SOMFY SA (EPA:SO) - Somfy / Financial information for the first quarter of the fiscal year 2020

Transparency directive : regulatory news

21/04/2020 17:35

PRESS RELEASE

21 APRIL 2020

  FINANCIAL INFORMATION FOR THE FIRST QUARTER OF 2020 AND UPDATE ON ACTIVITY
                  LEVELS AT THE DIFFERENT PRODUCTION SITES

Consolidated sales       2020      2019      Var.            Var.
(EUR millions)                               Real      Like-for-like
                                             terms

First quarter           291.3     283.1      +2.9%        +2.8%

Somfy Group has published sales of EUR291.3 million for the first quarter, an
increase of 2.9% in real terms. It has also announced the partial and gradual
restart of operations at its production sites in France, Italy and Tunisia, as
well as at its logistics site in Bonneville.

SALES

Group sales totalled EUR291.3 million for the first three months of the
financial year, an increase of 2.9% in real terms and 2.8% on a Like-for-like
basis. Their growth was 11.7% and 11.1% respectively at the end of the first
two months.

The health crisis caused by the global spread of the Covid-19 virus explains
the downturn seen at the end of the quarter and masks the very successful start
to the year recorded in most of the geographic regions.

The regions most affected by this pandemic have been Latin America (down
1.1%(1)), Asia- Pacific (down 5.2%), France (down 6.7%) and Southern Europe
(down 10.9%) where in March the Group decided to suspend operations at several
production and distribution sites(2) in order to protect employees and
stakeholders and to comply with local administrative recommendations.

By and large, the other territories performed well over the period. This was
particularly the case for Eastern (up 35.5%) and Central Europe (up 11.2%),
which continued to record very sustained growth, and for North America (up
5.4%) and Northern Europe (up 4.5%), as well as for the region made up of
Africa & the Middle East (up 12.5%), which continued its recovery despite a dip
at the end of the period.

Sales of Dooya, an equity-accounted subsidiary, totalled EUR34.8 million over
the first three months of the year, a decline of 17.3% in real terms and 17.0%
on a Like-for-like basis. They fell sharply in China (down 41.6%), where the
effects of the pandemic have been felt since the beginning of the year, but
conversely remained stable in the rest of the World (up 0.1%).

(1) Figures in brackets following the names of geographic regions indicate
changes on a Like-for-like basis for the year to end March. They are calculated
based on customer location.

(2) On 23 March, the Group announced it had suspended its operations at the
production sites in Cluses and Gray, France, Galliera and Schio, Italy, and
Zaghouan, Tunisia, as well as at the logistics centre in Bonneville, France.

UPDATE ON THE SITES

The Group has worked to introduce a safety protocol following the suspension in
March 2020 of its operations at the production sites in France, Italy and
Tunisia, as well as at the logistics site in Bonneville, in order to strengthen
barrier measures.

The tests that have been successfully carried out since the end of March mean
that a secure working environment is now guaranteed.

The measures taken are both at an individual (questionnaire on symptoms,
provision of protective equipment, improved health measures, etc.) and
collective level (traffic diagram to separate flows, closure of changing
facilities and canteens, systemisation of cleaning, etc.). They have been
adopted in partnership with internal stakeholders and tailored to the local
authority recommendations.

Full restart of operations now would compromise the complete safety of
employees.

That is why the Group has decided to choose a partial and gradual restart of
operations at the above-mentioned sites and to review its position at a later
date according to the changes in health and safety conditions.

The production sites in China and Poland are continuing their activities, and
are subject to the daily monitoring and assessment of their respective
situations.

OUTLOOK

The decline in sales recorded in March(3) is likely to continue and could even
increase during the second quarter, notably in Europe and America, where many
sectors, including construction, have been significantly impacted by the
current health crisis. It will therefore have an even greater impact on sales
and, indirectly, first half results, particularly as spring is structurally a
key season due to the seasonality of the sales of blinds(4).

However, the close relationship with customers, the flexibility of the
manufacturing and logistics bases and the secure financial footing will enable
the Group to navigate this difficult period with confidence and, above all, to
be in an optimum position to handle any resumption in activity.

(3) Group sales decreased by 12.7% in real terms and 12.0% on a Like-for-like
basis in March. It should be noted that this decline is an average as the trend
was still positive at the start of the month.

(4) Second quarter sales stood at 54% of sales for the first half of the 2019
financial year.

CORPORATE PROFILE

Founded in 1969 in the Arve Valley, in the Haute-Savoie region of France, and
now operating in 58 countries, Somfy is the preferred partner for window and
door automation and a pioneer in the connected home. The Group is constantly
innovating to guarantee its customers comfort, wellbeing and security and is
committed to promoting sustainable development.

CONTACTS

Somfy: Pierre Ribeiro: +33 (0)4 50 40 48 49
Shan: François-Xavier Dupont: +33 (0)1 44 50 58 74 /
Alexandre Daudin: +33 (0)1 44 50 51 76

SHAREHOLDERS' AGENDA

Annual General Meeting: 24 June 2020, at the Company's registered office
Publication of half-year sales: 21 July 2020 after close of trading

APPENDICES

Geographical analysis of sales

Consolidated data       2020      2019       Var.          Var.
(EUR millions)                               Real     Like-for-like
                                             terms

Central Europe          59.7      53.3      +11.9%      +11.2%
Northern Europe         32.7      31.3       +4.3%       +4.5%
North America           26.4      24.3       +8.5%       +5.4%
Latin America            5.2       5.7       -9.8%       -1.1%
Total North & West     123.9     114.7       +8.0%       +7.5%
France                  81.7      87.5       -6.7%       -6.7%
Southern Europe         26.6      29.6      -10.2%      -10.9%
Africa & the
Middle East             16.0      14.5      +10.5%      +12.5%
Eastern Europe          28.1      20.8      +35.0%      +35.5%
Asia-Pacific            15.0      16.0       -6.1%       -5.2%
Total South & East     167.4     168.4       -0.6%       -0.4%
Total Group            291.3     283.1       +2.9%       +2.8%

Reconciliation of changes on a Like-for-like basis and on real terms
- Quarterly sales:

Change on a Like-for-like basis             +2.8%
Forex impact                                +0.1%
Scope impact                                   -
Change in real terms                        +2.9%

GLOSSARY

Sales

The sales figures provided refer to the sales amounts generated with customers
outside the Group. They are calculated based on customer location and therefore
the destination of the sales.

Change in real terms

The change in real terms corresponds to the change on an actual consolidation
scope and exchange rate basis.

Change on a Like-for-like basis

The change on a Like-for-like basis corresponds to the change at constant
consolidation method, consolidation scope and exchange rates.

Geographic regions

The Group is organised into two geographic divisions, the first made up of
Central Europe, Northern Europe, North America and Latin America (North &
West), and the second made up of France, Southern Europe, Africa & the Middle
East, Eastern Europe and Asia Pacific (South & East).

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SOMFY SA (EPA:SO) - Somfy / Financial information for the first quarter of the fiscal year 2020

Transparency directive : regulatory news

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