SOMFY - Annual financial report 2019

09 LEGAL DOCUMENTS

STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

To the General Meeting of Somfy SA,

OPINION —

INDEPENDENCE

We conducted our audit engagement in compliance with independence rules applicable to us, for the period from 1 January 2019 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. OBSERVATION — Without qualifying the opinion expressed above, we draw your attention to the notes "2019 highlights - First-time application of IFRS 16" and 1.4.1 "Standards, amendments and interpretations whose application is mandatory for financial years beginning on or after 1 January 2019" to the consolidated financial statements, which describe the impact of the change in accounting method related to the application as from 1 January 2019 of IFRS 16 "Leases". 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 judgement, were of most significance in our audit of the consolidated financial statements for the financial year just ended, 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, approved in the conditions set out above, and in forming our opinion thereon. Accordingly, we do not provide any opinion on specific items of the consolidated financial statements. Our work as part of the audit of the Group’s consolidated financial statements specifically consisted, with the help of our specialists, of: reviewing the procedures for implementing the – impairment test in relation to the shareholding in the Dooya company; assessing, in particular via meetings with Management – and by comparison with market data, the main data and assumptions on which the estimates are based, notably cash flow forecasts, the long-term growth rate and the discount rates; analysing the market outlook for the Dooya company; – performing sensitivity analyses on impairment tests; – comparing the recoverable amount of the shareholding – in the Dooya company with the net book value. Our response

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 2019. These financial statements were approved by the Management Board on 2 March 2020 on the basis of the information available on this date and within the developing context of the Covid-19 health crisis. 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 2019 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.

MEASUREMENT OF THE JOINTLY CONTROLLED SHAREHOLDING IN THE DOOYA COMPANY

Risk identified

At 31 December 2019, the jointly controlled shareholding in the Dooya company was valued at €135.9 million as specified in note 13.1 “Investments in associates and joint ventures” to the consolidated financial statements. At 31 December 2019, your Group reassessed the value of the equity-accounted investments under the procedure set out in note 13.1 to the consolidated financial statements. Each investment is considered as a Cash Generating Unit (CGU). This impairment test involves comparing the recoverable amount of the CGU with its book value. 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 at year-end, no impairment is recognised. However, if this amount is lower than the net book value, an impairment loss equal to the difference is recognised. We considered the valuation of the jointly controlled shareholding in the Dooya company to be a key audit point as a result of its material amount in the Group’s financial statements and since determining the value in use is based on discounted forecast cash flows which require the use of assumptions, estimates or judgements by Management.

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SOMFY – ANNUAL FINANCIAL REPORT 2019