SOMFY - Annual financial report 2018

07 CONSOLIDATED FINANCIAL STATEMENTS

OTHER OPERATING INCOME AND EXPENSES NOTE 4.2

Current operating result is defined as the difference between: operating result including all revenues and charges, except those generated from finance activities, equity-accounted companies, – discontinued operations, operations held for disposal or income tax; and other operating income and expenses. – Other operating income and expenses relate to factors that are unusual, abnormal, infrequent and particularly significant, which could mislead the understanding of the Group’s consolidated performance. These notably include the capital gains and losses on asset disposals, restructuring costs and provisions of a nature liable to affect the understanding of the current operating result. Current operating result reflects company performance. The amortisation of intangible assets allocated as part of business combinations is included in current operating result.

€ thousands

31/12/18

31/12/17

Charge to/reversal of non-current provisions

-4,116 6,569 9,761 -3,192

-55

Other non-current items Non-current income – Non-current expenses –

-162

235

-398

Net gain/(loss) on disposal of non-current assets OTHER OPERATING INCOME AND EXPENSES

-12

-1

2,440

-218

GOODWILL IMPAIRMENT

-10,143

–

The renegotiation of Somfy Protect by Myfox's earnouts (see Highlights) resulted in the recognition of non-recurring income of €9.7 million (adjustment of financial debt). At the same time, a €9.7 million goodwill impairment was recorded. Neocontrol’s goodwill was also written off in full during the year in the amount of €0.4 million (see Highlights). Other operating income and expenses also include termination costs of €6.5 million for a project in China.

ALTERNATIVE PERFORMANCE MEASURES NOTE 4.3

Change N/N-1 like-for-like Note 4.3.1

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.

At 31/12/18

Sales 5.2% -1.8% -0.1% 3.4%

Current operating result

CHANGE N/N-1 LIKE-FOR-LIKE

8.2% -6.1% -0.4% 1.8%

Forex impact Scope impact

CHANGE N/N-1 IN REAL TERMS

Current operating margin Note 4.3.2

Current operating margin corresponds to current operating result as a proportion of sales (COR/Sales). It is an interesting performance indicator as it reflects operating profitability.

€ thousands

31/12/18

31/12/17

Current operating result

177,845

174,704

Sales

1,126,719

1,089,351

CURRENT OPERATING MARGIN

15.8%

16.0%

89

SOMFY – ANNUAL FINANCIAL REPORT 2018