HALF-YEAR MANAGEMENT REPORT FOR THE SIX MONTHS ENDED JUNE 30, 2021	3
1.1 - Preliminary disclaimer	4
1.2 - Overview	4
1.3 - Recent events	4
1.4 - Comparison of first-half results for 2020 and 2021	6
1.5 - Cash flows and indebtedness	12
1.6 - Risks and uncertainties	13
1.7 - Trends and prospects	13
CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2021	14

2.1 - Consolidated financial statements in accordance with IFRS as
of June 30, 2021		15

STATUTORY AUDITORS'REPORT 57 IDENTITY OF PERSONS RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT AND AUDITING THE FINANCIAL STATEMENTS 61 4.1 - Person responsible for the half-year financial report 62 4.2 - Statutory Auditors 63 4.3 - Financial disclosure policy 64 3 4

HALF-YEAR MANAGEMENT REPORT FOR THE SIX MONTHS ENDED JUNE 30, 2021

1.1 - PRELIMINARY DISCLAIMER	4
1.2 - OVERVIEW	4
1.3 - RECENT EVENTS	4
1.4 - COMPARISON OF FIRST-HALF RESULTS FOR 2020 AND 2021	6
1.4.1 - Net sales	7
1.4.2 - Cost of sales	9
1.4.3 - Administrative and selling expenses	9
1.4.4 - Research and development costs	9
1.4.5 - Other operating income and expenses	10
1.4.6 - Operating profit	10
1.4.7 - Adjusted operating profit	10
1.4.8 - Net financial expenses	11
1.4.9 - Exchange gains and losses 1.4.10 - Income tax expense	11 11
1.4.11 - Net profit attributable to the Group	11
1.5 - CASH FLOWS AND INDEBTEDNESS	12
1.5.1 - Cash flows	12
1.5.2 - Debt	13
1.6 - RISKS AND UNCERTAINTIES	13
1.7 - TRENDS AND PROSPECTS	13

1.1 - PRELIMINARY DISCLAIMER

The following review of Legrand's financial position and the results of operations should be read in conjunction with the consolidated financial statements and the related notes for the six-month period ended June 30, 2021 as set out in chapter 2 of this half-yearly financial report, and any other information included in the Universal Registration Document filed with the French Autorité des marchés financiers (AMF) on April 12, 2021, under number D. 21-0292. The Company's financial statements were prepared in accordance with International Financial Reporting Standards

1.2 - OVERVIEW

Legrand is the global specialist in electrical and digital building infrastructure. Its full range of products and systems suitable for the international commercial, industrial, and residential segments of the low-voltage market makes Legrand a benchmark for customers worldwide. The Group markets its products under internationally recognized general brand names, including Legrand and Bticino, as well as under well-known local and specialist brands. Legrand, which is close to its markets and focuses on its customers, has commercial and industrial operations in nearly 90 countries.

Legrand generated sales of €6,099.5 million in 2020, of which more than 85% was generated outside France, and recorded an adjusted operating margin of 19.0% of sales.

Legrand's financial position and results of operations are reported on the basis of three operating segments that correspond to the regions of origin of invoicing. Information concerning the results of operations and financial positions for each of these three operating segments is presented for the first six months of 2021 and 2020 in Note 2.1 to the consolidated financial statements set out in chapter 2 of this half-yearly financial report. These three operating segments— under the responsibility of three segment managers who are directly accountable to the Group's chief operating decision-maker— are:

as adopted by the European Union. This review also includes forward-looking statements based on assumptions about the company's future business. Actual results could differ materially from those contained in these forwardlooking statements.

(IFRS) and the IFRS Interpretations Committee's guidance

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

Percentages may be calculated on non-rounded figures and therefore may vary from percentages calculated on rounded figures.

Europe, including France, Italy and Rest of Europe, mainly including Benelux, Germany, Iberia (including Spain and Portugal), Poland, Russia, Turkey and the UK;
North and Central America including Canada, Mexico, the United States and Central American countries; and
Rest of the world, mainly including Australia, China, India, Saudi Arabia and South America (including particularly Brazil, Chile and Colombia).

Since local market conditions are the determining factors in business performance and net sales by zone, consolidated financial information for multi-country zones does not accurately reflect financial performance in each national market.

Furthermore, products may be manufactured and sold locally or imported from or exported to another Group entity. These factors may make it difficult to compare results for different operating segments. Consequently, with the exception of information relating to net sales, the discussion of results below focuses primarily on consolidated results, with reference to national markets where these have a material impact on consolidated accounts.

1.3 - RECENT EVENTS

Strong growth in sales and financial results in first half

Legrand reported first-half 2021 revenues of €3.5 billion, rising a steep +21.9% year on year and +7.0% over two years. This performance was driven primarily by organic growth in sales of +22.6% from the first half of 2020, or +3.9% over two years, and it confirmed:

continued improvements in Legrand's competitive positions in its markets; and
Group capacity to take full advantage of opportunities for growth in buoyant segments linked to the buildings of tomorrow.

Adjusted operating margin came to 22.0% of sales. Net attributable to the Group also increased by a very good +68.5% from the first half of 2020.

These high-quality results and the success of initiatives deployed since the beginning of the health crisis testify to the relevance of Legrand's unique model for profitable and responsible value creation.

The Group has continued to strengthen its fundamentals by investing in innovation – including roll-out of a host of new products since the beginning of the year, among them the Classe 300 EOS with Netatmo connected door entry system and the wireless and battery-less connected switch – and announcing two new acquisitions in our core businesses as well as in electric mobility. The Group has also confirmed its ESG commitments with the publication of our latest materiality survey results and the SBTi¹ 's recent validation of our carbon emissions reduction trajectory, which is aligned on holding global warming to 1.5°C² .

Consolidated sales

In the first half of 2021, sales rose +21.9% from the first half of 2020 to total €3,453.4 million.

Organic growth was +22.6% over the period, including +19.4% in mature countries and +32.8% in new economies.

The impact of the broader scope of consolidation was +4.6%. Based on acquisitions completed in 2020 and their dates of consolidation, this effect is expected to reach +2.5% full year.

The exchange-rate effect on sales in the first half of 2021 was -4.9%. Based on average exchange rates in June 2021, the full-year exchange-rate effect on sales should be about -3% in 2021.

Adjusted operating profit and margin

In the first half of 2021, adjusted operating profit came to €761.4 million, up +53.2%, setting adjusted operating margin at 22.0% of sales over the period.

Before acquisitions (at 2020 scope of consolidation), adjusted operating margin reached 22.4% in the first half of 2021, a +4.9 points rise from the first half of 2020.

This increase in profitability reflected in particular leverage linked to the combined impact of strong sales growth and a selective resumption of costs. At the same time, the rise in raw material and component costs continued to accelerate. It was close to +4% in the first quarter of 2021 and over +9% in the second quarter of 2021.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net profit attributable to the Group

In the first half of 2021, net profit attributable to the Group increased +68.5% and stood at €481.3 million. This €195.6 million increase from the first half of 2020 came mainly from:

strong growth in operating profit (+€266 million);
favorable trends (+€6 million) in financial results; and
the increase (-€77 million) in the Group's corporate income tax linked to the rise in profit before tax (the corporate tax rate was stable at 28.5% in the first half of 2021).

Cash generation and balance sheet structure

Cash flow from operations – €697.8 million – came to 20.2% of 2021 first-half sales, a rise of +4.5 points from the same period of 2020.

Normalized free cash flow stood at €577.4 million or 16.7% of sales, up +22.9%.

Rising steeply from 2020, free cash flow stood at 16.5% of sales in the first half of 2021.

The balance sheet remained solid with the ratio of net debt to EBITDA³ at 1.5 at the end of June 2021.

¹ The Science-Based Targets initiative (SBTi) creates a clearly-defined path and ambitious targets for private-sector businesses to limit global warming. For more information, visit https://sciencebasedtargets.org

² For more information, readers are referred to the press release dated July 2, 2020.

³ Based on EBITDA for the last 12 months.

1.4 - COMPARISON OF FIRST-HALF RESULTS FOR 2020 AND 2021

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

	6 months ended
(in € millions)	June 30, 2021	June 30, 2020
Net sales	3,453.4	2,832.6
Operating expenses
Cost of sales	(1,645.7)	(1,369.0)
Administrative and selling expenses	(869.5)	(806.1)
Research and development costs	(163.2)	(157.2)
Other operating income (expenses)	(58.8)	(50.5)
Operating profit	716.2	449.8
Financial expenses	(45.7)	(45.9)
Financial income	3.3	3.6
Exchange gains (losses)	(0.9)	(6.5)
Financial profit (loss)	(43.3)	(48.8)
Profit before tax	672.9	401.0
Income tax expense	(191.7)	(114.3)
Share of profits (losses) of equity-accounted entities	0.0	(0.9)
Profit for the period	481.2	285.8
Of which:
- Net profit attributable to the Group	481.3	285.7
- Minority interests	(0.1)	0.1

The table below shows the calculation of adjusted operating income (defined as operating income adjusted for amortization and depreciation of revaluation of assets at the time of acquisitions and for other P&L impacts relating to acquisitions, and, where applicable, for impairment of goodwill), and maintainable adjusted operating income (i.e., excluding restructuring charges) for the periods under review:

	6 months ended
(in € millions)	June 30, 2021	June 30, 2020
Profit for the period	481.2	285.8
Share of profits (losses) of equity-accounted entities	0.0	0.9
Income tax expense	191.7	114.3
Exchange (gains) losses	0.9	6.5
Financial income	(3.3)	(3.6)
Financial expenses	45.7	45.9
Operating profit	716.2	449.8
Acquisition-related amortization,depreciation, expenses and income	45.2	47.1
Goodwill impairment	0.0	0.0
Adjusted operating profit	761.4	496.9
Adjusted restructuring costs(1)	12.6	24.1
Maintainable adjusted operating profit	774.0	521.0

(1) Adjusted restructuring costs are defined as restructuring costs adjusted for revaluation of assets at the time of acquisitions.

1.4.1 - Net sales

Consolidated net sales rose 21.9% to €3,453.4 million in the first six months of 2021, compared with €2,832.6 million in the first six months of 2020, reflecting the combined impact of:

+22.6% organic rise (at constant scope of consolidation and exchange rates)
+4.6% due to the broader scope of consolidation that resulted from acquisitions with carry-over effect of 2020 acquisitions consolidated for 6 months in 2021 including Focal Point (United States), Borri (Italy), Champion One (United States) and Compose (Netherlands); and

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

■ -4.9% due to exchange-rate effects over the period.

Organic changes in net sales by destination (local market of the end customer) from the first six months of 2020 to the first six months of 2021 were as follows:

Europe	30.6%
North and Central America	11.7%
Rest of the World	31.0%
Total	22.6%

Comments below concern sales by destination:

Europe: (42.5% of Group revenue)

Net sales in the Europe zone for the first half of 2021 came to €1,467.0 million compared with €1,125.3 million in the first half of 2020, an increase of +30.4%. This reflects a +1.7% change in scope of consolidation, the unfavorable -1.8% impact of exchange-rate fluctuations and +30.6% organic evolution

In Europe's mature countries (36.7% of Group revenue), sales rose +32.1%, with organic growth of +55.6% in the second quarter alone. In the first six months of the year, many countries – in particular France and Italy – reported sales up sharply from 2020. While benefiting from favorable bases for comparison, these gains reflect many commercial successes; including user interfaces and power protection solutions in France, connected offerings in Italy, and, more broadly, datacenter ranges in Europe.

Sales in Europe's new economies were up +23.0% organically from the first half of 2020, and up +36.2% in the second quarter alone, with very good showings in Turkey and in most countries in Eastern Europe.

North and Central America: (37.7% of Group revenue)

Net sales in the North and Central America zone in the first half of 2021 came to €1,303.2 million compared with €1,173.1 million in the first half of 2020, an increase of +11.1%. This reflects a +8.3% change in scope of consolidation, the unfavorable -8.2% impact of exchangerate fluctuations and +11.7% organic evolution

In the United States alone (34.5% of Group revenue), the organic rise in sales was +9.9% over the first half of the year and +15.3% in the second quarter alone. Since the beginning of the year, business has been driven by sustained demand in residential offerings [+18.6%] and in

datacenters. Sales in other non-residential applications were nearly unchanged over the first half from the first half of 2020.

Sales rose sharply in both Mexico and Canada in the first half.

Rest of the world: (19.8% of Group revenue)

Net sales in the Rest of the world zone for the first half of 2021 came to €683.2 million compared with €534.2 million in the first half of 2020, an increase of +27.9%.

This reflects a +2.5% change in scope of consolidation, the unfavorable -4.8% impact of exchange-rate fluctuations and +31.0% organic evolution

In Asia-Pacific (12.4% of Group revenue), 2021 first-half sales rose +27.4%, including +19.1% in the second quarter. Over the six-month period, China saw double-digit growth. In India, sales rose sharply but were nonetheless down over 2 years against a deteriorated pandemic background. Sales rose in Australia.

In Africa and the Middle East (3.7% of Group revenue), sales rose +22.5% from the first half of 2020, and were up +26.2% from the second quarter of 2020. Over the six-month period, sales rose in the Middle East and marked a very steep increase in Africa.

In South America (3.6% of Group revenue), sales increased +55.6% in the first half and were up +126.4% in the second quarter, with significant growth in main countries in the region

The table below shows a breakdown of net sales by destination (local market of the end customer) for the 6-month periods ending June 30, 2020 and June 30, 2021:

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

	6 months ended
	June 30, 2021		June 30, 2020
(in € million, except %)	€	%	€	%
Net sales by destination
Europe	1,467.0	42.5	1,125.3	39.7
North and Central America	1,303.2	37.7	1,173.1	41.4
Rest of the World	683.2	19.8	534.2	18.9
Total	3,453.4	100.0	2,832.6	100.0

The table below shows a breakdown of changes in net sales to third parties as reported by zone of destination (market where sales are recorded):

	6 months ended June 30,
Net sales (in € million, except %)	2021	2020	Total change	Change in scope of consolidation	Organic growth (1)	Exchange rate effect
Europe	1,467.0	1,125.3	30.4%	1.7%	30.6%	(1.8%)
North and Central America	1,303.2	1,173.1	11.1%	8.3%	11.7%	(8.2%)
Rest of the World	683.2	534.2	27.9%	2.5%	31.0%	(4.8%)
Consolidated total	3,453.4	2,832.6	21.9%	4.6%	22.6%	(4.9%)

(1) at constant scope of consolidation and exchange rates.

The following table presents the breakdown of changes in net sales to third parties as reported by zone of origin:

	6 months ended June 30,
Net sales (in € million, except %)	2021	2020	Total change	Change in scope of consolidation	Organic growth(1)	Exchange rate effect
Europe	1,532.3	1,167.5	31.2%	1.9%	31.1%	(1.7%)
North and Central America	1,327.0	1,193.1	11.2%	8.5%	11.7%	(8.3%)
Rest of the World	594.1	472.0	25.9%	1.4%	30.9%	(5.2%)
Consolidated total	3,453.4	2,832.6	21.9%	4.6%	22.6%	(4.9%)

(1) at constant scope of consolidation and exchange rates.

1.4.2 - Cost of sales

The consolidated cost of sales rose 20.2% to €1,645.7 million in the first half of 2021, compared with €1,369.0 million in the first half of 2020. This was primarily due to:

consolidation of new acquisitions;
the increase in the volume of raw materials and components consumed as production increased; and
higher raw material and component prices in 2021 than in 2020;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

These were partly offset by:

■ ongoing efforts to raise productivity and adjust to changing conditions.

As a percentage of net sales, the cost of sales was down from 48.3% in the first half of 2020 to 47.7% in the first half of 2021.

1.4.3 - Administrative and selling expenses

Administrative and selling expenses rose by 7.9% to €869.5 million in the first half of 2021, compared with €806.1 million in the first half of 2020. This was essentially attributable to:

ongoing investments in growing activities and
consolidation of new acquisitions.

These were partly offset by:

■ ongoing efforts on productivity initiatives.

Expressed as a percentage of sales, administrative and selling expenses decreased from 25.2% in the first half of 2021 to 28.5% in the first half of 2020.

1.4.4 - Research and development costs

	6 months ended
(in € millions)	June 30, 2021	June 30, 2020
Research and development costs	(163.2)	(157.2)
Acquisition-related amortization and R&D tax credit	6.3	4.7
Amortization of capitalized development costs	13.1	13.8
R&D costs before capitalized development costs	(143.8)	(138.7)
Capitalized development costs	(16.7)	(11.7)
Research and development expenditure for the period	(160.5)	(150.4)

In accordance with IAS 38 "Intangible Assets", Legrand has implemented an internal measurement and accounting system for development costs to be recognized as intangible assets.

On this basis, €16.7 million in development costs were capitalized in the first half of 2021 compared with €11.7 million in the first half of 2020.

Amortization charges for capitalized development costs amounted to €13.1 million in 2021, compared to €13.8 million in 2020.

Research and development costs totaled €163.2 million in the first half of 2021, compared with €157.2 million in the first half of 2020. Excluding the impact of the capitalization of development costs and purchase accounting charges relating to acquisitions, as well as the tax credit for research and development activities, R&D expenditure stood at €160.5 million in the first half of 2021. (4.6% of net sales), compared with €150.4 million in the first half of 2020. (5.3% of net sales).

In the first six months of 2021, research and development operations had more than 2,500 employees in more than 20 countries.

1.4.5 - Other operating income and expenses

In the first six months of 2021, other operating income and expenses totaled €58.8 million compared with €50.5 million in the same period of 2020.

1.4.6 - Operating profit

The Group consolidated operating profit rose 59.2% to €716.2 million in the first half of 2021 compared with €449.8 million in the first half of 2020. This increase resulted from:

a 21.9% rise in net sales;
a 20.2% rise in cost of sales;

■ a 7.2% rise in administrative, selling and research & development costs; and

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

■ an €8.3 million rise in other income and operating expenses.

As a percentage of net sales, operating profit came to 20.7% in the first half of 2021 compared with 15.9% in the first half of 2020.

1.4.7 - Adjusted operating profit

Adjusted operating profit is defined as operating profit adjusted for amortization and depreciation of revaluation of assets at the time of acquisitions and for other P&L impacts relating to acquisitions and, where applicable, for impairment of goodwill.

Adjusted operating income rose 53.2% to stand at €761.4 million in the first half of 2021 compared with €496.9 million in the first half of 2020, and broke down as follows by geographical zone:

Europe: a 89.8% rise to €397.6 million in the first half of 2021 compared with €209.5 million in the first half of 2020, representing 25.9% of net sales in the first six months of 2021 compared with 17.9% in the first six months of 2020;
North and Central America: a 27.8% rise to €255.9 million in the first half of 2021, compared

with €200.2 million in the first half of 2020, representing 19.3% of net sales in the first six months of 2021 compared with 16.8% in the first six months of 2020; and

■ Rest of the world: a 23.7% rise to €107.9 million in the first half of 2021 compared with €87.2 million in the first half of 2020, representing 18.2% of net sales in the first six months of 2021 compared to 18.5% in the first six months of 2020.

In the first half of 2021, Group adjusted operating margin before acquisitions (at 2020 scope of consolidation) stood at 22.4% of net sales, a + 4.9 points rise compared with firsthalf 2020 figure of 17.5%. Taking acquisitions into account, the Group's adjusted operating margin came to 22.0% of net sales in the first half of 2021.

1.4.8 - Net financial expenses

Net financial expenses principally correspond to financial expenses related to Yankee bonds; the 2012, 2015, 2017, 2018, 2019 and 2020 bond issues; the 2011 credit facility amended in 2014 and in 2019; and other bank borrowings (for a description of these arrangements, see paragraph 1.5.2 of this chapter), less financial income arising from the investment of cash and cash equivalents.

Finance expenses stood at €45.7 million in the first half of 2021 compared with €45.9 million in the first half of 2020.Financial income came to €3.3 million in the first half of 2021 compared with €3.6 million in the first half of 2020.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net financial expenses rose €0.1 million in the first six months of 2021 from the same period of 2020, accounting for 1.2% of net sales compared with 1.5% in the first half of 2020.

1.4.9 - Exchange gains and losses

Exchange gains and losses correspond mainly to translation differences recognized on settlement of foreign currency transactions, as well as the translation impact at the closing exchange rate of monetary assets and liabilities denominated in foreign currencies.

Exchange losses amounted to €0.9 million in the first six months of 2021 compared with €6.5 million losses in the same period of 2020.

1.4.10 - Income tax expense

In 2021 Legrand's pre-tax income amounted to €672.9 million up from €401.0 million in first-half 2020.

Consolidated income tax expense amounted to €191.7 million in the first half of 2021 compared with €114.3 million in the first half of 2020. The effective tax rate stood at 28.5% in the first six months of 2021 stable compared with the same period of 2020.

1.4.11 - Net profit attributable to the Group

Net income amounted to €481.3 million in the first half of 2021 (€195.6 million increase compared with the first half of 2020) This +68.5% increase reflects:

a €266.4 million rise in operating profit;
a €5.5 million rise in net financial results;
a €77.4 million rise in income tax expense;
a €0.9 million improvement in share of profits of equity-accounted entities;
a €0.2 million improvement in profit attributable to minority interests.

1.5 - CASH FLOWS AND INDEBTEDNESS

1.5.1 - Cash flows

The table below summarizes cash flows of the Company for the years ended June 30, 2021 and 2020

	6 months ended
(in € millions)	June 30, 2021	June 30, 2020
Net cash from operating activities	621.7	284.1
Net cash from investing activities*	(61.2)	(489.3)
Net cash from financing activities	(399.3)	1,174.2
Translation net change in cash and cash equivalents	12.9	(8.7)
Increase (decrease) in cash and cash equivalents	174.1	960.3
* of which capital expenditure and capitalized development costs	(58.7)	(46.0)

For a detailed analysis of cash flows, readers should refer to the consolidated statement of cash flows provided in the Group's consolidated financial statements.

1.5.1.1 NET CASH FROM OPERATING ACTIVITIES

Net cash provided by operating activities stood at €621.7 million at June 30, 2021 compared with €284.1 million at June 30, 2020.

This €337.6 million increase was due primarily to an increase of €252.1 million in cash flow from operations (defined as net cash generated by operating activities, plus or minus changes in current operating assets and liabilities) reaching €697.8 million at June 30, 2021 compared with €445.7 million on June 30, 2020 and also to changes in current operating assets and liabilities, which set cash used at €76.1 million in the first half of 2021 compared with €161.6 million in the same period of 2020, or €85.5 million less.

1.5.1.2 NET CASH FROM INVESTING ACTIVITIES

Net cash used in investing activities for the period ended June 30, 2021 amounted to €61.2 million compared with €489.3 for the period ended June 30, 2020.

Capital expenditure and capitalized development costs amounted to €58.7 million for the period ended June 30, 2021 or 1.7% of net sales compared to €46.0 million for the period ended June 30, 2020 or 1.6% of net sales

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

The amount of acquisitions (net of cash acquired) totaled €5.8 million in the first half of 2021 (compared with €470.7 million in the first half of 2020).

1.5.1.3 NET CASH FROM FINANCING ACTIVITIES

Net cash used by financing activities amounted to €399.3 million in the first half of 2021, including primarily the payment of dividends in an amount of €377.9 million, a reduction in short-term financing of €104.5 million and buybacks of treasury shares and transactions under the liquidity contract of €94.9 million, partially offset by a €216 million increase in long-term financing.

1.5.2 - Debt

Gross debt (defined as the sum of long-term and short-term borrowings, including commercial paper and bank overdrafts) came to €5,511.1 million at June 30, 2021 compared to €5,394.5 million at December 31, 2020.

Cash and cash equivalents and marketable securities amounted to €2,965.8 million at June 30, 2021 compared to €2,791.7 million at December 31, 2020.

Net debt (defined as gross debt less cash and cash equivalents and marketable securities) totaled €2,545.3 million at June 30, 2021 compared to €2,602.8 million at December 31, 2020.

The ratio of consolidated net debt to consolidated shareholders' equity was around 50% at June 30, 2021 compared with around 53% at December 31, 2020.

At June 30, 2021, the Group's gross debt consisted of the following:

■ €3,500.0 million in bonds issued in April 2012 (€400,0 million), December 2015 (€300,0 million), July 2017 (€1 billion), October 2017 (€400,0 million), March 2018 (€400,0 million), June 2019 (€400,0 million) and May 2020 (€600,0 million);

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

€1,319.5 million in negotiable commercial paper;
€310.2 million in Yankee bonds;
€280.2 million in lease financial liabilities; and
€101.2 million in other debt, consisting mainly of bank borrowings, overdrafts and debt related to acquisitions, net of debt issuance costs.

1.6 - RISKS AND UNCERTAINTIES

Readers should refer to chapter 2 and to Note 5.1.2 in chapter 8 of the Universal Registration Document filed with the French Autorité des Marchés Financiers (AMF) on April

12, 2021 under number D.21-0292, which discuss the main risk factors of a nature to adversely affect the group's position and risk management.

1.7 - TRENDS AND PROSPECTS

Given very good first-half showings, but also a persistently uncertain health environment and strong and rising pressure on upstream supply chains, Legrand is now aiming for the following full-year targets of about:

organic growth in sales of at least +10%;
a scope of consolidation effect of 3%;
an adjusted operating margin of about 20% of sales (including acquisitions consolidated in 2021).

The Group also aims to achieve at least 100% of its CSR roadmap for 2021, testifying to its ongoing deployment of a bold and exemplary ESG approach, with a particular focus on the fight against global warming and the promotion of diversity.

CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2021

2.1 - CONSOLIDATED FINANCIAL STATEMENTS IN ACCORDANCE WITH IFRS AS OF JUNE 30, 202115

2.1.1 - Consolidated statement of income	15
2.1.2 - Consolidated statement of comprehensive income	16
2.1.3 - Consolidated balance sheet	17
2.1.4 - Consolidated statement of cash flows	19
2.1.5 - Consolidated statement of changes in equity	20
2.1.6 - Notes to the consolidated financial statements	21

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.1 - CONSOLIDATED FINANCIAL STATEMENTS IN ACCORDANCE WITH IFRS AS OF JUNE 30, 2021

2.1.1 - Consolidated statement of income

		6 months ended
(in € millions)	June 30, 2021	June 30, 2020
Net sales (Notes 2.1 and 2.2)	3,453.4	2,832.6
Operating expenses (Note 2.3)
Cost of sales	(1,645.7)	(1,369.0)
Administrative and selling expenses	(869.5)	(806.1)
Research and development costs	(163.2)	(157.2)
Other operating income (expenses)	(58.8)	(50.5)
Operating profit	716.2	449.8
Financial expenses	(45.7)	(45.9)
Financial income	3.3	3.6
Exchange gains (losses)	(0.9)	(6.5)
Financial profit (loss)	(43.3)	(48.8)
Profit before tax	672.9	401.0
Income tax expense (Note 2.4)	(191.7)	(114.3)
Share of profits (losses) of equity-accounted entities	0.0	(0.9)
Profit for the period	481.2	285.8
Of which:
- Net profit attributable to the Group	481.3	285.7
- Minority interests	(0.1)	0.1
Basic earnings per share (euros) (Note 4.1.3)	1.803	1.070
Diluted earnings per share (euros) (Note 4.1.3)	1.788	1.060

2.1.2 - Consolidated statement of comprehensive income

	6 months ended
(in € millions)	June 30, 2021	June 30, 2020
Profit for the period	481,2	285.8
Items that may be reclassified subsequently to profit or loss
Translation reserves	156,6	(146.2)
Cash flow hedges	0,0	0.0
Income tax relating to components of other comprehensive income	4,2	(4.3)
Items that will not be reclassified to profit or loss
Actuarial gains and losses (Note 4.5.1.1)	15,2	(3.4)
Deferred taxes on actuarial gains and losses	(3,7)	1.0
Other (Note 5.1.1.1)	0,0	0.0
Comprehensive income for the period	653,5	132.9
Of which:
- Comprehensive income attributable to the Group	653,5	132.8
- Minority interests	0,0	0.1

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.1.3 - Consolidated balance sheet

ASSETS

(in € millions)	June 30, 2021	December 31, 2020
Non-current assets
Intangible assets (Note 3.1)	2,489.4	2,441.6
Goodwill (Note 3.2)	4,827.7	4,803.7
Property, plant and equipment (Note 3.3)	674.1	680.9
Right-of-use assets (Note 3.4)	269.4	268.3
Other investments	1.3	1.5
Other non-current assets	53.4	49.4
Deferred tax assets (Note 4.7)	128.4	112.4
TOTAL NON CURRENT ASSETS	8,443.7	8,357.8
Current assets
Inventories (Note 3.5)	987.6	837.3
Trade receivables (Note 3.6)	789.2	644.5
Income tax receivables	63.6	70.1
Other current assets (Note 3.7)	230.2	204.8
Other current financial assets	1.6	1.5
Cash and cash equivalents (Note 3.8)	2,965.8	2,791.7
TOTAL CURRENT ASSETS	5,038.0	4,549.9
TOTAL ASSETS	13,481.7	12,907.7

EQUITY AND LIABILITIES

(in € millions)	June 30, 2021	December 31, 2020
Equity
Share capital (Note 4.1)	1,069.8	1,069.8
Retained earnings (Notes 4.2 and 4.3.1)	4,825.8	4,788.3
Translation reserves (Note 4.3.2)	(805.8)	(962.3)
Equity attributable to equity holders of Legrand	5,089.8	4,895.8
Minority interests	8.3	10.2
TOTAL EQUITY	5,098.1	4,906.0
Non-current liabilities
Long-term provisions (Notes 4.4 and 4.5.2)	205.8	200.2
Provisions for post-employment benefits (Note 4.5.1)	171.3	181.8
Long-term borrowings (Note 4.6.1)	3,869.2	4,073.8
Deferred tax liabilities (Note 4.7)	851.3	791.2
TOTAL NON-CURRENT LIABILITES	5,097.6	5,247.0
Current liabilities
Trade payables	763.8	612.9
Income tax payables	43.4	30.3
Short-term provisions (Note 4.4)	140.9	127.9
Other current liabilities (Note 4.8)	695.7	661.8
Short-term borrowings (Note 4.6.2)	1,641.9	1,320.7
Other current financial liabilities	0.3	1.1
TOTAL CURRENT LIABILITIES	3,286.0	2,754.7
TOTAL EQUITY AND LIABILITIES	13,481.7	12,907.7

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.1.4 - Consolidated statement of cash flows

	6 months ended
(in € millions)	June 30, 2021	June 30, 2020
Profit for the period	481.2	285.8
Adjustments for non-cash movements in assets and liabilities:
– Depreciation and impairment of tangible assets (Note 2.3)	55.4	56.8
– Amortization and impairment of intangible assets (Note 2.3)	48.3	51.9
– Amortization and impairment of capitalized development costs (Note 2.3)	13.3	13.2
– Amortization of right-of-use assets (Note 3.4)	33.5	35.6
– Amortization of financial expenses	1.8	1.6
– Impairment of goodwill (Note 3.2)	0.0	0.0
– Changes in long-term deferred taxes	44.8	16.3
– Changes in other non-current assets and liabilities (Notes 4.4 and 4.5)	19.5	17.7
– Unrealized exchange (gains)/losses	3.6	(15.7)
– Share of (profits) losses of equity-accounted entities	0.0	0.9
– Other adjustments	(0.2)	(2.5)
– Net (gains)/losses on sales of assets	(3.4)	(15.9)
Changes in working capital requirement:		0.0
– Inventories (Note 3.5)	(121.8)	(39.8)
– Trade receivables (Note 3.6)	(97.1)	18.9
– Trade payables	121.7	(97.9)
– Other operating assets and liabilities (Notes 3.7 and 4.8)	21.1	(42.8)
Net cash from operating activities	621.7	284.1
– Net proceeds from sales of fixed and financial assets	8.3	20.8
– Capital expenditure (Notes 3.1 and 3.3)	(42.0)	(34.3)
– Capitalized development costs	(16.7)	(11.7)
– Changes in non-current financial assets and liabilities	(5.0)	6.6
– Acquisitions of subsidiaries, net of cash acquired (Note 1.3.2)	(5.8)	(470.7)
Net cash from investing activities	(61.2)	(489.3)
– Proceeds from issues of share capital and premium (Note 4.1.1))	0.0	9.2
– Net sales (buybacks) of treasury shares and transactions under the liquidity contract (Note 4.1.2)	(94.9)	(33.5)
– Dividends paid to equity holders of Legrand (Note 4.1.3)	(377.9)	(357.4)
– Dividends paid by Legrand subsidiaries	0.0	0.0
– Proceeds from long-term financing (Note 4.6)	216.0	601.0
– Repayment of long-term financing* (Note 4.6)	(38.0)	(33.7)
– Debt issuance costs	0.0	(4.2)
– Increase (reduction) in short-term financing (Note 4.6)	(104.5)	992.8
– Acquisitions of ownership interests with no gain of control (Note 1.3.2)	0.0	0.0
Net cash from financing activities	(399.3)	1,174.2
Translation net change in cash and cash equivalents	12.9	(8.7)
Increase (decrease) in cash and cash equivalents	174.1	960.3
Cash and cash equivalents at the beginning of the period	2,791.7	1,710.9
Cash and cash equivalents at the end of the period (Note 3.8)	2,965.8	2,671.2
Items included in cash flows:
– Interest paid during the period**	42.1	40.8
– Income taxes paid during the period	125.4	90.4

* Of which €33.0 million corresponding to lease financial liabilities repayment for the 6 months ended June 30, 2021 (€33.7 million for the 6 months ended June 30, 2020).

** Interest paid is included in the net cash from operating activities; of which €3.4 million interests on lease financial liabilities for the 6 months ended June 30, 2021 (€4.5 million for the 6 months ended June 30, 2020).

2.1.5 - Consolidated statement of changes in equity

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

	Equity attributable to the Group
(in € millions)	Share capital	Retained earnings	Translation reserves	Actuarial gains and losses*	Total	Minority interests	Total equity
As of December 31, 2019	1,069.1	4,575.8	(453.5)	(89.2)	5,102.2	9.9	5,112.1
Profit for the period		285.7			285.7	0.1	285.8
Other comprehensive income		(4.3)	(146.2)	(2.4)	(152.9)	0.0	(152.9)
Total comprehensive income		281.4	(146.2)	(2.4)	132.8	0.1	132.9
Dividends paid		(357.4)			(357.4)	0.0	(357.4)
Issues of share capital and premium	1.7	7.5			9.2		9.2
Cancellation of shares held in treasury	(1.0)	(15.2)			(16.2)		(16.2)
Net sales (buybacks) of treasury shares and transactions under the liquidity contract		(17.3)			(17.3)		(17.3)
Change in scope of consolidation**		(1.0)			(1.0)	(0.1)	(1.1)
IFRS 16 transition impact		0.0			0.0		0.0
Current taxes on share buybacks		(0.2)			(0.2)		(0.2)
Share-based payments		9.4			9.4		9.4
As of June 30, 2020	1,069.8	4,483.0	(599.7)	(91.6)	4,861.5	9.9	4,871.4
Profit for the period		395.5			395.5	0.7	396.2
Other comprehensive income		(7.6)	(362.6)	(1.3)	(371.5)	(0.1)	(371.6)
Total comprehensive income		387.9	(362.6)	(1.3)	24.0	0.6	24.6
Dividends paid		0.0			0.0	(1.2)	(1.2)
Issues of share capital and premium	0.0	0.0			0.0		0.0
Cancellation of shares held in treasury Net sales (buybacks) of treasury shares and	0.0	(0.0)			(0.0)		(0.0)
transactions under the liquidity contract		1.1			1.1		1.1
Change in scope of consolidation** Current taxes on share buybacks		(3.5) (0.2)			(3.5) (0.2)	0.9	(2.6) (0.2)
Share-based payments		12.9			12.9		12.9

As of December 31, 2020	1,069.8	4,881.2	(962.3)	(92.9)	4,895.8	10.2	4,906.0
Profit for the period		481.3			481.3	(0.1)	481.2
Other comprehensive income		4.2	156.5	11.5	172.2	0.1	172.3
Total comprehensive income		485.5	156.5	11.5	653.5	0.0	653.5
Dividends paid		(377.9)			(377.9)	0.0	(377.9)
Issues of share capital and premium (Note 4.1.1)	0.0	0.0			0.0		0.0
Cancellation of shares held in treasury (Note 4.1.1)	0.0	0.0			0.0		0.0
Net sales (buybacks) of treasury shares and transactions under the liquidity contract (Note 4.1.2)		(94.9)			(94.9)		(94.9)
Change in scope of consolidation**		(1.5)			(1.5)	(1.9)	(3.4)
Current taxes on share buybacks		(0.4)			(0.4)		(0.4)
Share-based payments (Note 4.2)		15.2			15.2		15.2
As of June 30, 2021	1,069.8	4,907.2	(805.8)	(81.4)	5,089.8	8.3	5,098.1

* Net of deferred taxes.

** Corresponds mainly to acquisitions of additional shares in companies already consolidated and to puts on minority interests.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.1.6 - Notes to the consolidated financial statements

	KEY FIGURES AND SIGNIFICANT EVENTS FOR THE PERIOD	22
	NOTE 1 - BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS	23
1.1	General information	23
1.2	Accounting policies	23
1.3	Scope of consolidation	26
	NOTE 2 - HALF-YEAR RESULTS	27
2.1	Segment information	27
2.2	Net sales	28
2.3	Operating expenses	29
2.4	Income tax expense	30
	NOTE 3 - DETAILS ON NON-CURRENT AND CURRENT ASSETS	31
3.1	Intangible assets	31
3.2	Goodwill	33
3.3	Property, plant and equipment	35
3.4	Right-of-use assets and lease contracts	35
3.5	Inventories	36
3.6	Trade receivables	37
3.7	Other current assets	38
3.8	Cash and cash equivalents	38
	NOTE 4 - DETAILS ON NON-CURRENT AND CURRENT LIABILITIES	39
4.1	Share capital and earnings per share	39
4.2	Stock option plans and performance share plans	40
4.3	Retained earnings and translation reserves	43
4.4	Provisions	44
4.5	Provision for post-employment benefits and other long-term employee benefits	45
4.6	Long-term and short-term borrowings	48
4.7	Deferred taxes	51
4.8	Other current liabilities	51
	NOTE 5 - OTHER INFORMATION	52
5.1	Financial instruments and management of financial risks	52
5.2	Off-balance sheet commitments and contingent liabilities	54
5.3	Subsequent events	54
5.4	Key figures reconciliation	55

KEY FIGURES AND SIGNIFICANT EVENTS FOR THE PERIOD

Key figures

(in € millions)	1st half 2021	1st half 2020
Net sales	3,453.4	2,832.6
Adjusted operating profit	761.4	496.9
As % of net sales	22.0%	17.5%
	⁽¹⁾ 22.4 % before acquisitions
Operating profit	716.2	449.8
As % of net sales	20.7%	15.9%
Net profit attributable to the Group	481.3	285.7
As % of net sales	13.9%	10.1%
Normalized free cash flow	577.4	469.7
As % of net sales	16.7%	16.6%
Free cash flow	571.3	258.9
As % of net sales	16.5%	9.1%
Net financial debt at June 30	2,545.3	3,109.1

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

(1) At 2020 scope of consolidation.

Normalized free cash flow is defined as the sum of net cash from operating activities - based on a working capital requirement representing 10% of the last 12 months' sales and whose change at constant scope of consolidation and exchange rates is adjusted for the period considered - and net proceeds of sales from fixed and financial assets, less capital expenditure and capitalized development costs.

Free cash flow is defined as the sum of net cash from operating activities and net proceeds from sales of fixed and financial assets, less capital expenditure and capitalized development costs.

Net financial debt is defined as the sum of short-term borrowings and long-term borrowings, less cash and cash equivalents and marketable securities.

The reconciliation of key figures with the financial statements is available in Note 5.4.

NOTE 1 - BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

1.1 GENERAL INFORMATION

Legrand ("the Company") along with its subsidiaries (together "Legrand" or "the Group") is the global specialist in electrical and digital building infrastructures.

The Group has manufacturing and/or distribution subsidiaries and offices in close to 90 countries and sells its products in close to 180 countries.

The Company is a French société anonyme incorporated and domiciled in France. Its registered office is located at 128, avenue du Maréchal de Lattre de Tassigny – 87000 Limoges (France).

The consolidated financial statements were approved by the Board of Directors on July 30, 2021. They should be read in conjunction with the consolidated financial statements for the year ended December 31, 2020 as set out in the Universal Registration Document filed with the AMF on April 12, 2021 under no. D.21-0292.

All amounts are presented in millions of euros unless otherwise specified. Some totals may include rounding differences.

1.2 ACCOUNTING POLICIES

As a company incorporated in France, Legrand is governed by French company laws, including the provisions of the Code de commerce (French Commercial Code).

The consolidated financial statements cover the 6 months ended June 30, 2021. They have been prepared in accordance with the International Financial Reporting Standards (IFRS), including IAS 34 – Interim Financial Reporting, and IFRS Interpretations Committee publications adopted by the European Union and applicable or authorized for early adoption from January 1, 2021.

None of the IFRS issued by the International Accounting Standards Board (IASB) that have not been adopted for use in the European Union are applicable to the Group.

The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Group's accounting policies.

The areas involving a specific degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 1.2.3.

The consolidated financial statements have been prepared using the historical cost convention, except for some classes of assets and liabilities in accordance with IFRS. The classes concerned are mentioned in Note 5.1.1.2.

1.2.1 New standards, amendments and interpretations that may impact the Group's financial statements

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amendment to IAS 19 – Employee benefits

In June 2021, the IFRS Interpretations Committee questioned the method applied to establish the maturity profile of the debt in relation with defined benefits plans.

Those benefits will be capped after a certain seniority level is reached.

This decision will be effective for annual periods beginning on January 1, 2021.

The Group is currently reviewing this amendment to determine precisely its possible impacts on the consolidated financial statements and related disclosures, impacts that should not be material.

1.2.1.1 New standards, amendments and interpretations with mandatory application from January 1, 2021 that have an impact on the Group's 2021 financial statements

Not applicable.

1.2.1.2 New standards, amendments and interpretations with mandatory application from January 1, 2021 that have no impact on the Group's 2021 financial statements

Amendments to IAS 1 and IAS 8 – Definition of Material

In October 2018, the IASB issued amendments to IAS 1 – Presentation of Financial Statements and IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors.

These amendments clarify that information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of the financial statements make.

1.2.1.3 New standards, amendments and interpretations adopted by the European Union and not applicable to the Group until future periods

Not applicable.

1.2.1.4 New standards, amendments and interpretations not yet adopted by the European Union and not applicable to the Group until future periods

Amendment to IAS 1 – Classification of Liabilities as Current or Non-current

In January 2020, the IASB issued the IAS 1 amendment - Classification of Liabilities as Current or Non-current.

This amendment clarifies the requirements for classifying liabilities as current or non-current.

Not yet been adopted by the European Union, the amendment should be effective for annual periods beginning on or after January 1, 2023 at the latest.

The Group reviewed the amendment, to determine its possible impacts on the consolidated financial statements and related disclosures. It should have no material impact on the Group.

Amendment to IAS 12 – Income Taxes

In May 2021, the IASB issued an amendment to IAS 12 – Income Taxes.

This amendment reduces the scope of application of the exemption from initial recognition of deferred tax for transactions such as decommissioning obligations and leases.

The amendment is not expected to have a material impact on the Group.

Not yet been adopted by the European Union, the amendment should be effective for annual periods beginning on or after January 1, 2023 at the latest.

Amendment to IFRS 16 – Leases

In May 2020, the IASB issued an amendment to IFRS 16 which states that reductions in lease payments are not necessarily to be considered as contract modifications, provided that these reductions are not accompanied with a change in the lease duration or in the lease scope. Therefore, such lease payment reductions can be treated as variable payments.

In March 2021 the IASB extended the applicability period of the May 2020 amendment by one year. This extension has not yet been adopted by the European Union.

No material impact on the Group is expected from this amendment in 2021, as in 2020.

1.2.2 Basis of consolidation

Subsidiaries are consolidated if they are controlled by the Group.

The Group has exclusive control over an entity when it has power over the entity, i.e., it has substantive rights to govern the entity's key operations, is exposed to variable returns from its involvement with the entity and has the ability to affect those returns.

Such subsidiaries are fully consolidated from the date when effective control is transferred to the Group. They are deconsolidated from the date on which control ceases.

Any entity over which the Group has either:

■ significant influence (a situation that occurs when the Group holds more than 20% of the voting rights without providing it with substantive rights to govern the entity's key operations); or

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

■ joint control (a situation where the Group's participation gives it substantive rights to govern the entity's key operations jointly with a partner but does not provide exclusive control to the Group);

is consolidated using the equity method.

Such subsidiaries are initially recognized at acquisition cost and consolidated from the date when effective control is transferred to the Group. They are deconsolidated from the date on which control ceases.

Items included in the financial statements of each Group entity are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in euros, which is the Company's functional and presentation currency.

1.2.3 Use of judgments and estimates

The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that are reflected in the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.

Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events, and are believed to be reasonable under the circumstances.

1.2.3.1 Impairment of goodwill and intangible assets

Trademarks with indefinite useful lives and goodwill are tested for impairment at least once a year and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Intangible assets with finite useful lives are amortized over their estimated useful lives and are tested for impairment when there is any indication that their recoverable amount may be less than their carrying amount.

Future events could cause the Group to conclude that evidence exists that certain intangible assets acquired in a business combination are impaired. Any resulting impairment loss could have a material adverse effect on the Group's consolidated financial statements and in particular on the Group's operating profit.

Discounted cash flow estimates (used for impairment tests on goodwill and trademarks with indefinite useful lives) are based on management's estimates of key assumptions, especially discount rates, long-term growth and profitability

rates and royalty rates for trademarks with indefinite useful lives.

1.2.3.2 Accounting for income taxes

As part of the process of preparing the consolidated financial statements, the Group is required to estimate income taxes in each of the jurisdictions in which it operates. This involves estimating the actual current tax exposure and assessing temporary differences resulting from differing treatment of items such as deferred revenue or prepaid expenses for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are reported in the consolidated balance sheet.

The Group must then assess the probability that deferred tax assets will be recovered from future taxable profit.

Deferred tax assets are recognized only when it is probable that sufficient taxable profit will be available, based on management-approved taxable profit forecasts.

The Group has not recognized all of its deferred tax assets because it is not probable that some of them will be recovered before they expire. The amounts involved mainly concern operating losses carried forward and foreign income tax credits. The assessment is based on management's estimates of future taxable profit by jurisdiction in which the Group operates and the period over which the deferred tax assets are recoverable.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.2.3.3 Other assets and liabilities based on estimates

Other assets and liabilities based on estimates include provisions for pensions and other post-employment benefits, impairment of trade receivables, inventories and financial assets, share-based payments, provisions for contingencies and charges, right-of-use assets, capitalized development costs, and any annual volume rebates offered to customers. ............. . ............. . ............. . CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2021

1.3 SCOPE OF CONSOLIDATION

1.3.1 List of main consolidated companies

The consolidated financial statements comprise the financial statements of Legrand and its 209 subsidiaries.

The main consolidated operating subsidiaries are reported in Note 1.3.1 to the consolidated financial statements as of December 31, 2020. Changes in the scope of consolidation in first-half 2021 are presented below in Note 1.3.2.

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

1.3.2 Changes in the scope of consolidation

The contributions to the Group's consolidated financial statements of companies acquired since the end of 2019 were as follows:

2020	March 31	June 30	September 30	December 31
Full consolidation method
Jobo Smartech	Balance sheet only	6 months' profit	9 months' profit	12 months' profit
Focal Point	Balance sheet only	Balance sheet only	7 months' profit	10 months' profit
Borri				Balance sheet only
Champion One				Balance sheet only
Compose				Balance sheet only

2021	March 31	June 30
Full consolidation method
Jobo Smartech	3 months' profit	6 months' profit
Focal Point	3 months' profit	6 months' profit
Borri	3 months' profit	6 months' profit
Champion One	Balance sheet only	6 months' profit
Compose	Balance sheet only	6 months' profit

No significant acquisitions were completed by the Group in first-half 2021.

NOTE 2 - HALF-YEAR RESULTS

2.1 SEGMENT INFORMATION

In accordance with IFRS 8, operating segments are determined based on the reporting made available to the chief operating decision maker of the Group and to the Group's management.

Given that Legrand's activities are carried out locally, the Group is organized for management purposes by countries or groups of countries which have been allocated for internal reporting purposes into three operating segments:

Europe, including France, Italy and Rest of Europe (mainly including Benelux, Germany, Iberia (including Portugal and Spain), Poland, Russia, Turkey, and the United Kingdom);
North and Central America, including Canada, Mexico, the United States, and Central American countries; and

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

■ Rest of the world, mainly including Australia, China, India, and South America (including particularly Brazil, Chile and Colombia).

These three operating segments are under the responsibility of three segment managers who are directly accountable to the chief operating decision maker of the Group.

The economic models of subsidiaries within these segments are quite similar. Indeed, their sales are made up of electrical and digital building infrastructure products in particular to electrical installers, sold mainly through third-party distributors.

		North and Central	Rest of the
(in € millions)	Europe	America	world	Total
Net sales to third parties	1,532.3	⁽¹⁾ 1,327.0	⁽²⁾ 594.1	3,453.4
Cost of sales	(660.1)	(642.0)	(343.6)	(1,645.7)
Administrative and selling expenses, R&D costs	(454.0)	(436.2)	(142.5)	(1,032.7)
Other operating income (expenses)	(27.7)	(28.3)	(2.8)	(58.8)
Operating profit	390.5	220.5	105.2	716.2
- of which acquisition-related amortization, expenses and income
· accounted for in administrative and selling expenses, R&D costs	(7.1)	(35.4)	(2.7)	(45.2)
· accounted for in other operating income (expenses)				0.0
- of which goodwill impairment				0.0
Adjusted operating profit	397.6	255.9	107.9	761.4
- of which depreciation and impairment of tangible assets	(31.9)	(12.5)	(10.8)	(55.2)
- of which amortization and impairment of intangible assets	(3.8)	(1.3)	(0.4)	(5.5)
- of which amortization and impairment of development costs	(12.8)	0.0	(0.5)	(13.3)
- of which amortization and impairment of right-of-use assets	(13.1)	(11.0)	(9.4)	(33.5)
- of which restructuring costs	(8.5)	(6.2)	2.1	(12.6) ⁽³⁾
Capital expenditure	(28.2)	(7.0)	(6.8)	(42.0)
Capitalized development costs	(16.0)	0.0	(0.7)	(16.7)
Net tangible assets	420.0	139.7	114.4	674.1
Total current assets	3,412.3	821.3	804.4	5,038.0
Total current liabilities	2,442.3	416.4	427.3	3,286.0

6 months ended June 30, 2021

(1) Of which France: €625.4 million.

(2) Of which United States: €1,229.4 million.

(3) €(16.0) million excluding net gains on sales of assets.

6 months ended June 30, 2020

		North and Central	Rest of the
(in € millions)	Europe	America	world	Total
Net sales to third parties	1,167.5 ⁽¹⁾	1,193.1 ⁽²⁾	472.0	2,832.6
Cost of sales	(529.1)	(583.0)	(256.9)	(1,369.0)
Administrative and selling expenses, R&D costs	(411.0)	(414.0)	(138.3)	(963.3)
Other operating income (expenses)	(25.7)	(27.0)	2.2	(50.5)
Operating profit	201.7	169.1	79.0	449.8
- of which acquisition-related amortization, expenses and income
· accounted for in administrative and selling expenses, R&D costs	(7.8)	(33.8)	(8.2)	(49.8)
· accounted for in other operating income (expenses)		2.7		2.7
- of which goodwill impairment				0.0
Adjusted operating profit	209.5	200.2	87.2	496.9
- of which depreciation and impairment of tangible assets	(32.7)	(12.2)	(11.7)	(56.6)
- of which amortization and impairment of intangible assets	(4.3)	(1.1)	(0.4)	(5.8)
- of which amortization and impairment of development costs	(12.7)	0.0	(0.5)	(13.2)
- of which amortization and impairment of right-of-use assets	(13.7)	(12.2)	(9.7)	(35.6)
- of which restructuring costs	(16.8)	(10.1)	2.8	(24.1) ⁽³⁾
Capital expenditure	(23.5)	(5.6)	(5.2)	(34.3)
Capitalized development costs	(11.0)	0.0	(0.7)	(11.7)
Net tangible assets	415.4	151.6	115.1	682.1
Total current assets	3,042.0	864.8	661.7	4,568.5
Total current liabilities	2,187.9	386.0	376.4	2,950.3

(1) Of which France: €446.2 million.

(2) Of which United States: €1,120.2 million.

(3) €(40.0) million excluding net gains on sales of assets.

2.2 NET SALES

The Group derived the large majority of its revenue from product sales to generalist and specialist distributors. The two largest distributors accounted for close to 17% of consolidated net sales in 2020. The Group estimates that no other distributor accounted for more than 5% of consolidated net sales.

Contracts with distributors are signed for a one-year period. As a general rule, there is only one performance obligation in these contracts, which is to sell and deliver products to the customer (the performance obligation related to delivery is not material within the context of customer contracts).

Within the context of these contracts, the Group owns the main risks and benefits resulting from the product sales, and therefore acts as the principal (and not as an agent).

Net sales are generally recognized at one point in time, corresponding to the date on which the control of the asset (products or, more rarely, services) is transferred to the customer, usually the date of shipment in the case of product sales. In the specific case of service sales where the customer consumes the service benefits over the period in which they are provided, net sales are recognized over time, i.e. spread over the period in which the services are provided to the customer.

.................................... .

............. .

Contracts with customers generally include variable payments in their favor, primarily deferred discounts and rebates, and occasionally commercial returns. These variable payments to customers are estimated at their most likely amount and accounted for when net sales are recognized, so that they will not subsequently generate any significant adverse adjustments. By default, variable payments to customers are accounted for as a deduction from net sales. Only payments made to customers in exchange for the transfer of products or services by these customers are accounted for as selling expenses, for the portion of these payments corresponding to the transferred products' or services' fair value.

of consolidation +4.6% and the unfavorable impact of exchange rates (-4.9%).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Changes in net sales by destination are as follows:

	6 months ended June 30,
Net sales (in € million, except %)	2021	2020	Total change	Change in scope of consolidation	Organic growth (1)	Exchange rate effect
Europe	1,467.0	1,125.3	30.4%	1.7%	30.6%	(1.8%)
North and Central America	1,303.2	1,173.1	11.1%	8.3%	11.7%	(8.2%)
Rest of the World	683.2	534.2	27.9%	2.5%	31.0%	(4.8%)
Consolidated total	3,453.4	2,832.6	21.9%	4.6%	22.6%	(4.9%)

(1) at constant scope of consolidation and exchange rates.

The Group sells its products in mature countries as well as many new economies (Eastern Europe and Turkey in the Europe operating segment, Central America and Mexico in the North and Central America operating segment, Asia excluding South Korea, South America, Africa and the Middle East in the Rest of the world operating segment).

Net sales (by destination) in these two geographical areas are as follows:

	6 months ended
(in € millions)	June 30, 2021	June 30, 2020
Mature countries	2,580.6	2,141.5
New economies	872.8	691.1
TOTAL	3,453.4	2,832.6

2.3 OPERATING EXPENSES

Operating expenses include the following main categories of costs:

	6 months ended
(in € millions)	June 30, 2021	June 30, 2020
Raw materials and component costs	(1,135.3)	(911.0)
Personnel costs	(850.7)	(779.8)
Other external costs	(541.2)	(484.9)
Amortization of right-of-use assets	(33.5)	(35.6)
Depreciation of tangible assets	(56.4)	(56.8)
Amortization of intangible assets	(61.3)	(65.1)
Restructuring costs	(12.6) ⁽¹⁾	⁽² (24.1) ⁾
Goodwill impairment	0.0	0.0
Other	(46.2)	(25.5)
OPERATING EXPENSES	(2,737.2)	(2,382.8)

(1) €(16.0) million excluding net gains on sales of assets.

(2) €(40.0) million excluding net gains on sales of assets.

"Other" primarily includes impairment losses and reversals on inventories (Note 3.5), trade receivables (Note 3.6), and provisions for contingencies (Note 4.4).

The Group had an average of 37,473 employees as of June 30, 2021 (versus 36,335 as of June 30, 2020), of which 30,483 back-office employees and 6,990 front-office employees (versus 29,026 and 7,309, respectively, as of June 30, 2020).

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

2.4 INCOME TAX EXPENSE

Income tax expense consists of the following:

	6 months ended
(in € millions)	June 30, 2021	June 30, 2020
Current taxes	(156.1)	(97.8)
Deferred taxes	(35.6)	(16.5)
TOTAL INCOME TAX EXPENSE	(191.7)	(114.3)

The reconciliation of total income tax expense for the period to income tax calculated at the standard tax rate in France is as follows, based on profit before tax of €672.9 million in first-half 2021 (versus €401.0 million in first-half 2020):

	6 months ended
(Tax rate)	June 30, 2021	June 30, 2020
Standard French income tax rate	28.41%	32.02%
Increases (reductions):
- Effect of foreign income tax rates	(4.13%)	(8.65%)
- Non-taxable items	(0.76%)	(0.59%)
- Income taxable at specific rates	(0.23%)	(0.44%)
- Other	5.26%	4.40%
	28.55%	26.74%
Impact on deferred taxes of:
- Changes in tax rates	(0.11%)	0.31%
- Recognition or non-recognition of deferred tax assets	0.05%	1.45%
EFFECTIVE TAX RATE	28.49 %	28.50%

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 3 - DETAILS ON NON-CURRENT AND CURRENT ASSETS

3.1 INTANGIBLE ASSETS

(in € millions)	June 30, 2021	December 31, 2020
Trademarks	1,851.2	1,834.9
Patents	129.5	129.3
Customer relationships	356.9	327.3
Other intangible assets	151.8	150.1
NET VALUE AT THE END OF THE PERIOD	2,489.4	2,441.6

3.1.1 Trademarks with indefinite and finite useful lives

The Legrand and Bticino brands represent close to 98% of the total value of trademarks with indefinite useful lives. These trademarks with indefinite useful lives are used internationally, and therefore contribute to all of the Group's cash-generating units.

They should contribute indefinitely to future consolidated cash flows because management plans to continue using them indefinitely. The Group performs periodical reviews of these trademarks' useful lives.

Trademarks with finite useful lives are amortized over their estimated useful lives ranging:

Trademarks can be analyzed as follows:

from 10 years when management plans to gradually replace them by other major trademarks owned by the Group;
to 20 years when management plans to replace them with other major trademarks owned by the Group only over the long term or when, in the absence of such an intention, management considers that the trademarks may be threatened by a major competitor in the long term.

Amortization of trademarks is recognized in the income statement under administrative and selling expenses.

(in € millions)	June 30, 2021	December 31, 2020
Gross value at the end of the period	2,231.9	2,185.4
Accumulated amortization and impairment at the end of the period	(380.7)	(350.5)
NET VALUE AT THE END OF THE PERIOD	1,851.2	1,834.9

To date, no significant impairment has been recognized for these trademarks.

Each trademark with an indefinite useful life is tested for impairment separately, in the fourth quarter of each year and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Impairment tests are performed using the relief from royalty method. This method consists of measuring the royalties that the company would have to pay to license the trademark from a third party. The theoretical value of these royalties is then measured by estimating future revenue generated by the trademark over its useful life, as if the trademark were owned by a third party.

There was no evidence of events or changes in circumstances requiring the recognition of impairment losses in first-half 2021.

The following impairment testing parameters were used in the period ended December 31, 2020:

			Value in use
(in € millions)	Recoverable amount	Carrying amount of trademarks with indefinite useful lives	Discount rate (before tax)	Growth rate to perpetuity
	Value in use	1,408.0	9.4 to 10.9%	2.8 to 3.1%

No impairment was recognized in the period ended December 31, 2020

3.1.2 Patents

Patents can be analyzed as follows:

(in € millions)	June 30, 2021	December 31, 2020
Gross value at the end of the period	770.9	758.7
Accumulated amortization and impairment at the end of the period	(641.4)	(629.4)
NET VALUE AT THE END OF THE PERIOD	129.5	129.3

To date, no significant impairment has been recognized for these patents.

3.1.3 Customer relationships

Customer relationships acquired in business combinations are recognized when they correspond to contractual relationships with key customers. Such relationships are measured using the excess earnings method, and are amortized over a period ranging from 3 to 20 years.

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

Customer relationships can be analyzed as follows:

(in € millions)	June 30, 2021	December 31, 2020
Gross value at the end of the period	507.2	458.5
Accumulated amortization and impairment at the end of the period	(150.3)	(131.2)
NET VALUE AT THE END OF THE PERIOD	356.9	327.3

To date, no significant impairment has been recognized for these customer relationships.

3.1.4 Other intangible assets

Other intangible assets are recognized at cost less accumulated amortization and impairment. They include in particular:

■ costs incurred for development projects (relating to the design and testing of new or improved products). They are amortized from the date of sale of the product on a straight-line basis over the

period in which the asset's future economic benefits are consumed, not exceeding 10 years. Costs incurred for projects that do not meet the IAS 38 definition of an intangible asset are recorded in research and development costs for the year in which they are incurred;

■ software, which is generally purchased from an external supplier and amortized over 3 years.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other intangible assets can be analyzed as follows:

(in € millions)	June 30, 2021	December 31, 2020
Capitalized development costs	449.4	431.7
Software	154.4	149.2
Other	27.7	27.8
Gross value at the end of the period	631.5	608.7
Accumulated amortization and impairment at the end of the period	(479.7)	(458.6)
NET VALUE AT THE END OF THE PERIOD	151.8	150.1

To date, no significant impairment has been recognized for these items.

3.2 GOODWILL

To determine the goodwill for each business combination, the Group applies the partial goodwill method whereby goodwill is calculated as the difference between the consideration paid to acquire the business combination and the portion of the acquisition date fair value of the identifiable net assets acquired and liabilities assumed that is attributable to the Group.

Under this method no goodwill is allocated to minority interests. Changes in the percentage of interest held in a controlled entity are recorded directly in equity without recognizing any additional goodwill.

Goodwill is tested for impairment annually, in the fourth quarter of each year, and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Within the Legrand Group, the level at which goodwill is measured (cash-generating units) corresponds to individual countries or to groups of countries, when they

either have similar market characteristics or are managed as a single unit.

Value in use is estimated based on discounted cash flows for the next five years and a terminal value calculated from the final year of the projection period. The cash flow data used for the calculation is taken from the most recent medium-term business plans approved by Group management. Business plan projections are based on the latest available external forecasts of trends in the Group's markets. Cash flows beyond the projection period of five years are estimated by applying a growth rate to perpetuity.

The discount rates applied derive from the capital asset pricing model. They are calculated for each individual country, based on financial market and/or valuation services firm data (average data over the last three years). The cost of debt used in the calculations is the same for all individual countries (being equal to the Group's cost of debt).

Goodwill can be analyzed as follows:

(in € millions)	June 30, 2021	December 31, 2020
Europe	1,563.3	1,599.3
Of which France	819.9	819.9
North and Central America	2,629.1	2,591.4
Rest of the world	635.3	613.0
NET VALUE AT THE END OF THE PERIOD	4,827.7	4,803.7

The North and Central America operating segment is considered to be a single cash-generating unit (CGU), whereas both the Europe and Rest of the world operating segments include several CGUs. Within these two operating segments, France and Italy, China, India and South America, are respectively the largest CGUs.

Only the goodwill allocated to the North and Central America CGU and the goodwill allocated to the France CGU represent more than 10% of total goodwill.

Changes in goodwill can be analyzed as follows:

(in € millions)	June 30, 2021	December 31, 2020
Gross value at the beginning of the period	4,840.4	4,603.1
- Acquisitions	0.0	716.5
- Adjustments*	(88.4)	(166.9)
- Translation adjustments	112.3	(312.3)
Gross value at the end of the period	4,864.3	4,840.4
Impairment value at the beginning of the period	(36.7)	(36.9)
- Impairment losses	0.0	0.0
- Translation adjustments	0.1	0.2
Impairment value at the end of the period	(36.6)	(36.7)
NET VALUE AT THE END OF THE PERIOD	4,827.7	4,803.7

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

*Adjustments correspond to the difference between provisional and final goodwill.

Purchase price allocations, which are performed within one year of each business combination, are as follows (excluding inventory step-up):

	6 or 12 months ended
(in € millions)	June 30, 2021	December 31, 2020
- Trademarks	21.8	69.5
- Deferred taxes on trademarks	(1.0)	(0.4)
- Patents	5.1	5.1
- Deferred taxes on patents	(1.4)	(0.2)
- Other intangible assets	32.2	82.3
- Deferred taxes on other intangible assets	0.0	0.0

There was no evidence of events or changes in circumstances requiring the recognition of impairment losses in first-half 2021.

The following impairment testing parameters were used in the period ended December 31, 2020:

			Value in use
	Recoverable amount	Carrying amount of goodwill	Discount rate (before tax)	Growth rate to perpetuity
Europe		1,599.3	8.2 to 20.4%	2.0 to 5.0%
Of which France	Value in use	819.9	8.5%	2.0%
North and Central America		2,591.4	9.3%	3.1%
Rest of the World		613.0	9.5 to 14.1%	2.0 to 5.0%
NET VALUE AT THE END OF THE PERIOD		4,803.7

No goodwill impairment losses were identified in the period ended December 31, 2020.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.3 PROPERTY, PLANT AND EQUIPMENT

Depreciation is calculated on a straight-line basis over the estimated useful lives of the respective assets; the most commonly adopted useful lives are the following:

Lightweight buildings	25 years
Standard buildings	40 years
Machinery and equipment	8 to 10 years
Tooling	5 years
Building fixtures	15 years

Property, plant and equipment can be analyzed as follows:

	June 30, 2021
(in € millions)	Land	Buildings	Machinery and equipment	Assets under construction and other	Total
Gross value at the end of the period	48.3	619.3	1,859.2	345.1	2,871.9
Depreciation and impairment at the end of the period	(0.2)	(427.3)	(1,570.5)	(199.8)	(2,197.8)
NET VALUE AT THE END OF THE PERIOD	48.1	192.0	288.7	145.3	674.1

	December 31, 2020
(in € millions)	Land	Buildings	Machinery and equipment	Assets under construction and other	Total
Gross value at the end of the period	47.0	618.8	1,819.6	343.2	2,828.6
Depreciation and impairment at the end of the period NET VALUE AT THE END OF	(0.2)	(424.7)	(1,532.7)	(190.1)	(2,147.7)
THE PERIOD	46.8	194.1	286.9	153.1	680.9

3.4 RIGHT-OF-USE ASSETS AND LEASE CONTRACTS

Right-of-use assets are initially measured at an amount equal mainly to the sum of:

initial values of the lease financial liability;
prepayments (including the first lease payment in case of lease payments made at the beginning of lease periods); and
restoration costs.

Right-of-use assets value is subsequently remeasured whenever the lease financial liability value is remeasured.

Right-of-use assets are depreciated using the straight-line method over the estimated lease contract duration. This latter is determined by taking into account the existence of lease renewal options and early termination options whose exercise is subject solely to the Group's decision.

More specifically, regardless of the nature of these options, whenever there is significant capital expenditures on leased buildings, the depreciation period applied to the tangible assets resulting from these expenditures is used to determine the estimated lease contract duration of these buildings.

Lease financial liabilities are initially measured at the present value of future lease payments (excluding variable lease payments and service payments whenever it is possible to identify these payments within total lease payments, while including, when applicable, the purchase

option value if the exercise of this option is deemed probable), using as the discount rate the borrowing rate available for a Group entity for both the currency and the maturity corresponding to the estimated duration of the lease contract.

Lease financial liabilities are remeasured when there is a change in future lease payments arising from a change in an index or rate, or a change in the lease term (following

Right-of-use assets can be analyzed as follows:

the subsequent exercise of an extension or an early termination option).

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

Lease financial liabilities are analyzed in Note 4.6.1.

The Group has elected not to recognize right-of-use assets and lease financial liabilities for short-term leases (not exceeding a one-year period) and/or leases of low-value assets.

	June 30, 2021
(in € millions)	Buildings	Machinery and equipment	Other	Total
Gross value at the end of the period	486.9	6.0	58.5	551.4
Depreciation and impairment at the end of the period	(246.8)	(3.2)	(32.0)	(282.0)
Net value at the end of the period	240.1	2.8	26.5	269.4

	December 31, 2020
(in € millions)	Buildings	Machinery and equipment	Other	Total
Gross value at the end of the period	460.7	6.7	64.5	531.9
Depreciation and impairment at the end of the period	(222.1)	(3.9)	(37.6)	(263.6)
Net value at the end of the period	238.6	2.8	26.9	268.3

"Buildings" right-of-use assets mainly concern lease contracts for production sites, commercial offices and warehouses. Most of these lease contracts offer both extension and early termination options, while very few of them include purchase options or restoration costs. Therefore, the corresponding right-of-use assets do not include any material amount for purchase options or restoration costs.

"Machinery and equipment" right-of-use assets comprises mainly industrial machinery.

"Other" right-of-use assets mainly concern vehicles, forklifts and some IT equipment. Although most of these lease contracts include purchase options, these options are generally not exercised.

3.5 INVENTORIES

Inventories are measured at the lower of cost (of acquisition or production) and 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 can be analyzed as follows:

(in € millions)	June 30, 2021	December 31, 2020
Purchased raw materials and components	420.8	340.4
Sub-assemblies, work in progress	119.2	101.0
Finished products	585.0	530.3
Gross value at the end of the period	1,125.0	971.7
Impairment	(137.4)	(134.4)
NET VALUE AT THE END OF THE PERIOD	987.6	837.3

3.6 TRADE RECEIVABLES

Trade receivables are initially recognized at fair value and are subsequently measured at amortized cost.

In accordance with IFRS 9, expected credit losses on trade receivables are estimated based on a provision table, by applying provision rates depending on the receivables aging.

Trade receivables can be analyzed as follows:

Furthermore, a provision can be recognized in the income statement when there is objective evidence of impairment such as:

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

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(in € millions)	June 30, 2021	December 31, 2020
Trade receivables	875.7	722.5
Impairment	(86.5)	(78.0)
NET VALUE AT THE END OF THE PERIOD	789.2	644.5

The Group uses factoring contracts to reduce the risk of late payments.

During first-half 2021, a total of €471.4 million in receivables were transferred under the terms of the factoring contracts. The resulting costs were recognized in financial profit (loss) for an amount of less than €1 million.

Past-due trade receivables can be analyzed as follows:

As of June 30, 2021, these factoring contracts allowed the Group to derecognize trade receivables for an amount of €161.0 million (€98.8 million as of December 31, 2020), as their terms transfer all credit and late payment risks to the factoring companies. The only risk that is not transferred is dilution risk, which is historically very low.

(in € millions)	June 30, 2021	December 31, 2020
Less than 3 months past due receivables	141.5	131.0
From 3 to 12 months past due receivables	36.0	31.5
More than 12 months past due receivables	39.2	36.2
TOTAL	216.7	198.7

Provisions for impairment of past-due trade receivables amounted to €71.3 million as of June 30, 2021 (€69.2 million as of December 31, 2020). These provisions break down as follows:

(in € millions)	June 30, 2021	December 31, 2020
Provisions for less than 3 months past due receivables	11.1	12.0
Provisions for 3 to 12 months past due receivables	21.0	21.0
Provisions for more than 12 months past due receivables	39.2	36.2
TOTAL	71.3	69.2

3.7 OTHER CURRENT ASSETS

Other current assets can be analyzed as follows:

(in € millions)	June 30, 2021	December 31, 2020
Employee advances	2.8	2.9
Prepayments	76.8	54.8
Taxes other than income tax	114.3	104.9
Other receivables	36.3	42.2
NET VALUE AT THE END OF THE PERIOD	230.2	204.8

These assets are valued at amortized cost.

3.8 CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash, short-term deposits and other liquid financial assets (possibility to realize the assets in less than 3 months at any time), readily convertible to known amounts of cash and are not subject to any material risk of change in value. These financial assets usually have an original maturity of less than or equal to one year.

Cash and cash equivalents that are unavailable in the short term for the Group correspond to the bank accounts of

certain subsidiaries facing complex, short-term fund repatriation conditions due mainly to regulatory reasons.

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

Cash and cash equivalents totaled €2,965.8 million as of June 30, 2021 (versus €2,791.7 million as of December 31, 2020). Of this amount, €4.5 million was not available to the Group in the short term as of June 30, 2021 (versus €0.4 million as of December 31, 2020).

NOTE 4 - DETAILS ON NON-CURRENT AND CURRENT LIABILITIES

4.1 SHARE CAPITAL AND EARNINGS PER SHARE

Share capital as of June 30, 2021 amounted to €1,069,790,984 represented by 267,447,746 ordinary shares with a par value of €4 each, for 267,447,746 theoretical voting rights and 266,737,300 exercisable voting rights (after subtracting shares held in treasury by the Group as of this date).

As of June 30, 2021, the Group held 710,446 shares in treasury, versus 125,407 shares as of December 31, 2020, i.e. 585,039 additional shares corresponding to:

■ the net acquisition of 1,200,000 shares outside of the liquidity contract;

4.1.1 Changes in share capital

Changes in share capital in first-half 2021 were as follows:

■ the transfer of 582,035 shares to employees under performance share plans;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

■ the net sale of 32,926 shares under the liquidity contract (Note 4.1.2.2).

As of June 30, 2021, among the 710,446 shares held in treasury by the Group, 645,645 shares have been allocated according to the allocation objectives described in Note 4.1.2.1, and 64,801 shares are held under the liquidity contract.

	Number of shares	Par value	Share capital (euros)	Premiums (euros)
As of December 31, 2020	267,447,746	4	1,069,790,984	539,064,770
As of June 30, 2021	267,447,746	4	1,069,790,984	539,064,770

4.1.2 Share buybacks and transactions under the liquidity contract

As of June 30, 2021, the Group held 710,446 shares in treasury (125,407 as of December 31, 2020, of which 27,680 under the share buyback program and 97,727 under the liquidity contract) which can be analyzed as follows:

4.1.2.1 Share buybacks

During first-half 2021, the Group acquired 1,200,000 shares, at a cost of €97.7 million.

As of June 30, 2021, the Group held 645,645 shares, acquired at a total cost of €51.3 million. These shares are being held for the following purposes:

for allocation, upon exercise of performance share plans, of 15,645 shares purchased at a cost of €1.4 million; and
for cancellation of 630,000 shares acquired at a cost of €49.9 million.

4.1.2.2 Liquidity contract

The Group has appointed a financial institution to maintain a liquid market for its shares on the Euronext™ Paris market

under a liquidity contract. This contract is compliant with the AMF decision on July 2, 2018, relating to the establishment of liquidity contracts on equity securities under accepted market practice.

As of June 30, 2021, the Group held 64,801 shares under this contract, purchased at a total cost of €5.7 million.

During first-half 2021, transactions under the liquidity contract led to a cash inflow of €2.8 million corresponding to the net sales of 32,926 shares.

4.1.3 Earnings per share

Basic earnings per share are calculated by dividing net profit attributable to the Group by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings per share are calculated according to the treasury stock method, by dividing profit attributable to the Group by the weighted average number of ordinary shares outstanding during the period, plus the number of dilutive potential ordinary shares. The weighted average number of ordinary shares outstanding used in these calculations is adjusted for the share buybacks and sales carried out during the period and does not take into account shares held in treasury.

Basic and diluted earnings per share, calculated on the basis of the average number of ordinary shares outstanding during the period, are as follows:

		6 months ended
		June 30, 2021	June 30, 2020
Net profit attributable to the Group (in € millions)	A	481.3	285.7
Average number of shares (excluding shares held in treasury)	B	266,923,173	267,002,816
Average dilution from:
- Performance shares		2,197,164	2,264,637
- Stock options			153,496
Average number of shares after dilution (excluding shares held in treasury)	C	269,120,337	269,420,949
Number of stock options and performance share grants outstanding at the period end		1,818,926	2,008,965
Sales (buybacks) of shares and transactions under the liquidity contract (net during the period)		(1,167,074)	(587,994)
Shares transferred during the period under performance share plans		582,035	496,532
Basic earnings per share (in euros)	A/B	1.803	1.070
Diluted earnings per share (in euros)	A/C	1.788	1.060
Dividend per share (in euros)		1.420	1.340

As mentioned above, during first-half 2021, the Group:

transferred 582,035 shares under performance share plans, out of the 554,355 shares bought back in first-half 2021 and 27,680 shares bought back from previous years for this purpose; and
sold a net 32,926 shares under the liquidity contract.

These movements were taken into account on an accruals basis in the computation of the average number of ordinary shares outstanding during the period, in accordance with IAS 33. If the shares had been issued and bought back on January 1, 2021, earnings per share and diluted earnings per share would have amounted to €1.804 and €1.789 respectively for the 6 months ended June 30, 2021.

During first-half 2020, the Group:

■ issued 436,618 shares under stock option plans;

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

transferred 496,532 shares under performance share plans, out of the 487,739 shares bought back in first-half 2020 and 8,793 bought back from previous years for this purpose; and
purchased a net 72,994 shares under the liquidity contract.

These movements were taken into account on an accruals basis in calculating the average number of ordinary shares outstanding during the period, in accordance with IAS 33. If the shares had been issued and bought back on January 1, 2020, basic earnings per share and diluted earnings per share would have amounted to €1.069 and €1.058 respectively for the 6 months ended June 30, 2020.

4.2 STOCK OPTION PLANS AND PERFORMANCE SHARE PLANS

The cost of stock options or performance shares is measured at the fair value of the award on the grant date, using the Black & Scholes option pricing model or the binomial model, and is recognized in the income statement under personnel costs on a straight-line basis over the vesting period with a corresponding adjustment to equity. Changes in the fair value of stock options after the grant date are not taken into account.

The expense recognized by crediting equity is adjusted at each period-end during the vesting period to take into account changes in the number of shares that are expected to be delivered to employees when the performance shares vest or the stock options are exercised, except for the number of shares related to the share price performance criteria.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.2.1 Performance share plans

	2017 Plan	2018 Plans	2019 Plans	2020 Plans	2021 Plans
Date approved by shareholders	May 27, 2016	May 30, 2018	May 30, 2018	May 30, 2018	May 26, 2021

Grant date	May 31, 2017	May 30, 2018	May 29, 2019	May 26, 2020	May 26, 2021
Total number of performance share rights initially granted	492,254 (1)	524,123 (1)	617,818	461,861	491,213
o/w to Executive Officer	12,503 (1)	19,546 (1)	22,954	11,544	20,544
- Gilles Schnepp	12,503	0		0 0	0
- Benoît Coquart	N/A	19,546	22,954	11,544	20,544
Total IFRS 2 expense (in € millions)	24.8 (2)	28.5 (2)		31.0 (2) 22.8 (2)	(2) 35.2
	June 17, 2021	June 16, 2021 (3)		June 16, 2022 (3) June 16, 2023 (3)	June 14, 2024 (3)
End of vesting period		June 16, 2022 (4)		June 16, 2023 (4) June 14, 2024 (4)	June 12, 2025 (4)
	June 17, 2021	May 31, 2023 (3)	May 31, 2024 (3)	May 28, 2025 (3)	May 27, 2026 (3)
End of lock-up period		June 16, 2022 (4)		June 16, 2023 (4) June 14, 2024 (4)	June 12, 2025 (4)
Number of performance shares adjusted for the performance criteria fulfillment	46,750 (5)	(34,000) (5)
Number of performance share rights cancelled or forfeited	(53,263)	(90,123)	(47,849)	(7,341)
Number of performance shares acquired as of June 30, 2021	(169)	(94,679)	(1,231)	(866)
PERFORMANCE SHARE RIGHTS OUTSTANDING AS OF JUNE 30, 2021	0	305,321	568,738	453,654	491,213

The following performance share plans were approved by the Company's Board of Directors:

(1) Given the dividend distribution features approved at the General Meetings of Shareholders on May 31, 2017, on May 30, 2018 and on May 29, 2019, 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.

(2) Total charge estimated at the grant date assuming 100% achievement for each performance criteria. This charge is spread over the vesting periods.

(3) Date applicable to the Executive Officer and members of the Executive Committee.

(4) Date applicable to beneficiaries other than the Executive Officer and members of the Executive Committee.

(5) Percentage of performance criteria achievement: see Note 4.2.1.3 of the consolidated financial statements for the year ended at December 31, 2020. For the 2018 plan, the number of adjusted performance shares is estimated at June 30, 2021.

4.2.1.1 2017 performance share plan

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

		Weight of performance criteria by plan
Type of performance criteria	Description of performance criteria	2017
"External" financial performance criterion	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.	1/3
"Internal" financial performance criterion	Arithmetic mean of normalized free cash flow as a percentage of sales over a three-year period, as published in the consolidated financial statements.	1/3
Non-financial performance criterion	Arithmetic mean of the average achievement rate of Group CSR Roadmap priorities over a three-year period.	1/3

Following the application of IFRS 16, on March 20, 2018 the Board of Directors decided to replace the EBITDA and free cash flow criteria for the 2019 performance assessment under the 2017 plan with the adjusted operating margin before acquisitions and organic sales growth criteria, in line with the Company's 2019 targets.

4.2.1.2 2018, 2019, 2020 and 2021 performance share plans

The final number of shares granted to beneficiaries is determined on the condition that the beneficiary is present within the Group at the time the vesting period expires and according to several performance criteria.

For the Executive Officer and members of the Executive Committee, the term of the vesting period is three years, with an additional two-year holding period; for other beneficiaries, the vesting period is four years, with no holding period

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

Performance criteria applicable to the Executive Officer and members of the Executive Committee

The performance criteria applicable to the Executive Officer and members of the Executive Committee are defined as follows:

Type of performance criteria	Description of performance criteria and target-setting method	Weight of performance criteria
Target for organic sales growth	Target: 3-year arithmetic mean of the upper and lower bounds of the annual target ranges concerned. Comparison between the target and the average achievement over three years.	1/4
Target for adjusted operating margin before acquisitions(1)	Target: 3-year arithmetic mean of the upper and lower bounds of the annual target ranges concerned. Comparison between the target and the average achievement over three years.	1/4
Annual rates of achievement of the Group's CSR roadmap	Target: arithmetic mean over 3 years of the annual CSR roadmap achievement rates.	1/4
Legrand's share price performance relative to the performance of the CAC 40 index	Performance gap between Legrand's share price and the CAC 40 index over a 3-year period.	1/4

(1) The adjusted operating margin before acquisitions corresponds to the adjusted operating profit (see key figures)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Performance criteria applicable to beneficiaries other than the Executive Officer and members of the Executive Committee

The performance criteria applicable to beneficiaries other than the Executive Officer and members of the Executive Committee are defined as follows:

Type of performance criteria	Description of performance criteria and target-setting method	Weight of performance criteria
Target for organic sales growth	The target to be reached for this criterion, set annually corresponds to the lower and upper ranges of the relevant annual target. The annual rate of achievement is measured in relation to the annual target. The final pay-out rate for this criterion corresponds to the arithmetic average over a three-year period of the annual rates of achievement.	1/3
Target for adjusted operating margin before acquisitions(1)	The target to be reached for this criterion, set annually corresponds to the lower and upper ranges of the relevant annual target. The annual rate of achievement is measured in relation to the annual target. The final pay-out rate for this criterion corresponds to the arithmetic average over a three-year period of the annual rates of achievement.	1/3
Annual rates of achievement of the Group's CSR roadmap	The annual rate of achievement corresponds to the rate of achievement of the CSR annual roadmap. The final pay-out rate for this criterion corresponds to the arithmetic average over a three-year period of the annual rates of attainment.	1/3

(1) The adjusted operating margin before acquisitions corresponds to the adjusted operating profit (see key figures).

The final pay-out rate for each criterion corresponds to the arithmetic average over a three-year period of the annual achievement rates.

application of the performance criteria (i.e., 1,818,926 shares) and if those shares were transferred following capital increases, the Company's capital would be diluted by 0.7% as of June 30, 2021.

If all the performance shares from the 2018 to 2021 plans were to vest according to the target allocation before

4.2.2 Share-based payments (IFRS 2 expense)

In accordance with IFRS 2, an expense of €15.2 million was recorded in first-half 2021 (€9.4 million in first-half 2020) for all of these plans combined.

4.3 RETAINED EARNINGS AND TRANSLATION RESERVES

4.3.1 Retained earnings

The Group's consolidated retained earnings as of June 30, 2021 amounted to €4,825.8 million.

As of the same date, the Company had retained earnings including profit for the period of €1,035.2 million available for distribution.

Assets and liabilities of Group entities whose functional currency is different from the presentation currency are translated using the exchange rate at the balance sheet date. Statements of income are translated using the average exchange rate for the period. Gains or losses arising from the translation of the financial statements of foreign subsidiaries are recognized directly in equity under "Translation reserves", until the potential Group's loss of control over the entity.

Translation reserves record the impact of fluctuations in the following currencies:

(in € millions)	June 30, 2021	December 31, 2020
US dollar	(199.4)	(320.2)
Other currencies	(606.4)	(642.1)
TOTAL	(805.8)	(962.3)

4.3.2 Translation reserves

The Group operates in close to 90 countries. It is mainly exposed to a dozen currencies other than the euro and the US dollar, including the Australian dollar, Brazilian real, British pound, Chilean peso, Chinese yuan, Indian rupee, Mexican peso, Russian ruble and Turkish lira.

Under IFRS 9, non-derivative financial instruments may be designated as hedges only when they are used to hedge foreign currency risk and provided that they qualify for hedge accounting.

Accordingly, in the case of hedges of a net investment in a foreign operation, the portion of the gain or loss on the hedging instrument that is deemed to be an effective hedge is recognized in equity.

Consequently, unrealized foreign exchange gains and losses on US dollar-denominated 8.5% Debentures (Yankee bonds) are recognized in translation reserves. Losses on these bonds recognized in translation reserves in first-half 2021 amounted to €10.3 million, resulting in a negative balance of €49.5 million as of June 30, 2021.

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

Finally, in accordance with IAS 21, translation gains and losses on receivables or payables considered as part of a net investment in a foreign Group entity are recognized in translation reserves. Gains recognized in translation reserves in first-half 2021 amounted to €0.9 million, resulting in a positive balance of €7.5 million as of June 30, 2021.

4.4 PROVISIONS

Changes in provisions in first-half 2021 can be analyzed as follows:

	June 30, 2021
(in € millions)	Product warranties	Claims and litigation	Tax and employee risks	Restructuring	Other	Total
At the beginning of the period	52.0	127.4	40.8	36.6	71.3	328.1
Changes in scope of consolidation	(0.1)	0.2	(1.5)	0.0	1.9	0.5
Increases	9.9	21.8	4.1	9.9	21.7	67.4
Utilizations	(5.2)	(10.9)	(0.2)	(9.3)	(13.8)	(39.4)
Reversals of surplus provisions	(6.6)	(5.5)	0.0	(0.1)	(1.8)	(14.0)
Reclassifications	(0.1)	(0.2)	0.0	0.0	0.0	(0.3)
Translation adjustments	0.4	0.9	1.0	0.5	1.6	4.4
AT THE END OF THE PERIOD	50.3	133.7	44.2	37.6	80.9	346.7
Of which non-current portion	31.0	88.9	17.0	4.1	64.8	205.8

Changes in provisions in 2020 were as follows:

	December 31, 2020
(in € millions)	Product warranties	Claims and litigation	Tax and employee risks	Restructuring	Other	Total
At the beginning of the period	53.5	77.3	38.3	23.7	58.0	250.8
Changes in scope of consolidation	1.5	0.3	1.5	0.2	0.7	4.2
Increases	12.6	55.4	12.7	40.8	30.8	152.3
Utilizations	(8.0)	(7.3)	(4.8)	(25.4)	(12.4)	(57.9)
Reversals of surplus provisions	(5.9)	(12.5)	(2.0)	(1.7)	(3.6)	(25.7)
Reclassifications	(0.1)	17.0	0.0	0.3	2.2	19.4
Translation adjustments	(1.6)	(2.8)	(4.9)	(1.3)	(4.4)	(15.0)
AT THE END OF THE PERIOD	52.0	127.4	40.8	36.6	71.3	328.1
Of which non-current portion	33.3	85.1	16.6	1.5	63.7	200.2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.5 PROVISION FOR POST-EMPLOYMENT BENEFITS AND OTHER LONG-TERM EMPLOYEE BENEFITS

4.5.1 Pension and other post-employment benefit obligations

Group companies operate various pension plans. The plans are funded through payments to insurance companies or trustee-administered funds, determined by periodic actuarial calculations. The Group has both defined contribution and defined benefit plans.

A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Contributions are recognized as an expense for the period of payment. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in current and prior periods.

A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and end-of-career salary.

The liability recognized in the balance sheet for defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date, less the fair value of plan assets. The past service cost arising from changes to pension benefit plans is expensed in full as incurred.

In accordance with IAS 19, the Group recognizes all actuarial gains and losses outside profit or loss, in the consolidated statement of comprehensive income.

Defined benefit obligations are calculated using the projected unit credit method. This method takes into account estimated years of service at retirement, final salaries, life expectancy and staff turnover, based on actuarial assumptions. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of investment grade corporate bonds that are denominated in the currency in which the benefits will be paid and have terms to maturity approximating the period to payment of the related pension liability.

Some Group companies provide post-employment healthcare benefits to their retirees. Entitlement to these benefits is usually conditional on the employee remaining with one of these Group companies up to retirement age and completion of a minimum service period. These benefits are treated as post-employment benefits under the defined benefit scheme.

Pension and other post-employment defined benefit obligations can be analyzed as follows:

(in € millions)	June 30, 2021	December 31, 2020
France (Note 4.5.1.2)	93.8	100.4
Italy (Note 4.5.1.3)	33.5	34.5
United Kingdom (Note 4.5.1.4)	125.4	125.9
United States (Note 4.5.1.5)	73.6	76.4
Other countries	51.4	49.6
TOTAL PENSION AND OTHER POST-EMPLOYMENT DEFINED BENEFIT
OBLIGATIONS	377.7	386.8

The total amount of those defined benefit obligations is €377.7 million as of June 30, 2021 (€386.8 million as of December 31, 2020), and is analyzed in Note 4.5.1.1.

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 defined benefit plans, consisting primarily of plans in France, Italy, the United States and United Kingdom, is as follows:

(in € millions)	June 30, 2021	December 31, 2020
Defined benefit obligation
Projected benefit obligation at the beginning of the period	386.8	391.6
Service cost	4.5	8.8
Interest cost	2.7	7.1
Benefits paid or unused	(10.9)	(24.9)
Employee contributions	0.2	0.6
Actuarial losses/(gains)	(15.5)	16.5
Curtailments, settlements, special termination benefits	0.0	(0.3)
Translation adjustments	8.3	(16.9)
Other	1.6	4.3
PROJECTED BENEFIT OBLIGATION AT THE END OF THE PERIOD	377.7	386.8
Fair value of plan assets
Fair value of plan assets at the beginning of the period	207.8	206.8
Expected return on plan assets	1.9	4.8
Employer contributions	4.1	8.8
Employee contributions	0.4	1.3
Benefits paid	(5.8)	(14.8)
Actuarial (losses)/gains	(0.3)	12.0
Translation adjustments	7.4	(13.9)
Other	0.0	2.8
FAIR VALUE OF PLAN ASSETS AT END OF PERIOD	215.5	207.8
PROVISION RECOGNIZED IN THE BALANCE SHEET	175.4	187.6
Current liability	4.1	5.8
Non-current liability	171.3	181.8
Non-current asset	13.2	8.6

Actuarial losses recognized in equity in first-half 2021 amounted to €15.2 million.

These €15.2 million actuarial gains resulted from:

€ 17,2 million in gains from changes in financial assumptions;
€ 0,1 million in losses from changes in demographic assumptions; and
€ 1,9 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:

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

Euro zone: iBoxx € Corporates AA 10+;
United Kingdom: iBoxx £ Corporates AA 15+;
United States: Citigroup Pension Liability Index.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The impact of service costs and interest costs on profit before tax for the period is as follows:

	6 months ended
(in € millions)	June 30, 2021	June 30, 2020
Service cost	(4.5)	(4.3)
Net interest cost*	(0.8)	(1.1)
TOTAL	(5.3)	(5.4)

* The expected return on assets and interest costs are presented as a net amount in financial expenses.

The weighted average allocation of pension plan assets is as follows as of June 30, 2021:

(as a percentage)	United Kingdom	United States
Equity instruments	50.7	41.3
Debt instruments	38.0	58.2
Insurance funds	11.3	0.5
TOTAL	100.0	100.0

These assets are marked to market.

4.5.1.2 Provisions for retirement benefits and supplementary pension benefits in France

The provisions recorded in the consolidated balance sheet concern the unvested entitlements of active employees. The Group has no obligation with respect to the vested entitlements of former employees, as the benefits were settled at the time of their retirement, either directly or through payments to insurance companies in full discharge of the liability.

The main defined benefit plan applicable in France concerns statutory length-of-service awards, under which all retiring employees are eligible for a lump-sum payment calculated according to their length of service. This payment is defined either in the collective bargaining agreement to which their company is a party or in a separate company-level agreement, whichever is more advantageous to the employee. The amount generally varies depending on the employee category (manager/non-manager).

In France, provisions recorded in the consolidated balance sheet amounted to €93.8 million as of June 30, 2021 (€100.4 million as of December 31, 2020) corresponding to the difference between the projected benefit obligation of €93.8 million as of June 30, 2021 (€100.4 million as of December 31, 2020), and the fair value of the related plan assets of €0.0 million as of June 30, 2021 (€0.0 million as of December 31, 2020).

The projected benefit obligation is calculated based on staff turnover and mortality assumptions, estimated rates of salary increases and an estimated discount rate. In France, the calculation in 2021 was based on a salary increase rate of 2.8% and a discount rate of 1.1% (respectively 2.8% and 0.6% in 2020).

4.5.1.3 Provisions for termination benefits in Italy

In Italy, a termination benefit is awarded to employees regardless of the reason for their departure.

Since January 1, 2007, such benefits have been paid either into an independently managed pension fund or to the Italian social security service (INPS). As from that date, the Italian termination benefit plans have been qualified as defined contribution plans under IFRS. Termination benefit obligations arising prior to January 1, 2007 continue to be accounted for under IFRS as defined benefit plans, based on revised actuarial estimates that exclude the effect of future salary increases.

The resulting provisions for termination benefits, which correspond to the obligation as of December 31, 2006 plus the ensuing actuarial revisions, amounted to €33.5 million as of June 30, 2021 (€34.5 million as of December 31, 2020).

The calculation for first-half 2021 was based on a discount rate of 0.3% (0.0% in 2020).

4.5.1.4 Provisions for retirement benefits and other post-employment benefits in the United Kingdom.

The UK plan is a trustee-administered plan governed by article 153 of the 2004 Finance Act, and is managed in a legal entity outside of the Group.

Benefits are paid directly out of funds consisting of contributions paid by the company and by plan participants.

The plan has been closed to new entrants since May 2004.

Active plan participants account for 1.5% of the projected benefit obligation, participants who are no longer accumulating benefit entitlements for 37.6% and retired participants for 60.9%.

The provisions recorded in the consolidated balance sheet amounted to €24.1 million as of June 30, 2021 (€29.4 million as of December 31, 2020) corresponding to the difference between the projected benefit obligation of €125.4 million as of June 30, 2021 (€125.9 million as of December 31, 2020) and the fair value of the related plan assets of €101.3 million as of June 30, 2021 (€96.5 million as of December 31, 2020).

The projected benefit obligation is calculated based on staff turnover and mortality assumptions, estimated rates of salary increases and an estimated discount rate. The calculation in 2021 was based on a salary increase rate of 4.5% and a discount rate and an expected return on plan assets of 1.8% (respectively 4.2% and 1.4% in 2020).

4.5.1.5 Provisions for retirement benefits and other post-employment benefits in the United States

In the United States, the Group provides pension benefits for employees and health care and life insurance for certain retired employees.

The Legrand North America Retirement Plan is covered by a plan document in force since January 2002 that was last amended in January 2008. The minimum funding requirement is determined based on Section 430 of the Internal Revenue Code.

To meet its obligations under the plan, the Group has set up a trust with Prudential Financial, Inc. The trust assets include several different investment funds. The current trustee is Legrand North America. The Wiremold Company is the Plan Administrator and the Custodian is Prudential Financial, Inc.

The plan has been closed to new entrants since August 2006 for salaried employees and since April 2009 for hourly employees. Since January 1, 2018, active plan participants can no longer cumulate new rights.

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

Active plan participants account for 10.1% of the projected benefit obligation, other participants who are no longer accumulating benefit entitlements for 19.8% and retired participants for 70.1%.

The funding policy consists of ensuring that the legal minimum funding requirement is met at all times.

The provisions recorded in the consolidated balance sheet amounted to €0.0 million as of June 30, 2021 (€0.0 million as of December 31, 2020) reflecting the fact that the fair value of the plan assets is higher than the value of the projected benefit obligation.

The calculation in first-half 2021 was based on a discount rate and an expected return on plan assets of 2.7% (2.2% in 2020).

4.5.2 Other long-term employee benefits

The Group implemented cash-settled long-term employee benefit plans for employees deemed to be key for the Group, subject to the grantees' continued presence within the Group after a vesting period of three years.

In addition to the grantee still being present within the Group, these plans can, in certain cases, depend on the Group's achievement of future economic performance conditions.

Due to their gradual replacement by equity-settled long-term employee benefit plans detailed in Note 4.2.1, these plans no longer represent material amounts in the Group's financial statements.

4.6 LONG-TERM AND SHORT-TERM BORROWINGS

The Group actively manages its debt through diversified sources of financing available to support its medium-term business growth while guaranteeing a robust financial position over the long term.

Negotiable commercial paper

Legrand France has a short-term marketable securities program (NEU CP) whose package was increased from €700.0 million to €1,200.0 million on March 25, 2020.

A medium-term marketable securities program (NEU MTN) was opened on March 18, 2021 with a package of €1,200.0 million.

Bonds

In April 2012, the Group carried out a €400.0 million 3.375% ten-year bond issue. The bonds will be redeemable at maturity on April 19, 2022.

In December 2015, the Group carried out a €300.0 million 1.875% twelve-year bond issue. The bonds will be redeemable at maturity on December 16, 2027.

In July 2017, the Group carried out a bond issue for a total of €1.0 billion, in two tranches of €500.0 million each, with maturities of seven and fifteen years. The respective maturity dates of these two tranches are July 6, 2024 and July 6, 2032 and their annual coupons are respectively 0.750% and 1.875%.

In October 2017, the Group carried out a €400.0 million 0.5% six-year bond issue. The bonds will be redeemable at maturity on October 9, 2023.

In March 2018, the Group carried out a €400.0 million 1.0% eight-year bond issue. The bonds will be redeemable at maturity on March 6, 2026.

In June 2019, the Group carried out a €400.0 million 0.625% nine-year bond issue. The bonds will be redeemable at maturity on June 24, 2028.

In May 2020, the Group carried out a €600.0 million 0.75% ten-year bond issue. The bonds will be redeemable at maturity on May 20, 2030.

Yankee bonds

On February 14, 1995, Legrand France issued \$400.0 million worth of 8.5% debentures due February 15, 2025, through a public placement in the United States. Interest on Yankee bonds is payable semi-annually on February 15 and August 15 of each year, beginning August 15, 1995.

A number of Yankee bondholders offered to sell their securities to the Group. Acting on this offer, the Group decided to acquire Yankee bonds:

in December 2013, with an aggregate face value of \$6.5 million,
in December 2020, with an aggregate face value of \$18.6 million, and
In May 2021, with an aggregate face value of \$3.6 million.

The acquired debentures were subsequently cancelled.

2011 Credit Facility

In October 2011, the Group signed a Credit Facility with six banks to set up a €900.0 million revolving multicurrency credit line for a five-year period with two successive oneyear period renewal options. As per this contract, the margin

Long-term borrowings can be analyzed as follows:

applied to market rates is determined on the basis of the Group's credit rating.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In July 2014, the Group signed an agreement that amends and extends this Credit Facility with all banks party to this contract. This agreement extends the maximum maturity of the €900.0 million revolving credit line by three years, i.e., up to July 2021, including two successive one-year period extension options, and at improved financing terms compared with October 2011.

In December 2019, the Group signed a new agreement that amends and extends this Credit Facility with all banks party to this contract. Following this agreement:

the maximum maturity of the €900.0 million revolving credit line is extended by five and half years, i.e., up to December 2026, including two successive one-year period renewal options, and at improved financing terms compared with July 2014, and
the margin applied to market rates is still determined on the basis of the Group's credit rating, but it will be increased or decreased each year according to the Group yearly achievement rate on its CSR roadmap.

The 2011 Credit Facility does not contain any covenants.

As the bank have agreed to the first one-year extension, the Credit Facility will expire not before December 2025.

As of June 30, 2021, the Credit Facility had not been drawn down.

4.6.1 Long-term borrowings

Long-term borrowings are initially recognized at fair value, taking into account any transaction costs directly attributable to the issue, and are subsequently measured at amortized cost, using the effective interest method.

(in € millions)	June 30, 2021	December 31, 2020
Negotiable commercial paper	220.0	0.0
Bonds	3,100.0	3,500.0
Yankee bonds	310.2	302.7
Lease financial liabilities	219.3	219.3
Other borrowings	37.8	71.7
Long-term borrowings excluding debt issuance costs	3,887.3	4,093.7
Debt issuance costs	(18.1)	(19.9)
TOTAL	3,869.2	4,073.8

No guarantees have been given with respect to these borrowings.

............. . ............. . ............. . CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2021

Long-term borrowings (excluding debt issuance costs) as of June 30, 2021 can be analyzed by maturity as follows:

(in € millions)	Negotiable commercial paper	Bonds	Yankee bonds	Lease financial liabilities	Other borrowings
Due in one to two years	155.0	0.0	0.0	47.1	10.7
Due in two to three years	65.0	400.0	0.0	37.7	11.2
Due in three to four years	0.0	500.0	310.2	30.3	9.0
Due in four to five years	0.0	400.0	0.0	24.4	6.9
Due beyond five years	0.0	1,800.0	0.0	79.8	0.0
LONG-TERM BORROWINGS EXCLUDING DEBT ISSUANCE COSTS	220.0	3,100.0	310.2	219.3	37.8

........... .. . ............. .

............. .

Long-term borrowings (excluding debt issuance costs) as of December 31, 2020 can be analyzed by maturity as follows:

(in € millions)	Bonds	Yankee bonds	Lease financial liabilities	Other borrowings
Due in one to two years	400.0	0.0	45.6	42.6
Due in two to three years	400.0	0.0	38.3	10.1
Due in three to four years	500.0	0.0	29.8	10.5
Due in four to five years	0.0	302.7	24.8	8.5
Due beyond five years	2,200.0	0.0	80.8	0.0
LONG-TERM BORROWINGS EXCLUDING DEBT ISSUANCE COSTS	3,500.0	302.7	219.3	71.7

Average interest rates on borrowings are as follows:

	6 months and 12 months ended
	June 30, 2021	December 31, 2020
Negotiable commercial paper	(0.17%)	N/A
Bonds	1.38%	1.43%
Yankee bonds	8.50%	8.50%
Lease financial liabilities	2.50%	2.59%
Other borrowings	2.92%	2.74%

4.6.2 Short-term borrowings

Short-term borrowings can be analyzed as follows:

(in € millions)	June 30, 2021	December 31, 2020
Negotiable commercial paper	1,099.5	1,200.0
Bonds	400.0	0.0
Lease financial liabilities	60.9	59.0
Other borrowings	81.5	61.7
TOTAL	1,641.9	1,320.7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.6.3 Changes in long-term and short-term borrowings

		Cash		Variations not impacting cash flows
(in € millions)	June 30, 2021			flows Acquisitions Reclassifications	Translation adjustments	Other	December 31, 2020
Long-term borrowings	3,869.2	224.0	1.4	(473.9)	14.5	29.4	4,073.8
Short-term borrowings	1,641.9	(150.4)	6.0	473.9	1.9	(10.2)	1,320.7
Gross financial debt	5,511.1	73.6	7.4	0.0	16.4	19.2	5,394.5

Changes in long-term and short-term borrowings can be analyzed as follows:

4.7 DEFERRED TAXES

In accordance with IAS 12, deferred taxes are recognized for temporary differences between the tax bases of assets and liabilities and their carrying amount in the consolidated balance sheet.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled.

Deferred tax assets and deferred tax liabilities are offset when the entity has a legally enforceable right of offset and they relate to income taxes levied by the same taxation authority.

Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. The recognized deferred tax assets are expected to be utilized no later than five years from the period-end.

The timing of expected reversal of deferred taxes can be analyzed as follows:

(in € millions)	June 30, 2021	December 31, 2020
Deferred tax assets (liabilities) reversing in the short term	106.7	92.8
Deferred tax assets (liabilities) reversing in the long term	(829.6)	(771.6)
TOTAL	(722.9)	(678.8)

Tax losses carried forward break down as follows:

(in € millions)	June 30, 2021	December 31, 2020
Recognized operating losses carried forward	15.8	25.1
Recognized deferred tax assets	4.0	6.6
Unrecognized operating losses carried forward	112.2	107.7
Unrecognized deferred tax assets	24.2	23.7
Total net operating losses carried forward	128.0	132.8

4.8 OTHER CURRENT LIABILITIES

Other current liabilities can be analyzed as follows:

(in € millions)	June 30, 2021	December 31, 2020
Taxes other than income tax	106.3	71.0
Accrued employee benefits expense	302.8	311.0
Statutory and discretionary profit-sharing reserve	18.2	27.0
Payables related to fixed asset purchases	17.2	27.7
Accrued expenses	154.5	128.3
Accrued interest	32.8	35.9
Deferred revenue	33.6	28.9
Other current liabilities	30.3	32.0
TOTAL	695.7	661.8

NOTE 5 - OTHER INFORMATION

5.1 FINANCIAL INSTRUMENTS AND MANAGEMENT OF FINANCIAL RISKS

5.1.1 Financial instruments

5.1.1.1 Impact of financial instruments

	6 months ended
	June 30, 2021			June 30, 2020
		Impact on equity
(in € millions)	Impact on financial profit (loss)	Fair value	Translation adjustment	Impact on financial profit (loss)	Impact on equity
Other investments		0.0			0.0
Trade receivables	(0.7)			(0.6)
Cash and cash equivalents	2.4		12.9	3.0	(8.7)
Trade payables	0.0			0.0
Borrowings	(37.0)		(10.3)	(38.8)	(0.9)
Derivatives	8.9	(0.1)	(5.5)	(17.1)	7.5
TOTAL	(26.4)	(0.1)	(2.9)	(53.5)	(2.1)

In accordance with IFRS 9, other investments are valued at fair value through equity. Therefore, changes in the fair value of other investments only impact the consolidated balance sheet and the consolidated statement of comprehensive income.

Yankee bonds denominated in US dollars and the derivative financial instrument denominated in British pounds are treated as net investment hedges (see Note 4.3.2).

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

		June 30, 2021				December 31, 2020
	Carrying	Amortized	Fair		Levels of valuation
(in € millions)	amount	cost	value				Level 1 (1) Level 2 (2) Level 3 (3) Carrying amount
ASSETS
Non-current assets
Other investments	1.3		1.3			1.3	1.5
Other non-current assets	53.4	40.2	13.2		53.4		49.4
TOTAL NON-CURRENT ASSETS	54.7	40.2	14.5	0.0	53.4	1.3	50.9
Current assets
Trade receivables	789.2	789.2			789.2		644.5
Other current financial assets	1.6		1.6		1.6		1.5
Cash and cash equivalents	2,965.8		2,965.8		2,965.8		2,791.7
TOTAL CURRENT ASSETS	3,756.6	789.2	2,967.4	0.0	3,756.6	0.0	3,437.7
EQUITY AND LIABILITIES
Non-current liabilities
Long-term borrowings	3,869.2	218.2	3,709.9	3,709.9	218.2	0.0	4,073.8
TOTAL NON-CURRENT LIABILITIES	3,869.2	218.2	3,709.9	3,709.9	218.2	0.0	4,073.8
Current liabilities
Short-term borrowings	1,641.9	1,241.9	411.9	411.9	1,241.9	0.0	1,320.7
Trade payables	763.8	763.8			763.8		612.9
Other current financial liabilities	0.3		0.3		0.3		1.1
TOTAL CURRENT LIABILITIES	2,406.0	2,005.7	412.2	411.9	2,006.0	0.0	1,934.7

5.1.1.2 Breakdown of balance sheet items by type of financial instrument

(1) Level 1: quoted prices on an active market.

(2) Level 2: calculations made from directly observable market data.

(3) Level 3: calculations made from non-observable market data.

In accordance with IFRS 13, fair value measurement takes counterparty default risk into account.

In light of the Group's credit rating, the measurement of other current financial liabilities is subject to insignificant credit risk.

5.1.2 Management of financial risks

The Group's cash management strategy is based on overall financial risk management principles and involves taking specific measures to manage the risks associated with interest rates, exchange rates, commodity prices and the investment of available cash. The Group does not conduct any trading in financial instruments, in line with its policy of not carrying out any speculative transactions. All transactions involving derivative financial instruments are

conducted with the sole purpose of managing interest rate, exchange rate and commodity risks and as such are limited in duration and value.

This strategy is centralized at Group level. Its implementation is deployed by the Financing and Treasury Department which recommends appropriate measures and implements them after they have been validated by the Corporate Finance Department and Group management. A detailed reporting system has been set up to enable permanent close tracking of the Group's positions and effective oversight of the management of the financial risks.

This strategy is described in Note 5.1.2 to the consolidated financial statements for the year ended December 31, 2020.

5.2 OFF-BALANCE SHEET COMMITMENTS AND CONTINGENT LIABILITIES

5.2.1 Specific transactions

Specific commitments and their expiry dates are discussed in the following notes:

Note 3.4: Right-of-use assets; and
Note 4.5.1: Pension and other post-employment benefit obligations.

5.2.2 Routine transactions

5.2.2.1 Financial guarantees

(in € millions)	June 30, 2021	December 31, 2020
Guarantees given to banks	122.7	119.0
Guarantees given to other organizations	39.8	42.5
TOTAL	162.5	161.5

Most of these guarantees are given by the Company to banks for Group subsidiaries located outside of France.

5.2.2.2 Lease contracts outside IFRS 16 scope

As of June 30, 2021, the Group holds short-term or low value lease contracts which are outside IFRS 16 scope.

These lease contracts relate mostly to low value assets. The resulting future minimum rental commitments are not material as of June 30, 2021.

5.2.2.3 Commitments to purchase property, plant and equipment

Commitments to purchase property, plant and equipment amounted to €21.8 million as of June 30, 2021.

5.3 SUBSEQUENT EVENTS

Following three acquisitions announced in early 2021¹ (Champion One, Compose and Borri), Legrand is continuing its strategy of targeted external growth with two new acquisitions announced today:

Ensto Building Systems² , the Finnish leader in low-voltage solutions, offers a comprehensive range of electrical and digital infrastructure products – from enclosures and boxes to user interfaces, heating controls, lighting, cable trays, charging stations for electric vehicles and more. This acquisition significantly strengthens Legrand's presence in Northern Europe, specifically Scandinavia, and rounds out the Group's existing strong positions in Southern and Eastern Europe. Based in Porvoo (Finland),

5.2.3 Contingent liabilities

The Group is involved in a number of claims and legal proceedings arising in the normal course of business. In the opinion of management, all such matters have been adequately provided for, being specified that no provision is recorded for claims and legal proceedings for which the Group considers that the provision recognition criteria under IFRS are not met.

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

On September 6, 2018, Legrand was raided, while fully cooperating with the relevant authorities.

Ensto Building Systems has some 500 employees and annual revenues of around €120 million; and

Ecotap, a front-running Dutch specialist in alternating and direct-current electric vehicle chargers for homes, businesses and public charging points. Based in Boxtel (Netherlands), Ecotap has a workforce of around 60 and expects to report 2021 revenues of around €40 million, generated primarily in the Netherlands and in Germany.

These two new acquisitions strengthen Group positions both in core businesses and in segments driven by the rise in green mobility and the fight against climate change.

¹ For more information, readers are referred to the press release dated February 11, 2021.

² Subject to standard conditions precedent.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.4 KEY FIGURES RECONCILIATION

Reconciliation of adjusted operating profit with profit for the period:

		6 months ended
(in € millions)	June 30, 2021	June 30, 2020
Profit for the period	481.2	285.8
Share of profits (losses) of equity-accounted entities	0.0	0.9
Income tax expense	191.7	114.3
Exchange (gains) / losses	0.9	6.5
Financial income	(3.3)	(3.6)
Financial expense	45.7	45.9
Operating profit	716.2	449.8
Amortization & depreciation of revaluation of assets at the time of acquisitions and other P&L impacts relating to acquisitions	45.2	47.1
Impairment of goodwill	0.0	0.0
Adjusted operating profit	761.4	496.9

Reconciliation of cash flow from operations, free cash flow and normalized free cash flow with profit for the period:

		6 months ended
(in € millions)	June 30, 2021	June 30, 2020
Profit for the period	481.2	285.8
Adjustments for non-cash movements in assets and liabilities:
Depreciation, amortization and impairment	152.3	159.1
Changes in other non-current assets and liabilities and long-term deferred taxes	64.3	34.0
Unrealized exchange (gains)/losses	3.6	(15.7)
(Gains)/losses on sales of assets, net	(3.4)	(15.9)
Other adjustments	(0.2)	(1.6)
Cash flow from operations	697.8	445.7
Decrease (Increase) in working capital requirement	(76.1)	(161.6)
Net cash provided from operating activities	621.7	284.1
Capital expenditure (including capitalized development costs)	(58.7)	(46.0)
Net proceeds from sales of fixed and financial assets	8.3	20.8
Free cash flow	571.3	258.9
Increase (Decrease) in working capital requirement	76.1	161.6
(Increase) Decrease in normalized working capital requirement	(70.0)	49.2
Normalized free cash flow	577.4	469.7

Calculation of net financial debt:

	6 months ended
(in € millions)	June 30, 2021	June 30, 2020
Short-term borrowings	1,641.9	1,625.6
Long-term borrowings	3,869.2	4,154.7
Cash and cash equivalents	(2,965.8)	(2,671.2)
Net financial debt	2,545.3	3,109.1

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

Calculation of working capital requirement:

(in € millions)	June 30, 2021	June 30, 2020
Trade receivables	789.2	731.1
Inventories	987.6	879.7
Other current assets	230.2	224.9
Income tax receivables	63.6	60.5
Deferred tax assets / (liabilities) reversing in the short term	106.7	90.8
Trade payables	(763.8)	(549.1)
Other current liabilities	(695.7)	(612.9)
Income tax payables	(43.4)	(41.5)
Short-term provisions	(140.9)	(119.7)
Working capital required	533.5	663.8

STATUTORY AUDITORS'REPORT

HALF-YEAR FINANCIAL REPORT AS OF JUNE 30, 2021 LEGRAND 57

LEGRAND SA

STATUTORY AUDITORS' REVIEW REPORT ON THE HALF - YEAR FINANCIAL INFORMATION

(Period from January 1, 2021 to June 30, 2021)

PricewaterhouseCoopers Audit Deloitte et Associés

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

63 rue de Villiers 6, place de la Pyramide

92208 Neuilly-sur-Seine 92908 Paris-la-Défense

STATUTORY AUDITORS' REVIEW REPORT ON THE HALF-YEAR FINANCIAL INFORMATION

(Period from January 1, 2021 to June 30, 2021)

This is a free translation into English of the Statutory Auditors' review report issued in French language and is provided solely for the convenience of English-speaking readers. This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards applicable in France.

To the Shareholders,

LEGRAND SA

BP 523

128, avenue du Maréchal de Lattre de Tassigny

87045 LIMOGES Cedex

In compliance with the engagement entrusted to us by your Annual General Meetings and in accordance with the requirements of article L.451-1-2 III of the French Monetary and Financial Code (Code monétaire et financier), we hereby report to you on:

the review of the accompanying half-year consolidated financial statements of LEGRAND, for the period from January 1, 2021 to June 30, 2021;
the verification of the information contained in the half-year management report.

Due to the global crisis related to the Covid-19 pandemic, the half-yearly consolidated financial statements of this period have been prepared and reviewed under specific conditions. Indeed, this crisis and the exceptional measures taken in the context of the state of sanitary emergency have had numerous consequences for companies, particularly on their operations and their financing, and have led to greater uncertainties on their future prospects. Those measures, such as travel restrictions and remote working, have also had an impact on the companies' internal organization and the performance of our procedures.

These half-yearly consolidated financial statements are the responsibility of the Board of Directors. Our role is to express a conclusion on these financial statements based on our review.

I CONCLUSION ON THE FINANCIAL STATEMENTS

We conducted our review in accordance with professional standards applicable in France.

A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

............. . ............. . ............. . STATUTORY AUDITORS'REPORT

Based on our review, nothing has come to our attention that causes us to believe that the accompanying half-year consolidated financial statements do not give a true and fair view of the assets and liabilities and of the financial position of the Group as at June 30, 2021, and of the results of its operations for the six-month period then ended, in accordance with IFRSs as adopted by the European Union.

II SPECIFIC VERIFICATION

We have also verified the information given in the half-year management report commenting the half-year consolidated financial statements subject to our review.

We have no matters to report as to its fair presentation and consistency with the half-year consolidated financial statements.

Neuilly-sur-Seine and Paris-la Défense, July 29, 2021

The Statutory auditors

PricewaterhouseCoopers Audit Deloitte et Associés

Camille Phelizon Jean-François Viat

.................................... . .................................... . ........... .. . ........... .. . ............. .

............. .

IDENTITY OF PERSONS RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT AND AUDITING THE FINANCIAL STATEMENTS ggg

4.1 - PERSON RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT
4.2 - STATUTORY AUDITORS	63
4.3 - FINANCIAL DISCLOSURE POLICY	64

4.1 - PERSON RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT

NAME AND POSITION OF THE PERSON RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT

Benoît Coquart, Chief Executive Officer of Legrand, a French société anonyme whose registered office is located at 128 avenue du Maréchal de Lattre de Tassigny, 87000 Limoges, France, registered in the Trade and Companies Register of Limoges under number 421 259 615.

DECLARATION OF THE PERSON RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT

I hereby certify that, to the best of my knowledge, the full consolidated financial statements for the first half 2020 have been drawn up in accordance with applicable accounting standards and provide a true and fair image of the assets, financial position and results of the Company and of all its consolidated businesses, and that the management report that appear in Chapter 1 of the half-year financial report fairly presents the material events that occurred in the first six months of the financial year and their impact of the interim accounts, the main related party transactions as well as a description of the principal risks and uncertainties for the remaining six months of the financial year

Benoît Coquart

.................................... . .................................... . ........... .. . ........... .. .

Chief Executive Officer

4.2 - STATUTORY AUDITORS

PRINCIPAL STATUTORY AUDITORS

PricewaterhouseCoopers Audit

Member of the Compagnie régionale des Commissaires aux comptes de Versailles (Versailles Regional Body of Statutory Auditors)

Represented by Camille Phelizon Crystal Park, 63, rue de Villiers 92208 Neuilly-sur-Seine

Appointed Deputy Statutory Auditors by the Shareholders' General Meeting of June 6, 2003, they became Principal Statutory Auditors following the merger between Pricewaterhouse and Coopers & Lybrand Audit, and were reappointed as Principal Statutory Auditors by the Shareholders' General Meeting of May 27, 2010 for a term of six years and by the Shareholders' General Meeting of May 27, 2016. This appointment expires at the end of the Shareholders' General Meeting convened to vote on the financial statements for the year ended December 31, 2021.

Deloitte & Associes

Member of the Compagnie régionale des Commissaires aux comptes de Versailles (Versailles Regional Body of Statutory Auditors)

Représenté par Jean François Viat 6, place de la Pyramide 92908 Paris-la-Défense-Cedex

Appointed Principal Statutory Auditor at the Shareholders' General Meeting of December 21, 2005, and re-appointed Principal Statutory Auditor by the Shareholders' General Meeting of May 26, 2011 for a term of six financial years and by the Shareholders' General Meeting of May 31, 2017. This appointment expires at the end of the Shareholders' General Meeting convened to vote on the financial statements for the year ended December 31, 2022.

DEPUTY STATUTORY AUDITORS

Mr Jean-Christophe Georghiou

Member of the Compagnie régionale des Commissaires aux comptes de Versailles (Versailles Regional Body of Statutory Auditors)

Crystal Park, 63, rue de Villiers 92208 Neuilly-sur-Seine

Appointed Deputy Statutory Auditor at the Shareholders' General Meeting of May 27, 2016 for a term of six years. This appointment expires at the end of the Shareholders' General Meeting convened to vote on the financial statements for the year ended December 31, 2021.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.3 - FINANCIAL DISCLOSURE POLICY

PERSON RESPONSIBLE FOR FINANCIAL DISCLOSURES

Mr Franck Lemery

Chief Financial Officer

Address: 128 avenue du Maréchal de Lattre de Tassigny, 87045 Limoges Cedex

Telephone: +33 (0)5 55 06 87 87

Fax: +33 (0)5 55 06 88 88

DOCUMENTS AVAILABLE TO THE PUBLIC

The legal documents relating to the Company that must be made available to shareholders in accordance with the applicable regulations, as well as the Group's past financial records, may be consulted at the Company's registered office.

INDICATIVE TIMETABLE OF FINANCIAL REPORTING

The financial information to be disclosed to the public by the Company will be available from the Company's website (www.legrand.com).

.................................... . .................................... . ........... .. . ........... .. .

As an indication only, the Company's timetable for the publication of financial information is expected to be as follows:

■ 2021 nine-month results: November 4, 2021

"Quiet period(1)" starts October 5, 2021

■ 2021 annual results: February 10, 2022

"Quiet period(1)" starts January 11, 2022

■ General Meeting of Shareholders: May 25, 2022.

COMPANY HEADQUARTERS

@legrand

128, avenue de Lattre de Tassigny 87045 Limoges Cedex, France +33 (0) 5 55 06 87 87 www.legrandgroup.com

AI Terminal

Legrand

1478_ir_2021-07-30_e98fc028-2d13-4a1e-83f0-3a04a7110cba.pdf

CONTENTS

STATUTORY AUDITORS'REPORT 57 IDENTITY OF PERSONS RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT AND AUDITING THE FINANCIAL STATEMENTS 61 4.1 - Person responsible for the half-year financial report 62 4.2 - Statutory Auditors 63 4.3 - Financial disclosure policy 64 3 4

HALF-YEAR MANAGEMENT REPORT FOR THE SIX MONTHS ENDED JUNE 30, 2021

1.1 - PRELIMINARY DISCLAIMER

1.2 - OVERVIEW

as adopted by the European Union. This review also includes forward-looking statements based on assumptions about the company's future business. Actual results could differ materially from those contained in these forwardlooking statements.

1.3 - RECENT EVENTS

Strong growth in sales and financial results in first half

Consolidated sales

Adjusted operating profit and margin

Net profit attributable to the Group

Cash generation and balance sheet structure

1.4 - COMPARISON OF FIRST-HALF RESULTS FOR 2020 AND 2021

1.4.1 - Net sales

Europe: (42.5% of Group revenue)

North and Central America: (37.7% of Group revenue)

Rest of the world: (19.8% of Group revenue)

1.4.2 - Cost of sales

1.4.3 - Administrative and selling expenses

1.4.4 - Research and development costs

1.4.5 - Other operating income and expenses

1.4.6 - Operating profit

1.4.7 - Adjusted operating profit

1.4.8 - Net financial expenses

1.4.9 - Exchange gains and losses

1.4.10 - Income tax expense

1.4.11 - Net profit attributable to the Group

1.5 - CASH FLOWS AND INDEBTEDNESS

1.5.1 - Cash flows

1.5.1.1 NET CASH FROM OPERATING ACTIVITIES

1.5.1.2 NET CASH FROM INVESTING ACTIVITIES

1.5.1.3 NET CASH FROM FINANCING ACTIVITIES

1.5.2 - Debt

1.6 - RISKS AND UNCERTAINTIES

1.7 - TRENDS AND PROSPECTS

CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2021

2.1 - CONSOLIDATED FINANCIAL STATEMENTS IN ACCORDANCE WITH IFRS AS OF JUNE 30, 202115

2.1 - CONSOLIDATED FINANCIAL STATEMENTS IN ACCORDANCE WITH IFRS AS OF JUNE 30, 2021

2.1.1 - Consolidated statement of income

2.1.2 - Consolidated statement of comprehensive income

2.1.3 - Consolidated balance sheet

ASSETS

EQUITY AND LIABILITIES

2.1.4 - Consolidated statement of cash flows

2.1.5 - Consolidated statement of changes in equity

2.1.6 - Notes to the consolidated financial statements

KEY FIGURES AND SIGNIFICANT EVENTS FOR THE PERIOD

Key figures

NOTE 1 - BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

1.1 GENERAL INFORMATION

1.2 ACCOUNTING POLICIES

Amendment to IAS 19 – Employee benefits

1.2.1.1 New standards, amendments and interpretations with mandatory application from January 1, 2021 that have an impact on the Group's 2021 financial statements

1.2.1.3 New standards, amendments and interpretations adopted by the European Union and not applicable to the Group until future periods

Amendment to IAS 12 – Income Taxes

Amendment to IFRS 16 – Leases

1.2.2 Basis of consolidation

1.2.3 Use of judgments and estimates

1.2.3.1 Impairment of goodwill and intangible assets

1.2.3.2 Accounting for income taxes

1.2.3.3 Other assets and liabilities based on estimates

1.3 SCOPE OF CONSOLIDATION

1.3.1 List of main consolidated companies

1.3.2 Changes in the scope of consolidation

NOTE 2 - HALF-YEAR RESULTS

2.1 SEGMENT INFORMATION

6 months ended June 30, 2021

6 months ended June 30, 2020

2.2 NET SALES

2.3 OPERATING EXPENSES

2.4 INCOME TAX EXPENSE

NOTE 3 - DETAILS ON NON-CURRENT AND CURRENT ASSETS

3.1 INTANGIBLE ASSETS

3.1.1 Trademarks with indefinite and finite useful lives

3.1.2 Patents

3.1.3 Customer relationships

3.1.4 Other intangible assets