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Somfy SA Interim / Quarterly Report 2017

Sep 6, 2017

1677_ir_2017-09-06_25b6f6df-bb6f-4d49-bc72-f965b55fdf5e.pdf

Interim / Quarterly Report

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HALF-YEAR FINANCIAL REPORT 2017

CONTENTS

01 2017 HALF-YEAR BUSINESS REPORT

03

STATUTORY AUDITORS' REPORT ON THE 2017 INTERIM FINANCIAL REPORT

P.27

STATEMENT FROM THE INDIVIDUAL RESPONSIBLE FOR THE 2017 HALF-YEAR FINANCIAL REPORT

P.29

02 2017 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

01 2017 HALF-YEAR BUSINESS REPORT

01 2017 HALF-YEAR BUSINESS REPORT

KEY FIGURES

€ millions 30/06/17 30/06/16 % change
Sales 643.5 587.5 + 9.5%
Current operating result 106.2 114.4 – 7.2%
Operating result 105.9 114.3 – 7.3%
Net profit 84.0 92.7 – 9.4%
Net investments in intangible
assets and property, plant
and equipment		 33.0 30.4 + 8.3%
Cash flow 109.0 108.8 + 0.1%
Net financial debt 11.6 24.6 –

Somfy Group is the global leader in opening and closing automation for both residential and commercial buildings, and a key player in the connected home.

SALES GROWTH

Consolidated sales for the six months to the end of June stood at €643.5 million, an increase of 9.5% in real terms, including 11.0% over the first quarter and 8.3% over the second, and of 8.5% on a like-for-like basis, including 9.9% over the first quarter and 7.3% over the second. This was in line with the financial year just ended1 and confirmed the strength of the market and the attractiveness of the Group's offering.

All geographic regions2 ended the half-year up, although some were faced with an unfavourable base effect as a result of the strong growth recorded over previous half-years, and once again highlighted the growing interest among customers from different regions of the world in connected home solutions.

The most notable performances came from Asia-Pacific, America and Northern Europe (up 15.2%, 13.7% and 10.6% respectively on a like-for-like basis).

Business also held up very well in France where there was a significant acceleration over the second quarter, as well as in both Central and Eastern and Southern Europe3 (up 8.4%, 8.1% and 6.7% respectively on a like-for-like basis).

Conversely, the trend was reversed in Germany, where the calendar effect4 had a significant impact at the end of the second quarter, but it nevertheless remained positive over the half-year (up 1.9% on a like-for-like basis).

CHANGE IN CURRENT OPERATING RESULT

Current operating result stood at €106.2 million over the half-year, down 7.2%, and represented 16.5% of sales.

This decline reflected both an erosion in the gross margin and a contained rise in general expenses within a context of increased strategic investments (digitalisation, marketing, innovation, etc.). This was due to contextual and structural elements, namely the historically high comparison base level5 , market share gains, price rises in raw materials and the incorporation of newly-acquired companies6 .

Discounting the impact of changes in scope, current operating result stood at 17.4% of sales.

CHANGE IN NET PROFIT

Consolidated net profit was €84.0 million, a decline of 9.4%. This takes into account a €5.6 million charge involving non-recurring operating and financial items, which primarily represents unrealised currency gains and losses, and a €16.5 million tax charge.

NET FINANCIAL DEBT

The net financial debt is defined and detailed in Note 8.2.3 to the condensed consolidated interim financial statements.

Cash flow for the period was €109.0 million. It covered the growth in investments and the moderate increase in working capital requirements.

The balance sheet remained very strong, with net financial debt7 limited to €11.6 million and equity which grew to €695.0 million.

1.Group sales grew 10.2% on a like-for-like basis over 2016 as a whole, including 11.9% over the first quarter, 12.2% over the second, 7.1% over the third and 9.5% over the fourth quarter.

2.Germany, America, Asia-Pacific, Central and Eastern Europe, Northern Europe, Southern Europe and France are the geographic regions usually used to analyse and monitor sales. Their respective sales are calculated based on customer location and therefore the destination of the sales. 3. Africa and the Middle East are included in Southern Europe for the monitoring and analysis of sales.

4.Over this half-year, June included two fewer billing days in Germany.

5.Current operating margin (COR/Sales) for the first half-year stood at 19.5% in 2016 compared with 17.7% in 2015, 17.1% in 2014 and 16.7% in 2013.

6.The Group acquired the entire share capital of Myfox, a specialist in connected solutions for home security, in October 2016, and a majority shareholding in iHome Systems, an integrator of home automation solutions in December 2016.

7.Net financial debt corresponds to the difference between financial debt and cash and cash equivalents. It takes into account both deferrals in payments and earnout on acquisitions as well as liabilities related to put options granted to holders of non-controlling interests.

OUTLOOK

More than half of Somfy Group's sales are generated in the first half of the year.

Market conditions should remain favourable in the short term within the various regions in which the Group operates and should therefore lead to further growth in sales despite the high comparison base level in many countries. Similarly, the elements responsible for the decline in profitability over the first half-year should continue to impact results.

The ongoing roll-out of the strategic plan Believe and Act will be one of the main projects over the next few months, since the priority remains to position the Group as a key player in home digitalisation, with a major focus on comfort, security and the energy efficiency of buildings, and therefore to ensure that it fully capitalises on the significant potential of the market.

That is why new purchase and partnership opportunities will be researched and considered.

HIGHLIGHTS

CIAT —

On 5 January 2015, Somfy SA transferred its 46.1% equity investment in the share capital of CIAT Group to United Technologies Corporation. On 31 March 2016, United Technologies Corporation filed a claim against the sellers of the CIAT shares under the liability guarantee. The requests included in the claim were unfounded and insufficiently detailed and justified, leading the Group to send a letter dated 2 May 2016 to UTC, requesting detailed documentation. On 17 March 2017, UTC responded by forwarding documents and clarifications which remain insufficient to justify the financial loss sustained, which UTC estimates at €31.3 million (equating to a €14.4 million share for Somfy).

As the process currently stands, Somfy Group continues to contest the entirety of UTC's demands and remains confident regarding the outcome of this dispute. It has qualified the risk as a contingent liability and no provision was recognised at 30 June 2017.

At 30 June 2017, Somfy SA's financial statements include a deferred settlement in relation to the sale of the CIAT shares for the sum of €10.5 million with payment spread until 2019.

SPIREL

—

The dispute between Spirel employees and Somfy SA is ongoing before the Albertville District Court. The employees seek annulment of the transfer of the Spirel securities, which took place in 2010, and to have Somfy SA ordered to pay them damages for the alleged deliberate bankruptcy of Spirel and non-material damage caused as a result of the anxiety, disappointment and vexation they considered to have been victim of, for a total of approximately €8.2 million. In April 2017, the Court ruled in favour of Somfy SA, dismissing the employees' claims. However, the plaintiffs immediately appealed this decision.

For the record, in the absence of any findings or documentation provided by the plaintiffs, the proceedings before the Labour Court – involving the employees contesting the grounds for their dismissal and claiming damages of a substantially similar amount to that sought before the District Court – was dismissed in October 2016. The employees applied to the Albertville Labour Court once again in early July 2017. By letter dated 10 July 2017, Somfy is required to submit documents and findings by 28 November 2017 and has been summoned to appear before the adjudication panel for a hearing on 1 February 2018.

These new factors do not alter the Group's risk evaluation. Therefore, it continues to qualify these risks as contingent liabilities and no provision was recognised in relation to these disputes at 30 June 2017.

CHANGES TO THE CONSOLIDATION SCOPE

—

The Group did not make any major acquisition over the first six months of 2017.

Myfox and iHome, acquired in late 2016, contributed €5.6 million and €0.4 million respectively to Group sales.

POST BALANCE-SHEET EVENT

Excluding the new summons as part of the Spirel dispute referred to above, no material post-balance sheet event has occurred since 30 June 2017.

02 2017 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

02 2017 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

CONSOLIDATED INCOME STATEMENT

€ thousands Notes 30/06/17
6 months		 30/06/16
6 months
Sales (5.1) 643,499 587,538
Other operating income 9,063 8,372
Cost of sales – 244,969 – 204,685
Employee expenses – 179,116 – 166,568
External expenses – 98,983 – 91,226
EBITDA 129,493 133,430
Amortisation and depreciation charges (6.2) & (6.3) – 23,205 – 19,070
Charges to/reversal of current provisions – 7 260
Gains and losses on disposal of non-current operating assets – 82 – 186
CURRENT OPERATING RESULT 106,200 114,433
Other operating income and expenses (5.2) – 302 – 153
OPERATING RESULT 105,897 114,280
– Financial income from investments 922 1,083
– Financial expenses related to borrowings – 1,454 – 1,339
Cost of net financial debt – 532 – 255
Other financial income and expenses – 4,733 234
NET FINANCIAL INCOME/(EXPENSE) (8.1) – 5,265 – 22
PROFIT BEFORE TAX 100,632 114,258
Income tax (12) – 16,473 – 21,540
Share of net profit/(loss) from associates (13) – 204 – 7
CONSOLIDATED NET PROFIT 83,955 92,711
Attributable to Group share 84,588 91,379
Attributable to Non-controlling interests – 633 1,331
Basic earnings per share (€)* (7.2) 2.46 13.31
Diluted earnings per share (€)* (7.2) 2.46 13.30

* The Company's share capital has changed from 7,400,000 shares with a par value of €1 to 37,000,000 shares with a par value of €0.20 during the first half of 2017.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

€ thousands 30/06/17 30/06/16
Net profit for the period 83,955 92,711
Movement in gains and losses on translation of foreign currency – 1,357 – 5,764
Movement in fair value of foreign currency hedges 307 – 487
Movement in tax on items that may be reclassified to profit or loss – 105 154
Items that may be reclassified to profit or loss – 1,155 – 6,097
Movement in actuarial gains and losses – – 2,083
Movement in tax on items that will not be reclassified to profit or loss – 935
Items that will not be reclassified to profit or loss – – 1,148
Items of other comprehensive income – 1,155 – 7,246
Total comprehensive income for the period 82,800 85,465
Attributable to Group share 83,433 84,134
Attributable to Non-controlling interests – 633 1,331

CONSOLIDATED BALANCE SHEET – ASSETS

Notes 30/06/17 31/12/16
€ thousands Net Net
Non-current assets
Goodwill (6.1) 202,758 205,568
Net intangible assets (6.2) 42,959 44,515
Net property, plant and equipment (6.3) 262,489 254,557
Investments in associates (13) 1,594 1,880
Financial assets (8.2.1) 3,480 2,588
Other receivables (5.5.1) 3,872 3,885
Deferred tax assets 44,578 44,118
Total Non-current assets 561,731 557,111
Current assets
Inventories (5.4) 177,368 169,744
Trade receivables 232,701 162,433
Other receivables (5.5.2) 34,688 39,923
Current tax assets 25,350 21,494
Financial assets (8.2.1) 830 747
Derivative instruments - assets 579 4
Cash and cash equivalents 110,544 133,847
Total Current assets 582,059 528,192
TOTAL ASSETS 1,143,790 1,085,303

CONSOLIDATED BALANCE SHEET – EQUITY AND LIABILITIES

€ thousands Notes 30/06/17 31/12/16
Shareholders' equity
Share capital 7,400 7,400
Share premium 1,866 1,866
Other reserves 600,981 507,297
Net profit for the period 84,588 141,097
Group share 694,835 657,660
Non-controlling interests 178 252
Total Shareholders' equity 695,014 657,911
Non-current liabilities
Non-current provisions (10.1.1) 12,270 13,180
Other financial liabilities (8.2.2) 35,822 36,348
Other liabilities 1,462 1,543
Employee benefits 24,218 26,802
Deferred tax liabilities 37,241 37,004
Total Non-current liabilities 111,013 114,876
Current liabilities
Current provisions (10.1.2) 8,984 8,581
Other financial liabilities (8.2.2) 86,688 83,235
Trade payables 139,413 115,023
Other liabilities 90,444 95,740
Tax liabilities 12,019 9,557
Derivative instruments - liabilities 215 379
Total Current liabilities 337,764 312,516
TOTAL EQUITY AND LIABILITIES 1,143,790 1,085,303
€ thousands Share
capital
(1)		 Share
premium		 Treasury
shares		 Changes
in foreign
exchange
rates		 Consolidated
reserves		 Total
shareholders'
equity		 Non
controlling
interests		 Total
equity
(Group
share)
AT 31 DECEMBER 2016 7,400 1,866 – 99,054 9,522 738,177 657,911 252 657,660
Total comprehensive
income for the period		 – – – – 1,357 84,157 82,800 – 633 83,433
Treasury share
transactions		 – – 411 – 728 1,139 – 1,139
Dividends – – – – – 41,909 – 41,909 – – 41,909
Other movements (2) – – – – – 4,928 – 4,928 559 – 5,487
AT 30 JUNE 2017 7,400 1,866 – 98,643 8,165 776,225 695,014 178 694,835
AT 31 DECEMBER 2015 7,400 1,866 – 99,275 14,515 653,415 577,921 262 577,659
Total comprehensive
income for the period		 – – – – 5,764 91,229 85,465 1,331 84,134
Treasury share
transactions		 – – – 210 – – 202 – 412 – – 412
Dividends – – – – – 39,126 – 39,126 – – 39,126
Other movements (2) – – – – – 4,819 – 4,819 – 1,391 – 3,428
AT 30 JUNE 2016 7,400 1,866 – 99,485 8,751 700,497 619,030 203 618,827

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Liabilities corresponding to put options granted to holders of non-controlling interests are recognised against the non-controlling interests covered by the put options and Group share of equity for the balance. Subsequent changes to liabilities are recorded under Group share of equity.

(1) Share capital comprises 37,000,000 shares with a par value of € 0.20. The par value of the shares was divided by five during the first six months of 2017. (2) Other movements include changes to the consolidation scope, exchange rate differences on capital transactions, as well as liabilities and subsequent changes in liabilities corresponding to put options granted to holders of non-controlling interests. The flow over the first half of 2017 represented the change in the liability related to the Dooya put option. This item also includes the reclassification under "Equity – Group share" of the share of the comprehensive income attributable to the non-controlling interests covered by the put options.

CONSOLIDATED CASH FLOW STATEMENT

€ thousands Notes 30/06/17
6 months		 30/06/16
6 months
Consolidated net profit 83,955 92,711
Depreciation and amortisation of assets (excluding current assets) 22,355 21,484
Charges to/reversals of provisions for liabilities – 633 – 242
Unrealised gains and losses related to fair value movements – 436 – 80
Unrealised foreign exchange gains and losses 3,989 – 4,504
Income and expenses related to stock options and employee benefits – 466 1,344
Depreciation, amortisation, provisions and other non-cash items 24,809 18,002
Profit on disposal of assets and others 82 1,119
Share of net profit/(loss) from associates 204 7
Deferred tax expense – 95 – 3,004
Cash flow 108,956 108,837
Cost of net financial debt (excluding non-cash items) 532 255
Tax expense (excluding deferred tax) 16,568 24,544
Change in working capital requirements (9.2) – 61,426 – 82,170
Tax paid – 17,768 – 8,748
NET CASH FLOW FROM OPERATING ACTIVITIES (A) 46,862 42,718
Acquisition-related disbursements:
– intangible assets and property, plant and equipment – 33,258 – 30,777
– non-current financial assets – 1,109 – 395
Disposal-related proceeds:
– intangible assets and property, plant and equipment 306 346
– non-current financial assets 4,400 4,400
Change in current financial assets 429 983
Acquisition of companies, net of cash acquired – – 55
Disposal of companies, net of cash disposed of – 1,205
Interest received 200 111
NET CASH FLOW FROM INVESTING ACTIVITIES (B) – 29,032 – 24,182
Increase in loans 5,982 2,734
Reimbursement of loans – 1,159 – 17,317
Net increase in shareholders' equity of subsidiaries – – 2
Dividends and interim dividends paid – 41,909 – 39,126
Movement in treasury shares 1,055 – 180
Interest paid – 1,428 – 1,343
NET CASH FLOW FROM FINANCING AND CAPITAL ACTIVITIES (C) – 37,459 – 55,234
Impact of changes in foreign exchange rates on cash and cash equivalents (D) – 1,670 – 1,698
NET CHANGE IN CASH AND CASH EQUIVALENTS (A + B + C + D) – 21,299 – 38,395
CASH AND CASH EQUIVALENTS AT THE START OF THE PERIOD (9.1) 126,249 99,272
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (9.1) 104,950 60,877

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Somfy SA is a company governed by a Management Board and a Supervisory Board, listed on the Eurolist of Euronext Paris (Compartment A, ISIN code: FR0013199916). Somfy Group is specialised in opening and closing automation and controls for both residential and commercial buildings (motors for blinds, shutters, curtains, screens, doors, gates, etc.). The head office is based in Cluses, Haute-Savoie, France. Somfy SA is a 52.65%-owned subsidiary of J.P.J.S., a company incorporated under French law.

The condensed consolidated IFRS financial statements of Somfy Group at 30 June 2017 have been prepared by the Management Board on 30 August 2017. Total assets were €1,143,790 thousand and consolidated net profit €83,955 thousand (Group share: €84,588 thousand).

—

—

NOTE 1 – HIGHLIGHTS

NOTE 1.1: CIAT

—

On 5 January 2015, Somfy SA transferred its 46.1% equity investment in the share capital of CIAT Group to United Technologies Corporation. On 31 March 2016, United Technologies Corporation filed a claim against the sellers of the CIAT shares under the liability guarantee. The requests included in the claim were unfounded and insufficiently detailed and justified, leading the Group to send a letter dated 2 May 2016 to UTC, requesting detailed documentation. On 17 March 2017, UTC responded by forwarding documents and clarifications which remain insufficient to justify the financial loss sustained, which UTC estimates at €31.3 million (equating to a €14.4 million share for Somfy).

As the process currently stands, Somfy Group continues to contest the entirety of UTC's demands and remains confident regarding the outcome of this dispute. It has qualified the risk as a contingent liability and no provision was recognised at 30 June 2017.

At 30 June 2017, Somfy SA's financial statements include a deferred settlement in relation to the sale of the CIAT shares for the sum of €10.5 million with payment spread until 2019.

NOTE 1.2: SPIREL

The dispute between Spirel employees and Somfy SA is ongoing before the Albertville District Court. The employees seek annulment of the transfer of the Spirel securities, which took place in 2010, and to have Somfy SA ordered to pay them damages for the alleged deliberate bankruptcy of Spirel and non-material damage caused as a result of the anxiety, disappointment and vexation they considered to have been victim of, for a total of approximately €8.2 million. In April 2017, the Court ruled in favour of Somfy SA, dismissing the employees' claims. However, the plaintiffs immediately appealed this decision.

For the record, in the absence of any findings or documentation provided by the plaintiffs, the proceedings before the Labour Court – involving the employees contesting the grounds for their dismissal and claiming damages of a substantially similar amount to that sought before the District Court – was dismissed in October 2016. The employees applied to the Albertville Labour Court once again in early July 2017. By letter dated 10 July 2017, Somfy is required to submit documents and findings by 28 November 2017 and has been summoned to appear before the adjudication panel for a hearing on 1 February 2018.

These new factors do not alter the Group's risk evaluation. Therefore, it continues to qualify these risks as contingent liabilities and no provision was recognised in relation to these disputes at 30 June 2017.

NOTE 1.3: CHANGES TO THE CONSOLIDATION SCOPE

The Group did not make any major acquisition over the first six months of 2017.

Myfox and iHome, acquired in late 2016, contributed €5.6 million and €0.4 million respectively to Group sales.

NOTE 2 – POST BALANCE-SHEET EVENT

Excluding the new summons as part of the Spirel dispute referred to above, no material post-balance sheet event has occurred since 30 June 2017.

NOTE 3 – ACCOUNTING RULES AND METHODS

NOTE 3.1: COMPLIANCE WITH ACCOUNTING STANDARDS

In application of European Regulation 1606/2002 of 19 July 2002, the Somfy Group's condensed consolidated financial statements have been prepared in accordance with IFRS (International Financial Reporting Standards) published by the IASB (International Accounting Standards Board), as adopted by the European Union at 30 June 2017.

These standards are available on the European Commission website at http://ec.europa.eu/finance/accounting/ias/index_en.htm

The condensed consolidated interim financial statements have been prepared in accordance with the international financial reporting standard IAS 34 ("Interim financial reporting"). They do not contain all disclosures and notes included in the full-year financial statements. As a result, they must be read in conjunction with the Group's consolidated financial statements at 31 December 2016.

The Group's consolidated financial statements for the year ended 31 December 2016 are available from the Group's website www. somfyfinance.com and upon request from head office.

NOTE 3.2: JUDGEMENTS AND ESTIMATES

The preparation of the consolidated financial statements requires Management to make a number of judgments, estimates and assumptions liable to affect the values of certain assets, liabilities, and income and expense items in the financial statements, and certain information provided in the notes to the financial statements. Due to the inherently uncertain nature of assumptions, actual results may differ from these estimates. The Group reviews its estimates and assessments on a regular basis to take past experience into account and incorporate factors considered relevant under current economic conditions.

As part of the preparation of these consolidated interim financial statements, the main judgments made and the main assumptions (described in the 2016 annual financial statements) used by Management have been updated based on the latest indicators available.

At 30 June, Somfy Group reviews its performance indicators and, if necessary, carries out impairment tests if there is any indication that an asset may have been impaired.

NOTE 3.3: NEW APPLICABLE STANDARDS AND INTERPRETATIONS

Note 3.3.1: Standards, amendments and interpretations applicable within the European Union from the financial year beginning on 1 January 2017

The Group has applied the following standards, amendments and interpretations as of 1 January 2017 at the latest:

Standards Content Application date
Amendments to IAS 12 Recognition of deferred tax assets for unrealised losses Applicable from 1 January 2017
Amendments to IAS 7 Disclosure initiative Applicable from 1 January 2017
Annual improvements to IFRS 2014-2016 cycle – amendment to IFRS 12 Applicable from 1 January 2017
(EU approval expected by the end of 2017)

These new standards have not had a material impact on the Group's results and financial position.

Note 3.3.2: Standards and interpretations whose application is not yet mandatory

Standards Content Application date
IFRS 9 Financial instruments: classification and measurement
and subsequent amendments to IFRS 9 and IFRS 7		 Applicable from 1 January 2018
IFRS 15 Revenue recognition Applicable from 1 January 2018
Amendments to IFRS 2 Classification and measurement of share-based
payment transactions		 Applicable from 1 January 2018 according
to IASB, not yet approved by the EU
Annual improvements to IFRS 2014-2016 cycle – excluding amendment to IFRS 12
applicable from 2017		 Applicable from 1 January 2018
Amendments to IFRS 15 Clarification of IFRS 15 Applicable from 1 January 2018 according
to IASB, not yet approved by the EU
IFRS 16 Leases Applicable from 1 January 2019 according
to IASB, not yet approved by the EU
IFRIC 22 Foreign currency transactions and advance considerations Applicable from 1 January 2018 according
to IASB, not yet approved by the EU

The Group did not opt for the early application of any of these new standards or amendments and is currently assessing the impact resulting from their initial application.

Detailed information is available on the following website: http://www.ifrs.org

IFRS 15 sets out the principles for revenue recognition based on a five-step model framework:

– identify the contract,

– identify the various performance obligations, i.e. list the goods or services the seller is committed to supply to the purchaser,

– determine the total price of the contract,

– allocate the total price to each performance obligation,

– recognise revenue and ancillary costs when a performance obligation is satisfied.

Application of this new approach, based on ongoing analyses, did not lead to identify any material impact on Somfy Group's financial statements. The Group does not expect an early application of IFRS 15 as of 31 December 2017.

Analysis of the impact of IFRS 16 "Leases" is ongoing within Somfy Group.

The restatement of lease contracts will lead to an increase in operating result, financial expenses, non-current assets and financial liabilities. It is not expected to have any material impact on shareholders' equity and net profit based on ongoing reviews.

Likewise, the changes introduced by IFRS 9 should only have a limited impact on the financial statements.

NOTE 4 – SEGMENT REPORTING

Somfy includes entities the business of which comes under the «Home & Building», «Access Automation» and "Connected Solutions" applications and is structured in two geographic regions.

The geographic location of assets is used as sole segment reporting criterion. Management makes its decisions based on this strategic focus using reporting by geographic region as its key analysis tool.

The two geographic regions are:

– Europe, Middle East & Africa (EMEA),

– Asia & Americas (A&A).

AT 30 JUNE 2017

—

€ thousands Europe, Middle
East & Africa		 Asia & Americas Intra-regional
eliminations		 Consolidated
Segment sales 506,403 180,647 – 43,551 643,499
Intra-segment sales – 29,565 – 13,986 43,551 –
Segment sales - Contribution to sales 476,838 166,661 – 643,499
Segment current operating result 96,928 9,271 – 106,200
Share of net profit/(loss) from associates – – 204 – – 204
Cash flow 99,678 9,278 – 108,956
Net investments in intangible assets and PPE 25,961 6,992 – 32,952
Goodwill 109,682 93,076 – 202,758
Net intangible assets and PPE 243,493 61,955 – 305,448
Investments in associates 722 872 – 1,594

AT 30 JUNE 2016

€ thousands Europe, Middle
East & Africa		 Asia & Americas Intra-regional
eliminations		 Consolidated
Segment sales 471,264 165,626 – 49,352 587,538
Intra-segment sales – 33,359 – 15,994 49,352 –
Segment sales - Contribution to sales 437,906 149,632 – 587,538
Segment current operating result 96,278 18,155 – 114,433
Share of net profit/(loss) from associates – 1 – 7 – – 7
Cash flow 93,847 14,990 – 108,837
Net investments in intangible assets and PPE 23,372 7,058 – 30,430
Goodwill 86,182 93,758 – 179,940
Net intangible assets and PPE 222,445 59,219 – 281,664
Investments in associates 723 1,836 – 2,559

NOTE 5 – PERFORMANCE-RELATED DATA

NOTE 5.1: SALES BY CUSTOMER LOCATION

—

This presentation by customer location was supplemented by our segment reporting pursuant to IFRS 8, which is based on the geographic regions in which our assets are based, namely Europe, Middle East & Africa (EMEA) and Asia & Americas (A&A).

30/06/17
6 months		 30/06/16
6 months		 Change
N/N–1		 Change
N/N–1 change
€ thousands like-for-like
France 164,869 147,249 12.0% 8.4%
Germany 93,636 92,005 1.8% 1.9%
Northern Europe 63,671 58,703 8.5% 10.6%
Central and Eastern Europe 64,746 58,694 10.3% 8.1%
Southern Europe, Middle East and Africa 116,874 110,912 5.4% 6.7%
Asia-Pacific 66,116 56,788 16.4% 15.2%
Americas 73,587 63,187 16.5% 13.7%
TOTAL SALES 643,499 587,538 9.5% 8.5%

NOTE 5.2: OTHER OPERATING INCOME AND EXPENSES

€ thousands 30/06/17
6 months		 30/06/16
6 months
Charge to/reversal of non-current provisions – 185 – 264
Other non-current items – 117 111
– Non-current income 17 127
– Non-current expenses – 134 – 16
Net gain/(loss) on disposal of non-current assets – –
OTHER OPERATING INCOME AND EXPENSES – 302 – 153

NOTE 5.3: ALTERNATIVE PERFORMANCE MEASURES

Note 5.3.1: Current operating margin

Current operating margin, which corresponds to current operating result as a proportion of sales (COR/Sales), is a useful performance indicator as it reflects operating profitability.

€ thousands 30/06/17
6 months		 30/06/16
6 months
Current operating result 106,200 114,433
Sales 643,499 587,538
CURRENT OPERATING MARGIN 16.5% 19.5%

NOTE 5.4: INVENTORIES

€ thousands 30/06/17 31/12/16
Gross value
Raw materials and other supplies 59,927 56,059
Finished goods and merchandise 129,762 125,143
Total 189,689 181,202
Provisions – 12,321 – 11,458
NET VALUES 177,368 169,744
€ thousands Value
31/12/16		 Net
charges		 Exchange rate
movements		 Changes in
consolidation
scope		 Value
30/06/17
Inventory provisions – 11,458 – 1,070 207 – – 12,321

NOTE 5.5: OTHER NON-CURRENT AND CURRENT RECEIVABLES

Note 5.5.1: Other non-current receivables

€ thousands 30/06/17 31/12/16
Gross value
Other operating receivables 2 15
Other non-operating receivables 3,870 3,870
TOTAL 3,872 3,885

The item "Other non-operating receivables" notably includes non-current receivables of €3.9 million at 30 June 2017 on the disposal of CIAT, unchanged from 31 December 2016.

Note 5.5.2: Other current receivables

€ thousands 30/06/17 31/12/16
Gross value
Receivables from employees 4,489 3,545
Other taxes (including VAT) 6,938 11,830
Prepaid expenses 9,988 6,333
Other receivables 13,273 18,215
TOTAL 34,688 39,923

The item "Other receivables" notably includes current receivables of €11.0 million at 30 June 2017 and €15.4 million at 31 December 2016 on the disposal of CIAT and the Faac transaction.

NOTE 6 – INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT

— NOTE 6.1: GOODWILL AND IMPAIRMENT TESTS

Note 6.1.1: Goodwill

€ thousands Valeur
At 1 January 2017 205,568
Changes in scope of consolidation –
Changes in foreign exchange rates – 2,810
Charge for impairment –
AT 30 JUNE 2017 202,758

The purchase price allocations of Myfox and iHome are ongoing and will be finalised during the second half of 2017.

Note 6.1.2: Impairment tests

At 30 June 2017 as at 30 June 2016, as part of its review of significant intangible assets, the Group did not identify any indications of impairment that would require impairment testing.

16

€ thousands Allocated
intangible
assets		 Develop
ment costs		 Patents
and brands		 Software Other In pro
gress and
advance
payments		 Total
Gross value at 1 January 2017 27,256 38,298 9,003 45,138 2,290 7,920 129,905
Acquisitions – 430 103 513 60 3,865 4,971
Disposals – – 890 – – 35 – 44 – – 969
Changes in foreign exchange rates – 1,239 – – 249 – 77 – 3 – – 1,567
Changes in scope of consolidation – – – – – – –
Other movements – 5,498 – 19 1,838 – 20 – 7,336 – 39
AT 30 JUNE 2017 26,017 43,336 8,838 47,377 2,284 4,449 132,301
Accumulated amortisation at 1 January 2017 – 17,506 – 26,718 – 3,381 – 35,956 – 1,828 – – 85,390
Amortisation charge for the period – 1,202 – 2,806 – 288 – 1,526 – 67 – – 5,889
Disposals – 890 – 35 45 – 970
Changes in foreign exchange rates 792 – 49 53 3 – 898
Changes in scope of consolidation – – – – – – –
Other movements – – 50 – 20 – 70
AT 30 JUNE 2017 – 17,916 – 28,634 – 3,569 – 37,395 – 1,828 – – 89,341
NET VALUE AT 30 JUNE 2017 8,101 14,702 5,269 9,983 456 4,449* 42,959

NOTE 6.2: OTHER INTANGIBLE ASSETS

* Of which development expenses in progress amounting to €3.8 million.

NOTE 6.3: PROPERTY, PLANT AND EQUIPMENT

Land Buildings Plant,
machinery
and tools		 Other In pro
gress and
advance		 Total
€ thousands payments
Gross value at 1 January 2017 21,600 170,238 244,464 70,048 27,890 534,241
Acquisitions – 145 5,193 4,335 17,189 26,861
Disposals – – 13 – 5,611 – 1,210 – – 6,833
Changes in foreign exchange rates 209 – 1,119 – 410 – 1,116 – 174 – 2,609
Changes in scope of consolidation – – – – – –
Other movements 775 5,144 13,465 1,099 – 20,467 16
AT 30 JUNE 2017 22,584 174,395 257,102 73,156 24,438 551,676
Accumulated depreciation at 1 January 2017 – 601 – 74,479 – 157,998 – 46,606 – – 279,684
Depreciation charge for the period – 109 – 3,470 – 9,528 – 4,210 – – 17,316
Disposals – 12 5,361 1,071 – 6,444
Changes in foreign exchange rates – 16 246 563 623 – 1,416
Changes in scope of consolidation – – – – – –
Other movements – – 51 – 39 43 – – 47
AT 30 JUNE 2017 – 726 – 77,742 – 161,640 – 49,080 – – 289,187
NET VALUE AT 30 JUNE 2017 21,859 96,653 95,462 24,076 24,438 262,489

NOTE 7 – DIVIDENDS AND EARNINGS PER SHARE

— NOTE 7.1: DIVIDENDS

The gross dividend proposed at the AGM of 17 May 2017 called to approve the 2016 financial statements was €6.10. It was paid on 6 June 2017.

NOTE 7.2: EARNINGS PER SHARE

Basic earnings per share 30/06/17
6 months		 30/06/16
6 months
Net profit - Group share (€ thousands) 84,588 91,379
Total number of shares (1) 37,000,000 7,400,000
Treasury shares* (2) 2,651,211 533,128
Number of shares used in calculation (1) – (2) 34,348,789 6,866,872
EARNINGS PER SHARE (€) 2.46 13.31

* Representing the total treasury shares held by Somfy SA.

Diluted earnings per share 30/06/17
6 months		 30/06/16
6 months
Net profit - Group share (€ thousands) 84,588 91,379
Total number of shares (1) 37,000,000 7,400,000
Treasury shares** (2) 2,587,236 531,423
Number of shares used in calculation (1) – (2) 34,412,764 6,868,577
DILUTED EARNINGS PER SHARE (€) 2.46 13.30

** Free shares are excluded.

The par value of the shares which make up the share capital of Somfy SA has been divided by five. The Company's share capital has changed from 7,400,000 shares with a par value of €1 to 37,000,000 shares with a par value of €0.20 during the first half of 2017. Diluted earnings per share take into account shares allocated free of charge in determining the "number of shares used in the calculation".

NOTE 8 – FINANCIAL ITEMS

— NOTE 8.1: NET FINANCIAL INCOME/(EXPENSE)

€ thousands 30/06/17
6 months		 30/06/16
6 months
Cost of net financial debt – 532 – 255
– Financial income from investments 922 1,083
– Financial expenses related to borrowings – 1,454 – 1,339
Foreign exchange effect – 5,243 3,495
Other 510 – 3,262
NET FINANCIAL INCOME/(EXPENSE) – 5,265 – 22

The change in net financial income/(expense) between June 2016 and June 2017 was primarily due to an unfavourable currency effect.

NOTE 8.2: FINANCIAL ASSETS AND LIABILITIES

Note 8.2.1: Financial asset

€ thousands Financial
assets
available
for sale		 Loans Deposits and
guarantees		 Other Current and
non-current
financial
assets		 Realisable
within
1 year		 Non
current
financial
assets
At 1 January 2017 334 75 2,924 3 3,335 747 2,588
Increase 1,025 443 83 – 1,551 13 1,538
Decrease – – 427 – 15 – – 442 – 442 –
Net change in impairment – – – 2 – – 2 – – 2
Changes in foreign exchange rates – 56 – 5 – 70 – – 132 – 30 – 102
Changes in scope of consolidation – – – – – – –
Other movements 13 – – 13 – – 542 – 542
AT 30 JUNE 2017 1,316 85 2,907 3 4,310 830 3,480

Financial assets available for sale are recorded at fair value. Financial assets realisable within one year mainly comprise short-term deposits.

Note 8.2.2: Financial liabilities

€ thousands Borrowings
from credit
institutions		 Lease
commit
ments		 Other
borrowings
and financial
liabilities		 Bank over
drafts		 Current and
non-current
financial
liabilities		 Due
within
1 year		 Non
current
financial
liabilities
At 1 January 2017 16,386 8,014 87,586 7,598 119,584 83,235 36,348
New/repayment of borrowings 5,929 – 1,088 615 – 1,361 4,096 3,580 517
Impact of the revaluation of put options – – 4,928 – 4,928 4,928 –
Changes in foreign exchange rates – 1,028 1 – 4,427 – 644 – 6,098 – 5,252 – 846
Changes in scope of consolidation – – – – – – –
Other movements – – – – – 197 – 197
AT 30 JUNE 2017 21,288 6,927 88,702 5,593 122,510 86,688 35,822

Other borrowings and financial liabilities include the debt relating to the put options granted to the holders of non-controlling interests and to earn-outs, which amounted to €82.9 million at 30 June 2017 and €81.4 million at 31 December 2016, as well as to deferred settlements of €5.3 million at 30 June 2017 and €5.6 million at 31 December 2016. The change was mainly due to the discounting of the put option granted to minority shareholders in Dooya, valued at €60.2 million at 30 June 2017 compared with €58.7 million at 31 December 2016 and exercisable from the end of 2015 onwards.

Subsequent changes in liabilities corresponding to put options granted to holders of non-controlling interests are recognised in equity. The Group renegotiated its lines of financing generating a total available amount of €200 million with maturities of between three and five years. The covenants introduced are similar to those that existed at 31 December on former lines.

Note 8.2.3: Analysis of net financial debt

The net financial debt corresponds to the difference between financial assets and financial liabilities. Notably, it takes into account unlisted bonds receivable, issued by certain companies in which shares are held or related entities, earn-out on acquisitions, liabilities relating to options granted to minority shareholders in fully-consolidated companies and deferred settlements of a financial nature. Not included are securities in non-controlling equity investments, deposits & guarantees and government grants.

30/06/17 31/12/16
122,500 119,573
323 288
238 214
85 74
110,544 133,847
11,633 – 14,562

(–) Net financial surplus

Financial liabilities included in net financial debt include the debt relating to the put options granted to the holders of non-controlling interests and to earn-outs, which amounted to €82.9 million at 30 June 2017 and €81.4 million at 31 December 2016, as well as to deferred settlements of €5.3 million at 30 June 2017 and €5.6 million at 31 December 2016. Restated for these items, the net financial surplus was €76.5 million at 30 June 2017, compared with €101.6 million at 31 December 2016.

NOTE 9 – ANALYSIS OF CASH FLOW STATEMENT

— NOTE 9.1: CASH AND CASH EQUIVALENTS

€ thousands 30/06/17
6 month		 30/06/16
6 months
CASH AND CASH EQUIVALENTS AT THE START OF THE PERIOD 126,249 99,272
Cash and cash equivalents at the start of the period 133,847 103,787
Bank overdrafts – 7,598 – 4,515
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 104,950 60,877
Cash and cash equivalents at the end of the period 110,544 72,117
Bank overdrafts – 5,594 – 11,240

NOTE 9.2: CHANGE IN WORKING CAPITAL REQUIREMENTS

€ thousands 30/06/17
6 months		 30/06/16
6 months
Net decrease/(increase) in inventory – 10,276 – 19,915
Net decrease/(increase) in trade receivables – 74,570 – 73,841
Net (decrease)/increase in trade payables 27,154 18,369
Net movement in other receivables and payables – 3,734 – 6,784
CHANGE IN WORKING CAPITAL REQUIREMENTS – 61,426 – 82,170

NOTE 10 – PROVISIONS AND CONTINGENT LIABILITIES

— NOTE 10.1: PROVISIONS

Note 10.1.1: Non-current provisions

€ thousands Provisions for
guarantees		 Provisions for
litigation		 Provision for
employee
liability		 Provisions for
liabilities and
charges		 Total 2017
At 1 January 2017 6,238 1,844 447 4,651 13,180
Charges 209 226 26 26 487
Used reversals – – 527 – 67 – 39 – 633
Unused reversals – – 242 – – 244 – 486
Impact of foreign exchange rates – 116 – 4 – – 158 – 278
Change in consolidation scope – – – – –
Other movements – – – – –
AT 30 JUNE 2017 6,331 1,297 406 4,236 12,270

Note 10.1.2: Current provisions

€ thousands Provisions for
guarantees		 Provisions for
litigation		 Provisions for
liabilities and
charges		 Total 2017
At 1 January 2017 5,536 1,226 1,819 8,581
Charges 221 192 437 850
Used reversals – – 28 – 262 – 290
Unused reversals – – 18 – 10 – 28
Impact of foreign exchange rates – 119 – – 10 – 129
Change in consolidation scope – – – –
Other movements – – – –
AT 30 JUNE 2017 5,638 1,372 1,973 8,984

NOTE 10.2: CONTINGENT LIABILITIES

All of the Group's contingent liabilities are set out in the Highlights.

NOTE 11 – WORKFORCE

— Somfy Group's average workforce at 30 June 2017, including temporary and part-time employees recorded on a full-time equivalent basis, was as follows:

30/06/17 30/06/16
Average workforce 8,928 8,499

NOTE 12 – INCOME TAX

—

€ thousands 30/06/17
6 months		 30/06/16
6 months
Profit before tax from continuing operations 100 632 114 258
Share of expenses on dividends 1,473 1,589
Reclassification of CVAE to Income tax – 1,682 – 1,567
Reclassification of CICE to Employee expenses – 1,199 – 967
Reclassification of CIR to Other operating income – 2,609 – 2,050
Other 2,402 – 2,999
Permanent differences – 1,614 – 5,994
Net profit taxed at reduced rate – 15,914 – 14,625
Net profit taxable at standard rate 83,104 93,639
Tax rate in France 34.43% 34.43%
Tax charge recalculated at the French standard rate 28,613 32,240
Tax at reduced rate 2,467 2,259
Difference in standard rate in foreign countries – 13,106 – 13,999
Tax losses for the year, unrecognised in previous periods, deficits used 996 422
Effect of the rate difference – 12,111 – 13,576
Tax credits – 1,841 – 1,912
Other taxes and miscellaneous – 655 2,530
Group tax 16,473 21,540
Effective rate 16.37% 18.85%

The results taxed at a reduced rate involve royalties, which were taxed at 15.5% (unchanged from 2016).

The main countries that contributed to the difference in the tax rate were Tunisia (€8.8 million), Germany (€0.6 million), other European countries (€2.9 million) and Middle Eastern countries (€1.1 million).

Tax credits were primarily affected by the SOPEM tax credit (Poland): €1.6 million at both 30 June 2017 and 30 June 2016.

Other taxes and miscellaneous items includes the CVAE tax of €1.7 million and €1.6 million for the periods ended 30 June 2017 and 30 June 2016 respectively, as well as the 3% contribution on dividends of €1.3 million at 30 June 2017 and €1.1 million at 30 June 2017. This item also includes an income tax rebate of €3.6 million secured by Somfy SA and connected with the offsetting of the 5% share of fees and expenses on dividends received from the European subsidiaries (years 2010 to 2013). Accrued income of €0.8 million was also recorded by Somfy SA concerning a claim against the tax authorities which followed a decision by the Conseil d'État in June 2017 specifying that the 12% taxation of the share of fees and expenses must apply to the net capital gains derived from the sale of equity securities. Lastly, Somfy SA has submitted other tax claims related to the 3% contribution on dividends (paid in 2014, 2015 and 2016) for which no accrued income has yet been recognised at 30 June 2017.

Restated for non-recurring items (income tax rebates), the effective tax rate was 20.8% at 30 June 2017.

NOTE 13 – INVESTMENTS IN ASSOCIATES

€ thousands 30/06/17 31/12/16
Investments in associates at the beginning of the period 1,880 2,258
Change in scope of consolidation and other 2 –
Share of profit/(loss) from associates – 204 – 684
Dividends paid – –
Changes in foreign exchange rates – 84 306
INVESTMENTS IN ASSOCIATES AT THE END OF THE PERIOD 1,594 1,880

"Investments in associates" consists of investments in Neocontrol and Arve Finance.

—

NOTE 14 – LIST OF CONSOLIDATED ENTITIES

—

Company name Head office % control
30/06/17		 % interest
30/06/17		 % interest
31/12/16
Somfy SA 74300 Cluses (France) (parent company) (parent company) (parent company)
Fully-consolidated companies
Somfy Activités SA Cluses (France) 100.00 100.00 100.00
CMC SARL Cluses (France) 100.00 100.00 100.00
Somfybat SNC Cluses (France) 100.00 100.00 100.00
Domis SA Rumilly (France) 100.00 100.00 100.00
Stor'm Saint Clair de la Tour (France) 100.00 100.00 100.00
SITEM SARL Zaghouan (Tunisia) 100.00 100.00 100.00
SITEM Services SARL Zaghouan (Tunisia) 100.00 100.00 100.00
SOPEM Krakow (Poland) 100.00 100.00 100.00
Somfy Eastern Europe Area SP. Zoo Warsaw (Poland) 100.00 100.00 100.00
Somfy Ltd Yeadon (UK) 100.00 100.00 100.00
Somfy PTY Ltd Rydalmere (Australia) 100.00 100.00 100.00
Somfy Automation Services PTY Ltd Rydalmere (Australia) 100.00 100.00 100.00
NV Somfy SA Zaventem (Belgium) 100.00 100.00 100.00
Somfy Brazil LTDA Sao Paulo (Brazil) 100.00 100.00 100.00
Somfy Columbia SAS Bogota (Colombia) 100.00 100.00 100.00
Somfy Argentina Buenos Aires (Argentina) 100.00 100.00 100.00
GABR Participações LTDA Sao Paulo (Brazil) 100.00 100.00 100.00
Somfy GmbH Rottenburg (Germany) 100.00 100.00 100.00
HIMOTION BV Leiden (Netherlands) 100.00 100.00 100.00
Somfy GmbH Elsbethen-Glasenbach (Austria) 100.00 100.00 100.00
Somfy KFT Budapest (Hungary) 100.00 100.00 100.00
Somfy Sp zoo Warsaw (Poland) 100.00 100.00 100.00
Somfy Spol sro Prague (Czech Republic) 100.00 100.00 100.00
SC Somfy SRL Brasov (Roumania) 100.00 100.00 100.00
Somfy LLC Moscow (Russia) 100.00 100.00 100.00
Somfy SIA Riga (Latvia) 100.00 100.00 100.00
Somfy LLC Kiev (Ukraine) 100.00 100.00 100.00
Somfy Bulgaria AD Sofia (Bulgaria) 100.00 100.00 100.00
Somfy Joo Seoul (Korea) 100.00 100.00 100.00
Somfy Italia SRL Milan (Italy) 100.00 100.00 100.00
Somfy Nederland BV Hoofddorp (Netherlands) 100.00 100.00 100.00
Somfy España SA Barcelona (Spain) 100.00 100.00 100.00
Automatismos Pujol SL Barcelona (Spain) 100.00 100.00 100.00
Automatismos Pujol Portugal Lda Esmoriz (Portugal) 100.00 100.00 100.00
Sistemi Automatici Pujol SAP SRL Pavona (Italy) 100.00 100.00 100.00
Somfy Systems Inc. Cranbury NJ (US) 100.00 100.00 100.00
Somfy AG Bassersdorf (Switzerland) 100.00 100.00 100.00
Somfy Sweden AB Limhamn (Sweden) 100.00 100.00 100.00
Somfy Norway AS Skedsmokorset (Norway) 100.00 100.00 100.00
Somfy PTE Ltd Singapore 100.00 100.00 100.00
Somfy Thailand Bangkok (Thailand) 100.00 100.00 100.00
Somfy Taiwan Co Ltd Taipei (Taïwan) 100.00 100.00 100.00
Asian Capital International LTD Hong Kong 100.00 100.00 100.00
Company name Head office % control
30/06/17		 % interest
30/06/17		 % interest
31/12/16
Sino Global International Holdings LTD Hong Kong 100.00 100.00 100.00
Sino Link Trading LTD Hong Kong 100.00 100.00 100.00
Hong Kong CTLT Trade Co. LTD Hong Kong 70.00 70.00 70.00
Somfy Asia-Pacific Co Ltd Hong Kong 100.00 100.00 100.00
Dooya China Ningbo (China) 70.00 70.00 70.00
Shanghai Zhengshang Co., ltd Shanghai (China) 70.00 70.00 70.00
Shanghai Branch Shanghai (China) 70.00 70.00 70.00
Hui Gong Intelligence Technology LTD Shanghai (China) 70.00 70.00 70.00
New Unity LTD Hong Kong 70.00 70.00 70.00
Ningbo Sleepwell Co Ltd Ningbo (China) 70.00 70.00 70.00
Somfy Co Ltd Hong Kong 100.00 100.00 100.00
Somfy China Co Ltd Shanghai (China) 100.00 100.00 100.00
LianDa Zhejiang (China) 95.00 95.00 95.00
Baixing Co Ltd Ningbo (China) 70.00 70.00 70.00
Herzborg Technology Ningbo (China) 70.00 70.00 70.00
Shanghai Goodnight Ningbo (China) 70.00 70.00 70.00
Somfy Middle East Co Ltd Limassol (Republic of Cyprus) 100.00 100.00 100.00
Somfy Egypt Cairo (Egypt) 100.00 100.00 100.00
Sisa Home Automation Ltd Rishone Le Zion (Israel) 100.00 100.00 100.00
Somfy Maroc SARL Casablanca (Morocco) 100.00 100.00 100.00
Somfy Hellas SA Acharnae (Greece) 100.00 100.00 100.00
Somfy Ev Otomasyon Sistemleri Ticaret Ltd Sti Istanbul (Turkey) 100.00 100.00 100.00
Somfy South Africa (PTY) Limited Durban (South Africa) 100.00 100.00 100.00
Somfy Tunisie Tunis (Tunisia) 100.00 100.00 100.00
Somfy Tunisie Services Tunis (Tunisia) 50.00 50.00 50.00
Somfy Mexico SA DE CV Tlalnepantla (Mexico) 100.00 100.00 100.00
Syservmex Tlalnepantla (Mexico) 100.00 100.00 100.00
Somfy K.K. Tokyo (Japan) 100.00 100.00 100.00
Somfy India Pvt Ltd New Dehli (India) 100.00 100.00 100.00
PROMOFI BV Hoofddorp (Netherlands) 100.00 100.00 100.00
FIGEST BV Leiden (Netherlands) 100.00 100.00 100.00
Somfy LLC USA Dover (US) 100.00 100.00 100.00
Somfy ULC Halifax (Canada) 100.00 100.00 100.00
Simu SAS Gray (France) 100.00 100.00 100.00
Simu GmbH Iserlohn (Germany) 100.00 100.00 100.00
WAY SRL Galliera (Italy) 100.00 100.00 100.00
Overkiz SAS Archamps (France) 96.63 96.63 96.63
Opendoors SAS Cluses (France) 100.00 100.00 100.00
iHome Systems (Asia Limited) Hong Kong 51.00 51.00 51.00
iHome Systems (Thailand) Co. Ltd Bangkok (Thailand) 51.00 51.00 51.00
Intelligent Home Systems (MY) Sdn. Bhd Kuala Lumpur (Malaysia) 51.00 51.00 51.00
iHome Systems (SG) Pte. Ltd Singapore 51.00 51.00 51.00
Somfy Protect by Myfox SAS Labège (France) 100.00 100.00 100.00
Myfox Inc Campbell (US) 100.00 100.00 100.00
SEM-T SASU Cluses (France) 100.00 100.00 100.00
DSG Coordination Center SA Geneva (Switzerland) 100.00 100.00 100.00
TTMD SA Geneva (Switzerland) 100.00 100.00 100.00
BFT SpA Schio (Italy) 100.00 100.00 100.00
Company name Head office % control
30/06/17		 % interest
30/06/17		 % interest
31/12/16
Automatismes BFT France SAS Saint-Priest (France) 100.00 100.00 100.00
BFT Group Italiberica de Automatismos SL Barcelona (Spain) 99.02 99.02 99.02
BFT Antriebssysteme GmbH Furth (Germany) 100.00 100.00 100.00
BFT Automation UK Ltd Stockport (UK) 100.00 100.00 100.00
BFT Benelux SA Nivelles (Belgium) 100.00 100.00 100.00
BFT Adria d.o.o. Drazice (Croatia) 100.00 100.00 100.00
BFT Polska Sp zoo Zielonka (Poland) 100.00 100.00 100.00
SACS SRL Borgo Valsugana (Italy) 100.00 100.00 100.00
BFT Americas Inc. Boca Raton (US) 100.00 100.00 100.00
BFT Portugal SA Coimbra (Portugal) 100.00 100.00 100.00
BFT Automation (South) Ltd Berkshire (UK) 100.00 100.00 100.00
BFT Automation Australia PTY Sydney (Australia) 100.00 100.00 100.00
BFT CZ Sro Prague (Czech Republic) 100.00 100.00 100.00
BFT Piemonte SRL Dronero (Italy) – – 100.00
O&O SRL Corregio (Italy) 100.00 100.00 100.00
BFT Veneto SRL Schio (Italy) 100.00 100.00 100.00
BFT Otomasyon Kapi Istanbul (Turkey) 100.00 100.00 100.00
BFT Istanbul Istanbul (Turkey) 100.00 100.00 100.00
BFT Greece Athens (Greece) 100.00 100.00 100.00
BFT Automation Ireland Dublin (Ireland) 100.00 100.00 100.00
BFT Automation Systems PTL Hyderabad (India) 51.00 51.00 51.00
Nord Logistica E Servizi SRL Schio (Italy) 100.00 100.00 100.00
BFT Middle East FZO Dubai (United Arab Emirates) 100.00 100.00 100.00
BFT Auto Gate and Door (Shanghai) Co. Ltd Shanghai (China) 100.00 100.00 100.00
BFT Gates and Doors SRL Bucharest (Romania) 100.00 100.00 100.00
BFT Automation New Zealand Auckland (New Zealand) 100.00 100.00 100.00
BFT Sud Est SAS Saint Laurent du Var (France) 100.00 100.00 100.00
BFT Lazio SRL Rome (Italy) – – 100.00
BFT Automatech Italia SRL Verona (Italy) 100.00 100.00 100.00
Equity-accounted companies
Arve Finance Cluses (France) 50.17 50.17 50.17
Neocontrol Belo Horizonte (Brazil) 61.00 61.00 61.00

03 STATUTORY AUDITORS' REPORT ON THE 2017 INTERIM FINANCIAL REPORT

03 STATUTORY AUDITORS' REPORT ON THE 2017 INTERIM FINANCIAL REPORT

To the Shareholders,

In compliance with the assignment entrusted to us at your General Meeting and pursuant to Article L. 451-1-2 III of the Monetary and Financial Code, we have proceeded with:

– A limited review of the accompanying condensed consolidated interim financial statements of the company Somfy SA, for the period from 1 January to 30 June 2017;

– A review of the information disclosed in the half-year business report.

Your Management Board is responsible for the preparation of the condensed consolidated interim financial statements. It is our responsibility to express an opinion on these financial statements on the basis of our limited review.

OPINION ON THE FINANCIAL STATEMENTS

We have conducted our limited review in accordance with professional auditing standards applicable in France. A limited review consists principally of making inquiries of persons responsible for financial and accounting matters and applying analytical procedures. The scope is substantially less than an audit conducted in accordance with professional auditing standards applicable in France. Consequently, this review can only provide reasonable assurance, to a lesser degree than an audit, as to whether the interim financial statements are free of material misstatements.

Based on our limited review, nothing has come to our attention that would challenge the compliance of the condensed consolidated interim financial statements with IAS 34 – a standard of the IFRS framework relating to interim financial reporting as adopted within the European Union.

SPECIFIC VERIFICATION

We have also verified the information disclosed in the half-year business report commenting on the condensed consolidated interim financial statements, which were the subject of our limited review.

We have no observation to make with regard to the fairness of such information and its consistency with the condensed consolidated interim financial statements.

Lyon, 6 September 2017

The Statutory Auditors

KPMG Audit ERNST & YOUNG et Autres A division of KPMG SA Lionel Denjean Stéphane Devin Partner Partner

04 STATEMENT FROM THE INDIVIDUAL RESPONSIBLE FOR THE 2017 HALF-YEAR FINANCIAL REPORT

04 STATEMENT FROM THE INDIVIDUAL RESPONSIBLE FOR THE 2017 HALF-YEAR FINANCIAL REPORT

I certify that, to the best of my knowledge, the condensed consolidated interim financial statements have been prepared in accordance with applicable accounting standards and give a true and fair view of the net equity position, financial position and financial performance of the company and all companies included in the consolidation, and that the half-year business report gives a true and fair view of the significant events that occurred during the first six months of the financial year, their impact on the financial statements, the main transactions carried out between related parties, as well as a description of the major risks and uncertainties for the remaining six months of the financial year.

Cluses, 6 September 2017

Pierre RIBEIRO Group CFO

SOMFY SA 50 AVENUE DU NOUVEAU-MONDE BP 152 - 74307 CLUSES CEDEX – FRANCE TEL.: +33 (0) 4 50 96 70 00 www.somfy-groupe.com

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Delisting Announcement 2023
Jan 13
Regulatory Filings 2023
Jan 11
Major Shareholding Notification 2023
Jan 11
Regulatory Filings 2023
Jan 11
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