Legrand SA

Good day and thank you for standing by. Welcome to the Legrand 2025 Full Year Results Conference Call and Webcast. At this time, all participants are in listen-only mode. After this speaker's presentation, there will be the question and answer session. To ask a question during the session, you need to press star, one, one on your telephone keypad. You will then hear an automatic message advising your hand is raised. To withdraw a question, please press star, one, and one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, Benoit Cocard, CEO of Legrand. Please go ahead.

Thank you. Good morning, everybody. Franck Lemery, Renaud Marc, and myself are happy to welcome you to the Legrand 2025 Full Year Resource Conference Call and Webcast. As you know, this call is recorded. We have published today our press release, financial statements, and a slideshow to which we will refer. I begin on page four with the three key highlights of this release. First, Legrand delivered a remarkable performance with record sales growth, high profitability, and a strong achievement of its CSR objectives. Second, the group continued the successful deployment of its strategic roadmap towards 15 billion euros of sales by 2030. Third, Legrand is targeting further sales growth of between plus 10 and plus 15% in 2026, excluding currency effects. Starting on page six of the deck, we fully achieved our annual targets for 2025, which we will detail further by key topic during the presentation. Moving to page seven, I will start with another view of sales in 2025, excluding currency effects, our sales grew by plus 13.1%. This includes an organic growth of plus 7.7%. This growth is driven by an outstanding performance in data centers with an organic growth of close to plus 40% this year. And regarding our sales in buildings, we are resisting very well despite a still muted market over the year. On top of organic growth, we benefit from a positive scope effect of plus 5.1%. I will come back later on acquisitions. Of course, now based on the acquisitions announced and the likely date of consolidation, the 2026 full year scope impact would be close to plus 6%. As for exchange rates, the effect was a negative minus 3.1% in 2025. And based on the rates of the month of Jan, it would be around minus 2.5% for the full year 2026. On page 8, you will find the key takeaways per geography on a life-for-life basis. In Europe, in a market that remains mixed overall, sales were up plus 1.9% over the year, including, for example, in Germany, Italy, the Netherlands, and the U.K., In North and Central America, sales were up a strong plus 15%, driven by an outstanding performance in data centers. Finally, in the rest of the world, sales increased by plus 2.7%, with good growth in Asia-Pacific, Africa, and the Middle East, partly 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. And good morning to all of you. I will start on page nine with adjusted operating margin. We recorded in 2025 a very solid adjusted operating margin of 20.7% of sales after acquisition. This represents a plus 20 basis point increase year on year, including a 10 basis point organic improvement and a plus 10 basis point favorable impact from acquisitions. The group's high profitability demonstrates, once again, the strength of our strategic model and our solid capacity to execute and adapt. I think notably of the volatile environment linked to the U.S. custom policies, which increased the group cost base by around $100 million. Going now to page 10, the net profit attributable to the group stood at 1.2 billion euros, represented 13.1% of our sales. The increase coming from the operating profit is partially offset by the impact of financial results, while the corporate income tax rate remains stable. The free cash flow came to a solid 1.3 billion euros at 14% of sales and a conversion rate of 107%, supporting the sustained acquisition momentum of Legrand while preserving balance sheet strength with financial leverage kept under control at 1.9% at the end of December 2025. This is it with the key financial topics I wanted to share with you this morning. I'm now handing over back to Benoit.