LEGRAND_REGISTRATION_DOCUMENT_2017
05
MANAGEMENTREPORTONTHECONSOLIDATEDFINANCIALSTATEMENTSFORTHEFINANCIALYEARENDEDDECEMBER31,2017
Year-on-year comparison: 2017 and 2016
The table below shows the calculation of adjusted operating income (defined as operating income adjusted for amortization of revaluation of intangible assets at the time of acquisitions and for expense/income relating to acquisitions, and, where applicable,
for impairment of goodwill) and maintainable adjusted operating income (i.e., excluding restructuring charges) for the periods under review.
12 months ended
December 31, 2017
December 31, 2016
(in € millions)
Profit for the period
713.2
630.2
Share of profits (losses) of equity-accounted entities
1.5
1.3
Income tax expense
224.2
218.6
Exchange (gains) losses
8.3
(6.5)
Financial income
(13.7)
(10.9)
Financial expenses
92.1
101.3
Operating profit
1,025.6
934.0
Acquisition-related amortization, expenses and income
79.3
44.5
Goodwill impairment
0.0
0.0
Adjusted operating profit
1,104.9
978.5
Restructuring costs
20.5
25.1
Maintainable adjusted operating profit
1,125.4
1,003.6
5.4.1 – Net sales
Consolidated net sales rose by +10.0% to €5,520.8 million in 2017, compared with €5,018.9 million in 2016, reflecting the combined impact of: W a +3.1% organic rise (at constant scope of consolidation and exchange rates) in sales, exceeding the top end of its target range (+3.0%);
W +7.8% due to the broader scope of consolidation that resulted from acquisitions. This relates in particular to the first-time consolidation in 2017 of OCL (USA) for 11 months, AFCO Systems (USA) for 8 months, Finelite (USA) for 7 months, Milestone (USA) for 5 months; and W -1.1% due to exchange rates effects over the period.
R 5.4.1.1 ANALYSIS OF CHANGES IN NET SALES BY DESTINATION FROM 2016 TO 2017 The table below shows a breakdown of changes in net sales to third parties as reported by zone of destination (market where sales are recorded) between 2016 and 2017:
12 months ended December 31
Exchange-rate effect
Change in scope of consolidation
Organic growth (1)
Net sales (in € million, except %)
2017
2016 Total change
France
900.9
871.5
3.4%
0.2%
3.2%
0.0%
Italy
513.5
493.6
4.0%
0.1%
4.0%
0.0%
Rest of Europe
936.7
873.9
7.2%
3.0%
5.5%
(1.4)%
North and Central America
1,820.0
1,467.1
24.1%
24.3%
1.7%
(1.9)%
Rest of the world
1,349.7
1,312.8
2.8%
0.6%
3.1%
(0.9)%
CONSOLIDATED TOTAL
5,520.8
5,018.9
10.0%
7.8%
3.1% (1.1)%
(1) At constant scope of consolidation and exchange rates.
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REGISTRATION DOCUMENT 2017 - LEGRAND
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