LEGRAND_REGISTRATION_DOCUMENT_2017

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MANAGEMENTREPORTONTHECONSOLIDATEDFINANCIALSTATEMENTSFORTHEFINANCIALYEARENDEDDECEMBER31,2017

New IFRS pronouncements

5.12 – NEW IFRS PRONOUNCEMENTS

Main standards and interpretations published by the IASB but not yet compulsory were as follows: W IFRS 9 – Financial Instruments; W IFRS 15 – Revenue from Contracts with Customers; and W IFRS 16 – Leases.

Summaries of these standards and their possible consequences as regards the financial information provided by the Group are presented in note 1.2.1.3 to the consolidated financial statements referred to in chapter 8 of this registration document.

5.13 – TRENDS AND PROSPECTS

Macroeconomic projections for 2018 call for a still favorable economic environment overall. Against this backdrop, Legrand plans to pursue its strategy of profitable growth. Legrand thus sets the following 2018 targets: W organic growth in sales of between +1% and +4%; and

W adjusted operating margin before acquisitions (at 2017 scope of consolidation) of between 20.0% and 20.5% of sales. Legrand will also pursue its strategy of value-creating acquisitions.

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REGISTRATION DOCUMENT 2017 - LEGRAND