LEGRAND_REGISTRATION_DOCUMENT_2017

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CORPORATE SOCIAL RESPONSIBILITY (CSR)

Offering users sustainable solutions

R 4.2.1.1 IMPROVING THE LIVING CONDITIONS AND COMFORT OF USERS There are several ways in which Legrand’s products can be used to improve living conditions and comfort, not least through: W “value” product ranges, allowing the widest possible access to high-quality solutions for the home without compromising on electrical safety; W products and solutions that limit power outages and optimize the building’s energy efficiency, reducing energy bills for the occupants; W assisted living systems for the home, enabling people to have a better life at home, for longer. The product offering, designed to fulfill the criterion of improving living conditions and comfort, is defined by the Group’s marketing teams, depending on the type of products and solutions. Coefficient factors may be applied if, in a given range, not all products included meet the criteria of this product offering. These may be updated from year to year as the ranges evolve, based on surveys carried out on a sample of subsidiaries. These are then extrapolated to the Group as a whole. Group priority 2014-2018 To increase by 50% Group sales of solutions that improve living conditions and comfort. Key performance indicator: Percentage of sales generated in the residential building sector with: W affordable ranges of switches, sockets and circuit breakers to suit every budget; W solutions that limit power outages and optimizing energy efficiency; W home systems enabling people to have a better life at home for longer. Annual targets:

than the target set for the year, particularly in some of the mature markets. In addition, the Group’s external growth has focused on companies that do not necessarily contribute to the product categories included in this segment. Nevertheless, the Group is continuing to strengthen its position in the assisted living sector, as well as launching ranges in new economies.

2014 2015 2016

2017

2018

Target achievement rate*

57% 47% 51% 47%

*

Calculated against annual targets.

Products resulting from frugal innovation The Group’s frugal innovation approach is reflected by the development of product ranges that meet these basic needs . It involves rethinking certain offerings by redesigning products to suit users’ primary needs. It means using innovative design to meet the expectations of users who are yet to become customers, either for cost reasons or because the products themselves do not meet their requirements. In practical terms, it does not mean downgrading the existing offering, but rather designing a specific offering that meets local constraints in terms of the right cost and essential functionalities, with high-quality, user-friendly products guaranteeing electrical safety and, where necessary, including the latest technology. Legrand’s frugal innovation approach can be seen in the design, development and marketing of affordable ranges of accessories (sockets, switches) and circuit breakers, that enable buildings to be permanently and safely equipped at price levels affordable for the greatest number. This is mainly intended for the emerging economies: W in China, with the Yi Pin and K2 ranges, designed to be installed in new builds constructed as part of the Social Housing Project; W in India, with the Group’s subsidiary Indo Asian and its range of Glint accessories for the residential market, designed in response to the budgetary constraints specific to this type of requirement; W in South and Central America, with the Domino Sencia accessory ranges, or with Luzica and New Galica in Colombia. For more information on solutions that address these basic needs, see our website www.legrand.com . Products promoting energy efficiency To combat energy poverty, Legrand designs solutions limiting power outages and optimizing energy efficiency . This means consuming less electricity and reducing energy bills across the board by adopting simple solutions.

2014 2015 2016

2017

2018

Growth in the proportion of sales generated with these solutions compared with 2013

+4% +10% +19% +32% +50%

2017 achievement: The percentage of Group sales represented by these offerings increased by 15% between 2013 and 2017. This was below the 32% growth target that the Group set itself at the end of 2017. Sales for this product offering contributed less to total sales

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REGISTRATION DOCUMENT 2017 - LEGRAND