Legrand : Results for first nine-month - 2017

Limoges, November 7, 2017

Steep rise in total sales: +7.7%

Double-digit growth in adjusted operating profit (+10.0%), net profit attributable to the Group (+11.4%), and normalized free cash flow (+12.2%)

Rise in investments dedicated to new products: +27% in the first nine months of 2017 Strong contribution of acquisitions to sales growth expected: nearly +15% in 2017-20181

Organic growth in sales: new target +2% to +3% (initially2between 0% and +3%)

Adjusted operating margin before acquisitions3: new target 19.8% to 20.1% (initially2between 19.3% and 20.1%)

"Steep rise in total sales

In the first nine months of the year, Group sales were up +7.7% in total, supported by its two growth drivers.

Organic growth in sales thus stood at +2.9%, driven by good showings in new economies (+4.8%) and solid increases in mature countries (+2.1%), despite, as announced4, unfavorable effects related to calendar impacts and bases for comparison in the third quarter.

The impact of the broader scope of consolidation resulting from acquisitions was +4.4% in the first nine months of the year, and should reach over +7% full year.

Double-digit growth in profit and normalized free cash flow

At the same time, adjusted operating profit rose by +10.0% and adjusted operating margin before acquisitions (at 2016 scope of consolidation) stood at 20.6% of sales compared with 20.0% in the first nine months of 2016, a rise of 0.6 points.

Net profit attributable to the Group and normalized free cash flow increased +11.4% and +12.2%, respectively, compared with the first nine months of 2016.

These very good showings reflect once again Legrand's ability to create value over the long term by expanding its positions.

1 Taking into account all acquisitions announced and their likely consolidation dates, the expected impact of the broader scope of consolidation is more than +7% per year in 2017 and 2018. Over two years, it should thus stand at close to +15% in 2018, compared with 2016.

2 Targets announced on February 9, 2017.

3 At 2016 scope of consolidation.

4 For more details, see July 31, 2017 press release announcing 2017 first-half results.

Rise in investments dedicated to new products

Legrand remained very active in innovation, with investments dedicated to new products up nearly +27% from the first nine months of 2016. These initiatives help expand the Group's offering, particularly for digital infrastructure products and connected solutions with enhanced value in use under the Eliot program, which is being rolled out in new geographical areas this year.

Strong contribution of acquisitions to sales growth expected

Legrand has stepped up the pace of its external growth since the beginning of the year.

The Group has thus acquired five companies and, in Italy, signed a joint-venture, resulting in stronger positions in business fields buoyed by technological and societal megatrends that represent long term development opportunities.

This sustained acquisition momentum should drive external growth to over +7% in both 2017 and 20181, adding nearly +15% to the Group's growth over two years1."

Based on good performances in the first nine months and taking into account expected effects for the fourth quarter2, Legrand is raising its minimum targets for the year and setting new targets for 2017:

• organic growth in sales of between +2% and +3% (initially3between 0% and +3%) and

• adjusted operating margin before acquisitions (at 2016 scope of consolidation) of between 19.8% and 20.1% of sales (initially3between 19.3% and 20.1%).

1 Taking into account all acquisitions announced and their likely consolidation dates.

2 Unfavorable calendar impacts and bases for comparison in the United States, as well as usual seasonal pattern of margin.

3 Targets announced on February 9, 2017.

1. See appendices to this press release for definitions and reconciliation tables of indicators

2. At 2016 scope of consolidation

Sales in the first nine months of 2017 totaled €3,988.3 million, up a steep +7.7% from the first nine months of 2016.

Organic growth in sales stood at +2.9% for the period, reflecting good showings in new economies (+4.8%) and solid results in mature economies (+2.1%), despite, as announced, the unfavorable effects related to calendar impacts and bases for comparison in the third quarter, in the United States in particular.

The impact of the broader scope of consolidation resulting from acquisitions was +4.4%. Taking into account all acquisitions announced and their likely consolidation dates, the expected impact of the broader scope of consolidation is more than +7% per year in 2017 and 2018. Over two years, it should thus stand at close to +15% in 2018, compared with 2016.

The exchange-rate effect was +0.1%. Applying average exchange rates for October 2017 to the last three months of the year, the annual exchange-rate effect for 2017 would be around -1%.

1 Milestone was not consolidated in the first nine months 2017 statement of income. For more details on the timeline for consolidation of Milestone, the reader is invited to refer to pages 9 and 10 of this press release.

These changes at constant scope of consolidation and exchange rates are analyzed below by geographical region:

• France (16.8% of Group sales): organic growth in sales in France stood at +2.3% in the first nine months of 2017.

  This increase in sales was driven by healthy growth in new residential construction (between 15% and 20% of French sales). Non-residential new construction activities grew but at an uneven pace, while renovation increased more moderately.

• Italy (9.9% of Group sales): at constant scope of consolidation and exchange rates, sales were up

  +3.5% in Italy.

  These good showings were driven in particular by the success of new product offerings including (i) the Classe 300X connected door entry system and the My Home Up home system, both launched in 2016, as well as (ii) the Smarther connected thermostat, introduced in the second quarter of this year.

• Rest of Europe (17.4% of Group sales): at constant scope of consolidation and exchange rates, sales were up +5.4% from the first nine months of 2016.

Many countries in new economies recorded good showings. This was the case in Eastern Europe, including Russia, Romania and Hungary.

In Turkey, sales were also up, driven by a third-quarter performance that benefited from a favorable basis for comparison.

Sales growth was also solid in a number of mature countries, including Spain, Greece, Belgium and Austria.

In the United Kingdom (less than 2.5% of Group sales), after a sustained increase in sales in the first half, business retreated slightly in the third quarter alone.

- North and Central America (31.2% of Group sales): at constant scope of consolidation and exchange rates, sales were up +1.5% in the first nine months of 2017.

Over two years, organic growth in North and Central America was +8.1% compared with the first nine months of 2015, and +7.1% compared with the third quarter of 2015.

As a reminder, 2016, and the third quarter1in particular, represent demanding bases for comparison in the United States, the main country in this region.

As a result, in the United States alone2, organic growth in the first nine months of the year stood at +0.6% (+7.6% over two years compared with the first nine months of 2015) and the trend in organic sales was

-2.2% in the third quarter (+6.9% over two years compared with the third quarter of 2015).

In the rest of the region, Mexico and Canada turned in good showings in the first nine months of 2017.

- Rest of the World (24.7% of Group sales): organic growth was up +3.4% from the first nine months of 2016.

A number of countries in Asia turned in solid showings, including China, South Korea and Singapore. The Group also reported robust growth in sales in North African countries3.

More particularly, in India sales also rose compared with the first nine months of 2016, driven by good third-quarter showings following the temporary slowdown in the second quarter linked to the application of the GST4.

Lastly, sales retreated in certain countries in the region, including Brazil, Australia, Malaysia and Thailand.

1 Excerpt from the comment on the United States performance published on July 31, 2017: "As a reminder (i) the calendar effect should be unfavorable in the third quarter, and (ii) growth stood at +9.3% in the third quarter of 2016, benefiting from favorable one- offs (excluding these effects, the rise in sales would have been in the neighborhood of 3%) hence representing a demanding basis for comparison for the third quarter of 2017.".

2 Milestone will be consolidated in the Group's statement of income in the fourth quarter for a period of five months. For more

information on Milestone, including expected sales growth seasonality in 2017, the reader is invited to refer to pages 9 and 10 of this press release.

3 North Africa = Algeria + Egypt + Morocco + Tunisia.

4 GST: Goods and Services Tax.