SOMFY_ANNUAL_FINANCIAL_REPORT_2017

07 CONSOLIDATED FINANCIAL STATEMENTS

OFF-BALANCE SHEET COMMITMENTS NOTE 12 — The Group’s commitments comprise the following:

INVESTMENTS IN ASSOCIATES NOTE 13 AND RELATED PARTIES — INVESTMENTS IN ASSOCIATES NOTE 13.1

COMMITMENTS GIVEN NOTE 12.1

€ thousands

31/12/17 31/12/16

€ thousands

31/12/17 31/12/16

Investments in associates at the beginning of the year Changes in scope of consolidation and other Share of profit/(loss) from associates Changes in foreign exchange rates INVESTMENTS IN ASSOCIATES AT THE END OF THE PERIOD of which Investments in associates of which Other non-current liabilities Dividends paid

1,880

2,258

Guarantees & deposits granted and liability guarantee on CIAT disposal Interest over the remaining terms of loans Rental payments outstanding on operating leases Copper forward purchase Foreign currency forward sale

18,390

19,989

193

–

1,528

1,873

–1,491

–684

–85 –73

–

30,548

27,006

306

3,183

1,323

425

1,880

506

10,073 60,264

TOTAL

54,154

939 514

1,880

–

Interest over the remaining terms of loans is calculated only on those loans with known maturities and not on short-term credit facilities with ad hoc drawings.

“Investments in associates” consists of investments in Neocontrol and Arve Finance. For the purposes of the impairment test on the investment in Neocontrol, a discount rate of 17.0% and a growth rate to infinity of 3.5% were used. An impairment charge of €0.5 million was recorded during the 2017 financial year. Related parties include: the parent company; – companies which exert joint control or a significant influence – over the company; subsidiaries; – associates; – joint ventures; – members of the Management Board, the Supervisory Board and – Associates are companies over which the Group has a significant influence and which are accounted for using the equity method. Transactions with related parties are made on arm’s length terms. € thousands 31/12/17 31/12/16 Sales 3 – Other income 13 – Purchase of goods 134 319 Trade receivables 14 – Trade payables 77 297 RELATED-PARTY DISCLOSURES NOTE 13.2 the Management Committee. Transactions with associates

COMMITMENTS RECEIVED NOTE 12.2

€ thousands

31/12/17 31/12/16

Guarantees & deposits received and liability guarantees (Myfox, iHome)

13,606

15,486

Unused credit lines

207,790 136,205 221,396 151,691

TOTAL

COMMITMENTS TO ACQUIRE ADDITIONAL SHARES NOTE 12.3 IN COMPANIES NOT FULLY-CONSOLIDATED

Due to the lack of specific IFRS provisions and in accordance with the recommendation issued by the AMF on 4 November 2009, the Group opted for the following accounting treatment in relation to commitments to acquire non-controlling interests. Upon initial recognition, these commitments are recognised as financial debt at the discounted acquisition value and offset by a reduction in the value of non-controlling interests. The difference between the book value of the non-controlling interests due to be acquired and the value of the estimated liability is recognised in equity. Somfy held a 61% stake in Neocontrol (equity accounted) at 31 December 2017, with the transaction comprising mutual put and call options for the balance of 39%, which became exercisable in 2017. Somfy exercised its call option and acquired the remaining 39% interest in Neocontrol in January 2018 (see Post-Balance Sheet Event).

This only applied to Arve Finance and Neocontrol, both at 31 December 2017 and 2016.

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SOMFY – ANNUAL FINANCIAL REPORT 2017