SOMFY_ANNUAL_FINANCIAL_REPORT_2017

07 CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

ACCOUNTING PRINCIPLES NOTE 1 77

101

ANALYSIS OF CASH FLOW NOTE 8 STATEMENT

Note 1.1

Consolidated financial statements – Basis for

77

preparation

Note 8.1 101

Cash and cash equivalents Intangible assets and property,

Note 1.2 77 Note 1.3 77 Note 1.4 77

Compliance with accounting standards

Note 8.2

101

plant and equipment

Judgements and estimates

Note 8.3 101

Change in working capital requirements Companies acquisitions and disposals, net of cash acquired or disposed of

New applicable standards and interpretations

Note 8.4

101

CONSOLIDATION SCOPE NOTE 2 79 Consolidation method Note 2.1 79 Foreign exchange translation Note 2.2 79 Business combinations Note 2.3 79

101

PROVISIONS AND CONTINGENT NOTE 9 LIABILITIES

Note 9.1 101 Note 9.2 102

Provisions

Note 2.4

Non-current assets (or groups thereof) held for sale or distribution and discontinued operations

81

Contingent liabilities

EMPLOYEE INFORMATION NOTE 10 103 Workforce Note 10.1 103 Employee benefits Note 10.2 103 Share-based payments Note 10.3 106 CURRENT AND DEFERRED TAX NOTE 11 107 Tax proof Note 11.1 108 Deferred tax recognised in items of other Note 11.2 comprehensive income 108 Analysis by nature Note 11.3 109

SEGMENT REPORTING NOTE 3 82 PERFORMANCE-RELATED DATA NOTE 4 83 Sales Note 4.1 83 Other operating income and expenses Note 4.2 84 Alternative performance measures Note 4.3 84 Inventories Note 4.4 85 Trade receivables Note 4.5 85 Other current and non-current receivables Note 4.6 86 Other current and non-current liabilities Note 4.7 86 PROPERTY, PLANT AND EQUIPMENT NOTE 5 AND INTANGIBLE ASSETS 86 Goodwill and impairment tests Note 5.1 86 Other intangible assets Note 5.2 88 Property, plant and equipment Note 5.3 91 EQUITY AND EARNINGS PER SHARE NOTE 6 94 Equity Note 6.1 94 Earnings per share Note 6.2 94

110

OFF-BALANCE SHEET NOTE 12 COMMITMENTS

Note 12.1 110 Note 12.2 110

Commitments given Commitments received

Note 12.3

Commitments to acquire additional shares in

110

companies not fully-consolidated

110

INVESTMENTS IN ASSOCIATES NOTE 13 AND RELATED PARTIES

Note 13.1 110 Note 13.2 110

Investments in associates Related-party disclosures

FINANCIAL ITEMS NOTE 7 95

STATUTORY AUDITORS’ FEES NOTE 14 111 LIST OF CONSOLIDATED AND NOTE 15 EQUITY-ACCOUNTED ENTITIES 112

Note 7.1 95 Note 7.2 95 Note 7.3 99

Net financial income/(expense) Financial assets and liabilities Financial risk management policy

76

SOMFY – ANNUAL FINANCIAL REPORT 2017