SOMFY // 2022 Annual Report

06 PARENT COMPANY FINANCIAL STATEMENTS

MARKETABLE SECURITIES AND TERM DEPOSITS

agreement, the sellers will pay compensation of €3.5 million to Alder Holdings (of which €1.3 million to be paid by SOMFY SA), to be deducted from the escrow account, the remaining balance of which will be released in full (of which €2.9 million for SOMFY SA). Proceedings were fully completed as at 31 December 2022. The impacts recognised by SOMFY SA in 2022 consist of a €2.2 million inflow in respect of deferred payments, a €2.9 million inflow in respect of the balance of the purchase price and a non-current loss of €1.6 million including other costs. POST-BALANCE SHEET EVENTS — SIMPLIFIED PUBLIC TENDER OFFER AND SQUEEZE-OUT As noted under Significant events, the Simplified Public Tender Offer ended on 12 January 2023 and a total of 5,020,213 shares were tendered during the Offer period, with the result that the Despature family group held 87.47% of SOMFY SA’s share capital and 92.06% of its voting rights following the Offer. Since those shares not tendered to the Offer accounted for less than 10% of the share capital and voting rights, the Despature family group decided on 30 January 2023 to conduct a squeeze-out of SOMFY SA shares not tendered to the Offer at a price of €143 per share. The squeeze-out and the delisting of SOMFY SA shares from the Euronext Paris market took effect on 9 February 2023. As noted under Significant events, the extension of the syndicate is currently being set up and should be finalised in the first half-year of 2023 to include new partners and increase the amount of the revolving credit facility by €50 million. ACCOUNTING RULES AND METHODS — The 2022 financial statements have been prepared in accordance with the general accounting rules prescribed by the French Chart of Accounts derived from ANC regulations. The general bases of accounting have been applied in respect of the principle of prudence, in accordance with the following basic assumptions: – going concern; – consistency of accounting methods from one year to the next; – separate accounting periods; – and in compliance with the general rules for the preparation and presentation of annual financial statements. The method used to value the items in the accounts is the historical cost method. EXTENSION OF SYNDICATE AND REVOLVING CREDIT FACILITY

The gross value of marketable securities comprises their purchase price less related expenses or their transfer value, calculated using the first in, first out method. Marketable securities are valued at their average quoted stock exchange price over the month of December 2022 and are impaired when this is lower than cost. At 31 December 2022, marketable securities totalled €94.2 million, comprising: – treasury shares of €96.7 million; – a provision of €2.6 million for thewritedown of treasury shares. Financial investments presumed to be eligible as cash equivalents in keeping with the joint position issued by the Autorité des Normes Comptables (French Accounting Standards Authority) and the Autorité des Marchés Financiers (French Financial Markets Authority) represent a net amount of €29.3 million. The company has implemented several successive share buyback programmes. The most recent buyback programme was launched in 2022; it was authorised by the Combined General Meeting of 1 June 2022, and had the following objectives: – to stimulate the secondary market or ensure the liquidity of the SOMFY share, by way of an investment services provider within a liquidity contract that complies with practices recognised by regulations, it being specified that within this framework the number of shares considered for the calculation of the limit specified above corresponds to the number of shares purchased less the number of shares resold; – to retain the shares purchased and subsequently exchange them or use them as payment within the framework of potential acquisitions; – to ensure the coverage of stock option plans and/or free share allocation plans (or similar) granted to employees and/or corporate officers of the Group, including related economic interest groups and companies, as well as all other shares allocated under a company or group savings scheme (or similar), in relation to employee profit-sharing and/or any other form of allocation to employees and/or corporate officers of the Group, including related economic interest groups and companies; – to cover marketable securities giving right to the allocation of company shares, in accordance with applicable regulations; – to proceed with the possible cancellation of shares acquired, in accordance with the authorisation granted or to be granted by the Extraordinary General Meeting. Such share purchases could be effected by all means, including by means of acquiring blocks of shares and at any times considered appropriate by the Board of Directors. The company reserved the right to use options or derivative instruments, in accordance with applicable regulations. These shares are classified in account 502 “Treasury shares”. Income or losses on treasury share transactions are thus recognised as financial income/expenses. Treasury shares to be granted to employees and allocated to stock option or free share plans are valued on a plan by plan basis at the lower of acquisition cost or exercise price of the call option. Shares not yet allocated to plans or which have lapsed are valued at the lower of the average purchase price of all these shares or the average quoted stock exchange price over the month of December 2022. TREASURY SHARES

EQUITY INVESTMENTS

The gross value of equity investments comprises their acquisition cost less related expenses. Writedown is recognised when the book value falls below historical cost. Book value is determined based on several assessment items, such as year-end net assets, profitability level, future prospects and share price for listed companies.

OTHER SECURITIES

The initial value of other securities comprises their acquisition cost less associated expenses. When the estimated realisable value is lower than cost, an impairment provision is recorded for the difference.

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SOMFY – ANNUAL REPORT 2022