SOMFY // 2022 Annual Report

03 NON-FINANCIAL STATEMENT

03

NON-FINANCIAL STATEMENT

The non-financial statement forms an integral part of themanagement report. It is presented separately for ease ofreading.

PRESENTATION OF THE BUSINESS MODEL

PRESENTATION OF SOMFY — DESCRIPTION OF GROUP ACTIVITIES

A SUSTAINABLE BUSINESS MODEL, ADAPTED TO THE LOCAL MARKET, WHICH BRINGS TOGETHER THE ENTIRE VALUE CHAIN The Group’s growth model is guided by its vision, “Inspiring a better way of living accessible to all”, i.e. providing useful and responsible solutions with the help and for the benefit of all its stakeholders. The attractiveness of the Group’s ranges, their interoperability with other household devices, and their ease of use, all influence the adoption of new technologies by the user and by the construction industry and unleash the growth potential of the connected home. SOMFY is a local stakeholder, with a presence on five continents, and adapts its product lines to the specific features of each of its markets. SOMFY aims to become the preferred partner for window and door automation for homes and buildings. In this way, SOMFY contributes to the development of both its customers and its partners, by making the excellence of its products and services a constant priority. The health crisis and rising energy costs have increased the desire of home and building occupants for better, energy-efficient living environments. The benefits brought by SOMFY solutions in terms of comfort and energy efficiency in the home are valued by consumers. The Group organisation has proved its relevance in dealing with the operational challenges raised during and after the pandemic, as well as geopolitical and economic disruptions, without calling into question organisational choices or the business model. During the health crisis, as in the post-Covid period, the mobilisation of the teams to secure electronic components and redesign electronic boards, and constant interaction with customers, made it possible to limit the impact of the global shortage of components and materials, as well as the rise in energy and raw material costs, on customers. RESILIENCE OF THE BUSINESS MODEL

SOMFY designs, assembles and distributes motors and automated devices (remote controls and sensors) as well as smart systems which control their operation. SOMFY ‘s main manufacturing activity is the assembly of subunits and parts designed by it but produced by subcontractor partners. The R&D activity’s role is to anticipate peoples’ new habits and needs in relation to homes and buildings, to design the corresponding solutions, guarantee the performance and compatibility of products from the same brand and ensure their interoperability with other brands in the field of connected homes and buildings. SOMFY controls its distribution (international supply chain, local sales and marketing presence), which means SOMFY can deliver its products worldwide. Its customers are manufacturers and installers, who integrate SOMFY solutions into carrier products: blinds, shutters, doors and gates, or by replacing existing equipment in buildings, by leveraging the strength of the Group’s brands. SOMFY also distributes finished products (a selection of motors and control panels, connected objects, digital applications) that are sold by prescribers, networks, retailer installers or resellers, via large specialist and DIY stores, and online, either directly or indirectly. SOMFY products are installed indiscriminately in individual homes, small businesses, apartment blocks, office blocks, hotels and collective residences. BUSINESS MODEL — The business model can be found on pages 8 and 9 of this annual report.

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SOMFY – ANNUAL REPORT 2022