SOMFY - Annual Financial Report 2020

03 NON-FINANCIAL STATEMENT

03

NON-FINANCIAL STATEMENT

The non-financial statement forms an integral part of the management report. It is presented separately for ease of reading. Throughout the non-financial statement, a pictogram showing a bulb indicates that the information exclusively concerns Somfy Activités SA, the Group’s main subsidiary.

PRESENTATION OF THE BUSINESS MODEL

A. PRESENTATION OF SOMFY — A VISION FOR SUSTAINABLE GROWTH

the adoption of new technologies by the user and by the construction industry and unleash the growth potential of the connected home. Somfy is a local stakeholder, with a presence on five continents, and adapts its product lines to the specific features of each of its markets. Somfy aims to be the preferred partner for opening and closing automation in homes and commercial buildings. In this way, Somfy contributes to the development of both its customers and its partners, by making the excellence of its products and services a constant priority. On 1 January 2020, the Group implemented a new organisation, guided by three major principles: a function-based architecture, around global business lines in – order to support the Group’s development; a customer-centric organisation, with reduced interfaces to – facilitate decision-making and optimise resource allocation; an organisational model that facilitates the digitalisation of – products, customer relations and operations. BASIC ORGANISATIONAL PRINCIPLES OF SOMFY Somfy designs, assembles and distributes motors and automated devices (remote controls and sensors) as well as intelligent systems which control their operation. Somfy’s main manufacturing activity is the assembly of subunits and parts designed by it but produced by subcontractor partners. The R&D activity anticipates peoples’ new habits and needs in relation to homes and buildings, designs the corresponding solutions, guarantees the performance and compatibility of products from the same brand and ensures their interoperability with other brands in the field of connected homes and buildings. DESCRIPTION OF GROUP ACTIVITIES

Somfy has spent the last 50 years making everyday life easier for millions of users around the world by developing smart home and building management solutions. The Group innovates to automate and connect all types of equipment to open, close and shade windows, terraces, doors and gates using connected motors and control solutions that operate them together using intelligence and make them interoperable with other household equipment. The Group’s growth model is guided by its vision, “Inspire a better living environment, accessible to all”. Somfy’s development model is based on the conviction that everyone, around the world, aspires to a safe, healthy, and sustainable living environment for themselves as well as for their loved ones. To meet these essential needs for improving living environments, Somfy creates innovative solutions for homes and commercial buildings in three areas: comfort and well-being for all and at all ages; – A SUSTAINABLE BUSINESS MODEL, ADAPTED TO THE LOCAL MARKET, WHICH BRINGS TOGETHER THE ENTIRE VALUE CHAIN At the forefront of the digitalisation of buildings, Somfy designs new functions for new and existing buildings that meet the aspirations of everyone. Providing useful, safe, simple and accessible solutions is the value creation model that Somfy develops with the help and for the benefit of all its stakeholders. The attractiveness of the Group’s ranges, their interoperability with other household devices, and their ease of use, all influence safety of people and property; – preservation of the environment. –

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SOMFY – ANNUAL FINANCIAL REPORT 2020