LEGRAND_REGISTRATION_DOCUMENT_2017

GROUP OVERVIEW

A structure serving the Group’s strategy and customers

Legrand also offers various software applications specifically designed to provide everyday support to professionals, depending on their role (from architects to electricians) or the type of project. Among the main business software applications offered by the Group, XLPro 3 is aimed at designers and manufacturers of energy distribution panels, who can use it to plan the distribution and siting of panels and to visualize and cost entire projects; LCS Pro 3 can be used to configure Voice-Data-Image systems simply (patching racks and communication cabinets for multimedia networks as well as UPS); the entire electrical installation can be designed quickly using illiPro, intended for the residential and tertiary markets, which allows users to select products room by room. Legrand also publishes e-catalogs on the websites of its various brands, making it possible to search for technical, commercial and logistics data, certifications and installation tools, for all product categories. Legrand also offers online configurators in France and the United States in particular. And Legrand continuously enriches its digital marketing content for its distributor customers, specifiers and end users (rich content) and contributes actively to the development of BIM (Building Information Modeling), an innovative process for the digital planning of the building life cycle. Finally, Legrand offers applications for tablets and smart phones (including, in particular the e-catalogue iPhone, Home + Control for the user interface connected offering “Céliane with Netatmo”, or applications of the My Home residential systems solutions) which facilitate the search for information concerning products, configuration and the costing of the electrical installation. Legrand promotes its products via marketing initiatives, particularly aimed at electrical installers. The Group also seeks to stimulate demand among end-users by actively promoting its products through advertising campaigns and targeted marketing events promoting the design and functionalities of its products. In this respect, Legrand has implemented innovative marketing and sales initiatives in recent years: the “Lab by Legrand” in Paris, where individuals, architects, decorators, distributors and electrical installers can experience the Group’s high-end user interfaces in a unique setting, the multi-brand ( Legrand , Bticino and Vantage ) concept store, “B Inspired”, in Brussels, and the Experience Center at West Hartford in the United States, where visitors enter a unique world of innovation and design. Finally, Legrand is also developing its relationship with end-users by continuously strengthening its presence on social networks and more generally on the Internet, especially through its corporate website www.legrand.com and websites in local languages in most countries where the Group operates. In 2017, the Group’s websites generated more than 114 million-page views, while Legrand’s YouTube © videos have been viewed over 32 million times.

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 2017, sales to Sonepar and Rexel accounted for approximately 20% 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 2017. Legrand’s other main customers include FinDea, Graybar, CED, Lowe’s, SOCODA, Wesco, Anixter, Comet, Comoli Ferrari, Partelec, Megawatt, Menards and Bunnings. The electrical products and systems distribution structure in most countries enables Legrand to channel its products towards distributors’ centralizeddistribution 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. Where its “pull” strategy is concerned, Legrand believes that demand for its products ismostly determined by the requirements which electrical installers, product specifiers and end-users make known to distributors. As a result, Legrand focuses the bulk of its marketing efforts on developing and sustaining demand for its products, by actively promoting them to electrical installers, product specifiers, and end-users. Legrand focuses on providing training, technical handbooks, and business software applications, as well as ensuring reliable and rapid availability of its products. Legrand offers training programs to local distributors and electrical installers, mainly at its Innoval international training centers in France, as well as in the Middle East, Asia and South America. In total, there are 20 training centers around the world that welcome and provide training for players in the electrical industry. These training programs are designed to expand electrical installers’ expertise and service offering by familiarizing them with the Group’s latest product innovations and product installation methods. The Innoval training centers in France offer more than 60 separate hands-on programs in different areas, ranging from home automation, the wiring of electrical cabinets, and fiber-optic cabling to installing emergency lighting systems, or providing training on current regulations and technical standards. In 2017, the Innoval centers received 7,300 visits from customers, while nearly 5,200 trainees attended courses. In addition, Legrand offers local training programs in many countries, including Italy, Brazil and the United Kingdom, as well as in Chile and Dubai. More generally, Legrand also uses new communications and training technologies, and has thus introduced various on line training tools, such as e-learning and virtual classrooms (webinars). Stimulating demand among electrical installers, product specifiers and end-users (“pull”)

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REGISTRATION DOCUMENT 2017 - LEGRAND