SOMFY // 2022 Annual Report

05 CONSOLIDATED FINANCIAL STATEMENTS

ROCE Note 4.3.3

Accounting principle Note 4.3.3.1 ROCE corresponds to the return on capital employed after tax, equating to the ratio, expressed as a percentage, of Current Operating Result after tax applied at the standard rate to capital invested (or employed). Capital employed corresponds to the sum of shareholders’ equity (with the effects of goodwill impairment being excluded) and net financial debt.

Detailed information Note 4.3.3.2 € thousands

Notes

31/12/22 278,064 18.50% 226,626 1,485,171 1,531,794 -427,746 1,104,048 46,623

31/12/21 301,056 19.02% 243,795 1,371,175

Current operating result

Effective tax rate

(11.1)

Current operating result after tax impact

Shareholders’ equity

Neutralisation of goodwill impairment

(5.1.2.2)

46,547

Restated shareholders’ equity

1,417,722 -641,717

Net financial debt

(7.2.3)

Capital invested (capital employed) ROCE (RETURN ON CAPITAL EMPLOYED)

776,005

20.5%

31.4%

Net financial debt Note 4.3.4

Accounting principle Note 4.3.4.1 The net financial debt corresponds to the difference between financial assets and financial liabilities. It notably takes into account unlisted bonds receivable, issued by certain companies in which shares are held or related entities, earn-out on acquisitions, liabilities relating to options granted to minority shareholders in fully consolidated companies and deferred settlements of a financial nature. Not included are securities in non-controlling equity investments,deposits & guarantees and government grants.

Detailed information Note 4.3.4.2 Details of the calculation of the net financial debt are provided in note 7.2.3.

INVENTORIES NOTE 4.4

Accounting principle Note 4.4.1

Inventories are valued at their procurement cost, determined using theweighted average unit cost method. In particular, inventorycost measurement takes into account the following items: – the gross value of raw materials and supplies includes the purchase price and ancillary expenses; – expenses incurred to bring inventories to the place they are located, and in the condition they are in, are integrated in inventory procurement cost; – manufactured products are measured at production cost, which includes consumables, direct and indirect production expenses and depreciation charges ofassets used in the manufacturing process; – intragroup profits included in inventories are eliminated; – borrowing costs are not included in the cost of inventory. The value of inventories and work in progress is impaired when their net realisable value is lower than their book value. In practice, net realisable value is calculated as book value less a discount reflecting inventory turnover times and technical obsolescence. Alongside this statistical approach, some lines are analysed individually whenever more specific indicators of impairment are identified, notably when selling price falls below net realisable value.

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SOMFY – ANNUAL REPORT 2022