SOMFY - Annual financial report 2019

07 CONSOLIDATED FINANCIAL STATEMENTS

NOTE 7 FINANCIAL ITEMS — NET FINANCIAL INCOME/(EXPENSE) NOTE 7.1

Proposed dividends Note 6.1.3

31/12/19

31/12/18

Total number of shares

37,000,000 37,000,000

Net financial income/(expense) comprises the following two items: cost of net financial debt – Includes all income/expense from net financial debt or financial surplus constituents over the period, including income/loss on interest rate hedges; other financial income and expenses. – These include income and expenses of a financial nature but neither of an operational nature nor a constituent of the cost of net financial debt.

Treasury shares

2,616,647

2,656,833

Par value

€0.20

€0.20 €1.40

Proposed dividends

€1.55 (1)

The voting right attached to shares is proportional to the capital that they represent. Each share carries the right to a single vote. Certain shares are entitled to a double voting right, providing they are fully paid up and have been registered in nominative form for at least four years in the name of the same shareholder at the end of the calendar year preceding each General Meeting.

€ thousands

31/12/19

31/12/18

EARNINGS PER SHARE NOTE 6.2

Cost of net financial debt Financial income from – investments Financial expenses related – to borrowings

-1,995

-1,249

Net earnings per share is calculated by dividing the net profit for the financial period by the average number of shares in issue over the period net of treasury shares held. Only treasury shares held by the Group and allocated at the closing to stock options plans or free shares allocations guarantee a dilutive effect on the calculation of diluted earnings per share. The Group has not issued any securities giving future access to capital.

1,313

1,050

-3,308

-2,299

Of which financial ● charges related to IFRS 16 and IAS 17

-1,064

-97

Effect of foreign currency translation

-3,730

-4,859

Basic earnings per share Net profit - Group share (€ thousands) Total number of shares (1) Treasury shares* (2) Number of shares used in calculation (1) – (2) BASIC EARNINGS PER SHARE (€)

31/12/19 31/12/18

Other

660

1,803 -4,305

163,227

140,458

NET FINANCIAL EXPENSE

-5,066

37,000,000 37,000,000 2,616,647 2,656,833

Net financial expense was €5.1 million for the year to 31 December 2019, compared with a net expense of €4.3 million for the year to 31 December 2018. The fall was mainly due to lower unrealised exchange rate impacts on foreign currency receivables and payables (TRY and USD in particular), partly offset by a lower reversal of the provisions on Garen’s financial assets in 2019 (€1.0 million in 2019 compared with €2.1 million in 2018), and the application of IFRS 16.

34,383,353 34,343,167

4.75

4.09

Representing all treasury shares held by Somfy SA. * Diluted earnings per share

31/12/19 31/12/18

FINANCIAL ASSETS AND LIABILITIES NOTE 7.2

Net profit - Group share (€ thousands) Total number of shares (1) Treasury shares** (2) Number of shares used in calculation (1) – (2)

163,227

140,458

Financial assets Note 7.2.1

37,000,000 37,000,000 2,558,969 2,623,593

Financial assets are classified into the following categories based on the asset ownership business model and the characteristics of its contractual cash flows: assets measured at amortised cost; – assets measured at fair value through items of other – comprehensive income; assets measured at fair value through the income statement. – Financial assets are initially recognised at historical cost, which corresponds to the fair value of the price paid, plus transaction costs, with the exception of assets measured at fair value through the income statement, whose transaction costs are recognised in the income statement.

34,441,031 34,376,407

DILUTED EARNINGS PER SHARE (€)

4.74

4.09

Free shares are excluded. ** Diluted earnings per share take into account shares allocated free of charge when determining the “number of shares used in the calculation”.

See information on this subject in the press release of 7 April 2020 in chapter 10 Recent events since 2 March 2020. (1)

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SOMFY – ANNUAL FINANCIAL REPORT 2019