2007 reference document - Legrand

1 RESPONSIBILITY
FOR THE REFERENCE DOCUMENT 3
2
3
4
5
6
7
8
1.1 - Person responsible
for the reference document 4
1.2 - Statutory Auditors 5
1.3 - Financial information 6
GENERAL INFORMATION ON THE GROUP 9
2.1 - Presentation of the Group 10
2.2 - A market resilient to economic cycles
with a steady growth potential 10
2.3 - Legrand: unmatched
competitive strengths 11
2.4 - Strategy 14
2.5 - Summary of selected fi nancial data 14
RISK FACTORS 19
INFORMATION ABOUT THE GROUP 27
4.1 - History and development 28
4.2 - Investments 29
4.3 - Organizational structure 31
THE GROUP’S BUSINESS 35
5.1 - Legrand’s business 36
5.2 - Principal activities 45
SUSTAINABLE DEVELOPMENT 55
6.1 - Sustainable development policy 56
6.2 - 2007 Results and commitments 57
MANAGEMENT REPORT
ON THE CONSOLIDATED FINANCIAL
STATEMENTS FOR THE FINANCIAL
YEAR ENDED DECEMBER 31, 2007 63
7.1 - Preliminary disclaimer 64
7.2 - Overview 64
7.3 - Operating profi ts 65
7.4 - Year-on-year comparisons 70
7.5 - Cash and capital resources 79
7.6 - Capital expenditure 82
7.7 - Off balance sheet commitments 82
7.8 - Contractual obligations 82
7.9 - Variations in exchange rates 83
7.10 - Quantitative and qualitative
disclosures relating to market risk 84
7.11 - Summary of critical accounting policies 86
7.12 - New IFRS pronouncements 86
7.13 - Trends 86
7.14 - Prospects 87
7.15 - Table of consolidated fi nancial results
over the last fi ve years 87
CORPORATE GOVERNANCE
8.1 - Administration and management
89
of the Company 90
8.2 - Remuneration and benefi ts
8.3 - Operation of administrative
97
and management bodies
8.4 - Report of the Chairman of the Board
99
of Directors on internal controls 106
Page Page
9
10
11
12
13
EMPLOYEES 113
9.1 - Number and breakdown
9.2 - Options for subscription to new shares
114
or purchase of existing shares 114
9.3 - Free share allotments
9.4 - Profi t sharing, employee share
ownership/savings plans and company
118
mutual fund 119
SHAREHOLDERS 121
10.1 - Principal shareholders 122
10.2 - Shareholders’ agreement
and specifi c agreements 124
10.3 - Related-party transactions 126
FINANCIAL INFORMATION
CONCERNING THE ASSETS
AND LIABILITIES, FINANCIAL
POSITION AND PROFITS
AND LOSSES OF THE GROUP 127
11.1 - Consolidated fi nancial statements
in accordance with IFRS standards
for the fi nancial years ended
December 31, 2007,
December 31, 2006
and December 31, 2005 128
11.2 - Statutory auditors’ report on the
consolidated fi nancial statements
for the year ended December 31, 2007 176
11.3 - Fees paid to statutory auditors 178
11.4 - Dividend policy 178
11.5 - Legal proceedings and arbitration 179
11.6 - Signifi cant changes in fi nancial
and commercial situation 180
ADDITIONAL INFORMATION 181
12.1 - Share capital 182
12.2 - Articles of incorporation and by-laws 185
MATERIAL AGREEMENTS 191
CONCORDANCE TABLES 193
Concordance table – Annual fi nancial report
(article 222-3 of the general regulations
of the french “Autorité des marchés fi nanciers”) 194
Concordance table – European commission
regulation (EC) no. 809/2004 of April 29, 2004 194
APPENDIX 199
Appendix 1 - Annual accounts for the fi nancial
year ended December 31, 2007
(Company’s accounts) 200
Appendix 2 - Management Report on
Company’s fi nancial statements
for the year ended December 31, 2007 213
Appendix 3 - Report of the Statutory Auditors
on company’s fi nancial statements
for the year ended December 31, 2007 237
Appendix 4 - Text of resolutions for the
Combined General Meeting of shareholders
on 22 May 2008 239
Appendix 5 - Statutory Auditors’ special
report on regulated agreements
and commitments with third parties 242