LEGRAND / 2018 Registration document

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2018 achievement: The Group slightly underperformed on the indicator for implementing the product risk management procedure, since 92% of its sales are generated within entities that apply the principles, against an annual target of 100%. The targets set for counterfeiting have meanwhile been achieved, with the seizure and destruction of about 690,000 counterfeit products and action plans implemented to tackle counterfeiting in several countries.

W keeping pace with technological advances, such as the digitization of telecommunications networks that transmit calls between homes for the elderly and support centers. With the range of NOVO carephone systems from Neat and REACH IP from Tynetec, the Group is accompanying the switchover from telecommunications networks to IP technology. The monitoring platforms from Jontek (acquired in 2016) also reflect Legrand’s ambition to offer technologically advanced solutions. For more information on the Group’s solutions for assisted living, see the www.legrand.com website. For more information about the Group’s initiatives for the Silver Economy, see section R ENSURING THE SAFETY OF USERS OF ELECTRICAL EQUIPMENT Given the potential risks associated with the use of electricity, user safety is paramount for Legrand. The Group is therefore committed to ensuring that the products it places on the market are of the highest quality and that they conform to the relevant standards. To protect users, Legrand is involved in an ongoing industry campaign to prevent counterfeiting. This roadmap priority is supported by two sub-targets: W in terms of product quality, the aim is to ensure that the product risk management policy is properly applied within the Group; W as regards deploying and maintaining resources to combat counterfeiting, the aim is to monitor the number of products seized, and to complete at least one significant action each year in the fight against counterfeiting. The term “significant” here means being able to take action involving several partners, potentially in several different countries. 2014-2018 Group priority Continue deploying initiatives in favor of product quality and against counterfeiting in the electrical industry. Key performance indicators : the number of seized counterfeit products, anti-counterfeiting measures, the percentage of Group sales compliant with the product risk management policy. Annual targets: To monitor the number of seized counterfeit products, introduce at least one major anti-counterfeiting measure, and ensure that 100% of sales are covered by the product risk management policy.

2014 2015 2016 2017


Target achievement rate*

93% 94% 89% 96% 96%

* Calculated against annual targets; each subject has a 50% target achievement weighting.


Product risks and quality policy Despite product testing, it is possible that Legrand’s products might not operate properly or present errors and defects. These errors and defects could cause personal injury and/or damage to property and equipment. Such accidents have in the past, and could in the future, result in product liability claims, loss of revenue, warranty claims, costs associated with product recalls, litigation, delay in market acceptance or harm to the Group’s reputation for safety and quality. The increased accountability of all Group employees is encouraged through the application of the quality policy, which may be consulted at www.legrand.com . The Group’s quality policy, managed by the Group’s Operations Department, is deployed within each SBU (Strategic Business Unit) and in each country. It defines the Group’s commitments in terms of quality, and, specifically, compliance with regulatory requirements, the need for product reliability, and the organization, control, measurement and monitoring of processes. Management systems (which are ISO-certified) reduce and prevent risks. The Group’s quality policy is essentially implemented through: W ISO 9001 certification issued by independent bodies for the quality management system at each of the Group’s sites. At the end of 2018, 90% of sites were certified; W production quality control procedures , which require frequent or systematic checks to be introduced, depending on the manufacturing specifications of the products. These are accompanied by a list of safety functions to be systematically tested because of their criticality (e.g. ground continuity);




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