SOMFY_ANNUAL_FINANCIAL_REPORT_2017

04 MANAGEMENT BOARD REPORT

SEGMENT REPORTING AT 31 DECEMBER 2017

Europe, Middle East & Africa

Asia & Americas

Intra-regional eliminations

Consolidated

€ thousands

1,246,573

Segment sales

966,137 –58,638 907,498 153,795 192,003 53,076 104,253 258,353 –10

369,895 –30,820 339,075 14,608 -1,480 16,102 11,416 92,588 59,426

–89,458 89,458

–

Intra-segment sales

1,246,573

Segment sales – Contribution to sales Segment current operating result Share of net profit/(loss) from associates

– – – – – – – –

168,403 –1,491 208,106 64,492 196,842 317,779

Cash flow

Net investments in intangible assets and PPE

Goodwill

Net intangible assets and PPE Investments in associates

939

712

227

STOCK MARKET PERFORMANCE

During the 2017 financial year, the Somfy SA share price increased by 6.26%. At 30 December 2016, the last trading day before the close of the previous financial year, the share price was €77.52, compared with €82.37 at 29 December 2017. Based on this last share price and taking account of a gross dividend per share of €1.30, the Somfy SA share yielded 1.6%. The market for the share recorded a monthly trading volume high of 177,415 and low of 62,543 per month, with a monthly average of 99,319 shares, compared with 73,598 shares the previous year.

POST-BALANCE SHEET EVENT

EXERCISE OF THE NEOCONTROL CALL OPTION —

Somfy exercised its call option on 20 January 2018, and purchased the remaining 39% interest in Neocontrol, in which it previously held a 61% interest, and which was recognised via the equity method at an amount of BRL 2.1 million, i.e . around €0.6 million. Somfy has therefore taken control of Neocontrol, in which it now holds 100% of the capital, and will now fully consolidate the company.

OUTLOOK

The environment should remain favourable over the short term within the Group’s various business segments and regions, and thus lead to growth in sales over the course of the current financial year in spite of the high comparison base. Similarly, stabilisation or even a slight improvement in the current operating margin (1) will be a possibility given the gradual decline in the factors responsible for last year’s erosion. The current financial year will also be marked by the continued roll-out of the new strategic plan (Believe & ACT) to allow the Group to strengthen its foundation and fully capitalise on the significant potential represented by the move towards the digitalisation of buildings, the motorisation of interior products and the streamlining of energy consumption. The development of completely open solutions, illustrated by the interoperability agreements recently concluded with the brands Amazon Alexa, Apple Homekit, Google Home, Legrand, Schneider Electric and the IFTTT platform, testifies to the Group’s desire to be a key player in the connected home and a byword for comfort, environmental protection and security in the home.

VALUE OF INTERCOMPANY LOANS GRANTED (ARTICLE L. 511-63-BIS OF THE MONETARY AND FINANCIAL CODE)

Somfy SA had not granted any intercompany loans at 31 December 2017.

Current operating margin corresponds to current operating result as a proportion of sales (COR/Sales). (1)

16

SOMFY – ANNUAL FINANCIAL REPORT 2017