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Notes from Dialogue with Silvio Napoli, Chairman, Schindler Holding, 7th October 2020



Attending:

  • Silvio Napoli, Chairman, member of the Supervisory and Strategy Committee, Schindler Holding

  • Nicole Wesch, Chief Corporate Communications Officer, Schindler

  • Karin Mugnaini, President & COO, Lorange Network

  • Peter Lorange, Chairman & CEO, Lorange Network

The following issues were discussed briefly during our conversation at Schindler Holding’s corporate headquarters in Hergiswil (LU), Switzerland. This recap contains short summaries of some of the questions addressed as well as additional company information.

Company focus:

  • Build value for all stakeholders

  • Growing faster than the market

  • Innovation (elevators without a machine room, media/display/info solutions, performance and remote monitoring, robotic installation system – Schindler R.I.S.E.) - also related to digitalization in below point

  • Digitalization of business (mobility solutions: planning, operation and modernization), including artificial intelligence (i.e. Internet of Elevators and Escalators - IoEE; cloud-based digital toolboxes)

  • Sustainability as a mind-set (UNSDGs; Schindler’s 6 strategic priorities - enhance safety, create value in communities, attract diverse talents, lower vehicle fleet emissions, increase sustainability in the supply chain, pioneer smart urban mobility)

The market - four big global players:

  • Schindler (Swiss): listed on the SIX, and family controlled

  • Kone (Finnish): listed on the Helsinki Stock Exchange, family controlled

  • Otis (US): recently spun off from United Technologies. Went public on NYSE in April 2020

  • Thyssenkrupp Elevators (German): recently spun off from Thyssen-Krupp. Now PE fund owned

  • Japanese Keiretsu

  • Many smaller, more local players and new incumbents challenging status quo with new business models

Digitalization and journey towards data-driven business model

Elevators are increasingly becoming connected, digital platforms, providing a competitive edge:

  • Schindler’s smart solutions are a gateway to more customer loyalty, especially when it comes to the all-important service after-sale (maintenance, services and repair)

  • More effective service, both regarding costs and regarding “less disturbance”, due to data from operations

Evolution of Schindler’s culture

Strong Swiss heritage and roots in Central Switzerland, grown into a key global player in the elevator and escalator sector. In transition to become a more data-driven company that is people and customer centric.


Key macro trends for Schindler

  • Urbanization (cities account for 60% of all jobs and produce 80% of global GDP; by 2030, the UN estimates that close to 9% of the world’s population will live in 43 megacities)

  • Verticality (countries are moving in a vertical direction)

  • Ability to support evolving “critical” realities – public transportation mobility, multifunctional buildings, vertical farming, etc.

  • Elevator design evolution (online planning tools (guided, fast track, design and user portal)

  • Central is also “horizontal” - More sturdy escalators to handle heavy traffic (if not, people choose buses; HK example)

The family businesses

Such family influenced companies might more easily be longer-term focused. Operating with intra- and entrepreneurial efforts highly focused on innovation seems important and can be used as inspiration for other firms, whether corporates or SMEs. Investments into new areas adjacent to the core business, such as BuildingMinds, show ever existing entrepreneurial and visionary spirit.


BuildingMinds, Schindler’s Berlin-based wholly owned startup (https://buildingminds.com)

  • Developing interactive SaaS platform to integrate key functions in buildings (to optimize management of real-estate portfolios)

  • Deliberately independent from Schindler, both location-wise and operation-wise, key with physical distance

  • Benefits from being part of Schindler group though

  • In collaboration with Microsoft (Common Data Model)

  • Single and secure digital platform (Digital Twin for buildings)

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