2020 FIRST-HALF RESULTS
JULY 31, 2020
1 | HIGHLIGHTS | P.3 |
2 | GROUP MOBILIZED FOR ALL STAKEHOLDERS | P.5 |
3 | PERFORMANCE SHOWS GOOD RESISTANCE | |
IN A VERY DETERIORATED ENVIRONMENT | P.8 | |
4 | CONTINUED DEPLOYMENT OF THE LEGRAND MODEL | |
IN A STILL UNCERTAIN ENVIRONMENT | P.18 | |
5 | APPENDICES | P.27 |
2
HIGHLIGHTS
3
1
HIGHLIGHTS
- Group mobilized for all stakeholders
- Performance shows good resistance in a very deteriorated environment
- Organic change in sales -15.2%
- Adjusted operating margin 17.5%
- Many measures to adapt to consequences of the crisis
- Solid financial position
- Continued deployment of the Legrand model in a still uncertain environment
4
GROUP MOBILIZED FOR ALL STAKEHOLDERS
5
2
GROUP MOBILIZED FOR ALL STAKEHOLDERS
PROTECTING STAKEHOLDERS
- Initiatives to protect employees and partners
- Very early deployment of the most stringent health protocols
- Adapting work methods:
- teleworking;
- digitalization of customer relations;
- and more.
ACTIVELY SUPPORTING CUSTOMERS
- Working diligently so that clients can pursue their businesses, essential to the economy
- Nearly all logistics and production centers kept open (with optimum health measures):
- uninterrupted supply on most territories where it operates; and
- continued customer support and service operations.
6
2
GROUP MOBILIZED FOR ALL STAKEHOLDERS
ONGOING SOLIDARITY TOWARDS COMMUNITIES
- Close to local communities to fight the impact of the health crisis
- Many initiatives(1) deployed:
- equipment donations;
- help in ventilator production; and
- support to the most exposed communities.
HELPING THE MOST VULNERABLE
MEMBERS OF SOCIETY
- Creation of a solidarity fund to help nursing homes for the elderly (EHPADs in France)
-
Beneficiaries included
228 institutions and 15,000 of their staff members
BALANCED APPEAL TO ALL
STAKEHOLDERS
- Spirit of responsibility given the efforts the crisis requires
- Balanced appeal to all stakeholders(2):
- management;
- employees;
- partners;
- shareholders;
- civil society; and
- government authorities.
- For more information, readers are invited to refer to the press release of April 9, 2020.
- For more information, readers are invited to refer to the press release of May 7, 2020.
7
PERFORMANCE SHOWS GOOD RESISTANCE IN A VERY DETERIORATED ENVIRONMENT
8
3
IN A VERY DETERIORATED ENVIRONMENT
PERFORMANCE SHOWS GOOD RESISTANCE
€ millions
3,2272,833
Organic: | -15.2% |
Total:
External: | +3.6%(1) | -12.2% |
FX: | -0.1%(2) |
H1 2019 | H1 2020 |
- Based on acquisitions completed in 2019 and 2020, and their likely date of consolidation, the impact of the change in scope of consolidation should be around +3% for full-year 2020.
- Applying average exchange rates observed in June 2020 to the last six months of the year, the theoretical impact on sales of exchange-rate fluctuations should
come to around -1.5% for 2020 as a whole. | 9 |
3
IN A VERY DETERIORATED ENVIRONMENT
PERFORMANCE SHOWS GOOD RESISTANCE
o | -16.7% organic change. |
o | In mature European countries, sales declined by -19.7% in H1 2020, including -31.8% in |
Q2 alone. |
- Business was down in almost all countries due to the impact of the health crisis, compounded by one-off factors relating to destocking by distributors.
- The decline was more marked in France, Italy and Spain, i.e., the hardest hit markets by the pandemic. Sales in these countries fell -23% in the first half, compared with a -9% decline in other mature European countries.
o In Europe's new economies, sales were up +2.2% at constant scope of consolidation and exchange rates compared with the H1 2019, including -5.2% in Q2 alone.
- Sales recorded a slight decline in Eastern Europe compared to H1 2019 and rose in Turkey, buoyed by ongoing projects initiated before the start of the pandemic.
o In this deteriorated context, the offerings of the Eliot program, but also the ones linked to assisted living, datacenters and DIY stores showed good resistance in a number of countries.
10
3
IN A VERY DETERIORATED ENVIRONMENT
PERFORMANCE SHOWS GOOD RESISTANCE
o -11.2% organic change.
o United States, sales were down -10.1% compared with H1 2019, including a -15.6% drop in Q2.
- Over the first six months of the year, an increase in sales of products for datacenters, including busways and PDUs, was not enough to offset declining sales observed in other ranges.
o Sales fell more markedly in Canada and Mexico.
11
3
IN A VERY DETERIORATED ENVIRONMENT
PERFORMANCE SHOWS GOOD RESISTANCE
o -19.9% organic change.
o In Asia-Pacific, sales retreated -16.9%,
- with decreases in most countries, including China and India, and
- a slight rise in Australia.
- In Q2 alone, sales were down -13.7%, with contrasts from one market to another that included business halved in India and a marked rise in China.
o In South America, net sales fell by -29.3% at constant scope of consolidation and exchange rates, with a -47.8% drop in Q2,
- as a worsening in the epidemic took a heavy toll in the main countries.
o In Africa and the Middle East, sales were down -19.0% in H1, with -25.2% in Q2 alone.
- Compared with H1 2019, sales were down in Africa, where the 2019 basis for comparison was particularly demanding in many countries, and
- in the Middle East due to the strained health and geopolitical environment.
12
3
IN A VERY DETERIORATED ENVIRONMENT
PERFORMANCE SHOWS GOOD RESISTANCE
€ millions
663
497
-25.0%
H1 2019 | H1 2020 |
13
3
IN A VERY DETERIORATED ENVIRONMENT
PERFORMANCE SHOWS GOOD RESISTANCE
H1 2019 Adjusted operating margin | 20.5% | |
• | Coming against a steep and sudden decline in business volumes; | |
• | Limited decrease from H1 2019 reflecting the Group's quick action in implementing crisis | -3.4 pts |
adaptation measures, with: |
- efficient management of sales and purchase prices;
- significant adjustment in production costs and in administrative and selling expenses, with a double-digit decline at constant scope of consolidation and exchange rates compared with H1 2019, due partly to one-off initiatives; and
- increase in other income and expenses, in particular restructuring costs, which totaled €40 million(1) over the first half, reflecting roll-out of structural adaptation measures.
H1 2020 Adjusted operating margin before acquisitions(2)
- Impact of acquisitions
H1 2020 Adjusted operating margin
- Excluding gains on building disposals recorded over the period.
- At 2019 scope of consolidation.
17.1%
+0.4 pts
17.5%
14
3
IN A VERY DETERIORATED ENVIRONMENT
PERFORMANCE SHOWS GOOD RESISTANCE
•
•
•
A decrease in operating profit (-€170m);
An unfavorable trend (-€10m) in net financial expenses and the foreign-exchange result; and
A decrease in corporate income tax (+€50m)(1).
Net profit attributable to the
Group:
€286m
down
-31.2%
1. In absolute value, due to the fall in profit before tax, while the corporate income tax rate was almost unchanged at 28.5%. | 15 |
3
IN A VERY DETERIORATED ENVIRONMENT
PERFORMANCE SHOWS GOOD RESISTANCE
•
•
Cash flow from operations came to 15.7% of sales in H1 2020, down by -2.5 points from H1 2019.
Working capital requirement stood at 10.7% of sales(2) at June 30, 2020, -0.5 points lower than at June 30, 2019.
Normalized free cash flow:
€470m
at
16.6%
of sales
1. | For more details on the reconciliation of free cash flow with normalized free cash flow, readers are invited to consult page 47. | |
2. | Based on sales for the last 12 months. | 16 |
3
IN A VERY DETERIORATED ENVIRONMENT
PERFORMANCE SHOWS GOOD RESISTANCE
o Balance sheet remained very solid at June 30, 2020, with:
- Cash and cash equivalents of €2.7bn;
- Net debt of €3.1bn:
- EBITDA(1) ratio of 2.2, i.e., very close to the figure at June 30, 2019; and
- maturity extended with a successful new bond issue(2).
1. | Based on EBITDA for the last 12 months. | |
2. | For more information, readers are invited to refer to the press release of May 12, 2020. | 17 |
CONTINUED
DEPLOYMENT OF
THE LEGRAND MODEL IN A STILL
UNCERTAIN ENVIRONMENT
18
4
DEPLOYMENT OF THE LEGRAND MODEL | IN A STILL UNCERTAIN ENVIRONMENT |
CONTINUED |
o Particularly unpredictable outlook for the global health situation and the world economy.
o Subject to a favorable trend in the global health situation,
net sales in the second half of the year should see a sequential improvement compared with the second quarter.
19
4
DEPLOYMENT OF THE LEGRAND MODEL | IN A STILL UNCERTAIN ENVIRONMENT |
CONTINUED |
Legrand is continuing to actively deploy its model by:
- Extending and promoting its product catalog, including items driven by structural trends linked to society, the environment and technologies;
- Maintaining its drive to develop new products;
- Pursuing disciplined growth through acquisitions;
- Deploying many structural initiatives designed to adjust its cost base and strengthen the efficiency and agility of its organization; and
- Confirming its responsible commitments.
20
4
DEPLOYMENT OF THE LEGRAND MODEL | IN A STILL UNCERTAIN ENVIRONMENT |
CONTINUED |
DIGITAL LIGHTING MANAGEMENT
- Real-timecollection and analysis of data
- Remote troubleshooting
- Occupancy and daylight sensors
DRIVIA WITH NETATMO
- First smart electrical panel for homes (with Home + Control)
- Power shedding
- Better control over energy consumption (scenarios & schedule planning)
KEOR MOD UPS
- High energy efficiency curve from low loads
- Meets the demands of critical buildings
- Industry-leadingperformance, quality and design
~34% | ~10% | >30% | ||||||||
Average energy saved per year(1) | Average energy saved per year(1) | Average energy saved per year(1) | ||||||||
Comprehensive, simple and available offers for non-residential buildings (UPS systems, transformers,
Digital Lighting Management, and more) and residential spaces (smart electrical panels, intelligent thermostats,
lighting control systems, and more)
1. Energy savings determined per year compared to standard solutions and usage. | 21 |
4
MODEL ENVIRONMENT |
UNIVERSAL ELECTRIC BUSWAYS | POWER DISTRIBUTION UNITS | CABINETS |
DEPLOYMENT OF THE LEGRAND | IN A STILL UNCERTAIN |
CONTINUED |
- Easy and efficient organization of power distribution for datacenter racks
- Flexible and reliable solutions for mission-critical environments
- Discrete power distribution allowing efficiency
- Remote monitoring and metering of power quality and consumption
- Adapted to colocation, edge computing and hyperscale computing
- Bring together IT equipment and corresponding cables neatly in one place
- Modular applications, configurable in heights, widths and depths
An extensive offering to meet every requirement for safety, modularity and remote control
for all types of datacenters
22
4
DEPLOYMENT OF THE LEGRAND MODEL | IN A STILL UNCERTAIN ENVIRONMENT |
CONTINUED |
ENABLING OFFICE TRANSFORMATION
- Need for modularity
- Digital-flowdevelopment & comfort (internet access, video-conferencing, connected objects, etc.)
- Safety
Universal floor boxes
Connected emergency lighting
Video content capture
ACCOMPANYING TELEWORKING
- Complete and efficient home network
- Power and data, connectivity and protection (surge, cuts, and more) all across the house
- AV infrastructure for remote meetings
Full motion mounts
On-Q Enhanced WiFi Ready
Enclosures
Multi Outlet Sockets
23
4
DEPLOYMENT OF THE LEGRAND MODEL | IN A STILL UNCERTAIN ENVIRONMENT |
CONTINUED |
SECURING THE MOST FRAGILE
- Autonomy
- Contact
- Safety
Telecare devices | Home alarm units |
COMFORT THROUGH | IMPROVED HEALTH | |||||
CONNECTIVITY | INFRASTRUCTURES | |||||
• Remote control of user interfaces, | • Helping medical staff in their duties | |||||
appliances and home access | • Ensuring uninterrupted power | |||||
• Controlling air quality and | supply in critical environments | |||||
temperature environment | • Providing antibacterial equipment, | |||||
• Security with smart cameras | notably through lighting solutions | |||||
Hospital bed head units
Connected user interfaces | Smart thermostats |
Sudden fall detectors | Lighting pathways | Smart Radiator | Smart cameras | Healthcare lighting | Aid call system | |||||||||||
Valve | ||||||||||||||||
24
4
DEPLOYMENT OF THE LEGRAND MODEL | IN A STILL UNCERTAIN ENVIRONMENT |
CONTINUED |
MAINTAINING OUR DRIVE FOR
INNOVATION IN H1 2020
- Many new products launched
- Connected user interfaces now in 36 countries
- 5.3% of sales dedicated to R&D
DISCIPLINED GROWTH
THROUGH ACQUISITIONS
- Actively working to dock newly acquired companies, such as Focal Point(1)
- Close contacts with small and medium-sized companies that are leaders in their markets and that could potentially join the Group when conditions are right
STRUCTURAL INITIATIVES
TO ADAPT
- Structural changes to optimize our organization
- Rationalization of our industrial and logistic footprint across the globe
- Strengthened efficiency and agility through digitalization (close contact, webinars, e-learning for customers and more)
1. For more information on Focal Point, readers are invited to consult appendix page 29 of this presentation. | 25 |
4
DEPLOYMENT OF THE LEGRAND MODEL IN A STILL UNCERTAIN ENVIRONMENT |
ACCELERATING THE FIGHT | PURSUIT OF INCLUSIVENESS | ||
AGAINST CLIMATE CHANGE(1) | & GOVERNANCE INITIATIVES(2) | ||
Inclusion of LGBT+ people | |||
at work in France |
CONTINUED |
- Commitments for 2022, 2030 and 2050 for carbon neutrality
- Aligning with the Paris Agreement target of 1.5°C increase above pre-industrial levels
- Continued initiatives to promote diversity at work
- Appointment of an independent chairwoman of Legrand's Board of Directors
- Shortening of directors' terms of office to 3 years
Legrand qualified to join the new Euronext ESG 80 in 2020
1. For more information, readers are invited to refer to the press release of July 2, 2020.
2. For more information, readers are invited to refer to the press release of February 28, 2020 and news items published on www.legrandgroup.comon March 9 and26 February 13, 2020.
APPENDICES
27
5
APPENDICES
• | 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 power distribution systems based on metal busbars. | ||
• Cash flow from operations is defined as net cash from operating activities excluding changes in working capital requirement. | ||
• CSR stands for Corporate Social Responsibility. | ||
• | EBITDA is defined as operating profit plus depreciation and impairment of tangible and of right of use assets, amortization and impairment of intangible assets (including | |
capitalized development costs), reversal of inventory step-up and impairment of goodwill. | ||
• | Free cash flow is defined as the sum of net cash from operating activities and net proceeds from sales of fixed and financial assets, less capital expenditure and capitalized | |
development costs. | ||
• | KVM stands for Keyboard, Video and Mouse. | |
• Net financial debt is defined as the sum of short-term borrowings and long-term borrowings, less cash and cash equivalents and marketable securities. | ||
• | Normalized free cash flow is defined as the sum of net cash from operating activities-based on a normalized working capital requirement representing 10% of the last 12 | |
months' sales and whose change at constant scope of consolidation and exchange rates is adjusted for the period considered-and net proceeds of sales from fixed and | ||
financial assets, less capital expenditure and capitalized development costs. | ||
• Organic growth is defined as the change in sales at constant structure (scope of consolidation) and exchange rates. | ||
• | Payout is defined as the ratio between the proposed dividend per share for a given year, divided by the net profit attributable to the Group per share of the same year, | |
calculated on the basis of the average number of ordinary shares at December 31 of that year, excluding shares held in treasury. | ||
• | PDU stands for Power Distribution Unit. | |
• UPS stands for Uninterruptible Power Supply. | ||
• | Working capital requirement is defined as the sum of trade receivables, inventories, other current assets, income tax receivables and short-term deferred tax assets, less | 28 |
the sum of trade payables, other current liabilities, income tax payables, short-term provisions and short-term deferred tax liabilities. | ||
5
APPENDICES
- Front-runnerin the United States for specification-grade architectural lighting for non-residential buildings - including hospitals, schools and universities, offices and more
- Offering of customized solutions, in particular for renovation
- Annual sales of more than $200 million
- Over 750 employees
- Legrand thus strengthens its leading US positions in lighting controls and solutions, with a range of specification-grade architectural and mission-critical applications in commercial buildings, energy- efficient lighting management systems, and innovative connected solutions.
29
5
APPENDICES
Breakdown of change in H1 2020 net sales by destination (€m)
North | Rest of | |||
Europe | & Central | |||
the World | ||||
America | ||||
-0.1% | +3.6%(1) | |||
-15.2% | FX | Scope of | ||
H1 2019 | Organic growth | consolidation | H1 2020 | |
1. Due to the consolidation of Universal Electric Corporation, Connectrac and Jobo Smartech.
-12.2%
Total
30
5
APPENDICES
In € millions | H1 2019 | H1 2020 | Total | Scope of | Like-for-Like | Currency Effect |
Change | Consolidation | Growth | ||||
Europe | 1,353.7 | 1,125.3 | -16.9% | 0.4% | -16.7% | -0.7% |
North and Central America | 1,192.8 | 1,173.1 | -1.7% | 8.4% | -11.2% | 2.2% |
Rest of the World | 680.3 | 534.2 | -21.5% | 1.5% | -19.9% | -3.4% |
Total | 3,226.8 | 2,832.6 | -12.2% | 3.6% | -15.2% | -0.1% |
31
1. Market where sales are recorded.
5
APPENDICES
In € millions | Q1 2019 | Q1 2020 | Total | Scope of | Like-for-Like | Currency Effect |
Change | Consolidation | Growth | ||||
Europe | 652.3 | 642.3 | -1.5% | 3.9% | -5.1% | -0.2% |
North and Central America | 567.1 | 602.7 | 6.3% | 7.9% | -4.2% | 2.9% |
Rest of the World | 330.6 | 270.7 | -18.1% | 1.1% | -17.2% | -2.1% |
Total | 1,550.0 | 1,515.7 | -2.2% | 4.8% | -7.3% | 0.7% |
32
1. Market where sales are recorded.
5
APPENDICES
In € millions | Q2 2019 | Q2 2020 | Total | Scope of | Like-for-Like | Currency Effect |
Change | Consolidation | Growth | ||||
Europe | 701.4 | 483.0 | -31.1% | -2.8% | -28.2% | -1.3% |
North and Central America | 625.7 | 570.4 | -8.8% | 8.9% | -17.5% | 1.5% |
Rest of the World | 349.7 | 263.5 | -24.6% | 1.9% | -22.4% | -4.7% |
Total | 1,676.8 | 1,316.9 | -21.5% | 2.5% | -22.8% | -0.8% |
33
1. Market where sales are recorded.
5
APPENDICES
In € millions | H1 2019 | H1 2020 | Total | Scope of | Like-for-Like | Currency Effect |
Change | Consolidation | Growth | ||||
Europe | 1,408.4 | 1,167.5 | -17.1% | 0.4% | -16.9% | -0.7% |
North and Central America | 1,211.6 | 1,193.1 | -1.5% | 8.5% | -11.2% | 2.2% |
Rest of the World | 606.8 | 472.0 | -22.2% | 1.2% | -20.0% | -3.9% |
Total | 3,226.8 | 2,832.6 | -12.2% | 3.6% | -15.2% | -0.1% |
34
1. Zone of origin of the product sold.
5
APPENDICES
In € millions | Q1 2019 | Q1 2020 | Total | Scope of | Like-for-Like | Currency Effect |
Change | Consolidation | Growth | ||||
Europe | 677.0 | 663.2 | -2.0% | 3.8% | -5.4% | -0.2% |
North and Central America | 578.0 | 613.7 | 6.2% | 7.9% | -4.4% | 2.9% |
Rest of the World | 295.0 | 238.8 | -19.1% | 0.7% | -17.6% | -2.5% |
Total | 1,550.0 | 1,515.7 | -2.2% | 4.8% | -7.3% | 0.7% |
35
1. Zone of origin of the product sold.
5
APPENDICES
In € millions | Q2 2019 | Q2 2020 | Total | Scope of | Like-for-Like | Currency Effect |
Change | Consolidation | Growth | ||||
Europe | 731.4 | 504.3 | -31.1% | -2.7% | -28.2% | -1.3% |
North and Central America | 633.6 | 579.4 | -8.6% | 8.9% | -17.3% | 1.5% |
Rest of the World | 311.8 | 233.2 | -25.2% | 1.6% | -22.3% | -5.3% |
Total | 1,676.8 | 1,316.9 | -21.5% | 2.5% | -22.8% | -0.8% |
36
1. Zone of origin of the product sold.
5
APPENDICES
In € millionsH1 2019H1 2020% change
Net sales | 3,226.8 | 2,832.6 | -12.2% |
Gross profit | 1,683.4 | 1,463.6 | -13.1% |
as % of sales | 52.2% | 51.7% | |
Adjusted(1) operating profit | 662.6 | 496.9 | -25.0% |
as % of sales | 20.5% | 17.5%(2) | |
Amortization & depreciation of revaluation of assets at the time | (43.0) | (47.1) | |
of acquisitions and other P&L impacts relating to acquisitions | |||
Operating profit | 619.6 | 449.8 | -27.4% |
as % of sales | 19.2% | 15.9% | |
Financial income (costs) | (38.3) | (42.3) | |
Exchange gains (losses) | (0.3) | (6.5) | |
Income tax expense | (164.0) | (114.3) | |
Share of profits (losses) of equity-accounted entities | (0.9) | (0.9) | |
Profit | 416.1 | 285.8 | -31.3% |
Net profit attributable to the Group | 415.3 | 285.7 | -31.2% |
1. | 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 (€43.0 million in | |
H1 2019 and €47.1 million in H1 2020) and, where applicable, for impairment of goodwill (€0 in H1 2019 and H1 2020). | 37 | |
2. | 17.1% excluding acquisitions (at 2019 scope of consolidation). |
5
APPENDICES
In € millionsQ1 2019Q1 2020% change
Net sales | 1,550.0 | 1,515.7 | -2.2% |
Gross profit | 804.3 | 801.6 | -0.3% |
as % of sales | 51.9% | 52.9% | |
Adjusted(1) operating profit | 305.2 | 282.6 | -7.4% |
as % of sales | 19.7% | 18.6%(2) | |
Amortization & depreciation of revaluation of assets at the time | (19.3) | (22.6) | |
of acquisitions and other P&L impacts relating to acquisitions | |||
Operating profit | 285.9 | 260.0 | -9.1% |
as % of sales | 18.4% | 17.2% | |
Financial income (costs) | (18.8) | (20.0) | |
Exchange gains (losses) | (0.8) | (5.5) | |
Income tax expense | (75.2) | (66.8) | |
Share of profits (losses) of equity-accounted entities | (0.3) | (0.6) | |
Profit | 190.8 | 167.1 | -12.4% |
Net profit attributable to the Group | 190.4 | 167.1 | -12.2% |
1. | 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 (€19.3 million in | |
Q1 2019 and €22.6 million in Q1 2020) and, where applicable, for impairment of goodwill (€0 in Q1 2019 and Q1 2020). | 38 | |
2. | 18.7% excluding acquisitions (at 2019 scope of consolidation). |
5
APPENDICES
In € millionsQ2 2019Q2 2020% change
Net sales | 1,676.8 | 1,316.9 | -21.5% |
Gross profit | 879.1 | 662.0 | -24.7% |
as % of sales | 52.4% | 50.3% | |
Adjusted(1) operating profit | 357.4 | 214.3 | -40.0% |
as % of sales | 21.3% | 16.3%(2) | |
Amortization & depreciation of revaluation of assets at the time | (23.7) | (24.5) | |
of acquisitions and other P&L impacts relating to acquisitions | |||
Operating profit | 333.7 | 189.8 | -43.1% |
as % of sales | 19.9% | 14.4% | |
Financial income (costs) | (19.5) | (22.3) | |
Exchange gains (losses) | 0.5 | (1.0) | |
Income tax expense | (88.8) | (47.5) | |
Share of profits (losses) of equity-accounted entities | (0.6) | (0.3) | |
Profit | 225.3 | 118.7 | -47.3% |
Net profit attributable to the Group | 224.9 | 118.6 | -47.3% |
1. | 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 (€23.7 million in | |
Q2 2019 and €24.5 million in Q2 2020) and, where applicable, for impairment of goodwill (€0 in Q2 2019 and Q2 2020). | 39 | |
2. | 15.3% excluding acquisitions (at 2019 scope of consolidation). |
5
APPENDICES
H1 2020 | North and | Rest of | |||
Europe | Central | Total | |||
(in € millions) | the World | ||||
America | |||||
Net sales | 1,167.5 | 1,193.1 | 472.0 | 2,832.6 | |
Cost of sales | (529.1) | (583.0) | (256.9) | (1,369.0) | |
Administrative and selling expenses, R&D costs | (411.0) | (414.0) | (138.3) | (963.3) | |
Reversal of acquisition-related amortization, depreciation, expense and | (7.8) | (33.8) | (8.2) | (49.8) | |
income accounted for in administrative, selling expenses and R&D costs | |||||
Adjusted operating profit before other | 235.2 | 229.9 | 85.0 | 550.1 | |
operating income (expense) | |||||
as % of sales | 20.1% | 19.3% | 18.0% | 19.4% | |
Other operating income (expense) | (25.7) | (27.0) | 2.2 | (50.5) | (1) |
Reversal of acquisition-related amortization, depreciation, expense and | 0.0 | 2.7 | 0.0 | 2.7 | |
income accounted for in other operating income (expense) | |||||
Adjusted operating profit | 209.5 | 200.2 | 87.2 | 496.9 | |
as % of sales | 17.9% | 16.8% | 18.5% | 17.5% |
40
1. Restructuring (€24.1m) and other miscellaneous items (€26.4m).
5
APPENDICES
H1 2019 | North and | Rest of | |||
Europe | Central | Total | |||
(in € millions) | the World | ||||
America | |||||
Net sales | 1,408.4 | 1,211.6 | 606.8 | 3,226.8 | |
Cost of sales | (619.7) | (583.1) | (340.6) | (1,543.4) | |
Administrative and selling expenses, R&D costs | (450.0) | (407.6) | (162.1) | (1,019.7) | |
Reversal of acquisition-related amortization, depreciation, expense and | (6.2) | (29.5) | (7.3) | (43.0) | |
income accounted for in administrative, selling expenses and R&D costs | |||||
Adjusted operating profit before other | 344.9 | 250.4 | 111.4 | 706.7 | |
operating income (expense) | |||||
as % of sales | 24.5% | 20.7% | 18.4% | 21.9% | |
Other operating income (expense) | (16.0) | (20.3) | (7.8) | (44.1) | (1) |
Reversal of acquisition-related amortization, depreciation, expense and | 0.0 | 0.0 | 0.0 | 0.0 | |
income accounted for in other operating income (expense) | |||||
Adjusted operating profit | 328.9 | 230.1 | 103.6 | 662.6 | |
as % of sales | 23.4% | 19.0% | 17.1% | 20.5% |
41
1. Restructuring (€10.8m) and other miscellaneous items (€33.3m).
5
APPENDICES
Q1 2020 | North and | Rest of | |||
Europe | Central | Total | |||
(in € millions) | the World | ||||
America | |||||
Net sales | 663.2 | 613.7 | 238.8 | 1,515.7 | |
Cost of sales | (288.6) | (295.3) | (130.2) | (714.1) | |
Administrative and selling expenses, R&D costs | (233.9) | (216.0) | (71.9) | (521.8) | |
Reversal of acquisition-related amortization, depreciation, expense and | (5.3) | (17.6) | (2.4) | (25.3) | |
income accounted for in administrative, selling expenses and R&D costs | |||||
Adjusted operating profit before other | 146.0 | 120.0 | 39.1 | 305.1 | |
operating income (expense) | |||||
as % of sales | 22.0% | 19.6% | 16.4% | 20.1% | |
Other operating income (expense) | (11.9) | (20.4) | 12.5 | (19.8) | (1) |
Reversal of acquisition-related amortization, depreciation, expense and | 0.0 | 2.7 | 0.0 | 2.7 | |
income accounted for in other operating income (expense) | |||||
Adjusted operating profit | 134.1 | 96.9 | 51.6 | 282.6 | |
as % of sales | 20.2% | 15.8% | 21.6% | 18.6% |
42
1. Restructuring (€1.2m) and other miscellaneous items (€18.6m).
5
APPENDICES
Q1 2019 | North and | Rest of | |||
Europe | Central | Total | |||
(in € millions) | the World | ||||
America | |||||
Net sales | 677.0 | 578.0 | 295.0 | 1,550.0 | |
Cost of sales | (299.8) | (278.7) | (167.2) | (745.7) | |
Administrative and selling expenses, R&D costs | (220.7) | (199.1) | (77.3) | (497.1) | |
Reversal of acquisition-related amortization, depreciation, expense and | (2.0) | (15.0) | (2.3) | (19.3) | |
income accounted for in administrative, selling expenses and R&D costs | |||||
Adjusted operating profit before other | 158.5 | 115.2 | 52.8 | 326.5 | |
operating income (expense) | |||||
as % of sales | 23.4% | 19.9% | 17.9% | 21.1% | |
Other operating income (expense) | (7.5) | (11.0) | (2.8) | (21.3) | (1) |
Reversal of acquisition-related amortization, depreciation, expense and | 0.0 | 0.0 | 0.0 | 0.0 | |
income accounted for in other operating income (expense) | |||||
Adjusted operating profit | 151.0 | 104.2 | 50.0 | 305.2 | |
as % of sales | 22.3% | 18.0% | 16.9% | 19.7% |
43
1. Restructuring (€3.3m) and other miscellaneous items (€18.0m).
5
APPENDICES
Q2 2020 | North and | Rest of | |||
Europe | Central | Total | |||
(in € millions) | the World | ||||
America | |||||
Net sales | 504.3 | 579.4 | 233.2 | 1,316.9 | |
Cost of sales | (240.5) | (287.7) | (126.7) | (654.9) | |
Administrative and selling expenses, R&D costs | (177.1) | (198.0) | (66.4) | (441.5) | |
Reversal of acquisition-related amortization, depreciation, expense and | (2.5) | (16.2) | (5.8) | (24.5) | |
income accounted for in administrative, selling expenses and R&D costs | |||||
Adjusted operating profit before other | 89.2 | 109.9 | 45.9 | 245.0 | |
operating income (expense) | |||||
as % of sales | 17.7% | 19.0% | 19.7% | 18.6% | |
Other operating income (expense) | (13.8) | (6.6) | (10.3) | (30.7) | (1) |
Reversal of acquisition-related amortization, depreciation, expense and | 0.0 | 0.0 | 0.0 | 0.0 | |
income accounted for in other operating income (expense) | |||||
Adjusted operating profit | 75.4 | 103.3 | 35.6 | 214.3 | |
as % of sales | 15.0% | 17.8% | 15.3% | 16.3% |
44
1. Restructuring (€22.9m) and other miscellaneous items (€7.8m).
5
APPENDICES
Q2 2019 | North and | Rest of | |||
Europe | Central | Total | |||
(in € millions) | the World | ||||
America | |||||
Net sales | 731.4 | 633.6 | 311.8 | 1,676.8 | |
Cost of sales | (319.9) | (304.4) | (173.4) | (797.7) | |
Administrative and selling expenses, R&D costs | (229.3) | (208.5) | (84.8) | (522.6) | |
Reversal of acquisition-related amortization, depreciation, expense and | (4.2) | (14.5) | (5.0) | (23.7) | |
income accounted for in administrative, selling expenses and R&D costs | |||||
Adjusted operating profit before other | 186.4 | 135.2 | 58.6 | 380.2 | |
operating income (expense) | |||||
as % of sales | 25.5% | 21.3% | 18.8% | 22.7% | |
Other operating income (expense) | (8.5) | (9.3) | (5.0) | (22.8) | (1) |
Reversal of acquisition-related amortization, depreciation, expense and | 0.0 | 0.0 | 0.0 | 0.0 | |
income accounted for in other operating income (expense) | |||||
Adjusted operating profit | 177.9 | 125.9 | 53.6 | 357.4 | |
as % of sales | 24.3% | 19.9% | 17.2% | 21.3% |
45
1. Restructuring (€7.5m) and other miscellaneous items (€15.3m).
5
APPENDICES
In € millions | H1 2019 | H1 2020 |
Profit | 416.1 | 285.8 |
Depreciation, amortization and impairment | 149.8 | 159.1 |
Changes in other non-current assets and liabilities and long-term deferred taxes | 23.5 | 34.0 |
Unrealized exchange (gains)/losses | (1.1) | (15.7) |
(Gains)/losses on sales of assets, net | (2.0) | (15.9) |
Other adjustments | 0.6 | (1.6) |
Cash flow from operations | 586.9 | 445.7 |
46
5
APPENDICES
In € millionsH1 2019 H1 2020 % change
Cash flow from operations | 586.9 | 445.7 | -24.1% |
as % of sales | 18.2% | 15.7% | |
Decrease (Increase) in working capital requirement | (145.9) | (161.6) | |
Net cash provided from operating activities | 441.0 | 284.1 | -35.6% |
as % of sales | 13.7% | 10.0% | |
Capital expenditure (including capitalized development costs) | (71.7) | (46.0) | |
Net proceeds from sales of fixed and financial assets | 6.1 | 20.8 | |
Free cash flow | 375.4 | 258.9 | -31.0% |
as % of sales | 11.6% | 9.1% | |
Increase (Decrease) in working capital requirement | 145.9 | 161.6 | |
(Increase) Decrease in normalized working capital requirement | (6.8) | 49.2 | |
Normalized free cash flow | 514.5 | 469.7 | -8.7% |
as % of sales | 15.9% | 16.6% | |
47
5
APPENDICES
2019
Full consolidation method
Debflex
Netatmo
Trical
Universal Electric Corporation
Connectrac
Jobo Smartech
Q1 | H1 | 9M | FY |
Balance sheet only | 6 months | 9 months | 12 months |
Balance sheet only | 6 months | 9 months | 12 months |
Balance sheet only | 6 months | 9 months | 12 months |
Balance sheet only | 6 months | 9 months | |
Balance sheet only | |||
Balance sheet only |
48
5
APPENDICES
2020
Full consolidation method
Debflex
Netatmo
Trical
Universal Electric Corporation
Connectrac
Jobo Smartech
Focal Point
Q1 | H1 | 9M | FY |
3 months | 6 months | 9 months | 12 months |
3 months | 6 months | 9 months | 12 months |
3 months | 6 months | 9 months | 12 months |
3 months | 6 months | 9 months | 12 months |
3 months | 6 months | 9 months | 12 months |
Balance sheet only | 6 months | 9 months | 12 months |
Balance sheet only | Balance sheet only | To be determined | To be determined |
49
5
APPENDICES
INVESTOR RELATIONS
LEGRAND
Ronan MARC
Tel: +33 (0)1 49 72 53 53 ronan.marc@legrand.fr
PRESS RELATIONS
PUBLICIS CONSULTANTS
Vilizara LAZAROVA
Tel: +33 (0)1 44 82 46 34
Mob: +33 (0)6 26 72 57 14 vilizara.lazarova@publicisconsultants.com
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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.
This presentation contains information about Legrand's markets and its competitive position therein. Legrand is not aware of any authoritative industry or market reports that cover or address its market. Legrand assembles information on its markets through its subsidiaries, which in turn compile information on its local markets annually from formal and informal contacts with industry professionals, electrical-product distributors, building statistics, and macroeconomic data. Legrand estimates its position in its markets based on market data referred to above and on its actual sales in the relevant market for the same period.
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Legrand SA published this content on 31 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2020 08:01:26 UTC