LEGRAND / 2018 Registration document
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MANAGEMENT REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2018
OFF BALANCE SHEET COMMITMENTS
5.7 – OFF BALANCE SHEET COMMITMENTS
The Group does not have any off balance sheet arrangements that have or can be considered reasonably likely to have a current or future impact on its finances, revenues, expenses, results, operating income, cash, capital expenditure or capital reserves, and that
would be material to investors. (See note 5.3 to the consolidated financial statements referred to in chapter 8 of this Registration Document). There is no significant off balance sheet commitment given linked to acquisitions.
5.8 – CONTRACTUAL OBLIGATIONS
The following table summarizes the Company’s contractual obligations, commercial commitments and principal maturity dates on a consolidated basis as of December 31, 2018.
Payments due by period
At December 31, 2018 (in € millions)
Total
< 1 year
1-3 years
3-5 years
> 5 years
Borrowings
3,311.1
399.0
21.8
849.9
2,040.5
Finance leases
8.0
1.5
3.0
3.4
0.0
Gross debt*
3,319.1
400.5
24.8
853.3
2,040.5
Operating leases
265.4
65.7
89.9
52.3
57.5
TOTAL CONTRACTUAL OBLIGATIONS
3,584.5
466.2
114.7
905.6
2,098.0
*
Including debt issuance costs.
5.9 – VARIATIONS IN EXCHANGE RATES
A significant number of the Group’s foreign subsidiaries operate in countries outside the euro zone. In 2018, approximately 65% of the Group’s net sales were denominated in currencies other than the euro. As a consequence, the Group’s consolidated sales, operating income and free cash flow could be affected by variations in exchange rates between the euro and other currencies. In order to prepare its consolidated financial statements, the Group must convert assets, liabilities, income and expenses that are
recognized in other currencies into euros. Variations in exchange rates affect such items in the Group’s consolidated financial statements, even if the value of the item remains unchanged in its original currency. The Group uses end-of-period exchange rates for the translation of balance sheet data and period-average exchange rates for the translation of income statement and cash flow data.
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LEGRAND
REGISTRATION DOCUMENT 2018
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