SOMFY - Annual financial report 2019

MESSAGE FROM THE MANAGEMENT BOARD

Jean Guillaume DESPATURE Chairman of the Management Board

Pierre RIBEIRO Member of the Management Board and Chief Financial Officer

Somfy achieved very healthy results in 2019 – organic growth met expectations, profitability grew strongly, and the Group stepped up its transformation in parallel. With a 6.5% increase in real terms, Group sales were in line with the sustained average pro forma trend of the last five years (6.2% growth). The financial year was marked by a strong sales performance in Europe and an acceleration in growth in the United States over the second half-year, a market that is starting to benefit from significant innovation initiatives relating to the development of interior products. In 2019, interior products and connected solutions acted as accelerators of Somfy’s growth. Current operating margin stood at 17.1% of sales and returned to its highest level in ten years. This improvement of 1.3 base points is the result of tight cost control and of the operational excellence dynamic that has been ongoing for three years, which in 2019 translated into productivity gains. Dooya (1) continued to record significant growth and also returned to a good level of profitability. The Group’s financial position grew considerably stronger with cash flow increasing 23% to €220.1 million, and a net financial surplus of €310.5 million at the end of the financial year. This was despite the negative impact of the recognition of €48.3 million in financial liabilities related to future property leases under the new IFRS 16. Somfy is developing in a market that is being structurally driven by the need for comfort, safety and energy efficiency in the home. In 2019, operational and financial performance reflected the relevance of the transformation strategy implemented over the last three years, based on four pillars (solution interoperability, interior products, operational excellence and CSR). From 2020, the new strategic framework – Ambition 2030 – driven by a ten-year vision, will allow the Group to further accelerate its transformation, notably thanks to a more functional structure and a segmentation of geographic regions and business lines, which will allow for better prioritisation of actions and investments. 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.

The Management Board

70% of Dooya’s profit is included in the Group’s consolidated net profit as a share of Somfy’s equity investment in this company. (1)

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SOMFY – ANNUAL FINANCIAL REPORT 2019