SOMFY_ANNUAL_FINANCIAL_REPORT_2017

04 MANAGEMENT BOARD REPORT

INFORMATION ON INVESTMENTS AND CONTROLLED COMPANIES — INVESTMENTS IN FRENCH COMPANIES DURING THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 (ARTICLE L. 233-6 OF THE COMMERCIAL CODE)

Direct control

Indirect control

Company name

Number of shares

% share capital

Number of shares

% share capital

–

–

–

–

–

NAMES OF COMPANIES DIRECTLY OR INDIRECTLY CONTROLLED AND THE PORTION OF SOMFY SA’S SHARE CAPITAL HELD BY THEM (ARTICLE L. 233-13 OF THE COMMERCIAL CODE)

None of the companies controlled by Somfy SA held shares in Somfy SA at the date of preparation of this report.

INFORMATION ON TRANSACTIONS PERFORMED BY DIRECTORS DURING THE FINANCIAL YEAR (ARTICLE 223-26 OF AMF GENERAL REGULATIONS)

The company is not aware of any transactions falling within the scope of Article L. 621-18-2 of the Monetary and Financial Code during the past financial year.

Purchases Registrant and nature of transaction

Sales Registrant and nature

Amount

Euros

Euros

of transaction Amount

Acquisition

Disposal

– –

– –

– –

– –

Price per share

TOTAL SALES

Number of shares

–

–

TOTAL PURCHASES

–

–

INFORMATION ON RESEARCH AND DEVELOPMENT ACTIVITIES (ARTICLES L. 232-1 AND L. 233-26 OF THE COMMERCIAL CODE)

io-homecontrol communication technology) with its partners in the io-homecontrol alliance, but has also decided to integrate the main open protocols on the market, in particular Zigbee, into its solutions in order to produce a range dedicated to the Asia & Americas region. This requires software that makes it possible to connect the Somfy platforms (TaHoma, Overkiz, Myfox and Somfy alarms) with our partners’ solutions (Sonos, Google, Apple, Amazon Alexa and IFTTT). This ambition requires a change in our development practices, which was initiated in 2017 by the Technical Department in collaboration with the Connected Solutions Activity. The development of a connected solution, motors and control units based on a Zigbee protocol enabled the validation of this new methodological approach. Notable results included the simultaneous development of the range at four different sites – Cluses, Annecy, Zhejiang and Hong Kong – over just six months. This methodology should eventually make it possible to move from four specific IT frameworks, one for each protocol used, to a single framework that can be tailored to the various protocols. This will be possible thanks to the introduction of best practices and standards in terms of programming. The adaptability and capacity to reuse, like components, the various modules of any new protocol (wireless radio

The efforts made in the field of research and development were continued in 2017, in line with the Believe & ACT strategic plan and following on from major initiatives started in previous years. We can therefore identify three main development areas: a range of connected motors that can be controlled remotely online using a mobile phone or tablet application, solutions to meet new usage patterns made possible by this connected product range, and ecosystems combining different Somfy products with each other or with partner solutions in order to promote the creation of new high added-value services. The Group as a whole is beginning to see the results of priority within R&D efforts being given to connected solutions. A certain number of important milestones in this area were passed in 2017: acceleration of the strategy of openness in terms of protocols; – change in our development methodology; – implementation of a connected offer for the Asia & Americas – region. The implementation of our connected strategy is part of a wider approach called “So Open”, the Group’s policy of openness according greater value to seeking partnerships ahead of the priority historically given to proprietary or semi-open solutions and business models. Somfy continues to enhance and develop the

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SOMFY – ANNUAL FINANCIAL REPORT 2017