Legrand : 2020 first-half release

Group mobilized for all stakeholders

Performance shows good resistance in a very deteriorated environment
Organic change in sales: -15.2%
Adjusted operating margin: 17.5%
Many measures to adapt to consequences of the crisis
Solid financial position

Continued deployment of the Legrand model in a still uncertain environment

Benoît Coquart, Legrand's Chief Executive Officer, commented:
'Group mobilized for all stakeholders
Against a backdrop of an unprecedented health and economic crisis, Legrand mobilized for all of its stakeholders. Protecting employees and partners was a key priority. We also actively supported our customers in pursuing their business - one example being the decision to keep almost all of our logistics and production centers open.
In a spirit of responsibility given the efforts the crisis requires, Legrand has made a balanced appeal to all stakeholders - management, employees, partners, shareholders, civil society and government authorities.

Performance shows good resistance in a very deteriorated environment
In the first half of 2020, Legrand recorded a -12.2% fall in sales, primarily due to an organic decline (-15.2%) that was particularly marked in the second quarter across our main markets. This decline was partly offset by an increase in the scope of consolidation (+3.6%), while the exchange-rate effect was limited (-0.1%).
Against this backdrop, adjusted operating margin stood at 17.5%, i.e., a limited 3-point decrease from the first half of 2019. This good resistance reflects in particular the immediate roll-out of initiatives, some one-off, to protect Group profitability.
Legrand has also a solid financial position, as seen in particular in the high level of available cash.

Continued deployment of the Legrand model in a still uncertain environment
The outlook for the global health situation and the world economy remains particularly unpredictable. In this context, and subject to a favorable trend in the global health situation, net sales in the second half of the year should see a sequential improvement compared with the second quarter.
Given this environment, Legrand is continuing to actively deploy its model, building on the fundamentals that underpin the Group's value-creating strategy. This means extending and promoting products that are perfectly positioned to meet the major changes the building industry is facing; innovating; adopting initiatives to optimize our performance; and pursuing disciplined growth through acquisitions while confirming our responsible commitments, in particular an accelerated fight against global warming.'

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