On the closing of full-year accounts for 2015, Gilles Schnepp, Legrand Chairman and CEO, commented:
2015 achievements
“Legrand’s 2015 financial performance is fully in line with Group targets: organic growth in sales was +0.5% (target specified in November: “-1% to +1%”) and adjusted operating margin before acquisitions (at 2014 scope of consolidation) was 19.4% (target specified in November: “at least 19%”).
With varied market conditions from one geographical region to another, Legrand once again demonstrated its capacity to create value. Thus total sales, adjusted operating profit, net income excluding minorities and free cash flow all increased, rising by close to +7%, +6%, +4% and +10%, respectively.
As regards non-financial performance, achievements on the Group’s CSR roadmap are ahead of the projected development plan with an achievement rate of 120% at the end of 2015.
Proposed dividend
“Based on those solid achievements, Legrand will ask the General Meeting of Shareholders to approve a dividend of €1.15 per share, consistent with the change in the Group’s net income excluding minorities.
Stepping up initiatives linked to new technologies
“Legrand is convinced that new technologies, in particular digital ones, significantly increase the value-inuse of its products for users. As a result, we have decided to accelerate the pace of our investments in this area—innovation, with the launch of the Eliot1 program; acquisitions with, in particular, the purchase of Raritan and QMotion; signature of strategic partnerships; participation in many technological alliances; and investment in a round of financing for Netatmo. It is within this framework that Legrand set ambitious targets, such as achieving double-digit average total annual growth in sales for connected products by 2020. At year-end 2015, the Group’s achievements are ahead of schedule in our development plan.
Ongoing industrial transformation of the Group
“As initiatives linked to new technologies expand, Legrand is at the same time actively pursuing its initiatives targeting productivity and optimal use of capital employed, thanks to the new industrial organization implemented in 2014. In total, benefits generated by this industrial transformation enable financing of the new technology-linked initiatives underway. This is reflected in the Group’s ratios for R&D, industrial capital expenditure and working capital requirement, which are all under control.”
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