LEGRAND_REGISTRATION_DOCUMENT_2017

02

GROUP OVERVIEW

A structure serving the Group’s strategy and customers

In order to support end-users’ interest for simple home DIY, Legrand markets part of its product range in specialist stores, with a particular emphasis on high value-added ranges. This system enables the Group not only to fulfill the demand from customers who want to renovate or improve their electrical installation, but also to communicate with the general public by offering aesthetically or functionally innovative solutions.

Legrand’s call centers, which provide a full range of information on new applications, also contribute to this promotional effort. In France, for instance, Legrand has organized its customer relations by setting up a three-level call center which provides general information about its products at the first level, detailed information on the standards that apply to products at the second level, and information enabling access to customized solutions drawn from Legrand’s product portfolio at the third level.

2.3.2 – Back Office

The role of the Back Office, generally organized centrally at Group level, is to optimize the industrial organization, accelerate the development of new products, keep capital employed under control and adapt the Group’s Back Office resources to the business. Since the first half of 2014, Legrand has set up an Operations Department to bring together all the Group’s “industrial” Back- Office functions (product marketing, innovation, R&D, purchasing, manufacturing and supply chain) under a single Operations Department, with three priorities: W focus more on the Group’s strategic areas of activity by creating seven Strategic Business Units (SBUs) in charge of R&D and production; W enhance productivity management by setting up a Group Operations Performance Department; and W improve supply chain and purchasing efficiency by bringing them closer to operations. At the same time, an Innovation and Systems department was set up to enhance coordination of innovation using a shared technology roadmap. R STRATEGIC BUSINESS UNITS To take into account the close relationship betweenmanufacturing and the technology used, Legrand’s manufacturing and development activities are organized into seven Strategic Business Units (SBUs). These pool specific industrial process and product manufacturing expertise and are aligned with the local structure of the Group’s markets: W user interface; W energy distribution; W building systems;

W UPS (Uninterruptible power supply); W installation components. The Strategic Business Units have the following objectives: W to ensure the best customer service rate and optimal product quality; W to handle product marketing and develop new products; W to define and implement industrial plans, in line with commercial development; W to improve cost prices on an ongoing basis; and W to control capital employed and, in particular, capital expenditure and inventories. More specifically, the SBUs’ ongoing goal is to improve their industrial performance and reduce capital employed by: W including these criteria into the product design phase, specifically through the deployment of product platforms and technology platforms (see section 2.2.2.1.1). Product platforms enable the Group to make significant reductions in development time and the number of components used, and to increase the utilization rate of equipment. The platform concept, originally deployed for user interfaces, is being rolled out to other product categories, such as security lighting, UPS and even plastic cable management systems. Using technology platforms makes it possible to pool investments in engineering and to enhance product quality by sharing experience; W streamlining and optimizing industrial sites; W introducing plant specialization by product line or technology so as to reach critical mass and prevent the dispersal of resources and skills; W systematically applying a “make or buy” approach to all new projects to determine whether to invest in new manufacturing assets or to outsource and thus gain extra flexibility and adaptability, while at the same time reducing the amount of capital employed; and

W cable management; W digital infrastructure;

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REGISTRATION DOCUMENT 2017 - LEGRAND