SOMFY - Annual financial report 2018

07 CONSOLIDATED FINANCIAL STATEMENTS

Other current liabilities Note 4.7.1

31/12/18

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

31/12/17

€ thousands

Social liabilities Tax liabilities Deferred income

77,322 10,695

72,457 10,085

82,001 11,396

638

812

812

Non-current asset suppliers

5,126 1,442

5,755 1,740

6,053 2,180

Other TOTAL

95,224

90,848

102,442

Other non-current liabilities Note 4.7.2

31/12/18

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

31/12/17

€ thousands

Other operating liabilities Other non-operating liabilities

127

227

227

1,125 1,252

1,666 1,893

1,666 1,893

TOTAL

INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT NOTE 5 — GOODWILL AND IMPAIRMENT TESTS NOTE 5.1

Goodwill Note 5.1.1

Acquisition goodwill is measured using the method described in note 2.3. Acquisition goodwill is subject to impairment tests at least once annually, or more frequently when events or changes in circumstances indicate that the goodwill has been impaired (indication of impairment, see note 5.1.2). Recognised impairment cannot be reversed.

Impairment tests Note 5.1.2

€ thousands

Value

At 1 January 2017

200,394

IAS 36 defines the procedures to be applied by a company to ensure that the net book value of its assets does not exceed their recoverable amount, that is the amount to be recovered from the use or the disposal of the assets. Except for goodwill and intangible assets with an indefinite life, which require systematic annual impairment tests at year-end, the recoverable amount of an asset is estimated every time there is an indication that the asset may be impaired. A recoverable amount is estimated for each individual asset. If it is not possible to do so, assets are brought together in Cash Generating Units (CGUs), whose recoverable amount is subsequently measured. A Cash Generating Unit is the smallest group of assets to which the asset belongs, which generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. CGUs have been identified within the Group. They primarily comprise the Group’s legal entities that have been acquired through merger and acquisition transactions. An impairment test involves comparing the recoverable amount of the CGU with its book value. The recoverable amount of an

Impact of changes in consolidation scope and method Impact of changes in foreign exchange rates

–

-3,552

Charge for impairment AT 31 DECEMBER 2017

–

196,842

Impact of changes in consolidation scope and method Impact of changes in foreign exchange rates

-90,027

-446

Charge for impairment AT 31 DECEMBER 2018

-10,143 96,225

The change in consolidation method resulted in a €90.5 million reduction for Dooya and a €0.5 million increase for Neocontrol (see Highlights). The charge for impairment related to Somfy Protect by Myfox for €9.7 million and Neocontrol for €0.4 million (see Highlights).

93

SOMFY – ANNUAL FINANCIAL REPORT 2018