Legrand SA

Hello, everybody. Good morning. So, Franck, Romain, and I are happy to welcome you to the Legrand 2025 H1 Result Conference Call and Webcast. As you know, we have published today a press release, financial statements, and a slideshow to which we will refer. I begin on page four of the slideshow with the three key highlights of this press release. First, Legrand delivered Very solid results in the first half of 2025 with strong sales growth and high profitability. Second, we have revised our 2025 full-year targets upwards, both in terms of sales and adjusted operating margin. And third, we are actively rolling out our strategy, strengthening our confidence in reaching the upper end of our 2030 revenue target range of around 15 billion euros. So moving to page six, I will start with an overview of sales. In the first half of 2025, excluding FX, our sales grew by plus 15%. This includes an organic growth of plus 9%, driven by an outstanding performance in data centers. On Q2 alone, our organic growth was of plus 10.1%. This also includes a positive scope effect of plus 5.5%, and based on the acquisitions announced so far, the full year scope effect would be around plus 4.5%. As for FX, the effect was a negative minus 1.4% in the first half, and based on the rates of the month of June, it would be around minus 2.5% for the full year. On page seven, you will find the key takeaways per geography on a life-for-life basis. In Europe, where market conditions remain contrasted overall, sales rose by plus 1% in the first half of 2025. In North and Central America, sales were up, again, life-for-life, of course, a strong plus 20.5%, driven by an outstanding performance of data centers offering. Finally, in the rest of the world, Sales increased by plus 3.3%, with growth in Asia-Pacific, Africa, and the Middle East, partially offset by a retreat in South America. These were the main comments I wanted to share on sales. I will now hand over to Franck for more color on our financial performance.

Thank you, Benoit. Good morning to all of you. I'll start on page 8 with adjusted operating margins. In H1 2025, we recorded a solid adjusted operating margin of 21% after acquisition. This represents a 30 BPS point increase year-on-year, including 20 BPS organic improvement driven by operational leverage and a 10 BPS favorable impact from acquisitions. This high profitability level demonstrate clearly, first, the strength of our strategic model, and second, our solid ability to execute and adapt. On slide 9, a short update on the U.S. tariff topic, a topic that also demonstrates our ability to adapt and deliver. As you know well, close to 50% of our U.S. COGS is imported. The action plan we launched at the beginning of the year is fully on track, It's already delivering visible results, for example, regarding targeted sales price increases, cost saving initiative, supply set adjustment, or selective industrial footprint adaptations. Going now to page 10, the net profit stood at €628 million, representing 13.2% of our sales. This nice increase is coming from operating profit and is partially offset by the impact of financial results and the rise in corporate income tax. The free cash flow came to €502 million, growing plus 7.2% on the first half. Page 11 illustrates the robustness of our balance sheet with a net debt to EBITDA ratio of 1.5 at the end of the first half. This concludes the key financial topics I wanted to share with you this morning. I'm now handing over back to Benoit.

Thank you, Franck. So we are moving now to page 13 regarding our 2025 full-year targets. Taking into account the first six months of the year results and considering the world's current macronomic outlook as well as gradual normalization of customs policies, we have revised our targets upward for the full year 2025. First, sales growth excluding currency effect is now of between plus 10% and plus 12% versus previously of plus 6% to plus 10%. This includes an expected organic growth of plus 5% to plus 7% and a growth from acquisitions of approximately plus 5%. Second, we are now targeting an adjusted operating margin after acquisitions of 20.5% to 21% of sales. versus previously holding stable overall after acquisitions compared with 2024, i.e. around 20.5%. Last, no change regarding CSR, where we target an at least 100% achievement rate for our roadmap. Before moving to the next part, I would like to point out the fact that 2025 would be the fifth year in a row where Le Grand adjusted EBIT margins stands above 20%. Now from page 15 to 19, we show that we are fully executing our strategic ambitions to 2030. So on page 15 to 17, we have announced six acquisitions, all in segments tied to the energy and digital transition, for a total required sales of around 200 million euros. These transactions illustrate our ability and expertise in continuously strengthening our leadership in buy-in fields of activity. Second, on page 18 and 19, we are keeping a very strong innovation momentum with numerous product launches in all verticals. And finally, on page 20, we highlight the data centers offering exceptional momentum in H1. Data centers account for 24% of group sales in H1 2025, with another book of over a billion euro, giving us good visibility. To conclude this section, on page 21, we reaffirm our 2030 targets at the upper end of the sales range, building on the achievements I've just mentioned, and taking into account market trends observed over the past 12 months, particularly in data centers. where we now expect a double-digit average annual organic growth in our accessible market between 2025 and 2030, we are confident in our ability to reach the upper end of our 2030 revenue target range, i.e., around 15 billion euros, compared with 8.6 billion euros in 2024. Those were the key topics of this release. I suggest we switch now to Q&A. Thank you.