SOMFY // 2022 Annual Report

05 CONSOLIDATED FINANCIAL STATEMENTS

Foreign exchange hedges by type

Contract nominal value

31/12/22 € thousands

Sales

Purchases

Net total -5,737 -15,480

Fair value

Fair Value Hedges Cash Flow Hedges

13,684 20,910

-19,421 -36,391

221

- -

Net Investment Hedges

- -

- -

- -

Trading

34,594

-55,812

-21,218

221

Contract nominal value

31/12/21 € thousands

Sales

Purchases

Net total

Fair value

6,663 3,507

Fair Value Hedges Cash Flow Hedges

21,960 21,270

-15,297 -17,763

232

- -

Net Investment Hedges

- -

- -

- -

Trading

43,230

-33,060

10,170

232

Interest rate risk

The Group has confirmed medium-term credit lines (€300 million “Revolving Credit Facility” arranged at the end of 2022 - see Highlights) and authorised overdrafts, currently unused (see note 7.2.2.6). The Group is not affected by restricted cash problems, except in Russia and Ukraine given the current geopolitical context (see Highlights). The total amount of unavailable liquid assets for the Group in these two countries is €2.5 million. However, the liquid assets in these two subsidiaries is used by them to meet their short-term cash commitments. Credit risk Given the breakdown of its investments (interest-bearing current accounts, subscription to investments of an investment-gradetype and term deposits) and the credit risk of its main banking partners, whose credit ratings range from A- to A+, the Group’s exposure to investment risk is deemed to be low and is closely monitored in light of the tense geopolitical and economic environment, in particular as a result of supply issues and the Russian-Ukrainian crisis. Raw material risk The Group is exposed to fluctuations in the price of the raw materials used in the manufacture of its products (copper and zinc in particular). To maintain its profitability, the Group must be able to cover for or offset this risk or pass it on to its customers. The Group has nevertheless implemented procedures to limit its exposure to risks related to changes in raw material prices. SOMFY protects against movements in raw material prices by placing firm orders with its suppliers ( physical hedges for copper) and via hedging agreements for materials on the financial markets (copper and zinc paper hedges ) on components that cannot be physically hedged. The Group’s exposure to credit risk is related to its cash surplus deposited with banks.

The Group is exposed to interest rate risks. Management of the interest rate relative to Group debt is based on consolidated position and market conditions. The primary objective of the rate risk management policy is to control Group financing costs. The majority of the Group companies’ financial liabilities is at fixed rate. The Group applies hedge accounting to interest rate hedge instruments. The effective portion of fair value movements is therefore taken to items of other comprehensive income and the ineffective portion is recognised in netfinancial income/(expense). The Group did not use any interest-rate hedging instruments during the 2022 financial year, as was also the case in 2021. Liquidity risk The Group must have permanent access to the necessary financial resources to allow it to finance its day-to-day activities and its investments. The Group’s liquidity risk primarily arises from the obligation to repay its existing debt, the funding of its future requirements and observance of its financial ratios. The granting of credit facilities is subject to SOMFY SA’s commitments to its banking partners to comply with financial covenants. The Group has specifically reviewed its liquidity risk and believes that it is in a position to meet its future commitments, particularly those falling due in the next 12 months, despite the uncertain economic conditions arising from the tense geopolitical and economic environment, in particular as a result of supply issues and the Russian-Ukrainian crisis. External Group financing essentially relies upon leases and medium-term credit facilities. Some debts are subject to compliance with covenants. The covenants are detailed in note 7.2.2.6. The Group does not finance itself using securitisation, factoring or reverse factoring.

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SOMFY – ANNUAL REPORT 2022