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

4.2

STOCK OPTION PLANS AND PERFORMANCE SHARE PLANS

The expense recognized by crediting equity is adjusted at each period-end during the vesting period to take into account changes in the number of shares that are expected to be delivered to employees when the performance shares vest or the stock options are exercised.

The cost of stock options or performance shares is measured at the fair value of the award on the grant date, using the Black & Scholes option pricing model or the binomial model, and is recognized in the income statement under personnel costs on a straight-line basis over the vesting period with a corresponding adjustment to equity. Changes in the fair value of stock options after the grant date are not taken into account.

4.2.1 Performance share plans The following performance share plans were also approved by the Company’s Board of Directors:

2015 Plan

2016 Plan

2017 Plan

2018 Plans

Date approved by shareholders

May 24, 2013

May 24, 2013

May 27, 2016

May 27, 2016

Grant date

May 29, 2015

May 27, 2016

May 31, 2017

May 30, 2018

498,323 (1)

487,532 (1)

518,900 (1)

Total number of performance share rights initially granted

390,866 (1)

o/w to Executive Director

14,659 (1)

15,361 (1)

12,388 (1)

19,366 (1)

W Gilles Schnepp

14,659

15,361

12,388

0

W Benoît Coquart

N/A

N/A

N/A

19,366

Total IFRS 2 charge (in € millions)

16.3 (2)

20.3 (2)

24.8 (2)

28.5 (2)

June 15, 2021 (3) June 15, 2022 (4) June 15, 2023 (3) June 15, 2022 (4)

End of vesting period

June 17, 2019

June 17, 2020

June 17, 2021

End of lock-up period

June 17, 2019

June 17, 2020

June 17, 2021

Number of performance shares acquired as of December 31, 2018 Number of performance share rights cancelled, forfeited or adjusted

0

0

0

0

(19,078)

(15,961)

(2,692)

(56,530) (5)

PERFORMANCE SHARE RIGHTS OUTSTANDING AS OF DECEMBER 31, 2018

334,336

479,245

471,571

516,208

(1) Given the dividend distribution features approved at the General Meetings of Shareholders on May 29, 2015, on May 27, 2016, on May 31, 2017 and on May 30, 2018, the number of remaining performance shares was adjusted to take into account the impact of these transactions on the interests of performance share beneficiaries in accordance with article L. 228-99 of the French Commercial Code. Moreover, the number of performance shares has been reduced following the Gilles Schnepp’s decision to waive part of his entitlement to performance shares granted under the 2015 and 2016 plans. (2) Total charge estimated at the grant date assuming a 100% achievement for each performance criteria. This charge is spread over the four years of the vesting period. (3) Date applicable to the executive officer and members of the Executive Committee.

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(4) Date applicable to beneficiaries other than the executive officer and members of the Executive Committee. (5) Including the number of performance shares adjusted for the performance criteria fulfillment at 90.8%.

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LEGRAND

REGISTRATION DOCUMENT 2018