Legrand Sa · EURONEXT:LR
Legrand Sa — H1 2024 Earnings Presentation
45 slides from Legrand Sa's earnings presentation, Jul 31, 2024
Slide 1: 2024 First-half results
2024 First-half results July 31, 2024 1
Slide 2: Contents
2024 First-half results Contents 1. Highlights 2. H1 2024 results 3. Accelerating acquisitions strategy 4. Strong product innovation momentum 5. 2024 full-year target unchanged 6. Financial agenda and Corporate access 7. Appendices 2
Slide 3: Highlights
1 Highlights 3
Slide 4: Highlights
Highlights H1 2024 results • Change in sales : -2.0%, i.e. -0.7% excl. FX & Russia • Adjusted operating margin : 20.7% of sales • Net profit attributable to the Group : 13.7% of sales Continued strategy • 5 acquisitions announced since the beginning of the year • Strong product innovation momentum 2
Slide 5: H1 2024 results
¢¢© 2 H1 2024 results 5
Slide 6: Change in net sales
H1 2024 results Change in net sales € millions 4,295 4,210 -2.0% Organic +1.3% -0.9% External : +0.4% (1) Acquisitions Russia -2.0% (2) -0.4% FX H1 2023 H1 2024 -0.7% Organic + acquisitions 1. Based on acquisitions made as well as the effective sale of the Group’s Russian activities at October 4, 20
Slide 7: Organic sales trends by destination
H1 2024 results Organic sales trends by destination EUROPE NORTH & CENTRAL AMERICA REST OF THE WORLD 41.5% OF GROUP 38.9% OF GROUP 19.6% OF GROUP -3.2% 0.0% -3.1% Persistently tough building market UNITED STATES +1.0% ASIA-PACIFIC -4.1% in most countries (35.6% of Group) (12.2% of Group) Q2 solid pe
Slide 8: Adjusted operating margin
H1 2024 results Adjusted operating margin H1 2023 Adjusted operating margin 22.2% Group profitability confirming the ability of Legrand to hold margins high despite a decrease in sales -1.4 pts H1 2024 Adjusted operating margin before acquisitions(1) 20.8% Impact of acquisitions -0.1 pts H1 2024 Adj
Slide 9: Net profit
H1 2024 results Net profit NET PROFIT ATTRIBUTABLE TO THE GROUP €578MM 13.7% of sales Decline in operating profit Negative impact of financial result & FX 27.0% corporate income tax rate 9
Slide 10: Cash generation
H1 2024 results Cash generation FREE CASH FLOW €468MM 11.1% of sales 10
Slide 11: Balance sheet
H1 2024 results Balance sheet NET DEBT TO EBITDA(1) RATIO DEBT STRUCTURE Net debt 1.8x €3.4bn in H1 2024 Gross Debt ~90% fixed rate & 4.8 years maturity €2.1bn available cash 1. Based on EBITDA in the last twelve months 11
Slide 12: Accelerating acquisitions strategy
3 Accelerating acquisitions strategy 12
Slide 13: Accelerating acquisitions strategy
Accelerating acquisitions strategy 5 acquisitions in 2024 totaling ~€210mm annual sales ACQUISITIONS SALES New Zealand specialist of cable management systems >€10mm Dutch software leader in the connected healthcare market >€60mm DATACENTERS Indian specialist in racks, incl. for datacenters ~€10mm Ir
Slide 14: Strong product innovation momentum
4 Strong product innovation momentum 14
Slide 15: Numerous new products launched in H1 2024 (1/2)
Strong product innovation momentum Numerous new products launched in H1 2024 (1/2) ENERGY EFFICIENCY DATACENTERS CONNECTED PRODUCTS DMX³ connected air M70 Critical Cable Bus KNX Mallia Senses circuit breakers Power Monitor DPX³ moulded case Green’Up metering LCS3 OM5 Linkeo DC & LCS3 accIAIM 4-Wires
Slide 16: Numerous new products launched in H1 2024 (2/2)
Strong product innovation momentum Numerous new products launched in H1 2024 (2/2) CORE INFRASTRUCTURE PRODUCTS New Céliane range Seem Sweep 2 Ultra Thin Eco Full Rocker Seano wiring Seem 1 Rev TruTile devices 16
Slide 17: 2024 full-year targets unchanged
5 2024 full-year targets unchanged 17
Slide 18: 2024 full-year targets unchanged
2024 full-year targets unchanged In 2024, the Group is pursuing the profitable and responsible development laid out in its strategic roadmap. Taking into account the world’s current short-term macroeconomic outlook, with confidence in its model for creating integrated value, Legrand has set the foll
Slide 19: Financial agenda & Corporate access
6 Financial agenda & Corporate access 19
Slide 20: Financial agenda
Financial agenda & Corporate access Financial agenda 2025 Q3 2024 FY 2024 2024 CMD GENERAL RELEASE RELEASE ASSEMBLY Sept. 24, 2024 Nov. 7, 2024 May 27, Feb. 13, 2025 2025 8AM - 2PM London 30 Euston Square In presence + webcast 20
Slide 21: 2024 Corporate access calendar
Financial agenda & Corporate access 2024 Corporate access calendar (1) Roadshows & Conferences Date Conference Location Legrand participants Sept. 12, 2024 UBS – Quo Vadis Industrials Virtual IR Team Sept. 25, 2024 Bernstein – Strategic Decisions Conference London Management (CFO) Sept. 25, 2024 Gol
Slide 22: Appendices
Appendices Oilegrand’ 22
Slide 23: Glossary
Appendices Glossary Adjusted operating profit is defined as operating profit adjusted for: i/ amortization and depreciation of revaluation of assets at the time of acquisitions and for other P&L impacts relating to acquisitions, ii/ impacts related to disengagement from Russia (impairment of assets
Slide 24: Change in net sales
Appendices Change in net sales Breakdown of change in H1 2024 net sales by destination (€mm) -56,9 -0,4 -27,4 -84,5 -17,1 17,3 4 294,8 4 210,3 North Rest of Europe & Central the America World (1) +0.4% -2.0% -0.4% -2.0% Scope of Organic growth FX Total consolidation H1 2023 H1 2024 1. Due to the con
Slide 25: 2024 First half – net sales by destination
Appendices 2024 First half – net sales by destination (1) Total Scope of Like-for-Like In € millions H1 2023 H1 2024 Currency Effect Change Consolidation Growth Europe 1,834.9 1,748.9 -4.7% -1.7% -3.2% 0.1% North and Central America 1,636.3 1,638.5 0.1% 0.0% 0.0% 0.1% Rest of the World 823.6 822.9 -
Slide 26: 2024 First quarter – net sales by destination
Appendices 2024 First quarter – net sales by destination (1) Total Scope of Like-for-Like In € millions Q1 2023 Q1 2024 Currency Effect Change Consolidation Growth Europe 941.1 886.0 -5.9% -1.0% -4.7% -0.2% North and Central America 811.6 757.9 -6.6% 0.1% -6.0% -0.8% Rest of the World 396.9 384.3 -3
Slide 27: 2024 Second quarter – net sales by destination
Appendices 2024 Second quarter – net sales by destination (1) Total Scope of Like-for-Like In € millions Q2 2023 Q2 2024 Currency Effect Change Consolidation Growth Europe 893.8 862.9 -3.5% -2.4% -1.5% 0.4% North and Central America 824.7 880.6 6.8% -0.1% 5.8% 1.0% Rest of the World 426.7 438.6 2.8%
Slide 28: 2024 First half – net sales by origin
Appendices 2024 First half – net sales by origin (1) Total Scope of Like-for-Like In € millions H1 2023 H1 2024 Currency Effect Change Consolidation Growth Europe 1,914.2 1,817.3 -5.1% -1.8% -3.4% 0.1% North and Central America 1,666.6 1,659.3 -0.4% 0.1% -0.6% 0.1% Rest of the World 714.0 733.7 2.8%
Slide 29: 2024 First quarter – net sales by origin
Appendices 2024 First quarter – net sales by origin (1) Total Scope of Like-for-Like In € millions Q1 2023 Q1 2024 Currency Effect Change Consolidation Growth Europe 978.2 918.9 -6.1% -1.0% -5.0% -0.2% North and Central America 829.2 767.5 -7.4% 0.1% -6.8% -0.9% Rest of the World 342.2 341.8 -0.1% 6
Slide 30: 2024 Second quarter – net sales by origin
Appendices 2024 Second quarter – net sales by origin (1) Total Scope of Like-for-Like In € millions Q2 2023 Q2 2024 Currency Effect Change Consolidation Growth Europe 936.0 898.4 -4.0% -2.6% -1.8% 0.3% North and Central America 837.4 891.8 6.5% 0.0% 5.4% 1.0% Rest of the World 371.8 391.9 5.4% 7.1%
Slide 31: 2024 First half – P&L
Appendices 2024 First half – P&L In € millions H1 2023 H1 2024 % change Net sales 4,294.8 4,210.3 -2.0% Gross profit 2,267.4 2,214.2 -2.3% as % of sales 52.8% 52.6% Adjusted operating profit 954.7 873.1 -8.5% as % of sales 22.2% 20.7%(1) (i) Amortization & depreciation of revaluation of assets at th
Slide 32: 2024 First quarter – P&L
Appendices 2024 First quarter – P&L In € millions Q1 2023 Q1 2024 % change Net sales 2,149.6 2,028.2 -5.6% Gross profit 1,139.5 1,076.2 -5.6% as % of sales 53.0% 53.1% Adjusted operating profit 477.2 415.9 -12.8% as % of sales 22.2% 20.5%(1) (i) Amortization & depreciation of revaluation of assets a
Slide 33: 2024 Second quarter – P&L
Appendices 2024 Second quarter – P&L In € millions Q2 2023 Q2 2024 % change Net sales 2,145.2 2,182.1 +1.7% Gross profit 1,127.9 1,138.0 +0.9% as % of sales 52.6% 52.2% Adjusted operating profit 477.5 457.2 -4.3% as % of sales 22.3% 21.0%(1) (i) Amortization & depreciation of revaluation of assets a
Slide 34: 2024 First half – adjusted operating profit by region
Appendices 2024 First half – adjusted operating profit before and after other operating income (expense) by geographical region North and H1 2024 Rest of (in € millions) Europe Central Total the World America Net sales 1,817.3 1,659.3 733.7 4,210.3 Cost of sales (810.7) (790.9) (394.5) (1,996.1) Adm
Slide 35: 2023 First half – adjusted operating profit by region
Appendices 2023 First half – adjusted operating profit before and after other operating income (expense) by geographical region North and H1 2023 Rest of (in € millions) Europe Central Total the World America Net sales 1,914.2 1,666.6 714.0 4,294.8 Cost of sales (864.5) (780.6) (382.3) (2,027.4) Adm
Slide 36: 2024 First quarter – adjusted operating profit by region
Appendices 2024 First quarter – adjusted operating profit before and after other operating income (expense) by geographical region North and Q1 2024 Rest of (in € millions) Europe Central Total the World America Net sales 918.9 767.5 341.8 2,028.2 Cost of sales (411.2) (357.3) (183.5) (952.0) Admini
Slide 37: 2023 First quarter – adjusted operating profit by region
Appendices 2023 First quarter – adjusted operating profit before and after other operating income (expense) by geographical region North and Q1 2023 Rest of (in € millions) Europe Central Total 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: 2024 Second quarter – adjusted operating profit by region
Appendices 2024 Second quarter – adjusted operating profit before and after other operating income (expense) by geographical region North and Q2 2024 Rest of (in € millions) Europe Central Total the World America Net sales 898.4 891.8 391.9 2,182.1 Cost of sales (399.5) (433.6) (211.0) (1,044.1) Adm
Slide 39: 2023 Second quarter – adjusted operating profit by region
Appendices 2023 Second quarter – adjusted operating profit before and after other operating income (expense) by geographical region North and Q2 2023 Rest of (in € millions) Europe Central Total 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: 2024 First half – reconciliation of cash flow from operations with profit
Appendices 2024 First half – reconciliation of cash flow from operations with profit In € millions H1 2023 H1 2024 Profit 651.0 577.7 Depreciation, amortization and impairment 175.5 179.2 Changes in other non-current assets and liabilities and long-term deferred taxes 26.2 38.8 Unrealized exchange (
Slide 41: 2024 First half – reconciliation of free cash flow
Appendices 2024 First half – reconciliation of free cash flow and normalized free cash flow with cash flow from operations In € millions H1 2023 H1 2024 % change Cash flow from operations 863.3 804.4 -6.8% as % of sales 20.1% 19.1% Decrease (Increase) in working capital requirement 29.4 (258.1) Net
Slide 42: Scope of consolidation (1/2)
Appendices Scope of consolidation (1/2) 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 43: Scope of consolidation (2/2)
Appendices Scope of consolidation (2/2) 2024 Q1 H1 9M FY Full consolidated method VOLTADIS 3 months 6 months 9 months 12 months A. & H. MEYER 3 months 6 months 9 months 12 months POWER CONTROL 3 months 6 months 9 months 12 months ENCELIUM 3 months 6 months 9 months 12 months CLAMPER 3 months 6 month
Slide 44: Investor Relations 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 44
Slide 45: 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