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

Acquisition price allocations, which are performed within one year of each business combination, are as follows (excluding inventory step-up):

12 months ended

December 31, 2018

December 31, 2017

(in € millions)

Trademarks

35.5

184.3

Deferred taxes on trademarks

(7.7)

(22.4)

Patents

17.3

67.1

Deferred taxes on patents

(3.6)

(6.2)

Other intangible assets

0.0

266.5

Deferred taxes on other intangible assets

0.0

(18.9)

Tangible assets

0.0

0.0

Deferred taxes on tangible assets

0.0

0.0

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

Value in use

Carrying amount of goodwill

Discount rate (before tax)

Growth rate to perpetuity

Recoverable amount

(in € millions)

France

867.3

8.6%

2.0%

Italy

381.5

10.1%

2.0%

Rest of Europe

Value in use

325.0

8.1 to 19.7%

2.0 to 5.0%

North and Central America

2,082.5

9.5%

3.1%

Rest of the world

665.7

9.6 to 16.1%

2.0 to 5.0%

NET VALUE AT THE END OF THE PERIOD

4,322.0

No goodwill impairment losses were identified in the period ended December 31, 2018 including for CGUs facing a difficult or uncertain macro-economic environment.

Sensitivity tests performed on the discount rates, long-term growth rates and operating margin rates showed that a 50-basis point unfavorable change in each of these three parameters would not lead to any material impairment of goodwill for any of the CGUs taken individually.

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

Value in use

Carrying amount of goodwill

Discount rate (before tax)

Growth rate to perpetuity

Recoverable amount

(in € millions)

France

688.0

8.4%

2.0%

Italy

381.5

9.1%

2.0%

Rest of Europe

Value in use

327.2

7.8 to 19.7%

2.0 to 5.0%

North and Central America

1,911.6

10.3%

3.2%

Rest of the world

622.0

9.1 to 15.7%

2.0 to 5.0%

NET VALUE AT THE END OF THE PERIOD

3,930.3

No goodwill impairment losses were identified in the period ended December 31, 2017.

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LEGRAND

REGISTRATION DOCUMENT 2018