Legrand presents its 2030 ambitions

LIMOGES, France, September 24, 2024--(BUSINESS WIRE)--Regulatory News:

Legrand (Paris:LR) is hosting a Capital Markets Day in London on September 24, 2024, webcast live.

For the Group, this event is an opportunity to outline the pillars of its intensely value-creating strategic model and announce its ambitions for 2030.

I. Legrand strategic model pillars

Beno?t Coquart (CEO), Franck Lemery (CFO) and Virginie Gatin (EVP CSR) will present Legrand’s unique strategic positioning and assets, which have grown stronger despite the challenges posed by economic trends over the past 5 years.

Strong value creation over 5 years confirms the relevance of a business model built on growth, profitability, and CSR performance.

These results were accompanied by investments for the future that will allow Legrand to make the most of the next economic cycle and the underlying buoyant megatrends shaping its markets (digitalization, electrification, demographics, structural housing shortages…).

II. Paths to 2030 & growth pillars

Group sales are now split between essential infrastructures products (54% of its 2023 revenue) and solutions that support the energy and digital transition (46% of the Group's 2023 revenue, including products for datacenters, energy transition, and digital lifestyles).

Presentations will detail trends, achievements, Legrand's unique offering, and Group priorities in each segment.

Each segment will include a close-up:

• Brian DiBella, CEO of Legrand North & Central America, with a presentation on datacenters on his perimeter,

• Amélie Zegmout, CEO of Legrand Iberia, on challenges and concrete achievements in Spain and Portugal related to energy transition offerings,

• Chris Dodd, CEO of Legrand Care, with a focus on Legrand's positioning and perspectives in assisted living and connected care, which are integral parts of Digital Lifestyles offerings,

• an overview of essential infrastructure products, illustrated by Legrand's positioning in India.

Growth drivers common to each segment will also be addressed: innovation, eco-responsible products, customer experience, digital technology, pricing, and M&A.

III. 2030 ambitions

• Legrand’s 2030 ambitions illustrate the Group's strategy of further accelerating its profitable and responsible growth, with sales in 2030 in a range of €12-15 billion,
  including sales growth excluding the impact of exchange rates of between +6% to +10% in CAGR, with +3% to +5% organic CAGR and +3% to +5% CAGR 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, an average Capex to sales ratio of 3% to 3.5%, and an average working capital requirement ratio of 10% of sales or less,

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

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