SOMFY_ANNUAL_FINANCIAL_REPORT_2017

09 LEGAL DOCUMENTS

09

LEGAL DOCUMENTS

STATUTORY AUDITORS’ REPORT ON THE PARENT COMPANY FINANCIAL STATEMENTS

To the Shareholders,

OPINION —

OBSERVATION —

In compliance with the engagement entrusted to us by your General Meeting, we have audited the accompanying parent company financial statements of Somfy SA for the year ended 31 December 2017. In our opinion, the parent company financial statements provide a true and fair view of the assets and liabilities and of the financial position of the company at 31 December 2017 and of the results of its operations for the year then ended in accordance with French accounting principles and methods. The audit opinion expressed above is consistent with the content of our report to the Audit Committee. BASIS FOR OPINION — AUDIT FRAMEWORK We have performed our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described herein in the section “Statutory Auditors’ responsibilities for the audit of the parent company financial statements” of this report.

Without qualifying the opinion expressed above, we would draw your attention to note D – Accounting Rules and Methods to the financial statements, which sets out the change in the accounting method relating to the initial application of ANC regulation N° 2015-05 regarding forward financial instruments and hedging transactions, and its impact on the financial statements. JUSTIFICATION OF ASSESSMENTS – KEY AUDIT MATTERS — In accordance with the requirements of Articles L. 823-9 and R. 823-7 of the French Commercial Code ( Code de Commerce ) relating to the justification of our assessments, we inform you of the key audit matters relating to risks of material misstatement which, in our professional judgment, were of most significance in our audit of the parent company financial statements of the current period, as well as how we addressed those risks. These matters were addressed in the context of our audit of the parent company financial statements as a whole, and in forming our opinion thereon. Accordingly, we do not provide any opinions on specific items of the parent company financial statements. The net amount of the equity investments shown on the balance sheet was €377.2 million at 31 December 2017 against total assets of €708.7 million. The Group performs impairment tests on these assets, the procedures for which are set out in note D to the parent company financial statements. The carrying value is determined on the basis of several measurement factors, including net assets at the year-end, the level of profitability, the future outlook, and the share price in the case of listed companies. This carrying value is then compared with the historical value, in order to assess the need to record an impairment charge or not. We have considered that the valuation of these equity investments is a key audit point due to their material amount in the company’s financial statements, and because determining their carrying value requires the use of estimates or judgements by Management. MEASUREMENT OF EQUITY INVESTMENTS Risk identified

INDEPENDENCE

We conducted our audit engagement in compliance with independence rules applicable to us, for the period from 1 January 2017 to the issue date of our report and specifically we did not provide any prohibited non-audit services referred to in Article 5(1) of regulation (EU) N° 537/2014 or in the French Code of Ethics for Statutory Auditors.

134

SOMFY – ANNUAL FINANCIAL REPORT 2017