SOMFY - Annual Financial Report 2020

07 LEGAL DOCUMENTS

MEASUREMENT OF THE EQUITY INVESTMENTS IN THE JOINTLY CONTROLLED ENTITY DOOYA

Risk identified

Our response

Our work as part of the audit of the parent company financial statements specifically consisted of, with the support of our valuation specialists: reviewing the procedures for implementing the impairment test – of the equity investments in the jointly controlled entity Dooya; assessing the consistency of the assumptions in relation to the – historic performances and operating budgets approved by the Board of Directors of Dooya, incorporating growth forecasts for subsequent years, in particular by taking into account the potential impacts of the Covid-19 pandemic in these forecasts; performing sensitivity analyses on impairment tests; – comparing the carrying value of the equity investments in the – jointly controlled entity Dooya with the net book value of said equity investments and, where applicable, verifying the impairment amount recorded. Our work as part of the audit of the company’s parent company financial statements specifically consisted of: reviewing the procedures implemented by your company to – identify and assess these risks; familiarising ourselves with the risk assessment performed by – Management and the corresponding documentation, and reviewing the written consultations provided by external advisers, where applicable; analysing the answers provided to our requests for – confirmation, forwarded to the company’s external advisers; assessing the main risks identified, and reviewing the – assumptions used by Management to classify these risks as contingent liabilities; assessing the appropriateness of the information presented in – note B “Contingent liabilities” to the parent company financial statements. We certify that the information relating to payment terms mentioned in Article D. 441-6 of the Commercial Code is true and fair, and consistent with the parent company financial statements. We hereby certify that the information required by Articles L. 225-37-4, L. 22-10-10 and L. 22-10-9 of the Commercial Code is included in the Supervisory Board’s report on corporate governance. Concerning the information provided in accordance with provisions of Article L. 22-10-9 of the Commercial Code on remuneration and benefits paid or allocated to corporate officers as well as commitments given in their favour, we have verified their consistency with the financial statements or with the data used in the preparation of these financial statements and if necessary, with data collected by your company from entities under its control and included in the scope of consolidation. On Our response REPORT ON CORPORATE GOVERNANCE

The net value of the equity investments in the jointly controlled entity Dooya, indirectly held by Somfy SA, stood at €111 million with total assets of €1,039.3 million at 31 December 2020. As specified in note D “Equity investments” to the parent company financial statements, the carrying value of these equity investments is determined on the basis of several measurement factors, including net assets at the year-end, the level of profitability, the future outlook, and the share price in the case of listed companies. This carrying value is then compared with the net book value, in order to assess the need to record an impairment charge or not. We have considered that the measurement of these equity investments in the jointly controlled entity Dooya is a key audit matter because the determination of their carrying value requires the use of estimates or judgements on the part of Management in determining the carrying value used and the assessment of the market outlook of the entity concerned. The company has contingent liabilities relating to legal, arbitration or regulatory proceedings arising in the normal course of its business. Known or ongoing claims involving Somfy SA were reviewed at the end of the reporting period. Based on the advice of legal counsel, all provisions deemed necessary have been made to cover the related risks. Some of these risks are classified as contingent liabilities, as described in note B “Contingent liabilities” to the parent company financial statements and, in this regard, no provision has been made for them in your company’s financial statements. We have considered that the classification of litigations as contingent liabilities is a key audit matter, in view of the amounts in question, and the level of judgement required from Management to determine them. CLASSIFICATION OF LITIGATIONS AS CONTINGENT LIABILITIES Risk identified

SPECIFIC VERIFICATIONS —

We have also performed the specific verifications required by law and regulations, in accordance with professional standards applicable in France. INFORMATION PROVIDED REGARDING THE FINANCIAL POSITION AND THE PARENT COMPANY FINANCIAL STATEMENTS IN THE MANAGEMENT REPORT AND IN THE OTHER DOCUMENTS SENT TO SHAREHOLDERS We have no observations to make concerning the fairness and consistency with the parent company financial statements of the information given in the Management Board’s management report and in the other documents sent to the shareholders concerning the financial situation and the parent company financial statements.

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SOMFY – ANNUAL FINANCIAL REPORT 2020