SOMFY - Annual financial report 2019

04 MANAGEMENT BOARDMANAGEMENT REPORT

benefits for the end user cannot be fully fulfilled unless all stakeholders in the ecosystem contribute to and play their part in value creation through partnerships. Development model Providing useful, safe, simple and accessible solutions is at the heart of the value creation model that Somfy develops with all its stakeholders. This commitment influences the adoption of new technologies by the user and by the building industry, as well as the adaptability of solutions to each person’s own habits, to ensure a better living environment for all. Today, Somfy continues: to create and develop new markets as part of a business model – that will enable everyone – the Group and its stakeholders – to provide their own distinctive features and share the benefits; to provide tailored and sustainable solutions that promote – energy savings and offer comfort and security, and to do so by implementing the vision that guides the Group – “Inspiring a better way of living accessible to all”, and its new ambition, “Being the preferred partner for window and door automation”. In order to ensure its continuing development, a three-year strategic plan, Believe & ACT!, was rolled out between 2017 and 2019, incorporating four drivers: “Closer to our End Users”, “Bolder on the Interior Market”, “Stronger on Operational Excellence” and “Better Together”. In 2019, Somfy realised that its markets were changing at an accelerated pace, led by changing lifestyles and working patterns, the growing digitalisation of houses and buildings, the need for better energy efficiency, ever shorter innovation cycles, and

smartphone driven connectivity. These changes are mirrored in the company and call for rapid responses and innovative solutions. Somfy has therefore looked ahead to the next ten years in order to develop a new strategic framework, Ambition 2030 , which is based around four pillars: delivering on performance, with a new segmentation of its – activities and territories; adding more value for customers and users, through Somfy’s – products, services and contribution to a more sustainable development; inventing the smart living of the future, by offering innovation – and partnerships; a new mindset, “One Somfy, One Team”, which is the human – pillar of Ambition 2030, to leverage the strength of being a Group. In order to address the increasingly radical transformations of the building industry and oversee the objectives of its ten-year project, Ambition 2030, on 1 January 2020 the Group implemented a new structure guided by three major principles: a function-based structure, constructed around global – professions in order to support the Group’s development; a more customer-centric organisation, with a reduced number – of interfaces to ensure rapid decision-making and to optimise the allocation of resources; an organisational model that facilitates the digitalisation of – products, customer relations and operations. BASIC ORGANISATIONAL PRINCIPLES OF SOMFY

General Management

Humans Resources & Organisation

Engineering & Customer Satisfaction

Strategy & Insights

Products & Services

Operations & Supply Chain

Finance

Sales

Sales

Central Europe

France

Southern Europe

Northern Europe

Eastern Europe

North America

Middle East &Africa

Latin America

Asia-Pacific (inc. China)

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SOMFY – ANNUAL FINANCIAL REPORT 2019