SCH2017_DRF_EN_Livre.indb

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Business review Review of the consolidated financial statements

2.10 Net financial income/loss Net financial loss amounted to EUR367 million for the year ended December 31, 2017, compared to EUR462 million for the year ended December 31, 2016. The decrease in the net financial loss is mainly explained by the losses generated by the foreign exchange decreasing 2.11 Tax The effective tax rate was 21.1% for the year ended December 31, 2017, a decrease compared to 28.6% for the year ended December 31, 2016. The corresponding tax expense decreased from EUR719 million for the year ended December 31, 2016 to EUR600 million for the year ended December 31, 2017. In 2017, the tax reforms in the USA and in Belgium, as well as the additional reform in France, led together to a positive adjustment in the P&L for EUR12 million. This adjustment represents the Group’s best estimate of the impact of those reforms.

by EUR35 million, supplemented by a decrease in the cost of net financial debt from EUR272 million for year ended December 31, 2016 to EUR219 million for the year ended December 31, 2017.

In 2016, the planned reduction of the Corporate Income Tax rate in France from 34.43% to 28.92% following the passing of the Finance Bill 2017 (“Loi de finances 2017”) leads to a negative adjustment of the P&L at the end of 2016 for EUR(119) million.

2.12 Share of profit/(losses) of associates

The share of profit of associates increased from EUR34 million for the year ended December 31, 2016 to EUR61 million for the year ended December 31, 2017 mainly due to an increase in net income attributable to Delixi.

2.13 Non-controlling interests Non-controlling interests in net income for the year ended December 31, 2017 totaled EUR60 million, compared to EUR61 million for the year ended December 31, 2016. This represented the share in net income attributable, in large part, to the non-controlling interests of certain Chinese companies. 2.14 Profit for the period Profit for the period attributable to the equity holders of the parent company amounted to EUR2,150 million for the year ended December 31, 2017, that is, a 22.9% increase over the EUR1,750 million profit for the year ended December 31, 2016, mainly due to the improvement in EBITA described in note 2.9.

2.15 Earnings per share

Earnings per share increased from EUR3.12 for the year ended December 31, 2016 to EUR3.85 for the year ended December 31, 2017.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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