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

4.5.1.1 Analysis of pension and other post-employment defined benefit obligations The total (current and non-current) obligation under the Group’s pension and other post-employment benefit plans, consisting primarily of plans in France, Italy, the United States and United Kingdom, is as follows:

December 31, 2017

December 31, 2016

(in € millions)

Defined benefit obligation Projected benefit obligation at beginning of period

356.8

361.7

Service cost

9.3

9.1

Interest cost

9.3

10.4

Benefits paid or unused

(20.5)

(31.5)

Employee contributions

0.3

0.4

Actuarial losses/(gains)

5.4

17.9

Curtailments, settlements, special termination benefits

0.0

0.0

Translation adjustments

(17.4)

(12.7)

Other

0.5

1.5

PROJECTED BENEFIT OBLIGATION AT END OF PERIOD (I)

343.7

356.8

Fair value of plan assets Fair value of plan assets at beginning of period

182.7

184.6

Expected return on plan assets

5.6

6.2

Employer contributions

8.2

10.2

Employee contributions

0.7

0.7

Benefits paid

(13.6)

(13.0)

Actuarial (losses)/gains

13.0

4.1

Translation adjustments

(14.5)

(10.1)

Other

0.1

0.0

FAIR VALUE OF PLAN ASSETS AT END OF PERIOD (II)

182.2

182.7

LIABILITY RECOGNIZED IN THE BALANCE SHEET (I) - (II)

161.5

174.1

Current liability

7.9

8.1

Non-current liability

153.6

166.0

08

Actuarial gains recognized in equity in 2017 amounted to €7.6 million (€2.5 million after tax). The €7.6 million actuarial gains resulted from: W €7.6 million in gains from changes in financial assumptions; W €1.8million in gains fromchanges in demographic assumptions; and W €1.8 million in experience losses. The discount rates used are determined by reference to the yield on high-quality bonds based on the following benchmark indices: W Euro zone: iBoxx € Corporates AA 10+; W United Kingdom: iBoxx £ Corporates AA 15+;

W United States: Citibank Pension Liability Index. Sensitivity tests were performed on:

W the discount rate. According to the results of these tests, a 50-basis point reduction in the ratewould lead to the recognition of additional actuarial losses of around €15.6 million and would increase the provision as of December 31, 2017 by the same amount; W the rate of future salary increases. According to the results of these tests, a 50-basis point increase in the rate would lead to the recognition of additional actuarial losses of around €6.4 million and would increase the provision as of December 31, 2017 by the same amount.

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REGISTRATION DOCUMENT 2017 - LEGRAND