LEGRAND / 2018 Registration document

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CONSOLIDATED FINANCIAL INFORMATION CONCERNING THE GROUP’S ASSETS, LIABILITIES, FINANCIAL POSITION AND RESULTS

DIVIDEND DISTRIBUTION POLICY

8.4 – DIVIDEND DISTRIBUTION POLICY

The Company may decide to distribute dividends at the recommendation of the Board of Directors and following a decision of its shareholders in a Shareholders’ General Meeting. However, the Company is under no obligation to distribute dividends and the decision on whether or not to recommend the distribution of a dividend and the amount of that dividend will depend on: W the Company’s results and cash flows; W the Company’s financial position; W the Company’s forecasts;

W the interests of the Company’s shareholders; W the general conditions of the Company’s operations; and W any other factor that the Company’s Board of Directors deems relevant. Notwithstanding the factors listed above, there is no formula for determining the amount of dividend to be distributed. In addition, the French Commercial Code and the Company’s articles of association limit the Company’s right to distribute dividends in certain circumstances.

Dividends distributed in respect of 2015, 2016 and 2017 financial years were as follows:

Earnings distributed per share

Eligible for the 40% income tax allowance mentioned in article 158-3-2 of the French General Tax Code

Not eligible for the 40% income tax allowance mentioned in article 158-3-2 of the French General Tax Code

Dividend per share

Financial year

Number of shares entitled to dividends

2015

267,006,775 shares with par value of €4 each

€1.15*

€0.72

€0.00

2016

266,508,331 shares with par value of €4 each

€1.19**

€0.79

€0.00

2017

267,316,360 shares with par value of €4 each

€1.26**

€0.93

€0.00

* Since €0.43 of the dividend distributed for the 2015 financial year constitutes, for tax purposes, a repayment of paid-in capital as defined by article 112(1)(1) of the French General Tax Code, this sum is not considered as distributed income for tax purposes. ** Since €0.40 of the dividend distributed for the 2016 financial year constitutes, for tax purposes, a repayment of paid-in capital as defined by article 112(1)(1) of the French General Tax Code, this sum is not considered as distributed income for tax purposes. ** Since €0.33 of the dividend distributed for the 2017 financial year constitutes, for tax purposes, a repayment of paid-in capital as defined by article 112(1)(1) of the French General Tax Code, this sum is not considered as distributed income for tax purposes.

Subject to approval by shareholders in the Shareholders’ General Meeting to be held on May 29, 2019, the Company will distribute a dividend of €1.34 per share (1) for the 2018 financial year, on June 5, 2019.

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(1) For more information on the composition of the dividend, please refer to resolution 3 of the draft resolutions and to the related explanatory statement in Appendix 4 of this document.

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LEGRAND

REGISTRATION DOCUMENT 2018