con-tract for 28 elevators and 2 escala-tors, at Mellon Bank office building,Philadelphia; maintenance contractfor 26 elevators and 2 escalators atDavid L. Lawrence Convention Cen-ter, Pittsburgh; modernization of13 elevators with Miconic 10 at Ara-mark office building, Philadelphia

Texas:Maintenance contract for 21 eleva-tors and 30 escalators at George R.Brown Convention Center, Houston;modernization of 20 elevators atUniversity of Texas, Arlington; mod-ernization of 14 elevators at KBRoffice building, Houston

Virginia: Modernization of 7 elevators atRosslyn Center office building, Ar-lington

Washington: Maintenance contract for 26 eleva-tors and 2 escalators at Bank ofAmerica, Seattle

Canada: 3 Schindler 330 A hydraulic eleva-tors and 7 Schindler 9300 escalatorsfor Marche Centrale shopping mall,Montreal; 2 Schindler 9300 escala-tors for Bay shopping mall, St. Cath-erines; 21 Schindler 9300 escalatorsand maintenance contract at Metro-polis entertainment center, Toronto

Argentina: 8 Schindler 510 L elevators, 9SchindlerSmart MRL 002 elevators,and 1 hydraulic elevator for SofitelMadero hotel, office, and residentialbuilding, Buenos Aires; 7 Schindler-Smart MRL 002 elevators for PuntaChica Village residential building,San Isidro City

Brazil:15 SchindlerSmart MRL 002 L eleva-tors and 18 Schindler 9300 escala-tors for metro, Recife; 14 Schindler9300 escalators for Estação da Luzrailroad station, São Paulo; 23Schindler 310 L elevators and 4SchindlerSmart MRL 002 L elevatorsfor Tribunal Superior do Trabalho la-bor court, Brasília; modernization of16 Schindler 510 L elevators atAcademia Brasileira de Letras officebuilding, Rio de Janeiro; moderniza-tion of 8 elevators with Miconic 10at Telecomunicações de São Paulooffice building, São Paulo

Chile:6 elevators with Miconic 10 for Isi-dora 2004 commercial building, San-tiago-Las Condes; 3 SchindlerSmartMRL 002 elevators, 3 Schindler 9300escalators, and 4 Schindler 9500moving walks for Mall Los Trapen-ses, Santiago-Lo Barnechea; 6Schindler 9500 moving walks forLíder supermarket in Mall PlazaVespucio, Santiago-La Florida; mod-

ernization of 4 elevators with Mi-conic 10 for Fundación office build-ing, Santiago Downtown

Mexico:25 elevators, comprising 9 Schind-lerEuroLift and 16 with Miconic 10,and 18 Schindler 9300 escalators forReforma 222 shopping, office, hotel,and residential building, MexicoCity; 21 elevators, including 13SchindlerEuroLift, for Los Atriosshopping, office, and hotel building,Mexico City; 15 elevators and 2Schindler 9300 escalators for TorreReforma Ángel office building, Mex-ico City

Venezuela:26 SchindlerEuroLift elevators, 42 Schindler 9700 escalators, and 2 Schindler 9500 moving walks for Metro de Caracas, Caracas; 2Schindler 510 L elevators, 2 Schind-ler 310 L elevators, and 4 Schindler9300 escalators, for Desarrollos Rehov 1977 de Venezuela shoppingmall, Caracas; modernization of 12elevators with Miconic 10 at CentroFinanciero Latino office building,Caracas

Schindler supplied8 escalators and13 elevators forOhtake Cultural,the architecturalreference buildingdesigned by RuyOhtake, one ofBrazil’s foremostarchitects; SãoPaulo, Brazil

Passengers at Boise Airportare served by 5 Schindler9300 escalators and 6hydraulic elevators; Idaho,USA

The Hilton Americas Hotelhas 10 Schindler 9300 esca-lators and 37 elevators,including 12 Schindler 700;Houston, Texas, USA

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48 Schindler 9700 escala-tors and 9 Schindler 9500moving walks providemobility on the Ma On ShanLine of the Kowloon-CantonRailway Corporation (KCRC);Hong Kong, China

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Dynamic marketsIn most countries of the Asia/Pacificregion, growth rates – especially inthe first half of 2004 – were higherthan forecast. Later in the year, ris-ing prices for raw materials slightlyreduced this dynamism. Hong Kongand Singapore recovered well fromthe economic downturn of the pre-vious year caused by SARS, andJapan continued on its path to eco-nomic revival. Developments in Ko-rea were overshadowed by rising in-flation and weak domestic demand.Growth in Australia and NewZealand slowed in the second halfof the year. China, on the otherhand, continued the pace of rapidgrowth despite intervention by theChinese government to cool theeconomy.

Except in Japan, the elevators andescalators market reflected the fa-vorable economic conditions. TheChinese market grew strongly, andnearly all Southeast Asian countriesexperienced increasing demand.

Further gains in market shareSchindler benefited from the favor-able market conditions as well as itsrenewed product range. It strength-ened its market position, gainedshares of key markets, and posted asharp increase in sales.

The new SchindlerElegant MRL prod-uct line of machine room-less eleva-tors designed for basic residentialbuildings, as well as the Schindler300 P MRL for high-requirement res-idential buildings and the commer-cial segment, were both well ac-


Asia/Pacific

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All 8 Schindler 700 elevatorsin Civic Tower are equippedwith the Miconic 10 hall calldestination control systemand the SchindlerID accesscontrol system; Sydney,Australia

In the Three Pacific Placeoffice building, the Schind-lerID access control, systemoversees 20 elevators,which include 16 Schindler700 high-rise elevators;Hong Kong, China

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cepted by the market and showedexcellent growth rates. Schindlersecured substantial projects withthe Schindler 700 high-rise elevator,and expanded its strong position inthe escalators business where ma-jor orders for the extension of thesubway systems in Guangzhou andNanjing were won with theSchindler 9700 escalator.

However, the sharply higher pricesfor steel and other raw materialspresented a tough challenge. Costshad to be cut rapidly in all areas toreduce the negative effects on themargins of the order backlog. Priceadjustments on sales of new instal-lations also became unavoidable.

OutlookThe economic growth is expected tocontinue in 2005, driven by stabledomestic demand and brisk interna-tional business. However, in view of the sharp increases in raw mate-rial prices, especially for oil, steel,and cement, as well as higher inter-est rates, construction activity is ex-pected to lose some of its dynamism.

To absorb the growth and improvecompetitiveness, investments arebeing made to expand the produc-tion capacity in China. The upgradedelevator and escalator factories willsupply the Schindler Group globallyand will be among the largest andmost modern in the industry. Inview of the developments regardingcosts, in 2005 Schindler will againfocus on further increases in effi-ciency and measures to reducecosts. These endeavors, along withwell-positioned products, bettermarket coverage, and growing cus-tomer satisfaction, should con-tribute to enabling Schindler to fur-ther strengthen and expand its mar-ket position.

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38 elevators, in-cluding 23 Schind-ler 700 high-riseelevators, alongwith 2 Schindler9300 escalators,ensure fast trans-portation in theLangham Placehotel and officetower; HongKong, China

The Citic City Plaza com-mercial building is servedby 42 Schindler 9300 escala-tors and 22 elevators; Shen-zhen, China

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Asia/Pacific

Major orders

Australia: 8 Schindler 700 elevators and 3Schindler 300 P elevators for DarlingPark Stage 3 office building, Sydney;8 Schindler 700 elevators for 100Pacific Highway office building, Syd-ney; 8 Schindler 300 P MRL eleva-tors with Miconic 10 for Section 88office building, Canberra; 10 Schind-ler 9300 escalators and 6 Schindler300 H elevators for Westend Plazashopping mall, Melbourne; 8 Schind-ler 9300 escalators and 3 Schindler9500 moving walks for Adelaide Airport, Adelaide; 8 Schindler 300 PMRL elevators for Raffles Apart-ments residential building, Perth

China:35 elevators and 60 Schindler 9300escalators for Shenzhen Jin Guang-hua Industrial Commercial Plaza,Shenzhen; 64 Schindler 9300 escala-tors and 7 elevators for China Ce-ramic Science City commercial cen-ter, Zibo; 65 elevators for Beijing EraStar office and residential building,Beijing; 11 elevators, 46 Schindler9300 escalators, and 4 Schindler9500 moving walks for Dalian MetroTriumph Plaza shopping mall, Dalian;53 elevators, including 37 Schindler-

Elegant MRL, and 7 Schindler 9300escalators for Lakeside New Worldcommercial center, Suzhou; 32Schindler 700 elevators, 10 Schindler300 P MRL elevators, and 10 Schind-ler 9300 escalators for Zhong HuanWorld Trade Center, Beijing; 4 eleva-tors and 40 Schindler 9300 escala-tors for Southwest Business Man-sion commercial center, Yun’Nan; 41 Schindler 9300 escalators and 2Schindler 9500 moving walks forYan Tai Jiu Long Street shoppingmall, Yantai; 12 elevators and 31Schindler 9300 escalators for Chang-sha Tong Lo Bay Plaza commercialcenter, Changsha; 39 elevators, in-cluding 37 Schindler 300 PCL, for Lot114 residential complex, Shanghai

Hong Kong:37 elevators and 10 Schindler 9300escalators for Tiu Keng Leng StationDevelopment residential complex; 8elevators and 20 Schindler 9300 es-calators for International ExhibitionCentre; 14 Schindler 9300 escalatorsfor Landmark and Office Towershopping mall and office building,phase 6

Indonesia:65 Schindler 9300 escalators and13 elevators for Pondak Indah Mall 2shopping center, Jakarta

Japan: 10 Schindler NEU elevators forHama-Koushien Housing residentialbuildings, Hyogo; 10 Schindler 9300escalators for AEON Yatsushiroshopping mall, Kumamoto; 12SchindlerSmart J elevators for AbikoHishi Housing residential buildings,Osaka; 16 Schindler 9300 escalatorsfor Tokyo Mid Town office, commer-cial and residential center, Tokyo

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Modernization of 11 eleva-tors in the Wisma SimeDarby office building; KualaLumpur, Malaysia

2 panoramic elevators forthe Minh Sang Plaza shop-ping mall; Binh DuongProvince, Vietnam

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3 Schindler 9300escalators and 2 elevators for theCinema Two movietheater; Tokyo,Japan


Malaysia:14 elevators for Sri Putramas 2 resi-dential buildings, Kuala Lumpur; 27 Schindler 300 P elevators and 4Schindler 9300 escalators for Metro-politan residential buildings, Selan-gor Darul Ehsan; 24 Schindler 9300escalators and 3 Schindler 300 P ele-vators for Cineleisure shopping mall,Selangor Darul Ehsan; 26 elevatorsfor Kom Mahkamah office building,Kuala Lumpur

New Zealand:6 elevators, including 5 Schindler300 P MRL, and 7 Schindler 9300 es-calators for Auckland InternationalAirport, Auckland; modernization of3 elevators with Miconic 10 andSchindlerID at Wool House officebuilding, Wellington

Philippines:60 SchindlerElegant MRL elevatorsand 24 Schindler 9500 moving walksfor Guimaras residential complex,Iloilo City; 4 elevators, 10 Schindler9300 escalators, and 3 Schindler9500 moving walks for Waltermartshopping mall, Makati; 60 elevatorsand 32 Schindler 9300 escalators forSSS Corporate Center, Quezon City

Singapore:16 Schindler 9500 moving walks atIMM office building

Taiwan:14 Schindler 9300 escalators for NKExhibition center, Taipei; 9 elevatorsfor AIA – Hsin Yi office building,Taipei; 4 elevators and 9 Schindler9500 moving walks for Megaful-YDshopping mall, Taipei

Thailand:19 elevators for Column Tower of-fice building, Bangkok; 14 elevatorsfor Sofitel Sukhumvit Hotel,Bangkok; 15 elevators for Jungcey-lon Phuket Hotel, Phuket; 14 eleva-tors and 4 Schindler 9300 escalatorsfor hotel and shopping complex atBangkok Airport, Bangkok

Vietnam:24 elevators for Van Quan – HUDresidential buildings, Hanoi; 10SchindlerElegant MRL elevators and2 Schindler 9300 escalators for DatPhuong Nam residential buildings,Ho Chi Minh City

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Schindler supplied 8 Schind-ler 9300 escalators and 2SchindlerEuroLift elevatorsfor the Henry Chichesteroffice building and shoppingmall; St. Petersburg, Russia

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Markets with strong potential for growthThe enlargement of the EU broughthigher growth rates to the East Eu-ropean markets. In Russia and India,the growth continued. The MiddleEast and North Africa presented amixed picture, with some countriesconfronted by difficult market condi-tions because of the conflicts in Iraqand Israel. South Africa experienceda moderate growth of the economy.

Despite tough competition,Schindler succeeded in growing inalmost every market. To strengthenthe market position, a new logisticsand services concept was intro-duced. It allows greater and fasterattention to be given to specific cus-tomer needs in the respective mar-kets.

Russia and Eastern EuropeEastern Europe enjoyed strong con-struction activity in both the residen-tial and commercial sectors. Thefast pace of growth continued un-abated in Russia’s major cities. In allmarkets, the modernization busi-ness benefited from customers’ re-quirements for higher quality.

Schindler expanded its good marketposition with its SchindlerSmart andSchindlerEuroLift product lines. InRomania, Schindler won the order

for Schindler 700 high-rise elevatorsfor the Charles de Gaulle Plaza com-mercial center. Sales in the escala-tor business also increased sharply.

IndiaIndia experienced growth of 8%.There was strong demand in boththe residential and commercialbuildings sectors.

The Schindler Easy, Schindler Clas-sique, and Schindler Elegant prod-uct lines in the residential segmentwere well received by the market.


Eastern Europe, Middle East, India, and Africa (EMIA)

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4 elevators are installed inthe office building of GunesInsurance; Istanbul, Turkey

A service technician carriesout maintenance and ser-vice work at a public build-ing in Johannesburg, SouthAfrica

Major order for Schindler inCairo: 122 elevators, 84escalators, and 12 movingwalks for the Golden Pyra-mids Plaza hotel, residen-tial, commercial, and shop-ping complex; Cairo, Egypt

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Middle East and North AfricaWhile countries like Israel, Egypt,Morocco, and Turkey were facedwith stagnating, or even shrinking,markets, the construction industryin the United Arab Emirates,Bahrain, Kuwait, Qatar and SaudiArabia was extremely active. In thePersian Gulf and Middle East, espe-cially in the high-rise segment,Schindler won major projects withthe Schindler 700 high-rise elevatorutilizing the Miconic 10 hall call destination control system andSchindlerID identification system.

The acquisition of a minority posi-tion in Saudi Elevator Companystrengthens Schindler’s position inSaudi Arabia.

South AfricaIn the residential market, Schindlersuccessfully introduced the Schindler 100 P MRL product line ofmachine room-less elevators. In the commercial sector, Schindler ex-panded its market position mainlythrough numerous modernization proj-ects in the high-rise segment.These included successful use ofthe Miconic 10 hall call destinationcontrol system.

OutlookSchindler foresees good growthopportunities, even though high oiland steel prices are anticipated. The Schindler subsidiaries and theiragents are well equipped with struc-tures, products, and services whichare aligned to the market and enablethem to satisfy customers’ diverserequirements.

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Bashundhara City,the biggest shop-ping mall in South-east Asia: 20 sto-ries high, its 2500shops, restaurants,fitness clubs,swimming pools,and movie the-aters, etc. offervisitors a uniqueshopping experi-ence. Schindlersupplied 61 Schind-ler 9300 escala-tors, 21 elevators,and 1 Schindler9500 moving walk;Dhaka, Bangladesh

Installed in the Interconti-nental Hotel are 14 eleva-tors, including 4 Schindler-EuroLift; Warsaw, Poland

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EMIA

Major orders

Czech Republic:7 SchindlerEuroLift elevators, 6Schindler 9300 escalators, and 2 Schindler 9500 moving walks forPrague Airport, Prague; 7 Schindler-EuroLift elevators and 12 Schindler9500 moving walks for Eden shop-ping mall, Prague; 6 SchindlerEuro-Lift elevators, 1 freight elevator, and8 Schindler 9500 moving walks forGalerie Butovice shopping mall,Prague; 10 SchindlerEuroLift eleva-tors with Miconic 10 for DiamondPoint office building, Prague; 2SchindlerEuroLift elevators, 1SchindlerSmart MRL 001 elevator,and 4 Schindler 9300 escalators forRozkvet shopping mall, Brno

Egypt: 112 elevators for Phase 5 of El Re-hab residential complex, Cairo;maintenance contract for 36 eleva-tors and 2 escalators at MedicalCenter Hospital, Cairo; moderniza-tion of 5 elevators at MoustafaKamel Hospital, Alexandria

Gulf Region/Saudi Arabia:24 Schindler 9300 escalators, 4Schindler 9500 moving walks, and 7elevators, including 3 Schindler 700,for the Marina Mall shopping center,Abu Dhabi; 47 elevators, including26 Schindler 500 and 21 Schindler

700, for Jumeirah Beach ResidenceSector 5/6 residential complex,Dubai; 5 Schindler 500 elevatorswith Miconic 10 and SchindlerID forLe Rêve residential building, Dubai;6 Schindler 700 elevators at Al Joncommercial building, Kuwait; 10 ele-vators for the Al Jawal office build-ing, Saudi Arabia

Hungary:26 elevators, including 6 Schindler-EuroLift, 14 SchindlerSmart MRL002, and 8 Schindler 9300 AE escala-tors, for Garay shopping mall, Budapest; 8 elevators, including 6SchindlerEuroLift, for New YorkPalace Hotel, Budapest; 4 elevatorsand 4 Schindler 9300 AE escalatorsfor Max City Store shopping mall,Törökbálint

India:5 Schindler 9300 escalators forChennai Metro, Chennai; 7 eleva-tors, including 2 SchindlerSmartMRL 002, 2 Schindler 100 P, and 3Schindler 300 P, for Shreepati Tow-ers residential buildings, Mumbai; 10Schindler 001 elevators for LloydsRealty residential building, Mumbai;10 Schindler 001 elevators for Oak-yard residential complex, Bangalore;modernization of 7 elevators at theHyatt Regency Hotel, Delhi

Lebanon:6 SchindlerEuroLift elevators forBhamdoun United Real Estate Ho-tel, Bhamdoun; maintenance con-tract for 11 elevators at Audi BankPlaza headquarters, Beirut; mainte-nance contract for 8 elevators atClinique du Levant hospital, Beirut

Morocco:11 SchindlerEuroLift elevators forBank Al-Maghrib, Rabat; 6 Schind-lerSmart MRL 002 DE elevators forParcelle 33 office building, Rabat;28 SchindlerSmart MRL 001 eleva-

tors for Anassi 2 residential building,Casablanca; 2 SchindlerSmart MRL002 elevators and 6 Schindler 9300escalators for Millinium Fashionshopping mall, Casablanca

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The Schindler 9700 escala-tor was specially developedfor use in public transportfacilities. Schindler supplied51 units for the metro inDelhi; India

25 elevators and 4 escala-tors are installed in the FourSeasons Hotel; Cairo, Egypt

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4 elevators, includ-ing 2 Schindler-EuroLift, serve theInstitut Stomato-logii AkademiiMedycznei;Poznan, Poland

For the CaribbeanPrincess cruiseliner Schindlersupplied a movingwalk more than 30 meters long, inaddition 2 pan-oramic, 17 passen-ger, and 13 serviceelevators, as wellas 4 platforms

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Poland:20 elevators, including 11 Schind-lerEuroLift, 20 Schindler 9300 AE es-calators, and 5 Schindler 9500 mov-ing walks for Centrum HandloweManufaktura, Lodz; 20 Schindler-Smart MRL 002 DE elevators forJarzebiny residential building, War-saw; 18 SchindlerSmart MRL 002 DEelevators for Olszyny residentialbuilding, Warsaw; 11 elevators, in-cluding 6 Schindler 700 and 5 SchindlerEuroLift, for the HotelHilton, Warsaw

Romania:8 Schindler 500 elevators for Charlesde Gaulle Plaza office building,Bucharest; 10 Schindler 9300 escala-tors for Cocor shopping mall,Bucharest; 3 SchindlerEuroLift ele-vators, modernization of 9 elevators,and 26 Schindler 9300 escalators forUnirea shopping mall, Bucharest

Russia:6 SchindlerEuroLift elevators and 6Schindler 9300 escalators for Avtovoshopping mall, hotel, and officebuilding, St. Petersburg; 8 Schindler-EuroLift elevators for Vavilova 24 of-fice building, Moscow; 11 Schindler-EuroLift elevators for Aviamotornaya10 office building, Moscow; 18Schindler 9300 escalators forRussky Dom shopping mall, Chelya-binsk (Yekaterinburg); 28 elevators,including 16 Schindler 700 and 9SchindlerEuroLift, for the Vertikalresidential building project, Moscow

Slovakia:7 elevators, comprising 3 Schindler-Smart MRL 002 DE, 1 SchindlerSmartMRL 002, 1 SchindlerSmart MRL 001,and 2 SchindlerEuroLift, and 4Schindler 9300 AE escalators forPalace Shopping Park, Bratislava; 4elevators, comprising 3 Schindler-Smart MRL 001 and 1 SchindlerSmartMRL 002, and 2 Schindler 9300 esca-lators for Saratov shopping mall,Bratislava; 10 elevators, comprising 4 SchindlerSmart MRL 002 and 6 SchindlerSmart MRL 001, forTomasikova residential building,Bratislava

South Africa:6 Schindler 300 P MRL elevators forVilla Italia residential apartments,Cape Town; 6 Schindler 100 P MRLelevators for Pansy Cove residentialapartments, Cape Town; moderniza-tion of 12 elevators with Miconic 10for Libridge Insurance office build-ing, Johannesburg; modernization of8 elevators with Miconic 10 at ABSAVolkskas office building, Pretoria

Turkey:10 elevators, including 2 Schindler-EuroLift, and 4 Schindler 9300 esca-lators, for Sheraton Hotel Exhibitionand Conference Center, Ankara; 4Schindler 9500 moving walks and 1SchindlerSmart MRL 002 DE elevatorfor Izmir International Airport, Izmir;5 SchindlerEuroLift elevators and 4 Schindler 9500 moving walks forGimsa shopping mall, Ankara; 10 el-evators for Royal Wings Hotel, An-talya; 8 elevators for Delphin PalaceHotel, Antalya

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Article orders are transmit-ted wirelessly to the displayscreen on the picking truckand after the barcodes havebeen scanned the productsare placed ready for ship-ping. Product-based pickingincreases the efficiency oflogistics processes.

Sales promotion packagesare becoming increasinglyimportant for the retailchannel. ALSO packagescomplete bundles for themanufacturer.

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Products packedindividually forcustomers are col-lected togetherfor shipping


Successful year for ALSOThe ALSO Group, which is active inthe IT distribution and logistics ser-vices business, looks back on a suc-cessful year. The modest overalleconomic recovery stimulated the ITmarket in Switzerland and Germany.Demand in the individual quarterswas more evenly spread than in theprevious year. Price erosion wasless pronounced than in 2004, butstill continued throughout the year.In this environment, and thanks torigorously focusing on the core dis-tribution business, ALSO achieveddouble-digit growth and sharply im-proved profitability in both Switzer-land and Germany.

Net income substantially higherthan previous yearDespite divestment of the systemsbusiness, in the reporting year theALSO Group increased net sales by16% to CHF 1 857.1 million (2003:CHF 1598.3 million) and, thanks tocontinuous efforts to improve effi-ciency, increased operating profitrelative to the prior year by 94% toCHF 30.4 million (2003: CHF 15.7 mil-lion). Net income at CHF 21.2 millionwas also substantially higher thanthe previous year’s CHF 1.8 million,which was still negatively affectedby exceptional costs in the systemsbusiness. At 47%, the equity ratiocontinued above the target range of25%–35%. The number of employ-ees declined to 602 (previous year974). This reduction was mainly at-tributable to sale of the systemsbusiness in which 511 people wereemployed.

ALSO

In view of the changed scope ofconsolidation – addition of ACS Trad-ing AG on 27.10.2003, divestment ofthe systems business on 5.2.2004,and acquisition of the Hewlett-Packard activities of Datastore AGon 1.7.2004 – the Group’s figures areonly partly comparable with those ofthe previous year.

Substantial growth in the distribution businessNet sales of the Distribution Divisionrose by 22% in the reporting year toCHF 1852.2 million (2003: CHF 1516.1million). Unit sales were approxi-mately 22% higher than in 2003.Relative to the previous year, oper-ating profit increased substantiallyby 22% to CHF 31.1 million (2003:CHF 25.5 million). The subsidiaries inSwitzerland and Germany con-tributed equally to this success. TheSwiss subsidiary boosted productsales by 15% – partly due to thefirst-time consolidation of ACS Trad-ing AG – and expanded its marketleadership even further. Overall, theSwiss subsidiary earned a sharplyimproved operating profit in the re-porting year. The portfolio was ex-panded with strategically importantmanufacturers, and new market

segments were penetrated. The de-mand for customer-specific logisticssolutions for the IT, consumer elec-tronics, and telecommunications in-dustries remained constantly high.In the market for mobile telephones,particularly strong growth camefrom the new generation of hand-sets. The German subsidiary grewby 33% in the reporting year, whichwas significantly faster than themarket, and posted a sharply higheroperating profit than in the previousyear. This growth brought gains inmarket share for the classic manu-facturers, as well as expansion ofthe product portfolio. In addition,the customer base was enlarged byfocusing on mainly small andmedium-sized systems houses.

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State of the artpicking trucks inthe large-itemswarehouse. Ordersare transmittedwirelessly to thedisplay screens onthe truck.

The ALSO e-business plat-form gives customers day-and-night access to articledata and article informationas well as enabling them to submit orders and makeorder fulfillment statusinquiries.

As outsourcing partner toSwisscom Mobile, a majorcustomer of the logisticsservices business, ALSOundertakes customer-speci-fic packaging of individualorders.

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The performance capabilities ofboth companies are valued equallyby customers and vendors. As evi-dence, in the latest survey by lead-ing industry journals, customersvoted the German subsidiary “BestVolume Distributor” for the fifthtime in succession already. The Swisssubsidiary only narrowly missed this honor in 2004 and ranked a goodsecond place.

European Wholesale Group (EWG),the strategic alliance with leadingforeign distributors which was es-tablished in September 2002, addedtwo new, strong partners in the re-porting year and thereby moved upto become the third-largest distribu-

tor in Europe. The alliance providesmanufacturers with a best-in-classplatform from which they can effi-ciently reach a large number of re-tailers in Europe.

Systems business soldThe systems business was sold onFebruary 5, 2004, and therefore con-tributed only CHF 4.9 million toGroup net sales (2003: 82.2 million).This division had practically no ef-fect on the Group’s profit and lossstatement or net income in the re-porting year.

Cautiously optimistic outlookFor 2005, ALSO expects low single-digit market growth. The toughcompetitive situation in the IT indus-try will therefore probably continueto hold margins down in 2005. ALSOis well equipped for the challengesahead. The assortment has been se-lectively expanded and the cus-tomer base enlarged. By taking overthe Hewlett-Packard activities ofDatastore AG, ALSO has strength-

ened its know-how to enable it togrow in the high-end storage businesswhere the future is promising. TheIT accessories business is also be-ing systematically expanded. Parallelto these developments, the unbro-ken trend toward outsourcing of lo-gistics activities should trigger addi-tional impulses for growth. ALSOis therefore confident that it will beable to achieve sustainable growthin sales and income in the future.


Schindler Holding Ltd.Board of Directors

Executive Committeeof the Board

Elevators and EscalatorsManagement Committee

ALSOManagement Committee

Europe


Asia/Pacific

EMIA (Eastern Europe/Middle East/India/Africa)

OrganizationStatus January 1, 2005

•••

Board of Directors Schindler Holding Ltd.Term of office expires

Alfred N. Schindler•

Chairman; Hergiswil, Switzerland 2005

Luc Bonnard•

Vice Chairman; Hergiswil, Switzerland 2005

Alfred Spörri•

Zug, Switzerland 2005

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

Professor emeritus at the University of St. Gallen; St. Gallen, Switzerland 2005

Dr. Hubertus von Grünberg

Supervisory Chairman of the Board Continental AG; Hanover, Germany 2005

Scott D. Miller

President and CEO of Six Sigma Academy; Scottsdale, Arizona, USA 2005

Charles Powell (Lord Powell of Bayswater KCMG)

Former Advisor on Foreign Affairs and Defense to Prime Minister Margaret Thatcher; London, UK 2006

Dr. Jenö C. A. Staehelin

New York, USA 2005

Robert Studer

Former Chairman of the Board of Directors, Union Bank of Switzerland, Schönenberg, Switzerland 2005Member of the Executive Committee of the BoardOrdinary General Meeting in the year 2005, resp. 2006

••

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Management Committee Elevators and EscalatorsRoland W. Hess President

ad int. North, Central, and South America

David J. Bauhs Deputy to the President

Technology and Strategic Supply Management

Miguel A. Rodríguez Europe

Jürgen Tinggren Asia/Pacific

Dr. Christoph Lindenmeyer Eastern Europe/Middle East/India/Africa (EMIA)

Brent Glendening Chief Information Officer (CIO)

Erich Ammann• Chief Financial Officer (CFO)

Dr. Rudolf W. Fischer• Human Resources and Training

Prof. Dr. Karl Hofstetter• General CounselReporting directly to a member of the Executive Committee of the Board•

Management Committee ALSOThomas C. Weissmann President (CEO)

ad int. Distribution Germany

Jürgen Baumgartner Chief Financial Officer (CFO)

Marc Schnyder Distribution Switzerland

Peter Zurbrügg Chief Information Officer (CIO)

For information regarding Corporate Governance according to the directive of the SWX Swiss Exchange, please refer to the chapter on Corporate Governance on page 66 of the separate Financial Statements and Corporate Governance.


Financial statements GroupCondensed

Cash flow statements 2000 2001 2002 2003 2004In million CHF

Cash flow from operating activities 574 671 554 455 467

Cash flow from investing activities –379 – 130 – 27 8 –729

Cash flow from financing activities –146 –251 – 359 –158 –165

Translation exchange differences –10 –16 60 11 – 35

Change in net cash 39 274 228 316 – 462

Balance sheet December 31 2000 2001 2002 2003 2004In million CHF

Current assets 3 381 3 436 3 621 3 734 3 509

Non-current assets 2 279 2 102 1 524 1 486 1 779

Total assets 5 660 5 538 5 145 5 220 5 288

Current liabilities 2 359 2 313 2 518 2 433 2 418

Non-current liabilities 1 847 1 777 1 437 1 496 1 375

Total liabilities 4 206 4 090 3 955 3 929 3 793

Minority interests 137 119 123 126 119

Shareholders’ equity 1 317 1 329 1 067 1 165 1 376

Total liabilities and shareholders’ equity 5 660 5 538 5 145 5 220 5 288

Profit and loss statement 2000 2001 2002 2003 2004In million CHF

Operating revenue 8 530 8 327 7 888 7 725 8 259

Operating expenses 8 108 7 843 7 766 7 319 7 738

Operating profit 422 484 122 406 521

Financing activities –53 –58 –62 –68 – 43

Investing activities 5 17 2 6 5

Profit before taxes 374 443 62 344 483

Taxes 71 46 45 142 154

Profit before minority interests 303 397 17 202 329

Minority interests 4 18 9 18 21

Net profit 299 379 8 184 308

The figures for 2002, 2003, and 2004 are significantly affected by R03 project costs. Further information is given on page 7 of the Financial Statements.

84 Schindler 9300escalators, 122 ele-vators, and 12Schindler 9500moving walks forGolden PyramidsPlaza hotel, resi-dential, commer-cial, and shoppingcomplex; Cairo,Egypt


Financial statements Schindler Holding Ltd.Condensed

Balance sheet December 31 2000 2001 2002 2003 2004In million CHF

Current assets 465 701 836 1 235 654

Non-current assets 1 601 1 369 1 144 802 1 394

Total assets 2 066 2 070 1 980 2 037 2 048

Debentures 785 785 590 600 600

Other liabilities 208 210 441 361 383

Total liabilities 993 995 1 031 961 983

Share capital 64 38 7 7 7

Bearer participation capital 50 29 6 6 5

Retained earnings 855 893 816 936 920

Net profit for the year 104 115 120 127 133

Shareholders’ equity 1 073 1 075 949 1 076 1 065

Total liabilities and shareholders’ equity 2 066 2 070 1 980 2 037 2 048

Profit and loss statement 2000 2001 2002 2003 2004In million CHF

Income from subsidiaries 201 225 209 211 224

Other revenue 34 39 90 31 15

Total revenue 235 264 299 242 239

Depreciation and adjustments 85 108 139 80 67

Other expenses 46 41 40 35 39

Total expenses 131 149 179 115 106


Dividend payment 2000 2001 2002 2003 2004In million CHF

Registered shares 38 38 0 44 51•

Bearer participation certificates 29 29 0 33 36•

Total dividend payment 67 67 0 77 87•

Proposal by the Board of Directors•

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Management Schindler Holding Ltd.Erich Ammann

Peter E. Fraefel

Prof. Dr. Karl Hofstetter

Bernard Illi (until 31. 3. 2005)

Stephan Jud

Joachim Walker

Dr. Henry Zheng

Dividend Policy The dividend policy approved and communicated by the Board of Directors is profit-related and provides for a payout ratio in the range from 25% to 35% (see also page 58).


Information for shareholdersCharts

Group 2000 2001 2002 2003 2004In million CHF

Orders received 8 750 8 426 8 029 7 866 8 428


EBITDA 1 624 680 349 566 656

in % 7.3 8.2 4.4 7.3 7.9

EBITA 2 475 531 184 443 557

in % 5.6 6.4 2.3 5.7 6.7

EBIT 3 422 484 122 406 521

in % 4.9 5.8 1.5 5.3 6.3

Net income from financing and investing activities –48 – 41 – 60 – 62 – 38

Profit before taxes 374 443 62 344 483

Profit before minority interests 303 397 17 202 329

in % 3.6 4.8 0.2 2.6 4.0

Net profit 299 379 8 184 308

Cash flow 4 417 555 430 368 429

Capital expenditure 157 122 105 81 82

Order backlog 3 713 4 039 3 486 3 712 3 723

Personnel at year-end 43 334 41 524 39 918 39 617 39 443

Shareholders’ equity 1 317 1 329 1 067 1 165 1 376

Equity ratio 23.3 24.0 20.7 22.3 26.0

Equity ratio incl. minority interests in % 25.7 26.1 23.1 24.7 28.3EBITDA: Operating profit plus depreciation/amortizationEBITA: Operating profit plus depreciationEBIT: Operating profitCash flow: Net profit before minorities interests plus depreciation/amortization and change in provisions

1

2

3

4


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Elevators and Escalators 2000 2001 2002 2003 2004In million CHF

Orders received 6 852 6 658 6 344 6 246 6 546


EBITDA1 612 654 313 542 638

in % 9.2 9.9 5.0 8.8 10.0

EBITA2 474 517 156 431 543

in % 7.1 7.8 2.5 7.0 8.5

EBIT 3 422 471 95 395 508

in % 6.3 7.1 1.5 6.4 7.9

Personnel at year-end 41 763 40 169 38 806 38 643 38 841EBITDA: Operating profit plus depreciation/amortizationEBITA: Operating profit plus depreciationEBIT: Operating profit

1

2

3

1

2

3

ALSO 2000 2001 2002 2003 2004In million CHF

Orders received 1 898 1 768 1 685 1 620 1 882


EBITDA1 18 33 40 29 35

in % 1.0 1.9 2.4 1.8 1.9

EBITA2 7 21 32 17 31

in % 0.4 1.2 1.9 1.1 1.7

EBIT 3 6 20 31 16 30

in % 0.3 1.2 1.9 1.0 1.6

Personnel at year-end 1 571 1 355 1 112 974 602EBITDA: Operating profit plus depreciation/amortizationEBITA: Operating profit plus depreciationEBIT: Operating profit


The Group’s total value added is the increase in value achieved by the whole Group within acertain period of time.

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

The distribution of the Group’s net value addedshows how employees, the governments, thecompany itself, the shareholders, and otherproviders of finance participate in this economi-cally relevant amount.

Schindler Holding Ltd. 2000 2001 2002 2003 2004In million CHF

Share capital 64 38 7 7 7

Bearer participation capital 50 29 6 6 5

Shareholders’ equity 1 073 1 075 949 1 076 1 065

Debentures 785 785 590 600 600


Dividend payment 67 67 0 77 87•

Proposal by the Board of Directors•

For complete information in compliancewith IFRS please refer to the Financial Statements

In %

Wages, salaries and social-service expenditures 85Creation of reserves 7Direct taxes 4Dividends 3Net interest charges 1

Allocation of the Group’snet value added 2004

Sch

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8 000

7 000

6 000

5 000

4 000

3 000

2 000

1000

20042003200220012000

Orders received by product group

In million CHF

6 3441 685

8 029

6 6581 768

8 426

6 8521 898

8 750Total

6 2461 620

7 866

20042003200220012000

Operating revenue by product group

In million CHF

8 000

7 000

6 000

5 000

4 000

3 000

2 000

1000

Elevators & Escalators

ALSO

Elevators & Escalators

ALSO 6 2311657

7 888

6 6011726

8 327

6 6691861

8 530Total

6 1331592

7 725

20042003200220012000

555417

Cash flow

In million CHF

430 368

20042003200220012000

9,0

7,5

6,0

4,5

3,0

1,5

EBITDA, EBIT,net profit

As % of operating revenue

EBITDA

EBIT

Net profit

• Before R03 project costs

600

500

400

300

200

100

6 5461 882

8 428

6 4041855

8 259

429

•

•

•


Invoiced sales 2004 by marketElevators & Escalators

In %

Switzerland 9EU Countries 44Rest of Europe 2North, Central, and South America 29Asia, Australia, Africa 16

Invoiced sales 2004 by market ALSO

In %

Switzerland 57Germany 43

20042003200220012000

105122157

Capital expenditure

In million CHF

200

150

100

50

81

2003•2002•20012000

Return on equity ROE

In %

25

20

15

10

2004•

•After R03 project costs

82

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Personnel 2004by sector

In %

Production 16Installation and maintenance 64Engineering, Sales, Administration, and ALSO 20

20042003200220012000

Personnel at the end of year

Number

40 000

30 000

20 000

10 000

41 52443 334 39 61739 918

9,6% 37,8%

3,3% 18,4% 30,9%

3 720 14 680 1 298

7 127 12 016

Personnel 2004Elevators & Escalators

By region, total 38 841

65,1% 34,9%

392 210

Switzerland EU Countries

Rest of Europe Asia, Australia, Africa


Personnel 2004ALSO

By country, total 602

SwitzerlandGermany

39 443


Information per registered share/bearer participation certificate 2000 2001 2002 2003 2004In CHF

Net profit 222 282 0.62 14.30 24.64

Cash flow 310 413 33.43 28.61 34.32

Shareholders’ equity at year-end 992 1 047 83.81 94.41 111.33

Gross dividend adjusted 5 5 0 6 7••

Pay-out ratio % 22.5 17.7 – 41.9 28.4

Market capitalization (in million) 3 402 3 208 3 397 4 187 5 813After 10:1 split on June 11, 2002No dividend due to R03 project (compensated by reduction in nominal value in 2001)Proposal by the Board of Directors

Registered shares 2000 2001 2002 2003 2004In CHF

Number of shares outstanding 752 866 752 866 7 356 820 7 356 820 7 356 820

Thereof in treasury stock 16 790 32 561 120 401 81 805 79 941

Nominal value 85 50 1 1 1

Price high 2 995 2 801 320.00 345.00 475.00

Price low 2 320 2 000 230.80 176.00 338.00

Price year-end 2 549 2 380 260.00 343.00 475.00

P/E ratio December 31 11.5 2 8.4 2 418.1 2 24.0 2 19.3 2

After 10:1 split on June 11, 2002

Bearer participation certificates 2000 2001 2002 2003 2004In CHF

Number of certificates outstanding 592 424 592 424 5 506 990 5 506 990 5 141 640

Thereof in treasury stock 1 410 42 880 11 550 441 850 59 108

Nominal value 85 50 1 1 1

Price high 2 925 2 700 321.80 305.00 455.25

Price low 2 320 2 050 225.00 167.25 298.00

Price year-end 2 503 2 390 269.50 302.00 451.00

P/E ratio December 31 11.3 2 8.5 2 433.3 2 21.1 2 18.3 2

After 10:1 split on June 11, 2002

•••


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Significant shareholdersAt the end of 2004, registeredshares of Schindler Holding Ltd.were held by 2 792 shareholders.

On the same date, the Schindler and Bonnard families, together with parties related to these families, held within the scope of a stockholder retainer contract5 120 196 registered shares ofSchindler Holding Ltd., correspond-ing to 69.6% of the voting rights of the share capital entered in theRegister of Companies.

Ordinary General MeetingMonday, March 21, 2005, 4.30 pmat the Kultur- und KongresszentrumLuzern, Europaplatz1, CH-6005 Lucerne, Switzerland

Investor RelationsBarbara Zäch Corporate CommunicationsSchindler Management AGCH-6030 Ebikon

T+41 41 445 30 61F+41 41 445 31 44

[email protected]

Stephan Jud Head of TreasurySchindler Management AGCH-6030 Ebikon

T+41 41 445 31 19F+41 41 445 45 30

[email protected]

www.schindler.com

Both the registered shares and thebearer participation certificates aretraded on the SWX Swiss Exchange.The bearer participation certificateshave the same rights as the regis-tered shares with the exception of attendance at the Annual GeneralMeeting and voting rights.

Ticker/security numberRegistered share Bearer participation certificate

Bloomberg SCHN SCHP

Reuters SCHZN.S SCHZP.S

Valor 1 391 412 1 391 410

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Modernization of16 elevators withthe Miconic 10 hallcall destinationcontrol system andLobby Vision at the South AfricanBroadcasting Cor-poration officebuilding; Johannes-burg, South Africa


Sch

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Important addresses

For further information aboutour company, our productsand our services, please con-tact one of the following ad-dresses:

Schindler Holding Ltd.Seestrasse 55CH-6052 HergiswilSwitzerland

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

Schindler Management Ltd.Zugerstrasse 13CH-6030 EbikonSwitzerland

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

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

[email protected]

www.schindler.com

Europe, Middle East, India and AfricaSchindler Management Ltd.Zugerstrasse 13CH-6030 EbikonSwitzerland

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

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

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

www.us.schindler.com

Latin AmericaLatin America OperationsPaseo de la Reforma 350–8° PisoCol. Juárez06600 México, D.F.México

T+5255 5080 1412/11F+5255 5207 2156

www.la.schindler.com

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

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

ALSOALSO Holding AGSeestrasse 55CH-6052 HergiswilSwitzerland

T+41 41 630 37 37F+41 41 266 18 70

www.also.com

Overall responsibility and conceptSchindler Management AGCorporate Communications6030 Ebikon, Switzerland

Graphic designGottschalk+Ash Int’l

PhotoPage 7, no. 1; pages 43–45:Markus Senn, BielBack cover: Peter Schälchli, Zurich, Switzerland

TextSchindler Management AGCorporate Communications6030 Ebikon, Switzerland

Typesetting andprintingNZZ Fretz AG8952 Schlieren, Switzerland

The Annual Report of theSchindler Group for 2004 con-sists of the Activity Reportand the Financial Statementsand Corporate Governance.

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


Overpriced acquisitions rarely represent an effectivestrategy to compete against profitable organic growth, based on cost leadership and innovation.”

Alfred N. Schindler

Starry Night, 1987”by John Hoyland, Great Britain Gallery: Arteform, Bougy-Villars

“ “

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