SOMFY_ANNUAL_FINANCIAL_REPORT_2017

07 CONSOLIDATED FINANCIAL STATEMENTS

Analysis by maturity Note 7.2.2.2 € thousands

€ thousands

31/12/17

31/12/16

31/12/17

31/12/16

Financial liabilities included in net financial debt calculation Financial assets included in net financial debt calculation

110,358

118,599

1 year or less

76,852 31,373

83,235 32,502

Between 1 and 5 years

2,164

288

5 years or more

2,143

2,872

Marketable securities –

–

214

TOTAL

110,368

118,609

Loans –

2,095

74

Miscellaneous –

70

–

Analysis by rate Note 7.2.2.3 € thousands

Cash and cash equivalents NET FINANCIAL DEBT Net financial surplus. (–)

212,834 –104,640

133,847 –15,536

31/12/17

31/12/16 15,609 15,815 87,185 118,609

Variable rate

6,355

Fixed rate

19,605 84,408 110,368

The financial liabilities included in net financial debt include the debt relating to the put options granted to the holders of non-controlling interests and to earnouts, which amounted to €78.1 million at 31 December 2017 and €80.4 million at 31 December 2016, as well as to deferred settlements of €5.2 million at 31 December 2017 and €5.6 million at 31 December 2016. Restated for these items, the net financial surplus was €187.9 million at 31 December 2017, compared with €101.6 million at 31 December 2016. Note 7.2.4 Derivative financial instruments DERIVATIVE FINANCIAL INSTRUMENTS All derivative financial instruments are measured at their fair value. Fair value is either the market value for listed instruments, or a value provided by financial institutions in accordance with usual criteria (over-the-counter market). Derivative financial instruments primarily comprise foreign exchange contracts, raw material hedging contracts and interest rate swaps. For derivatives designated as cash flow hedge instruments, the effective portion of fair value movements of the derivatives is recognised in items of other comprehensive income and accumulated in the hedging reserve. Any ineffective portion in the fair value movement of derivatives is immediately recognised through net result. The fair value movements in foreign currency, raw material and interest rate hedging instruments ineligible for hedge accounting are recognised in net financial income/expense. The fair value of derivative instruments is recognised in the balance sheet under specific items: “current and non-current asset derivative instruments” or “current and non-current liability derivative instruments” depending on the nature of the hedged good. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value measurements are specified by level in accordance with the following fair value hierarchy: the instrument is quoted on an active market (Level 1); – measurement requires the use of valuation techniques – drawing on observable data, either directly (prices) or indirectly (as derived from prices) (Level 2); at least one significant component of fair value is based on – non-observable data (Level 3).

Non-interest bearing

TOTAL

Non-interest bearing financial liabilities mainly include put options granted to holders of non-controlling interests and earnouts. Analysis by currency Note 7.2.2.4 € thousands 31/12/17 31/12/16 Euro 29,568 36,772 Other* 80,800 81,837 TOTAL 110,368 118,609 Including the CNY-denominated put option granted to minority * shareholders in Dooya (€55.1 million at 31 December 2017 compared with €58.7 million at 31 December 2016). Secured liabilities Note 7.2.2.5 The Group had no liabilities secured by collateral at 31 December 2017. Covenants Note 7.2.2.6 At 31 December 2017, Somfy SA had a total of €200.0 million undrawn medium-term loan facilities (confirmed credit lines) with seven banks. Funds made available by the credit institutions are subject to Somfy SA commitment to comply with financial covenants based on the Group’s financial structure (net financial debt/shareholder’s equity) and its ability to repay (net financial debt/EBITDA). Somfy SA was in compliance with all of these covenants at 31 December 2017. Somfy SA also had undrawn overdraft facilities totalling €53 million at 31 December 2017. Note 7.2.3 Analysis of net financial debt The net financial debt corresponds to the difference between financial assets and financial liabilities. Notably it takes into account unlisted bonds receivable, issued by certain companies in which shares are held or related entities, earnouts on acquisitions, liabilities relating to options granted to minority shareholders in fully-consolidated companies and deferred settlements of a financial nature. Not included are securities in non-controlling equity investments, deposits & guarantees and government grants.

97

SOMFY – ANNUAL FINANCIAL REPORT 2017