SOMFY - Annual Financial Report 2020

05 CONSOLIDATED FINANCIAL STATEMENTS

Sales are expected to grow in 2021, with the current operating margin rate returning to pre-crisis levels. For the purposes of the impairment test on the investment in Dooya, a discount rate of 12.5% (unchanged from 31 December 2019) and a growth rate to infinity of 2.3% (2.75% at 31 December 2019) were used. No impairment charge was recorded during the 2020 financial year. A three-point increase in the discount rate combined with a three-point decrease in the EBITDA to sales ratio in the normative flow used in the calculation of the terminal value could lead to a €6 million impairment loss on equity-accounted securities. 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 – NOTE 13.2 RELATED-PARTY DISCLOSURES Associates are companies over which the Group has a significant influence or joint control and which are consolidated using the equity method. Transactions with related parties are made on arm’s length terms. Group purchases from Dooya totalled €3.0 million for the year to 31 December 2020 and €4.0 million for the year to 31 December 2019. Group trade payables with Dooya stood at €0.3 million at 31 December 2020 and €0.6 million at 31 December 2019. Transactions with other related parties involved negligible amounts. the Management Committee. Transactions with associates

€ thousands

31/12/20 31/12/19

Consolidated cash flow statement Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing and capital activities

34,212 18,214 -2,309 -4,010

-11,029 -4,566

At 31 December 2020, the Group reviewed the value of equity-accounted investments. The recoverable amount of an equity investment is measured at the higher of its fair value, after deduction of disposal costs, and its value in use. If the recoverable amount exceeds the net book value of the investment in the associate at the end of the period, no impairment is recognised. However, if this amount is lower than the net book value, an impairment loss equal to the difference is recognised in priority against goodwill. Goodwill related to equity-accounted companies is posted to the “Investments in associates and joint ventures” account. Impairment recorded on the equity-accounted value may be reversed in the event of a significant recovery in the value of the equity investment. Fair value after deduction of disposal costs is the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, after deducting disposal costs. Value in use is determined based on cash flows, which are estimated using plans or budgets over a maximum period of five years; the cash flows beyond that date are extrapolated by applying a constant or decreasing rate of change, and are discounted by using long-term post-tax market rates, which reflect the market’s estimates of the time value of money and the specific risks inherent to the assets. In certain cases, cash flows can be estimated over longer periods, to be justified equity investment by equity investment.

STATUTORY AUDITORS’ FEES NOTE 14 — Pursuant to regulation n°2016-09 issued by the Autorité des Normes Comptables (ANC), the following table indicates the fees net of tax (excluding disbursements) paid by the parent company and its subsidiaries to the Statutory Auditors for their terms of office:

Ernst & Young

KPMG

Total

€ thousands

2020

2019

2020

2019

2020

2019

Certification of financial statements Issuer

180

177

102 660 761

100 683 782

78

77

Subsidiaries

1,065 1,245

1,070 1,246

405 484

387 464

Sub-total

Other services* Issuer

70

56

14

46

57 22 78

10 55 65

Subsidiaries

153 223

246 301

131 145 906

191 237

Sub-total

TOTAL 1,548 These services cover services required by law and regulations (reports on capital increases, comfort letters, etc.) as well as services provided at the * request of Somfy and its subsidiaries (due diligence, legal and tax assistance and various certifications). 1,019 562 529 1,468

148

SOMFY – ANNUAL FINANCIAL REPORT 2020