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

3.3.4 Future minimum lease payments under finance leases

December 31, 2017

December 31, 2016

(in € millions)

Due in less than one year

1.4

1.5

Due in one to two years

1.6

1.5

Due in two to three years

1.5

1.5

Due in three to four years

1.5

1.5

Due in four to five years

1.3

1.6

Due beyond five years

2.1

3.5

Gross value of future minimum lease payments

9.4

11.1

Of which accrued interest

(0.1)

(0.2)

NET PRESENT VALUE OF FUTURE MINIMUM LEASE PAYMENTS

9.3

10.9

3.4 INVENTORIES Inventories are measured at the lower of cost (of acquisition or production) or net realizable value, with cost determined principally on a first-in, first-out (FIFO) basis. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.

Impairment provisions are recognized when inventories are considered wholly or partially obsolete, and for finished goods inventories when their net realizable value is lower than their net book value.

Inventories are as follows:

December 31, 2017

December 31, 2016

(in € millions)

Purchased raw materials and components

289.7

254.2

Sub-assemblies, work in progress

87.4

85.7

Finished products

491.0

447.4

Gross value at the end of the period

868.1

787.3

Impairment

(120.7)

(116.7)

NET VALUE AT THE END OF THE PERIOD

747.4

670.6

3.5 TRADE RECEIVABLES Trade receivables are initially recognized at fair value and are subsequently measured at amortized cost. A provision can be recognized in the income statement when there is objective evidence of impairment such as: W when a debtor is late on payment (allowances are estimated using an aged receivables schedule);

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W when a debtor has defaulted; or W when a debtor’s credit rating has been downgraded or its business environment has deteriorated.

Trade receivables can be analyzed as follows:

December 31, 2017

December 31, 2016

(in € millions)

Trade receivables

703.9

640.7

Impairment

(79.0)

(76.5)

NET VALUE AT THE END OF THE PERIOD

624.9

564.2

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REGISTRATION DOCUMENT 2017 - LEGRAND