SOMFY - Annual financial report 2018

04 MANAGEMENT BOARD MANAGEMENT REPORT

Affirmative action in favour of organic food at the company restaurant has increased the amount of organic food served to 18%. Reuse of IT hardware: 508 products handled in 2018 including 281 computers. The update and removal of computer data is performed by a company promoting the employment of disabled people. These computers and various accessories are then reused, thereby breathing new life into them. In 2018, 59% of the equipment was reusable, with the remaining 41% sent for recycling. Following on from the energy audits conducted in 2015 on our sites in the Arve Valley in France, work was carried out to reduce the energy consumption of the buildings in 2018. It mainly sought to improve insulation, introduce solar protection systems, modernise heating and compressed-air production systems and introduce automated LED lighting systems throughout the sites; similarly, the Simu site in Gray in France replaced an old boiler – by three separate condensing boilers allowing it to better regulate gas consumption to meet the individual needs of the administrative buildings; initiatives were introduced at the Lian Da site in China in the – areas of waste sorting and energy and water savings. All production workers have received training on waste sorting. A storage facility was built to house hazardous waste; the SOPEM factory in Poland has an environmental policy based – on the following areas: conserving natural resources, ● contributing to sustainable development, ● cooperating with partners for environmental protection, ● improving energy efficiency. ● SOPEM introduced a waste sorting training course for 500 employees; in Italy, BFT has an ISO 14001 certified structure. In 2017, BFT – prioritised its actions to reduce the standby power consumption of its products and to reduce the use of non-recyclable packaging. Emphasis was also placed on managing hazardous waste such as oil and electronic components. This was undertaken through in-house meetings and general communications with staff; in 2018, the SITEM plant in Tunisia engaged an environmental – health and safety officer. Greenhouse gas emissions resulting from the use of raw materials that form part of the composition of the products are also taken into account: analyses of the lifecycles of products conducted on the control – points highlight that it is the microprocessor that generates the largest portion of emissions, accounting for over 25%. By way of example, the Act for Green® criteria recommend the use of QFN (1) type microprocessors which, in comparison with the QFP (1) versions prohibited by Act for Green® generate a five-fold reduction in greenhouse gas emissions; research has also been conducted into the use of recycled – plastics. However, the plastic materials used in Electrical and Electronic Equipment (EEE) must meet very high specifications and standards in relation to fire testing and dielectric properties (notably CEI 335-1, UL 746 C). These materials are not currently available on the recycled plastics market. Somfy is supporting the economy-focused work of the FIEEC (2) to make progress in this field.

Somfy has decided to monitor a significant indicator concerning its greenhouse gas emissions and regarding which it is able to take action: the energy consumption of its products when on standby . The amount of CO 2 emissions for motors sold in 2017 stood at 40.30 kg of CO 2 per motor. It stood at 39.38 kg of CO 2 in 2018. This reduction of 2.3% is a result of the first initiatives taken under the Act for Green® eco-design programme. The data used in the calculation was provided by the Group and has a low level of uncertainty. However, the emission factor used is based on average European data, ultimately resulting in a level of uncertainty classed as medium.

PROTECTION OF BIODIVERSITY

The SOPEM factory in Poland is located on the edge of protected sites belonging to the Natura 2000 network:

Puszcza Niepolomicka PLB 120002; – Torfowisko Wielkie PLH120080. –

Somfy Activités SA owns several sites in the heart of the French Alps, near Mont Blanc. Somfy wants to act to protect the mountain’s eco-systems and is involved in local initiatives such as the “Club d’Entreprises pour la Montagne et son Développement Durable” (CEM2D) (Club of businesses supporting the mountain and its sustainable development). A Charter was notably developed in 2013. SOCIETAL POLICY PERFORMANCE: A CIVIC POLICY INVOLVING OUR EMPLOYEES — Somfy’s societal engagement is pursued through a number of levers described in this section.

ACTS OF SUPPORT, PARTNERSHIP OR SPONSORSHIP: EMBODYING OUR VISION AND OUR CSR DISCOURSE IN ACTIVITIES IN WHICH SOMFY HAS LEGITIMACY

The Somfy Foundation

Somfy is committed to improving the living conditions of all, and the company’s foundation was established in 2004 to support this worthwhile cause. Since then, it has pursued its civic action to combat poor housing and to help people live together better. The Somfy Foundation is a lever that enables Somfy to respond to the high expectations of external and internal stakeholders that there should be consistency between what the company says about improving living environments and its day-to-day actions. The reality and relevance of this policy can be tracked using a single indicator: the number of solidarity days offered by Group employees to further the work of the Foundation. This indicator is clear evidence of the number of subscribers and the fit between corporate social responsibility and employee expectations. It also sends a message to other stakeholders that there is strong commitment on the part of the employees, above and beyond any financial investment made by the Group to assume this responsibility. In 2018, 530 solidarity days were donated to the Foundation by employees. The Foundation is now a philanthropic organisation in its own right, both in terms of financial and human contributions. Both initiatives are implemented through the international programme A House is A Home and the crowdfunding programme Les Petites Pierres. In 2018, Somfy gave the Foundation’s initiatives €350,000, and provided an operational team of six people.

Integrated circuit box with ou without spindle. (1) FIEEC: French Federation of Electric, Electronic and Communication Industries. (2)

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SOMFY – ANNUAL FINANCIAL REPORT 2018