LEGRAND_REGISTRATION_DOCUMENT_2017

APPENDIX Appendix 1

6.4

PERFORMANCE SHARE PLANS AND STOCK OPTION PLANS

6.4.1 2015, 2016 and 2017 Performance share plans The following performance share plans were also approved by the Company’s Board of Directors:

2015 Plan

2016 Plan

2017 Plan

Date approved by shareholders

May 24, 2013

May 24, 2013

May 27, 2016

Grant date

May 29, 2015

May 27, 2016

May 31, 2017

Total number of performance share rights initially granted

388,769 (1)

495,615 (1)

484,583 (1)

o/w to Executive Director

14,583 (1)

15,281 (1)

12,324 (1)

End of vesting period

June 17, 2019

June 17, 2020

June 17, 2021

End of lock-up period

June 17, 2019

June 17, 2020

June 17, 2021

Number of performance shares acquired as of December 31, 2017

0

0

0

Number of performance share rights cancelled or forfeited

(19,329)

(12,073)

(5,925)

PERFORMANCE SHARE RIGHTS OUTSTANDING AS OF DECEMBER 31, 2017

369,440

483,542

478,658

(1) Given the dividend distribution features approved at the General Meetings of Shareholders on May 29, 2015, on May 27, 2016 and on May 31, 2017 the number of remaining performance shares was adjusted to take into account the impact of these transactions on the interests of performance share beneficiaries in accordance with article L. 228-99 of the French Commercial Code. Moreover, the number of performance shares has been reduced following the Executive Director’s decision to waive part of his entitlement to performance shares granted under the 2015 and 2016 plans.

The final number of shares ultimately granted to beneficiaries is determined based on a service condition and several performance criteria.

Weight of performance criteria by plan 2015 2016 and 2017

Type of performance criteria

Description of performance criteria

Comparison between the arithmetic mean of Legrand’s consolidated EBITDA margin over a three-year period as published in the consolidated financial statements and the arithmetic mean of EBITDA margins achieved by companies forming part of the MSCI World Capital Goods index over the same period. Arithmetic mean over a three years period of levels of normalized free cash flow as a percentage of sales over a three-year period, as published in the consolidated financial statements Arithmetic mean of average levels of attainment of Group CSR Roadmap priorities over a three-year period.

“External” financial performance criterion

50%

33 ⅓ %

“Internal” financial performance criterion

50%

33 ⅓ %

Non-financial performance criterion

0%

33 ⅓ %

A

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REGISTRATION DOCUMENT 2017 - LEGRAND

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