SOMFY - Annual financial report 2019

07 CONSOLIDATED FINANCIAL STATEMENTS

Somfy SA is a company governed by a Management Board and a Supervisory Board, listed on the Eurolist of Euronext Paris (Compartment A, ISIN Code: FR0013199916). Founded in 1969 in the Arve Valley, in the Haute-Savoie region of France, and now operating in 58 countries, Somfy is the preferred partner for window and door automation and a pioneer in the connected home. The Group is constantly innovating to guarantee comfort, well-being and safety in the home and is committed to promoting sustainable development. Somfy SA is a 52.65%-subsidiary of the French company J.P.J.S. The Group’s IFRS consolidated financial statements for the 12-month financial year ended 31 December 2019 were approved by the Management Board on 2 March 2020. At its meeting of 4 March 2020, the Supervisory Board, following verification and review, did not issue any observations and duly authorised their publication. Total assets were €1,358,246 thousand and consolidated net profit €163,209 thousand (Group share: €163,227 thousand). All accounting rules and methods are included in the various notes which are grouped by subject and highlighted in colour for greater readability and relevance. ACCOUNTING PRINCIPLES NOTE 1 — CONSOLIDATED FINANCIAL STATEMENTS – BASIS NOTE 1.1 FOR PREPARATION the measurement of certain financial instruments used to hedge – foreign exchange and raw materials, as well as certain options negotiated on the acquisition of equity investments (notes 7.2.2 and 7.2.4 to the consolidated financial statements).

As part of the preparation of these annual consolidated financial statements, the main judgments made and the main assumptions used by Management have been updated based on the latest indicators available. At 31 December, the Group reviews its performance indicators and carries out impairment tests if there is any indication that an asset may have been impaired. NEW APPLICABLE STANDARDS NOTE 1.4 AND INTERPRETATIONS Standards, amendments and interpretations whose Note 1.4.1 application is mandatory for financial years beginning on or after 1 January 2019

The consolidated financial statements are presented in thousands of Euros. All amounts are rounded to the nearest thousand of Euros, unless otherwise specified. The financial statements have been prepared in accordance with the historical cost principle, except for a number of assets and liabilities that were measured at fair value, in particular in relation to derivative instruments. Consolidated financial statements include the financial statements of Somfy SA and its subsidiaries at 31 December of each year. The financial statements of subsidiaries are prepared for the same reference period as the parent company and on the basis of standard accounting methods. The financial year-end of all companies is 31 December. COMPLIANCE WITH ACCOUNTING STANDARDS NOTE 1.2 In application of European regulation 1606/2002 of 19 July 2002 on international accounting standards, the Group’s consolidated financial statements for the financial year ended 31 December 2019 have been prepared in accordance with the international financial reporting standards (“IFRS”) applicable at that date, as approved by the European Union at the date of preparation of these financial statements. JUDGEMENTS AND ESTIMATES NOTE 1.3 The preparation of the consolidated financial statements requires Management to make a number of judgments, estimates and assumptions liable to affect the values of assets, liabilities, and income and expense items in the financial statements, and information provided in the notes to the financial statements. Due to the inherently uncertain nature of the assumptions, actual results may differ from estimates. The Group reviews its estimates and assessments on a regular basis to take past experience into account and incorporate factors considered relevant under current economic conditions. The major items of the financial statements that may be subject to estimates are as follows: the impairment of goodwill and intangible assets and property, – plant and equipment, whose measurement is specifically based on future cash flow, discount rate and net realisable value assumptions (note 5.1 to the consolidated financial statements); the lease term and discount rate for property leases (note 5.3 to – the consolidated financial statements); retirement commitments, whose measurement is based on a – number of actuarial assumptions (note 10.2.1 to the consolidated financial statements); provisions (note 9.1 to the consolidated financial statements); – the measurement of options associated with stock option plans – and free share allocations granted to employees (note 10.3 to the consolidated financial statements);

The Group has applied the following standards, amendments and interpretations as of 1 January 2019:

Standards

Content

Application date Applicable from 1 January 2019 Applicable from 1 January 2019 Applicable from 1 January 2019 Applicable from 1 January 2019 Applicable from 1 January 2019 Applicable from 1 January 2019

IFRS 16

Leases

Amendment to IFRS 9 Amendments to IAS 19 Amendments to IAS 28 Annual improvements to IFRS

Prepayment Features with Negative Compensation Plan Amendment, Curtailment or Settlement Long-term interests in Associates and Joint Ventures 2015-2017 Cycle (IFRS 3, IFRS 11, IAS 12, IAS 23) Uncertainty over Income Tax Treatments

IFRIC 23

IFRS 16 “Leases”, which replaces IAS 17 “Leases”, and its related interpretations, introduces a single model for the recognition of leases by the lessee, which requires the recognition of the assets and liabilities for all leases, except for those with a contractual term of less than 12 months, or those where the value of the underlying asset is low, for which exemptions exist. The beneficiary of the contract must recognise a usage right in their balance sheet assets in consideration for a financial debt in balance sheet liabilities, if the asset included in the lease is identifiable and they control the use of this asset, corresponding to the discounted value of future payments. Depreciation of the right-of-use asset is recognised in the operating result and interest on lease liabilities is recognised in net financial income/expense.

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SOMFY – ANNUAL FINANCIAL REPORT 2019