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

Income tax expense is equal to €(309.7) million for full-year 2017 and €(279.8) million for full-year 2016, once adjusted for the following non-recurring favorable impacts: W the favorable accounting impact representing respectively a €26.4 million tax income in 2017 and a €61.2 million tax income in 2016, linked to mechanical revaluation of deferred tax liabilities on trademarks resulting from the announcement of reductions in corporate income tax rates, primarily in France;

W the favorable accounting impact representing a €18.3 million tax income in 2017 in France, resulting from refund of tax on dividends paid since 2013, net of the exceptional income tax on companies in 2017 in France; and W the favorable accounting impact representing a €40.8 million net tax income in 2017 linked to changes in corporate taxation in the United States, mainly accounting impacts due to mechanical revaluation of deferred tax assets and liabilities.

The reconciliation of total income tax expense for the period to income tax calculated at the standard tax rate in France is as follows, based on profit before tax of €938.9 million in 2017 (versus €850.1 million in 2016):

12 months ended

December 31, 2017

December 31, 2016

(Tax rate)

Standard French income tax rate

34.43%

34.43%

Increases (reductions): W effect of foreign income tax rates

(5.85%)

(5.07%)

W non-taxable items

0.40%

0.61%

W income taxable at specific rates

(0.13%)

0.34%

W other

2.32%

2.88%

31.17%

33.19%

Impact on deferred taxes of: W changes in tax rates

(7.67%)

(7.07%)

W recognition or non-recognition of deferred tax assets

0.38%

(0.41%)

EFFECTIVE TAX RATE

23.88%

25.71%

The effective tax rate is equal to 33.00% in 2017 and 32.90% in 2016, once adjusted for the impacts mentioned above.

R NOTE 3 – DETAILS ON NON-CURRENT AND CURRENT ASSETS

3.1

INTANGIBLE ASSETS

08

December 31, 2017

December 31, 2016

(in € millions)

Trademarks

1,810.3

1,697.8

Patents

81.7

24.8

Other intangible assets

402.0

157.4

NET VALUE AT THE END OF THE PERIOD

2,294.0

1,880.0

3.1.1 Trademarks with indefinite and finite useful lives The Legrand and Bticino brands represent close to 98% of the total value of trademarks with indefinite useful lives. These trademarks with indefinite useful lives are used internationally, and therefore contribute to all of the Group’s cash-generating units.

They should contribute indefinitely to future consolidated cash flows because management plans to continue using them indefinitely. The Group performs periodical reviews of these trademarks’ useful lives.

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REGISTRATION DOCUMENT 2017 - LEGRAND