2010: A year of strong recovery - Declared ambitions

Socomec group

Growth
• Turnover (M€)
• Workforce

Operating profit (EBIT) (M€)
% of turn-over

Corporate financing (M€)
• Equity capital

• % of corporate borrowing on equity capital

2010 Financial results: Recovery after the crisis
After a year of economic crisis that the Socomec Group withstood quite well, the level of business activity in 2010 saw an upturn of 23 % to reach 383 M€. In erasing the drop of 5.8 % in turnover that occurred in 2009, the year 2010 represents a healthy increase of 16.3 % compared to 2008.
The company’s policy of internationalisation remains unchanged. The Asian countries, especially China and India, have been the main incubator for growth. Europe too has been making progress, particularly in Italy (where the new Solar division was launched in 2009, with turnover of 13.5 M€) and Romania, thanks to the acquisition of a local distributor.
With the integration of Vertelis, one of France’s leading energy management web portals, Socomec is now in the position to propose one of the most accomplished and high-performance offers on the emerging energy efficiency market, providing solutions from the energy sensor to the web portal.

Encouraging results
Operating profit (EBIT) has benefitted from the upturn to reach 9.7 % compared to 8.6 % in 2009. The rises in the cost of raw materials and the scarcity of components, which have been amplified by the extent of the recovery, have of course had consequences for profit margins. Despite the important resources allocated to the sales force and R&D, expenditure remains tightly under control.
Net profit therefore is posted at 6 % of turnover.

Heading for 2020
The Socomec Group was able finally to come through the crisis relatively unscathed. The road map has been traced: to reach a billion euros in turnover by 2020 ! Backed by its two historic divisions, SCP (Solutions for Control & Power) and UPS (Uninterruptible Power Supplies), the company intends to take advantage of the impetus provided by its new markets in the PV and Energy Efficiency markets to triple its turnover over the next 10 years.
The perspectives for 2011 are part of this impetus. Despite an expected slowing down in world growth, the company’s sales should increase by 13.6 %. The Solar division, launched in 2009, is expected to confirm the promise shown by the performance given in 2010. The new Energy Efficiency speciality will for the moment have only a marginal impact on the figures but will be making its presence felt in the commercial networks.

Sound capital structure
Socomec continues the consolidation of its capital structure. The acquisition of Vertelis has not impeded this trend, and the minimal debt ratio has enabled the company to ride out the crisis and to finance recovery. In addition, the company’s healthy financial position offers the means to finance corporate ambitions over the next ten years.
 

Responsible growth
The priority given by Socomec to innovation, the control over its international growth and its approach to responsible economic development have been recognized by winning the 2011 Family-owned and Sole Proprietor Business trophy awarded by the French association of medium-sized and family-owned businesses (ASMEP-ETI). An award that recognizes significant economic success, but also concrete actions in the fields of social and environmental responsibility.