LEGRAND / 2018 Registration document
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GROUP OVERVIEW LEGRAND AND ITS BUSINESS
2.1 – LEGRAND AND ITS BUSINESS
2.1.1 – Overview
R 2.1.1.1 A BUSINESS MODEL CREATINGVALUE OVER THE LONG TERM Legrand is the global specialist in electrical and digital building infrastructure. More specifically, the Group offers more than 300,000 product references that incorporate numerous connected solutions, across five main categories: W Controls and command: user interfaces (commands for lighting, rolling shutters, heating and sockets, voice-data- image communication, USB-type charging points, etc.), building automation (home systems, assisted living, etc.), lighting solutions (highly energy-efficient lighting management, specification- grade lighting for commercial buildings, etc.), security systems (emergency lighting, alarms, access control, etc.) and measurement and comfort solutions (atmospheric data, thermostatic heating management, air quality, etc.); W Energy infrastructure and distribution: circuit breakers, surge protection, busbars, transformers, UPS systems (Uninterruptible Power Supply), electrical cabinets and switchboards, etc.; W Digital infrastructure and distribution: pre-wired copper or fiber- optic solutions for IT networks, telephone and video networks, RJ45 sockets, patching racks, PDUs (Power Distribution Units), busways (Electric power distribution systems based on metal busbars), etc.; W Cable management: trunking, ducting, cable support or routing systems, wire-mesh cable management systems, floor boxes, etc.; W Installation components: connectors, tubes and ducts, plugs, multi-outlet units, cable ties, flush-mounting boxes, etc. This comprehensive offering tailored to the low voltage market in the commercial, industrial and residential segments makes Legrand a global standard among all players in its economic chain: the distributors to which Legrand sells its products, the electrical contractors that install Legrand’s solutions in buildings, product specifiers (architects, engineering firms) and end-users (individuals, companies, building managers).
Legrand’s business model relies on two growth drivers to strengthen its leadership positions worldwide year after year. The first driver, organic growth, is fueled by innovation with regular launches of new offerings – including connected products (as part of the Eliot program) that offer greater value-in-use for installers, building managers and end-users, supported by steady geographical expansion and numerous marketing and sales initiatives, particularly using the digitization of customer relations, commercial data, communication and the gradual deployment of a data analytics program. External growth is the Group’s second growth driver, with the acquisition of businesses that are highly complementary with its own and have leading positions in their markets. The other feature of Legrand’s business model is that it is based on generating large amounts of free cash flow, enabling the Group to finance most of its growth and maintain a solid financial position. Finally, Legrand’s development model forms part of a long-standing commitment to CSR that is constantly renewed (see Chapter 4 for more information on Legrand’s CSR approach). Thanks to the soundness and continuous improvement of its business model, Legrand intends to continue strengthening its sustainable, profitable and highly cash-generative growth profile in order to finance its growth over the long term and thus create value for all its stakeholders, while continuing to offer products that help protect the environment. The Group is listed on Euronext Paris and was notably a component of the CAC 40 index as of the date on which this registration document was filed. The Group markets its products under internationally recognized generalist brands such as Legrand and Bticino, as well as under well-known local and specialist brands. Close to its markets and focused on its entire economic chain, Legrand has more than 38,000 employees, and commercial and industrial operations in nearly 90 countries.
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LEGRAND
REGISTRATION DOCUMENT 2018
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