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

Non-financial performance criterion (applicable to the 2016 and 2017 performance share plans)

Applicable to beneficiaries with the exception of the Executive Director

Between 70% and 100%

Between 100% and 105%

Between 105% and 150%

Pay-out rate (1)

0%

Capped at 150%

Average rate of achievement of Group CSR Roadmap priorities over a three-year period

Between 70% and 100%

Between 100% and 125%

Between 125% and 200%

Below 70%

Above 200%

Applicable to the Executive Director

Between 70% and 90%

Between 90% and 97%

Between 97% and 150%

Pay-out rate (1)

0%

Capped at 150%

Average rate of achievement of Group CSR Roadmap priorities over a three-year period

Between 70% and 90%

Between 90% and 125%

Between 125% and 213%

Below 70%

Above 213%

(1) For any point between the limits given in the table above, the pay-out rate would be calculated in a linear way.

4.2.1.2 2018 performance share plans The final number of shares granted to beneficiaries is determined on the condition that the beneficiary is present within the Group at the expiry of vesting period and several performance criteria.

For the executive officer and members of the Executive Committee, the vesting period is three years, with an additional two-year holding period; for other beneficiaries, the vesting period is four years, with no holding period.

Performance criteria applicable to the executive officer and members of the Executive Committee

The performance criteria applicable to the executive officer and members of the Executive Committee are defined as follows:

Weight of performance criteria

Type of performance criteria

Description of target-setting criteria and method

Target: three-year average of the upper and lower ranges of the annual target concerned. Comparison of the target with the average of achievements over three years. Target: three-year average of the upper and lower ranges of the annual target concerned. Comparison of the target with the average of achievements over three years. Target: arithmetic average over three years of the annual rates of achievement of the Group’s CSR roadmap. Difference in performance between the Legrand stock market price and that of the CAC 40 index over a three-year period.

Target of organic growth of revenues

1/4

Target of adjusted operating margin before acquisitions (1)

1/4

8

Annual rates of achievements of the Group’s CSR roadmap Legrand stock market performance compared with the performance of the CAC 40 index

1/4

1/4

(1) The adjusted operating margin before acquisitions corresponds to the adjusted operating profit (see consolidated key figures).

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LEGRAND

REGISTRATION DOCUMENT 2018