LEGRAND SA

LR
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70.84EUR -1.14%

Legrand : Results for first half, 31 July 2020

07/31/2020 | 04:01am

2020 FIRST-HALF RESULTS

JULY 31, 2020

1

HIGHLIGHTS

P.3

2

GROUP MOBILIZED FOR ALL STAKEHOLDERS

P.5

3

PERFORMANCE SHOWS GOOD RESISTANCE

IN A VERY DETERIORATED ENVIRONMENT

P.8

4

CONTINUED DEPLOYMENT OF THE LEGRAND MODEL

IN A STILL UNCERTAIN ENVIRONMENT

P.18

5

APPENDICES

P.27

2

HIGHLIGHTS

3

1

HIGHLIGHTS

  • 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

4

GROUP MOBILIZED FOR ALL STAKEHOLDERS

5

2

GROUP MOBILIZED FOR ALL STAKEHOLDERS

PROTECTING STAKEHOLDERS

  • Initiatives to protect employees and partners
  • Very early deployment of the most stringent health protocols
  • Adapting work methods:
    • teleworking;
    • digitalization of customer relations;
    • and more.

ACTIVELY SUPPORTING CUSTOMERS

  • Working diligently so that clients can pursue their businesses, essential to the economy
  • Nearly all logistics and production centers kept open (with optimum health measures):
    • uninterrupted supply on most territories where it operates; and
    • continued customer support and service operations.

6

2

GROUP MOBILIZED FOR ALL STAKEHOLDERS

ONGOING SOLIDARITY TOWARDS COMMUNITIES

  • Close to local communities to fight the impact of the health crisis
  • Many initiatives(1) deployed:
    • equipment donations;
    • help in ventilator production; and
    • support to the most exposed communities.

HELPING THE MOST VULNERABLE

MEMBERS OF SOCIETY

  • Creation of a solidarity fund to help nursing homes for the elderly (EHPADs in France)
  • Beneficiaries included
    228 institutions and 15,000 of their staff members

BALANCED APPEAL TO ALL

STAKEHOLDERS

  • Spirit of responsibility given the efforts the crisis requires
  • Balanced appeal to all stakeholders(2):
    • management;
    • employees;
    • partners;
    • shareholders;
    • civil society; and
    • government authorities.
  1. For more information, readers are invited to refer to the press release of April 9, 2020.
  2. For more information, readers are invited to refer to the press release of May 7, 2020.

7

PERFORMANCE SHOWS GOOD RESISTANCE IN A VERY DETERIORATED ENVIRONMENT

8

3

IN A VERY DETERIORATED ENVIRONMENT

PERFORMANCE SHOWS GOOD RESISTANCE

€ millions

3,2272,833

Organic:

-15.2%

Total:

External:

+3.6%(1)

-12.2%

FX:

-0.1%(2)

H1 2019

H1 2020

  1. Based on acquisitions completed in 2019 and 2020, and their likely date of consolidation, the impact of the change in scope of consolidation should be around +3% for full-year 2020.
  2. Applying average exchange rates observed in June 2020 to the last six months of the year, the theoretical impact on sales of exchange-rate fluctuations should

come to around -1.5% for 2020 as a whole.

9

3

IN A VERY DETERIORATED ENVIRONMENT

PERFORMANCE SHOWS GOOD RESISTANCE

o

-16.7% organic change.

o

In mature European countries, sales declined by -19.7% in H1 2020, including -31.8% in

Q2 alone.

  • Business was down in almost all countries due to the impact of the health crisis, compounded by one-off factors relating to destocking by distributors.
  • The decline was more marked in France, Italy and Spain, i.e., the hardest hit markets by the pandemic. Sales in these countries fell -23% in the first half, compared with a -9% decline in other mature European countries.

o In Europe's new economies, sales were up +2.2% at constant scope of consolidation and exchange rates compared with the H1 2019, including -5.2% in Q2 alone.

  • Sales recorded a slight decline in Eastern Europe compared to H1 2019 and rose in Turkey, buoyed by ongoing projects initiated before the start of the pandemic.

o In this deteriorated context, the offerings of the Eliot program, but also the ones linked to assisted living, datacenters and DIY stores showed good resistance in a number of countries.

10

3

IN A VERY DETERIORATED ENVIRONMENT

PERFORMANCE SHOWS GOOD RESISTANCE

o -11.2% organic change.

o United States, sales were down -10.1% compared with H1 2019, including a -15.6% drop in Q2.

  • Over the first six months of the year, an increase in sales of products for datacenters, including busways and PDUs, was not enough to offset declining sales observed in other ranges.

o Sales fell more markedly in Canada and Mexico.

11

3

IN A VERY DETERIORATED ENVIRONMENT

PERFORMANCE SHOWS GOOD RESISTANCE

o -19.9% organic change.

o In Asia-Pacific, sales retreated -16.9%,

  • with decreases in most countries, including China and India, and
  • a slight rise in Australia.
  • In Q2 alone, sales were down -13.7%, with contrasts from one market to another that included business halved in India and a marked rise in China.

o In South America, net sales fell by -29.3% at constant scope of consolidation and exchange rates, with a -47.8% drop in Q2,

  • as a worsening in the epidemic took a heavy toll in the main countries.

o In Africa and the Middle East, sales were down -19.0% in H1, with -25.2% in Q2 alone.

  • Compared with H1 2019, sales were down in Africa, where the 2019 basis for comparison was particularly demanding in many countries, and
  • in the Middle East due to the strained health and geopolitical environment.

12

3

IN A VERY DETERIORATED ENVIRONMENT

PERFORMANCE SHOWS GOOD RESISTANCE

€ millions

663

497

-25.0%

H1 2019

H1 2020

13

3

IN A VERY DETERIORATED ENVIRONMENT

PERFORMANCE SHOWS GOOD RESISTANCE

H1 2019 Adjusted operating margin

20.5%

Coming against a steep and sudden decline in business volumes;

Limited decrease from H1 2019 reflecting the Group's quick action in implementing crisis

-3.4 pts

adaptation measures, with:

  • efficient management of sales and purchase prices;
  • significant adjustment in production costs and in administrative and selling expenses, with a double-digit decline at constant scope of consolidation and exchange rates compared with H1 2019, due partly to one-off initiatives; and
  • increase in other income and expenses, in particular restructuring costs, which totaled €40 million(1) over the first half, reflecting roll-out of structural adaptation measures.

H1 2020 Adjusted operating margin before acquisitions(2)

  • Impact of acquisitions

H1 2020 Adjusted operating margin

  1. Excluding gains on building disposals recorded over the period.
  2. At 2019 scope of consolidation.

17.1%

+0.4 pts

17.5%

14

3

IN A VERY DETERIORATED ENVIRONMENT

PERFORMANCE SHOWS GOOD RESISTANCE

A decrease in operating profit (-€170m);

An unfavorable trend (-€10m) in net financial expenses and the foreign-exchange result; and

A decrease in corporate income tax (+€50m)(1).

Net profit attributable to the

Group:

€286m

down

-31.2%

1. In absolute value, due to the fall in profit before tax, while the corporate income tax rate was almost unchanged at 28.5%.

15

3

IN A VERY DETERIORATED ENVIRONMENT

PERFORMANCE SHOWS GOOD RESISTANCE

Cash flow from operations came to 15.7% of sales in H1 2020, down by -2.5 points from H1 2019.

Working capital requirement stood at 10.7% of sales(2) at June 30, 2020, -0.5 points lower than at June 30, 2019.

Normalized free cash flow:

€470m

at

16.6%

of sales

1.

For more details on the reconciliation of free cash flow with normalized free cash flow, readers are invited to consult page 47.

2.

Based on sales for the last 12 months.

16

3

IN A VERY DETERIORATED ENVIRONMENT

PERFORMANCE SHOWS GOOD RESISTANCE

o Balance sheet remained very solid at June 30, 2020, with:

  • Cash and cash equivalents of €2.7bn;
  • Net debt of €3.1bn:
    • EBITDA(1) ratio of 2.2, i.e., very close to the figure at June 30, 2019; and
    • maturity extended with a successful new bond issue(2).

1.

Based on EBITDA for the last 12 months.

2.

For more information, readers are invited to refer to the press release of May 12, 2020.

17

CONTINUED

DEPLOYMENT OF

THE LEGRAND MODEL IN A STILL

UNCERTAIN ENVIRONMENT

18

4

DEPLOYMENT OF THE LEGRAND MODEL

IN A STILL UNCERTAIN ENVIRONMENT

CONTINUED

o Particularly unpredictable outlook for the global health situation and the world economy.

o 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.

19

4

DEPLOYMENT OF THE LEGRAND MODEL

IN A STILL UNCERTAIN ENVIRONMENT

CONTINUED

Legrand is continuing to actively deploy its model by:

  • Extending and promoting its product catalog, including items driven by structural trends linked to society, the environment and technologies;
  • Maintaining its drive to develop new products;
  • Pursuing disciplined growth through acquisitions;
  • Deploying many structural initiatives designed to adjust its cost base and strengthen the efficiency and agility of its organization; and
  • Confirming its responsible commitments.

20

4

DEPLOYMENT OF THE LEGRAND MODEL

IN A STILL UNCERTAIN ENVIRONMENT

CONTINUED

DIGITAL LIGHTING MANAGEMENT

  • Real-timecollection and analysis of data
  • Remote troubleshooting
  • Occupancy and daylight sensors

DRIVIA WITH NETATMO

  • First smart electrical panel for homes (with Home + Control)
  • Power shedding
  • Better control over energy consumption (scenarios & schedule planning)

KEOR MOD UPS

  • High energy efficiency curve from low loads
  • Meets the demands of critical buildings
  • Industry-leadingperformance, quality and design

~34%

~10%

>30%

Average energy saved per year(1)

Average energy saved per year(1)

Average energy saved per year(1)

Comprehensive, simple and available offers for non-residential buildings (UPS systems, transformers,

Digital Lighting Management, and more) and residential spaces (smart electrical panels, intelligent thermostats,

lighting control systems, and more)

1. Energy savings determined per year compared to standard solutions and usage.

21

4

MODEL ENVIRONMENT

UNIVERSAL ELECTRIC BUSWAYS

POWER DISTRIBUTION UNITS

CABINETS

DEPLOYMENT OF THE LEGRAND

IN A STILL UNCERTAIN

CONTINUED

  • Easy and efficient organization of power distribution for datacenter racks
  • Flexible and reliable solutions for mission-critical environments
  • Discrete power distribution allowing efficiency
  • Remote monitoring and metering of power quality and consumption
  • Adapted to colocation, edge computing and hyperscale computing
  • Bring together IT equipment and corresponding cables neatly in one place
  • Modular applications, configurable in heights, widths and depths

An extensive offering to meet every requirement for safety, modularity and remote control

for all types of datacenters

22

4

DEPLOYMENT OF THE LEGRAND MODEL

IN A STILL UNCERTAIN ENVIRONMENT

CONTINUED

ENABLING OFFICE TRANSFORMATION

  • Need for modularity
  • Digital-flowdevelopment & comfort (internet access, video-conferencing, connected objects, etc.)
  • Safety

Universal floor boxes

Connected emergency lighting

Video content capture

ACCOMPANYING TELEWORKING

  • Complete and efficient home network
  • Power and data, connectivity and protection (surge, cuts, and more) all across the house
  • AV infrastructure for remote meetings

Full motion mounts

On-Q Enhanced WiFi Ready

Enclosures

Multi Outlet Sockets

23

4

DEPLOYMENT OF THE LEGRAND MODEL

IN A STILL UNCERTAIN ENVIRONMENT

CONTINUED

SECURING THE MOST FRAGILE

  • Autonomy
  • Contact
  • Safety

Telecare devices

Home alarm units

COMFORT THROUGH

IMPROVED HEALTH

CONNECTIVITY

INFRASTRUCTURES

Remote control of user interfaces,

Helping medical staff in their duties

appliances and home access

Ensuring uninterrupted power

Controlling air quality and

supply in critical environments

temperature environment

Providing antibacterial equipment,

Security with smart cameras

notably through lighting solutions

Hospital bed head units

Connected user interfaces

Smart thermostats

Sudden fall detectors

Lighting pathways

Smart Radiator

Smart cameras

Healthcare lighting

Aid call system

Valve

24

4

DEPLOYMENT OF THE LEGRAND MODEL

IN A STILL UNCERTAIN ENVIRONMENT

CONTINUED

MAINTAINING OUR DRIVE FOR

INNOVATION IN H1 2020

  • Many new products launched
  • Connected user interfaces now in 36 countries
  • 5.3% of sales dedicated to R&D

DISCIPLINED GROWTH

THROUGH ACQUISITIONS

  • Actively working to dock newly acquired companies, such as Focal Point(1)
  • Close contacts with small and medium-sized companies that are leaders in their markets and that could potentially join the Group when conditions are right

STRUCTURAL INITIATIVES

TO ADAPT

  • Structural changes to optimize our organization
  • Rationalization of our industrial and logistic footprint across the globe
  • Strengthened efficiency and agility through digitalization (close contact, webinars, e-learning for customers and more)

1. For more information on Focal Point, readers are invited to consult appendix page 29 of this presentation.

25

4

DEPLOYMENT OF THE LEGRAND MODEL IN A STILL UNCERTAIN ENVIRONMENT

ACCELERATING THE FIGHT

PURSUIT OF INCLUSIVENESS

AGAINST CLIMATE CHANGE(1)

& GOVERNANCE INITIATIVES(2)

Inclusion of LGBT+ people

at work in France

CONTINUED

  • Commitments for 2022, 2030 and 2050 for carbon neutrality
  • Aligning with the Paris Agreement target of 1.5°C increase above pre-industrial levels
  • Continued initiatives to promote diversity at work
  • Appointment of an independent chairwoman of Legrand's Board of Directors
  • Shortening of directors' terms of office to 3 years

Legrand qualified to join the new Euronext ESG 80 in 2020

1. For more information, readers are invited to refer to the press release of July 2, 2020.

2. For more information, readers are invited to refer to the press release of February 28, 2020 and news items published on www.legrandgroup.comon March 9 and26 February 13, 2020.

APPENDICES

27

5

APPENDICES

Adjusted operating profit is defined as operating profit adjusted for amortization and depreciation of revaluation of assets at the time of acquisitions and for other P&L

impacts relating to acquisitions and, where applicable, for impairment of goodwill.

Busways are electric power distribution systems based on metal busbars.

Cash flow from operations is defined as net cash from operating activities excluding changes in working capital requirement.

CSR stands for Corporate Social Responsibility.

EBITDA is defined as operating profit plus depreciation and impairment of tangible and of right of use assets, amortization and impairment of intangible assets (including

capitalized development costs), reversal of inventory step-up and impairment of goodwill.

Free cash flow is defined as the sum of net cash from operating activities and net proceeds from sales of fixed and financial assets, less capital expenditure and capitalized

development costs.

KVM stands for Keyboard, Video and Mouse.

Net financial debt is defined as the sum of short-term borrowings and long-term borrowings, less cash and cash equivalents and marketable securities.

Normalized free cash flow is defined as the sum of net cash from operating activities-based on a normalized working capital requirement representing 10% of the last 12

months' sales and whose change at constant scope of consolidation and exchange rates is adjusted for the period considered-and net proceeds of sales from fixed and

financial assets, less capital expenditure and capitalized development costs.

Organic growth is defined as the change in sales at constant structure (scope of consolidation) and exchange rates.

Payout is defined as the ratio between the proposed dividend per share for a given year, divided by the net profit attributable to the Group per share of the same year,

calculated on the basis of the average number of ordinary shares at December 31 of that year, excluding shares held in treasury.

PDU stands for Power Distribution Unit.

UPS stands for Uninterruptible Power Supply.

Working capital requirement is defined as the sum of trade receivables, inventories, other current assets, income tax receivables and short-term deferred tax assets, less

28

the sum of trade payables, other current liabilities, income tax payables, short-term provisions and short-term deferred tax liabilities.

5

APPENDICES

  • Front-runnerin the United States for specification-grade architectural lighting for non-residential buildings - including hospitals, schools and universities, offices and more
  • Offering of customized solutions, in particular for renovation
  • Annual sales of more than $200 million
  • Over 750 employees
  • Legrand thus strengthens its leading US positions in lighting controls and solutions, with a range of specification-grade architectural and mission-critical applications in commercial buildings, energy- efficient lighting management systems, and innovative connected solutions.

29

5

APPENDICES

Breakdown of change in H1 2020 net sales by destination (€m)

North

Rest of

Europe

& Central

the World

America

-0.1%

+3.6%(1)

-15.2%

FX

Scope of

H1 2019

Organic growth

consolidation

H1 2020

1. Due to the consolidation of Universal Electric Corporation, Connectrac and Jobo Smartech.

-12.2%

Total

30

5

APPENDICES

In € millions

H1 2019

H1 2020

Total

Scope of

Like-for-Like

Currency Effect

Change

Consolidation

Growth

Europe

1,353.7

1,125.3

-16.9%

0.4%

-16.7%

-0.7%

North and Central America

1,192.8

1,173.1

-1.7%

8.4%

-11.2%

2.2%

Rest of the World

680.3

534.2

-21.5%

1.5%

-19.9%

-3.4%

Total

3,226.8

2,832.6

-12.2%

3.6%

-15.2%

-0.1%

31

1. Market where sales are recorded.

5

APPENDICES

In € millions

Q1 2019

Q1 2020

Total

Scope of

Like-for-Like

Currency Effect

Change

Consolidation

Growth

Europe

652.3

642.3

-1.5%

3.9%

-5.1%

-0.2%

North and Central America

567.1

602.7

6.3%

7.9%

-4.2%

2.9%

Rest of the World

330.6

270.7

-18.1%

1.1%

-17.2%

-2.1%

Total

1,550.0

1,515.7

-2.2%

4.8%

-7.3%

0.7%

32

1. Market where sales are recorded.

5

APPENDICES

In € millions

Q2 2019

Q2 2020

Total

Scope of

Like-for-Like

Currency Effect

Change

Consolidation

Growth

Europe

701.4

483.0

-31.1%

-2.8%

-28.2%

-1.3%

North and Central America

625.7

570.4

-8.8%

8.9%

-17.5%

1.5%

Rest of the World

349.7

263.5

-24.6%

1.9%

-22.4%

-4.7%

Total

1,676.8

1,316.9

-21.5%

2.5%

-22.8%

-0.8%

33

1. Market where sales are recorded.

5

APPENDICES

In € millions

H1 2019

H1 2020

Total

Scope of

Like-for-Like

Currency Effect

Change

Consolidation

Growth

Europe

1,408.4

1,167.5

-17.1%

0.4%

-16.9%

-0.7%

North and Central America

1,211.6

1,193.1

-1.5%

8.5%

-11.2%

2.2%

Rest of the World

606.8

472.0

-22.2%

1.2%

-20.0%

-3.9%

Total

3,226.8

2,832.6

-12.2%

3.6%

-15.2%

-0.1%

34

1. Zone of origin of the product sold.

5

APPENDICES

In € millions

Q1 2019

Q1 2020

Total

Scope of

Like-for-Like

Currency Effect

Change

Consolidation

Growth

Europe

677.0

663.2

-2.0%

3.8%

-5.4%

-0.2%

North and Central America

578.0

613.7

6.2%

7.9%

-4.4%

2.9%

Rest of the World

295.0

238.8

-19.1%

0.7%

-17.6%

-2.5%

Total

1,550.0

1,515.7

-2.2%

4.8%

-7.3%

0.7%

35

1. Zone of origin of the product sold.

5

APPENDICES

In € millions

Q2 2019

Q2 2020

Total

Scope of

Like-for-Like

Currency Effect

Change

Consolidation

Growth

Europe

731.4

504.3

-31.1%

-2.7%

-28.2%

-1.3%

North and Central America

633.6

579.4

-8.6%

8.9%

-17.3%

1.5%

Rest of the World

311.8

233.2

-25.2%

1.6%

-22.3%

-5.3%

Total

1,676.8

1,316.9

-21.5%

2.5%

-22.8%

-0.8%

36

1. Zone of origin of the product sold.

5

APPENDICES

In € millionsH1 2019H1 2020% change

Net sales

3,226.8

2,832.6

-12.2%

Gross profit

1,683.4

1,463.6

-13.1%

as % of sales

52.2%

51.7%

Adjusted(1) operating profit

662.6

496.9

-25.0%

as % of sales

20.5%

17.5%(2)

Amortization & depreciation of revaluation of assets at the time

(43.0)

(47.1)

of acquisitions and other P&L impacts relating to acquisitions

Operating profit

619.6

449.8

-27.4%

as % of sales

19.2%

15.9%

Financial income (costs)

(38.3)

(42.3)

Exchange gains (losses)

(0.3)

(6.5)

Income tax expense

(164.0)

(114.3)

Share of profits (losses) of equity-accounted entities

(0.9)

(0.9)

Profit

416.1

285.8

-31.3%

Net profit attributable to the Group

415.3

285.7

-31.2%

1.

Operating profit adjusted for amortization and depreciation of revaluation of assets at the time of acquisitions and for other P&L impacts relating to acquisitions (€43.0 million in

H1 2019 and €47.1 million in H1 2020) and, where applicable, for impairment of goodwill (€0 in H1 2019 and H1 2020).

37

2.

17.1% excluding acquisitions (at 2019 scope of consolidation).

5

APPENDICES

In € millionsQ1 2019Q1 2020% change

Net sales

1,550.0

1,515.7

-2.2%

Gross profit

804.3

801.6

-0.3%

as % of sales

51.9%

52.9%

Adjusted(1) operating profit

305.2

282.6

-7.4%

as % of sales

19.7%

18.6%(2)

Amortization & depreciation of revaluation of assets at the time

(19.3)

(22.6)

of acquisitions and other P&L impacts relating to acquisitions

Operating profit

285.9

260.0

-9.1%

as % of sales

18.4%

17.2%

Financial income (costs)

(18.8)

(20.0)

Exchange gains (losses)

(0.8)

(5.5)

Income tax expense

(75.2)

(66.8)

Share of profits (losses) of equity-accounted entities

(0.3)

(0.6)

Profit

190.8

167.1

-12.4%

Net profit attributable to the Group

190.4

167.1

-12.2%

1.

Operating profit adjusted for amortization and depreciation of revaluation of assets at the time of acquisitions and for other P&L impacts relating to acquisitions (€19.3 million in

Q1 2019 and €22.6 million in Q1 2020) and, where applicable, for impairment of goodwill (€0 in Q1 2019 and Q1 2020).

38

2.

18.7% excluding acquisitions (at 2019 scope of consolidation).

5

APPENDICES

In € millionsQ2 2019Q2 2020% change

Net sales

1,676.8

1,316.9

-21.5%

Gross profit

879.1

662.0

-24.7%

as % of sales

52.4%

50.3%

Adjusted(1) operating profit

357.4

214.3

-40.0%

as % of sales

21.3%

16.3%(2)

Amortization & depreciation of revaluation of assets at the time

(23.7)

(24.5)

of acquisitions and other P&L impacts relating to acquisitions

Operating profit

333.7

189.8

-43.1%

as % of sales

19.9%

14.4%

Financial income (costs)

(19.5)

(22.3)

Exchange gains (losses)

0.5

(1.0)

Income tax expense

(88.8)

(47.5)

Share of profits (losses) of equity-accounted entities

(0.6)

(0.3)

Profit

225.3

118.7

-47.3%

Net profit attributable to the Group

224.9

118.6

-47.3%

1.

Operating profit adjusted for amortization and depreciation of revaluation of assets at the time of acquisitions and for other P&L impacts relating to acquisitions (€23.7 million in

Q2 2019 and €24.5 million in Q2 2020) and, where applicable, for impairment of goodwill (€0 in Q2 2019 and Q2 2020).

39

2.

15.3% excluding acquisitions (at 2019 scope of consolidation).

5

APPENDICES

H1 2020

North and

Rest of

Europe

Central

Total

(in € millions)

the World

America

Net sales

1,167.5

1,193.1

472.0

2,832.6

Cost of sales

(529.1)

(583.0)

(256.9)

(1,369.0)

Administrative and selling expenses, R&D costs

(411.0)

(414.0)

(138.3)

(963.3)

Reversal of acquisition-related amortization, depreciation, expense and

(7.8)

(33.8)

(8.2)

(49.8)

income accounted for in administrative, selling expenses and R&D costs

Adjusted operating profit before other

235.2

229.9

85.0

550.1

operating income (expense)

as % of sales

20.1%

19.3%

18.0%

19.4%

Other operating income (expense)

(25.7)

(27.0)

2.2

(50.5)

(1)

Reversal of acquisition-related amortization, depreciation, expense and

0.0

2.7

0.0

2.7

income accounted for in other operating income (expense)

Adjusted operating profit

209.5

200.2

87.2

496.9

as % of sales

17.9%

16.8%

18.5%

17.5%

40

1. Restructuring (€24.1m) and other miscellaneous items (€26.4m).

5

APPENDICES

H1 2019

North and

Rest of

Europe

Central

Total

(in € millions)

the World

America

Net sales

1,408.4

1,211.6

606.8

3,226.8

Cost of sales

(619.7)

(583.1)

(340.6)

(1,543.4)

Administrative and selling expenses, R&D costs

(450.0)

(407.6)

(162.1)

(1,019.7)

Reversal of acquisition-related amortization, depreciation, expense and

(6.2)

(29.5)

(7.3)

(43.0)

income accounted for in administrative, selling expenses and R&D costs

Adjusted operating profit before other

344.9

250.4

111.4

706.7

operating income (expense)

as % of sales

24.5%

20.7%

18.4%

21.9%

Other operating income (expense)

(16.0)

(20.3)

(7.8)

(44.1)

(1)

Reversal of acquisition-related amortization, depreciation, expense and

0.0

0.0

0.0

0.0

income accounted for in other operating income (expense)

Adjusted operating profit

328.9

230.1

103.6

662.6

as % of sales

23.4%

19.0%

17.1%

20.5%

41

1. Restructuring (€10.8m) and other miscellaneous items (€33.3m).

5

APPENDICES

Q1 2020

North and

Rest of

Europe

Central

Total

(in € millions)

the World

America

Net sales

663.2

613.7

238.8

1,515.7

Cost of sales

(288.6)

(295.3)

(130.2)

(714.1)

Administrative and selling expenses, R&D costs

(233.9)

(216.0)

(71.9)

(521.8)

Reversal of acquisition-related amortization, depreciation, expense and

(5.3)

(17.6)

(2.4)

(25.3)

income accounted for in administrative, selling expenses and R&D costs

Adjusted operating profit before other

146.0

120.0

39.1

305.1

operating income (expense)

as % of sales

22.0%

19.6%

16.4%

20.1%

Other operating income (expense)

(11.9)

(20.4)

12.5

(19.8)

(1)

Reversal of acquisition-related amortization, depreciation, expense and

0.0

2.7

0.0

2.7

income accounted for in other operating income (expense)

Adjusted operating profit

134.1

96.9

51.6

282.6

as % of sales

20.2%

15.8%

21.6%

18.6%

42

1. Restructuring (€1.2m) and other miscellaneous items (€18.6m).

5

APPENDICES

Q1 2019

North and

Rest of

Europe

Central

Total

(in € millions)

the World

America

Net sales

677.0

578.0

295.0

1,550.0

Cost of sales

(299.8)

(278.7)

(167.2)

(745.7)

Administrative and selling expenses, R&D costs

(220.7)

(199.1)

(77.3)

(497.1)

Reversal of acquisition-related amortization, depreciation, expense and

(2.0)

(15.0)

(2.3)

(19.3)

income accounted for in administrative, selling expenses and R&D costs

Adjusted operating profit before other

158.5

115.2

52.8

326.5

operating income (expense)

as % of sales

23.4%

19.9%

17.9%

21.1%

Other operating income (expense)

(7.5)

(11.0)

(2.8)

(21.3)

(1)

Reversal of acquisition-related amortization, depreciation, expense and

0.0

0.0

0.0

0.0

income accounted for in other operating income (expense)

Adjusted operating profit

151.0

104.2

50.0

305.2

as % of sales

22.3%

18.0%

16.9%

19.7%

43

1. Restructuring (€3.3m) and other miscellaneous items (€18.0m).

5

APPENDICES

Q2 2020

North and

Rest of

Europe

Central

Total

(in € millions)

the World

America

Net sales

504.3

579.4

233.2

1,316.9

Cost of sales

(240.5)

(287.7)

(126.7)

(654.9)

Administrative and selling expenses, R&D costs

(177.1)

(198.0)

(66.4)

(441.5)

Reversal of acquisition-related amortization, depreciation, expense and

(2.5)

(16.2)

(5.8)

(24.5)

income accounted for in administrative, selling expenses and R&D costs

Adjusted operating profit before other

89.2

109.9

45.9

245.0

operating income (expense)

as % of sales

17.7%

19.0%

19.7%

18.6%

Other operating income (expense)

(13.8)

(6.6)

(10.3)

(30.7)

(1)

Reversal of acquisition-related amortization, depreciation, expense and

0.0

0.0

0.0

0.0

income accounted for in other operating income (expense)

Adjusted operating profit

75.4

103.3

35.6

214.3

as % of sales

15.0%

17.8%

15.3%

16.3%

44

1. Restructuring (€22.9m) and other miscellaneous items (€7.8m).

5

APPENDICES

Q2 2019

North and

Rest of

Europe

Central

Total

(in € millions)

the World

America

Net sales

731.4

633.6

311.8

1,676.8

Cost of sales

(319.9)

(304.4)

(173.4)

(797.7)

Administrative and selling expenses, R&D costs

(229.3)

(208.5)

(84.8)

(522.6)

Reversal of acquisition-related amortization, depreciation, expense and

(4.2)

(14.5)

(5.0)

(23.7)

income accounted for in administrative, selling expenses and R&D costs

Adjusted operating profit before other

186.4

135.2

58.6

380.2

operating income (expense)

as % of sales

25.5%

21.3%

18.8%

22.7%

Other operating income (expense)

(8.5)

(9.3)

(5.0)

(22.8)

(1)

Reversal of acquisition-related amortization, depreciation, expense and

0.0

0.0

0.0

0.0

income accounted for in other operating income (expense)

Adjusted operating profit

177.9

125.9

53.6

357.4

as % of sales

24.3%

19.9%

17.2%

21.3%

45

1. Restructuring (€7.5m) and other miscellaneous items (€15.3m).

5

APPENDICES

In € millions

H1 2019

H1 2020

Profit

416.1

285.8

Depreciation, amortization and impairment

149.8

159.1

Changes in other non-current assets and liabilities and long-term deferred taxes

23.5

34.0

Unrealized exchange (gains)/losses

(1.1)

(15.7)

(Gains)/losses on sales of assets, net

(2.0)

(15.9)

Other adjustments

0.6

(1.6)

Cash flow from operations

586.9

445.7

46

5

APPENDICES

In € millionsH1 2019 H1 2020 % change

Cash flow from operations

586.9

445.7

-24.1%

as % of sales

18.2%

15.7%

Decrease (Increase) in working capital requirement

(145.9)

(161.6)

Net cash provided from operating activities

441.0

284.1

-35.6%

as % of sales

13.7%

10.0%

Capital expenditure (including capitalized development costs)

(71.7)

(46.0)

Net proceeds from sales of fixed and financial assets

6.1

20.8

Free cash flow

375.4

258.9

-31.0%

as % of sales

11.6%

9.1%

Increase (Decrease) in working capital requirement

145.9

161.6

(Increase) Decrease in normalized working capital requirement

(6.8)

49.2

Normalized free cash flow

514.5

469.7

-8.7%

as % of sales

15.9%

16.6%

47

5

APPENDICES

2019

Full consolidation method

Debflex

Netatmo

Trical

Universal Electric Corporation

Connectrac

Jobo Smartech

Q1

H1

9M

FY

Balance sheet only

6 months

9 months

12 months

Balance sheet only

6 months

9 months

12 months

Balance sheet only

6 months

9 months

12 months

Balance sheet only

6 months

9 months

Balance sheet only

Balance sheet only

48

5

APPENDICES

2020

Full consolidation method

Debflex

Netatmo

Trical

Universal Electric Corporation

Connectrac

Jobo Smartech

Focal Point

Q1

H1

9M

FY

3 months

6 months

9 months

12 months

3 months

6 months

9 months

12 months

3 months

6 months

9 months

12 months

3 months

6 months

9 months

12 months

3 months

6 months

9 months

12 months

Balance sheet only

6 months

9 months

12 months

Balance sheet only

Balance sheet only

To be determined

To be determined

49

5

APPENDICES

INVESTOR RELATIONS

LEGRAND

Ronan MARC

Tel: +33 (0)1 49 72 53 53 ronan.marc@legrand.fr

PRESS RELATIONS

PUBLICIS CONSULTANTS

Vilizara LAZAROVA

Tel: +33 (0)1 44 82 46 34

Mob: +33 (0)6 26 72 57 14 vilizara.lazarova@publicisconsultants.com

50

The information contained in this presentation has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein.

This presentation contains information about Legrand's markets and its competitive position therein. Legrand is not aware of any authoritative industry or market reports that cover or address its market. Legrand assembles information on its markets through its subsidiaries, which in turn compile information on its local markets annually from formal and informal contacts with industry professionals, electrical-product distributors, building statistics, and macroeconomic data. Legrand estimates its position in its markets based on market data referred to above and on its actual sales in the relevant market for the same period.

This document may contain estimates and/or forward-looking statements. Such statements do not constitute forecasts regarding Legrand's results or any other performance indicator, but rather trends or targets, as the case may be. These statements are by their nature subject to risks and uncertainties, many of which are outside Legrand's control, including, but not limited to the risks described in Legrand's reference document available on its Internet website (www.legrandgroup.com). These statements do not reflect future performance of Legrand, which may materially differ. Legrand does not undertake to provide updates of these statements to reflect events that occur or circumstances that arise after the date of this document.

This document does not constitute an offer to sell, or a solicitation of an offer to buy Legrand shares in any jurisdiction.

Unsponsored ADRs

Legrand does not sponsor an American Depositary Receipt (ADR) facility in respect of its shares. Any ADR facility currently in existence is "unsponsored" and has no ties whatsoever to Legrand. Legrand disclaims any liability in respect of any such facility.

51

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Legrand SA published this content on 31 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2020 08:01:26 UTC

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