SOMFY - Annual financial report 2018

04 MANAGEMENT BOARD MANAGEMENT REPORT

THE SOMFY BUSINESS MODEL

STAKEHOLDERS VALUE CREATION

CONTRIBUTIONS TO GROWTH MODEL

PROFITABLE GROWTH BUSINESS MODEL

OUR PURPOSE

HUMAN ASSETS • 5,677 employees (1)

EMPLOYEES • Employee expenses = €342,1 million • Training = 76,209 hours (2) • Engagement = 82.1% (3)

Inspiring a better way of living accessible to all.

OUR VISION

INTELLECTUAL ASSETS • 2,153 patents filed • 16 Experts (Expert Program) FINANCIAL ASSETS • Stable shareholding = 72.15% • Cash flow = €178.6 million PRODUCTION ASSETS • Somfy in 57 countries • 7 industrial locations • CAPEX = €57.3 million SOCIETAL ASSET • Matching contribution Les Petites Pierres 2018 = 145 K€ thousand • Foundation budget 2018 = €350 thousand

Everyone around the world aspires for themselves and their loved-ones to enjoy a safe, healthy, and environmentally-friendly living environment. To meet these essential needs of improving living environments, Somfy creates innovative solutions for homes and buildings, in three key areas:

CUSTOMERS & USERS • NPS (4) = 57

• Manufactured motors (5) = 167 million • Connected devices (6) = 2,870,310

• comfort and well-being for everyone at all ages; • the security of people and property; • protection of the environment.

INVESTORS • Sales = €1,126.7 million • COR = €178.7 million • ROCE = 20.4%

OUR MISSION

To be the preferred partner for windows & doors automation.

OUR BELIEVE & ACT! STRATEGIC PLAN We implement a strategy of profitable growth with the aim of creating and developing our markets.

SUPPLIERS • Local purchase volume (< 500 km) = indicator under construction ENVIRONMENT • 28% Act for Green products • Standby consumption of motors sold in 2018 = 39,38 kg of CO 2 by motor (7)

Bolder on the

Closer to our End Users

Stronger on operational excellence

Better Together

Interior markets

NATURAL CAPITAL • Low consumption of natural resources

CITIZENS • 530 solidarity days

OUR KEY ACTIVITIES

• Research & Development • Marketing • Specification

• Assembling • Distribution • Sales

(1) Exclusing temporary workers (2) Social reporting scope (3) Response rate to internal engagement survey (4) Customer Net Promoter Score (customer satisfaction indicator) = % of promoters – % of detractors (5) Numbers of motors manufactured since Somfy creation

(6) Numbers of objects connected with Somfy cloud (7) According to standards of PEP ecopassport®

A SUSTAINABLE DEVELOPMENT POLICY IN LINE WITH SOMFY’S STRATEGIC VISION — The resolutely human strategic driver “Better Together” puts societal responsibility drivers at the heart of value creation with, amongst other things, the #CSR booster (Corporate Social Responsibility). “Better Together” contributes to employee commitment and serves the long-term interests of the Group and its stakeholders. This helps the implementation of Sustainable Development drivers in the Group’s strategy and operations. In relation to the “Better Together” driver, the main levers of the Group’s entities are to ensure the professional and personal development of all employees, improve their working environment and minimise the environmental impact of all activities, sites and products, and to accept their civic responsibility by becoming involved in social issues that are consistent with their lines of business. These levers are progressively strengthened through an approach based on continuous improvement measured by indicators, the introduction of a dialogue with all stakeholders, and regular and transparent communication.

The Group’s Sustainable Development policy is the declaration of its corporate identity. It seeks to meet, even surpass the expectations of its customers and stakeholders, to unite them in the greater ambition to achieve the Group’s mission to provide better living environments, not only in terms of comfort but also energy savings and security. GOVERNANCE — The Steering Committee for Sustainable Development brings together the Sustainable Development Director, the Group Human Resources Director, the Group Communications Director, the Director of the Foundation (1) , the Group Purchasing Director, and the Director of Internal Audit and Chair of the Ethics Committee. Its mission is to ensure the coherent implementation of the four pillars of Somfy’s Sustainable Development strategy: Planet, People, Society, Customers and the pillar common to all: Ethics. Somfy has a Sustainable Development Department which, since 2017, has been attached to the Strategic Marketing Department. Its missions are to guide the implementation of the Group’s environmental commitments. The organisation as a whole and the teams within the Group also contribute to the continuous improvement of the Sustainable Development policy.

Somfy Foundation combating poor housing. (1)

29

SOMFY – ANNUAL FINANCIAL REPORT 2018