LEGRAND / 2018 Registration document

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

SELECTED FINANCIAL INFORMATION

5.15 –

SELECTED FINANCIAL INFORMATION

Please read this selected financial information in tandemwith the information in the Group’s consolidated financial statements, the Notes thereto (included in chapter 8 of this Registration Document) and all other financial information included elsewhere in this Registration Document.

The selected financial information for the years ended December 31, 2018, 2017 and 2016 has been drawn from the consolidated financial statements prepared in accordance with IFRS which can be found in chapter 8 of this Registration Document and have been audited by PricewaterhouseCoopers Audit and Deloitte & Associés.

2018

2017

2016

(in € millions except %)

Net sales

5,997.2

5,520.8

5,018.9

Total sales growth

8.6%

10.0%

4.3%

Sales growth at constant scope of consolidation and exchange rates

4.9%

3.1%

1.8%

1,346.2

1,241.5

1,109.0

EBITDA (1)

1,374.1

1,262.7

1,134.1

Maintenable EBITDA (2)

1,212.1

1,104.9

978.5

Adjusted operating profit (3)

As % of net sales

20.2%

20.0%

19.5%

1,237.8

1,125.4

1,003.6

Maintenable adjusted operating profit (2)

771.7

625.7

567.3

Adjusted net profit attributable the Group (4)

As % of net sales

12.9%

11.3%

10.3%

772.4

713.2

630.2

Profit for the period (5)

As % of net sales

12.9%

12.9%

11.4%

Free cash flow (6)

746.3

695.8

673.0

As % of net sales

12.4%

12.6%

12.2%

Normalized free cash flow (7)

893.5

735.2

623.9

As % of net sales

14.9%

13.3%

11.3%

2,296.6

2,219.5

957.0

Net financial debt at December 31 (8)

(1) EBITDA is defined as operating profit plus depreciation and impairment of tangible assets, amortization and impairment of intangible assets (including capitalized development costs) and impairment of goodwill. (2) Maintainable EBITDA and maintainable adjusted operating income are used to analyze EBITDA and adjusted operating income excluding the impact of restructuring costs (including capital gains or losses on the sale of assets). (3) Adjusted operating income is defined as operating income adjusted for amortization of revaluation of intangible assets at the time of acquisitions and for expense/ income relating to acquisitions and, where applicable, for impairment of goodwill. (4) Adjusted net profit attributable to the Group does not take into account the net favorable effect of non-recurring gains and expenses resulting from announced changes in corporate taxation, primarily in France and in the United States. This net favorable effect is adjusted as it does not reflect underlying recurring performance. For more details, readers are invited to consult chapter 8.8.1 of this Registration Document. (5) Net income corresponds to published net income (before minority interests). (6) Free cash flow is defined as the sum of net cash from operating activities and net proceeds from sales of fixed and financial assets, less capital expenditure and capitalized development costs. (7) Normalized free cash flow is defined as the sum of net cash from operating activities—based on a normalized working capital requirement representing 10% of the last 12 month’s sales and whose change at constant scope of consolidation and exchange rates is adjusted for the period considered—and net proceeds of sales from fixed and financial assets, less capital expenditure and capitalized development costs. (8) Net financial debt is defined as the sum of short-term borrowings and long-term borrowings, less cash and cash equivalents and marketable securities.

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LEGRAND

REGISTRATION DOCUMENT 2018