LEGRAND_REGISTRATION_DOCUMENT_2017

05

MANAGEMENTREPORTONTHECONSOLIDATEDFINANCIALSTATEMENTSFORTHEFINANCIALYEARENDEDDECEMBER31,2017

Contractual obligations

5.8 – CONTRACTUAL OBLIGATIONS

The following table summarizes the Company’s contractual obligations, commercial commitments and principal maturity dates on a consolidated basis as of December 31, 2017.

Payments due by period

Total

< 1 year

1-3 years

3-5 years

> 5 years

At December 31, 2017 (in € millions)

Borrowings

3,033.2

584.1

5.3

419.4

2,024.4

Finance leases

9.3

1.3

3.1

2.8

2.1

Gross debt*

3,042.5

585.4

8.4

422.2

2,026.5

Operating leases

245.0

65.4

89.1

48.9

41.6

TOTAL CONTRACTUAL OBLIGATIONS

3,287.5

650.8

97.5

471.1

2,068.1

*

Including debt issuance costs.

5.9 – VARIATIONS IN EXCHANGE RATES

statements, even if the value of the item remains unchanged in its original currency. The Group uses end-of-period exchange rates for the translation of balance sheet data and period-average exchange rates for the translation of income statement and cash flow data. The following table shows, for the periods indicated, data on euro/ US dollar exchange rates from 2013 through 2017, expressed in euros per US dollar. This exchange-rate information is provided as an indication only and does not represent the exchange rates used by Legrand in the preparation of its consolidated financial statements:

A significant number of the Group’s foreign subsidiaries operate in countries outside the euro zone. In 2017, approximately 64% of the Group’s net sales were denominated in currencies other than the euro. As a consequence, the Group’s consolidated sales, operating income and free cash flow could be affected by variations in exchange rates between the euro and other currencies. To prepare its consolidated financial statements, the Group must convert assets, liabilities, income and expenses that are recognized in other currencies into euros. Variations in exchange rates affect such items in the Group’s consolidated financial

Period-end rate

Average rate (1)

High

Low

(euros per US dollar)

2013

0.73

0.75

0.78

0.72

2014

0.82

0.75

0.82

0.72

2015

0.92

0.90

0.95

0.83

2016

0.95

0.90

0.96

0.87

2017

0.83

0.89

0.96

0.83

(1) The average exchange rate for the euro is calculated as the average monthly figures for the relevant year-long period.

Readers are referred to note 5.1.2.2 appended to the consolidated financial statements mentioned in chapter 8 of the present Registration Document for a description of management of exchange risk.

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REGISTRATION DOCUMENT 2017 - LEGRAND