THERMADOR GROUPE : 2016 portion of net profit allocated to the group: +2.1%

 * 2016 turnover at constant scope: turnover taking into account acquisitions of Mecafer by Thermador Groupe and Nuair France by Sectoriel, consolidated since July 1, 2015.

Contrary to our forecasts, we recorded a slight drop in turnover in the 4th quarter, which was 1.2% down. This was primarily due to the late onset of winter which is affecting the heating activities of our subsidiary Thermador, and also to the drop in turnover of PBtub and Isocel.
We closed 2016 with turnover up 5.1% (-1.5% on a constant scope) and an operating result up 2.3%at €31.7m. Our net consolidated result increases slightly at €20.6m.

DIVIDEND STEADY AT €3.20 PER SHARE

We are proposing a dividend of €3.20 which corresponds to a distribution rate of 70% and a return of 3.95% on the basis of an average share price of €80.99 in 2016.

Annual General Meeting : Monday April 10, 2017 at 5pm, in Lyon.

PROSPECTS

The number of annual building starts fell by more than 20% between May 2011 and May 2015. Thermador Groupe managed to get through this crisis, whilst maintaining its turnover, profit, and the dividends it pays to its shareholders. Since the end of 2011, we have recruited 120 people on permanent employment contracts, substantially increased our product ranges and stock levels, created two companies, acquired two companies and invested €14m to increase our storage capacities. Over the same period, our equity increased from €108m to 159m, and our cash from €19m to €27m, without recourse to debt. This shows the readiness of our teams and our organisation to make the best of the forecast improvement in finishing orders in the building trade.

In 2017, we are intending to act on several factors to return to growth rates more in line with our expectations.

On the one hand our historic subsidiaries will enjoy a more conducive business climate, coupled with a return to more marked inflation rates. Our youngest companies Axelair and Aello will continue to take market share.

Also, we expect to rebound internationally after last year, which we consider as a stepping stone.

Finally, we will be studying with great care any external growth opportunities. On that note, we are still in discussions with DOMAC, a company based in Vierzon (cf: our press release of 02/12/2016).
Conscious of the challenges, we also wish to become a more substantial player in e-commerce, working in close partnership with wholesalers and DIY superstores which are organising themselves to maintain their business and win over new customers who had, until now, been difficult to access using their conventional commercial structures.

Our last letter to shareholders is on line www.thermador-groupe.fr. Our 2016 annual report will be on line very soon.