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

4.5.1.1 Analysis of pension and other post-employment defined benefit obligations The total (current and non-current) obligation under the Group’s pension and other post-employment defined benefit plans, consisting primarily of plans in France, Italy, the United States and United Kingdom, is as follows:

December 31, 2018

December 31, 2017

(in € millions)

Defined benefit obligation Projected benefit obligation at beginning of period

343.7

356.8

Service cost

8.3

9.3

Interest cost

8.6

9.3

Benefits paid or unused

(22.3)

(20.5)

Employee contributions

0.4

0.3

Actuarial losses/(gains)

(7.7)

5.4

Curtailments, settlements, special termination benefits

0.0

0.0

Translation adjustments

1.7

(17.4)

Other

0.1

0.5

PROJECTED BENEFIT OBLIGATION AT END OF PERIOD

332.8

343.7

Fair value of plan assets Fair value of plan assets at beginning of period

182.2

182.7

Expected return on plan assets

5.5

5.6

Employer contributions

7.5

8.2

Employee contributions

0.7

0.7

Benefits paid

(13.2)

(13.6)

Actuarial (losses)/gains

(9.2)

13.0

Translation adjustments

2.8

(14.5)

Other

0.0

0.1

FAIR VALUE OF PLAN ASSETS AT END OF PERIOD

176.3

182.2

PROVISIONS RECOGNIZED IN THE BALANCE SHEET

160.5

161.5

Current liability

4.6

7.9

Non-current liability

155.9

153.6

Non-current asset

4.0

0.0

Actuarial losses recognized in equity in 2018 amounted to €1.5 million. The €1.5 million actuarial losses resulted from: W €0.3 million in gains from changes in financial assumptions; W €0.6 million in gains from changes in demographic assumptions; and W €2.4 million in experience losses. The discount rates used are determined by reference to the yield on high-quality bonds based on the following benchmark indices: W Euro zone: iBoxx € Corporates AA 10+;

Sensitivity tests were performed on: W the discount rate. According to the results of these tests, a 50-basis point reduction in the rate would lead to the recognition of additional actuarial losses of around €28.0 million and would increase the provision as of December 31, 2018 by the same amount; W the rate of future salary increases. According to the results of these tests, a 50-basis point increase in the rate would lead to the recognition of additional actuarial losses of around €9.4 million and would increase the provision as of December 31, 2018 by the same amount.

W United Kingdom: iBoxx £ Corporates AA 15+; W United States: Citigroup Pension Liability Index.

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LEGRAND

REGISTRATION DOCUMENT 2018