PARIS--(BUSINESS WIRE)--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
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.
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.