SOMFY - Annual financial report 2019

04 MANAGEMENT BOARDMANAGEMENT REPORT

For these reasons, Somfy retains the geographic dimension as the key to understanding its performance to the extent that it optimally reports the underlying dynamics in the Group’s markets: the buoyancy of the construction and renovation market, momentum of distribution circuits, and changing occupant uses. A description of the performance of the different geographical areas can be found on page 15 of this report.

THE SOMFY BUSINESS MODEL

STAKEHOLDERS VALUE CREATION

CONTRIBUTIONS TO MODEL

PROFITABLE GROWTH MODEL

SOMFY SPIRIT

HUMAN ASSETS • 5,711 employees (1)

EMPLOYEES • Employee expenses = €359.2 million • Training = 83,996 hours (2) • Engagement = 82.1% (3) CUSTOMERS & USERS • CNPS (4) = 68 • Manufactured motors (5) = 179 million • Connected devices (6) = 5,167,909

Inspiring a better way of living accessible to all.

OUR VISION

INTELLECTUAL ASSETS • 2,122 patents filed • 23 Experts (Expert Program) FINANCIAL ASSETS • Stable shareholding = 72.21% • Cash flow = €220.1 million PRODUCTION ASSETS • Somfy in 58 countries • 8 industrial locations • CAPEX = €53.3 million SOCIETAL ASSETS • Matching contribution Les Petites Pierres 2019 = €145 thousand • Foundation budget 2019 = €350 thousand

Everyone around the world aspires for themselves and their loved-ones to enjoy a safe, healthy, and environmentally-friendly living environment. To meet these essential needs of improving living environments, Somfy creates innovative solutions for homes and buildings, in three key areas:

• comfort and well-being for everyone at all ages; • the security of people and property; • protection of the environment.

INVESTORS • Sales = €1,200.2 million • COR = €204.8 million • ROCE = 22.2%

OUR AMBITION

To be the preferred partner for window & door automation.

SUPPLIERS • Local purchase volume (< 500 km) = 45.9% ENVIRONMENT • 50%+ Act for Green products®

OUR STRATEGIC FRAMEWORK 4 strategic pillars serving our 2030 ambition:

• Standby consumption of motors sold in 2019 = 37.41 kg CO 2 /year (7)

Forward-looking in Smart Living

Rising value to customers

Delivering performance

Inspiring & Engaging

NATURAL ASSETS • Low consumption of natural resources

CITIZENS • 545 unique participants to solidarity days

OUR KEY ACTIVITIES

• Research & Development • Marketing • Specification

• Assembly • Distribution • Sales

(1) Exclusing temporary workers (2) Social reporting scope (3) Response rate to internal engagement survey (4) Customer Net Promoter Score (customer satisfaction indicator) = % of promoters – % of detractors (5) Numbers of motors manufactured since Somfy creation

(6) Numbers of objects connected with Somfy cloud (7) According to standards of PEP ecopassport®

A SUSTAINABLE DEVELOPMENT POLICY IN LINE WITH THE GROUP’S AMBITION AND VISION — KEY FEATURES OF THIS POLICY With the strategic framework Ambition 2030 rolled out over the course of 2019, Somfy is incorporating its Corporate Social Responsibility (CSR) ahead of its strategy in order to make it the foundation for the Group’s sustainable growth. The CSR topic features in each of the four strategic pillars of Ambition 2030. This thought process has helped to formally set out Somfy’s sustainable development policy, which is structured into four sections in line with each of the pillars of Ambition 2030: Improving living environments for all; 1. Consumer respect; 2. Reduction of environmental impact; 3. Employee commitment. 4.

Given that ethics in everyday behaviour and compliance with the law are prerequisites, they form a transversal axis of this sustainable development policy. The four sections of Somfy’s sustainable development policy respectively address four long-term objectives, which are themselves structured into three-level action plans: immediate compliance, three-year strategy and ambition by 2030. These four long-term objectives are: to make progress in achieving the vision, “Inspiring a better way – of living accessible to all”; to have loyal customers and consumers who trust the Group; – to make the environment an innovation driver for Somfy and its – value chain; to involve and motivate employees in line with the vision. – These objectives are consistent with the sustainable development policy pursued in 2019, the main programmes of which are developed as part of the management of the non-financial risks expanded upon below.

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SOMFY – ANNUAL FINANCIAL REPORT 2019