SOMFY - Annual financial report 2019

04 MANAGEMENT BOARD MANAGEMENT REPORT

NEW ORGANISATIONAL STRUCTURE —

architecture to support the Group’s development; a customer-centric organisation with reduced interfaces to facilitate decision-making and optimise resource allocation; and finally a strong focus on the digitalisation of its products, customer relations and operations . The first definitive act of this change is the appointment of a new Executive Committee, along with the creation of a Strategy & Insights Division, the reorganisation of the three activities that are Home & Building, Access and Connected Solutions into three Divisions: Products & Services, Engineering & Customer Satisfaction, and Operations & Supply Chain. Finally, the sales subsidiaries will be split into two new geographical areas, for greater transversality. In addition to the new organisation, the Executive Committee—under the supervision of Jean Guillaume Despature, Chairman of the Management Board—will work on defining and implementing a new, three-year strategic plan, based on the achievements brought by the Believe & Act plan. growing interest of all types of consumers in motorised and connected solutions for the home, due to the need for comfort and safety and the growing awareness of energy and environmental issues. The most noteworthy growth was recorded in Central & Eastern Europe, as a result of excellent performances in Poland, Hungary and the Czech Republic, as well as Northern Europe. Significant increases were also posted in China, France and Germany, as well as in Central & South America and North America, thanks to a sharp upturn over the last quarter, particularly in Brazil and the United States. Growth was however more modest in Asia-Pacific (excluding China) and Southern Europe. In contrast, the trend remained negative in Africa & the Middle East, although it improved significantly over the second half-year. Sales of the now equity-accounted Chinese subsidiary Dooya totalled €187.5 million over the financial year, an increase of 9.3% in real terms and 8.2% on a like-for-like basis.

The building industry is undergoing profound transformations with accelerated digitalisation, the need for greater energy efficiency, ever shorter innovation cycles and more. These are all challenges that Somfy has begun to tackle thanks to its Believe & Act strategic plan first implemented in 2017 but now need to take a step further. The current organisation, whose foundations date back to 2004, has enabled the Group to expand its range of applications, becoming a pioneer of smart home solutions and expanding its geographical presence. After a decade of strong and profitable growth and progress in its main market segments, Somfy aims to accelerate in order to continue establishing its leadership in its markets. In order to meet these challenges, the Group has set up a new organisation guided by three major principles: a function-based Over the year ended 31 December 2019, Somfy SA generated sales of €3.7 million. Net financial income amounted to €122.1 million, including €126.2 million in dividends paid by the subsidiaries in respect of their net profit for the year to 31 December 2018. Net profit was €115.0 million, after inclusion of a tax income of €2.9 million. CONSOLIDATED DATA — SALES Group sales were €1,200.2 million over the year just ended, an increase of 6.1% on a like-for-like basis, including 4.7% in the first half-year and 7.5% in the second, and of 6.5% in real terms. This expansion follows several years of steady growth and reflects progress within all geographical regions, with the exception of Africa & the Middle East, for contextual reasons. It attests to the PRESENTATION OF FINANCIAL STATEMENTS PARENT COMPANY DATA —

SALES BY CUSTOMER LOCATION

31/12/19

31/12/18

Change N/N-1

Change N/N-1 on a like-for-like basis

€ thousands

France

341,548 186,538 134,911 152,278 121,910 64,236 57,595 14,923 102,972 23,331

324,493 178,339 120,489 131,548 119,152 67,209 54,834 13,740 93,645 23,270

5.3% 4.6%

5.2% 4.6%

Germany

Northern Europe

12.0% 15.8% 2.3% -4.4% 5.0% 8.6% 10.0%

12.1% 15.3% 1.7% -2.5% 3.0% 6.8% 4.5% 6.7% 6.1%

Central & Eastern Europe

Southern Europe

Africa & Middle East

Asia-Pacific (excluding China)

China

North America

Central & South America

0.3% 6.5%

TOTAL SALES

1,200,241

1,126,719

15

SOMFY – ANNUAL FINANCIAL REPORT 2019