SOMFY - Annual financial report 2019

04 MANAGEMENT BOARD MANAGEMENT REPORT

This restructuring, guided by a long-term project named Ambition 2030, will help improve the efficiency of operating processes, thanks in particular to a streamlined organisational structure as well as greater customer proximity and a better allocation of resources. It will also serve as a platform for defining and implementing the strategic plan over the coming years. Investment will continue to enable the Group to strengthen its positioning and competitive advantage within its core business, and will specifically focus on product innovation, optimising information systems with the roll-out of the new integrated management software package (SAP ERP), and the digitalisation of ranges and operations. The policy of openness and partnerships will be pursued in parallel, and will continue to fit in with the same strategy of collaborating with complementary partners and accessing new ecosystems that are compatible with the international standard Zigbee 3.0 (1) , thereby positioning the Group as an undisputed leader in the world of the connected home. The Group was not adversely affected by Brexit in 2019 and does not expect to be in 2020. However, within the context of the current epidemic (Covid-19), the global picture remains uncertain and is evolving rapidly. At this stage, it is difficult to measure the consequences in 2020 on business activity and on the Group in particular (2) .

LIST OF EXISTING BRANCHES (ARTICLE L. 232-1 OF THE COMMERCIAL CODE)

Somfy had no such branches at 31 December 2019.

VALUE OF INTERCOMPANY LOANS GRANTED (ARTICLE L. 511-6 3 BIS OF THE MONETARY AND FINANCIAL CODE)

Somfy SA had not granted any intercompany loans at 31 December 2019.

INFORMATION ON PAYMENT TERMS (ARTICLE L. 441-6-1 OF THE COMMERCIAL CODE)

Trade receivables specific to Somfy SA’s activity represent payment terms generally less than 45 days from the end of the month. Article D. 441 L.-1°: Invoices received , unpaid and overdue at year-end Article D. 441 L.-2°: Invoices issued , unpaid and overdue at year-end 0 day (for information only) 1 to 30 days 31 to 60 days 61 to 90 days 91 days or more Total (1 day or more) 0 day (for information only) 1 to 30 days 31 to 60 days 61 to 90 days 91 days or more

Total (1 day or more)

(A) Late payment ranges Number of invoices concerned

–

–

43

–

–

–

–

52

Total value of invoices concerned exc. VAT Percentage of total value of purchases exc. VAT over the financial year Percentage of revenue exc. VAT over the financial year

–

–

1,331,500

–

–

–

–

656,266

–

–

–

–

–

11.32% –

–

–

–

–

17.71% –

–

–

–

(B) Invoices excluded from (A) relating to contested or unrecorded trade payables and receivables Number of invoices excluded – – – – – – – – – – – – Total value of invoices excluded exc. VAT – – – – – – – – – – – – (C) Standard payment terms used (contractual or statutory period - Article L. 441-6 or Article L. 443-1 of the Commercial Code)

R Contractual terms: within 10 days after the end of the month

R Contractual terms

Payment terms used for calculating late payments

* Statutory terms * Statutory terms The radio protocol Zigbee 3.0, the leading standard for the connected home, has more than 400 partners, including Amazon, Apple, Google, Philips, Samsung and (1) Somfy. It facilitates convergence and interoperability between each of these manufacturers’ products. See information on this subject in the press release of 23 March 2020 in chapter 10 Recent events since 2 March 2020. (2)

17

SOMFY – ANNUAL FINANCIAL REPORT 2019