Legrand

Combined Ordinary and Extraordinary Meeting of Shareholders of May 25, 2022 Report - Seite 2

Benoît Coquart added that Legrand has historically taken an integrated view of its performance, with an exemplary and ambitious ESG approach supported by its management processes and compensation arrangements for managers and executives.

He went on to say that the Group had set ambitious medium-term financial and non-financial targets⁵, which are fully in tune with its strategy of profitable, sustainable and responsible growth as well as its corporate purpose.

III. Financial performance and outlook

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

In full-year 2021, Legrand achieved record results, with organic growth of +13.6%, adjusted operating margin of 20.5% of sales, net income up +32.8% and normalized free cash flow of €1.1 billion.

He also said that performance over two years (2020 and 2021 combined) was in line with all of the Group’s medium-term financial targets (in terms of growth, margins and cash flow), before giving details of Legrand’s solid results in the first quarter of 2022 and its targets for the current year⁶.

IV. CSR achievements and policy

Virginie Gatin, Executive Vice-President Corporate Social Responsibility, presented the positive impact of Legrand’s historical CSR commitments over the long run (2011-2021).

Between 2019 and 2021, the Group’s solid non-financial performance was reflected by an achievement rate of 131% for the targets of its fourth CSR roadmap, including an employee engagement rate of 80%, a steep rise from 2017.

Legrand has set ambitious targets for both the long term (aiming to be carbon neutral by 2050) and the medium term, to be achieved by 2030 (carbon trajectory validated by the SBTi⁷, diversity, and revenue generated from environmentally responsible products).

In the short term, the fifth CSR roadmap for 2022-2024 is a new milestone through which Legrand intends to increase its impact in four areas (carbon, circular economy, diversity & inclusion and responsibility) and through 15 priorities⁸, helping to achieve the UN’s 10 Sustainable Development Goals (SDGs).

V. Governance and compensation

Michel Landel, Lead Director and Chairman of the Nomination and Governance Committee, commented on changes to the composition of the Board of Directors. He then presented the process for assessing the Board’s operating procedures as well as its activities and those of its specialized Committees in 2021.