SOMFY // 2022 Annual Report

05 CONSOLIDATED FINANCIAL STATEMENTS

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES AND RELATED PARTIES NOTE 13 — INVESTMENTS IN ASSOCIATES AND JOINT NOTE 13.1 VENTURES € thousands

31/12/22 31/12/21

Income statement Sales

299,391 278,628 34,794 29,640

The value of investments in associates and joint ventures corresponds to the proportion of shareholders’ equity held. The recoverable amount of an equity investment is measured at the higher of its fair value, after deduction of disposal costs, and its value in use. If the recoverable amount exceeds the net book value of the investment in the associate at the end of the period, no impairment is recognised. However, if this amount is lower than the net book value, an impairment loss equal to the difference is recognised in priority against goodwill. Goodwill related to equity-accounted companies is posted to the “Investments in associates and joint ventures” account. Impairment recorded on the equity-accounted value may be reversed in the event of a significant recovery in the value of the equity investment. Fair value after deduction of disposal costs is the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, after deducting disposal costs. Value in use is determined based on cash flows, which are estimated using plans or budgets over a maximum period of five years; the cash flows beyond that date are extrapolated by applying a constant or decreasing rate of change, and are discounted by using long-term post-tax market rates, which reflect the market’s estimates of the time value of money and the specific risks inherent to the assets. In certain cases, cash flows can be estimated over longer periods, to be justified equity investment by equity investment.

Current operating result

Net profit 35,454 24,329 Share of profit/(loss) attributable to SOMFY 24,818 17,030

€ thousands

31/12/22 31/12/21

Balance sheet Non-current assets

40,125 40,162 171,840 154,562

Current assets

Non-current liabilities

6,552

4,069

Current liabilities

85,352 100,356 120,061 90,300

Shareholders’ equity

€ thousands

31/12/22 31/12/21

Consolidated cash flow statement Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing and capital activities

50,412

2,344

-10,372 -7,382

9,015

-56

Impairment testing and sensitivity analysis Note 13.1.2

At 31 December 2022, the Group reviewed the value of equity-accounted investments. The level of current operating margin over the 2022 financial year remained similar to that seen in 2021. Despite a slowdown in sales over the last quarter of 2022 due to the pandemic, the market should remain buoyant in 2023 and sales should record growth. For the purposes of the impairment test on the investment in Dooya, a discount rate of 12.0% and a growth rate to infinity of 2.3% were used, unchanged from 31 December 2021. No impairment charge was recorded during the 2022 financial year. A six-point increase in the discount rate combined with a seven-point decrease in the EBITDA to sales ratio in the normative flow used in the calculation of the terminal value could lead to a €1 million impairment loss on equity-accounted securities. The Group considers these changes in assumptions resulting in impairment losses unlikely. Related parties include: – the parent company; – companies which exert joint control or a significant influence over the company; – subsidiaries; – associates; – joint ventures; – members of General Management, the Board of Directors and the Management Committee. RELATED-PARTY DISCLOSURES NOTE 13.2

Percentage ownership of associates and joint ventures is set out in note 15 to the consolidated financial statements.

Value of investments in associates and joint Note 13.1.1 ventures

€ thousands

31/12/22 31/12/21

Investments in associates and joint ventures - opening balance Changes in consolidation scope and method Share of profit/(loss) from associates

172,998 145,471

152

-

24,659 17,027

Dividends paid

-1,100

-

-3,694 10,400

Changes in foreign exchange rates

Other

127

101

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES - CLOSING BALANCE

193,142 172,998

“Investments in associates and joint ventures” mainly consist of the investment in Dooya (€192.4 million in 2022, compared with €172.3 million in 2021), major aggregates for which are as follows:

130

SOMFY – ANNUAL REPORT 2022