LEGRAND / 2018 Registration document

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

GROUP OVERVIEW LEGRAND AND ITS BUSINESS

Legrand thus ranks second in Europe for assisted living and first or second in the major European markets, particularly France, the United Kingdom, Spain and Germany. See section 4.2.1.1 of this registration document for further details on the assisted living business. 2.1.1.2.4 Development of new distribution channels by the electrical sector Due to changes in technology and the way it is used, new opportunities are emerging in activities such as Audio-Video (AV), Voice-Data-Image (VDI), IT and datacenters. Legrand is building strong positions in these new business areas. In 2017, in particular, the Group acquired Milestone AV Technologies, a leading AV power and infrastructure player in the United States and Server Technology Inc., North American front-runner in smart PDUs for datacenters. In 2018, it acquired Shenzhen Clever Electronic, the Chinese leader of smart PDUs for datacenters and in 2019 Universal Electric Corporation, the undisputed leader in busways for datacenters in the United States. The development of Legrand’s sales in these specialized channels represents significant growth opportunities for the Group and the electrical sector as a whole, providing access to newmarkets such as network integrators, panel builders, specialists in Audio-Video applications, maintenance, and more. E-commerce provides an excellent showcase for the Group’s know- how, for example enabling end-users and project owners (architects and engineering offices) to get a complete picture of the variety of Legrand’s offerings, in terms of both functionality and finishes. Legrand believes that the bulk of its product sales made through e-commerce will be recorded by generalist distributors, which remain the Group’s main distribution channel. R 2.1.1.3 PRODUCTS (1) Legrand believes that its activities are local and that access to its market requires new entrants to make a high initial investment, primarily due to: W the importance of the relationship between Legrand and generalist distributors, which remain the Group’s main distribution channel, and in general the need to establish relationships with numerous players in the economic decision-making chain in each country, regardless of whether they are local distributors, electrical installers, product specifiers or end-users; W differences in installation practices and design preferences in each country;

W the existence of an installed base comprising several billion products; and W the need to offer customers an extensive range of innovative, multifunctional products and systems. Legrand offers a catalogue of more than 300,000 product references to its clients and regularly updates its product range by adding innovative features, for example based on new technologies such as the Internet of Things. These changes benefit installers, who gain from faster product installation and set-up times; the end-customer and specifiers, who are offered intuitive new features and designs; and lastly facility managers, with simplified, reliable maintenance that allow productivity gains. Legrand’s product ranges are designed for both the residential and commercial sectors, including offices, hotels, retail outlets and public buildings. Its products are subject to quality and safety controls and regulations. They are mostly regulated by national standards, and even international standards for some of them. Legrand’s offering is divided up into five main product categories: W Controls and command; These categories of products are sold in most of Legrand’s major geographic markets and each country has its own technical standards or specifications. In addition, the technical features and design of Legrand’s products may vary, depending on whether they are intended for commercial, residential or industrial buildings. 2.1.1.3.1 Controls and command Legrand’s controls and command offerings ensure building functions management. They include user interfaces (2) , that cover all the solutions designed to create a day-to-day link between the user and the electrical installation of a building. User interfaces comprises control functions (lighting, rolling shutters, heating, etc.) and connection functions (sockets for power, for voice, data, image, for USB type charging, etc.). W Energy infrastructure and distribution; W Digital infrastructure and distribution; W Cable management; and W Installation components.

(1) For more information relating to data on Legrand’s market and competitive positioning, readers can refer to the note on page 4 of this Registration document. (2) This has a broader meaning than the concept of wiring devices previously used, which essentially covered switches and sockets.

34

LEGRAND

REGISTRATION DOCUMENT 2018

Made with FlippingBook Annual report