SOMFY_ANNUAL_FINANCIAL_REPORT_2017

07 CONSOLIDATED FINANCIAL STATEMENTS

GROWTH IN CURRENT OPERATING RESULT — Data in € millions

2016* 177.6 15.7%

2017 2017/16 change

Current operating result

168.4 13.5%

–5.2%

Current operating margin (COR/Sales)

–2.2 pp

* Financial statements restated following the allocation of the goodwill of Myfox.

COR/Sales 15.7%

COR/Sales 14.3%

28.5

COR/Sales 13.5%

63.1

26.5

7.7

4.1

5.4

177.6

178

168.4

2016 COR

Impact Sales

Impact Margin on variable costs

Impact Structure costs

Impact Writedowns and provisions

2017 COR like-for-like 2016

Forex impact

Scope impact

2017 COR

Current operating result stood at €168.4 million over the financial year, down 5.2%, and represented 13.5% of sales. This decline resulted from factors that are both cyclical and structural, namely gaining market share, the rise in the price of raw materials, fluctuations in the main invoicing currencies and the integration of recently-acquired companies (iHome Systems, Myfox). On a like-for-like basis, current operating result would have been virtually stable at €178.0 million, and as such would have represented 14.3% of sales. GROWTH IN NET PROFIT — Consolidated net profit was €157.7 million, an increase of 10.1%. It takes into account a negligible net non-recurring operating expense, a net financial expense of €5.9 million, which mainly includes unrealised exchange differences, and income tax of €3.1 million, a particularly low level due notably to the recovery of the tax on dividends. Excluding tax rebates, net profit would have been €135.4 million, and would have fallen by 5.5%. Ultimately, profitability remained at a very satisfactory level with a return on capital invested (ROCE) of 19.7% (1) . NET FINANCIAL DEBT —

22.3

23.5

64.5

9.6

41.9

2.4

1

185.8

104.6

15.5

2016 Net ĮŶĂŶĐŝĂů surplus*

ĂƐŚ ŇŽǁ (excl. Tax rebates)

Tax rebates

Change in WCR

Net investments ŝŶ ƉƌŽƉĞƌƚLJ͕ ƉůĂŶƚ and equipment and intangible assets

Deferred ĐŽůůĞĐƟŽŶ ŽĨ &ĂĂĐ and Ciat ƉĂLJŵĞŶƚƐ

Dividends WƵƚ ŽƉƟŽŶƐ ĂŶĚ ĂƌŶŽƵƚ

Other

2017 Net ĮŶĂŶĐŝĂů surplus

Ύ &ŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ƌĞƐƚĂƚĞĚ ĨŽůůŽǁŝŶŐ ƚŚĞ ĂůůŽĐĂƟŽŶ ŽĨ ƚŚĞ ŐŽŽĚǁŝůů ŽĨ DLJĨŽdž͘

The balance sheet was further strengthened. The net cash surplus rose indeed from €15.5 million to €104.6 million (2) year-on-year, an increase of €89.1 million, and shareholders’ equity grew to €770.7 million. Return on capital invested or employed (ROCE) is equal to the ratio between current operating result, after normative tax, and the sum of shareholders’ (1) equity (with the effects of goodwill impairment being neutralised) and the net financial debt (see note 4.3). The net cash surplus corresponds to the difference between cash and cash equivalents and financial liabilities. It takes into account both deferrals in (2) payments and earnout on acquisitions as well as liabilities related to put options granted to holders of non-controlling interests (see note 7.2.3).

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SOMFY – ANNUAL FINANCIAL REPORT 2017