LEGRAND / 2018 Registration document

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MANAGEMENT REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2018

TABLE OF CONSOLIDATED FINANCIAL RESULTS OVER THE LAST FIVE YEARS

5.13 –

TRENDS AND PROSPECTS

In 2019, the Group will pursue its value-creating strategy of profitable and sustainable growth. Based on macroeconomic forecasts for 2019 that are favorable overall but uncertain, Legrand has set a target for organic growth in sales of between 0% and +4% in 2019. Additionally, the Group has

retained a target for adjusted operating margin before acquisitions (at 2018 scope of consolidation) of between 19.9% (1) and 20.7% (1) of sales in 2019. Legrand will also pursue its acquisition strategy and its CSR approach by launching a new roadmap for 2019-2021.

5.14 – TABLE OF CONSOLIDATED FINANCIAL RESULTS OVER THE LAST FIVE YEARS

(in € millions except number of shares, earnings per share and number of employees)

2014

2015

2016

2017

2018

5

End of period share capital Share capital

1,065.4

1,067.7

1,069.3

1,067.2

1,070.0

Number of shares

266,357,615 266,930,602 267,327,374 266,805,751 267,495,149

Earnings Net sales

4,499.1

4,809.9

5,018.9

5,520.8

5,997.2

Profit before tax, depreciation and amortization

937.2

979.7

1,025.1

1,154.8

1,281.3

Income tax expense

(238.4)

(258.0)

(218.6)

(224.2)

(301.3)

Share of profits (losses) of equity-accounted entities

0.0

0.0

(1.3)

(1.5)

(0.4)

Profit for the period

533.3

552.0

630.2

713.2

772.4

Dividends paid

279.3

293.1

307.1

317.1

336.8

Earnings per share (1) Profit before tax, depreciation and amortization

3.527

3.678

3.848

4.334

4.801

Basic earnings per share

2.001

2.067

2.359

2.669

2.892

Dividend per share

1.05

1.10

1.15

1.19

1.26

Personnel End of period number of employees

33,556

32,667

32,722

34,105

34,384

Personnel costs

1,170.8

1,256.3

1,299.1

1,411.3

1,512.3

(1) Earnings per share are computed on the basis of the number of circulating ordinary shares during the period, or 265,703,963 shares in 2014, 266,375,725 shares in 2015, 266,395,359 shares in 2016 and 266,432,980 shares in 2017 and 266,878,862 shares in 2018.

(1) After an estimated favourable impact of around +0.1 point linked to the implementation of FRS 16 standard from January 1, 2019.

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LEGRAND

REGISTRATION DOCUMENT 2018