SOMFY - Annual Financial Report 2020

05 CONSOLIDATED FINANCIAL STATEMENTS

TAX PROOF NOTE 11.1

€ thousands

31/12/20 254,643

31/12/19 196,533

Profit before tax from continuing operations

Share of expenses on dividends

1,525

1,391

Goodwill impairment

711

710

Reclassification of CVAE to Income tax

-4,783 -5,966 2,355 -6,159 -37,096 211,388 32.02% 67,693

-4,132 -6,639

Reclassification of CIR to Other operating income

Other

-248

Permanent differences

-8,918 -32,005 155,610 34.43% 53,576

Net profit taxed at reduced rate Net profit taxable at standard rate

Tax rate in France

Tax charge recalculated at the French standard rate

Tax at reduced rate

3,832

3,306

Difference in standard rate in foreign countries

-25,143

-22,333

Tax losses for the year, unrecognised in previous periods, deficits used

-126

330

Effect of the rate difference

-25,269

-22,003 -1,919

Tax credits

-950

Other taxes and miscellaneous

7,205

4,210

GROUP TAX

52,511 20.62%

37,170 18.91%

Effective rate

The results taxed at a reduced rate in France involve patent royalties, which were taxed at 10.33%. In France, the ordinary taxation rate fell from 34.43% in 2019 to 32.02% in 2020, in line with the gradual reduction in the normal rate of corporate income tax. The main countries that contributed to the difference in the tax rate were Tunisia (€13.0 million), other European countries (€4.6 million), Poland (€4.0 million), Middle Eastern countries (€0.9 million), the United States (€1.1 million) and Germany (€0.6 million). Tax credits were primarily affected by the SOPEM tax credit (Poland): €0.7 million in 2020 compared with €1.6 million in 2019. In 2020, the “ Other taxes and miscellaneous ” item notably included €4.8 million in respect of the CVAE corporate value-added contribution and €0.9 million in respect of the impact of the change in the taxation rate. In 2019, this item mainly consisted of €4.1 million in respect of the CVAE contribution. Current tax assets and liabilities The change in tax liabilities and receivables was due to the effect of tax instalments and to the change in tax expense from one financial year to another. Retained losses capitalised or used Deferred tax relating to tax losses was not capitalised where it was deemed unlikely that future taxable profits will be sufficient to absorb unused previous tax losses. The total amount of these losses was €50.0 million at the end of 2020, based on the standard tax rate, compared with €54.9 million at the end of 2019. No significant deferred tax assets were recognised in 2019 in relation to tax losses arising during the financial year or in previous years.

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SOMFY – ANNUAL FINANCIAL REPORT 2020