SOMFY_ANNUAL_FINANCIAL_REPORT_2017

09 LEGAL DOCUMENTS

STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

To the General Meeting of Somfy SA,

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. 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 consolidated 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 consolidated financial statements as a whole, and in forming our opinion thereon. Accordingly, we do not provide any opinions on specific items of the consolidated financial statements.

OPINION —

In compliance with the engagement entrusted to us by your General Meeting, we have audited the accompanying consolidated financial statements of Somfy SA for the year ended 31 December 2017. In our opinion, the consolidated financial statements provide a true and fair view of the assets and liabilities and of the financial position of the Group at 31 December 2017 and of the results of its operations for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union. The audit opinion expressed above is consistent with 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 consolidated financial statements” of this report. Goodwill shown on the Group’s balance sheet at 31 December 2017 was €197 million against total assets of €1,183 million. The Group performs impairment tests on these assets, the procedures for which are set out in note 5.1.2 to the consolidated financial statements. The impairment tests consist in determining the recoverable value of a Cash Generating Unit, which is the higher of the value-in-use and the fair value less sale costs. Value-in-use is determined based on cash flows, which are estimated using plans or budgets over a maximum period of five years; beyond that date, the cash flows are extrapolated by applying a constant or decreasing rate of change, and are discounted by using long-term post-tax market rates, which reflect the market’s estimates of the time value of money and the specific risks inherent to the assets. We considered that the measurement of these goodwill amounts is one of the key points of the audit due to their material amount in the Group’s financial statements and because determining the recoverable value, which is usually based on discounted forecast future cash flows, requires the use of assumptions, estimates, or judgements by Management, as specified in note 1.3 to the consolidated financial statements. MEASUREMENT OF GOODWILL Risk identified

Our response

Our work as part of the audit of the Group’s consolidated financial statements specifically consisted in: reviewing the processes for carrying out these impairment tests; – corroborating, including via meetings with Management, the – main data and assumptions on which the estimates are based, notably future cash flow forecasts, long-term growth rates and discount rates; assessing the consistency of the forecasts with past – performance, the market outlook, and the performance track record of the Group; performing sensitivity analyses on impairment tests; – assessing the appropriate nature of the information provided in – the notes to the consolidated financial statements.

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SOMFY – ANNUAL FINANCIAL REPORT 2017