Legrand: Unaudited Consolidated Financial Information as of September 30, 2024

07 Nov 2024 07:00 CET

Regulatory News:

Legrand (Paris:LR):

Consolidated statement of income........................................2
Consolidated statement of comprehensive income...............2
Consolidated balance sheet.................................................3
Consolidated statement of cash flows...................................5
Notes to the consolidated financial statements.....................6

Consolidated statement of income

Consolidated statement of comprehensive income

Consolidated balance sheet

Consolidated statement of cash flows

Notes to the consolidated financial statements

KEY FIGURES.....................................................................................................7
NOTE 1 - INTRODUCTION..................................................................................8
NOTE 2 - SIGNFICANT TRANSACTIONS AND EVENTS FOR THE PERIOD.....8
NOTE 3 - CHANGES IN THE SCOPE OF CONSOLIDATION.............................8
NOTE 4 - INVENTORIES....................................................................................10
NOTE 5 - TRADE RECEIVABLES.......................................................................10
NOTE 6 - SHARE CAPITAL.................................................................................10
NOTE 7 - LONG-TERM AND SHORT-TERM BORROWINGS............................11
NOTE 8 - SEGMENT INFORMATION................................................................13
NOTE 9 - SUBSEQUENT EVENTS.....................................................................16

KEY FIGURES

Adjusted operating profit is defined as operating profit adjusted for: i/ amortization and depreciation of revaluation of assets at the time of acquisitions and for other P&L impacts relating to acquisitions, ii/ impacts related to disengagement from Russia (impairment of assets and effective disposal) and, iii/ where applicable, impairment of goodwill.

Normalized free cash flow is defined as the sum of net cash from operating activities - based on a 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.

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.

Net financial debt is defined as the sum of short-term borrowings and long-term borrowings, less cash and cash equivalents and marketable securities.

The reconciliation of consolidated key figures with the financial statements is available in the appendices to the first nine months 2024 results press release.

NOTE 1 - INTRODUCTION

This unaudited consolidated financial information is presented for the 9 months ended September 30, 2024. It does not include all the information required by International Financial Reporting Standards (IFRS) and it should be read in conjunction with consolidated financial statements for the year ended December 31, 2023 as established in the Universal Registration Document deposited under visa no D.24-0270 with the French Financial Markets Authority (AMF) on April 10, 2024.

All the amounts are presented in millions of euros unless otherwise indicated. Some totals may include rounding differences.

The unaudited consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations adopted by the European Union and applicable or authorized for early adoption from January 1, 2024.

None of the IFRS standards issued by the International Accounting Standards Board (IASB) that have not been adopted for use in the European Union are applicable to the Group.

NOTE 2 - SIGNFICANT TRANSACTIONS AND EVENTS FOR THE PERIOD

No significant transactions or events are to be reported during the period.

NOTE 3 - CHANGES IN THE SCOPE OF CONSOLIDATION

The contributions to the Group’s consolidated financial statements of companies acquired since the end of 2022 were as follows:

During the first nine months of 2024, the main acquisitions were as follows:

• ZPE Systems, Inc. in the United States. ZPE Systems is a leading American specialist in serial console servers that enable remote access and management of network IT equipment in datacenters. Based in Fremont, California, ZPE Systems employs over 140 people, reporting annual sales of more than $80 million,

• Enovation, the Dutch leader in healthcare software in the market for connected health and assisted living. Enovation is based in Rotterdam, employs over 350 people and has annual sales of over €60 million;

• Netrack, an Indian specialist in server and network rack manufacturing, notably for datacenters. Based in Bangalore and employing over 250 people, Netrack reports annual revenue of around €10 million;

• Davenham, an Irish specialist in low-voltage power distribution systems (protection, switching, metering and energy distribution) for datacenters, including hyperscalers. Davenham is based in Dublin, employing 350 people and reports annual revenue of around €120 million, mostly in Europe and in the United States;

• VASS, the Australian leader in busbars, mostly for datacenters. Based in Ingleburn, near Sydney, and employing close to 40 people, VASS reports annual revenue of just under €10 million, mostly in Australia and the Asia-Pacific region; and

• UPSistemas, a Colombian specialist in the integration, commissioning, maintenance and monitoring of technical infrastructures, in particular for datacenters. Based in Bogota, and employing more than 300 people, UPSistemas reports annual revenue of around €30 million.

NOTE 4 - INVENTORIES

Inventories are as follows:

NOTE 5 - TRADE RECEIVABLES

Trade receivables are as follows:

NOTE 6 - SHARE CAPITAL

Share capital as of September 30, 2024 amounted to €1,048,982,932 represented by 262,245,733 ordinary shares with a par value of €4 each, for 262,245,733 theoretical voting rights and 262,144,725 exercisable voting rights (after subtracting shares held in treasury by the Group as of this date).

Changes in share capital in the first 9 months of 2024 were as follows:

As of September 30, 2024, the Group held 101,008 shares in treasury, versus 1,863,478 shares as of December 31, 2023, i.e. 1,762,470 fewer shares corresponding to:

• the net acquisition of 750,000 shares outside of the liquidity contract mainly for transfer under performance share plans and employee share ownership plans;

• the transfer of 442,591 shares to employees under performance share plans;

• the transfer of 299,996 shares under the launch of employee share ownership plans;

• the net purchase of 15,676 shares under the liquidity contract;

• the cancellation of 1,785,559 shares.

These transactions led to:

• a cash outflow of €43.8 million under share buybacks, net of disposals;

• a cash outflow of €1.2 million under the liquidity contract.

NOTE 7 - LONG-TERM AND SHORT-TERM BORROWINGS

7.1 LONG-TERM BORROWINGS

Long-term borrowings can be analyzed as follows:

7.2 SHORT-TERM BORROWINGS

Short-term borrowings can be analyzed as follows:

7.3 CHANGES IN LONG-TERM AND SHORT-TERM BORROWINGS

Changes in long-term and short-term borrowings can be analyzed as follows:

NOTE 8 - SEGMENT INFORMATION

In accordance with IFRS 8, operating segments are determined based on the reporting made available to the chief operating decision maker of the Group and to the Group's management.

Given that Legrand activities are carried out locally, the Group is organized for management purposes by countries or groups of countries which have been allocated for internal reporting purposes into three operating segments:

• Europe, including France, Italy and Rest of Europe (mainly including Benelux, Germany, Iberia (including Portugal and Spain), Poland, the United Kingdom and Turkey);

• North and Central America, including Canada, Mexico, the United States, and Central American countries; and

• Rest of the world, mainly including Australia, China, India and South America (of which particularly Brazil, Chile and Colombia).

These three operating segments are under the responsibility of three segment managers who are directly accountable to the chief operating decision maker of the Group.

The economic models of subsidiaries within these segments are quite similar. Indeed, their sales are made up of electrical and digital building infrastructure products in particular to electrical installers, sold mainly through third-party distributors.

NOTE 9 - SUBSEQUENT EVENTS

External growth

The Group achieved the acquisition - announced on September 3, 2024 - of APP (Australian Plastic Profiles), an Australian cable management (conduit) leader for all types of buildings. Based in Sydney, Australian Plastic Profile employs approximately 250 people and generates an annual revenue of over €100 million.

French Competition Authority’s (Autorité de la concurrence) investigation

On September 6, 2018, a search of Legrand premises took place. During the search, Legrand fully cooperated with the relevant authorities.

On July 4, 2022, Legrand received a statement of objections (notification de griefs) from the French Competition Authority, concerning the derogation mechanism with its distributors on the French market.

On October 20, 2022, Legrand reported that, as part of the investigation on the derogation mechanism on the French market, one of Legrand’s French entities has been indicted and ordered to provide security in the amount of €80.5 million.

On October 30, 2024, Legrand has taken note of the enforceable decision of the French Competition Authority ordering Legrand to pay a fine of €43 million for the application of derogated prices on the French market between 2012 and 2015.

Legrand categorically rejects the allegation made against it and reserves the right to appeal this decision.

Legrand reiterates its firm commitment to comply strictly with applicable law, in particular competition law.

This enforceable decision should not have a material impact on the Group’s 2024 financial statements.

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