U10 : 2017 Annual report – excerpt

INTERNATIONAL SUPPLIER

OF HOME DECORATION ARTICLES

Excerpt from the Annual Report 2017

Translation disclaimer:This document is a free translation of the French language version of the consolidated financial statements for the twelve-month period ended 31 December 2017 produced for the convenience of English speaking readers. In the event of any ambiguity or conflict between statements or other items contained herein and the original French version, the relevant statement or item of the French version shall prevail. While all possible care has been taken to ensure that this translation is an accurate representation of the original French document, this English version has not been audited by the company's statutory auditors and in all matters of interpretation of information, views or opinions expressed therein, only the original language version of the document in French is legally binding. As such, this transla tion may not be relied upon to sustain any legal claim, nor be used as the basis of any legal opinion and U10 expressly disclaims all liability for any inaccuracy herein.

Figures in presented herein (excluding tables) expressed as "K€" in the original French document have been rounded off accordingly to the nearest thousandth (000s).

CONSOLIDATEDFINANCIAL STATEMENTS 2017

Consolidated financial statementsat 31 Decembre 2017

1. Consolidated balance sheet 4

2. Consolidated income statement and statement of comprehensive income 5

2.1. Consolidated income statement 5

2.2. Statement of comprehensive income 5

3. Consolidated statement of cash flows 6

4. Statement of changes in consolidated shareholders' equity 7

5. Notes to the consolidated financial statements 7

5.1. Significant accounting policies 7

5.2. Notes to the balance sheet 11

5.2.1. Non-current assets 11

5.2.1.1. Goodwill 12

5.2.1.2. Intangible assets 12

5.2.1.3. Property, plant and equipment 13

5.2.1.4. Investments and other non-current assets 14

5.2.2. Current assets 14

5.2.2.1. Inventories 14

5.2.2.2. Receivables 14

5.2.2.3. Cash and cash equivalents 15

5.2.3. Shareholders' equity 15

5.2.3.1. Stock option plans 15

5.2.3.2. Share capital 15

5.2.3.3. Dividends paid to parent company shareholders 16

5.2.4. Provisions 16

5.2.5. Payables 17

5.2.5.1. Net financial debt 17

5.2.5.2. Current payables 18

5.2.5.3. Financial instruments 19

5.3. Notes to the income statement 19

5.3.1. Revenue 19

5.3.2. Current operating income 19

5.3.2.1. Staff costs and workforce 19

5.3.2.2. Other net operating income and expenses 19

5.3.3. Net allowances for depreciation and reserves 20

5.3.4. Non-current operating income and expenses 20

5.3.5. Financial expenses and income 20

5.3.6. Income tax 20

5.3.7. Earnings per share 21

5.4. Segment reporting 21

5.5. Pro forma income statement 22

5.6. Off-balance sheet commitments 23

5.7. Related parties 24

5.7.1. Related parties 24

5.7.2. Compensation of directors and officers 24

5.8. Information on lease agreements 24

5.9. Subsequent events 24

5.10. Fees paid to Auditors and members of their network by the Group 24

1. Consolidated balance sheet

ASSETS

(€ thousands)

Note

2017

Gross value

2016

Amortisations

Net

Net

Goodwill

Other intangible assets Property, plant and equipment Financial assets

Deferred tax assets

5.2.1.1

5.2.1.2

5.2.1.3

5.2.1.4

5.3.6

47,468

33,364

3,273

3,294

816

47,468

2,849 13,629 0 0

50,176

423 19,735 3,294 816

324 20,673 3,802 550

Total non-current assets

88,215

16,478

71,737

75,525

Inventories Customers Current taxes

Other receivables and prepaid expenses Cash and cash equivalents

5.2.2.1

5.2.2.2

5.2.2.2

5.2.2.2

5.2.2.3

58,054

278

37,721

449

2,184

0

9,190

2,162

16,105

57,776

52,755

37,272

35,165

2,184

618

7,028

10,347

0

16,105

32,902

Total current assets

123,254

2,889

120,365

131,787

TOTAL

211,469

19,367

192,102

207,312

SHAREHOLDERS' EQUITY AND LIABILITIES

(€ thousands)

Capital

Additional paid-in capital Treasury shares Reserves and income

Shareholders' equity attributable to the Group

Note

2017

2016

17,261 12,807 -78 57,98787,976

18,640 12,807 -101 70,644101,990

Non-controlling interests

Total shareholders' equity

5,64393,620

5,835107,825

Long-term debt Non-current provisions Deferred tax liabilitiesTotal non-current liabilities

5.2.5.1 5.2.4 5.3.6

25,408 1,227 1,49728,132

29,816 1,161 2,57133,548

Current portion of long-term debt Short-term debt

Current provisions

Trade payables and related accounts Corporate income tax liabilities Other current liabilities

Total current liabilities

5.2.5.1

5.2.5.1

5.2.4

5.2.5.2

5.2.5.2

5.2.5.2

5,446

4,364

32,315

28,127

218

225

22,014

24,476

50

163

10,30770,350

8,58565,939

TOTAL

4|Consolidated financial statements 2017

192,102

207,312

2. Consolidated income statement and statement of comprehensive income2.1. Consolidated income statement

Earnings per share were stated in the 2016 financial statements at€0.37, before the capital reduction by the cancellation in shares approved by the shareholders' general meeting of 15 June 2017.

2.2. Statement of comprehensive income

All other comprehensive income items are destined to be recycled in profit or loss, with the exception of actuarial gains and losses on retirement liabilities.