SOMFY - Annual financial report 2019

04 MANAGEMENT BOARD MANAGEMENT REPORT

Dialogue with users Users are regularly consulted as part of the development of new offers. The My Somfy Lab platform allows studies to be conducted with Internet users interested in the Somfy market without necessarily being users of it brands. A part of the platform is closed to the public and operates by invitation. 2,300 users and customers are grouped into communities. 41 projects have been completed since the launch of the platform in 2016. It covers three countries and the feedback rate for surveys is 28%, which represents a high level of engagement. In 2019, the open version accessible to all resulted in 1,307 ideas and 6,092 answers to questionnaires for 14 projects, an intense level of activity that included 2,151 comments and more than 7,421 “Likes”. In France, a forum moderated by Somfy gives the floor to consumers. To date, more than 60,000 questions have been posted there and the forum receives 160,000 unique monthly visits. The 76,000 registered participants since the launch of the forum in 2013 enables the hotline to be more efficient and to answer calls more quickly. Similar initiatives exist in other countries. Somfy’s consumer information websites were used by 10,064,988 unique visitors in 2019. Measuring customer satisfaction Being responsive to professional customers is a priority for Somfy. In 50 years, the Group has built a reputation for being close and attentive to its customers. Within a relatively young market that is growing and constantly changing, Somfy’s leadership and its desire to be a trusted partner requires changing needs to be monitored. For each customer profile, the Group has developed dialogue-based activities – studies, surveys, training, services – tailored to the needs of these stakeholders. Customer satisfaction is tracked via an international survey that assesses Somfy’s score in terms of customers promoting the Somfy brand. This quality survey shows that the Net Promoter Score was 68, which is a good result and helps to identify areas for improvement. PERFORMANCE OF THE ETHICAL APPROACH AND THE ANTI-CORRUPTION POLICY — COMMITMENT TO ETHICS AND COMBATTING CORRUPTION Through the Ambition 2030 strategic framework and its sustainable development policy, Somfy is determined to strengthen its stakeholders’ confidence in its ability to conduct its business ethically. That is why the Group has made ethics a cross-company focus of this policy. Risks related to non-ethical behaviour and corruption within the company, and their repercussions in terms of image and reputation as well as the financial impacts, are taken all the more seriously by Somfy given that the Group is committed to being the preferred partner for window and door automation. Business ethics and employee integrity are essential to preserving Somfy’s image and reputation and protecting its staff. Employees must comply with the laws and regulations in force within the jurisdictions in which Somfy pursues its activities, as well as with Somfy’s values and policies in terms of ethical principles. To do this, Somfy promotes a strong ethical culture at every level of the organisation. The aim of this approach and policy is to strengthen the confidence of stakeholders in the way in which Somfy pursues its international development.

ETHICAL ACTION PLAN

Since 2015, Somfy has had a Code of Ethics which is a point of reference for employees in relation to individual and collective behaviour, and a framework for everyday actions, enabling them to embody the Group’s values. This Code is a common and unifying document, which guides every employee in their decision-making; it is also a tool to promote dialogue between employees so that ethics is an open matter understood by all. It is systematically provided to employee on joining the Group and is available on the website in 23 languages. Drivers of the Ethics function The Supervisory and Management Boards provide strong support to the Ethics Committee and oversee the ethics function. The Ethics Committee is a structure that enables a collegiate vision of ethics to be developed and rolled out and its application monitored. It is made up of four members appointed by the Management Board for a renewable term of office of three years, as well as an Ethics Manager appointed from within its ranks to lead both the system and the Committee. The Ethics Committee relies on a network of Ethics officers to oversee local communication and close coordination, ensuring the solution’s effectiveness. The majority of these local officers are members of the Human Resources community. As well as providing coordination and support at local level, they are often responsible for resolving difficulties locally. They help to provide the most appropriate solutions to the questions asked by employees on the ground. The Managers are responsible for the roll-out and application of the Code of Ethics within their scope, including in relation to new arrivals. Every employee must understand and apply the principles set out in the Group’s Code of Ethics. They also all have a duty to whistleblow if they become aware of any facts or practices that are unethical. Employees are also encouraged to report any concerns relating to ethical principles or behaviour to their manager, their local Ethics officer, or the Ethics Committee. The Ethics function also naturally has strong links with other support functions. As such, the Head of Ethics has regular interaction with the Legal, Internal Control and Risks, Internal Audit, Sustainable Development and Environment, Corporate Affairs, Finance, Safety, and Human Resources Departments, as well as with all the Group’s Operational Departments. Ethical reporting system In addition to reporting direct exchanges, a whistleblowing system allows anyone to report serious matters so that they can be taken into consideration and treated in accordance with the applicable legal and regulatory provisions. Included in the anti-corruption compliance programme rolled out within the Group, this whistleblowing mechanism also allows Somfy to meet the requirements of law n°2016-1691 of 9 December 2016 on transparency, the fight against corruption and the modernisation of the economy, known as the “Sapin 2 law” (hereafter the “law”). The Group thus decided to introduce a unique mechanism to bring itself into line with the requirements of this law. This system complements the mechanism in force within the Group since 2015 and which facilitates the confidential and safe reporting of any behaviour in contravention of the Code of Ethics. A specific procedure has been formally set out in 23 languages to present this system and the conditions of its use. It is intended to apply to all the Group’s entities, subject to its adaptation to existing provisions under local legislation. A privacy policy relating

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SOMFY – ANNUAL FINANCIAL REPORT 2019