LEGRAND / 2018 Registration document

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GROUP OVERVIEW

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

W The other product specifiers are architects, decorators and design firms, who fuel demand for Legrand’s products by recommending their installation to end-users or by specifying them in the design of certain building projects. W End-users are the people who use Legrand’s products in the environment where these products are installed or used. Legrand’s distribution chain is organized so that manufacturers like Legrand sell their products, primarily to distributors, which in turn sell the products to the electrical installers responsible for installing them in end-users’ buildings. This is mainly a flow-driven business, as electricians may come to buy products from distributors several times a week, depending on their requirements. Product specifiers play an active role in this chain by advising electrical installers and end-users on product and application choices. R 2.3.1.3 A “PUSH-AND-PULL” STRATEGY Sales and marketing are the responsibility of the Front Office, whose headcount accounted for more than 19% of the Legrand total headcount in 2018 (see section 4.7.2.2 of this registration document). Marketing efforts are focused on each level of the distribution chain (distributors, electrical installers, product specifiers and end- users), in accordance with the Group’s “push-and-pull” strategy, the aim of which is outlined below. These efforts are primarily aimed at providing market players with information, training, and other services relating to the Group’s entire range of products and systems, alongside sales. Legrand believes that making its products easier to access and use for distributors, electrical installers and end-users enables the Group to create significant product and brand loyalty, and to generate demand for its products and systems at each level of the distribution chain. As part of the “push” strategy, Legrand maintains close relationships with electrical equipment distributors by focusing on product availability and just-in-time delivery, and by simplifying and accelerating the ordering, stocking and dispatching of its products. The “push” strategy is also based on providing a catalog that covers all of an electrician’s requirements, and includes new and innovative products. In addition, Legrand makes its catalog easier to access and use by making an electronic version available, standardizing packaging sizes and appearance, and by introducing innovative services such as pre-sorted deliveries. Selling Legrand’s products to electrical equipment distributors (“push”)

Legrand’s “push” strategy includes: W priority inventories . In France, many distributors have agreed to maintain permanent inventories of certain Legrand priority products. In return, Legrand ensures not only that large amounts of non-priority finished products are held in inventory, but also that flexible and reactive production enable it to fill its distributors’ orders quickly. For example, in an emergency, products that are not stocked by distributors can be delivered anywhere in France within 24 to 48 hours via the “Dispo-Express” service; W inventory management . In the United States, Wiremold and Pass & Seymour, US subsidiaries of the Group, can access the inventory levels of some of their main distributors on a daily basis. If inventory levels drop below a pre-defined threshold, new inventories are prepared and shipped immediately; W intelligent sorting . In order to optimize the logistics chain, Legrand pre-sorts its products before dispatching them to electrical equipment distributors in France, thereby anticipating the steps these distributors will have to follow in order to distribute the products to their agencies and customers. This value-added service, which is intended for the largest product flows, decreases the preparation work that the distributors have to perform themselves, reduces dispatch errors and lowers handling costs, giving Legrand a competitive edge that is appreciated by its customers; W the creation of international logistics platforms . Legrand manages its international distribution via logistics platforms from which it dispatches its products. By reducing the distance between its products and customers, Legrand is improving the service provided, and significantly reducing delivery lead times. Legrand has installed logistics platforms in Asia, the Middle East and Eastern Europe. These platforms and various subsidiary-owned warehouses are connected by a single network that makes it possible to synchronize their inventories on a daily basis. Using logistics platforms also enables more products to be transported in fewer trips, thus reducing CO 2 emissions to protect the environment. Legrand enjoys strong, long-standing commercial relationships with its electrical equipment distributors, and particularly with its two largest distributors, the Sonepar and Rexel electrical product distribution groups. In 2018, sales to Sonepar and Rexel accounted for more than 18% of the Group’s consolidated sales, although this percentage varied from country to country. Legrand believes that no other single distributor accounted for more than 5% of the Group’s global revenue in 2018. Legrand’s other main clients include Graybar, CED, FinDea, Lowe’s, Anixter, Best Buy, Wesco, Comoli Ferrari, SOCODA, Comet, Yess Electric and Megawatt. The electrical products and systems distribution structure in most countries enables Legrand to channel its products towards distributors’ centralized distribution centers, and therefore benefit from their market presence and retail outlet infrastructure. This organizational structure also limits the logistics costs and credit risk that Legrand would incur if it had to deal with electrical installers and end-users directly.

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LEGRAND

REGISTRATION DOCUMENT 2018