SOMFY - Annual financial report 2018

07 CONSOLIDATED FINANCIAL STATEMENTS

GROWTH IN CURRENT OPERATING RESULT — Data in € millions

2017* 174.7 16.0%

2018

18/17 change

Current operating result

177.8 15.8%

+1.8% –20 bp

Current operating margin (COR/sales)

Financial statements restated following the change in the consolidation method of Dooya (application of IFRS 5). *

4.3

COR/Sales 16.5%

21.0

1.2

COR/Sales 15.8%

32.4

COR/Sales 16.0%

10.6

0.6

189.1

177.8

174.7

2017 COR*

Impact sales

Impact margin on variable costs

Impact structure costs

Impact writedowns and provisions

2018 COR like-for-like 2017

Forex impact

Scope impact

2018 COR

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).

GROWTH IN NET PROFIT —

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. Restated for these 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%.

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SOMFY – ANNUAL FINANCIAL REPORT 2018