SOMFY - Annual financial report 2019

04 MANAGEMENT BOARD MANAGEMENT REPORT

The Somfy Foundation The Somfy Foundation is a lever that enables the Group to respond to the high expectations of its external and internal stakeholders that there should be consistency between what the Group says about improving living environments and its day-to-day actions. The Foundation wants to be a recognised player in the fight against poor housing. The Foundation combines financial sponsorship (each year €350,000 is allocated to the Somfy Foundation) and human sponsorship (every Somfy Activités SA employee can give three working days to the Somfy Foundation’s initiatives). The ambition upheld by the Foundation is to continue to build the human connections that form a balanced society, develop sustainable relationships and collaborate with community partners identified as project participants and leaders, by connecting Somfy employees via human or skills sponsorship. This helps promote the values of solidarity within the company. Seven different formats enable Somfy employees to find the one that suits them. Somfy offers employees wishing to do so to offer help to organisations who request it via their business expertise, either in the form of long-term individual support (Solidarity Talents), or in the form of interactive classes for several organisations (Solidarity Workshops). Human sponsorship is also provided by the employee giving time to renovation projects, or projects to improve premises (Solidarity Projects). This format often takes the form of a team initiative. Another collective format is that of the hackathon organised each year for the benefit of organisations to help them resolve any challenges that they face (Solidarity Challenges). Lastly, support for employees is possible to help them take their Solidarity Leave: they are granted support and a budget to enable them, over their time off and for a trip for which they are responsible, to work with a local organisation. The last format is intended to support employees ahead of their retirement, by helping them to explore the voluntary sector and to help them prepare for this new stage. Les Petites Pierres Endowment Fund The Endowment Fund Les Petites Pierres is a crowdfunding platform initiated by the Somfy Foundation. Based on a digital crowdfunding platform and personalised support for organisations, it allows individuals to donate to charity projects in the field of acceptable housing, with each donation matched by the Endowment Fund, on the principle of one euro matched for each euro donated. The ongoing development of the platform has led the Endowment Fund to open itself to other partners. In addition to the Somfy Foundation, other major backers of the Fund include the Schneider Electric Foundation, the BTP+ Foundation and the company Valfidus. A House is A Home The Group considers it important to make a citizen commitment in the countries in which it operates. With the A House is A Home programme, launched in January 2015, the Somfy Foundation is taking action internationally outside the scope of Somfy Activités SA. Through this programme, Somfy subsidiaries work alongside the Somfy Foundation. In consultation with the Foundation, subsidiaries identify projects which promote decent living conditions for the most underprivileged, and provide financial support, often topped up by skill-based patronage from their employees. The A House is A Home programme was consolidated in 2017 with the introduction of human sponsorship in certain subsidiaries in addition to the financial support provided.

Employee involvement As part of the Somfy Foundation’s Solidarity Missions , all employees have the opportunity to commit some of their working time, together with the Foundation, to offer their energy and skills to the charitable organisations. In France, in particular, employees have a right to three solidarity days each year . This is part of a human, pro bono , sponsorship approach which offers organisations essential support and also creates value for company employees. Results of Somfy’s citizen commitment scheme and sponsorship policy Somfy Foundation initiatives In 2019, 87 Solidarity Missions were offered to Somfy Activités SA staff, and 477 individual employees took part in a Solidarity Mission in 2019 in France. For 2019, the Somfy Foundation granted funding of €176,406 to the Les Petites Pierres Endowment Fund. Les Petites Pierres In the 2019 financial year, 83 non-profit projects were financially supported by the Les Petites Pierres Endowment Fund. This represents total grants provided to organisations for 2019 of €1,157,873, representing 4,303 donations by individuals with €650,617 matched by partners of the Fund, including €145,000 from the Somfy Foundation. An impact study conducted in 2019 highlighted that in addition to project funding, non-profit organisations derive great benefits from assistance with digital skills learning, thereby helping them to leverage their various communities and other partners independently. A House is a Home In 2019, ten projects were proposed as part of this programme. Seven countries took part in the programme and provided financial or human support to the Somfy Foundation, facilitating the involvement of 67 individual employees. The countries involved were France, the United States, Germany, Hungary, Belgium, Brazil and Australia. Employee involvement A single indicator is used to measure the strength of Somfy’s entire policy relating to societal commitment. It relates to the involvement of employees in the Foundation’s initiatives, measured in the number of unique employees who have participated in the Foundation’s work. The number of employees participating in these Solidarity Missions has increased steadily since these initiatives were launched in July 2012. In 2019, 545 unique employees took part in a Somfy Foundation initiative around the world. A COMMITMENT COMPONENT IN THE REGIONS AND EMPLOYMENT AREAS IN RELATION TO STAKEHOLDERS Somfy employees are also engaged in local and national initiatives, primarily through professional associations but also through local charitable organisations thereby boosting the attractiveness of local areas and ecosystems.

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SOMFY – ANNUAL FINANCIAL REPORT 2019