Company Announcements

Legrand fully achieves annual targets

Sales growth (organic and acquisitions): +3.9%
Adjusted operating margin: 20.5% (after acquisitions)
Net profit attributable to the Group: 13.5% of sales
Free cash flow: €1.3 billion, 14.9% of sales
CSR roadmap achievement rate: 113% in 2024

The Group is on track to meet 2030 ambitions

Strong growth in datacenter business
which now represents 20% of sales (proforma¹)
9 acquisitions announced in the past 12 months, including 1 announced today
Very steady stream of new product launches
High and increasing customer satisfaction

2025: Legrand aims to accelerate growth

Sales growth (organic and acquisitions): +6% to +10%

LIMOGES, France--(BUSINESS WIRE)--Feb. 13, 2025-- Regulatory News:

Legrand (Paris:LR):

Benoît Coquart, Legrand’s Chief Executive Officer, commented:

“Legrand had an excellent fourth quarter, with organic sales growth of +6.2%, adjusted operating margin of 20.7%, and free cash flow of €541 million. This quarter concludes in a good way a year 2024, where, despite a generally depressed building market in most of our geographies, the Group recorded further growth in sales and very good results.

We recently presented our strategic roadmap for 2030 ² , which calls for accelerating sales growth, both in our traditional products and in new solutions supporting the energy and digital transition, and 2024 is a perfect illustration of our ambitions with, in particular:

- a very steady stream of acquisitions, with 9 deals announced over the last twelve months, and a very active pipeline;
- stronger positions in datacenters, which now account for around 20% of Group sales (proforma ³ ) and grew organically by close to +15% in 2024;
- dynamic innovation, notably with numerous new product launches;
- strategic initiatives in terms of production capacity, digitalization and optimization of our cost structure;
- a high and steadily rising level of customer satisfaction;
- unwavering commitment from our teams, as seen in our latest survey, which set engagement at 80% in 2024;
- full achievement of goals set in our fifth CSR roadmap, with a completion rate of 113%. Over 3 years this includes, for example, a -53% reduction in our direct carbon emissions (Scopes 1 & 2) and a rise in the percentage of female managers to reach more than 30%.

In 2025, we will continue the methodical execution of our strategic roadmap, aiming for accelerated sales growth on the one hand, and earnings and cash flow above industry standards on the other.”

2025 full-year targets

In 2025, the Group will pursue the profitable and responsible development laid out in its strategic roadmap. Taking into account the world’s current macroeconomic outlook and the customs policies effectively applied as of the date of this publication, and with confidence in its model for creating integrated value, Legrand has set the following full-year targets for 2025:

- sales growth of between +6% and +10% (organic and acquisitions, excluding currency effects);
- adjusted operating margin (after acquisitions) holding stable overall, compared with 2024;
- at least 100% CSR achievement rate for the first year of the 2025-2027 roadmap⁴.

2024 financial performance

Key figures

⁽¹⁾ See appendices to this press release for definitions and indicator reconciliation tables
⁽²⁾ At 2023 scope of consolidation

Consolidated sales

In 2024, sales were up a total of +2.8% from 2023, at €8,648.9 million.

In a building market that remained depressed in many geographies, organic growth in sales was +1.0% over the year, including +1.4% in mature countries and -0.1% in new economies.

The impact of a broader scope of consolidation was +2.2%, including +2.8% linked to acquisitions and ‑0.6% linked to the Group’s disengagement from Russia on October 4, 2023. Based on acquisitions announced and their likely dates of consolidation, their overall impact should be close to +4% in 2025.

The exchange-rate effect on sales in 2024 was -0.5%. Based on average exchange rates in January 2025 alone, the full-year effect should be around +1.5% in 2025.

Changes in sales by destination at constant scope of consolidation and exchange rates broke down as follows by region:

These changes are analyzed below by geographical region:

- Europe(40.0% of Group revenue): in a building market in retreat in most countries, sales at constant scope of consolidation and exchange rates fell by -2.3% in 2024, and were nearly unchanged at +0.6% in the fourth quarter alone.

Sales in Europe's mature economies (34.8% of Group revenue) fell organically by -3.1% in 2024, of which ‑1.5% in the fourth quarter alone. Italy and Spain held up well over the year, but failed to offset a decline in sales in France or in the United Kingdom.

Sales in Europe’s new economies were up +3.4% over the year, and +18.2% in the fourth quarter alone, with sales growth in Turkey and good resilience in Eastern Europe.

- North and Central America (40.1% of Group revenue): sales were up +4.5% from 2023 at constant scope of consolidation and exchange rates, with a +11.6% increase in the fourth quarter alone.

In the United States alone (37.0% of Group revenue), sales rose by a strong +5.7% over the year, including a sharp +13.3% increase in the fourth quarter. Over 12 months, this performance is essentially due to the marked success of our datacenter offerings.

In 2024, sales declined in Canada and Mexico.

- Rest of the world (19.9% of Group revenue): sales grew organically by +1.3% in 2024, with a +7.2% increase in the fourth quarter.

In Asia-Pacific (12.1% of Group revenue), sales declined by -2.7% full year and were stable at +0.4% in the fourth quarter alone. Over the year, good growth in India was unable to offset the very sharp fall in China, where construction markets remain in steep decline.

In Africa and the Middle East (3.7% of Group revenue), sales were up +6.9% over twelve months and +13.2% in the fourth quarter alone. In 2024, sales were up sharply in the Middle East and on the rise in Africa.

In South America (4.1% of Group revenue), sales were up +8.8% over twelve months, with marked growth in Brazil and Chile, and advanced a strong +23.0% in the fourth quarter alone.

Adjusted operating profit and margin

Adjusted operating profit for 2024 stood at €1,776.0 million, up +0.3% from 2023. This corresponds to an adjusted operating margin equal to 20.5% of sales for the period.

Before acquisitions, adjusted operating margin for 2024 stood at 20.6% of sales.

The Group's high profitability demonstrates the quality of Legrand's commercial positions and its strong ability to deliver in a market environment that remained complex in 2024.

Value creation and solid balance sheet

Net profit attributable to the Group came to €1,166.4 million, up +1.6% from 2023, equal to 13.5% of sales with an increase in operating profit, a negative impact of financial results and exchange-rate effects, and a stable corporate income tax rate of 25.9% in 2024.

Free cash flow came to 14.9% of sales for the year, to total €1,290.5 million, with a conversion rate⁵ of 111% of net profit attributable to the Group for the period.

The ratio of net debt to EBITDA⁶ stood at 1.5 on December 31, 2024, a level that reflects the pace of acquisitions since the beginning of the year as well as the Group’s solid generation of free cash flow.

In addition, as previously announced⁷, Legrand will have to pay €43 million in 2025 following the enforceable decision by the French Competition Authority regarding the application of derogated prices on the French market between 2012 and 2015. Legrand categorically rejects the allegation made against it and has appealed this decision.

Dividend

Legrand’s Board of Directors will ask the General Meeting of Shareholders to be held on May 27, 2025 to approve the payment of a dividend of €2.20 per share in respect of 2024. This represents a rise of +5% from 2023 and a payout ratio of close to 50%.

The ex-dividend date is May 29, 2025, with payment⁸ on June 2, 2025.

2024 CSR performance

2024 results of the 2022-2024 CSR roadmap

In 2024, Legrand reached an achievement rate of 113% on the targets set for the third and last year of its 2022-2024 CSR roadmap⁹. Achievement rates on the 4 pillars underpinning the Group’s contribution to 10 of the UN’s Sustainable Development Goals (SDGs) were as follows:

- 122% on promoting diversity and inclusion, including a rise in the ratio of women in management positions (defined as Hay Grade 14+) to 30.5%, the reach of 94% of employees working in a “Gender Equality European & International Standard (GEEIS) Diversity” certified entity. 2024 also saw close to 4,300 new opportunities (internships, work-based training contracts, and jobs) offered to early-in-career candidates.

- 136% for reducing carbon footprint: the Group’s CO₂ emissions (Scopes 1 & 2) were down -53% over 3 years at current scope, 15 million tons of CO₂ were avoided between 2022 and 2024 by the Group’s customers thanks to Legrand’s offers that support the energy transition; and a total of almost 330 key suppliers committed to reducing their CO₂ emissions.

- 85% on developing a circular economy, with average use of recycled plastics and metals close to 10% and over 44% respectively. Moreover, 75% of Legrand sales include Product Environmental Profiles providing detailed information on the environmental impact of the Group’s products.

- 108% on being a responsible business, including at least 7 hours of training for close to 96% of Group employees during the year, well above the initial target of 85%; a steep decline in the frequency of workplace accidents (-26% compared with 2021); and a 98% achievement in targets related to business ethics.

In 2024, Legrand generated 78% of its sales from eco-responsible offers.

Stake acquisition in Circul’R

Legrand acquired in December 2024 a stake in Circul’R, a French company specializing in circular economy expertise and consulting. With 37 people, Circul’R today supports more than 120 companies, including 70% of the CAC40 index ones. Legrand aims to accelerate the company's development while leveraging on its expertise in circular business models (reuse, recycling, waste reduction, and more).

CSR Capital Markets Day on March 25, 2025

Legrand will launch its sixth CSR roadmap, an integral part of its strategy, this time covering the period 2025-2027. The new roadmap will be presented at a Capital Markets Day on March 25.

Medium-term outlook

Reminder of 2030 ambitions¹⁰

At the Capital Markets Day held on September 24, 2024, the Group presented its strategy for essential infrastructures products and solutions supporting the energy and digital transition (including products for datacenters, the energy transition and digital lifestyles).

Legrand detailed its 2030 ambitions as follows:

- Sales in 2030 in a range of €12 to 15 billion, including annual sales growth excluding the impact of exchange rates of between +6% to +10%. This includes +3% to +5% organic and +3% to +5% related to acquisitions,

- Average adjusted operating margin of around 20% of revenue, including +30 to +50 basis points of annual organic improvement and -30 to -50 basis points of annual dilution from acquisitions,

- Free cash flow generation of nearly €10 billion from 2025 to 2030, with average free cash flow ranging between 13% and 15% of sales,

- A capital allocation policy prioritizing acquisitions (at least 50% of average free cash flow) and an attractive dividend payment (with a distribution ratio of the net profit attributable to the Group of around 50%). Over the period, a total of around €5 billion will thus be dedicated to acquiring companies to round out the Group's products and geographical range,

- 80% of total sales qualifying as eco-responsible sales, and reducing Scope 1, 2 and 3 emissions in line with Legrand’s Net Zero 2050 commitment.

A major growth driver: datacenters

Legrand has built up a leading position in datacenters, which will be a powerful growth driver in the years ahead.

This activity represents sales of €1.6 billion in 2024 (€1.8 billion, or 20% on a proforma¹¹ basis), compared with €0.7 billion in 2019, with average annual sales growth over 5 years of +19%, of which +13% is organic.

Legrand focuses on delivering high-value, modular, customizable and highly configurable products that are critical for datacenter to ensure business continuity and optimal performance. These solutions address:

- system power protection,
- power distribution in both white and grey rooms,
- rack management and cooling,
- energy consumption optimization, and
- seamless interoperability with infrastructure management systems.

The growth of these solutions will benefit from global investments in digital. They integrate the most cutting-edge technologies and perfectly meet the requirements and needs linked to the global digitalization of uses, the deployment and democratization of Cloud, SaaS and IoT solutions, or even of artificial intelligence.

Acceleration of Legrand's acquisition policy

Legrand intends to pursue its very active policy of acquiring complementary companies that are leaders in their respective fields. Over the last 12 months, 9 companies have joined the Group, enabling Legrand to:

- strengthen or complement its expertise and geographical presence in datacenters (€240 million in turnover acquired in an annual basis), with Netrack (Indian specialist in racks), Davenham (Irish specialist in low-voltage power distribution systems), Vass (Australian leader in busbars), UPSistemas (Colombian specialist in the integration, commissioning, maintenance and monitoring of technical infrastructures) and Power Bus Way (leading North American specialist in power Cable Bus).

- enter for the first time the highly promising connected health market, which complements Legrand's existing positions in assisted living, with the acquisitions in the Netherlands of Enovation (sales €60m) along with Performation, announced today. Based in Zeist, Performation has over 140 employees, with nearly 60 dedicated to R&D, and annual sales in excess of €20 million.

- almost double its sales in Oceania with the acquisitions of MSS (a New Zealand cable management specialist with sales of €10 million) and APP (Australia's leading cable management company with sales of €100 million).

Numerous product launches throughout the year

Innovation is an integral part of the Group's strategic model, and 2024 saw the launch of a large number of products:

- For essential infrastructures offering, these included wiring device ranges Céliane (in France), Light Now (in Greece and Belgium), Seano (in Germany and Austria), and Ultra Thin (in China), wall mounting fixtures solutions such as Chief Tempo and Sanus, architectural lighting offerings REV (in the USA), or Linkeo wall-mount cabinets (Worldwide);

- For solutions linked to the energy and digital transition, with:

1. in energy transition: the Keor MP three phase UPS, the connected DPX3 circuit breakers, the Light Up and WEOZ integrated and intelligent building management systems,
2. in digital lifestyles: the LINEA 5000 with Netatmo building access interface, KNX Mallia Senses light and temperature control touchscreen, and the upgrade of the Home + Control application (integrating solar energy management for instance),
3. in datacenters: Linkeo PDUs, the new LCS3 with fiber optic digital infrastructure solutions, as well as Cable Bus and Cablobend cable management offers.

High and increasing customer satisfaction

Legrand aims to offer the best customer experience and is making good progress on the subject in 2024. The overall customer satisfaction rate (CSAT¹²) is 80% in 2024, an increase compared to the rate of 78% recorded in 2023 and 2022. The brand promotion score (NPS¹³) is 51 in 2024, a clear increase compared to 2023 (44) and 2022 (40).

These developments are due in particular to numerous initiatives carried out in terms of for instance technical support, training and the order-invoicing-delivery process.

----------------

Consolidated financial statements for 2024 were adopted by the Board of Directors at its meeting on February 12, 2025¹⁴. These consolidated financial statements, a presentation of full-year results for 2024, and the related teleconference (live and replay) are available at www.legrandgroup.com .

Key financial dates

• 2025 first-quarter results : May 7, 2025
  “Quiet period¹⁵” starts : April 7, 2025
• CSR CMD : March 25, 2025
• General Meeting of Shareholders : May 27, 2025
• Ex-dividend date : May 29, 2025
• Dividend payment : June 2, 2025
• 2025 first-half results : July 31, 2025
  “Quiet period²” starts : July 1, 2025

About Legrand

Legrand is the global specialist in electrical and digital building infrastructures. Its comprehensive offering of solutions for residential, commercial, and datacenter markets makes it a benchmark for customers worldwide.

The Group harnesses technological and societal trends with lasting impacts on buildings with the purpose of improving life by transforming the spaces where people live, work and meet with electrical, digital infrastructures and connected solutions that are simple, innovative and sustainable.

Drawing on an approach that involves all teams and stakeholders, Legrand is pursuing a strategy of profitable and responsible growth driven by acquisitions and innovation, with a steady flow of new offerings that include products with enhanced value in use (energy and digital transition solutions: datacenters, digital lifestyles and energy transition offerings).

Legrand reported sales of €8.6 billion in 2024. The company is listed on Euronext Paris and is a component stock of the CAC 40, CAC 40 ESG and CAC SBT 1.5 indexes. (code ISIN FR0010307819).

https://www.legrandgroup.com

Appendices

Glossary

Adjusted operating profit: Adjusted operating profit is defined as operating profit adjusted for: i/ amortization and depreciation of revaluation of assets at the time of acquisitions and for other P&L impacts relating to acquisitions, ii/ impacts related to disengagement from Russia (impairment of assets and effective disposal) and, iii/ where applicable, impairment of goodwill.

Cash flow from operations: Cash flow from operations is defined as net cash from operating activities excluding changes in working capital requirement.

CSR: Corporate Social Responsibility.

EBITDA: EBITDA is defined as operating profit plus depreciation and impairment of tangible and right of use assets, amortization and impairment of intangible assets (including capitalized development costs), reversal of inventory step-up and impairment of goodwill.

Free cash flow: Free cash flow is defined as the sum of net cash from operating activities and net proceeds from sales of fixed and financial assets, less capital expenditure and capitalized development costs.

Net financial debt: Net financial debt is defined as the sum of short-term borrowings and long-term borrowings, less cash and cash equivalents and marketable securities.

Normalized free cash flow: Normalized free cash flow is defined as the sum of net cash from operating activities—based on a normalized working capital requirement representing 10% of the last 12 months’ sales and whose change at constant scope of consolidation and exchange rates is adjusted for the period considered—and net proceeds of sales from fixed and financial assets, less capital expenditure and capitalized development costs.

Organic growth: Organic growth is defined as the change in sales at constant structure (scope of consolidation) and exchange rates.

Payout: Payout is defined as the ratio between the proposed dividend per share for a given year, divided by the net profit attributable to the Group per share of the same year, calculated on the basis of the average number of ordinary shares at December 31 of that year, excluding shares held in treasury.

Working capital requirement: Working capital requirement is defined as the sum of trade receivables, inventories, other current assets, income tax receivables and short-term deferred tax assets, less the sum of trade payables, other current liabilities, income tax payables, short-term provisions and short-term deferred tax liabilities.

Calculation of working capital requirement

Calculation of net financial debt

Reconciliation of adjusted operating profit with profit for the period

Reconciliation of EBITDA with profit for the period

Reconciliation of cash flow from operations, free cash flow and normalized free cash flow with profit for the period

Scope of consolidation

Disclaimer

This press release may contain forward-looking statements which are not historical data. Although Legrand considers these statements to be based on reasonable assumptions at the time of publication of this release, they are subject to various risks and uncertainties that could cause actual results to differ from those expressed or implied herein.

Details on risks are provided in the most recent version of Legrand Universal Registration Document filed with the Autorité des marchés financiers (French Financial Markets Authority, AMF), which is available on-line on the websites of both AMF (www.amf-france.org) and Legrand (www.legrandgroup.com).

Investors and holders of Legrand securities are reminded that no forward-looking statement contained in this press release is or should be construed as a promise or a guarantee of actual results, which are liable to differ significantly. Therefore, such statements should be used with caution, taking into account their inherent uncertainty.

Subject to applicable regulations, Legrand does not undertake to update these statements to reflect events or circumstances occurring after the date of publication of this release.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy Legrand securities in any jurisdiction.

¹ After taking into consideration 12 months of turnover for the companies acquired over the year
² For further information, please refer to documents published in the Capital Markets Day 2024 - Legrand section
³ After taking into consideration 12 months of turnover for the companies acquired over the year
⁴ The pillars of the new CSR roadmap will be detailed at the dedicated virtual CMD on March 25, 2025
⁵ Free cash flow / Net profit attributable to the Group
⁶ Based on EBITDA for the past 12 months
⁷ For more information, see Legrand’s press release dated October 30, 2024
⁸ This distribution will be made in full out of distributable income
⁹ For more information, see the Legrand press release dated March 29, 2022
¹⁰ All documents and a replay of the event are available on www.legrandgroup.com via the following link: Capital Markets Day 2024 - Legrand
¹¹ After taking into consideration 12 months of turnover for the companies acquired over the year
¹² Proportion of satisfied or very satisfied customers divided by the total number of responses
¹³ NPS or Net Promoter Score, i.e. the percentage of promoters minus the percentage of detractors
¹⁴ The Group’s consolidated accounts at December 31, 2023 were approved by the Board of Directors on February 14, 2023. The statutory auditors' audit procedures on the consolidated financial statements have been performed. The certification report will be issued after finalization of verifications relating to the management report and on presentation in the format provided for by the ESEF Regulation (European Single Electronic Format) of accounts included in the annual financial report.
¹⁵ Period of time when all communication is suspended in the run-up to publication of results

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investor relations & Financial communication
Ronan MARC (Legrand)
+33 1 49 72 53 53
ronan.marc@legrand.com

Press relations
Lucie DAUDIGNY (TBWA)
+33 6 77 20 71 11
lucie.daudigny@tbwa-corporate.com

Source: Legrand