SOMFY - Annual Financial Report 2020

06 PARENT COMPANY FINANCIAL STATEMENTS

E – CONSOLIDATING ENTITY — Somfy SA is a 52.65%-subsidiary of the company J.P.J.S. which is the consolidating parent company. F - NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS AT 31 DECEMBER 2020 —

at its meeting of 25 November 2020, allocation of Somfy – performance shares to 3 beneficiaries. The vesting of these performance shares is subject to the condition that they must remain employed by the Group. Final vesting will take place on 28 November 2022. The shares vested will be available from 29 November 2022 and will not be subject to a retention obligation. ACCOUNTS RECEIVABLE FROM EQUITY INVESTMENTS, BONDS RECEIVABLE AND OTHER RECEIVABLES Receivables are carried at their nominal value. A provision for impairment is recorded when their estimated realisable value falls below carrying value and based upon the probability of their recovery. When the equity of investments becomes negative, a provision for impairment is recorded with reference to the above estimated realisable value. Accrued interest on bonds receivables are capitalised at each year-end. Foreign currency denominated income and expenses are recorded at their equivalent value at the transaction date. Foreign currency denominated debts, receivables and cash are recognised in the balance sheet at their exchange rate on the balance sheet date. The difference resulting from the translation of foreign currency debts and receivables at the balance sheet date exchange rate is recognised in the balance sheet as a “Translation adjustment”. At 31 December 2020, “Asset” and “Liability” translation adjustments of €9,592 thousand and €7 thousand respectively, were classified under “Other receivables and accruals” and “Other liabilities and accruals”, respectively. Unrealised foreign exchange losses resulting from the net exchange position by currency recorded on assets and liabilities at the balance sheet date are recorded as a provision for foreign exchange losses. FOREIGN CURRENCY DENOMINATED TRANSACTIONS

OPERATING ITEMS NOTE 1 —

Somfy SA sales for the year to 31 December 2020 were €3.9 million, an increase compared with the previous year. The operating loss was €9.0 million, compared with a loss of €9.8 million in 2019.

SALES BREAKDOWN NOTE 1.1

€ thousands France

2,242 1,197

European Union

Non-EU

423

TOTAL

3,862

DIRECTORS’ REMUNERATION NOTE 1.2

€ thousands Remuneration allotted to members of the Management Board – to members of the Supervisory Board –

1,168

374 N/A

Pension commitments subscribed

WORKFORCE AT 31 DECEMBER 2020 NOTE 1.3

BORROWINGS AND DEBTS FROM CREDIT INSTITUTIONS

Borrowings and debts from credit institutions are recorded on the balance sheet at their net value. Accrued interest is recorded on the balance sheet with the related borrowings. At 31 December 2020, the company complied with all financial covenants imposed by banks on its borrowing facilities.

Male Female

Total

11

Managers & executives

8

3

In respect of 2020, the average headcount of managers & executives was 11, as was the case in 2019. FINANCIAL ITEMS NOTE 2 — The net financial income of the Somfy SA holding company was €107.7 million, compared with €122.1 million in 2019, a decline of €14.4 million. Dividends received decreased by €19.2 million. EXTRAORDINARY ITEMS NOTE 3 — Net extraordinary loss was €58 thousand compared with €313 thousand in 2019, and was primarily comprised of losses on financial receivables.

HEDGING TRANSACTIONS

Somfy SA has been applying the new ANC 2015-05 regulation relating to forward financial instruments and hedging transactions since 1 January 2017. In the context of relationships qualifying as hedges, the company recognises the impacts of the hedging instrument on the income statement on a symmetric basis, together with the income or expense related to the hedged item, irrespective of the market in which the hedging instruments are traded. In the case of isolated open positions, the company records changes in the value of derivatives on the balance sheet and provisions are recognised for unrealised losses on these derivatives. At 31 December 2020, all financial instruments entered into by the company qualified as hedging instruments.

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SOMFY – ANNUAL FINANCIAL REPORT 2020