2017 Annual results

Sales increased by 10.1% over the financial year just ended to €1,246.6 million. They benefitted from a positive scope effect of €11.2 million and suffered from a negative currency impact of €12.8 million.

Growth stood at 10.3% on a like-for-like basis over the financial year, including 8.5% over the first half and 12.3% over the second, and followed an increase of 10.2% over the course of the previous year. It reflects significant growth in all business segments and locations¹.

The most noteworthy performances came from Asia-Pacific, America, France, Eastern and Central Europe, and Northern Europe, all of which recorded double-digit growth.

The trend was less impressive, but nevertheless remained definitively positive within the two other major regions, Southern Europe and Germany.

The strong performance of these figures is testament to the growing interest of consumers in different continents in motorised and connected solutions in the home, and thereby validates the Group’s choices and positioning (international coverage, innovation, digital transformation, etc.).

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.

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%².

The balance sheet was further strengthened.

The net cash surplus rose indeed from €15.5 million to €104.6 million³ year-on-year, an increase of €89.1 million, and shareholders’ equity grew to €770.7 million.

The Management Board will propose the payment of a dividend of €1.3 per share at the Annual General Meeting, an increase of 6.6% compared with the adjusted dividend paid last year⁴.

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 margin⁵ 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.

Somfy Group is the global leader in opening and closing automation for both residential and commercial buildings, and a key player in the connected home.

The annual financial statements have been audited by the Statutory Auditors and were reviewed by the Supervisory Board on 7 March 2018.

The Statutory Auditors’ report and detailed financial statements will be released on 19 April 2018 and will be available on the Company's website (www.somfyfinance.com).

The regions most exposed to current economic, geopolitical and monetary uncertainties are Asia (China), Latin America (Brazil) and the Middle East (Levant). In total, they represent approximately 10% of Group sales.

Sales growth in the UK stood at 10.9% on a like-for-like basis over the financial year just ended, in spite of the uncertain environment related to the prospect of Brexit.

Somfy: Pierre Ribeiro: +33 (0)4 50 40 48 49 - Emilie Mathelin: +33 (0)4 50 96 71 01

Shan: François-Xavier Dupont: +33 (0)1 44 50 58 74 - Diane de Brisis: +33 (0)1 47 03 47 36