SOMFY - Annual financial report 2018

07 CONSOLIDATED FINANCIAL STATEMENTS

Other borrowings and financial liabilities include the debt relating to the put options granted to the holders of non-controlling interests and to earnouts, which amounted to €24.8 million at 31 December 2018 and €78.1 million at 31 December 2017, as well as to deferred settlements of €5.2 million at 31 December 2017. At 31 December 2017, the liability resulting from the put option granted to the Dooya partners was recognised under financial liabilities for €55.1 million. At 31 December 2018, the financial liabilities now only integrate the fair value of the put option, the amount of which is equal to the difference between the estimated contractual value that would result from the exercise of the put option and the fair value of the portion corresponding to the underlying assets. The liability derivative was valued at €16.6 million. Other movements relate to the revaluation of earnouts concerning Somfy Protect by Myfox (see Highlights). The subsequent fair values of liabilities corresponding to put options granted to holders of non-controlling interests are recognised in equity. Since debt is essentially at a variable rate, the fair value is not significantly different from the book value.

Analysis by maturity Note 7.2.2.2

Covenants Note 7.2.2.6 At 31 December 2018, Somfy SA had a total of €190.0 million undrawn medium-term loan facilities (confirmed credit lines) with seven banks. Funds made available by the credit institutions are subject to Somfy SA commitment to comply with financial covenants based on the Group’s financial structure (net financial debt/shareholder’s equity) and its ability to repay (net financial debt/EBITDA). Somfy SA was in compliance with all of these covenants at 31 December 2018. Somfy SA also had undrawn overdraft facilities totalling €53.0 million at 31 December 2018. Analysis of net financial debt Note 7.2.3

31/12/18

31/12/17 Restated for operations treated in accordance with IFRS 5

31/12/17

€ thousands 1 year or less

25,650

3,125 76,852 26,106 31,373

Between 1 and 5 years

9,991 1,607

5 years or more

2,143

2,143

TOTAL

37,248

31,374 110,368

The definition of the net financial debt can be found in note 4.3.4.

Analysis by rate Note 7.2.2.3

31/12/18

31/12/17 Restated for operations treated in accordance with IFRS 5

31/12/17

31/12/18 31/12/17 Restated for

31/12/17

operations treated in accordance with IFRS 5

€ thousands

€ thousands Variable rate

Financial assets included in net financial debt calculation Financial assets included in net financial debt calculation Marketable securities –

10,857

6,355

6,355

37,242

31,364 110,358

Fixed rate

1,036

973 19,605 24,046 84,408 31,374 110,368

Non-interest bearing

25,355 37,248

286

2,164

2,164

TOTAL

–

–

–

Non-interest-bearing financial liabilities mainly include put options granted to holders of non-controlling interests and earnouts. Analysis by currency Note 7.2.2.4

Loans –

286

2,095

2,095

Miscellaneous – Cash and cash equivalents

–

70

70

259,345

192,493 212,834

31/12/18 31/12/17 Restated for

31/12/17

operations treated in accordance with IFRS 5

NET FINANCIAL DEBT -222,389

-163,294 -104,640

Liabilities related to put options and earnouts Other financial liabilities

24,778

22,982 78,077

€ thousands

–

–

5,267

Euros Other TOTAL

19,501 17,747 37,248

29,568 29,568 1,806 80,800 31,374 110,368

RESTATED NET FINANCIAL DEBT

-247,168

-186,276 -187,984

(-) Net financial surplus.

Secured liabilities Note 7.2.2.5 The Group had no liabilities secured by collateral at 31 December 2018.

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SOMFY – ANNUAL FINANCIAL REPORT 2018