SOMFY - Annual financial report 2019

04 MANAGEMENT BOARDMANAGEMENT REPORT

SOCIAL POLICY PERFORMANCE —

The professional development of employees is critical to their engagement, which in turn drives innovation and performance and is therefore a key growth driver. The Group’s appeal and its employees’ engagement are linked to the professional development offered and also to the respect they are given through health and safety, and more generally their working conditions. In 2018, Somfy’s biennial commitment survey had a participation rate of 82.1% , a high score that demonstrates the deep commitment of employees.

OVERALL GROUP WORKFORCE AND EMPLOYEE STRUCTURE BY AGE AND GEOGRAPHIC REGION

At 31 December 2019, total Group workforce was 5,711 people (excluding temporary workers), compared with 5,677 in 2018, an increase of 0.6%, and was analysed as follows:

1,921 1,954

4.2%

2018 2019

9.6%

1,637 1,591

France Germany Central & Eastern Europe Northern Europe Southern Europe, Middle East & Africa Americas Asia-Pacific

36.5%

1,401 1,427

561

27.2%

495

223 178

6.4%

12.5%

25 years old

25-35 years old

35-45 years old

45-55 years old

> 55 years old

3.6%

IMPROVING THE VISIBILITY OF RECRUITMENTS, RETAINING TALENTS AND DEVELOPING THE SKILLS THE COMPANY NEEDS

Human capital is an important element of the business model. Through their skills and expertise, this human capital gives Somfy the ability to respond effectively to the challenges posed by the digital transformation of companies, new business models and the development of the company. In order to prevent an inadequacy of talents and skills in this human capital, Somfy has introduced a policy of employee professional development which aims to gain the maximum potential from this human capital by developing their internal employability. The areas of this policy are: improving the visibility of internal recruitments, retaining talents, and the development of the skills the company needs. In addition, Somfy is pursuing a policy that maximises the results of its societal and environmental measures to make it attractive to external candidates. The indicators are the following: staff turnover, change in the implementation rates of the People Review (support in professional development via the assessment of skills and the recognition of performance). These indicators and all social data are monitored within the scope known as the CSR (Corporate Social Responsibility) scope, in which the monitoring of such data makes sense. It relates to 41 Group companies and a workforce at 31 December 2019 of 5,269 people, representing 92.3% of the Group’s total workforce. Plan to support the professional development of employees and internal mobility

Europe Business Area (Poland, Czech Republic, Hungary, Romania, Russia, Lithuania and Ukraine). The ambition is to continue to roll out this solution to other subsidiaries in 2020 in order to continue to improve internal mobility within the Group. Improvement of the People Review process The People Review process helps to identify those of the employees capable of moving on to positions of greater responsibility within the Group. This process feeds into succession plans to ensure the continuity of execution necessary for the Group's performance in the event of an employee's departure. It also makes it possible to identify the collective training needs of employees. This process relies on support that is progressively enhanced and whose international roll-out (SOPEM in Poland in particular) is continuing. Internal mobility and promotion Each time this is possible, Somfy prioritises internal mobility by drawing on employees who are in a position to progress within the Group. Skills mapping A substantial part of Somfy’s success and appeal is based on its ability to develop the talent of its current and future employees. In order to make development paths more effective, Somfy has a shared framework to map its jobs and its skills. Launched in September 2018, this project aims to identify its business sectors and existing jobs, in order to define the skills required to perform them. At the end of 2019, 60% of Somfy’s professions were covered. This framework is integrated into the performance assessment tool which feeds the People Review process. This facilitates a uniform assessment of employees’ skills to identify and then address the gap between skills needs and skills recorded.

Roll-out of the application tool within the Group

In order to promote internal mobility within the Group, a single tool for managing internal and external applications has been implemented across all the French legal entities and the Eastern

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SOMFY – ANNUAL FINANCIAL REPORT 2019