SOMFY - Annual financial report 2018

04 MANAGEMENT BOARD MANAGEMENT REPORT

ACCESS ACTIVITY —

control unit with self-learning of opening and closing forces. The Virgo gate operator can now be remote controlled from a smartphone via a U-Link solution. A new directional (180°) Compacta photoelectric cell was also released. In addition, the U-Control solution and associated B-EBA Wi-Fi card (used, for example, in the Virgo gate operator), already on the market, was identified as the best innovation in its “low current” category out of 29 selected innovations and was an award winner in the Innovation Trophies section at the 2018 Sidec trade fair. O&O, another BFT subsidiary, has developed its range of traffic applications with its new Maxima Ultra 36 barrier, the first of a new range specifically designed for traffic, parking and toll-charge applications, and more resilient retractable and static bollards – the Ranch E bollard and the B10mm Pillar. Pujol brand started to functionally report to BFT in the course of the year. In 2018, Pujol rollout a new radio environment with its design for a new version of the Junior control card, a receiver Board and the Vario4U remote control. Our Group, through each of its subsidiaries and brands, is committed to making these innovations as widely accessible as possible. We are a genuine local stakeholder, with a presence on five continents, and adapt our product lines to the expectations and specific features of each of our markets. It is our ambition to contribute to the development of our customers and partners by constantly striving for excellence in our products and services. Somfy’s growth and success depend on the entrepreneurial spirit of all the men and women who make up our Group. It is also based on their personal quest for individual fulfilment through a collective project. Over time, we have involved increasing numbers of players from our markets in this project, on the clear assumption that benefits for the end user cannot be fully fulfilled unless all stakeholders in the ecosystem are able to contribute to and play their part in value creation. Today, Somfy offers a line of products which is unique to the marketplace With 50 years of expertise in improving living environments by fitting technology into window, terrace, door and gate equipment, Somfy has pioneered smart living and connected homes, allowing occupants to find new uses for new or existing buildings that satisfy everyone’s expectations. Somfy is at the cutting edge of building digitalisation and has one ambition: to make smart living accessible to all and release the potential of the connected home through attractive product lines and the possibility given of interoperability with home equipment and its new control methods – voice, home automation, artificial intelligence. Our concern at Somfy is to make things useful, secure, simple and accessible. Only then will these changes be adopted by users and the building industry and tailored to individual use, thereby offering better homes for everyone. This is at the heart of the value creation that Somfy is nurturing with all its stakeholders within a business model where everyone contributes their personal expertise and shares in the benefits.

As regards the Access Activity, Somfy brand’s major release is the new Smart-io platform, a solution fully connected in native mode and designed to control standard motorised garage doors and gates. This range uses Set&Go and Serv-e-go (tools which allow installers to connect to their customers’ products and easily adjust settings and carry out maintenance) enabling installers to program the product in 90 seconds and also to offer a remote maintenance service and remote diagnostics. Furthermore, Smart-io gives end users access to a comprehensive ecosystem to improve and enrich their connected experience with video-phones, exterior cameras and lighting. Different uses include, for example: welcome home; secure your home in a single click; check your home; unexpected delivery. BFT launched three new ranges in 2018. The Botticelli range of motors for garage doors was upgraded. It now has new specifications to simplify installation and operation via a built-in

NON-FINANCIAL PERFORMANCE STATEMENT (ARTICLE L. 225-102-1 OF THE COMMERCIAL CODE) PRESENTATION OF THE BUSINESS MODEL — PRESENTATION OF SOMFY

Somfy has spent the last 50 years making everyday life easier for millions of users around the world by offering smart home and building management solutions. Our innovation aims to automate and connect all the equipment used to open, close or conceal windows, terraces, doors and gates via connected motors, facilitating smart control and connection with other home equipment. Our solutions include accessories for control, comfort and security. Occupants are central to our efforts and we constantly strive to identify reliable long-term solutions which offer a better way of living and increased well-being for everyone. Somfy has 5,677 employees worldwide (excluding temporary staff), operates in 57 countries, to generate sales of €1,126.7 million, up by 3.4% on 2017, with a current operating result of €177.8 million, i.e. 15.8% of sales. Our purpose and our vision Somfy’s purpose is shared with all our employees in a document that has been translated into 17 languages, Somfy Spirit, the spirit at the heart of our collective project: This purpose is born of our firm belief that everyone throughout the world aspires to a safe, healthy and eco-friendly living environment for themselves and their family. To meet these basic needs and improve living environments, Somfy has created innovative solutions for the home and buildings in three areas: comfort and well-being for everyone irrespective of their age; – security for both people and property; – environmental conservation. – “Inspiring a better way of living accessible to all”

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SOMFY – ANNUAL FINANCIAL REPORT 2018