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

Target for annual achievements of the Group’s roadmap objectives

Between 70% and 100% Between 70% and 100%

Between 100% and 105% Between 100% and 125%

Between 105% and 150% Between 125% and 200%

Annual rate of achievement (1)

0%

150%

Annual rates of achievement of the Group’s CSR roadmap

Below 70%

Above 200%

(1) Linear calculation of pay-out rate for any result between the limits indicated above.

The final pay-out rate for each criterion corresponds to the arithmetic average over a three-year period of the annual achievement rates.

If all the performance shares from the 2015 to 2018 plans were to vest according to the target allocation before application of the performance criteria (i.e. 1,801,360 shares), the Company’s capital would be diluted by 0.7% as of December 31, 2018.

4.2.2 Stock option plans No stock option plans have been implemented since the 2010 Plan. The following stock option plans were approved by the Company’s Board of Directors in previous years:

2008 Plan

2009 Plan

2010 Plan

Date approved by shareholders

May 15, 2007

May 15, 2007

May 15, 2007

Grant date

March 5, 2008

March 4, 2009

March 4, 2010

1,192,949 (1)

3,283,257 (1)

Total number of options granted

2,024,675 (1)

o/w to Executive Directors

142,738 (1)

95,459 (1)

222,807 (1)

W Gilles Schnepp

72,824 (1)

48,711 (1)

137,537 (1)

W Olivier Bazil

69,914 (1)

46,748 (1)

85,270 (1)

Start of exercise period

March 6, 2012

March 5, 2013

March 5, 2014

Expiry of exercise period

March 5, 2018

March 4, 2019

March 4, 2020

€20.21 (1) Average closing price over the 20 trading days preceding the grant date

€12.82 (1) Average closing price over the 20 trading days preceding the grant date

€21.32 (1) Average closing price over the 20 trading days preceding the grant date

Exercise price

Exercise terms (plans comprising several tranches)

(2)(3)

(2)(3)

(2)(3)

Number of options exercised as of December 31, 2018

(1,880,609)

(992,360)

(2,341,653)

Number of options cancelled or forfeited

(144,066)

(108,813)

(240,817)

Stock options outstanding as of December 31, 2018

0

91,776

700,787

(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 and exercise price of stock options were adjusted to take into account the impact of these transactions on the interests of stock option beneficiaries, in accordance with article L. 228-99 of the French Commercial Code. (2) Options vest after a maximum of four years, except in the event of resignation or termination for willful misconduct. (3) All these plans were subject to performance conditions (see Note 12 to the consolidated financial statements for the 12 months ended December 31, 2014).

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LEGRAND

REGISTRATION DOCUMENT 2018