LEGRAND / 2018 Registration document

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GROUP OVERVIEW

AN ORGANIZATION SERVING BOTH THE GROUP’S STRATEGY AND ITS CUSTOMERS

2.3 – AN ORGANIZATION SERVING BOTH THE GROUP’S STRATEGY AND ITS CUSTOMERS

Legrand has manufacturing and marketing sites and subsidiaries in nearly 90 countries. Legrand’s organizational structure is based on two distinct roles: firstly, sales and operational marketing activities (Front Office), and secondly, activities connected to strategy, operations (innovation, R&D, manufacturing, purchasing, and supply chain) and general administration (Back Office). W The Front Office is organized by country in order to respond to the specific requirements of each market in terms of relations with distributors, electrical installers, product specifiers and end- users. The aims of this decentralized organizational structure, run by local managers, are to develop sales in accordance with the strategy set out by the Strategy and Development Department and approved by General Management, to raise commercial profitability, and to optimize the working capital requirements for each country.

W The Back Office, generally organized on a centralized basis, includes an Operations Department, responsible for innovation, research and development, manufacturing, purchasing and the supply chain, and the head office departments (Strategy and Development, Finance, IT and Human Resources). The specific aims of this organization, at Group level, are to define strategy, optimize industrial organization, accelerate the development of new products, keep capital employed under control, adapt the Group’s resources to the business, appoint key managers worldwide, establish all internal control rules, and coordinate risk management processes.

2.3.1 – Front Office

R 2.3.1.2 AN ECONOMIC CHAIN ADAPTED TO MARKET FLOWS

Legrand’s relationship with generalist and specialist distributors (IT, VDI, web, etc.), electrical installers, product specifiers, and end-users represents a strategic priority for the Group. Legrand is extending its commercial coverage of all its markets by prioritizing areas with high long-term growth potential, such as new economies and new business segments (1) . R 2.3.1.1 THE FRONT OFFICE’S ROLE AND RESPONSIBILITIES The Front Office acts as an interface with Legrand’s distributor customers, electrical installers, product specifiers and end-users. In each country, Front Office activities are run by a country manager who is responsible for: W growing market share and sales; W increasing commercial profitability; and W optimizing working capital requirements through efficient inventory and trade receivables management. The Group’s subsidiaries in each country are given significant latitude to manage their business and staff, and country managers are real entrepreneurs.

As part of its business activity, Legrand has various means of accessing amarket consisting of a wide variety of users (distributors, electrical installers, product specifiers and end-users). W Legrand’s distributors are the electrical and digital device and equipment distributors. These can be generalist distributors – the reference distribution channel for Legrand products because it offers broad expertise and unique coverage of the market – or distributors specialized in specific fields (IT, VDI, etc.), or even specific new distribution channels such as e-commerce. Sales to generalist and specialist distributors represented the vast majority of the Group’s consolidated sales in 2018. Legrand’s relations with its distributors are generally governed by terms and conditions of sale specific to each local market. W Electrical installers are professionals and individuals who buy, install and use Legrand’s products. The professional category includes electricians, business owners, panel builders, and industrial and commercial companies whose business activity is connected to the installation of electrical products and systems. They are also very often product specifiers for the Group.

(1) Energy efficiency, residential systems, digital infrastructure and assisted living.

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LEGRAND

REGISTRATION DOCUMENT 2018