LEGRAND_REGISTRATION_DOCUMENT_2017

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GROUP OVERVIEW

Legrand and its business

2.1 – LEGRAND AND ITS BUSINESS

2.1.1 – Overview

R 2.1.1.1 A BUSINESS MODEL CREATINGVALUE OVER THE LONG TERM Legrand is the global specialist in electrical and digital building infrastructure. More specifically, the Group offers hundreds of thousands of products across seven major categories: W User interface: control functions (lighting, shutters, heating, etc.) and connection functions (sockets for power, for voice, data, image, for USB type charging, etc.); W Cable management: trunking, ducting, cable support or routing systems, wire-mesh cable management systems, floor boxes, etc.; W Energy distribution products: circuit breakers, surge protection, busbars, transformers, etc.; W Digital infrastructure: data distribution (pre-wired copper or fiber-optic solutions for IT, telephone and video networks, RJ45 sockets, screen mounts, etc.); W Building systems: lighting and energy management, home systems, assisted living systems, security lighting, architectural lighting, etc.; W UPS (Uninterruptible power supply); and W Installation components: connectors, tubes and ducts, plugs, multi-outlet units, cable ties, flush-mounting boxes, etc. This comprehensive offering tailored to the low voltage market for the commercial, industrial and residential segments makes Legrand a global standard among all actors in its economic chain: the distributors to whom Legrand sells its products, the electrical contractors who install Legrand’s solutions in buildings, product specifiers (architects, engineering firms) and end-users (individuals, companies, building managers). Legrand’s business model relies on two growth drivers to strengthen its leadership positions worldwide year after year. The first driver, organic growth, is fueled by innovation with regular launches of new offerings – including connected products (as part of the Eliot program) with greater value-in-use for installers, building maintenance companies and end-users, supported by many marketing and sales initiatives, thanks in particular to new digital tools.

External growth is the Group’s second growth driver, with the acquisition of businesses that are highly complementary with its businesses and have leading positions in their markets. The other feature of Legrand’s business model is that it is based on high free cash flow generation that has enabled the Group to finance its growth and maintain a solid balance sheet structure. Indeed, as initiatives linked to new technologies expand, Legrand is at the same time actively pursuing its initiatives targeting productivity – mainly linked to the “digitalization” of certain processes and to the optimal use of capital employed – thanks to the new industrial organization implemented in 2014. In total, profits from this industrial transformation contribute to the financing of initiatives linked to new technologies. Thanks to the soundness of its business model and ongoing efforts to improve that model, and in keeping with the Group’s four values (customer focus, innovation, ethical behavior and resource optimization), Legrand intends to continue to strengthen its sustainable, profitable and highly cash-generative growth profile in order to finance its growth over time and thus create value for all its stakeholders, while continuing to offer products that help protect the environment. The Group is listed on Euronext Paris and is notably a stock component of the CAC 40 index as of the date on which this Registration Document was filed. The Group markets its products under internationally recognized generalist brands, such as Legrand and Bticino , as well as under well-known local and specialist brands. Close to its markets and focused on its entire economic chain, Legrand has more than 37,000 employees, and commercial and industrial operations in nearly 90 countries. The Group’s organizational structure is based on two distinct roles: W on the one hand, operational sales and operational marketing (Front Office), 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; and W on the other hand, activities linked to strategy, industrial operations (innovation, R&D, manufacturing, purchasing and supply chain), and general administration (Back Office), organized globally.

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REGISTRATION DOCUMENT 2017 - LEGRAND