SOMFY - Annual financial report 2018

04 MANAGEMENT BOARD MANAGEMENT REPORT

SEGMENT REPORTING AT 31 DECEMBER 2018

Europe, Middle East & Africa

Asia & Americas 203,866 -27,043 176,823 15,517

Intra-regional eliminations

Conso- lidated

€ thousands

-84,020 1,126,719

Segment sales

1,006,873

–

Intra-segment sales

-56,978 949,896 162,328

84,020

– 1,126,719

Segment sales – Contribution to sales Segment current operating result

177,845

– – – – – – – –

2,630 1,429

Net profit from operations treated in accordance with IFRS 5

–

2,630 1,438 8,176 3,144 2,130 8,485

Share of net profit/(loss) from associates

-9

178,556 57,344 96,225 280,963 132,781

Cash flow

170,380 54,200 94,095 272,477

Net investments in intangible assets and PPE

Goodwill

Net intangible assets and PPE

Investments in associates and joint ventures

703

132,079

STOCK MARKET PERFORMANCE

During the 2018 financial year, the Somfy SA share price decreased by 23.5%. At 29 December 2017, the last trading day before the close of the previous financial year, the share price was €82.37, compared with €63.00 at 31 December 2018. Over the same period the CAC 40 and CAC All-Tradable indices (formerly SBF 250) fell by 11.0% and 12.0% respectively. Based on this last share price and taking account of a gross dividend per share of €1.40, the Somfy SA share yielded 2.2%. The market for the share recorded a monthly trading volume high of 154,633 and low of 44,729 per month, with a monthly average of 93,111 shares, compared with 99,319 shares the previous year.

POST-BALANCE SHEET EVENT

No significant post-balance sheet event has occurred since 31 December 2018.

OUTLOOK

The home motors and automation market remains structurally buoyant as a result of growing consumer demand for comfort and security, and growing public awareness of energy and environmental challenges. A short-term slowdown cannot however be ruled out, on account of economic uncertainties and geopolitical risks throughout the world. The investment effort will be maintained, and even intensified should the context allow it, to enable the Group to consolidate its base and its leadership. It will specifically focus on product innovation, streamlining information systems, with the rollout of an ERP over the course of the year, and digitalising organisations and processes. The policy of developing partnerships with complementary players and the opening up of new ecosystems and protocols (ZigBee network) will also be pursued. This will form part of the commitment to offering “integrated” solutions based on proprietary protocols, while simultaneously continuing to digitalise the historical activities, and will help position the Group as an industry standard for the connected home.

LIST OF EXISTING BRANCHES (ARTICLE L. 232-1 OF THE COMMERCIAL CODE)

Somfy had no such branches at 31 December 2018.

VALUE OF INTERCOMPANY LOANS GRANTED (ARTICLE L. 511-6 3 BIS OF THE MONETARY AND FINANCIAL CODE)

Somfy SA had not granted any intercompany loans at 31 December 2018.

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SOMFY – ANNUAL FINANCIAL REPORT 2018