SOMFY // 2022 Annual Report

05 CONSOLIDATED FINANCIAL STATEMENTS

NEW APPLICABLE STANDARDS AND INTERPRETATIONS NOTE 1.4

Standards, amendments and interpretations whose application is mandatory for financial years beginning on or after Note 1.4.1 1 January 2022

The Group has applied the following standards, amendmentsand interpretations as of 1 January 2022: Standards Content

Application date

Amendments to IAS 16 Amendments to IAS 37 Amendments to IFRS 3

Proceeds before Intended Use Cost of Fulfilling a Contract

Applicable from 1 January 2022 Applicable from 1 January 2022 Applicable from 1 January 2022

References to the Conceptual Framework

Annual improvements to IFRS

2018-2020 cycle (IFRS 1, IFRS 9, IFRS 16, IAS 41) Applicable from 1 January 2022

These new standards have not had a material impact on the Group’s results and financial position.

Clarifications by regulators on the IFRS-IC interpretation of IAS 38 “Configuration or Customisation Costs in a Cloud Computing Arrangement” do not contradict SOMFY’s position on the matter. It should be noted that, as part of the implementation of its new ERP the Group considers that it has control of the SAP application. Expenses incurred in customising the ERP to SOMFY’s specific needs contributed to create a specific asset controlled and used exclusively by SOMFY, thus falling within the scope of IAS 38. Consequently, they are capitalised at a gross amount of €28 million as at 31 December 2022.

Standards, amendments and interpretations whose application is not yet mandatory Note 1.4.2

Standards

Content

Application date

Applicable from 1 January 2024 according to the IASB, not yet approved by the EU

Classification of Liabilities as Current or Non-Current

Amendments to IAS 1

Applicable from 1 January 2023 according to the IASB

Amendments to IAS 1

Disclosure of Accounting Policies

Applicable from 1 January 2024 according to the IASB, not yet approved by the EU

Amendments to IAS 1

Non-Current Liabilities with Covenants

Applicable from 1 January 2023 according to the IASB Applicable from 1 January 2023 according to the IASB

Amendments to IAS 8

Definition of Accounting Estimates

Deferred Tax related to Assets and Liabilities arising from a Single Transaction

Amendments to IAS 12

The Group did not opt for the early application of any of these new standards or amendments and is currently assessing the impact resulting from their initial application. Detailed information is available on the following website: http://www.ifrs.org. CONSOLIDATION SCOPE NOTE 2 — CONSOLIDATION METHOD NOTE 2.1

EXCLUSIVE CONTROL Companies are fully consolidated when they are controlled by the Group. The concept of control means the power to govern the financial and operational policies of an affiliated company so as to benefit from its operations. Control is generally deemed to exist where the Group holds more than half of the controlled company’s voting rights. Financial statements of subsidiaries are included in the consolidated financial statements from the date of effective control transfer, until control ceases to exist. Minority shareholders’ interests are included in the balance sheet under a separate headline called “Non-controlling interests”. Non-controlling interests’ share of net profit is presented separately in the income statement as an allocation of profit for the period.

JOINT CONTROL AND SIGNIFICANT INFLUENCE Companies over which the Group exercises control jointly with a limited number of partners based on a contractual agreement are consolidated using the equity method. Associates are companies over which the Group has significant influence on their financial and operating policies, but does not control them. Companies over which the Group has significant influence are consolidated using the equity method. Acquisition expenses are recorded in the cost of acquisition of the shares.

The consolidation scope is presented in note 15 to the consolidated financial statements.

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SOMFY – ANNUAL REPORT 2022