SOMFY - Annual financial report 2019

04 MANAGEMENT BOARDMANAGEMENT REPORT

Action to support resident populations and the local ecosystem in Haute-Savoie

CONDITIONS FOR DIALOGUE WITH STAKEHOLDERS

A communication policy that is reviewed annually

In order to promote regional development, Somfy participates in and supports higher education and research establishments along with the Haute-Savoie district. Somfy is a founding member of the Fondation Université Savoie Mont Blanc (USMB) university foundation and the Club des Entreprises de l’Université Savoie Mont Blanc business club and works with the University to bring together the academic and business worlds. Somfy also sits on the Board of Directors of Polytech Annecy-Chambéry. In this way, the University has representatives to facilitate job openings for its students who are seeking skills training contracts and can also identify new training requirements in the region, such as training in Polytech Annecy-Chambéry’s “Data Usage Computing” which meets the needs of the industry of the future and of Somfy today. This policy promotes the emergence of pool of talents for the company as can be seen in particular in Somfy’s presence at “work-placement job dating” events and on work placement events organised by the Business Club. Somfy is heavily involved in competitiveness centres and technology or methodology expertise clusters active in the Arve Valley (Haute-Savoie), where the Group’s head office is located. These organisations, boosted by the economic action of the Auvergne-Rhône-Alpes region, have more wide-ranging and deeper effects thereby laying the ground for national or European initiatives with selected partners in the future. Somfy is a member of the governing Board of the CIMES Competitiveness Center and chairs the organisation Thésame. These collaborations enable the company to be committed to enhancing the attractiveness of the local area whilst continuing to benefit from the input of skills and innovations into its design and industrialisation processes. The ecosystems that it includes also enable interaction and sharing between all Somfy’s regional stakeholders: institutions, associations, local suppliers and customers. Lastly, Somfy is a sponsor of various initiatives in the Cluses and Bonneville areas to ensure that local populations, employees living near their place of work and their children can all see and benefit from Somfy’s involvement locally. It involves supporting sports clubs where children of local employees play (often shift workers). Action to support top athletes Somfy has been a partner of the French Ski Federation and the French Biathlon Team since 2005, and all Nordic Skiing since 2014 (Biathlon, Cross Country, Ski Jumping, Nordic Combined). A committed supporter of sporting initiatives for more than 20 years, the Group also sponsors established and emerging athletes individually: Anaïs Bescond, Clément Parisse, Antonin Guigonnat, Julia Simon and Émilien Jacquelin. For more than ten years, Somfy has been a partner of Martin Fourcade, multiple Olympic medallist and 11-time world champion. Martin Fourcade is a Somfy brand ambassador and sponsor of the Les Petites Pierres Endowment Fund. In 2019, Somfy supported three local ski clubs that provide biathlon training to young people and enabled them to meet their idols.

The Group annually reviews its communication plan in relation to its stakeholders, to ensure they are kept regularly informed and to facilitate as much as possible constructive discussions in relation to the Group’s strategy and management with the stakeholders identified as priorities: employees, shareholders, investors, customers, users, suppliers and regional governments. Ongoing dialogue with public authorities Involved in the development of the areas in which the Group is located, Somfy has led dialogue in France with the various levels of public decision-making to contribute to action in the areas of education, employment, research and development, or to support cultural and sporting projects for local people, by trying where possible to relay these events within the company for the benefit of employees. The cultural and sporting programmes include: Plein Feux Festival (Bonneville), MB Race (Pays du Mont-Blanc) and the centenary of Carpano & Pons (Cluses). This collaboration can take the form of patronage or sponsorship. It is within this context that in 2019, Somfy took responsibility as leader in the Arve Valley region of the initiative “France, one chance, companies commit!”, for the promotion of inclusion within companies, thereby supporting a French government initiative, covered by DIRECCTE (French Regional Department of Enterprise, Competition, Consumer Affairs, Labour and Employment) and Medef (French Business Confederation). The Minister of Labour, Muriel Pénicaud, visited Somfy on this occasion and spoke with stakeholders about this initiative in the Arve Valley region. Somfy also sought to support Cluses council’s initiative to promote Priority Neighbourhoods in the town’s policy and more generally primary schools, by co-financing a string orchestra for the neighbouring school, Laurent Molliex, in partnership with the Cluses School of Music, as part of the national initiative, “An Orchestra at School”. Dialogue with customers and consumers For several years, Somfy has been initiating a dialogue not only with its customers but also with users of its products and solutions. It is a promotional tool for the brand and a guarantee to continue developing simple and useful products for the consumer. Protection of user data and management of the digital risk Somfy has introduced a comprehensive monitoring and employee training policy to protect the company against malicious attacks on its information systems or on the connected objects ecosystems (objects, applications, servers). Each year, an audit plan is prepared by professional experts for the two categories of digital risks (information systems on the one hand and connected objects on the other), presented and discussed with the heads of Internal Audit and Risk Management. In addition to the training of employees (programmer training is currently being developed), this includes penetration tests carried out in accordance with current standards.

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SOMFY – ANNUAL FINANCIAL REPORT 2019