LEGRAND / 2018 Registration document

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CORPORATE SOCIAL RESPONSIBILITY AND DECLARATION OF EXTRA-FINANCIAL PERFORMANCE

OFFERING USERS SUSTAINABLE SOLUTIONS

W a system is also put in place to monitor product quality : the aim here is to certify product quality through additional tests carried out under a plan reviewed annually, to ensure that the basic product performance conforms with original quality and certification standards throughout the period of manufacture and marketing of the products. A monitoring plan is drawn up for a predefined period, at the end of which it must be reviewed. This includes the list of products to be monitored, testing, analysis of test reports, and a final report; W the same product qualification and quality control processes are implemented by the Purchasing Department for trade products ; W these measures may be supplemented by a product audit incorporating the technical and production quality specifications, as well as the product documents (catalogue pages, notices, datasheets, etc.) for review; W product accreditation by certified laboratories , overseen by the SBUs and carried out before products are brought to market; W the customer dissatisfaction management process ranks instances of dissatisfaction according to different levels of severity: those that could have implications for the safety of goods or people, or that have significant financial implications, are dealt with according to the rules laid down in the product risk management procedure. If necessary, an instant alert procedure is set in motion with industry contacts and the team responsible for product expertise. W the product risk management procedure , applicable to all Group products irrespective of brand and target market, includes fast- track internal processing for potentially critical situations. In the most sensitive cases, product withdrawal or recall actions could be launched. In 2018, one operation of this type was carried out within the Group; W Finally, the Group conducts regular customer satisfaction surveys on product lines and service quality (see section 4.2.2.3). Non-product quality indicators are closely monitored at the country and SBU levels. Any divergence from these indicators is systematically analyzed and corrected by implementing action plans. Provisions for product warranties totaled €29.4 million at December 31, 2018, compared to €29.1 million at December 31, 2017. Efforts to combat counterfeiting Coordinated by the Group’s Intellectual Property Department, which is part of the Group’s Operations Department, the Group is engaged in ongoing efforts to combat counterfeiting and to protect consumers on two levels: W through internal anti-counterfeiting mechanisms (see Copytracer, below), and particularly by the SBUs’ intellectual property representatives;

W through actively participation in the seizure and destruction of counterfeit electrical products, working closely with the customs agencies of the countries concerned. Efforts also take place through global communication strategies via trade unions or industry associations FFB (Fédération Française du Bâtiment), IGNES (Industries du Génie Numérique Énergétique et Sécuritaire), BEAMA (British Electrical and Allied Manufacturers’ Association), to raise awareness among all stakeholders, including installers and distributors. In 2018, the Group seized 690,000 counterfeit products. Almost 80% of these seizures resulted from actions instigated directly by Legrand’s teams in China. The remainder resulted from Legrand taking part in actions carried out jointly by members of the electrical industry and customs supervision. More generally, since January 2006, more than 7.2 million counterfeit devices (primarily switches and sockets) and circuit breakers under various Group brands, as well as 21 production molds, have been seized and destroyed. Legrand has also shut down some 10,000 links to websites selling counterfeit goods. Copytracer: protecting the user Customer satisfaction also depends on the Group’s ability to guarantee the authenticity of its products to customers. To combat counterfeiting, Legrand has introduced a system known as Copytracer Legrand. This is a unique registration number applied to certain Legrand products (e.g. new generations of modular circuit breakers, Valena wiring devices in Russia). The system applies a specific mark to the Group’s products to differentiate between original products and copies and other counterfeits that are often synonymous with risk for users. It is gradually being extended to all Group subsidiaries and brands. Since 2014, it has been introduced by the Egyptian, Polish, Italian, Russian, Indian, Hungarian and South African subsidiaries, as well as other core subsidiaries. Focus: combating counterfeiting online Anti-counterfeiting efforts are partly aimed at the sale of counterfeit products online. To combat the sale of counterfeit products on the internet, in 2018 the Group’s Chinese legal team worked with a new partner proposing an innovative approach to detecting and taking action against those selling such products on the various e-commerce platforms. In 2018, a total of 356 presumed offences involving 124 stores were found, leading to 235 sets of legal proceedings. During the year, 24 stores were closed (online but also offline), 91 stores withdrew counterfeit products from their shelves and almost 4,370 links were deleted.

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LEGRAND

REGISTRATION DOCUMENT 2018