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

Basic and diluted earnings per share, calculated on the basis of the average number of ordinary shares outstanding during the period, are as follows:

12 months ended

December 31, 2018

December 31, 2017

Net profit attributable to the Group (in € millions)

A

771.7

711.2

Average number of shares (excluding shares held in treasury)

B

266,878,862

266,432,980

Average dilution from: W performance shares

1,425,121

1,109,736

W stock options

719,713

1,251,154

Average number of shares after dilution (excluding shares held in treasury)

C

269,023,696

268,793,870

Number of stock options and performance share grants outstanding at the period end

2,593,923

2,829,361

Sales (buybacks) of shares and transactions under the liquidity contract (net during the period)

(860,219)

20,433

Shares allocated during the period under performance share plans

0

0

A/B

2.892

2.669

Basic earnings per share (euros)

A/C

2.869

2.646

Diluted earnings per share (euros)

1.260

1.190

Dividend per share (euros)

In 2017, net profit attributable to the Group benefited from the following non recurring favorable impacts: W the favorable accounting impact representing respectively a €26.4 million tax income in 2017, linked to mechanical revaluation of deferred tax liabilities on trademarks resulting from the announcement of reductions in corporate income tax rates, primarily in France;

W the favorable accounting impact representing a €18.3 million tax income in 2017 in France, resulting from refund of tax on dividends paid since 2013, net of the exceptional income tax on companies in 2017 in France; and W the favorable accounting impact representing a €40.8 million net tax income in 2017 linked to changes in tax measures in the United States, mainly accounting impacts due to mechanical revaluation of deferred tax assets and liabilities.

The corresponding basic earnings per share and diluted earnings per share are as follows:

12 months ended

December 31, 2018

December 31, 2017

Adjusted net profit attributable to the Group (in € millions)

D

771.7

625.7

D/B

2.892

2.348

Adjusted basic earnings per share (euros)

D/C

2.869

2.328

Adjusted diluted earnings per share (euros)

As mentioned above, during 2018, the Group: W acquired 550,000 shares for cancellation; W issued 689,398 shares under stock option plans;

During 2017, the Group: W issued 778,377 shares under stock option plans; and W sold a net 20,433 shares under the liquidity contract. These movements were taken into account on an accrual basis in the computation of the average number of ordinary shares outstanding during the period, in accordance with IAS 33. If the shares had been issued and bought back on January 1, 2017, basic earnings per share and diluted earnings per share would have amounted to €2.666 and €2.640 respectively for the 12 months ended December 31, 2017.

W purchased a net 310,219 shares under the liquidity contract. These movements were taken into account on an accruals basis in the computation of the average number of ordinary shares outstanding during the period, in accordance with IAS 33. If the shares had been issued and bought back on January 1, 2018, earnings per share and diluted earnings per share would have amounted to €2.895 and €2.868 respectively for the 12 months ended December 31, 2018.

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LEGRAND

REGISTRATION DOCUMENT 2018