SOMFY - Annual Financial Report 2020

05 CONSOLIDATED FINANCIAL STATEMENTS

Somfy SA is a public limited company governed by a Management Board and a Supervisory Board under French law, listed on the Eurolist of Euronext Paris (Compartment A, ISIN Code: FR0013199916). The company name did not change during the financial year. Founded in France in 1969, and today operating in 58 countries, Somfy 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, well-being 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 well-being for all. The company has its registered office at 50, avenue du Nouveau Monde 74300 Cluses in the Haute-Savoie region of France. Its main establishment is in Cluses. Somfy SA is a 52.65%-subsidiary of the French company J.P.J.S. The Group ’s IFRS consolidated financial statements for the 12-month financial year ended 31 December 2020 were approved by the Management Board on 5 March 2021. At its meeting of 10 March 2021, the Supervisory Board, following verification and review, did not issue any observations and duly authorised their publication. Total assets were €1,541,802 thousand and consolidated net profit €212,990 thousand (Group share: €213,008 thousand). All accounting rules and methods are included in the various notes which are grouped by subject and highlighted in colour for greater readability and relevance. ACCOUNTING PRINCIPLES NOTE 1 — CONSOLIDATED FINANCIAL STATEMENTS – BASIS NOTE 1.1 FOR PREPARATION retirement commitments, whose measurement is based on a – number of actuarial assumptions (note 10.2.1 to the consolidated financial statements); provisions and contingent liabilities (notes 9.1 and 9.2 to the – consolidated financial statements);

the measurement of options associated with stock option plans – and free share allocations granted to employees (note 10.3 to the consolidated financial statements); the measurement of certain financial instruments used to hedge – foreign exchange and raw materials, as well as certain options negotiated on the acquisition of equity investments (notes 7.2.2 and 7.2.4 to the consolidated financial statements). As part of the preparation of these annual consolidated financial statements, the main judgments made and the main assumptions used by Management have been updated based on the latest indicators available. At 31 December, the Group reviews its performance indicators and carries out impairment tests if there is any indication that an asset may have been impaired.

The consolidated financial statements are presented in thousands of Euros. All amounts are rounded to the nearest thousand of Euros, unless otherwise specified. The financial statements have been prepared in accordance with the historical cost principle, except for a number of assets and liabilities that were measured at fair value, in particular in relation to derivative instruments. Consolidated financial statements include the financial statements of Somfy SA and its subsidiaries at 31 December of each year. The financial statements of subsidiaries are prepared for the same reference period as the parent company and on the basis of standard accounting methods. The financial year-end of all companies is 31 December. In application of European regulation 1606/2002 of 19 July 2002 on international accounting standards, the Group’s consolidated financial statements for the financial year ended 31 December 2020 have been prepared in accordance with the international financial reporting standards (“IFRS”) applicable at that date, as approved by the European Union at the date of preparation of these financial statements. The preparation of the consolidated financial statements requires Management to make a number of judgments, estimates and assumptions liable to affect the values of assets, liabilities, and income and expense items in the financial statements, and information provided in the notes to the financial statements. Due to the inherently uncertain nature of the assumptions, actual results may differ from estimates. The Group reviews its estimates and assessments on a regular basis to take past experience into account and incorporate factors considered relevant under current economic conditions. The major items of the financial statements that may be subject to estimates are as follows: the impairment of goodwill and intangible assets and property, – plant and equipment, whose measurement is specifically based on future cash flow, discount rate and net realisable value assumptions (note 5.1 to the consolidated financial statements); the lease term and discount rate for property leases (note 5.3 to – the consolidated financial statements); COMPLIANCE WITH ACCOUNTING STANDARDS NOTE 1.2 JUDGEMENTS AND ESTIMATES NOTE 1.3

NEW APPLICABLE STANDARDS AND NOTE 1.4 INTERPRETATIONS

Standards, amendments and interpretations Note 1.4.1

whose application is mandatory for financial years beginning on or after 1 January 2020

The Group has applied the following standards, amendments and interpretations as of 1 January 2020:

Standards

Content

Application date Applicable from 1 January 2020 Applicable from 1 January 2020 Applicable from 1 January 2020 Applicable from 1 June 2020

Amendment to IFRS 3

Definition of a Business

Amendments to IAS 1 and IAS 8 Definition of Material

Amendments to IFRS 9, IAS 39 and IFRS 7

IBOR Reform – Phase 1

Amendment to IFRS 16

Covid-19-Related Rent Concessions

Amendments to the Conceptual Framework in IFRS Standards

Amendments to References to the Conceptual Framework in IFRS Standards

Applicable from 1 January 2020

Other new standards , including amendments to IFRS 9, IAS 39 and IFRS 7 and to IFRS 16, had no material impact on the Group’s results and financial position.

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SOMFY – ANNUAL FINANCIAL REPORT 2020