Legrand steps up the deployment of its digital
offer, building on two pillars:
Its Eliot program for connected products and
its digital infrastructure offering
Regulatory News:
Today, June 12, 2019, Legrand (Paris:LR) is organizing an
investor day in Paris with the participation of its entire
Executive Committee and its specialists in connected products and
digital infrastructure. It will be an opportunity for Legrand to
come back on Eliot program’s very good showings at year-end 2018
and Netatmo’s contribution to developing the Group’s connected
offering, while announcing new Eliot targets for 2022. Legrand also
plans to continue to grow its leadership positions in digital
infrastructure (notably in datacenters), a key field in deploying
connected objects in buildings.
Eliot program: very good showings at
year-end 2018, reinforcement with the arrival of Netatmo and
announcement of new targets
From 2014 to 2018, Legrand raised its sales of connected
products by 28%1 a year and doubled its number of connected product
families to over 402 by the end of 2018—hence reaching the targets
it had set two years early. Eliot products already account for over
10% of Legrand sales.
Legrand has thus successfully developed a connected offer with
higher value in use for:
- first, commercial buildings (64% of
connected product sales in 2018), with, in particular, intelligent
PDUs3, emergency lighting ranges and UPS4 systems, and
- second, residential buildings (36% of
connected product sales in 2018), including notably ranges of user
interfaces, door-entry systems, thermostats and assisted living
solutions.
Building on these achievements, and buoyed by the arrival of
Netatmo, whose digital know-how is strengthening Group set-up,
Legrand is setting ambitious new targets5 for its Eliot
program:
- double-digit average annual organic6
growth in sales for connected products from 2018 to 20227; and
- over one billion euros in sales
generated by connected products in 2022, excluding acquisitions and
exchange-rate effects.
______________________
1 Includes external growth and effect of exchange rates.2
Including Netatmo (not consolidated in 2018 sales).3 PDU: Power
Distribution Unit.4 UPS: Uninterruptible Power Supply.5 Excluding
any major economic slowdown.6 At constant scope of consolidation
and exchange rates.7 Based on 2018 sales of €690m including sales
of Netatmo and Shenzhen Clever Electronic for 12 months.
Digital infrastructure: ongoing
development of leadership positions in a key field for IoT
deployment
Digital infrastructure (products and solutions for datacenters,
LAN1 and audio-video) is critical to the deployment of IoT:
increase in storage needs, rise in data exchanges linked to
connected products in buildings, and increase in IP-carried
audio-video traffic.
Over the past 10 years, Legrand has thus multiplied the share of
its sales of digital infrastructure products by more than four,
from just below 5% of its 2008 sales to 20% in 2018, or
around €1.2bn.
This sustained growth—driven by the steady launch of innovative
products such as the LCS3 program, and the acquisition of 16
front-running companies—has led to many local leadership positions
in solutions for LAN1, datacenters, and audio-video applications.
As a result, in 2018, 77% of Legrand’s digital infrastructure sales
were generated by products ranked #1 or #2 in their market.
Buoyed by IoT megatrends, Legrand plans to pursue its growth in
digital infrastructure. In particular, the Group will continue to
expand its presence in datacenters, which already accounted for
nearly 10%2 of its sales in 2018. The Group has notably solid
positions in North and Central America, where it has a
comprehensive, customized offering for white rooms.
-----------------
_____________________________
1 LAN: Local Area Network.2 2018 proforma figures, including 12
months of sales of acquisitions made in 2018 and of Universal
Electric Corporation.
KEY FINANCIAL DATES:
- 2019 first-half results: July 30,
2019“Quiet period1” starts June 30, 2019
- 2019 nine-month results: November 7,
2019“Quiet period1” starts October 8, 2019
ABOUT LEGRAND
Legrand is the global specialist in electrical and digital
building infrastructures. Its comprehensive offering of solutions
for commercial, industrial and residential markets makes it a
benchmark for customers worldwide. Drawing on an approach that
involves all teams and stakeholders, Legrand is pursuing its
strategy of profitable and sustainable growth driven by
acquisitions and innovation, with a steady flow of new
offerings—including Eliot* connected products with enhanced value
in use. Legrand reported sales of close to €6 billion in 2018. The
company is listed on Euronext Paris and is notably a component
stock of the CAC 40 index.(code ISIN
FR0010307819)https://www.legrand.com
*Eliot is a program launched in 2015 by Legrand to speed up
deployment of the Internet of Things in its offering. A result of
the group’s innovation strategy, Eliot aims to develop connected
and interoperable solutions that deliver lasting benefits to
private individual users and professionals.
https://www.legrand.com/EN/eliot-program_13238.html
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 Legrand Registration
Document filed with the Autorité des marchés financiers (Financial
Markets Authority, AMF), which is available on-line on the websites
of both AMF (www.amf-france.org) and Legrand (www.legrand.com).
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 shares in any
jurisdiction.
__________________________
1 Period of time when all communication is suspended in the
run-up to publication of results.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190611005902/en/
Investor relationsLegrandFrançois PoissonTel: +33 (0)1 49
72 53 53francois.poisson@legrand.fr
Press relationsPublicis ConsultantsVilizara LazarovaTel:
+33 (0)1 44 82 46 34Mob: +33 (0)6 26 72 57
14vilizara.lazarova@consultants.publicis.fr
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