The ratings on Schneider Electric S.A. reflect the group's solid business profile, which is supported by sound competitive positions, extensive geographic diversity, and efficient cost management. They also take into account Schneider's ability to generate robust free operating cash flow (FOCF). Tempering these strengths are the cyclical nature of most of Schneider's end-markets and the group's acquisitive strategy and generous dividend policy. In the past few years, Schneider has invested to enter and enlarge its presence in markets and businesses that could guarantee healthy growth rates for the future. While the traditional Electrical Distribution division remains the largest and most profitable, with 57% of 2007 sales and a reported 18.1% EBITA margin, other areas are growing. Schneider has invested in
