LEGRAND / 2018 Registration document

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CONSOLIDATED FINANCIAL INFORMATION CONCERNING THE GROUP’S ASSETS, LIABILITIES, FINANCIAL POSITION AND RESULTS

CONSOLIDATED FINANCIAL STATEMENTS IN ACCORDANCE WITH IFRS FOR THE YEARS ENDED DECEMBER 31, 2018 AND DECEMBER 31, 2017

8.1 – CONSOLIDATED FINANCIAL STATEMENTS IN ACCORDANCE WITH IFRS FOR THE YEARS ENDED DECEMBER 31, 2018 AND DECEMBER 31, 2017

8.1.1 – Consolidated key figures

2018

2017

(in € millions)

Net sales

5,997.2

5,520.8

1,212.1

1,104.9

Adjusted operating profit (1)

As % of net sales

20.2%

20.0%

20.2% before acquisitions*

Operating profit

1,139.0

1,025.6

As % of net sales

19.0%

18.6%

771.7

625.7

Adjusted net profit attributable to the Group (2)

As % of net sales

12.9%

11.3%

Net profit attributable to the Group

771.7

711.2

As % of net sales

12.9%

12.9%

Normalized (3) free cash flow (4)

893.5

735.2

As % of net sales

14.9%

13.3%

746.3

695.8

Free cash flow (4)

As % of net sales

12.4%

12.6%

2,296.6

2,219.5

Net financial debt at December 31 (5)

* At 2017 scope of consolidation. (1) Adjusted operating profit is defined as operating profit adjusted for amortization and depreciation of revaluation of assets at the time of acquisitions and for other P&L impacts relating to acquisitions and, where applicable, for impairment of goodwill. (2) 2017 adjusted net profit attributable to the Group does not take into account the net favorable effect of significant non-recurring gains and expenses resulting from announced changes in tax measures, primarily in France and in the United States. This net favorable effect is adjusted as it does not reflect an underlying performance. (3) Normalized free cash flow is defined as the sum of net cash from operating activities - based on a working capital requirement representing 10% of the last 12 months’ 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. (4) 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. (5) Net financial debt is defined as the sum of short-term borrowings and long-term borrowings, less cash and cash equivalents and marketable securities.

The reconciliation of consolidated key figures with the financial statements is available in the appendices to the 2018 results press release.

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LEGRAND

REGISTRATION DOCUMENT 2018