SOMFY - Annual financial report 2019

07 CONSOLIDATED FINANCIAL STATEMENTS

Furthermore, during 2019, the Management Board of Somfy SA agreed on the following allocations of Somfy SA performance shares: at its meeting of 20 May 2019, allocation of Somfy performance shares to 173 beneficiaries. The vesting of these performance shares is – subject to the condition that they must remain employed by the Group. Final vesting will take place on 30 June 2021. The shares vested will be available from 1 July 2021 and will not be subject to a retention obligation; at its meeting of 15 November 2019, allocation of Somfy performance shares to 1 beneficiary. The vesting of these performance shares is – subject to the condition that they must remain employed by the Group. Final vesting will take place on 30 June 2021. The shares vested will be available from 17 November 2021 since they will be subject to a retention obligation; at its meeting of 15 November 2019, allocation of Somfy performance shares to 10 beneficiaries. The vesting of these performance – shares is subject to the condition that they must remain employed by the Group. Final vesting will take place on 30 June 2021. The shares vested will be available from 17 November 2021 since they will be subject to a retention obligation.

At 31 December 2019, the free share position was as follows:

Plan date

Plan n°

Number of benef- iciaries

Number of shares allocated

Price per share (€)

Allocation date

Vesting date

Revision of share number related to presence and performance conditions

Number of shares definitely allocated in 2019

Number of shares potentially vested at 31/12/2019

-30,419

N/A

16/06/17 Residents and non-residents AGA 3 12/11/18 Myfox plan AGA 4

195 138,325 88.82 01/07/19 01/07/19

-107,906

5,239

7

5,239 66.26 30/06/21 01/07/21

–

–

22,616

20/05/19 AGAP 2021 Plan 20/05/19 AGA 2021 Plan

45 32,370 75.62 30/06/21 01/07/21

-9,754

–

26,296

128 37,637 75.62 30/06/21 01/07/21

-11,341

–

900

15/11/19 AGAP 2021 Plan n°2

1

1,080 81.51 30/06/21 17/11/21

-180

–

Security Business Group Plan

2,627

15/11/19

10

6,015 81.51 30/06/21 17/11/21

-3,388

–

CURRENT AND DEFERRED TAX NOTE 11 —

the entity has sufficient taxable temporary differences with a – single tax authority and for the same entity, which will generate taxable amounts against which unused tax losses and tax credits can be offset before they expire; it is likely that the entity will generate taxable profits before – unused tax losses and tax credits expire; unused tax losses result from identifiable causes, which will – probably not reoccur; opportunities related to the entity tax management will – generate taxable profits for the financial year during which unused tax losses and tax credits can be allocated. If it is unlikely that the entity will make sufficient profits to allocate unused tax losses or tax credits, deferred tax assets are not recognised. CVAE The CVAE tax charge is classified as income tax charge in order to provide more relevant information for comparison, given prevailing market practice. INVESTMENT TAX CREDIT The treatment of investment tax credits is not specifically addressed under IFRS. A number of criteria need to be assessed on a case-by-case basis to ascertain whether to recognise the investment tax credit as income tax (IAS 12) or as a grant (IAS 20). These criteria include the non-refundable nature or not of the tax credit should future taxable profits be sufficient, the specific nature or not of the investment, the taxable nature or not of the tax credit and the number of requirements for eligibility for the tax credit.

CURRENT TAX The tax consolidation agreement signed between Somfy SA and its direct and indirect subsidiaries was renewed on 1 January 2013 for an indefinite period of time. The following companies are party to this agreement at 31 December 2019: Somfy SA, Somfy Activités SA, Simu, CMC, SEM-T, Domis SA, BFT Sud-Est, Opendoors, Automatismes BFT France, Overkiz and Somfy Protect by Myfox. Under this agreement, the difference between the sum of income taxes calculated for each company and the total of the tax integrated group is accounted for as income in the income statement of the Group’s holding company. Should a subsidiary cease to be a member of the tax consolidation, it will be compensated by Somfy SA in accordance with a jointly-agreed exit methodology, taking account of the situation at that date. DEFERRED TAX Deferred tax assets and liabilities are measured at the income tax rate expected to apply to the financial year when the asset will be realised or the liability settled, on the basis of income tax rates (and tax regulations) adopted or virtually adopted at year-end. Deferred tax is recognised for the temporary differences between the book value of assets and liabilities and its tax value and restatements made on consolidation to conform to Group accounting standards (extended concept of deferred tax calculation). Deferred tax relating to tax losses of companies not included in the tax consolidation or that have arisen prior to their inclusion in the tax consolidation are recognised when the conditions defined by IAS 12 are met:

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SOMFY – ANNUAL FINANCIAL REPORT 2019