SOMFY - Annual financial report 2018

07 CONSOLIDATED FINANCIAL STATEMENTS

PERFORMANCE-RELATED DATA NOTE 4 — SALES NOTE 4.1

The warranties offered to purchasers cover defects in the design or manufacture of products. They do not provide the customer with any service other than the assurance that the product is free from defect and therefore continue to be recognised in accordance with IAS 37 “Provisions, Contingent Liabilities and Contingent Assets”. The amount that Somfy actually receives as consideration for the products delivered, as well as the revenue from sales recorded in the income statement may vary due to deferred discounts agreed by contractual agreements or at the start of commercial campaigns. These discounts will be paid to the customer at the end of the reference period subject to the achievement of the objectives set for the relevant period. Their value is determined using the expected value method. As for projects combining products and services, except as mentioned below, deliveries of goods and services are identified as two separate performance obligations, which must be assessed individually as if they were sold separately. Revenue from products is thus recognised at the date of delivery or dispatch, while revenue from services is recognised when the service is provided. When the products and services relate to a large-scale project whose characteristics are set for each customer individually, they represent a single performance obligation and revenue is recognized on an ongoing basis over the duration of the project as costs are incurred.

The application as of 1 January 2018 of IFRS 15 “Revenue from Contracts with Customers” and related impacts are detailed in note 1.4.1. Revenue recognition is based on an analysis that includes five successive steps: identify the contract; – identify the various performance obligations, i.e. list the – distinct goods or services the seller is committed to supply to the purchaser; determine the total price of the contract; – allocate the total price to each performance obligation; – recognise revenue when a performance obligation is – satisfied. With regard to the sale of products, the Group acts on its own behalf and not as an agent. Product sales usually represent the only obligation of the contracts. Revenue is recognised at the time when control over the goods is transferred to the purchaser, i.e. when the delivery or dispatch is effective.

Note 4.1.1 Sales by customer location

This presentation by customer location was supplemented by our segment reporting pursuant to IFRS 8, which is based on the geographic regions in which our assets are based, namely Europe, Middle East & Africa (EMEA) and Asia & Americas (A&A).

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% 3.7% 9.8%

4.7% 3.7%

Germany

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

The change N/N-1 like-for-like is calculated by applying the N-1 exchange rates to the periods compared and using the N-1 scope for both financial years (see note 4.3.1). As contracts with customers are expected to have an initial term of one year or less, no information is provided regarding any remaining obligations at 31 December 2018, in accordance with the simplification measures of IFRS 15. In addition, the Group measures revenue based on its right to invoice. Other operating income Note 4.1.2

Other operating income totalled €18.0 million in 2018 compared with €18.7 million in 2017. This includes refundable tax credits, other miscellaneous rebillings and insurance income receivable.

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SOMFY – ANNUAL FINANCIAL REPORT 2018