LEGRAND_REGISTRATION_DOCUMENT_2017

05

MANAGEMENTREPORTONTHECONSOLIDATEDFINANCIALSTATEMENTSFORTHEFINANCIALYEARENDEDDECEMBER31,2017

Selected financial information

The table below shows a reconciliation of the Group’s free and normalized free cash flow with net cash from operating activities:

2017

2016

2015

(in € millions)

Net cash from operating activities

863.7

831.8

796.2

Net proceeds from sales of fixed and financial assets

10.3

2.1

3.2

Capital expenditures

(144.6)

(126.3)

(106.0)

Capitalized development costs

(33.6)

(34.6)

(27.4)

Free cash flow

695.8

673.0

666.0

Increase (decrease) in working capital requirement

56.1

(40.4)

(46.2)

(Increase) decrease in normalized working capital requirement

(16.7)

(8.7)

(2.6)

Normalized free cash flow

735.2

623.9

617.2

The table below shows changes in the net financial debt of Legrand:

2017

2016

2015

(in € millions)

Long-term borrowings

2,457.1

1,550.7

1,823.2

Short-term borrowings

585.4

346.4

67.9

Cash and cash equivalents and marketable securities

(823.0)

(940.1)

(1,088.4)

Net financial debt

2,219.5

957.0

802.7

The table below shows changes in Legrand’s equity:

2017

2016

2015

(in € millions)

Share capital

1,067.2

1,069.3

1,067.7

Retained earnings

3,644.6

3,227.8

3,006.2

Translation reserves

(573.2)

(240.0)

(276.1)

Equity attributable to equity holders of Legrand

4,138.6

4,057.1

3,797.8

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REGISTRATION DOCUMENT 2017 - LEGRAND