Legrand

Combined Ordinary and Extraordinary Meeting of Shareholders, May 31, 2023 - Seite 2

The relevance of the Group’s strategic model is reflected in the large amount of value, both financial and non-financial, that it has created in the last five years: revenue has risen very sharply (by 50%), adjusted operating margin has averaged around 20% of sales, adjusted net profit attributable to the Group has grown 83% and free cash flow is up 49%. The split of value added remained balanced in 2022, with 53% going to employees and 23% to investments in development. Non-financial results were also robust during the period, with negative externalities arising from Legrand’s business activities falling significantly: CO₂ emissions resulting directly from its operations (Scopes 1 & 2) decreased by 34% at current scope. At the same time, gender diversity increased as women made up a greater proportion of the Group’s managers (28.5% at Hay grade 14 or above, and 24.4% at Hay grade 20 or above).

The Group has reiterated its ambitious medium-term financial and non-financial targets⁵, which are fully consistent with its purpose and its strategy of profitable, sustainable and responsible growth.

III. Financial performance and outlook

CFO Franck Lémery then provided details about Legrand’s financial performance and outlook.

The Group’s 2022 results are robust, with organic growth of 9.7%, adjusted operating margin of 20.4%, adjusted net profit attributable to the Group up 26.8% and normalized free cash flow equal to 14.5% of revenue.

Those 2022 achievements are fully in line with Legrand’s model, which combines organic growth, continuing bolt-on acquisitions³ and ongoing improvements in operational performance.

Mr. Lémery described the Group’s shareholder communication arrangements, proposed dividend and share buyback program.

He also reviewed Legrand’s solid results for the first quarter of 2023 and its targets for the current year⁶.

IV. CSR achievements and policy

Virginie Gatin, Executive VP Corporate Social Responsibility, then addressed the Group’s long-standing commitment to CSR, which dates back to 2004, and its practical achievements in this area.

As regards Legrand’s 2022-2024 CSR roadmap, which has four pillars and 15 priorities contributing to ten Sustainable Development Goals (SDGs), the Group’s overall achievement rate was 123% in 2022. In particular, it delivered a 15% year-on-year reduction in CO₂ emissions (Scopes 1 & 2) at current scope, comfortably beating its target for the year.