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

3.3.4 Future minimum lease payments under finance leases

December 31, 2018

December 31, 2017

(in € millions)

Due in less than one year

1.7

1.4

Due in one to two years

1.7

1.6

Due in two to three years

1.6

1.5

Due in three to four years

1.4

1.5

Due in four to five years

2.1

1.3

Due beyond five years

0.0

2.1

Gross value of future minimum lease payments

8.5

9.4

Of which accrued interest

(0.5)

(0.1)

NET PRESENT VALUE OF FUTURE MINIMUM LEASE PAYMENTS

8.0

9.3

3.4 INVENTORIES Inventories are measured at the lower of cost (of acquisition or production) or net realizable value, with cost determined principally on a first-in, first-out (FIFO) basis. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.

Impairment provisions are recognized when inventories are considered wholly or partially obsolete, and for finished goods inventories when their net realizable value is lower than their net book value.

Inventories are as follows:

December 31, 2018

December 31, 2017

(in € millions)

Purchased raw materials and components

347.6

289.7

Sub-assemblies, work in progress

98.5

87.4

Finished products

563.7

491.0

Gross value at the end of the period

1,009.8

868.1

Impairment

(123.9)

(120.7)

NET VALUE AT THE END OF THE PERIOD

885.9

747.4

8

3.5 TRADE RECEIVABLES Trade receivables are initially recognized at fair value and are subsequently measured at amortized cost. In accordance with IFRS 9, expected credit losses on trade receivables are estimated based on a provision table, by applying provision rates depending on the age of the receivables.

Furthermore, a provision can be recognized in the income statement when there is objective evidence of impairment such as: W when a debtor has defaulted; or W when a debtor’s credit rating has been downgraded or its business environment has deteriorated.

Trade receivables can be analyzed as follows:

December 31, 2018

December 31, 2017

(in € millions)

Trade receivables

750.4

703.9

Impairment

(84.0)

(79.0)

NET VALUE AT THE END OF THE PERIOD

666.4

624.9

275

LEGRAND

REGISTRATION DOCUMENT 2018