SOMFY - Annual financial report 2018

07 CONSOLIDATED FINANCIAL STATEMENTS

OFF-BALANCE SHEET COMMITMENTS NOTE 12 — The Group’s commitments comprise the following: COMMITMENTS GIVEN NOTE 12.1

INVESTMENTS IN ASSOCIATES NOTE 13 AND JOINT VENTURES AND RELATED PARTIES — INVESTMENTS IN ASSOCIATES NOTE 13.1 AND JOINT VENTURES

31/12/18 31/12/17 Restated for

31/12/17

€ thousands

31/12/18 31/12/17

operations treated in accordance with IFRS 5

Investments in associates at the beginning of the year Changes in consolidation scope and method Share of profit/(loss) from associates Changes in foreign exchange rates INVESTMENTS IN ASSOCIATES AT THE END OF THE PERIOD of which Investments in associates and joint ventures of which Other non-current liabilities Dividends paid

425 1,880

€ thousands

Guarantees & deposits granted and liability guarantee on CIAT disposal, Dooya put option Interest over the remaining terms of loans Rental payments outstanding on operating leases

131,754

193

81,221

18,390 18,390

1,429 -1,491

–

-85 -73

-827

1,066

1,357

1,528

132,781

425

54,704

26,307 30,548

132,781

939

Copper forward purchase

3,066

3,183

3,183

–

514

Foreign currency forward sale and purchase

“Investments in associates and joint ventures” consist of investments in Dooya and Arve Finance. The change in consolidation method mainly concerns Dooya (see Highlights). Somfy exercised its call option and acquired the remaining 39% interest in the share capital of Neocontrol, which is now fully consolidated.

22,097

506

506

TOTAL

162,154

49,742 54,154

Given the change in Dooya's consolidation method, the put option granted to the co-owners is an off-balance sheet commitment at 2018 year-end. It has been exercisable since the end of 2015. Interest over the remaining terms of loans is calculated only on those loans with known maturities and not on short-term credit facilities with ad-hoc drawings. Rental payments outstanding on operating leases are broken down into €46.3 million for real-estate rentals, €7.5 million for vehicles rentals and €1.0 million for other movable assets rentals. COMMITMENTS RECEIVED NOTE 12.2

Dooya’s major aggregates are as follows: € thousands

31/12/18 31/12/17

Income statement Sales

178,040 162,791 -2,503 -6,301 -3,909 -6,627

Current operating result

Net loss

€ thousands

31/12/18 31/12/17

Dooya’s net loss was €3.9 million for the year to 31 December 2018. The share attributable to Somfy was €2.7 million, being a loss of €4.2 million for the first half and a profit of €1.4 million for the second half.

Guarantees & deposits received and liability guarantees (Myfox, iHome)

10,937

13,606

Unused credit lines

190,500 208,410 201,437 222,016

TOTAL

€ thousands

31/12/18 31/12/17

At 31 December 2017, the commitments received did not include any items relating to Dooya. COMMITMENTS TO ACQUIRE ADDITIONAL SHARES NOTE 12.3 IN COMPANIES NOT FULLY-CONSOLIDATED Due to the lack of specific IFRS provisions and in accordance with the recommendation issued by the AMF on 4 November 2009, the Group opted for the following accounting treatment in relation to commitments to acquire non-controlling interests. Upon initial recognition, these commitments are recognised as financial debt at the discounted acquisition value and offset by a reduction in the book value of non-controlling interests. The difference between the book value of the non-controlling interests due to be acquired and the value of the estimated liability is recognised in equity.

Balance sheet Non-current assets

48,963 54,118 80,025 75,729 4,110 9,153 86,540 78,257 38,338 42,438

Current assets

Non-current liabilities

Current liabilities

Shareholders’ equity

118

SOMFY – ANNUAL FINANCIAL REPORT 2017