Slide 1: 2010 Half-Year Results
2010 Half-Year Results July 29, 2010
Slide 2: Contents
Contents Highlights 3 2010 Half-year results 4 to 9 A business model with two growth drivers 10 to 20 Appendices 21 to 29 2010 H1 results 2
Slide 3: Highlights
Highlights Strong growth in emerging markets Continuing acquisitions Target for 2010 full-year adjusted operating margin raised again, to over 19% 2010 H1 results 3
Slide 4: Net Sales
Net Sales € millions 1,910 1,812 Strong growth in emerging 2010 countries (+17.4% reported) Half-Year Results +5.4% reported Growing business segments such i.e. +3.1% LFL(1) as energy efficiency Success of new products H1 2009 H1 2010 Favorable calendar effect and low basis for comparison 1.
Slide 5: Breakdown of Sales by Geographical Market
Breakdown of Sales by Geographical Market France: €475m Group total: €1,910m -0.1% LFL(1) +5.4% reported - Good showing for wiring devices +3.1% LFL (1) - Success of LCS2 solutions for digital infrastructure USA & Canada: €275m - Resilience of sales on renovation markets 2010 - Favorable calen
Slide 6: Breakdown of Change in 2010 Half-Year Net Sales
Breakdown of Change in 2010 Half-Year Net Sales In € millions 49.6 39.3 3.3 98.0 -0.3 6.8 -15.4 14.7 France Italy Rest of USA- Rest of +5.4% Europe Canada World Total 2010 Half-Year Results +3.1% Like-for-like(1) change 1,910.1 1,812.1 +2.1% +0.2% FX Scope of consolidation H1 2009 H1 2010 2010 H1 re
Slide 7: Strong Increase in Adjusted Operating Income
Strong Increase in Adjusted(1) Operating Income in € millions and as % of sales Marked improvement resulting from: 20.9% 2010 Half-Year Strong performance for operating costs Results 15.3% Full impact of reorganization already deployed 400 Leverage from sales growth 277 +44% Overall producti
Slide 8: Strong Increase in Adjusted Operating Income
Strong Increase in Adjusted Operating Income In € millions H1 2009 H1 2010 % change Net Sales 1,812.1 1,910.1 5.4% Gross Profit 939.6 1 052.8 12.0% As % of sales 51.9% 55.1% (1) (2) Maintainable adjusted operating income 306.6 421.2 37.4% 2010 As % of sales 16.9% Half-Year 22.1% Results Restructurin
Slide 9: Strong Cash Generation and Financial Flexibility
Strong Cash Generation and Financial Flexibility Strong free cash flow generation (in € millions and as % of sales) 14.9% 11.5% 284 208 2010 Half-Year H1 2009 H1 2010 Results Ample resources to Decline in net debt (€ millions) finance organic and acquisition- driven growth 1,781 - 482 1,299 H1 2009
Slide 10: A Business with Two Growth Drivers
A Business with Two Growth Drivers Organic growth Acquisitions A Business with Two Growth Drivers Market share Profitability 2010 H1 results 10
Slide 11: A Business with Two Growth Drivers
A Business with Two Growth Drivers Organic growth Acquisitions A Business with Two Growth Drivers Market share Profitability 2010 H1 results 11
Slide 12: Robust Growth Drivers 1/2: Emerging Countries
Robust Growth Drivers 1/2 Emerging Countries +17% reported A Business with Eastern Golf Mansion (China) Two Growth equipped with Legrand video Drivers French Pavilion equipped with Arteor door-entry system at Expo 2010 in Shanghai Irene beauty shop (Russia) equipped with 2010 H1 results 12 Axolute
Slide 13: Robust Growth Drivers 2/2: Energy Efficiency
Robust Growth Drivers 2/2 Energy efficiency +8% reported (1) A Business with Two Growth Drivers Picard frozen-food stores in France equipped with Alpes Technologies capacitor banks Oxygene Tower in Lyon, France equipped with ECO² ultrasonic detectors Climateworks Foundation headquarters (US) equip
Slide 14: Organic Growth: Innovation and Return to Global Market Expansion
Organic Growth Innovation 4 to 5% of sales invested in R&D About 1800 employees dedicated to R&D A Business 67% of capex spent on new with products Return to global Two Growth Drivers New product launches market expansion Market share gains in particular in India, Arteor Digital lighting
Slide 15: A Business with Two Growth Drivers
A Business with Two Growth Drivers Organic growth Acquisitions A Business with Two Growth Drivers Market share Profitability 2010 H1 results 15
Slide 16: Legrand's Acquisition Strategy
Legrand’s Acquisition Strategy Significant contribution to growth Around €700m(1) in A Business with sales acquired since 2005 Two Growth Drivers Preference for Emerging countries Fast-growing businesses Rounding out Legrand’s product offering Gain in market share 1 Including pending acquisi
Slide 17: Examples – Emerging Countries
Examples – Emerging Countries #1 for wiring devices in China #1 for audio and video door- entry phones in China Wuxi Specialist in modular and high- current circuit-breakers in China A Business with Two Growth #1 for enclosures and cabinets for Drivers digital infrastructures in Turkey #1 for UPS in
Slide 18: Examples – Complement to Legrand's Product Offering
Examples – Complement to Legrand’s Product Offering #1 for busbars in Italy and specialist in low- consumption transformers A Business with Two Growth #1 for wire mesh Drivers cable management worldwide A leader for the optimization and measurement of electricity quality in France 2010 H1 results 18
Slide 19: Acquisition: UPS Leader in Turkey
#1 for UPS in Turkey Double-digit Automatic Voltage A Business Regulators with EBIT margin Two Growth UPS Systems Drivers $70m of sales in 2009 360 employees Inverter Systems Rectifier Systems Rounding out Legrand’s leading Accelerating global expansion in position in Turkey: the energy
Slide 20: Acquisition: Indo Asian Switchgear in India
(1) Key player for protection devices in the Indian retail market Residual Current Circuit €35m expected sales for 2010 with an Breakers A Business operating margin in double digits with Two Growth Drivers 12,000 retail outlets sales network Miniature Circuit Breakers approximately 2,000 emp
Slide 21: Appendices
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Slide 22: 2010 Half-Year – Net Sales by Destination
2010 Half-Year – Net Sales by Destination (1) Total Scope of Like-for-Like (€M) H1 2009 H1 2010 Currency Effect Change Consolidation Growth France 476.0 475.5 -0.1% 0.0% -0.1% 0.0% Italy 308.7 315.6 2.2% 0.0% 2.2% 0.0% (2) Rest of Europe 355.2 352.9 -0.6% 0.7% -4.3% 3.1% USA/Canada 259.1 275.4 6.3%
Slide 23: 2010 Half-Year – Net Sales by Origin
2010 Half-Year – Net Sales by Origin (1) Total Scope of Like-for-Like (€M) H1 2009 H1 2010 Currency Effect Change Consolidation Growth France 525.1 536.4 2.2% 0.5% 1.7% 0.0% Italy 332.5 332.1 -0.1% -0.2% 0.1% 0.0% (2) Rest of Europe 332.4 340.1 2.3% 2.2% -3.1% 3.3% USA/Canada 262.1 281.9 7.6% 0.0% 6
Slide 24: 2010 Second Quarter – Net Sales by Destination
2010 Second Quarter – Net Sales by Destination (1) Total Scope of Like-for-Like (€M) Q2 2009 Q2 2010 Currency Effect Change Consolidation Growth France 240.1 249.0 3.7% -0.1% 3.8% 0.0% Italy 147.1 155.4 5.6% 0.0% 5.6% 0.0% (2) Rest of Europe 171.6 180.4 5.1% 0.6% 0.5% 4.0% USA/Canada 128.3 150.3 17.
Slide 25: 2010 Second Quarter – Net Sales by Origin
2010 Second Quarter – Net Sales by Origin (1) Total Scope of Like-for-Like (€M) Q2 2009 Q2 2010 Currency Effect Change Consolidation Growth France 265.1 282.7 6.6% 0.5% 6.1% 0.0% Italy 159.1 163.4 2.7% -0.2% 2.9% 0.0% (2) Rest of Europe 162.0 174.0 7.4% 2.0% 1.1% 4.2% USA/Canada 129.6 153.5 18.4% 0.
Slide 26: 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 27: 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 28: Scope of Consolidation
Scope of Consolidation 2010 Q1 H1 9M FY Inform Balance sheet only 6 months Indo Asian Switchgear (1) To be determined To be determined 2011 Q1 H1 9M FY Inform 3 months 6 months 9 months 12 months Indo Asian Switchgear (1) To be determined To be determined To be determined To be determined (1) The of
Slide 29: Disclaimer
Disclaimer This document has been prepared by Legrand S.A. (“Legrand”) solely for use at its meeting with investors held on July 29, 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