LEGRAND_REGISTRATION_DOCUMENT_2017

APPENDIX Appendix 4

Performance criteria applicable to the executive officer and members of the Executive Committee It should be noted that: W the first two performance criteria are aligned with the targets disclosed by the Company in February. These targets concern the annual organic growth of revenues and the adjusted operating margin before acquisitions. These indicators are central to Legrand’s business model, based on profitable growth; W the third criterion would be of an extra-financial nature, based on the achievement of the Group’s commitments in terms of Corporate Social Responsibility in the framework of its CSR

roadmap, the latter being central to Legrand’s development model, seeking to ensure sustainable growth with respect to all stakeholders; W the last criterion would be based on the performance of the Legrand stock price as compared with that of the CAC 40 index, thus making it possible to relatively assess performance, on the understanding that in case it underperforms the CAC 40 index (as described in point 4 below) the principle of non-payment would apply to this criterion. The proposed performance criteria thus reflect the Company’s model based on profitable and sustainable growth aligned with the interest of shareholders and are transparent.

Performance criterion

Description of target-setting criteria and method

Weighting

Target of organic growth of revenues Target of adjusted operating margin before acquisitions Annual rates of achievements of the Group’s CSR roadmap

Target: 3-year average of the upper and lower ranges of the annual target concerned. Comparison of the target with the average of achievements over three years. Target: 3-year average of the upper and lower ranges of the annual target concerned. Comparison of the target with the average of achievements over three years.

1/4

1/4

Target: arithmetic average over 3 years of the annual rates of achievement of the Group’s CSR roadmap.

1/4

Legrand stock market performance compared with the performance of the CAC 40 index

Difference in performance between the Legrand stock market price and that of the CAC 40 index over a 3-year period.

1/4

It is thus envisaged that the performance criteria be mesured over a three-year period and that the number of performance shares finally allocated to the executive officer and members of the Executive Committee be calculated according to the following method:

1) Criterion of organic growth of revenues:

Between 50% and 90% Between (LR (2) – 2 points) and LR (2)

Between 90% and 110%

Between 110% and 150%

Pay-out rate (1)

0%

90%

110%

150%

Equal to LR (2) Between LR (2) and UR (3)

Equal to UR (3) Between UR (3) and (UR (3) + 2 points)

Higher than (UR (3) + 2 points)

3-year average of the achievements of 2018, 2019 and 2020

Lower than (LR (2) – 2 points)

Illustration of the determination of the 3-year target based on the 2018 allocation plan Lower range of the annual target

Upper range of the annual target

Year 1: 2018

Equal to 1.0%

Equal to 4.0%

Year 2: 2019

Disclosed to the market in February 2019

Disclosed to the market in February 2019

Year 3: 2020

Disclosed to the market in February 2020

Disclosed to the market in February 2020

LR (2)

UR (3)

3-year target: Average of annual targets

(1) Linear calculation of pay-out rate for any result between the limits indicated above. (2) LR corresponding to the 3-year average of the lower ranges of the annual target disclosed to the market. (3) UR corresponding to the 3-year average of the upper ranges of the annual target disclosed to the market.

A

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REGISTRATION DOCUMENT 2017 - LEGRAND