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Benoît Coquart is the Managing Director of the Legrand industrial group, one of the world leaders in electrical equipment.
"A little over 20% of Legrand's turnover now relates to products related to the control of electricity consumption", estimates the leader of the group.
Legrand also announced on Wednesday its withdrawal from Russia, where it had maintained its activities.
Between the rise in the price of electricity and the challenges of energy sobriety, the French group Legrand, one of the world leaders in electrical equipment, has seen “a real acceleration” concerning its products linked to the reduction of the energy bill.
“Telework, the energy transition, security, are subjects that will generally drive our field of activity in the next ten years” analyzes its managing director, Benoît Coquart.
The group, which earned 812 million euros in net profit during the first nine months of 2022, up 16.1% over one year, for a turnover of 6.154 billion (+ 19.1%) has by elsewhere announced on Wednesday its withdrawal from Russia, where it had continued its activities after the invasion of Ukraine on February 24, 2022, such as Bonduelle, Leroy-Merlin and Auchan (Mulliez), or even Lactalis.
Some 1,100 people work for the group in Russia, where Legrand has four factories.
The Legrand group announced its withdrawal from Russia on Wednesday evening. Why have you remained there since the start of the war in Ukraine, and what justifies your withdrawal today?
Russia represents only 1.5% of our turnover and our activity there was already reduced due to international sanctions.
Developments in recent months have made business continuity very difficult.
This is the reason why we made the decision to disengage.
The subject of energy sobriety, at the heart of the news for several months, concerns you directly. How does it translate for your group?
This is a subject in which we have invested a great deal for several years.
Slightly more than 20% of Legrand's turnover now relates to products linked to the control of electricity consumption, with products for housing, for commercial buildings and for data centres, which consume, for the latter , 1% of the world's electricity, but which could reach 3% in 2030 if nothing is done.
In addition, we are also reducing our consumption in our offices and in our factories.
In ten years, we have reduced our CO2 emissions by 35%, even though our turnover has increased by 65%.
In other words, for one euro of turnover produced, we need half the energy than ten years ago.
What are the most popular products?
Over two years, in Europe - which is the continent where these subjects are exploding - we have been able to observe on our results at the end of September, that our products linked to the energy transition have experienced growth ten points higher than other products in the area. , there is a real acceleration.
I am thinking in particular of the connected thermostat, which is the iconic product of the energy transition.
A degree saved thanks to this type of solution represents 7% less on the energy bill, knowing that households spend an average of 1,300 euros per year on energy for their homes.
Then, there are more complex solutions that allow you to measure your consumption, and if necessary to reduce load shedding.
In the end, if this type of intelligent system can allow households to save up to 20 to 30% on their annual bill,
The rise of teleworking in recent years is also changing the situation, because people are better equipped at home. Do you feel it too?
It is less easy to quantify than products related to energy savings because it is more diffuse, but it also drives our activity, because we cannot telecommute without having a good quality of speed, connections to recharge our appliances… During the Covid period, there was a sort of rush towards household equipment.
From the second quarter of 2021, it was clearly seen that households turned to other types of expenditure.
The sector has suffered the repercussions of this, but it is an area that will be growing in the medium term, because since confinement, people want to reinvest in their housing, they have noticed that they are missing a room, or that 'they lacked equipment... Teleworking, the energy transition, security,
How do you see the evolution in the building sector?
In the short term there may be a little nervousness, because of the economic and geopolitical context, but in the medium term, I think there will be many factors that will rather pull the building market upwards.
We spend a lot of time in a building, whether in the office or at home, yet it is a place that is generally under-equipped.
About 70% of the European stock - residential and tertiary - is considered energy inefficient, it is often poorly connected, poorly lit, not always well secured... And only 1% of buildings are renovated each year.
That is to say that to go from 30% energy efficient building to 100%, which is the 2050 objective, we would have to double or triple the pace of renovation.
In the next ten years, there will therefore be major changes,
because for relatively small investments, you can have much more efficient buildings.
Remember that the building represents 40% of energy consumption.
And there is everything related to home automation, how do you see the house by 2030?
There is no longer the fantasy of the autonomous house.
Individuals do not want that, but they want us to automate a certain number of simple gestures.
They want a button that can turn off all the lights, be able to program 22°C in the bathroom and 18°C in the bedrooms, cameras to receive on their smartphone the image of the person ringing the doorbell... The house of 2030 will have more and more of these little automations that will simplify people's lives, like what we have seen in the automobile.
The issue of the electric car is also shaking up the market, even at home with the problem of recharging. How do you position yourself on this aspect?
Charging for electric cars represents approximately 1% of the group's turnover worldwide, which still weighs between 70 and 80 million euros.
There will be a rise in the power of the electric car, but this will have to be accompanied by an increase in the production of electricity, whether via nuclear or renewables, especially since at the same time there is an electrification of a whole bunch of other uses.
Concerning our field of activity, it will be necessary to equip the buildings with intelligent load management systems for shedding, and thus avoid consumption peaks which would pose major problems.
Regarding materials, are you experiencing shortages, and what are the increases in raw materials?
There were supply difficulties for electronic components in 2022, because uses demand more and more of them, but the situation should improve in 2023. On prices, all materials and components have increased significantly, by almost 15% on average at the end of September 2022.
On another subject, in December you expressed your exasperation to the SNCF, concerning a deterioration of the Paris-Limoges line, stressing that you were one of the rare groups of the CAC40 to have chosen to maintain its headquarters in the provinces. What about?
The company was created in 1860 in Limoges, because initially it was a porcelain factory, and since then it has always remained in Limoges.
I think that, in today's context, it's an asset, provided the problem of isolation is solved.
I was moved with the SNCF by the removal of trains, and in general by the deterioration in the quality of the Paris-Limoges line, which is starting to be a real obstacle to attracting customers and young graduates.
The SNCF has since reintroduced a train at acceptable times for the Limougeauds, and is committed to improving quality, knowing that all this must really progress by 2026 with the arrival of new trains.
When you are an international company based in Limoges, having a smooth connection with the capital is a condition
sine qua non
to conduct our operations.
We remain very attached to Limoges.
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