LEGRAND / 2018 Registration document

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W in addition, certain businesses, such as new business segments (digital infrastructure, energy efficiency, home systems and assisted living), are driven more by developments related to technological evolutions, to end-customer habits and to societal evolutions than by the construction market;

W finally, a highly diversified geographical presence limits the Group’s dependence on the specific economic performance of one or more countries. In fact, Legrand has commercial and industrial operations in nearly 90 countries, and markets a wide range of products in close to 180 countries.


2.2.2 – A development driven by two growth drivers

Know-how recognized for its innovation Legrand has long-standing and widely acknowledged experience in terms of innovation and the development of new products that create value for its economic chain. This know-how is demonstrated in particular by its Eliot program. Legrand adds higher value- added products to its ranges on a regular basis, for example by using materials such as leather, wood and steel, together with new high-technology solutions. Examples are the “Céliane with Netatmo” range of connected switches and sockets, winner at the CES Innovations Design and Engineering Awards 2017 in the Smart Home and Home Appliances categories, Living Now incorporating Alexa TM , winner at the CES Innovations Awards 2019 in the Smart Home category, the Classe 300X connected door entry system, the connected face-recognition door entry system launched in China, circuit breakers with an automatic reset function, the My Home automation range, which simultaneously manages lighting, security, heating and audio and video in residential buildings in a simple, ergonomic way, eco-meters for measuring and monitoring the main sources of energy consumption on mobile devices, connected and smart thermostats and numerous controls incorporating several communication technologies such as Zigbee. Legrand is also focusing its efforts on low-end product ranges, enabling it to meet all the requirements of its markets. For example, in 2018 it launched the new user interface ranges Pial+ in Brazil, and Defineo in Lebanon, the DMX-SP 2500 circuit-breaker in India and XL3N 630 electrical cabinets in Africa and the Middle East in the energy distribution solutions area. The Group has also globally rolled out its LCS3 digital infrastructure solutions as well as Keor T Evo and Daker+ UPS systems. In addition, Legrand has developed special expertise in energy efficiency in order to reduce energy consumption and minimize the environmental impact of buildings. This includes lighting management, solutions for measuring and managing consumption, and a range of solar cell equipment protection devices (see section of this registration document for further details).

Legrand is constantly seeking to develop its market share and sales on a profitable basis by relying on two growth drivers: organic growth, which is driven in particular by innovation and the regular launch of new products offering enhanced value in use, and targeted acquisitions of companies that are frontrunners in their business segment. R NUMEROUS INITIATIVES TO SUPPORT ORGANIC GROWTH Legrand’s strategy for growth and for increasing its market shares is based on various initiatives, particularly innovation, with the launch of new products that offer enhanced value in use and commercial initiatives in the digital area (e-marketing, data analytics, etc.) as well as in the physical area such as opening new showrooms and concept stores. Over the medium to long term, and on average, Legrand spends 4% to 5% of its sales (1) on research and development, depending on its business mix and acquisitions. Legrand develops its products by focusing primarily on the following priorities: W quality, reliability and overall safety; W simplicity, ease and speed of installation; W enhanced product features, mainly through the use of new technologies (Internet of Things, communication, security and confidentiality of personal data, remote control, etc.); W interoperability and inclusion of various new technologies in the product offering, enabling end-users to enjoy the widest possible choice of technology to suit their needs, at all times; W the ability of Legrand’s product lines to work together in an Innovation at the heart of Legrand’s business model

integrated system; and W esthetics and design.

(1) Research and development expenses before purchase accounting charges relating to the acquisition of Legrand France and taking into account capitalized development costs.




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