SOMFY_ANNUAL_FINANCIAL_REPORT_2017

07 CONSOLIDATED FINANCIAL STATEMENTS

31/12/16 € thousands

Hedging of balance sheet items

Hedging of off-balance sheet items

Total

Fair value

Types

4,511 1,673 3,882 3,613 2,054 3,588 4,157 1,855 1,257 1,293 –9,699

AUD CAD CHF CNY GBP HKD NOK PLN RUB SEK SGD THB USD ILS JPY

2,368

2,143 1,017 2,816 1,092 1,157 2,204 2,407 1,633 –5,826

–86 Forward sale and purchase

656

–45 –43

Forward sale Forward sale

1,066

–3,873

92 26

Forward purchase

2,521

Forward sale Forward sale Forward sale Forward sale Forward sale Forward sale Forward sale Forward sale Forward sale

896

–111 –158

1,384 1,750

221 Forward sale and purchase

223

–29

1,257

–

13

403 264 133 115

890 526 401

–148

791 534 167

–15

–1 –7

51

1,665

2,103

–438

–82 Forward sale and purchase

11,266

10,073

21,339

–375

Raw material risks

Interest rate risk

The majority of the Group companies’ financial liabilities is at variable rate. The Group applies hedge accounting to interest rate hedge instruments. The effective portion of fair value movements is therefore taken to items of other comprehensive income and the ineffective portion is recognised in net financial expense. The Group did not use any interest-rate hedge instruments during the 2017 financial year. Liquidity risk External Group financing essentially relies upon leases and medium-term credit facilities. Some debts are subject to compliance with covenants. The covenants are detailed in note 7.2.2.6. The Group does not use any revolving credit facilities and does not securitise its assets. The Group has access to confirmed medium-term bank facilities, which are undrawn to date (see note 7.2.2.6). Investment risk Given the composition of its marketable securities portfolio (interest bearing current accounts and term deposits) and the amounts involved, the Group’s exposure to investment risk is low.

Somfy SA protects against movements in raw material prices by placing firm orders with its suppliers (physical hedges for copper and zinc) and via hedging agreements for materials on the financial markets (copper and zinc paper hedges) on components that cannot be physically hedged. The Group is in a position to apply hedge accounting to a material component of a non-financial item under the provisions of IAS 39. As such, the effective portion of financial instruments implemented is therefore taken to equity and the ineffective portion is recognised in net financial expense. This treatment complies with the provisions of IFRS 9, which will be applied as from 1 January 2018. The impact of efficient hedges on equity was €0.1 million at 31 December 2017. The ineffective portion of hedges was nil at 31 December 2017.

31/12/17 Tonnes Hedging of off-balance sheet items € thousands

Fair value € thousands

Types

Copper

285 570 855

1,627 1,556 3,183

85 Swap-Options 6 Swap-Options

Zinc

91

100

SOMFY – ANNUAL FINANCIAL REPORT 2017