LEGRAND_REGISTRATION_DOCUMENT_2017

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, 2017 and December 31, 2016

The Group must then assess the probability that deferred tax assets will be recovered from future taxable profit. Deferred tax assets are recognized only when it is probable that sufficient taxable profit will be available, based on management-approved taxable profit forecasts. The Group has not recognized all of its deferred tax assets because it is not probable that some of them will be recovered before they expire. The amounts involved mainly concern operating losses carried forward and foreign income tax credits. The assessment is based on management’s estimates of future taxable profit by jurisdiction in which the Group operates and the period over which the deferred tax assets are recoverable. 1.2.3.3 Other assets and liabilities based on estimates Other assets and liabilities based on estimates include provisions for pensions and other post-employment benefits, impairment of trade receivables, inventories and financial assets, share-based payments, provisions for contingencies and charges, capitalized development costs, and any annual volume rebates offered to customers.

Future events could cause the Group to conclude that evidence exists that certain intangible assets acquired in a business combination are impaired. Any resulting impairment loss could have a material adverse effect on the Group’s consolidated financial statements and in particular on the Group’s operating profit. Discounted cash flow estimates (used for impairment tests on goodwill and trademarks with indefinite useful lives) are based on management’s estimates of key assumptions, especially discount rates, long term growth and profitability rates and royalty rates for trademarks with indefinite useful lives. 1.2.3.2 Accounting for income taxes As part of the process of preparing the consolidated financial statements, the Group is required to estimate income taxes in each of the jurisdictions in which it operates. This involves estimating the actual current tax exposure and assessing temporary differences resulting from differing treatment of items such as deferred revenue or prepaid expenses for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are reported in the consolidated balance sheet.

1.3

SCOPE OF CONSOLIDATION

1.3.1 List of main consolidated companies The consolidated financial statements comprise the financial statements of Legrand and its 202 subsidiaries. The main operating subsidiaries as of December 31, 2017, all of which being 100% owned and fully consolidated, are as follows:

France Legrand France

Milestone AV Technologies LLC

United States Eden Prairie

France

Limoges

Ortronics Inc.

United States New London

Legrand SNC

France

Limoges

Pass & Seymour Inc.

United States

Syracuse

Italy Bticino SpA

Pinnacle Architectural Lighting Inc.

United States

Denver

Italy

Varese

Raritan Inc.

United States

Somerset

Rest of Europe Legrand Group Belgium

The WattStopper Inc.

United States Santa Clara

Belgium Diegem

The Wiremold Company

United States West Hartford

08

Legrand ZRT

Hungary

Szentes

Rest of the world Legrand Group Pty Ltd

Legrand Polska

Poland Zabkowice

Australia

Sydney

Legrand LLC

Russia

Moscow

GL Eletro-Eletronicos Ltda

Brazil

Sao Paulo

Legrand Group España

Spain

Madrid

HDL Da Amazonia Industria Eletronica Ltda

Brazil

Manaus

Inform Elektronik

Turkey

Istanbul

Electro Andina Ltda

Chile

Santiago

Legrand Elektrik

Turkey

Gebze

DongGuan Rocom Electric

China Dongguan

Legrand Electric

United Kingdom Birmingham

TCL International Electrical

China

Huizhou

North and Central America Bticino de Mexico SA de CV

TCL Wuxi

China

Wuxi

Mexico Querétaro

Legrand Colombia

Colombia

Bogota

Finelite Inc.

United States

Union City

Novateur Electrical and Digital Systems

Lastar Inc.

United States

Dayton

India

Mumbai

Legrand Home Systems Inc.

United States Middletown

United Arab Emirates

Middle Atlantic Products Inc.

United States

Fairfield

Legrand SNC FZE

Dubaï

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REGISTRATION DOCUMENT 2017 - LEGRAND