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

The reconciliation of adjusted net profit attributable to the Group with net profit attributable to the Group is also presented in the following table:

2018

2017

(in € millions)

Adjusted net profit attributable to the Group

771.7

625.7

Tax income linked to mechanical revaluation of deferred tax liabilities on trademarks resulting from the announcement of reductions in corporate income tax rates, primarily in France Tax income resulting from refund of tax on dividends paid since 2013, net of the exceptional corporate income tax on companies in 2017 in France Net tax income linked to changes in tax measures in the United States, mainly accounting impacts due to mechanical revaluation of deferred tax assets and liabilities

0.0

26.4

0.0

18.3

0.0

40.8

Total adjustments

0.0

85.5

Net profit attributable to the Group

771.7

711.2

8.1.2 – Consolidated statement of income

12 months ended

December 31, 2018

December 31, 2017

(in € millions)

Net sales (Notes 2.1 and 2.2)

5,997.2

5,520.8

Operating expenses (Note 2.3) Cost of sales

(2,869.7)

(2,627.0)

Administrative and selling expenses

(1,606.8)

(1,511.6)

Research and development costs

(276.5)

(252.1)

Other operating income (expenses)

(105.2)

(104.5)

Operating profit

1,139.0

1,025.6

Financial expenses

(79.1)

(92.1)

Financial income

12.0

13.7

Exchange gains (losses)

2.2

(8.3)

Financial profit (loss)

(64.9)

(86.7)

Profit before tax

1,074.1

938.9

8

Income tax expense (Note 2.4)

(301.3)

(224.2)

Share of profits (losses) of equity-accounted entities

(0.4)

(1.5)

Profit for the period

772.4

713.2

Of which: W net profit attributable to the Group*

771.7

711.2

W minority interests

0.7

2.0

Basic earnings per share (euros) (Note 4.1.3)

2.892

2.669

Diluted earnings per share (euros) (Note 4.1.3)

2.869

2.646

*

Refer to the previous table.

The accompanying Notes are an integral part of these consolidated financial statements.

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LEGRAND

REGISTRATION DOCUMENT 2018