SOMFY - Annual financial report 2018

09 LEGAL DOCUMENTS

STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

INDEPENDENCE

To the General Meeting of Somfy SA,

We conducted our audit engagement in compliance with independence rules applicable to us, for the period from 1 January 2018 to the date of our report and specifically we did not provide any prohibited non-audit services referred to in Article 5(1) of regulation (EU) n° 537/2014 or in the Code of Ethics for Statutory Auditors. JUSTIFICATION OF ASSESSMENTS – KEY AUDIT MATTERS — In accordance with the requirements of Articles L. 823-9 and R. 823-7 of the Commercial Code relating to the justification of our assessments, we inform you of the key audit matters relating to risks of material misstatement which, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period, as well as how we addressed those risks. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon. Accordingly, we do not provide any opinion on specific items of the consolidated financial statements.

OPINION —

In compliance with the engagement entrusted to us by your General Meeting, we have audited the accompanying consolidated financial statements of Somfy SA for the year ended 31 December 2018. In our opinion, the consolidated financial statements provide a true and fair view of the assets and liabilities and of the financial position of the Group at 31 December 2018 and of the results of its operations for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union. The audit opinion expressed above is consistent with the content of our report to the Audit Committee. BASIS FOR OPINION — AUDIT FRAMEWORK We have performed our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described herein in the section “Statutory Auditors’ responsibilities for the audit of the consolidated financial statements” of this report. Goodwill shown on the Group’s balance sheet at 31 December 2018 was €96.2 million (€140.7 million for the gross value and €44.4 million for the impairment) against total assets of €1,184.3 million. Your Group performs impairment tests on these assets, the procedures for which are set out in note 5.1.2 to the consolidated financial statements. The impairment tests consist in comparing the recoverable amount of a Cash Generating Unit (“CGU”), which is the higher of the value-in-use and the fair value less sale costs, with its book value. 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 using long-term post-tax market rates. We considered that the measurement of these goodwill amounts is one of the key points of the audit due to their material amount in your Group’s financial statements and because determining the recoverable amount, which is usually based on discounted forecast future cash flows, requires the use of assumptions, estimates, or judgements by Management, as specified in note 1.3 to the consolidated financial statements. MEASUREMENT OF GOODWILL Risk identified

Our response

Our work as part of the audit of your Group’s consolidated financial statements specifically consisted of: reviewing the measurement methods used by Management to – estimate the recoverable amount of goodwill; assessing, in particular via meetings with Management, the – operational assumptions used for determining future cash flows in light of our knowledge of the economic environment in which the Group operates; assessing the discount rate of future cash flows; – comparing the data used for goodwill impairment tests with – source data, CGU by CGU, including future cash flows; performing sensitivity analyses on impairment tests. –

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SOMFY – ANNUAL FINANCIAL REPORT 2018