SOMFY - Annual financial report 2019

07 CONSOLIDATED FINANCIAL STATEMENTS

estimated over longer periods, to be justified equity investment by equity investment. For the purposes of the impairment test on the investment in Dooya, a discount rate of 12.5% and a growth rate to infinity of 2.75% were used. No impairment charge was recorded during the 2019 financial year. A one and a half-point increase in the discount rate combined with a two and a half-point decrease in the EBITDA to sales ratio in the normative flow used to calculate the terminal value could lead to an approximately €4 million impairment loss on equity-accounted securities. Related parties include: the parent company; – companies which exert joint control or a significant influence – over the company; subsidiaries; – associates; – joint ventures; – members of the Management Board, the Supervisory Board and – RELATED-PARTY DISCLOSURES NOTE 13.2 Associates are companies over which the Group has a significant influence or joint control and which are consolidated using the equity method. Transactions with related parties are made on arm’s length terms. Group purchases from Dooya totalled €4.0 million for the year to 31 December 2019 and €6.5 million for the year to 31 December 2018. Group trade payables with Dooya stood at €0.6 million at 31 December 2019 and €1.3 million at 31 December 2018. Transactions with other related parties involved negligible amounts. the Management Committee. Transactions with associates

€ thousands

31/12/19 31/12/18

Consolidated cash flow statement Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing and capital activities

18,214 -1,401 -4,010 -4,250

-4,566

-116

At 31 December 2019, the Group reviewed the value of equity-accounted investments. The recoverable amount of an equity investment is measured at the higher of its fair value, after deduction of disposal costs, and its value in use. If the recoverable amount exceeds the net book value of the investment in associates at the end of the period, no impairment is recognised. However, if this amount is lower than the net book value, an impairment loss equal to the difference is recognised in priority against goodwill. Goodwill related to equity-accounted companies is posted to the “Investments in associates and joint ventures” account. Impairment recorded on the equity-accounted value may be reversed in the event of a significant recovery in the value of the equity investment. Fair value after deduction of disposal costs is the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, after deducting disposal costs. 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 by using long-term post-tax market rates, which reflect the market’s estimates of the time value of money and the specific risks inherent to the assets. In certain cases, cash flows can be

STATUTORY AUDITORS’ FEES NOTE 14 — Pursuant to regulation n°2016-09 issued by the Autorité des Normes Comptables (ANC), the following table indicates the fees net of tax (excluding disbursements) paid by the parent company and its subsidiaries to the Statutory Auditors for their terms of office:

Ernst & Young

KPMG

Total

€ thousands

2019

2018

2019

2018

2019

2018

Certification of financial statements Issuer

177

173

100 634 734

98

77

75

Subsidiaries

1,070 1,246

1,020 1,193

651 749

435 512

368 444

Sub-total

Other services* Issuer

56

103 141 244

46

86

10 55 65

18 20 38

Subsidiaries

246 301

191 237 970

121 206 955

Sub-total

TOTAL 1,437 These services cover services required by law and regulations (reports on capital increases, comfort letters, etc.) as well as services provided at the * request of Somfy and its subsidiaries (due diligence, legal and tax assistance and various certifications). 577 481 1,548

125

SOMFY – ANNUAL FINANCIAL REPORT 2019