SOMFY - Annual financial report 2019

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

31/12/19

31/12/18

Charge to/reversal of non-current provisions

-466

-4,116 6,569 9,761 -3,192

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

-2,040

156

-2,197

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

-9

-12

-2,515

2,440

GOODWILL IMPAIRMENT

-717

-10,143

At 31 December 2019, a €0.7 million impairment loss was charged against goodwill on iHome. Other operating income and expenses also include the cost of closing down small distribution entities (€1.5 million) and additional expenditure incurred in shutting down the project in China (€0.3 million). It should be noted that at 31 December 2018, the renegotiation of Somfy Protect by Myfox’s earnouts had resulted in the recognition of non-recurring income of €9.7 million (adjustment to financial debt). At the same time, a €9.7 million goodwill impairment was recorded. Neocontrol’s goodwill was also written off in full in the amount of €0.4 million. Other operating income and expenses also included termination costs of €6.5 million for a project in China.

ALTERNATIVE PERFORMANCE MEASURES NOTE 4.3

Change N/N-1 on a like-for-like basis Note 4.3.1

The N/N-1 change on a like-for-like basis is calculated by applying the N-1 accounting and consolidation methods and exchange rates to the periods compared and using the N-1 scope for both financial years. The N/N-1 change at actual accounting methods, exchange rates and consolidation scope – or change in real terms – corresponds to the change based on actual accounting and consolidation methods, exchange rates and consolidation scope.

Sales

Current operating result

At 31/12/19

N/N-1 CHANGE ON A LIKE-FOR-LIKE BASIS

6.1% 0.4%

13.2%

Forex impact Scope impact

1.7%

– –

–

Change in accounting method impact

0.2%

N/N-1 CHANGE AT ACTUAL ACCOUNTING METHODS, EXCHANGE RATES AND CONSOLIDATION SCOPE

6.5%

15.2%

The item “Change in accounting method impact” relates to the impact of IFRS 16.

95

SOMFY – ANNUAL FINANCIAL REPORT 2019