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 following impairment testing parameters were used in the period ended December 31, 2018:

Value in use

Carrying amount of trademarks with indefinite useful lives

Recoverable amount

Discount rate (before tax)

Growth rate to perpetuity

(in € millions)

Value in use

1,408.0

9.8 to 11.1%

2.9 to 3.1%

No impairment was recognized in the period ended December 31, 2018. Sensitivity tests were performed on the discount rates and long- term growth rates used for impairment testing purposes. Based on the results of these tests, a 50-basis point unfavorable change

in these rates would not lead to any impairment losses being recognized on trademarks with an indefinite useful life.

The following impairment testing parameters were used in the period ended December 31, 2017:

Value in use

Carrying amount of trademarks with indefinite useful lives

Recoverable amount

Discount rate (before tax)

Growth rate to perpetuity

(in € millions)

Value in use

1,408.0

9.5 to 10.3%

2.9 to 3.1%

No impairment was recognized in the period ended December 31, 2017.

3.1.2 Patents Patents can be analyzed as follows:

December 31, 2018

December 31, 2017

(in € millions)

Gross value at the beginning of the period

672.9

619.5

W Acquisitions

17.3

67.1

W Disposals

0.0

0.0

W Translation adjustments

7.1

(13.7)

Gross value at the end of the period

697.3

672.9

Accumulated amortization and impairment at the beginning of the period

(591.2)

(594.7)

W Amortization expense

(10.4)

(5.6)

W Reversals

0.0

0.0

8

W Translation adjustments

(3.0)

9.1

Accumulated amortization and impairment at the end of the period

(604.6)

(591.2)

NET VALUE AT THE END OF THE PERIOD

92.7

81.7

To date, no impairment has been recognized for these patents.

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REGISTRATION DOCUMENT 2018