SOMFY - Annual financial report 2018

09 LEGAL DOCUMENTS

CLASSIFICATION OF DISPUTES AS CONTINGENT LIABILITIES

Risk identified

Our response

Our work as part of the audit of your Group’s consolidated financial statements specifically consisted of: reviewing the procedures implemented by your Group to – identify and assess these risks; familiarising ourselves with the risk assessment performed by – Management and the corresponding documentation, and assessing the written consultations provided by external advisers, where applicable; assessing the written confirmations obtained from your Group’s – external advisers; assessing the main risks identified, and reviewing the – assumptions used by Management to classify these risks as contingent liabilities; assessing the appropriateness of the information presented in – the notes “Highlights”, 1.3 and 9.2 to the consolidated financial statements. Our work as part of the audit of your Group’s consolidated financial statements specifically consisted of: reviewing the procedures for implementing the impairment test – in relation to the shareholding in Dooya; assessing, in particular via meetings with Management and by – comparison with market data, the main data and assumptions on which the estimates are based, notably cash flow forecasts, the long-term growth rate and the discount rate; analysing the market outlook for Dooya; – performing sensitivity analyses on the impairment tests; – comparing the recoverable amount of the shareholding in – Dooya with the net book value. Our response

Your Group’s business activities are conducted within a complex and continuously changing international regulatory framework, which varies depending on the countries and over time, and applies to extremely different aspects. In that context, these activities may entail risks, commercial, wage-related or tax disputes, or litigious situations. As specified in notes “Highlights”, 1.3 and 9.2 to the consolidated financial statements, Group Management exercises its judgement, and uses estimates and assumptions when measuring these risks. Some of these risks are classified as contingent liabilities, as described in notes “Highlights” and 9.2 to the consolidated financial statements and, in this regard, no provision has been made for them in the Group’s financial statements. We have considered that the classification of the disputes as contingent liabilities is a key audit point in view of the amounts in question, and the level of judgement required from Management to determine them. At 31 December 2018, the jointly controlled shareholding in the Dooya company totalled €132.1 million, as indicated in note 2.4.1 to the consolidated financial statements. At 31 December 2018, your Group reassessed the value of the equity-accounted investments under the procedure set out in note 13.1 “Investments in associates and joint ventures” to the consolidated financial statements. Each investment is identified as a Cash Generating Unit (CGU). An impairment test involves comparing the recoverable amount of the CGU with its book value. 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 at year-end, no impairment is recognised. However, if this amount is lower than the net book value, an impairment loss equal to the difference is recognised. We considered the valuation of the jointly controlled shareholding in the Dooya company to be a key point in our audit as a result of its material amount in your Group’s financial statements and since determining the value-in-use is based on discounted forecast cash flows which require the use of assumptions, estimates or judgements by Management. As required by legal and regulatory texts, we have also verified, in accordance with professional standards applicable in France, the information on the Group provided in the Management Board’s management report. We have no observation to make with regard to the fairness of such information and its consistency with the consolidated financial statements. We certify that the consolidated Non-Financial Performance Statement provided for by Article L.225-102-1 of the Commercial Code is included in the information on the Group provided in the management report, it being specified that in accordance with the Risk identified SPECIFIC VERIFICATIONS —

MEASUREMENT OF THE JOINTLY CONTROLLED SHAREHOLDING IN THE DOOYA COMPANY

provisions of Article L.823-10 of said Code, we have verified neither the fair presentation nor the consistency with the consolidated financial statements of the information contained in this statement; this information must be the subject of a report prepared by an Independent Verifier. INFORMATION RESULTING FROM OTHER LEGAL AND REGULATORY REQUIREMENTS — APPOINTMENT OF THE STATUTORY AUDITORS We were appointed as Statutory Auditors of Somfy SA by your General Meetings of 24 May 2016 for KPMG SA and 12 May 2010 for ERNST & YOUNG et Autres.

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SOMFY – ANNUAL FINANCIAL REPORT 2018