SOMFY // 2022 Annual Report

05 CONSOLIDATED FINANCIAL STATEMENTS

LONG SERVICE, JUBILEE AWARDS AND TFR – TRATTAMENTO DI FINE RAPPORTO

2022

2021

Actuarial liabilities Long service and jubilee awards

TFR liability

Total Actuarial liabilities Long service and jubilee awards

TFR liability

Total

€ thousands

OPENING BALANCE

2,854

1,967 1,315

4,821 1,153 -1,316

2,845

1,985 1,174

4,830 1,247 -1,354

Cost

-162

73

Benefits paid

-148 -1,168

-76 -1,278

Changes in consolidation scope and foreign exchange rates

1,040

98

42

998

12

86

CLOSING BALANCE

2,586

3,112

5,698

2,854

1,967

4,821

The main actuarial assumptions used are as follows: At 31 December

2022

2021

Discount rate France

4.0% 4.0% 5.0%

1.0% 1.0% 3.3%

Germany

United States

Other

1.0-6.0%

1.0-5.0%

Future salary increases France

2.5%-3.5%

2.0% 2.0% 3.0%

Germany

3.5% 3.0%

United States

Other 1.0-5.0% The sensitivity of the gross retirement benefit commitment based on a variation of +1%/-1% in discountrate is -10.12%/+12%, respectively. 1.0-8.0%

Gross compensation allocated to executives Note 10.2.2

€ thousands

31/12/22

31/12/21

Short term-benefits

3,223

2,452

Post-employment benefits

86

70

Executives consist of the Chief Executive Officer, the Deputy Chief Executive Officer and the Chairman of the Boardof Directors. Post-employment benefits correspond to retirement benefits associated with the employmentcontracts of executives.

SHARE-BASED PAYMENTS NOTE 10.3

Accounting principle Note 10.3.1

Some Group employees, including senior executives, may be entitled to the allocation of free shares, subject to the achievement of certain employment and performance conditions, and options entitling them to acquire SOMFY SA shares at a price fixed in advance. The Group does not grant warrants to subscribe for shares. Effective allocation of options and free shares is subject to conditions being fulfilled. Each beneficiary must be employed by the Group at the date options are exercised or free shares vested. For some employees, the ability to exercise options may also be governed by the achievement of predetermined objectives. Options were valued using the Black & Scholes model, which calculates the fair value of the benefit granted to date and takes account of various parameters such as the share price, exercise price, expected volatility, expected dividends, risk free interest rate and the life of the option. The fair value of free shares is determined using an approach that faithfully

replicates the methodology that would be used by a bank’s trading room should beneficiaries request a price from the latter to monetise their shares. During the rights vesting period, the fair value of options and free shares thus determined is split in proportion to the acquisition of rights. This expense is posted to personnel expenses and offset by an increase in equity. Upon exercise of the options, the exercise price received is recorded under cash and offset in equity. The dilutive impact of outstanding options and free shares is reflected in the calculation of diluted earnings per share. In accordance with IFRS 2, share options are valued at market value at the date of allocation and subsequently amortised through the income statement over the vesting period for all plans granted since 7 November 2002.

125

SOMFY – ANNUAL REPORT 2022