SOMFY_ANNUAL_FINANCIAL_REPORT_2017

05 REPORT ON CORPORATE GOVERNANCE

the approval of the principles and criteria used to determine, – apportion and allocate the various fixed, variable and exceptional items of remuneration comprising total remuneration and benefits of any kind attributable to the Chairman of the Management Board and the member(s) of the Management Board; the approval of the principles and criteria used to determine, – apportion and allocate the various fixed, variable and exceptional items of remuneration comprising total remuneration and benefits of any kind attributable to the members of the Supervisory Board. Draft resolutions, in line with the agenda, will be submitted for your approval. We have no specific comments to make regarding the various documents that have been submitted to you (in particular the Management Board’s management report), or in relation to the parent company and consolidated financial statements for the 2017

financial year. Accordingly, you will be asked to approve the proposed resolutions, with the exception of the delegation of authority to be granted to the Management Board to increase the share capital, through the issue of ordinary shares and/or marketable securities giving access to the share capital with waiver of the preferential subscription right for members of a company savings plan pursuant to Articles L. 3332-18 and subsequent of the Labour Code, it being specified that the Management Board deems it neither relevant nor appropriate and suggests that you reject this resolution. The Board would like to highlight that 2017 was another year of great progress, with particularly significant growth in all of the Group’s activities.

The Supervisory Board

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SOMFY – ANNUAL FINANCIAL REPORT 2017