LEGRAND / 2018 Registration document

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CORPORATE SOCIAL RESPONSIBILITY AND DECLARATION OF EXTRA-FINANCIAL PERFORMANCE

BEING COMMITTED TO OUR EMPLOYEES

Legrand is keen to promote and facilitate the geographic mobility of its employees. To that end, Legrand launched an intranet platform in 2017 that allows all employees to learn about global job opportunities for international resources and to apply online. This platform meets two expectations: W employees’ ambitions to develop their skills internationally; and W the Group’s willingness to offer development opportunities and promote career paths. Since July 2017, around 80 vacancies from all business lines and spanning four continents have been advertised. These have attracted applications from many countries. Legrand encourages staff members’ mobility plans with support including visits to host sites, training that can cover intercultural skills in the case of a move to another country, and financial incentives. Thus, people in the Volontariat International en Entreprise (Volunteer for International Experience or VIE) programwho work at the Group’s subsidiaries are regularly monitored at various stages of their mission. When their contract ends, a full assessment is conducted and a detailed analysis of employment opportunities is performed by the Mobility Committee. Individual appraisal reviews for Group managers Individual appraisal reviews, now known as CAPP (Competency Appraisal Performance and Perspectives) meetings are an important part of management and are essential for driving business performance. They enable Human Resources to focus on annual budgetary targets and to increase personal commitment by assessing performance, setting development action plans and taking into account wishes regarding functional or geographical mobility. These individual appraisal reviews are an opportunity for dialogue between the manager and the employee. In 2018, 90% of the managers had a CAPP meeting, which involves a standard approach to the concepts of targets, performance, competencies and mobility. Countries are encouraged to develop this practice and the Group helps them set up, deploy or adapt the process. For example, countries deviating significantly from the Group standard have received specific assistance. More information about the process has been featured in internal communications. The launch of the Tohm project (the roll-out of a single HR IT system) three years ago has enabled the Group to turn the spotlight on this major HR process. At the end of 2018, the system had been rolled out in 40 countries for the purpose of conducting these meetings.

As a result, the process has been revised to include several aspects: W the close involvement of employees, who are asked to perform a self-assessment on the attainment of their goals and their business and behavioral competencies, and who may offer suggestions when the following year’s targets are being set; W the definition of a Group-wide, cross-functional skills framework linked to the type of role involved (manager, individual contributor, manager of managers). The system roll-out was accompanied by numerous training courses on the process for managers, and tutorials for managers and employees. Manager retention In addition to talent management programs and a strong bias towards internal promotion, Legrand also relies on its compensation policy to retain management. Legrand has had retention plans in place for 10 years. Under these plans, performance shares or bonuses are distributed, depending on the year. These are among the tools used to motivate and retain staff. A selection process approved by senior management seeks to identify the best-performing employees within all of the Group’s subsidiaries who help to create value across the organization. The process covered more than 5% of the Group’s workforce (about 2,000 people) in 2018. More than three quarters of awards are currently made to employees of international subsidiaries. It should be noted that, starting in 2016, one third of the performance criteria for performance shares has been indexed to overall CSR performance, in connection with the CSR roadmap. In France, for example, these arrangements are supplemented by profit sharing and incentive mechanisms, the Employee Savings Plan and the Company Investment Fund. The Group also seeks to increase information-sharing and communication between employees through various internal tools: W the intranet, which provides real-time information for all employees with access to a computer; W the in-house magazine Legrand Info, which has a circulation of 8,400, is published in five different languages and is distributed digitally in all countries; W the creation of an international network of Internal Communications correspondents in all subsidiaries and sales offices, to relay Group information; W the internal corporate social network Yammer, which was launched in 2015 and has numerous community groups. This network is designed to facilitate knowledge transfer across the various entities. Terminals have been set up in the manufacturing facilities to enable people without a computer workstation to keep track of the Group’s news;

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REGISTRATION DOCUMENT 2018