SOMFY - Annual Financial Report 2020

05 CONSOLIDATED FINANCIAL STATEMENTS

Amount at 31 December 2019

Assets and liabilities at amortised cost (1) (Fair value equal to net book value)

Financial assets and liabilities (2) (Fair value recognised in items of other comprehensive income)

Financial assets and liabilities (3) (Fair value recognised in income statement)

Fair value hierarchy (2 & 3)

€ thousands

Assets Non-current financial assets Current financial assets Current derivative instruments Cash and cash equivalents Liabilities Non-current financial liabilities Current financial liabilities Non-current derivative instruments

4,216

2,258

1,959

– – –

Level 3

477 160

477

–

–

160

Level 2 Level 2

387,547

387,474

–

73

45,030 32,267

40,009 14,273

2,227

2,794

Level 3 Level 3 Level 2

–

17,994

511

–

328

183

The net book value of current assets and liabilities is deemed to be a reasonable approximation of their fair value due to their short-term nature. For variable rate borrowings and debt, net book value is deemed to be a reasonable approximation of their fair value. The fair value of derivative instruments and cash equivalents is established with reference to observable market data (Level 2). Non-consolidated equity instruments, as well as earnouts and options related to business acquisitions are measured at their balance sheet

fair value, based in particular on the future earnings prospects of the businesses acquired (Level 3). There has been no change in the method of determining fair value for any category during the period. Cash and cash equivalents Note 7.2.5

Cash includes bank balances (bank assets and overdrafts) and cash in hand. Cash equivalents are short-term and very liquid deposits, easily convertible into a known amount of cash and subject to a negligible risk of unfavourable change in value.

€ thousands

31/12/20 439,460 149,464 588,925

31/12/19 253,874 133,673 387,547

Cash

Cash equivalents

CASH AND CASH EQUIVALENTS

Cash equivalents are mainly interest-bearing current accounts and term deposits with maturities of less than three months.

134

SOMFY – ANNUAL FINANCIAL REPORT 2020