Slide 1: 2010 first-quarter results
2010 first-quarter results May 6, 2010
Slide 2: Contents
Contents Highlights 3 2010 first-quarter results 4 to 11 Drivers for medium-term profitable growth 12 to 21 Appendices 22 2010 Q1 results 2
Slide 3: Highlights
Highlights 2010 first-quarter results Performance in emerging countries Ongoing success of new products 2010 adjusted operating margin target raised to over 18% Drivers for medium-term profitable growth Replicating our efficient business model in emerging countries Promising opportunitie
Slide 4: Rise in Net Sales
Rise in Net Sales Net sales (in € millions) 901 912 2010 0.5% like-for-like(1) growth First-quarter 13.4% rise in emerging results +1.1% countries Success of new products Change in the scope of Q1 2009 Q1 2010 consolidation: +0.2%(2) FX effect: +0.4% 1. Like-for-like: at constant scope of
Slide 5: Rise in Net Sales by region
Rise in Net Sales France: €227m Group total: €912m -3.9% LFL(1) +1.1% - Good performance in wiring devices, +0.5% LFL (1) notably Celiane - Success of new LCS2 digital interconnection solutions 2010 USA & Canada: €125m - Steady level of renovation activities First-quarter +1.4% LFL(1) partly
Slide 6: Rise in Net Sales: new product launches
Rise in Net Sales 2009 – 2010 launches of new products, including: Control and command Energy distribution Arteor Mallia Worksite 2010 DMX3 combined units First-quarter results Digital Lighting Nereya Management Voice data image Cable management LCS2 Btnet GTL Viadis Logix 2010 Q1 results 6
Slide 7: Breakdown of change in first-quarter net sales
Rise in Net Sales Breakdown of change in 2010 first-quarter net sales (in € millions) 2010 -1.5 +29.8 +3.9 +1.7 +10.3 -9.3 -16.2 +1.9 First-quarter results France Italy Rest of Europe USA- Rest of +1.1% Canada World Total 901.4 +0.5% 911.7 Like-for-like(1) change +0.4% +0.2% FX Scope of consolidatio
Slide 8: Strong Increase in Adjusted Operating Income
Strong Increase in Adjusted Operating Income Adjusted(1) operating income (in € millions and as % of sales) Steep improvement resulted from, by descending order of importance: Strong performance for operating costs 2010 First-quarter 20.5% Full impact of reorganization already results deployed 1
Slide 9: Strong Increase in Adjusted Operating Income (table)
Strong Increase in Adjusted Operating Income In € millions Q1 2009 Q1 2010 % change Net sales 901.4 911.7 1.1% Gross profit 467.5 500.7 7.1% As % of sales 51.9% 54.9% Maintainable(1) adjusted(2) operating income 143.2 196.2 2010 As % of sales 15.9% 21.5% First-quarter results Restructuring charges (
Slide 10: Robust Cash Generation
Robust Cash Generation Free cash flow (in € millions and as % of sales) 10.3% 2010 First-quarter results Good generation of cash from operating activities 94 Low working capital requirement(1) 0.1% 1 Q1 2009 Q1 2010 1. Although this has risen gradually and which the group aims to limit to 11% of
Slide 11: Robust Cash Generation (table)
Robust Cash Generation In € millions Q1 2009 Q1 2010 % change (1) Cash flow from operations 103.3 155.4 50.4% 2010 As % of sales 11.5% 17.0% First-quarter Change in working capital requirement (82.6) (44.0) -46.7% results Net cash provided by operating activities 20.7 111,4 As % of sales 2.3% 12.2%
Slide 12: Significant Drivers for Medium-Term Profitable Growth
Significant Drivers for Medium-Term Profitable Growth Replicating our efficient business model in emerging countries Drivers for medium-term profitable growth Promising opportunities for electrical and digital building infrastructures 2010 Q1 results 12
Slide 13: Efficient Business Model
Efficient Business Model Organic growth Acquisitions Drivers for medium-term profitable growth Market share Profitability 2010 Q1 results 13
Slide 14: Replicating Legrand Business Model in Emerging Countries with Success
Replicating Legrand Business Model in Emerging Countries with Success Organic growth strategy €210M of sales acquired in innovation emerging countries since 2005 effective segmentation of ranges 90% with #1 market positive mix position Drivers for medium-term profitable growth In emerging countries,
Slide 15: Promising Opportunities for Electrical and Digital Building Infrastructures
Promising Opportunities for Electrical and Digital Building Infrastructures Opportunities for today Opportunities for tomorrow Energy efficiency Buildings alone account Drivers for for medium-term profitable 40% growth Ageing of the population of all energy used 4-fold increase in world population o
Slide 16: Energy Efficiency – A Comprehensive Offering Addressing All Needs in Buildings
Energy Efficiency – A Comprehensive Offering Addressing All Needs in Buildings Temperature management Solar-cell protection & mgmt Consumption monitoring Up to 12% savings Secured operation Energy on heating. of commercial and consumption residential solar display system: up installations. to 15% sa
Slide 17: Energy Efficiency – A Comprehensive Offering Addressing All Needs in Buildings
Energy Efficiency – A Comprehensive Offering Addressing All Needs in Buildings Compensation of reactive energy Measurement devices Savings: Savings: • €1,128 per year • €799 per year • 1.6 T of CO2 per year • 1,000 kg of CO2 per year • ROI within 2 years • ROI within 16 months Drivers for medium-ter
Slide 18: Energy Efficiency – Bright Prospects and a Rising Contribution
Energy Efficiency – Bright Prospects and a Rising Contribution Sales of energy efficient solutions as % of total sales 6.4% Drivers for medium-term profitable 3.0% growth CAGR 13% 1999 2009 2010 Q1 results 18
Slide 19: Communication and Connectivity – A Comprehensive Offering
Communication and Connectivity – A Comprehensive Offering Addressing All Needs in Building Communication Metering Phone and data Measuring and networks, door entry monitoring energy system, IP protocol, consumption. etc. Drivers for medium-term profitable growth Safety Infrastructure Access control,
Slide 20: Communication and Connectivity – Bright Prospects and a Rising Contribution
Communication and Connectivity – Bright Prospects and a Rising Contribution Sales of digital infrastructures as % of total group sales 13%(1) Drivers for medium-term profitable 8% growth CAGR 9% 1999 2009 1. 22% including home systems, smart lighting management etc. 2010 Q1 results 20
Slide 21: Ageing of World Population – Addressing Future Needs
Ageing of World Population – Addressing Future Needs Preventing falls Lighting Luminous Automatic path switch switch Drivers for medium-term Preventing home risks profitable growth Gas detector Smoke detector Flood detector Hand-free monitoring Contactless Hand-free switch door entry Easy-fit
Slide 22: Appendices
n wo a Oo c o om oe <
Slide 23: 2010 First Quarter – Net Sales by Destination
2010 First Quarter – Net Sales by Destination (1) Total Scope of Like-for-Like (€M) Q1 2009 Q1 2010 Currency Effect Change Consolidation Growth France 235.9 226.5 -4.0% -0.1% -3.9% 0.0% Italy 161.6 160.2 -0.9% 0.0% -0.9% 0.0% Rest of (2) 183.6 172.5 -6.0% 0.7% -8.8% 2.3% Europe USA/Canada 130.8 125.
Slide 24: 2010 First Quarter – Net Sales by Origin
2010 First Quarter – Net Sales by Origin (1) Total Scope of Like-for-Like (€M) Q1 2009 Q1 2010 Currency Effect Change Consolidation Growth France 260.0 253.7 -2.4% 0.4% -2.8% 0.0% Italy 173.4 168.7 -2.7% -0.2% -2.5% 0.0% Rest of (2) 170.4 166.1 -2.5% 2.4% -7.0% 2.4% Europe USA/Canada 132.5 128.4 -3.
Slide 25: Reconciliation of Cash-Flow From Operations with Net Profit
Reconciliation of Cash-Flow From Operations with Net Profit In € millions Q1 2009 Q1 2010 Net Profit 56.7 90.9 Depreciation & Amortization 47.9 45.0 Change in other non-current assets and liabilities and deferred tax (1.0) 0.9 Exchange (gains)/losses net 3.3 17.5 (Gains)/losses on fixed asset dispos
Slide 26: Disclaimer
Disclaimer This document has been prepared by Legrand S.A. (“Legrand”) solely for use at its meeting with investors held on May 6, 2010. This document must be treated confidentially by attendees at such presentation and may not be reproduced or redistributed to any other person. No representation or