SOMFY - Annual financial report 2018

04 MANAGEMENT BOARD MANAGEMENT REPORT

SALES BY CUSTOMER LOCATION

31/12/18

31/12/17

Change N/N-1

Change N/N-1 like-for-like

€ thousands

France

324,493 178,339 120,489 131,548 119,152 67,209 54,834 13,740 93,645 23,270

310,058 172,026 109,739 118,381 114,680 75,295 52,830 15,419 96,895 24,028

4.7

4.7% 3.7%

Germany

3.7% 9.8%

Northern Europe

10.7% 12.3% 4.4% -2.4% 8.5% -8.5% 1.0% 8.6% 5.2%

Central & Eastern Europe

11.1%

Southern Europe

3.9%

Africa & Middle East

-10.7%

Asia-Pacific (excluding China)

3.8%

China

-10.9%

North America

-3.4% -3.2% 3.4%

Central & South America

TOTAL SALES

1,126,719

1,089,351

RESULTS

Restated for the above-mentioned items, net profit stood at €148.1 million, an increase of 9.2%. Ultimately, the return on capital employed held firm at the very healthy level of 20.4%.

The current operating result for the financial year stood at €177.8 million, up 1.8% based on a like-for-like consolidation method, equating to 15.8% of sales in spite of adverse foreign exchange effects costing €10.6 million. It would have totalled €189.1 million, up 8.2% and equating to 16.5% of sales on a like-for-like basis. This 50-basis point increase in the current operating margin on a like-for-like basis was the result of business growth and an improvement in the gross profit margin driven by healthy sales prices, and higher raw materials costs offset by productivity gains. At the same time, overheads increased due to continued investment in research and development and participation in major industry events (the CES trade show in Las Vegas and R+T in Stuttgart). Net profit fell 11.0% to €140.4 million. It takes into account a significant negative balance of non-recurring operating expenses and income, primarily due to costs associated with the termination of a project in China, and an automatic increase in the income tax charge given the tax reliefs of €22.3 million recorded over the previous financial year.

FINANCIAL POSITION

The balance sheet remained very strong, with equity that increased to €894.4 million. The net financial surplus totalled €222.4 million, an increase of €117.8 million, including €42.1 million in respect of the change in Dooya’s consolidation method.

ALTERNATIVE PERFORMANCE MEASURES

Change N/N-1 like-for-like, current operating margin, ROCE and net financial debt are Alternative Performance Measures (APM) whose definitions and detailed calculations are given in note 4.3 to the consolidated financial statements.

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SOMFY – ANNUAL FINANCIAL REPORT 2018