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

The table below shows a reconciliation of the Group’s free and normalized free cash flow with net cash from operating activities:

2018

2017

2016

(in € millions)

Net cash from operating activities

925.3

863.7

831.8

Net proceeds from sales of fixed and financial assets

5.3

10.3

2.1

Capital expenditures

(150.6)

(144.6)

(126.3)

Capitalized development costs

(33.7)

(33.6)

(34.6)

Free cash flow

746.3

695.8

673.0

Increase (decrease) in working capital requirement

175.2

56.1

(40.4)

(Increase) decrease in normalized working capital requirement

(28.0)

(16.7)

(8.7)

Normalized free cash flow

893.5

735.2

623.9

The table below shows changes in the net financial debt of Legrand:

2018

2017

2016

(in € millions)

Long-term borrowings

2,918.6

2,457.1

1,550.7

Short-term borrowings

400.5

585.4

346.4

Cash and cash equivalents and marketable securities

(1,022.5)

(823.0)

(940.1)

Net financial debt

2,296.6

2,219.5

957.0

The table below shows the changes in Legrand’s equity:

2018

2017

2016

(in € millions)

Share capital

1,070.0

1,067.2

1,069.3

Retained earnings

4,051.8

3,644.6

3,227.8

Translation reserves

(530.6)

(573.2)

(240.0)

Equity attributable to equity holders of Legrand

4,591.2

4,138.6

4,057.1

178

LEGRAND

REGISTRATION DOCUMENT 2018