2007 reference document - Legrand

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THE GROUP’S BUSINESS
Principal activities
(India and Latin America). In 2006, Legrand notably launched
the XS and XG circuit breakers (Turkey), CTX power contactors
(Colombia, Chile and Turkey), remote monitoring systems for
DPX, DMX and Lexic (France) and the Marina range of industrial
enclosures (France and Italy).
Legrand believes that it is one of the principal manufacturers
of energy distribution products and that it is among the top fi ve
players in the European, Asian and South American energy
distribution product markets.
■ 5.2.2.4 - VDI
In the VDI sector, Legrand offers a broad range of pre-wiring
hardware for computer, telephone and video applications, such
as a new high transmission rate RJ45 multimedia socket for
data communication applications, fi ber optic jacks, fi ber optic
and copper patch panels, VDI cabinets and enclosures, copper
and fi ber optic VDI cables, all of which facilitate the organization
of telephone and data networks in buildings.
In 2007, Legrand launched the new Mighty Mo range of enclosures,
10 Giga Clarity, a range of high-density patch panels (categories 5
and 6) and a new range of fi ber optic connectors. In 2006, Legrand
5.2.3 - Research and development
Legrand has a long track record of developing new products and
upgrading products by adding improved functionalities. As part
of its recent operational initiatives, Legrand has increased its
investment in research and development. During the last three
fi nancial years, on average, the Group has spent and invested
(before purchase accounting charges relating to the acquisition of
Legrand France and including capitalized development expenses)
4% to 5% of its net sales on research and development. In 2007,
38% of the Group’s net sales were generated by products less
than fi ve years old, with net sales of those products representing
approximately 49% of its net sales in Spain, 48% of its net sales
in the United States, 34% of its net sales in Brazil and 59% of its
net sales in France.
The following characteristics are a priority for Legrand’s product
development:
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quality, reliability and overall safety;
simplicity, ease and speed of installation;
integration of new technologies into its product offering;
REFERENCE DOCUMENT 2007 - legrand
launched a number of products, including 10 Giga SSTP (France),
10 Giga UTP (Europe and the Middle East) and the Wi-Jack Duo
range, the world’s most compact Wi-Fi access point (United
States).
Legrand believes that it is one of the four principal manufacturers
of a certain number of VDI applications (excluding cables). The
VDI product category, as it relates to communications and
security products, also includes products for computer systems,
telephones and video.
■ 5.2.2.5 - REGULATION AND STANDARDS
Legrand’s products are subject to quality and safety controls and
regulations, and are governed by both national and international
standards, such as European Union directives, and product norms
and standards adopted by international organizations, including
the European Committee for Electrotechnical Standardization
and the International Electrotechnical Commission. Changes in
standards and norms are gradual and result in higher standards
of security and performance, and thus increase barriers to entry
for new market entrants.
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capacity of its product lines to work together in an integrated
system;
■ product functionality; and
■ new designs.
Certain production facilities have dedicated research and
development teams. However, a signifi cant portion of Legrand’s
research and development is carried out in Limoges, France,
Varese, Italy and in the United States. As of December 31, 2007,
1,794 employees in approximately 16 countries were involved
in research and development, of which approximately 71%
were based in France and Italy, and the remainder in other
countries.
Although Legrand believes that new product launches are a key
driver of growth in the medium- to long-term, they can, in the
short term, lead to increased costs associated with such factors
as initial operational ineffi ciency, return of old products, obsolete
inventory and increased promotional expenses.
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