SOMFY - Annual financial report 2018

07 CONSOLIDATED FINANCIAL STATEMENTS

Dooya is deemed to be a Cash Generating Unit of material significance within the Group by virtue of its size and standing on both the Chinese and export markets. It is also the only Group entity operating under the Dooya brand. For this reason and given the change in governance detailed above, it meets the IFRS 5 criteria for classification as “Discontinued Operations”. The Group has replaced the term “Discontinued Operations” with the term “Operations treated in accordance with IFRS 5” throughout this annual financial report, terminology that is more appropriate to the transaction. Major impacts on 2018 Note 2.4.1 The impacts of the application of IFRS 5 at 31 December 2018 are as follows: Balance sheet The shareholding in Dooya is now equity-accounted for an amount of €132.1 million. This amount includes in particular the revaluation to fair value of the Dooya shares at the time of the change in governance for €16.2 million, and the equity-accounted net profit for the second half of the year of €1.4 million. 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. In terms of equity, deconsolidation of the put option had a positive impact of €35.8 million on reserves, which breaks down as follows:

Income statement Net profit from operations treated in accordance with IFRS 5 is analysed as follows:

€ thousands

31/12/18

Fair value revaluation of Dooya shares

16,200 -16,600 7,198 -4,168

Fair value of the derivative

Reclassification of translation reserves Share of Dooya's H1 2018 net profit NET PROFIT FROM OPERATIONS TREATED IN ACCORDANCE WITH IFRS 5

2,630

Cash flow statement At 31 December 2018, the item “Net cash flow from operations treated in accordance with IFRS 5” equated to the opening cash position of Dooya. Net financial debt The change in Dooya’s consolidation method had a positive impact of €42.1 million on the net cash surplus. It is detailed as follows:

€ thousands

31/12/18

Deconsolidation of Dooya's net financial debt (opening balance) Fair value of the derivative (put option) CHANGE IN NET FINANCIAL SURPLUS RELATED TO THE DOOYA TRANSACTION

58,654

-16,600

42,054

The definition and calculation details of the net financial debt are provided in notes 4.3.4 and 7.2.3. Additional information on the shareholding in Dooya is provided in note 13.1 relating to investments in associates and joint ventures.

€ thousands

31/12/18

Deconsolidation of the put option ( via reserves) Minority interests' share of Dooya's reserves

55,096 -12,092 -7,198

Reclassification of translation reserves

CHANGE IN RESERVES RELATED TO THE DOOYA TRANSACTION

35,806

84

SOMFY – ANNUAL FINANCIAL REPORT 2018