2007 reference document - Legrand

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GENERAL INFORMATION
ON THE GROUP
Legrand: unmatched competitive strengths
2.3.2 - First-rate positioning
■ 2.3.2.1 - MARKET LEADING POSITIONS BOTH
LOCALLY AND ON A GLOBAL BASIS
Legrand believes it is the worldwide leader in wiring devices,
with an estimated 2007 market share of approximately 19%.
The Group also believes that it is the global leader in cable
management products, with an estimated 2007 market share
of approximately 15%.
More globally, the Group holds leadership positions for one or
more product ranges in several countries. Approximately 47%
of the Group’s net sales comprised sales of products enjoying
number one positions in their respective markets. In addition,
approximately 86% of the Group’s net sales were derived from
sales into countries where at least one of the Group’s products
held the leading market position. The Group believes that its fi rstrate
competitive position makes it a benchmark for its customers,
distributors, electrical professionals, specifi ers and end-users
and strengthens demand for its products while contributing to
the stability of its margins.
■ 2.3.2.2 - MULTI-POLE STRUCTURE
Over the past few years, the Group has distributed its sales
forces and industrial facilities more evenly around the world.
As a result, Legrand is becoming a multi-pole group marked
by the emergence of new growth centers that combine size and
rapid expansion, including Mexico, Brazil, China, India, Russia,
Poland and Turkey.
More generally, Legrand has made signifi cant investments to
ensure coverage of the Rest of Europe and the Rest of the World
zones and thus increase the contributions of these areas to the
Group’s net sales. Thus, 63% of its marketing and sales staff
covered the Rest of Europe and the Rest of the World in 2007, up
from 50% in 2002. In 2007, Legrand generated 43% of its net sales
in the Rest of Europe and the Rest of the World zones, whereas
these areas accounted for only 33% of net sales in 2002.
2.3.3 - Targeted acquisitions
REFERENCE DOCUMENT 2007 - legrand
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2.3.2.3 - TECHNOLOGICAL EXPERTISE
Legrand has a long and proven track record for innovation, new
product development and the improvement of the functionality
and reliability of its products. In addition, the Group has
signifi cant know-how in integrating innovative technologies into
its product and solution offerings. As such, the Group regularly
expands its product offering to include high added-value products
and solutions based on new technologies to stimulate organic
growth.
■ 2.3.2.4 - QUALITY BRAND PORTFOLIO
AND CONSISTENT “PUSH AND PULL”
STRATEGY
Through its world renowned general brands, such as Legrand
and Bticino, and broad portfolio of local or specialist brands, the
Group believes that it offers a product range that its customers,
distributors, electrical professionals, specifiers and endusers
associate with quality and to which they remain loyal. In
particular, the Group believes that electrical professionals and
specifi ers, which are the principal drivers of demand, have for
many years trusted its brands, products and systems for their
security, reliability and ease of installation and use. The Group’s
brand portfolio is continuously leveraged onto the market through
its “push and pull” strategy, which markets its products to
distributors while concurrently creating demand for its products
from electrical professionals, specifi ers and end-users.
■ 2.3.3.1 - ACQUISITION TRACK RECORD
■ 2.3.3.2 - ACQUISITION EXPERTISE
Since 1954, Legrand has acquired and integrated more than
120 companies into its global network, as growth through
targeted acquisitions fi nanced from cash fl ow is a recurring part
of the Group’s business model. In three years, the Group acquired
15 companies, each of which generated annual net sales of
between €10 million and €100 million and which represented
total acquired revenues of more than €500 million.
The Group continues to grow, and in February 2008 it announced
the acquisition of PW Industries, a US fi rm specialized in ceiling
cable trays for the commercial and industrial sectors.
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■ 2.3.2.5 - OVER 150,000 CATALOG ITEMS
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The Group believes that its catalogs are among the most
comprehensive on the market, offering a broad range of products
that can be readily integrated into systems. The Group’s catalogs
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currently feature more than 150,000 products in some 80 product
families.
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Due to the fragmented nature of its market, Legrand has a
demonstrated ability to identify and complete acquisitions of
small- and medium-sized companies that satisfy its criteria for
complementary technology, location, markets or products. In
addition, the Group has successfully exploited both commercial
(complementary products, catalogs and commercial networks)
and cost synergies. These synergies have allowed the Group to
improve the profi tability of the acquired companies, which as a
rule are initially less profi table than the Group.
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