SOMFY // 2022 Annual Report

05 CONSOLIDATED FINANCIAL STATEMENTS

The Group is careful in assessing supply risk in a tense market environment, notably due to supply issues affecting raw materials and electronic components and the Russian-Ukrainian crisis. Raw material hedging continues to be adapted in line with forecasts and market trends. In accordance with IFRS 9, the Group is in a position to apply hedge accounting to a material component of a non-financial item. As such, the effective portion of financial instruments implemented is therefore taken to items of other comprehensive income and the ineffective portion is recognised in net financial income/(expense). Raw material hedges are adjusted in line with forecasts. The impact of efficient hedges on items of other comprehensive income was a negative €0.2 million net of deferred tax at 31 December 2022. The ineffective portion of hedges was nil at 31 December 2022 and 2021.

31/12/22

Tonnes

Hedging of items off-balance sheet € thousands

Fair value € thousands

Types

Copper

1,105

8,487 2,710

74 Swap -227 Swap

Zinc

906

2,011

11,197

-153

31/12/21

Tonnes

Hedging of items off-balance sheet € thousands

Fair value € thousands

Types

Copper

250 695 945

1,979 1,839 3,818

154 Swap 315 Swap

Zinc

470

ANALYSIS OF CASH FLOW STATEMENT NOTE 8 —

The cash flow statement is prepared using the indirect method: this method presents the reconciliation of net profit with the net cash generated by operations over the year. Cash and cash equivalents at the beginning and end of the year include cash and cash equivalents, which consist of investment instruments, less bank overdrafts and outstanding items.

CASH AND CASH EQUIVALENTS NOTE 8.1

CHANGE IN WORKING CAPITAL REQUIREMENTS NOTE 8.3

€ thousands

31/12/22

31/12/21

€ thousands

31/12/22

31/12/21

CASH AND CASH EQUIVALENTS AT THE START OF THE PERIOD Cash and cash equivalents at the start of the period CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD Cash and cash equivalents at the end of the period Bank overdrafts

Net decrease/(increase) in inventory Net decrease/(increase) in trade receivables Net (decrease)/increase in trade payables Net movement in other receivables and payables CHANGE IN WORKING CAPITAL REQUIREMENTS

-86,931

-20,871

736,258

588,519

-3,661

-1,951

736,665

588,925

-12,570

8,592

-406

-405

719

9,671

625,839

736,258

-102,443

-4,559

626,295

736,665

BUSINESS ACQUISITIONS AND DISPOSALS, NOTE 8.4 NET OF CASH ACQUIRED OR DISPOSED OF In 2022, net cash flow from acquisitions consisted of €109.2 million in respect of the acquisition of Teleco Automation and €0.5 million arising from the buyout of non-controlling interests from Overkiz. In 2021, net cash flows from acquisitions included €27.5 million from the acquisition of Répar’stores, €0.8 million from payment of the final earn-out on SOMFY Protect by Myfox and €0.1 million arising from the buyoutof non-controlling interests from BFT India. In 2022 as in 2021, net cash flows from disposals corresponded to the partial payment of current receivables on the CIAT disposal (see Highlights).

Bank overdrafts

-457

-406

INTANGIBLE ASSETS AND PROPERTY, PLANT NOTE 8.2 AND EQUIPMENT Receivables and liabilities related to intangible assets and property, plant and equipment are included in investing activities in the cash flow statement and decreased by €1 million in the year ended 31 December 2022 compared with an increase of €2.9 million in 2021. During 2022, the Group acquired intangible assets and property, plant and equipment totalling €86.4 million, compared with €57.8 million in 2021. Net of cash receipts related to disposals of intangible assets and property, plant and equipment, investments totalled €86.7 million in 2022 compared with €54.3 million in 2021. New right-of-use assets and associated new lease liabilities are not considered cash flows.

121

SOMFY – ANNUAL REPORT 2022