Legrand (LR) CMD 2024 summary

Strategic achievements and positioning

• Expanded addressable market to €130 billion, with 36% of 2023 sales from fast-growing segments like datacenters, energy transition, and digital lifestyles.

• Delivered 40% sales growth and 50% EPS growth over five years, maintaining sector-leading profitability and robust cash generation.

• Strengthened customer satisfaction (CSAT 78–80%), increased R&D investment by 27% since 2018, and focused on product vitality.

• Enhanced CSR focus, enabling 9.5 million tons of CO2 savings, high external ratings, and increased management diversity.

• Maintains leadership in building electrical and digital infrastructure, leveraging pricing power, productivity, and disciplined M&A.

Market trends and growth drivers to 2030

• Digitalization, AI, electrification, and demographic shifts drive demand for datacenters, energy transition, and connected care.

• Essential infrastructure represents 54% of sales, with energy & digital transition segments at 46%, both set for above-market expansion.

• Datacenters (15% of sales) and energy transition (25%) are key growth engines, with datacenters growing at 17% CAGR since 2019 and energy transition at 9% CAGR.

• Digital lifestyles (6% of sales) focus on smart home and connected care, aiming for European leadership.

• Plans to accelerate range renewal, geographic expansion, and targeted acquisitions in fragmented markets.

Financial and operational ambitions for 2030

• Targets €12–15 billion in sales by 2030, with 6–10% annual sales CAGR (organic 3–5%, M&A 3–5%).

• Aims for adjusted EBIT margin of ~20% (with annual accretion offset by M&A dilution), and >22% margin ex-M&A dilution.

• Free cash flow expected at 13–15% of sales, generating nearly €10 billion from 2025–2030, with €5 billion for acquisitions.

• Capital allocation prioritizes M&A (at least 50% of FCF), ~50% dividend payout, and limited share buybacks.

• CSR ambitions: 80% of sales from eco-responsible products by 2030, net zero by 2050, and significant GHG reductions.