LEGRAND / 2018 Registration document

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c o n t e n t s

2 1

6

INTEGRATED REPORT

5

CORPORATE GOVERNANCE

179

6.1 – Administration and management of the Company 6.2 – Compensation and benefits of company officers

180

GROUP OVERVIEW

29 30

208

2.1 – Legrand and its business

2.2 – A profitable growth strategy based on developing leading positions 2.3 – An organization serving both the Group’s strategy and its customers

7

37

SHARE OWNERSHIP

243 244 246 248 249

44 49

7.1 – Share capital ownership structure

2.4 – Other information

7.2 – Stock option plans 7.3 – Performance shares

3

7.4 – Regulated agreements and commitments

INTERNAL CONTROL AND RISK MANAGEMENT

53

8

CONSOLIDATED FINANCIAL INFORMATION CONCERNING THE GROUP’S ASSETS, LIABILITIES, FINANCIAL POSITION AND RESULTS 8.1 – Consolidated financial statements in accordance with IFRS for the years ended December 31, 2018 and December 31, 2017

3.1 – Environment and organization of internal control and risk management

54 56 57 58

3.2 – Internal control system 3.3 – Risk management system 3.4 – Internal audit system

251

3.5 – Procedures for preparing and processing accounting and financial information 58 3.6 – Risk factors and control mechanisms in place 60 3.7 – Insurance policies and risk coverage 74

252

8.2 – Statutory Auditors’ report on the consolidated financial

statements in accordance with IFRS for the year ended December 31, 2018

4

CORPORATE SOCIAL RESPONSIBILITY AND DECLARATION OF EXTRA-FINANCIAL PERFORMANCE 4.2 – Offering users sustainable solutions 4.3 – Acting ethically towards society 4.4 – Being committed to our employees 4.5 – Limiting our environmental impact 4.1 – The Group’s CSR strategy

302 306 307 308 308 308 309 311 312 315 320

8.3 – Statutory Auditors’ fees 8.4 – Dividend distribution policy 8.5 – Legal and arbitration proceedings 8.6 – Material changes in the Company’s financial or trading position

75 76 87 99

8.7 – Material agreements 8.8 – Capital expenditure

112 125 136 142 153

4.6 – Duty of care

9

ADDITIONAL INFORMATION

4.7 – Overview of indicators and additional information

9.1 – Information about the company

4.8 – Statutory auditors’ report

9.2 – Share capital

9.3 – Memorandum and articles of association 9.4 – Identity of persons responsible for the registration document and auditing the financial statements

5

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

323

157 158 158 160 164 170 171 172 172 172 173 174 174 175

T

CROSS-REFERENCE TABLES

327

5.1 – Preliminary disclaimer

5.2 – 2018 Highlights 5.3 – Operating income

Cross-reference table – Annual Financial Report (article 222-3 of the AMF’s General Regulation) Cross-reference table – European Commission regulation (EC) 809/2004 of April 29, 2004 Cross-reference table – management report (including corporate governance report) Cross-reference table – filing of annual financial statements (article L. 232-23 of the French Commercial Code)

328

5.4 – Year-on-year comparison: 2018 and 2017

328

5.5 – Cash flows and borrowing

5.6 – Capital expenditure

333

5.7 – Off balance sheet commitments 5.8 – Contractual obligations 5.9 – Variations in exchange rates 5.10 – Quantitative and qualitative disclosures relating to financial risks 5.11 – Summary of critical accounting policies

336

A

APPENDIX Appendix 1 Appendix 2 Appendix 3 Appendix 4

337 338 357 379 383

5.12 – New IFRS pronouncements 5.13 – Trends and prospects

5.14 – Table of consolidated financial results over the last five years

175 176

5.15 – Selected financial information