Legrand Sa · EURONEXT:LR
Legrand Sa — Q3 2023 Earnings Presentation
48 slides from Legrand Sa's earnings presentation, Nov 8, 2023
Slide 1: 2023 Nine-month results
2023 Nine-month results November 8, 2023 1
Slide 2: Contents
2023 Nine-month results Contents 1. Highlights 2. Sales trends 3. Solid financial performance 4. Dynamic external growth in buoyant segments 5. 2023 full-year target specified 6. 2023 & 2024 Corporate access 7. Appendices 2
Slide 3: Highlights
1 Highlights 3
Slide 4: Highlights: €1.2bn, i.e. 19.2% of sales
Highlights Very solid results in a building market in retreat • Growth in sales : +2.5%, i.e. +5.8% excl. FX & Russia • Adjusted operating margin : 21.6% of sales • Rise in EPS : +15.9% • Free cash flow : €1.2bn, i.e. 19.2% of sales Dynamic external growth in buoyant segments • 4 acquisitions announ
Slide 5: Sales trends
Olegrand’ Sales trends
Slide 6: 9M 2023 change in net sales
Sales trends 9M 2023 change in net sales € millions 6,307 +3.7% Organic 6,154 (1) External , of which +1.3% • +2.1% acquisitions • -0.7% Russia +2.5% (2) -2.4% FX 9M 2022 9M 2023 1. Based on acquisitions made and their likely dates of consolidation, as well as the effective sale of the Group’s Russi
Slide 7: 9M 2023 sales, organic trends by destination
Sales trends 9M 2023 sales, organic trends by destination EUROPE NORTH & CENTRAL AMERICA REST OF THE WORLD 41.9% OF GROUP 38.9% OF GROUP 19.2% OF GROUP +7.1% -0.9% +6.2% • Strong growth in energy efficiency, UNITED STATES (35.4% of Group) -1.6% ASIA-PACIFIC (12.6% of Group) +7.4% datacenters and con
Slide 8: Solid financial performance
3 Solid financial performance 8
Slide 9: 9M 2023 adjusted operating margin
Solid financial performance 9M 2023 adjusted operating margin 9M 2022 Adjusted operating margin 20.2% High profitability level demonstrating Legrand’s strong +1.7 pts resilience in a building market environment in retreat 9M 2023 Adjusted operating margin before acquisitions & Russia(1) 21.9% Impact
Slide 10: Value creation in 9M 2023
Solid financial performance Value creation in 9M 2023 NET PROFIT + EPS FREE CASH FLOW ▪ EARNINGS PER SHARE €3.53 (+15.9%) ▪ CASH FLOW FROM OPERATIONS €1,267MM (+9.6%) ▪ FREE CASH FLOW €1,214MM, 19.2% of sales ▪ NET PROFIT ATTRIBUTABLE TO THE GROUP Strengthened coverage of inventories, expected €937M
Slide 11: Balance sheet structure
Solid financial performance Balance sheet structure NET DEBT TO EBITDA(1) RATIO DEBT STRUCTURE Net debt <€2.2bn 1.1x Gross Debt: >90% at fixed rate in 9M 2023 & 4.4 years maturity €3.2bn available cash 1. Based on EBITDA in the last twelve months. 11
Slide 12: Dynamic external growth in buoyant segments
4 Dynamic external growth in buoyant segments 12
Slide 13: Dynamic external growth in buoyant segments (1/2)
Dynamic external growth in buoyant segments (1/2) ZPE Systems A CQUISITION (1) ZPE S YSTEMS • Leading American specialist in serial console servers (remote access and management of equipment in datacenters) • A promising and highly complementary new segment within datacenters • Fremont, US >$80 mill
Slide 14: Dynamic external growth in buoyant segments (2/2)
Dynamic external growth in buoyant segments (2/2) 4 acquisitions announced in 2023 SALES US player in highly energy efficient lighting for commercial buildings >$20mm Brazilian leader in surge protection devices (photovoltaic) ~€40mm Chilean specialist in UPS used in datacenters and infrastructure ~
Slide 15: 2023 full-year targets specified
5 ¢¢© 2023 full-year targets specified ¢¢© 15
Slide 16: 2023 full-year targets specified
2023 full-year targets specified (1) In 2023, the Group is pursuing the profitable and responsible development laid out in its strategic roadmap. Taking into account achievements reported in the first nine months of the year and the world’s current short- term macroeconomic outlook, Legrand has now
Slide 17: 2023 & 2024 Corporate access
6 2023 & 2024 Corporate access 17
Slide 18: FY 2023 roadshows
2023 & 2024 Corporate access (1) FY 2023 - ROADSHOWS Date Broker Location Legrand participants Feb. 16, 2024 Société Générale Paris Management (C-suite) Feb. 19 & 20, 2024 Goldman Sachs London Management (C-suite) Feb. 21, 2024 BNPP Exane Frankfurt Management (C-suite) Feb. 21, 2024 BNPP Exane NYC M
Slide 19: 2023 conferences
2023 & 2024 Corporate access (1) 2023 CONFERENCES Date Conference Location Legrand participants Nov. 29, 2023 CIC Forum by Market Solutions Paris IR Team Nov. 30, 2023 Société Générale – Premium review Paris Management (C-suite) Dec. 5, 2023 Goldman Sachs – Annual Industrials London IR team 1. Plann
Slide 20: Appendices
Appendices Oilegrand’ 20
Slide 21: Glossary
Appendices Glossary Adjusted operating profit is defined as operating profit adjusted for amortization and depreciation of revaluation of assets at the time of acquisitions and for other P&L impacts relating to acquisitions and, where applicable, for impairment of goodwill. Busways are electric powe
Slide 22: Change in net sales
Appendices Change in net sales Breakdown of change in 9M 2023 net sales by destination (€mm) 172,8 -21,8 75,5 -154,6 81,7 153,6 6 153,7 6 307,3 North Rest of Europe & Central the America World (1) +1.3% +3.7% -2.4% +2.5% Scope of Organic growth FX Total consolidation 9M 2022 9M 2023 1. Due to the co
Slide 23: Nine months – net sales by destination
Appendices 2023 Nine months – net sales by destination (1) Total Scope of Like-for-Like In € millions 9M 2022 9M 2023 Currency Effect Change Consolidation Growth Europe 2,443.5 2,639.5 8.0% 2.3% 7.1% -1.4% North and Central America 2,501.9 2,456.1 -1.8% 0.7% -0.9% -1.7% Rest of the World 1,208.3 1,2
Slide 24: First quarter – net sales by destination
Appendices 2023 First quarter – net sales by destination (1) Total Scope of Like-for-Like In € millions Q1 2022 Q1 2023 Currency Effect Change Consolidation Growth Europe 845.9 941.1 11.3% 1.9% 10.7% -1.4% North and Central America 748.1 811.6 8.5% 0.1% 3.5% 4.7% Rest of the World 378.3 396.9 4.9% 0
Slide 25: Second quarter – net sales by destination
Appendices 2023 Second quarter – net sales by destination (1) Total Scope of Like-for-Like In € millions Q2 2022 Q2 2023 Currency Effect Change Consolidation Growth Europe 853.9 893.8 4.7% 2.7% 3.1% -1.1% North and Central America 849.7 824.7 -2.9% 1.2% -2.3% -1.9% Rest of the World 416.5 426.7 2.4%
Slide 26: Third quarter – net sales by destination
Appendices 2023 Third quarter – net sales by destination (1) Total Scope of Like-for-Like In € millions Q3 2022 Q3 2023 Currency Effect Change Consolidation Growth Europe 743.7 804.6 8.2% 2.3% 7.6% -1.7% North and Central America 904.1 819.8 -9.3% 0.7% -3.2% -7.0% Rest of the World 413.5 388.1 -6.1%
Slide 27: Nine months – net sales by origin
Appendices 2023 Nine months – net sales by origin (1) Total Scope of Like-for-Like In € millions 9M 2022 9M 2023 Currency Effect Change Consolidation Growth Europe 2,561.2 2,757.5 7.7% 2.4% 6.6% -1.4% North and Central America 2,537.4 2,497.6 -1.6% 0.5% -0.4% -1.7% Rest of the World 1,055.1 1,052.2
Slide 28: First quarter – net sales by origin
Appendices 2023 First quarter – net sales by origin (1) Total Scope of Like-for-Like In € millions Q1 2022 Q1 2023 Currency Effect Change Consolidation Growth Europe 880.8 978.2 11.1% 1.9% 10.5% -1.4% North and Central America 759.7 829.2 9.1% 0.0% 4.2% 4.7% Rest of the World 331.8 342.2 3.1% 0.0% 6
Slide 29: Second quarter – net sales by origin
Appendices 2023 Second quarter – net sales by origin (1) Total Scope of Like-for-Like In € millions Q2 2022 Q2 2023 Currency Effect Change Consolidation Growth Europe 897.9 936.0 4.2% 2.8% 2.5% -1.1% North and Central America 861.4 837.4 -2.8% 1.0% -1.9% -1.9% Rest of the World 360.8 371.8 3.0% 0.8%
Slide 30: Third quarter – net sales by origin
Appendices 2023 Third quarter – net sales by origin (1) Total Scope of Like-for-Like In € millions Q3 2022 Q3 2023 Currency Effect Change Consolidation Growth Europe 782.5 843.3 7.8% 2.5% 6.9% -1.6% North and Central America 916.3 831.0 -9.3% 0.5% -2.9% -7.1% Rest of the World 362.5 338.2 -6.7% 0.4%
Slide 31: Nine months – P&L
Appendices 2023 Nine months – P&L In € millions 9M 2022 9M 2023 % change Net sales 6,153.7 6,307.3 +2.5% Gross profit 3,044.1 3,303.1 +8.5% as % of sales 49.5% 52.4% Adjusted operating profit 1,240.3 1,363.5 +9.9% as % of sales 20.2% 21.6%(1) (i) Amortization & depreciation of revaluation of assets
Slide 32: First quarter – P&L
Appendices 2023 First quarter – P&L In € millions Q1 2022 Q1 2023 % change Net sales 1,972.3 2,149.6 +9.0% Gross profit 978.6 1,139.5 +16.4% as % of sales 49.6% 53.0% Adjusted operating profit 401.2 477.2 +18.9% as % of sales 20.3% 22.2%(1) (i) Amortization & depreciation of revaluation of assets at
Slide 33: Second quarter – P&L
Appendices 2023 Second quarter – P&L In € millions Q2 2022 Q2 2023 % change Net sales 2,120.1 2,145.2 +1.2% Gross profit 1,054.4 1,127.9 +7.0% as % of sales 49.7% 52.6% Adjusted operating profit 436.6 477.5 +9.4% as % of sales 20.6% 22.3%(1) (i) Amortization & depreciation of revaluation of assets a
Slide 34: Third quarter – P&L
Appendices 2023 Third quarter – P&L In € millions Q3 2022 Q3 2023 % change Net sales 2,061.3 2,012.5 -2.4% Gross profit 1,011.1 1,035.7 +2.4% as % of sales 49.1% 51.5% Adjusted operating profit 402.5 408.8 +1.6% as % of sales 19.5% 20.3%(1) (i) Amortization & depreciation of revaluation of assets at
Slide 35: Nine months – adjusted operating profit by geographical region
Appendices 2023 Nine months – adjusted operating profit before and after other operating income (expense) by geographical region North and 9M 2023 Rest of Europe Central Total (in € millions) the World America Net sales 2,757.5 2,497.6 1,052.2 6,307.3 Cost of sales (1,262.3) (1,175.3) (566.6) (3,004
Slide 36: 2022 Nine months – adjusted operating profit by geographical region
Appendices 2022 Nine months – adjusted operating profit before and after other operating income (expense) by geographical region North and 9M 2022 Rest of Europe Central Total (in € millions) the World America Net sales 2,561.2 2,537.4 1,055.1 6,153.7 Cost of sales (1,205.1) (1,306.0) (598.5) (3,109
Slide 37: First quarter – adjusted operating profit by geographical region
Appendices 2023 First quarter – adjusted operating profit before and after other operating income (expense) by geographical region North and Q1 2023 Rest of Europe Central Total (in € millions) the World America Net sales 978.2 829.2 342.2 2,149.6 Cost of sales (436.6) (389.6) (183.9) (1,010.1) Admi
Slide 38: 2022 First quarter – adjusted operating profit by geographical region
Appendices 2022 First quarter – adjusted operating profit before and after other operating income (expense) by geographical region North and Q1 2022 Rest of Europe Central Total (in € millions) the World America Net sales 880.8 759.7 331.8 1,972.3 Cost of sales (408.2) (398.9) (186.6) (993.7) Admini
Slide 39: Second quarter – adjusted operating profit by geographical region
Appendices 2023 Second quarter – adjusted operating profit before and after other operating income (expense) by geographical region North and Q2 2023 Rest of Europe Central Total (in € millions) the World America Net sales 936.0 837.4 371.8 2,145.2 Cost of sales (427.9) (391.0) (198.4) (1,017.3) Adm
Slide 40: 2022 Second quarter – adjusted operating profit by geographical region
Appendices 2022 Second quarter – adjusted operating profit before and after other operating income (expense) by geographical region North and Q2 2022 Rest of Europe Central Total (in € millions) the World America Net sales 897.9 861.4 360.8 2,120.1 Cost of sales (415.2) (445.2) (205.3) (1,065.7) Adm
Slide 41: Third quarter – adjusted operating profit by geographical region
Appendices 2023 Third quarter – adjusted operating profit before and after other operating income (expense) by geographical region North and Q3 2023 Rest of Europe Central Total (in € millions) the World America Net sales 843.3 831.0 338.2 2,012.5 Cost of sales (397.8) (394.7) (184.3) (976.8) Admini
Slide 42: 2022 Third quarter – adjusted operating profit by geographical region
Appendices 2022 Third quarter – adjusted operating profit before and after other operating income (expense) by geographical region North and Q3 2022 Rest of Europe Central Total (in € millions) the World America Net sales 782.5 916.3 362.5 2,061.3 Cost of sales (381.7) (461.9) (206.6) (1,050.2) Admi
Slide 43: Nine months – reconciliation of cash flow from operations with profit
Appendices 2023 Nine months – reconciliation of cash flow from operations with profit In € millions 9M 2022 9M 2023 Profit 812.0 937.5 Depreciation, amortization and impairment 249.7 260.3 Changes in other non-current assets and liabilities and long-term deferred taxes 92.5 51.6 Unrealized exchange
Slide 44: Nine months – reconciliation of free cash flow and normalized free cash flow
Appendices 2023 Nine months – reconciliation of free cash flow and normalized free cash flow with cash flow from operations In € millions 9M 2022 9M 2023 % change Cash flow from operations 1,155.8 1,267.3 +9.6% as % of sales 18.8% 20.1% Decrease (Increase) in working capital requirement (438.5) 79.5
Slide 45: Scope of consolidation (1/2)
Appendices Scope of consolidation (1/2) 2022 Q1 H1 9M FY Full consolidated method GEIGER Balance sheet only 6 months 9 months 12 months EMOS Balance sheet only Balance sheet only Balance sheet only 9 months USYSTEMS Balance sheet only Balance sheet only 7 months VOLTADIS Balance sheet only Balance s
Slide 46: Scope of consolidation (2/2)
Appendices Scope of consolidation (2/2) 2023 Q1 H1 9M FY Full consolidated method GEIGER 3 months 6 months 9 months 12 months EMOS 3 months 6 months 9 months 12 months USYSTEMS 3 months 6 months 9 months 12 months VOLTADIS Balance sheet only 6 months 9 months 12 months A. & H. MEYER Balance sheet on
Slide 47: Investor and press relations contacts
INVESTOR RELATIONS LEGRAND Ronan MARC Tel: +33 (0)1 49 72 53 53 ronan.marc@legrand.com PRESS RELATIONS TBWA Corporate Tiphaine Raffray Mob: +33 (0)6 58 27 78 98 tiphaine.raffray@tbwa-corporate.com 47
Slide 48: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein