SOMFY SA (EPA:SO) - Somfy / 2020 Full Year Results

Transparency directive : regulatory news

10/03/2021 17:45

PRESS RELEASE
10 MARCH 2021

                       STRONG GROWTH IN PROFITS IN 2020
                       GRADUAL RETURN TO NORMAL IN 2021

Consolidated data to 31 December
(EUR millions)                      2020         2019          Change
Sales                             1,257.1      1,200.2         +4.7%
Current operating result            260.7        204.8        +27.3%
Consolidated net profit             213.0        163.2        +30.5%
Cash flow                           274.5        220.1        +24.7%

Somfy announces significant growth in profits, thanks to the upturn in sales
over the second half-year following a first half disrupted by the Covid
pandemic, and to the improvement in current operating margin, given the
non-recurring savings made during the crisis.

SALES

Group sales were EUR1,257.1 million for the financial year just ended, an
increase of 4.7% compared with the previous financial year (up 6.1% on a
like-for-like basis). They fell 7.5% over the first six months (down 7.2% on a
like-for-like basis), due to the health crisis stemming from the Covid-19
pandemic, and recorded an upturn of 17.6% in the second half- year (up 20.1% on
a like-for-like basis).

Several regions ended the financial year on a clear positive trend, as was the
case for Eastern Europe and Central Europe, which again performed very
strongly, as well as Northern Europe and North America, which both performed
well.

The other territories were more adversely affected by the crisis, due in
particular to the unavoidable operational disruption and interruption caused by
the lockdown measures in the spring, but showed good resilience over the year
as a whole. This was the case for France and the Africa & the Middle East
region, as well as for Southern Europe and Latin America.

All regions recovered over the second six months and several of them succeeded
in offsetting a large proportion of the fall recorded between March and May.
Their recovery is all the more encouraging given that it is not based on a
period of several weeks, meaning it was merely a question of catching up, but
on the entire third and fourth quarters. It also provides evidence of a base
trend that was confirmed - even accentuated - by recent events, as a result of
the increasingly important role played by the home in everyone's lives, notably
due to the increase in remote working and the development of online services.

Sales for the equity-accounted Chinese subsidiary Dooya totalled EUR201.1
million over the financial year, an increase of 7.3% in real terms and 9.2% on
a like-for-like basis. They fell in China, a country severely impacted by the
pandemic early in the year, but grew strongly in the rest of the World.

RESULTS

Current operating result stood at EUR260.7 million for the financial year just
ended, up 27.3% (up 31.3% on a like-for-like basis), and thus represented 20.7%
of sales, compared with 17.1% the previous year.

The combined effect of the recovery in sales recorded in the second half-year,
a favourable mix of products, and cost savings stemming from the measures taken
within the context of the health crisis is behind this growth, which is
partially non-structural given the exceptional and provisional nature of these
measures (reduction in consulting, marketing and travel budgets).

The impact of the pandemic was particularly pronounced over the first half of
the year with, on the one hand, a substantial loss in income, due to the loss
in revenues, and on the other, significant production and supply chain
disruption, due to the temporary shutdown of several manufacturing sites and
disorganisation of certain sources of supply.

Conversely, the protective measures have had a moderate impact on the financial
statements, even though the safety of employees and compliance with guidelines
from the administrative authorities, as well as the safeguarding of jobs, have
been the priorities. The impact of external support also proved to be marginal
since the decision was taken to make minimal use of it in certain countries.

Consolidated net profit totalled EUR213.0 million, an increase of 30.5%. It
takes into account a positive contribution of EUR10.9 million from associates,
thanks to the improvement recorded at Dooya, and EUR52.5 million in income tax.

The return on capital employed (ROCE) stood at 29.6%, compared with 22.2% the
previous year, testament to the quality of these results.

FINANCIAL POSITION

Shareholders' equity grew from EUR1,012.8 to EUR1,171.0 million over the
financial year just ended, and the net financial surplus increased from
EUR310.5 to EUR517.7 million.

The growth in net financial surplus was due to the increase in cash flow, the
decline in working capital requirements and the relative stability of other
cash flow items.

DIVIDEND

The Management Board will propose the payment of a dividend of EUR1.85 per
share at the next Annual General Meeting, corresponding to a pay-out ratio of
32%, in line with pre-crisis ratios.

OUTLOOK

The recent period has made it possible to gauge the strength of the residential
and commercial digitalisation market, and as such to better measure the impact
of the digital revolution, demographic and society changes and the energy
transition on the demand for automated and connected solutions.

However, visibility remains limited over the short-term due to the ongoing
uncertainty regarding the development of the current health and economic
crisis.

Nevertheless, growth in sales is expected over the current financial year. It
should be all the stronger over the first six months given that the base effect
will play out favourably in major regions such as France, Southern Europe and
North America.

Similarly, a return of the current operating margin to pre-crisis levels is
envisioned as there will be no renewal of savings made last year in the fields
of consulting and marketing.

The current financial year will also see the roll-out of the new strategic
plan, Ambition 2030, with the aim of seeking increased efficiency in processes
and an optimised allocation of resources by harmonising practices and
increasing synergies, as well as increased added value in terms of the range,
thanks to the digitalisation of products, the interoperability of solutions and
the development of services.

Potential acquisitions will also continue to be assessed in parallel and
implemented where appropriate, as can be seen in the recent takeover of
Repar'stores, the French specialist in the restoration of roller shutters(1).

(1) Repar'stores, founded in 2009, is currently the French leader of the
fast-growing roller shutter modernisation and repair market. It employs more
than 100 staff and has approximately 190 franchisees, and has revenues in the
region of EUR30 million.

CORPORATE PROFILE

Founded in France in 1969, and today operating in 58 countries, Somfy Group is
the global leader in opening and closing automation for both residential and
commercial buildings.

A pioneer in the connected home, the Group is constantly innovating to
guarantee comfort, wellbeing and security in the home and is fully committed to
promoting sustainable development.

For 50 years, Somfy has been using automation to improve living environments
and has been committed to creating reliable and sustainable solutions, which
help promote better living and wellbeing for all.

FINANCIAL STATEMENTS

The annual financial statements have been audited by the Statutory Auditors and
were reviewed by the Supervisory Board on 10 March 2021.

The Statutory Auditors' reports, which are in the process of being issued, and
detailed financial statements will be released on 28 April 2021 and will be
available on the Company's website (www.somfyfinance.com).

DISCLAIMER

The Group has not been adversely affected by Brexit to date and does not expect
to be in the future. It may, however, be further impacted by the health crisis
if new restrictive measures are imposed in its main regions of operation
(Europe, the United States and China).

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

Publication of first quarter sales: 20 April 2021
Publication of the Annual Financial Report: 28 April 2021 (as opposed to 15
April 2021 as originally scheduled)
Annual General Meeting: 2 June 2021

GLOSSARY

Sales: The sales figures 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 at
actual consolidation method and scope, and actual exchange rates.

Change on a like-for-like basis: The change on a like-for-like basis
corresponds to the change at constant consolidation method and scope, and
constant 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).

Current operating margin: Current operating margin corresponds to current
operating result as a proportion of sales (COR/Sales).

Return on capital employed: The return on capital employed is equal to the
ratio between current operating result less normative tax, and total
shareholders' equity, after offsetting the impact of goodwill impairment, and
net financial debt.

Net financial surplus: The net financial surplus corresponds to the difference
between cash and cash equivalents and financial liabilities.

APPENDICES

SALES

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

Central Europe               261.0      231.7     +12.7%     +12.2%
of which Germany             212.2      186.5     +13.7%     +13.7%
Northern Europe              146.6      134.9      +8.7%      +9.5%
North America                107.1      103.0      +4.0%      +6.2%
Latin America                 19.3       23.3     -17.3%      -2.1%
Total North & West           534.1      492.9      +8.3%      +9.5%
France                       347.4      341.5      +1.7%      +1.7%
Southern Europe              119.9      121.9      -1.7%      -1.8%
Africa & the Middle East      60.6       64.2      -5.7%      +1.6%
Eastern Europe               127.2      107.1     +18.8%     +23.2%
Asia-Pacific                  67.9       72.5      -6.3%      -4.3%
Total South & East           723.1      707.3      +2.2%      +3.7%
Group Total                1,257.1    1,200.2      +4.7%      +6.1%

CONDENSED INCOME STATEMENT

Consolidated data
(EUR millions)                     2020           2019

Sales                           1,257.1        1,200.2
EBITDA                            322.4          262.4
Current operating result          260.7          204.8
Non-recurring operating items      (0.9)          (3.2)
Net financial expense              (5.1)          (5.1)
Income tax                        (52.5)         (37.2)
Share of net profit from
associates and joint ventures      10.9            3.8
Consolidated net profit           213.0          163.2
Attributable to Non-controlling
interests                           0.0            0.0
Attributable to Group share       213.0          163.2

RECONCILIATION OF CHANGES IN SALES AND CURRENT OPERATING RESULT ON A
LIKE-FOR-LIKE BASIS AND IN REAL TERMS

                                         Sales            COR
Change on a like-for-like basis          +6.1%         +31.3%
Forex impact                             -1.4%          -4.0%
Scope impact                                0              0
Impact of change in accounting policy       0              0
Change in real terms                     +4.7%         +27.3%

CONDENSED CASH FLOW STATEMENT

Consolidated data (EUR millions)                2020          2019
Cash flow                                      274.5         220.1
Change in working capital requirements          40.1          25.7
Net cash flow from operating activities        316.9         247.8
Net cash flow from investing activities        (48.9)        (51.6)
Net cash flow from financing and equity
activities                                     (60.0)        (65.5)
Net change in cash and cash equivalents        202.3         132.8

CONDENSED BALANCE SHEET

Consolidated data (EUR millions)              2020           2019
Equity                                     1,171.0        1,012.8
Goodwill                                      94.4           95.6
Net non-current assets                       337.7          340.7
Investments in associates
and joint ventures                           145.5          136.5
Working capital                              669.6          515.6
Working capital requirements                 111.1          159.8
Net financial surplus                        517.7          310.5

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24/01/2023 17:35

SOMFY SA (EPA:SO) - Somfy / 2020 Full Year Results

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