SOMFY - Annual Financial Report 2020

05 CONSOLIDATED FINANCIAL STATEMENTS

PERFORMANCE-RELATED DATA NOTE 4 — SALES NOTE 4.1

customer with any service other than the assurance that the product is free from defect and therefore continue to be recognised in accordance with IAS 37 – Provisions, Contingent Liabilities and Contingent Assets. The amount that Somfy actually receives as consideration for the products delivered, as well as the revenue from sales recorded in the income statement may vary due to deferred discounts agreed by contractual agreements or at the start of commercial campaigns. These discounts will be paid to the customer at the end of the reference period subject to the achievement of the objectives set for the relevant period. Their value is determined using the expected value method. As for projects combining products and services, except as mentioned below, supplies of goods and services are identified as two separate performance obligations, which must be assessed individually as if they were sold separately. Revenue from products is thus recognised at the date of delivery or shipment, while revenue from services is recognised when the service is provided. When the products and services relate to a large-scale project whose characteristics are set for each customer individually, they represent a single performance obligation and revenue is recognised on an ongoing basis over the duration of the project as costs are incurred.

Revenue recognition is based on an analysis that includes five successive steps, in accordance with IFRS 15 – Revenue from Contracts with Customers: identify the contract; – identify the various performance obligations, i.e. list the – distinct goods or services the seller is committed to supply to the purchaser; determine the total price of the contract; – allocate the total price to each performance obligation; – recognise revenue when a performance obligation is – satisfied. With regard to the sale of products, the Group acts on its own behalf and not as an agent. Product sales are generally the only performance obligation of the contracts. Revenue is recognised when control of the goods is transferred to the purchaser, in this case when the delivery or shipment has been made. The warranties offered to purchasers cover defects in the design or manufacture of products. They do not provide the

Sales by customer location Note 4.1.1

This presentation by customer location was supplemented by our segment reporting pursuant to IFRS 8, which is based on the geographic regions in which our assets are based, namely the North & West and South & East regions. € thousands 31/12/20 31/12/19 Change N/N-1 Change N/N-1 on a like-for-like basis Central Europe 261,044 231,716 12.7% 12.2% of which Germany 212,185 186,538 13.7% 13.7% Northern Europe 146,613 134,911 8.7% 9.5% North America 107,127 102,972 4.0% 6.2% Latin America 19,286 23,331 -17.3% -2.1% NORTH & WEST 534,069 492,930 8.3% 9.5% France 347,444 341,548 1.7% 1.7% Southern Europe 119,880 121,910 -1.7% -1.8% Africa & the Middle East 60,604 64,236 -5.7% 1.6% Eastern Europe 127,187 107,099 18.8% 23.2% Asia-Pacific 67,943 72,518 -6.3% -4.3% SOUTH & EAST 723,059 707,312 2.2% 3.7% TOTAL SALES 1,257,128 1,200,241 4.7% 6.1% The change N/N-1 on a like-for-like basis is calculated by applying the N-1 exchange rates to the periods compared and using the N-1 scope for both financial years (see note 4.3.1). As contracts with customers are expected to have an initial term of one year or less, no information is provided regarding any remaining obligations at 31 December 2020 and 31 December 2019, in accordance with the simplification measures of IFRS 15.

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SOMFY – ANNUAL FINANCIAL REPORT 2020