SOMFY - Annual financial report 2018

07 CONSOLIDATED FINANCIAL STATEMENTS

31/12/18

31/12/17 Restated for operations treated in accordance with IFRS 5

31/12/17

€ thousands

Gross value Raw materials and other supplies Finished goods and merchandise

57,499 131,253 188,752 -13,749 175,003

53,609 122,023 175,632 -11,280 164,352

65,562 131,127 196,689 -11,982 184,707

Total

Provisions

NET VALUES

Value 31/12/17

Net charges

Exchange rate movement

Changes in consolidation scope and method

Other movements

Value 31/12/18

€ thousands

-13,749

Inventory provisions

-11,982

-2,507

63

668

9

The change in consolidation method mainly concerns Dooya (see Highlights).

TRADE RECEIVABLES NOTE 4.5

Trade receivables are recorded at their nominal value and a provision for writedown is established when receivables are unlikely to be collected.

The Group limits its exposure to credit risk related to trade receivables by implementing internal procedures (creditworthiness study of new customers, permanent monitoring of outstanding amounts, analysis of the economic environment, etc.). Credit insurance contracts, both in France and internationally, also mitigate the consequences of customer default. Approximately 85% of sales are covered by such contracts. In accordance with IFRS 9, expected impairment losses on trade receivables are measured on the basis of an impairment table using impairment rates based on the duration of late payments. The Group’s exposure to credit risk related to trade receivables is therefore mainly influenced by the individual characteristics of each customer. The Group also takes into consideration factors that may influence the assessment of risk, in particular the economic background of certain countries in which customers are located.

31/12/18

31/12/17 Restated for operations treated in accordance with IFRS 5

31/12/17

€ thousands Gross value

153,913 -13,827 140,086

160,860 -13,280 147,580

188,104 -14,623 173,482

Provision

NET VALUE

Value 31/12/17

Charges Reversals used

Reversals unused

Exchange rate movement

Changes in consolidation scope and method

Other movements

Value 31/12/18

€ thousands

-13,827

Provision for bad debts

-14,623

-2,615

1,357

538

328

1,187

–

The change in consolidation method mainly concerns Dooya (see Highlights).

91

SOMFY – ANNUAL FINANCIAL REPORT 2018