Legrand: 2023 Full-year Results
LIMOGES, France, February 15, 2024--(BUSINESS WIRE)--Regulatory News:
Legrand (Paris:LR):
With building markets in retreat, Legrand turned in a very solid performance, meeting targets with sales up nearly 5% (organic growth and acquisitions), and record margins and free cash flow
Outstanding 2023 performance
Sales: +0.9%, i.e. +4.7% excluding exchange rates and Russia
Adjusted operating margin: 21.0% of sales
Rise in net earnings per share: +15.6%
Free cash flow: €1.6 billion, 18.8% of sales, up +53.0%
CSR roadmap achievement rate: 118% in 2023
Ongoing execution of strategic roadmap
5 acquisitions over a year, of which 1 announced today
Powerful fundamentals (innovation, pricing power, productivity)
Targeted investments in growth and cost structure optimization
2024 full-year targets
Sales growth (organic and through acquisitions) slightly positive
(in low single digits)
Adjusted operating margin before acquisitions: 20.0% to 20.8% of sales
Capital Markets Day on September 24, 2024
Benoît Coquart, Legrand’s Chief Executive Officer, commented:
"With building markets that retreated during the year, we turned in another very satisfactory financial and extra-financial performance in 2023. This confirmed once again the relevance of Legrand’s growth and value creation model, along with our teams’ strong capacity to adapt and achieve results.
Sales growth, organic and through acquisitions, was nearly +5%, buoyed by:
- the outstanding showing of our faster expanding segments, including datacenters, energy efficiency solutions and connected products, as well as a rise in electrification around the world and increased use of electricity as a power source,
- deployment of numerous growth initiatives, including multiple new-product launches and commercial investments,
- the announcement of five new acquisitions during the year, including two in datacenters, a sector that now represents 15% of our total sales.
Our profitability indicators are at record highs—a showing unique in our industry—with adjusted operating margin at 21.0% of sales, free cash flow of €1.6 billion (or nearly 19% of sales), and net earnings per share up +16% over the year.
Our extra-financial performance was equally remarkable: in 2023, the second year of our three-year 2022-2024 CSR roadmap, our achievement rate was 118%. For example, we reduced our direct carbon emissions (Scopes 1 & 2) by -39% over 2 years and increased the number of management positions filled by women to 29%.
Looking ahead to 2024, amid persistently difficult building markets and uncertain economic prospects, we are aiming for sales growth (excluding exchange rates and Russia). The Group will pursue growth and cost control initiatives whilst building on unchanged solid fundamentals that include innovative capacity, robust external growth, pricing power and cash generation.
Lastly, our next Capital Markets Day will take place on Tuesday, September 24, 2024."
2024 full-year targets
In 2024, the Group will pursue the profitable and responsible development laid out in its strategic roadmap.
Taking into account the world’s current macroeconomic outlook, with confidence in its model for creating integrated value, Legrand has set the following full-year targets for 2024:
- low single-digit sales growth (organic and through acquisitions1);
- an adjusted operating margin before acquisitions between 20.0% and 20.8%;
- at least 100% CSR achievement rate for the third year of the 2022-2024 roadmap.
2023 financial performance
Key figures
Consolidated data (in € millions)(1) | 2022 | 2023 | Change |
Sales | 8,339.4 | 8,416.9 | +0.9% |
Adjusted(2) operating profit | 1,701.5 | 1,770.2 | +4.0% |
As % of sales | 20.4% | 21.0% | |
21.2% before acquisitions | |||
Operating profit | 1,446.5 | 1,591.6 | +10.0% |
As % of sales | 17.3% | 18.9% | |
Adjusted net profit attributable to the Group(4) | 1,146.6 | 1,203.1 | +4.9% |
As % of sales | 13.7% | 14.3% | |
Net profit attributable to the Group | 999.5 | 1,148.5 | +14.9% |
As % of sales | 12.0% | 13.6% | |
Normalized free cash flow | 1,210.4 | 1,326.7 | +9.6% |
As % of sales | 14.5% | 15.8% | |
Free cash flow | 1,035.5 | 1,584.8 | +53.0% |
As % of sales | 12.4% | 18.8% | |
Net financial debt at December 31 | 2,318.9 | 2,005.9 | -13.5% |
(1) See appendices to this press release for definitions and indicators reconciliation tables.
(2) 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.
(3) At 2022 scope of consolidation, excluding Russia and related impacts.
(4) Adjusted net profit attributable to the Group excludes the impacts of asset impairment and of the effective disposal of Russian operations in the amount of €147.1 million in 2022 and €54.6 million in 2023.
Consolidated sales
In 2023, full-year sales rose +0.9% from 2022 to reach €8,416.9 million.
Organic growth in sales was +2.7%, with +0.8% in mature countries and +8.5% in new economies. With building markets in retreat in most geographies, these figures testify to Legrand’s resilience driven by its faster expanding segments, pricing power, and strong commercial performance.
The impact of broader scope of consolidation was +0.9%, including +1.9% from acquisitions and -0.9% reflecting the net impact of the Group’s disengagement from Russia. Based on acquisitions made as well as the effective sale of the Group’s Russian activities at October 4, 2023, the overall impact should be close in 2024 to +1.0% full year, of which close to +1.5% linked to acquisitions and -0.6% to the impact of disengagement from Russia.
The exchange-rate effect added -2.7% to sales for the year. Based on average exchange rates in the month of January 2024, the full-year impact on 2024 sales would be close to -1%.
Changes in sales by destination at constant scope of consolidation and exchange rates by region:
2023 / 2022 | 4th quarter 2023 / 4th quarter 2022 | |
Europe | +6.0% | +2.9% |
North and Central America | -2.0% | -5.3% |
Rest of the world | +5.7% | +4.5% |
Total | +2.7% | +0.0% |
These changes are analyzed below by region:
- Europe (41.4% of Group revenue): full-year growth at constant scope of consolidation and exchange rates was +6.0%, driven by strong growth in energy efficiency solutions, datacenters and connected products, despite a residential market that retreated in most geographies.
In Europe’s mature countries (35.7% of Group revenues), organic growth in sales came to +4.4% over the year, including +1.1% in the fourth quarter alone, with strong showings in countries including Italy, Spain, Germany and Belgium, and resilience in France, the United Kingdom, the Netherlands and Scandinavia.
Sales in Europe’s new economies rose +17.2% over the year, including +16.7% in the fourth quarter alone, with strong full-year gains in Turkey.
- North and Central America (38.6% of Group revenue): sales decreased by -2.0% at constant scope of consolidation and exchange rates over the year.
In the United States (35.0% of Group revenue), sales declined -2.8% full year, including -6.2% in the fourth quarter alone. Over 12 months, this performance is the result of a sales decline in residential, offices and commercial buildings, amid strongly declining markets, partially offset by double-digit growth in sales to datacenters.
In 2023, sales rose slightly in Mexico and sharply in Canada.
- Rest of the World (20.0% of Group revenue): sales marked an organic rise of +5.7% over the year.
In Asia-Pacific (12.6% of Group revenue), sales were up +8.6% in 2023, with a +12.2% increase in the fourth quarter alone. Growth over 12 months reflected very robust momentum in India and, despite a marked retreat in residential markets, an increase in China.
In Africa and the Middle East (3.7% of Group revenue), sales rose +10.0% over the year, and +7.6% in the fourth quarter alone. This reflects solid performances recorded full year in both Africa and the Middle East.
In South America (3.7% of Group revenue), sales decreased by -6.8% full year in a deteriorated economic environment, due in particular to Brazil. Revenue saw a -12.6% decline in the fourth quarter alone.
Adjusted operating profit and margin
In 2023, adjusted operating profit came to €1,770.2 million, up +4.0% from 2022. This set adjusted operating margin at 21.0% of sales for the period.
Before acquisitions (at 2022 scope of consolidation) and excluding Russia, adjusted operating margin for 2023 stood at 21.2% of sales, up +0.8 points from 2022.
The full-year impact of acquisitions and disengagement from Russia on adjusted operating margin came to -0.2 points, linked solely to acquisitions.
Over this period, record-high profitability confirmed once again the quality of Legrand’s business model. This reflected the combined impact of undiminished pricing power, solid cost control management, and high productivity, as well as selective investments in growth and significant restructuring costs.
Solid value creation and balance sheet
Net earnings per share at December 31, 2023 were up +15.6% from 2022 at €4.33.
Net profit attributable to the Group came to €1,148.5 million, up +14.9% from 2023 and equal to 13.6% of sales. This rise was due primarily to an increase in operating profit, the positive impact of financial results, and a corporate income tax rate of 25.9%.
Free cash flow came to 18.8% of sales over the period, to total €1,584.8 million, with a conversion rate2 of 138% of net profit attributable to the Group.
The ratio of net debt to EBITDA3 stood at 1.0 on December 31, 2023. Legrand Group’s cash position came to €2.8 billion, and the maturity of gross debt was 4.5 years, with over 90% in fixed-rate instruments.
Lastly, return on capital employed (ROCE4) after tax and excluding intangible assets resulting from stock-market listing in 2006 was a high 14.7%.
2023 dividend and share buyback
Legrand’s Board of Directors will ask the General Meeting of Shareholders to be held on May 29, 2024 to approve the payment of a dividend of €2.09 per share in respect of 2023, a rise of +10% from 2022.
The ex-dividend date is May 31, 2024, with payment5 on June 4, 2024.
In February 2023, Legrand announced a share buyback program followed by cancellation of shares for up to €500 million over 18 months. By 2023 year-end, a total of €400 million had been repurchased in several tranches.
2023 extra-financial performance
2023 progress toward targets defined in the 2022-2024 CSR roadmap
In 2023, Legrand reached an achievement rate of 118% on the targets set for the second year of its 2022-2024 CSR roadmap6. Achievement rates on the 4 pillars underpinning the Group’s contribution to 10 of UN’s Sustainable Development Goals (SDGs) were as follows:
- 125% on promoting diversity and inclusion, including a rise in the ratio of women in management positions (defined as Hay Grade 14+) to 29.1%, and extension of the "Gender Equality European & International Standard (GEEIS) Diversity" label to 9 new countries. This raised the share of employees working in Diversity & Inclusion-certified units to 67.5%, across 40 countries. 2023 also saw over 4,100 new opportunities (internships, work-based training contracts, and jobs) offered to early-in-careers.
- 149% for reducing carbon footprint: the Group’s CO2 emissions (Scopes 1 & 2) were down -39% over 2 years at current scope, thus once again outperforming targets set for 2023 by far; and a total of 195 key suppliers committed to reducing their CO2 emissions by an average of -30% by 2030.
- 89% on developing a circular economy, with an average use of recycled plastics and metals of close to 6% and more than 32% respectively, and 73% of Legrand’s sales include Product Environmental Profiles providing detailed information on the environmental impact of the Group’s offers.
- 111% on being a responsible business, including over 6 hours of training for 95% of Group employees during the year, a steep decline in the frequency of workplace accidents, (-19% over 2 years), and 90% of total headcount covered by our extended Serenity On social insurance package.
Other CSR initiatives in 2023
Legrand's CSR performance was recently recognized, in particular in the CDP score with:
- An A- score for the CDP Climate Change 2023, recognizing Group’s commitments and achievements on climate,
- An A rating as a company providing high quality information to its clients on climate topics and the status of climate engagement leader in 2023.
On October 6, 2022, the Group announced plans to double its energy-consumption reduction target to ‑15% between 2021 and 2023 (at constant scope). By year-end 2023, it had exceeded this goal, with a consumption reduction of -17%.
2023 achievements also included a strong increase in the use of renewable electricity, reaching 82% of electricity consumption by the end of 2023 and 28 Legrand sites now equipped with solar panels.
Lastly, the Group continued its active support to communities, including rescue operations and humanitarian relief following earthquakes in Morocco.
First international share ownership plan for employees
To recognize and promote employee engagement at all levels in rolling out the Group’s strategy, Legrand announced its first international employee share ownership program.
No dilution will result since shares on offer will come from buybacks. The plan will be launched in the first half of 2024.
Growth and cost base management initiatives
Amid negatively oriented building markets (meaning for nearly 80% of Legrand’s sales), particularly in America, Europe and China, the Group pursued its strategy of fostering revenue and market share growth.
Numerous product launches throughout the year
2023 confirmed the Group’s innovative capacity, with a vast selection of products rolled out over the year:
- For core infrastructure products, these included the wiring device ranges MatixGO (sustainable offer meeting CSR targets), Allzy (in India) and Qing Yi (aimed at the retail market in China); easy-to-install Fasclic+ cable trays with new couplers; Starline Series-S Track busways for humid environments; The Natural Collection architectural and acoustic lighting in the United States; Vaddio Prime Shot and Zoom Shot professional cameras; as well as Vaddio Easy IP PCC video control systems;
- For faster expanding segments, with Green'up One and Home electric vehicle charging stations, Linkeo DC/NX1 and Middle Atlantic Select Series IEC PDUs, Keor SPE RT convertible UPS systems and high capacity Cablofil cable management (datacenters), the NOVO Go mobile telecare range (assisted living, connected products), connected three-phase meters with Netatmo, Smarther AC with Netatmo connected thermostats, the Netatmo Smart AC Controller range (energy efficiency, connected products), the radiant LED advanced dimmer range or the Encelium Touchscreen Panel KX4 LCD lighting panels and controls (energy efficiency, United States), the Light’up digital and connected lighting management offer (small commercial buildings), the T4 wireless connected fire alarm (France), the Easy Kit connected door-entry system for the retail segment, and Uraproof V weatherproof emergency lighting (connected products).
Continued strategy of bolt-on acquisitions, adding €190 million to sales
Legrand actively pursued its external growth strategy with today’s announcement of the acquisition of MSS, a New Zealand company specialized in cable management. Based in Auckland, MSS has around 100 employees and reports annual sales of more than €10 million.
This is the Group’s fifth acquisition this year, following Clamper in Brazil, Encelium in the United States, Teknica in Chile and ZPE Systems, Inc. in the United States. Together they represent acquired sales of around €190 million on a full year basis.
Strengthening presence in faster expanding segments
After further strong gains this year, the faster expanding segments (energy efficiency, datacenters and connected products) accounted for 36% of Legrand Group sales in 2023 and are on course to reach 50% in the medium term as planned.
More specifically, datacenters now represent 15% of total Group sales, with a unique leadership positioning as a white room specialist, with an offering well adapted to the emerging needs of the growing artificial intelligence industry.
Continued growth in operational performance and sustainable optimization of cost structures
Legrand is focused on pursuing initiatives to optimize cost structures while improving its operational performance. These efforts include in particular:
- Optimization of the Group’s industrial footprint with, for example,
in North and Central America the consolidation of 4 distribution centers and closing of 3 production sites in the United States, along with the opening of a new plant in Monterrey (Mexico);
in the rest of the world, Legrand has continued to streamline operations in Brazil while ramping up its industrial footprint in India;
- Boosting its innovative capacity with, for example, a double-digit rise in R&D staff in India, and now 20% of global R&D teams dedicated to software/firmware expertise;
- Improved operational performance including stepped-up investment in Industry 4.0 (representing more than 10% of total 2023 industrial investments) which now covers all main manufacturing sites. Product platforms are also being deployed worldwide.
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Consolidated financial statements for 2023 were adopted by the Board of Directors at its meeting on February 14, 20247. These consolidated financial statements, a presentation of full-year results for 2023, and the related teleconference (live and replay) are available at www.legrandgroup.com.
Key financial dates:
2024 first-quarter results: May 3, 2024
"Quiet period8" starts April 3, 2024
General Meeting of Shareholders: May 29, 2024
Ex-dividend date: May 31, 2024
Dividend payment: June 4, 2024
2024 first-half results: July 31, 2024
"Quiet period2" starts July 1, 2024
Capital Markets Day: September 24, 2024
About Legrand
Legrand is the global specialist in electrical and digital building infrastructures. Its comprehensive offering of solutions for commercial, industrial and residential markets makes it a benchmark for customers worldwide. The Group harnesses technological and societal trends with lasting impacts on buildings with the purpose of improving life by transforming the spaces where people live, work and meet with electrical, digital infrastructures and connected solutions that are simple, innovative and sustainable. Drawing on an approach that involves all teams and stakeholders, Legrand is pursuing its strategy of profitable and responsible growth driven by acquisitions and innovation, with a steady flow of new offerings—including products with enhanced value in use (faster expanding segments: datacenters, connected offerings and energy efficiency programs). Legrand reported sales of €8.4 billion in 2023. The company is listed on Euronext Paris and is notably a component stock of the CAC 40, CAC 40 ESG and CAC SBT 1.5 indexes. (code ISIN FR0010307819). https://www.legrandgroup.com
Appendices
Glossary
Adjusted operating profit: 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) assets impairment in Russia and, (iii) where applicable, for impairment of goodwill.
Busways: electric power distribution systems based on metal busbars.
Cash flow from operations: Cash flow from operations is defined as net cash from operating activities excluding changes in working capital requirement.
CSR: Corporate Social Responsibility.
EBITDA: EBITDA is defined as operating profit plus depreciation and impairment of tangible and right of use assets, amortization and impairment of intangible assets (including capitalized development costs), reversal of inventory step-up and impairment of goodwill.
ESG: Environmental, Societal and Governance.
Free cash flow: 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.
KVM: Keyboard, Video and Mouse.
Net financial debt: Net financial debt is defined as the sum of short-term borrowings and long-term borrowings, less cash and cash equivalents and marketable securities.
Normalized free cash flow: Normalized free cash flow is defined as the sum of net cash from operating activities—based on a normalized 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.
Organic growth: Organic growth is defined as the change in sales at constant structure (scope of consolidation) and exchange rates.
Payout: Payout is defined as the ratio between the proposed dividend per share for a given year, divided by the net profit attributable to the Group per share of the same year, calculated on the basis of the average number of ordinary shares at December 31 of that year, excluding shares held in treasury.
PDU: Power Distribution Units.
UPS: Uninterruptible Power Supply.
Working capital requirement: Working capital requirement is defined as the sum of trade receivables, inventories, other current assets, income tax receivables and short-term deferred tax assets, less the sum of trade payables, other current liabilities, income tax payables, short-term provisions and short-term deferred tax liabilities.
Calculation of working capital requirement
In € millions | 2022 | 2023 |
Trade receivables | 958.1 | 969.9 |
Inventories | 1,357.4 | 1,222.3 |
Other current assets | 255.4 | 302.9 |
Income tax receivables | 120.5 | 192.7 |
Short-term deferred taxes assets/(liabilities) | 103.5 | 108.4 |
Trade payables | (852.5) | (936.5) |
Other current liabilities | (795.1) | (888.1) |
Income tax payables | (48.6) | (61.9) |
Short-term provisions | (146.4) | (153.9) |
Working capital requirement | 952.3 | 755.8 |
Calculation of net financial debt
In € millions | 2022 | 2023 |
Short-term borrowings | 651.3 | 732.3 |
Long-term borrowings | 4,014.4 | 4,089.0 |
Cash and cash equivalents | (2,346.8) | (2,815.4) |
Net financial debt | 2,318.9 | 2,005.9 |
Reconciliation of adjusted operating profit with profit for the period
In € millions | 2022 | 2023 |
Profit for the period | 999.5 | 1,148.5 |
Share of profits (losses) of equity-accounted entities | 0.0 | 0.0 |
Income tax expense | 383.8 | 401.1 |
Exchange (gains) / losses | 0.4 | 8.6 |
Financial income | (45.8) | (87.6) |
Financial expense | 108.6 | 121.0 |
Operating profit | 1,446.5 | 1,591.6 |
i) Amortization & depreciation of revaluation of assets at the time of acquisitions, other P&L impacts relating to acquisitions and ii) impacts related to disengagement from Russia (impairment of assets and effective disposal)9 | 226.8 | 178.6 |
Impairment of goodwill1 | 28.2 | 0.0 |
Adjusted operating profit | 1,701.5 | 1,770.2 |
Reconciliation of EBITDA with profit for the period
In € millions | 2022 | 2023 |
Profit for the period | 999.5 | 1,148.5 |
Share of profits (losses) of equity-accounted entities | 0.0 | 0.0 |
Income tax expense | 383.8 | 401.1 |
Exchange (gains) / losses | 0.4 | 8.6 |
Financial income | (45.8) | (87.6) |
Financial expense | 108.6 | 121.0 |
Operating profit | 1,446.5 | 1,591.6 |
Depreciation and impairment of tangible assets (including right-of-use assets) | 237.6 | 203.9 |
Amortization and impairment of intangible assets (including capitalized development costs) | 146.6 | 166.2 |
Impairment of goodwill | 28.2 | 0.0 |
EBITDA | 1,858.9 | 1,961.7 |
Reconciliation of cash flow from operations, free cash flow and normalized free cash flow with profit for the period
In € millions | 2022 | 2023 |
Profit for the period | 999.5 | 1,148.5 |
Adjustments for non-cash movements in assets and liabilities: | ||
Depreciation, amortization and impairment | 416.0 | 373.9 |
Changes in other non-current assets and liabilities and long-term deferred taxes | 80.9 | 15.2 |
Unrealized exchange (gains)/losses | (7.1) | 4.8 |
(Gains)/losses on sales of assets, net | (0.6) | 44.1 |
Other adjustments | (4.1) | 14.0 |
Cash flow from operations | 1,484.6 | 1,600.5 |
Decrease (Increase) in working capital requirement | (248.4) | 235.9 |
Net cash provided from operating activities | 1,236.2 | 1,836.4 |
Capital expenditure (including capitalized development costs) | (205.7) | (253.3) |
Net proceeds from sales of fixed and financial assets | 5.0 | 1.7 |
Free cash flow | 1,035.5 | 1,584.8 |
Increase (Decrease) in working capital requirement | 248.4 | (235.9) |
(Increase) Decrease in normalized working capital requirement | (73.5) | (22.2) |
Normalized free cash flow | 1,210.4 | 1,326.7 |
Scope of consolidation
2022 | Q1 | H1 | 9M | Full-year |
Full consolidation method | ||||
Geiger | Balance sheet only | 6 months | 9 months | 12 months |
Emos | Balance sheet only | Balance sheet only | Balance sheet only | 9 months |
Usystems | Balance sheet only | Balance sheet only | 7 months | |
Voltadis | Balance sheet only | Balance sheet only | ||
A. & H. Meyer | Balance sheet only | Balance sheet only | ||
Power Control | Balance sheet only | Balance sheet only | ||
Encelium | Balance sheet only | |||
2023 | Q1 | H1 | 9M | Full-year |
Full consolidation method | ||||
Geiger | 3 months | 6 months | 9 months | 12 months |
Emos | 3 months | 6 months | 9 months | 12 months |
Usystems | 3 months | 6 months | 9 months | 12 months |
Voltadis | Balance sheet only | 6 months | 9 months | 12 months |
A. & H. Meyer | Balance sheet only | 6 months | 9 months | 12 months |
Power Control | Balance sheet only | Balance sheet only | 9 months | 12 months |
Encelium | Balance sheet only | 6 months | 9 months | 12 months |
Clamper | Balance sheet only | Balance sheet only | Balance sheet only | 11 months |
Teknica | Balance sheet only | 4 months | ||
MSS | Balance sheet only | |||
Disclaimer
This press release may contain forward-looking statements which are not historical data. Although Legrand considers these statements to be based on reasonable assumptions at the time of publication of this release, they are subject to various risks and uncertainties that could cause actual results to differ from those expressed or implied herein.
Details on risks are provided in the most recent version of Legrand Universal Registration Document filed with the Autorité des marchés financiers (Financial Markets Authority, AMF), which is available on-line on the websites of both AMF (www.amf-france.org) and Legrand (www.legrandgroup.com).
Investors and holders of Legrand securities are reminded that no forward-looking statement contained in this press release is or should be construed as a promise or a guarantee of actual results, which are liable to differ significantly. Therefore, such statements should be used with caution, taking into account their inherent uncertainty.
Subject to applicable regulations, Legrand does not undertake to update these statements to reflect events or circumstances occurring after the date of publication of this release.
This press release does not constitute an offer to sell, or a solicitation of an offer to buy Legrand securities in any jurisdiction.
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1 Excluding exchange-rate effect and impacts linked to the Group’s disengagement from Russia. For Russia, see Legrand press releases dated January 25 and October 12, 2023.
2 Free cash flow / Net profit attributable to the Group.
3 Based on EBITDA for the past 12 months.
4 Computed as follows: Operating profit after tax (with tax rates of 27.7% in 2022 and 25.9% in 2023) excluding the impacts from intangible assets linked to the 2002 global revaluation of Group assets (€-9.3m in 2022 and €-3.2m in 2023), divided by Capital Employed (Total Equity, Short and Long-term borrowings minus Cash and cash equivalents and Other investments) excluding net intangible assets linked to the Group global 2002 assets step-up (€668.9m in 2022, €669.2m in 2023).
5 This distribution will be made in full out of distributable income.
6 For more information, see Legrand press release dated March 29, 2022.
7 The Group’s consolidated accounts at December 31, 2023 were approved by the Board of Directors on February 14, 2023. The statutory auditors' audit procedures on the consolidated financial statements have been performed. The certification report will be issued after finalization of verifications relating to the management report and on presentation in the format provided for by the ESEF Regulation (European Single Electronic Format) of accounts included in the annual financial report.
8 Period of time when all communication is suspended in the run-up to publication of results.
9 Including, for Russia, €54.3 million in 2023 and €147.9 million in 2022.
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ronan.marc@legrand.com
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