SOMFY - Annual financial report 2019

07 CONSOLIDATED FINANCIAL STATEMENTS

Financial liabilities Note 7.2.2

BORROWINGS AND BORROWING COSTS Upon initial recognition, loans and other interest-bearing debts are measured at fair value, increased by transaction costs that are directly attributable to the issuance of the liability. Fair value generally equals the amount of cash received. Issuing charges and premiums are taken into consideration in measuring amortised cost according to the effective rate method. Therefore, they are recognised in the income statement on an actuarial basis over the duration of the liability. Interest on loans is recognised as an expense of the period.

Analysis by category Note 7.2.2.1

Borrowings from credit institu- tions

Lease liabilities

Other borrowings and financial liabilities

Total liabilities from financing activities

Bank overdrafts

Current and non- current financial liabilities

Due within 1 year

Non- current financial liabilities

€ thousands

At 1 January 2019

31,316

37,248

11,597

1,532 4,973 24,810

5,932

25,650

–

273

–

Increase in borrowings

–

–

–

273

273

Repayment of borrowings and lease liabilities Other movements related to business acquisitions Impact of the application of IFRS 16 from 1 January 2019 Impact of the revaluation of put options Impact of changes in foreign exchange rates Adjustments to lease liabilities with no cash impact Impact of changes in consolidation scope and method Total cash movements New lease liabilities

-14,868

-19,440

–

-610 -14,224

-33

-4,572

-19,441

-870

-870

–

–

–

-870

–

-870

-610 -14,224

-904 -15,738 -4,300 -20,038 -20,038

–

42,105

42,105

30,671

– 42,105

–

–

11,434

-900

-900

-900

–

–

-900

–

–

497

221

-628

2

484

11

-275

849

19,137

19,137

19,137

– 19,137

–

–

–

-475

-475

–

–

-475

–

–

-475

–

–

–

–

–

–

–

–

–

–

-14,847

Other movements

–

–

–

–

14,847

Total non-cash movements AT 31 DECEMBER 2019 Non-current financial liabilities Current financial liabilities

2 61,250

-889

60,363

-275 60,087 26,655 33,433

924 51,998 23,018 599 39,408 5,023 325 12,590 17,995

75,940 1,357 77,297 32,267 45,030

45,030 30,910

45,030 32,267

– –

–

– –

1,357

Financial liabilities have been impacted by the application of IFRS 16 on 1 January 2019 in the amount of €42.1 million. Other borrowings and financial liabilities include the debt relating to the put options granted to the holders of non-controlling interests and to earnouts, which amounted to €23.0 million at 31 December 2019 and €24.8 million at 31 December 2018. At 31 December 2019, the financial liabilities include the fair value of the put option granted to the Dooya partners, the amount of which is equal to the difference between the estimated contractual value that would result from the exercise of the put option and the fair value of the portion corresponding to the underlying assets. The liability derivative was valued at €16.6 million. The subsequent fair values of liabilities corresponding to put options granted to holders of non-controlling interests are recognised in equity.

108

SOMFY – ANNUAL FINANCIAL REPORT 2019