SOMFY - Half-Year Financial Report 2019

2019 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 02

NEW APPLICABLE STANDARDS AND INTERPRETATIONS NOTE 3.3 Standards, amendments and interpretations applicable within the European Union from the financial year beginning on or Note 3.3.1 after 1 January 2019

The Group has applied the following standards, amendments and interpretations as of 1 January 2019: Standards Content

Application date

IFRS 16

Leases

Applicable from 1 January 2019

Amendment to IFRS 9 Amendments to IAS 19

Prepayment Features with Negative Compensation Applicable from 1 January 2019

Plan Amendment, Curtailment or Settlement Long-term Interests in Associates and Joint Ventures 2015-2017 cycle (IFRS 3, IFRS 11, IAS 12, IAS 23) Uncertainty over Income Tax Treatments

Applicable from 1 January 2019

Amendments to IAS 28

Applicable from 1 January 2019

Annual improvements to IFRS

Applicable from 1 January 2019 Applicable from 1 January 2019

IFRIC 23

IFRS 16 “Leases”, which replaces IAS 17 “Leases”, and its related interpretations, introduces a single model for the recognition of lease contracts by the lessee, which requires the recognition of the assets and liabilities for all lease contracts, except for those with a term of less than 12 months, or those where the value of the underlying asset is low, for which exemptions exist. The beneficiary of the contract must recognise a usage right in their balance sheet assets in consideration for a financial debt in balance sheet liabilities, if the asset included in the lease contract is identifiable and they control the use of this asset, corresponding to the discounted value of future payments. Furthermore, instead of lease expenses associated with these leases, the Group has recognised amortisation expenses in operating profit and financial expenses in net financial expense. The restatement of lease contracts leads to an increase in operating result, financial expenses, non-current assets and financial liabilities. The Group’s lease agreements are relatively standard. The impact of this new standard primarily concerns the property lease contracts relating to Somfy’s various worldwide facilities and motor vehicle leases. The Group has a number of industrial or IT equipment leases of less significance.

The Group has adopted this standard with effect from 1 January 2019; for periods up to 31 December 2018, IAS 17 applies. Concerning transitional provisions, the standard is applied in a simplified retrospective manner. This method consists of recognising the cumulative effect of first-time application as an adjustment to opening equity, taking the right-of-use asset as equal to the amount of lease obligations. Somfy has opted to adopt the exemptions provided for short-term leases and low-value assets. Leases with a term of 12 months or less, as well as those relating to low-value assets (US$5,000 or less), have therefore not been restated and the corresponding lease payments continue to be recognised in operating expenses. Leases relating to low-value assets mainly concern small items of IT equipment. The lease term is defined on a case-by-case basis and corresponds to the non-cancellable period of the lease taking into account any optional periods that are reasonably certain to be exercised. The discount rate used to calculate the lease liability for each asset is determined based on the marginal borrowing rate at the date of first-time application of IFRS 16 (1 January 2019). This is the rate of interest the lessee would have to pay to borrow the funds needed to acquire the asset over a similar term and in a similar economic environment.

Impact of first-time application on existing leases on 1 January 2019 The impact of this first-time application on existing leases at 1 January 2019 was €42.1 million on non-current assets and financial debt and €6.8 million on EBITDA. The impact on shareholders’ equity, current operating result and net profit is not material. € thousands 01/01/19 Assets Net property, plant and equipment 42,105 TOTAL ASSETS 42,105 Liabilities Other non-current financial liabilities 30,671 Other current financial liabilities 11,434 TOTAL LIABILITIES 42,105

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SOMFY – HALF-YEAR FINANCIAL REPORT 2019