SOMFY - Annual financial report 2019

09 LEGAL DOCUMENTS

CLASSIFICATION OF LITIGATIONS AS CONTINGENT LIABILITIES

Risk identified

Our response

The Group’s business activities are conducted within a complex and continuously changing international regulatory framework, which varies depending on the countries and over time, and applies to extremely different aspects. In that context, these activities may entail risks, commercial, wage-related or tax disputes, or litigious situations. As specified in notes “Highlights”, 1.3 and 9.2 to the consolidated financial statements, the Management of your Group exercises its judgement, and uses estimates and assumptions when measuring these risks. Some of these risks are classified as contingent liabilities, as described in notes “Highlights”, 1.3 and 9.2 to the consolidated financial statements and, in this regard, no provision has been made for them in the Group’s financial statements. We have considered that the classification of litigations as contingent liabilities is a key audit point in view of the amounts in question, and the level of judgement required from Management to determine them.

Our work as part of the audit of your Group’s consolidated financial statements specifically consisted of: reviewing the procedures implemented by your Group – to identify and assess these risks; familiarising ourselves with the risk assessment – performed by Management and the corresponding documentation, and reviewing the written consultations provided by external advisers, where applicable; analysing the written confirmations obtained from – your Group’s external advisers; assessing the main risks identified, and reviewing the – assumptions used by Management to classify these risks as contingent liabilities; assessing the appropriateness of the information – presented in the notes “Highlights”, 1.3 and 9.2 to the consolidated financial statements. RESPONSIBILITIES OF MANAGEMENT AND INDIVIDUALS IN CHARGE OF CORPORATE GOVERNANCE IN RELATION TO THE CONSOLIDATED FINANCIAL STATEMENTS — Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the European Union, and for such internal control as Management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, Management is responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is expected to liquidate the company or to cease its operations. The Audit Committee is responsible for monitoring the financial reporting process and the effectiveness of internal control and risks management systems and, where applicable, its internal audit, regarding the accounting and financial reporting procedures. The consolidated financial statements have been prepared by the Management Board. STATUTORY AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS — AUDIT OBJECTIVES AND APPROACH Our role is to issue a report on the consolidated financial statements. Our objective is to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with professional standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence

SPECIFIC VERIFICATIONS —

In accordance with the professional standards applicable in France, we have also performed the specific verifications required by law and regulations on the information relating to the Group given in the Management Board’s management report approved on 2 March 2020. Management have informed us that a statement – regarding unfolding events and information that has emerged subsequent to the date of approval of the financial statements and concerning the effects of the Covid-19 crisis – will be made to the General Meeting convened to approve the financial statements. We have no observation to make with regard to the fairness of such information and its consistency with the consolidated financial statements. We certify that the consolidated Non-Financial Performance Statement provided for by Article L. 225-102-1 of the Commercial Code is included in the information relating to the Group given in the management report, it being specified that in accordance with the provisions of Article L. 823-10 of said Code, we have verified neither the fair presentation nor the consistency with the consolidated financial statements of the information contained in this Statement which has to be subject to a report by an Independent Third-Party Body. INFORMATION RESULTING FROM OTHER LEGAL AND REGULATORY REQUIREMENTS — APPOINTMENT OF THE STATUTORY AUDITORS We were appointed as Statutory Auditors of Somfy SA by your General Meetings of 24 May 2016 for KPMG SA and 12 May 2010 for ERNST & YOUNG et Autres. At 31 December 2019, KPMG SA was in its fourth year of uninterrupted engagement and ERNST & YOUNG et Autres in its tenth year. Previously, ERNST & YOUNG Audit had been Statutory Auditor from 1993.

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SOMFY – ANNUAL FINANCIAL REPORT 2019