2007 reference document - Legrand

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GENERAL INFORMATION
ON THE GROUP
A market resilient to economic cycles with a steady growth potential
2.1 - PRESENTATION OF THE GROUP
Legrand is one of the world’s leading manufacturers of products
and systems for low-voltage electrical installations and data
networks used in residential, commercial and industrial
buildings. The Group is a pure player , focused on developing,
manufacturing and marketing a complete range of control and
command, cable management, energy distribution and Voice-
Data-Image (“VDI”) products and systems. Legrand markets its
products under internationally recognized general brand names,
including Legrand and Bticino, as well as well-known local or
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REFERENCE DOCUMENT 2007 - legrand
specialist brands. Legrand has commercial and industrial
establishments in more than 70 countries and sells a wide range
of products, comprising more than 150,000 catalog items, in
almost 180 countries. In 2007, the Group had consolidated net
sales of €4,128.8 million (of which 75% were generated outside of
France). In addition, in 2007, almost 25% of the Group’s net sales
were generated in emerging markets (Eastern Europe, Turkey,
Asia/Pacifi c excluding South Korea and Australia, Latin America
and Africa-Middle East).
2.2 - A MARKET RESILIENT TO ECONOMIC CYCLES
WITH A STEADY GROWTH POTENTIAL
2.2.1 - Accessible market
Legrand estimates its accessible market, which corresponds to worldwide sales made by Legrand and its competitors of products that
are identical to, or comparable with, Legrand’s products, at around €60 billion.
2.2.2 - Resilient market
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■ 2.2.2.1 - CAPACITY FOR RESISTANCE TO ECONOMIC ■ 2.2.2.2 - HIGH BARRIERS TO ENTRY
CYCLES
Access to the Group’s market is made diffi cult by a number of
The Group’s accessible market covers the new construction and barriers to entry. These barriers include:
renovation of commercial, residential and industrial buildings
worldwide. As a result of its presence on each of these market
segments, the Group benefi ts from a multi-pole structure and
■ the need to offer an extensive range of products and systems
with multiple functionalities;
enjoys geographically balanced exposure.
■ differences in national electrical standards, norm s and local
In addition, its accessible market is characterized by a flow
of activity fueled by multiple orders, making it mostly widely
regulations and aesthetic preferences, which require new
entrants to make a high initial investment; and
dispersed and less sensitive to economic cycles than the medium- ■ the need to establish privileged relationships with many
and high-voltage markets, where players are more dependent on market players, such as electrical distributors, electrical
large public or private projects.
professionals, specifi ers and end-users.
Consequently, no new player of signifi cant size has emerged on
the market for the past twenty years.
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