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

Changes in goodwill for the period ended December 31, 2017 include Milestone’s provisional goodwill, which is as follows:

(in $ millions)

(in € millions)

Trademarks

86

73

Patents

58

49

Other intangible assets

239

204

Tangible assets

26

22

Inventories

60

51

Trade receivables

71

61

Trade payables

32

27

Net financial debt

(9)

(8)

Other net liabilities

30

25

Total net assets excluding provisional goodwill

487

416

Purchase price paid*

1,210

1,032

Provisional goodwill

723

616

* This amount, on a cash free basis, shall be read $1,201 million.

Resulting impacts of Milestone purchase price allocation on Group income statement (non-cash expenses) are as follows: W recurring from 2017 (5 months) until 2026: amortization of intangible assets of $25.8 million on a yearly basis (this impact decreasing from 2027 onwards); W non recurring (in 2017 only): reversal of inventory step-up of $18.9 million.

As per adjusted operating profit definition, these non-cash expenses have no impact on Group adjusted operating profit. In 2017, Milestone recorded an adjusted operating margin of 21.8%.

Acquisition price allocations, which are performed within one year of each business combination, are as follows (excluding inventory step-up):

12 months ended

December 31, 2017

December 31, 2016

(in € millions)

Trademarks

184.3

52.2

Deferred taxes on trademarks

(22.4)

(15.6)

08

Patents

67.1

25.1

Deferred taxes on patents

(6.2)

(7.0)

Other intangible assets

266.5

0.0

Deferred taxes on other intangible assets

(18.9)

0.0

Tangible assets

0.0

10.6

Deferred taxes on tangible assets

0.0

(1.8)

245

REGISTRATION DOCUMENT 2017 - LEGRAND