SOMFY_ANNUAL_FINANCIAL_REPORT_2017

07 CONSOLIDATED FINANCIAL STATEMENTS

OTHER OPERATING INCOME AND EXPENSES NOTE 4.2

Current operating result is defined as the difference between: operating result including all revenues and charges, except those generated from finance activities, equity-accounted companies, – discontinued operations, operations held for disposal or income tax; and other operating income and expenses. – Other operating income and expenses relate to factors that are unusual, abnormal, infrequent and particularly significant, which could mislead the understanding of the Group’s consolidated performance. These notably include the capital gains and losses on asset disposals, restructuring costs and provisions of a nature liable to affect the understanding of the current operating result. Current operating result reflects company performance. The amortisation of intangible assets allocated as part of business combinations is included in current operating result.

€ thousands

31/12/17

31/12/16

Charge to/reversal of non-current provisions

–55

–

Other non-current items Non-current income – Non-current expenses –

–162

–214

235

153

–398

–367

Net gain/(loss) on disposal of non-current assets OTHER OPERATING INCOME AND EXPENSES

–1

–3

–218

–218

ALTERNATIVE PERFORMANCE MEASURES NOTE 4.3

Current operating margin, which corresponds to current operating result as a proportion of sales (COR/Sales), is an interesting performance indicator as it reflects operating profitability. ROCE corresponds to the return on capital invested (or employed) after tax, equating to the ratio, expressed as a percentage, between Current Operating Result after tax applied at a normative rate and the capital invested (or employed). Capital invested corresponds to the sum of shareholders’ equity (with the effects of goodwill impairment being neutralised) and the net financial debt.

€ thousands

31/12/17

31/12/16

Current operating result

168,403

177,603

Sales

1,246,573

1,131,739

CURRENT OPERATING MARGIN

13.5%

15.7%

€ thousands

Notes

31/12/17 168,403 17.91% 138,242 770,665 35,097 805,762 –104,640 701,121

31/12/16 177,603 17.85% 145,900 657,771 35,946 693,717 –15,536 678,181

Current operating result Restated effective tax rate

(11.1)

Current operating result after tax effect

Shareholders’ equity

Neutralisation of goodwill impairment

(5.1.2)

Restated shareholders’ equity

Net financial debt

(7.2.3)

Capital invested (capital employed) ROCE (RETURN ON CAPITAL EMPLOYED)

19.7%

21.5%

84

SOMFY – ANNUAL FINANCIAL REPORT 2017